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LESSON 3

digital ecosystem
and web marketing
martedì 19 novembre 13
Introduction

In this lesson we present the new "digital ecosystem": a set
of platforms, tools, people and companies that characterize
our lives and that have deeply changed the way companies
do business.
The final part of this lesson explains how companies need
to adapt the way they market and communicate to deal with
this change.

2
martedì 19 novembre 13
the digital ecosystem
The digital world has become complicated, really complicated!
Between web sites, smartphones, desktop
applications and the amalgam of social media
platforms and services, it is difficult for many
businesses to understand where they must
focus their efforts.

DIGITAL ECOSYSTEM OF COMPANY X

To offer some clarity we can think of these
elements as being part of a broader digital
ecosystem.
The digital ecosystem of a business is a
combination of all the relevant digital touch
points, the people that interact with them,
including the business processes and
technological environment.

3
martedì 19 novembre 13
How the marketing model has changed

Nowadays, the web is all about Facebook, Twitter, YouTube and Tumblr… Several years ago,
these services did not exist, portals and search engines were still in their prime.

So what has changed?
In brief, users took control of the web and
the market shifted from a click-based engagement
model to a fan-based engagement model.
Clicks are no longer the premium currency for
an advertiser.
Fans are.....they want to be followed, shared,
mentioned, even pinned!
Fans are the new click!

4
martedì 19 novembre 13
How was this
change possible?
A brief history
of Internet and marketing

martedì 19 novembre 13
The World Wide Web was created in 1993
This was how the first web site looked! A lot of things have changed
since then...

6
martedì 19 novembre 13
Since then, the way we communicate has changed

Nobody is using traditional mail anymore!
In other words, email has
outnumbered snail mail 81 to 1.

martedì 19 novembre 13

People are using also Facebook messages and
other digital mobile apps such as “Whatsapp”.
The content business has been turned upside down
When was the last time you purchased a CD?
This chart displays the decline in the music market
in recent years, it also displays how people have
started to purchase music from digital.

http://goo.gl/WYwbA

martedì 19 novembre 13

8
From traditional media to digital app
Whirlpool EMEA has just released a new iPhone App:
Wavelicious that transformed the traditional recipe book into
something more engaging, cool and functional.
The new Wavelicious app opens up a whole new world of
microwave cooking possibilities.
Discover more and take a closer look here:
http://www.whirlpool.co.uk/wavelicious/index.html

martedì 19 novembre 13
from traditional selling to
new selling models:

The company has a warehouse-based model operating from a purpose-built picking
centre, purely online without any physical shops, unusual for a supermarket.

Ocado has a single warehouse in
Hatfield. Totes for each order move
automatically around the warehouse, and
are filled by picking staff at different
sections. These are then delivered using
a fleet of custom-built Mercedes-Benz
refrigerated delivery vans.

10
martedì 19 novembre 13
...so the world we live in has
changed...
and the challenge for companies
is to evolve

11
martedì 19 novembre 13
The old communication scheme

Too many brands still behave in the same old way
The way we produce and build brands
and stories hasn’t changed much, but we
need to rethink this classical model.

Most companies still create a
30-second commercial and try
to coordinate other channels

Radio

Internet

TV

Print

martedì 19 novembre 13
brand marketers simply
do not spend ENOUGH online
Just 12% of the budget is dedicated to Internet marketing!

Even if the people trust Internet more than any other channel!
Interactive Marketing’s Share of Total Ad Spending, 2009

88%
OTHER CHANNEL

12%
INTERACTIVE
MARKETING

martedì 19 novembre 13

Source: December 17, 2009, “US Interactive Marketing Forecast By Industry, 2009 to
2014”
Data is for the US only. Brand categories included are Consumer Goods, and Media
The Internet is more trusted than any other
channel - companies should use it more!
“To what extent do you trust each of the following sources of information”
Manufacturer’s website

20%

Ads on TV

16%

Email update you have asked to have sent to you

15%

Ads on radio

12%

Direct mail

10%

Brand websites

10%

Email from a company or brand

9%

Ads in newspapers

9%

Ads in magazines

8%

Social networking site profiles from a company or
brand

6%
5%

Brand sponsorships

4%

Ads that come up when you use a search engine

3%

Company blog

2%

Banner ads on websites you visit

1%

Base: 1985 UK adults.
Source European Technographics® Benchmark Survey, Q2 2010

martedì 19 novembre 13
People spend a lot of time on Internet!
“In a typical week, how many hours do you spend doing each of
the following?”
14

15
12
9
7

7

2

2006

2010
Watching
TV

Using the
Internet

Listening
to the radio
(offline)

Reading
newspapers
(offline)

(1)

Base: 1345 UK online adults Source European Technographics® Benchmark Survey, Q2 2006

(2)

Base: 3208 UK online adults Source European Technographics® Benchmark Survey, Q2 2010

martedì 19 novembre 13

2

2

1

Reading
magazines
(offline)
What do we have to change
in the way we communicate?

martedì 19 novembre 13
The way we build brands must evolve
From this..
Internet

... to this.

