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The Converged Media Imperative - DMA/IBM Webinar


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Webinar delivered on 9-12-12 for the DMA & IBM

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The Converged Media Imperative - DMA/IBM Webinar

  1. 1. 1 The Converged Media Imperative: Combining Paid, Owned & Earned MediaSeptember 12, 2012IBM / DMA WebinarRebecca Lieb @lieblinkDigital Advertising & Media Analyst
  2. 2. 2 As consumption habits shift, brands require media ubiquity The average consumer sees c. 3,000 brand impressions a day. Media is and will continue to converge as brands are challenged to intercept this elusive customer, regardless of medium, channel or time of day© 2012 Altimeter Group
  3. 3. 3 5 FACTORS 3 FACTORS 5 FACTORS 5X3X5=75 awareness consideration intent purchase support loyalty advocacy 75Xfactors 3 5 7=525© 2012 Altimeter Group
  4. 4. 4 Tesco customers scan and purchase goods in virtual subway supermarkets Customers scan QR codes to purchase products for same day delivery. More than 10K consumers visited the Home Plus mall using their smartphones. New members rose by 76% after the first implementation and online sales increased by 130%. This was deployed in Seoul.© 2012 Altimeter Group
  5. 5. 5 Tesco grew to #1 grocery retailer online and a close 2nd offline by adapting to dynamic customers‟ needs Solution: Bring the store to the customer via interactive displays during commutes.© 2012 Altimeter Group
  6. 6. 6 Digital Paid, Owned, and Earned media Display, banner ads corporate website Sponsored posts, ads microsites PPC ads corporate blog Pay per post blogging© 2012 Altimeter Group
  7. 7. 7 Visualizing Paid, Owned, and Earned Paid Owned Earned  Requires media buy  Owned or controlled,  User-generated or does not require media media content buy surrounding brand© 2012 Altimeter Group
  8. 8. 8 Investment in Earned & Owned increases in 2012 Source: Society of Digital Agencies (SoDA) via eMarketer, 2012© 2012 Altimeter Group
  9. 9. 9 A closer look into each media type Source: Society of Digital Agencies (SoDA) via eMarketer, 2012© 2012 Altimeter Group
  10. 10. 10 Now, let‟s define Converged Media  Two or more channels of paid, earned, and owned media.  Consistent storyline, look, and feel.  All channels work in concert, enabling brands to reach customers throughout the customer journey© 2012 Altimeter Group
  11. 11. 11 Creating branded ‘surround sound’: how media types influence and enable each other OWNED PAID Instructs where to amplify EARNED Drives volume© 2012 Altimeter Group
  12. 12. Question: Which media type are Facebook and Twitter?© 2012 Altimeter Group
  13. 13. 13 Answer: all three!  Paid: • Sponsored tweets, posts, engagement ads  Owned: • Branded Facebook or Twitter page • Brand-curated content • Branded Facebook apps  Earned: • Fan/user-generated content posted related to brand • May be on brand‟s page or elsewhere© 2012 Altimeter Group
  14. 14. 14 What does this look like on Twitter? Owned Paid Earned© 2012 Altimeter Group
  15. 15. 15 What does this look like on Facebook? Paid Owned Earned© 2012 Altimeter Group
  16. 16. 16 Converged Media Example: Earned + Paid Earned Paid Bazaarvoice deploys paid advertisements with user ratings and reviews. Microsoft advertises with transparency; shoppers click on the ads to learn more from their peers.© 2012 Altimeter Group
  17. 17. 17 How Successful Brands Deploy Converged Media© 2012 Altimeter Group
  18. 18. 18 Glidden Paint builds confidence by building experiences that resonate pre-purchase Overwhelmed by color choices and afraid of making a wrong decision, sometimes shoppers give up. Glidden facilitates decision-making by providing trusted voices, validating ideas, leading towards the brand in the process.© 2012 Altimeter Group
  19. 19. 19 Glidden launches branded microsite, MyColortopia as the hub for advice, blog, tools Glidden invests heavily in “approachable” bloggers to be the voice of the experience– the consideration/ “inspiration” phase– not necessarily the brand. Content and tools aid in this process: • „Ask the Colortopia Team‟ Q&A forum • Blog • Influencers as publishing partners and promoters • Color selection/ room visualization tool • Personalized “My Project” folder© 2012 Altimeter Group
