Digital Bridges Into a Physical Worlds; Food Chain Theory Revisited
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Digital Bridges Into a Physical Worlds; Food Chain Theory Revisited
- 1. Lawrence Bergenfield Bergenfield & Associates February 2010 Digital Bridges into The Physical World ‘ enabling two-way interactive solutions’
- 2. Understanding Your Customer Today
- 3. Consumption: Whatever, Whenever, and However
- 5. Where People Spend Their Time… Television Internet Print Consumers say they spend as much time online as they spend watching TV, while consumers under the age of 35 spend more time online than on TV.
- 6. Where People Spend Their Time… Television Internet Print But, they spend over 10 times as much time with TV and the Internet as they do with print media like magazines and newspapers. Consumers say they spend as much time online as they spend watching TV, while consumers under the age of 35 spend more time online than on TV.
- 7. But Advertising Spend Doesn’t Match Television Internet Print
- 8. But Advertising Spend Doesn’t Match. Newspapers garner nearly three times the expenditure of online, and advertisers spend four times as much on TV advertising as all online advertising. Television Internet Print
- 10. Digital Migration of Advertising Television Internet Print Website Short Codes “ Interactive TV” Incented Video Website Text Messages Email Messages Incented Video Coupons Digital Loyalty 2D Barcodes Short Codes Web addresses Coded Ads
- 11. “ Crossing the Channel and Enabling the Two-Way Street” Advertising, for the first time, can truly become a two-way (‘push/ pull’) communication between seller and buyer Digital Green is the new commodity that allows advertisers to connect offers & rewards directly to the point of purchase
- 13. To America’s Most Important Demographic… Moms Socially Viral & Value Conscious
- 16. SHARE------ Social Virality! Share This Post:
- 17. The iPhone has redefined consumer experience Edged out the Mac business ($4.5B) and iPod ($3.4B) for second quarter in a row and the third time ever. During 4Q09, Apple reported $5.6B of iPhone-related revenue, up 90% year-over-year. First time iPhone has beat Mac and iPod by >$1B each. And this despite Apple missing Wall Street's expectations for iPhone sales, thanks to increased competition from Google Android and other smartphones.
- 18. What’s a Mobile Phone For Anyway? Voice Enterprise Mobility Social Networks & Internet Location Based Services Financial Relationship, Presence & Identity Video on Demand
- 19. Smoke & Mirrors or was the Applications and Screens
- 20. Digital Advertising +11% YTD, 2010 estimated spend $65 billion * http://www.adweek.com/aw/content_display/news/digital/e3i87c96b4228796e1d5aa19258f0fb5703 * WPP's GroupM September 2009 **GroupM said, citing comScore data from March 2009. As usage grows, marketers will likely spend more in the sector. Accounting for 15% of all measured media In the U.S., digital advertising is expected to climb 7% next year to $24.4 billion, grabbing a 17% share of total spending, compared to 15.4% in 2009 Much of the U.S. growth will be fueled by sharp declines in traditional print advertising, particularly newspapers Mobile advertising will rise 19% next year to $3.3 billion, accounting for 6% of all digital spending.
- 21. What are Companies Paying for Digital Exposure?
- 22. Perceived Benefits: Why big & small companies are becoming more & more digitally inclined
- 23. The 360 Degree Center Cross Channel View… Website Mobile Social Networks Print Media E-Mail Rich Media
- 25. A.R.M.I. Acquisition Register Measure Index
- 27. Metrics Determine Future Performance and Direction Customer Retention Customer Acquisition Increased Basket Size & Spend Measurable Return on Investment Site & Ad Performance Web Optimisation Action Items Web Analytics Customer Insights Site Personalisation Customer Analytics
- 28. ‘ Food Chain Theory’ Five Rules to Unlock the Digital World By: Lawrence Bergenfield February 2010; Revisited Originally Authored Summer 2008
- 29. Digital Advertising Search YTD Volume +19.2% vs. 15.5%; Measuring What? * Source: AFP February 10, 2010 ** as of February 18, 2010 $21.95 B Market Cap** $7.21B Gross Revenue Marketshare 17.0% $251.80 B Market Cap** $61.9B Gross Rev Marketshare 11.3% * $171.2 B Market Cap** $21.8B Gross Revenue Marketshare 65.4%*
- 30. Rule #1- Pay Attention to the ‘Tranquil Obviousness’ Peter Drucker Digital Advertising Time & Resources are primarily focused on ‘Push’ (one-way communications) advertisements. Fundamentally, today, monetization is derived via costs associated from pay per clicks, conversions, impressions, time and actions. Physical World Business Operators (such as Retailers) will enable clear measurement of Digital Advertising expenditures at point of consumption/ point of purchase. This will establish a game-changing paradigm (‘food chain’) shift. Physical World Business Operators Deployment of closed-loop ‘opt in’ solutions are the key to enabling measurement, segmenting, indexing and remarketing.
