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Strategizing in an increasingly complex digital marketing world

Data, SEO, SEA, affiliate, display advertising, voice search, marketing automation, ... you name it. Digital marketing is becoming more and more complex and confusing. This presentation takes a look at the digital marketing diversity in an overall context of digitization and marketing strategy so that current and future touchpoints of customer journeys are already considered. Also the strategy of Amazon and its implications for sales and marketing strategies of brands is being examined. In addition, first ideas for planing a route through the digital marketing jungle are provided.

Thorsten Sachtje (Senior Consultant Digital Strategy @ Artefact Germany) held this presentation at Marketing Club Ruhr to a group of 50 marketing decision makers on February 26nd 2019.

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Strategizing in an increasingly complex digital marketing world

  1. 1. Strategizing in an increasingly complex digital marketing world Marketing Club Ruhr, 25.02.2019
  2. 2. , , , , Sr Consultant Digital Strategy • Strong background in Marketing Strategy and Customer Management • Experience from Corporations and Agency • Diplom-Kaufmann • Find me online: Thorsten Sachtje
  3. 3. A squad operating on all marketing needs Technologies Our highly accredited experts have 20 years experience in leading award- winning global digital marketing campaigns. Business oriented, data raised, digital native, marketing minded and IT trained unicorns, they live to put together the perfect team of our in- house talents. First class data experts from the largest pool of giant tech certified marketing data scientists in France. Our Full-stack Engineers will set-up end to end DataLake, with the right trade-off between speed and reversibility AI specialists with PhDs in Machine Learning developing unique proprietary solutions to fit our clients’ needs and optimise in-house processes. Media & Activation Creation DataLake Ecosystem Artificial IntelligenceStrategic Consulting Data Science Award-winning creatives, able to design concepts from branding to performance based on data. Marketing Consulting
  4. 4. Retail Bank / Insurance Travel Real Estate / Automotive Fashion Telecoms / High Tech NGO / Energy A few of our customers
  5. 5. Netherlands 30 Employees Switzerland 10 Employees Dubai 30 Employees South Africa 15 Employees APAC 10 Employees France 250 Employees UK 160 Employees Italy 15 Employees Spain 30 Employees Germany 190 Employees Nordics 55 Employees China 90 Employees Our Offices
  6. 6. Setting the scene
  7. 7. Unsere Dienstleistungen 7 • @tsachtjeSource: Tom Fishburne. Strategy first
  8. 8. Thermostat 8 Who are you? • @tsachtjeSource: Nest, Pollin Electronic. Thermometer
  9. 9. Creative Distruction Process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. Joseph Schumpeter Political Economist (1883 - 1950) in „Capitalism, Socialism, and Democracy“ (1942) 9 • @tsachtje
  10. 10. 10 Creative Destruction is accelerating • @tsachtjeSource: Innosight, 2018.
  11. 11. 11 Even the digital space is in motion • @tsachtjeSource: Visual Capitalist, 2019.
  12. 12. 12 Source: IMD Global Center for Digital Business Transformation, 2017. Supplier or Competitor? • @tsachtje
  13. 13. 13 The way out of Digital Disruption: Dual Transformation • @tsachtje Daily Business Future Business Source: Following Innosight, April 2017.
  14. 14. Consumers have embraced technology-powered brands A new breed of brands such as Google, Amazon, Netflix and Airbnb have captured consumers’ hearts & minds by disrupting the status quo across all sectors. These brands have defined higher standards of customer experience by continuously improving their products and services through digital, data & AI. All brands must now live up to these new standards.
  15. 15. 15 Amazon Strategy 101 Source: CB Insights, January 2018. • @tsachtje Amazon‘s goal: „Earth‘s Biggest Store“ « Bezos‘ ability to paint an extraordinary vision and register steady progress against that vision is rewarded with the cheapest capital in the history of businesses. […] And… Cheap. Capital. Is. Awesome. » Scott Galloway, NYU business professor
  16. 16. 16 Profit vs No Profit • @tsachtjeSource:, March 2017.
  17. 17. „ If you make things easier, people will do more of it. “ Jeff Bezos Founder/CEO @ Amazon 17 • @tsachtje
  18. 18. 18 Frictionless interaction wherever you are • @tsachtje #1 CES 2017 Quote: „It works with Alexa“ Source: CB Insights, January 2018.
  19. 19. Confrontation Cooperation* 19 * As Vendor/Seller, via Amazon Marketing Services, offering Alexa skills, integrating Alexa in own devices, etc. Confrontation vs Cooperation. • @tsachtje
  20. 20. Confrontation Cooperation* 20 * As Vendor/Seller, via Amazon Marketing Services, offering Alexa skills, integrating Alexa in own devices, etc. Confrontation vs Cooperation. • @tsachtje
