Widgets As Metaphor for 2.0

Digital Marketing Innovation Series What The Emergence of Widgets Means To You SEPTEMBER 26, 2007

AGENDA

BACKGROUND/MEDIA LANDSCAPE

WIDGET GROWTH

DEFINING WIDGETS

EXAMPLES

CONCLUSIONS

DISCUSSION

THE POST ADVERTISING AGE

DVR penetration is 20%

Broadcast upfront down 5% - first downturn in a decade

Half of F100 marketers say their “full service” agency is “ill-equipped to meet digital needs”

87% of TV Week articles discuss digital implications

McClatchy, a media company built on newspapers, is selling off its newspapers

Viacom spins off CBS, the “Tiffany Network”

Time Inc. folds Life Magazine , makes into a website

All networks offering downloadable program episodes

NBC announces a moratorium on scripted shows from 8PM-9PM

ClearChannel selling all of its TV stations

“ We are not witnessing the beginning of the end of old line media. We are witnessing the middle of the end…”

INTERSECTION OF MASSIVE SHIFTS TIME/PLACE DISTRIBUTION CONSUMER’S ROLE PLATFORM/TECHNOLOGY

AS A RESULT WE NEED TO RETHINK ENGAGEMENT This was then This is now As the marketing landscape changes, we must rethink the marketing funnel. As marketers, we are no longer on control of leading our consumers down a linear path towards purchase. * Images courtesy of Forrester, Inc.: “Marketing’s New Metric: Engagement”, Brian Haven

TIME SPENT WITH USER GENERATED SITES

THEN & NOW

Content Centric

Media Planners & Buyers

Buying Media

Reach & Frequency

Media Vendors

:30 Sec Spot

Upfronts

Consumer Centric

Marketing Strategists & Project Mgs

Creating Media

Engage and Surround

Strategic Marketing Partners

Custom & Dynamic Content

Roll Ups and Roll Backs

IMPLICATIONS Information Brand Published Speeches Static Pages Mass Driving Visits Entertainment Consumer Created Conversations Dynamic Silos Custom Reaching Out Web 1.0 Web 2.0

INTRODUCING WIDGETS

Target Advertising Example … “Moviegoers”

47% Are Light or No Television Watchers

31% Use Tivo or Video On Demand

52% Are Light or No Radio Listeners

49% Don’t Subscribe to a Newspaper

46% Don’t Subscribe to a Magazine

CAN WIDGETS BE THE NEXT REACH VEHICLE? Source: comScore Plan Metrix, U.S. Audience; April 2007

RockYou kicks off the widget space Monthly Reach: 1 in 9 Global 1 in 4 US THE BRIEF WIDGET TIMELINE SOURCE: PhotoBucket 2007

THE REACH OF A NETWORK IN A FRACTION OF TIME Source: comScore Widget Metrix June 2007

INFLECTION POINT FOR SUCCESS

Shows phenomenal growth in space, but also RockYou’s particular success story

VIDEO AS HARBINGER FOR WIDGET ADOPTION

First Mover Advantage

Embeddable, distributable, snackable content

DEFINING WIDGETS

WIDGET DEFINITION

Wikipedia

A web widget is a portable chunk of code that can be installed and executed within any separate HTML -based web page by an end user without requiring additional compilation . They are derived from the idea of reusable code that has existed for years. For example, the first product to use that term was a commercial product from 1995, called Web Widgets [1] , which were plugins or extensions that allowed desktop applications to access the web. Nowadays other terms are used to describe a web widget including: gadget, badge, module, capsule, snippet, mini and flake. Web widgets often but not always use Adobe Flash or JavaScript programming languages .

