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PROMOTIONS
2.0   The future of
      interactive marketing
The Big Shift
Advertising isn’t what it used to be
New technologies,
   fragmented    media, and a new
generation of empo wered consumers
    are rapidly changing the world
            of advertising...
Weʼre Spending Less Time Here...




Radio                         TV                                Print
-19%                         -33%                               -30%

   Decline in time spent with traditional media
      due to increase in time spent online

             Arbitron Research: Internet and Multimedia Study
...And More Time Here.
New technologies are captivating consumers
Social Media
                               Social Media is the new Mass Media

                                   200 million
           200


           150
                 120 million
millions




                                                  98 million
           100


           50
                                                                 32 million

                                                                                3.6 million
            0
                 MySpace          Facebook       Super Bowl    American Idol People Magazine
Media fragmentation
   is increasing.

In 1971, the average
person encountered
    approximately



 500
ad messages a day




David Schenk, Marketing Smog
8




       Today,
    that number
      is almost


5,000
   making it harder to
  engage consumers.




David Schenk, Marketing Smog
dvert  ising
   On line A            flat with
         ates have been
        R
   “CPM ults for the past 2 years.”
declining res                   now .01%
                     ough rates
    Average click thr


                       Online Promotion
                    spen               s
                          ding expected to tr
                                             iple over the
                      next 5 years surpa
                                          ssing all other
                        online advertising c
                        Borell Associa
                                       te
                                            ategories.
                                 s: The Big Shif
                                                t Research Re
                                                              port (April 20
                                                                             08)
Digital Consumers
         are shifting from passive shoppers to active brand participants


           200 million                                                                               36 million
US consumers have shopped online                                                              Download music or video*
  Over 875 million worldwide***


                                                                 user



                                                                                                                40 million
110 million                                                                               mobile
                                                                                                             Browse the web from
                                                                                                             their mobile phone**
 Participate in                   customer
Social Networks*


        PASSIVE


  95 million
    Participate in                 community                                             producer            50 million
   online Contests                                                                                    Have created online content*
  & Sweepstakes****
                                                             participant

*Pew Internet & American Life   **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report   Image: David Armano
30.0
                                                                                                 2008     2012



                  22.5
($ in Billions)




                  15.0



                   7.5



                         0
                             Promotions    Email               Search                    Video          Display




                                    Online Promotions
                                Spending expected to surpass other online advertising
                                          categories over the next 5 years.

                                                   Source: Borell Associates inc. 2008
Because promotions deliver results...

 60%                                            80%                         82%
of US consumers                              of online                      of consumers
have purchased                               consumers have                 will provide personal
a brand due to a                             entered a                      information in exchange
promotion.*                                  sweepstakes.**                 for a chance to win.***

*IMI International **eMarketer ***Jupiter Research: Online Privacy Report
The New Marketing Mix
                                    Advertising + Digital Promotions

                                        Quadrant 4 = most value
                                                   Increased Value




                                                                     Increased Value
High
                                                                                           Promotions + Advertising
                                                                                       4   Increased relevance & entertainment
                                                                                           By combining digital promotions &
                        2                          4                                       advertising both relevance &
                                                                                           entertainment value is increased
 @




                                                                                           moving closer to Quadrant 4.
@ Relevant




                                                                                           Television Advertising
                                                                                       3   Low Relevance - High Entertainment



                        1                           3                                  2   Internet Advertising
                                                                                           High Relevance - Low Entertainment


                                                                                           Mass Marketing
                                                                                       1
Low
                                                                                           Low Relevance - Low Entertainment
             Low               @ Entertaining @               High

             Relevance & Entertainment
             2 axis that create consumer value in marketing:
             While all marketing is capable of playing in quadrant
             four, no single medium has broken through.

             Source: Joseph Jaffe
Old Marketing    New Marketing

  Spray & Pray   Attract & Engage

Large Audience   Smaller Audiences

 Low Relevance    High Relevance

  Low Return       High Return
Promotions 2.0
Marketers are using digital promotions today
    to create buzz & cut through the clutter
Digital Promotions
                      From Brand Awareness to Engagement
                                High Consumer Involvement




                                                >
                                                                         UGC

                                              Instant win




                                                                                   Brand Engagement
Brand Awareness




                                                            Advergames
                                     Social

                  >                                                            >


                                              Mobile



                       Sweepstakes

                                                                                                      Core Audience

                                                                                                      Extended Audience
                                                >




                                     Low Consumer Involvement
70%
of CPG Super Bowl Advertisers
used interactive promotions at the core of their 2008 campaigns.




