Digital communications

Bart De Bodt

UGent 25 October 2012

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Agenda

1. Smartphones are becoming an indispensible part of our lives

2. TV is the digital marketer’s best friend

3. RTB could become the next big thing in online marketing

4. What’s not changing, and won’t

2

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22% of the Belgian people have a smartphone

3

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: National representative population 16+, n= 1.000 Q1: Which if any of the following devices do you currently use

Belgium

Germany

France

Netherlands

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

22%

29%

38%

43%

Smartphone penetration

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Android is used most in Belgium

4

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Smartphone usersQ1: Which if any of the following devices do you currently use

Windows 7 Phone

Symbiam

Blackberry

Iphone

Android

0% 5% 10% 15% 20% 25% 30%

7%

10%

13%

20%

28%

Devices used in Belgium

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39% access the Internet every day on their smartphone and 72% never leave home without it

5

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q18: Thinking about the last seven days on how many days were you online with ...?Q52: To what extent do you agree to each of these statements?, Top2 Boxes; scale from 5 – completely agree to 1 – completely disagree.“I don’t leave house without my smartphone”

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Smartphone users are multi-tasking their media with 80% using their phone while doing other things such as watching TV (49%)

6

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Private smartphone users who use the Internet in general and who were online yesterday with their smartphone, Smartphone n= 632 Q22: When you use the Internet on your smartphone, which if any of the following – do you do at the same time?

Use Internet

Listen to music

Watch television

0% 10% 20% 30% 40% 50% 60%

30%

45%

49%

Which devices do you use at the same time?

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Mobile is becoming a considerate part of the consumer journey

7

Source: Google data plotted on customer journey visual of McKinseyOur Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q51a: And where were you when you researched for products or services with your smartphone?Q44: Have you ever purchased a product or service over the internet on your smartphone? With product or service we mean everything you can buy excluding apps. Base: Private smartphone users who use the internet in general and who purchased via internet on their smartphone n= 138 Q45: Have you made a purchase by using your smartphone in the past month? 30

65% have researched a product or service on their phone

14% of smartphone users have purchased a product or service on their smartphone

52% of these smartphone shoppers have made a purchase in the past month

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There are still barriers to mobile commerce

8

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Private smartphone users who use the internet in general and who NOT purchased via internet on their smartphone n= 862 Q46: Why have you not made a purchase using your smartphone?

Too complicated

Doesn't feel secure

Would prefer to use a PC/laptop for these services

0% 10% 20% 30% 40% 50% 60% 70% 80%

10%

23%

69%

Marketers should improve the mobile internet experience

Why have you not made a purchase using your smartphone?

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Advertising is calling mobile users to action

9

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Private smartphone users who use the internet in general and who at least rarely notice advertising, n= 850 Q43a: How often do you use your smartphone to do a search in response to an ad you have seen in a magazine, on a poster, on TV or in a shop/business?

Mostly after viewing a TV commercial (43%)

51% have performed a mobile search after seeing an ad

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Mobile ads make an impression

10

Source: Our Mobile Planet: Belgium, Understanding the Mobile Consumer, Google, May 2012Base: Private smartphone users who use the internet in general and who at least rarely notice advertising n= 850 Q42: Where have you noticed advertising when using your smartphone?

while in a app

while using a search engine

while on a website

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

28%

30%

45%

Where have you noticed advertising when using your

smartphone?

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Summary: we can learn 2 important things from this Google research

11

Smartphones are changing the way consumers shop

Websites should be optimized for mobile visitors. Responsive web design is a solution for this

Insights What marketers should do with it

Smartphone users are real multi-taskers and most of them notice

mobile ads

Marketers should extend their communication and advertising

strategies with mobile to develop integrated cross-media

campaigns

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Responsive Web Design

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In the past the width of a website was based on the lowest common denominator

13

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The number of display sizes has exploded

14

Device Screen resolution (pixels)

Iphone 960×640

Ipad 1024×768

Android smartphones 320×240, 320×480, 480×640, 480×800, …

Symbian smartphones 320×240, 320×480, 480×640, 480×800, …

Windows smartphones 320×240, 400×800, 480×800, …

Android tablets 800×600, 1024×600, 1024×768, …

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The new trend is to use Responsive Web Design

