Persuasive Potential of Consumer-Produced Content

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Leveraging User-Generated Video in the Marketing Mix

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Persuasive Potential of Consumer-Produced Content

  1. 1. Persuasive Potential of Consumer-Produced ContentLeveraging User Generated Video in the Marketing Mix
  2. 2. Your Speakers Daphne Kwon CEO, EXPO Communications, Inc. Frank Findley VP Research & Development © comScore, Inc. Proprietary. 2
  3. 3. EXPO Communications, Inc. Overview EXPO Communications, Inc. has been involved in commerce video since 2004 founded by a team from Oxygen Media, General Atlantic Partners and Amazon. A community of over 75,000 members have contributed over 330,000 unbiased video product reviews to help other consumers make buying decisions EXPO distributes its product review video catalog on expotv.com as well as to: Retailers including Amazon.com, Drugstore.com, Staples.com Social media such as Facebook and YouTube Manufacturer websites and mobile apps Paid media including pre-roll, rich media campaigns, newsletters © comScore, Inc. Proprietary. 3
  4. 4. Generating accountable, authentic user-gen video reviewsOver the past 5 years, EXPO has enabled consumers to inform otherconsumers through the power inherent in video. The process includes 1. Accepting reviews on any nationally available product 2. Publishing all videos received, regardless of positive or negative opinion, so long as it meets our quality standards 3. Screening each video for relevance and quality 4. Rewarding consumers who submit quality reviews by offering recognition, contests, loyalty ‘points’, and special consumer programs such as obtaining exclusive pre-launch product. 5. EXPO T&Cs include agreement that the reviewer does not work for the manufacturer, or is not otherwise enriched by their review, and includes their full name and contact information. © comScore, Inc. Proprietary. 4
  5. 5. comScore Digital Business Analytics Audience Measurement Site Analytics User Analytics Vertical Market SolutionsUnified Digital Measurement™ Social Analytics Copy Testing Campaign Verification Advertising Analytics Ad Effectiveness Cross Media Mobile Audience Measurement Network Analytics & Optimization Mobile Analytics Customer Experience & Retention Management © comScore, Inc. Proprietary. 5 V0910
  6. 6. comScore Acquires ARS Acquired Feb 2010 Heritage of Quality Measurement and Research on Research 40+ years and 40,000+ tests Our Promise is to Improve Advertising’s Sales Effectiveness End-to-end cross media advertising analytics solutions Focus on Recall, Persuasion, and the drivers of each © comScore, Inc. Proprietary. 6 V0910
  7. 7. Power of the ARS Persuasion® Measure ARS Persuasion is the Most Documented & Independently Certified Predictive Measure of Advertising in the World. TV ARS Persuasion Facts: Mobile Higher ARS Persuasion scores lead to higher sales, share and cash flow The world’s largest advertisers use Digital ARS Persuasion to improve their business performance ARS Persuasion is now embedded Radio in many of comScore’s existing products Print © comScore, Inc. Proprietary. 7 V0910
  8. 8. Online Advertising: Leaving Branding Dollars on the Table 2009 U.S. Measured Media Spend $147 Billion Branding $91B 63% 2009 U.S. Online Media Spend $24 Billion 6% of branding $6B dollars $18B Response 30% of direct Direct 37% $55B response dollars © comScore, Inc. Proprietary. 8 Source: Barclays, ThinkEquity Partners, Brand.net
  9. 9. Do CPG campaigns online drive sales?.... AbsolutelyNorms for comScore CPG Sales ROI Studies – 82% of campaigns showed a positive – Average Sales Lift 22% Percent Lift in Dollar Sales 100% 80% 60% 82% of campaigns 40% showed a positive sales lift 20% Average $ lift: 22% 0% ‐20% # Offline Sales Effectiveness Studies © comScore, Inc. Proprietary. 9 Source: comScore CPG Ad Effectiveness Study
  10. 10. Display advertising early mistake #1: ClutterEffective visual branding should have started simple. Television, not newspaper,should have been the model for monetizing online content. Clutter Brand advertisers tell stories. They don’t want to compete with other advertisers. This is Can you a better model for display. imagine? © comScore, Inc. Proprietary. 10 Source: ARF Rethink 2010, Jeffrey Hackett
