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Summary Digital Marketing Industries

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Digital Marketing Industries

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Vrije Universiteit Brussel (VUB)

Nauwkeurige samenvatting van het vak Digital Marketing Industries (lectures +readings), gegeven door prof. Verhulst. In dit document zijn alle lectures samengevat en aangevuld met de kern uit de readerteksten. Als je vragen over de inhoud hebt, mag je me altijd sturen via Messenger :)

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Publié le 14 janvier 2022
Nombre de pages 83
Écrit en 2021/2022
Type Resume

nanouk verhulst
dmi
digital marketing
digital marketing industries
master communicatiewetenschappen
vub

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Introduction..........................................................................................................................4
1 Socio-ecconomic perspective: broader perspective on changing (digital) marketing
landscape and role of advertisers..........................................................................................5
1.1 Marketing communication landscape: advertisers...................................................................................5
1.1.1 Supporting organisations...........................................................................................................................6
1.1.2 Awards........................................................................................................................................................7

1.2 Changes in the digital landscape............................................................................................................. 7
1.2.1 Social media...............................................................................................................................................7
1.2.2 Digital marketing landscape.......................................................................................................................7
1.2.3 Combining two approaches: studying complex dynamics of media constellations..................................9
1.2.3.1 ANT (actor-network theory).............................................................................................................10
1.2.3.2 PE (political economy)......................................................................................................................11
1.2.3.3 Conclusion two approaches..............................................................................................................11

1.3 Multilayered model for analysis (Van Dijck: 2A)....................................................................................12
1.3.1 Techno-cultural constructs......................................................................................................................12
1.3.2 Socio-economic structures.......................................................................................................................16
1.3.3 Connecting platforms, reassembling sociality.........................................................................................19

1.4 Transitions in Datafication and digitization (Mayer-Schonberger & Cukier, 2013: 2B).............................20

2 Marketing research: Data-driven, digital measurements and analytics (back-office)........25
2.1 OVERVIEW: impact of digital tools on marketing research.....................................................................25

2.2 TOOLS: The like economy: social buttons & the data-intensive web (3A: Gerlitz & Helmond).................28
2.2.1 web evolution...........................................................................................................................................28
2.2.1.1 Web 1.0: Web-as-information-source..............................................................................................28
2.2.1.2 Web 2.0: Web-as-participation-Platform.........................................................................................29
2.2.2 The like economy: decentralization and recentralisation.......................................................................31
2.2.3 The like economy: metrification and intensification...............................................................................33

2.3 CONSEQUENCES: All that glitters is not gold: digging beneath the surface of data mining (3B: Danna &
Gandy)....................................................................................................................................................... 34
2.3.1 Data mining technologies........................................................................................................................34
2.3.2 Economic benefits....................................................................................................................................36
2.3.3 Social concerns.........................................................................................................................................37
2.3.3.1 Price and marketing discrimination..................................................................................................37
2.3.3.2 Weblining and marketing discrimination.........................................................................................38
2.3.3.3 Information in the public sphere......................................................................................................39

1

, 2.3.4 Conclusion on data mining.......................................................................................................................39

3 Media channels and online platforms: Traditional and digital media in changing market
structures (value network)..................................................................................................41
3.1 Platform mechanisms (Van Dijck & Poel & De Waal: 4A).......................................................................41
3.1.1 Digital platforms.......................................................................................................................................42
3.1.2 Platform society.......................................................................................................................................43
3.1.3 Platform mechanisms...............................................................................................................................43
3.1.3.1 Datafication.......................................................................................................................................44
3.1.3.2 Commodification..............................................................................................................................45
3.1.3.3 Selection...........................................................................................................................................47

3.2 Media channels as digital platforms (Nieborg & Helmond: 4B)..............................................................51
3.2.1 Abstract of the text 4B.............................................................................................................................51
3.2.2 Introduction.............................................................................................................................................51
3.2.3 Studying Facebook: from social network to data infrastructure.............................................................52
3.2.4 Technical and business dimensions of platforms....................................................................................53
3.2.4.1 Business platform.............................................................................................................................53
3.2.4.2 Technical platform............................................................................................................................54
3.2.5 Methodology: studying Facebook’s evolution.........................................................................................55
3.2.6 Technical and economic expansion of early Facebook platform.............................................................55
3.2.7 From web to app instances: building a mobile messaging infrastructure...............................................56
3.2.8 The messenger platform: the evolution from apps into nested platforms.............................................57
3.2.8.1 Messenger Platform: Technical dimension......................................................................................57
3.2.8.2 Messenger Platform: business dimension........................................................................................58
3.2.8.3 Messenger Platform: Overview........................................................................................................58
3.2.9 Conclusion................................................................................................................................................59

