the future of digital marketing, search & social marketing
DESCRIPTION
Future of Digital Marketing. Marketers and management should focus on a long-term, integrated/holistic online marketing approach instead of a short-term, direct response driven ROI calculation. In this presentation we round up important market data about internet usage, online shopping and use of social media in The Netherlands and provide tips for successful online marketing strategies in 2009.TRANSCRIPT
Pag. 1 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Pag. 2 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Digital Marketing
The Future
of
Wolter Tjeenk Willink
Pag. 3 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
INTRODUCTION
Pag. 4 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Wolter Tjeenk Willink, founder of Traffic Builders B.V.
Full service search engine marketing agency– Search engine advertising (SEA)
– Search engine optimization (SEO)
– Conversion optimization (web analytics, usability)
Outsourcing services
Consultancy / Training
Detaching / Aiding inhouse SEM teams
WHAT WE DO...
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TODAY’S AGENDA
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IN THIS PRESENTATION…
Marketing challenges
Today’s statement
Online marketing trends, facts & figures
Integrated online marketing strategies for B2C and B2B– Social media marketing
– Search marketing
Key take aways
Pag. 8 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Some of the challenges in marketing we face today:
Selecting the right media channels/marketing instruments
Making optimal use of those marketing instruments
Integrating channels for synergy and consistency
Tracking accountability of your marketing spendings
Dealing with short-term ROI focused management
Budgetting
MARKETING CHALLENGES
Pag. 9 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Marketers and management should focus on a long-term,
integrated/holistic online marketing approach instead of a
short-term, direct response driven ROI calculation.
STATEMENT FOR TODAY
Pag. 10 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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ONLINE MARKETING FACTS & FIGURES
Pag. 11 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Internet is the second largest medium
Gaming outranks reading the newspaper in age 20-50
INTERNET VERSUS OTHER MEDIA
Source: SPOT, June’08
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Time spend online has doubled in just 2 years!
INTERNET VERSUS OTHER MEDIA
Source: SPOT, June’08Age group 20 to 65 years
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Approx. 11 million internet users in NL
90% of those use broadband (cable/DSL)
INTERNET USAGE BY CONNECTION
Source: CBS
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Increased use of laptops: 44% in 2007
Increased use of mobile devices: 21% in 2007
INTERNET USAGE BY DEVICE
Source: CBS
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95% of the users communicate online through chat,
forums, e-mail, etc.
INTERNET USAGE BY ACTIVITY
Source: CBS
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95% uses search engines regularly
Over 30% of internet users use Social Media
INTERNET USAGE BY ACTIVITY (2)
Source: CBS
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In 2007, approx. 70% of all users bought online, of which
60% within a period of 12 months
USE OF ONLINE SHOPPING
Source: CBS
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Travel, software/hardware and clothing remain popular
TYPE OF PURCHASE BY CATEGORY
Source: CBS
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Online sales expected to reach 4.8 billion euro
ONLINE SPENDINGS
Source: Thuiswinkel.org
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30% of Dutch internet users use social media:
Chat sites, like MSN
Forums, like Tros Radar or Vara’s Kassa (popular Dutch consumer forums)
Social network sites, like LinkedIn and Hyves
Bookmark sites like , Reddit, NuJij and eKudos.nl
Blogs varying from “Marco’s recipe site” to
RSS distributors like Feedburner
Mini-Blog applications like Twitter
RISE OF SOCIAL MEDIA
Pag. 21 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Your target audience expects you to “socialize” (1):
60% of US internet users use social media
93% of those users expect companies to have social
media presence
85% believes companies must interact using social media
56% feel a stronger connection and better served
WHY ENGAGE IN SOCIAL MEDIA
Source: Cone Business 2008
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Your target audience expects you to “socialize” (2):
43% believes companies should use social networks to
solve consumer problems
41% feels companies should solicit feedback on their
products and services: enabling co-creation
37% wants companies innovate in brand interaction online
25% even says companies should market to consumers
WHY ENGAGE IN SOCIAL MEDIA?
