FEED:The 2009 Razorfish Digital Brand
Experience Report<br />Garrick Schmitt, Group Vice President, Experience Planning<br />Email: garrick.schmitt@razorfish.com<br />Twitter: @gschmitt<br />

Experience Matters.<br />2<br />

HELLO<br />3<br />

How Do Consumers Engage With
Brands In An Increasingly Digital World?<br />

THE DETAILS<br />5<br />

Meet The “Connected Consumer”<br />In
August 2009 Razorfish surveyed 1,000 U.S. “connected consumers”*:<br />Broadband access<br />Spent $150 online in the past six months (travel, Netflix, tickets, Amazon, etc.)<br />Visited a community site (MySpace, YouTube, Facebook, Yelp, etc.)<br />Consumed or created some form of digital media such as photos, videos, music or news<br />WHAT IS YOUR AGE?<br />WHICH OF THE FOLLOWING BEST DESCRIBES YOUR COMBINED HOUSEHOLD INCOME?<br />6<br />* This equates roughly to the U.S. broadband population which is about 200m based on the Pew Internet and American Life Project.<br />

READ THIS<br />

Yes, You Can Build A
Brand Online. You Have No Choice<br />Marketers have never thought of digital as a wonderful place to build a brand, but they should:<br />65% of consumers have had a digital experience change their opinion about a brand<br />97% of them report that experience influencing whether or not they purchased a product or service from that brand<br />HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS?<br />HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?<br />8<br />

Actions Speak Louder Than Advertising<br
/>Branded experience are the new advertising. And consumers are increasingly hungry for them, sometimes ravenously so:<br />97% have searched for a brand online<br />77% have watched a commercial on YouTube<br />69% have read a corporate blog<br />65% have played a branded, browser-based game.<br />73% have posted a product or brand review on a site like Amazon, Facebook or Twitter<br />PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:<br />9<br />

Brand Culture Or Fan Culture?<br
/>Conventional wisdom holds that consumers don’t want brands encroaching on their social lives – but that’s just not true:<br />76% of consumers welcomed brand advertising on social networks (FEED, 2008)<br />40% of consumers “friended” a brand on Facebook and/or MySpace<br />26% of consumers have “followed” a brand on Twitter<br />HAVE YOU EVER “FRIENDED” A BRAND ON FACEBOOK OR MYSPACE?<br />HAVE YOU EVER FOLLOWED A BRAND ON TWITTER?<br />10<br />

The Outlet Malls Of Tomorrow?
Facebook, MySpace & Twitter<br />Marketers shouldn’t assume that consumers are as passionate about their brands as they are: Consumers don’t want a conversation with brands – they want deals.<br />11<br /><ul><li>44% of consumers who follow a brand on Twitter do so for deals

37% of consumers who “friended”
a brand on Facebook and/or MySpace do so for deals</li></ul>WHAT IS THE PRIMARY REASON YOU FOLLOW A BRAND ON TWITTER?<br />

Bottom Line: Digital Brand Experiences
Create Customers<br />Digital is not simply an “awareness” or CRM play, it’s a customer-creation play. The overwhelming majority of consumers who engage with a brand online move from passive “receivers” to advocates almost instantly :<br />12<br /><ul><li>97% report increased brand awareness

98% show increased consideration

97% will more likely purchase
a product

96% may recommend the brand
to their friends</li></ul>WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING:<br />

DIGITAL PRIMACY<br />13<br />

Consumers Turning First, Foremost To
Digital<br />According to Forrester consumers now spend nearly as much time online as they do watching TV*. We found that their technical fluency is far greater than most believe:<br />57% of consumers actively customize their homepages<br />84% share links or bookmarks<br />55% subscribe to RSS feeds<br />33% get their news from Facebook<br />20% get their news from Twitter<br />PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:<br />14<br />*Forrester 2009 North American Technographics Survey<br />

Mobile Internet Service Use Skyrocketing<br
/>Mobile Internet services are being consumed broadly. Majority of consumers own a smartphone and use it actively.<br />15<br /><ul><li>57% access the Internet from their phone

50% have downloaded an app
for their phone

30% have interacted with an
ad banner on their phone</li></ul>WHAT TYPE OF SMARTPHONE DO YOU HAVE?<br />

Connected Consumers Are The New
Mainstream<br />16<br />THE TECHNOLOGY ADOPTION CURVE<br />

