Personnal Point of View on State of Digital Marketing by Dominique-Sebastien Forest

1. Point of View on Digital Market
D o m i n i q u e - S e b a s t i e n F o r e s t
www.dsforest.com

2. Agency
of the Decade
Holmes Report
2012 Top UK
Tech Consultancy
PRWeek UK

3. Agency
of the Decade
Holmes Report
2012 Top UK
Tech Consultancy
PRWeek UK“Great minds don’t think alike,
they think together”

6. Agency
of the Decade
Holmes Report
2012 Top UK
Tech Consultancy
PRWeek UK
Business Innovation Modeler
Creative Deal Maker

7. Agency
of the Decade
Holmes Report
2012 Top UK
Tech Consultancy
PRWeek UK
1997: How can we reduce the volume of calls associated with check up on
order status and repeat purchase?
1998: How can we find an expert on the internet and interact with him?
1999: How can we use video games to develop engagement and collect user
data?
2001: How can we make money with Porn on mobile devices?
2002: How can we monetize the important traffic on Web Portals?
2004: How can we make money with music downloads?
2006: How can we produce content that is relevant for the web, cheaper and
monetize it differently and efficiently?
2009: Create the foundation of what a media business should become.

8. Agency
of the Decade
Holmes Report
2012 Top UK
Tech Consultancy
PRWeek UK
How can we bring the PR agency at
the center of the marketing
activation and product engagement?

9. Inside the Minds:
Global Marketing Leadership Strategies
Published by Aspatore Books, a Thomson Reuters business
One Problem, One Solution, One Application.
‘Edison didn’t invent the light bulb by trying to improve the
candle!’
“Social Media is like sex. It needs to be done with
passion, commitment, openness to the other person needs
and desires, or its not worth doing it as it won’t be a fun
and pleasurable experience.”

10. State of the market
… a look at the vectors of change

11. THE END OF THE 1 WAY ADVERTISING
Product is advertising and marketing is all about
CONVERSATION & ENGAGEMENT

12. A MEANINGFUL CONVERSATION HAPPEN WHEN:
• Ability to identify the real issues
• Being able to create the right environment to address those issues
• And have the courage to step out of our safe zone

13. The END of the ONE WAY AD
Intelligent phone, Product Review, Cloud computing and BarCodes have now made it
impossible for marketers to create lies and shoppers have become savvy as they
believe 50% of what other people tell them but only 10% what advertisers tell them.
http://shopsavvy.com/

14. The END of the ONE WAY AD
• The movie Naked Brand by Jeff Rosenblum illustrates perfectly that one way advertising is Dead, and the Product IS Advertising.
• Questus, Jeff Rosenblum agency, recently won best Agency of the Year at the iMedia agency awards and 2 Davey awards, with its
approach base on an ‘Open Conversation’ with the clients, telling them the good and ‘not good’ stuff, and asking them to help us in
becoming better....
• It requires a level of transparency NEVER experienced before, and marketing/advertising become part of everyone’s responsibility; from
customer service, to warehouse and even accounting. Striving to create an ‘AWESOME’ client experience on all points.
Play MOVIE

15. OWN, PAID and EARN Media, and NO MEDIA
• Advertising and media are experiencing a moment of convergence. The lines are blurring between paid, earned, and owned media. Each is bleeding
into the other, blurring the lines between where advertising, marketing, and user-generated media begin...and end.
• Joseph Jaffe with his books ‘Flip the funnel’, ‘Join the conversation’ and Life after the 30 seconds spots taught us a few good lessons:
– Move away from telling and selling and start caring and sharing!
– Forget Social Media, Let’s put social back into Media
– Community is the NEW Demography
– How can you expect to effectively talk to a customer if you can’t talk to each other
– If someone tells you that you are too expensive, its because you don’t provide enough value

16. PR Agencies…
Based on how the market is changing what is or
should be advertising, our attention moves towards
PR Agencies, who could become the strong force of
tomorrow.
Edelman expertise goes well beyond traditional PR
It is NOW the largest Social Media Agency in the World and has put
together the most reputable team of Digital Thinker.
Many questions remain:
- Impact of the explosions of boutique size firm?
- Counter attack of agencies?
- Client understanding?
- Ability to change and adapt to the structural transformation
- Internalisation of PR services and expertise by large clients

