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Viral marketing is dead. Long live viral marketing.
 
Presentation Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Issues addressed in this presentation
A point of view on measurement and analytics
Understanding  the  question on CPG ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A simple philosophy… Any marketing dollar spent that does not make you money or make you smarter is a wasted marketing dollar. Kirk Cheyfitz, CEO, Story Worldwide
Grounding data in traditional marketing* ,[object Object],Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase
Moving consumers past inflection points Defectors Members New Users Trial Users Observers Size of Audience Customer Lifecycle Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase “ It’s not just what people do, it’s what people do next” Inflection points   Stop Go Stop Go Stop Go Stop Go
Re-classifying metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Diagnostic metrics (Weekly/Monthly)  ,[object Object]
[object Object],[object Object],[object Object],[object Object],Not all data are the same ,[object Object],[object Object]
Strategic  measures track conversion The reasons  why  drive learning goals Defectors Members New Users Trial Users Observers Size of Audience Customer Lifecycle Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase % % % % % % % % % % Inflection points   Stop Go Stop Go Stop Go Stop Go “ It’s not just what people do, it’s what people do next” Are consumers moving down the decision-making process?
Diagnostic  measures track size of audience What is happening with the technology? % Size of Audience Customer Lifecycle % % % % % % % % % % Inflection points   Stop Go Stop Go Stop Go Stop Go Is the experience working properly?
Overall  s uccess is measured in the increments Size of Audience Customer Lifecycle Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase
Ultimately, let’s turn data into  customers “ Consumers” Insights Individual Real Are consumers moving down the decision-making process? Who buys our products and why? Size of Audience Customer Lifecycle % % % % % % % % % % Inflection points   Stop Go Stop Go Stop Go Stop Go The reasons  why  drive learning goals Content / Experiences Content / Experiences Content / Experiences Content / Experiences Content / Experiences Content / Experiences Data dB Data Data Data Data Data “ Eye Balls” Data Aggregate Virtual
The “who” starts everything None of this really matters if we don’t  know —or at least have a hypothesis about—our consumers. David Levy, Story Worldwide
Segmentation of consumers in dB ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business goals Digital role Description Segment Consumers not in the brand at all ,[object Object],“ New” ,[object Object],[object Object],Consumers who have purchased our products but have yet to opt in “ Name” ,[object Object],[object Object],Consumers who have opted in but may, or may not, have purchased our products “ Dabblers” ,[object Object],[object Object],[object Object],Consumers who have purchased our products and opted in for further communications “ Buyers”
Customer Lifecycle Engage each segment at a relevant moment… Acquire new names Yes IDENTIFY Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase New Name Dabblers Buyers Drive the next purchase Customer for life IDENTIFY as Buyer Validate:  in or out? Drive trial No
Customer Lifecycle … with content and experiences designed to reach that particular goal Acquire new names Yes IDENTIFY Coupons and offers, then migrate to newsletter Newsletter with content, features, coupons and offers Identify, then migrate to newsletter Identify, then migrate to newsletter Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase New Name Dabblers Buyers Drive the next purchase Customer for life IDENTIFY as Buyer Validate:  in or out? Drive trial No
Summary ,[object Object],[object Object],[object Object],[object Object],“ It’s not just what people do, it’s what people do next”
Long live viral marketing.
Some famous examples
Some not so famous examples –Week of 7/30/07 The  consumer  decides what is viral…not us. http://www.viralvideo.com Top 10 Viral Videos, From Wendy Boswell 1. The Backstreet Boys - "I Want It That Way" - Two Chinese Students and a Dream 2. All Your Base Are Belong To Us  3. Numa Numa Dance 4. Star Wars Kid-Original Star Wars Kid and Star Wars Kid Remixes 5. Demolition of the Seattle Kingdome 6. Whale Blows Up Video-aka Explosives and Mammals Don't Mix 7. "Apache Boy" - Big Hair, Big Dance Numbers, Big Cheese Factor 8. How To Dance Like A White Guy 9. "It's A Big Ad-Such A Big Ad"-Carlton Draught's Big Ad 10. Fifth Grade Devo-Whip It! Whip It Good!
Some not so famous examples –Week of 8/2/2007 The  consumer  decides what is viral…not us. http://www.viralvideo.com
Special report on experienced “viral” marketers ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Hall of Famers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],#1. Sunflower Market  Multichannel, widget, cardboard flowers #2. NetQoS' Netcosm  B2B, video #3. Farm Aid  microsite #4. The Gobbledygook Manifesto  Blog posting of book excerpt #5. Levi Strauss Hong Kong  Make your own video contest #6. TaxBrain.com TV commercial #7. Six Degrees/Network for Good #8. Beacon Street Girls  Games for book launch #9. Exeros Inc.  B2B Tech audience game #10. Fox's 'American Dad' DVD  Game Source:  Marketing Sherpa:  Viral Hall of Fame 2006, 2007 2006 2007
Definition(s) of viral marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Definition(s) of viral marketing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Common / Uncommon ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Creating great content that turns people into media…and it helps to be funny But… Is it branded?  Can we control it?  Do we kick start it?  Must it be short?  And what’s a “cohort”?
