As given to the Customer Futures SA Executive Council. Thanks to all the SA bloggers for your help - either direct or by pillaging your blogs and slideshares.

1. How Digital Is Forcing A Change
In The Marketing Landscape
South Africa
05 11 08

2. • 4 Points On Ogilvy/Me
• 4 Marketplace Observations
• 4 Ways Customer’s Are Changing
• 4 Marketing Responses
• 4 Coping Strategies
Ogilvy –08 09 08– 2

3. Ogilvy –08 09 08– 3

4. Interactive @ Ogilvy - The largest digital network in the world
Ogilvy –08 09 08– 4

5. Digital Is A Specialism Within All Disciplines
PR ADVERTISING DIRECT RETAIL ACTIVATION
DIGITAL KNOWLEDGE
Ogilvy –08 09 08– 5

6. Update
Digital Thought Leadership & Innovation
Ogilvy –08 09 08– 6

7. Web 2.0
7/3/8

8. http://uk.youtube.com/watch?v=lBLZkdK1SDw
Ogilvy –08 09 08– 8

9. WEB 1.0
WEB 1.0 WEB 2.0
WEB 2.0
READ
READ WRITE
WRITE
Ogilvy –08 09 08– 9

10. 1. 4 Marketplace Observations
a. Traditional methods no longer working
a. What marketers are saying & doing,
c. Key reasons why,
d. Your audience is online

11. Ogilvy –08 09 08– 11

12. 1a. Traditional Methods Will Not Work
“The ad industry is passing through one
of the most disorienting periods in its
history.
This is due to a combination of long-term
changes, such as the growing diversity
of media, and new technologies, most
notably the internet.
Consumers have become better informed
than ever before, with the result that some
of the traditional methods of advertising
and marketing simply no longer
work.”
Ogilvy –08 09 08– 12

13. 1a. Traditional Methods Will Not Work
Ogilvy –08 09 08– 13

14. 1b. What are Marketers Saying?
Digital Is Fundamental
• “Consumers are less willing to
believe traditional advertising…
marketers need to use the channels
consumers use”
– Nestlé
• “Using new media has reminded us
that we can play a bigger role in
consumers lives”
– Unilever
• “ What we have to ask is what's
right for the customer and put them
at the centre”
– Technology Sector
• “There is no mass media anymore”
– P&G
How Companies Are Marketing Online McKinsey 2007
Ogilvy –08 09 08– 14

15. 1b. What are Advertisers Doing?
Digital Investment Growing
€29,0 bill.
Worldwide Online Spend growth
of c. 200% since 2001 €25,3 bill.
€18,4 bill.
€13,1 bill.
€10,6 bill. €10,3 bill.
€9,4 bill.
2001 2002 2003 2004 2005 2006 2007
GroupM Interaction Report 2008 Online Spends
Ogilvy –08 09 08– 15

16. 1b. What are Advertisers Doing?
Digital Growth Outpacing Traditional
Global market: % growth in each medium for 2008 (vs. 2007)
$46.0
Internet* Billion
24.1%
9.5%
6.1% 7.2%
3.5%
Outdoor 3.2%
Television 1.0%
Total
Newspapers
Media* Radio Mags
Source: ZenithOptimedia,
March, 2008; *eMarketer, 2008 (Internet and total media)
Ogilvy –08 09 08– 16

17. 1b. What are Advertisers Doing?
Digital Overtaking Traditional Ad Spend
Google’s Ad & Search revenue in the
UK Digital Ad Revenue will exceed
UK ($803 million Q1) will exceed ITV in
print in 2008
2008!
The value of South African online marketing will more than double from
US$91 million in 2007 to more than US$186 million in 2009
GroupM Interaction 2008
Ogilvy –08 09 08– 17

18. 1b. What are Advertisers Doing?
South African Marketplace Is Also Growing
GroupM Interaction Report 2008
Ogilvy –08 09 08– 18

19. 1b. What are Advertisers Doing?
South African Marketplace Is Also Growing
GroupM Interaction Report 2008
Ogilvy –08 09 08– 19

20. 1b. What are Advertisers Doing?
South African Marketplace Is Also Growing
GroupM Interaction Report 2008
Ogilvy –08 09 08– 20

