An edited shortened presentation given at the CMO Conference in Zürich, Switzerland in September 2008

1. The future of online marketing
Ideas, opinions and thoughts from a
hands-on practitioner
Michael Leander Nielsen
(c) Michael Leander Nielsen, 2008 1

2. Did you know?
The future is here
It’s just not widely
distributed yet
William Gibson
(c) Michael Leander Nielsen, 2008 2

3. Who am I?
10
Corporate
20+ CEO,
¨VP Marketing
VP Sales
Denmark
Michael
Leander
10
+
Marketing consulting
International roll-out
(c) Michael Leander Nielsen, 2008 3

4. So - what is online marketing?
Online
media
Email
Digital
Search
ecosystem
Web sites
Digital Microcasting
devices
Interactive &
TV
(c) Michael Leander Nielsen, 2008 4

5. Marketing in a recession
What others have been experiencing
• Marketing budgets decreases
• Focus on quick wins
• More direct, less mass marketing
Necessitates a strong focus
• Small budgets, big results
• Existing customers
• Prospects “most likely to buy”
• and ….
5

6. ROMI
Return on Marketing Investment
also known as MROI – Marketing ROI

7. Marketing Metrics for the future
• Marketing is an investment - also in times of
recession … accountability is important
• Customer lifetime value is (still) essential to any
marketer
• Differentiated Cost per Interest :
• Cost per permission – basic
• Cost per permission – profiled
• Cost per order / cost of acquisition
(c) Michael Leander Nielsen, 2008 7

8. 1908
(c) Michael Leander Nielsen, 2008 8

9. 1994 to 2008 = 14 years
North America Asia
73,6%% 15,3%
Africa
5,3%
Switzerland
69%
Europe Austria
Germany 56,7%
48,1%
64,6%
(c) Michael Leander Nielsen, 2008 9

10. Broadband on the rise
30,97%
(c) Michael Leander Nielsen, 2008 10

11. Some are finding that
direct mail is becoming
increasingly effective
Multi-channel
- Integrate
- Differentiate
- Permission
- Cost efficiency
(c) Michael Leander Nielsen, 2008 11

12. All about the customer experience. Now
you need to build a strategy and EXECUTE
Experience > Conversation >
Relationship > Affinity
(c) Michael Leander Nielsen, 2008 12

13. (c) Michael Leander Nielsen, 2008 13

14. Changing media landscape
Illustration source: Cscout
(c) Michael Leander Nielsen, 2008 14

15. Now &
Influence revolution The
Future
Social media definition
“Online applications,
platforms and media which
aim to facilitate interaction,
collaboration and the
sharing of content”
(c) Michael Leander Nielsen, 2008 15

16. The ways to share influence have exploded
(c) Michael Leander Nielsen, 2008 16

17. Key social platforms
• Now & In Future
• B2Bs find your place
• B2Cs develop
engaging content
• NGO’s - likewise
(c) Michael Leander Nielsen, 2008 17

18. Wave 3 – highlights social media
• Social media is a global phenomenon happening in all markets regardless of
wider economic, social and cultural development. If you are online you are
using social media
• Asian markets are leading in terms of participation, creating more content
than any other region
• All social media platforms have grown significantly over the three Waves
• Video Clips are the quickest growing platform, up from 31% penetration in
Wave 1 (2006) to 83% in Wave 3 (May 2008)
• 57% have joined a Social Network, making it the number one platform for
creating and sharing content
• Blogs collectively rival any traditional media 73% have read a blog
• The blogosphere increasingly participatory, now 184m bloggers globally
• Social media impacts your brand’s reputation
• 34% post opinions about products and brands on their blog
• 36% think more positively about companies that have blogs
(c) Michael Leander Nielsen, 2008 18

19. Understanding your audience behavior
• What have they been doing
historically?
• What will they be doing in the future?
• What are their preferences?
• What is the social Technographics®
profile of your target group?
http://www.forrester.com/Groundswell/profile_tool.html
(c) Michael Leander Nielsen, 2008 19

20. How often do you share your opinion about
a product, brand or service via the internet?
(c) Michael Leander Nielsen, 2008 20

