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