Source: Cone Business 2008
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Social media in The Netherlands 2008
SOCIAL MEDIA USAGE IN NL
Source: Ruigrok | Netpanel 2008
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The majority of your target audience is online,
searching for information,
interacting with your brand,
through multiple channels like search and social media,
buying your products and services online,
or offline...
But how do we respond in terms of marketing?
TEMPORARY FINDINGS
Pag. 25 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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We’re shifting budget from outdoor and print to online
MEDIA BUDGET ALLOCATION 2008
Source: IAB
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Whilst internet consumes 28% of our media attention...
...online marketing is still at a 19,1% budget share(?)
MEDIA BUDGET ALLOCATION 2008
Source: IAB
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50% was spent on Search (9.6% of overall budget)
25% was spent on display advertising (4,8% of overall)
ONLINE MEDIA BUDGET ALLOCATION
Source: IAB
Pag. 28 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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We are shifting more budget to online.
We are following the crowd, thus:– We have to share the same inventory with more
advertisers while the user attention span gets shorter...
– ...and online marketing gets more expensive
We are still pushing instead of pulling or interacting
New online marketing methods are adopted slowly
Let’s look at some example cases
TEMPORARY FINDINGS
Pag. 29 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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EXAMPLE CASE 1: THE LONG TAILT
ota
l s
ea
rch
vo
lum
e
Number of unique search phrases
Low
High
High
High number of competitors and direct conversions per search phrase at high costs per conversion
The Long Tail in search engine marketing
Low number of competitors and direct conversions per search phrase, but high long-term ROI contribution and low cost per conversion
Pag. 30 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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EXAMPLE CASE 1: THE LONG TAIL
Motivation
Longevity of buying motive
Occasional
Life style
Permanent needOccasional needTemporary need
Life Stage
“Mortgage quote”
“Buying a house”
“Having a baby”
“Carp fishing tips”
“Bicycle routes”
Pag. 31 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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We should also be here(branding, long-term)
EXAMPLE CASE 1: THE LONG TAIL
Motivation
Longevity of buying motive
Occasional
Life style
Permanent needOccasional needTemporary need
Life Stage
We are here(transactional,
short-term)
Pag. 32 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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EXAMPLE CASE 2: TRACKING ROI
Offline sales & cross-media
Track effect of Search on offlineconversions, ROI contribution within online cross-media strategies, etc.
Branding & Customer Lifetime Value
Track online/offline cross-media contributionto branding and ROI
Online direct response / ROI
Track views, clicks, CTR%,whitepaper downloads, onlinesales, etc.
Direct reponse within the sameuser session or max. 30-day period.
Online advertisers
Pag. 33 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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EXAMPLE CASE 2: TRACKING ROI
comScore study 2007Direct response in Search Engine Marketing accounts for just 17% of total sales!
Also:30% of all internet users delete1st and 3rd party cookies regularly!
Pag. 34 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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EXAMPLE CASE 2: TRACKING ROI
comScore study 2007Calculating real conversion worth per euro based on attribution of Latent sales, Cookie deletion correction and offline sales.
Tracked conversion worth
Real conversion worth
Pag. 35 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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INTEGRATED ONLINE MARKETING STRATEGIES
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Long term (2 – 5 years)
Mobile marketing for ROI
Behavioral targeting (still a bridge too far for most of us)
Do use Mobile Search for branding purposes and keeping
up with mobile use in your branch.
RECOMMENDATIONS
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Short term (1 – 2 years)
Invest in inhouse knowledge of Search and other online
marketing channels that are vital for you
Create a separate online marketing department or job
Create a multi-disciplinary task force consisting of IT,
online, offline, PR and management. Get them involved;
make them part of the process.
