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Captains of Retail
                      ... and the New Digital Media
                                  May 2011

                               jo@dearmedia.be

vrijdag 13 mei 2011                                   1
Don’t believe anything
                      you will hear or see in
                          the next hour!

vrijdag 13 mei 2011                             2
About us...
              •       Founding Partner of Dear Media, a digital media consulting
                      company (www.dearmedia.be)
              •       Active in interactive since 1993 (Dear Media, ONE Agency,
                      theOriginals, tvAgency, xCA, The Reference, ...)
              •       Not a Digital Native
                      Not a Digital Immigrant, but a Digital Architect
              •       http://jocaudron.me
                      (for the personal stuff)
              •       http://www.linkedin.com/in/jocaudron
                      (for the boring stuff)
              •       www.twitter.com/jcaudron
                      (to get in my stream)
              •       http://www.facebook.com/jocaudron
                      (we might even become friends ;-)
              •       Become fan of Dear Media on www.facebook.com/
                      dearmedia and get the daily social media news in your
                      Facebook stream
                                                                                   picture: (c)
                                                                                   Pieter Baert
vrijdag 13 mei 2011                                                                               3
twitter.com/jcaudron


vrijdag 13 mei 2011                          4
To get this started...
              • Who is using?                   • Who is using?
                      - Twitter                   - an iPhone (2G, 3G, 3Gs, 4G)
                      - Facebook, Netlog, ...     - an Android
                      - LinkedIn, Plaxo           - a Blackberry
                      - Email                     - a Nokia, Samsung, Sony
                      - LBS                         Ericsson, ...
                      - Augmented Reality         - a tablet (iPad 1, iPad 2,
                                                    Android, ...)



vrijdag 13 mei 2011                                                               5
The Perfect Storm
                      Media Consumption is Changing




vrijdag 13 mei 2011                                   6
Drivers of change

                                              Content choice


                      the power of many
                         Social Media                              advertising Clutter




            Convenience, Richness & Control                    poor Creativity




vrijdag 13 mei 2011                                                                      7
Drivers of change

                                   Content choice




vrijdag 13 mei 2011                                 8
Youtube TOP 20 most viewed videos
                      = 11.000.000.000 minutes
                      = 280.000.000 episodes of e.g. “Lost”

                      +2.000.000 new movies are added
                      DAILY

                      And this is just Youtube ...




vrijdag 13 mei 2011                                           9
Drivers of change



                                                              advertising Clutter




                  On average we are exposed to over 3.000 brand impressions each day!


vrijdag 13 mei 2011                                                                     10
Drivers of change
                                        Traditional formats do not work
                                        in the digital space (interuption
                                         marketing, 30”, expandables,
                                              splash screens, ...)

                                            And the work less in the
                                               traditional space.


                                   poor Creativity




vrijdag 13 mei 2011                                                         11
Drivers of change


                                                                          Viewers are taking

                                               Media are losing their     control, deciding

                                              traditional “push” power.   what they want to
                                                                          watch, when, and

                                                                          how.
                                                                                               Pull strategy
                                                                                               • On demand
                                                                                               • Timeshifting
                                                                                               • Ad skipping
                                                                                               • Online content

            Convenience, Richness & Control                                                    • Games
                                                                                               • User generated content
                                                                                               • …




vrijdag 13 mei 2011                                                                                                       12
Drivers of change
                      TIMESHIFTING




            Convenience, Richness & Control




vrijdag 13 mei 2011                           13
Drivers of change
                      PLACE SHIFTING




            Convenience, Richness & Control




vrijdag 13 mei 2011                           14
Drivers of change

                         AUTHORITY SHIFTING



                      the power of many
                         Social Media




vrijdag 13 mei 2011                           15
Drivers of change
                                                       Fragmentation

                                                       Content choice


                         the power of many
                            Social Media                                    advertising Clutter




            Convenience, Richness & Control                             poor Creativity


                                                                                Irritation
                      Shift of control and ownership


vrijdag 13 mei 2011                                                                               16
Media 1.0

vrijdag 13 mei 2011               17
SOCIAL OBJECT
                                      The Flower is the (potential) social
                                                    object

                                 The mainstream media are the smell of
                                              the flower

                                 The bee is “spreading the word” and
                                          has the real power
                                              Level I: Sites, blogs, feeds, widgets
                                      Level II: Closed networks (Facebook, Netlog, ...)
                                      Level III: Through individuals (e-mail, Twitter, ...)