BRANDCULTURE<br />17<br />

Are Consumers Really In Control?<br
/>Conventional wisdom says that every generation of consumer grows smarter, shrewder and more immune to marketing. But that’s not true – consumers are actively choosing to engage with brands, everywhere.<br />40% have “friended” a brand on Facebook and/or MySpace<br />26% have “followed” a brand on Twitter<br />77% have watch an advert on YouTube<br />69% have read a corporate blog post<br />73% have posted a review of a brand on a site like Amazon or Yelp<br />52% have blogged about brand’s product or service<br />PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:<br />18<br />

Facebook And Twitter Creating Fan
Culture For Brands<br />After deals, the main reason consumers “friend” a brand? Because they *really* are a fan (or a customer, at least). Social media platforms are proving to be customer service platforms.<br />33% friend a brand on Facebook/ MySpace because they are a customer<br />24% follow a brand on Twitter because they are a current customer<br />23% follow a brand on Twitter for “interesting or engaging” content, which shows promise for a new type of relationship<br />WHEN YOU “FRIEND” A BRAND ON FACEBOOK OR MYSPACE, DOES IT GENERALLY DO THE FOLLOWING?<br />WHEN YOU FOLLOW A BRAND ON TWITTER, DOES IT GENERALLY DO THE FOLLOWING?<br />19<br />

Fans And The Future Of
The Marketing Funnel<br />Brand culture and fan culture are dramatically reshaping the traditional funnel as consumers leap from experience to advocacy (or the inverse) almost instantly.<br />70% have participated in a brand-sponsored contest<br />24% have produced content to participate in a contest<br />26% have attended a brand sponsored event, such as Nike’s Human Race<br />24% have downloaded a branded application for their mobile phone<br />HAVE YOU EVER PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES?<br />WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING?<br />20<br />

Experiences Not Only Build Brands,
They Make Or Break Them<br />Amazon, Google, Facebook, Apple and Nike are all experiential brands that know consumer preference isn’t formed in reaction to a message, but to a series of experiences over time. There’s good reason. Of consumers who interact:<br />97% report increased brand awareness<br />98% show increased consideration<br />97% will more likely purchase a product<br />96% may recommend the brand to their friends<br />21<br />

THE<br />BOTTOM <br />LINE<br />22<br
/>

Getting To The Bottom Of
Brand Engagement<br />Everyone is chasing after a metric to define brand engagement. Millward Brown says “digital consumers” have 15% stronger relationships with brands. The Altimeter Group attempts to correlate social media activity to financial performance, citing Dell, Starbucks and eBay as leaders.<br />We at Razorfish took a different tack: we simply wanted to know if there was any direct correlation between a consumer’s digital interaction with a brand and their likelihood to purchase a specific product or service.<br />23<br />

Digital Experience Create Customers<br />The
answer was a resounding “yes”. Experiences have a much greater influence over brand affinity and consumer purchasing than even we anticipated:<br />65%of consumers have had a digital experience change their opinion about a brand. <br />97%of those report that experience influencing whether or not they purchased a product or service from that brand.<br />64% of consumer report making a first purchase from a brand because of digital experience (e.g. website, banner, etc.) <br />HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS<br />24<br />HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?<br />HAVE YOU EVER MADE YOUR FIRST PURCHASE FROM A BRAND BECAUSE OF A DIGITAL EXPERIENCE (E.G., A WEB SITE, MICROSITE, MOBILE COUPON, EMAIL)?<br />

Five Brands That Are Excelling
In An Experience-Driven World…<br />

1. UNIQLO: Japanese Retailer Surprises
And Delights Audiences With Every Interaction<br />26<br />

27<br />2. Red Bull: Pioneered
Experiential Marketing With Subversive Events And Sponsorships<br />

28<br />3. Barbie: Reinvented An
American Icon For The Pop Sugar Set And Broke Sales Records<br />

29<br />“We’re not in the
business of keeping the media companies alive. We’re in the business of connecting with consumers.” – Trevor Edwards, Nike<br />4. Nike: Human Race. Chalkbot. Nike Is Setting A New Standard For Experiential Marketing<br />

30<br />4. Virgin America: Brand
Built By Breakthrough Experiences – And The Marketing Of Them<br />

31<br />5. Microsoft’s Bing: Accomplishing
The Impossible By Putting Experience First And In Every Ad<br />31<br />

Thank You<br />Garrick Schmitt, Group
Vice President, Experience Planning<br />Email: garrick.schmitt@razorfish.com<br />Twitter: @gschmitt<br />