Presented at Brandworks University Joel Rubinson, Chief Research Officer, The ARF, [email_address] Follow me on Twitter: @joelrubinson June 2, 2009 Brand Conversation

Big Points People are empowered by digital life and social media and are producing disruption in the practice of marketing Understanding consumers is not enough; you must put the human (and daily life) at the center of marketing thinking Most marketers are not there and do not know how to enter the conversation. Less than 10% of brands that people use in a typical day are talked about by users. While not all social media marketing initiatives work, broadening research to include listening to conversation always provides insights There are 6 broad strategies for getting your brand to be “conversation-worthy” Traditional media is still a great option for making your brand relevant We must flip the concept of loyalty; how will brands show loyalty to customers?

People are empowered by digital life and social media and are producing disruption in the practice of marketing

Understanding consumers is not enough; you must put the human (and daily life) at the center of marketing thinking

Most marketers are not there and do not know how to enter the conversation. Less than 10% of brands that people use in a typical day are talked about by users.

While not all social media marketing initiatives work, broadening research to include listening to conversation always provides insights

There are 6 broad strategies for getting your brand to be “conversation-worthy”

Traditional media is still a great option for making your brand relevant

We must flip the concept of loyalty; how will brands show loyalty to customers?

The Advertising Research Foundation: a 360 view on changes in media and marketing from 400 members Media neutral approaches Content as organizing principle Integrated marketing RESEARCH RESEARCHER New research approaches for new questions Med MEDIA AGENCY ADVERTISER

We are at a “Strategic Inflection Point,” requiring a massive shift in strategy Strategic Inflection Points represent…what happens to a business when a major change takes place in its competitive environment…due to introduction of new technologies…different regulatory environment… simply a change in the customers' values …what is key is that they require a fundamental change in business strategy. Nothing less is sufficient. Some key warning signs that hint that the change you are dealing with make a Strategic Inflection Point is when it is clear to you that all of a sudden the company or the entity that you worry about has shifted. Academy of Management, Annual Meeting Andrew S. Grove Chairman of the Board, Intel Corporation San Diego, Calif. August 9, 1998

Strategic Inflection Points represent…what happens to a business when a major change takes place in its competitive environment…due to introduction of new technologies…different regulatory environment… simply a change in the customers' values …what is key is that they require a fundamental change in business strategy. Nothing less is sufficient.

Some key warning signs that hint that the change you are dealing with make a Strategic Inflection Point is when it is clear to you that all of a sudden the company or the entity that you worry about has shifted.

Academy of Management, Annual Meeting

Andrew S. Grove Chairman of the Board, Intel Corporation San Diego, Calif. August 9, 1998

People are the source of disruption From product superiority to relevance

From product superiority to relevance

Who should Google keep an eye on? Twitter just passed the NY Times in monthly uniques Real time Newsrooms constantly monitor Twitter for breaking news

Twitter just passed the NY Times in monthly uniques

Real time

Newsrooms constantly monitor Twitter for breaking news

And the buzz around Twitter is incredible

Instantaneous viral spread

Competing voices disrupt market research…

Not everyone got the memo! 67% of marketers admit they don’t know as much about social media as they should 86% believe that social media is here to stay How would you like one of the other 14% to be running your brand?! Source: McCann Erickson UK

67% of marketers admit they don’t know as much about social media as they should

86% believe that social media is here to stay

How would you like one of the other 14% to be running your brand?!

But some did… “ The consumer is boss” A.G. Lafley, CEO, The Procter and Gamble Company Interesting who he didn’t say was boss…

“ The consumer is boss”

A.G. Lafley, CEO, The Procter and Gamble Company

Interesting who he didn’t say was boss…

The ARF doesn’t think AG went far enough… You must put the HUMAN at the center of marketing thinking. Humans are MORE than consumers… You need to relate to them on their terms

You must put the HUMAN at the center of marketing thinking.