21. Ogilvy –08 09 08– 21

22. 1c. Why:
Broadband & Mobility Are Changing The Game
43.15m Mobile Users @
A penetration rate of 98.5%
South Africa is expected to become one of the cheapest places for internet
connectivity in the future, with broadband speed hopefully in place by 2010, “so
don't bet against the internet, make it a part of your campaigns”, Google country
manager in South Africa, Stafford Masie
Ogilvy –08 09 08– 22

23. 1c. Why:
Online Advertising Drives Measurable Action
Cancer Research
UK Banner Campaign
Viewed Impressions
Ad 37 million CPM – £1.8
CTR - 0.08%
Arrived
29,949 CPC – £2.26
CTC - 3. 51%
Action
914 CPA – £74.20 (vs. £90 Target)
ARPU - £60.32 Cash/£58.3bD
£ Year 1
£17,953 Cash
ROI – 0.71 – Year 1
£42’630 DD
£ Over 5 Years
Donated £231, 103 ROI – 2.90 – Year 5
CRUK/Ogilvy Post Campaign Data 2007
Ogilvy –08 09 08– 23

24. 1c. Why:
Online Advertising Builds Brands
100 Control
5.9%
Exposed
80.3
75.8
80
9.0%
5.9%
58.1
Percent
60 33.7% 53.3
47.5 50.3
107% 44.4
40 33.2 33.2
16
20
0
Brand Awareness Ad Recall Message Brand Purchase Intent
Association Favourability
Source: Dynamic Logic MarketNorms-EU-FMCG, data through June
30, 2004; N=33 campaigns, n=25,273 respondents
Ogilvy –08 09 08– 24

25. 1c. Why:
Digital Fits In All Areas of The Purchase Cycle
Ogilvy –08 09 08– 25

26. 1c. Why:
“The Internet is the Viagra of big business.” Jack Welch
American Express Q2 Financial Presentation
Ogilvy –08 09 08– 26

27. 1d. Why:
Your Audience Is Online
GroupM Interaction Report 2008
Ogilvy –08 09 08– 27

28. Ogilvy –08 09 08– 28

29. Ogilvy –08 09 08– 29

30. 1d. Why:
Your Audience Behaving In The Same Way Online
GroupM Interaction Report 2008
Ogilvy –08 09 08– 30

31. SA Online
• 16-24 year olds
– Dating, gaming, chatting online, and downloading music
– About 50% of all online gaming, dating, chatting and music
downloading is done by the 16 - 24-year-olds.
– Higher than average rate of online radio listening, well above any
other age group.
– Youngsters also have well below-average usage of email - only half
go online to send email.
– Slightly lower than average scores for reading a magazine or
newspaper online.”
– More serious activities
AMPS 2007B
Ogilvy –08 09 08– 31

32. SA Online
• 35 - 49-year-olds
– The great online bankers and shoppers. Just over 42% of online
banking is done by this group, while 48% of online shoppers fall
into this age bracket.
– The 35 - 49 bracket likes working online with money, with online
share-trading and gambling featuring alongside its banking
activities.
– Over 46% of online share trading and 34% of gambling is done by
this group.
– In terms of communication, over one-third of all emailers are in this
age group, and instant messaging is also big - 36% of all IM is
done by this group.
– There is below-average interest in gaming, dating (although 25%
of online dating is done by this group), chatting and music
downloads.
AMPS 2007B
Ogilvy –08 09 08– 32

33. SA Online
• 50+ age group.
– Only 6% of those aged over 50 access the Internet, compared to
one in 10 of those younger than 50.
– “We have found with new mobile and digital technology, that
people over 50 who are using it are doing so because their
grandchildren are forcing them to. The younger generation is
pushing the technology up the generations, which is a worldwide
trend. It's one step on from the children teaching the parents how
to set up the VCR.”
– This group uses the Internet predominantly for online banking, but
unlike the 35 - 49s, online shopping is a less important activity.
Only 13.2% of online shopping is being done by this group, similar
to the low 14.8% of the 16 - 24s.
– The 50+ age bracket has very little interest in the more social side
of the net, with only tiny amounts of gaming, dating, chatting,
downloading music, and listening to the radio being picked up.
AMPS 2007B
Ogilvy –08 09 08– 33