                                                    Source: Promo Magazine
User Generated Contests
deep brand engagement & active participation




        Doritos changes the game
    Contest winner beats out madison avenue
winning USA TODAY'S 2009 Super Bowl Ad Meter
Advergames
    brand messages become viral brand experiences




30% of Super Bowl viewers say they are more likely to visit an
 advertiser's Web site after seeing a Super Bowl commercial*
                     *2009, Harris Interactive Poll
Advergames
 brand messages become viral brand experiences

                                                                            40


                                                                            30


                                                                            20


                                                                            10


                                                                            0
Advergames                    Video                        Tell-a-Friend
Advergames/    Online           Viral           Social
                                                            Tell-a-friend
 Microsites   Contests         Video         Bookmarking


 Viral Marketing Tactics with “Greatest Results”*

               * 2008 eMarketer, Viral Marketing Survey
Mobile Integration
            participation anytime or anywhere




Largest US SMS Promotion                    New technologies driving innovation

       97% of consumers carry their phone at retail*
                  * Promotion Marketing Association Digital Summit
Inclusive Experiences
         Everyone wins something. Someone wins everything.




One person wins a trip to the World Series   One college wins a private concert
       Everyone wins a taco if base            with the Dave Matthews Band
        is stolen during the game                 Everyone watches online
Social Promotions
         promotions worth talking about




               78% of consumers
trust consumer recommendations over advertising

             Nielsen “Trust in Advertising Study” 2007
Promotion Hell
Poor planning can lead to big problems
Warning!
Promotions are regulated & must comply with federal and
     state laws to avoid civil & criminal penalties.
Axl Rose vs. Dr. Pepper
        Everyone in America gets a Dr. Pepper (sort of)

No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
Rock the Vote
Starbucks and Krispy Kreme face penalties for election day giveaways

         Federal Statute prohibits any organization from
                 “providing rewards for voting.”
Pepsi Stuffed
          Harrier Jet a steal at 700,000,000 points

Student sues over deceptive advertising & business practices
       after acquiring enough points to purchase Jet.
 Result: Out of court settlement and a whole lot of bad PR.
Promotions 3.0
What’s next for advertising & promotions?
Clutter Continues
Brands will look for new ways to engage consumers
           as media & product proliferation expands




                                                      M
Mobile Dominates
 Mobile & Wireless devices will become the next
                   dominant consumer platform




65 Million U.S. Mobile Internet users in 2008 and growing*
                 * Promotion Marketing Association Digital Summit
Social Media Expands
    Social Media is bigger than you think... and it’s just getting started




U.S. Social Network Usage
All Adults                 35%
Adults 18-24               75%
* Pew Internet & American Life Project, December 2008
Legal Issues Continue
   Privacy & Legal issues will continue to
    create new challenges for marketers
teamDigital
teamDigital is an interactive marketing agency
specializing in technology driven promotions that
leverage new channels and technologies including
online, mobile, & social networks to engage
consumers and create measurable brand value.

Email
info@teamDigital.com
                                           +
Website
www.teamDigital.com
Blog
www.Promotions2.com