- 31. Rule #2- Recognize Substantive and Sustainable ‘Controlling Forces’ in the Value Chain Who has the greatest clout to impact the value chain? Are eyeballs, click or view through rates, and time spent more important than measureable outcomes or purchases at the electronic point of sale? The future will illustrate that Physical World Business Operators will use their purchasing clout to exploit these very same digital advertising budgets; Many of the largest physically located businesses operators (such as retailers) are also the largest buyers of there vendors products and services; These same vendors also happen to have some of the largest global digital advertising budgets; The choice is clear: Digital Advertising Dollars captured/ measured at the point of outcome/ electronic point of sale OR continue with yesteryears push style advertisements via Google, Yahoo, or Bing? Is it more important for P & G to advertise on Google. Yahoo, Bing OR through a Retailers Digital Solution like CVS… who happens to be a top 5 global outlet for the sale of P & G’s products and could enable measurability at point of sale?
- 32. Rule # 3- Influence ‘The Pawn’s’ Next Move Digital Advertising Agencies may appear as the supporting actors to Physical World Business Operators who endeavor to optimize digital advertising monies & exposure; However, traditional Digital Agency roles and responsibilities will be forced into managed service (SaaS) business models for survival. This will also include aggregation of technology solution providers that enable a focus and measurable means to decrease customer acquisition costs while providing rich data around: registrations, push/ pull feature functionalities, and superior segment and indexation capabilities;. The Digital Advertising Agencies that adopt SaaS models will have a strategic and tactical edge in leveraging enormous value. Accelerating and extending 360-degree consumer facing solution adoption will benefit the entire value chain, provoke these agencies to have new, more robust and comprehensive value propositions.
- 33. Rule # 4- ‘Practicality’ in 360 degrees Today, the world wide web still highly values search, click, see through and conversion rates, email marketing, number of (unique) visitors/ traffic and time spent. However, Physical Operators have begun to deploy digital solutions with significant successes. Consumer focused ‘push’ solutions offering coupons have seen redemptions significantly greater than traditional print coupons. Interactive ‘push/ pull’ solutions like video rewards; offer an inducement for participation and provide a means that the consumer earns coupons with each video viewed. This platform has experienced similarly high redemptions, drove incremental sales and extends and enhances loyalty. The high success rates validate rapid consumer adoption of and for Interconnected Digital Solutions that extend and enhance value; The end effect will provide a greater benefit to all parties as coop dollars extend/ convert into digital dimensions. Digital Solution features and functionalities that capture, connect & optimize traditional data to individual such as localizing data will create a new set of efficiencies around merchandising, loyalty, faster segmenting, indexing, and more targeted re-marketing opportunities.
- 35. “ Get your ducks in line…”
- 37. Don’t Get Lost in Space Executive Engagement Needs Assessment/Analytics and the Science of ROI IT Collaboration and Balance Marketing Operational Execution/Employee Engagement Customer Care and Centricity
Hinweis der Redaktion
- SLIDE 2) UNDERSTANDING Today, technology is growing at exponential rates and every 90 days represents a year from the last decade. This has been clearly evidenced by consumer facing tipping points such as: TEXT MESSAGING USAGE - which now exceeds voice calls on a monthly basis for women between the ages of 18-45 years of age and nearing the same for over 55 as well; MOBILE PHONE - a Gartner analyst was recently quoted that ‘we should stop referring to certain phones as smart phones because in less than 24 months all phones will be smart phones’; MOBILE APPLICATIONS - iPhone Applications downloads totaled more than 1 billion in less than a 9 months from its introduction, and 1½ billion in less than 13 months, today over 3 billion COMPUTER HARDWARE - Net books have captured stunning speed to market and market share. Today, some retailers are promotionally offering these for $0. These products are widely available and eReaders/ Tablet is the wave for 2010. Most importantly as wireless networks improve from 3g to 4g WiMAX and 5g LTE (Long Term Evolution) the consumer experience will be widely enhanced and improved and new features like video talk will be a norm SOCIAL MEDIA- FACEBOOK - 400M users, which is greater than the fourth largest country on earth. Largest segment, women ages 25-45. Fastest growing segment, over the age of 55; MICRO BLOGGING - Twitter- by 2010 will have 100 million users; ONLINE BEHAVIOR - Today, 90% of women between the ages of 25-45 go online to research and learn about products and services. Of this 90% of customers, 93% end up making purchases within a physical store. This is a critical demographic that spends for the household.
