Social Media By The Numbers - Global Marketing Performance Series - 120309

Tweeting now? Use #AcxiomSeries The New Rules of Relevancy Social Media By The Numbers December 3rd, 2009 David Daniels, Forrester Research Chris Marriott, Acxiom Corporation www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com /acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom

The New Rules of Relevancy Social Media By The Numbers David Daniels Vice President, Principal Analyst Forrester Research

Irrelevant email and high frequency drive churn and skepticism in the channel h d k ti i i th h l “Which of the following statements about promotional offers you receive (not including unsolicited spam email) do you agree with?” I unsubscribe from email offers when the offers/types of content 50% do not interest me I unsubscribe from email offers from senders mailing me too g 37% often Signing up for permission email offers leads to more 39% unsolicited spam email I unsubscribe from email offers because I get too much email 33% I do not trust that the Skepticism unsubscribe link in email offers 30% works I unsubscribe from email offers by clicking the spam button 26% Base: 2,427 US email users Source: JupiterResearch/NPD Consumer Survey (4/08) 6 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

The web is a combination of communication and browsing behavior – social blurs those lines In a typical week, what percentage of the time you spend online is spent on each of the following activities? Instant Messaging 5% Browsing Websites 37% Email 46% Communication Media Activities Activities Watching Online Video 6% Browsing Social Networks Two New Categories Are Base: Online Adults (Ages 18+) 6% Expanding Total Time Online Source: JupiterResearch/NPD Group Entertainment and Media Consumer Survey (8/08), n = 2,210 (US only) 18 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

March 2009 “The Economy and Consumer Communication Patterns” Disruptive Communication Patterns Continue Except in Modes Where Costs Are Higher For personal communications, which of the following have you used during the past year instead of using e-mail? 59% Cell phone 73% 26% IM 32% 28% SMS text 25% 21% Social sites 22% 0% 20% 40% 60% 80% 100% Percentage of E-mail User Segment Overall 04/08 Overall 11/08 Source: JupiterResearch/Forrester North American Technographics Consumer Survey (11/08),JupiterResearch/NPD Consumer 19 Survey (4/08), n = 2,427 (overall All rights reserved. Entire contents © 2009 Forrester Research, Inc.e-mail users, US), n = 273 (e-mail users from ages 18 to 24, US), n = 517 (e-mail users from ages 25 to 34, US)

25% of email subscribers provide web-site recommendations 20% of online buyers post on average 9 product reviews a year 77% of the online population find reviews more useful than information that the company provides JupiterResearch/Ipsos Insight Consumer Survey (09/08), n = 2,503 (US only) 22 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

More marketers embrace segmentation raising the table stakes for those that “spray and pray spray pray” “Which of the following customer data attributes has your company used to segment audiences for email marketing campaigns within the past six months?” Click-through data 51% Demographic data 51% Open rate 48% Geographic d t G hi data 47% Recency and frequency of purchase 39% Customer spending 30% Customer profitability 29% Acquisition source code of the list 28% One-third of US email Web site clickstream data 24% users create a new email Customer service contact 23% address every year. Customer satisfaction survey 21% Widget interaction 6% Contribution to product reviews p 5% Base: 103 email marketing executives Source: Q1 2009 Global Email Marketing and On-site Targeting Online Survey 23 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Relevance empowered mailings delivers more top and bottom line improvement than broadcast In thousands nth* 1000 Monthly revenue Monthly net profit Dollar generate per mon 840 800 664 ed 600 540 400 306 239 rs 159 185 200 40 0 No Targeting Web Analytics Targeted Social Targeting S Type of campaign/tactics used Base: 103 email marketers that currently use/plan to use at least one campaign *Metrics and salary costs based on Forrester executive survey Based on 2 8 million pieces of email per month CPM ranges grow survey. 2.8 month, with program complexity, assumes $39 AOV, 40% product margin Source: Forrester Q1 2009 Global Email Marketing and On-site Targeting Online Survey, Model 07/09 24 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Recommendations to implement • Become an advocate for change. Assess your organization's readiness to embrace change. Begin with the end in mind mind. • Understand the value of your subscribers, focus on their behaviors — segment and target to drive relevance. • Make it easy for consumers to share information with a lot of people q p p quicklyy • Learn about the specific social behaviors of your customers before creating a social strategy g gy • Use email as the “connector” between the various consumer touchpoints that you maintain • Test, test, test: Embrace the notion of failure! 28 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Thank-you! David Daniels Vice President and Principal Analyst ddaniels@forrester.com 732.282.0122 Learn more at: forrester.com emailmarketinganhouraday.com

Text to Win Apple iPod Touch or Shuffle by 4:15 pm TODAY Text T t ACXIOM to 229466 t 31

Say Hello to the New Marketing Democracy Power to the people Everyone can contribute; Everyone has influence; Everyone has a voice. Empowered by digital channels, people now “vote in” for the winners vote in & losers in the battle for their hearts, minds & wallets — & THEY decide when & where these “elections” are held Text ACXIOM to 229466 to win an Apple iPod Touch or 32 Shuffle

In the New Marketing Democracy… • Consumers trust each other more than they trust you • Online conversations… – Persist…forever – Immediately global & potentially hyper-local • Word of mouth… amplified by Internet & mobile 33

In the New Marketing Democracy • Non-linear accounts for 1/3 o o ea accou s o /3 of mass-market TV viewing • Media glut = tuning out g g – Between 30–50% of users have spam blockers – At least 20% have pop-up blockers – 58% regularly delete the tracking cookies • People don’t share ads… they read & share things that interest them… 34 Sources: Ramsey Report, eMarketer, Oliver Wyman