Radio

TV

Print

A liquid ecosystem of different touchpoints.
There is no distinction between traditional media and new media:
every channel is important for its specific target .
All the channels are useful to follow the customer during their “journey” (see next slide)

martedì 19 novembre 13
the customers journey
This is an oriented graph that describes the journey of a user by representing the different
touchpoints that characterize their interaction with the service.

Casa

Viaggio

Lavoro

Retail

Lavoro

Viaggio

Social

Casa

MOBILE
COMPUTER
TV
RETAIL
PRINT
RADIO
OOH

The secret is to be present in a relevant way on each touchpoint,
fusing digital and traditional media into a unique experience.

martedì 19 novembre 13

Letto
How can we categorize the different touchpoints?
With the rise in importance of social media and online PR, we are seeing more companies
change their method of budgeting, reporting and investing in media.

Media type Definition

Examples

The role

Benefits

Challenges

The trend is towards a
review of investments in
the 3 main media buckets
of earned, shared and
paid which each give
opportunities to influence
customers.

The POE model will the subject of a specific course coming soon.
Source: Forrester Research, Inc.

martedì 19 novembre 13
conclusion: Make the three layers
work together
Audience
Engagement
Big idea

• Interactive marketing is ready to lead
your brand

• That doesn’t mean choosing one

channel over another – it means
organizing all channels into a multilayered brand ecosystem

1. Engage your users with an owned
media core
2. Distribute your campaign via
social and mobile media
3. Reach a broader audience using
paid online and offline media

martedì 19 novembre 13
THANK YOU
Coming soon!
The principles of Social Networking! Stay
tuned for our tips and tricks including a
video clip on how to use: Facebook,
Twitter, Google+, Pinterest and Youtube.
For questions or suggestions please write
to:
whirlpool_emea@whirlpool.com

21
martedì 19 novembre 13

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Digital Ecosystem and Web Marketing

