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I AM THE MEDIA Alain Thys, Marketing3 – Nov. 29,2006 Attribution-NonCommercial 2.0 Belgium http://creativecommons.org/licenses/by-nc/2.0/be/
Ceci n’est pas (just) about social media
The  traditional  marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work.   McKinsey Quarterly, 2005, Number 2
This Presentation WHILE YOU WERE SLEEPING WHERE DO WE GO FROM HERE? BRANDS AS STORYTELLERS
While you  were sleeping Part 1:
The Good Ole Days of Corporate Media ,[object Object],[object Object],[object Object],[object Object],We will decide what you want & need
“ Your contract with the network when you get the show is that you’re going to watch the spots … Any time you skip a commercial … you’re actually stealing the programming” Jamie Kellner, CEO of Turner Broadcasting, April 2002 (cc) Lynette Webb, 2006
Yet then the power shifted ® Anytime  -  Any Place  -  Any Way
200,000,000 blogs 1.5 million residents “ The workers should appropriate the means of production” >100,000,000 videos (65,000/day) www.ebay.com 21 Nov 2006 14,463,346 auctions Almost 4,000,000 articles (10 languages) 33,347,000 profiles
In which (semi-)amateurs start to “play for real” NEWS MEDIA BBC Newlsline Ticker 19,550 /million CNN 18,600 New York Times   8,740 Drudge Report   4,210 Washington Post   3,755 Reuters Online   3,680 Guardian Unlimited   2,985 Al Jazeera   2,925 Wall Street Journal   1,995 Le Monde    990 The Huffington Post   959 The Economist   740 Daily Kos (State of theNation)   722 Crooks&Liars (John Amato)   525 Xu Jing Lei  56,750/million 1,000-4,000 comments per article Blogs vs. Mainstream News Media : Early days, yet traffic is growing Every Citizen is a Reporter
Nielsen Rating – Nov 6- Nov 12 YouTube TOP 3 (20 nov 2006) In which (semi-)amateurs start to “play for real” 20.8 CBS CSI: Crime Scene Investigation  3. 22.0 ABC Dancing With the Stars  2. 22.3 million ABC Desperate Housewives 1. 12.7 Quick Change Artists  17.3 Pokemon Theme Music  35.7 MM Evolution of Dance
In which (semi-)amateurs start to “play for real” For video, please check http://www.mobuzztv.com/
While online media play catchup with traditional outlets July 2006 (cc) Lynette Webb, 2006
The long, long, long, long, long tail The biggest player is 1-200,000 1,000-200,000
(cc) Lynette Webb, 2006
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],BRANDS CONSUMERS RESPONSE
Australia Romania China/Shanghai Philippines India Top Graph = ad awareness  -  Bottom Graph = GRP Weight Response There is no apparent link between advertising awareness and GRP weight Illustration based on anonymised examples Source: Mediafuture SARL GRPs  =>  Awareness  =>  Karma  =>  €€€  
of consumers don’t believe that companies tell the truth in advertisements 76% Yankelowich
The Consumer is a Cat
Where do we go from here ? Part 2:
THERE IS STILL ONE TRUSTED MEDIUM LEFT IN THE WORLD MY FRIENDS – THEIR FRIENDS – AND ALL THOSE WE COLLECTIVELY RESPECT
Blind Faith Collectivism Command Reasoned Faith Elective Collectivism Contract People are saying: “I can no longer rely on a single source of information.  The omniscient, all-powerfull source – whether a news anchor, doctor, CEO or government official – is gone. Edelman Trust Barometer, 2006 While institutional trust is eroding
A person like yourself or a peer Edelman Trust Barometer 2006 When forming an opinion of a company, how credible would the information be from … People Trust People 15 Blogger 16 PR person 17 Entertainer 19 Union 29 CEO 33 Regular employee 36 Lawyer 53 Accountant  58 NGO Rep 58 Financial Analyst 61 Person like yourself/peer 62 Doctor or similar 62 Academic %
People Trust Humans Source: CMO Council’s Retail Fluency Report, 2005 Most influential information sources in purchasing electronic goods? (TOP 3) 3 Radio 4 TV 4 Magazines 14 Other 14 Retailer information 16 Product/Company Information 21 Internet 25 Newspaper Coupons 33 Word-of-mouth from family & friends 36 In-store demonstration 49 In-store Sales Associate % Source
This is not a “new hype”  just an ignored reality 61% trust other people like themselves (as media) - Edelman Trust Barometer, 2006 2006 Diffusion studies found that WOM is 10x more effective than media advertising 2001 Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising 1955  36% of surveyed consumers reported learning of an innovation through word-of-mouth, while 48% reported being influenced by WOM when making a purchase decision 1967
Paleolithic (stone) age “ hunter-gatherer” -2,000,000 -3500 Writing Print -500 Information Age -50 4000 years of media-revolution cannot undo 2,000,000 of programming TRIBAL – VERBAL – DISTRUST OF BIG TRIBES
The words I write, I speak, I film The Stories I Tell RADIO, TV, PRINT, EVENTS, … ARE NICE, YET IN MY COMMUNITY I   AM THE MEDIA
In a million channel world, brands whose consumers tell the best stories, win
How to control millions of inaccurate and divergent conversations ?  YOU DON’T Consumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go. A.G. Lafley, CEO and Chairman of P&G, October 2006 (cc) Lynette Webb, 2006
Brands have to become storytellers, that « light the fire » … and let go
Brands as Storytellers Part 3:
Tell me a story that makes  my  conversations more interesting
Make it something I really care about  Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
Make it something I really care about  Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
If you want them to talk about you make them …  LOVE HATE YET  NEVER  LEAVE THEM INDIFFERENT YOU
Yet it is exactly there that most brands leave consumers “indifferent” Customer Satisfaction Averages (scale 0-10) “ 44% of consumers say the majority of their Customer Experiences are “bland”...”