  21. 21. Clothing, Shoes & Jewelry 206 Collective 7Goals A for Awesome Amazon Essentials Arabella Buttoned Down Cable Stitch Camp Moonlight Clifton Heritage Coastal Blue Comfort Denim Outfitters Core 10 Crafted Collar Daily Ritual … Denim Bloom Emma Riley 21 Source: Recode, April 2018. The underlying issue • @tsachtje David Kahan, CEO of Birkenstock Americas: „Birkenstock does NOT sell [via] Amazon“. Amazon Private-Label Brands:
  22. 22. 22 Considering Amazon? Things to keep in mind • @tsachtje Go or no go on Amazon? STRATEGIC CHALLENGES ORGANIZATIONAL CHALLENGES PERFORMANCE CHALLENGES With which operating model ? Marketplace or vendor? With which assortment? Complete or specific one? How can I build my brand on this ecosystem? What is the best governance between the commercial and the marketing team? What should I run internally or externally? How to pilot my business? How can I increase my visibility? How can I increase my media campaign performances? How can I reduce my Out of Stock rate?
  23. 23. „ It is not about ‚digital marketing‘, it is about marketing effectively in a digital world. “ Ivan Mezenes CEO @ Diageo 23 • @tsachtje
  24. 24. Product . Price . Place . Promotion Marketing has not changed! 24
  25. 25. Data . Analytics . Insights Right Product: 100% fit! 25
  26. 26. Unsere Dienstleistungen 26 Right Product: The one I like! Analyze Data e.g. data insights from website analytics, SEO, SEA, Facebook, … Target People • @tsachtje „ The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. “ Peter Drucker (1909 - 2005), Management Thinker e.g. via Retargeting, Programmatic, Lookalikes, …
  27. 27. Unsere Dienstleistungen 27 Cisco Digital Engagement Tech Stack 2018 • @tsachtje Source: The Stackies 2018 – Marketing Tech Stack Awards, April 2018. Generating and making use of insights from:  CRM  DMP  DSP  3rd Party Data  Mobile & Web Analytics  Marketing Automation/ Lead Management  …
  28. 28. Unsere Dienstleistungen 28 • @tsachtje,April2018. Enough options to gather data: “MarTech 5000”
  29. 29. Channels . Touchpoints . Targeting Right Place: Everywhere! 29
  30. 30. German Army 30 Decline in number of troops from 198.000 (2013) to 179.000 (2017). Missing recruits in IT, engineering, medical care. Increasing budget for employer branding: 35.3 m €. Snapchat … and Facebook … and Social TV via Youtube … and Chatbot on Facebook Messenger Reach & Engagement Audience / Target Group: age 17 – 25. On Snapchat: 2.1 m unique filter users 7.5 m filter impressions 15.1 m ad impressions Right Place to market: Where my attention is! + • @tsachtjeSource: W&V, October 2017 and March 2018.
  31. 31. Google? Amazon? YouTube? LinkedIn? Pinterest? Others? Where do you search for information? 31 Search Engine of Choice depends on context • @tsachtjeSource: Survata, 2017.
  32. 32. Automation . Personalization . Precision Marketing Right Time: Anytime, real-time! 32
  33. 33. 33 Right Time: When I want/need it! Image Source: Google, May 2016. Micro Moments and Moments of Truth: Be there when it matters! • @tsachtje
  34. 34. 34 Be there when you are needed Source: MetricTheory, June 2017. • @tsachtje Website Passive user not knowing brand Capture emotionally via video and/or display/social Active user not knowing brand Unspecific search (e.g. SEA, retargeting on various channels) Active user knowing brand Specific brand search (e.g. SEA) Purchase / Filling lead form / Time on Site
  35. 35. 35 Very exact: Precision Marketing • @tsachtjeSource: Artefact Germany. 1. Target Group Analysis Which people do we want to target? 2. Touchpoints/Trigger Which triggers enable a precise targeting? 3. Activation-Channels Which media channels let us reach the customer in an optimal way? 4. Data Signals Which data sources are available? 5. Analytics How can we measure the success of the approach and optimize accordingly?
  36. 36. 36 I want to buy! How do I get it right now? Source: Google, May 2014. ? Local Search: Consumers search for a variety of local information: Research Online, Purchase Offline (ROPO): Consumers would buy in-store instead of online knowing they: • @tsachtje
  37. 37. So how do I start? 37
  38. 38. 38 How digitally mature are you? Source: SmartInsights, January 2019. • @tsachtje
  39. 39. 39 Source: based on PR Smith. • @tsachtje Where are we now? Ways of customer interaction, tech stack, data assets, processes, performance analysis… Where do we want to be? Vision/KPIs/Business Cases/Use Cases based on company objectives How do we get there? Positioning, data, processes (e.g. integrated customer journey), … How exactly do we get there? Digital marketing mix, tech stack, marketing plans, campaigns, targeting, … Who does what when and how? Responsibilities, systems, checklists, execution/ implementation … How do we know we will get there? KPIs, analytics, reporting, … Situation Analysis Objec- tives Strategy Tactics Actions Control S O S T A C Moving forward step by step
  40. 40. Thermostat 40 Not GAFAx? Digital Transformation needed! • @tsachtjeSource: Pollin Electronic, Xiami, Nest. Thermometer
  41. 41. Questions?