- The speed in which we communicate is extraordinary. Consumers are employing applications and widgets that have begun to affect dramatically every day life while rapidly altering consumer behavior. Simply put: Connected, Convenient, Personal, and evolutionary towards Predictive-Intelligence SLIDE 3) CONSUMPTION The consumer is consuming data whenever, wherever, and however they desire. Computer, laptop, netbook, mobile device, and imminently mobile applications will move to set top box as widgets. Convergence of all screens: mobile device, computer, and set top box will begin to start looking remarkably similar while derivative fourth screen accessories (like eReaders and hybrid products like tablets) will gain significant momentum in 2010. These newer connectivity points will likely be economically driven by an “Online Marketing Affiliate” approach that consists of pay performance modeling. Regardless, the economics will vary basis the members of the value chain in those specific areas of focus. A Real World Example: Lawrence Bergenfield presently sits on the Board of a Mid-Size Privately held Alternative Education Company that has a primary focus on and dominates in Nursing. Not only is Nursing the largest employment shortage in the United States; but, the demographic is consistent with women ages 25-45 years of age. That said, the annual rate at which data is being consumed online vs. books has been hyperbolic for the Company. The digital platform began last year and by next year, books will not be offered. focus.
- SLIDE 4) CONSIDER CONSIDER- ESTABLISHED MARKETPLACE EXAMPLES Some of the below words, products and companies have done the same and provide valuable learning: CLOUD computing done at its best eReader- Kindle by Amazon- in less than 12 months has become a billion dollar industry PLATFORM - Android- Google’s New Mobile Phone Operating System- 30+ different types of phones from different manufacturers will launch this calendar year. New game changing applications like Visual Search (Google Goggle’s) are expected to be ‘game changers’ and drive new consumer behavior. JOURNEY - Apple- from the iPod/ iTunes evolution to Apple TV and iPhone. Not one person in technology has been better at taking the consumer on a journey. And, just when you thought it was over, came mobile applications. The new wave of cutting edge Applications will focus on location-based services (LBS), Video, and Intelligence
- a- Time is a funny thing. Everything we see and do we are either directly or indirectly exposed to advertisements and messaging.
- b- The undisputable greatest ice hockey player that has ever lived, Wayne Gretzky once said ‘he skates where the puck is going not where the puck is”……… clearly, the analogy here is this is where your customers are and what are you doing about it..
- c- many large retailers have this enormous annual cost of the Sunday Insert. Some of the largest retailers have annual costs that are nearing ¾ of a billion dollars IN THE FACE of declining readership and increased costs
- d- But, the flaw has always been real measurement and ability to capture messaging with sales other than velocity and uplift and tactics can be deployed to acquire that customer more effectively that I will expand on in a few minutes.
- SLIDE 11) PUSH/ PULL DIALOGUE Didn’t you hear me? You don’t understand me? You never listen to me? THIS IS NOT A CONVERSATION WITH A SPOUSE OR SIGNIFICANT OTHER! Digitally speaking.. delete… delete… delete..
- SLIDE 12) YOUTH Emerson Pay Phone Story Tomorrow’s next generation… our youth The generation of me, mine and now is digitally inclined and always connected. They are tomorrow’s customers that will undeniably connect with the physical world differently.
