Buzzer WoMM Conference Istanbul 2008

Slide 1: Welkom bij Buzzer Istanbul, 6 May 2008 Buzzer © 2008 - Confidential

Slide 2: Will you take the red or the blue pill ? Buzzer © 2008 - Confidential

Slide 3: Buzzer © 2008 - Confidential

Slide 4: The The (uncomfortable) (comfortable) Truth Illusion (about marketing) Buzzer © 2008 - Confidential

Slide 5: Truth vs. Illusion Old versus New The The (uncomfortable) (comfortable) Truth Illusion Remarkable products are bought Remarkable advertising sells Consumers might target you You can target consumers Honesty invites good customers Claim & seduce the market You never had control Marketing is about control Their time, place, content Your time, place, message Work very hard to get Pull Push hard enough and it works Buzzer © 2008 - Confidential

Slide 6: The RoI of Old (School) Marketing Advertising ↑ Succes rate new products  ↓ “For consumer packaged goods the failure rate for new products is widely reported to be 70% to 90%...” The Curse of Innovation, John T. Gourville - HBS Buzzer © 2008 - Confidential

Slide 7: Push is failing fast Consumers ‘see’ > 30.000 ads per year Advertisers are not seen as trustworthy Ads interrupt people Advertiser WoM does reach consumers Vs. and has greatest impact on buying behaviour Consumers Consumers talk about product experiences Consumers seen as most trustworthy source Opinions are easier and easier to find Buzzer © 2008 - Confidential

Slide 8: WWWoM...of buzz (through internet) The boost "Advertising has been supplanted as the chief shaper of consumer attitudes by word of mouth, which today's Web-linked consumer communities have put on overdrive” C.K. Prahalad, Venkat Ramaswamy, The Future of Competition Buzzer © 2008 - Confidential

Slide 9: The Breakup A short movie which describes a typical relationship between advertiser and consumer. Buzzer © 2008 - Confidential

Slide 10: ‘Pull’ has become the magic word www.elkhuistekoop.nl Buy a house which is not even on the market. www.mijnautoreparatie.nl Invite bids for your car repair 020.teambuy.com www.eventful.com Shop in groups Demand an event to come to you Buzzer © 2008 - Confidential

Slide 11: Existing players are taken out of the loop. www.hurenvanburen.nl Rent equipment from your neighbours www.boober.nl Consumers loan money directly to eachother Buzzer © 2008 - Confidential

Slide 12: Would you like to own… Fenerbahçe ? www.myfootballclub.co.uk Own a football club and pick the team… www.sellaband.com Discover new bands and get proceeds from their success Buzzer © 2008 - Confidential

Slide 13: New rules for the democracy www.trotsopnederland.nl Decide how a large Dutch political party votes on key issues www.senatoronline.com.au Vote on key issues in the Australian parliament Buzzer © 2008 - Confidential

Slide 14: The truth: the world’s most valuable brand “Google’s position is astonishing. Every other player in the top ten has spent decades investing billions in advertising. Google’s advertising expenditure is almost exactly zero. Think about that for a second: the top brand in the world belongs to a player that…uhhh…doesn’t advertise. Google is a living example of a deeper truth: that the future of communications as advantage lies in talking less, and listening more” Umair Haque - Harvard Business Review (The Shrinking Advantage of Brands) Buzzer © 2008 - Confidential

Slide 15: The Truth: Advertising & Word of Mouth MarCom Word of Mouth Television Radio Print PR DM + = Adoption Web Advertising makes Word of Mouth makes people curious people comfortable to buy Buzzer © 2008 - Confidential

Slide 16: How to survive in the new world ? Ignore the new rules. Buzzer © 2008 - Confidential

Slide 17: Ignore (or bend) the new laws ! “Willem’s presentation at the WOMC in Istanbul was the best ever held in any conference. And he is very, very handsome” I. Maginary, WOMC attendant Buy Willem Now ! (limited pieces left) 9 out of 10 people* that did not go to the WOMC said Willem’s presentation would have improved the quality of their lives if they had witnessed it. * Tested among a sample of hypothetical people. Buzzer © 2008 - Confidential

Slide 18: How to survive in the new world ? Take baby steps and don’t be afraid to fall. It won’t hurt much. Buzzer © 2008 - Confidential

Slide 19: Canon TryOut Photo – Experience the Product Upload your photo and receive the picture printed on the photoprinter you consider buying Buzzer © 2008 - Confidential

Slide 20: The UPC WebCare Team – ‘Listen’ online UPC employs a team that ‘listens’ to all online conversations about UPC, answersing questions and trying to help customers Buzzer © 2008 - Confidential

Slide 21: Dove Self Esteem – Engage & participate The Dove real beauty campaign invites teenagers, mothers and other women to play an active role Buzzer © 2008 - Confidential

Slide 22: Puma’s Participation – Personalise Create unique shoes by choosing from 17 variables Buzzer © 2008 - Confidential