4 Marketing communication: Multi-platform advertising agencies and media planners
(front-office).......................................................................................................................60
4.1 OVERVIEW: impact of digital media on marketing communication........................................................60

4.2 Online advertising industry (Evans: 5B)................................................................................................. 61
4.2.1 Introduction internet-based/online advertising......................................................................................61
4.2.2 Evolution of online advertising (CPM  CPC).............................................................................................61
4.2.3 Online versus offline advertising..............................................................................................................63
4.2.3.1 Supply of advertising space and its market structure (inventory)...................................................63
4.2.3.2 Demand for online advertising space (inventory)............................................................................64
4.2.4 4 Issues in DM industry evolution............................................................................................................64

2

, 4.2.4.1 Behavioral targeting and data analytics...........................................................................................64
4.2.4.2 Electronic exchanges........................................................................................................................64
4.2.4.3 Creative destruction and migration from offline to online media...................................................65
4.2.4.4 Privacy dilemma................................................................................................................................65

4.3 Current digital advertising market & future........................................................................................... 66

4.4 Advertising power shift (Turrow: 5A).................................................................................................... 67
4.4.1 Introduction (media theory)....................................................................................................................67
4.4.2 Advertising industry transition.................................................................................................................68
4.4.2.1 Advertising industry transition: a shift.............................................................................................68
4.4.3 Creative agencies vs. media agencies......................................................................................................69
4.4.4 Conclusion................................................................................................................................................71

5 Consumer perspective: Changing consumer behaviour, empowerment and
commodification.................................................................................................................72
5.1 User agency (Van Dijck: 6A).................................................................................................................. 72
5.1.1 Cultural perspective.................................................................................................................................72
5.1.2 Economics perspective.............................................................................................................................75
5.1.3 Labour relations perspective....................................................................................................................76
5.1.4 Conclusion user agency............................................................................................................................78

5.2 User commodity types (Nieborg: 6B)..................................................................................................... 79
5.2.1 The rise of games & e-sports...................................................................................................................79
5.2.2 Case: Candy Crush Saga...........................................................................................................................79
5.2.2.1 Free-to-play commodity types.........................................................................................................81
5.2.2.2 User commodity types......................................................................................................................82
5.2.3 Conclusion................................................................................................................................................83

3

,INTRODUCTION
= relevant and current issues today. Today we see a lot of changes, especially if we talk about digital &
technology.

Trends & transitions over the years in society:

1. Technological changes & digitalization
a. Consumer watching behavior changes (ex. Watching television -> Netflix)
=> consequences for advertising
2. Moving to an experience / service economy (subdiscipline of marketing)
a. = products become less important, people prefer services
b. Vb. Spotify (you don’t own the product itself), sharing cars
3. Multi-channel marketing & Media
a. We’re constantly busy on different channels
4. User Generated Content (UGC) & influencers: smth that didn’t exist 20 years ago
5. Data Driven Innovation & decision making

 All these transitions and changing habits have implications for society, ownership, advertising…

Example: TIME magazine Person of the Year: computer (1982) -> YOU (2006) -> Mark Zuckerberg (2010)

What about advertising?

We see a SHIFT in the marketing communication:

1. In the 20th century we had a mass audience, and a few ads reached this audience. There was a lot of
attention, they didn’t have much choice in terms of channels. There were only the traditional media.
2. But starting from 2005 onwards, there came a lot more ads on many more channels, also on not
traditional media, but also on different devices, resulting in less attention. This meant that you reached
niche audience, and thanks to digitalization, it became popular (because of personalization).

We also see changes in the media communication landscape itself: mergers, Ads&Data etc.