                          Media 2.0

vrijdag 13 mei 2011                                                                           18
7.000.000.000
vrijdag 13 mei 2011   19
December 2010: Facebook has 600.000.000 members
  They are planning to reach 1 billion members by 2012
  That’s +650K users EVERY DAY!
  There are 4.5 million users in Belgium.

vrijdag 13 mei 2011                                      20
vrijdag 13 mei 2011   21
vrijdag 13 mei 2011   22
300


                                                                   225
      In Q4 2010 7,3% of all PC’s sold globally, where iPads ...
      (source: IDC).                                               150

      By 2014 almost 500.000.000 tablets will be sold.
                                                                    75
      Apple will continue to dominate the market for the next
      coming years.                                                  0
                                                                         2010   2011   2012   2013   2014


vrijdag 13 mei 2011                                                                                         23
The Future of Computing is NOT on PC’s




                        Shift towards tablets, smartphones, ...?
vrijdag 13 mei 2011                                                24
So, Traditional Media are Dead?
vrijdag 13 mei 2011                           25
The future of TV




vrijdag 13 mei 2011               26
The future of TV might not be on TV




vrijdag 13 mei 2011                                  27
vrijdag 13 mei 2011   28
vrijdag 13 mei 2011   29
Will new technology help?




vrijdag 13 mei 2011                        30
The future of
            Magazines?




vrijdag 13 mei 2011         31
They           have




                      NO   radio
vrijdag 13 mei 2011                32
Understanding the next logical step in the
                         digital evolution
vrijdag 13 mei 2011                                        33
Semantic Web
 Machine-to-machine
 Decentralized (machine-driven)
 Artificial Intelligence                    Web 3.0                                                                                        The Internet of Things
 RFID & tagging
 Sharing, Tagging, “favoriting”                                                                                                      Location Based Services

                                                                                                                             Content Curation
 Bottom-up
 Decentralized (user-driven)                                                                                    The Life Web (micro-blogging)
 Participative
 Sharing, Tagging, “favoriting”, curation, …    Web   2.0                                        Social Networks (Facebook, …)
 Dynamic & Rich Experiences
 Interaction with others
 Anything, Anytime, Anyplace (mobile, …): shift of                                      Youtube, Flickr, …
 time, place and authority
                                                                                Blogs

 Top-down                                                             Portals
 Centrally owned
 Consumption-oriented                       Web 1.0           Sites
 Static information                                                                               Life Event Structure

 Interactive Services
                                                            Monolithic                                    Modular                                 Atomic
                                                            Closed                                                                                Open

vrijdag 13 mei 2011                                                                                                                                            34
Semantic Web
 Machine-to-machine
 Decentralized (machine-driven)
 Artificial Intelligence                    Web 3.0                                                                                        The Internet of Things
 RFID & tagging
 Sharing, Tagging, “favoriting”                                                                                                      Location Based Services

                                                                                                                             Content Curation
 Bottom-up
 Decentralized (user-driven)                                                                                    The Life Web (micro-blogging)
 Participative
 Sharing, Tagging, “favoriting”, curation, …    Web   2.0                                        Social Networks (Facebook, …)
 Dynamic & Rich Experiences
 Interaction with others
 Anything, Anytime, Anyplace (mobile, …): shift of                                      Youtube, Flickr, …
 time, place and authority
                                                                                Blogs

 Top-down                                                             Portals
 Centrally owned
 Consumption-oriented                       Web 1.0           Sites
 Static information                                                                               Life Event Structure

 Interactive Services
                                                            Monolithic                                    Modular                                 Atomic
                                                            Closed                                                                                Open

vrijdag 13 mei 2011                                                                                                                                            35
Semantic Web
 Machine-to-machine
 Decentralized (machine-driven)
 Artificial Intelligence                    Web 3.0                                                                                     The Internet of Things
 RFID & tagging
 Sharing, Tagging, “favoriting”                                                                                                   Location Based Services
                                                                                                                                   +Tag
                                                                                                                           Content Curation
 Bottom-up                                                            Evolution of Navigation
 Decentralized (user-driven)                                                                                    The +Ask (micro-blogging)
                                                                                                                    Life Web
 Participative
 Sharing, Tagging, “favoriting”, curation, …    Web   2.0                                        Social Networks (Facebook, …)
 Dynamic & Rich Experiences
 Interaction with others
 Anything, Anytime, Anyplace (mobile, …): shift of                                       +Search
                                                                                        Youtube, Flickr, …
 time, place and authority
                                                                                Blogs

