Transcript Trends and Outlook: Murray Gaylord VP, Brand Marketing Yahoo!, Inc. eMarketing Association April 25, 2006

Trends and Outlook:
2006
Murray Gaylord
VP, Brand Marketing
Yahoo!, Inc.
eMarketing Association
April 25, 2006
1908
The Model T Ford… Essential
Transportation For The Masses
1950
2000
Online Creative
Tacky
Pop-Up Ads
2004
Today…
We Are Moving Through
A Time of Irrevocable Change
Huge Changes in Behavior,
Technology & Media Consumption
Proliferation of Broadband
Changes in
Behavior
Online
Engagement
Changes in
Media Usage
Innovations
In Technology
Mobile
Devices
Media Evolution:
The Digital Era Is Here
_1999_
PVR
_1990_
40
VOIP
Vlogging
Number of Media Channels
Email
_1990_
WWW
_1986_
Infrared
Remote
_1941_
1st TV
Broadcast
_1972_
1st VCR
1984_
TV
20
_1924_
1st Radio
Broadcast
_1704
NewsPaper Ad
1st
0
Newspaper Ads
1700
1750
Advergaming
IM
Blogs
Webmercials
Bluecasting
Posters
Billboard
Retail
Branded Ent.
Cinema
Mechanical Billboards
1880
1890
1900
Outdoor
Interactive Billboards
Video Billboards
Print
Free Tabloids
Catalogs
Magazine Ads
1850
Cinema Ads
1910
1920
1930
1940
Television
PR
1st TV Commercials
Radio
Commercials
AM FM
Pageants/Parades
Telecom
Radio
Cable TV
Interactive TV
In-store TV
1st
Internet
Streaming TV
Pop-up Ads
_1890’s_
Corp
VCR Advertising
In-store Display
PR
Rise of
Sponsor
In-store Demo
Product Placement
Dept. Stores
Store Windows
_1742_
1st Mag.
Ad
1800
Pod Casts
Comm Chat
Banner AdsTexting
PVR
Websites
Ads
MinitelTelemktg
Sat. TV
Deregulated
_1929_
Torches of
Freedom
_2006_
IPTV
1950
1960
1970
1980
1990
2000
Ken Auletta, Author, Journalist
“I can’t think of an
industry that is
more challenged
today than the
advertising
industry”
March 6th, 2006
Dean Barrett, SVP Global
Marketing, McDonald’s
“We need to change
as the world
changes…
We aren’t restricting
our media to
traditional media”
Sir Martin Sorrell, CEO
WPP
“I think there's a
certain amount of
panic among media
owners”
Sir Martin Sorrell, CEO
WPP
“I think there's a
certain amount of
panic among media
owners”
“You don’t get fired
for spending
on the Internet now”
FT 4-22-06
Dan Quayle, 44th Vice President
of the United States
“The future is
ahead of us
and the past is
behind us”
Roadmap
•
•
•
•
What’s Going On?
Connecting the Dots
A Mini Case
Q&A
A Communications Revolution…
Globally
~ 6.5 billion people
~1.0 billion online
~300 million in Asia
~180 million in US
60% Penetration
~110 million in China
7- 8% Penetration
Huge Growth of Internet Users
Globally in Next 3 years
1,484
1,600
1,400
1,200
1,039
1,000
800
485
600
400
180
200
39
0
1995
1998
2001
2005E
2008E
Two-thirds of new user growth will be in developing Asia
Source: World Bank and Morgan Stanley (August 2005).
Today, Internet Represents 15%
of Media Time Spent In The USA
U.S. adults age 12-64
Source: SRI/Knowledge Networks Media Fall 2004.
Other includes cinema, yellow pages and videogames.
