Drexel University Marketing Study Strategies & Tactics Peer-To-Peer & Viral Marketing Monday, January 22, 2007

P2P Viral Marketing Implementation Ideas and Practices Eric Haeker, Consultant Ben Camp, Education & Artistic Coordinator, Arts in Motion, Inc.

Implementation Roadmap Understanding the P2P Paradigm Five Stages of Successful Activation Finding Activators Motivating Activators Enabling Tools Implementation Strategies Post Activation Essentials Challenges & Lessons Learned

Understanding the P2P Paradigm

Five Stages of Successful Activation

Finding Activators

Motivating Activators

Enabling Tools

Implementation Strategies

Post Activation Essentials

Challenges & Lessons Learned

Understanding the P2P Paradigm A. How is this different? Goal is to motivate resellers, not direct sales Leverages social context and values, not product Relies on word of mouth (sticky factor) Assumes late buying (exponential curve) Gives control to consumers (Brand Hijack)

A. How is this different?

Goal is to motivate resellers, not direct sales

Leverages social context and values, not product

Relies on word of mouth (sticky factor)

Assumes late buying (exponential curve)

Gives control to consumers (Brand Hijack)

Understanding the P2P Paradigm The viral analogy Brand “infection” Carriers and transmitters Benevolent mutation Exponential propagation

The viral analogy

Brand “infection”

Carriers and transmitters

Benevolent mutation

Exponential propagation

Understanding the P2P Paradigm Two examples Red Bull Arts in Motion

Two examples

Red Bull

Arts in Motion

Example 1: Red Bull Concerto for Turntable DJ Radar at Carnegie Hall, Oct. 2, 2005

Understanding the P2P Paradigm Red Bull Results “ The hall was packed with people in their 20s, brought there by what Red Bull calls ‘viral marketing,’ which (with obvious success) relies on word of mouth.” Greg Sandow, Wall Street Journal (10/13/05)

Red Bull Results

“ The hall was packed with people in their 20s, brought there by what Red Bull calls ‘viral marketing,’ which (with obvious success) relies on word of mouth.”

Greg Sandow, Wall Street Journal (10/13/05)

Example 2: Arts in Motion Visual Music and Classical Fusion in Philadelphia

Example 2: Arts in Motion Visual Music and Classical Fusion in Philadelphia

Example 2: Arts in Motion Visual Music and Classical Fusion in Philadelphia

Understanding the P2P Paradigm Arts in Motion Results: Press It was strange how natural it all seemed. I turned around in search of the suits and Playbills in hand that over run any orchestra hall, but all I saw were pints and sneakers moving around on the dance floor. www.paperstreet.com , (January 2004) The point was proved: there is a home for classical music in the future of DJs and musical computer programs. www.paperstreet.com (January 2004).

Arts in Motion Results: Press

It was strange how natural it all seemed. I turned around in search of the suits and Playbills in hand that over run any orchestra hall, but all I saw were pints and sneakers moving around on the dance floor.

www.paperstreet.com , (January 2004)

The point was proved: there is a home for classical music in the future of DJs and musical computer programs.

www.paperstreet.com (January 2004).

Understanding the P2P Paradigm Arts in Motion Results: Attendance Data Official capacity of Mighty, a club in San Francisco: 500 Tickets pre-sold during ten days of viral marketing for DJ Radar with Arts in Motion String Quartet (12/16/05): 500 Total attendance when doors closed at midnight: over 1,000 Number still outside trying to get in at 1am: over 300

Arts in Motion Results: Attendance Data

Official capacity of Mighty, a club in San Francisco: 500

Tickets pre-sold during ten days of viral marketing for DJ Radar with Arts in Motion String Quartet (12/16/05): 500

Total attendance when doors closed at midnight: over 1,000

Number still outside trying to get in at 1am: over 300

Understanding the P2P Paradigm B. Types of Activators Chief Activator Lead Activators Activators Embedded Activators (Hot Spots) Field-Rated Activators (Outreach)

B. Types of Activators

Chief Activator

Lead Activators

Activators

Embedded Activators (Hot Spots)

Field-Rated Activators (Outreach)

Activator Pyramid & Powers of Ten 1 Chief Activator 10 Lead Activators 100 Activators a) embedded; b) field-rated 1,000 Responders Activated Attendance 1 11 111 1,111 Activated Total 1,111

