For over a decade, Website publishers have relied on an old advertising model: Publishers provided advertisers access to online viewers, and the more desirable those viewers, the more online publisher charged for banner impressions. Like the early days of television this model worked (for a while), but as advertising clutter increased and consumers began to see banners as noise click-through rates have dropped to an all time low.
Marketers are now shifting their focus from a one dimensional awareness approach to integrated marketing strategies that leverage the engagement cycle to move consumers from awareness to conversion.
Unlike the sales funnel. Engagement is better thought of as a cycle, a series of touchpoints designed to create engagement with a brand in order to drive a purchase, each time in a meaningful and valuable way to both brand and consumer.
In the world of interactive promotions the engagement cycle is driven by three primary stages: awareness, activation, and conversion (or purchase). Throughout the cycle, marketers must measure in order to add value throughout the cycle.
Online communities, which include both social networks and blogs, are now the fourth most popular online category visited by 67% of the global online population, according to new research by Nielsen Online.
The communities are growing twice as fast as any of the other four largest sectors—search, portals, PC software and e-mail.
“Social networking has become a fundamental part of the global online experience,” John Burbank, CEO of Nielsen Online, said in a release. “While two-thirds of the global online population already accesses member community sites, their vigorous adoption and the migration of time show no signs of slowing. Social networking will continue to alter not just the global online landscape, but the consumer experience at large.”
The report also found that Facebook, which is the world’s most popular social network, is visited monthly by three in every 10 people online across the nine markets in which Nielsen tracks social networking use. Continue Reading…
The computer industry has hit upon its Next Big Thing. It is called a phone.
95% of consumers carry their cell phone at retail, making mobile the next big platform for marketers. Now PC makers are trying to get in on the action.
Emboldened by Apple’s success with its iPhone, many PC makers and chip companies are charging into the mobile-phone business, promising new devices that can pack the horsepower of standard computers into palm-size packages. Continue Reading…
The emergence of digital media has created some very fundamental and important changes in the world of advertising. New digital technologies are creating a wide range of new possibilities for two-way communication and measurement. The power of promotions to cut through clutter and capture consumer interest and attention is also beginning to blur the line between advertising and promotional marketing strategies. These changes are redefining the rules for advertising in the digital age. Continue Reading…
President Obama used it to get Elected. Dell is recruiting new hires from it. Microsoft’s new operating system borrows from it. Millions of new users are joining every week. So what’s next for Facebook?
Peter Lichtenstein, 57, recently became an official member of the Facebook army, 175 million strong and, Facebook says, growing at the astounding rate of about five million new users a week, making it a rare bright spot in a dismal economy. If Facebook were a country, it would have a population nearly as large as Brazil’s. It even edges out the U.S. television audience for Super Bowl XLIII, which drew a record-setting 152 million eyeballs.
But these days the folks fervently updating their Facebook pages aren’t just tech-savvy kids: The college and post-college crowd the site originally aimed to serve (18- to 24-year-olds) now makes up less than a quarter of users. The newest members - the ones behind Facebook’s accelerating growth rate - are more, ahem, mature types like Lichtenstein, who never thought they’d have the time or inclination to overshare on the web. It’s just that Facebook has finally started to make their busy lives a little more productive - and a lot more fun. READ MORE…
As the economy continues to tumble, Marketers are looking for ways to squeeze more value from their budgets. Here’s what smart marketers should know:
1) Brand awareness ads lose their effectiveness. Advertising (or disruptive messaging) is mostly about generating awareness and reinforcing brands. In a recession, ordinary consumers aren’t as willing to spend. Sure, we’ll be aware of the product, but that doesn’t make much difference when you’re not spending. Advertising is also expensive and is a lot easier to cut than headcount.
2) Promotions are about engagement not awareness. Sweepstakes, Promotions & Contests are about rewarding consumers for their attention. You may resist advertising if your finances are tight, but if you have a chance to win cash or a great prize in a down economy it is more likely to get your attention.
