The Australian Interactive Media Industry Association (AIMIA) has released its 2009 AIMIA Digital Services Index™ online survey report and it indicates that companies intend to increase their use of digital advertising this year. AIMIA considered this report to be a crucial update to the inaugural report that was released in November 2008, considering the current economic climate. 145 responses were gathered from a cross section of organisations and government bodies. The report's findings included:

• That most organisations intend to increase their level of investment in digital in 2009. This is particularly the case with larger organisations.
• The shift to digital is at the expense of other traditional advertising, with more than half (54%) of organisations surveyed saying they will increase the share of their total marketing spend allocated to digital in 2009.
• To achieve this, most organisations intend to increase their use of external suppliers of digital services, with only 9% of respondents intending to decrease their external spending on digital services.

The 2009 AIMIA Digital Services Index™ report is released by the AIMIA, in conjunction with Hyro Limited and IBM Australia. You can find out more about the report by visiting aimia.com.au

I read in the news the other day on the importance of companies and brands blogging and as I was reading the stats, the Andy and Lou characters from Little Britain were his catchphrase is ' I want that one' popped into my head, here's a quick snap shot. 'Of the frequent blog readers around 52% said that blogs played a role in deciding a purchase; 21% claim that blog content has influenced on buying a product or service and around 40% have acted upon the ads in blogs.

Australia day is here for 2009, and a good chance to review the way digital has brought about change to the way we live. Here are some key events from 10 years ago in 1999 - Mark Taylor was the 1999 Australian of the year - Companies spent millions protecting themselves from the Y2K bug - Google moved from their garage to their first office with a search market share of < %1 - George Bush criticised President Clinton on Kosovo saying "We need an exit strategy before going to war" Dial-up connectivity was what we used for internet connectivity, making "doing internet" a task that was performed daily or weekly. The latest ABS statistics, show that at June 20008 we had 7.23 million internet subscribers which according to Neilson figures reflect that 16.3 million Australians are online or about 80% of the population. 4.3 million Australians now use Facebook or 25% of the internet population. Consuming media online 13.7 hours / week in March 2008 surpassed out weekly TV usage, at 13.3 hours  according to Neilsen. From modest beginnings, blog growth continues with an estimated 440,000 bloggers in Australia. We are indeed well and truly living in the Digital age, with historical information and events now readily available for consumption, such as this historical coverage of Australia Day. Whilst Australia has a diverse range of cultures, I think we are becoming more nationalistic.  10 years ago it wasn't that common to see Australia flags, and now it seems we are proud to show them, with temporary Australian tattoos helping the national expression.The Australia Day Facebook page, launched last year has an impressive 52K fans. Embracing online content this year, the Australia Day organisation is running an Advance Australia Dare campaign - a consumer generated video contest inviting people to submit videos of themselves. You can even find some great BBQ or  Australia day recipes online. The digital age has certainly changed things, even radically changing the way governments interact with citizens.  Getup.org in Australia is on e such example which has over 300K members.  Not only do we celebrate Australia Day this week, but globally change is upon us with the inauguration of President Barack Obama. There are lots of Australia Day events, which will generate there own digital memories. I trust you enjoy your Australia Day, Ian Farmer

Here’s a list of 10 Digital Marketing predictions for 2009.

1. Mobile apps
Goldman sachs estimates 210 million  iphone apps will be dowloaded by 2010. Much of this will be monetized by the emerging mobile ad market, e.g. www.admob.com

2. Video streaming from mobile
e.g. www.qik.com www.kyte.com www.ustream.com
Soccer mums through to corporate presentations will be beamed from mobiles directly to the internet

3. Syndication and widgets
Content syndication will become more mainstream
Value will emerge in personalized aggregation services
Rss will start to include ads (most rss feeds are ad free at present), this will finally convince the major publishers (news sites) to publish full feeds rather than only the article teaser.  e.g. Springwidgets.com/ and Sproutbuilder.com/

4. Location based services
Thanks to the GPS functionality on the Iphone and other smartphones, the use of location based services will rise turning the yellow pages directory listing businesses on their head.  e.g. iloop.com and brightkyte.com, but I expect facebook and myspace to integrate location based services in 2009.
Social recommendations will add value creating a mashup of recommendation & discovery services. e.g. tribesmart.com

5. Social media matures        
2009 will see social media mature as brands, organisations and politicians read about why Obama’s campaign was so successful.