  20. 20. 20 Glidden employs a wide palette of channels, converging media for a streamlined brand experience© 2012 Altimeter Group
  21. 21. 21 Results apparent after just 6 months  Based on campaign insights and focus groups, Glidden introduces Before & After feature mid- campaign– helping inspire shoppers based on others‟ success stories  Engagement skyrockets: • 500m digital exposures; 800k offline exposures • 2k comments across properties • 100k+ tool interactions • 100m+ minutes spent interacting with content • Shoppers 70% more likely to consider Glidden for future projects© 2012 Altimeter Group
  22. 22. 22 P&G tells stories of Olympian… Moms? P&G launched a globally resonant campaign to support 150 athletes and their mothers across 34 brands. In just a few months, multiple video ads received +5M views. Thank You, Mom Facebook page has +750,000 likes in U.S. alone.© 2012 Altimeter Group
  23. 23. 23 P&G ties in product imagery with brand message and campaign story© 2012 Altimeter Group
  24. 24. 24 Brisk Tea combines old-school branding success with new-age tactics To promote new packaging, Brisk piggybacked on the release of Star Wars: Episode I - The Phantom Menace. They partnered to create a TV spot reviving Brisk‟s mid-90s clay-animated ads, applying it to the likes of Yoda and Darth Maul. Brisk integrates online and offline throughout the campaign.© 2012 Altimeter Group
  25. 25. 25 Brisk ties TV commercial in with co-branded “Brisksaber” app Brisksaber allows fans to unlock new characters and objects based on codes found on Brisk Iced Tea bottles. Scores can be posted on Facebook and Twitter. High scorers make the leaderboard on© 2012 Altimeter Group
  26. 26. 26 Star Wars push only part of Brisk‟s integrated “That‟s Brisk, Baby” content strategy PepsiCo’s largest multimedia advertising campaign yields results: • Facebook following jumped from 10k to 950,000 in ~18 months, 82% of whom are in their 20s or 30s • In-store sales up 12%* • Total sales more than double in 2 years • Over 500,000 app downloads© 2012 Altimeter Group
  27. 27. 27 ClearChannel integrates online and offline channels to „make the audience the media‟ Converging media through digital billboards, gesture recognition, and social media interaction, ClearChannel combines offline media with online to drive attention, engagement, (advertiser interest), and a summer-long sweepstakes.© 2012 Altimeter Group
  28. 28. 28 National Car Rental listens to each campaign to instruct the next National invests in more campaigns tapping Learning: Fans share qualitative into both storytelling and fans‟ competitive information about their travel habits in drive; sees 30% growth in Facebook exchange for travel perks. Rapid entries in fanbase, thousands of new FB and Twitter short timeframe reveal unforeseen fan followers. Both below-target cost-per fan/ competitiveness. per engagement metrics, millions of impressions via earned PR placement.© 2012 Altimeter Group
  29. 29. 29 The New York Giants bring social events to owned venues, generating earned buzz NY Giants were the first pro sports team to integrate live tweets into offline events (stadium, TV) and online (poll, Q&A, e-commerce tie-in). Tying in social content and voting with real-time events generated an increase in e-commerce sales, a 127% increase in Twitter followers, and huge brand amplification and awareness for related campaigns.© 2012 Altimeter Group
  30. 30. 30 Canon leverages owned microsite to drive tremendous earned response Canon leveraged owned platform (Imagin8tion) for a contest in which winners‟ photos (earned) inspire a Ron Howard short film. • 1.7 million YouTube channel views • 138,000 photo submissions • 21,000 votes cast • 23,000 posts • 192 press mentions, 415 blog mentions • 40% increase in positive sentiment© 2012 Altimeter Group
  31. 31. 31 ScottTrade hosts owned community platform to drive earned ScottTrade utilizes multiple approaches to drive earned on their own platform: • Influencer advice • Featured blogs • Polling, community voting • Featured members • Community interaction features • Customizable experience© 2012 Altimeter Group
  32. 32. 32 Marketo shows B2B can drive earned And still be effective on owned (Facebook) While Marketo advertises with Facebook ads, they keep it fun, interactive, and in line with the brand message (rock-and-roll theme). Customers interact with brand directly on Facebook where they can expect an immediate response.© 2012 Altimeter Group