17. Marketing 1:1
• Initiated 20 yrs ago with the introduction of ‘direct marketing’
• 1 on 1 marketing is now define by the concept of Data Driven marketing, following and interacting with 1
customer at a time in multiple environments and thru the entire decision, acquisition and consumption
process
• Centralisation of user identity, Mobile connectivity, Standardization of data exchange protocol and Social
Exposure are the key drivers

18. Market limitation
• With changes comes Adaptation
• It is always unclear how fast clients will adapt
• The Canadian market is showing a slowdown in speed of growth regarding digital
advertising and if the existing players forecast growth that exceed the market, they
have to keep in mind that they will need to steel market share and have the ability
to identify from who…
– Some players will be BIG losers
• Pressure from US players is driving more Friend-Enemies scenarios

19. STATE OF THE MARKET
Real Time Bidding

20. Social Media, Time Spent and Available Inventory
In the latest IAB Canada CMOST Research, it was proven that:
• Social Media, eCommerce and online TV have been the major factor
• In the last 10 years, online time spent has more than doubled
• This rapid growth is creating a shift with Available Ad Inventory VS Demand, with about 4 times more
available inventory than demand for ad banners

21. Performance Targeting Tools
Association of an Ad with a Publisher Brand
To target a specific buyer, an advertiser would buy ads from a publisher that had an audience corresponding to
the target. This is no longer necessary.
Smart cookies, IP mapping and other rich data targeting tools and platforms have emerged and allow advertisers
to target users specifically, independently of the website they are on.

22. The creation of a NEW Eco-System

24. What is Real Time Bidding
RTB, a data-driven programmatic buying model, allows advertisers to bid on qualified display media in
real-time, at the impression level.
This happens in an environment where the Supply meets the Demand, like a marketplace, commonly known
as an Ad Exchange.
Impact of RTB & Ad Exchange Delivery Model
• For each impression, the ad exchange callout up to an unlimited number of bidders and ask them if they are interested in buying an impression.
• Reduce buying waste – Buyers buy precisely what they want
• The highest bidder wins the auction to maximize revenues.
• Minimize the number of client side redirects.
• Buys are blind, if we want to. Buys are based on KPI and mask the source.

25. Ad Exchange – Ad Extension
Advertisers
sites visitors
TC Network
Sites visitors
Newsletters
subscribers

26. The Impact
The impact is hurtful to traditional media company in commoditizing traditional banner
advertising, driving avg CPMs down.
The Economist called it: The King of Data vs King of Content.
And right now Data is winning over Content
http://www.economist.com/node/18651104
It is also has an impact on Agencies, who are trying to protect their position as a media buyer in the
eco-system by launching Private AdExchanges… but it’s not clear if it will be sustainable!
Click for full article

27. And the impact on Ad Price is now expending to previous winners....
http://www.businessinsider.com/why-facebook-ad-prices-collapsed-
in-q1-2012-2012-4#ixzz1ssTW8NsL

28. A NEW ECOSYSTEM

29. Old Advertising Ecosystem

30. Simplified version of the ecosystem of ‘yesterday’

31. Edelman at the Center of the Digital Marketing UNIVERSE
Product
Price
Pipeline
Creative Agencies
Ad Agencies
Publishers
- Audience
- Content Creation
- Integration
Brand
Digital Marketing
Consumers
Paid Media
Owned Media
Earned Media
Ad Networks
- Audience
- Extended Reach
- Better value for $$$
Paid Media
Direct Marketing
- Sampling - Events
- Direct Mail/eMail - Loyalty Programs
Pipeline (direct access to client: e-commerce)
Ad Exchanges
- Real Time Bidding
- Audience extension
- Inventory Management
EDELMAN
Marketing Engagement
Marketing Activation
DELIVERY
- Strategy
- Conversaton
- Conductor of the Digital
Marketing Orchestra
Content Providers
Measurement and
Data Management Platforms
Technology Providers Fulfilment Providers External Development DMP, SSP, DSP, ATD
Paid Media
Content
Data
- acquisition
- management
-1on1 marketing
Measurement
Social Media
- Community management
- Reputation management
Public Relations
Education
Development
- websites
- applications…
Operating Systems
- Native integration
within operating
systems like 'MAPS'

