Commercial Co-Venture (CCV) Promotions: An Overview


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This presentation provides an overview of best practices in promotion strategy, design and execution, with special focus on considerations specific to CCV promotions.
It is targeted to marketing professionals for national or global brands for whom legal compliance is essential to mitigating risk.

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  • Illustrating what is meant by brand community.
  • Illustrating the symbiotic relationship between conversion events and other forms of value generated through social media marketing. Explain how conversion still matters and ought to be thought of as central, key indicator of effectiveness. From a tactical POV, social media should be thought of as capable of delivering all four value types – because in fact, it does.
  • Commercial Co-Venture (CCV) Promotions: An Overview

    1. 1. Commercial Co-Venture (CCV) Promotions: An Overview Q4 2011 © Gage Marketing Group, LLC 206-330-6396 Addressing Legal Compliance Promotion Dialog: Two Key Question to Address Sweepstakes Versus a Contest: Common Misperceptions The Role of Prizes Promotions and Social Media Defining Success with Your Promotion Corporate Co-Venture (CCV) Integration 2 3 4 1 5 6 7 Gage at a Glance 8
    2. 2. Abstract <ul><li>Presentation is a high level overview of best practices in CCV promotion strategy </li></ul><ul><li>Presentation is targeted to marketing professionals for national or global brands, for whom legal compliance is essential to mitigating risk </li></ul><ul><li>Skilled legal guidance is as essential for CCVs as with any form of promotional marketing </li></ul>
    3. 3. Raising Awareness through a Promotion? <ul><li>Is raising awareness of a product / service an goal? </li></ul><ul><li>Historically “awareness” has been the job of advertising </li></ul><ul><li>Advertising made customers aware; promotion gave the incentive to take a specific action </li></ul><ul><li>We need to ask WHY and WHAT questions to determine what specific behavior we should drive </li></ul>
    4. 4. We want to raise awareness with consumers. Did we address the “WHY?” A Typical Dialog within a Promotion ?
    5. 5. A Typical Dialog within a Promotion <ul><li>WHY? “Because we have a new product that is perfect for a consumer.” </li></ul>? :-o
    6. 6. A Typical Dialog within a Promotion <ul><li>OK, WHAT do you want the consumer to know, or do, or think about this new product? </li></ul><ul><li>Client: “We want them to learn about the features and benefits and be motivated to buy it.” </li></ul>;-)
    7. 7. <ul><li>The client just identified the specific actions. </li></ul>A Typical Dialog within a Promotion $
    8. 8. What are the promotions I could consider? <ul><li>Coupons </li></ul><ul><li>Rebates </li></ul><ul><li>BOGOs (Buy One Get One) </li></ul><ul><li>Mail-in offers </li></ul><ul><li>Premiums (gift with purchase) </li></ul><ul><li>Sampling </li></ul><ul><li>In-packs / on-packs / special offers </li></ul><ul><li>Sweepstakes </li></ul><ul><li>Contests </li></ul>
    9. 9. What game mechanics should I consider? <ul><li>Communal Discovery: An entire community is rallied to work together to solve a riddle, a problem or a challenge. </li></ul><ul><li>Epic Meaning: Players highly motivated if they believe they are working to achieve something great, awe-inspiring, bigger than themselves. </li></ul><ul><li>Lottery: Winner is determined solely by chance. Creates a high level of anticipation. </li></ul><ul><li>Leader boards: Rankings of all individuals in a micro-set. For distributed game dynamics where you want many micro-competitions or desire to induce loyalty. </li></ul>
