Marketing 2.0: Transformation In a Web 2.0 World

1. Marketing 2.0: Transformation In a Web 2.0 World Denis Gaynor, Josh Kwan, Aloke Fernandes & Adi Kuruganti

2. Agenda • Marketing 2.0: Definition and Objectives • Industry Landscape • Important Players & Strategies • Learnings and proposed frameworks • Next Steps

3. Marketing 2.0 – Definition • What is Marketing 2.0? • Marketing 2.0 is the strategy for targeting and influencing consumers in a world in which technology has enabled media proliferation, customer empowerment, and information transparency

4. Objectives – The 3 D’s of Marketing 2.0 Provide the brand manager with a framework and toolset to exploit emerging Web 2.0 technologies: • Describe what has changed in the media landscape including wide ranging implications • Develop strategies on how to participate and ultimately influence consumers with this new conversation philosophy • Define metrics to measure effectiveness of Marketing 2.0 efforts

5. State of the Industry: What is the media landscape? • Consumer online usage is high • 72% of U.S. adults use the Internet, and 59% of home Internet users have broadband access. (Source: Pew Internet Project) • 67% of U.S. adult Internet users have purchased a product online. (Pew Internet Project) • Media consumption is shifting toward new formats • Influence of traditional media is declining: Ratings for the 3 major network newscasts fell 28% from 1993 to 2003, from 40.7 million to 29.3 million viewers. (Nielsen Media Research) • Consumer-generated media is on the rise: 70,000 new blogs are created every day and bloggers write 700,000 new posts daily and 50 million people read blogs. (Technorati, Pew Internet Project) • Ad spending is slowly migrating away from traditional media: Internet advertising grew 13% to $8.3 billion for 2005 while TV and radio categories declined in the overall $143.3 billion advertising industry. (TNS Media Intelligence) • Proliferation of devices • Consumers are using a wider variety of devices, from video iPods to Sony PSPs to Treos, so companies must adopt a larger array of technologies to reach consumers.

6. State of the Industry: Key trends • Ascent of “The Millennials” • They multi-task across a variety of media, so marketing promotions must be cross-platform & integrated • Anywhere, anytime demand for content means companies must follow consumers to where and when they consume media • Speed and magnitude of hype is accelerating • Group-think on blogosphere means that more people will jump on a new hot trend more quickly than ever before. On the other hand, the fads will fade faster, leading to shorter cycles of attention

7. Key Players

8. Strategies

9. Marketing 2.0 Framework DESCRIBE DEVELOP DEFINE • Where are consumers seeking information? • What are consumers saying? • What media are consumers using? • What are the marketing objectives? • What are the creative marketing opportunities? • What are the messages and medium for stimulating buzz? • What are the best ways for participating? • Who are the influentials? • How do I use customer feedback in product development? • How do I measure against objectives? • How do I measure buzz? • How do I measure ROI from online campaigns and Marketing 2.0? • How do I compare effectiveness of offline campaigns with online campaigns? Amazon Reviews, Engadget Microsoft’s Origami, Quickbooks Groups Technorati, Nielsen BuzzMetrics

10. The New Marketing Brand Manager Blogs Trends Engage/Answer Advertising/ Sponsorships Brand Monitoring Target Influentials Corporate Blog Reviews Podcasts The Conversation Mobile Search Networks

11. Marketing 2.0 Effectiveness Awareness Consideration Purchase Loyalty Media Planning • TV • Radio • Outdoor • Online Creative • WOM • Print • Direct Mail • TV • Online Search • Online Search • Websites • Promotion • Sales Force • Websites • Customer Service ROI Measure Media Effectiveness Offline Metrics • Awareness • Attitudes • Reach • Purchase Intention • Sales • Distribution Coverage • Customer Satisfaction • Repeat Purchase Online Metrics • Page Impressions (Reach) • Conversations (Buzz) • Click Through Rate • Sales • Inquiries • Site Visits • Blog activity • Relays

12. Next Steps – Who we’ll contact • Brands (hopefully) • P&G, Johnson & Johnson • Online companies • Yahoo, Google • Blogs: Technorati, Blogger • Metrics • Nielsen Netratings • Word of Mouth Marketing Association • Intelliseek

13. Appendix

14. Appendix Future of Online Advertising • Customers collaborate with peers in the digital marketplace to co-create targeted content • Proliferation of social networks that form basis of customer identity • Customers demand opt-in feature. Generic ads Tivo’s out • Proliferation of platforms that customers use to communicate and get information • Podcasts, blogs, RSS feeds • Advertisers need to use multiple channels to reach target customer • Digital share of advertising dollars said to grow to 10% of overall ad spending to reach $23B by 2010 • Internet rich media ads expected to achieve CAGR of 31% ~$5.7B • Search (focus on contextual) to achieve CAGR of 14% ~ $9.7B • In-game advertising to achieve CAGR of 50% ~ $432M • Mobile platforms ~$2B