The document discusses how social media has transformed marketing and consumer engagement. Some key points include: - Social media has become the #1 online activity, surpassing porn. - 1 in 8 US couples last year met through social media. - Facebook would be the 4th largest country by population. - The fastest growing demographic on Facebook is 55-65 year old females. - 80% of Twitter usage is on mobile devices, allowing people to engage anywhere. - Consumers are more likely to trust peer recommendations over advertisements.

1. Engagement is
Transforming Marketing
David Eldridge, Alterian
27th July 2010
Sydney, Australia

2. Marketing is Dead

3. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post

4. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka

5. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka
If Facebook were a country it would be the world’s 4th largest
between the United States and Indonesia
Source: Facebook

6. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka
If Facebook were a country it would be the world’s 4th largest
between the United States and Indonesia
Source: Facebook
The fastest growing segment on Facebook is 55-65 year-old females
Source: Inside Facebook Blog`

7. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka
If Facebook were a country it would be the world’s 4th largest
between the United States and Indonesia
Source: Facebook
The fastest growing segment on Facebook is 55-65 year-old females
Source: Inside Facebook Blog`
80% of Twitter usage is on mobile devices…people update anywhere,
anytime…imagine what that means for bad customer experiences?
Source: Attempting to Relocate

8. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka
If Facebook were a country it would be the world’s 4th largest
between the United States and Indonesia
Source: Facebook
The fastest growing segment on Facebook is 55-65 year-old females
Source: Inside Facebook Blog`
80% of Twitter usage is on mobile devices…people update anywhere,
anytime…imagine what that means for bad customer experiences?
Source: Attempting to Relocate
25% of search results for the World’s Top 20 largest brands are links to user-generated content
Source: Marketing Vox and Nielsen BuzzMetrics SES Magazine June 8 page 24-25

9. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka
If Facebook were a country it would be the world’s 4th largest
between the United States and Indonesia
Source: Facebook
The fastest growing segment on Facebook is 55-65 year-old females
Source: Inside Facebook Blog`
80% of Twitter usage is on mobile devices…people update anywhere,
anytime…imagine what that means for bad customer experiences?
Source: Attempting to Relocate
25% of search results for the World’s Top 20 largest brands are links to user-generated content
Source: Marketing Vox and Nielsen BuzzMetrics SES Magazine June 8 page 24-25
Only 18% of traditional TV campaigns generate a positive ROI
Source: “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007

10. Social Media has overtaken porn as the #1 activity on the Web
Source: Huffington Post
1 out of 8 couples married in the U.S. last year met via social media
Source: McKinsey Study also posted by David Dalka
If Facebook were a country it would be the world’s 4th largest
between the United States and Indonesia
Source: Facebook
The fastest growing segment on Facebook is 55-65 year-old females
Source: Inside Facebook Blog`
80% of Twitter usage is on mobile devices…people update anywhere,
anytime…imagine what that means for bad customer experiences?
Source: Attempting to Relocate
25% of search results for the World’s Top 20 largest brands are links to user-generated content
Source: Marketing Vox and Nielsen BuzzMetrics SES Magazine June 8 page 24-25
Only 18% of traditional TV campaigns generate a positive ROI
Source: “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007
24 of the 25 largest newspapers are experiencing record declines in circulation because
we no longer search for the news, the news finds us
Source: Yahoo Finance

11. 90% of consumers trust peer recommendations
Source: July 2009 Nielsen Global Online Consumer Survey

12. 90% of consumers trust peer recommendations
Source: July 2009 Nielsen Global Online Consumer Survey
Only 14% of consumers trust advertisments
Source: “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007

13. 90% of consumers trust peer recommendations
Source: July 2009 Nielsen Global Online Consumer Survey
Only 14% of consumers trust advertisments
Source: “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007
90% of people that can TiVo ads, do
Source: Starcom USA-TiVo

14. 90% of consumers trust peer recommendations
Source: July 2009 Nielsen Global Online Consumer Survey
Only 14% of consumers trust advertisments
Source: “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007
90% of people that can TiVo ads, do
Source: Starcom USA-TiVo
What happens “on the beach” stays on YouTube, Flickr,
Twitter, Facebook…
Source : Opinion, not a statistic

15. Old
Marketing is Dead
New marketing is
Customer Engagement

16. Old
Marketing is Dead
New marketing is
Moving from Mass Marketing
toMass Engagement, at
an Individual Level, with millions

17. The Consumer is in the
driving seat
Major social change in the way consumers listen to and engage with brands
Sobering need for brands to re-establish trust with consumers that have been empowered
through the use of technology to interact online
Permanent societal and technological changes, social media is one manifestation
Consumers want to interact, not just passively receive messages
from mass broadcast and one way communication to listening,
Move
understanding and engaging on an individual level – challenge and an opportunity

18. Brands at Risk
Building relationships with your customers in an era of social change
Primary research with 3,551 respondents across Australia,
Singapore, UK, US
Research carried out within past 6 weeks for Australia
(1,045 respondents) & Singapore (506 respondents)

19. Trust
There is an urgent need for brands to re-establish trust with empowered
consumers
Aus Sing UK US All
(n=1,045) (n=506) (n=1,000) (n=1,000) (n=3,551)
Companies are only 69% 55% 62% 54% 61%
interested in selling products
or services to me, not
necessarily the product or
service that is right for me
Trust advertising 5% 7% 4% 6% 5%
Trust what the company says 7% 6% 9% 8% 8%
about itself
Trust companies to act with 9% 22% 7% 10% 11%
their best interests in mind

