Viral is Dead: Keynote at Digital Day Toronto

Balancing Proven & Emerging How to Manage the Balance Between “the Basics” and Emerging Digital Initiatives CMA Digital Day, November 11, 2009 Kevin “Nalts” Nalty, YouTube Personality and Career Marketer www.NaltsConsulting.com

Who Is He? Marketer! YouTube “Star”! Consultant! Merck Consumer 110 million views! Online full-time marketer Product Director! 140K subscribers! with deep experience in Johnson & Johnson! social media & online video! 810+ videos! KPMG Consulting! Helps leading brands engage One of most-watched in online-video! Qwest Interactive! YouTube “comedians”! More than 200,000 people watch daily !

About Last Night

No Perfect “Media Mix”

No Perfect “Media Mix” Key Drivers

No Perfect “Media Mix” Key Drivers • B2B or B2C

No Perfect “Media Mix” Key Drivers • B2B or B2C • Awareness vs. direct response

No Perfect “Media Mix” Key Drivers • B2B or B2C • Awareness vs. direct response • Budget realities

No Perfect “Media Mix” Key Drivers • B2B or B2C • Awareness vs. direct response • Budget realities • Company’s risk proﬁle

No Perfect “Media Mix” Key Drivers • B2B or B2C • Awareness vs. direct response • Budget realities • Company’s risk proﬁle • What the “big guy/gal” watches or reads

Canadian Media Trends Source: eMarketer

Is Traditional Marketing Dead?

Is Traditional Marketing Dead? • Yes and no... still need reach and scale of many mediums

Is Traditional Marketing Dead? • Yes and no... still need reach and scale of many mediums • Each media generation eventually loses impact

Is Traditional Marketing Dead? • Yes and no... still need reach and scale of many mediums • Each media generation eventually loses impact • Constant new channels are available to those with eyes open wide...

Canadian Social-Media Trends

Canadian Social-Media Trends • Canada’s Internet population continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer).

Canadian Social-Media Trends • Canada’s Internet population continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer). • 79.6% of American Speakers unnecessarily remind you about Canadian’s “Internet ubiquity.”

Canadian Social-Media Trends • Canada’s Internet population continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer). • 79.6% of American Speakers unnecessarily remind you about Canadian’s “Internet ubiquity.” • Webinars and podcasts are top social media resources for US & Canadian business professionals (Business.com, Nov. 5, 09).

Canadian Social-Media Trends • Canada’s Internet population continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer). • 79.6% of American Speakers unnecessarily remind you about Canadian’s “Internet ubiquity.” ‣ Consumer-focused companies: Facebook is • Webinars and podcasts are top social dominant social network media resources for US & Canadian 83% of respondents versus 45% for Twitter. business professionals (Business.com, Nov. 5, 09). ‣ Business-to-business (B2B) companies: maintain a presence on both platforms with 77% on Facebook and 73% on Twitter.

“Social Media” Mindset

Don’t Forget the Funnel • The top’s width is less important than the bottom’s efﬁciency • Great marketers look at gaping holes between Do I have an awareness and purchase awareness problem or a conversion problem?

An Impression Isn’t an Impression (Unless It Makes One) • New medium requires new metrics • CPM = “clueless promotion measure” • Solution: Informed assumptions on value of engagement

Corporate Barriers • Few get ﬁred investing in “proven” mix • “Return on Hassle” • Revenue target, and I don’t get promoted for experimentation. • Heck, my executives don’t even care about “emerging” media. • Let someone else be ﬁrst (Darwinian).

Excuses Be Gone

Why New Media Hedge Fund 1. Someone needs to own media R&D 2. Tride & true can vanish... then what? 3. Pilots create organizational learning 4. Insights can inform traditional mix 5. BUT: Keep lean & evaluate scale potential (SecondLife?!)

A Simple Solution • Devote ~10-20% of time & budget on emerging opportunities... Risk: High Low • But selectively... Engaging with Engaging advocates customers via social who have large High media audience Activating brand Target ads on social- loyalists to market media sites Beneﬁt: Hosting social media Obsessing over my Low Developing brand- product.com site funded entertainment

From Kotler to Kevin The “proven” ways New considerations • Research & roll • Listen, try, fail, improve • Reach, frequency, single- • Inform, entertain, & minded proposition gently market • Segment audience • Micro-segment audience on key demographics by behaviors & needs • Positioning • Inviting

On a Lighter Note...

Why Video is Vital • Audience is rabidly consuming onine video • YouTube shift from “wild west” to the 2nd search engine • Video = most visceral form of social-media • Budgets are going up fast • Scale & impact, minimal

Budget Increases Online video is leading priority in online-marketing mix, but spending is in its infancy with dramatic growth projections in 2010 (from $850 million to $1,250 million).

Video-Marketing Paradox • 40% increase in viewership of online video in past 12 months (between Aug. 2008 and Aug. 2009: Nielsen) See source • Still, for every $100 spent on broadcast television, only $1.60 is spent on online video

Viral Is Dead • Viral video and contests are not an online-video ! strategy • Play the lotto for better odds. • Don’t chase the exception (Evian)

Viral Is Dead • Viral video and contests are not an online-video ! strategy • Play the lotto for better odds. • Don’t chase the exception (Evian) pleese god make i viral

ROI Concern is “Red Herring” • Intent: Test/control and pre/post • Immediate response gets weighted heavily: - Cost per “real” view - Cost-per-visitor to site • But assume residuals: • Slow builds • Indirect impact

Context Trumps Interuption • “In the show” promotion p’wns pre-roll. • Ads are only one way in. • Branded entertainment is harder to ignore (and ! works).

Meet the New Stars • Most-viewed and most-subscribed are individuals • They’ll promote to their audience • Asses in seats & implied endorsement

Big Inﬂuence Shifts !!Every new medium creates new stars !!Faster shift from obscurity to fame

Please Don’t Spend on Spec • Don’t produce content without a distribution plan. • Keep costs down until model is proven. • Brands don’t have to be content creators (ask BudTV.com) • Partner with proven creators.

Fox Case Study • Doubled campaign goal, with >8 million views to date • “Stars” posted 26 “Lie to Me” and 8 “Fringe” videos. • More than 100,000 comments • Both shows renewed and Fringe was one of network’s best debuts ever.

Fish Where Fish Are step one: get them to our product.com sites! Views! step two: get our video content on YouTube! BoringProduct.com! Websites!

(They Don’t Like to Leave)

Nalts’ Secret Sauce 1. Sexy, weird, candid 2. Thumbnails are king 3. Short titles 4. :30 to :90 seconds 5. Grab them in ﬁrst 10 seconds 6. Unbroadcast 7. Surprise ﬁnish

Seed, seed, seed • Real work starts after posting • Get it everywhere (Tubemogul.com) • Add media (per qualiﬁed view) • Target audience via social • “Your audience may like this...”

Some Take-Homers • Decide who’s in charge of media R&D, and be sure they’re sharing learning • Get help from a social-media moron, and give them room to breath • Monitor your brand via licensed dashboards or free poor-man tools • Do something.... even if small

Surprise... No Test Questions & Discussion? Kevin “Nalts” Nalty, kevin@NaltsConsulting.com www.NaltsConsulting.com

Viral is Dead: Keynote at Digital Day Toronto

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