- SLIDE 13) THE MOST IMPORTANT DEMOGRAPHIC IN AMERICA TODAY.. WOMEN a-Firstly, they like technology b-they interact c- they seek value (especially in these trying economic times) d- the obsess at time, did you know the average 25-45 year old female checks her Facebook account more than 6x a day e- they speak d- their words are powerful, don’t go unspoken, go viral and have created a new segment of customer advocates and evangelism Finally, new evidence is showing that they are amongst the most connected consumer who often times your most frequent customers They click and drive to your bricks. Over 90% of women ages 25-45 search online before a purchase. Of that 90%, 93% than go to a physical store to make the purchase.
- SLIDE 14) BOOMERS Connecting across generation and re-connecting to a lifetime of friends, family and colleagues Generational divides have remerged as Bridging Generations It’s always nice to find new research that supports so much that has gone before. In this instance, I refer to a press release from the Continuum Crew announcing that baby boomers are “emerging as New Social Media Mavens.” The survey covered 700 respondents from the Greenfield Online Panel, ages 35 and older. My upcoming report, Boomers and Social Media, shows that boomers are flocking to Facebook. The main reason is the same as every other generation has adopted social networking: They want to be connected to family and friends. In fact, boomers are more open to meeting new people through social networks than any other generation, according to a survey by EuroRSCG Worldwide. 108740 With all the boomers crowding on to Facebook, some media outlets wondered if they weren’t chasing away younger networkers. That does not seem to be the case, especially since the Continuum Crew survey found that its empty-nester respondents reported an “unprecedented” number of adult children were moving back home, thanks to the recession. If kids can swallow their pride and move back in with Mom and Dad, they can’t get too picky about sharing a social network
- http://www.businessinsider.com/henry-blodget-facebook-accounts-for-1-in-4-internet-pageviews-2009-10 SLIDE 16) SOCIAL VIRALITY 1/3 of all Internet traffic is connected to social virality the fact that facebook has surpassed yahoo in unique visitors as #2 visited internet estate second only to google… whereas the average facebook users spend 7 hours per month on the site and compared to googles one hour and a half twitter in a few a short years has boomed. By the end of this year analysts predict 100m users and here again is a great example of evolution creating revolution. Social media is no longer a category it is and has become part of the fabric of the Internet
- Blip.fm -- Share music and listen to free music online by any artist from a global community of internet DJs for free. Brightkite -- No Sleep Media ; a location-based social networking website that is available on any mobile device. Users "check in" at places by using text messaging or one of the mobile applications and they can see who is nearby and who has been there before. Delicious -- Yahoo ; a social bookmarking web service for storing, sharing, and discovering web bookmarks. Digg -- a social news website made for people to discover and share content from anywhere on the Internet, by submitting links and stories, and voting and commenting on submitted links and stories. Facebook -- a social networking website that permits Users can add friends and send them messages, and update their personal profiles to notify friends about themselves. Additionally, users can join networks organized by city, workplace, and school or college. The website's name stems from the colloquial name of books given at the start of the academic year by university administrations with the intention of helping students to get to know each other better. Flickr -- Yahoo ; an image and video hosting website, web services suite, and online community. In addition to being a popular website for users to share and embed personal photographs, the service is widely used by bloggers to host images that they embed in blogs and social media.[2] As of October 2009[update], it claims to host more than 4 billion images. FriendFeed -- a real-time feed aggregator that consolidates the updates from social media and social networking websites, social bookmarking websites, blogs and micro-blogging updates, as well as any other type of RSS/ Atom feed. It is possible to use this stream of information to create customized feeds to share, as well as originate new posts-discussions, (and comment) with friends. Google -- a cloud computing and Internet search technologies corporation. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program. Hyves -- a Dutch social networking site for keeping in touch with existing friends and making new friends. There is no need to have knowledge of HTML for creating a Hyve. It is comparable with other social networking sites. Users can create personalized pages of themselves with rich media content, such as photos, videos, flash content and custom layouts. LastFM -- Internet Radio Site, that uses a music recommender system; builds a detailed profile of each user's musical taste by recording details of the songs they listen to and those on their portable music player. LinkedIn -- a business-oriented social networking sit; it is mainly used for professional networking. Mobypicture -- Nokia ; Mobile picture upload site part of its Lifeblog suite of products which create a Multimedia diary and website administration tool that automatically collects all the photos, videos, and sound clips that the user creates on the mobile phone, text messages and MMS messages that were sent and received. It also allows the user to create text and audio notes. It organizes all the contents in a Timeline and renders the diary searchable via its contents and via automatically and manually created metadata, including time, location, tags, descriptions, filenames, sender and recipient information. MySpace -- News Corporation ; a social networking site that allows subscribers to post status updates, communications, applications, and subscriptions. Slide.com, RockYou, and YouTube all started as MySpace widgets. Slideshare -- most popular Slide hosting service website which allow users to upload, view, comment, and share slideshows created with presentation programs. StumbleUpon -- (private, bought back from eBay ); is an Internet community that allows its users to discover and rate Web pages, photos, and videos. It is a personalized recommendation engine which uses peer and social-networking principles. Technorati -- an Internet search engine for searching blogs. The name Technorati is a blend of the words technology and literati, which invokes the notion of technological intelligence or intellectualism. Twitter -- a free social networking and microblogging service that enables its users to send and read messages known as tweets. Tweets are text-based posts of up to 140 characters displayed on the author's profile page and delivered to the author's subscribers who are known as followers. Senders can restrict delivery to those in their circle of friends or, by default, allow open access. Vimeo -- IAC/InterActiveCorp ; a video-centric social networking site. Supports embedding, sharing, video storage, and allows user-commenting on each video page. Registered users may also create a profile and upload small user pictures as their avatars, comment and "like" videos. Vimeo does not allow commercial videos, gaming videos, pornography, or anything not created by the user to be hosted on the site. Vimeo has gained a reputation as catering to a high end, artistic crowd because of its high bitrate, resolution, and relative HD support Wakoopa -- a social networking site that monitors the software applications its members use. Its members learn what software their contacts use, and receive recommendations for better software. The service includes a desktop tracker, which is a small application that runs in the background on a user's computer. The application gathers the information about running software and games, and then publishes the information to their profile at the web site. SLIDE 23) HOW DOES VIRALITY HAPPEN Shhhhhhhhhhhh….. PS this is a double edged sword… treat your customers well or else.. Those very same advocates are equally compelled about the not so pleasant WordPress -- an open source blog publishing application powered by PHP and MySQL which can also be used for basic content management. It has many features including a workflow, a plugin architecture, and an templating system. Used by over 2% of the 10,000 biggest websites, Wordpress is the most popular blog software in use today. YouTube – Google; a video sharing website on which users can upload and share videos.
- SLIDE 15) MOBILE AMAZING TO THINK APPLE HAS A MARKET CAP OF 184B COMPARED TO GOOGLES MARKET CAP OF 172B YET THEY ONLY HAVE SINGLE DIGIT MARKET SHARE IN MOBILE PHONES AND COMPUTERS WHEREAS GOOGLE DOMINATES A MUCH FASTER GROWING SEGMENT, DIGITAL ADVERTISING A Gartner Analyst was asked in mid 2009 about smart phone adoption and penetration and holds great truth today. Why are we even referring to them as smart phones within 24 months they are the only devices that will be available? Today, 75% of all phones available through the major carriers are smart phones.
