tns & ogilvy bringing digital to life 10/26/10
DESCRIPTION
Discover: • What it takes to engage effectively with the constantly-evolving digital consumer • How to benefit from the latest technology use, adoption and communications trends in the marketplace • Why it pays to establish ongoing dialog everywhere with consumers and business users alike • Where changes in activities and needs are putting pressure on tech marketers and producers to deliver differently • Who stands to benefit most from changes in the tech marketplace and what will determine success Digital Matchmaking: • Connecting digitally with your best customers and prospects • What makes getting together with your customer targets more difficult today? • Why is it important to know the digital attitudes and behaviors of your customers? • Once you understand those attitudes and behaviors, how can you apply that to marketing strategy? Digital Mobility Moves to the Forefront • Charting a course for mobile engagement • What are customers doing differently in a smart device world? • How do expectations change for consumers with smart devices? • When and how do they want to interact with messages and marketers? Discovering a Whole New Digital Business World • How is the cloud transforming business buying and selling? • How will the cloud commoditize services? • Where does social flow in traditional B2B sales funnel? • How are business customers interacting with various stakeholders digitally?TRANSCRIPT
Bringing Digital to Life
Bringing Digital to Life
Digital Matchmaking
Bringing Digital to Life
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Overview
Drivers of Growth and Engagement: Activities and Attitudes
Understanding the Types of Consumers Online
Internet Engagement and Growth: Geographic Differences
Bringing Digital to Life
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Internet Engagement and Growth: Geographic Differences
Drivers of Growth and Engagement: Activities and Attitudes
Understanding the Types of Consumers Online
Overview
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Digital engagement varies geographically – and so will growth
HIGH
INVOLVEMENT
HIGH
CONSUMPTION
LOW
INVOLVEMENT
LOW
CONSUMPTION
Internet is routineMakes my life more efficient
Internet is non-essentialNot a big part of my life
Internet is pivotalIs the center of my life
Internet is aspirationalHelps me achieve my goals
Hi growth anticipated
Med growth anticipated
Digital engagement index is a measure of consumer / engagement in Digital; S5: How often access / Base: All respondents, n=48804
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
N America Lat Am China India Sub-Sah Africa
Mobile
PC at Café/Friends
PC at School
PC at Home
Access points vary with stage of development
Critical to leverage mobile access
Limited home access
26M 4M
Share of time spent by access point
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Internet Engagement and Growth: Geographic Differences
Drivers of Growth and Engagement: Activities and Attitudes
Understanding the Types of Consumers Online
Overview
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Bringing Digital to Life
Social Networking + ++ +++ +++ +++
Gaming + ++ +++ +++ +
Multimedia + ++ +++ +++ +
News, info seeking + ++ +++ +++ +++
Email + + +++ +++ +++
Shopping + +++ +++ ++ +
What are they doing online?
Low Current usageAvg Current UsageHigh Current Usage + = anticipated growth
Promote growth thru advanced mobile
devices/apps
E-commerce growth continues in hi-use markets
Growth in “utilitarian” applications
Reject BrandsBrand ReceptiveBrand ReceptiveModerate Moderate Differences in ad opportunity
Growth across the board in LAm & India
I6: Change in future activities use / All respondents: 222 163 225 393 361
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Bringing Digital to Life
Attitudinal drives of online behavior
Can’t imagine life without the Internet
Allows freedom of expression don’t have offline
Helps connect with like-minded individuals
Life without Internet would be a lot less fun
Internet improves my relationships
Low
Average
High
Internet allows me to stand out and be different
Internet is transformational in the east, more routine in the west.
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Internet Engagement and Growth: Geographic Differences
Drivers of Growth and Engagement: Activities and Attitudes
Understanding the Types of Consumers Online
Overview
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Composition varies greatly by market
0
10
20
30
40
50
60
70
80
90
100
N America Lat Am China India SSA
Networkers
Influencers
Communicators
Knowledge-seekers
Aspirers
Functionals
The Internet is an integral part of my life
Use the Internet for expressing myself
Internet for info, knowledge, education
Internet is important for relationships
Looking to create a personal space online
Internet is a functional tool
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Bringing Digital to Life
Digital EngagementActivities
FUNCTIONALS
Digital activities
Number of friends
Digital Engagement
N AmericaN/W EuropeS/E EuropeDev Asia
Involvement
Consumption
Male Female
Younger Older
Employed Not employed
High Low
Digital Attitudes
Where?
Who?