  11. 11. © comScore, Inc. Proprietary. 11 Source: ARF Rethink 2010, Jeffrey Hackett
  12. 12. Online video growth is a significant opportunity for advertisers toexpand the audience they reach with compelling creative Online video reaches 81% of the Average time spent viewing online web population each month videos is up 113% versus last year Online Video Viewers (MM) Videos Viewed & Minutes Spent per Viewer Videos/Viewer – up 68% Minutes/Viewer – up 113% © comScore, Inc. Proprietary. 12 Source: comScore Video Metrix
  13. 13. Video advertising is significant in terms of online audience reach 63% of the online audience is currently reached by video advertising each month 83% of all online spending comes from them © comScore, Inc. Proprietary. 13 Source: comScore Video Metrix 2.0, June 2010
  14. 14. Facebook monthly UVs now over 145 million in U.S Number of Unique U.S. Visitors (000) to Facebook.com Number of Unique U.S. Visitors (000) to Facebook.com Source: comScore Media Metrix Source: comScore Media Metrix +66% in July 2010 vs. YA Unique Visitors (000) © comScore, Inc. Proprietary. 14 Source: comScore Media Metrix Media
  15. 15. Twitter experienced explosive growth in early 2009, now at 20+ millionmonthly UVs. Total Unique Visitors (000) to Twitter.com 24.8 million UVs +17% vs. July ‘09 & +3066% vs. July ‘08Unique Visitors (000) © comScore, Inc. Proprietary. 15 Source: comScore Media Metrix Media
  16. 16. EXPO CommunityA place where consumers share their product stories 75,000 members have contributed over 330,000 videos since 2005 © comScore, Inc. Proprietary. 16
  17. 17. Research questions Are user generated video reviews a potentially persuasive vehicle for marketing communications? – Do user generate videos contain executional elements proven to be drivers of persuasive communications? – Does this occur at a level to be useful for branding purposes? Are user generated product review videos best used as a replacement or a complement to existing branding vehicles? – Do user generated reviews fill any “gaps” not addressed in other media vehicles? © comScore, Inc. Proprietary. 17
  18. 18. Executional factors explain differences in advertising performanceIn 1984, Vanderbilt University and The Marketing Science Institute identified over 150different strategic and executional content elements thought to influence an ads potentialselling power across four key dimensions: Emotional Connection Rational Connection Brand Linkage Ability Advertising StructureRepublished in 2000 by the JAR as one of the articles thathas withstood the test of timeOriginally these "validated" content drivers were used incopytesting as diagnostics to explain differences in ARSPersuasion and Related Recall results.Later, they became "rules of thumb" used by advertisersand agencies to help guide creative development.More recently, they have become the basis of a systemthat can quickly and inexpensively provide indication ifcontent is potentially persuasive. Source: Analysis of the Impact of Executional Factors on Advertising Performance Stewart, Furse/JAR -Dec © comScore, Inc. Proprietary. 18 1984
  19. 19. Key strategic drivers are used at a much lower rate in digital vs. TV ads Percent of Ads Containing Element Digital Display Ads1 Television Ads1 (Rich Media, Banners)New Product/New 44% 19%Feature InformationBrand Differentiating 31% 17%Key MessageSuperiority Claim 26% 13%Competitive Comparison 24% 10%Product Convenience 9% 0%(explicit & stated) 1 Cases drawn from comScore ARS test databases and balanced by category (n=100 for digital display ads, n=3,681 for Television Ads) © comScore, Inc. Proprietary. 19
  20. 20. Research methodology 25 EXPO User Gen Video Reviews were selected across industries, companies, brands, categories, and generation methods The videos were chosen in a manner consistent with how current EXPO clients select reviews for use in marketing communications The 25 selected video reviews were evaluated using the ars.zipline system – an expert panel codes the presence and duration of the content elements – a technical score is generated based on the presence of the content elements and the relative variance they explain in persuasiveness and memorability For perspective, these results were compared to the comScore ARS historical database of television and digital display advertising © comScore, Inc. Proprietary. 20