  33. 33. 33 Peets uses paid ads on mobile promoting earned media to snag new customers The converged experience for customers: Airport retailers purchase location-aware advertising on GateGuru to drive users into stores.© 2012 Altimeter Group
  34. 34. 34 SAP integrates paid and owned media types to strategically push SMB offering Paid© 2012 Altimeter Group
  35. 35. 35 SAP monitors and compares all content performance across channels and optimizes Earned Facebook Top 10 Assets StumbleUpon Campaign Performance (clicks) 6.000% 0.000% 11% 5.000% -0.500% 3% 27% 4.000% 4% -1.000% 3.000% 4% -1.500% 2.000% 5% 1.000% -2.000% 6% 14% 0.000% -2.500% 7% 9% 10% Share Ratio Net Adopter Smarter SME Software (Precise) (Owned) (Branded) Hot Salsa, Hot Sales (Precise) (Owned) (Unbranded) Improve Your Cash Flow (Precise) (Earned) (Branded) Small Business Success (Precise) (Owned) (Unbranded) Cross-channel monitoring reveals which ads Drive Business Growth! (Precise) (Owned) (Unbranded) perform well with whom and where. Leveraging Run Your SMB Better (Precise) (Owned) (Branded) Whats Right For You? (Precise) (SAP) (Owned) this data across platforms, SAP has seen +55 Drive Business Growth! (Precise) (Case) (Owned) (Branded) million impressions since late last year when Need to Boost Cash Flow? (Precise) (Earned) (Branded) SMB iPhone Apps (Precise) (Owned) (Unbranded) the campaign launched. Other© 2012 Altimeter Group
  36. 36. 36 The Role of Data & The Digital Exhaust Trail© 2012 Altimeter Group
  37. 37. 37© 2012 Altimeter Group
  38. 38. 38 Nearly half of digital marketers use no form of attribution Lacking (or basic) tracking methods: a testament to challenges marketers face in leveraging big data.© 2012 Altimeter Group
  39. 39. 39 Attribution analysis remains a challenge  Incomplete or Missing Data • Disparate devices, channels, platforms leave „blind spots‟ when analyzing attribution  Complex Technology & Talent Requirements • Massive data sets require big data platforms as well as a specific level of talent/ skill to unlock full potential  Defining What Success Means • What defines success varies drastically by campaign; every attribution model must be unique to that campaign© 2012 Altimeter Group
  40. 40. 40 Most marketers conducting attribution analysis employ first/last event approach© 2012 Altimeter Group
  41. 41. 41 Using analytics to accurately reflect the dynamic customer journey Traditional Attribution Dynamic Attribution Model Model© 2012 Altimeter Group
  42. 42. 42 Marketers feel a growing necessity to manage large amounts of data from multiple media streams Objectives Challenges Identify high potential audiences and  Numerous „permutations‟ of the accurately target them customer journey Enable the right message at the right time via the right content targeting  Myriad of devices Maximize ad inventory by identifying high-  Diverse social events value audiences across publisher properties  Geo-targeting Optimize ad media purchase and  Behavioral targeting understand the value of channels higher up in the funnel  Structured vs. unstructured data© 2012 Altimeter Group
  43. 43. 43 Create marketing effectiveness by capitalizing on big data Audience Optimization Opportunities  Implement rules-driven integration of Content disparate data Optimization  Improve operating infrastructures  Create a network of data-centric Yield technology and partners Optimization  Define marketing data governance Channel Optimization© 2012 Altimeter Group
  44. 44. 44 Big Data = Big Opportunity  Goal: Deliver the right message to the right person at the right time for the right price in the right channel© 2012 Altimeter Group
  45. 45. Converged Media Success Criteria© 2012 Altimeter Group
  46. 46. 46 Brands that do not integrate paid, owned and earned media types are at a disadvantage  Fragmented messaging, inconsistent branding  Redundant efforts, no communication/ collaboration  Departments competing for budget  Low customer engagement/advocacy  Convergence begins to occur in traditional media© 2012 Altimeter Group
  47. 47. 47 Altimeter identifies 11 criteria to successful converged media deployment© 2012 Altimeter Group
