Teleconference Ubiquitous Marketing Mary Beth Kemp Principal Analyst Forrester Research June 19, Call in at 10:55 a.m. Eastern time

2 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Theme Ubiquitous marketing must be more than just new media channels if marketers want to meaningfully connect with consumers.

3 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Agenda Media fragmentation is worse than ever. Ubiquitous marketing — more than just new media channels Connect to your customers via ubiquitous marketing. What it means

4 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Agenda Media fragmentation is worse than ever. Ubiquitous marketing — more than just new media channels Connect to your customers via ubiquitous marketing. What it means

5 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Media fragmentation is worse than ever Consumers ignore advertising. Marketers digest declining efficiency. Technology unlocks more advertising occasions, increasing the risk of disintegration. Mobile is touted as the next big thing, but consumers hang up.

6 Entire contents © 2008 Forrester Research, Inc. All rights reserved. US consumers find mobile ads annoying Source: North American Technographics® Technology, Media, And Marketing Benchmark Survey, Q Base: US adults with their own mobile phones (multiple responses accepted) “Please select the three most annoying types of ads on your cell phone.”

7 Entire contents © 2008 Forrester Research, Inc. All rights reserved. European consumers are unwilling Source: European Technographics® Online, Media, Marketing, And Retail Survey, Q “I would be interested in doing NONE of these on my mobile: download Bluetooth, free download for information or for watching ads, send SMS for discounts, take a quiz via SMS, receive commercial SMS/MMS” None of these Sweden Netherlands Italy Spain Germany France UK All respondents Base: 7,074 online European adults 100%80%20%60%40%0%

8 Entire contents © 2008 Forrester Research, Inc. All rights reserved. As are Asian consumers... Source: Asia Pacific Technographics® Survey, Q Text messages from an advertiser A mobile phone call from an advertiser Banner ads at the top of a mobile Web page Loyalty programs tied to your mobile number A sponsored audio message before a particular service, such as directory assistance Advertising in mobile games (e.g., sponsorships, in-game product placement, etc) “I am not willing to receive... ” 100 % 80%20%60%40%0% Base: 5,771 online APAC* adults Australia South Korea Japan

9 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Even in less-developed markets Source: Asia Pacific Technographics® Survey, Q Text messages from an advertiser A mobile phone call from an advertiser Banner ads at the top of a mobile Web page Loyalty programs tied to your mobile number A sponsored audio message before a particular service, such as directory assistance Advertising in mobile games (e.g., sponsorships, in-game product placement, etc) “I am not willing to receive … ” India China Hong Kong China Mainland Base: 5,771 online APAC* adults 100 % 80%20%60%40%0%

10 Entire contents © 2008 Forrester Research, Inc. All rights reserved. The many ways of ubiquitous marketing New advertising occasions: »Out of home, often context-based »Most often digital or with a reliance on new technologies »Increasingly interactive »Sometimes (very) personal

11 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketers can follow consumers everywhere Out-of-home video Out-of-home interactive Interactive outdoor Interactive events and field marketing Interactive point of sale and product Mobile marketing Digital outdoor Digital instore Live outdoor Experiential urban marketing New “media” like cars and clothing

12 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Technology offers many new advertising occasions Out-of-home video What is it?Who? Out-of-home interactive Source: Forthcoming Forrester Report

13 Entire contents © 2008 Forrester Research, Inc. All rights reserved. What is it?Who? Interactive outdoor Interactive events and field marketing Interactive point of sale (POS) and product Technology offers many new advertising occasions (cont.) Source: Forthcoming Forrester Report

14 Entire contents © 2008 Forrester Research, Inc. All rights reserved. What is it? Who? Technology offers many new advertising occasions (cont.) Mobile marketing Digital outdoor Source: Forthcoming Forrester Report

15 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Technology offers many new advertising occasions (cont.) What is it? Who? Digital in store “Live” outdoor Source: Forthcoming Forrester Report

16 Entire contents © 2008 Forrester Research, Inc. All rights reserved. What is it?Who? Experiential “urban” marketing or outdoor gaming Emerging media: cars, clothing, etc. Technology offers many new advertising occasions (cont.) Source: Forthcoming Forrester Report

17 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Agenda Media fragmentation is worse than ever. Ubiquitous marketing — more than just new media channels Connect to your customers via ubiquitous marketing. What it means

18 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Ubiquitous marketing — more than just new media channels Ubiquitous marketing relevantly connects the brand to a consumer, where she is physically and where she is in her decision-making process.

19 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Ubiquitous marketing Expands marketing Pushes intrusion aside Connects with the consumers on their terms

20 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

21 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

22 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

23 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

24 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

25 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

26 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Marketing is pushed into new directions Source: Forthcoming Forrester Report

27 Entire contents © 2008 Forrester Research, Inc. All rights reserved. What changes? Marketing becomes: »Reciprocal. »Contextual. »Successive.

28 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Reciprocal: Marketing morphs into service It takes into account the consumer’s needs. It strikes up a win-win. Messaging goes beyond advertising. Implication: Marketing facilitates the consumer experience and becomes service-oriented.

29 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Contextual: Marketing synchronizes with the environment Consumers are on the move and are actively engaging... in something else. Place becomes more than distribution in the marketing mix. Time will tick more subtly. Implication: Marketing must create receptivity.

30 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Successive: Marketing contributes to a conversation Value interactions in addition to — or instead of — impressions. Balance the media mix throughout the funnel. Build plans up from each individual’s marketing funnel. Implication: Marketing must carry an understanding of “before” and impact “after.”

31 Entire contents © 2008 Forrester Research, Inc. All rights reserved. These new channels cross the marketing funnel... Source: Forthcoming Forrester Report

32 Entire contents © 2008 Forrester Research, Inc. All rights reserved.... and often fill the middle ground Source: Forthcoming Forrester Report

33 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Agenda Media fragmentation is worse than ever. Ubiquitous marketing — more than just new media channels Connect to your customers via ubiquitous marketing. What it means

34 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Should you be in ubiquitous marketing? Ten key questions to ask yourself It’s still emerging, but some people have a toe in the water. Ubiquitous channels are not quite ubiquitous yet.

35 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Plan for integrated ubiquitous marketing Think situation and target, rather than media channel. Build in interactivity and response. Prefer interaction to push.

36 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Agenda Media fragmentation is worse than ever. Ubiquitous marketing — more than just new media channels. Connect to your customers via ubiquitous marketing. What it means

37 Entire contents © 2008 Forrester Research, Inc. All rights reserved. What it means Increasing consolidation, connection, and interaction between the channels Media planners will need to rethink repetition and begin to plan across media. Digital out of home and mobile will become the new reach medias but will be anything but mass. Marketers will want to fit the back- and front-end data systems together. Digital technologies will push social media into the street and into stores. Consumers will play the system by hiding, masking, and managing their identities.

38 Entire contents © 2008 Forrester Research, Inc. All rights reserved. Mary Beth Kemp + 33 (0) Thank you