What is Viral
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
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 ?
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.
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
Converting mekanism from a specialized production shop
to a full service ad agency.
Stay with digital/VIRAL or get
into traditional Marketing ?
Upside of sticking to digital
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
Pull interactions than push campaigns
Millenials love organic content
Develop analytics and differentiation
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
We’re up against
Saatchi & Saatchi
Wieden & Kennedy
The Martin Agency
Crispin Porter + Bogus
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
Still servicing a large number of ad agencies
Unable to command a higher share of clients’
Digital spends account for 13%
Rival agencies may eat into our market
share as they become more adept at digital
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
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.
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.
HOW IS IT BENEFICIAL TO
High user engagement
No overt Advertising
Make ringtones go viral through Mekanism’s
The app allows you to change a friend’s ringtone
Iphone users can check a ‘surprise me’ option in
order to receive automatic ringtone updates from
HOW IS IT BENEFICIAL TO THE CLIENTS
Mobile to Mobile sharing
(861,660,000 Handsets in USA)
Customer Loyalty and Retention
Customer delight leads to emotional relationships and
Customer Lifetime Value shows true worth of a customer
Share of Customer
Achieved through offering service quality and variety.
The combined customer lifetime values of all current and
Measures a firm’s performance, but in a manner that looks
to the future.
Survey of Mekanism Clients
Why do you or your company use digital media as part of marketing campaign ? Select all that apply
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.
Interaction and regular feedback from the clients and
market surveys to help build client-relationship and improve
Utilizing the existing Most Valuable Customers (MVC) to
bring in more clients.
Strategies for CRM