Simultaneous Usage of TV & Internet Has
Increased 72% in 4 Years
TV and Internet Multitasking = 66% *
* Simultaneous Media Usage Study (SIMM)
There is No ‘Mass’ in ‘Mass
Media’ Anymore
1960
2004
Mass Media Matures
Mass Media
TV channels
per home:
5.7
Radio
stations:
4,400
Magazine
titles:
8,400
TV
channels
per home:
82.4
4.4 Billion
pages
indexed by
Yahoo!:
Internet
broadcast
stations:
25,000+
Source: Forrester Research, April 2004. (Stats from FCC, MPA, TV Dimensions 2003,
Media Dynamics, NullSoft, TvRadioWorld).
Magazine
titles:
17,300
Radio
stations:
13,500
Huge Implications for
Advertisers and Media
Time Shifting & Place Shifting Are Growing Facts of Life
AOL.com -- In2TV
BLOGS
Broadband Use is Pervasive
70%
60%
50%
40%
3-D Column 1
30%
20%
10%
0%
Feb '03
Feb '04
Feb '05
Feb '06
% of active Internet users in US using BB at home
Source: Nielsen/NetRatings
Guy Kawasaki, Former Apple
Evangelist and Branding Guru
“The ubiquity and
freedom of
broadband are
absolutely changing
the world…
making it easier to
build brands, not
harder.”
Geoff Ramsey,
CEO, eMarketer
“Embrace The
Most Exciting
Opportunity in
Media History”
Next Phase of the Internet:
Social Media
Mass
Media
Digital
Media
My
Media
The Consumer is in Control:
The user is the creator,
distributor, and programmer
Web 2.0:
The Emergence of Social Media
News
Music
Old Internet
Today’s Internet
“taking old media online”
“community, integrated”
Putting the
newspaper online
Citizen journalism, video,
photos, debate
Putting radio online
Music videos, playlists, music
communities, fan clubs,
knowledge centers
Commerce Putting up your
catalogue online
Consumer product reviews
and recommendations,
Price & feature comparison
Beth Comstock, President
NBC Universal Digital Media
“ The company saw
submissions by users,
not content it created,
as the greatest means
of expansion.
"What we are excited
about here is that it is
a community,"
MySpace.com
72 Million Users and Growing
Flickr.com Photo Sharing
• 14,000 images
uploaded every
hour
• 100 million photos
uploaded to date
• 80+% are tagged
YouTube.com:
3000 Videos Served a Day
Wikipedia:
The Free Encyclopedia
• Wikipedia is an
encyclopedia written
collaboratively by many of
its readers.
• Lots of people are
constantly improving
Wikipedia, making
thousands of changes an
hour…
• Inappropriate changes are
usually removed quickly.
sixapart.com:
Blog Tools, Bloggers and More
LiveJournal Stats
Total Accounts: 9.6mm
Posts per hour: 18k
Consumer as Content Provider,
Producer, and Distributor
The Consumer Is (truly)
In Control
A Marketing Framework
When The
Consumer is in Control
Roadmap
•
•
•
•
What’s Going On?
Connecting the Dots
Mini Case
Q&A
Connecting the Dots
Brand
Search
Engage
So, What is a Brand Anyway?
A brand is a set of differentiating promises
that link a product to its customers.
The brand assures the customer of
consistent quality plus a superior value
(both functional and emotional)
for which the customer is
willing to give loyalty and pay a price that
brings a reasonable return to the brand.
A Great Brand
• Clear differentiation in the
marketplace
– Functional
– Emotional
• Consistent Quality
• Creates loyalty
• Allows premium pricing
A Strong & Differentiated Brand
Heightens Margins: +50%
100
Operating Margin
80
10.5%
60
Differentiation
Grows
40
Operating Margin
7.0%
20
0
0
20
40
60
80
Differentiation
Declines
Source: Stern Stewart
100
The Power Of Search
80% of internet
traffic begins at
a Search Engine
Source: Harris Interactive as reported in Ad Age 4-24-06
Search Marketing
Will Continue to Grow
Big market and expanding, $25B by 2010.
A Cost Efficient Marketing Medium
$70
Direct mail
$60
eMail
$50
Online display ads
$20
Yellow pages
$8.5
Search
Approximate customer acquisition cost across various channels
Source: Piper Jaffray & Co.,
Test & Learn… Test & Learn
So What Makes For Great
Creative?
