Demand for Digital

DEMAND FOR DIGITAL

Katherine AblanProximity Chicago #proxchic

Prepared for Collegiate Advertising Summit 2011University of Wisconsin

3.4.2011

1. WHAT DOES A DIGITAL WORLD LOOK LIKE?

2. WHAT ARE BUSINESSES DOING ABOUT IT?

3. WHAT DOES DIGITAL THINKING ACTUALLY DO FOR BUSINESSES?

4. WHAT IS DIGITAL STRATEGY?

WHAT DOES A DIGITAL WORLD LOOK LIKE?

INTERNET USAGE IS ON THE RISE.

2 billion internet users worldwide

14% growth since last year

THE WEB IS EXPANDING.

255 million websites as of Dec. 2010

WE ARE DIGITALLY

SOCIAL BEINGS.

The number of people who are visiting

social media sites has increased by 24% over the last year.

If Facebook were a country, it would be the third largest

in the World with 600 million users.

25 billion tweets were sent in 2010.

If each tweet were a meter, the tweets for this year would stretch

from the moon and back 75 times.

2 billion videos are watched on YouTube per

day.36 billion photos are uploaded

to Facebook every year.

3,000 photos are uploaded to flickr every minute.

WE LOVE DIGITAL MEDIA.

The world spends 110 billion minutes on social media networks and blog sites each year.

If we were to put those minutes end to end, we would be in the year 108.

WEB ENGAGEMENT IS GROWING EXPONENTIALLY.

Over one third of Facebook users have signed up within the past

year. YouTube uses the same amount of bandwidth

as the entire Internet used in 2000.

9% of all websites were created in in 2010.

INTERNET TOMORROW

Mobile internet users are set to

out pace desktop internet users by

2013.

There’s a BIG conversation going on, and businesses want in on it.

15

WHAT ARE BUSINESSES DOING ABOUT IT?

SPENDING MORE

Internet advertising revenues for the first six months of 2010 increased 11.3

percent from the same period in 2009.

FORTUNE GLOBAL 100 COMPANIES

BLOGS

65%

54%

50%

33%

MOVING BEYOND LOYALTY PROGRAMS

Tasti D-Lite’s loyalty program simultaneously rewards customers for repeat purchase and

promotes the brand through earned media by syncing customers’ foursquare and Twitter

accounts with its TreatCards.

ESCALATING THE SOCIAL MEDIA ARMS RACE

The primary objective of Corona Light’s latest integrated advertising campaign is

to become “the most liked light beer in America.” It uses the same line to sell

product and build its social media following.

RALLYING AROUND CONSUMER PRIORITIES

Coca-Cola is adapting its marketing structure to be structured around the

three principles — content, connections, and integration —

rather than media type or marketing discipline.

According to eMarketer's latest forecasts, ad spending on social-networking sites will grow 55 percent to $3.08 billion in

2011, up from $1.99 billion in 2010.

In 2012, eMarketer expects social media spending to grow yet another 27 percent.

AND THEY’RE GOING TO KEEP SPENDING

WHAT DOES DIGITAL THINKING ACTUALLY DO FOR BUSINESSES?

Only 18% of traditional TV campaigns

generate a positive return on investment.

Conversations are a critical new marketing tool.

80% of people trust a close friend.

35%trust a consumer review on a website

9%trust celebrity endorsement

Source: Global Web Index, Wave 3, January 2010

SOCIAL MEDIA= POWER

Facebook fans are 28% more likely to continue using the brand compared to

non-fans.

1 word-of-mouth conversation

200 TV ads

HOW TO WE MEET THIS DEMAND?

WHAT IS DIGITAL STRATEGY?

THE PURPOSE OF DIGITAL STRATEGY

To develop a comprehensive and holistic roadmap that guides decisions for brands in the digital landscape.

• Goes both wide and deep

• Provides a framework for thinking and creating

• Requires multiple tools, skill-sets and stages

• Living and breathing

Digital Strategy Is Cyclical, Not Linear

Digital Traditional

It’s iterative, always sharpening with

experience, so your work gets the benefit

of real-time actionable learning.

DISCOVERY

Defining “User”

“Users” are the sub-set of your prime prospect who use a computer or Internet service.

Prime Prospect

Users

What Are User Insights?User Insights seek to explain people’s behaviors while they are engaging with a digital medium and uncover the motivations behind those actions.

WHAT WHY

Understanding User Actions

Understanding User Motivations

Landscape of Research MethodsBehavioral

Attitudinal

Qualitative Quantitative

Data

Sourc

e

Methodology

Eyetracking

Usability Benchkmarking (in lab)

Usability Lab Studies

Participatory Design

Focus Groups

Phone interviews

Diary / Camera Study

Listening / Conversation Mining

Customer Feedback via email

Desirability Studies

Cardsorting

Online Usability Studies

Data Mining / Analytics

A/B (Live) Testing

Ethnographic Field Studies

Intercept Surveys

Email Surveys

DEFINITION

Setting the Objective• In digital strategy there is a hierarchy of objectives. We

have to establish an overarching digital objective; then, as we get more tactical we need to determine specific channel objectives.