Brand interaction
Frequency of internet accessI am concerned about data protection and privacy in the internet
Internet helps me connect with other like-minded individuals
In the online world, I can better express my feelings
The Internet improves the relationships I have with other people
Open to brands Brands are intrusive
Level of online purchasing (out of six) 5th
Above average touchpoints
ONLINE OFFLINEBranded sites Offline media
Retailer sites Retail shop
Price comparison Offline WOM
Search engine
User review on blog
Review sites
Social network comments
L
Mature and in developed markets. Internet is a tool. Control and efficiency make them mostly practical.
H
L
L
L
13
Bringing Digital to Life
Digital EngagementActivities
ASPIRERS
Digital activities
Number of friends
Digital Engagement
IndiaEmerg AsiaMENASSA
Involvement
Consumption
Male Female
Younger Older
Employed Not employed
High Low
Digital Attitudes
Where?
Who?
Brand interaction
Open to brands Brands are intrusive
Level of online purchasing (out of six) 6th
Above average touchpoints
ONLINE OFFLINEBranded sites Offline media
Retailer sites Retail shop
Price comparison Offline WOM
Search engine
User review on blog
Review sites
Social network comments
Frequency of internet accessThe Internet improves the relationships I have with other people
In the online world, I can better express my feelings
Internet enables me to belong and be accepted by my friends
I can t imagine a life without the internet anymore
Life without the internet would be a lot less fun
L
H
L
L
H
Rely on mobile, but technology limits the best apps and networks. Need more mobile. Not into ecommerce.
14
Bringing Digital to Life
Digital EngagementActivities
NETWORKERS
Digital activities
Number of friends
Digital Engagement
N AmericaN/W EuropeS/E Europe
Involvement
Consumption
Male Female
Younger Older
Employed Not employed
High Low
Digital Attitudes
Where?
Who?
Brand interaction
Open to brands Brands are intrusive
Level of online purchasing (out of six) 4th
Above average touchpoints
ONLINE OFFLINEBranded sites Offline media
Retailer sites Retail shop
Price comparison Offline WOM
Search engine
User review on blog
Review sites
Social network comments
Frequency of internet accessThe Internet improves the relationships I have with other people
I can t imagine a life without the internet anymore
Internet helps me connect with other like-minded individuals
In the online world, I can better express my feelings
Internet allows freedom of expression that I don t have in the offline world
H
L
L
HH
Heavy involvement in communities, and not much else. Ignore brands, but might see them as effective.
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Digital EngagementActivities
KNOWLEDGE-SEEKERS
Digital activities
Number of friends
Digital Engagement
S/E EuropeLatAm
Involvement
Consumption
Male Female
Younger Older
Employed Not employed
High Low
Digital Attitudes
Where?
Who?
Brand interaction
Frequency of internet accessI am concerned about data protection and privacy in the internet
Internet allows freedom of expression that I don t have in the offline world
Internet enables me to belong and be accepted by my friends
In the online world, I can better express my feelings
I can t imagine a life without the internet anymore
Open to brands Brands are intrusive
Level of online purchasing (out of six) 3rd
Above average touchpoints
ONLINE OFFLINEBranded sites Offline media
Retailer sites Retail shop
Price comparison Offline WOM
Search engine
User review on blog
Review sites
Social network comments
H
L
L
MM
Voracious need to know, even about brands. Learn through search, reviews, brand sites and direct mail.
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Bringing Digital to Life
Digital EngagementActivities
COMMUNICATORS
Digital activities
Number of friends
Digital Engagement
ChinaEmerg Asia
Involvement
Consumption
Male Female
Younger Older
Employed Not employed
High Low
Digital Attitudes
Where?
Who?
Brand interaction
Frequency of internet accessIn the online world, I can better express my feelings
Life without the internet would be a lot less fun
Internet allows freedom of expression that I don t have in the offline world
Internet enables me to belong and be accepted by my friends
Open to brands Brands are intrusive
Level of online purchasing (out of six) 2nd
Above average touchpoints
ONLINE OFFLINEBranded sites Offline media
Retailer sites Retail shop
Price comparison Offline WOM
Search engine
User review on blog
Review sites
Social network comments
H
HH
H
Focus on self-expression and brand affiliation. Belonging appeased through fan sites and dialog.
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Bringing Digital to Life
Digital Engagement
INFLUENTIALS
Activities
Digital activities
Number of friends
Digital Engagement
S/E EuropeMENAIndiaChinaDev Asia
Involvement
Consumption
Male Female
Younger Older
Employed Not employed
High Low
Digital Attitudes
Where?
Who?
