Capture the Momentum But Keep it Real

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Capture the MomentumBut Keep it Real

• San Diego North CVB
• March 29, 2007

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SEM
PPC
PPA
SEO
CTR
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• It is estimated that
• 2.7 trillion e-mails will
• be sent in 2007

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• A weeks worth of the
• NY Times contains
• more information
• than a person in the
• 18th century could
• come across in a
• lifetime

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• There are 3000 books published...

everyday
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• 1.5 exabytes of new
• information will be
• generated this year
• more than that
• generated in the last
• 5000 years

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• And in ten years, the
• volume of accessible,
• on-line data is expected
• to approach a yottabyte--
• 10 billion exabytes
• Business Wire, October 27, 2000

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• It all happened
• so quickly

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Univac 1951 1,905 instructions per second Weight
29,900 pounds
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• Pencil .0119 instructions per second

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IBM 360 Circa 1964 Up to 750,000 instructions
per second
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1,000,000 instructions per second
Apple 1 1975 8 mb ram Price 666.66
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5,330,000 instructions per second
HP 110 1984 The first laptop computer. Cost
2995. Weight 8.5 lbs.
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Blackberry 800 million instructions per second
Weight 6.3 ozs.
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• 1,120,000,000

Internet Users Worldwide (16.9)
50 by 2015 Internet world stats 2007 AMD 2007
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The Big Three

• Wireless penetration is 93.7 in America
• WiFi has 165 million global users
• Broadband is in 71.3 U.S. homes
• AP 2007 ITFacts Feb 2007 and Business Week Online
  2007

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Buckle Up

• Moores Law Every two years the number of
  transistors on a chip should double
• IBM announces theyve tripled the number of
  transistors on a chip using DRAMe
• Source Neilsen and AP Feb. 2007

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• TELEPHONES

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On the wall.off the wall
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Rotary Phone
Touch Tone Phone
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• Cordless
• and stylish!

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Portable, video, web, ads, texting, camera, maps,
shopping, song identity andvoice
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Going Mobile

• 76 of cell users in Western Europe and U.S. have
  mobile web access
• 34 use it regularly
• Consumers say they will watch ads in exchange for
  free mobile content
• European Service, SeeME offers video clips for
  pay
• Content generators get paid 10 commission
• Bypasses YouTube
• WSJ March 2007 B2B March 2007

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Cell Phone Virtual Wallet

• Check in Luxor hotelwhen you land
• Get coupons and offers when you wander off
  property
• Pay for a burger McDonalds in Japan
• Various 2006, 2007

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Third Generation Fiber Optics

• 10 trillion bits per second through one strand of
  fiber
• Equivalent to 1,900 CDs or 150 million
  simultaneous phone calls --every second
• it will triple every six months for the next 20
  years
• Source Alactel and NEC

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Buckle Up

• E-commerce 143 billion 2005
• 6 of all retail sales
• Projected to 211 billion 2006
• Video now accounts for 60 of all traffic on the
  net
• Average consumer spends 14 hours a week on-line
• equal to avg. time with TV
• Twice and ClickZ 2007

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Use Your Brain Meet Emotiv
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Web 2.0

• a vast umbrella of blogs,
• wikis, and social networking
• sites that make up the
• participatory web

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• As the pace quickens on
• the information highway,
• the ability to capture our
• customers attention and
• attract them to our off-ramp
• fades rapidly

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26,983
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Overwhelmed Yet?
26,983 new products introduced in 2004

• 115 deodorants

187 breakfast cereals
303 womens fragrances
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Message Overload

• 35,000 products in the grocery store
• 256 ad messages a day
• 35 personal e-mails per day
• Average home has 25 electronic devices
• 39 of US Adults say they read yesterdays
  newspaper today
• 34 of all drivers on the road are on their cell
  phone at the same time
• Source IRI, Washington Post and AP, Silver
  Pop, NYT

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Point of Purchase Media

• 37,000 locations in the US
• 20 of all grocery stores
• 11 of all offices
• 125,000 screens in Walmart stores
• 10,800 screens in doctors offices
• 132 malls across the country have floor
  projections
• NYT March 2007

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Now Who Didnt See This Coming

• Kroger is testing this concept in Midwest

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Paid Media2

• AOL has begun to advertise to its paid
  subscriber base
• Advertising is planned for cell phones and video
  games
• WSJ 12/06