 Top-down                                                             Portals
                                                                Browse
 Centrally owned
 Consumption-oriented                       Web 1.0           Sites
 Static information                                                                               Life Event Structure

 Interactive Services
                                                            Monolithic                                    Modular                              Atomic
                                                            Closed                                                                             Open

vrijdag 13 mei 2011                                                                                                                                         36
Mobile + social + real-world = future
                      iPhone app -> LBS wine store

                      Internet of Things: scanning/tagging
                      product

                      More info, rating, social reviews

                      Tag to my digital assets (I’ll buy later or
                      elsewhere or online)




vrijdag 13 mei 2011                                                 37
Mobile + social + real-world = future
                      iPhone app -> LBS wine store

                      Internet of Things: scanning/tagging
                      product

                      More info, rating, social reviews

                      Tag to my digital assets (I’ll buy later or
                      elsewhere or online)




vrijdag 13 mei 2011                                                 38
Mobile + social + real-world = future
                      iPhone app -> LBS wine store

                      Internet of Things: scanning/
                      tagging product

                      More info, rating, social reviews

                      Tag to my digital assets (I’ll buy later or
                      elsewhere or online)




vrijdag 13 mei 2011                                                 39
Mobile + social + real-world = future
                      iPhone app -> LBS wine store

                      Internet of Things: scanning/tagging
                      product

                      More info, rating, social reviews

                      Tag to my digital assets (I’ll buy later or
                      elsewhere or online)




vrijdag 13 mei 2011                                                 40
Social, Mobile and Retail...
                         How do they ad up?




vrijdag 13 mei 2011                                  41
First the bad news...
              • Study from Forrester and GSI Commerce
              • Based on data by online retailers
              • Conclusions
                      -   less than 2% of orders were the result of shoppers coming
                          from a social network
                      -   Buying things from retailers is maybe 10th on the list of
                          things they want to do on Facebook
                      -   somewhat effective for distributing news about short-term
                          deals
              • So what did we expect? Facebook as the Walhalla for
                      advertising, selling, ...?
              • People do not come to Facebook to see YOU, let alone to
                      buy from you...


vrijdag 13 mei 2011                                                                   42
Next the good news
              • Social & mobile are not about short-term advertising
              • Social & mobile are is about building long-term relationships
              • Social & mobile are about translating the trust-based relationship
                      between people, into positive value for your brands and products
                      -   subtle
                      -   recommendations based
              • Social & mobile are about connecting to your audience, listening to the
                      market, responding to questions, helping them with their problems
              •       Social & mobile are all about brand utility
              •       (r)etailers that can master this, will benefit from social and mobile media

vrijdag 13 mei 2011                                                                                 43
vrijdag 13 mei 2011   44
vrijdag 13 mei 2011   45
vrijdag 13 mei 2011   46
vrijdag 13 mei 2011   47
vrijdag 13 mei 2011   48
vrijdag 13 mei 2011   49
Want to be ready?




                                                        Change your view on advertising
  Start using
  social networks                        Get a decent
                        Get on Twitter
                                         smartphone




                                         Get a tablet
vrijdag 13 mei 2011                                                                       50
Beware of Macro-Myopia*
                      *the trend to overestimate the impact of change on the short term
                         and to underestimate the impact of change on the long term.

                                           Don’t say I didn’t warn you ;-)




vrijdag 13 mei 2011                                                                       51
Captains of Retail
                      ... and the New Digital Media
                                  May 2011

                               jo@dearmedia.be

vrijdag 13 mei 2011                                   52

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The Perfect Storm: How Digital Media Is Changing Consumer Behavior

