Dancing with megaphones: iMedia keynote

Dancing with MegaphonesThe New Rules, Realities, and Hard Data Behind Consumer Control iMedia Agency Summit December 13, 2010 Phoenix, AZ Pete Blackshaw: CMO, NM Incite, a Nielsen-McKinsey Company Lee Rainie: Director, Pew Internet Project

Megaphone 1:Internet and Broadband Flickr: Susan Ford Collins

70%66%

Consequences for info ecosystemVolume VelocityVibrance Valence / Relevance

Variety – Explosion of creations/niches

Networked creators among internet users• 62% are social networking site users• ~50% share photos• 33% create content tags• 32% contribute rankings and ratings• 30% share personal creations• 26% post comments on sites and blogs• 24% use Twitter / other status update features• 15% have personal website• 15% are content remixers• 14% are bloggers• 4% use location-sharing services

So what for brands?• The Bermuda Triangle – Markets are fractured – Marketplace is roiled – Metrics haven’t kept pace – Too much noise• Brands are co-owned by advocates /acolytes – Best of times - sanctuaries – Worst of times - #fail

Megaphone 2: Mobile connectivity Flickr: Susan Ford Collins

Cell phone owners – 85% adults All adults Ages 18-29 Ages 30-49 Ages 50-64 Age 65+100% 96%90% 90% 85%80%70%60% 58%50%40%30%20%10% 0% Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

Mobile internet connectors – 57% adults All adults Whites Blacks Hispanics70% 62%60% 59%50% 55%40%30%20%10%0%

New cell and wireless realities• More than 2/3 of adults and 3/4 of teens use the cloud• Web vs. apps struggle: 35% have apps; 24% use apps• Features used by cell owners – 76% take pictures – 74% are texters (text overtakes talk in frequency in 2009) – 39% browse internet – 34% are email users – 34% record videos – 34% play games – 33% play music – 30% are IM-ers – 7% participate in video calls

Consequences for info ecosystem AnywherePlace Presence Any device

Dramatically More Cross-Platform / Media-Mixing 59% of Americans use TV and the Internet Simultaneously Source: Nielsen Three-Screen Report

So what for brands?Attention zones Media zonesContinuous Social partial attention ImmersiveDeep dives StreamsInfo-snacking Creative / participatory Study / work

Megaphone 3: Social networking Flickr: Susan Ford Collins

So what for brands?• Changed character of population• Changed character of content• Changes rhythms of engagement• Changed the composition and use of people’s social networks

Consequences for info ecosystemSocial networks as sentries (WOM)

Consequences for info ecosystemSocial networks as information evaluators

Consequences for info ecosystemSocial networks as forums for action

Implications Pete Blackshaw Webshots: lauryn6842

With Dramatically Different Channel Preferences Question: Those who would Discuss Get Make a New Complain Crisiscontact the company to… products Advice Reco.Email 96 97 94 96 76Call a live representative 94 95 92 90 95FAQ on company website 94 NA 92 NA 74Post an opinion or question on company website 87 80 77 82 48IM through the companys website 81 78 78 76 71Posting on a company message board 77 69 71 74 47Posting on a blog sponsored by that company 68 61 64 68 41Telephone - automated response/recording 57 57 62 59 52Reading companys Facebook page 55 NA 53 NA 36Sending photo or video to company 53 48 48 51 41Posting on the companys Facebook page 50 42 47 47 31Texting the company via mobile device 36 34 40 37 41 Source: Nielsen Consumer Channel Preference Study ‘09

Implication: A New Consumer Decision Journey to Manage ACTIVE EVALUATION: The consumer adds 1.7 more brands to consideration, based on packaging and sampling INITIAL CONSIDERATION: PURCHASE:▪ Consumer starts with At the moment of 1.5 brands in mind, purchase, the influenced by consumer has previous trial and evaluated only 3.2 word of mouth brands, and makes decision based largely on information learned before shopping POST-PURCHASE EXPERIENCE: 66% of consumers engage with their brand after purchase (e.g., online research), and this engagement has a meaningful impact on the likelihood of repeat purchase 19

Where Social Media Fits in to the Mix Most influential touchpoints Store/agent/dealer interactions 12 26 Prior brand/ 43 28 product experience 10 Consumer-driven marketing 5  Word of mouth 21  Online research 37  Offline/print reviews 31 Company-driven marketing  Traditional advertising  Direct marketing 39  Sponsorship 26 22  In-store advertising Initial Active Moment of Consideration Evaluation Purchase 25 Friending the Social Consumer