  21. 21. The ARS Zipline Technical Score The ARS Zipline Technical Score has shown to be a proven indicator of ARS Persuasion scores in over 8000 cases. Average ARS Persuasion Score N = 8086 R = 0.95 ARS Zipline Technical Score © comScore, Inc. Proprietary. 21
  22. 22. ARS Zipline Technical Score - User generated reviews100% of the selected user generatedvideo reviews yielded results in themiddle and upper levelsThis is consistent with televisionadvertising which qualifies for airing incopytesting…demonstrating itspotential value for branding purposes % of Select User Generated Video Reviews ARS Zipline Technical Score (N=25) Below Average Range (0 to 29) 0% Average Range (30 to 50) 68% Above Average Range (51 to 100) 32% © comScore, Inc. Proprietary. 22
  23. 23. Examples Looking at specific cases within the study, there are stellar examples of different types of persuasive content– These cases excel in that they not only have the intense product focus that the majority of the EXPO User Gen Review cases contain, but also include the key strategic elementsUser Generated Product Review ARS ZiplineVideos (Reviewer) Technical ScoreClairol Nice n Easy Perfect 10 (cggood) 65Cascade ActionPacs (Forever December) 59Mr. Clean Magic Eraser (Mean Queen) 58Apple iPad (adougherty27) 53 © comScore, Inc. Proprietary. 23
  24. 24. Clairol Nice n Easy Perfect 10 (cggood) – Organic Video Clairol Nice n Easy Perfect 10 Brand Name (Reviewer) (cggood) The User Gen Review for Clairol Rational Elements Quality No Nice n Easy Perfect 10 is the Enjoyment Appeal No highest rated review tested. Brand-Differentiating Key Message New Product/New Feature Yes Yes Product Convenience Yes– Its strength lies in the reviewer Competitive Comparison No Superiority Claim Yes communicating what made the Emotional Elements product different from other Humorous Tone No Cute/Adorable No offerings and claiming its Happy/Fun Loving No Child/Infant/Animal/Animated Principal Character No superiority over other products. Music Creates Mood No Brand Linkage Elements Continuing Character in Campaign No Continuing Musical Theme No Brand Name Reinforces Benefit Yes Ad Structure (Positive Elements) Visual Memory Device No Setting Indoors Yes Numerous Brand Name/Logo Appearances (4+) No(1) Numerous Screen Cuts (12+) No(0) Demonstration of the Product in Use No Setting Directly Related to Use Yes Prominence of Actual Product on Screen No(0") Numerous Brand Name Mentions Yes(10) Prominence of Brand Name/Logo on Screen Yes(91") "Ive said in previous times that Nice n Category Identified Early in the Ad Yes(0") Product/Package Shown Early in the Ad Yes Easy covers my grey better than any Music Major Element No other home coloring product that I’ve Ad Structure (Negative Elements) discovered." - cggood Numerous On-Screen Characters Avoided (4+) Yes(1) Male Main Character Avoided Yes Background Cast Avoided Yes © comScore, Inc. Proprietary. 24 ARS Zipline Technical Score 65
  25. 25. Cascade ActionPacs (Forever December) – Sampling Video Brand Name Cascade ActionPacs (Reviewer) (Forever December)Rational Elements Quality No Enjoyment Appeal No Brand-Differentiating Key Message No New Product/New Feature No Product Convenience Yes Competitive Comparison Yes Superiority Claim NoEmotional Elements Humorous Tone No Cute/Adorable No Happy/Fun Loving No Child/Infant/Animal/Animated Principal Character No Music Creates Mood NoBrand Linkage Elements Continuing Character in Campaign No Continuing Musical Theme No Brand Name Reinforces Benefit YesAd Structure (Positive Elements) The User Gen Review for Cascade Visual Memory Device No ActionPacs is also highly rated. Setting Indoors Yes Numerous Brand Name/Logo Appearances (4+) No(1) Numerous Screen Cuts (12+) No(0) – While it doesnt contain the hard hitting Demonstration of the Product in Use Yes messaging of the previous Clairol example, it Setting Directly Related to Use Yes Prominence of Actual Product on Screen Yes(83") does show the actual product on screen and Numerous Brand Name Mentions Yes(6) in use – where the consumer would use the Prominence of Brand Name/Logo on Screen Yes(79") Category Identified Early in the Ad Yes(0") product. Also, the product is favorably Product/Package Shown Early in the Ad Yes compared to competitors and convenience is Music Major Element NoAd Structure (Negative Elements) explicitly stated. Numerous On-Screen Characters Avoided (4+) Yes(1) Male Main Character Avoided Yes Background Cast Avoided Yes © comScore, Inc. Proprietary. 25 ARS Zipline Technical Score 59