Classic “viral” model   ,[object Object],[object Object],[object Object],[object Object],Our message starts with this one “alpha” case and spreads throughout a larger population: Un-paid media
Explosion in un-paid media and awareness Size of Audience Customer Lifecycle Increases in up-paid media can impact results further down the decision making process Loyalty Usage Purchase Trial  Consideration Awareness Purchase Ownership Pre-Purchase
Increases in un-paid media can be measured ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A simple model to measure un-paid awareness ,[object Object],[object Object],[object Object],[object Object],[object Object],$0.333  1,500,000 500,000 $0.500  $500,000  1,000,000 Print $0.091  22,000,000 2,000,000 $0.100  $2,000,000  20,000,000 TV $0.050  2,000,000 1,000,000 $0.100  $100,000  1,000,000 PR $0.017  15,000,000 10,000,000 $0.050  $250,000  5,000,000 Digital New CPI  New total  Incremental impressions  Initial CPI  Investment  Impressions Channel
Long live viral marketing - Summary ,[object Object],[object Object],[object Object],[object Object]
Viral marketing is dead.
Flaws with the “viral” metaphor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why start with a small seed….
… when you can start with a big one?   Source:  “Viral marketing for the real world,” Harvard Business Review
Reproduction rates describe movement R>1 R<1 R=1
A slightly more complicated model $0.19  52631.56 2631.56 0.31 6.25 125 2500 0.05 $0.20  50,000 $10,000  $9.50  1052.63 52.63 0.01 0.13 2.5 50 0.05 $10.00  1000 $10,000  $51.61  193.75 93.75 6.25 12.5 25 50 0.5 $100.00  100 $10,000  $20.00  5 4 1 1 1 1 1 $100.00  1 $100  $3.23  31 30 16 8 4 2 2 $100.00  1 $100  New CPI Total impressions Incremental impressions T=4 T=3 T=2 T=1 R Initial CPI  Initial seed Investment  [Additional impressions per time period = T]
We can measure this in REAL-TIME $0.19  52631.56 2631.56 0.31 6.25 125 2500 0.05 $0.20  50,000 $10,000  $9.50  1052.63 52.63 0.01 0.13 2.5 50 0.05 $10.00  1000 $10,000  $51.61  193.75 93.75 6.25 12.5 25 50 0.5 $100.00  100 $10,000  $20.00  5 4 1 1 1 1 1 $100.00  1 $100  $3.23  31 30 16 8 4 2 2 $100.00  1 $100  New CPI Total impressions Incremental impressions T=4 T=3 T=2 T=1 R Initial CPI  Initial seed Investment  [Additional impressions per time period = T] ,[object Object],[object Object],[object Object],[object Object],[object Object]
Here’s how viruses  really  work   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
This is your target audience…and your dB
We care about actions, as well as the actors   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],After the media is spread, treat them differently…. and try to turn receivers into senders
Viral marketing is dead - Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ It’s not just what people do, it’s what people do next”
Please, give me your feedback *May be used on a future podcast David Levy, VP Data Marketing Story Worldwide (203) 803-4791 [email_address] Audio comment line*:  (206) 350-3473 http://thethingis.typepad.com

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Viral Marketing Point Of View Final Generic

  • 1. Viral marketing is dead. Long live viral marketing.
  • 2.  
  • 3.
  • 4. A point of view on measurement and analytics
  • 5.
  • 6. A simple philosophy… Any marketing dollar spent that does not make you money or make you smarter is a wasted marketing dollar. Kirk Cheyfitz, CEO, Story Worldwide
  • 7.
  • 8. Moving consumers past inflection points Defectors Members New Users Trial Users Observers Size of Audience Customer Lifecycle Loyalty Usage Purchase Trial Consideration Awareness Purchase Ownership Pre-Purchase “ It’s not just what people do, it’s what people do next” Inflection points Stop Go Stop Go Stop Go Stop Go
  • 9.
  • 10.
  • 11. Strategic measures track conversion The reasons why drive learning goals Defectors Members New Users Trial Users Observers Size of Audience Customer Lifecycle Loyalty Usage Purchase Trial Consideration Awareness Purchase Ownership Pre-Purchase % % % % % % % % % % Inflection points Stop Go Stop Go Stop Go Stop Go “ It’s not just what people do, it’s what people do next” Are consumers moving down the decision-making process?