32. Specialist vs Collaboration
• Efficiency take time and experience
• Clients biggest challenge is to have deliver what was sold to them
• Not a lot of ‘true experienced specialists’
• Speed and Time to market (when to get in & at what cost )
Rule of Triple Constrain: Something must give up Gartner Hype Cycle

33. WINNERS THINK DIFFERENTLY
• Everybody lie all the time, its human nature and impossible to avoid as
personal filters, interpretation and frame of reference will always temper with
reality.
• Pay attention to what they are NOT telling you
• And always make sure you understand the Intention

34. “Edison didn't invent the
light bulb by trying to
improve the candle!”

35. Business Model Innovation (BMI)
BMI refers to the creation, or reinvention, of a business itself. Whereas innovation is
more typically seen in the form of a new product or service offering, a business
model innovation results in an entirely different type of company that competes not
only on the value proposition of its offerings, but aligns its profit formula, resources
and processes to enhance the value proposition, capture new market segments and
alienate competitors.

36. Stop trying to recreate the OLD on NEW platform, it doesn’t work
Recreating the OLD on
NEW platforms NEVER worked

37. 1 problem – 1 solution – 1 product
• The Unique Selling Proposition needs to address a real issue FOR THE CONSUMER
• USP should never be define to address company challenges
• Great products don’t require much advertising or promotion
– Facebook
– Google
• Nobody will share the real details on how why or how they became successful
– There is to many Gurus and Magic Recipes don't exist
– The truth is usually kept secret
• 95% of Google 1st billion $ in revenue came from Porn and Online Gambling
• 45% of Facebook revenues for the first 3 years was from selling Virtual Goods at user’s birthday
Clear USP and Simple problem solving approach

38. Great IDEAS
are simple, easy to explain and do NOT require
a Powerpoint presentation to understand!

39. I want to find a place that always carry the book I’m looking for…
... and I want it NOW !

40. I need a place to find affordable trendy shoes for my kids, without going to the
shopping mall...
And I need them FAST

41. A place where ANYONE can sell ANYTHING
…at a fair market price

42. A place to share pictures with friends and classmates !

43. “What are we eating?”

45. • Going beyond branded content
• Contextual, Dynamic and Content
Driven
• Focus on Engagement
• Super-cookies and Multiplatform
• Becoming part of the content and
bringing value to the user experience
The ad-format revolution

46. The ad-format revolution

47. TV is moving online
• 30% of TV content is done online, and that is NOT including
consumption done of tablets and internet connected TV, like
AppleTV or GoogleTV
• A fair estimate that over 40% of TV content is consume
online, seem accurate and the trend is accelerating
• This could drive a MAJOR shift in where and how the
advertising $ are spent and changes in Specialised Content
approach VS Speciality Channels VS General Video Portal

48. LEGISLATION

49. Regulations and Legislation could change EVERYTHING
A legislation that would limit the usage of such data could greatly the evolution of the market being based
on data information.
Latest spectacular IPOs ( Facebook, LinkedIN ), are putting the value of the data in the center of those
company valuation. Legislation could greatly affect their stock value and the overall stock market.
4 main legislations – regulations are on the table:
•SOPA (USA )
•CISPA (USA)
•OBA ( Canada – USA )
•AntiSpam Law ( Canada )

