What the election of America’s first Digital President
means for advertising in Brazil.

• Lessons from Obama
• Why advertising must change in Brazil.
• A bet...

A Different Man…
• Young
• Charismatic
• Intelligent
• Black
• Digital

And His Vision: “Change”
• Short
• Simple
• Motivating
• Viral

An Unprecedented Budget…
With digital media
at the core

Obama’s Campaign Budget
Out of a total budget of $566M (USD)
• 48% allocated to media
• 6% spent on digital media

Digital Media Spend
1. Paid Search
• $7.2M on Google
• $14M on Yahoo!
2. Digital “Brand” Advertising
• $3.8M on mainstream websites
3. Social Media
• $980K on Facebook
• $280K on MySpace

An Unprecedented Digital Effort…
Seven Extraordinary Tactics

Tactic 1:
Recruit a team of digital specialists
A digital-savvy staff crafted the strategy
20 people fully
dedicated to digital
Plus world-class Super Geeks:
• Chris Hughes, co-founder of Facebook
• Eric Schmidt, CEO of Google

Tactic 2:
Make Your Message Findable
Content that’s visible in the right place at the right time

Findability
If you want young voters…go where they are

Findability
Intelligent targeting – 18 top games in 10 “swing states”

Findability
Make all content exportable

Findability
5 times more blog mentions for Obama

Tactic 3:
Be Relevant to Your Audiences
30 specific communities addressed in the “People” section

Relevance
Overwhelming presence on all social media platforms, from
massive to targeted

Tactic 4:
Create Engagement
Site log-in created a database of 13 million qualified leads

Tactic 5:
Empower your fans
Recruit Core Advocates among your closest target
Obama “Core”
1. Black Community and its
leaders
2. Democrats tired of the Clintons
3. First victims of the economic
downturn
Peers (Followers)

Empowerment
Encourage the “Core” to activate their personal networks
Obama “Core”
Thousands of local “small Obamas”
• Speaking to everyone
• Listening to everyone
• Raising funds
• Organizing micro-meetings
• Generating vast amounts of
content besides the “official” content
Peers (Followers)

Empowerment
Create easy-to-use tools for “badging” and recruitment

Empowerment
Encourage grassroots event creation

Empowerment
Phoning tools

Empowerment
Personal fundraising tools

Empowerment
Fight the smears

Empowerment
Dedicated iPhone app

Tactic 6:
Reward the Faithful
Give them inside information
3M personal text messages to
announce Biden as VP, before
the news hit TV screens

Reward
Give them direct access
His first thanks go to his supporters… by e-mails

Tactic 7:
Be Transparent
Leverage digital to report on what you’re doing
• During the campaign

Transparency
Leverage digital to report on what you’re doing
• Once elected

Transparency
Leverage digital to report on what you’re doing
• Once elected
Each non-urgent legislation
will be published for 5 days
to allow the public to review
and comment on it, before
the President signs it.

Transparency
Leverage digital to report on what you’re doing
• Once elected

All that and a Titanium Lion, too…

That’s great.
But what does it mean
for us?

Advertising in 2009 must be…
1. Built by people who truly understand digital
2. Findable anywhere and everywhere, all the time
3. Relevant to multiple audiences
4. Built for interactivity and engagement
5. Designed to create and empower “fans”
6. Provide rewards for the user
7. Socially conscious and transparent

But we’re in a crisis.
Maybe we should stick to
what works?

Hello TV people: It’s not working
Percentage of U.S. homes watching network primetime TV

Maybe Brazil is totally and
completely immune?
Maybe Brazil will never change?

I will make you a bet:
Brazil is going to explode. Digitally.
Why?

You’re rushing online
Wired household penetration
is outpacing all the other major
growth markets:
You in 2009: 38%*
RIC in 2009: 22%**
*Averages Brazil, Mexico and Argentina
**Averages Russia, India and China

You’re hyperdigital
You have one of the most
advanced digital populations
on Earth.
Highest reach in
social networks:
60%
Highest reach in digital
communications:
82% webmail
73% in Messenger

So why aren’t your digital
budgets bigger?

Share of Media Spend
By Media Type

2001

2002

2003

2004

2005

2006

2007

2008

2009

This is crazy, right?

Evolution of Internet Spend
per Online Household

2001

2002

2003

2004

2005

2006

2007

2008

2009

The Problem
Latin America is stuck in an “old media” rut.
Digitally, you’ve fallen behind,
and the gap is widening:
You: $21*
Everyone else:
$180**
*Averages Brazil, Mexico and Argentina
**Averages US, Canada, Italy, Spain, UK, Germany, France,
Australia, India, Russia, China, South Korea, Japan

What I Believe:
You are the biggest growth market on the planet
for digital. The population wants it.
Brands, creative agencies, and media companies
are not keeping up.
The revolution will start with you.

So I made you a bet.
I was serious…

Coming Soon
Razorfish / Latin America

Do you have digital DNA?
We should talk…
joe.crump@razorfish.com

Muito obrigado
joe.crump@razorfish.com