6. Integrated campaign metrics
The holy grail of marketing .. will get one step closer as technology starts to allow a more integrated metrics reporting of campaign media.  This will accelerate the move to digital and digital agencies will start to play the lead role in marketing initiatives & strategy.

7. Personalised Knowledge Discovery
Recommendation engines and personalisation will start to produce some value as people learn about needs they didn’t know they had.
Attention spans will overflow forcing a change in information distribution.  E.g. Twitter will be used for what I call SPR or the “short press release”.

8. Attention Surplus Disorder will be coined as a condition that affects a growing number of people.  Media saturation will start to drive a market for a growing range of filtering services, many of them specialised on a niche topic.

9. Opinion fraud will become common place with companies paying for positive recommendations for their products and services.  Traditional media will continue to publish the worst of these stories, but even that will not be enough to discourage a growing number of companies into this activity.

10. Life Streaming will explode as devices simplify the ability to record experiences. Examples Socialthing.com/ (recently acquired by AOL) and Friendfeed.com/ 

All in all 2009 promises to be an exciting time for innovation and despite the economic climate, I believe that emerging tools will continue to prosper.

Social scientists refer to the craving for online contact as "Ambient awareness". They liken the feeling to being similar to being physically near someone and sensing their mood by their body language, mood and comments. I think the desire for ambient awareness is what has driven the popularity of Facebook, which through it's provision of the news feed feature, is supplying a stream of up to the minute updates on what your friends are doing. In many cases this feed substitutes the need for email.  Twitter is another service which streams snippets of thoughts into a single stream. Whilst the craving for ambient awareness of our social graph (or friends list) might be strong, it is surprising to me that the use of RSS feedreaders to supply a personalised interest based news feed is still quite low. Feedreaders such as Feed Demon, Newsgator are free and relatively easy to setup and establish a personalised "Interest based ambient awareness channel". Whilst adoption of these services is growing, their usage is still mostly contained to the early adopters.  Steve Rubel at Micropersuasion points points to Forrester research that suggests that feedreader adoption is at 11% up only 2% on what it was 3 years ago. This has always been surprising to me, and led me to consider some possible reasons. 1. Apathy.  Much like programming the VCR, setting up a personalised RSS folder is one of those things that people just can't be bothered setting up. 2. Ignorance. Many people are not aware of the benefits that can be gained from doing this, which include a faster and deeper knowledge acquisition of your interest area, perhaps at the expense of general media consumption. 3. Trainers. It takes less than an hour for most people to acquire the skills needed to do an initial setup and learn how to maintain an "interest based ambient awareness" channel. However there is a lack of resources who have the knowledge and inclination to spread this around. So what needs to happen to bring these services into the mainstream? 1. Mainstream publishers will start to provide "niche ambient awareness" channels.  News.com.au in Australia recently launched a new format which allows some degree of personalisation, and yet it falls short of what can be done with a feedreader.  Personalised start pages such as Pageflakes, Netvibes and iGoogle also provide simple tools which will drive the use of "one click" niche interest feeds. Facebook and other social networks will continue to expand their deployment of "interest based ambient awareness" channels via groups and discovery tools.  Take a look at Radus for a new example that fits this description. 2. Emergence of the RSS salesperson. Too many of the RSS early adopters are what Malcolm Gladwell would refer to as "Mavens", immersed in a deep knowledge of a certain area, and without the inclination to evangelise their discoveries to the world. I have seen the adoption of personalised feeds spread quickly when a connected salesperson evangelises the benefits. 3. Increased demand for customised social Media monitoring. Working in this area, I am seeing first hand the continued demand to unlock insights that are often hidden from mainstream media services. One of the main tools that I use for this is my feedreader. As the demand increases, I think this will encourage the training of resources in the creation and use of "interest based ambient awareness" channels. We all have a passion or interest. I would challenge you to discover for yourself firsthand the benefits of getting more deeply engaged through the creation of an "Interest based ambient awareness" channel.

