The Insights team at BRANDSpanking have been covering the BDO festival for the last 8 years, looking at the event as a youth marketing and youth research property and analysing its attendance, its youth marketing activity and ETHNOGRAPHIC potential as a representation of NZ youth. The PURPOSE of this report is to not only to review the BDO and its youth marketing potential but to compare it against what many ignore as a religious festival but still remains as one of NZ’s biggest ‘OTHER’ youth music events – Parachute.

1. A TALE OF TWO GIGS // YOUTH MARKETING NIRVANA OR JUST A MUSIC FESTIVAL?

2. // TALE OF THE TAPE…..// History (Number of events held) 16 (BDO) – 20 (Parachute) 2010 Attendance 45,000 – 25,000 Location 2010 Auckland – Hamilton Duration 1 Day – 4 Day DNA Aussie Import – Kiwi Christian Price $132 - $172 Style Alternative, Mainstream Mash Up – Christian Music Celebration

3. The Insights team at BRANDSpanking have been covering the BDO festival for the last 8 years, looking at the event as a youth marketing and youth research property and analysing its attendance, its youth marketing activity and ETHNOGRAPHIC potential as a representation of NZ youth. The PURPOSE of this report is to not only to review the BDO and its youth marketing potential but to compare it against what many ignore as a religious festival but still remains as one of NZ’s biggest ‘OTHER’ youth music events – Parachute. SPENCER WILLIS , former founder and lead researcher of 18 Limited and Youth Researcher at Synovate attended both events, liaised with seasoned Parachute volunteers and fell back on years of first hand ethnographic studies at BDO and other youth orientated events. This report will provide those trying to TARGET YOUTH some valuable insights around both the festivals themselves and also some how to’s when targeting YOUTH.

4. // EXEC SUMMARY // Stories travel faster and further than moments, brands that facilitate stories via their activations generate more ROI than those who create a moment by just turning up . PARACHUTE is probably the best example of youth marketing seen in years . An untapped property which, arguably, has a larger concentration of 14 – 20year olds than any other event in NZ. Music remains at the heart of the youth market, regardless of the genre or location. Music penetrates the mindset and opens the wallet of our target audience like no other product. Understanding HOW to align the commercial world of selling cans of sugary water or bars of cocoa solids or air time in this environment is not as hard as most would suggest and probably requires a look at the past rather than a giant leap into anything new or a search for the ‘next big idea’

5. //BACK IN THE DAY @BDO// Remember 2004 and the size of Scot Kelly’s dick? Or 2006 and the Fruju water slide and the Durex lanyard campaign? Being able to get a real tattoo from the Illicit and Misery guys or the guy who hung suspended by hooks? The above examples are ‘stories’ while the ones below are moments … the above facilitated an action or a retelling of a story, below was more a passive experience or lacks the ‘and then we…..’ bit ASB turned up with a pimped out bus back in 07 and confused everyone with technology and PAGO This year the V Man jetted over the stage for 10 seconds // “ (marketing and free stuff )…..its cool, it gives you something to do during the gap between bands you want to see…someone should put a list together of stuff that’s there so you don’t miss out ” (2006 BDO attendee)

6. // THIS YEAR @ BDO // V was the dominant player in terms of interaction and awareness. Its scissor crane platform, the now ‘part of the set up’ photo booth, its vendors and of course the V ROCKET MAN moment. Jim Beam had its tent in the ‘Bar’ area at the back of the stadium with the well presented Jim Beam girls – these guys seemed to understand their consumer and the brand relationship – area to hang out , girls to entertain and product to consume – a simple method for a simple target (males) Speight's SUMMIT had the most branding at the event and a lot of product consumed. But really, what did they do apart from turn up and keep the beer cold? Consumers INVESTED around an hour between age identification bracelets and the beer queue itself to buy a product they may not want for a price that could be best described as inflated. The brand association is….? The experience is……? How many people had a Speight’s Summit for the first, and now last, time at BDO this year? As for Telecom, nice stand…but why, it’s not like you need a brand awareness exercise // see slide12 for mobile insights

7. // THIS YEAR @ BDO // A couple of quick mentions // Spookers the crew had fun and the message was clear – buy tickets to Spookers Illicit and Misery normally dominate the corner area but this year just Illicit with a t-Shirt selling stall // ouch BFM….Fail // The white tent with the 70’s porn like movie showing…anyone?// cool tent though The Epic award goes to Rock FM // Someone there gets it // The re-introduction of Channel Z hitting the nostalgia button g iving Gen Ys a chance to reminisce SPONSORING AND BRANDING the water taps, putting a branded gazebo over taps and facilitating free water....simplicity at its best , understand the need and brand it Consumer NEED + Enabling + Branding + Attitude = Got it!