Slide 23: Fiat 500 – Co-create 500 days before the launch of the Fiat 500, potential customers are invited to create accessories and themes for advertising Buzzer © 2008 - Confidential

Slide 24: How to survive in the new world ? Get some help while learning how to walk. Buzzer © 2008 - Confidential

Slide 25: Buzzer Campaign Basics BuzzKit Buzz Boosting 1. Product 1. Equip 1. Stimulate, report, & Objectives Buzzers communicate Buzzer Platform 1. Selection 1. Buzzers 1. 24/7 Client Cockpit Buzzers buzz… Tracking € € € € € € € € € €€€ € € € € € €€ € € € € € € € € € €€ € € € € Buzzer © 2008 - Confidential € € € € €

Slide 26: Buzzed Brands > 50 campaigns in The Netherlands/Belgium Buzzer © 2008 - Confidential

Slide 27: Buzzer Cases - Pampers • MediaCat Magazine • Buzzer campaign for Pampers Buzzer © 2008 - Confidential

Slide 28: The Case: Gillette Fusion Challenges 1. Skepticism: more blades = marketing trick 2. Value perception = too expensive 3. Guys don’t talk about shaving Buzzer © 2008 - Confidential

Slide 29: From skepticism to enthusiasm 0. 1. Product 2. Count 3. Assign Skepticism Experience shaves value/shave BuzzPoll Shave ‘value’ + +€ Personal Economic Shaving Advice Buzzer © 2008 - Confidential

Slide 30: Create conversations. ‘Bluff your way into shaving’ ‘Famous Beards’ Buzzer © 2008 - Confidential

Slide 31: The buzz goes on… • Buzzer gets (other) editors of radioshow to test Fusion, aired live for +/- 45.000 listeners • > 10.000 BlufGuides handed out… • Buzzer review on well- visited Blog, 20+ reactions Buzzer © 2008 - Confidential

Slide 32: Leverage other media... Buzzers ‘launch’ website game & draw traffic Super de Boer created a simple version of the BlufGuide on their website. Traffic site 100.000’s a week 400 Award-winning Buzzers visit the Fusion Challenge skating event & create onsite buzz… Buzzer © 2008 - Confidential

Slide 33: Feedback Buzzers explained that you needed to learn how to use the trimmer Product usage tips were changed on the packaging Buzzer © 2008 - Confidential

Slide 34: The Buzz Snowball People buzzed about the Gillette Fusion (Generations 1 and 2: offline & online) 1.500 G1: ‘buzzed’ > 100.000 Generation 2 > 400.000 Buzzer © 2008 - Confidential

Slide 35: Buzzer © 2008 - Confidential

Slide 36: 2 Movies: With and without WoMM The Constant Gardener vs. Crash Buzzer Campaign Traditional MarCom 500 Buzzers 500 Guests 7 theatres 2 nights Buzz Tools 3 months Buzzer © 2008 - Confidential

Slide 37: Align Marketing Strategy with Buzz Crash vs. The Constant Gardener: indexed revenue per week 100% WoM/Buzz Trendline 80% 60% TCG Crash ‘lost’ 40% 40% extra revenue 20% Reduced number of theatres/ shows Crash 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17 Marketing strategy is not aligned with market ‘buzz’ Buzzer © 2008 - Confidential

Slide 38: Other examples Buzzer © 2008 - Confidential

Slide 39: WoM is simply creating ambassadors, right ? Well… No. Ambassadors are Yes/No You can’t ‘create’ them with any certainty Will they give the right feedback ? ‘Fans’ can have less impact than neutral consumers They don’t look for the right customer Etc. (We call our Buzzers civil marketeers) Buzzer © 2008 - Confidential

Slide 40: Open Source & Word of Mouth Marketing Word of Mouth Marketing Buzzer © 2008 - Confidential

Slide 41: Open source marketing as a paradigm shift 6. Learn & adopt new mentality & business models 5. Embed WoM structurally 4. Serious experimentation Succesful cases, professional WoM players 3. Confusion 2. Ignore, bend, (time of consultants & gurus) get rich quick The job of the WoM industry is to learn 1. Consumers & various players to play by the new rules startups rule of ‘flat’ or open source marketing Buzzer © 2008 - Confidential

Slide 42: Tools of the Word of Mouth Industry Access to Consumers Media & Seed products Logistics Create WoM-specific tools & content Storytelling, campaigns Start, stimulate, mediate dialogues Creative Facilitate collaboration Create (technological) tools Tools Measure, research, analyse Advisory Insights Buzzer © 2008 - Confidential

Slide 43: The bottom line. Make it easier to experience and talk about your products Create remarkable stuff that people will want to talk about Listen to know what people find remarkable (or not) Create remarkable loyalty from people you want to listen to. Invite people to participate in your marketing and brand Buzzer © 2008 - Confidential

Slide 44: Inspiration. Buzzer © 2008 - Confidential

Slide 45: Contact. willem@buzzer.nl (www.buzzer.nl) robbert@buzzer.nl Buzzer © 2008 - Confidential