Surely not I hear you say, well here are some facts.

Nine out of ten organisations:

• Do not have a well-articulated digital strategy
• Endorse projects without a defined objective and with no consideration of how they’re going to measure what they put in place
• Have projects that are being led by staff with limited experience in what’s needed to deliver a successful digital project
• Believe that delivering the technical solution is the end game and do not consider ongoing management and development.

How can this be?

In the corporate setting, we have been investing in the web for nearly 15 years now, but it seems only a few organisations are learning what it really takes to succeed. It’s no wonder management are still not giving their digital program the investment boost it needs.

So what can you do? How can you make sure your next digital project has the success it deserves? Here are 7 steps that you can take to turn your digital program around and start delivering real outcomes:

1. Take a look at your business plan Find out how your digital program is going to articulate to your overall business plan. Find the links and use them in your communications. If you can’t link it, well sorry, I am not sure why you’re spending time on it. However, it doesn’t necessarily need to stop there, see point 2.
2. Dare yourself to think outside the square The web, mobile devices and the like are redefining the way we market our products, communicate to our customers and do our work. Replicating current ways of doing business is just not going to cut it. Make sure you critically review your approach to marketing and advertising - there’s a new player in town and it is not going away. *Nielsen research recently reported that time spent online has now surpassed TV.Our own research is telling us that 63% of consumers would prefer to perform activities online rather than over traditional mediums i.e. phone and face to face.
3. Research There’s a new generation of consumers coming through, to some of us they might as well be from a different planet. Now is the time to review your customer base and their habits. Don’t assume you know what they want – it can be costly. Getting your ideas and solutions to market quickly and having your market test it and provide feedback is a well-recognised product development technique. This may require you to get a little uncomfortable, but done properly, you’ll be well ahead of the curve.
4. Build a vision and garner support Without support, you’re pushing the proverbial up a hill. Identify the stakeholders from across your business that are likely to benefit from a digital program and get them involved. Create a vision that will capture the imagination of those with influence and power. Make sure it pushes the boundaries in exciting new areas. However, keep it practical and achievable with short term goals and expected returns. Those with the purse strings will need to see this well articulated. You may need to invest a few dollars here – there’s nothing more effective than a well thought out proposal and considered pitch.
5. Commit the team No, part-timers just won’t cut it I’m sorry. Why would you invest hundreds of thousands or millions without a dedicated team and commitment to grow it? You need a strong disciplined leader and a mix of skills aligned your plan. Make sure that Marketing and IT have strong representation, and in particular, you must commit resources to interpreting the data that comes through the various channels – a data analyst is a must. Consider a strategic digital partner because they bring experience. They’ve done this before, they have capacity and if they’re any good they’ll add a mix of business, technology, research and marketing skills to your team.
6. Establish a measurement framework How are you going to know whether your sites or campaigns are working for you? How quickly can you interpret the data and make intelligent decisions from it. This in my view is the number one failing of digital programs and activities. This is the age where we can clearly define return on investment from our marketing dollar, and more so, what’s working and what’s not. How does your measurement framework stack up?
7. Be patient and commit to the plan We’re all pretty much the same, we want things now. But to get widespread uptake you’ll need to allow some time for things to gestate and develop. If uptake is strong initially, that’s satisfying, however in my experience, it won’t be long lasting. Use this as an opportunity to get a good sense of what’s working and what’s not. Openly solicit feedback from your market and respond accordingly. You may in fact get a double whammy – a better quality product and a loyal customer!

