A presentation on digital marketing given to several of South America's leading advertising agencies in May 2007.

1. Digital Marketing - The Future is Now! Sao Paulo, May, 2007 Casper M øller, CEO

3. Introduction

4. BRAND

5. HOW CAN YOU STAND OUT?

6. BRAND COMMUNICATION Who can shout the loudest?

7. Noise! This is what the consumers hear…

8. HOW DO YOU PLAN ON STANDING OUT?

10. “ If you don’t like change, you’re going to like irrelevance even less.” General Eric Shinseki, Former Chief of Staff, U.S. Army

11. Female Fever Eco-ecosystem Post-consumerism Modernism Generation C Transumerism Innovation Hypertasking LIFE CACHING MASSCLUSIVITY PLANNED SPONTANEITY CONFUSION Too many trends, and not a lot you can do about them Gravanity FLORIDASATION 5*STAR*LIVING Counter-Googling Dormandise EARLY BIRDING Diaspora Management HOME TROTTING IT-ISM MATURIALISM NOUVEAU NICHE POP-UP RETAIL SNOBMODDITIES SYMPVERTISING TRYVERTISING YOUNIVERSAL BRANDING VIRTUAL ANTHROPOLOGY BEING SPACES

12. IT’S NOT ABOUT TRENDS… CHANGE

13. IT’S ABOUT FUNDAMENTAL CHANGES CHANGE

14. ELVIS HAS LEFT THE BUILDING The marketing rule book has been torn up and thrown out the window

15. HYPERREALITY “ The World”, Dubai, United Arab Emirates

16. HYPERREALITY Las Vegas

17. HYPERREALITY Virtual, rather than real, communication Young people are scorning social interaction for virtual relationships.

18. HYPERREALITY MySpace has 120 million members

19. HYPERREALITY A sample MySpace profile

20. Proliferation of media and consumption choices has meant that the rulebook gets thrown out the window FRAGMENTATION

21. 300 FRAGMENTATION In the UK alone there are more than 300 TV channels

22. Demographics are no longer enough FRAGMENTATION

23. ONE “SIZE” NO LONGER FITS ALL

24. Product and media consumption proliferates ONE “SIZE” NO LONGER FITS ALL

25. Consumers have got a VOICE… and can make or break a brand CONSUMER POWER

26. EXPERIENCE ECONOMY Luxury consumption has shifted

27. THE OLD VALUE CHAIN Resources Goods/services Solutions

30. “ OPPOSITE”-ISM =

31. STIMULI ORGANISM RESPONSE WHITE NOISE ??? INDIFFERENCE THE COMMUNICATION MODEL The old model is now officially dead!

32. TRADITIONAL COMMUNICATION Above the Line: One to many communication BRAND X CUSTOMERS

33. Perceived, rather than real, customer feedback AUTO-COMMUNICATION

34. BRAND COMMUNICATION + CUSTOMERS = RESPONSE APATHY or DO YOU GET A RESPONSE? Do your customers care about what you try to tell.. and SELL?

35. EVOLVED COMMUNICATION BRAND X THE CUSTOMER One-to-one communication: a TRUE dialogue. BTL at its best.

36. THE NEW MARKETING PARADIGM The power of digital channels CUSTOMERS CUSTOMERS

39. ARE THESE PEOPLE YOUR CUSTOMERS?

40. … OR ARE THESE YOUR CUSTOMERS?

41. From auto communication… CLARITY

42. CLARITY To true INTERACTION, CUSTOMER DIALOGUE & PURCHASES

43. BRAVE NEW WORLD Are you ready for it?

44. What is Digital Marketing?

45. Email on the move TECHNOLOGY IS CHANGING

46. UMPC – Ultra-mobile PC. Laptop power in the size of a PDA TECHNOLOGY IS CHANGING

47. Get content anywhere TECHNOLOGY IS CHANGING

48. View content anywhere TECHNOLOGY IS CHANGING

49. The Media Center PC – the new heart of the home? TECHNOLOGY IS CHANGING

50. Watch your TV away from home TECHNOLOGY IS CHANGING

51. CONTENT VS. MEDIA Not necessarily all life-changing… + ?

52. DIGITAL CHANNELS DIGITAL CHANNELS PODCASTS GAMES E-MAIL MOBILE PHONES VIRAL ELEMENTS VIDEO INSTANT MESSAGING BLOGS WEB SITES SEM BANNERS Some examples of digital channels

