1. © Copyright 2006 Clement Mok Web 2.0 > Agency 2.0 > Design 2.0 Clement Mok Free-agent Sapient Global Director of Design Planning May 16, 2006

2. © Copyright 2006 Clement Mok I.An overview of the challenge II.A way to think about the problem III.Agency 2.0 Web 2.0 > Agency 2.0 > Design 2.0

3. © Copyright 2006 Clement Mok “ “ FUNNY SHIT

4. © Copyright 2006 Clement Mok

11. Top-Line Market Summary Growth » Projected $22B market by 2008 with a 14% CAGR » $450M analytics market posting 50% CAGR with very few non-vendor participants $250B

12. © Copyright 2006 Clement Mok Top-Line Market Summary Focus of Growth » Interactive agency acquisitions by traditional ad agency holding companies continue – 45% of AdWeek’s Top 50 Interactive agencies are owned by holding companies » 96% of marketers agree that technology is vital to the success of marketing » 63% of marketing technology decisions are made by marketers » Top three technology themes for marketing departments 1) customer info systems 2) better online experience 3) better multichannel experience

13. © Copyright 2006 Clement Mok Impacts of Changing Market » Business leaders are: 1. Unsure what dials to turn to drive desired impact and insights 2. Forced to justify all expenditures and drive efficiencies 3. Clambering to find news ways to connect with and maintain consumers

14. © Copyright 2006 Clement Mok Impacts of Changing Market » Consumers are: 1. Shopping and engaging companies via multiple channels 2. Developing ADD and more control over receiving of messages 3. Not motivated by any single touch-point

15. © Copyright 2006 Clement Mok “ “ SHIFT IS HAPPENING WITHOUT THE HYPE

16. © Copyright 2006 Clement Mok CONSUMERS HAVE CHANGED OVER THE YEARS (some designers, marketers and agencies still think and behave as if it’s 1975)

17. © Copyright 2006 Clement Mok “ “ POWER TO THE PEOPLE

18. © Copyright 2006 Clement Mok “broadband is beautiful” “we’re smarter than advertisers think” “I relate to this brand” “I do my own research” “don’t sell me, engage me” “free to choose” “don’t tie me down make it mobile” “I Tivoded it”

19. © Copyright 2006 Clement Mok Blog Podcast Google Yahoo Microsites Cell phones Ebay

20. © Copyright 2006 Clement Mok

21. Pre-Digitalization Product Development Delivery of Products and Services MarketingSales

22. © Copyright 2006 Clement Mok Web 1.0 Product Development Delivery of Products and Services MarketingSales Internet Digital Media BackOffice IT

23. © Copyright 2006 Clement Mok Web 1.5 Product Development Delivery of Products and Services MarketingSales Internet Digital Media BackOffice IT Web Analytics Tools Experience Modeling Experience Design CRM/CMS

24. © Copyright 2006 Clement Mok

27. Effects of Web 2.0

28. © Copyright 2006 Clement Mok Web 2.0 Product Development Delivery of Products and Services MarketingSales Internet Digital Media BackOffice IT Web Analytics Tools Experience Modeling Experience Design CRM/CMS

29. © Copyright 2006 Clement Mok Web 2.0 » Web 1.0 » DoubleClick » Ofoto » Akamai » mp3.com » Britannica Online » Personal Websites » eVite » Domain name speculation » Page vies » Screen scraping » Publishing » Content Management Systems » Directories (taxonomy) » Stickiness » Web 2.0 » Google AdSense » Flickr » BitTorrent » Napster » Wikipedia » Blogging » Upcoming.org and EVDB » Search engine optimization » Cost per click » Web Services » Participation » Wikis » Tagging (“folksonomy”) » Syndication

30. © Copyright 2006 Clement Mok Web 2.0 Companies » Services not packaged software with cost effective scalability » Control over unique, hard-to-recreate data sources that get richer as more people use them » Trusting users as co-developers » Harnessing collective intelligence » Leveraging the long tail through customer self-service » Software above the level of a single device » Lightweight user interfaces, development models and business models