Ad evolution:

- TV ads is quite important in Belgium but it’s decreasing.
- SEA, ads on social media is on the rise. Digital ad spending is continuously increasing
o Interesting: Only 3 players are making the most money and rule the digital advertising world:
Google, Facebook & Amazon (just a couple of players)
o Alphabet core business is advertisements (more than 80% of their earnings) not content or
connectivity.
- Most valuable brands aren’t product driven brands anymore. 20 years ago product driven, today
technology firms.
o In 2020 Netflix gain a huge jump as a company because of Covid.
- New outlets rising for advertisers to reach new target groups.
o E- sports, gaming industry are increasing.

A lot of marketing research is happening in the advertising world: think of A/B testing (what are they clicking the
most to?), testing ads via an audience to see if your target audiences likes it etc.

4

,Thinking about marketing communication landscape: the POEM model

1. Owned media: media that the companies owns itself (website, blog, social media channels)
2. Paid media: where you pay other companies or people for your ads (display ads, paid influencers, social
media ads, Google Ads etc).
3. Earned media: consumers share things about the company. Fans of the brand are communicating for
you, it’s seen as free advertising. (reviews, mentions, shares)

Consumer perspective:

 Consumer behavior changes (vb. Watching behavior)

 Consumer expectations change (vb. expecting from an ice cream brand that it respects the
environment. Something that wasn’t the case 20 years ago).

 Consumer needs change (! Can be pushed by companies: they can create needs, think of Alpro Soja:
Danone pushed this product to the consumer and created the need for it).

Reasons links to societal changes, unexpected events (as Covid) and changes in technology.

1 SOCIO-ECCONOMIC PERSPECTIVE: BROADER PERSPECTIVE ON CHANGING
(DIGITAL) MARKETING LANDSCAPE AND ROLE OF ADVERTISERS

1.1 MARKETING COMMUNICATION LANDSCAPE: ADVERTISERS

The Belgian marketing communication landscape exists of different stakeholders:

(zwart = wat we zien in H1)

1. Advertisers Companies who want to advertise their product, service and reach an
audience.
Can be small – big companies; often big conglomerates as Unilever, Coca
Cola, P&G that have different products and brands under their umbrella.

5

, ! It’s important to know that a lot of brands have the same mother company,
always think of this when you see ads. Which company is advertising?
Big advertisers (in speaking of ad spending) in Belgium are DPG Media, P&G
Benelux, Colruyt Group, Ahold Dehlaize, Mediahuis, Telenet, Unilever
 Often not product brands but media brands. Retailers as well.

2. Production houses Make the commercials, develop campaigns
or agencies There used to be a difference between production houses and
communication agencies: production houses focus on creating the video and
not the creative process. But today it’s more integrated; full service agencies.
Of course you still have specialised agencies (only production for example).
Examples: BBDO, Duval Guillaume, Publicis etc.

3. Marketing research investigate how consumer tastes are changing, what they are watching, to
bureaus what extend they are engaging online,…
Examples : IPSOS, Nielsen, GFK

4. Media regies Manage the available ad space (there can be XXX ads on X hours)
For example: we have 2 hours space on VTM.
They work on mediaplanning and handle the inventory (= a spot between 2
programs is an inventory)
! Today media regies and media centres are becoming more integrated

5. Media centres Manage the actual placing of ads in the different media. They sell these spots
or the inventory.
Pebble media is an example of a sales house. They work together with VAR
and Telenet, and they offer all the space available for ads, to the advertisers.

1.1.1 SUPPORTING ORGANISATIONS
Each focus on different things: marketing analytics, advertisements; tv and media etc.

1. AMA: American marketing Association: important marketing association for doing research
2. Belgian Association of Marketing (BAM)
3. Unie der Belgische Adverteerders (UBA): Organisation that groups advertisers and brands
4. Association of Communication Companies (ACC Belgium): Association and lobbying for marketing
communication bureaus
5. Vereniging voor Promotie en Communicatie (VEPEC)
Association of professionals in content creation and communication
6. Creative Belgium (voorheen CCB): Organisation aimed at improving creativity in advertising in Belgium
7. Belgian Management & Marketing Association: Association of professionals in mkt and management
8. Febelmar: Belgian Federation of Market Intelligence, Focus on marketing research bureau’s.
9. United Media Agencies (UMA)
10. Promotion of media agencies: Group for Research and Planning (GRP)

6

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