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Consumers are Fed Up

• 65 feel constantly bombarded with too much
  marketing and advertising
• 47 say ads spoil their reading and viewing
  enjoyment
• 48 believe it is their right to decide whether
  or not to receive ad messages
• Six in ten say the amount of marketing and
  advertising is out of control
• Source Forrester 2007 Yankelovich

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And Out of Time

• The old approach of marketing
• saturation has created a clutter
• environment that people are now
• resistingpeople feel they have less
• time in their lives for all the things
• they want to do
• J. Walker Smith
• Chairman Yankelovich Partners 2006

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The Tipping Point

• the fortunes of many of Americas best known
  companies will rise or fall, depending how well
  they adapt to what is shaping up as a long
  chaotic transition-- from the fading age of mass
  marketing-- to the dawning era of
  micro-marketing
• Business Week July 2004

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The Fading Age of Mass Marketing

• 1960 reach 80 of women with The Big Three
• 2007 The vast 100
• Prime time ratings have fallen 41 since 1977
• American daily newspaper circulation has been
  declining steadily since 1987
• WSJ 2006 BrandWeek 2005

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Time Becomes Less Timely

• Time Magazine gets a makeover
• More opinion less, hard news
• Time wants to blur the line between traditional
  print and the web
• Since 2001, Time Inc. market cap has declined 57
• Advertising Age March 2007 WSJ March 21 2007

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The Tipping Point
"People are willing to give up sleep at night,
to get time back into their lives, and the
question I ask advertisers is, Do you think
people are willing to give up sleep to look at
your ads?
And the answer is no J. Walker Smith Chairman
Yankelovich Partners 2006
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• Marketing 4.5
• UDMR

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A Paradigm Shift

• User Defined Marketing Relationship (UDMR)
• Pull not Push
• Personalization
• Consumer Choice

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Choice Breeds Trust

• Opt-in e-mails were deemed twice as trustworthy
  as TV commercials and 10 times more trustworthy
  than banner ads, precisely because the consumer
  chooses whether to engage
• Bob Garfield Advertising Age March 2007

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"We can no longer measure success in keeping
upwhat we need is a mindset shift.from telling
and selling to building relationships Jim
Stengel, CMO PG 2007
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Marketing 4.5Keeping It Real
The Human Touch
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We Learned A Lot in School

• That Emotion Rules the Day
• Relationships Are Two Way
• Think Outside the Sandbox

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The Triune Brain

• Chemically and biologically different
• Reptilian
• Limbic
• Neocortex
• They communicate but imperfectly
• Who runs the show?

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• Relationships are two way

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Why 11th Grade Matter?
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Relationships in 11th Grade

• The first glance
• Led to the first conversation.
• Led to the first date.
• Led to the commitment
• Led to lifetime happiness

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11th Grade and E-mail

• Led to the first conversation.
• Consumer opts in
• Led to the first date
• Consumer purchases
• Led to the commitment
• Consumer buys regularly
• Led to Lifetime happiness
• Consumer is a brand advocate

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The Kendall Jackson A flawless seven carat,
canary yellow diamond
Brenda Thompson, Bethesda MD KJ Brand Advocate
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Think Outside the Box
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The Art of the Auction
Sothebys showed paper
Christies showed scissors.
Prize 20,000,000 consignment!
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Keeping it Real

• Use
• old ideas
• in
• New Ways

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• Five Momentums
• and
• How to
• Keep Them Real

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E-Mail is Still King

• E-mail 83
• Search Marketing 62
• Print Advertising 19.1
• On-line video 15
• RSS 4.3
• Datran Media Feb 2007

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Radio Shack Lays It Out

• The work force reduction notification is
  currently in progress. Unfortunately your
  position is one that has been eliminated."
• Internal memo RSC August 31, 2006

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Words of Engagement

• Personalization
• Less than 16 of all e-mails are personalized
• Personalized e-mails have higher click through
  rates
• Silver Pop 2006

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Personalization Consumer Preferences

• Preferences are the most persuasive factor in
  increasing response rates
• Less than 27 of e-mails ask for preferences
• Frequency, content, personal information
• Mrs. Baker and Avon
• Source Jupiter Research 2006

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Personalization Content

• E-mail men want facts, women want relationships
• Bullet points vs. stories
• Source Pew Internet 2005

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Personalization

• 80 of consumers want their on-line experiences
  to be personalized
• 6 in 10 are willing to spend time to answer
  questions to get a personalized experience
• Source SilverPop 2005

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Personalization Date Night

• E-mails best open day.

