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The Personal Media Network
 

The Personal Media Network

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The consumer is control of advertising channels. Getting a brand message to its intended audience has been turned upside down. How and why and what to do about it.

The consumer is control of advertising channels. Getting a brand message to its intended audience has been turned upside down. How and why and what to do about it.

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    The Personal Media Network The Personal Media Network Document Transcript

    •     T  R  E  N  D  S      I  N      A  D  V  E  R  T  I  S  I  N  G   The  Personal  Media  Network     In  2007,  Ad  Age  named  The  Consumer  as  its  Agency  of  the  Year.    It  wasn’t  meant  to   be  a  slight  to  the  relevancy  of  ad  agencies  as  much  as  it  was  recognition  of  the   significant  impact  that  consumers  had  on  advertising  that  year.    Thanks  to  Doritos,  a   consumer  was  awarded  the  highest  honors  at  Cannes  advertising  festival  for  their   consumer-­‐created  2007  Superbowl  ad.  Similarly,  a  couple  of  other  regular  Joes   started  dropping  Mentos  into  bottles  of  Diet  Coke  and,  in  the  process,  raised  the  roof   on  those  two  brands  unlike  anything  seen  before.         By  2009,  turning  to  the  crowd  for  brand  support  was  no  longer  an  experiment.  In   September  of  that  year,  Unilever  decides  to  sack  their  ad  agency,  Lowe,  and  turns   their  Peperami  brand  over  to  the  public  via  an  ad  contest  that  would  reward   consumers  for  their  TV  and  print  ad  ideas.     The  consumer’s  ascent  to  the  throne  room  of  advertising  should  have  been   expected.  The  signs  have  been  there  for  years.    Their  increasing  control  of   advertising  has  kept  pace  with  their  increasing  appetite  for  media  beginning  with   the  advent  of  cable  television.  This  was  the  day  that  traditional  advertising  began  to   die.  No  longer  would  advertisers  conveniently  reach  everybody  in  America  simply   by  buying  commercial  space  on  the  big  three  TV  networks  during  primetime   viewing.     With  cable  television  came  media  fragmentation.  Now  there  was  a  cable  channel  for   every  audience  and  every  interest  no  matter  how  narrow  the  niche  seemed  to  be.   The  Internet  came  and  blew  that  fragmented  media  into  a  million  pieces.  And   behind  all  of  this  fragmentation  was  the  consumer.  First  of  all,  their  demand  for   niche  content  was  strong  enough  to  support  the  publishing  of  virtually  any  subject   numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
    •     no  matter  how  obscure.    And  secondly,  their  familiarity  with  media  and  their   penchant  for  self-­‐publishing  started  a  worldwide  movement  that  would  see  the  vast   majority  of  society  sharing  their  own  personally  created  content  with  the  rest  of  the   world.  It  wasn’t  long  before  everybody  and  their  dog  was  a  blogger.     By  the  time  Unilever  is  sacking  Lowe,  active  U.S.  Internet  users  top  195  million  with   109  million  of  them  counted  as  Facebook  users.1  And  by  mid-­‐2010,  Internet  usage   had  increased  a  whopping  444.8%  over  the  course  of  the  previous  ten  years.2  A   more  impressive  growth  rate  is  enjoyed  by  social  networks  and  blogs  which  had   grown  more  than  three  times  the  rate  of  overall  Internet  growth.     “Facebook  is  the  equivalent  for  us  to  what  TV  was  for  marketers     back  in  the  1960s.  Its  an  integral  part  of  what  we  do  now.”   -­‐-­‐  Davide  Grasso,  Nikes  chief  marketing  officer     In  October  of  2010,  Nielsen  released  research  findings  that  revealed  consumers   spending  43%  more  time  on  social  media  than  the  previous  year,  making  social   networking  and  blogs  the  top  online  activity  followed  by  online  games  and  email.  By   the  end  of  2010,  what  had  once  been  considered  the  domain  of  young  college   students  was  now  heavily  populated  by  people  of  all  ages.  Nearly  half  of  all  folks  age   50  –  64  was  considered  a  user  of  social  media.  Over  85%  of  all  young  adults,  age  18   –  29  were  counted  among  the  ranks  of  social  media  users.     Naturally,  this  level  of  social  activity  caught  the  attention  of  advertisers  and  brands.   Brands  like  Gatorade,  which  established  a  task  force  to  engage  the  social  media   space.  Known  as  Gatorade  Mission  Control,  the  brand  has  had  more  than  2,000  one-­‐ on-­‐one  conversations  with  consumers,  while  the  brands  “likes”  on  Facebook  had   skyrocketed  to  1.2  million,  reaching  the  1  million  milestone  a  full  five  months  ahead   of  schedule.     In  June  of  2010,  White  Horse  reported  that  68%  of  all  business-­‐to-­‐consumer  brands   acquired  new  customers  through  Facebook  and  that  45%  of  all  business-­‐to-­‐business   brands  acquired  new  customers  through  LinkedIn.    The  days  of  advertisers  reaching   Americans  that  sit  on  couches  watching  network  television  were  long  gone.  Instead,   brands  wanting  to  engage  consumers  had  to  ask  permission  and  await  invitations   from  consumers  through  their  carefully  constructed  personal  media  networks  in   order  to  reach  them  with  their  brand  message.       That’s  not  to  say  that  consumers  had  quit  watching  video.  Quite  the  contrary.  In   April  of  2010,  more  than  30  billion  videos  were  watched  online.  And  even  though   there  were  114.9  million  U.S.  homes  with  at  least  one  television  in  2009,  the  number   of  viewers  of  online  video  was  more  than  138  million.  Tivo,  Netflix,  Hulu,  and,  of   course,  YouTube  made  it  possible  for  consumers  to  enjoy  their  video  on  demand  and   customize  their  playlists  to  meet  their  own  personal  criteria.     numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
