| file:///var/folders/5r/5rnYrjB2Ht47IXa-J-FHE++++TI | | | | robust and comprehensive value propositions. |
| -Tmp-/com.apple.mail.drag-T0x7102f0.tmp.JnG6pT | | | | Rule # 4- ‘Practicality' in 360 degrees |
| Food Chain Theory.docxfile:///var/folders/5r | | | | Today, the World Wide Web still highly values search, |
| 5rnYrjB2Ht47IXa-J-FHE++++TI/-Tmp- | | | | click, see through and conversion rates, email |
| com.apple.mail.drag-T0x7102f0.tmp.4W4xhL | | | | marketing, number of (unique) visitors/ traffic and time |
| foodchaintheoryfebruary2010.ppt | | | | spent. |
| Food Chain Theory | | | | However, Physical Operators have begun to deploy |
| Five Rules to Unlock the Digital World, by Lawrence | | | | digital solutions with significant successes. |
| Bergenfield | | | | - Consumer focused ‘push' solutions offering |
| Monday, February 1, 2010 (Revisited from 2008) | | | | coupons have seen redemptions significantly greater |
| Rule #1- Pay Attention to the ‘Tranquil | | | | than traditional print coupons. |
| Obviousness' * Peter Drucker | | | | - Interactive ‘push/ pull' solutions like video rewards; |
| Digital Advertising Time & Resources are primarily | | | | offer an inducement for participation and provide a |
| focused on ‘Push' (one-way communications) | | | | means that the consumer earns coupons with each |
| advertisements. | | | | video they choose to view. This platform has |
| Fundamentally, today, monetization is derived via costs | | | | experienced similarly high redemptions, drove |
| associated from pay per clicks, conversions, | | | | incremental sales and extends and enhances loyalty |
| impressions, time and actions. | | | | The high success rates validate rapid consumer |
| Physical World Business Operators (such as | | | | adoption of and for Interconnected Digital Solutions that |
| Retailers) will enable clear measurement of Digital | | | | extend and enhance value; |
| Advertising expenditures at point of consumption/ point | | | | Digital Solution features and functionalities that capture, |
| of purchase. This will establish a game-changing | | | | connect & optimize traditional data to individual |
| paradigm (‘food chain') shift. | | | | such as localizing data will create a new set of |
| Physical World Business Operators Deployment of | | | | efficiencies around merchandising, loyalty, faster |
| closed-loop ‘opt in' solutions are the key to enabling | | | | segmenting, indexing, and more targeted re-marketing |
| measurement, segmenting, indexing and remarketing. | | | | opportunities. |
| Rule #2- Recognize the Substantive and Sustainable | | | | The end effect will provide a greater benefit to all |
| ‘Controlling Forces' in the value chain | | | | parties as coop dollars extend/ convert into digital |
| Who has the greatest clout to impact the value chain? | | | | dimensions |
| Are eyeballs, click or view through rates, and time | | | | Rule # 5- ‘It's a Journey' evolution does create |
| spent more important than measureable outcomes or | | | | revolution |
| purchases at the electronic point of sale? | | | | NEAR: Physical World Business Operators |
| Many of the largest physically located businesses | | | | Implementation of Consumer Facing Hyperlocalization |
| operators (such as retailers) are also the largest | | | | will enable personalized content offers, plus significantly |
| buyers of there vendors products and services; | | | | provide a superior means to measure trends, and |
| These same vendors also happen to have some of | | | | effectively manage and market inventory; |
| the largest global digital advertising budgets; | | | | CORE: Through Digital Solutions New Efficiencies and |
| - Is it more important for P & G to advertise on | | | | Associated Return on Investments will establish a path |
| Google. Yahoo, Bing OR through a Retailers Digital | | | | towards extending, enhancing, and interconnecting the |
| Solution like CVS… who happens to be a top 5 global | | | | enterprise marketing and advertising platforms with |
| outlets for the sale of P & G's products and could | | | | interconnected metrics. |
| enable measurability at point of sale? | | | | IN-SIGHT: Ongoing successes and rapid consumer |
| The future will illustrate that Physical World Business | | | | adoption will accelerate ‘TIPPING POINTS' for all |
| Operators will use their purchasing clout to exploit | | | | the below layered with "predictive analytics": |
| these very same digital advertising budgets; | | | | - Loyalty Shift (from Household to Individual) |
| The choice is clear: Digital Advertising Dollars captured/ | | | | - Mobile payments |
| measured at the point of outcome/ electronic point of | | | | - Digital Signage |
| sale OR continue with yesteryears push style | | | | - Convergence |
| advertisements via Google, Yahoo, or Bing? | | | | Why building Digital Bridges into the Physical World is |
| Rule # 3- Influence ‘The Pawn's' Next Move | | | | Important Today |
| Digital Advertising Agencies may appear as the | | | | Today, the consumer is the final arbiter and thus, |
| supporting actors to Physical World Business | | | | today's tipping point for whatever, whenever, and |
| Operators who endeavor to optimize digital advertising | | | | however; communication and or content is consumed. |
| monies & exposure; | | | | The consumer is adopting new technology platforms |
| However, traditional Digital Agency roles and | | | | at annual speeds in just 90 days compared to the last |
| responsibilities will be forced into managed service | | | | decade. |
| (SaaS) business models for survival. | | | | Marketing, advertising, and promotion can no longer be |
| This will also include aggregation of technology solution | | | | passive one-way conversations. |
| providers that enable a focus and measurable means | | | | Interactive digital advertising will provide the consumer |
| to decrease customer acquisition costs while providing | | | | valuable, relevant, and hyper-localized content based |
| rich data around: registrations, push/ pull feature | | | | on established preferences and future predictive |
| functionalities, and superior segment and indexation | | | | analytics. |
| capabilities; | | | | Ultimately, the entire value chain will monetize these |
| The Digital Advertising Agencies that adopt SaaS | | | | communications through decreasing customer |
| models will have a strategic and tactical edge in | | | | acquisition costs, while increasing basket sizes, spends, |
| leveraging enormous value. | | | | & trip frequencies. However, the ability to capture |
| Accelerating and extending 360-degree consumer | | | | incremental sales will define the inflectionary growth |
| facing solution adoption will benefit the entire value | | | | point(s). |
| chain, provoke these agencies to have new, more | | | | |