BOE A key component of consumer centricity is understanding and reflecting the rapid changes in consumer media usage, especially the shift to digital media and the increase in multitasking. Subsequently, we view the new world of marketing communications as essentially a fluid portfolio of bought, owned and earned media. Bought media includes the broad array of advertising vehicles available for purchase to support specific marketing efforts such as TV, magazines, online display advertising and paid search. Owned media are a brand’s controlled assets such as packaging, retail stores and web sites. The advent of online and the enormous growth of digitals assets such as websites has dramatically increased the scope and, we would argue, power of owned media. Finally, earned media represents those marketing efforts generated by consumers, shoppers or other key stakeholders. While earned media has always been a key component of the marketing equation through word of mouth and press, digital innovation is driving unprecedented growth and power through efforts such as social networking.
Allocator is a decision support planning system that allows us to strategically allocate marketing investments through the use of historical data (both qualitative and quantitative)
Ama Social Media Pres100109
Social Media and Research<br />Mike Hess<br />Executive Vice-President<br />Research, Marketing Science, and Consumer Insights<br />Carat<br />
Outline<br />Current Climate: Economic and Media<br />Social Networks<br />Recent Advances<br />Navigating the Landscape (BOE)<br />Maintaining Neutrality in Planning: Tools/Cases<br />
Current State of Affairs<br /><ul><li> Recession
Media</li></li></ul><li>Economy is Still #1 Issue for US Consumers<br />Economy leads as biggest concern, but significant drop compared to prior 3 months<br /><ul><li> Health Care and Federal Budget Deficit show a steady increase</li></ul>Source: CNN Opinion Research Poll, August 2009<br />
Spending Less, Staying at Home More<br /><ul><li>Media Consumption: Points to At-Home
Avg 2+ person HH: +26 minutes TV per week; 4 hrs 43 minutes per day
Homes are not downgrading from cable / satellite to broadcast.</li></ul>HH Historical Trend: Watching TV<br /><ul><li>Average daily hours continue to increase, even during recessions</li></ul>Source: Nielsen<br />
However, Stock Market Shows Signs of Recovery<br /><ul><li>The S&P 500 closed at a new interim high 52.7% above the March 9th low, which is 34.0% below the peak in October 2007</li></ul>As of Sept 9, 2009<br />Sources: dshort.com (9/09/09)<br />
Increasing Complexity inMedia Touchpoints<br /><ul><li>Media touchpoints are growing exponentially.
Media planners need to leverage the data and options to make more effective business decisions</li></li></ul><li>Television is Still the 800 lb. Gorilla<br />1st screen<br />Audio<br />2nd screen<br />Newspapers<br />3rd screen <br />Magazines<br />4th screen<br />Landline phone<br /> Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008All participants, including non-users of various media, including concurrent media exposure<br />.<br />Those 65+ spent much less time with audio, and much more time with newspapers<br />By age group<br />Those under 25 spent very little time on landline phones<br />Screen media<br />Other major media<br />Avg. 353min (48%)<br />Avg.143min (20%)<br />Avg. 20min (3%)<br />Avg: 8min(1%)<br />Radio Avg. 84min(11%)<br />Avg.14min (2%)<br />Avg. 6min (1%)<br />Avg: 25min (3%)<br />Other Audio 80min(11%)<br />
Number of Touchpoints Used Driven by Age <br />Using a 10 minute average as a cut off<br />Those 18-24 are exposed to twice as many screen media 10+ mins as those 65+ (10 vs. 5); greater media diversity<br />The Council for Research Excellence<br />@The Nielsen Company<br />
How Social Networks Have Changed the Media Landscape<br />Evolution / Effect<br />Findings from NeverEndingFriending Study<br />
