“WWW” Where we are. Where we’ve been. Where we’re headed 11/11/08 Presented by: Shawn Rorick Director of Marketing Cirque du Soleil Chairman, Las Vegas Interactive Marketing Association

Availability (Speed) of Information Google’s mission statement… Organize the world’s information and make it accessible/useful PCWorld, 2003 Claims all information in the world “doubles” every 3 years 5 “Exabytes” hold the world’s data

What is an “Exabyte”? A “1” with 18 zeros behind it (6 zeros more than a terabyte) All “words ever spoken” by human beings would take up 5 exabytes of storage … and this was in 2003, with all the information in the world doubling every 3 years…. All of this information has caused areas of our society and media to “evolve”. 1,000,000,000,000,000,000

Just for fun… Let’s say the rate of information doubling progresses over time. It used to take 50 years to double Then it took 25 years Then 5 years Then 3 years Calculate the time it takes to double now… (hint: it’s called “exponential decay” or “half-life”)

Half-Life Formula… t = 1 / λ

“Cloud Computing” The “place” where all this information is stored today. The “cloud” is a just metaphor for the internet derived from network diagrams. “The Internet cloud, is where the distributed and programmable network of services across the globe will serve all the data, resources and functionality we will ever use.” - Alex Barnett, alexbarnett.net “I want Cloud computing so badly. I regularly use four PC's and three mobile devices - I don't really want to, I just have to.” - Liam Cassidy (blogger)

Imagine… No more software titles at Best Buy No more cables to your television, phone or stereo No more video stores No more “hard drives” for storage No more Websites? No more “downloads”?

How are primary marketing tactics used in a world like this? When it comes to: Search Display advertising Email marketing Dramatic changes will need to happen!

Evolution of Web Media The Web is thus getting “smarter” Instead of results, we are getting recommendations The future of the web is “personalization” Personalization happens in 4 parts… (Richard McManus, 2008 – ReadWriteWeb) Personalized recommendation – recommend things based on the individual’s past behavior Social recommendation – recommend things based on the past behavior of similar users Item recommendation – recommend things based on the item itself A combination of the three approaches above.

...and “Evolution” in Search

Blinkx – searches video using audio phonetics and processes images …

Cuil – adjusts search result layout offering expanded content and images

How is this “evolution of media” reflected in current tactics?

Look at where online media spending is today… How does this data take the speed of information and evolution of media into consideration? Search Display Ads Classifieds Video Rich Media Email … it doesn’t!

Imagine Advertising Spending like this… Social Media Search Search Mobile Virtual Worlds Widgets / Desktop Apps Rich Media RSS In-Game

…this is reflected in growth rates of today’s emerging media spending (2008) In-Game Advertising – 80% Mobile Advertising – 60% Social/Video/Widgets – 128%

The “Long Tail” is changing… Buzzword used to exemplify internet usage by the mass population. … or it’s a just word people use to sound cooler than they really are.

Take the Long Tail of search for example…

With emerging media, the Long Tail gets thicker… Internet search Mobile Virtual Worlds Blogs / Micro Blogs Social Media ? ? ?

Fragmentation of Media The fragmentation of media is the result of an increased online user population over time… The future of online media is already here. It’s just unevenly distributed. (Chris Anderson, Editor in Chief – Wired Magazine)

Internet Population Growth The last big jumps in online users occurred in 2001 and 2003. 5 – 7 Years mature in how they use the internet

Older Tactics vs. Newer Tactics Recent presidential campaigns are a “perfect” example of how interactive media is changing.

How do the two differ? McCain uses: Video Sharing Blogs / Social Media

How do the two differ? Obama uses: Video Sharing In-game advertising Blogs Mobile (SMS) Viral campaign (click for sample)

Web site evaluation Obama McCain Most pleasing design… 84.5% 15.5% Most innovative… 82.4% 17.6% Most appealing content… 71.6% 28.4% Ease of use… 73.8% 26.2% Copywriting… 70.1% 20.9% Interactivity… 75.2% 24.8% Technology usage… 82.4% 17.6% Conducted by the Web Marketing Association (WebAwards)

An estimated 2.9 million U.S. mobile subscribers received a text message from the Obama campaign making it the largest mobile campaign to-date. (according to Nielson Mobile insights 2008) Why are new media tactics approached “conservatively”? Unproven application Non-applicable demographics (younger) And… Older Tactics vs. Newer Tactics

Average estimated age of Board of Directors is 55+ (Cisco, Gannet, Exxon, AT&T, etc) “Old school” existed in Enron, Friendster, Qwest, Xerox, etc. Once retirement hits, the next generation gets in Imagine interactive media and advertising with a board of directors that grew up using the internet. “Old School” thinking

“Merging of Media” In 1995, the advertising world split into two disciplines: Offline and Online Measurable Accountable Adaptable Flexible Innovative Cheaper

“Merging of Media” 10 years later, the two are coming back together This merging has been fostered by acquisitions and mergers of offline and online media agencies as well as…

“Merging of Media” Media evolution of comparable formats Mobile Marketing In-Game Advertising Social Media Widgets / Gadgets Telemarketing Outdoor Advertising Public Relations Logoed Apparel

Media fragmentation exhibits users deciding where, how, and when they will consume media. Resulting in a “cluttered” environment. As marketers, we are forced to have multiple placements of interactive media surrounding us. New Concept: “Halo Media” (Wikipedia definition? – I’ll share!)

“Halo Media” Traditional method of sales conversion process $$ Buy $$ (Web site) 50% off buy now!

“Halo Media” (contribution to “the cloud”) Completing a circle of presence around the Web site / company. Users aren’t asked to “click and buy” Experience, reference, discuss and purchase when they are ready.

“With all the new… What should we do?” 2 key questions online marketers need to ask themselves today with regards to emerging media… Where is my time best spent? Which new media offers the best returns?

Answering the questions… Measurement is critical (and always will be) Remember, not all opportunities are “applicable” Forget the “rules” Get closer to traditional media Continue to be the “expert” Educate and share insights Play the budgets… remember we’re merging

“Action Items” Get closer to understanding traditional media (formats, metrics, etc) Attend “new” or “emerging” media conferences Don’t spend money on what you already know Join or start a local “IMA” Ask lots of questions Interrogate Salespeople (turn around the “pitching”) Remember, you have the “keys to the car” ALWAYS – put yourself in the “user’s shoes”

“Trendsetters and Opinion Leaders” Exactly what YOU ARE in the digital marketing age. We are at another pivotal point where emerging media is influencing audiences You are the “innovators” and “evaluators” You play a role in how digital media evolves Question, TEST, defy and implement new technologies when it comes to advertising

Discover, Evaluate and … video summary While you’re at it…

Join the Las Vegas Interactive Marketing Association or your local “IMA” today! Shawn Rorick – Chairman – www.LVIMA.com