Brand interaction
Frequency of internet accessOpen to brands Brands are
intrusive
Level of online purchasing (out of six) 1st
Above average touchpoints
ONLINE OFFLINEBranded sites Offline media
Retailer sites Retail shop
Price comparison Offline WOM
Search engine
User review on blog
Review sites
Social network comments
Internet allows me to stand out and be different
Internet allows freedom of expression that I don t have in the offline world
Internet enables me to belong and be accepted by my friends
In the online world, I can better express my feelings
I am concerned about data protection and privacy in the internet
H
HH
H
L
ALL
High engagement for these cross-over catalysts. Influence anywhere and they will affect elsewhere.
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Product development needs to be informed about the kinds of consumers that will benefit, where to find them, and how big the
opportunity is.
Effective online marketing requires a differentiated understanding of target groups for proper messaging, directly based on their
behavioral differences to select appropriate channels.
Why is this Segmentation Important?
Customer value to your business is driven by attitudes, needs, behaviors, and personal characteristics. Differentiated approaches
are a critical technology markets.
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Engaging with customers thru grassroots marketing
• Identify your most social customers
• Build strategies to drives sustainable word of
mouth
• Measuring the effectiveness
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Grassroots marketing Framework
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-50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
1 2 3 4 5 6 7 8
Soci
al M
edia
"Im
pre
ssio
ns"
Months
Buzz vs. Sustained WOM
BUZZ Sustained WOM
Planning conversations creates sustained word of mouth.
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Active listening tells you who
your social customers are
Identify who will be your social media audience.
What types of interactions do they want to have with you?
Understand their capacity for adopting social technologies on an ongoing basis?
Identify Assess Interact
Customer Engagement
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One out of five Twitter users (20%) say they have
followed a brand in order to interact with the company.
www.marketingprofs.com
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Business Objective
strategy tactic metrics
strategy
tactic metrics
tactic metrics
Link your organizations goals,
social strategy and key metrics.
What you want to achieve How you will achieve it
What you measure
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V-Tech Toys
V-Tech wanted to build a community of moms talking about how their kids learn - a community that provides insight about their customers and what they want
• Increased social media share of voice from 20% to 70% versus competitor
• Launched Facebook Page with 10,000 fans in first 48 hours
• Average of 1,000 Facebook interactions per week
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VTech created a brand presence with a clear and
relevant voice connecting with and activating the
online parenting community.
– Social Media Brand Voice: The VTech Mom – an
established influencer - connects with VTech’s target market
and creates a clear, authentic voice for the brand via Facebook
and Twitter.
– Conversation Management: 360 Digital Influence worked
with the VTech Mom to drive ongoing conversation and
community engagement across social media platforms, creating
a conceptual “front porch” on Facebook and Twitter.
– Social IRM: On behalf of VTech, 360 Digital Influence
developed relationships with over 300 influential parents in
social media to engage via Facebook, Twitter and blogs.
Exclusive opportunities around product launches and
promotions were offered to raise the volume of conversations,
and increase brand preference and purchase consideration.
Combining Facebook & Twitter:
Building Relationships With a Brand Voice
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Summary
• Plan for long term relationships not “buzz”
• Listening tells you who your most social customers are.
• Put social media in context of business goals to
communicate value
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Digital Mobility Moves
to the Forefront
Digital Mobility Driven by Dual forces of First Access and Last access
Digital Mobility as Unique Experience
Content will play a starring role in Digital Mobility
Digital Mobility is Reshaping Digital Expectations
Overview
Digital Mobility Driven by Dual forces of First Access and Last access
Digital Mobility as Unique Experience
Content will play a starring role in Digital Mobility
Digital Mobility is Reshaping Digital Expectations
Overview
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Forces of Digital Mobility: Developed vs. Developing World
% online users accessing internet from mobile in last four weeks
Mobile Internet is the last form of access adopted in developed markets and the first form of access in developing markets
Source: TNS Digital Life / S4: Internet access point in last 4 weeks for leisure / Base: All respondents, n=48804
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24%
79% 74%
90%83%
37%27%
86% 82%
96%87%
45%
Wireless Only Internet At Home
Broadband Connection (All
Households)
PC Subscription video
Cable Modem Connection (All
Households)
Wireless Households Have Smart Phone
Digital Mobility in the US
Service Penetration by Smartphone Use: Total US, 2Q10
Smartphone owners use more technology
Source: TNS Syndicated Market Tracking
Digital Mobility Driven by Dual forces of First Access and Last access
Digital Mobility as Unique Experience
Content will play a starring role in Digital Mobility
Digital Mobility is Reshaping Digital Expectations
Overview
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Where are the next drivers of mobile growth?