60. WEB - ADVERTAINMENT

71. Estimated cost to build: $80,000 Confirmed revenues: $20 million + DING… $ $ $

72. INTERACTIVE POSTERS What looks like an ordinary street poster

73. INTERACTIVE POSTERS Allows you to interact and download your own ring tone

74. INTERACTIVE POSTERS Or how about printing your own?

75. INTERACTIVE MIRRORS

76. HOLOGRAPHIC PROJECTIONS Just about any product can be re-produced in a 3D hologram

77. The Opportunity

78. Global, extensive reach More than 1 billion Internet users in the world 250 million have broadband Source: eMarketer, May 2006 THE NUMBERS

79. 62% of UK population is now online & 71% are using broadband Source: IAB 2005 Broadband users are far more active online, spending twice as long online as narrowband users and viewing 3.5 times as many web pages * UPTAKE HAS BEEN FAST

80. It is currently a relatively small market… In Turkey: 16 million Internet users 2.5 million broadband users – 1.72 end of 2005 Source: CIA World Factbook, 2005 Source: wi-fitechnology.com & Quantum-Web TURKEY

81. But one that is growing fast!! In 2015: 24 million broadband users in Turkey CAGR: 31%! Source: Quantum-Web TURKEY

82. Phones: 20 million fixed lines in Turkey 48.7 million mobile phone users Source: Turkcell, Telecommunications Authority, 2006 TURKEY

84. Q: If you had to live on a deserted island and could take only one of the following with you, which would you take? Base = 1,000 online households Source: Ipsos U.S. Express, August 2004 CHANGING MEDIA CONSUMPTION Consumers can’t live without the Internet INTERNET Newspaper subscription 1 % Cell phone 4 % Radio 6 % TV 6 % Large supply of books 18 % Computer with Internet access 64 %

88. EMERGING MARKETING TECHNIQUES Source: CMO Magazine, April 2005

89. ONLINE ADVERTISING SPEND Source: ZenithOptimedia report, Financial Times, 01/10/2006 Search engine marketing is believed to account for more than half of all Internet advertising spend.

91. GLOBAL ADVERTISING SPEND Source: ZenithOptimedia report, MediaPost 2005 Biggest sectors in online ad spend Financial services $1.6 billion Telecommunications $1.5 billion Retailers $1.3 billion Automobile $ 700 million

92. Why Use Digital Marketing?

93. WHY USE DIGITAL MARKETING? “ Catch the next wave before it catches you”

94. WHY?

95. BECAUSE IT WORKS!

96. Source: NMA Oct 2005, Brand Republic 2006 IT WORKS! Information now readily available to advertisers about online effectiveness

97. THE CONSUMER PROCESS Digital, unlike all other, channels offer a return path Brand awareness measuring the level of familiarity with the brand Message association measuring how messages are linked to brand Brand favourability see if respondents have positive opinions to brand Purchase consideration likelihood of consumer purchasing the brand Actual purchase

98. Online advertising spend INTEGRATED CAMPAIGNS WORK Brand awareness lift - TV: 17% - TV & online: 45% Source: Dynamic Logic Europe Online works well with other media

100. Branding effect Marketing spend Television Internet DIMINISHING RETURNS Synergy Pattern TV & Online

101. COST DRIVERS vs. ROI AWP % $/AWP % Ca. 20 % Internet TV COST/BENEFIT Source: MINDSHARE Using the Internet is the most cost-efficient way to create your first 20% awareness

102. COST/BENEFIT Driving low cost awareness

104. Percent Source: Dynamic Logic MarketNorms ONLINE BUILDS BRANDS Online Ad Effectiveness, European Averages +5.4% +45.3% +21.6% +5.6% +5.0%

105. IMPACT ON BRAND ATTRIBUTES % Lift Source: NFO/Infratest Study Both media impact key brand attributes separately yet are more powerful together

106. As a result of using the Internet 42% 74% 76% 42 77% Changed their mind about a brand they were going to buy and switched to a different brand Have personally researched and looked for information about a product or service before making a purchase Felt that the internet helps them make a more informed purchase decision Agreed that if they saw a negative review on the internet about a product or brand they would think twice about buying it Source: AOL Brand World Research 2005 PERCEPTION AND BEHAVIOUR Changing perceptions and behaviours through online

108. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS There are several benefits to using digital and online marketing

109. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Measurable ROI

110. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Geographic, demographic and psychographic targeting

111. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Can massively increase effectiveness of traditional advertising

115. Source: NMR, Top 20 advertiser’s spend in 2005 UK TOP 20 ADVERTISERS Total spend Internet spend % spent online % spend on all other media Top 20 advertisers 1,757,128,753 30,683,912 1.75 98.25 Unilever UK Ltd 217,374,235 467,782 0.22 99.78 Procter & Gamble Ltd 183,764,561 531,664 0.29 99.71 COI Communications 168,949,805 1,536,482 0.91 99.09 BSkyB Ltd 104,769,013 9,832,258 9.38 90.62 L'Oreal Golden Ltd 103,712,826 171,439 0.17 99.83 DFS Furniture 93,461,848 0 0.00 100.00 Masterfoods 79,091,280 381,082 0.48 99.52 Orange Plc 77,778,373 5,842,074 7.51 92.49 BT Ltd 76,469,097 1,494,089 1.95 98.05 Nestle 68,510,585 283,873 0.41 99.59 Reckitt Benckiser Ltd 67,473,880 10,324 0.02 99.98 Vauxhall Motors Ltd 63,460,028 497,881 0.78 99.22 Tescos Plc 62,885,215 197,954 0.31 99.69 Ford Motor Company Ltd 62,807,418 867,839 1.38 98.62 Renault Uk Ltd 60,126,322 709,243 1.18 98.82 Kellogg Company 58,840,448 0 0.00 100.00 Lloyds TSB Plc 56,139,386 161,677 0.29 99.71 Sainsbury's 52,925,167 80,653 0.15 99.85 Vodafone Ltd 50,572,728 300,328 0.59 99.41 Capital One 48,016,538 7,317,270 15.24 84.76

116. Source: NMR, Top 20 advertiser’s spend in 2005 UK TOP 20 ADVERTISERS Total spend Internet spend % spent online % spend on all other media Top 20 advertisers 1,757,128,753 30,683,912 1.75 98.25 Unilever UK Ltd 217,374,235 467,782 0.22 99.78 Procter & Gamble Ltd 183,764,561 531,664 0.29 99.71 COI Communications 168,949,805 1,536,482 0.91 99.09 BSkyB Ltd 104,769,013 9,832,258 9.38 90.62 L'Oreal Golden Ltd 103,712,826 171,439 0.17 99.83 DFS Furniture 93,461,848 0 0.00 100.00 Masterfoods 79,091,280 381,082 0.48 99.52 Orange Plc 77,778,373 5,842,074 7.51 92.49 BT Ltd 76,469,097 1,494,089 1.95 98.05 Nestle 68,510,585 283,873 0.41 99.59 Reckitt Benckiser Ltd 67,473,880 10,324 0.02 99.98 Vauxhall Motors Ltd 63,460,028 497,881 0.78 99.22 Tescos Plc 62,885,215 197,954 0.31 99.69 Ford Motor Company Ltd 62,807,418 867,839 1.38 98.62 Renault Uk Ltd 60,126,322 709,243 1.18 98.82 Kellogg Company 58,840,448 0 0.00 100.00 Lloyds TSB Plc 56,139,386 161,677 0.29 99.71 Sainsbury's 52,925,167 80,653 0.15 99.85 Vodafone Ltd 50,572,728 300,328 0.59 99.41 Capital One 48,016,538 7,317,270 15.24 84.76

117. Source: NMR, Top 20 advertisers’ spend in 2005 TOP 20 ADVERTISERS SPEND BY MEDIA UK data 2005 TV 50 % Radio 6 % Outdoor 9 % Newspaper 13 % Magazines 8 % Direct mail 9 % Cinema 3 % Internet 2 %

118. BUT There is ONE major problem afflicting traditional advertising…

120. IN THE GOOD OLD DAYS… It was all about selling an image

121. Then it all became about telling a story IN THE GOOD OLD DAYS…

122. Then it all became about telling a story IN THE GOOD OLD DAYS…

125. … Unless your story is very compelling to them or it has been promoted by a trusted third party consumer

126. INSTEAD OF TELLING YOUR STORY…

127. LET CONSUMERS TELL THEIRS!

128. GIVE THEM A PLATFORM Coke was initially slow to react Do you know what can be done with a bottle of Diet Coke and a handful of Mentos ? These guys do!