  • 1. Captains of Retail ... and the New Digital Media May 2011 jo@dearmedia.be vrijdag 13 mei 2011 1
  • 2. Don’t believe anything you will hear or see in the next hour! vrijdag 13 mei 2011 2
  • 3. About us... • Founding Partner of Dear Media, a digital media consulting company (www.dearmedia.be) • Active in interactive since 1993 (Dear Media, ONE Agency, theOriginals, tvAgency, xCA, The Reference, ...) • Not a Digital Native Not a Digital Immigrant, but a Digital Architect • http://jocaudron.me (for the personal stuff) • http://www.linkedin.com/in/jocaudron (for the boring stuff) • www.twitter.com/jcaudron (to get in my stream) • http://www.facebook.com/jocaudron (we might even become friends ;-) • Become fan of Dear Media on www.facebook.com/ dearmedia and get the daily social media news in your Facebook stream picture: (c) Pieter Baert vrijdag 13 mei 2011 3
  • 5. To get this started... • Who is using? • Who is using? - Twitter - an iPhone (2G, 3G, 3Gs, 4G) - Facebook, Netlog, ... - an Android - LinkedIn, Plaxo - a Blackberry - Email - a Nokia, Samsung, Sony - LBS Ericsson, ... - Augmented Reality - a tablet (iPad 1, iPad 2, Android, ...) vrijdag 13 mei 2011 5
  • 6. The Perfect Storm Media Consumption is Changing vrijdag 13 mei 2011 6
  • 7. Drivers of change Content choice the power of many Social Media advertising Clutter Convenience, Richness & Control poor Creativity vrijdag 13 mei 2011 7
  • 8. Drivers of change Content choice vrijdag 13 mei 2011 8
  • 9. Youtube TOP 20 most viewed videos = 11.000.000.000 minutes = 280.000.000 episodes of e.g. “Lost” +2.000.000 new movies are added DAILY And this is just Youtube ... vrijdag 13 mei 2011 9
  • 10. Drivers of change advertising Clutter On average we are exposed to over 3.000 brand impressions each day! vrijdag 13 mei 2011 10
  • 11. Drivers of change Traditional formats do not work in the digital space (interuption marketing, 30”, expandables, splash screens, ...) And the work less in the traditional space. poor Creativity vrijdag 13 mei 2011 11
  • 12. Drivers of change Viewers are taking Media are losing their control, deciding traditional “push” power. what they want to watch, when, and how. Pull strategy • On demand • Timeshifting • Ad skipping • Online content Convenience, Richness & Control • Games • User generated content • … vrijdag 13 mei 2011 12
  • 13. Drivers of change TIMESHIFTING Convenience, Richness & Control vrijdag 13 mei 2011 13
  • 14. Drivers of change PLACE SHIFTING Convenience, Richness & Control vrijdag 13 mei 2011 14
  • 15. Drivers of change AUTHORITY SHIFTING the power of many Social Media vrijdag 13 mei 2011 15
  • 16. Drivers of change Fragmentation Content choice the power of many Social Media advertising Clutter Convenience, Richness & Control poor Creativity Irritation Shift of control and ownership vrijdag 13 mei 2011 16
  • 17. Media 1.0 vrijdag 13 mei 2011 17
  • 18. SOCIAL OBJECT The Flower is the (potential) social object The mainstream media are the smell of the flower The bee is “spreading the word” and has the real power Level I: Sites, blogs, feeds, widgets Level II: Closed networks (Facebook, Netlog, ...) Level III: Through individuals (e-mail, Twitter, ...) Media 2.0 vrijdag 13 mei 2011 18
  • 20. December 2010: Facebook has 600.000.000 members They are planning to reach 1 billion members by 2012 That’s +650K users EVERY DAY! There are 4.5 million users in Belgium. vrijdag 13 mei 2011 20
  • 21. vrijdag 13 mei 2011 21
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  • 23. 300 225 In Q4 2010 7,3% of all PC’s sold globally, where iPads ... (source: IDC). 150 By 2014 almost 500.000.000 tablets will be sold. 75 Apple will continue to dominate the market for the next coming years. 0 2010 2011 2012 2013 2014 vrijdag 13 mei 2011 23
  • 24. The Future of Computing is NOT on PC’s Shift towards tablets, smartphones, ...? vrijdag 13 mei 2011 24
  • 25. So, Traditional Media are Dead? vrijdag 13 mei 2011 25
  • 26. The future of TV vrijdag 13 mei 2011 26
  • 27. The future of TV might not be on TV vrijdag 13 mei 2011 27
  • 28. vrijdag 13 mei 2011 28
  • 29. vrijdag 13 mei 2011 29
  • 30. Will new technology help? vrijdag 13 mei 2011 30
  • 31. The future of Magazines? vrijdag 13 mei 2011 31
  • 32. They have NO radio vrijdag 13 mei 2011 32
  • 33. Understanding the next logical step in the digital evolution vrijdag 13 mei 2011 33