8. // WHILE OVER IN MYSTERY CREEK HAMILTON // We’ve often thought “what’s with Parachute” and clients have often asked the same and usually in context of BDO or Parachute? // Never again shall we ask this question, here’s why... ONE day event where everyone goes home post midnight versus a 4 day festival where most people camp and watch a movie post midnight…. People get drunk at BDO…………they don’t at Parachute BDO can be 15 to 50 with a core of 19 – 22 whereas Parachute has a massive core of 16 – 18 year olds Brands can just turn up with product at BDO and go home at 7pm, @ Parachute you’re in it for the whole 3 – 4 days Parachute know what I think of their toilets 72 hours after I last used them and tried to sell me a ticket for next year…. BDO don’t know I’ve been for the last 8 years

9. // PARACHUTE // Religious beliefs' (Brand value) aside, the marketing machine that is Parachute is admirable . Not only is it a festival of 25,000 loyal fans but they have: A house band that sells albums // A studio in Mt Eden // A FEE paying supporters Club // Full Label Management with artists in the mainstream Top 40 // A Book // Seminars discussing Youth Issues // Skate park // Artist Workshops // “Got Talent” Comp // Coke SPONSORSHIP Artists appearing at Parachute and sales of albums at the 4 day event helped 7 artists break into the NZ Top 40. A survey hit every ticket holder 3 days after the event asking everything from opinions of toilets / food / seminars / bands / speakers and tickets The music was pretty cool too …..even for a non believer…

10. // SUMMARY // Activation at these events is costly and time consuming…the brands that benefit are those that facilitate a need or a unique version of a story // Coke Happiness campaign at Parachute facilitated an experience // Telecom turned up and looked good in the corner….where was the conversation? // Is the crowd my crowd? How do I engage or mingle with the crowd? What’s my conversation, what’s my story? What am I selling? (Brand / Product / Message) Will people talk about me afterwards? We love BDO for a great day out and brands could certainly step up and get involved, see 2006 for ways to do so // or ring us // Parachute on the other hand has to be one of the best examples of Youth Marketing there is in NZ…. look past the religion and you’ll see an authentic marketing machine at its best.

11. // SUMMARY // You know what to expect from BDO, but as Jonathan Dodd quoted in the NZ Herald ” The Big Day Out is clearly one of the best examples around of how capitalism, globalisation and great marketing can combine to create a sound money-making machine” He obviously didn’t attend Parachute [nor the BDO for that matter] // BDO is still closer to its original roots of ‘uniting the shambolic independent music scene’ than it is of being a great example of great marketing and capitalism. For that we say see Parachute // Regardless of event or activation plan remember golden rule of youth marketing – Authenticity and Versatility /?

12. // A LITTLE EXTRA…MOBILES AND TEENS // Larry Rosen recently put it best when he said “ Although the telephone took 20 years to reach 50 million users, the Web took four years, iPods three and MySpace two, and YouTube hit 50 million users in one year. The iGeneration is driving these consumer trends…… they don't see technology as a tool. For them, it is just life” Teenagers at both events didn't talk they texted, they texted while walking and not even looking… Overheard in conversations @ multiple venues “wouldn’t walkie talkies be a cool idea at these things…..” What does this mean……it means communication is about function over substance….in a recent Facebook poll we conducted 90% of teenage respondents are on Pre Pay and only 8% on plan…why? Function, I can walk away and control because the purpose is text. Email comms are dropping in the US teen market year on year – texting // IM // FB are killing email So if I’m a Telco at a youth event, what am I doing if all my target want to do is text and hook up // Facilitate hook ups // Facilitate my phone always being on // Enabling communication even if the network gets ‘busy’ // Enable ‘being there’ Larry Rosen is a professor of psychology at California State University, Dominguez Hills. He has written four books, the latest of which, "Rewired: Understanding the iGeneration and the Way They Learn,"

13. For further Insights, Consultancy and Prompt Responses to RFP’s across both Youthful Research and Interactive Experiential Marketing or Speaking Engagements Contact Spencer Willis 09 377 4110 spencer@brandspanking.co.nz Lastly, we are gauging interest in doing accompanied immersions with clients for 2011. Brand Spanking will accompany you and your management teams to Retail / BDO / Parachute or other environments along with a brand or company research objective to capture youth thoughts and feelings towards you and your brands. If you're interested, let us know...it's an amazing way to interact with your target market - we can set you up with all the tools you need and give you a rare insight into your target market.