RECOMMENDATIONS
Pag. 38 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Short term (1 – 2 years)
Seriously invest in web analytics: increase conversion %
Split marketing budget into ROI-driven and Branding
ROI-driven budget should be flexible if possible– Take into account Latent ROI, Cookie deletion, Offline i/a
Invest in content-based marketing, especially in B2B– Share knowledge, not just information
Invest in social media in 2009: be out there
RECOMMENDATIONS
Pag. 39 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Need for an long-term, integrated/holistic approach to:
Search– Organic
– Paid
Social media marketing
Affiliate marketing
Display advertising
And offline marketing
ONLINE STRATEGIES FOR 2009
Pag. 40 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Understand where search engines are moving into:
Personalized search experience
Social search
Universal search
Contextual brand mentioning
Other trends include:
Mobile search
Automated text translation
Voice based search / voice to text
SEO STRATEGIES FOR 2009
Pag. 41 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Personalized search
User preferred content ranks higher
Behavioral targeting of search results
SEO STRATEGIES FOR 2009
Step 1 Step 2 Step 3
Pag. 42 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Social search
Social bookmark sites gain importance
How does this affect your website, knowing:
Sites sharing knowledge will gain popularity over sites
with information?
Sites that offer brand experience will gain popularity over
product sites?
SEO STRATEGIES FOR 2009
Pag. 43 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Universal search
Search results now include: blogs, video, RSS feeds,
podcasts, images, books, shopping, maps, scholar, etc.
How does this affect your website, knowing:
Your site probably has little non-product/service related
content?
And it’s probably not likely that fresh content will be added any
time soon?
SEO STRATEGIES FOR 2009
Pag. 44 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Contextual brand mentioning will influence organic rankings
Google is able to track where and in which context your brand
or company name is mentioned
Google also knows yourdomain.com is the most relevant for
“YourCompanyName”
1 + 1 = 3. How does this affect your company, knowing:
Your PR department does not take into account blogs, portals
and other online authorities in your branch? Let alone SEO?
Nobody bothers to “socialize” online, responding to blogs
SEO STRATEGIES FOR 2009
Pag. 45 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Due to Google’s improved Quality Score invest in:
Broadening your search phrases (in numbers)
Make use of different keyword match types like [exact]
Optimize your landing page:
to improve textual relevance
to decrease bounce rates
and ultimately increase conversion rates
SEA STRATEGIES FOR 2009
Pag. 46 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Think of Google’s network when considering branding
Improved content network for contextual ads– Reasearch indicates a 50% rise in brand
awareness/association
Largest network of site owners/publishers in The
Netherlands for low-cost, high-impact display advertising,
video advertising, etc.
Exposure on YouTube
SEA STRATEGIES FOR 2009
Pag. 47 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Social media examples to help you get started
Business to business:– Actively engage in blogs or start your own, publish articles
and have users ‘Digg’ them or add your RSS feed, publish video content
– Basically: share your knowledge, interact, pull, don’t push
Financial:– Start a blog to answer consumer questions, enable user
ratings for assurance agencies (coming soon), etc.
SOCIAL MEDIA MARKETING
Pag. 48 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Social media ideas to get you started
Travel:– Have users rate accommodations, write reviews,
recommend activities nearby, share their holiday pictures, give them the opportunity to send an holiday eCard with their own photo, etc.
– Provide an environment to enforce and prolong the holiday experience.
Consumer Electronics:– My personal favorite: Will it Blend? The iPhone edition
SOCIAL MEDIA MARKETING
Pag. 49 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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Social media ideas to get you started: Will it Blend?
http://www.youtube.com/v/qg1ckCkm8YI&hl=nl&fs=1
SOCIAL MEDIA MARKETING
• Viral video• 6 million views within a week on YouTube• Over 13.000 ‘votes’ • Almost 6000 comments• Sales increased by 500 percent
Pag. 50 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Get management involved and informed, continuously
Split online marketing budget into a flexible Direct
response budget and a Branding budget
Improve (cross-media) web analytics / ROI calculations
Optimize landing pages and goal conversion funnels
Gain inhouse knowledge of important online media
Be patient: there’s more than direct response
Now get out there and socialize!
CONCLUSIONS
Pag. 51 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
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END
Pag. 52 | The Future of Digital MarketingCopyright Traffic Builders B.V. 2008 – All rights reserved
Also visit TBlog, the leading Dutch search engine marketing blog www.traffic-builders.com/tblog
Wolter Tjeenk Willink Mark Tijssen
Managing Director Sales Consultant
Traffic Builders B.V.
Schoutstraat 63
1315 EW Almere, NL
Tel. +31(0)36 53 742 41
More about search engine marketing: www.traffic-builders.com
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