Download at http://www.teamDigital.com 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.

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 **infoplease.com

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
www.Promotions2.com
Website
www.teamDigital.com