Global Branding: Building a Community of Brand Enthusiasts

Building a Communityof Brand Enthusiastsaka No Free Lunch Nigel Hollis Chief Global Analyst Millward Brown

What a difference a couple of years can make - 2007 - - 2009 - Dow Jones Index 13,371 350M Consumer Confidence Index** 87.3 116.1M US Television Ad Spending* $67.8B 18M Facebook Users^ 50M 10,344 US Blog Readers* 94.1M 49.5 Twitter Users* 0 $66.9B*eMarketer, ** Conference Board , ^Facebook 2

After the financial bubble we are enjoying… The social media bubble! 3

TV is not the only medium to be fragmented Pure Plays Blogging Syndication Peer 2 Peer Wikis & Collab Open Source Tagging & Rating Consumer Review 4

The power of social mediaHow social media changed the U.K. music industryData from the U.K.s Official Charts Company

Simon Cowells X-Factor winner topped the U.K. Christmasmusic charts from 2005 to 2008 So what went wrong this year? 6

After four years of X-Factor number ones, Jon and TracyMorter felt enough was enough Over 750,000 fans 7

A coordinated effort meant that RATMs "In The Name" took the Number 1 slot in spite of the X-Factor hype Christmas WeekSource: The U.K.s Official Charts Company 8

The Facebook RATM campaign generated a far betterconversion rate 12% c. 6,000,000 votes c. 750,000 fans 78% 9

Why was the RATM campaign so successful?The campaign possessed authenticity • Started by a real person with a real causeIt tapped into an underlying societal tension • The suspicion that "big business" is manipulating the public psyche for their own endsThe choice of song resonated with a wide audience • Anti-establishment sentiment of the lyrics • Positive associations for people who remembered it from the 90sThese ingredients are similar to those of an iconic brand 10

Do the same factors enablesocial media success for brands?

These brands are often praised for their effective use ofsocial media 12

The average number of fans per brand differs dramatically by product categorySource: Facebook Fan Pages 13

And one or two brands tend to dominate each categorySource: Facebook 14

People who Bond with a brand are more likely to buy it High share of wallet Individuals who Bond with a brand are more than ten times more likely to buy it than those who just know the name Low share of wallet 15

Successful social media brands tend to be stronger brands Successful Other brands Bonding Advantage Performance Relevance Presence 16

A strong brand, a distinctive identity, global scale, and anactive presence on Facebook drive the number of fans % BONDED COMPARED TO NUMBER OF FANS (100,000S) 17

Red Bull: Simply an engaging brand 18

People bond to Coca-Cola and Red Bull for very differentreasons 19

The same drivers create brand and social media success (Strong brands defined as growing equity over a 3 year time period) Projected Leadership Clarity of Associations Brand Success Great Brand Experience Strong Business Model 20

But what about viral?What does it take to be a success?

Viral success depends on strong creative and gooddistribution Creative Contribution to overall number of ad views on YouTube Other support/ PR 22

Viral success depends on both the propagation rate(creative appeal) and the size of the initial audience Over 10 million views Evolution • Ellen • The View • Entertainment Tonight • Geraldo 500,000 views • Blogger buzz: one of the Top 15 most- linked-to videos among bloggers Daughters (Technorati) Edelmans PR blitz behind "Evolution" led to a much stronger in-market performance 23

Marketers should consider integrating marketingcampaigns across social media sites Sites Visited Membership by # of SitesSource: Dynamic Logic AdReaction 2009 study 24

Viral success depends on strong creative and gooddistribution Creative Contribution to overall number of ad views on YouTube Other support/ PR Placement/ease of finding Part of a viral campaign 25

An example of a viral campaign with multiple executionsdriving ongoing engagement 26

12 /1 0 20 40 60 80 100 120 / 20 09 12 /3 / 20 09 12 /5 / 20 09 12 /7 / 20 RATM campaign 09 12 /9 / 20 12 09 /1 1 /2 00 12 9 /1 3 /2 00 12 9 /1 5 /2 00Source: Factiva, number of print articles per week 12 9 /1 7 /2 00 12 9 /1 9 /2 00 12 9 /2 1 /2 00 12 9 /2 3 /2 00 12 9 /2 5 /2 00 12 9 /2 7 /2 00 12 9 /2 9 /2 00 12 9 Mass media coverage helped drive awareness of the /3 1 /2 00 927

Why are people using socialmedia?Its about people, stupid!

Facebook is about connecting with specific people, whileTwitter is used as an information access platform % % % % Am able to keep in touch with distant family members Feel more connected to old acquaintances Feel more informed about current events Feel more informed about pop cultureSource: Dynamic Logic AdReaction 2009 study 29

Twitter: First in the know about celebrities and events You follow someone on Twitter because you want to hear what they have to say. 30

Only 13 percent of social media users follow brands, butthey participate in an average of three categories Retail CPG 13% Technology 12% Sports Restaurants Travel Banks/Finance Follow Do not Quick Service Restaurants AutoSource: Dynamic Logic AdReaction 2009 study 31 Q23. What types of companies or brands do you follow or keep up with via social networks? (Check all that apply)

People follow brands largely for what they can get out ofit: Information, discounts and giveaways Q24. Please select any of the following reasons you choose to follow brands or companies on social networking sites. (Check all that apply) CPG Retail Technology % % % Info about new products 83 68 80 Sales/Discounts 74 71 76 Contests and giveaways 61 56 62 Sharing thoughts/ideas 56 48 55 Like the brand 48 51 48 Reading people’s responses 47 43 55 Company news 46 33 61Source: Dynamic Logic AdReaction 2009 study 32

ConclusionNo free lunch with social media

Its a chicken-and-egg dilemma: Success breeds success Pre-existing brand equity is the best predictor of a brands social media success • Fans are more "end" than "means" Social and viral success relies on creativity and scale • Aim to seed creative execution with mass- media for maximum impact People use social media to connect with people and brands they know (or to find a good deal) • Figure out what value your brand brings to the social scene • Test the idea, listen, and engage • If it is a success, publicize it 34

The best social media brands tend to be the best brands Tap into universal human values Hold true to what the brand stands for Anticipate the consumer Act big Invite consumers in 35

Thank you for listeningFor more commentary on brands, media and marketingplease visit: mb-blog.com

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Global Branding: Building a Community of Brand Enthusiasts

by Millward Brown on Mar 31, 2011

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