31. © Copyright 2006 Clement Mok Current firms focus on developing best practices within their own domains Product Development Delivery of Products and Services MarketingSales Internet Digital Media BackOffice IT Web Analytics Tools Experience Modeling Experience Design CRM/CMS

32. © Copyright 2006 Clement Mok Web Agencies For Transaction-Led Projects $500B

33. © Copyright 2006 Clement Mok TOTAL CUSTOMER EXPERIENCE MARKETINGTECHNOLOGY creative design strategy measurement CRM PodCast Blog brand iTV TV radio experience map experience models value co-creation digital asset management web analytics data driven analytics measured touch- points

34. © Copyright 2006 Clement Mok POWER TO MARKETERS?…DESIGNERS?

35. © Copyright 2006 Clement Mok Who What Strategy Execution Best PracticesNew MethodsROI Foresight Hard Results Soft Results Traditional Ad Agency Interactive Agency SEM / Viral Marketing Specialists System Integration Firms Business Consulting Agency 2.0

36. © Copyright 2006 Clement Mok Agency 1.0Agency 2.0

37. © Copyright 2006 Clement Mok » Built in latency 3-month learning cycle 50 years of legacy to protect » Organization of individuals Wait for the big bang Genius with a thousand helpers Pyramid organization » Big Concept Advertising Play Claims full service but actually specialists. Outsource things they can’t do. i.e. great brand shop, great direct mail shop. Medium bias consulting. It will always be a communication problem solved with an ad. » Media is decoupled from creative execution » Real time 3-day learning cycle Predict the future by inventing it. » Organization of teams — ongoing improvement with intelligence to optimize Collaboration is a requirement and a core competency » Platform Play Understands and leverage the power of the network » Media is the message Embrace Web 2.0 - RSS, blogs, wikis Media is an integrated part of the solution. It’s not decoupled. Agency 1.0Agency 2.0

38. © Copyright 2006 Clement Mok » Technology is a channel of delivery Believes technology has taken the control away Believes technology reduces their ability to manage brand contact Views technology as a commodity— I.e. DoubleClick, iCrossing, Omniture, » Believes they build brands » Technology is a critical tool to harness Micro-data becomes product development research on steriods Views technology as a surgical instrument » Believes the customer owns and build the brand. The agency is merely there as catalyst to acquire, retain and enhance brand attributes. Agency 1.0Agency 2.0

39. © Copyright 2006 Clement Mok What does Agency 2.0 look and feel like? Product Development Delivery of Products and Services MarketingSales

40. © Copyright 2006 Clement Mok EXPERIENCE INNOVATION & MODELING RESEARCH & ANALYTICS DIGITAL MEDIA DESIGN & MERCHANDISING CUSTOMER STRATEGY AND MANAGEMENT MARKETING STRATEGY AND INTEGRATION SEARCH ENGINE OPTIMIZATION & MARKETING MEDIA SERVICES MARKETING TECHNOLOGIES CAMPAIGN MANAGEMENT ++ ++

41. © Copyright 2006 Clement Mok Sapient’s Experience Marketing

42. © Copyright 2006 Clement Mok

43. Real-time optimization requires “live” data and the tools to affect change Integrated: Campaign Management, intelligent ad serving, email delivery, advanced analytics applications Real-time Online Reports Technology Enabled Marketing BridgeTrack ®

44. © Copyright 2006 Clement Mok Leverage real-time focus groups and online panels Identify the most efficient campaign within hours Glean consumer insights for the best: Positioning, imagery, call to action, etc. TRUTH THROUGH PROOF average CPA C1C2C3C4C5C6C7C8C9 Rapid-Cycle Testing

45. © Copyright 2006 Clement Mok Be good and do some inspire work