34. 2. 4 Ways The Audience Is Changing

35. Consumer 1.0
Consumer 1.0 Consumer 2.0
Consumer 2.0
SURF
SURF CREATE
CREATE
BROWE
BROWE COMMUNITY
COMMUNITY
CONSUME
CONSUME CHALLENGE
CHALLENGE
RECEIVE
RECEIVE CONTROL
CONTROL
I PASSIVELY CONSUME WE ACTIVELY PARTICIPATE
Ogilvy –08 09 08– 35

36. 2a. Create:
The Rise of the ProAm
Food
Big Business
South African
Youtube Postings
Micro Business
Marketing Advertising
Ogilvy –08 09 08– 36

37. 2b. Community
The Power Connections
In the top 5 developed counties, 55% of members of social
networking sites say their online communities are as
important as their office ones
South African
Business Social Network
South African Companies’
Facebook Groups
Ogilvy –08 09 08– 37

38. 2c. Community:
People Trust Each Other
African Crowdsourced
Mobile Technology
South African Based
Ideas Marketplace
South African digg
Advertising
Marketplace
26% of Europeans share their thoughts on forums
EIAA 07
Ogilvy –08 09 08– 38

39. 2c. Collaborate:
People Trust Each Other
Blogpulse Trends Facebook Lexicon - BOE
Google Trends - visy
Ogilvy –08 09 08– 39

40. 2d. Challenge:
Enough Is Enough
Ogilvy –08 09 08– 40

41. 2e. Control:
“My Media & Me-Messaging”
39% of consumers claim they avoid advertising as
much as possible
Adweek survey, 2007
18% of consumers say they dislike all forms of advertising.
DoubleClick 2007
Ogilvy –08 09 08– 41

42. African Web 2.0 Companies
Ogilvy –08 09 08– 42

43. Vodacom’s
The Grid
POCit
Mobile Payment
Ogilvy –08 09 08– 43

44. State Of Web 2.0 In South Africa
Ogilvy –08 09 08– 44

45. 3. 4 Shifts In Marketing Required
a) BE SOCIAL
b) BE USEFUL
c) BE RELEVANT
d) BE INTEGRATED

46. 3. Old School Advertising…
BRAND MESSAGE
AUDIENCE
Ogilvy –08 09 08– 46

47. 3 Along Came The Internet…
BRAND CONVERSATION
CONSUMER
Ogilvy –08 09 08– 47

48. 3 Then Came Web 2.0
MEMBER MEMBER
COMPANY BRAND
MEMBER
MEMBER MEMBER
Ogilvy –08 09 08– 48

49. 3 Turning The Model Upside Down
Ogilvy –08 09 08– 49

50. 3 Marketing 2.0
Advertising 1.0 Advertising 2.0
PASSIVE BE SOCIAL
INTERRUPTION BE USEFUL
SIGNPOSTS BE RELEVANT
INDIVIDUAL CHANNELS BE INTEGRATED
BEING IN CONTROL LETTING GO
Ogilvy –08 09 08– 50

51. 3a. Be Social

52. 3a. Be Social - Listen – People Are Talking About You Online
Ogilvy –08 09 08– 52

53. 3a. Be Social
Listen – People Are Talking About You Online
BT Tradespace
Influencer Audit 2008
Lipton White Team
Influencer Stategy 2008
BrandEye
Online Reputation Tool
Ogilvy –08 09 08– 53

54. 3a. Be Social
Converse - Choose When To Talk Back
Dell Idea Storm
Starwood – Lurker
Customer Service Outreach
Nedbank Heroes
Facebook Group
Ogilvy –08 09 08– 54

55. 3a. Be Social
Connect – Allow Customers To Talk With Each Other
Cisco C-Level
Mastercard
Community
Priceless
Community
Stormhoek
Geek Dinners
OgilvyBrainz
Staff Community
Ogilvy –08 09 08– 55

56. 3a. Be Social
Involve Them – Co-create
Suave In The Motherhood
51% lift in unaided brand awareness
Comfort and 27% lift in purchase intent.
Do Da Moves
Addidas – The Rook
5 Million views
240,000 players
Each player interacted 20 minutes
Ogilvy –08 09 08– 56

