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2 So what s this session all about? It provides an introduction to digital marketing it s benefits and how organisations can use it to effectively support it s business operations It considers the main differences between traditional and digital media It looks at the current developments in the world of digital It considers digital hardware and devices and how organisations can use these to their benefit Digital changes rapidly and especially with technology applications. The best resources available to support your learning for this session will be found 2

3 online and provided by professional organisations or individuals. We ve provided you with links to relevant articles as well as videos, webinars and podcasts, we would encourage you to further reading around these topics online and via the Digital Knowledge Bank. We d also recommend you read Chapter 1 in the Ryan & Jones recommended text and/or chapter 1 in the Chaffey & Smith recommended Text. 2

4 This definition reminds us that whether it is traditional or digital marketing, the focus should always be on the customer and creating value for them. 3

5 It s important to understand the differences between some of the key terms used within digital marketing and this course. We also talk about traditional or conventional media in this session, which refers to traditional forms of offline media, such as TV, Radio and outdoor advertising. 4

6 PWC and IAB conduct an annual Adspend report and these figures have been taken from the most recent report (covering all of 2013). Read the research highlights here: Here is an interesting infographic that charts the history of the internet: 5

7 There is a large variety of media that can be used to convey messages to target audiences and these are usually categorised into six main classes: Broadcast TV, Radio Print Newspapers, Magazines Outdoor Billboards, Transit (buses, trains) In-store Point-of purchase, Packaging Other media Exhibitions, Cinema Digital media Search Marketing, Display etc. This slide considers the key differences and capabilities between traditional media and digital media. Conventional media promotes one message to many consumers, whereas digital media offers the opportunity for organisations to communicate on a one-to-one basis (for example, through social media). Furthermore, digital media enables dialogue between an organisation and it s customers through it s interactive nature. Digital media enables personalisation of communications and content through the use of technology (for example, personalisation of search results or newsletters) Traditionally, advertisers tend to emphasise the emotional rather than informational aspect, particularly with low-involvement products/services. While branding is becoming 6

8 increasingly more important in the digital space; the focus is often more on information provision. 6

9 Digital marketing communications differs significantly from conventional marketing communications because digital media enables new forms of interactions. The 6 I s of the digital marketing mix is a useful way of understanding the differences between digital media and conventional media. Notice the terms disintermediation and reintermediation on this slide. These can be defined as: Disintermediation is the removal of intermediaries such as distributors or brokers that formally linked a company to its customers (Chaffey & Ellis-Chadwick, 2012). Digital technologies have provided businesses new opportunities to reach their customer directly. A good example of disintermediation is the increase in consumers who book their flights directly with the airline, rather than choosing to book with a travel agent. Reintermediation is the creation of new intermediaries between customers and suppliers providing services such as a supplier search and product evaluation (Chaffey & Ellis-Chadwick, 2012). The internet has given rise to new intermediaries for example, online travel agents (like Expedia) or comparison engines. 7

10 We can see from the previous statistics in this session that organisations are continuing to increase their spend in digital marketing. This slide suggests some of the reasons why digital media is an attractive proposition to reach customers and prospects. 8

11 This slide focuses more on the benefits of digital marketing as a whole, rather than simply digital media. The 5S framework was developed by Chaffey and Smith (2008, cited in Chaffey and Ellis-Chadwick, 2012) and can be used to assist in setting goals for digital marketing activity. It is also a useful framework for identifying the benefits of digital marketing too. 9

12 An organisation s marketing environment will influence its performance and it is critical that a business constantly monitors its changing environment and understands the likely impact of any changes. Digital technologies have accelerated changes in the marketing environment and we have considered some of the key challenges now facing marketers on this slide. 10

13 This list is not exhaustive, but highlights some of the key developments in digital marketing that will be having an impact on businesses in the next 12 months. We will now look at these in greater detail over the next few slides. 11

14 Watch this video on Crowdsourcing first as it provides an excellent overview: As the video suggests, Crowdsourcing is about using the power of the crowd to accomplish tasks that were once (or often are) performed by employees within organisations. Examples in the past have included organisations asking the crowd to assist with building their communications campaigns or redesigning their logos. Wikipedia is one of the best examples of rowdsourcing using the crowd to build an online encyclopedia You can read this article here: which gives some good examples of how businesses have been using crowdsourcing to good effect. Perhaps the most famous example of when Crowdsourcing didn t work was when Gap tried to use the crowd to develop a new logo. You can see the results from this article from 2010 from the Guardian: This article from Wired thinks about the future of crowdsourcing: 12

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16 Co-creation is similar to Crowdsourcing, but with one important difference there is no open call, instead co-creation is undertaken with a smaller group of individuals who have the required skills to assist in the project. This article provides a great introduction to co-creation While you can see examples of how organisations are using co-creation here: 13

17 Google Chief Executive Eric Schmidt suggested that the world creates five exabytes of data every two days which is roughly the same amount created between the dawn of civilisation and Big data is a term used to describe this exponential growth, availability and use of information. Read this article from the BBC that introduces Big Data: and another one from Smart Insights too, which is useful: This is a great video from Ogvily that provides a view of how big data can work in everyday lives with their A Day in Big Data Meanwhile velocity (speed at which data is produced and needs to be processed) is driving an increased business to deal with huge amounts of data in near real time. 14

18 This slide considers how big data can benefit businesses and marketers. You can also read these useful articles to supplement your reading on Big Data: Five ways marketing directors can use big data: Big Data Marketers dream or nightmare? : The Year Big Data Gets Real 15