Brand Credibility More Important Than Ever Six Drivers of Brand Credibility Trust Authenticity Transparency Confidence As Advertised Let the Sun Shine In Consistency Real & Sincere Easy to Learn Integrity Real People Easy to Discover Authority Informal No Secrets Affirmation Listening Responsiveness Playback Empathy Follow-Up Reinforcement Welcome Mat Invitational Marketing Search Results Humility (we can learn) Solidifying the Solution24 Accountability Absorbing Feedback Dignifying Feedback

Implication: Bold New Questions for CompaniesIssue The Big QuestionCredibility How to manage and protect credibility and trust in a highly transparent, 24/7 feedback environment?Influencer How to extend the notion of key influencer management toManagement everyday consumers and even employees?Cultivating How to generate earned media from customer service, andEarned Media how service in general can be leveraged more strongly for brand and business-building via social media?Organization How to best manage day-to-day digital/social media operations, recognizing that social media breaks down geographic and organizational barriers.Listening & What are the right listening & measurement protocols to driveMeasurement accountability, feed engagement strategy & investment?

Implication: Death (or erosion) of Web Sites Social Commerce Ecosystems Facebook LinkedIn Website Twitter MySpace

Implication: New and More Holistic Rules of Engagement Brand Backyard Common Consumer Backyard Consumer Branded Forum / Consumer Influencer Relations Media Communities Outreach Channels Outreach Brand Site Engagement Communities Platforms 3rd Party Contact Center Blog User-Contributions Twitter Consumerist E-mail Chat, SMS Ratings & Reviews Facebook Edmunds Phone Phone Co-Creation YouTube WebMD Web Site Rate & Review Flickr, LinkedIn TechCrunch43

Implication: From Selling to Service Pizza Hut Ben & Jerry’s Kraft Hershey’s Dunkin Donuts Convenient pizza Experience B& J through Discover recipes for any Simulate your favorite choc. milk Communicate with co-ordering experience peace, love and ice cream occasion. experience at anytime workers for coffee runs Relevance to BP Price Finders Product Info Travel Services Environmental Info

Implication: Rise of Consumer Cartels

Implication: Massive Levels of Retailer Innovation Can BP empower its franchises and/or products around innovation? Source: Company websites; Progressive Grocer & Pittsburgh Post-Gazette

Implication: The Rise of Real-Time24/7 Real-Time War Room 24/7 Engagement Listening Beyond BordersAll aspects of integrated, brand- Deliberate effort to shape and Listening tools cover multiplemonitored social media manage messaging languages & regions

Looking Ahead Source: Nielsen

Near TermAhead / Next? What’s Trends for 2011Trend What It Is, What It MeansMass Socialization Social “earned” media & paid media become more intertwinedPlatform Proliferation New devices and multi-tasking aboundMobile Comes of Age Extends mass socialization & extends media to point of saleApps Everywhere Disruptive growth in apps, fueled by games and service utilitiesDominance of A juggernaut, rewriting rules + shifting attention fromFacebook websitesRise of Social Redefining consumer retailer interactions, powered by GPS,Commerce etcRelevance & Privacy Cautious advance to addressability; heightened scrutinyInfrastructure Growth Increased access and speed expand digital opportunities“Heads Down” Dramatic consumer habit change; all eyes to wirelessGeneration devices 35Digital Downsizing More filtering/control of apps, friends, followers, choices

Longer Term Trends & Disrupters What’s Ahead / Next?Market Trends DescriptionDigital & Social From separate roles to unified and integrated (now one & the same)Mobile Disruption Re-setting the entire landscapeActivism & Social Media Smarter, Creative, More Empowered/Linked & More SophisticatedPayments and Fees Friction-free and seamless (already in play with iTunes)Globalization of Social Creating huge opportunities….and huge operational challengesOrganizational Trends DescriptionMedia Blending Increasingly sophisticated: Paid, Owned, EarnedBrand Managers Moving to “Community Manager” Roles & ResponsibilitiesEnterprise SM Dramatic expansion beyond marketing channel innovationsMarketing + Service New synergy between marketing & operationsAgency Integration Social prompting greater integration from agencies & suppliersSpeedbacking Practice of immediately responding to key issues, especially crisis 36

Things to watch• Content metering online – new media business models• Enhanced tech – 3-D• New attention research – Nielsen and Coalition for Innovative Media Measurement• Privacy debates• Net neutrality debates• Spectrum allocation debates• Rise of the “internet of things”

Thank you!

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Dancing with megaphones: iMedia keynote

by Pew Research Center's Internet & American Life Project

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