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Promotions 2.0

  • 1. PROMOTIONS 2.0 The future of interactive marketing
  • 2. The Big Shift Advertising isn’t what it used to be
  • 3. New technologies, fragmented media, and a new generation of empo wered consumers are rapidly changing the world of advertising...
  • 4. Weʼre Spending Less Time Here... Radio TV Print -19% -33% -30% Decline in time spent with traditional media due to increase in time spent online Arbitron Research: Internet and Multimedia Study
  • 5. ...And More Time Here. New technologies are captivating consumers
  • 6. Social Media Social Media is the new Mass Media 200 million 200 150 120 million millions 98 million 100 50 32 million 3.6 million 0 MySpace Facebook Super Bowl American Idol People Magazine
  • 7. Media fragmentation is increasing. In 1971, the average person encountered approximately 500 ad messages a day David Schenk, Marketing Smog
  • 8. 8 Today, that number is almost 5,000 making it harder to engage consumers. David Schenk, Marketing Smog
  • 9. dvert ising On line A flat with ates have been R “CPM ults for the past 2 years.” declining res now .01% ough rates Average click thr Online Promotion spen s ding expected to tr iple over the next 5 years surpa ssing all other online advertising c Borell Associa te ategories. s: The Big Shif t Research Re port (April 20 08)
  • 10. Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 million US consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million 110 million mobile Browse the web from their mobile phone** Participate in customer Social Networks* PASSIVE 95 million Participate in community producer 50 million online Contests Have created online content* & Sweepstakes**** participant *Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
  • 11. 30.0 2008 2012 22.5 ($ in Billions) 15.0 7.5 0 Promotions Email Search Video Display Online Promotions Spending expected to surpass other online advertising categories over the next 5 years. Source: Borell Associates inc. 2008
  • 12. Because promotions deliver results... 60% 80% 82% of US consumers of online of consumers have purchased consumers have will provide personal a brand due to a entered a information in exchange promotion.* sweepstakes.** for a chance to win.*** *IMI International **eMarketer ***Jupiter Research: Online Privacy Report
  • 13. The New Marketing Mix Advertising + Digital Promotions Quadrant 4 = most value Increased Value Increased Value High Promotions + Advertising 4 Increased relevance & entertainment By combining digital promotions & 2 4 advertising both relevance & entertainment value is increased @ moving closer to Quadrant 4. @ Relevant Television Advertising 3 Low Relevance - High Entertainment 1 3 2 Internet Advertising High Relevance - Low Entertainment Mass Marketing 1 Low Low Relevance - Low Entertainment Low @ Entertaining @ High Relevance & Entertainment 2 axis that create consumer value in marketing: While all marketing is capable of playing in quadrant four, no single medium has broken through. Source: Joseph Jaffe
  • 14. Old Marketing New Marketing Spray & Pray Attract & Engage Large Audience Smaller Audiences Low Relevance High Relevance Low Return High Return
  • 15. Promotions 2.0 Marketers are using digital promotions today to create buzz & cut through the clutter
  • 16. Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand Engagement Brand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement
  • 17. 70% of CPG Super Bowl Advertisers used interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine
  • 18. User Generated Contests deep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenue winning USA TODAY'S 2009 Super Bowl Ad Meter
  • 19. Advergames brand messages become viral brand experiences 30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll
  • 20. Advergames brand messages become viral brand experiences 40 30 20 10 0 Advergames Video Tell-a-Friend Advergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey
  • 21. Mobile Integration participation anytime or anywhere Largest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit
  • 22. Inclusive Experiences Everyone wins something. Someone wins everything. One person wins a trip to the World Series One college wins a private concert Everyone wins a taco if base with the Dave Matthews Band is stolen during the game Everyone watches online
  • 23. Social Promotions promotions worth talking about 78% of consumers trust consumer recommendations over advertising Nielsen “Trust in Advertising Study” 2007
  • 24. Promotion Hell Poor planning can lead to big problems
  • 25. Warning! Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.
  • 26. Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of) No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
  • 27. Rock the Vote Starbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”
  • 28. Pepsi Stuffed Harrier Jet a steal at 700,000,000 points Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet. Result: Out of court settlement and a whole lot of bad PR.
  • 29. Promotions 3.0 What’s next for advertising & promotions?
  • 30. Clutter Continues Brands will look for new ways to engage consumers as media & product proliferation expands M
  • 31. Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform 65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit
  • 32. Social Media Expands Social Media is bigger than you think... and it’s just getting started U.S. Social Network Usage All Adults 35% Adults 18-24 75% * Pew Internet & American Life Project, December 2008
  • 33. Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers
  • 34. teamDigital teamDigital is an interactive marketing agency specializing in technology driven promotions that leverage new channels and technologies including online, mobile, & social networks to engage consumers and create measurable brand value. Email info@teamDigital.com + Website www.teamDigital.com Blog www.Promotions2.com