% doing activity
PC
Mobile
Source: TNS Digital Life / I1: Frequency of online activities/ Base: All respondents, n=48804
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There is room for Smartphones and Netbooks in the market due
to each device meeting different consumer requirements
36
Preferred devices for activities
Digital music
Calendar
Navigation
Transfer files
Bluetooth
Games
IM
Video calling
Internet access
Download content
Edit images/video
Banking
Browse internet
Download apps
Read eBooks
Online shopping
Edit documents
20
29
27
28
27
32
35
35
41
43
49
50
44
52
45
44
51
55
55
46
42
42
42
41
38
33
33
30
28
25
25
24
24
22
17
17
Advanced mobile phone Netbook
Source: TNS 2010 GTI / J6: Advanced mobile phone vs. Netbook / 2010 Bases: J6 All mobile users: 22360
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Harnessing the Uniqueness and Power of the Mobile Experience
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Mobile and PC Experiences will differ
Future increase in activities Greater increase on PC Greater increase on mobile
Source: TNS Digital Life / I6: Change in future activities use / Base: All respondents, n=48804
Digital Mobility Driven by Dual forces of First Access and Last access
Digital Mobility as Unique Experience
Content will play a starring role in Digital Mobility
Digital Mobility is Reshaping Digital Expectations
Overview
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Content providers have established a strong share of consumer
commitment in the category, especially in Developed Markets
58
55
46
70
47
61
53
51
36
53
37
35
38
26
44
37
27
25
35
34
5
10
16
4
8
2
21
24
29
13
Africa
M East
LatAm
Emerg Asia
China
India
Dev Asia
Europe
N America
Global
Handset manufacturers Network providers Content providers
%
Commitment share by category
Source: TNS 2010 GTI / Section E Conversion Model analysis / 2010 Bases: All mobile users
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Google/Gmail
Microsoft / MSN /
WindowsYahoo
YouTube
Wikipedia
Myspace.comBaiduAmazon.com
Mapquest Twitter
0%
10%
20%
FO Index
Bra
nd
Us
ag
e -
%
Future Opportunity Map – Top Mobile Content brands
Twitter has the strongest growth potential of top content brands
Source: TNS 2010 GTI
Weaker future-
influence
Stronger future
influence
Mature Opportunities Power Opportunities
Niche Opportunities Emergent Opportunities
Digital Mobility Driven by Dual forces of First Access and Last access
Digital Mobility as Unique Experience
Content will play a starring role in Digital Mobility
Digital Mobility is Reshaping Digital Expectations
Overview
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Moving from “Dialing In” to “Always On”
•
% accessing daily
Source: TNS Digital Life / S5: How often access / i10: Usage of offline media / Base: All respondents 48804
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The home dominates usage in mature markets…
•
PC at home PC at work / schoolPC at internet
café / friendsMobile
Share of time spent by access point
TNS 2010 Digital Life / S4: Internet access point in last 4 weeks for leisure / Base: All respondents 48804
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Digital Mobility Setting the New Standard
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The structure of digital varies regionally and will follow different
development paths
Digital Mobility Driven by Dual Forces of the first vs. last form of Internet
Research Finding Business Implication
Different use cases require a segmented experience
Digital Mobility as Unique Experience from Computer Focused Internet
The role of apps, mobile internet and location based services will only increase
Content Will Play a Starring Role in Digital Mobility
Alignment between handset , carrier, operating system and apps will define the
full user experience
Digital Mobility Reshapes Expectations for all Digital Experience
Digital Mobility drives expectations of access – always on vs. dialing in
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• Challenges with location based
platforms
• Checking in will take a back seat.
• Experiential branding will take on
new meaning.
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Many location platforms lack relevance.
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Move from anonymous “check in”
to tailored experience.
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Each location can have dozens of platforms to manage check in data
Location based content management
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Location analytics
beyond check in.
Action
Preference
Reach
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The check in will take a back seat.
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Mobile can augment traditional advertising and PR using GPS and cameras.
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Mobile rewards will take new forms besides the “Check in”.
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Brand experiences will be extended by blending physical space and digital content.
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Nike example
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Summary
Increase relevance of location based offers.
Extend existing rewards programs with new interactions.
Plan the experience beyond giving away coupons.
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What is Digital Business?
Services Commoditization 24/7 Business Intelligence
Social Interactivity
Digital Business is the act and process of exchanging business information digitally.
Complete Interconnectivity Customer Focused
Improving ROI
Where is Digital Business Today?
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What Does the Back Bone of Digital Business Look Like?
Business Services and Applications
Digital Business Enablers
Digital Frameworks
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What Are Decision Makers Saying?