57. 3a. Be Social
Involve Them – Co-create
Doritos – Crash The Superbowl
1.3 Billion page impressions ($35M)
1M member online community
12% sales Spike in Jan 07
20 National print stories & 88 broadcast mentions
#4 most liked Superbowl ad
Golden Lion in Cannes
Breadline Africa
Ogilvy –08 09 08– 57

58. 3b. Be Useful

59. 3b. Be Useful
Inform – Don’t Just Tell, Show
Guinness - Mobile 7s Guide
2,000 visitors to the site
1,000 downloads of the application
Ogilvy –08 09 08– 59

60. 3b. Be Useful
Inform – Don’t Just Tell, Show
IBM & The Times MBA Podcasts
94,791 downloads of the MBA podcasts
6,494 downloads of IBM whitepapers
4,314 respondents for IBM brand study
Top 10 download for promotion
Top business download for 4 months
Ogilvy –08 09 08– 60

61. 3b. Be Useful
Entertain
Hellman's & Yahoo
In Search Of Real Food
+7.6% YTD sales
growth
Lift in perceptions of
“healthy”
ROI of 1:2
“Real Food” Yahoo
group 5,000+ members
South Africa Tourism
Google Earth
Ogilvy –08 09 08– 61

62. 3b. Be Useful
Content Creation
The Grid American Express Travelcast
Mobile Documentary Series Creation of Travel Guides
http://uk.youtube.com/watch?v=ud0Xh_MhLJA
Europe
IBM & CNBC
Business of Innovation
IBM Films beat TV ad rolling
averages, by more than 63%
Interest in IBM Products +100% in US
Meetings with reps +400% in Europe
Ogilvy –08 09 08– 62

63. 3c. Be Relevant

64. 3c. Target
It is NOT Always About the Pretty Pictures
Personalize
d Content
Who you speak to is 50% more
important than what, how and
when combined
Targeting/Lists Offer
60% 20%
Dynamic
Creative Content
Timing 15%
5%
Ogilvy –08 09 08– 64

65. 3c. Target
Behavioural-Based Targeting
Month
0 1 2 3 4 5 6
Purchase Re -Purchase
Welcome
New User Advanced Tips and Trick
Upgrade
Ogilvy –08 09 08– 65

66. 3c. Target
Consider The Subject Line Paradox – BT Case
Enjoy 4 for 1 with BT Fusion Introducing the new WiFi mobiles
mobiles from BT Fusion
Emails Delivered: 10,000 Emails Delivered: 10,000
Open Rate: 25% Open Rate: 20%
Click Through Rate: 5% Click Through Rate: 7%
Clicks: 500 Clicks: 700
Clicks per View 20% Clicks per View 35%
Openers were 75% more likely to
click
Ogilvy –08 09 08– 66

67. 3c. Be Relevant
Distribute - Go To Your Audience
Johnny Walker
Concierge
Kraft
Mobile recipes
132K unique visitors interacted with
the program with average user
returning twice
10K unique users signed-up for alerts /
8% of unique visitors
BMW SA Facebook Page
Ogilvy –08 09 08– 67

68. 3c. Be Relevant
Authentic – Be Real & Honest
Lenovo
Voices Of The Olympics
Blogger/Twitter Content
Ogilvy –08 09 08– 68

69. 3c. Be Relevant
Personalise – Adapt to Your Audience Needs
The Times Widgets
EasyJet
25,000 Downloads in 3 months
Old Mutual – Desktop Widget
Ogilvy –08 09 08– 69

70. 3c. Be Relevant
“My Product” – Mass Customisation Of Products
Kleenex Photo Boxes
Nike ID Personal Trainers
M&Ms My Flavours
Jessica Simpson – Personalized Song
Ogilvy –08 09 08– 70

71. 3d. Integrate

72. 3d. Integrate
Multichannel
Ogilvy –08 09 08– 72

73. 3d. Integrate:
On & Offline
Virgin – Sarah Connor Chronicles
Terminate a Mate
UNIC – Mobile Response
Ogilvy –08 09 08– 73

