DIGIDAY BRAND SUMMIT 2013

Reality Advertising:

How Brands can use Earned to create more effective Paid
Mike Hermus
Chief...
Consumers are bombarded with brand
messages, making it harder for digital ads to break
through

@mikehermus @housepartyinc...
Some newer channels are showing promise
in reaching consumers but…

0.58

0.11
Facebook news feed ads

@mikehermus @housep...
Study after study confirms that earned is #1 in
terms of consumer trust
Degree of consumer trust in the following forms of...
The challenge for marketers

Creating earned with
the scale and targeting
of mass media

@mikehermus @housepartyinc

5
What if you could…

Combine the scale &
targeting of digital media
with the power and
effectiveness of earned
content/cons...
Introducing… Reality Advertising!
“Reality Advertising is an
innovative solution that
uses earned content as
creative for ...
What’s at the core of Reality Advertising? UGC!
A user generated image of a positive product experience
is memorialized re...
Make that content the centerpiece of a digital ad
campaign

@mikehermus @housepartyinc

9
THREE QUESTIONS YOU’RE
BOUND TO ASK

@mikehermus @housepartyinc

10
1. HOW DOES IT RELATE TO
CONTENT MARKETING?

@mikehermus @housepartyinc

11
Typically, it’s the marketers creating the content

@mikehermus @housepartyinc

12
In reality advertising, the consumer creates the
content for you

@mikehermus @housepartyinc

13
2. HOW DOES IT RELATE TO
NATIVE ADVERTISING?

@mikehermus @housepartyinc

14
Native advertising is all about the format

@mikehermus @housepartyinc

15
Reality Advertising is about the content
Reality Ad—Non-Native Format
Reality Ad—Native Format

@mikehermus @housepartyinc...
3. WHY IS IT CALLED REALITY
ADVERTISING?

@mikehermus @housepartyinc

17
Reality TV and Reality Ads are both rooted in real
people having real experiences

@mikehermus @housepartyinc

18
How Reality Advertising differs from Reality TV?

Authenticity

@mikehermus @housepartyinc

19
@mikehermus @housepartyinc

20
Bringing Reality Advertising to life starts with real
consumers sharing real stories

@mikehermus @housepartyinc

21
1. Identify your advocates
Driving successful advocacy starts with finding the right people...

@mikehermus @housepartyinc...
2. Give them a great experience

The party was a success! I am in love with my new
SodaStream. My Mom already bought one. ...
3. Provide the tools to capture and share UGC

@mikehermus @housepartyinc

24
4. Make sure you have permission

Pick the right platform
Mind your Ts & Cs
Opt-ins are your friends

@mikehermus @housepa...
YOU HAVE THE
CONTENT,

@mikehermus @housepartyinc

NOW WHAT?

26
Take that content and execute a digital
ad campaign!

Identify brand
objectives/goals

Develop ad units and copy

Curate t...
Optimization in more detail

Current Technology is very powerful
But you need options to optimize against
User-generated c...
Reality Advertising: The Results

+190%

+75%

+66%

+18%

+15%

Click-Thru Rate

Engagement Rate

Post Likes
Standard Cre...
Maximizing Impact: Photo Posts

+313%

+136%
+76%
+34%

Click-Thru Rate

Engagement Rate

Post Likes
Standard Creative

@m...
What about the top performing ads?

Click-thru rate of 2.1%
Non-click engagement rate of 3.6%

Total post engagement of 5....
For each $ spent on UGC vs. stock assets, brands
received:
1.2 times as many page likes
1.3 times as many post likes
1.8 t...
Key takeaways
„Reality Advertising‟ is all about the content—but it is user generated
content captured from authentic expe...
Thank You!

DIGIDAY BRAND SUMMIT 2013

Mike Hermus
Chief Product & Technology Officer
@mikehermus
@housepartyinc

about.ho...
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DBS Lunch Workshop with House Party: Reality Advertising

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There's a lot of talk about paid, owned, and earned media, and just as much about content marketing. What if you could leverage your earned media, specifically user-generated content, to create more engaging, effective paid media? Meet "reality advertising" – an innovative solution that fuses earned content and paid media, creating highly targeted ads that stand out in the cluttered social and digital ad space. In a session led by House Party's Chief Product & Technology Officer, you'll see firsthand how the content consumer advocates create can be combined with state of the art data and targeting tools for more effective digital advertising.

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  • Kristin gets hand off here…So as we said earlier, the first step is getting the right content – and it all starts with real consumers sharing real stories. There are 4 key steps to making that happen.
  • DBS Lunch Workshop with House Party: Reality Advertising