  26. 26. Mr. Clean Magic Eraser (Mean Queen) – Organic Video Brand Name Mr. Clean Magic Eraser The same results are seen for (Reviewer) (Mean Queen) the Mr. Clean Magic Eraser Rational Elements review. Quality No Enjoyment Appeal No Brand-Differentiating Key Message No– The demonstration and New Product/New Feature No Product Convenience Yes prominence of the actual Competitive Comparison No Superiority Claim No product on screen help to drive Emotional Elements its high technical score. Humorous Tone Cute/Adorable No No Happy/Fun Loving No Child/Infant/Animal/Animated Principal Character No Music Creates Mood No Brand Linkage Elements Continuing Character in Campaign No Continuing Musical Theme No Brand Name Reinforces Benefit Yes Ad Structure (Positive Elements) Visual Memory Device No Setting Indoors Yes Numerous Brand Name/Logo Appearances (4+) No(1) Numerous Screen Cuts (12+) No(2) Demonstration of the Product in Use Yes Setting Directly Related to Use Yes Prominence of Actual Product on Screen Yes(48") Numerous Brand Name Mentions Yes(5) Prominence of Brand Name/Logo on Screen Yes(14") Category Identified Early in the Ad Yes(6") Product/Package Shown Early in the Ad Yes Music Major Element No Ad Structure (Negative Elements) Numerous On-Screen Characters Avoided (4+) Yes(1) Male Main Character Avoided Yes Background Cast Avoided Yes © comScore, Inc. Proprietary. 26 ARS Zipline Technical Score 58
  27. 27. Apple iPad (adougherty 27) – Organic VideoBrand Name Apple iPad(Reviewer) (adougherty 27)Rational ElementsQuality NoEnjoyment Appeal NoBrand-Differentiating Key Message NoNew Product/New Feature YesProduct Convenience NoCompetitive Comparison NoSuperiority Claim NoEmotional ElementsHumorous Tone NoCute/Adorable NoHappy/Fun Loving NoChild/Infant/Animal/Animated Principal Character NoMusic Creates Mood NoBrand Linkage ElementsContinuing Character in Campaign NoContinuing Musical Theme NoBrand Name Reinforces Benefit No The Apple iPad review againAd Structure (Positive Elements)Visual Memory Device No contains a demonstration of theSetting Indoors YesNumerous Brand Name/Logo Appearances (4+) No(0)Numerous Screen Cuts (12+) No(0) product and a strong productDemonstration of the Product in Use YesSetting Directly Related to UseProminence of Actual Product on Screen Yes Yes(194") presence throughout the review.Numerous Brand Name Mentions Yes(13)Prominence of Brand Name/Logo on Screen No(0")Category Identified Early in the Ad Yes(7")Product/Package Shown Early in the Ad YesMusic Major Element NoAd Structure (Negative Elements)Numerous On-Screen Characters Avoided (4+) Yes(1)Male Main Character Avoided YesBackground Cast Avoided Yes © comScore, Inc. Proprietary. 27 ARS Zipline Technical Score 53
  28. 28. Where do user generated video reviews fit Into the marketing mix? Given the results that User Gen Product Reviews are a potentially persuasive communications vehicle, where do they fit? – The obvious question – Are they a replacement or a supplement to existing vehicles? TV Mobile Digital Radio Print © comScore, Inc. Proprietary. 28
  29. 29. User generated reviews provide supplementary strength to campaigns Comparison of the Prescience or Absence of  User Generated  Television Digital Display Elements Related to Persuasive Communication ReviewsThe results clearly show that Advertising Element % of Cases Containing ElementUser Generated Video Reviews Rational Elementsgreatly complement Quality 2% 8% 0%existing media vehicles Enjoyment Appeal Brand-Differentiating Key Message 11% 31% 0% 4% 9% 17%by providing enhanced New Product/New Feature 44% 24% 19% Product Convenience 9% 32% 0%product focus. Competitive Comparison 24% 40% 10% Superiority Claim 26% 12% 13%In particular, User Gen Emotional Elements Humorous Tone 11% 0% 1%Reviewers are