  • 12. Diagnostic measures track size of audience What is happening with the technology? % Size of Audience Customer Lifecycle % % % % % % % % % % Inflection points Stop Go Stop Go Stop Go Stop Go Is the experience working properly?
  • 13. Overall s uccess is measured in the increments Size of Audience Customer Lifecycle Loyalty Usage Purchase Trial Consideration Awareness Purchase Ownership Pre-Purchase
  • 14. Ultimately, let’s turn data into customers “ Consumers” Insights Individual Real Are consumers moving down the decision-making process? Who buys our products and why? Size of Audience Customer Lifecycle % % % % % % % % % % Inflection points Stop Go Stop Go Stop Go Stop Go The reasons why drive learning goals Content / Experiences Content / Experiences Content / Experiences Content / Experiences Content / Experiences Content / Experiences Data dB Data Data Data Data Data “ Eye Balls” Data Aggregate Virtual
  • 15. The “who” starts everything None of this really matters if we don’t know —or at least have a hypothesis about—our consumers. David Levy, Story Worldwide
  • 16.
  • 17. Customer Lifecycle Engage each segment at a relevant moment… Acquire new names Yes IDENTIFY Loyalty Usage Purchase Trial Consideration Awareness Purchase Ownership Pre-Purchase New Name Dabblers Buyers Drive the next purchase Customer for life IDENTIFY as Buyer Validate: in or out? Drive trial No
  • 18. Customer Lifecycle … with content and experiences designed to reach that particular goal Acquire new names Yes IDENTIFY Coupons and offers, then migrate to newsletter Newsletter with content, features, coupons and offers Identify, then migrate to newsletter Identify, then migrate to newsletter Loyalty Usage Purchase Trial Consideration Awareness Purchase Ownership Pre-Purchase New Name Dabblers Buyers Drive the next purchase Customer for life IDENTIFY as Buyer Validate: in or out? Drive trial No
  • 19.
  • 20. Long live viral marketing.
  • 22. Some not so famous examples –Week of 7/30/07 The consumer decides what is viral…not us. http://www.viralvideo.com Top 10 Viral Videos, From Wendy Boswell 1. The Backstreet Boys - &quot;I Want It That Way&quot; - Two Chinese Students and a Dream 2. All Your Base Are Belong To Us 3. Numa Numa Dance 4. Star Wars Kid-Original Star Wars Kid and Star Wars Kid Remixes 5. Demolition of the Seattle Kingdome 6. Whale Blows Up Video-aka Explosives and Mammals Don't Mix 7. &quot;Apache Boy&quot; - Big Hair, Big Dance Numbers, Big Cheese Factor 8. How To Dance Like A White Guy 9. &quot;It's A Big Ad-Such A Big Ad&quot;-Carlton Draught's Big Ad 10. Fifth Grade Devo-Whip It! Whip It Good!
  • 23. Some not so famous examples –Week of 8/2/2007 The consumer decides what is viral…not us. http://www.viralvideo.com
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30. Explosion in un-paid media and awareness Size of Audience Customer Lifecycle Increases in up-paid media can impact results further down the decision making process Loyalty Usage Purchase Trial Consideration Awareness Purchase Ownership Pre-Purchase
  • 31.
  • 32.
  • 33.
  • 35.
  • 36. Why start with a small seed….
  • 37. … when you can start with a big one? Source: “Viral marketing for the real world,” Harvard Business Review
  • 38. Reproduction rates describe movement R>1 R<1 R=1
  • 39. A slightly more complicated model $0.19 52631.56 2631.56 0.31 6.25 125 2500 0.05 $0.20 50,000 $10,000 $9.50 1052.63 52.63 0.01 0.13 2.5 50 0.05 $10.00 1000 $10,000 $51.61 193.75 93.75 6.25 12.5 25 50 0.5 $100.00 100 $10,000 $20.00 5 4 1 1 1 1 1 $100.00 1 $100 $3.23 31 30 16 8 4 2 2 $100.00 1 $100 New CPI Total impressions Incremental impressions T=4 T=3 T=2 T=1 R Initial CPI Initial seed Investment [Additional impressions per time period = T]
  • 40.
  • 41.
  • 42. This is your target audience…and your dB
  • 43.
  • 44.
  • 45. Please, give me your feedback *May be used on a future podcast David Levy, VP Data Marketing Story Worldwide (203) 803-4791 [email_address] Audio comment line*: (206) 350-3473 http://thethingis.typepad.com