1. 1 Three Key Strategies Rex Briggs, Principal Marketing Evolution rex@marketingevolution.com

2. 2 Consumer media usage has shifted dramatically in the past few years Significant growth in the numbers using the Internet Substantial increase in percent of time spent online Arguments for updating the mix

3. 3 “When I point, look where I point, not at my finger.” Warren McCulloch, noted neurophysiologist and father of computational neuroscience

4. 4 These shifts change the effectiveness of the old marketing mix

5. 5 Three insights that reveal effective and cost efficient approaches to Online Marketing

6. 6 Being Online is about bringing your brand message to consumers… Insight #1

7. 7

8. 8 The power of being reaching out to consumers

9. 9 Engage the User in a Meaningful Way

10. 10 Sell to Decision Maker

11. 11 Being Online is about bringing your brand message to consumers… Leverage advertising, sponsorships, email and other outbound efforts

12. 12 Economics of Websites versus sponsorships Several in-depth economic analysis of website vs. sponsorships have revealed a powerful cost advantage to sponsorships strategies

13. 13 Economics of influencing brand image Website versus advertising Sponsorship Reach Strategy 360* people w/positive brand association 10,000 3.6pt increase 500 Clickthroughs to website* 10,000 38 people w/positive brand association 7.5pt increase 5% CTR Clickthrough Typical Case

14. 14 Online advertising Online ads increased key perceptions by an average of 2.7 points Novell

15. 15 Comparison of website versus ad strategy Upfront investment: Under $10,000Under $10,000 Media investment: $990,000 ($50 CPM freq 4)$990,000 ($50 CPM freq 4) Reach potential: 70% (5,000,000) Effect: 2.7pt gain (135,000 people) Cost per person effected $7.40 Upfront investment: Approx $1,500,000 Media investment: $500,000 ($50 CPM freq 4) Website reach : 5% (300,000) Effect: 7.2pt. gain (21,600 people) Cost per person effected $92.60 Target: 7 million IT decision makers/influencers for corporate servers

16. 16 Sponsorships are typically 3 to 5x more cost efficient compared to clickthrough visits to your website CRM approach

17. 17 Sponsorships work better

18. 18 The key to optimizing sponsorship value is more than brand linked experience… …it is information gathering for re-marketing …it is information gathering for re-marketing Insight #2

19. 19 Brand awareness increased 28% and intent to purchase increased 5% (Source: E-valuations, 2000) Web event case example

20. 20 Loyalty program through a portal For existing customers, loyalty programs can impact repeat purchases and brand loyalty Leverage existing customer databases to reward loyal customers Personalized sites, product tie- ins (frequent participants in sweepstakes, contests and programs earn merchandise) Track ROI through number of repeat visits, increase in offline purchases, opinions through online surveys

21. 21 One critique: Put your logo where it is visible

22. 22 “Put your logo where it is MOST visible” But, did they go too far?

23. 23Coca-Cola

24. 24 Key best practices Tie Sponsorship programs to your Online advertising server These programs can in and of themselves drive sales volume… But they are also a source for valuable information about key consumers Set-up the program so that you can segment your consumers (by product type, and other relevant dimension). Link the ad server on the segmentation page so that all advertising on other web pages can recognize the type of consumer, and send the appropriate advertisement

25. 25 Insight #2 Use sponsorships to learn about your consumers AND remarket to key targets

26. 26 Loyalty Program Targeting consumer Web Browser Ad Server Web Site Coors Universal Segment Cookie

27. 27 Time passes Over the next several months, Coors can target based on segment April May June July August September October NovemberDecember

28. 28 Using Loyalty programs to target the right consumers consumer Web Page PUT AD HERE Web Browser Web Site Ad Server The Twins miss you Coors Light Segment Cookie

29. 29 Using Loyalty programs to target the right consumers By using the loyalty program to segment consumers (and link to ad server) you can… Deliver the right ad message, to the right consumer Thus maximizing the value of the advertising opportunity to get the MVC the relevant message

30. 30 Timing your communication to you MVC can will produce better results Insight #3

31. 31 Surround the consumer with your message

32. 32 Time of day targeting

33. 33 Purchase preference is influenced by time of day Lunch

34. 34 The nature of your communication may change over the course of the day The products you promote may vary over the course of the day Leverage Online’s natural dayparting strengths

35. 35 Closing thought from XMOS Have you re-evaluated your marketing mix? Form a working group Include key brand, agency and measurement team members 1. Examine how online fits into delivering coverage to your target 2. Measuring Online side-by-side with Offline in terms of relative effectiveness

36. 36 “When I point, look where I point, not at my finger.” Warren McCulloch, noted neurophysiologist and father of computational neuroscience

37. 37 TEST, LEARN, EVOLVE. rex@marketingevolution.comConclusion