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FEED:The 2009 Razorfish Digital Brand Experience ReportGarrick Schmitt, Group Vice President, Experience PlanningEmail: garrick.schmitt@razorfish.comTwitter: @gschmitt
Experience Matters.2
HELLO3
How Do Consumers Engage With Brands In An Increasingly Digital World?
THE DETAILS5
Meet The “Connected Consumer”In August 2009 Razorfish surveyed 1,000 U.S. “connected consumers”*:Broadband accessSpent $150 online in the past six     months (travel, Netflix, tickets, Amazon, etc.)Visited a community site (MySpace, YouTube, Facebook, Yelp, etc.)Consumed or created some form of digital media such as photos, videos, music or newsWHAT IS YOUR AGE?WHICH OF THE FOLLOWING BEST DESCRIBES YOUR COMBINED HOUSEHOLD INCOME?6*	This equates roughly to the U.S. broadband population which is about 200m based on the Pew Internet and American Life Project.
READ THIS
Yes, You Can Build A Brand Online. You Have No ChoiceMarketers have never thought of digital as a wonderful place to build a brand, but they should:65% of consumers have had a digital experience change their opinion about a brand97% of them report that experience influencing whether or not they purchased a product or service from that brandHAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS?HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?8
Actions Speak Louder Than AdvertisingBranded experience are the new advertising. And consumers are increasingly hungry for them, sometimes ravenously so:97% have searched for a brand online77% have watched a     commercial on YouTube69% have read a corporate blog65% have played a branded, browser-based game.73% have posted a product or brand review on a site like Amazon, Facebook or TwitterPLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:9
Brand Culture Or Fan Culture?Conventional wisdom holds that consumers don’t want brands encroaching on their social lives – but that’s just not true:76% of consumers welcomed brand advertising on social networks (FEED, 2008)40% of consumers “friended” a brand on Facebook and/or MySpace26% of consumers have “followed” a brand on TwitterHAVE YOU EVER “FRIENDED” A BRAND ON FACEBOOK OR MYSPACE?HAVE YOU EVER FOLLOWED A BRAND ON TWITTER?10
The Outlet Malls Of Tomorrow? Facebook, MySpace & TwitterMarketers 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.1144% 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 dealsWHAT IS THE PRIMARY REASON YOU FOLLOW A BRAND ON TWITTER?
Bottom Line: Digital Brand Experiences Create CustomersDigital 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 :1297% report increased brand awareness
98% show increased consideration
97% will more likely purchase a product
96% may recommend the brand to their friendsWHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING:
DIGITAL PRIMACY13
Consumers Turning First, Foremost To DigitalAccording 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:57% of consumers actively customize their homepages84% share links or bookmarks55% subscribe to RSS feeds33% get their news from Facebook20% get their news from TwitterPLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:14*Forrester 2009 North American Technographics Survey
Mobile Internet Service Use SkyrocketingMobile Internet services are being consumed broadly. Majority of consumers own a smartphone and use it actively.1557% access the Internet from their phone
50% have downloaded an app for their phone
30% have interacted with an ad banner on their phoneWHAT TYPE OF SMARTPHONE DO YOU HAVE?