    1. 1. DIGIDAY BRAND SUMMIT 2013 Reality Advertising: How Brands can use Earned to create more effective Paid Mike Hermus Chief Product & Technology Officer @mikehermus @housepartyinc DIGIDAY BRAND SUMMIT 2013 1 © 2013 House Party, Inc.
    2. 2. Consumers are bombarded with brand messages, making it harder for digital ads to break through @mikehermus @housepartyinc 2
    3. 3. Some newer channels are showing promise in reaching consumers but… 0.58 0.11 Facebook news feed ads @mikehermus @housepartyinc Typical display ads 3
    4. 4. Study after study confirms that earned is #1 in terms of consumer trust Degree of consumer trust in the following forms of advertising* Recommendations from people known Consumer opinions posted online Brand websites Editorial content (e.g., newspaper article) Emails signed up for Brand sponsorships TV Magazines Billboards/outdoor advertising Newspaper Radio Ads before movies Search engine results ads Online video ads Online banner ads Display ads on mobile devices Text ads on mobile phones 58% 58% 50% 47% 47% 47% 47% 46% 42% 41% 40% 36% 33% 33% Source: The Nielsen Company (April 2012) 29% 0% @mikehermus @housepartyinc 92% 70% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4
    5. 5. The challenge for marketers Creating earned with the scale and targeting of mass media @mikehermus @housepartyinc 5
    6. 6. What if you could… Combine the scale & targeting of digital media with the power and effectiveness of earned content/consumer to consumer content? @mikehermus @housepartyinc 6
    7. 7. Introducing… Reality Advertising! “Reality Advertising is an innovative solution that uses earned content as creative for paid media, producing highly targeted ads that stand out in the cluttered social and digital ad space.” @mikehermus @housepartyinc 7
    8. 8. What’s at the core of Reality Advertising? UGC! A user generated image of a positive product experience is memorialized recommendation for all to see Relevant Resonant Authentic @mikehermus @housepartyinc 8
    9. 9. Make that content the centerpiece of a digital ad campaign @mikehermus @housepartyinc 9
    10. 10. THREE QUESTIONS YOU’RE BOUND TO ASK @mikehermus @housepartyinc 10
    11. 11. 1. HOW DOES IT RELATE TO CONTENT MARKETING? @mikehermus @housepartyinc 11
    12. 12. Typically, it’s the marketers creating the content @mikehermus @housepartyinc 12
    13. 13. In reality advertising, the consumer creates the content for you @mikehermus @housepartyinc 13
    14. 14. 2. HOW DOES IT RELATE TO NATIVE ADVERTISING? @mikehermus @housepartyinc 14
    15. 15. Native advertising is all about the format @mikehermus @housepartyinc 15
    16. 16. Reality Advertising is about the content Reality Ad—Non-Native Format Reality Ad—Native Format @mikehermus @housepartyinc 16
    17. 17. 3. WHY IS IT CALLED REALITY ADVERTISING? @mikehermus @housepartyinc 17
    18. 18. Reality TV and Reality Ads are both rooted in real people having real experiences @mikehermus @housepartyinc 18
    19. 19. How Reality Advertising differs from Reality TV? Authenticity @mikehermus @housepartyinc 19
    20. 20. @mikehermus @housepartyinc 20
    21. 21. Bringing Reality Advertising to life starts with real consumers sharing real stories @mikehermus @housepartyinc 21
    22. 22. 1. Identify your advocates Driving successful advocacy starts with finding the right people... @mikehermus @housepartyinc 22
    23. 23. 2. Give them a great experience The party was a success! I am in love with my new SodaStream. My Mom already bought one. My sister and my Aunt are planning on buying one. Everyone loved it! The kids thought the process was really neat with the sounds and bubbles. The boys loved the sidewalk chalk, beachball, visors, and the water balloons provided in the kit! Even the adults got in on some of the fun. We played games, ate dinner, and enjoyed fresh drinks in so many different flavors all day long!! —chantalmalfoy @mikehermus @housepartyinc 23
    24. 24. 3. Provide the tools to capture and share UGC @mikehermus @housepartyinc 24
    25. 25. 4. Make sure you have permission Pick the right platform Mind your Ts & Cs Opt-ins are your friends @mikehermus @housepartyinc 25
    26. 26. YOU HAVE THE CONTENT, @mikehermus @housepartyinc NOW WHAT? 26
    27. 27. Take that content and execute a digital ad campaign! Identify brand objectives/goals Develop ad units and copy Curate the content Set appropriate audience targeting Pick your channel/platform Optimize! @mikehermus @housepartyinc 27
    28. 28. Optimization in more detail Current Technology is very powerful But you need options to optimize against User-generated content can provide lots of options “Know, don‟t guess” @mikehermus @housepartyinc 28
    29. 29. Reality Advertising: The Results +190% +75% +66% +18% +15% Click-Thru Rate Engagement Rate Post Likes Standard Creative @mikehermus @housepartyinc Page Likes Photo Views UGC 29
    30. 30. Maximizing Impact: Photo Posts +313% +136% +76% +34% Click-Thru Rate Engagement Rate Post Likes Standard Creative @mikehermus @housepartyinc +23% Page Likes Photo Views UGC 30
    31. 31. What about the top performing ads? Click-thru rate of 2.1% Non-click engagement rate of 3.6% Total post engagement of 5.7% Approximately 90% better than standard creative @mikehermus @housepartyinc 31
    32. 32. For each $ spent on UGC vs. stock assets, brands received: 1.2 times as many page likes 1.3 times as many post likes 1.8 times as many clicks 1.8 times as many conversions 4 times as many photo views @mikehermus @housepartyinc 32
    33. 33. Key takeaways „Reality Advertising‟ is all about the content—but it is user generated content captured from authentic experiences—the ability to create/find/capture this content is critical Campaigns can be executed in any channel or format that provides a large enough viewable image. Native social formats are a natural fit, but by no means the only option Optimization can really be leveraged when you have a lot of good quality UGC to choose from—get 100 images and let the data quickly tell you which resonates with your target audience The results speak for themselves— “Authenticity Trumps Perfection”: significantly more clicks, more conversions, and more engagement per dollar spent @mikehermus @housepartyinc 33
    34. 34. Thank You! DIGIDAY BRAND SUMMIT 2013 Mike Hermus Chief Product & Technology Officer @mikehermus @housepartyinc about.houseparty.com © 2013 House Party, Inc. 34

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