15

Responsive web design is an approach to web design in which a site is crafted to provide an optimal viewing across a wide

range of devices

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Responsive Web Design has many advantages

16

You don’t need to built different websites for desktop and mobile devices

Your website looks optimally on different devices and display sizes

Your website can be easily found by search engines

Your website is accessbile from only 1 URL

Source: Blog wijs.be

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Some tips to optimize your website for mobile devices

17Source: Google webinar, Are You Mobile Ready? http://www.youtube.com/watch?v=j-xh-lNpNhs

Prioitize your content

Use a simple lay-out

Use short titles

Design for thumbs not mice. Make it easy to click

Build for scrolling only in one direction

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Mobile advertising

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Tablets and smartphones are used more in the evening

19Source: Comscore

Mobile advertising will extend your online reach

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Just don’t leave it up to faith

20

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Tip #1:Tip #1:

21

Check if mobile fits your communication strategy

Check if mobile fits your communication strategy

Objective Target groupMessage/Dialogue

Comm channels

PrepareEvaluation

What do you want to communicate?

- Results from objective & target group

- Aligned with discriminator

- Should be clear, not confusing

- Foresee different messages to attract, connect, inform, engage and empower

Which communication channel(s) do you want to use to communicate your message or create a dialogue?

- Results from looking at customer’s journey

- Create 360° integrated comm plan

Which goals do you want to reach?

- Create awareness or buzz- Information

- action: change of attitude, change of behaviour - Leads - Loyalty - …

Who do you want to reach?

- Results from segmentation & targeting

- Needs to be determined very detailed (not just sociodemographic data)

How will we measure our progress? How will you evaluate your campaign afterwards?

- Set up KPI’s beforehand:

- awareness - penetration - sales - …

- Implement evaluation tracking tools

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Tip #2:

22

STOP ASSUMING ASK!

Source: Jonathan Mac Donald – 3P’s model

Define a relevant and specific mobile strategy

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Tip #3 :

23

Increase ad engagement level

Offer numerous possibilities : Sound Video Gaming Catalog Form …

Consider Rich Media ads

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Tip #4:

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Use the right landing page

1. Click-to-call

Users who call are closer to a purchase decision

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2. Click-to-App

Promote your mobile apps directly

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3. Click-to-Map

Find the nearest store and get promotions based on location

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4. Click-to-Buy

Close the loop directly thanks to mobile payment

Presentation1 29Source: Google webinar, Are You Mobile Ready?; http://www.youtube.com/watch?v=j-xh-lNpNhs

5. Click-to-page

However 79% of large online advertisers do not have

a mobile optimized site

Presentation1

Agenda

1. Smartphones are becoming an indispensible part of our lives

2. TV is the digital marketer’s best friend

3. RTB could become the next big thing in online marketing

4. What’s not changing, and won’t

30

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We all know that for Gen Z, digital connections with the world, and with friends in particular, are essential

31Source: JWT, Gen Z: Digital in their DNA

Almost 8 in 10 teens belong to some kind of social network and use it to chat with friends, share photos and play games

They value Internet connections, mobile phones and the ability to text friends more highly than allowance money

Significant percentages prefer socializing online than in real life

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Always attached but some things never change: Television is still king

32Source: JWT, Gen Z: Digital in their DNA

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Television would also be missed most

33Source: JWT, Gen Z: Digital in their DNA

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But they are using different devices at once (simultaneous screening)

34Source: Google

Simultaneous screening is where traditional and digital marketers should become best friends

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So you have to make experience between devices seamless

35

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VIER is even using mobile to make their viewers stick to the commercial breaks

36

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Last but not least, television has a direct effect on the number of ad searches

37Source: Research by Google, VAR, RMB

A TV campaign will boost your Adwords campaigns

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The ad boost depends on the category

38Source: Research by Google, VAR, RMB

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Agenda

1. Smartphones are becoming an indispensible part of our lives

2. TV is the digital marketer’s best friend

3. RTB could become the next big thing in online marketing

4. What’s not changing, and won’t

39

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Normally you buy online display in bulk

40

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You are sure on which sites you will appear and how many impressions you will get

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But you have to pay a high CPM

Sanoma ratetecard for online display

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RTB or Real Time Bidding allows you to buy single impressions, mostly at a better CPM price

43

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RTB allows different ways of targeting

44

No initial targeting

Audience buying

Retargeting

website visitors

Target website groups by calculating the

Cost per Action afterwards

Target on interest, location and recently visited websites by looking at cookies

Target visitors of your website that have not converted by looking

at cookies

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Proponents see many advantages

45

Less waste since you don’t buy bulks of impressions but only specific users that are of interest to you.