Connected Consumers Are The New Mainstream16THE TECHNOLOGY ADOPTION CURVE
BRANDCULTURE17
Are Consumers Really In Control?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.40% have “friended” a brand on Facebook and/or MySpace26% have “followed” a brand on Twitter77% have watch an advert on YouTube69% have read a corporate blog post73% have posted a review of a brand on a site like Amazon or Yelp52% have blogged about brand’s product or servicePLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:18
Facebook And Twitter Creating Fan Culture For BrandsAfter 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.33% friend a brand on Facebook/ MySpace because they are a customer24% follow a brand on Twitter because they are a current customer23% follow a brand on Twitter for “interesting or engaging” content, which shows promise for a new type of relationshipWHEN YOU “FRIEND” A BRAND ON FACEBOOK OR MYSPACE, DOES IT GENERALLY DO THE FOLLOWING?WHEN YOU FOLLOW A BRAND ON TWITTER, DOES IT GENERALLY DO THE FOLLOWING?19
Fans And The Future Of The Marketing FunnelBrand culture and fan culture are dramatically reshaping the traditional funnel as consumers leap from experience to advocacy (or the inverse) almost instantly.70% have participated in a brand-sponsored contest24% have produced content to participate in a contest26% have attended a brand sponsored event, such as Nike’s Human Race24% have downloaded a branded application for their mobile phoneHAVE YOU EVER PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES?WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING?20
Experiences Not Only Build Brands, They Make Or Break ThemAmazon, 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:97% report increased brand awareness98% show increased consideration97% will more likely purchase a product96% may recommend the brand to their friends21
THEBOTTOM LINE22
Getting To The Bottom Of Brand EngagementEveryone 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.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.23
Digital Experience Create CustomersThe answer was a resounding “yes”. Experiences have a much greater influence over brand affinity and consumer purchasing than even we anticipated:65%of consumers have had a digital experience change their opinion about a brand. 97%of those report that experience influencing whether or not they purchased a product or service from that brand.64% of consumer report making a first purchase from a brand because of digital experience (e.g. website, banner, etc.) HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS24HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?HAVE YOU EVER MADE YOUR FIRST PURCHASE FROM A BRAND BECAUSE OF A DIGITAL EXPERIENCE (E.G., A WEB SITE, MICROSITE, MOBILE COUPON, EMAIL)?
Five Brands That Are Excelling In An Experience-Driven World…
1. UNIQLO: Japanese Retailer Surprises And Delights Audiences With Every Interaction26

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FEED: The Razorfish Digital Brand Experience Report 2009 Key Findings

  • 1. FEED:The 2009 Razorfish Digital Brand Experience ReportGarrick Schmitt, Group Vice President, Experience PlanningEmail: garrick.schmitt@razorfish.comTwitter: @gschmitt
  • 4. How Do Consumers Engage With Brands In An Increasingly Digital World?
  • 6. Meet The “Connected Consumer”In August 2009 Razorfish surveyed 1,000 U.S. “connected consumers”*:Broadband accessSpent $150 online in the past six months (travel, Netflix, tickets, Amazon, etc.)Visited a community site (MySpace, YouTube, Facebook, Yelp, etc.)Consumed or created some form of digital media such as photos, videos, music or newsWHAT IS YOUR AGE?WHICH OF THE FOLLOWING BEST DESCRIBES YOUR COMBINED HOUSEHOLD INCOME?6* This equates roughly to the U.S. broadband population which is about 200m based on the Pew Internet and American Life Project.
  • 8. Yes, You Can Build A Brand Online. You Have No ChoiceMarketers have never thought of digital as a wonderful place to build a brand, but they should:65% of consumers have had a digital experience change their opinion about a brand97% of them report that experience influencing whether or not they purchased a product or service from that brandHAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS?HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?8
  • 9. Actions Speak Louder Than AdvertisingBranded experience are the new advertising. And consumers are increasingly hungry for them, sometimes ravenously so:97% have searched for a brand online77% have watched a commercial on YouTube69% have read a corporate blog65% have played a branded, browser-based game.73% have posted a product or brand review on a site like Amazon, Facebook or TwitterPLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:9
  • 10. Brand Culture Or Fan Culture?Conventional wisdom holds that consumers don’t want brands encroaching on their social lives – but that’s just not true:76% of consumers welcomed brand advertising on social networks (FEED, 2008)40% of consumers “friended” a brand on Facebook and/or MySpace26% of consumers have “followed” a brand on TwitterHAVE YOU EVER “FRIENDED” A BRAND ON FACEBOOK OR MYSPACE?HAVE YOU EVER FOLLOWED A BRAND ON TWITTER?10
  • 11. The Outlet Malls Of Tomorrow? Facebook, MySpace & TwitterMarketers 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.1144% of consumers who follow a brand on Twitter do so for deals
  • 12. 37% of consumers who “friended” a brand on Facebook and/or MySpace do so for dealsWHAT IS THE PRIMARY REASON YOU FOLLOW A BRAND ON TWITTER?