  48. 48. 48 Strategy: Understand Converged Media Brand marketers must first possess an understanding of the changing forces of converged media: • Emerging practices • Content types • Technologies • Channels • News, media, current events • Behavioral trends • Other trends specific to audience© 2012 Altimeter Group
  49. 49. 49 The value of each media type depends on the business Q: Which category has the biggest impact on your business in terms of generating sales, new customers, and revenue from marketing-related efforts?  Owned media such as your Biggest impact on business by website or blog category  Paid media such as search engines, banner ads or other advertising Paid Owned  Earned media such as reviews, online forums, other sources for 32% 36% peer advice Earned 32% Source: Zuberance Paid, Owned, Earned Media Study, April 2011© 2012 Altimeter Group
  50. 50. 50 Strategy: Plan a Stable Foundation Two legs (or media channels) may hold up the converged media strategy, but stability and balance is achieved when design incorporates all three. • Deploy all three media type in harmony, integrating each to instruct the next • The insights that come with analyzing earned instruct where to amplify using paid and where to innovate in owned • Owned media provides the platform upon which earned and paid can exist and is foundational to the brand presence and messaging, which inspires earned • Paid media helps drive volume to owned and earned channels, and ultimately what amplifies the brand message.© 2012 Altimeter Group
  51. 51. 51 Organization: Ability to Achieve Earned at Scale Earned is the most difficult medium to achieve, particularly at a significant scale. Essential both to build and nurture earned media is: • Content strategy, consistent brand messaging • Listening & measurement tools • Publishing tools • Inter-agency/ vendor communication • A fundamentally agile approach • An ongoing effort© 2012 Altimeter Group
  52. 52. 52 Organization: Align Teams & Departments Brands MUST overcome the cultural silos that exist internal to the organization, aligning in a number of historically autonomous areas: • Ownership/ governance • Communication • Collaboration/ creative design • Campaign goals • Budget© 2012 Altimeter Group
  53. 53. 53 Intel among the first to reorganize… merging social media team with global media team “Why does this make sense? I found we were having similar conversations across teams. For the past several years, I have been encouraging every opportunity for them to work as one, sharing information and insights — driving cross media opportunities with our partners and thinking about a new world where the idea of “paid” or transactional media dissolves.”© 2012 Altimeter Group
  54. 54. 54 Organization: Align Agencies & Vendors Each will have individual areas of specialization and expertise, yet full- picture visibility is essential for all partner companies. Brands must play moderator and facilitate: • Communication • Collaboration/ creative design • Campaign goals, KPIs • Performance incentives© 2012 Altimeter Group
  55. 55. 55 Production: Aligned Content / Creative Across Channels Design, voice, message, branding, and other creative elements must be consistent: • Agreement/ alignment across stakeholders from day one • Across all channels and touchpoints • Singular brand message, no matter the media • Natural extension of organizational and partner alignment© 2012 Altimeter Group
  56. 56. 56 Production: Real-time Capabilities To be effective in converged media is to be agile. Brands must enable: • Proper labor resources • Proper tools • Stakeholder buy-in • Communication channels between stakeholders • Content marketing strategy • Empower to act, particularly in Earned media© 2012 Altimeter Group
  57. 57. Real-time marketing turbo-charges other efforts Source: GolinHarris, The Promises and Pitfalls of Real-Time Marketing.!/insights/real-time-marketing-research/© 2012 Altimeter Group
  58. 58. 58 Production: Channel Flexible The empowered and dynamic customer has choices in how they consume; brands must extend presence across: • Multiple channels, platforms • Multiple touchpoints • Not JUST mainstream channels, instead following their customers • Demographic-specific hang-outs© 2012 Altimeter Group