74. 3d. Integrate;
A Single Unifying Thought
Ogilvy –08 09 08– 74

75. 4. 4 Strategies

76. 4a. Solutions – Innovation Marketing
Investment Marketing
Marketing Objective
McKinsey
Ogilvy –08 09 08– 76

77. 4b. Solutions - Focus On Customer Journey
EXample DHL Awareness Relevant Set Usage Main Provider Sole Provider
Purchase Funnel
Journey Stages Issue Recognition Scope Requirements Supplier Selection Business Routine Business Improvement
What are my requirements? How do I short-list Does order/claim/ report
I have a business issue in What are solutions, suppliers? management work well?
How can I perform better?
regard to shipping or services & prices? What criteria is decisive? Can I rely on a constant
Customer Insights outsourcing solutions. Who What are best practices Do I have all the information provider performance?
What are logistics trends?
What’s new? Am I still up to
can help me to solve this within my industry? I need? Are employees and
date?
problem? Which logistics partners Who should I ask for customers satisfied with the
meet my requirements? advice? running logistics solutions?
How can DHL support
Is DHL able to handle Does DHL fit my Why should I decide in Can I rely on the DHL
me to steadily optimize
Perception of DHL this issue? needs? favor of DHL? logistics services
my logistics
working?
processes?
Proof of capability; Clear USP; Good first experiences; Quality & service standards
Orientation & guidance;
Case studies; Affirmation from 3rd Quality & service standards are working;
High level information;
Variety of solutions; parties; are working; Impulses & new ideas;
Objective, up-to-date
What customers information from experts
Request of information and
objective support
Customer service & expert
availability
Exchange of information;
Exclusivity
Innovations;
Incentives
want
Expert Trusted Advisor Preferred Partner Trusted Partner Innovative Driver
Moments of Truth
Online contract, order, Online Seminars; Expert
Hotline/Call back; Price
Download Area; Videos & claim and report Forum; Exclusive
Calculator; Virtual
Brand Online Experience; Pod-Casts; Brochures & management; Forum; Customer Area: Offers,
Online Solutions SEO Handbooks, Best
Consultant; Request &
Chat; Community; Discounts & Services;
Comparison of offers;
practices; FAQ Literature references; Customer satisfaction
E-Mail Marketing
Newsletter online panels
Site welcome/ Concierge;
Examples Brand repositioning video
content; Strategic
Video case studies; White
papers
Customer service widget Logistics community: Mobile opp./Tracking widget
partnership with google
Ogilvy –08 09 08– 77

78. 4c. Permanent Beta
£100
£90
Optimisation
£80
Optimisation
£70
£60
Optimisation
£50
£40
£30
£20
Cost-per-Trial
£10
£0
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Ogilvy –08 09 08– 78

79. 4d. Solutions - Working Differently
Ogilvy –08 09 08– 79

80. Summary
Web 2.0
Web 2.0 Consumer 2.0
Consumer 2.0 Advertising 2.0
Advertising 2.0
CREATE
CREATE SOCIAL
SOCIAL
COMMUNITY
COMMUNITY USEFUL
USEFUL
CHALLENGE
CHALLENGE RELEVANT
RELEVANT
WRITE
WRITE CONTROL
CONTROL INTEGRATED
INTEGRATED
WE ACTIVELY PARTICIPATE LETTING GO
Customer Journey Innovation Marketing
Permanent Beta Work Process
Ogilvy –08 09 08– 80

81. A Final Thought
Over 70% of global marketing
executives believe online will
determine how major campaigns
are planned and executed by 2008
Ogilvy –08 09 08– 81

82. giles.rhysjones@ogilvy.com
http://interactivemarketingtrends.blogspot.com
www.twitter.com/gilesrhysjones
www.linkedin.com/gilesrhysjones
Thank You
http://www.mikestopforth.com/
http://www.webaddict.co.za/
http://www.vinnylingham.com/
http://www.gottaquirk.com/
http://blogs.thetimes.co.za/britten/
http://nicharalambous.com/
http://www.matthewbuckland.com/
http://www.collings.co.za/
http://www.justinharrison.com/
http://www.tylerreed.co.za/