Friday ClickZ 2006
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Social Networking

• While trust in established brands and media
  fades, consumers turn to one another for advice
  and validation
• Forrester Research 2006

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Social Networking

• MySpace.com
• Facebook.com
• YouTube.com
• Bebo.com

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Guess Whos Doing It?

• 48 million American adults have contributed user
  generated content to the net
• 49 are over age 30
• 48 of brand marketers will deploy marketing on
  social networking sites in 2007
• Enid Burns Jupiter Research 2007

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Guess Who Else Is Doing It?
Carrie Bradshaw
John Locke
Claire Standish
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John Locke Brand Advocate

• No matter how many times you get hurt, mocked,
  rejected, judged, hated, or betrayed, NEVER be
  anything less than your true self.
• Male 20 years old Northridge, California

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Homemade Star Trek
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Now Thats a Twist

• New Line Cinema has created a page on You Tube to
  allow users to create confessionals to promote
  the film 23

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Guess Whos Coming to Dinner ?

• NBC and News Corp announce a new video sharing
  venture
• Episodes of 24 and The Office
• Viewers will also be able to edit their content
  and post their own video
• NYT March 23, 2007

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• Theres a shift in business to create options
  for people where consumers take away power from
  marketers
• J. Walker Smith,
• President Yankelovich Partners 2007

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A Good Place to Pitch

• 51 of visitors to social networking sites are
  looking for gift ideas
• 50 would download a coupon or offer
• 29 would shop, if possible
• Advertising sales 350 million
• AMA 2007

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• Ultimate Social Networking

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(No Transcript)
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Second Life Virtual You

• 4.95 million residents, and growing
• Toyota, Dell, Sun, Crayon, Reuters and General
  Motors
• Starwood tested a hotel concept
• Reuters has a news bureau and a reporter-- Adam
  Pasick

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Linden Dollar to US Dollar
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Second Life Virtual You

• 4.95 million residents, and growing
• Toyota, Dell, Sun, Crayon, Reuters and General
  Motors
• Starwood tested a hotel concept
• Reuters has a news bureau and a reporter-- Adam
  Pasick

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Really Simple Syndication
R S S

• The technology that fuels blogs, news sites, My
  Yahoo, Ding
• Virtual pipeline sends content through a feed
  to a users reader
• Currently 75 million users worldwide
• Vista includes RSS
• Sources Jupiter, Pew Internet, Neilsen Net 2005

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Really Simple Syndication

• Traditional RSS all content is read by all
  users
• For example
• Our Lowest Fares to every destination

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RSS Personalized

• Individualized RSS allows for unique
  personalization
• Target a previous buyer
• Airfare to San Diego
• Customized content
• Hotel deal included
• Testing
• Two different calls to action

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Podcasting

• Podcast feeds outnumber radio stations
  worldwide--44,000
• Growing at 15 per month
• 11 million estimated subscribers
• Fastest adopted technology ever
• Source Business Week Feedburner 2007

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Podcasting

• Micro broadcasting
• Home spun production values
• Podtrac matches advertisers to audiences with a
  free tool
• 80 million spent on advertising in 2006

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Search Engine Advertising

• SEO and SEM
• Pay per click invented in 1996
• 40 of all on-line ad revenues
• Next Generation Pay Per Action

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Search Optimization

• Dont make consumers search, after theyve
  SEARCHED
• Create unique landing pages which prominently
  display the keywords

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• How do you keep it real?

Remember the Romans
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• What is the standard width of a U.S. railroad
  track?

4 8.5
90
same as the English standard
same as pre-railroad tramways
same spacing as wagon wheels
same spacing as the wagon ruts
wagon ruts were cut by Roman chariots
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• All Roman chariots were built to a standard wheel
  width of 4 ft. 8.5 in.
• Which is the width of two horses behinds

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The space shuttle SRBs were built by Morton
Thiokolwhich is in Utah The SRBs basic design
was determined by the width of the railroad
tunnel through which it would have to pass as it
was shipped to Florida
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In Summary

• A multi-billion dollar 20th century space ship
  depends on a 2,000 year old design-- based on the
  anatomy of two horses arses
• The Lesson?

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Horses Asses Make Rockets Fly
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• and no technology
• will ever replace the
• human touch

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Capture the Momentum But Keep it RealSan
Diego North CVB Annual MeetingMarch 29, 2007