Understanding the P2P Paradigm C. Types of Activation 1. In-Person (“Touch Points”) At least one to two minutes of in-person conversation about your project between an Activator and a target demographic prospect Previous relationship, legitimacy in eyes of prospect, and genuine shared values are key Eye contact and confidence are critical Usually facilitated by promo card

C. Types of Activation

1. In-Person (“Touch Points”)

At least one to two minutes of in-person conversation about your project between an Activator and a target demographic prospect

Previous relationship, legitimacy in eyes of prospect, and genuine shared values are key

Eye contact and confidence are critical

Usually facilitated by promo card

Understanding the P2P Paradigm C. Types of Activation 2. Electronic E-mail Text messaging Message boards Blogging MySpace.com Evite.com

C. Types of Activation

2. Electronic

E-mail

Text messaging

Message boards

Blogging

MySpace.com

Evite.com

Five Stages of Successful Activation Stage I: Finding the Activators You talk to potential Activators every day… Patrons and subscribers Single ticket buyers Your volunteers The guy behind the Starbucks counter Your hairdresser Taxi cab drivers Hotel concierges Marketing students looking for field study projects

Stage I: Finding the Activators

You talk to potential Activators every day…

Patrons and subscribers

Single ticket buyers

Your volunteers

The guy behind the Starbucks counter

Your hairdresser

Taxi cab drivers

Hotel concierges

Marketing students looking for field study projects

Stage I: Finding the Activators Three strategies Recruiting embedded Activators in “Hot Spots” Recruit your hairdresser to talk up event and hand out promo cards to clients Recruit the cashier at the trendy coffee shop to talk it up at the register

Three strategies

Recruiting embedded Activators in “Hot Spots”

Recruit your hairdresser to talk up event and hand out promo cards to clients

Recruit the cashier at the trendy coffee shop to talk it up at the register

Stage I: Finding the Activators Three strategies 2. Converting volunteers into Field-Rated Activators Send dedicated volunteers into the field to achieve Touch Points with promo cards Train them in your brand but give them the license to mutate it as needed

Three strategies

2. Converting volunteers into Field-Rated Activators

Send dedicated volunteers into the field to achieve Touch Points with promo cards

Train them in your brand but give them the license to mutate it as needed

Stage I: Finding the Activators Three strategies Online Social Networking (MySpace, etc.) Huge potential to reach thousands who have already self-selected into your Friend Space A patron-driven incubator for viral propagation Must let consumers drive brand evolution as policing consumer content will kill the buzz

Three strategies

Online Social Networking (MySpace, etc.)

Huge potential to reach thousands who have already self-selected into your Friend Space

A patron-driven incubator for viral propagation

Must let consumers drive brand evolution as policing consumer content will kill the buzz

The Online Social Networking Phenomenon Proliferation of online social spaces MySpace.com, Friendster.com, Care2Connect.com, CrowdFactory.com, Tribe.net, LinkedIn.com, Gather.com Google “MySpace Press” or similar topics for more information

Proliferation of online social spaces

MySpace.com, Friendster.com, Care2Connect.com, CrowdFactory.com, Tribe.net, LinkedIn.com, Gather.com

Google “MySpace Press” or similar topics for more information

Stage II: Motivating the Activators Three strategies 1. Leveraging Social Leadership Status Activators are “early adopters” They like to show off their “finds”

Three strategies

1. Leveraging Social Leadership Status

Activators are “early adopters”

They like to show off their “finds”

Stage II: Motivating the Activators Three strategies 2. Inside Access and Freebies Strategic comps as incentive Leverage corporate partnerships for freebies

Three strategies

2. Inside Access and Freebies

Strategic comps as incentive

Leverage corporate partnerships for freebies

Stage II: Motivating the Activators Three strategies 3. Cash Incentives? Activators keep a percentage of their activated sales Tiered: Lead Activators get more Use with caution… may disrupt the volunteer spirit if improperly implemented

Three strategies

3. Cash Incentives?

Activators keep a percentage of their activated sales

Tiered: Lead Activators get more

Use with caution… may disrupt the volunteer spirit if improperly implemented

Stage III: Enabling the Activators Three activation aids 1. Promotional Cards Can be given “cash value” via discount Can be tagged to help gather market data