  • 34. Semantic Web Machine-to-machine Decentralized (machine-driven) Artificial Intelligence Web 3.0 The Internet of Things RFID & tagging Sharing, Tagging, “favoriting” Location Based Services Content Curation Bottom-up Decentralized (user-driven) The Life Web (micro-blogging) Participative Sharing, Tagging, “favoriting”, curation, … Web 2.0 Social Networks (Facebook, …) Dynamic & Rich Experiences Interaction with others Anything, Anytime, Anyplace (mobile, …): shift of Youtube, Flickr, … time, place and authority Blogs Top-down Portals Centrally owned Consumption-oriented Web 1.0 Sites Static information Life Event Structure Interactive Services Monolithic Modular Atomic Closed Open vrijdag 13 mei 2011 34
  • 35. Semantic Web Machine-to-machine Decentralized (machine-driven) Artificial Intelligence Web 3.0 The Internet of Things RFID & tagging Sharing, Tagging, “favoriting” Location Based Services Content Curation Bottom-up Decentralized (user-driven) The Life Web (micro-blogging) Participative Sharing, Tagging, “favoriting”, curation, … Web 2.0 Social Networks (Facebook, …) Dynamic & Rich Experiences Interaction with others Anything, Anytime, Anyplace (mobile, …): shift of Youtube, Flickr, … time, place and authority Blogs Top-down Portals Centrally owned Consumption-oriented Web 1.0 Sites Static information Life Event Structure Interactive Services Monolithic Modular Atomic Closed Open vrijdag 13 mei 2011 35
  • 36. Semantic Web Machine-to-machine Decentralized (machine-driven) Artificial Intelligence Web 3.0 The Internet of Things RFID & tagging Sharing, Tagging, “favoriting” Location Based Services +Tag Content Curation Bottom-up Evolution of Navigation Decentralized (user-driven) The +Ask (micro-blogging) Life Web Participative Sharing, Tagging, “favoriting”, curation, … Web 2.0 Social Networks (Facebook, …) Dynamic & Rich Experiences Interaction with others Anything, Anytime, Anyplace (mobile, …): shift of +Search Youtube, Flickr, … time, place and authority Blogs Top-down Portals Browse Centrally owned Consumption-oriented Web 1.0 Sites Static information Life Event Structure Interactive Services Monolithic Modular Atomic Closed Open vrijdag 13 mei 2011 36
  • 37. Mobile + social + real-world = future iPhone app -> LBS wine store Internet of Things: scanning/tagging product More info, rating, social reviews Tag to my digital assets (I’ll buy later or elsewhere or online) vrijdag 13 mei 2011 37
  • 38. Mobile + social + real-world = future iPhone app -> LBS wine store Internet of Things: scanning/tagging product More info, rating, social reviews Tag to my digital assets (I’ll buy later or elsewhere or online) vrijdag 13 mei 2011 38
  • 39. Mobile + social + real-world = future iPhone app -> LBS wine store Internet of Things: scanning/ tagging product More info, rating, social reviews Tag to my digital assets (I’ll buy later or elsewhere or online) vrijdag 13 mei 2011 39
  • 40. Mobile + social + real-world = future iPhone app -> LBS wine store Internet of Things: scanning/tagging product More info, rating, social reviews Tag to my digital assets (I’ll buy later or elsewhere or online) vrijdag 13 mei 2011 40
  • 41. Social, Mobile and Retail... How do they ad up? vrijdag 13 mei 2011 41
  • 42. First the bad news... • Study from Forrester and GSI Commerce • Based on data by online retailers • Conclusions - less than 2% of orders were the result of shoppers coming from a social network - Buying things from retailers is maybe 10th on the list of things they want to do on Facebook - somewhat effective for distributing news about short-term deals • So what did we expect? Facebook as the Walhalla for advertising, selling, ...? • People do not come to Facebook to see YOU, let alone to buy from you... vrijdag 13 mei 2011 42
  • 43. Next the good news • Social & mobile are not about short-term advertising • Social & mobile are is about building long-term relationships • Social & mobile are about translating the trust-based relationship between people, into positive value for your brands and products - subtle - recommendations based • Social & mobile are about connecting to your audience, listening to the market, responding to questions, helping them with their problems • Social & mobile are all about brand utility • (r)etailers that can master this, will benefit from social and mobile media vrijdag 13 mei 2011 43
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  • 49. vrijdag 13 mei 2011 49
  • 50. Want to be ready? Change your view on advertising Start using social networks Get a decent Get on Twitter smartphone Get a tablet vrijdag 13 mei 2011 50
  • 51. Beware of Macro-Myopia* *the trend to overestimate the impact of change on the short term and to underestimate the impact of change on the long term. Don’t say I didn’t warn you ;-) vrijdag 13 mei 2011 51
  • 52. Captains of Retail ... and the New Digital Media May 2011 jo@dearmedia.be vrijdag 13 mei 2011 52