Earned media, such as word-of-mouth recommendations, are the most trusted and influential forms of advertising. Experience-driven social marketing, which leverages real-world experiences to generate online conversations, is the most powerful type of earned media. It can produce deeper engagement, stronger advocacy, and bigger lifts in branding and sales compared to traditional media. Research shows experience-driven campaigns generate longer-lasting increases in product knowledge, favorability, purchase intent, and sales. They provide a high return on investment, with some campaigns yielding millions in additional revenue.

1. All Earned Is Not Created Equal
Experience-Driven Social Marketing:
Deeper Engagement for Stronger Advocacy & Bigger Lifts
1

2. Earned is the most powerful media
&
‘Experience-driven’ is the most
powerful earned
2

3. Experience-Driven Social
The Most Powerful Medium in the Mix
Deeper Stronger Bigger
Engagement Advocacy Lifts
of In-Person Online In Branding
Experience & Off & Sales
3

4. A Primer:
Earned Is the
Most Powerful Media
4

5. Earned Media Is the Most Trusted
Have some degree of trust* in the following forms of advertising
(April 2012)
Recommendations from people known 92%
Consumer opinions posted online 70%
Brand websites 58%
Editorial content (e.g., newspaper article) 58%
Emails signed up for 50%
Brand sponsorships 47%
TV 47%
Magazines 47%
Billboards/outdoor advertising 47%
Newspaper 46%
Radio 42%
Ads before movies 41%
Search engine results ads 40%
Online video ads 36%
Online banner ads 33%
Display ads on mobile devices 33%
Text ads on mobile phones 29%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: The Nielsen Company.
5

6. Earned Is the Most Powerful Media
Recommendations from personal acquaintances are the most trusted
form of advertising. (Nielsen)
75% of consumers don’t believe companies tell the
truth in advertising. (Yankelovich)
Recommendations are the #1 driver of consumer purchase decisions at all
stages of the cycle. (Keller Fay)
WOM customers have nearly twice the long-
term value. (Villanueva et al)
6

7. Experience-Driven Is
the Most Powerful Earned
7

8. Experience-Driven Social
The Most Powerful Medium in the Mix
Deeper
Engagement
of In-Person
Experience
8

9. In-Person Experience Generates
Deeper Engagement
9

10. More Time with Consumer per
Marketing Dollar Spent
Hours of consumer engagement with featured brand during a 5,000-party
campaign, by type of activity
Party Site Social Media
4,641 22,481
Conversation
152,032
Party Total Hours:
265,605 469,934
eCPM-30 seconds of
engagement:
$4.15
Planning
25,175
10

11. Experience-Driven Social
The Most Powerful Medium in the Mix
Stronger
Advocacy
Online
& Off
11

12. More Persuasive Advocacy:
More Credible & Passionate
12

13. More Far-Reaching Advocacy:
Experience-Driven Social Can Have Mass Reach
Unique people reached by, and typical CPMs of, select major media
16.0
14.0
14.0
Unique People (in millions)
12.0
10.0
8.0
8.0 7.0 6.5
6.0 5.5
4.0
2.0
0.0
Top 10 5,000-party Premium Top 10 Top 10
broadcast shows campaign space on top cable shows magazines
consumer sites
(CPM:$20) (CPM:$7) (CPM:$5) (CPM:$15) (CPM:$10)
Sources: The Nielsen Company, Google, Audit Bureau of Circulation
13

14. Experience-Driven Social
The Most Powerful Medium in the Mix
Bigger
Lifts
In Branding
& Sales
14

15. Bigger Brand Lifts
15

16. Experience-Driven Social Generates
Bigger Brand Lifts
Average Favorability, Advocacy-Intent, and Purchase-Intent of the
featured product, pre- and post-party, among party guests
80% 76% 76%
72%
70%
60%
50%
40%
30%
30% 26% 26%
155%
20% Lift 196% 183%
Lift Lift
10%
0%
Favorability Advocacy-Intent Purchase-Intent
Pre-Campaign Post-Campaign
16

17. Lifts that Last Longer
Product knowledge, favorability and advocacy-intent of the featured product,
among hosts, guests, conversation partners and control, 6 months after a
House Party campaign
100% 93%
89%
90% 84%
80% 75%
70%
70%
60%
60% 56%
50%
40% 34%
30%
20%
10%
10%
0%
Product Knowledge Favorability Advocacy-Intent
Control Partygoers Conversation Partners
Source: ChatThreads
17

18. Lifts in Marketing Receptivity
“When I saw a
commercial for the
cooking creme, I
literally yelled out
loud and said, that's
the Philadelphia
cooking creme!"
Post-Campaign Average: 69%
18

19. Lifts in Marketing Receptivity
Unaided recall, aided recall, and favorability of advertising for the featured
product, among partygoers, conversation partners and control, 6 months
after a House Party campaign
100%
90% 82%
80%
69%
70% 65% 64%
61% 59%
60%
51% 50%
50%
40% 32%
30%
20%
10%
0%
Unaided Recall Aided Recall Ad Favorability
Control Partygoers Conversation Partners
Source: ChatThreads
19

20. Bigger Sales Lifts
20

21. Test/Control Markets Measure
Sales Lift
Nielsen Matched panel design for a House Party campaign
Test Stores
Control Stores
Source: The Nielsen Company.
21

22. Test Stores Show Big Sales Lift
Sales of featured product, in test and control stores, 6 months after
a 15,000 party campaign
$600,000
$578,014
$580,000
$560,000
$540,000
$519,330
$520,000
$500,000
$480,000
$460,000
Control Stores Test Stores
Source: The Nielsen Company.
22

23. Millions in Extra Revenue for
Extremely High ROI
Millions in extra revenue for extremely high ROI
Percent of sales driven by House Parties 11%
Incremental gross revenue $6,803,706
Incremental gross profit $3,401,853
ROI in gross revenue (revenue/cost) $3.94
ROI in gross profit (profit/cost) $1.97
For every $1 the brand $3.94 in revenue
spent, it got back: $1.97 in profit
23

24. Bonus Assets Raise ROI Even Higher
Gross profit of a 15,000-party campaign, by deliverable
Consumer
Opt-ins Insights
$70,000 $20,000
UGC Facebook Likes
$100,000 $40,000
$3,401,853 Gross Profit from Sales
$230,000 Value of Bonus Assets
Gross Profit
from Sales Gross Profit
$3,631,853 (including bonus assets)
$3,401,853
ROI in Gross Profit
$2.11 (including bonus assets)
24

25. TalkTrack® Report on
Word of Mouth by Triggers
March 2013
© 2013 Keller Fay Group
Not to be quoted or distributed without written permission

26. Key Findings
• After “need,” “good experience” sparks the most
earned
• Experience-driven earned is the most credible
• Experience-driven earned sparks the most action
– Pass along
– Seek more info
– Purchase
• Over half of experience-driven earned
contains strong buy/try recommendations
www.kellerfay.com

27. Key Takeaways
Earned is the most powerful media, and
Experience-driven is the most powerful earned
Deeper Stronger Bigger
Engagement Advocacy Lifts
of In-Person Online In Branding
Experience & Off & Sales
27

28. Thank You
Peter.storck@houseparty.com
28