How Savvy Brands in the UK are Unleashing the Power of Social Media

Slide 1: Harnessing Influence How Savvy Brands in the UK are Unleashing the New Power of Blogs and Social Media March 18, 2008 1

Slide 2: Introducing the Presenters Jim Nail Chief Strategy & Marketing Officer TNS Media Intelligence/Cymfony Philip Lynch Evaluation Director TNS Media Intelligence UK 2

Slide 3: Influence 2.0 Webinar Series TM • This webinar is the latest in a series of educational webinars with to help TM companies harness Influence 2.0 • Consumers are openly sharing opinions and experiences about your product causing a complex interplay of traditional and social media • Cymfony helps brands and companies understand and manage the people, issues and trends in this new dynamic of consumer communication 3

Slide 4: Please submit your questions in the Q&A area in lower right corner of your Webex interface 4

Slide 5: How Savvy Brands are Unleashing the Power of Social Media Consumers are now controlling brands in social media, but has the business world adapted? Has the business world figured out how to use blogs, discussion boards, social networks and video sites? What roles do social media have in marketing strategy? TNS asked marketing executives from large companies located in four countries around the world to discuss the current state and future direction of social media in their business 5

Slide 6: About the Study • 71 personal telephone interviews • Senior level marketing executives • United States, Canada, United Kingdom, and France • Conducted in the late 2007 • Released globally on Feb 28 • Report available at www.SocialMediaInBusiness.com • This webinar addresses the UK perspective 6

Slide 7: UK Companies Recognize its Importance • Which of the following statements most closely matches your personal point of view on the potential impact social media will have on business? This is a passing fad This is worth monitoring UK Should be monitored Total at executive level with significant resources This is a revolutionary new opportunity 0% 20% 40% 60% 80% 7

Slide 8: The Greatest Value is in Gaining Insights • For which one of the following objectives does social media offer the greatest potential? Gaining consumer insights Building brand awareness Enhancing corporate reputation Launching a new UK product Total Increasing customer loyalty Increasing purchase intent Dk/Ref 0% 10% 20% 30% 40% 50% 8

Slide 9: UK Companies are More Research Focused • Please rate each of the following social media resources or opportunities on their future potential to impact your business. Reading and analyzing relevant social media to understand consumer perceptions Creating word of mouth marketing campaigns Social networks UK Engaging with relevant influential bloggers Total Creating a brand or corporate blog Posting videos Using social media as a new advertising channels 0% 10% 20% 30% 40% 50% 60% 70% 80% 9

Slide 10: Less Value Seen for Product Launches • How effective do you feel blogs and social media options can be if used as an integral part of the formal launch of a new service or product brand? Creating "viral campaigns" Creating a 'user community' of bloggers Creating a competition on Myspace/YouTube Identifying bloggers and invite them UK to trial Total The use of conventional media to reference content on blogs Creating blogs that targets journalists Creating a dedicated page on Myspace 0% 10% 20% 30% 40% 50% 60% 10

Slide 11: UK Companies are Polarized • Which of the following statements best describes the stage of development of social media efforts at your company? Learning Experimentation UK Total Expansion Integration 0% 10% 20% 30% 40% 50% 11

Slide 12: Internal Issues are Slowing Acceptance • What is the greatest barrier to acceptance/implementation of social media in your organization? Lack of senior management attention Lack of knowledge from marketing partners Lack of knowledge on marketing team UK Total Lack of best practices, proven models Insufficient budget Other 0% 10% 20% 30% 40% 12

Slide 13: UK is Optimistic, But More Cautious • How significant will social media be for companies five years from now? Very Significant Some Significance UK Total Little Significance Dk/Ref 0% 10% 20% 30% 40% 50% 60% 70% 13

Slide 14: Key Takeaways for UK Companies 1. UK is more cautious about social media than other countries 3. UK takes a research approach to social media, but they are missing the opportunity to participate in the discussion 5. Social networks dominate attention, don’t miss the opportunity to engage consumers with other social media tools 7. Convincing senior management is key to continues success 14

Slide 15: Becoming “Best-in-Class” • Cymfony sponsored an Aberdeen Group study of social media best practices • Interviews with 250 companies to determine how social media impacts their business • They identified how the “Best-in- Class” generate business results with social media 15

Slide 16: The Business Impact of Being “Best-in-Class” Laggards Industry Average Best-in-Class 84% Customer Retention 48% 20% 83% ROMI 46% 19% Ability to Predict 76% Customer Behavior 40% 11% Timeliness of Marketing 72% Decisions 44% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Aberdeen Group, January 2008 16

Slide 17: Develop Formalized Business Processes 65% Formalized process for monitoring consumer- 31% generated content 18% Formalized process for 48% analyzing consumer- 24% generated content 13% Formalized process for 42% detecting potential Best-in-Class 26% threats to the brand Industry Average ('Early warning system') 16% Laggards 0% 10% 20% 30% 40% 50% 60% 70% Source: Aberdeen Group, January 2008 17

Slide 18: Gain Organizational Support Cross-functional resource commitment from 56% different departments within the organization 35% 24% Dedicated personnel devoted to social media 52% monitoring 34% 24% Dedicated operations resources (i.e., budget 52% allocation) 28% 23% 43% Centralized data repository 34% 19% Best-in-Class Industry Average Laggards 0% 10% 20% 30% 40% 50% 60% Source: Aberdeen Group, January 2008 18

Slide 19: Define Your Measurement Metrics Defined metrics for 70% measuring campaign 32% and promotion success 20% Defined campaign and 50% promotion analysis 31% metrics 21% Defined metrics for 38% measuring the value of 19% market research 16% Defined metrics for 34% Best-in-Class measuring new product development 18% Industry Average opportunities 9% Laggards 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Aberdeen Group, January 2008 19

Slide 20: Become Actively Engaged Active Engagement: In addition to monitoring 84% and analyzing consumer 66% conversations, our company contributes 50% to the conversations. Passive Engagement: Our company only 16% Best-in-Class monitors and analyzes consumer 34% Industry Average conversations; we do not contribute to the 50% Laggards conversations. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Aberdeen Group, January 2008 20

Slide 21: Benefits of Active Engagement Rarely Post Occasional Posts Regular Posts Frequent Posts 76% 62% Customer Satisfaction 57% 50% Actionable Insights 75% Derived from Social 62% Media Monitoring and 57% Analysis 30% 62% Customer Retention 57% 56% 50% 60% Ability to Identify and 44% Reduce Risk 44% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% Percentages indicate the number of companies that improved performance in key metrics. Source: Aberdeen Group, January 2008 21

Slide 22: How To Be “Best-in-Class” Aberdeen Suggests: Cymfony Provides: 1. Accelerate adoption of social 1. Comprehensive analysis of social media tools media conversations surrounding your brand 1. Define and measure key social 1. A real-time dashboard of key media metrics metrics and detailed analysis reports 1. Dedicate personnel and resources 1. Specific recommendation for your to social media monitoring and team to implement analysis on an ongoing basis Source: Aberdeen Group 22

Slide 23: Analyzing Metrics in Orchestra 23

Slide 24: Analyzing Tonality 24

Slide 25: Cymfony’s Orchestra Dashboard 25

Slide 26: Please submit your questions in the Q&A area in lower right corner of your Webex interface 26

Slide 27: Keep the Discussion Going Jim Nail jnail@tnsmi-cymfony.com Join Our Discussion Philip Lynch On Facebook philip.lynch@tnsglobal.com Discuss these issues with others marketers around the world in our new Facebook group Join Today! www.SocialMediaInBusiness.com 27