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Kent Wertime
Chief Operating Officer
Ogilvy & Mather Asia Pacific
The Global User Base
Source: http://www.internetworldstats.com/
Asia
44% of global
U.S.
11.7%
Rest of world
88.3%
U.S.
66%
Rest of world
34%
China 22.9%
Japan 4.6%
India 4.7%
The Digital Device Shift
1 Million new devices
connected daily
The Digital Device Shift
Toward 10 Billion
8
DigiMarketing Shift:
A defining topic for
a generation of marketing
Three Eras of Digital Marketing
New &
Experimental
90’s
Mass &
Mainstream
00’s
Predominant
& Pervasive
10’s
Global Ad Spend
$500 Billion
2012f
Global Ad Spend
2004
41.5%
4.3%
6.5%
26.1%
15.4%
6.0%
43.7%
18.6%
5.2%
16.6%
9.8%
5.9%
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
2012f
Global Ad Spend
2004
$16B $100B
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
India Ad Spend
2012f
India Ad Spend
2004
38.5%
0.6%
2.0%
47.2%
4.3%
7.4%
41.6%
4.5%
4.8%
40.7%
2.4%
5.6%
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
2012f
India Ad Spend
2004
$17M $353MM
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
Confidence Gap:
A continued lag,
an under-invested market
Marketers Still Lag Consumers
Source: eMarketer 2008, EdisonMedia Research 2008, MRI 2008, Nielsen Media Research 2008,
Neo@Ogilvy Media Analytics, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associate. November 2009 Report,
eMarketer Jun 2010 "Online Ad Spend Bounces Back"
and Forrester Dec 2010 "Understanding the Changing Needs of the US Online Consumer"
% Consumer Time Spent Online
% Advertising Dollars Spent Online
The Marketing Confidence Gap
DigiMarketing Imperatives
01 From P-O-E to P-U-C
Marketer Organizing Principle - POE
Paid Owned Earned
Consumer Organizing Principle - PUC
Participation Utility Contribution
More tweets, lower the price
Consumer Organizing Principle - PUC
Participation Utility
Source:MobileAppsWorldwideForecast2011-2015
9.00AMSINGTEL
Friday, March 17
9:00
2011 2015
89.0 B
18.4 B
Nike, Becks,
Smirnoff, Tiger beer
& Adidas help you to
find activities around
your location
North Face
provides you
with the latest
Snow reports
NIVEA tells you
what sun lotion
you should use
Once a week
Once a quarter
Branded UtilityProliferation
Consumer Organizing Principle - PUC
Participation Utility Contribution
Loyalty / Purchase Influence / Word-of-Mouth
New Dimension of Customer Value
Customer Contribution
• Fan sites
• Viral videos
• Blog postings
• Voting
• Consumer critiques
• Co-creation
• Crowd sourcing
• Customer feedback surveys
• Loyalty clubs online
• Virtual fan events
• Online corporate events
• Online pre-ordering
• Friend-get-friend campaigns
• Bulk purchasing online
• Participation in online promotions
• Use of company’s virtual goods
• Product customization and sharing
• Secondly markets (E-Bay)
Customer Contribution
Inviting community members of to openly
submit their ideas for the new Muji product.
More than 50 of Muji product has been
developed from this community.
Community Driven Product Innovation
02 Content Ecosystems
Content = Digital Bait
WATSON
on Jeopardy!
Topline
Results
XXX in validated
Lead Venue
XXX in Win
Revenue
03 Social at the Center
04 Data Value Exchange
Data Value Transaction
 Predictive models / Recos
 Customer user preferences
 Personal comparisons to average
 Value prompts
 Offer bundles
 Participation incentives
 Co-brand data sharing / offers
 Personal habits tracking
05 Managing Consumer Trust
(Constantly)
Tim Berners-Lee, Developer of the Internet
BBC Interview, March 18, 2008
On personal data:
“It’s mine – you can’t have it.
If you want to use it for something,
then you have to negotiate with me.
I have to agree. I have to understand
what I’m getting in return.”
The DigiMarketing Imperative
The DigiMarketing Imperative
The DigiMarketing Imperative
The DigiMarketing Imperative

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