If "digital" were a "philosophy" instead of just the online channel, then we can use the insights gathered from digital channels to make ALL marketing and advertising better.

1. Digital is a
Philosophy
Dr. Augustine Fou
http://linkd.in/augustinefou
Marketing Science Consulting Group, Inc.
March 28, 2012 1

2. March 28, 2012 ‹#›

3. Context of my thinking ...
Marketing and Advertising
Chief Digital Officer, HCG (Omnicom)
Digital
Business Strategy Technology / Innovation
McKinsey Consultant PhD, MIT Mat‟l Science
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4. Background Stats
Technology Enablement
February 18, 2013 4

5. Internet Adoption
78% use internet
Source: Pew Internet, April 2012
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6. Smartphone Ownership
34-66% use
smartphones
Source: Pew Internet, Jan 2012
Source: Pew
January 2012
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7. Use of Social Networks
“online seniors
are using tools
like Facebook
to bridge the
social gaps they
face in
increasingly
isolated lives.”
Source: Pew
February 2012
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8. Top Online Activities
Source: Pew Internet, April 2012
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9. Screen-based consumption
Source: Google, August 2012 Multi-screen World
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10. Modes of multi-screening
Source: Google, August 2012 Multi-screen World
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11. Industries Already
Changed by Digital
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12. Music Industry
16 songs “the ONE song I like”
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13. Video Rental Industry
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14. 35mm Film Industry
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15. Retail – Books, Electronics
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16. Newspaper Ads Declining
Classified ad revenue Overall ad revenues fell
declining since 2000 off cliff (back to 1950‟s
levels)
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17. Newspaper Companies
Gannett Co., Inc. (GCI) - $3.4B market cap July 2012
New York Times (NYT) - $1.1B market cap July 2012
Both off 70-80% since 2007 peak
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18. Magazine Ads Declining
Circulation
declining
Ad prices
pressured by
online
alternatives
Shift away
from reach to
performance
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19. Magazine Companies
Meredith Corp (MDP) - $1.4B market cap July 2012
Martha Stewart (MSO) - $235M market cap July 2012
Off 50% (MDP) and 80% (MSO)
since 2007 peak
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20. Digital Maturity by Industry
High technology
Banking
Insurance
Travel/Hospitality
Telecom
Retail
Consumer Goods
Utilities
Manufacturing
Pharmaceuticals
Source: Cap Gemeni Consulting, Nov 2012
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21. How Digital Has
Changed the Landscape
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22. Media has Evolved
Always on
Always informed
Always connected
banner ads search ads
One-way Media Two-way Media Many-Way Media
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23. Users have Evolved
PUSH PULL
• Direct marketing People ignore “interruption media” and
• Email marketing only pay attention to information they are
• Online marketing seeking. (“Purple Cow” by Seth Godin)
• Sports marketing
• Word of mouth marketing
• Guerrilla marketing
• Blog marketing
• Event marketing
• Product placement
• In-game marketing
• Sponsorships
Advertisers push message out Users do their own research
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24. User Habit: “search”
Most modern users look
no further than page 1
Page 1
… if they can‟t find you, you don‟t exist
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25. User Expectation: “now”
Screen shots of how websites appear on Blackberries
JnJ.com Novartis.com
GSK.com
… if they can‟t find you right now, they‟ll leave.
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26. But, users research products
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27. They find info via search…
… to inform their own purchase decisions.
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28. Users trust peers the most…
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…and ads the least
Augustine Fou

29. Advertising as we know it…
..consists of advertisers shouting their ads at people.
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30. Pitching AND Catching
Instead of …
Traditional Digital
VS
Metric: Metric:
Size of Actions of
Audience Users
Pitching + Catching
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31. This TV Ad during Olympics…
Supposedly touting “the largest 4G network”
http://www.youtube.com/watch?v=c8Y_oeYlmUw
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32. … drove sales for Audible
Specific titles: Moby Dick, Odyssey spiked up
Odyssey Moby Dick
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33. Case Example: Kodak
Pitching + Catching
Canon and Fuji were harvesting ROI online because they had
better search optimized websites and better reviews on Amazon.
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34. Introducing Digital
is a Philosophy
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35. What if …
Instead of thinking of “digital” as
just the online channel, technology,
and associated tactics…
… we thought of „digital‟
as a „philosophy.‟
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36. Digital is the “thread” …
1st screen 2nd screen 3rd screen
awareness consideration choice purchase advocacy
• Television • Display Ads • Search Ads • In-store • Social Media
• Print • Search Optimization Marketing
• Radio • Email • Mobile Marketing
… that ties all tactics together.
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37. Digital Strategy Tree
Marketing Tactics
(branches)
Email Video
Digital Strategy
(trunk)
Business Strategy
(roots)
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38. Search as Research
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39. Barbecue Grills - Summer
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40. HDTVs - Black Friday
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41. Hess Truck - Christmas
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42. Godaddy – Superbowl Ads
Search volume rises with Superbowl ads and NASCAR sponsorship
SuperBowl Ads NASCAR
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43. Subway Footlongs
Launched in early 2008, but waning interest
TV Ads started
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44. Discount Double Check
Initial SuperBowl Ad, then follow-on TV ads
SuperBowl Ad
TV Ads
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45. Godiva - Demand Planning
See when users search for which products
chocolate covered strawberries (Valentine‟s)
chocolate covered cherries (Christmas)
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46. Purell Sales Driven by H1N1
Purell demand and
search volume lifted
swine flu swine flu drove 1st peak
h1n1 h1n1 drove 2nd peak
46
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47. User Self-Segmentation
The exact words users use to search indicates who they are
Physician Nurse Patient
“orexin “dosage”
“sleep
receptor “how to drug”
agonist” administer”
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48. Social Actions
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49. Just sticking display ads on FB
2012
2011
2010
4
Source: Facebook Display Ads | go-Digital Blog
… is not doing social media
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50. Venues come and go
friendster
facebook (red)
vs
myspace myspace (blue)
facebook
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51. Conversations
Offline conversations now online

52. Reviews
Reviews from others who bought and used

53. Shares
What others found valuable enough to share
# of shares

54. Likes
Brands now have direct access to users
14 million fans
historic images
25,495 like the item
1,168 comments

55. Social Actions …
Paid Advertising Social Actions
10k Impressions People telling people can
lead to the same 1 action
0.001% click-rate
Share, recommend,
comment, rate,
like, etc.
1 action (go to website) 1 action (go to website)
…are more effective
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56. Social Actions …
One-way Media Two-way Media
Search
Social
Blogs
“it‟s over after it‟s aired”
Forums
Even Superbowl ads stimulate only fleeting
recall – of the top 100 daily Google searches
how many were related to Superbowl ads?: Reviews
• Feb 1: 20 of 100
• Feb 2: 6 of 100
• Feb 3: 1 of 100 “it‟s archived and can be
• Feb 4: ZERO of 100 (forgotten by day 4) searched or mined later”
…are longer lasting
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57. Integrating “Long Lasting”..
paid marketing campaigns sustained organic traffic
…digital techniques
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58. Marketing in a Digital World
Traditional Advertising Marketing in Digital World
1. Who is our target 1. What information does
customer? target user need?
2. What message do we 2. Do we have that info
push/shout at them? available?
3. Where do we stick the 3. Is it optimized so they can
message? find and use it?
“storytelling” “answering missing links”
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59. If “digital” were a philosophy…
FROM TO
Push Pull
Target Users Empowered Customers
Search Advertising Search as Research
Social Media Social Actions
Ad Campaigns Persistent Advocacy
Integrated Marketing Unified Marketing
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60. March 28, 2012 ‹#›