- First Generation – Only Voice, and badly at that. Second Generation – Voice & 14K Circuit Data 2.5G – Voice & 386K Packet Data Third Generation (3G) – Voice & 3Mb Packet Data 4G – Voice is Data – dynamic bandwidth
- SLIDE 18) APPLICATION USAGE AND ADOPTION Apps are the fuel to the fire They will mirror the very same applications on the mobile device, computer, netbook, eReader, iPad and Television
- SLIDE 19) DIGITAL ADVERTISING As my grandfather taught me as a very very young boy….. follow the money! Accounting for 15% of all measured media; Digital advertising's share of total ad investment rising from 3.1 percent in 2001 to 14.6% in 2010; In the U.S., digital advertising is expected to climb 7% next year to $24.4 billion, grabbing a 17% share of total spending, compared to 15.4% in 2009; Most of the U.S. growth will be driven by search and video, which compensates for declines in Internet display advertising and sponsorships; Much of the U.S. growth will be fueled by sharp declines in traditional print advertising, particularly newspapers; Mobile advertising will rise 19% next year to $3.3 billion, accounting for 6% of all digital spending; In the U.S., the number of people accessing news on their mobile devices daily has more than doubled to 22 million and those accessing a social networking site have increased fourfold to 9 million compared to just a year ago. **
- SLIDE 20) BUYING (SMOKE) SEARCH WORDS
- SLIDE 21) PERCEIVED BENEFITS FACTS ARE TV SHOWS 8% UPLIFT GENERAL DIGITAL SHOWS 9% DIGITAL COUPONS WELL INTO DOUBLE DIGITS CLOSED LOOP DIGITAL PROGRAMS NEARING 20%
- No longer just push – can pull as well. All facets are one part of an overall program Consistency of Message – Brand, Awareness, and Sales – Generates Revenue for Customers SLIDE 22) THE CONSUMER IN 360 DEGREES HOWEVER, WHENEVER, AND WHATEVER We move AND change our mailing address and home telephone numbers; We are TURNING OFF our home telephone service; We receive SPAM and change our email address; and We NEVER change our mobile telephone number. Whenever, wherever and however
- SLIDE 24) OK ALL THIS GREAT INFORMATION NOW WHAT. WHAT PROBLEMS ARE WE SOLVING? Clearly, household data must drill down to become personal data. The average American family has fourteen loyalty cards yet is only active with six. Creating a path that is personal and evolutionary to beginning two-way dialogue (‘push and pull’) is where we need to go. Clearly, this directly addresses the pillars of retail around decreasing customer acquisition costs, while increasing basket-size, spend, and trip frequency.
- SLIDE 25) HOW DOES THIS IMPACT ME AND HOW SHOULD MY ENTERPRISE BREAK THIS DOWN AND MOVE THESE POINTS ADDRESS THE FUNDAMENTAL PILLARS TO A PHYSICAL WORLD CONNECTIVITY TO DIGITAL SOLUTIONS MEASURED BY METRICS
- SLIDE 26) AN EXAMPLE TO A CLOSED LOOP ARMI APPROACH
- SLIDE 27) REST ASSURED, METRICS ARE THE GUIDING LIGHT POSTS AND THROUGH THE PROCESS THE NUMBERS SPEAK, THE SILOS FALL, AND AN INTERCONNECTED PARRALEL STRATEGY OCCURS
- SLIDE 28) FOOD CHAIN THEORY MONEY- CALL TO ACTION In August of 2008, I originally had authored (Digital) “Food Chain Theory.” The overview of food chain theory is as follows and is directly focused on digital advertising dollars: Are the valuations of Google, Yahoo, Microsoft and or any company that has significant share of its revenue coming from digital advertising flawed? View/ Click through's, time spent, banner and buying search words vs. spending the same digital dollars and capturing outcomes at the point of consumption (electronic point of sale). If you were a large brand would you spend on eyeballs or outcomes?
- SLIDE 29) VALUATIONS IN CONNECTION WITH AD SPENT WHATS A POINT WORTH?
- SLIDE 30) Rule #1- Pay Attention to the ‘Tranquil Obviousness’ * Peter Drucker Digital Advertising Time & Resources are primarily focused on ‘Push’ (one-way communications ) advertisements . Fundamentally, today, monetization is derived via costs associated from pay per clicks, conversions, impressions, time and actions. Physical World Business Operators (such as Retailers) will enable clear measurement of Digital Advertising expenditures at point of consumption/ point of purchase. This will establish a game-changing paradigm (‘food chain’) shift. Physical World Business Operators Deployment of closed-loop ‘opt in’ solutions are the key to enabling measurement, segmenting, indexing and remarketing.
- SLIDE 31) Rule #2- Recognize the Substantive and Sustainable ‘Controlling Forces’ in the value chain Who has the greatest clout to impact the value chain? Are eyeballs, click or view through rates, and time spent more important than measureable outcomes or purchases at the electronic point of sale? Many of the largest physically located businesses operators (such as retailers) are also the largest buyers of there vendors products and services; These same vendors also happen to have some of the largest global digital advertising budgets; Is it more important for P & G to advertise on Google . Yahoo, Bing OR through a Retailers Digital Solution like CVS… who happens to be a top 5 global outlets for the sale of P & G’s products and could enable measurability at point of sale? The future will illustrate that Physical World Business Operators will use their purchasing clout to exploit these very same digital advertising budgets; The choice is clear: Digital Advertising Dollars captured/ measured at the point of outcome/ electronic point of sale OR continue with yesteryears push style advertisements via Google, Yahoo, or Bing?