Humans are MORE than consumers…

You need to relate to them on their terms

Meet the humans! I am more defined by who I am and my family and friends than I am by brands I use. Sometimes I’m a consumer and sometimes I’m a shopper. I crave simplification! I get through the day by following personal rituals that let me go on autopilot. Your brand is only one of over 100 brands I use in a typical day. There are only some brands I will really care about and talk about For most brands, only a small percent of users are really engaged. There are other brands that are common knowledge and are part of the conversation. Mostly, brands serve to simplify my choices which I require because the number of choices is overwhelming. There are certain things I really care about (making ends meet, the environment). I like to be social but I talk about what I or friends like to talk about.

I am more defined by who I am and my family and friends than I am by brands I use.

Sometimes I’m a consumer and sometimes I’m a shopper.

I crave simplification! I get through the day by following personal rituals that let me go on autopilot.

Your brand is only one of over 100 brands I use in a typical day.

There are only some brands I will really care about and talk about

For most brands, only a small percent of users are really engaged.

There are other brands that are common knowledge and are part of the conversation.

Mostly, brands serve to simplify my choices which I require because the number of choices is overwhelming.

There are certain things I really care about (making ends meet, the environment).

I like to be social but I talk about what I or friends like to talk about.

Getting into the conversation is hard Less than 10% of brands that people use do they talk about. 2 billion brand conversations (Keller, Fay) Approximately 200 MM adults in the US Over 100 brands used in a typical day However, you have to try to become one of those brands

Less than 10% of brands that people use do they talk about.

2 billion brand conversations (Keller, Fay)

Approximately 200 MM adults in the US

Over 100 brands used in a typical day

However, you have to try to become one of those brands

Social Media has transformed the marketing belief structure Bring the human into the boardroom to inspire better brands Bring the brand into the conversation. But there are ground rules: Authenticity Access Content Control People can become activist in an instant if they don’t get these things

Bring the human into the boardroom to inspire better brands

Bring the brand into the conversation. But there are ground rules:

Authenticity

Access

Content

Control

People can become activist in an instant if they don’t get these things

Strategies for getting into the conversation Starpower (Coke, Starbucks, Oprah, Shaq) Personification (Zappos CEO, Scott Monty) Dialogue and accessibility(Comcastcares, Obama, Israeli counsulate, BMW) Compelling content (Breaking news, Mashable) Community (Babycenter.com, Harley-Davidson, Dove Campaign for Real Beauty) Contribution (Starbucks, Dell, Wiki)

Starpower (Coke, Starbucks, Oprah, Shaq)

Personification (Zappos CEO, Scott Monty)

Dialogue and accessibility(Comcastcares, Obama, Israeli counsulate, BMW)

Compelling content (Breaking news, Mashable)

Community (Babycenter.com, Harley-Davidson, Dove Campaign for Real Beauty)

Contribution (Starbucks, Dell, Wiki)

Strategies for getting into the conversation

Strategies for getting into the conversation

Strategies for getting into the conversation

Strategies for getting into the conversation

Strategies for getting into the conversation

Transforming the concept of innovation (includes media and community strategies)

Social Media will transform organizations Social media does not live neatly in any one pre-existing silo However, companies who “got the memo” must enter the stream and be part of the conversation

Social media does not live neatly in any one pre-existing silo

However, companies who “got the memo” must enter the stream and be part of the conversation

Transforming research by listening There is a shift in how humanity is communicating, which produces continuous streams of data in people’s naturally occurring conversations and behavior Ability to hear the unexpected Ability to observe a new vocabulary starting to appear Continuous organic data feeds from social media, search, digital analytics, shopper behavior Must listen in both the “ brand backyard” ( e.g. customer care, retail, brand communities) and “ consumer backyard” and Reengineering research approaches

There is a shift in how humanity is communicating, which produces continuous streams of data in people’s naturally occurring conversations and behavior

Ability to hear the unexpected

Ability to observe a new vocabulary starting to appear

Continuous organic data feeds from social media, search, digital analytics, shopper behavior

