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Promotions 2.0 - The Future of Interactive Marketing

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Advertising & marketing are going through a period of significant transformation. The old model of bombarding consumers with disruptive advertising is broken. This presentation offers a new model for creating brand value in a 2.0 world.

Promotions 2.0 - The Future of Interactive Marketing

  1. PROMOTIONS 2.0 The future of interactive marketing
  2. The Big Shift Advertising isn’t what it used to be
  3. ew technologies, N d media, and a new fragmente owered consumers generation of emp hanging the world are rapidly c of advertising...
  4. We’re Spending Less Time Here... Radio TV Print -19% -33% -30% Time spent with traditional media is declining Arbitron Research: Internet and Multimedia Study
  5. ...And More Time Here. New technologies are captivating consumers
  6. Media fragmentation is increasing. In 1971, the average person encountered approximately 500 ad messages a day David Schenk, Marketing Smog
  7. 7 Today, that number is almost 5,000 making it harder to engage consumers. David Schenk, Marketing Smog
  8. ising dvert A nline O flat with ve been Rates ha years.” “CPM he past 2 ults for t ning res now .01% li dec ugh rates o e click thr rag Ave Paid Search “Losing its luster and expe cted to peak this year, followed by a decline.” Borell Associa tes: The Big S hift Research Report (April 2008)
  9. Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 million US consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million 110 million Browse the web from their mobile phone** mobile Participate in customer Social Networks* PASSIVE 95 million 50 million Participate in community producer Have created online content* online Contests & Sweepstakes**** participant *Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
  10. 30.0 2008 2012 22.5 ($ in Billions) 15.0 7.5 0 Display Search Video Promotions Email Online Promotions Spending expected to surpass other online advertising categories over the next 5 years. Source: Borell Associates inc. 2008
  11. Because promotions deliver results... 60% 80% 82% of US consumers of online of consumers have purchased consumers have will provide personal a brand due to a entered a information in exchange promotion.* sweepstakes.** for a chance to win.*** *IMI International **eMarketer ***Jupiter Research: Online Privacy Report
  12. The New Marketing Mix Digital Promotions + Advertising Quadrant 4 = most value Increased Value Increased Value Promotions + Advertising High 4 Increased relevance & entertainment By combining digital promotions & 4 2 advertising both relevance & entertainment value is increased moving closer to Quadrant 4. > > Relevant Brand Advertising 3 Low Relevance - High Creative 3 1 Local or Niche 2 High Relevance - Low Creative Mass Marketing 1 Low Low Relevance - Low Creative > Entertaining > Low High Relevance & Entertainment* 2 axis that create consumer value in marketing: While all marketing is capable of playing in quadrant four, no single medium has broken through. Source: Joseph Jaffe
  13. Old Marketing New Marketing Spray & Pray Attract & Engage Large Audience Smaller Audiences Low Relevance High Relevance Low Return High Return
  14. Promotions 2.0 Marketers are using digital promotions today to create buzz & cut through the clutter
  15. Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand Engagement Brand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement
  16. 70% of CPG Super Bowl Advertisers used interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine
  17. User Generated Contests deep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenue winning USA TODAY'S 2009 Super Bowl Ad Meter
  18. Advergames brand messages become viral brand experiences 30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll
  19. Advergames brand messages become viral brand experiences 40 30 20 10 0 Advergames Video Tell-a-Friend Advergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey
  20. Mobile Integration participation anytime or anywhere Largest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit
  21. Inclusive Experiences Everyone wins something. Someone wins everything. One person win a trip to the World Series One college wins a private concert Everyone wins a taco if base with the Dave Matthews Band is stolen during the game Everyone watches online
  22. Social Promotions promotions worth talking about Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers** People Magazine: 3.6 million readers monthly** *Comscore **
  23. Promotion Hell Poor planning can lead to big problems
  24. Warning! Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.
  25. Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of) No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
  26. Rock the Vote Starbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”
  27. Pepsi Stuffed Harrier Jet a steal at 700,000,000 points Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet. Result: Out of court settlement and a whole lot of bad PR.
  28. Promotions 3.0 What’s next for advertising & promotions?
  29. Clutter Continues Brands will look for new ways to engage consumers as media & product proliferation expands M
  30. Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform 65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit
  31. Social Media Expands Social Media is bigger than you think... and it’s just getting started U.S. Social Network Usage 35% All Adults 75% Adults 18-24 * Pew Internet & American Life Project, December 2008
  32. Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers
  33. + David Griffith is managing director of teamDigital, a brand based digital agency specializing in technology driven promotions that engage consumers, create loyalty, and increase brand value. Blog Website

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Download at Advertising & marketing are going through a period of significant transformation. The old model of bombarding consumers with disruptive advertising is broken. This presentation offers a new model for creating brand value in a 2.0 world.


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