- SLIDE 32) Rule # 3- Influence ‘The Pawn’s’ Next Move Digital Advertising Agencies may appear as the supporting actors to Physical World Business Operators who endeavor to optimize digital advertising monies & exposure; However, traditional Digital Agency roles and responsibilities will be forced into managed service (SaaS) business models for survival. This will also include aggregation of technology solution providers that enable a focus and measurable means to decrease customer acquisition costs while providing rich data around: registrations, push/ pull feature functionalities, and superior segment and indexation capabilities; The Digital Advertising Agencies that adopt SaaS models will have a strategic and tactical edge in leveraging enormous value. Accelerating and extending 360-degree consumer facing solution adoption will benefit the entire value chain, provoke these agencies to have new, more robust and comprehensive value propositions.
- SLIDE 33- Rule # 4- ‘Practicality’ in 360 degrees Today, the World Wide Web still highly values search, click, see through and conversion rates, email marketing , number of (unique) visitors/ traffic and time spent. However, Physical Operators have begun to deploy digital solutions with significant successes. Consumer focused ‘push’ solutions offering coupons have seen redemptions significantly greater than traditional print coupons. Interactive ‘push/ pull’ solutions like video rewards; offer an inducement for participation and provide a means that the consumer earns coupons with each video they choose to view. This platform has experienced similarly high redemptions, drove incremental sales and extends and enhances loyalty The high success rates validate rapid consumer adoption of and for Interconnected Digital Solutions that extend and enhance value; Digital Solution features and functionalities that capture, connect & optimize traditional data to individual such as localizing data will create a new set of efficiencies around merchandising, loyalty, faster segmenting, indexing, and more targeted re-marketing opportunities. The end effect will provide a greater benefit to all parties as coop dollars extend/ convert into digital dimensions
- SLIDE 34- Rule # 5- ‘It’s a Journey’ evolution does create revolution NEAR: Physical World Business Operators Implementation of Consumer Facing Hyperlocalization will enable personalized content offers, plus significantly provide a superior means to measure trends, and effectively manage and market inventory; CORE: Through Digital Solutions New Efficiencies and Associated Return on Investments will establish a path towards extending, enhancing, and interconnecting the enterprise marketing and advertising platforms with interconnected metrics. IN-SIGHT: Ongoing successes and rapid consumer adoption will accelerate ‘TIPPING POINTS’ for all the below layered with “predictive analytics”: Loyalty Shift (from Household to Individual) Mobile payments Digital Signage Convergence
- SLIDE 35- Why building Digital Bridges into the Physical World is Important Today Today, the consumer is the final arbiter and thus, today’s tipping point for whatever, whenever, and however; communication and or content is consumed. The consumer is adopting new technology platforms at annual speeds in just 90 days compared to the last decade. Marketing , advertising, and promotion can no longer be passive one-way conversations. Interactive digital advertising will provide the consumer valuable, relevant, and hyper-localized content based on established preferences and future predictive analytics. Ultimately, the entire value chain will monetize these communications through decreasing customer acquisition costs, while increasing basket sizes, spends, & trip frequencies. However, the ability to capture incremental sales will define the inflectionary growth point(s).”
- HEIDI CHAPNICK INTRO I’d like to introduce a friend and colleague, Heidi Chapnick. For those who have not met Heidi yet, Heidi is a Cross-Channel Digital Expert. Heidi recently resigned from her role at CVS/ Caremark leading the company through their Digital Iniatives. Previously, Heidi was one of the initial management team members behind early .com pioneer Peapod and had spent earlier parts of her career in the food chain industry. After 25+ years in the corporate big retail world, Heidi is in the midst of writing business articles and her first book on the 6 step approach we will be discussing and as I have seen first hand… is one of the most highly sought after experts now beginning to help many retailers on a uniquely driven metrics focused consultative approach. Ladies and Gentlemen, please welcome Heidi Chapnick!
- HC: Why now why the leapfrog? ‘ catching up is the new looking ahead’ Trendwatching.com