Must listen in both the

“ brand backyard”

( e.g. customer care, retail, brand communities)

and

“ consumer backyard”

and

Reengineering research approaches

Listening connects cloth-diapering to underlying consumer values Cloth Diapers Home Schooling Home Birthing Diaper Rash Flushable Environmentally Friendly Organic Cost Cheaper Value Natural Parenting Sustainability Health Listening Survey Cloth Diapers Attribute Ratings (% Agreeing Strongly)

Research going from point A to point B “ You can’t be strategic if you’re not making recommendations” - Joel Benenson, Pollster for Obama Marketing Research Tomorrow Synthesis Visionary view of humans Courage to take a stand Driving strategy Demonstrated business impact Answers research questions Sometimes discretionary Inconsistent impact on strategy Marketing Research Today

“ You can’t be strategic if you’re not making recommendations”

- Joel Benenson, Pollster for Obama

Synthesis

Visionary view of humans

Courage to take a stand

Driving strategy

Demonstrated business impact

Answers research questions

Sometimes discretionary

Inconsistent impact on strategy

Where we would like to be Research featured on the home page Proven value at driving business growth A culture of “consumer is boss”- integral part of “how we do it”

Research featured on the home page

Proven value at driving business growth

A culture of “consumer is boss”- integral part of “how we do it”

Does social media mean traditional advertising is going to die? Absolutely not! Ironically, social media might be the best thing that happened to traditional advertising. Social media is about entering the conversation. It is unclear how well it will support advertising, but both are needed. At the same time, advertising creates awareness of alternatives, focuses people on a manageable number of meaningful choices, shapes expectations, and offers brand entertainment experience. Social media will CLARIFY IMC strategies. Here is proof that advertising on traditional media still works.

Absolutely not! Ironically, social media might be the best thing that happened to traditional advertising.

Social media is about entering the conversation. It is unclear how well it will support advertising, but both are needed.

At the same time, advertising creates awareness of alternatives, focuses people on a manageable number of meaningful choices, shapes expectations, and offers brand entertainment experience.

Social media will CLARIFY IMC strategies.

Here is proof that advertising on traditional media still works.

Ad Age: TV creates WOM

The databases that the ARF had access to Sales lift analysis databases Represent a broad range of CPG product categories IRI – (n = 125) controlled and matched market testing where the level of spending was increased substantially from a non-0 level PM Group (n =37) and Dratfield Analytics (n = 27)—marketing Mix modeling ARS® – (n = 112) modeling wearout factors, and GRP advertising pressure vs. the sales impact associated with advertising. Cross Media comparison databases Represent a broad range of products and services (not limited to CPG) Marketing Evolution (n = 40) and Dynamic Logic (n = 47) – respondent level, post-hoc experimental design methods PointLogic/Compose – Media planning tool for analyzing the relative impact of various advertising platforms

Sales lift analysis databases

Represent a broad range of CPG product categories

IRI – (n = 125) controlled and matched market testing where the level of spending was increased substantially from a non-0 level

PM Group (n =37) and Dratfield Analytics (n = 27)—marketing Mix modeling

ARS® – (n = 112) modeling wearout factors, and GRP advertising pressure vs. the sales impact associated with advertising.

Cross Media comparison databases

Represent a broad range of products and services (not limited to CPG)

Marketing Evolution (n = 40) and Dynamic Logic (n = 47) – respondent level, post-hoc experimental design methods

PointLogic/Compose – Media planning tool for analyzing the relative impact of various advertising platforms

TV Advertising does NOT appear to be declining in effectiveness, and perhaps is even increasing Even when controlling for copy quality and wearout, TV advertising effectiveness appears to be increasing.

Even when controlling for copy quality and wearout, TV advertising effectiveness appears to be increasing.

TV can be an effective platform

The brand loyalty equation How much loyalty do I have from consumers?

The brand loyalty equation How will you show loyalty to ME?

Welcome to the revolution!