So there you are; 7 steps to get your digital projects on track. Focus on getting a plan where you can measure the results and return for your organisation, get the right people involved and monitor and optimise continuously based on results and feedback. I think you’ll be surprised at the outcomes and delighted with the budgets that may flow as a result.

Good luck!

Greg Muller

Managing Director

E: greg.muller@bullseye.com.au

* March 2008 — The, Nielsen Online research study found that Australians were spending around 13.7 hours per week surfing the ‘net, while average television viewing was around 13.3 hours.

Technorati launched their State of the Blogosphere 2008 study today, and it reveals that Blogging is still a very active medium.  The full study will be released in 5 daily posts, but today's post includes some useful overall blogging statistics. - 133 million Blogs indexed since 2002. - 7.4 million Blogs had posts in the last 120 days. - 1.5 million Blogs had new posts up in the last 7 days. - 900,000 Blogs had new posts in the past 24 hours. - 76,000 Blogs have a Technorati Authority of 50+.

Global Snapshot of Bloggers

Demographics	U.S. Bloggers (N=550)	European Bloggers (N=350)	Asian Bloggers (N=173)
Male	57%	73%	73%
Age
18-34 years old	42%	48%	73%
35+	58%	52%	27%
Single	26%	31%	57%
Employed full-time	56%	53%	45%
Household income >$75,000	51%	34%	9%
College graduate	74%	67%	69%
Average blogging tenure (months)	35	33	30
Median Annual Investment	$80	$15	$30
Median Annual Revenue	$200	$200	$120
% Blogs with advertising	52%	50%	60%
Average Monthly Unique Visitors	18,000	24,000	26,000

Who are the global bloggers?

• Two-thirds are male
• 50% are 18-34
• More affluent and educated than the general population
  • 70% have college degrees
  • Four in ten have an annual household income of $75K+
  • One in four have an annual household income of $100K+
• 44% are parents

Gartner has released some new research which describes how various people engage in online communities.

Using the term "Generation V", the research confirms that segments do not relate to age, gender, geographic location or social class, but instead are grouped by their interactions and behavioural usage preferences of digital media consumption.

The 4 levels of engagement in Gartner's model are creators, contributors, opportunists, and lurkers.

 

The report suggests

• Up to 3% will be creators, providing original content. They can be advocates that promote products and services.
• Between 3% and 10% will be contributors who add to the conversation, but don’t initiate it. They can recommend products and services as customers move through a buying process, looking for purchasing advice.
• Between 10% and 20% will be opportunists, who can further contributions regarding purchasing decisions. Opportunists can add value to a conversation that’s taking place while walking through a considered purchase.
• Approximately 80% will be lurkers, essentially spectators, who reap the rewards of online community input but absorb only what is being communicated. They can still implicitly contribute and indirectly validate value from the rest of the community. All users start out as lurkers.

“Companies should plan to segment all four levels in the community - each has significant business value,” said Adam Sarner, principal research analyst at Gartner. “Differentiation exists between sectors and industries. Marketers with strong brands attract more creators. Certain industries, such as insurance, draw more lurkers.”

Successful communities support the needs of all four segments, and my research suggests that as communities grow, the percentage of each segment will remain relatively consistent.

Fleishman-Hillard Inc. and Harris Interactive have published an excellent white paper which examines how the internet influences the modern consumer. The study is titled  “Digital Life Index Study”  and highlights how the internet influences shopping behaviours, making particular comparisons between the UK, Germany and France. 4 key insights of the study were:- Digital Influence: The Internet is by far the most important medium in the lives of European consumers — but companies are underinvesting in that influence. Behavioural Framework: Consumer use of the Internet falls into five distinct classes of behaviours. Research, Communication, Commerce are the 3 more established behaviours. In the expanding web 2.0 environment Consumer Generated Content is rapidly rising in importance. The 5th behaviour is consuming Internet content on Mobile devices. Smart marketers will clearly understand the mix of behaviours that is most critical to their business — and formulate integrated campaigns to address that mix. Consumers use the Internet in different ways to make different decisions. The differences are driven by the impact of the decision on their lives and the range of available choices. e.g. Buying commoditised items like airline tickets are made with less consultation with online consumers than choices that have higher personal impact such as healthcare, or major electronic purchases. Consumers see the clear benefits of the Internet to their lives, but they still have strong concerns that need to be addressed. Clearly consumers recognise the value of the internet as a medium, but are also voicing concerns over internet safety.