Online Landscape has Evolved<br />BROADCASTERS<br />MYCASTERS<br />The Players: <br />TV Networks, Online Distribution Hubs, Movie Studios, Your next store neighbor<br />The Other Media: <br />TV (sending and receiving)<br />The Big Change: <br />The Internet is not a competitor, or a complementary outlet for niche content; distribution is king, content does not necessarily live on a site <br />The Players: <br />MySpace, Facebook, Gawker, “News Site X,” Your next store neighbor<br />The Other Media: <br />Mobile (sending and receiving)<br />The Big Change: <br />Social networking as a toolkit has gone mainstream (see Obama). Consumers are building and Internet ecosystem around themselves<br />
Social Networking is Growing.. (nearly ¾ of online users participate).<br />85%<br />75%<br />75%<br />75%<br />72%<br />72%<br />72%<br />70%<br />68%<br />57%<br />52%<br />Source: Nielsen NetView age2+, * Home only<br />
Social Networking: Viable Part of Media Mix<br /><ul><li>Agency planned spending is shifting gears</li></ul>“2010 Media Planning Intelligence Study; ”Center of Media Research/Insight Express September 2009<br />
Ad Spending Expected to Increase<br /><ul><li>In 2011 ad spending on US social networking sites will increase to $1.4 billion</li></ul>Source: eMarketer, June 2009<br />
Self-Expression<br />Discovery<br />Interaction<br />Personal Profile, Video, Blogs, Music, Photos<br />Skin, Badges, Widgets, Wallpapers, Ringtones, Contests, Viral Video, New Features<br />Profiles, Groups, ForumsChannels, Events, Jobs, Wikis<br />Custom Communities, Video, Entertainment Content, Events, Cause Marketing<br />IM, Bulletins, Comments, Blogs, Events, Friending<br />Contests, Quizzes, Viral Content, Friending, Polls, Widgets, Twitter<br />The Social Network Platform<br />Source: Never Ending Friending April 2007<br />Base: SN 14-20 (n=2605)<br />
Social Networking is Preferred Free-time Activity <br />Check out social networking sites<br />17%<br />147 Million<br /> US users<br />visited a social <br />networking site*<br />17%<br />Talk on your cell phone<br />14%<br />Watch TV<br />10%<br />Surf Web generally<br />Play video game<br />9%<br />8%<br />IM<br />7%<br />Listen to MP3 player<br />71 Million (83%)<br />Age 12-34<br />1%<br />Listen to radio<br />Source: ComScore Media Metrix, age2+, June 2009 <br />Source: Never Ending Friending April 2007 Base: SN 14-20 (n=2605)<br />
Constant Engagement<br />When they’re regularly on social <br />network sites…<br /> 15% First thing in the morning<br /> 16% Before school/work<br /> 18% Lunch<br /> 25% At school/work<br /> 31% After school/work<br /> 68% Evening<br /> 30% Late night (10pm-4am)<br />Prime Time<br />Extending into their offline lives<br /> 73% Never bored when using it<br /> 66% So many things to do<br /> 56% Add fun to going out<br /> 48% Having more fun in life general<br /> 47% More plugged into music scene<br /> 46% More on top of trends, what’s new<br /> 45% Makes my life more exciting<br /> 40% Discovered brands/products really like<br />Source: Never Ending Friending April 2007<br />Base: SN 14-20 (n=2605)<br />Q: When are you regularly on your favorite social networking site? Base = SN users 14-40; n=2,605 Q: How much do you agree with each of these statements? Top 2 box (Completely Agree, Agree) Top 2 box agreement (3-pt scale) Base = SN users 14-40; n=2,605<br />
Social “Networking” Can Crowd Out Traditional Behavior<br />Weekly hours spent…<br />Q: During the past week, approximately how many hours did you spend doing the following activities?<br />Base = SN users 14-40; n=2,605 non-users 14-34; n=431<br />
Facebook turns a profit in 3Q 09, earlier than expected</li></ul>Source: Universal McCann, "Power to the People: Social Media Tracker Wave 4," July 30, 2009<br />Source: Adage, CNN (9.16.09)<br />
Social Networks Provide the Basis for “Earned Media”<br /><ul><li>And Provide New Opportunities for Research: Substitute for Focus Groups?</li></ul>Low Carb Friends… a community where of people from around the world come to discuss all issues related to how to lose body fat and keep it off.<br />Bodybuilding forum…forum dedicated to bodybuilding, supplements, muscle building, nutrition, bodybuilding training, workouts, fat loss, and total fitness. <br />Cheftalk.com…Food and Cooking discussion for the professional and the at home cook.<br />Trek BBS… is the number 1 place to chat about Star Trek and the<br />upcoming movie, with like-minded fans. <br />Chowhound.chow.com…devoted to the pleasure of food and drink.