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January / 24 / 2013



       Evolution from
       Traditional to Digital




Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
Thursday, January 24, 13
Thursday, January 24, 13
Methodology | Terralever Philosophy


                 • Utilize data-driven statistics, industry
                     trends and intuition to drive online
                     marketing results
                 • We strive for results that will make your
                     company reach its goals and increase
                                                               Science   Results   Art
                     revenue
                 • All campaigns are first tested and then
                     refined to achieve continued business
                     goals
                 • Development of solution-based online
                     content that is optimized per execution
                     (search, email, social, web, etc.)




Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
Definition of Advertising

               •    What is advertising?

                    •      Definition:
                           • A form of communication used to persuade an audience

                             (viewers, readers or listeners) to take some action with
                                                                                 Results
                             respect




Thursday, January 24, 13
History of Advertising

                                             1917 - the 4A’s
                                             was born
                                                                                                        1950
                                                                                                        1st Political
                                                                                                        TV Ad


                           1920
                           1st Radio Spot
                                                               1939 Government WWII Propaganda
                                                                                                 1957 Birth of the
                                                                                                 longest used jingle




                                            1925
                                            Birth of
                                            Consumerism



                                                                1941 1st TV Commercial
Thursday, January 24, 13
History of Advertising




                                            1980   1984

               1963
               David Ogilvy



                              1970
                                                          1994




                                     1981
                                                          1995

Thursday, January 24, 13
History of Advertising



               1995
                                              1997
                                              First Mobile Ad
                           1996



                                                                2001




                                                    2000



                                  1995-2000


                                                                  2002 - $7.53 Million TV Spot

Thursday, January 24, 13
History of Advertising




Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
Looking Inside: Traditional Advertising Agencies




Thursday, January 24, 13
Traditional Advertising Agency

                              Madison Avenue              The Pitch
                                                                       Art Director & Copy Writing Teams
         One Stop Shop
                                                   Creative Director
                                                                           Agency of Record
                           Big Budget    Broadcast
                                                       Super Bowl Spots
                                                                                   :30 TV Spots
                            Print                   Evolving into Integrated
                                        Glamor
                                                                          Mad Men-Esque
       Account Planning
                                                    “The” Idea
                               Public Relations                               Dog and Pony Show
                                                             Specialists
         Advertising Executive                                           Consumerism
                                                  Entertainment
Thursday, January 24, 13
Looking Inside: Digital Advertising Agencies




Thursday, January 24, 13
Digital Advertising Agency

                              Measurement & Optimization                 Solving Business Problems
                  Strategy
                                             Generalists & Specialists
                                                                                  Mobile & Tablet
                           Results Driven
                                                                 User Experience
                                            Anywhere USA
                 Focused
                                                                           Web Development
                                             Discovery Phase
                            Pay-Per-Click
                                                       Cutting Edge                Innovative

            Paid Media                Community Management
                                                                             Content Marketing
                     Search Engine Optimization          Social Media
Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
Shift in Budget from Traditional to Digital Marketing*
                                                                                    % of total


                                      Increased measurability and accountability


                                     Increased customer engagement


                                      Lower cost of customer engagement


                                      Better ability to glean customer insights                  Results

                                      Better customer conversion


                                      Lower cost per lead


                                       Lower cost of impression


                                       Real-time nature of customer data gathered


                                0                                     5                10         15       20


             *all data pulled from February 2012 eMarketer

Thursday, January 24, 13
Time Spend vs Ad Spending Share*

                                                      Time Spend Share        Ad Spending Share


                             TV


                   Internet


                           Radio


                      Mobile


          Newspapers


               Magazines

                                   0                   12.5              25             37.5      50
      *all data pulled from December 2011 eMarketer

Thursday, January 24, 13
US TV vs Online Ad Spending 2011-2014*

                                                      TV Ad Spend             Online Ad Spend


                            70




                           52.5




                            35




                           17.5




                             0
                                               2011                 2012   2013                 2014


       *all data pulled from January 2012 eMarketer

Thursday, January 24, 13
Local Online & Traditional Ad Spend Growth*

                                                     Online          Traditional         Total



                           2012



                           2013



                           2014



                           2015



                           2016


                              -3.75                  0        3.75                 7.5   11.25   15
        *all data pulled from March 2012 eMarketer

Thursday, January 24, 13
54% of responding companies are spending under 30% of their marketing
           budgets on digital channels and 31% are investing more than half of their
           marketing budgets in digital


           However, 71% of companies surveyed derive up to 50% of their total revenues
           from digital marketing spend.


           18% of client-side respondents indicate they derive more than 70% of their
           earnings from their investment in digital marketing.




Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
Case Study / 1




                           L’Oreal
                           Marketing Reinvented*




                             • $2.1 Billion ad spend in 2011
                             • 10% spend in digital
                             • Remove the traditional barriers allowing
                               Print and TV campaigns to dictate all
                               marketing
                             • Digital is the centerpiece for all marketers
                             • Conversion & ROI Focused
                             • Consumer Product Goods online campaigns
                               are seeing a 9% lift within three months vs
                               8% lift from TV campaigns over 12 months




Thursday, January 24, 13
Case Study / 1




                           L’Oreal
                           Marketing Reinvented*



                            • “In the old days, television was a shrine in
                              people’s homes. They gathered around and
                              watched. Advertisers had the power. Now,
                              with more channels and more choices,
                              people are more empowered. Video has a
                              strong place in our hearts. That box in the
                              living room is more than just live TV, it is on
                              our mobile phones and laptops, and people
                              are controlling how and when they watch.
                              TV is unboxed.”
                              • L’Oreal USA CMO Marc Speichert
                            • L’Oreal realized they have to be present
                              when the modern family is making
                              evaluations and buying decisions
                            • 50% of consumers research brands online
                              before they make a purchase


Thursday, January 24, 13
Case Study / 2




                                                                           Levi Strauss
                                                                           Global Go Forth Campaign




                                                                             • Appeal to aging Levi’s loyalists as well as
                                                                                 the young artistic and hip
                                                                             •   Market share has been hard in recent years
                                                                                 with lower-end ripoffs and “luxury” brands
              Featuring “The Laughing Heart,” a poem by Charles Bukowski     •   Women’s jeans sales went from 5.4% in
                                                                                 2005 to 4.4% in 2010
                                                                             •   Men’s jeans sales went from 8.4% in 2005
                                                                                 to 7% in 2010
                                                                             •   Youth stirring tagline “Now is our time”
                                                                             •   Launched “Go Forth” campaign with TV spot
                                                                                 (“short film”) in 19 language versions
                                                                                 • Including English, Japanese, French,
                                                                                   Spanish and German
                                                                             •   Used Walt Whitman’s poem “Pioneers! Oh
                                                                                 Pioneers!”


Thursday, January 24, 13
Case Study / 2




                           Levi Strauss
                           Global Go Forth Campaign


                            • Included digital-engagement program
                                featuring present-day pioneers from around
                                the world with smart use of Facebook
                            •   Seeded videos throughout web within hip
                                movement focused blogs, corporate FB and
                                YouTube pages
                            •   Initially the “Go Forth” campaign featured
                                online social challenge partnering with
                                Water.org
                            •   Facebook advertising and Sponsored Stories
                                will increase views among friends within 24
                                countries
                            •   Focus:
                                • Digital
                                • Digital & Event
                                • Content Creation
                            •   During campaign revenue went up 9% over
                                pervious year-long campaign

Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like | Case Studies
                           06 What Success Looks Like | Verticals
                           07 Resources / Q&A




Thursday, January 24, 13
What Success Looks Like | Integration




Thursday, January 24, 13
What Success Looks Like | Content

                                         Content Strategy ensures that all brand
                                         executions have a unified message across
                                         the platforms where consumers search for
                                         information.

                                         As Bryan Eisenberg states do the “sucking
                                         wind” checklist:
                                          •   Do you offer a clear and valuable message?
                                          •   Have you established trust and credibility?
                                          •   Have you answered all the main objectives?
                                          •   Have you addressed the emotional “ownership” of
                                              the sale?
                                          •   Have you substantiated your claims?
                                          •   Have you made the next steps clear?
                                          •   Could you have said the same thing in one-third of
                                              the words?


Thursday, January 24, 13
What Success Looks Like | Social Media




Thursday, January 24, 13
What Success Looks Like | Mobile

                                         Mobile is the future the only media that
                                         has a gab between time spent and budget
                                         allocation is mobile.

                                         Consumers are savvier than ever and want
                                         to connect with brands and businesses
                                         who have a proper mobile experience.



                                                       Time Spent

                                                       Budget Allocation

                  Responsive Design


Thursday, January 24, 13
What Success Looks Like | Measurement

                                                       Retarget




                           Paid Ads     Social Media



                                                                  Website       Mobile Site   Email   Social Media    WOM
                            Email           SEO




                                    ATTRACT                                 CONVERT                        RETAIN


                               Pre Visit Planning                       Pre Visit Planning               Post Visit

                                                                        Visit




Thursday, January 24, 13
What Success Looks Like | Measurement

           - Success Measurements and Key Performance
             Indicators (KPIs)
           - Technical Implementation
           - Testing and Optimization
           - Customized Reporting & Recommendations
           - Refine, Adjust, Test & Optimize




Thursday, January 24, 13
Agenda     01 Introductions
                           02 History of Advertising
                           03 Looking Inside: Advertising Agencies
                           04 Budgets
                           05 What Success Looks Like
                           06 Verticals To Get Behind NOW
                           07 Resources / Q&A