129. GIVE THEM A PLATFORM But has now wholeheartedly embraced the phenomenon

130. Instead of TELLING A STORY … Create the TOOLS to allow a story to be told

131. CO-CREATION THE NAME OF THE GAME

132. Are not just about CONSUMPTION It’s as much about PARTICIPATION CONSUMERS…

133. THE PARTICIPATION ARENA

134. We’ve all heard about Generation X And then came Generation Y

135. Now it is all about… GENERATION C

136. GENERATION C(ONTENT) Self-broadcast

137. GENERATION C(ONTENT) Self-publish

138. GENERATION C(ONTENT) Self-publish

139. Generation C changes the rules of consumption

140. CURATED CONSUMPTION Bill

141. CURATED CONSUMPTION CURATED CONSUMPTION Josh

142. CURATED CONSUMPTION And Josh II

143. DANGERS DANGERS Great reach… shame about the target market BIG AD

144. How Can You Use Digital Marketing?

146. CORPORATE TOUCHPOINTS Allowing companies to communicate with stakeholders 24/7

147. CORPORATE TOUCHPOINTS Allowing companies to communicate with stakeholders 24/7

148. PUBLIC SERVICES Allowing governments to communicate with citizens 24/7

149. CROSS-MEDIA INTEGRATION “ Anders & Henriette” financial services webisode

150. CONTENT EXTENSION Big Brother in Second Life

151. Integrated clothing and technology PRODUCT DEVELOPMENT

152. NEW PRODUCT DEVELOPMENT PRODUCT DEVELOPMENT

153. PRODUCT DEVELOPMENT

154. PRODUCT DEVELOPMENT What will they think of next, eh?

155. EXAMPLE

156. BRITISH AIRWAYS British Airways web site

157. BRITISH AIRWAYS Executive Club

158. BRITISH AIRWAYS Executive Club

159. BRITISH AIRWAYS On Business – the business loyalty programme

160. BRITISH AIRWAYS E-mail newsletters

161. BRITISH AIRWAYS Banner advertising

162. BRITISH AIRWAYS Content sponsorships

163. BRITISH AIRWAYS B2B advertainment

164. EXAMPLE NIKE FOOTBALL

165. NIKE FOOTBALL Web sites and viral videos

166. NIKE FOOTBALL Branded games

167. Instant messaging applications NIKE FOOTBALL

168. NIKE ID Customise and buy your own football boots

169. EXAMPLE

170. EXAMPLE

171. Digital Marketing Strategy

174. THE PROCESS

175. Traditional marketing view Traditional on- and off-line communication Traditional on- and off-line communication Below the line Above the line TTL TTL DIGITAL MARKETING BRAND DIGITAL MARKETING

176. Marketing View Below the line Above the line CRM Digital New on- and off-line communication New on- and off-line communication BRAND DIGITAL MARKETING The new marketing view

178. STRATEGIC DIRECTION The shortest way is not always the right way

179. STRATEGIC CHOICES You may find your strategy changes along the way

180. STRATEGIC PROCESS Constant goal setting, project planning and alignment

181. Where, why and how search visit info action Information requested Buy online (direct/retailer) Buy in store Information sent SEO PPC Sponsorship Partner Viral Advertising Etc. Campaign Product Service Brand Company INTEGRATION A simplified explanation of the process from usage to purchase

182. STRATEGY CONCEPT DESIGN PRODUCTION EXECUTION Channel independent Channel dependent THE DIGITAL PROCESS Similarities, differences and media agencies

184. THE PAST Quaint… and ineffective

185. To the point – and sole reason why! THE FUTURE › Everything that ’ s already in the world when you ’ re born is just normal. ‹ Douglas Adams, Author of The Hitchhiker's Guide to the Galaxy

186. We help brands connect with their audiences! We help brands establish trust! We help brands interact with their customers!

188. Casper M ø ller CEO, T-Viral E: [email_address] T: +44 (0)20 7231 1320 42 Pump House Close London SE16 7HS United Kingdom I: www.t-viral.com