50. SOPA ( Stop Online Privacy Act )
• The Stop Online Piracy Act (SOPA) is a United States bill introduced by U.S. Representative Lamar S. Smith (R-TX) to expand the ability of U.S. law enforcement to fight online trafficking in
copyrighted intellectual property and counterfeit goods. Provisions include the requesting of court orders to bar advertising networks and payment facilities from conducting business
with infringing websites, and search engines from linking to the sites, and court orders requiring Internet service providers to block access to the sites. The law would expand existing
criminal laws to include unauthorized streaming of copyrighted content, imposing a maximum penalty of five years in prison. A similar bill in the U.S. Senate is titled the PROTECT IP
Act (PIPA).
• Proponents of the legislation state it will protect the intellectual-property market and corresponding industry, jobs and revenue, and is necessary to bolster enforcement of copyright
laws, especially against foreign websites. Claiming flaws in present laws that do not cover foreign-owned and operated sites, and citing examples of "active promotion of rogue websites"
by U.S. search engines, proponents assert stronger enforcement tools are needed.
• Opponents state the proposed legislation threatens free speech and innovation, and enables law enforcement to block access to entire internet domains due to infringing content posted
on a single blog or webpage. They have raised concerns that SOPA would bypass the "safe harbor" protections from liability presently afforded to Internet sites by the Digital Millennium
Copyright Act. Library associations have expressed concerns that the legislation's emphasis on stronger copyright enforcement would expose libraries to prosecution. Other opponents
state that requiring search engines to delete a domain name could begin a worldwide arms race of unprecedented censorship of the Web and violates the First Amendment.
• On January 18, 2012, the English Wikipedia, Reddit, and an estimated 7,000 other smaller websites coordinated a service blackout, to raise awareness. In excess of 160 million people
viewed Wikipedia's banner. Other protests against SOPA and PIPA included petition drives, with Google stating it collected over 7 million signatures, boycotts of companies that support
the legislation, and a rally held in New York City.
• In response to the protest actions, the Recording Industry Association of America (RIAA) stated, "It's a dangerous and troubling development when the platforms that serve as gateways to
information intentionally skew the facts to incite their users and arm them with misinformation", and "it's very difficult to counter the misinformation when the disseminators also own
the platform.“
• The sites of several pro-SOPA organizations such as RIAA, CBS.com, and others were slowed or shut down with denial of service attacks started on January 19. Self-proclaimed members of
the "hacktivist" group Anonymous claimed responsibility and stated the attacks were a protest of both SOPA and the United States Department of Justice's shutdown ofMegaupload on
that same day.[2]
• Opponents of the bill have proposed the Online Protection and Enforcement of Digital Trade Act (OPEN) as an alternative.[3][4] On January 20, 2012, House Judiciary Committee Chairman
Smith postponed plans to draft the bill: "The committee remains committed to finding a solution to the problem of online piracy that protects American intellectual property and
innovation ... The House Judiciary Committee will postpone consideration of the legislation until there is wider agreement on a solution."

51. CISPA ( Cyber Intelligence Sharing and Protection Act)
• The Cyber Intelligence Sharing and Protection Act (CISPA) is a proposed law in the United States which would allow for
the sharing of internet traffic information between the U.S. government and certain technology and manufacturing
companies. The stated aim of the bill is to help the U.S Government investigate cyber threats and ensure the security of
networks against cyber attack.[1]
• CISPA has garnered favor from corporations and lobbying groups such as Microsoft, Facebook and the United States
Chamber of Commerce, which look on it as a simple and effective means of sharing important cyber threat information
with the government.[2] CISPA has been criticized by advocates of internet privacy and civil liberties, such as the
Electronic Frontier Foundation, the American Civil Liberties Union, and Avaaz.org, because they argue it contains too few
limits on how and when the government may monitor private individual’s internet browsing information.
Additionally, they fear that such new powers could be used to surveil the general public rather than to pursue malicious
hackers.[3][4]
• Some critics saw CISPA as a second attempt at strengthing digital piracy laws after the anti-piracy Stop Online Piracy Act
became deeply unpopular.[5] Intellectual property theft was initially listed in the bill as a possible cause for sharing web
traffic information with the government, though it was removed in subsequent drafts.[6]
• The legislation was introduced on November 30, 2011 by U.S. Representative Michael Rogers (R-MI) and 111 co-
sponsors.[7][8] It was passed in the House of Representatives on April 26, 2012.[9] President Obama has argued that the
bill lacks confidentiality and civil liberties safeguards and has threatened to veto it