Here are some notes I took from Brad Jakeman's session which described the current lack of focus on getting the brand promise or big idea right.

Complicated communication channels as media became more fragmented and diverse.

• - There’ve never been more communication channels available and yet we are
• - So obsessed with the channel (the how)
• - And have lost focus on the Content (the what)

“The step that precedes action is Engagement”

 US Stats – in 3 years time

• US$6.9 billion will be spend on marketing and social Networking site.
• US$2.9 billion mobile marketing
• US$7.1 billion online video
• Search will triple to $25 billion.

 Consumer Shift

Then	Now
Passively	Actively
Viewing	Using
Listening	Trialling
Reading	Experience
Passing	Playing
Absorbing	Engaging

 

We’re not spending enough time developing interesting , attractive content.

• 98% brand messages are not effective.
• Brands now need to participate rather than enforcing themselves on it.
• The average consumer is exposed to 2,904 messages each day.
• Of those 2905, they pay attention 279
• Of those 123 are from Read, Listen or Watch
• 30 of those are disliked, and of the 83 that are left
• Only 55 are liked and remembered. .which is a 98% attrition.

By not focusing enough on the what, we have allowed consumers to view what we do as pollution

I also liked this quote which suggested that ROI really stands for “Removal Of Imagination”

We still operate by pushing messages at our consumers rather than pulling them toward great ideas.

• TV commercials lost to DVR zapping

The Big brand idea is greater than any cool ad and that idea should govern everything we do in all media channels.

He suggested that by 2010, 18% of ads would be screened out.

He then showed the this years Superbowl ads.

And commented that whilst these were great one-off ads, where’s the big brand idea?  At a cost of ~ $2.4 mm all they got was 60 seconds.

Big idea – an idea that’s big enough to drive a brand’s behaviour and language across all channels.

- I got the feeling he was talking about the Brand promise rather than an individual campaign idea.

• It should be Media agnostic – can be executed across all consumer touch points.
• Proprietary and unique – it is based on a truth about the business and its core customer.
• It would sound disingenuous when another brand has said it before.

JETBLUE case study

• The big idea “Bringing humanity back to travel”
• Which drove out every function and experience that was delivered to their audience.
• They used the “JetBlue” storyboard which was like a cockpit with webcams to record consumer stories
• Airline horror stories is a very engaging topic that people like to talk about .. so this tapped into the positives and the consumers embraced it

5 lessons

1. Shut up & listen – Start with the consumer. A big brand idea can’t be created in isolation of the consumer.
   85% jetblue consumers – will recommend jetblue a friend.
2. It has to start at the top – The big brand idea has to be embraced by the CEO because it has to drive all facets of the business.
3. Everyone in the company is a marketer – Everyone in the business has to be accountable for delivering the brand promise.
   (“invertise before advertise” which I thought was a great quote and refers to making sure your employees understand the big idea before the general public)
4. Do as you say! Mass collaboration enabled through technology
5. Insulates you from operations e.g. Feb 14, 2007 – Jetblue Disrupt most flights – 17,000 flights were cancelled.
   but despite this disaster consumers forgave JetBlue due to their loyal fan base, and the transparency with which they handled the crisis.

Conclusions

Media is becoming more complex but marketing is not – focus on some basic principles.

• Start with finding the unique role your brand plays in your customer lives
• New media is very important but don’t let it become the shiny object.
• Be rigorous and relentless in driving the idea in every single thing you do.
• Try zagging when everyone else is ziggling. – Know what your competitors are doing, but don’t be afraid to be different.  Create something that is unique. And make sure the content is superb.