Digital Marketing Overview

2014

Agenda
1.
2.
3.
4.
5.
6.
7.

Importance of digital media

Engagement
Influencers
Social CRM and ORM
Analytics and ROI
Future Trends
Industry

Is digital media important?

Digital Media Brand Equity Perspective

Brand equity: A set of brand assets and liabilities linked to a brand name and
symbol, which add to or subtract from the value provided by a product or service
David Aaker
Brand
Equity
Awareness

Loyalty

Quality

Advertisin
g

Engageme
nt

WOM

Communit
y

Associatio
n

Transparen
cy

Responsiv
e
Cares

Earlier Consumer Decision

journey
The Funnel
Marketers have long used the famous
funnel metaphor to think about touch
points: Consumers would start at the
wide end of the funnel with many
brands in mind and narrow them down
to a final choice.
Consumers started with a large number
of potential brands in mind and
After purchase, their relationship with
the brand typically focused on the use
of the product or service itself.
Source: Branding in the Digital Age: Youre Spending Your Money in All the Wrong Places.

Fundamental changes in
purchase
Consider & Buy: Marketers often
overemphasize the consider and
buy stages of the journey,
allocating more resources to
building awareness
Evaluate & Advocate: Marketing
investments that help consumers
navigate the evaluation process
and then spread positive word of
mouth about the brands they
choose
Bond: If consumers bond with a
brand is strong enough, they
repurchase it without cycling
through the earlier decisionjourney stages. Helps in building
brand community

Source: Branding in the Digital Age: Youre Spending Your Money in All the Wrong Places.

Impact on Purchase Funnel

Global
51% of brand word of mouth on
internet is due to TV advertising 1
19% of word of mouth is due to PR,
events and brand news

24% decline in confidence on TV

advertising2
18% increase in trust on Word of
Mouth since 2007 for purchase

India
77% of internet users refer to
online reviews before purchase3
Second most trusted source after friends
and family

21% decline in confidence on TV

advertising for purchase

Data2decision research 2013 http://www.warc.com/LatestNews/News/TV_advertising_is_vital_to_word_of_mouth.news?ID=31155

Nielsen Trust in advertising (2012) http://www.nielsen.com/us/en/reports/2012/global-trust-in-advertising-and-brand-messages.html
3
Nielsen India Release (April, 2012) http://www.fi.nielsen.com/site/documents/NielsenTrustinAdvertisingGlobalReportApril2012.pdf
1

Brand advocacy is an
important driver of brand
consideration and choice
in the age of social web

Importance of digital media

Brand
Engagement
Sales

Consumers spend more time on digital

media
Influencers, Engage with loyalists
Direct sales channel
Reduce lead costs

Feedback

Instant feedback
Reduce online negative word of mouth

Research

Better understand consumption patterns,

brand perceptions in social context

Brand Community

Build digital brand asset for brands such as

community

Digital Media is now an important part of the

communication mix

How should I run a digital campaign?

Brand Engagement

Touch Point
Since consumer spend more time on digital, it
becomes an important touch-point
Brand Recall
Aid brand recall
Loyalty
Sharing
Brand activity is visible through social nature of
digital media
Engagement requires

Research - Right understanding of audience

Targeting Effective targeting through media planning tools
Execution Creative that integrates desired brand positioning with
target audience understanding

Digital Campaign
Stage 1
Setting
Objectives
Metrics
Brand
Awareness
Sales
Share of Voice
Sentiment
Growth in
community
Engagement

Stage 2
Conceptualize

Stage 3
Execute

Stage 4
Measure

Factors
1. Brand
personality
2. Integration
with overall
communicati
on
3. Understandin
g Target
Audience

Factors
1. Decide
Platforms
2. Media Buying
3. Engagement
tools
4. Optimizing
media (CTR,
CPM, CPC)

Factors
1. Use of
analytics
tools
2. ROI Sales,
Community
membership,
Engagement

Key success factors

Aligned
with
brand
persona
lity

Why digital campaigns go

wrong?

Key
facto
rs
Integrat
ed

Target
Audienc
e

Not aligned with the overall

brand positioning
Not integrated with other
communication such as TV,
Print, Radio etc.
Lack of understanding of the
digital habits of the target
audience

Which platforms are more important for a

campaign?