52. OBA
Self Regulatory Program for
Online Behavioral Advertising
http://www.iab.net/media/file/OBA_OneS
heet_Final.pdf

53. Anti-Spam Law
( by the Privacy Commissioner of Canada )

54. RETAIL AND E-COMMERCE

55. An under tap market
• Cefrio (Netend@ances 2011)
– 52% of Canadians made a purchase online
in the last 12 months
– At least 25% in the last month
– Confidence is growing toward online
purchases
– Young adults are leading online purchases
– But only 4% of purchases are done online…
– All the indicators are telling us it’s a market
that’s about to BOOM

56. Is 2012 the year of e-Commerce?
Other specialists seems to think so:
• Mitch Joel on April 3rd 2012 wrote: ‘ The E-commerce Tipping Point’
– http://www.twistimage.com/mobile/blog/archives/the-e-commerce-tipping-point/
– He is predicting that its about to become a whole lot bigger
– With a million stores now in the palm of your hand
– And the future belongs to selling everywhere at anytime
• PwC: Even with social, stores aren’t keeping up
– 72% of online shoppers consider themselves ‘very accomplished’
– They like online shopping for:
• 24/7 convenience
• Pricing
• Free and fast delivery
• Wide range of products
• Google is releasing a full suite of e-commerce products
– Launching product buy functionalities
– Free e-commerce platform for S&M businesses

57. Manufacturers want to take control back
• Control the user experience
– As consumer experience is part of the product perception, it becomes vital to ensure that the consumers receive proper support.
– Not controlling the full consumer experience is becoming problematic for a lot of manufacturers.
• Eliminate co-op marketing $$$
– With pressure from retailers to reduce the wholesale price of their products. The 2% to 3% required for coop marketing is bothering more and
more manufacturers.
– Poor control over the spent and product placement
– Increase in shelving position premium
– Premium presentation units at the expense of the manufacturers
• Control pricing
• Retailers are diversifying with everyday products to reduce the pressure of online purchases with focus on Grocery and Pharmacy
products
– Walmart
– Shopper Drug Mart
– Canadian Tire

58. Virtual Retail
• Virtual Stores are now rising (Well.ca)
– First test launched in Toronto Subway on April 1st 2012
– Same day delivery is available
– No rent, Free shipping
– First time e-commerce is reaching directly where shoppers are… just like classic retail
– Some companies like Dominos are forecasting that by 2015, 25% of there sales will be done from mobile phones
http://www.theglobeandmail.com/report-on-business/virtual-shopping-gets-real-at-toronto-subway-station/article2389896/

59. Media companies, the retailers of tomorrow?
• Why does retail exist?
– Help the consumer to make a purchase decision
– Provide quality chosen products
– Reputation
– Footsteps ( volume of shoppers )
– Convenience
• Media Corporations have
– Pre-shopping publications to help consumers making a purchase decision
– Propose quality chosen products
– Have a reputation
– Have an audience (volume of potential shoppers)
– Often deliver their products daily to their consumers (Newspapers)

60. TABLETS

61. A PortableTV?
• The iPad 3
– The launch of the iPad 3 was quite telling in what is important for users
• Higher resolution screen from 132ppi to 264ppi
• Faster graphic card and processing chip for better image processing
• And HD 5megapixel 1080p camera
• Definitely a popular portable gaming console

62. A tight Eco-System
• Apple is about design and user interface
• But it’s now ALL about the operating system
• iCloud might be the Tsunami that will give
them world dominance
• The eco-system is close, let Apple control the
pipeline completely!
• It also creates a long term purchase behaviour
of all of Apple’s product line

63. MOBILE

64. The future of mobile ( Business Insider )
• In 2011, the number of smart phones sold exceeded the number of PCs sold
• By 2014, the number of mobile smart mobile devices will DWARF the number of PCs
• And THAT WILL CHANGE EVERYTHING…
How we shop, how we consume content, how we interact, how we LIVE!

65. The future of mobile ( Business Insider )
• The DELTA between mobile ‘time spent’ and ‘ad dollars’ is large and will most likely stay
large, and the monetization model could be very different.
• 30% of GILT Black Friday revenues was from mobile
• 38% of US Consumers have used smartphones to buy products or services
• Apps are now a $10Billion market growing at 100% per year
• Most new internet users are MOBILE

66. Point of View on Digital Market
D o m i n i q u e - S e b a s t i e n F o r e s t
www.dsforest.com