What the election of America’s first Digital President
means for the future of advertising.

• Lessons from Obama
• Why advertising must change in Latin America and Brazil.
• A look at the digital future -- right in your backyard.

A Different Man…
• Young
• Charismatic
• Intelligent
• Black
• Digital

And His Vision: “Change”
• Short
• Simple
• Motivating
• Viral

An Unprecedented Budget…
With digital media
at the core

Obama’s Campaign Budget
Out of a total budget of $566M (USD)
• 48% allocated to media
• 6% spent on digital media

Digital Media Spend
Paid Search
• $7.2M on Google
• $14M on Yahoo!
Digital “Brand” Advertising
• $3.8M on mainstream websites
Social Media
• $980K on Facebook
• $280K on MySpace

An Unprecedented Digital Effort…
Seven Extraordinary Tactics

Tactic 1:
Recruit a team of digital specialists
A digital-savvy staff crafted the strategy
20 people fully
dedicated to digital
Plus world-class Super Geeks:
• Chris Hughes, co-founder of
Facebook
• Eric Schmidt, CEO of Google

Tactic 2:
Make Your Message Findable
Content that’s visible in the right place at the right time
clinton

Findability
If you want young voters…go where they are

Findability
Intelligent targeting – 18 top games in 10 “swing states”

Findability
Make all content exportable

Findability
5 times more blog mentions for Obama

Tactic 3:
Be Relevant to Your Audiences
30 specific communities addressed in the “People” section

Relevance
Overwhelming presence on all social media platforms,
from massive to targeted

Tactic 4:
Create Engagement
Site log-in created a database of 10 million qualified leads

Tactic 5:
Empower your fans
Recruit Core Advocates among your closest target
Obama “Core”
1. Black Community and its
leaders
2. Democrats tired of the
Clintons
3. First victims of the
economic downturn
Peers (Followers)

Empowerment
Encourage the “Core” to activate their personal networks
Obama “Core”
Thousands of local “small Obamas”
• Speaking to everyone
• Listening to everyone
• Raising funds
• Organizing micro-meetings
• Generating vast amounts of
content besides the “official”
content
Peers (Followers)

Empowerment
Create easy-to-use tools for “badging” and recruitment

Empowerment
Encourage grassroots event creation

Empowerment
Phoning tools

Empowerment
Personal fundraising tools

Empowerment
Fight the smears

Empowerment
Dedicated iPhone app

Tactic 6:
Reward the Faithful
Give them inside information
3M personal text messages to
announce Biden as VP, before
the news hit TV screens

Reward
Give them direct access
His first thanks go to his supporters… by e-mails

Tactic 7:
Be Transparent
Leverage digital to report on what you’re doing
• During the campaign

Transparency
Leverage digital to report on what you’re doing
• Once elected

Transparency
Leverage digital to report on what you’re doing
• Once elected
Each non-urgent
legislation will be
published for 5 days to
allow the public to review
and comment on it, before
the President signs it.

Transparency
Leverage digital to report on what you’re doing
• Once elected

That’s great.
But what does it mean
for us?

Advertising in 2009 must be…
1. Built by people who truly understand digital
2. Findable anywhere and everywhere, all the time
3. Relevant to multiple audiences
4. Built for interactivity and engagement
5. Designed to create and empower “fans”
6. Provide rewards for the user
7. Socially conscious and transparent

But we’re in a crisis.
Maybe we should stick to
what works?

Hello TV people: It’s not working
Percentage of U.S. homes watching network primetime TV

Maybe LatAm is totally and
completely immune?

I will make you a bet:
Latin America and Brazil are
going to explode. Digitally.

Share of Media Spend
By Media Type

2001
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2002
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2003
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2004
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2005
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2006
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2007
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2008
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

2009
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

What this means for Brazil
and Latin America…

Bad News
• Latin America is stuck in an “old media” rut
• Digitally, you’ve fallen behind…
and the gap is widening:
You: $21*
Everyone else:
$180**
*Averages Brazil, Mexico and Argentina
**Averages US, Canada, Italy, Spain, UK, Germany, France,
Australia, India, Russia, China, South Korea, Japan

Good News
• Wired household penetration
is outpacing all the other major
growth markets:
You in 2009: 38%*
RIC in 2009: 22%**
*Averages Brazil, Mexico and Argentina
**Averages Russia, India and China

More Good News
You have one of the most
advanced digital populations
on Earth.
• Highest reach in
social networks: 60%
• Highest reach in digital
communications:
82% webmail
73% in Messenger

So what’s up with this?
70%
CAN
FR
60% GER
IT
Share as a % of Total Spend
50% SP
RUS
40% AUS
CH
30% IN
JA
SK
20%
US
UK
10%
ARG
BR
0%
MEX
Print TV Radio Out-of-Home Internet

What I Believe:
You are the biggest growth market on the
planet for digital. The population wants it.
Brands, creative agencies, and media
companies are not keeping up.
Big digital ideas will change the game.

The digital future is already
happening…
Check out Terra.com

Terra has digital DNA
No “Old Media” baggage
Social without boundaries
Available everywhere, any time
Experimental…and a little crazy

Beijing 2008 Site – The First Experiment
• 22.8 million watched 40 million videos…1.5 million via mobile. 150,000 shared comments
• More successful than NBC, the event’s main “conventional” broadcaster

Sonora – Music Everywhere
• 1 million free songs, playlists, and social sharing
• 90 minutes per session

The Mothership – Homepage Overhaul
• 28 million visitors per month (Brazil)
• VC Reporter is fully integrated, not “ghetto-ized”
Before After

Terra TV
• 6 million users
• Growing at 45% per year

The Obamacom Checklist
1. Built by people who truly understand digital
2. Findable anywhere and everywhere, all the time
3. Relevant to multiple audiences
4. Built for interactivity and engagement
5. Designed to create and empower “fans”
6. Provide rewards for the user
7. Socially conscious and transparent

So I made you a bet.
I was serious…

Coming soon:
Razorfish / Brazil

Do you have digital DNA?
We should talk…
joe.crump@razorfish.com

Obrigado
Muchas gracias
joe.crump@razorfish.com