Three activation aids

1. Promotional Cards

Can be given “cash value” via discount

Can be tagged to help gather market data

Red Bull Artsehcro Example

Simple promo cards invite web inquiry

Web fulfillment: consistent branding

Stage III: Enabling the Activators Three activation aids 2. Web Reinforcement Branding consistent with promo cards Detail not appropriate for card is online

Three activation aids

2. Web Reinforcement

Branding consistent with promo cards

Detail not appropriate for card is online

Stage III: Enabling the Activators Three activation aids 3. Electronic Messaging Engineering viral replication via pass-along e-mails, evites, MySpace messaging, etc. Message mutation (Brand Hijack is encouraged… your Activators know their targets better than you do)

Three activation aids

3. Electronic Messaging

Engineering viral replication via pass-along e-mails, evites, MySpace messaging, etc.

Message mutation (Brand Hijack is encouraged… your Activators know their targets better than you do)

Pass-along emails with special offers

Stage IV: Implementation Pre-planning is key 1. Project Timeline Viral growth curves are exponential with a steep ramp up at the end of the promotions (late buying) Promotional efforts are front loaded but results are hard to measure in early stages Requires advance planning and faith in eventual viral replication

Pre-planning is key

1. Project Timeline

Viral growth curves are exponential with a steep ramp up at the end of the promotions (late buying)

Promotional efforts are front loaded but results are hard to measure in early stages

Requires advance planning and faith in eventual viral replication

The “Late Ramp Up” Timeline Goal: Optimize the viral growth curve Most promotional energy invested early Most sales occur at end

Goal: Optimize the viral growth curve

Stage IV: Implementation Pre-planning is key 2. Optional Launch Strategy: The Kickoff Event Pick a Hot Spot and bring Activators Mini performance sampling, promo card distribution, etc. Builds WOM buzz early

Pre-planning is key

2. Optional Launch Strategy: The Kickoff Event

Pick a Hot Spot and bring Activators

Mini performance sampling, promo card distribution, etc.

Builds WOM buzz early

Stage IV: Implementation Pre-planning is key 3. Fueling Viral Propagation Keep checking in with Activators on status Continued Pass-Along e-mails, evite pushes, message boarding, etc.

Pre-planning is key

3. Fueling Viral Propagation

Keep checking in with Activators on status

Continued Pass-Along e-mails, evite pushes, message boarding, etc.

Stage V: Post Activation Essentials Gathering data and retaining capacity 1. Buzz Check Post event blogging Patron publications online

Gathering data and retaining capacity

1. Buzz Check

Post event blogging

Patron publications online

Buzz Check: Post Event Blogging

Stage V: Post Activation Essentials Gathering data and retaining capacity 2. Number Crunching Analyze promo card and/or electronic tracking results (evite replies, etc.) Each Activator needs to track their own results (out of those you invited, who actually came?) Identify best performing groups and tactics (What gave the best percentage return?)

Gathering data and retaining capacity

2. Number Crunching

Analyze promo card and/or electronic tracking results (evite replies, etc.)

Each Activator needs to track their own results (out of those you invited, who actually came?)

Identify best performing groups and tactics (What gave the best percentage return?)

Stage V: Post Activation Essentials Gathering data and retaining capacity 3. Follow Up with Activators Kudos to all, positive reinforcement is key Graduating top performers up the pyramid

Gathering data and retaining capacity

3. Follow Up with Activators

Kudos to all, positive reinforcement is key

Graduating top performers up the pyramid

Graduating Up the Activator Pyramid Lead Activators Activators a) embedded; and b) field-rated Responders

Challenges & Lessons Learned Realistic expectations are critical… Adaptation of P2P model to arts is in infancy For now, P2P works best with younger audience that is already plugged in to P2P tech culture For-profit successes are not always replicable in the arts (different budgets & products) Recruiting and training Activators takes time Developing effective tactics takes trial & error

Realistic expectations are critical…

Adaptation of P2P model to arts is in infancy

For now, P2P works best with younger audience that is already plugged in to P2P tech culture

For-profit successes are not always replicable in the arts (different budgets & products)

Recruiting and training Activators takes time

Developing effective tactics takes trial & error