  59. 59. 59 Production: Influencer Relations In the digital age, brands cannot ignore influencers, as they can amplify the message (positive or negative) across all media types: • Touting or shaming product/ service in unprompted Earned setting • Acting as the voice of a Paid campaign • Offering guidance or advice on Owned platforms • Influencers are key to helping build Earned at scale© 2012 Altimeter Group
  60. 60. 60 Influencers vs. Advocates Influencer Advocate Definition An influencer is someone who An advocate is someone who actively shares their opinions, proactively defends, promotes and passions and expertise through participates in the public their (large) personal and conversation for a particular brand, professional networks. product, service or cause. Function Brand Amplifiers and Brand Defenders Accelerators Example Celebrities, analysts, bloggers Loyal customers© 2012 Altimeter Group
  61. 61. 61 Analysis: Social Listening / Analysis of Crowd Social listening, monitoring and measurement are key for substantiating agility. Brands must: • Have systems and process in place to listen, measure, respond • Let conversation instruct creative design, strategy • Use insights to be proactive • Allow insights to facilitate personalization/ resonance© 2012 Altimeter Group
  62. 62. 62 Analysis: System for Identifying & Measuring KPIs Metrics are the foundation from which investment potential is established, understood, optimized, and realized: • The system for identifying KPIs must instruct the ongoing measurement itself • Metrics should be established at the outset… but can evolve • Metrics may shift based on segment, platform, campaign assets, goals, even cultural events, etc.© 2012 Altimeter Group
  63. 63. 63 Putting the Pieces Together© 2012 Altimeter Group
  64. 64. 64 The Dynamic Customer Journey requires an integrated approach But it doesn’t end with the purchase…© 2012 Altimeter Group
  65. 65. 65 Execution Workflow: Experiment tactically, amplify intelligently, measuring and iterating throughout© 2012 Altimeter Group
  66. 66. 66 We asked brands, agencies and vendors to rate the maturity of the Converged Media space….© 2012 Altimeter Group
  67. 67. 67 While varied, the perception is clear Respondent Average Group (1-5) ALL 1.95 Brands 2.18 Vendors 1.72 Agencies 2.08 Respondents rated the maturity of the Paid, Earned and Owned space on a scale of 1-5, where 1 is Very Immature and 5 is Very Mature.© 2012 Altimeter Group
  68. 68. 68 But while brand report the highest rating, they lag in effectively deploying the converged media experience PR/ Communi cations Social Creative Brand Customer Digital Service • Mindset, access to resources vary by department • Departmental silos hinder converged deployment • Disparate toolsets further divide teams & initiatives© 2012 Altimeter Group
  69. 69. 69 Brands must incentivize agencies (digital, social, PR, creative, etc.) and vendors work together Vendor Agency Agency Vendor Brand Brands cannot deploy converged media alone. They must coordinate agency and vendor partners. Our research found that stakeholders are often resistant to cross-collaboration.© 2012 Altimeter Group
  70. 70. 70 For software vendors, acquisition and integration hinders converged deployment As media types flow together to converge, building software from the ground up is too costly and time consuming. Thus , vendors are forced to move outside of familiar territory to expand into new functions– or will be gobbled up by large software companies creating digital marketing suites.© 2012 Altimeter Group
  71. 71. 71 The Dynamic Customer Journey requires an integrated approach Traditional Attribution Model Dynamic Attribution Model But it doesn’t end with the purchase…© 2012 Altimeter Group
  72. 72. 72 From funnel to cycle… Paid, owned and earned media are central to the influence loop, both for brands and their customers© 2012 Altimeter Group
  73. 73. 73 Summary  Converged media is a growing reality  Paid, owned, earned integration makes marketing more effective  Processes and best practices are emerging  Redefining roles, hierarchies and organization is essential  Convergence is primarily digital now, but it‟s bleeding into offline channels© 2012 Altimeter Group
  74. 74. THANK YOU Rebecca Lieb Twitter: lieblink Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.© 2012 Altimeter Group