  • 1. LESSON 3 digital ecosystem and web marketing martedì 19 novembre 13
  • 2. Introduction In this lesson we present the new "digital ecosystem": a set of platforms, tools, people and companies that characterize our lives and that have deeply changed the way companies do business. The final part of this lesson explains how companies need to adapt the way they market and communicate to deal with this change. 2 martedì 19 novembre 13
  • 3. the digital ecosystem The digital world has become complicated, really complicated! Between web sites, smartphones, desktop applications and the amalgam of social media platforms and services, it is difficult for many businesses to understand where they must focus their efforts. DIGITAL ECOSYSTEM OF COMPANY X To offer some clarity we can think of these elements as being part of a broader digital ecosystem. The digital ecosystem of a business is a combination of all the relevant digital touch points, the people that interact with them, including the business processes and technological environment. 3 martedì 19 novembre 13
  • 4. How the marketing model has changed Nowadays, the web is all about Facebook, Twitter, YouTube and Tumblr… Several years ago, these services did not exist, portals and search engines were still in their prime. So what has changed? In brief, users took control of the web and the market shifted from a click-based engagement model to a fan-based engagement model. Clicks are no longer the premium currency for an advertiser. Fans are.....they want to be followed, shared, mentioned, even pinned! Fans are the new click! 4 martedì 19 novembre 13
  • 5. How was this change possible? A brief history of Internet and marketing martedì 19 novembre 13
  • 6. The World Wide Web was created in 1993 This was how the first web site looked! A lot of things have changed since then... 6 martedì 19 novembre 13
  • 7. Since then, the way we communicate has changed Nobody is using traditional mail anymore! In other words, email has outnumbered snail mail 81 to 1. martedì 19 novembre 13 People are using also Facebook messages and other digital mobile apps such as “Whatsapp”.
  • 8. The content business has been turned upside down When was the last time you purchased a CD? This chart displays the decline in the music market in recent years, it also displays how people have started to purchase music from digital. http://goo.gl/WYwbA martedì 19 novembre 13 8
  • 9. From traditional media to digital app Whirlpool EMEA has just released a new iPhone App: Wavelicious that transformed the traditional recipe book into something more engaging, cool and functional. The new Wavelicious app opens up a whole new world of microwave cooking possibilities. Discover more and take a closer look here: http://www.whirlpool.co.uk/wavelicious/index.html martedì 19 novembre 13
  • 10. from traditional selling to new selling models: The company has a warehouse-based model operating from a purpose-built picking centre, purely online without any physical shops, unusual for a supermarket. Ocado has a single warehouse in Hatfield. Totes for each order move automatically around the warehouse, and are filled by picking staff at different sections. These are then delivered using a fleet of custom-built Mercedes-Benz refrigerated delivery vans. 10 martedì 19 novembre 13
  • 11. ...so the world we live in has changed... and the challenge for companies is to evolve 11 martedì 19 novembre 13
  • 12. The old communication scheme Too many brands still behave in the same old way The way we produce and build brands and stories hasn’t changed much, but we need to rethink this classical model. Most companies still create a 30-second commercial and try to coordinate other channels Radio Internet TV Print martedì 19 novembre 13
  • 13. brand marketers simply do not spend ENOUGH online Just 12% of the budget is dedicated to Internet marketing! Even if the people trust Internet more than any other channel! Interactive Marketing’s Share of Total Ad Spending, 2009 88% OTHER CHANNEL 12% INTERACTIVE MARKETING martedì 19 novembre 13 Source: December 17, 2009, “US Interactive Marketing Forecast By Industry, 2009 to 2014” Data is for the US only. Brand categories included are Consumer Goods, and Media
  • 14. The Internet is more trusted than any other channel - companies should use it more! “To what extent do you trust each of the following sources of information” Manufacturer’s website 20% Ads on TV 16% Email update you have asked to have sent to you 15% Ads on radio 12% Direct mail 10% Brand websites 10% Email from a company or brand 9% Ads in newspapers 9% Ads in magazines 8% Social networking site profiles from a company or brand 6% 5% Brand sponsorships 4% Ads that come up when you use a search engine 3% Company blog 2% Banner ads on websites you visit 1% Base: 1985 UK adults. Source European Technographics® Benchmark Survey, Q2 2010 martedì 19 novembre 13
  • 15. People spend a lot of time on Internet! “In a typical week, how many hours do you spend doing each of the following?” 14 15 12 9 7 7 2 2006 2010 Watching TV Using the Internet Listening to the radio (offline) Reading newspapers (offline) (1) Base: 1345 UK online adults Source European Technographics® Benchmark Survey, Q2 2006 (2) Base: 3208 UK online adults Source European Technographics® Benchmark Survey, Q2 2010 martedì 19 novembre 13 2 2 1 Reading magazines (offline)
  • 16. What do we have to change in the way we communicate? martedì 19 novembre 13
  • 17. The way we build brands must evolve From this.. Internet ... to this. Radio TV Print A liquid ecosystem of different touchpoints. There is no distinction between traditional media and new media: every channel is important for its specific target . All the channels are useful to follow the customer during their “journey” (see next slide) martedì 19 novembre 13
  • 18. the customers journey This is an oriented graph that describes the journey of a user by representing the different touchpoints that characterize their interaction with the service. Casa Viaggio Lavoro Retail Lavoro Viaggio Social Casa MOBILE COMPUTER TV RETAIL PRINT RADIO OOH The secret is to be present in a relevant way on each touchpoint, fusing digital and traditional media into a unique experience. martedì 19 novembre 13 Letto
  • 19. How can we categorize the different touchpoints? With the rise in importance of social media and online PR, we are seeing more companies change their method of budgeting, reporting and investing in media. Media type Definition Examples The role Benefits Challenges The trend is towards a review of investments in the 3 main media buckets of earned, shared and paid which each give opportunities to influence customers. The POE model will the subject of a specific course coming soon. Source: Forrester Research, Inc. martedì 19 novembre 13
  • 20. conclusion: Make the three layers work together Audience Engagement Big idea • Interactive marketing is ready to lead your brand • That doesn’t mean choosing one channel over another – it means organizing all channels into a multilayered brand ecosystem 1. Engage your users with an owned media core 2. Distribute your campaign via social and mobile media 3. Reach a broader audience using paid online and offline media martedì 19 novembre 13
  • 21. THANK YOU Coming soon! The principles of Social Networking! Stay tuned for our tips and tricks including a video clip on how to use: Facebook, Twitter, Google+, Pinterest and Youtube. For questions or suggestions please write to: whirlpool_emea@whirlpool.com 21 martedì 19 novembre 13