    10. 10. What game mechanics should I consider? <ul><li>Countdown: Players are given a certain amount of time to do something. Creates an activity graph that causes increased initial activity, increasing frenetically until time runs out. </li></ul><ul><li>Envy: Desire to have what others have. To be effective, it must be possible for participants to see what other people have. </li></ul><ul><li>Progression Dynamic: Success is granularly displayed and measured through the process of completing itemized tasks. </li></ul><ul><li>Viral: Game element that requires multiple people to play (or that can be played better with multiple people) </li></ul>
    11. 11. The terms “Sweepstakes” and “Contest” are not interchangeable
    12. 12. Promotion Types: Sweepstakes vs. Contests <ul><li>Sweepstakes and Contests are types of promotions. </li></ul><ul><li>They are similar because they both use prizes as a way to entice consumers to take a specific action and drive behavior. </li></ul><ul><li>Sweepstakes are games of chance. There are two types: </li></ul><ul><ul><li>Random Draw </li></ul></ul><ul><ul><li>Instant Win </li></ul></ul><ul><ul><li>… These are typically open to a broad audience </li></ul></ul><ul><li>Contests are skill-based - there is no chance involved </li></ul><ul><ul><li>Criteria & judging is used to determine winners </li></ul></ul><ul><ul><li>… These are typically open only to current customers/users </li></ul></ul>
    13. 13. Prizing <ul><li>What is the role (purpose) of a prize? </li></ul><ul><li>A prize is the… </li></ul><ul><ul><li>Reward </li></ul></ul><ul><ul><li>“ Shiny” object </li></ul></ul><ul><ul><li>Incentive </li></ul></ul><ul><ul><li>Payoff </li></ul></ul><ul><ul><li>Bonus </li></ul></ul><ul><ul><li>Etc. </li></ul></ul><ul><li>… used to incent people to take the specific action. </li></ul><ul><li>Many will enter, few will win </li></ul>
    14. 14. Prizing Analogy <ul><li>You want your daughter to put away her toys every night before she goes to bed [Specific behavior: put away toys] </li></ul><ul><li>To encourage her to take the action, you offer a “ prize ” [She gets to spend $5 next trip to the store] </li></ul><ul><li>Your daughter puts away her toys every night [Primary objective met] </li></ul><ul><li>Your child spends $5 at the store. [You are happy because the incentive worked to get her to take the specific action; she is happy because she got $5 to spend at the store] </li></ul>
    15. 15. Guidance on Prizes <ul><li>Does the prize need to appeal to the target audience? [Yes] </li></ul><ul><li>Does a prize need to be high-value? [No] </li></ul><ul><li>Are prizes the reason to run a sweepstakes or contest? [No. The reason is to Get consumers to take a specific behavior ] </li></ul><ul><li>Should prizes be related to the brand/product? [Can’t hurt!] </li></ul><ul><li>Should prizes be front and center in all communications? </li></ul><ul><ul><li>Yes and No. We should strike a balance between: </li></ul></ul><ul><ul><ul><li>The product / service / brand </li></ul></ul></ul><ul><ul><ul><li>The specific action </li></ul></ul></ul><ul><ul><ul><li>The prizes </li></ul></ul></ul>
    16. 16. Prizing Continued… <ul><li>Once a consumer takes the specific action – we’ve helped the client meet their primary goal/objective </li></ul><ul><li>We simply used a prize as an incentive for that behavior </li></ul>
    17. 17. Does the number of entries equal Success? <ul><ul><ul><ul><li>Yes and No. Depends on the specific action, type of promotion and tactical execution... </li></ul></ul></ul></ul><ul><ul><ul><ul><li>For example: </li></ul></ul></ul></ul><ul><li>YES, if the specific actions were: </li></ul><ul><ul><li>Visit our site to learn more about our products/services </li></ul></ul><ul><ul><li>Enter our sweepstakes </li></ul></ul><ul><li>NO, if your specific action was: </li></ul><ul><ul><li>Buy our product </li></ul></ul><ul><ul><li>… and although many entered, no purchase was required and few products were sold </li></ul></ul>
    18. 18. Summary: Setting objectives and expectations for driving the correct behavior and action for your promotion are essential.