Thursday, January 24, 13
Resources & QA
           Everyday Blogs:
           •   Convince & Convert
               • http://www.convinceandconvert.com/

           •   Mashable
               • http://mashable.com/

           •   eMarketer
               • http://www.emarketer.com/

           •   Bryan Eisenberg
               • http://www.bryaneisenberg.com

           •   The Community for Education Leaders - Cisco’s Get Ideas
               • http://getideas.org/




           Books:
           •   Mark Schaefer Return on Influence: The Revolutionary Power of Klout,
               Social Scoring and Influence Marketing
           •   Malcolm Gladwell (series) Blink: The Power of Thinking Without Thinking
           •   Bryan & Jeffrey Eisenberg Call to Action: Secret Formulas to Improve
               Online Results

Thursday, January 24, 13
Thank You




                 Jenna Rutschman
                 Account Strategist

                 jennar@Terralever.com
                 480.334.7001




Thursday, January 24, 13

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The Evolution of Marketing

  • 1. January / 24 / 2013 Evolution from Traditional to Digital Thursday, January 24, 13
  • 2. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 3. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 6. Methodology | Terralever Philosophy • Utilize data-driven statistics, industry trends and intuition to drive online marketing results • We strive for results that will make your company reach its goals and increase Science Results Art revenue • All campaigns are first tested and then refined to achieve continued business goals • Development of solution-based online content that is optimized per execution (search, email, social, web, etc.) Thursday, January 24, 13
  • 7. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 8. Definition of Advertising • What is advertising? • Definition: • A form of communication used to persuade an audience (viewers, readers or listeners) to take some action with Results respect Thursday, January 24, 13
  • 9. History of Advertising 1917 - the 4A’s was born 1950 1st Political TV Ad 1920 1st Radio Spot 1939 Government WWII Propaganda 1957 Birth of the longest used jingle 1925 Birth of Consumerism 1941 1st TV Commercial Thursday, January 24, 13
  • 10. History of Advertising 1980 1984 1963 David Ogilvy 1970 1994 1981 1995 Thursday, January 24, 13
  • 11. History of Advertising 1995 1997 First Mobile Ad 1996 2001 2000 1995-2000 2002 - $7.53 Million TV Spot Thursday, January 24, 13
  • 13. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 14. Looking Inside: Traditional Advertising Agencies Thursday, January 24, 13
  • 15. Traditional Advertising Agency Madison Avenue The Pitch Art Director & Copy Writing Teams One Stop Shop Creative Director Agency of Record Big Budget Broadcast Super Bowl Spots :30 TV Spots Print Evolving into Integrated Glamor Mad Men-Esque Account Planning “The” Idea Public Relations Dog and Pony Show Specialists Advertising Executive Consumerism Entertainment Thursday, January 24, 13
  • 16. Looking Inside: Digital Advertising Agencies Thursday, January 24, 13
  • 17. Digital Advertising Agency Measurement & Optimization Solving Business Problems Strategy Generalists & Specialists Mobile & Tablet Results Driven User Experience Anywhere USA Focused Web Development Discovery Phase Pay-Per-Click Cutting Edge Innovative Paid Media Community Management Content Marketing Search Engine Optimization Social Media Thursday, January 24, 13
  • 18. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 19. Shift in Budget from Traditional to Digital Marketing* % of total Increased measurability and accountability Increased customer engagement Lower cost of customer engagement Better ability to glean customer insights Results Better customer conversion Lower cost per lead Lower cost of impression Real-time nature of customer data gathered 0 5 10 15 20 *all data pulled from February 2012 eMarketer Thursday, January 24, 13
  • 20. Time Spend vs Ad Spending Share* Time Spend Share Ad Spending Share TV Internet Radio Mobile Newspapers Magazines 0 12.5 25 37.5 50 *all data pulled from December 2011 eMarketer Thursday, January 24, 13
  • 21. US TV vs Online Ad Spending 2011-2014* TV Ad Spend Online Ad Spend 70 52.5 35 17.5 0 2011 2012 2013 2014 *all data pulled from January 2012 eMarketer Thursday, January 24, 13
  • 22. Local Online & Traditional Ad Spend Growth* Online Traditional Total 2012 2013 2014 2015 2016 -3.75 0 3.75 7.5 11.25 15 *all data pulled from March 2012 eMarketer Thursday, January 24, 13
  • 23. 54% of responding companies are spending under 30% of their marketing budgets on digital channels and 31% are investing more than half of their marketing budgets in digital However, 71% of companies surveyed derive up to 50% of their total revenues from digital marketing spend. 18% of client-side respondents indicate they derive more than 70% of their earnings from their investment in digital marketing. Thursday, January 24, 13