EMBEDDING IN AND AROUND CONTENT

Make your content small to fit space, needs, context and customization

Source: dion hinchcliffe, zdnet

Blogger Google IG Yahoo! Netvibes Microsoft Vista Desktop Live.com Typepad MySpace SHARING AND VIRAL BUILT IN Easy sharing makes for viral distribution

WIDGET GROWTH ^ AMAZING

WIDGETS: WHERE VIDEO WAS IN MARCH ‘06 Internet Users and Percent Who View Widgets Source: comScore Video Metrix

WHAT DO CONSUMERS WANT FROM WIDGETS? WIDGETS: Consumer Reach By Category Source: comScore Widget Metrix, June 2007

LEADING WORLDWIDE PUBLISHERS Source: comScore Widget Metrix June 2007 Percent of Worldwide Audience Reached

REACH IS STRONGER DOMESTICALLY Source: comScore Widget Metrix June 2007 Percent of U.S. Audience Reached

THE ADOPTION GATE Only 1% of all apps hit 1M users

CASE STUDIES: APPLIED EXAMPLES

START PAGE=NETWORKS-OF-ONE, CLICK TO ADD Marketers Publishers Individuals

Million+ user RockYou apps Example promotion Yahoo! Music Videos 900K

Music Videos (Yahoo! and RockYou) 1. Promotion on RockYou Ad Network

Viral tuning

Integration with major apps

EXAMPLES

Harley Davidson Sturgis: A Mighty Heart Movie:

REUSE PRE-APPROVED FLASH/RICH MEDIA ASSETS

Content embed codes

Desktop applications

DYNAMIC CONTEXTUAL TARGETING IN GADGET ADS Gadgets now can be distributed via Google AdSense Network with contextual page reading http://marksilva.wordpress.com/2007/09/24/repost-about-googles-gadgetwidget-strategy/

Keep it simple; complexity kills use

Make it easy and OK to share and use anywhere

Design it to fit anywhere

Address a real consumer need to be used and relevant

Make it compelling and optional

BEST PRACTICES AND ADVICE

Brand a Widget

“ Power”/Sponsor an existing widget, for instance, “skin” a slideshow

As with Branded Entertainment, choose those that connect with brand and consumer needs

Widgetize Content (Repurpose assets)

Movie trailers

Flash games and activities

Fun pictures

Relevant news

Create a Custom Widget

WIDGET FORMS AND OPTIONS

Branded Media Property

Personal Start/Homepages and Blogs

Widget Providers

Widget Galleries

Widgets Themselves ( grab it for desktop )

WIDGET DISTRIBUTION

REALITY CHECK POV

We believe Widgets will emerge as a leading advertising vehicle and included in nearly all deployments in the immediate future

Widgets express the intersection of Web 2.0 principles, social media and networks and consumer customization trends

This is evolutionary content creation and distribution and it is also a marked shift forward

As such, many of the skills, best practices and aggregated intellectual property built within Digital Marketing Agencies can be leveraged to execute on Widgets

It is complementary to other marketing strategies and not a replacement

Like other digital marketing disciplines involving content development and distribution, decisions will need to be made around buy/build/sponsor based on marketing objectives

THANK YOU

Mark Silva

Managing Director,

Principal & Founder

Real Branding

www.realbranding.com

2325 Third Street, Suite 108

San Francisco, CA 94107

(415) 522-1045 x304 - o

(415) 596-7474 – m

www.marksilva.com – b

www.twitter.com/marksilva/ - t

APPENDIX

LIKE AN ADD WITH SHARING/SAVING FEATURE Unique navigation TV-like game recaps & previews Upcoming games & real-time scores Goal: The NBA is looking to bring fans back to the game and remind them of the excitement of the NBA. Answer: Re-create excitement of NBA via a TV-like gadget ad where users can play game recaps and previews, get schedule of upcoming games, and check stats/real-time scores

Fox Sports Scoreboard • “ Top line” information only • Can be resized to fit • Multiple leagues *May 1 - August 28 Open link

Fox Sports Scoreboard Trendline

Fox Sports Scoreboard Seasonal Traffic by League NBA MLB NFL

Heroes Community Profile

513,673 Custom Community

Profile page views

*4/12 - 6/21

Heroes Widget

6,059,630 “Wild” widget impressions

Widget exposure exceed 12 times

that of the Custom Community

Profile page

*4/12 - 6/21

Data provided by Myspace

Heroes Widget Impressions Custom Community and In “The Wild”

Graph Range: 4/12/07 – 6/21/07:

Episode 1 Events aid in driving widget adoption Widget impressions following the events continue at a high level Widget impressions continue to average over 100,000 a day, weeks after media has ended Chart includes: 6,059,630 Total Widget views and 513,673 Views on the Community Profile Episode 2 Episode 3 Episode 4 Episode 5 Roadblock Roadblock