20. Engagement
Consumers want to interact
Aus Sing UK US All
(n=1,045) (n=506) (n=1,000) (n=1,000) (n=3,551)
Positive interest in being 83% 91% 78% 86% 84%
involved by companies in the
development of products and
services
More likely to tell others about 85% 87% 79% 85% 84%
the company
More likely to tell others about 88% 91% 81% 88% 86%
the product/service
Impact on customer experience 84% 85% 69% 80% 79%
if companies took time to learn
more about your interests and
needs
Approve of companies 37% 78% 33% 48% 45%
communicating with you using
social media

21. Channels
Major social change in the way consumers listen to and engage with brands
Aus Sing UK US All
(n=1,045) (n=506) (n=1,000) (n=1,000) (n=3,551)
Regularly use social media 61% 76% 53% 64% 62%
Internet is first port of call when 67% 58% 87% 74% 73%
comparing products or services
prior to purchase

22. Barriers
Skills and Roadmap

23. Only 25% of respondents considered themselves very
prepared to take advantage of the new techniques that
digital and social media represent as part of their overall
marketing/customer engagement strategy....
Source : Alterian Annual Survey 2009

24. Only 25% of respondents considered themselves very
prepared to take advantage of the new techniques that
digital and social media represent as part of their overall
marketing/customer engagement strategy....
Only 17% of respondents considered most or all of their
existing marketing staff have the necessary skills
required to take advantage of new marketing or
customer engagement strategies....
Source : Alterian Annual Survey 2009

25. Barriers
Technology & Services

26. Source : May 2009 survey of approximately 70 senior executives from marketing service
providers and marketing agencies conducted by Alterian in London

27. Source : May 2009 survey of approximately 70 senior executives from marketing service
providers and marketing agencies conducted by Alterian in London

28. 61% of marketers do not
integrate web analytics data with
any other customer data ..........
Source : Alterian Annual Survey 2009
Source : May 2009 survey of approximately 70 senior executives from marketing service
providers and marketing agencies conducted by Alterian in London

29. •Integrated marketing platform
•Analytics at its core
•Driving “any channel”
Brands • Emergence of a new category
• Customer Engagement Agency
• Combining Strategy (data,
engagement, initial key channels analytics), Creative, Execution
web, email, social media, direct • MSPs, Agencies, even Sis
mail reaching out for this new
•Single data infrastructure (real approach
time, analytics, content)
Technology Service
Platform Providers

30. Agencies take note
We’ve hinted before that agencies that can’t transition from
pushing out messages to nurturing customer connections
aren’t long for this world. Agency readers, heed our warning.
Services firms that lack data management, analytics, listening,
social media execution and strategy expertise will dry up.”
- Forrester Research Inc, 2009

32. Barriers
A few thoughts
Be under no illusion – the world has changed - immerse
yourself in the new world
Engage with experts – CEAs
Develop a roadmap – and take gradual steps from your starting
point
But have a vision to work to in the medium term – don’t let new
initiatives be separate from mainstream marketing for long
Ensure you are in control of access to technology
– this underpins all customer engagement activities

33. Best Western Hotels
270 hotels, 18,500 employees
From :
Disparate database/analytics and email platforms, insufficient customer
understanding, difficulty in delivering tailored messages
To :
Integrated platform creating customer profiles, customer journeys and trigger points
and immediately executing tailored messages by combining many different content
items and third party content in real time. Up to 10 triggered campaigns a day. Over
4m combinations of email message.
Results :
Open rates up to 85%, click through rates up to 40%, points claimed up 540%

34. Global Crossing
IP & Ethernet services, 700 carriers rely on Global Crossing
Engaging in Social Media :
Monitoring flags people asking about GC products or services
– sales prospecting and customer services
Reports covering numerous categories or topics, like products, services, campaigns,
trade shows, competitors
- delivered to marketing, corporate comms, competitors intelligence, customer service
Drives individual engagement and future strategies :
See whats going on, learn from what is being said.
Measurement of volume of people talking, what their clout is, looking at –ve/+ve ratio,
helps understand impact of communications and shape future strategies

35. Learn Direct
e-teaching organisation, 6.6m courses, 2.4m enrolments
Building a “living” web presence :
Powerful web engagement solution
Puts content delivery and customer journey in the hands of the business not IT
Keeps content fresh and relevant
Drives out costs on support
Enables consumers to interact in their own way :
Closer integration of on-line communities for study groups
Easy access to lectures and support services
Guided transition through tiered learning
Consumers communicate and consume in their own way

36. Anderson Cancer Center
90,000 patients per annum, 18,000 staff, 9 sites
Listening to social media :
Monitor brand, campaigns, topics such as it’s clinical trials.
Identify and respond to customer service comments
Identify key influencers in the cancer community
Drives effective engagement with the cancer community and
wider public :
Build relationships with key influencers
Improving patient relationships and customer service by resolving issues or concerns
Refining SEO strategy
Evaluating campaigns e.g. Monitoring a key PR/Social campaign and tracking click
backs – found social activity drove a 9.5% increase in patient referrals in 3 months

37. Old Marketing is dead
long live Customer Engagement
Major social change in the way consumers listen to and engage with brands
Sobering need for brands to re-establish trust with consumers that have been empowered
through the use of technology to interact online
Permanent societal and technological changes, social media is one manifestation
Consumers want to interact, not just passively receive messages
from mass broadcast and one way communication to listening,
Move
understanding and engaging on an individual level – challenge and an opportunity

38. Hear from some experts........

39. THANK YOU!
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