Shanghai Jiao Tong University

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Online Advertising. Website. Retail/Outlet Stores. Catalog/Mail Order ... Website. Consumers exposed to integrated marketing messages in multiple channels which ...

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Shanghai Jiao Tong University

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Slide 1:Shanghai Jiao Tong University EMBA class

By Ralf Hirt, Managing Director, Asia Pacific Tony Cheung, Regional Director, Greater China Shanghai, December 3 & 4, 2004 We Make Marketing Work Better

Slide 2:Agenda

Friday Big Picture – e-business and Society in China - Fundamentals New marketing and Communication Infrastructures Online as part of integrated marketing Saturday Campaign Planning & Measurement Market Trends and Benchmarks Case Study Hands-On Session

Slide 3:Emarketer Study on China

Slide 4:Emarketer Study on China

Slide 5:Emarketer Study on China

Slide 6:Emarketer Study on China

Slide 7:Emarketer Study on China

Slide 8:Impact and Opportunities – New Marketing and Communication Infrastructures

Branding - Multi-Nationals build brand awareness in China Chinese companies start building own brands Chinese companies go global with their brands Chinese companies acquire companies and brands abroad

Slide 9:Impact and Opportunities – New Marketing and Communication Infrastructures

2. Pan Asian – Outbound – Inbound Building markets Selling Sourcing Sharing

Slide 10:Impact and Opportunities – New Marketing and Communication Infrastructures

3. Facilitator for SME - Opportunity vs. Risk Window to the markets 4. Marketing and Communication Backbone Gravity and Reach 5. Education in a Knowledge Based Economy

Online as Part of Integrated Marketing

Slide 12:DoubleClick Inc.

1500 employees, growing HQ in New York Nasdaq: DCLK Market Cap: approx. 1 billion USD In China since 2000: Beijing; Shanghai, Guangzhou In Hong Kong since 1998 Founded in 1996 Ads served per day: 4 billion plus Emails sent per quarter: 2 billion plus

What DoubleClick Does? Enterprise Marketing Management MRM Workflow Management Campaign Management Cross – Media Planning MRM MediaVisor Brand and DR Advertising DFA, DART Search, DART Motif Website Analytics Analysis and Optimization Campaign and Website DFA ReportCentral, SiteAdvance Customer Data Integration Data solutions Data transfer Cross-Channel Remarketing Online, Email, Call center, Website Boomerang, DARTmail, Ensemble

Slide 14:Media Consumption

Source: Online Publishers Association/MBIQ Media Consumption Study, May 2003 At Work

Slide 15:Reallocation = Same Budget, Better Results

Originally Allocated % Online: Changed to Recommended % Online: +14% -- +8%* -- -- +8% +20% +34% -- Intent Imagery Awareness* Results * Overall Increase in all Brand Metrics Source: Internet Advertising Bureau, (IAB) From a topline perspective, the good news is that all brands indicate there should be a higher percent of the budget online. For Colgate, which actually started with a 7% budget in online, should have put 11% online, which would have dramatically increased their key metrics, imagery up 34% and Intent up 20% Dove started with 2%, however they should have allocated 15% to online which would have results in an average +8% increase in all the brand metrics and a 14% increase in Purchase Intent, which they say is a good measure of sales impact For McD’s, their 1% budget in online should have been 13%, which would have achieve an 8% increase in brand awareness, as a result they Added 6 Million new consumers that are aware of McDonald’s Grilled Chicken Flatbread Sandwich. These are significant findings. And there are more to come from KCC, AstraZeneca, Universal, and ING. “McDonald's joined the chorus last week, saying that it plans to devote more money to digital marketing, quite possibly at the expense of the millions of dollars it spends on TV commercials…McDonald's is just the latest major advertiser to step up its rhetoric about the Web. Half of the top 20 online advertisers in 2002 were Fortune 500 companies--up from about two in 2000---including Amazon.com, Estee Lauder, SBC Communications, General Motors and Barnes & Noble, according to market researcher Nielsen NetRatings…” - CNET, April 24, 2003 From a topline perspective, the good news is that all brands indicate there should be a higher percent of the budget online. For Colgate, which actually started with a 7% budget in online, should have put 11% online, which would have dramatically increased their key metrics, imagery up 34% and Intent up 20% Dove started with 2%, however they should have allocated 15% to online which would have results in an average +8% increase in all the brand metrics and a 14% increase in Purchase Intent, which they say is a good measure of sales impact For McD’s, their 1% budget in online should have been 13%, which would have achieve an 8% increase in brand awareness, as a result they Added 6 Million new consumers that are aware of McDonald’s Grilled Chicken Flatbread Sandwich. These are significant findings. And there are more to come from KCC, AstraZeneca, Universal, and ING. “McDonald's joined the chorus last week, saying that it plans to devote more money to digital marketing, quite possibly at the expense of the millions of dollars it spends on TV commercials…McDonald's is just the latest major advertiser to step up its rhetoric about the Web. Half of the top 20 online advertisers in 2002 were Fortune 500 companies--up from about two in 2000---including Amazon.com, Estee Lauder, SBC Communications, General Motors and Barnes & Noble, according to market researcher Nielsen NetRatings…” - CNET, April 24, 2003

Slide 16:Trends We’re Seeing

Consumers are shifting their media consumption habits with more time spent online Consumers are browsing and buying across channels Marketers are responding by building multi-channel marketing strategies

What is Multi-Channel Marketing? Order Channels Offer Channels Advertising Catalog/Other DM Telemarketing Email Online Advertising Website Retail/Outlet Stores Catalog/Mail Order Call Center Website Consumers exposed to integrated marketing messages in multiple channels which motivates them to purchase in others.

Slide 18:57% of multi-channel shoppers browsed in one channel, purchased in another

Online often sends shoppers to purchase at retail Catalog Retail Store Online ?% 19% 5% 16% 43% 6% 11% Base = multi-channel shoppers buy browse DoubleClick Multi-Channel Shopping Study: Holiday 2003, January 2004 It’s given consumers more options, more information – and they’ve responded accordingly. We live in a world of multi-channel shoppers – and they’re often browsing in one channel and shopping in another. Internet retailing was the bright spot in a gloomy holiday season. A study we conducted of consumers in January showed that 60%…….most importantly, multi-channel shoppers spent more money than those who just shop at retail or just shop through catalogs.It’s given consumers more options, more information – and they’ve responded accordingly. We live in a world of multi-channel shoppers – and they’re often browsing in one channel and shopping in another. Internet retailing was the bright spot in a gloomy holiday season. A study we conducted of consumers in January showed that 60%…….most importantly, multi-channel shoppers spent more money than those who just shop at retail or just shop through catalogs.

Triple-channel shoppers most valuable, spending over $1,000 Base = multi-channel shoppers DoubleClick Multi-Channel Shopping Study: Holiday 2003, January 2004

Slide 20:What’s the Challenge for Marketers, Publishers and Agencies?

D A T A too much of it… what does it mean?… will it integrate?… how can I act on it… D A T A D A T A

Slide 21:Marketers, Publishers & Agencies Need to….

Identify and communicate with the right target Streamline and automate campaigns …. faster, cheaper, better Measure ROI within and across channels… improve performance and grow business

Thank You. More Tomorrow ?, or please contact us any time at [email protected] / [email protected]
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