    19. 19. Promotion Tactics to Drive Awareness <ul><li>Where/how the promotion will be communicated/executed: </li></ul><ul><ul><li>Micro site / website / mobile site </li></ul></ul><ul><ul><li>Tear pad (at shelf, on-pack) </li></ul></ul><ul><ul><li>Package (outside/inside) </li></ul></ul><ul><ul><li>Social Media (Facebook, Twitter, etc.) </li></ul></ul><ul><ul><li>In stores (at shelf, at check out, flyer, etc.) </li></ul></ul><ul><ul><li>FSI </li></ul></ul><ul><ul><li>Events / booths </li></ul></ul><ul><ul><li>Print ads </li></ul></ul><ul><ul><li>Online banners </li></ul></ul><ul><ul><li>Radio, TV </li></ul></ul>
    20. 20. Importance of Legal <ul><li>Rules first </li></ul><ul><ul><li>Contract between Consumer and Sponsor </li></ul></ul><ul><ul><li>Guides structure and communications </li></ul></ul><ul><ul><li>All materials are subject to the Official Rules </li></ul></ul><ul><ul><li>Rules and Functional Requirements should be in sync </li></ul></ul><ul><li>Promotion must comply with State / Federal promotion laws </li></ul><ul><li>Will the promotion be global? </li></ul><ul><ul><li>Consider the complexities of addressing different countries’ laws; </li></ul></ul><ul><ul><li>Allow for enough time and resources </li></ul></ul><ul><li>Are you aware of all the risks? Does your agency offer indemnification from liability? </li></ul><ul><li>What is your liability mitigation strategy? </li></ul>
    21. 21. CCV Promotions
    22. 22. Why a CCV Promotion? <ul><li>When done correctly and with authenticity , CCV promotions can evolve your brand's perception from the benefits of your products and services to the values embodied in non-profits’ missions and activities </li></ul><ul><li>Example: NFL collaboration with the American Cancer Society </li></ul><ul><ul><li>Addressing breast cancer </li></ul></ul><ul><ul><li>Raising funds </li></ul></ul><ul><ul><li>Driving awareness </li></ul></ul>
    23. 23. Commercial Co-Venture (CCV) Overview <ul><li>A CCV is a way to structure a promotion that drives benefits for non-profit as well as for-profit organizations </li></ul><ul><li>Range from short term marketing campaigns to strategic, multi-year (and multi-dimensional) alliances </li></ul><ul><li>Verify that your corporate relationship agreement with any non-profit is consistent with your planned marketing activities </li></ul><ul><li>Do your values and culture align? (Ties back to authenticity) </li></ul>
    24. 24. Key Considerations for CCV Promotions <ul><li>State regulations vary re: CCV activities </li></ul><ul><ul><li>Ensure legal has capability to navigate and structure to comply across entire target geography </li></ul></ul><ul><ul><li>E.g., filings, registrations, approval process, fees, bonding and post-CCV reporting </li></ul></ul><ul><li>CCV’s can also be very time consuming </li></ul><ul><ul><li>Typically requires officer-level approvals </li></ul></ul><ul><ul><li>Requires good planning and creative solutions to comply with requirements </li></ul></ul><ul><li>Consider a Power of Attorney (POA) with a trusted marketing partner to streamline the ongoing process </li></ul>
    25. 25. Common Pitfalls with Setting up a CCV <ul><li>Keep in mind, you cannot communicate and execute charitable promotions by misleading potential participants as to the effect of their purchase </li></ul><ul><ul><li>For example, if a company says: &quot;We will donate a [insert value] for every Like on Facebook up to $50,000…&quot;  and your corporate relationship agreement with that non-profit says you will donate $50,000 no matter how many likes you receive; this is not in compliance </li></ul></ul><ul><ul><li>The actions of participants does not impact the outcome in this example </li></ul></ul><ul><li>As a rule of thumb, plan for 60-90 days in advance if you are looking to integrate a CCV based campaign into your marketing mix </li></ul>
    26. 26. Promotions and Social Media <ul><li>Social Media-based or promoted promotions increase the value proposition for target audiences to engage on social channels </li></ul><ul><li>Social media can also dramatically improve participation volumes though demand creation, engagement and direct and indirect viral advocacy </li></ul><ul><li>CCV promotions are particularly effective because they speak to a powerful driver of viral sharing: the desire to be perceived positively by others in their social network </li></ul>
    27. 27. <ul><li>Social media networks can host promotions and/or support web-based promotions </li></ul>
