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What is Viral
Marketing?
Viral marketing describes any strategy that
encourages individuals to pass on a marketing
message...
Mekanism–
Engineering Viral Marketing
Mekanism, is a digital/social media production company ,
for development of viral marketing campaigns.
Mekanism focuses ...
Traditional VS Viral Marketing
• Traditional advertising:
Cover massive individuals.
Trust level: medium/low.
• Viral ma...
Mekanism’s Problem
 Mekanism has grown tremendously from 2007 to 2010.
 Yet, in 2010 despite an increase in profits, the...
Stay with digital/VIRAL or get
into traditional Marketing ?
 Upside of sticking to digital
Core competency
It’s a huge market. Why agencies like Agency   
Net have succeeded
From ...
 Downside of getting into traditional
Struggling to compete with the resources and 
reach of a traditional network agency...
We’re up against
Saatchi & Saatchi
Ogilvy
Huge
Johannes Leonardo
Wieden & Kennedy
The Martin Agency
Crispin Porter ...
Strengths
 
Established player in the market
Got the right mix of talent
Innovation at its best
Ability to deliver vir...
Weaknesses 
 Still servicing a large number of ad agencies
 Unable to command a higher share of clients’ 
total expenses...
Opportunities 
 
Rival agencies may eat into our market 
share as they become more adept at digital 
marketing.
Threats
HIRING NEW TALENT
Mekanism's Income Statement(thousands of dollars)
2007 2008 2009 2010
Gross Revenue 9,330 10,852 18,238 20,111
Production ...
Content Likely To Be Shared
My ADSPACE
 Making every AD about “ME”!
 Share the stage with a celebrity and let it go viral
 Unique Technology Platform
 First ...
Viral Tunes
 Make ringtones go viral through Mekanism’s
iPhone app
 The app allows you to change a friend’s ringtone
at ...
Customer Relationship
Management
Key Concepts
 Customer Loyalty and Retention
Customer delight leads to emotional relationships and
loyalty
Customer Lif...
CRM Phases
Survey of Mekanism Clients
Why do you or your company use digital media as part of marketing campaign ? Select all that ap...
 Highlight the importance of Viral advertising for clients in
terms of time-to-market and market penetration.
 Promoting...
Mekanism
Mekanism
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Mekanism

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Mekanism

  1. 1. What is Viral Marketing? Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others , creating the potential for exponential growth in the message’s exposure and influence.
  2. 2. Mekanism– Engineering Viral Marketing
  3. 3. Mekanism, is a digital/social media production company , for development of viral marketing campaigns. Mekanism focuses its work on story-telling through emerging media platforms We have enjoyed a 68% annual growth in billings. We engineer virality , and we create an online campaign and make it go viral Who Are We ?
  4. 4. Traditional VS Viral Marketing • Traditional advertising: Cover massive individuals. Trust level: medium/low. • Viral marketing: Target a limited number of users. Utilizes the relationships in social networks, e.g., friends, families, etc. Trust level: relatively high.
  5. 5. Mekanism’s Problem  Mekanism has grown tremendously from 2007 to 2010.  Yet, in 2010 despite an increase in profits, the firm only grew 10% in billing with fewer new clients signing on.  Clients requesting other complimentary services to viral marketing.  Converting mekanism from a specialized production shop to a full service ad agency.
  6. 6. Stay with digital/VIRAL or get into traditional Marketing ?
  7. 7.  Upside of sticking to digital Core competency It’s a huge market. Why agencies like Agency    Net have succeeded From One Stop Shop to strategic partner 45% clients switch agencies due to digital  agencies Pull interactions than push campaigns Millenials  love organic content Develop analytics and differentiation
  8. 8.  Downside of getting into traditional Struggling to compete with the resources and  reach of a traditional network agency Cultivating the 30 second tv spot mindset Diluting our brand value
  9. 9. We’re up against Saatchi & Saatchi Ogilvy Huge Johannes Leonardo Wieden & Kennedy The Martin Agency Crispin Porter + Bogus
  10. 10. Strengths   Established player in the market Got the right mix of talent Innovation at its best Ability to deliver viral videos consistently Pre-empting clients needs Serving blue chip clients  Great Understanding of brand / customer  needs
  11. 11. Weaknesses   Still servicing a large number of ad agencies  Unable to command a higher share of clients’  total expenses  Digital spends account for 13%
  12. 12. Opportunities    Rival agencies may eat into our market  share as they become more adept at digital  marketing. Threats
  13. 13. HIRING NEW TALENT
  14. 14. Mekanism's Income Statement(thousands of dollars) 2007 2008 2009 2010 Gross Revenue 9,330 10,852 18,238 20,111 Production Costs 5,221 5,195 9,251 9,865 Gross Profit 4,109 5,657 8,987 10,246 Operating Costs 3,555 4,473 6,950 7,882 EBITDA $ 554 1,184 2,037 2,364 EBITDA % of Net Revenue 13.50% 20.90% 22.70% 23.10% Financial aspect – Why the worry? Despite maintaining a healthy EBITDA margin of 23.1% in 2010, Mekanism’s revenues grew by only 10% in 2010, from a much better-than-expected 68% growth in Revenues in 2009.
  15. 15. Content Likely To Be Shared
  16. 16. My ADSPACE
  17. 17.  Making every AD about “ME”!  Share the stage with a celebrity and let it go viral  Unique Technology Platform  First time in the Advertising World.  Can be leveraged across TV content, Music Videos and Film clips. My Ad HOW IS IT BENEFICIAL TO CLIENTS  High user engagement  No overt Advertising  Ultimate customization.
  18. 18. Viral Tunes  Make ringtones go viral through Mekanism’s iPhone app  The app allows you to change a friend’s ringtone at will  Iphone users can check a ‘surprise me’ option in order to receive automatic ringtone updates from friends. HOW IS IT BENEFICIAL TO THE CLIENTS Mobile to Mobile sharing (861,660,000 Handsets in USA)
  19. 19. Customer Relationship Management
  20. 20. Key Concepts  Customer Loyalty and Retention Customer delight leads to emotional relationships and loyalty Customer Lifetime Value shows true worth of a customer  Share of Customer Achieved through offering service quality and variety.  Customer Equity The combined customer lifetime values of all current and potential customers. Measures a firm’s performance, but in a manner that looks to the future.
  21. 21. CRM Phases
  22. 22. Survey of Mekanism Clients Why do you or your company use digital media as part of marketing campaign ? Select all that apply
  23. 23.  Highlight the importance of Viral advertising for clients in terms of time-to-market and market penetration.  Promoting the USP – Story telling creative approach coupled with multifaceted social media distribution system. from  Interaction and regular feedback from the clients and market surveys to help build client-relationship and improve service quality.  Utilizing the existing Most Valuable Customers (MVC) to bring in more clients. Strategies for CRM

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