Digital Channel Objectives

What is the purpose of each channel? How does it help achieve our overarching objective?

Digital Objective

What do we want to achieve with our digital strategy?

What Do We Mean ByEngagement Opportunity?

• This answers the question: “What role do we want our brand to play in our consumers digital lives, and how can we involve them in the experience?”

• Digital is opt-in. To create successful, business-driving experiences we need to determine not only what we want digital to do for us, but also, what we want it to do for our users. This ensures value and high-utility in all of our efforts.

Brand

User

Identifying The Engagement Opportunity

Brand Platform

User

The engagement opportunity lives

at the intersection between the

brand’s competitive edge,

the platform’s optimal

capabilities, and the user’s (unmet

or under-delivered) needs.

Potential Platform RolesEntertain(The Theater)

Empower (The Personal Trainer)

Crowdsource(The Team sport)

Simplify(The Concierge)

Connect(The Forum)

Advise(The Trusted Friend)

Curate(Museum)

Example: Simplify (The Concierge)Make a specific task easier for people. Provide a service that helps

people get things done efficiently and removes any burden.

Best Buy amassed a 24-hour customer-service army through social media. Their TwelpForce is always ready to field questions from their customers over twitter.

Comcast is a cable services company that uses social media channels to listen and respond to customers who express their frustrations online. They contact customers either by phone, email, tweet, post or comment to see how that person needs assistance.

What is A Channel Ecosystem?

• An amalgamation of interrelated social media communities, services and technologies that form one single organism.

• Each element has a unique function.

• It’s stretchable, sustainable, multi-layered & multi-channel.

• Bigger digital footprint

• Lets the user choose their own point of entry

• Each channel can contribute to the overarching objectives in a unique way

• Sum is greater than the parts

What’s the Benefit?

Orbit Social Ecosystem

Base Engagement Hub

Curates & “cleans up” modern dirty

content

“Viral” StimulatorWhets people’s

appetite for content & gives them an

insider peak into the Orbit Girl’s life

BannersInvitationParticipation

PlatformLets the fans

participate and create content

Dirty Shorts HubGives fans a

premiere destination to watch the videos

online

BannersBlock & Tackle

BannersInvitation

Clean

Celebrities & Influencers

Content providers &

seeding agents

Celebrities & Influencers

Content providers and

seeding agents

orbit.com

Entertainment

Gossip & Celebrity

Breaking News

Community Dirty

Comedy & Humor

Creativity

Metrics Need to Tie Back to Objectives

AWARENESS / SOVUnique VisitorsConversation

volumeImpressions

RELEVANCETopics of conversationBrand associations in

conversationsBrand perception changes

Net promoter score“Brand for me”

ENGAGEMENTPage views per visitorAverage time spent on

siteInteraction rate

ViewsUploads

Comments“Likes”

LOYALTYNew visitors vs. returning

visitorsRegistrations

USAGE / TRIALCoupon downloads

Purchases (ecommerce)

ADVOCACYShare / referrals

TweetsBlog mentionsSEO increases

Referring sources

Content StrategyMapping out the what, when, where, how and

why a brand will generate content in each channel.

• Types of content

• Themes, passion points or areas of interest

• Specific conversation threads or memes

• Content sources

• Frequency

• Responsible parties

Why Do We Need It?

“You can have the best ads, the most Twitter followers, and the coolest design, but none of it will stick with your users and gain momentum if you don’t have the content they are looking for.

Fantastic content is the fuel that drives all these other efforts. After all, why would anyone tweet about your site or click that Facebook Like button if you don’t have anything worth sharing?”

– Jason Schubring

Then, we brief and execute.

BUT WE’RE NOT DONE…

Analytics & Optimization

Turning data into actionable insights that optimize strategy, drive business results and measure success.

Analytics serve two functions at Proximity Chicago:1) They feed our user insights 2) They track metrics, measure campaign success, and

uncover opportunities to improve

We provide regular analytics reports during a campaign lifetime that use data to tell a story. Each report is actionable and offers clear optimization recommendations that will drive measurable results.

Example: Women’s Retailer Site

Using site analytics we found that people who arrive from blogs were 10x more likely to end their visit with a purchase than people who came from paid media or organic search. But only 15% of traffic was referred from bloggers.

To increase online purchases among all visitors we enlisted a group of the strongest referring bloggers to serve as the brand’s “style ambassadors.” The blog was housed on their ecommerce site, increasing both the SEO and conversion rate by over 60%.

IN REVIEW

WHAT DOES A DIGITAL WORLD LOOK LIKE?

EXPANDING, EVER-CHANGING

WHAT ARE BUSINESSES DOING ABOUT IT?

INVESTING, ADAPTING

WHAT IS DIGITAL THINKING ACTUALLY DOING FOR BUSINESSES?

ENGAGING, OPTIMIZING

WHAT IS DIGITAL STRATEGY?

DISCOVERING, DEFINING, NEVER DONE

THANK YOU!

QUESTIONS?