more apt to Cute/Adorable 8% 0% 2% Happy/Fun Loving 8% 0% 0%discuss the products Child/Infant/Animal/Animated Principal Character 23% 0% 22% 16% 0% 0%convenience, quality, and Music Creates Mood Brand Linkageperformance relative to Continuing Character in Campaign 8% 0% 6% Continuing Musical Theme 0% 0% 0%competition – enhancing Brand Name Reinforces Benefit 49% 32% 47%communication of benefits for Structural Elements (Positive) Visual Memory Device 7% 0% 1%and/or reasons to believe the Setting Indoors 56% 100% 7% Numerous Brand Name/Logo Appearances (4+) 27% 4% 39%claims of the product. Numerous Screen Cuts (12+) 59% 0% 2% Demonstration of the Product in Use 77% 64% 25% Setting Directly Related to Use 51% 88% 5% Prominence of Actual Product on Screen 42% 76% 28% Numerous Brand Name Mentions 23% 32% 0% Prominence of Brand Name/Logo on Screen 35% 60% 39% Category Identified Early in the Ad 53% 100% 89% Product/Package Shown Early in the Ad 69% 100% 69% Music Major Element 0% 0% 0% Structural Elements (Negative) Numerous On-Screen Characters Avoided (4+) 56% 92% 22% Male Main Character Avoided 93% 96% 93% © comScore, Inc. Proprietary. 29 Background Cast Avoided 10% 92% 74%
  30. 30. User generated reviews showed strong presence of strategic elements Percent of Ads Containing Element Digital Display Ads1 User-Gen Television Ads1 (Rich Media, Banners) Video ReviewsNew Product/New 44% 19% 24%Feature InformationBrand Differentiating 31% 17% 4%Key MessageSuperiority Claim 26% 13% 12%Competitive Comparison 24% 10% 40%Product Convenience 9% 0% 32%(explicit & stated) 1 Cases drawn from comScore ARS test databases and balanced by category (n=100 for digital display ads, © comScore, Inc. Proprietary. 30 n=3,681 for Television Ads)
  31. 31. © comScore, Inc. Proprietary. 31
  32. 32. Six in ten consumers say the Internet has become important whenmaking buying decisions & 59% say it has increased in the past year Importance of the Internet in Making Purchasing Decisions Q. In the past 3 months, how important has the Internet become in providing Q. In the past 3 months, how important has the Internet become in providing you with information to help you make buying decisions? you with information to help you make buying decisions? Q. How has this changed versus a year ago? Q. How has this changed versus a year ago? 59% © comScore, Inc. Proprietary. 32 Source: comScore Survey – July 2010
  33. 33. Nearly 100% of online spenders are video viewers © comScore, Inc. Proprietary. 33 Source: comScore Video Metrix 2.0, June 2010
  34. 34. In addition, online video viewers are a highly desirable demographicwith strong buying power © comScore, Inc. Proprietary. 34 Source: comScore Video Metrix, December 08 Custom Research
  35. 35. Retail video – a quick overview YOY growth in retail video viewers (40%) significantly outpaced growth in total video viewers (17%) © comScore, Inc. Proprietary. 35 Source: comScore Video Metrix
  36. 36. Adding video to retail sites is extremely powerful Buying Power Index Buying Power Index Retail site visitors who also view video are 64% more likely to purchase Retail site visitors who also view video spend 2 minutes longer onsite per visit © comScore, Inc. Proprietary. 36 Source: comScore Video Metrix 2.0, June 2010
  37. 37. Key Points Trends of increased online video viewership and social media is helping propel new ad formats such as User Generated Video Reviews User Generated Video Reviews is a potentially persuasive vehicle that complements existing media types – Contains executional elements proven to be drivers of persuasive communications – Strong product focus can enhance communication of benefits and reason to believe One particularly powerful application is integration within ecommerce sites © comScore, Inc. Proprietary. 37 © comScore, Inc. Proprietary. 37
  38. 38. Contact Information For further information about comScore or EXPO, please contactcomScore ARS: EXPO:Ashley Grace David Rubinsteinagrace@comscore.com david@expotv.com812.425.4562 212.500.6575 © comScore, Inc. Proprietary. 38 38
  39. 39. Daphne KwonCEO,EXPO Communications, Inc. Thank You! Frank Findley VP Research & Development, comScore ARS © comScore, Inc. Proprietary. 39

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