    28. 28. How Social Media Can Affect Promotions Awareness Engagement How people generally experience promotions in social media Seen from a measurement POV Awareness Engagement Advocacy Conversion Time 0% 100% Ratio to a conversion (example) 100,000:1 5,000:1 50:1 Advocacy Feedback Loop Conversions 1:1 Target users take a desired action (participate)
    29. 29. Promotions and Social Media <ul><li>However, CCV social media promotions must: </li></ul><ul><ul><li>Be authentic – Design so that sponsoring/partnering brand is subordinate to that of the CCV/cause </li></ul></ul><ul><ul><li>Be accurate – Awareness of false or misleading claims can spread virally much faster than positives and destroy a brand’s image </li></ul></ul><ul><ul><li>Be logical – Simplicity increases likelihood of conversion in a medium that requires “distraction” to attract targets </li></ul></ul><ul><ul><li>Be legal – Social media is still rife with illegal promotions; brands with the most to lose will likely be first to be prosecuted, so legal must be addressed properly to avoid excessive risk </li></ul></ul>
    30. 30. At a Glance
    31. 31. <ul><li>Formed in 1992 </li></ul><ul><li>Headquarters: Minneapolis </li></ul><ul><li>Officers in Los Angeles and Redmond, WA </li></ul><ul><li>Ad Age / Interactive Rank: #35 </li></ul><ul><li>Promo / Promotion Rank: #37 </li></ul><ul><li>Digital </li></ul><ul><ul><li>Mobile, web, media, social, analytics </li></ul></ul><ul><li>Loyalty Programs </li></ul><ul><ul><li>CRM, Incentive, Sales Training, DR </li></ul></ul><ul><li>Promotional </li></ul><ul><ul><li>Sweeps, games, contests, POP, legal </li></ul></ul><ul><li>Social /Emerging media </li></ul><ul><li>In-house Technology, Legal </li></ul>Marketing Solutions that Drive Behavior
    32. 32. Gage Point of View 1990s 1999 2000s 2010 IM Email Direct Mail Telephone TV Radio Print Display Cable TV Website Search Online Display IM Email Direct Mail Telephone TV Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing Mobile Email SMS IM Email Direct Mail Telephone TV Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Affiliate Marketing Webinars Blogs RSS Podcasts Contextual Wikis Social Networks Mobile Web Marketing challenges are getting more complex. Agencies need to be well versed across numerous disciplines to integrate brand messaging and design --- and be able to deliver with technology and analytics. Social DM Voice Marketing Mobile Email SMS + MMS IM Email Direct Mail Telephone TV Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Affiliate Marketing Webinars Blogs RSS Podcasts Contextual Wikis Social Networks Mobile Web Behavioral Social Media & Ads Virtual Worlds Widgets Twitter Mobile Apps & Geolocation <1990 Direct Mail Telephone TV Radio Print Display
    33. 33. Sweepstakes: Bing + Ryan Seacrest <ul><li>Drive awareness and registrations for Bing though promotional sweepstakes </li></ul><ul><li>Description </li></ul><ul><li>Components included: </li></ul><ul><ul><li>Promotional Microsite </li></ul></ul><ul><ul><li>Banner ads for on-net placement </li></ul></ul><ul><ul><li>Email creation </li></ul></ul><ul><ul><li>Rules/Privacy/Terms of Use </li></ul></ul><ul><ul><li>Prize Fulfillment </li></ul></ul><ul><ul><li>Winner management (verification, communication, affidavits, tax reporting) </li></ul></ul><ul><ul><li>Customer Service (via email) </li></ul></ul><ul><ul><li>Reporting </li></ul></ul><ul><li>Social media sharing tools were included and offered unique tracking capabilities showing the viral “spider” of who/how/where the sweepstakes was passed along via Facebook, Twitter, Windows Live and email. </li></ul><ul><li>Results </li></ul><ul><li>Over 258,000 unique visitors </li></ul><ul><li>84,000 registrations </li></ul><ul><li>32.4% conversion rate </li></ul><ul><li>63,810 new Bing accounts </li></ul>
    34. 34. Bing: Media Support
    35. 35. How Gage can help… <ul><li>Gage can provide a turnkey marketing foundation platform to address your specific audience </li></ul><ul><li>Everything from Strategy and Planning -> Website Design and Development -> Print Production -> Social Media Activation </li></ul><ul><li>Gage can manage the entire process and handle all aspects of integrated marketing campaigns – including legal and compliance </li></ul>Program Flow / Strategy (example) Wireframe for Design Execution and Management
    36. 36. For more details on CCV promotions Please contact: Mark Kurtz Chief Growth Officer Phone: 206-330-6396 Email: [email_address]