Platforms
Important question to
ask?
Is the platform aligned
with my objectives?
Does it help build a brand
community?
Is it helping create a
digital asset?

Source: Mahesh Murthy - RoI in social marketing: some metrics. By Mahesh

Murthy of Pinstorm

Common Mistake
Chasing Facebook Fans!

Typically less than 5%

of your updates are
shown to your fans
You need a sponsored
story to reach your own
fans
Every time you need to
engage with Fans, you
need to spend more!

Is Facebook page a digital asset for

a brand?

Source: Mahesh Murthy - RoI in social marketing: some metrics. By Mahesh

Murthy of Pinstorm

Why did this happen?

Facebook is a Social Networking platform
With more ads and brand updates, user loose
interest, which harms Facebook as a platform
Facebook stock price was declining
To boost revenues, stock price, brands were asked to
pay more to reach their own fans
Facebook has launched new ad formats In feeds, and video!

Pepsi vs. Coke during IPL

2013
IPL 2013 season

Pepsis share of voice was back to the same level after investing
heavily in IPL 2013
Source: Pepsi vs. Coke study Drizzlin Media

How important is the creative aspect?

Red Bull Stratos

The Consequence

Interbrands top 100 brands 2012 Most of

them have not spent too much on Media
Buying!

Strong digital campaigns should be a part of

the overall Integrated Marketing
Communication

Example: Dove Real Beauty

Dove's real beauty story is
almost 9 years old, which began
with market research in 2004 that
indicated that only 4% of women in
the world consider themselves
beautiful.

4%

Doves campaign
received more than 60
million visits

of women in the world

consider themselves
beautiful.

Is there any other way of engagement?

Information flow in a group depends on

influencers

Importance of influencer engagement

Source: http://www.marketwired.com

Influencers

Followers

An existing follower base

Credibility

Credibility on a topic e.g. cooking, automobiles

Community

Belong to a community (social and psychological) and have a strong

influence

How to go about influencer engagement?

Identify
Target
Audience

Identify
influencers
Tools (Statsit)
Blog
Aggregators

Promote
Influencer
engagement

Measure
Engagement

Examples

How to manage angry consumers on social

media?

Social CRM
Not responding to angry consumers on social media on time has the
potential to be a PR disaster!
Consumer are powerful
Rants can go viral
Consumer can organize in groups
It requires you to be
Proactive
Responsive
Sympathetic to problems
Engaging in follow-up
Common metrics
First response Turn Around Time (TAT)
Resolution response TAT

Tools

How should I measure whether the activities

on digital media have been successful or not?

ROI
ROI from a tactical to strategic continuum
Strategic

Tactical

Sales

Equity

Share of Voice
Growth in traffic
Engagement
Growth in Fans

Sentiment

Market Share

Growth in
followers
Click through rate Cost per click

Future Trends

Second Screen
2008-11
Additional
Country
Internet users
(Mn)
China
215
India
69
Indonesia
37
Philippines
28
U.S.A
15

Developing
countries are driving
global internet and
mobile usage growth1
Smartphones (2013)

India Stats(2013)

2011 Internet
Users (Mn)
513
121
55
34
245

Y/Y Growth

Population
penetratio
n

12%
38%
22%
44%
1%

Mobile Internet Usage

0.38
0.1
0.23
0.35
0.79
2

India (2013)

70-80% growth in smartphone

sales in 2014 will be driven by
BRIIC nations
61.4% growth prediction in
smartphone sales in India
19% CAGR in BRIIC markets
predicted between 2012-2016

74% of all internet users use social 39.7 million active mobile
internet user base
media
62 million urban social media users32.5 million active social
82% penetration of social media networking users
in college students
18.2 million of active Mobile
77% of Indian users use mobile for Internet users access social
social media
media

KPCB 2012 Digital Trends http://kpcb.com/insights/2012-internet-trends

2
Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau (IMRB)
http://www.informationweek.in/internet/13-03-14/77_percent_of_indian_users_use_mobile_for_social_media.aspx
1

Canalys (2013) http://www.canalys.com/newsroom/developing-markets-will-drive-smart-phone-market-growth-2013

Importance of multi-screen

Social TV
Internet did not kill TV!
Socially integrated viewing experience has assuaged the initial
fears of some professionals in the television industry who
wondered if social media would drastically reduce the amount of
time people might spend in front TV
Social media is now recreating group viewing with people
talking about programs on spaces created by broadcasters
This intersection of TV and social media has led to the emergence
of Social TV
online social interactions that occur between viewers
while watching television

Social Media is helping TVCs

Growing popularity of social media has coincided with the decline of a consumers use
of traditional media1.
Growth of social media is driving popularity of Television Commercials (TVCs).