21. We are motivated to share by experience
Not motivating Very motivating
(c) Michael Leander Nielsen, 2008 21

22. Key instruments – important to the majority
of marketers and why?
Sign-up here for updates and articles:
http://www.fokusintegrated.com/meemoo2/
(c) Michael Leander Nielsen, 2008 22

23. What are you trying to achieve?
Prospect
RETENTION
WEB SITE UPSELLING
CROSS SELLING
SHARE OF WALLET – CUSTOMER SHARE
# of prospects
PROSPECT
WITH
PROSPECT
NEED AND TRIAL
Target SUSPECTS PROSPECTS WITH BUYER C B A
BUDGET
market NEED
4
3 5
2 6
1 7
8
INCUBATIONTIME
© Michael Leander Nielsen, 2002-2008

24. What do you want your targets to do?
How much are you willing to pay?
Branding/
Awareness Email
signup Profiled
Media Signup Trial
signup Trial
buy Purchase
Video
CPO
Blogs = £$€ ?
Affiliates
Email
• Measure conversions
CPI
= £$€ ? • Monitor successes

25. Measuring the customer experience - LIVE
• Measure the customer experience in all customer contact touch points
• Measure live – ensure that reporting is actionable on both the aggregate and
individual customer level
• Implement KPI’s for fast identification of certain customer profiles
Measuring the customer
experience in all customer
touch points
React -
Measure Report - live
immediately
(c) Michael Leander Nielsen, 2008 25

26. Engaging your audience with great
relevancy to product USP
(c) Michael Leander Nielsen, 2008 26

27. Commit to audience innovation and ideas
in an open dialogue: Starbucks
(c) Michael Leander Nielsen, 2008 27

28. Citizen journalism and niche medias.
Does your brand fit in? Online PR
(c) Michael Leander Nielsen, 2008 28

29. Collaboration and utilizing the internet to
extend a physical product experience
But why not ask
me questions about
my running behavior?
My shoe size? Etc.
(c) Michael Leander Nielsen, 2008 29

30. Word of mouth - Viral marketing –
very powerful
Today and tomorrow
(c) Michael Leander Nielsen, 2008 30

31. (c) Michael Leander Nielsen, 2008 31

32. Capturing data and using customer and prospect
data for a relevant dialogue based on customer
interest, behavior and dynamics
Marketers can no longer
ignore the importance.
Data management is NOT an IT issue
Neither is marketing automation and
managing the customer lifecycle
(c) Michael Leander Nielsen, 2008 32

33. Trends - Permission
• Obtaining permission
will become exceedingly
Vital
• You need permission
for email, SMS/MMS etc.
• Profiling permissions a
prerequisite for a relevant
Dialogue
• Cookie permission in
the European Union MAYBE
(c) Michael Leander Nielsen, 2008 33

34. Website interaction – simple example
Profile
Visitor
RFM Offer checks
Lead score Identify solution out
solution
Purchase history visitor
Hold my hand, Harry
Behavioral
Leave me alone, Larry
Targeting
Walk in the park
Visitor Dialogue Visitor still applies
initiate
browsing
live purchase
Visitor Visitor
Engage
gets visitor complete
lost purchase
(c) Michael Leander Nielsen, 2008 34

35. Communities – get involved with an
existing one or create your own
(c) Michael Leander Nielsen, 2008 35

36. Video-blogs / video content sites
(c) Michael Leander Nielsen, 2008 36

37. Blogging Microblogging
• Inexpensive and effective
• Seeding and time to achieve critical mass is the biggest
issue

38. Summary
• The ”basics” are enormously important in the future
• Conversation economy
• Acquiring and retaining permission is critical
• Social media and communities represent real opportunities for
most - but must be planned and executed properly
• Viral marketing and WOM rightly executed represent monster
opportunities
• Mobile marketing is a promising media, but permission is a
challenge
• Big media to small media: Traditional online advertising is
less advantageous for most – micro targeted advertising on
social networking platforms not
(c) Michael Leander Nielsen, 2008 38

39. Get in touch: mln@fokusintegrated.com
Check www.meemoo2.com and www.marketingboss.tv
(c) Michael Leander Nielsen, 2008 39