People Powered Advertising Word Of Mouth At Scale

WOMI Case Study Macy’s Holiday Campaign Thursday, May 21, 2009

Online Rela:onship Pyramid People I know People I respect People with shared interests No Social component Thursday, May 21, 2009

People I Know Thursday, May 21, 2009

People I respect Thursday, May 21, 2009

People with Shared Interests Thursday, May 21, 2009

What’s a WOMI ? (TM) WOMI: Word Of Mouth Impression •WOMI campaigns spread posi:ve messages about a brand  between friends.  •2 step process: 1. Opt‐in: get consumers to express their opinion about a brand 2. WOMI: share the desirable results with the person’s friends. • Messages are delivered within standard ad units. Thursday, May 21, 2009

WOMI examples Opt‐in: WOMI: Thursday, May 21, 2009

Macy’s Holiday Example •Macy’s holiday campaign encouraged consumers to “Be  Claus” and asked “what type of Santa are you?” Thursday, May 21, 2009

Macysbelieve.com Thursday, May 21, 2009

Macy’s WOMI • WOMI promoted the Macy’s ‘becoming claus’ message amongst friends Opt‐in: Mona is asked a ques:on WOMI: Mona’s response is shared only with her friends WOMI 2: Campaign goes viral as Mona’s friends  respond to the original WOMI Thursday, May 21, 2009

WOMI Campaign Results •2 Month campaign • 5 million Word Of Mouth Impressions delivered between  friends on FB •Strong click through rates: engaging content+ friend  endorsement Thursday, May 21, 2009

What’s the point? •Friends inﬂuence each other • On social networks, people care more about their friends  than content  •We believe messages from friends are more relevant, more  believable and less likely to be ignored than messages directly  from a brand. Thursday, May 21, 2009

Real results •We don’t believe in chasing clicks • Rela:onships deliver inﬂuence •Objec:ve is to have consumers think more favorably about  your brand and become more likely to purchase Thursday, May 21, 2009

Goal: capture the funnel 1. Brand Awareness 2. Message Association Brand Favorability 3. Purchase Intent 4. Thursday, May 21, 2009

A]tudinal research •Partnered with Dynamic Logic to conduct quan:ta:ve research on 3  month CPG campaign •Focused on four key measures: 1. Top of Mind awareness   2. Online Ad awareness  3. Favorability  4. Purchase intent  Thursday, May 21, 2009

Overall results • Strong increases in all four key measures: • goal was to increase unaided (top‐of‐mind) awareness, Ad awareness, Favorability and Purchase intent • aided awareness was already high for the brand (95% among control), Overall Respondents: Brand Metrics Control (n=300) Exposed (n=201) Thursday, May 21, 2009

WOMI vs. Digital Norms • Top 20% of digital campaigns within category AdIndex Score: Normative Benchmarking of Brand Metric Deltas* Below Average Average Above Average Excellent Aided Brand Awareness Online Ad Awareness Brand Favorability Purchase Intent Percentile Ranking of Delta (!) * MarketNorms Q3/08 (Category: Personal Care, Baseline Adjusted, N=188 campaigns) Thursday, May 21, 2009

WOMI Bump Thursday, May 21, 2009

WOMI vs. social media • Rated by Dynamic Logic  to be in top 20% of all social media campaigns within  category Below Average Average Above Average Excellent Aided Brand Awareness Online Ad Awareness Brand Favorability Purchase Intent Aided Awareness results not surprising given Aided Awareness was almost maxed out (95%) Thursday, May 21, 2009

Are friend to friend WOMIs a gimmick?  No:  •  More exposure meant signiﬁcantly improved performance‐‐ even in brand  favorability: no wearout •  Best results across every measure for consumers who saw at least 4 WOMIs  Control (n=300) Exposed (n=74) Thursday, May 21, 2009

Are friend to friend WOMIs a gimmick?  More WOMI= improved results for brand. •   1 impression per week for campaign dura:on was breakthrough level Frequency of Exposure: Brand Metrics 1 2-3 4+ Ctrl Metrics Exp Exp Exp (%) ! ! ! (%) (%) (%) Unaided Brand 9 10 +0.4 14 +5.0 23 +13.9* Awareness: First Mention Unaided Brand 15 19 +4.2 16 +0.8 26 +10.9* Awareness: Any Mention Aided Brand Awareness 95 92 -2.6 91 -4.0 99 +4.0 Online Ad Awareness 36 56 +19.6* 48 +12.5* 58 +22.2* Brand Favorability 60 62 +1.7 56 -3.9 72 +11.5* Purchase Intent 45 44 -0.5 50 +5.0 58 +13.1* Sample Size 300 63 64 74 Thursday, May 21, 2009

Campaign Results •Millions of unique conversa:ons  •10M+ impressions served across 3 month campaign • Based on DL study results and historical brand closure rates: •60K+ addi:onal purchases per 1M unique consumers within 1 year •ROI es:mate above $1.40 •Deep learning about consumer sen:ment Thursday, May 21, 2009

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