<br />Features information about meals and gear and delivers it in audio, and video. <br />Goodeats.dyns.net…has a lot to offer in educating the masses about cooking, history and science. <br />Anabolicminds… is dedicated to the discussion of bodybuilding,<br />supplements, nutrition, fat loss, weight loss and overall fitness. <br />Yahoo! Answers… is a new way to find and share information. You can ask questions on any topic, get answers from real people, and share insights.<br />Babytalkzone… friendly community support forum for those who are pregnant, trying to conceive, or adopting. <br />BabyCenter community…Groups for Moms and dads to share the experience of pregnancy and parenthood with photos, answers, and blogs on the largest parenting site.<br />Most talk is on diet/weight management websites<br />(April 25 – June 25 09)<br />22<br />
Navigating the Complex Media Landscape<br />Bought Owned Earned<br />
Time Spent Exponentially<br />Increases<br />earned<br />bought<br />owned<br />Time spent with BOE media is proportional to consumer interest <br />(or concern)<br />video<br />print<br />audio<br />search<br />experiential<br />outdoor<br />in-store<br />POS<br />packaging<br />websites<br />applications<br />services<br />blogs<br />fan pages<br />WoM<br />social chatter<br />press<br />organic search<br />viral<br />ATLANTA BOSTON CHICAGO DALLAS LOS ANGELES NEW YORK SAN FRANCISCO<br />
BOE ReflectsConsumer Centricity and Media Fluidity <br /><ul><li>Roles played allow for understanding rapid change and acting promptly
Feeding conversations</li></li></ul><li>Allocating the Media Budget in the New Environment: Still Focus on the Consumer<br />
28<br />Creating Classic Segments with Digital Implications<br /><ul><li>Using segmentation techniques, identified two Hispanic segments that are mutually exclusive:</li></ul>Segment 1: “Healthy & Financially Fit”<br />(more digitally savvy) Size of opportunity: 938,000 Hispanics<br />Segment 2:“Sedentary Indulgers”<br />Size of opportunity: 1,662,000 Hispanics (more into TV/audio)<br />
Creating the Right Media Mix <br /> Allocation Case Studies<br />
Qualitative input<br />Quantitative input<br />Weight of variables<br />Analysis<br />Output<br />Ingredients Include Quali-Quant Inputs<br />
Judgments Made at Granular Levels<br /><ul><li>Bridging technology with “human” expertise…</li></li></ul><li>Allocating the Media Touchpoints<br /><ul><li>Human Factors research has shown that the average person can handle only five to nine decision factors at a time.
This is where tools such as Allocator come into play</li></li></ul><li>Plumbing/Interiors Company Start with Clear Objectives<br />Increase sales by 6% in the US<br />Increase awareness by 10 points (from 58% to 68%)<br />Link the brand to water conservation<br />Drive intent & conversion<br />Focus activity where consumers are looking for INSPIRATION & GUIDANCE<br />Deliver the BOLD message in areas where we standout<br />Be BOLD<br />Associate & build meaning<br />Develop programs that add value to the consumer & society<br />
Plumbing/Interiors Company Utilize Learning from Optimized Media Mix <br />Step 1: Objective setting<br />Identify & weight media channels by consumer receptivity metrics<br />Brand – 15/20<br />Media Metrics – 13/20<br />Awareness – 16/20<br />Consumer – 15/20<br />Consideration – 17.5/20<br />CY09 Recommended allocation<br />Step 2: Activity modeling<br />Media investment based on brand strategy<br /><ul><li> TV 52%
Magazine 10%</li></ul>Step 2: Activity modeling<br />Media investment based on brand strategy<br />
Home Improvement Store …. Lead to a Very Different Recommended Mix<br />
Summary<br />Withtouchpoints and complexity exploding, tools requiredto address<br />Current environment especially conducive to SN growth<br />To organize the complexity, we’ve found that Bought/Owned/Earned (BOE) is a useful nomenclature<br />Scraping conversations beneficial way to monitor/evaluate Earned portion and provide feedback loop for Bought/ Owned<br />Allocation needs to be based on plan objectives<br />Many media combinations have never been run, or only rarely….new era of Testing required to fully evaluate<br />
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.