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Mike Hess' presentation to the AMA. Mentioned in Gary Stein's ClickZ column

Mike Hess' presentation to the AMA. Mentioned in Gary Stein's ClickZ column

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  • 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)


  • 1. Social Media and Research
    Mike Hess
    Executive Vice-President
    Research, Marketing Science, and Consumer Insights
  • 2. Outline
    Current Climate: Economic and Media
    Social Networks
    Recent Advances
    Navigating the Landscape (BOE)
    Maintaining Neutrality in Planning: Tools/Cases
  • 3. Current State of Affairs
  • Economy is Still #1 Issue for US Consumers
    Economy leads as biggest concern, but significant drop compared to prior 3 months
    • Health Care and Federal Budget Deficit show a steady increase
    Source: CNN Opinion Research Poll, August 2009
  • 5. Spending Less, Staying at Home More
    • Media Consumption: Points to At-Home
    • 6. Avg 2+ person HH:  +26 minutes TV per week; 4 hrs 43 minutes per day
    • 7. Homes are not downgrading from cable / satellite to broadcast.
    HH Historical Trend: Watching TV
    • Average daily hours continue to increase, even during recessions
    Source: Nielsen
  • 8. However, Stock Market Shows Signs of Recovery
    • 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
    As of Sept 9, 2009
    Sources: (9/09/09)
  • 9. Increasing Complexity inMedia Touchpoints
    • Media touchpoints are growing exponentially.
    • 10. Media planners need to leverage the data and options to make more effective business decisions
  • Television is Still the 800 lb. Gorilla
    1st screen
    2nd screen
    3rd screen
    4th screen
    Landline phone
    Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008All participants, including non-users of various media, including concurrent media exposure
    Those 65+ spent much less time with audio, and much more time with newspapers
    By age group
    Those under 25 spent very little time on landline phones
    Screen media
    Other major media
    Avg. 353min (48%)
    Avg.143min (20%)
    Avg. 20min (3%)
    Avg: 8min(1%)
    Radio Avg. 84min(11%)
    Avg.14min (2%)
    Avg. 6min (1%)
    Avg: 25min (3%)
    Other Audio 80min(11%)
  • 11. Number of Touchpoints Used Driven by Age
    Using a 10 minute average as a cut off
    Those 18-24 are exposed to twice as many screen media 10+ mins as those 65+ (10 vs. 5); greater media diversity
    The Council for Research Excellence
    @The Nielsen Company
  • 12. How Social Networks Have Changed the Media Landscape
    Evolution / Effect
    Findings from NeverEndingFriending Study
  • 13. 2.5mm conversations
    12,500 conversations
  • 14. Online Landscape has Evolved
    The Players:
    TV Networks, Online Distribution Hubs, Movie Studios, Your next store neighbor
    The Other Media:
    TV (sending and receiving)
    The Big Change:
    The Internet is not a competitor, or a complementary outlet for niche content; distribution is king, content does not necessarily live on a site
    The Players:
    MySpace, Facebook, Gawker, “News Site X,” Your next store neighbor
    The Other Media:
    Mobile (sending and receiving)
    The Big Change:
    Social networking as a toolkit has gone mainstream (see Obama). Consumers are building and Internet ecosystem around themselves
  • 15. Social Networking is Growing.. (nearly ¾ of online users participate).
    Source: Nielsen NetView age2+, * Home only
  • 16. Social Networking: Viable Part of Media Mix
    • Agency planned spending is shifting gears
    “2010 Media Planning Intelligence Study; ”Center of Media Research/Insight Express September 2009
  • 17. Ad Spending Expected to Increase
    • In 2011 ad spending on US social networking sites will increase to $1.4 billion
    Source: eMarketer, June 2009
  • 18. Self-Expression
    Personal Profile, Video, Blogs, Music, Photos
    Skin, Badges, Widgets, Wallpapers, Ringtones, Contests, Viral Video, New Features
    Profiles, Groups, ForumsChannels, Events, Jobs, Wikis
    Custom Communities, Video, Entertainment Content, Events, Cause Marketing
    IM, Bulletins, Comments, Blogs, Events, Friending
    Contests, Quizzes, Viral Content, Friending, Polls, Widgets, Twitter
    The Social Network Platform
    Source: Never Ending Friending April 2007
    Base: SN 14-20 (n=2605)
  • 19. Social Networking is Preferred Free-time Activity
    Check out social networking sites
    147 Million
    US users
    visited a social
    networking site*
    Talk on your cell phone
    Watch TV
    Surf Web generally
    Play video game
    Listen to MP3 player
    71 Million (83%)
    Age 12-34
    Listen to radio
    Source: ComScore Media Metrix, age2+, June 2009
    Source: Never Ending Friending April 2007 Base: SN 14-20 (n=2605)
  • 20. Constant Engagement
    When they’re regularly on social
    network sites…
    15% First thing in the morning
    16% Before school/work
    18% Lunch
    25% At school/work
    31% After school/work
    68% Evening
    30% Late night (10pm-4am)
    Prime Time
    Extending into their offline lives
    73% Never bored when using it
    66% So many things to do
    56% Add fun to going out
    48% Having more fun in life general
    47% More plugged into music scene
    46% More on top of trends, what’s new
    45% Makes my life more exciting
    40% Discovered brands/products really like
    Source: Never Ending Friending April 2007
    Base: SN 14-20 (n=2605)
    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