Say Hello to the New Marketing Democracy Media hyper saturation hyper-saturation + Time-shifting technologies + Selective filtering Consumers who choose to remain “unaware” until they inform themselves “Google always gets me everything I want, whenever I want it, so I don’t have to pay attention until it’s convenient for me” Your marketing is a faucet with each pg customer’s hand on the spigot 35

Marketing Democracy in Action 15 November 2008 5 o e be 008 • Motrin TV spot posted on web site pokes fun at mothers with versus baby carriers y • Ad becomes most discussed subject on Twitter 16 November 2008 • Angry mom posts 9-minute video on YouTube • McNeil pulls that ad that night 36 New York Times November 2008

Marketing Democracy in Action March 2008 • On fli ht from H lif O a flight f Halifax, C Canada, t a gig i d to i in Omaha, United baggage handlers break Dave Carroll’s expensive guitar • For the next 14 months United refuses to accept responsibility versus 6 June 2009 • Dave posts 4:36 music video on YouTube about the lack of care and response from United (5.5 million views) • Numerous newspaper and TV stations pick up the story 10 June 2009 • Dave posts follow-up video on YouTube announcing that United has made him an offer of restitution (350,00 views) 25 July 2009 • “Hitler Finds Out United Breaks Guitars” posted to YouTube (22 500 views) (22,500 37

Marketing Democracy in Action • 5 May 2009 – Oprah announces meal promotion from KFC on her show – The coupons were available on VS. Oprah.com for 24 hours – #1 t di t i on T itt trending topic Twitter • 6 May 2009 – Bulletin boards/blogs lit up with angry consumers d i d denied chicken – KFC Denies Riot In NYC New York Times November 2008 38

May 7th—KFC President Goes on YouTube 39

KFC Twitter Feed Customer Service 40

Election Results • Chicken – KFC gave away over 4 million meals • Traffic – KFC.com traffic quadrupled after Oprah • Buzz – KFC generally popped up in about 538 blog posts daily with 72% of daily, mentions positive – During the promotion, that number soared to 1,319 mentions, 89% of which were positive – Facebook followers up by 10,000 for the corporate profile Text ACXIOM to 229466 to win an Apple iPod 41 Touch

One Final Reminder… • When your prospect is in the store will they remember store, this? • Or this…. 42

How To Win Elections in The New Marketing Democracy 43

How To Win Elections The “Groundhog Day” • Remember e e y interaction e e be every e ac o theory of marketing (and learn!) – Know where I’ll be seeing you – Whenever & wherever I see you, recognize me & treat me like an old friend • Seek to understand & predict – Build strategies around me – Find more people like me – Know what I might – & might not – be interested in at that moment http://www.youtube.com/watch?v=9hq5jZrF 44 TbE

Fuse Insight into the Voter Message Ensuring Message Relevancy su g essage e e a cy • Personalize interactions – Past behavior – Future interests – People like me – How much is this relationship worth? • Relevancy considerations – Prospects versus customers – Awareness versus consideration – Engagement channel 45

Winning Elections – Critical Success Factors Determine who to target, where cus o e s a e agg ega g a d ee e o o a ge , e e customers are aggregating and which social channel works best for your brand/offer Identify a clear objective e.g. grow fan base, communicate with brand advocates, drive business to website or engage via a cross- , g g channel promotion and lay out metrics to define success Design a campaign that activates customers to work on the brand’s behalf Create a benefit for customers to “follow” your brand Individual or personal expression! Test content to select individuals to determine best opportunity to “go viral” Measure ROI* *Return on Investment or Insight 46

Enlist the Support of Your Biggest Fans Imagine if you could identify socially active influencers and engage those influencers to stimulate positive buzz, behavior and conversations. Wide Netters Selectively Social Your B Y Brand. d Social Placeholders Getting Started Acxiom provides marketers the ability to recognize and participate in this social exchange using an email address as a conduit to engage and ignite conversations creating word of mouth. 47 47

Social Influencer at a Glance 1. Benchmark customer and brand 2. Converse with people to catalyze p p y 3. Measure and report direct social activity brand participation via social response to messaging as well as channels changes in social activity Acxiom Conversation Stimulation & Client Data Data collected: • Memberships • User • Friendships Generated • Conversations Content Social Influencer Dataset 48

Ten More Election Tactics • Positive word of mouth (referrals) • Solicit product feedback • Talk to your consumers y • Listening platform to monitor public comment • Recruit people to events • Understand sentiment on markets sooner • Cause related marketing • Manage your reputation M t ti • Search Engine Optimization • Micro-target ideal customers 49

Delivering the Vote in a Marketing Democracy 4x “Orders per thousand” 3x Revenue / ad dollar – Publisher – Concentration multiplier 3x Applications; 5x online 17x Response to TV commercial revenue; same h d count head t – Financial institution – Credit originator $135M Revenue 2x Online bookings – Telco e co – H Hospitality it lit $200M Revenue / $4.5M OpEx 7.5x Website spend savings via trigger marketing – Retailer – Technology 12x Targeted site traffic 2x Industry retention rates – Card issuer – Consumer electronics 50

The Marketing Democracy Always Decides Owned Portable Music It’s not enough… but couldn’t A great customer base become A great product Owned A great strategy A great team On- On-Demand Info A consistent message but couldn’t become Owned Marketing will never be Movie Inventory the same but couldn’t become 51

In Conclusion • Relevance grounded in Relevance, P.S.: P S : These are the lessons of customer recognition direct marketing • Institutional memory at every touch point • Insight without execution… is pointless • Put your fans to work for They work across all you channels 52

Thank you. Questions? The l b l interactive marketing services company Th global i t ti k ti i www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com 53 /Acxiom /acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation

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Social Media By The Numbers - Global Marketing Performance Series - 120309

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Social Media By The Numbers - Global Marketing Performance Series - 120309 — Presentation Transcript