Keeping It Real

Capture the Momentum…But Keep it Real: 

Capture the Momentum… But Keep it Real San Diego North CVB March 29, 2007

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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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Apple 1 1975: 8 mb ram Price: $666.66 1,000,000 instructions per second

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HP 110 1984: The first laptop computer. Cost: $2995. Weight 8.5 lbs. 5,330,000 instructions per second

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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

The “Big Three”: 

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

Buckle Up…: 

Buckle Up… Moore’s Law: Every two years the number of transistors on a chip should double IBM announces they’ve 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!

Portable, video, web, ads, texting, camera, maps, shopping, song identity and…voice: 

Portable, video, web, ads, texting, camera, maps, shopping, song identity and…voice

Going Mobile: 

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

Cell Phone: “Virtual Wallet”: 

Cell Phone: “Virtual Wallet” Check in: Luxor hotel…when you land Get coupons and offers when you wander off property Pay for a burger: McDonald’s in Japan Various: 2006, 2007

Third Generation Fiber Optics: 

Third Generation Fiber Optics 10 trillion bits per second through one strand of fiber… Equivalent to 1,900 CD’s or 150 million simultaneous phone calls --every second… …it will triple every six months for the next 20 years Source: Alactel and NEC

Buckle Up: 

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

Web 2.0: 

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

Overwhelmed Yet?: 

Overwhelmed Yet? 115 deodorants 303 women’s fragrances 187 breakfast cereals 26,983 new products introduced in 2004

Message Overload: 

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 yesterday’s 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

Point of Purchase Media: 

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

Now Who Didn’t See This Coming…: 

Now Who Didn’t See This Coming… Kroger is testing this concept in Midwest…

“Paid Media2”: 

“Paid Media2” AOL has begun to advertise to it’s paid subscriber base Advertising is planned for cell phones and video games WSJ 12/06

Consumers are Fed Up…: 

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

The Tipping Point…: 

The Tipping Point… “…the fortunes of many of America’s 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

The Fading Age of Mass Marketing: 

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

Time Becomes Less Timely: 

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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"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 The Tipping Point

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Marketing 4.5 UDMR

A Paradigm Shift: 

A Paradigm Shift User Defined Marketing Relationship (UDMR) “Pull” not “Push” Personalization Consumer Choice

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“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 Choice Breeds Trust

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"We can no longer measure success in keeping up…what we need is a mindset shift….from ‘telling and selling’ to building relationships” Jim Stengel, CMO P&G 2007

Marketing 4.5Keeping It Real: 

Marketing 4.5 Keeping It Real The Human Touch…

We Learned A Lot in School: 

We Learned A Lot in School That Emotion Rules the Day Relationships Are Two Way Think Outside the Sandbox

The Triune Brain: 

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?

Relationships in 11th Grade : 

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

11th Grade and E-mail: 

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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Brenda Thompson, Bethesda MD KJ Brand Advocate “The Kendall Jackson” A flawless seven carat, canary yellow diamond

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Think Outside the Box

The Art of the Auction: 

The Art of the Auction Christies showed scissors. Sotheby’s showed paper… Prize $20,000,000 consignment!

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Use old ideas in New Ways Keeping it Real

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Five “Momentums” and How to Keep Them Real

E-Mail is Still King: 

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

Radio Shack “Lays” It Out: 

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

Words of Engagement: 

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

Personalization: Consumer Preferences: 

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

Personalization: Content: 

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

Personalization: 

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

Personalization: Date Night: 

Personalization: Date Night E-mails best open day…. Friday ClickZ 2006

Social Networking: 

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

Social Networking: 

Social Networking MySpace.com Facebook.com YouTube.com Bebo.com

Guess Who’s Doing It?: 

Guess Who’s 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

Guess Who Else Is Doing It?: 

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

John Locke “Brand Advocate”: 

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

Now That’s a Twist…: 

Now That’s a Twist… New Line Cinema has created a page on You Tube to allow users to create “confessionals” to promote the film “23”

Guess Who’s Coming to Dinner ?: 

Guess Who’s 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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“There’s a shift in business to create options for people where consumers take away power from marketers” J. Walker Smith, President Yankelovich Partners 2007

A Good Place to Pitch…: 

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

Second Life: Virtual You: 

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

Second Life: Virtual You: 

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

Really Simple Syndication: 

Really Simple Syndication The technology that fuels blogs, news sites, My Yahoo, “Ding” Virtual pipeline sends content through a “feed” to a user’s “reader” Currently 75 million users worldwide Vista includes RSS Sources: Jupiter, Pew Internet, Neilsen Net 2005 R S S

Really Simple Syndication: 

Really Simple Syndication Traditional RSS: all content is read by all users For example: Our Lowest Fares to every destination

RSS: Personalized: 

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

Podcasting: 

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

Podcasting: 

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

Search Engine Advertising: 

Search Engine Advertising SEO and SEM Pay per click invented in 1996 40% of all on-line ad revenues Next Generation: Pay Per Action

Search Optimization: 

Search Optimization Don’t make consumers search, after they’ve “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”

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…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 horse’s behinds…

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The space shuttle SRB’s were built by Morton Thiokol…which is in Utah The SRB’s basic design was determined by the width of the railroad tunnel through which it would have to pass as it was shipped to Florida

In Summary…: 

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

Horses Asses Make Rockets Fly: 

Horses Asses Make Rockets Fly

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…and no technology will ever replace the human touch

“Capture the Momentum But Keep it Real”San Diego North CVB Annual MeetingMarch 29, 2007: 

“Capture the Momentum But Keep it Real” San Diego North CVB Annual Meeting March 29, 2007