    •     Today,  news,  information  and  entertainment  come  directly  to  the  consumer  through   their  own  personally  constructed  media  network.  News  feeds  from  Twitter,   Facebook,  and  LinkedIn;  subscriptions  to  YouTube  channels  and  blogs;  instant   messaging;  Google+  Circles;  and  referral  apps  like  Yelp  and  Foursquare  are  all   carefully  configured  to  allow  the  desired  content  in  and  the  unwanted  content  –  like   annoying  advertising  –  out.     For  advertisers,  reaching  consumers  today  is  a  tall  mountain  to  climb.  But  there  is  a   way  to  the  top.  Although  only  62%  of  consumers  trust  television  advertising,  90%  of   those  same  consumers  trust  brand  recommendations  from  people  they  know.3  The   surest  path  for  brand  success  depends  on  the  marketer’s  ability  to  convert   customers  into  advocates  that  will  help  spread  branded  advertising  messages   directly  to  the  members  of  their  personal  media  network.         This  is  not  theoretical  marketing.    The  worlds  100  most  valuable  brands  were   recently  evaluated  by  how  well  they  engage  with  their  consumers  using  social   media  and  how  that  engagement  correlates  with  revenue.  The  report  stated  that   companies  with  the  highest  level  of  social  media  activity  increased  revenue  by  18%   in  the  last  12  months,  while  companies  that  were  the  least  active  saw  a  6  percent   drop  in  sales.4       The  data  supports  the  reliability  of  the  personal  media  network.  Consider  that   referral  traffic  for  online  video  from  Facebook  and  Twitter  is  growing  faster  than   numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com  
    •     from  traditional  search  engines.  At  current  growth  rates,  Facebook  will  surpass   Yahoo!  within  the  year  to  be  second  only  to  Google  for  video  referral  traffic.     One  of  the  great  challenges  of  the  personal  media  network  is  its  tendency  to  evolve   as  fast  as  people  have  innovative  ideas.  Mobile  media  has  emerged  as  the  next  big   wave  in  advertising,  mainly  threatening  the  Web,  but  also  peeling  significant   expenditures  away  from  direct  mail  and  yellow  pages.5      82%  of  adults  today  are  cell   phone  users,  and  23%  of  adults  now  live  in  a  household  that  has  a  cell  phone  but  no   landline  phone.  30%  access  Facebook  and/or  Twitter  from  their  mobile  phone   (through  a  browser  or  application)  once  a  day  or  more.       Mobile  media,  social  media,  video  sharing,  the  blogosphere,  the  Internet,  cable   television    —  they  all  represent  the  same  opportunity  to  advertisers.  They  are  all   pathways  to  consumers.  New  technologies  and  shifts  in  consumer  behavior  may   change  the  course  the  path  takes.  So  it’s  important  for  advertisers  to  become   familiar  with  the  pathways.       Above  all,  it’s  imperative  for  advertisers  to  develop  content  that  is  worth  sharing  —   worth  talking  about.  It’s  engaging  content  that  becomes  the  vessel  of  the   advertiser’s  message  –  a  message  that  gets  shared  from  one  person’s  personal   media  network  to  another’s.  It’s  a  message  that  becomes  trusted  because  it  gets   recommended.  And  that’s  advertising  that  will  be  effective  no  matter  where  the   pathways  to  consumers  may  take  us  next.       Sources   1.  Source  All  Data:  The  Nielsen  Company  as  of  Nov  2009      2.  Internet  World  Stats,  June  30,  2010      3.  Nielsen  Global  Online   Consumer  Survey  April  2009      4.  The  Engagement  DB  2009  Report        5.  Mobile  Marketing  report  from  Borrell  Associates       6.  "S-­‐Net  The  Impact  of  Social  Media,”  ROI  Research  Inc.       Up  Next:  Methods  for  creating  content  worth  talking  about           *If  you  can’t  wait  for  the  next  Numantra  whitepaper  and  want  to  find  out  now  how   you  can  have  content  worth  talking  about  to  support  your  brand,  please  contact  us  for   a  free  consultation.  We  can  show  you  specific  examples  of  how  your  business  vertical   can  effectively  develop  content  to  build  brands  and  we  will  work  with  you  to  identify   specific  opportunities  for  your  own  brand.  Please  contact  Dave  Evans  at     214-­‐635-­‐2220  or  at  devans@numantra.com  to  schedule  your  free  consultation.   numantra  •  2900  Gateway  Dr.,  Suite  620,  Irving,  Texas  75063  •  214.635.2300  •  numantra.com