19 The Internet of Things works mainly through radio frequency identification technology known as RFID. RFID chips use radio waves to send information to RFID readers that can be connected to the internet. The Internet of Things also uses smartphones and sensors embedded in devices that allow machines to talk to each other. You can watch a quick 30 second definition of The Internet of Things here: 16

20 A good example of the Internet of things is British Gas Hive mobile app, that enables customers to control their heating while they are out of the house through their mobile device. 17

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22 Location-based marketing (LBM) allows marketers to connect with customers with an offer than meets their immediate goals or needs in a meaningful and engaging way, in a place that is relevant to them, and at a time when they are ready to buy. Smartinsights.com 19

23 Changing consumer behaviour is driving growth of LBM: Increase in smartphone users Mobile data rates are cheaper and generous as well as increase availability of Wi-Fi in public areas. Increase use of social networks to check in Increase in using mobiles for local searches Read a marketer s guide to location-based strategies here: This is an interesting infographic on the future of proxmity and micro-location marketing Watch this video on ibeacons and the next generation of Location-based Marketing: 20

24 Augmented reality (AR) is technology that allows for a digitally enhanced view of the real world, connecting consumers with additional and more meaningful content. With the camera and sensors in a smartphone or tablet, AR adds layers of digital information videos, photos, sounds directly on top of items in the world around us, such as product packaging, posters, exploring cities or museums etc. Blippar is a popular AR browser. Watch this video which shows Blippar in action and how organisations are using AR as part of integrated campaigns: This article underlines why AR is an important development for marketers: 21

25 There is a range of digital hardware that consumers now use to access the internet through and present new opportunities for businesses too. Over the next few slides, we will look at some of the key devices in turn. 22

26 Kiosks offer the opportunity for an additional digital customer touch point in store or as part of the buying experience. They are a part of a wider range of technologies that are being increasingly used by retailers to enhance the in-store experience. Retail stores are facing an increasing challenge from consumers choosing to purchase goods and services online. The role of the retail store is certainly changing, with many using stores to see and try items, before then going away and purchasing online (a practice often called showrooming ). You can read how retailers are embracing technology to assist in the multichannel environment in these two interesting articles:

27 RAJAR stands for Radio Joint Audience Research and is the official body in charge of measuring radio audiences in the UK. It is jointly owned by the BBC and the RadioCentre on behalf of the commercial sector. Radio is dominated by non-commercial stations (BBC), Digital radio provides additional stations and opportunities for businesses to advertise. Radio and online can combine push and pull to reach out and engage consumers and fulfil brand interactions Benefits of using radio and online media together: Future growth: online and radio are the only media predicted to grow audiences in the future Size of opportunity: Two-thirds of web users have surfed the internet and listened to the radio at the same time Online and radio provide complementary rational and emotional benefits: online is perceived as a channel for assisting people in finding what they want, when they want, whereas radio is perceived as offering the human touch Radio and online are a social connectivity media: both provide 24

28 connection with people s social communities but on different levels 24

29 Technology is changing the way people watch TV as well as the opportunities for businesses to reach audiences too. The development of multi-screening and the clickability of new Video on Demand advertising formats have enabled TV to become more of a real-time response medium. You can read more about Video On Demand (VOD) here: This video looks at TV and technology in more detail it is quite long, but you can skip on to different sections. This Video looks at the affect Netflix (and similar services) have had on TV: ABW3UVzhk~,_mprKaNkNOF5pCZoHEom- MUJZp0ahUIo&bctid=

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31 There is a lot or research available around the consumer use of tablet devices. Here are some interesting articles that underline some of the key current trends around tablet devices:

32 Mobile internet usage over took fixed line or desktop internet usage at the start of 2014, which is driving many organisation s focus more on to mobile marketing and developing a success mobile strategy. The Mobile Marketing Association (2014) defines mobile marketing as: Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network. The term Mobile marketing encompasses a wide range of activities including mobile optimised sites, mobile lead generation, mobile search and PPC, mobile advertising, SMS messages, building and marketing mobile apps, location-based services and QR codes. Mobile marketing data and statistics are being constantly updated, you can access the most up to date and relevant data here: Download a free guide to mobile marketing from Dave Chaffey here: 28

33 Mobile Marketing Magazine (UK Publication) provides interesting news and analysis about all things mobile and is worth regularly reading to see how organisation are successfully using mobile as part of their digital marketing efforts: 28

34 Two key terms that you need to be aware of as part of any discussion around second screening are media meshing and media stacking. Whilst media meshing is the concurrent use of digital channels in relation to what you are watching on television, media stacking is the use of digital channels for a different purpose in conjunction with TV viewing Second screening can help remove some of the limitations that is found with traditional media, which we considered towards to start of this session for example, making the experience more interactive, encouraging dialogue and also encouraging users who are passive to be more active. Here are some further articles here that provide some interesting stats on second screening as well as the opportunities for brands too

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36 Sales of mobile devices are still growing but are starting to level off. Older gadgets like PCs and laptops are on the decline; however, with 90 million wearable tech devices expected to be shipped in 2014 (CNN.com, 2014), they are expected to be the next big thing. Most wearables are not meant to replace smartphones. Instead, they work as satellite devices that gather useful data or relay notifications from a primary mobile device. If they have screens, they can display simplified versions of mobile apps. Wearable offer marketers much more granular information about consumers which can then be used to make content or advertising more personalised to the wearer. You can read more about wearables and how marketers may take advantage of them in these articles:

37 Some brands have had great success with their real time marketing efforts, with thousands of consumers sharing their content around key events such as the Oscars, Royal events, World Cup etc. See some examples here: 31

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