  • 13. Bottom Line: Digital Brand Experiences Create CustomersDigital 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 :1297% report increased brand awareness
  • 14. 98% show increased consideration
  • 15. 97% will more likely purchase a product
  • 16. 96% may recommend the brand to their friendsWHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING:
  • 18. Consumers Turning First, Foremost To DigitalAccording 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:57% of consumers actively customize their homepages84% share links or bookmarks55% subscribe to RSS feeds33% get their news from Facebook20% get their news from TwitterPLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:14*Forrester 2009 North American Technographics Survey
  • 19. Mobile Internet Service Use SkyrocketingMobile Internet services are being consumed broadly. Majority of consumers own a smartphone and use it actively.1557% access the Internet from their phone
  • 20. 50% have downloaded an app for their phone
  • 21. 30% have interacted with an ad banner on their phoneWHAT TYPE OF SMARTPHONE DO YOU HAVE?
  • 22. Connected Consumers Are The New Mainstream16THE TECHNOLOGY ADOPTION CURVE
  • 24. Are Consumers Really In Control?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.40% have “friended” a brand on Facebook and/or MySpace26% have “followed” a brand on Twitter77% have watch an advert on YouTube69% have read a corporate blog post73% have posted a review of a brand on a site like Amazon or Yelp52% have blogged about brand’s product or servicePLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:18
  • 25. Facebook And Twitter Creating Fan Culture For BrandsAfter 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.33% friend a brand on Facebook/ MySpace because they are a customer24% follow a brand on Twitter because they are a current customer23% follow a brand on Twitter for “interesting or engaging” content, which shows promise for a new type of relationshipWHEN YOU “FRIEND” A BRAND ON FACEBOOK OR MYSPACE, DOES IT GENERALLY DO THE FOLLOWING?WHEN YOU FOLLOW A BRAND ON TWITTER, DOES IT GENERALLY DO THE FOLLOWING?19
  • 26. Fans And The Future Of The Marketing FunnelBrand culture and fan culture are dramatically reshaping the traditional funnel as consumers leap from experience to advocacy (or the inverse) almost instantly.70% have participated in a brand-sponsored contest24% have produced content to participate in a contest26% have attended a brand sponsored event, such as Nike’s Human Race24% have downloaded a branded application for their mobile phoneHAVE YOU EVER PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES?WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING?20
  • 27. Experiences Not Only Build Brands, They Make Or Break ThemAmazon, 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:97% report increased brand awareness98% show increased consideration97% will more likely purchase a product96% may recommend the brand to their friends21
  • 29. Getting To The Bottom Of Brand EngagementEveryone 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.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.23
  • 30. Digital Experience Create CustomersThe answer was a resounding “yes”. Experiences have a much greater influence over brand affinity and consumer purchasing than even we anticipated:65%of consumers have had a digital experience change their opinion about a brand. 97%of those report that experience influencing whether or not they purchased a product or service from that brand.64% of consumer report making a first purchase from a brand because of digital experience (e.g. website, banner, etc.) HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS24HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?HAVE YOU EVER MADE YOUR FIRST PURCHASE FROM A BRAND BECAUSE OF A DIGITAL EXPERIENCE (E.G., A WEB SITE, MICROSITE, MOBILE COUPON, EMAIL)?
  • 31. Five Brands That Are Excelling In An Experience-Driven World…
  • 32. 1. UNIQLO: Japanese Retailer Surprises And Delights Audiences With Every Interaction26
  • 33. 272. Red Bull: Pioneered Experiential Marketing With Subversive Events And Sponsorships
  • 34. 283. Barbie: Reinvented An American Icon For The Pop Sugar Set And Broke Sales Records
  • 35. 29“We’re not in the business of keeping the media companies alive. We’re in the business of connecting with consumers.” – Trevor Edwards, Nike4. Nike: Human Race. Chalkbot. Nike Is Setting A New Standard For Experiential Marketing
  • 36. 304. Virgin America: Brand Built By Breakthrough Experiences – And The Marketing Of Them
  • 37. 315. Microsoft’s Bing: Accomplishing The Impossible By Putting Experience First And In Every Ad31
  • 38. Thank YouGarrick Schmitt, Group Vice President, Experience PlanningEmail: garrick.schmitt@razorfish.comTwitter: @gschmitt