3) Social media creates promotion buzz. Consumers are more likely to tell their friends about a great promotion than a brand. Blogs, word of mouth, social networks… are all about people connecting with other people. You may resist advertising if your finances are tight, but if your bud tells you that you could win a new car or tickets to the World Series, that’s more persuasive than advertising. Basically, in a recession, engagement is more important than awareness — and that’s where advertising flops and promotions succeed.
4) It’s less expensive. An interactive promotion campaign is typically $20K to $150K — a lot cheaper than a significant sized ad campaign. Recently we have seen significant growth in promotions paired with social media.
5) It’s measurable. Interactive promotions are highly measurable, if it generates leads, or conversions, or buzz, or something useful — then you can prove it’s working. But you need to have a plan before you get started.
As the economy continues to spiral out of control, Marketers are rethinking their marketing & advertising strategies and looking to do more with less. Here’s what you can expect in the year ahead.
Measurement becomes king
As brands wise up and the economy tightens, marketers will flow dollars to channels that can be measured and provide a clear ROI.
Promotions overtake interactive brand marketing Offline 60% of marketing dollars are promotional rather than brand focused. however, online only 22% of dollars are promotional. and on social networks the share is even lower. in 2009 expect to see more contests, sweepstakes, and sampling programs run through social networks (and expect them to be heavily measured)
Social spreads everywhere
Facebook connect, google friend connect, and myspaceID will bring social interactions to the rest of the web. Savvy marketers will begin to integrate social network features into their online brand presence.
Digital becomes the core
In 2009 brands will engage audiences with integrated marketing that places digital at the core of the marketing mix rather than an afterthought. Digital campaigns move beyond display media to other interactive platforms - including social networks and mobile platforms.
Mobile goes mainstream
New technologies and innovations driven by the success of the iPhone and new hide speed mobile networks will finally move mobile marketing beyond SMS and into the spotlight.
VitaminWater revive is asking consumers to share their game winning moment, or re-enact a well-known game winning moment from NCAA Men’s March Madness history and submit it for a chance to win a trip to the 2009 NCAA Men’s Final Four in Detroit!
Through March 21, consumers 18 or over can enter, the VitaminWater, “Revive to Survive Video Contest” by submitting a 2 minute video re-enactment of their favorite game winning moment.
Judges will look for entertainment value, creative execution, overall quality of video to determine the winning video. Grand prize is a trip for the winner and a guest to attend the 2009 NCAA Men’s Final Four including the semifinals & Championship Games in Detroit, MI between 4/3/09 and 4/7/09.
TrueNorth Snacks is a new brand of 100% natural nut snacks made by Frito-Lay. They are currently sponsoring a consumer-generated-content contest which will result in them airing the most extraordinary “True North” story in a 60-second commercial directed by Helen Hunt during the Oscars. Consumers are invited to submit their own “True North” story in 300 words or less which they defined as something amazing, something that makes the world a better or more interesting place or simply a passion that inspires you to get up in the morning because you know it’s your purpose on earth.
There are currently 5 extraordinary True North stories featured as finalists here on their website that you can check out. One of these stories will be the winner and have their story turned into a commercial that will run during the Oscars. The winner will also receive $25,000 in cash.
For the second year in a row Godiva has brought back its Valentine’s Day promotion. Last year’s promotion was their biggest ever, providing the chance for a chocolate lover to win the ultimate chocolate fantasy!
The Grand Prize Winner of the Godiva 2nd Annual Valentine’s Day Promotion will receive a deluxe trip for two to New York City and stay in the exclusive Godiva Decadence Suite in NYC’s Bryant Park Hotel. This year’s experience year has been designed by Jonathan Adler. The suite boasts chocolate furnishings and accessories inspired by Adler’s signature pieces and Brooke Shields was on hand to unveil the suite.
To play the Godiva Valentine’s Day Game consumers can obtain a game piece which are included in specially marked Valentine’s Day gift boxes. 100 first prizes which consist of one year of Godiva products will also be awarded as 12 monthly shipments along with an item from the Jonathan Adler collection. Project Support Team (our sister agency) managed the promotion for Godiva again this year.