  • 24. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 25. Case Study / 1 L’Oreal Marketing Reinvented* • $2.1 Billion ad spend in 2011 • 10% spend in digital • Remove the traditional barriers allowing Print and TV campaigns to dictate all marketing • Digital is the centerpiece for all marketers • Conversion & ROI Focused • Consumer Product Goods online campaigns are seeing a 9% lift within three months vs 8% lift from TV campaigns over 12 months Thursday, January 24, 13
  • 26. Case Study / 1 L’Oreal Marketing Reinvented* • “In the old days, television was a shrine in people’s homes. They gathered around and watched. Advertisers had the power. Now, with more channels and more choices, people are more empowered. Video has a strong place in our hearts. That box in the living room is more than just live TV, it is on our mobile phones and laptops, and people are controlling how and when they watch. TV is unboxed.” • L’Oreal USA CMO Marc Speichert • L’Oreal realized they have to be present when the modern family is making evaluations and buying decisions • 50% of consumers research brands online before they make a purchase Thursday, January 24, 13
  • 27. Case Study / 2 Levi Strauss Global Go Forth Campaign • Appeal to aging Levi’s loyalists as well as the young artistic and hip • Market share has been hard in recent years with lower-end ripoffs and “luxury” brands Featuring “The Laughing Heart,” a poem by Charles Bukowski • Women’s jeans sales went from 5.4% in 2005 to 4.4% in 2010 • Men’s jeans sales went from 8.4% in 2005 to 7% in 2010 • Youth stirring tagline “Now is our time” • Launched “Go Forth” campaign with TV spot (“short film”) in 19 language versions • Including English, Japanese, French, Spanish and German • Used Walt Whitman’s poem “Pioneers! Oh Pioneers!” Thursday, January 24, 13
  • 28. Case Study / 2 Levi Strauss Global Go Forth Campaign • Included digital-engagement program featuring present-day pioneers from around the world with smart use of Facebook • Seeded videos throughout web within hip movement focused blogs, corporate FB and YouTube pages • Initially the “Go Forth” campaign featured online social challenge partnering with Water.org • Facebook advertising and Sponsored Stories will increase views among friends within 24 countries • Focus: • Digital • Digital & Event • Content Creation • During campaign revenue went up 9% over pervious year-long campaign Thursday, January 24, 13
  • 29. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like | Case Studies 06 What Success Looks Like | Verticals 07 Resources / Q&A Thursday, January 24, 13
  • 30. What Success Looks Like | Integration Thursday, January 24, 13
  • 31. What Success Looks Like | Content Content Strategy ensures that all brand executions have a unified message across the platforms where consumers search for information. As Bryan Eisenberg states do the “sucking wind” checklist: • Do you offer a clear and valuable message? • Have you established trust and credibility? • Have you answered all the main objectives? • Have you addressed the emotional “ownership” of the sale? • Have you substantiated your claims? • Have you made the next steps clear? • Could you have said the same thing in one-third of the words? Thursday, January 24, 13
  • 32. What Success Looks Like | Social Media Thursday, January 24, 13
  • 33. What Success Looks Like | Mobile Mobile is the future the only media that has a gab between time spent and budget allocation is mobile. Consumers are savvier than ever and want to connect with brands and businesses who have a proper mobile experience. Time Spent Budget Allocation Responsive Design Thursday, January 24, 13
  • 34. What Success Looks Like | Measurement Retarget Paid Ads Social Media Website Mobile Site Email Social Media WOM Email SEO ATTRACT CONVERT RETAIN Pre Visit Planning Pre Visit Planning Post Visit Visit Thursday, January 24, 13
  • 35. What Success Looks Like | Measurement - Success Measurements and Key Performance Indicators (KPIs) - Technical Implementation - Testing and Optimization - Customized Reporting & Recommendations - Refine, Adjust, Test & Optimize Thursday, January 24, 13
  • 36. Agenda 01 Introductions 02 History of Advertising 03 Looking Inside: Advertising Agencies 04 Budgets 05 What Success Looks Like 06 Verticals To Get Behind NOW 07 Resources / Q&A Thursday, January 24, 13
  • 37. Resources & QA Everyday Blogs: • Convince & Convert • http://www.convinceandconvert.com/ • Mashable • http://mashable.com/ • eMarketer • http://www.emarketer.com/ • Bryan Eisenberg • http://www.bryaneisenberg.com • The Community for Education Leaders - Cisco’s Get Ideas • http://getideas.org/ Books: • Mark Schaefer Return on Influence: The Revolutionary Power of Klout, Social Scoring and Influence Marketing • Malcolm Gladwell (series) Blink: The Power of Thinking Without Thinking • Bryan & Jeffrey Eisenberg Call to Action: Secret Formulas to Improve Online Results Thursday, January 24, 13
  • 38. Thank You Jenna Rutschman Account Strategist jennar@Terralever.com 480.334.7001 Thursday, January 24, 13