Foundations of Web 2.0 Marketing

Let’s Revisit: What is traditional Marketing all about? What is different about Web 2.0 Marketing?

21 ST Century Marketing Challenges FRAGMENTATION!! Attention Demand

Attention Economy Fragmented media and channels Consumers tuning out or completely skipping messages 61% of consumers say that marketers and advertisers do not treat them with respect 69% are interested in products or services that would help them skip or block advertising Poor Information/Metrics on effectiveness

Fragmentation makes… reaching keeping the attention of your customer ever harder.

As a clever marketer, ask yourself: What am I asking consumers really when I build a community? …when I ask for consumer production? …when I ask for participation of any kind?

Long Tail (Chris Anderson) Niches are Riches

What is “Natural Demand”? The “Head” of the Demand Curve: Pre-Internet, old economy firms turned out a small number of “hits” or blockbuster products The “Tail” of the Demand Curve: Internet-era, new economy firms offer a broader range of niche products.

The Head Prior to the Internet, production, distribution, and consumption focused on a few hits because of scarcity of resources: there simply was not enough time, space, or money for businesses to offer everything for everybody. The 80/20 rule was the dominant model—20 percent of a business’s products accounted for 80 percent of its sales (and usually 100 percent of its profits).

The Long Tail In markets where technology dramatically reduces the costs of reaching niches through one or more of these powerful forces: democratizing the tools of production greatly expands the universe of content democratizing distribution greatly reduces the costs of consumption connecting supply and demand by lowering search costs of finding niche content drives demand down the tail.

Is there a Long Tail? hosts more than ten thousand reviews and its Web traffic statistics show that even the most popular film represents less than 1 percent of their business. In June 15, 2006, "The Da Vinci Code" and "Brokeback Mountain" were tied at 0.8 % of page viewsThe Da Vinci CodeBrokeback Mountain the next most requested reviews in 2006 have been for "V for Vendetta" (0.7)V for Vendetta "X-Men: The Last Stand" (0.6)X-Men: The Last Stand "An Inconvenient Truth" (0.5).An Inconvenient Truth The lesson: People are curious about a lot of different movies."

Is there a Long Tail? The Long Tail of Holiday Music. eMusic has 1,226 holiday albums in the catalog 1,128 have been downloaded over the past month. That's 92% of the catalog! Source: Digital Audio InsiderDigital Audio Insider

To Summarize: In virtually all markets, there are far more niche goods than hits The cost of reaching those niches is now falling dramatically. The demand curve flattens. There are still hits and niches, but the hits are relatively less popular and the niches relatively more so. All the niches add up. Although none sell in huge numbers, there are so many niche products that collectively they can comprise a market rivaling the hits. The natural shape of demand is revealed. That shape is far less hit-driven than we have been led to believe.

21 ST Century Marketing Challenges Twitter, ‘nough said…

Moment of Honesty Do we really have a definition of Web 2.0? If I were to do one this is probably it: “Maybe it is a ‘new’ Internet and if it is, it is more about concepts than definition. In my view, it centers around: freedom of expression horizontal innovation enabling openness, connectivity, and exchange of information (most importantly?) respect of individuals as contributors

Group Exercise What do you consider Japanese Airline’s most pressing online marketing challenge today? What do you consider Matrix and Crew BOS Ltd’s most significant online marketing challenge in the (near to medium) future? Take a page from the Youtube-revolution and develop one specific campaign for one specific objective.

Of Influentials and Search Engines Bloggers Podcasters Videobloggers Sneezers Digg Technorati del.icio.us Flickr Google

Interruption Does Customer Interruption still work?

Web 2.0 Communication shows two things: Consumers love to interrupt! Consumers love to talk!

Changes your Relationship From ‘selling to customers’ to ‘hosting guests’ From ‘controller’ of communication (teller of stories) to ‘enabler’ of communication (resource for stories told by others).

Digital Communication Map Consumer Marketer Consumer

Digital Communication Map Consumer Marketer Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

Digital Communication Map Consumer Social search Third party and retailer evaluation sites (e.g. epinions.com) Blogs Wikis Social networking sites Marketer Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing Marketer Consumer

Digital Communication Map Consumer Social search Third party and retailer evaluation sites (e.g. epinions.com) Blogs Wikis Social networking sites Marketer Link building News releases Blogs/Online forums Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

Digital Communication Map Consumer Search Company-owned product evaluation sites (beta) Blogs/ Online forums Feedback sites Social search Third party and retailer evaluation sites (e.g. epinions.com) Blogs Wikis Social networking sites Marketer Link building News releases Blogs/Online forums Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

In your Groups: Work together to fill the quadrants for the company assigned. Describe digital communication strategy? Analyze S&Ws What should it do? Consume r Marketer Consumer Nike, SunLife Insurance, Starbucks

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