  • 21. Social “Networking” Can Crowd Out Traditional Behavior
    Weekly hours spent…
    Q: During the past week, approximately how many hours did you spend doing the following activities?
    Base = SN users 14-40; n=2,605 non-users 14-34; n=431
  • 22. What’s Hot Now in Social Networking?
  • 23. What’s Changed in the Past Few Years
    • Social media has migrated from the young to mainstream
    • 24. Facebook hits 300 million users September 09, about the size of the US population
    • 25. Their fastest growing segment are people age 35+
    • 26. Social Networks seek ways to turn profitable
    • 27. Facebook turns a profit in 3Q 09, earlier than expected
    Source: Universal McCann, "Power to the People: Social Media Tracker Wave 4," July 30, 2009
    Source: Adage, CNN (9.16.09)
  • 28. Social Networks Provide the Basis for “Earned Media”
    • And Provide New Opportunities for Research: Substitute for Focus Groups?
    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.
    Bodybuilding forum…forum dedicated to bodybuilding, supplements, muscle building, nutrition, bodybuilding training, workouts, fat loss, and total fitness.…Food and Cooking discussion for the professional and the at home cook.
    Trek BBS… is the number 1 place to chat about Star Trek and the
    upcoming movie, with like-minded fans.…devoted to the pleasure of food and drink.
    Features information about meals and gear and delivers it in audio, and video.…has a lot to offer in educating the masses about cooking, history and science.
    Anabolicminds… is dedicated to the discussion of bodybuilding,
    supplements, nutrition, fat loss, weight loss and overall fitness.
    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.
    Babytalkzone… friendly community support forum for those who are pregnant, trying to conceive, or adopting.
    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.
    Most talk is on diet/weight management websites
    (April 25 – June 25 09)
  • 29. Navigating the Complex Media Landscape
    Bought Owned Earned
  • 30. bought
  • 31. Time Spent Exponentially
    Time spent with BOE media is proportional to consumer interest
    (or concern)
    fan pages
    social chatter
    organic search
  • 32. BOE ReflectsConsumer Centricity and Media Fluidity
    • Roles played allow for understanding rapid change and acting promptly
    • 33. Active presence
    • 34. Talking to consumers
    • 35. Hooking attention
    • 36. Right time, place, mindset
    • 37. Opening conversations
    • Engaging Experiences
    • 38. Talking with consumers
    • 39. Accessible and useful content assets
    • 40. Enabling participation
    • 41. Creating conversations
    • 42. Being talked about by consumers
    • 43. Listening to conversations
    • 44. Feeding conversations
  • Allocating the Media Budget in the New Environment: Still Focus on the Consumer
  • 45. 28
    Creating Classic Segments with Digital Implications
    • Using segmentation techniques, identified two Hispanic segments that are mutually exclusive:
    Segment 1: “Healthy & Financially Fit”
    (more digitally savvy) Size of opportunity: 938,000 Hispanics
    Segment 2:“Sedentary Indulgers”
    Size of opportunity: 1,662,000 Hispanics (more into TV/audio)
  • 46. Creating the Right Media Mix
    Allocation Case Studies
  • 47. Qualitative input
    Quantitative input
    Weight of variables
    Ingredients Include Quali-Quant Inputs
  • 48. Judgments Made at Granular Levels
    • Bridging technology with “human” expertise…
  • Allocating the Media Touchpoints
    • Human Factors research has shown that the average person can handle only five to nine decision factors at a time.
    • 49. This is where tools such as Allocator come into play
  • Plumbing/Interiors Company Start with Clear Objectives
    Increase sales by 6% in the US
    Increase awareness by 10 points (from 58% to 68%)
    Link the brand to water conservation
    Drive intent & conversion
    Focus activity where consumers are looking for INSPIRATION & GUIDANCE
    Deliver the BOLD message in areas where we standout
    Be BOLD
    Associate & build meaning
    Develop programs that add value to the consumer & society
  • 50. Plumbing/Interiors Company Utilize Learning from Optimized Media Mix
    Step 1: Objective setting
    Identify & weight media channels by consumer receptivity metrics
    Brand – 15/20
    Media Metrics – 13/20
    Awareness – 16/20
    Consumer – 15/20
    Consideration – 17.5/20
    CY09 Recommended allocation
    Step 2: Activity modeling
    Media investment based on brand strategy
  • Home Improvement StoreApplying Media Neutral Tool with New Client….
    Relative Weight: 6/20
    Relative Weight: 14/20
    Relative Weight: 18/20
    Step 1: Objective setting
    Identify & weight media channels by consumer receptivity metrics
    2010 Recommended allocation
    Step 2: Activity modeling
    Media investment based on brand strategy
  • 62. Home Improvement Store …. Lead to a Very Different Recommended Mix
  • 63. Summary
    Withtouchpoints and complexity exploding, tools requiredto address
    Current environment especially conducive to SN growth
    To organize the complexity, we’ve found that Bought/Owned/Earned (BOE) is a useful nomenclature
    Scraping conversations beneficial way to monitor/evaluate Earned portion and provide feedback loop for Bought/ Owned
    Allocation needs to be based on plan objectives
    Many media combinations have never been run, or only rarely….new era of Testing required to fully evaluate