Compelling Offer
Multimedia
Opt-in
ROI
Personalization
Rich Media
Usability
Tell a Story
Interaction with Brand
Immersive
Viral
So What Makes For Great
Creative?
Compelling Offer
Multimedia
ROI
Opt-in
Rich Media
Usability
Engagement
Personalization
Interaction with Brand
Immersive
Viral
Tell a Story
It’s Called “Interactive”
For A Reason
• Users must be
brought in to the
creative, or else it’s
just more noise
– Get noticed
– Get people engaged
– Give them
something to do next
Engagement Defined
Engagement is
turning on a
prospect to a brand
idea enhanced by
the surrounding
context
Source: American Research Foundation 3-06
Engage In A Way That’s
Relevant
Wendy’s MySpace
Offline Engagement:
Starbuck’s Holiday Promotion
The Cup is Glued to the Car!
Pedestrian: “Hey! You left
your coffee on the roof!”
Driver: “What?”
Pedestrian: “Your coffee! On
the roof of your car!”
Driver: “Oh, thanks! (handing
a discount Starbuck’s coupon
to the friendly pedestrian)
Driver: “Happy Holidays from
Starbucks!”
The Latest Low-technology Billboards
in the Netherlands
New York Times 4-24-06
Engage By Stopping Traffic in its
Tracks
Adidas Hangs Humans From
Billboards
Two soccer players ropedto a
billboard in Tokyo with a soccer
filed backdrop and have the two
play a soccer match for ten
minutes at a time.
Worldwide media coverage
Viral Engagement
Land Rover Introduces “Go Beyond”
First IPTV Channel Run By a Car Co.
Bacardi B-Live Online Radio
Engage in a Way That Informs
• Yahoo! Messenger with Voice
Creative can provide a lot of information, as long as it’s seen as valuable to the
consumer.
Engage Beyond The Banner
• IBM US Open
Engaged Users Keep Coming Back
American Express
“Andy Roddick v. Pong”
–TV, Interactive and live
events surrounding 2006
Australian Open
–Website let users take
control of Andy Roddick
to try to defeat Pong –
save scores, send to a
friend, competition for hiscore
•80,000 Unique players
•5 minutes per game
•155,000 games played
Roadmap
•
•
•
•
Changes
Connecting the Dots
Mini Case
Q&A
Yahoo! Music Mini Case
Music Campaign Objectives
 Logo
Create
awareness of new music product
Configuration
 Energize young audiences and invigorate
the Yahoo! brand
 Hottest, most innovative, creative brand
campaign online EVER
Target Audience
 Music lovers, 18-34
 Considered ‘insiders’ and
influencers by friends
 Heavy Internet users
 Spend 3 hours a day online (IM,
blogs, Yahoo! Music videos, music
news)
 Swaps free songs with friends
 Own, or intending to buy, a
portable music player
An Idea…
Over 1 million songs. 5 bucks a month.
Media Plan
Launched on Video Music
Awards for Maximum Impact
Buzz Marketing at VMA Event
13,000 Trial Applications
Passed Out on The FIRST DAY
1,400 Celebrities, Influencers &
Clients Entertained Over Three Days
Free CD’s for All
The First 3 TV Commercials
UFO
Green Day
Missy
Interactive Rich Media Ads
Targeted Ads on
Contextually Relevant Sites
Integrate the “Mini Pops” Across
Across The Yahoo! Site
Celebrity Online Ads
Search Marketing
Acquisition Email
Out of Home Advertising
Logo Configuration
Trade Ads in Billboard and Hits
Results Exceeded All Goals
OK… So What’s The Takeaway?




Metamorphosis in media consumption
Consumers are in control
Social Media era has begun
Internet is central to engaging marketing
campaigns
 brand, direct marketing and promotions
 Big Ideas…integrated flawlessly across
channels… remain powerful
Roadmap
•
•
•
•
Changes
Connecting the Dots
Mini Case
Q&A
Thank You
[email protected]