Organization cannot afford to
make any investment which has
no tangible returns – CPG
IT should add value to bottom line,
moving to modular solutions is
great , but it needs to be scalable
and work – Bank
No budget for those frills and bells and
whistles. If it is not needed it is not
required. Mend if broken there is no
budget for oiling –Telco
Spending on applications that help us sell more to same customers, get new customers and improve efficiency is an easy sell - Technology
If it is not worth doing in-house it may be
closed forever, so I have to look out for
some third party solutions as pre-
emptive measure – Insurance
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Movements in the Market: Outsourcing Services by Industry
0
100
200
300
MHS
MNS
SRM
– Managed Hosted Services
– Managed Network Services
– Security Risk Management
Study indicates a high propensity to outsource services
Public administration leads the way
Source: TNS Telecom Syndicated Solutions (Business Wave, Business Scores)
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Typical IT Infrastructure Maturity Curve
X Awareness
X Trialing
X Deployment
X Expansion
X ConsolidationIn-house versusOutsourced/ Hosted
The Digital Business Path
Emerging markets may leap frog the whole maturity curve and go directly to new business models of hosted/ SaaS model
X
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What is the Cloud?
• Infrastructure as a Service
• Closest to the traditional data center
• An easy stepping stone – sort of one step beyond collocation
• Doesn’t necessarily optimize for Cloud
• Will IaaS eventually go away?...leaving just SaaS and PaaS?
IaaS
• Software as a Service
• Here it is just the “application”
• Also an easy stepping stone
• Is typically a “share everything” model – w/ limited customization
• However, will businesses “link” SaaS apps together?
SaaS
• Platform as a Service
• A rich stack is provided
• A harder step, because you really need to redo your applications from scratch in order to be truly cloud-optimized – to be highly concurrent and parallelized
PaaS
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The Migration of Digital Business
Apps
CurrentCapEx>OpExIT as a function
FutureOpEx>CapEx
IT as a component of business strategy
Private Cloud
Virtualized Data Center
Networked Hardware Platform SoftwareTools
SaaSPaaSIaaS
2003
Browser enabled Mostly PC
Windows Azure
Appliance
1
IT as a Service
Components of on-prem data center
Public Cloud
Browser-LESS Mostly MOBILE
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What Does Cloud Computing Mean to You?
Outsourced/ Third party solutions
Pay per use or pay as you go
No Hardware, no maintenance or
upgrades
Best of breed third party solutions on
third party platform
More for lessNo Big ticket costs
Public network/assets for
private business
Leveraging the Internet as application/ service
infrastructure
No long term commitment on
platform or versions
Service providers become system
integrators
Affordable plug and play model for complex apps
Service that bridges the IT gap between
Enterprises and SMBs
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Metrics of Measurement: Revenue Spend
Brand EquityCustomer Satisfaction
How Does Measurement Have to Change to Keep Up?
How do we measure the cloud?
IaaS SaaS PaaS
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What is the Business Technology Trajectory?
Customer Focus
Optimizing Hardware Footprint
Hosted versus Outsourced
ROI
Deployment Customer Satisfaction Brand Momentum
"You cannot control how this year's revenue compares to last year's revenue. You can't control it… you can control market share. You can control customer satisfaction.“
Steve Ballmer, Microsoft CEO
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Core B2B Business Social Media – Goals
• How can I enhance my brand – from
increasing awareness/visibility (starting point)
through to growing preference?
• How can I efficiently acquire new customers
(leads)?
• How can I increase customer loyalty and
retention?
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The importance of proprietary websites is being equaled,
if not surpassed, by the rise of content sharing sites,
mainstream acceptance of social media networks and the
advent of universal search.
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Brands need to be present via relevant and engaging content which is conceived and executed expressly for use in these disparate forums - including content created by the brands, inspired by the brands and organically grown from the community.
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To win b2b must have a strategy across owned,
earned and paid media.
OwnedChannel a brand controls
EarnedWord of mouth about brand
PaidBrand pays for placement
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The Playing Field
Paid
Owned
Earned &Owned
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In 2009/Q1 2010, approximately 66 customer and partner testimonial
videos were developed and distributed with the following results to date
* Statistic provided by YouTube
• 82,790 video views after 11 months (as of 3/31)
• 1,600 views per video are being generated from this campaign –Fewer than 20% of all videos on YouTube will reach over 500 views or less in their lifetime*
• Average engagement rate on IBM.com pages: 61%, or 27% above target
• Average cost per view: <$5.00 which is less than a paid search click
• Average click through to IBM.com pages: 0.70%, compared to 0.15-0.20% for banners
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Search Results
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Summary
• Universal search provides an ever expanding self space.
• Content needs to be developed for consumption across
platforms and devices.
• Content strategies need to be planned across own,
earned and paid media.
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