Ability to customize ads in real time according to the viewer’s digital traces.

More flexibible as you can turn your campaigns on and off whenever you want

Less expensive

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But it is less clear on which sites you will appear

46

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RTB involves many steps that all happen within microseconds

47

Visit on website

Ad serverSSP

(connected to publishers)

One or more ad exchanges

One or more DSPs (connected to advertisers)

Evaluate bid requests

Bid requests Bid offers

Highest bids & ads

Winning bid & ad

Ad request

Ad request Ad requestAd

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RTB is using second-price auction theory

48

The winner of the ad impression doesn’t have to pay his actual bid, but the second highest bid + 0,01€.

This way advertisers can safely give their maximum price because they know they’ll only pay the amount they need to beat the next highest advertiser.

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RTB Publisher can also set floor prices

49

Price/win rate evolution without floor prices

Price/win rate evolution with floor prices

If the bids are lower than the floor price, the impression goes to a non-RTB demand source

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RTB requires both analytical and creative skills

50

Left Brain Right Brain

• Strong analytical skills• Tools and technology• Return on investment

• Strong creativity skills• Attractive design • Call to actions

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The left brain marketers should test which bidding rules work best

51

if your ad appears below the fold   0.25c

if the user is seeing the ad for the first time $1

if the user saw the ad 3 times this week $0.5

if the user saw the ad 5 times this week $0.1

if the user saw the ad 7 times this week don’t bid

If the user visited your site in the past $3

If the user visited your site and left at the checkout $5

If the user usually visits sites similar  to yours $2

Source: http://www.adgorithms.com/our-technology/rtb-real-time-bidding

Situation Bid

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The right brain marketers should design call to actions and creative versions

52

Offer 1 Offer 2 Offer 3

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DoubleClick Ad Exchange (Google) is selling more and more RTB (up to 68% in 2011)

53

Source: Internal Google data based on DoubleClick Ad Exchange spend via RTB, not including inventory won by AdWords. January 2010 through May 2011.

Inventory sold through RTB jumped from 8% in January 2010

to 68% in May 2011. But Google is performance oriented and an early adapter so it is not representative for online

display in general

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In general RTB is forecasted to rise to more than 20% of the online display market

54

Source: IDC

We do not know the figures for Belgium but we hear from online agencies that it is just beginning

2012 20150%

5%

10%

15%

20%

25%

30%

16%

27%

12%

25%

USUK

% of onine display spending via RTB

% RTB

Time

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But big media agencies are starting to invest in RTB in Belgium

55

Source: digimedia.be

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To break trough RTB needs to overcome some barriers

56

RTB is still unknown by many digital marketers

Publishers are afraid to cannibalize their premium inventory and only offer their unwanted ad space

The EU Cookie Directive, which came into force in May 2011, is of some concern to the RTB industry, requiring consumers to give their consent to websites using tracking cookies.

Presentation1

Agenda

1. Smartphones are becoming an indispensible part of our lives

2. TV is the digital marketer’s best friend

3. RTB could become the big thing in online marketing

4. What’s not changing, and won’t

57

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Marc Mathieu

Marketers’ purpose remains to develop and market products, services, brands that improve and embellish consumers’ life.

Improve the life of your consumers

58

“When connecting with consumers, we should ask ourselves: are we really adding something to people's lives, everyday and for the long run

?”

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Bill Bernbach

The rules that have always guided human relationships and communication still apply:

Keep it simple, personal and relevant

59

“Real motivations are the result of nature’s programming of our genes. The proper study of the communicator is the unchanging man”

Keep it simpleKeep it

personalKeep it relevant

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Make sure your communication impacts your consumers

60

The purpose of communication is to grab the attention of your consumers and engage them by using strong branding

‘Le Bateau’, Muinkkaai 1, Ghent20/11/2012 – 19h00

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