Spikes in online conversations around huge events like the Cricket matches, IPL,
or the Oscars show how digital conversation is driving more people to tune in
43% people follow social media conversations about a TV program on a
companion mobile device while watching the program2
Social Media users following conversations while watching TV (2013) 2
Category

Developing Countries

Developed Countries

Passive listening

30%

17%

Active engagement

27%

10%

Need to target engaged audience

due to declining attention span of
consumer

S.no
:

Attention span statistics1

Data

The average attention span in 2012

8 seconds

The average attention span in 2000

12 seconds

1Treadway, C., & Smith, M. (2010). Facebook marketing: An hour a day.Indianapolis, IN: Wiley
2
Motorola engagement research. Analysis of video consumption habits of 9,500 consumers across 17 markets globally
http://mediacenter.motorola.com/Press-Releases/Mobile-Devices-and-DVRs-Shifting-Global-Media-Consumption-3c1d.aspx
3

Harald Weinreich, Hartmut Obendorf, Eelco Herder, and Matthias Mayer: Not Quite the Average: An Empirical Study of

Examples: Super Bowl

Super Bowl XLVII set a new All-Time Record in social TV with 30.6M social media
comments. Twitter accounted for 27.7M, public Facebook accounted for 2.8M

urces
ps://wordpress.bluefinlabs.com/blog/2013/02/04/super-bowl-up-150-in-social-tv-sets-new-all-time-record/
p://mashable.com/2012/02/06/super-bowl-xlvi-social-tv-stats/

Sustainability
One of the biggest challenges in
sustainability till now has been the
unwillingness of consumers to pay more
for goods that took care of the society.
A recent study by Nielsen that surveyed
more than 29,000 global respondents
found out that the percentage of people
willing to reward companies that gave
back to the society had increased to 50%
in 2013 from 45% in 2011
The demographic willing to spend more is
also the demographic that is more active
on social media

Impact on countries such as India

Companies Bill and CSR

to impact Indian Social
Media investments

ource: http://www.domainofhope.com/2013/08/companies-bill-and-csr-to-impact-indian.html

Example: Unilever Project Sunlight

Project Sunlight campaign -- a sustainable lifestyle initiative.
Project Sunlight launched Brazil, India, Indonesia, the UK and the US, is
encouraging parents to join what Unilever sees as a growing community of
people who want to make the world a better place for children and future
generations.

Impact: 11 million+
views

urces:
p://adage.com/article/the-viral-video-chart/unilever-s-project-sunlight-campaign-makes-viral-chart/245439/
p://www.unilever.com/mediacentre/pressreleases/2013/Unileverlaunchesprojectsunlightanewinitiativetoinspiresustainableliving.aspx

How is the industry organized?

Industry
Digital media industry has
Creativ
e
Researc
h

Ad
Digital
Media

Media
buyin
g

Tech

PR

Pure creative agencies that

conceptualize and create digital
campaigns
Old ad and PR agencies who
have extended their services to
digital
Technology companies that
work on customized solutions
such as websites, applications
etc.
SEO, SEM

Technology companies that

provide analytics and
intelligence

Thank You

Contact me at web.sushant@gmail.com
www.domainofhope.com

Additional Reads
Adage Digital
http://adage.com/channel/digital/20
Branding in the Digital Age: Youre Spending Your Money in All
the Wrong Places
http://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-yourmoney-in-all-the-wrong-places/ar/1
Redefining Advertising: How 2013 Transformed Digital
Marketing
http://www.google.co.in/think/infographics/redefining-advertising.html
RoI in social marketing
http://www.slideshare.net/maheshmurthy/ro-i-in-social-marketing-some
-metrics-by-mahesh-murthy-of-pinstorm