69% of consumers say  emotions  count for over half their customer experience Source data point: strategic resource development group, 2006  0.3 seconds RATIONAL DECISION MAKING IS AN ILLUSION RATIONAL ARGUMENTS SUPERFICIAL EMOTIONS
TRADITIONAL SEGMENTATION ASSUMES EVERYONE “FEELS THE SAME” Elsa (Female/urban/mid-income/25-30 years old) 25 29
It's easy to understand the survival of popular traditional techniques such as syndicated market research, simplistic quantitative surveys, and focus groups, [yet] conventional research methods often gather incomplete information. McKinsey Quarterly, November 2006 PSYCHOLOGY – ANTROPOLOGY – NEUROLOGY – SIMULATIONS - … TRADITIONAL RESEARCH OFTEN MISSES THE POINT
Make it something I  really  care about  GIVE MEANING GO « DEEP » For video, go to http://www.campaignforrealbeauty.ca/flat2.asp?id=4804
Brands people talk about make meaning  Beyond Money CHOOSE YOUR CLASSIC For Apple video, go to http://www.youtube.com/watch?v=4oAB83Z1ydE For Harley video, go to: http://www.harley-davidson.com/wcm/Content/Pages/Riders/Creed_Video.jsp?locale=en_US&locale=en_US&bmLocale=en_US
Make it something I really care about   Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
A person like yourself or your peer is seen as the most credible spokesperson about your company Have your customers tell your story For the jetBlue story videos, please go to http://www.jetblue.com/experience/index.html?intcmp=story
THE GREATEST MARKETING STORY EVER TOLD, BY MILLIONS
Origins of the engagement ring Pope Innocent III 1215  Fourth Lateran Council Birthstones
BUT WHY THE DIAMONDS ?
1938 Harry Oppenheimer meets Gerold M. Lauk of N.W.Ayer
1938 Europe 1953 1948 1990s Cullinan IX Cullinan III & IV
For Marilyn Monroe video, go to  http://www.youtube.com/watch?v=p0FDGnAIWpk
The Result Word of mouth to the point of becoming cultural tradition  ,[object Object],[object Object],[object Object],Case Study: Japan Make it fun credible and memorable
Make it something I really care about   Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
FEATURES - BENEFITS VALUES - PROPOSITIONS WHERE ARE THE READY MADE STORIES ???
Hemingway Van Gogh Chabrol Sartre ...
Opinion Leaders – Customers – Employees  Successes  - Failures - Reports  - Milestones  CEO – Founder – Products - … And the best news:  You don’t even need to be creative
No intrusive creative, yet true storycrafting 2500 years of experience meets neuro-research Make it something I can easily tell others Egocentricity Contrast Emotion Beginning & Ending Tangible Visual
Make it something I really care about   Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
It’s the steak, not the sizzle baby
Based on: Edelman Trust Barometer, 2006 – attributes for building trust The key drivers for trust & closeness are “quality & service”  10 10 10 10 10 Employee or CEO blogs 8 9 4 8 9 A visible CEO 9 8 6 8 8 Dialogue with all stakeholders 5 7 8 6 4 Well-known corporate brand 6 5 5 5 7 Socially responsible activities 6 5 9 7 6 Strong financial performance 4 4 3 3 5 Good employee and labour relations 3 3 7 4 3 Fair pricing for products & services 2 2 2 1 1 Attentiveness to customer needs 1 1 1 1 2 Quality of products & services ESP ITA DEU FRA UK
Yet still, most consumers are left “indifferent” Customer Satisfaction Averages (scale 0-10) “ 44% of consumers say the majority of their Customer Experiences are “bland”...”
In fact, if asked, they mostly won’t recommend a brand BTW: The same often applies to the people working for the brand themselves Telecom Europe = - 48% Profusion, 2005
WE PROMISE ONE THING AND DO SOMETHING ELSE 90% of businesses are unable to execute the strategy they have on paper as ,[object Object],[object Object],[object Object],[object Object],95% of senior business leaders say Customer Experience is the next competitive battleground yet nothing happens.
THE CHOICE If you want to influence WOM you have to convince your organisation to deliver what you promise Be true, so I don’t look like a liar
In which the first step to take is confront reality STAFF – CUSTOMERS –SUPPLIERS – CONSUMERS
Make it something I really care about   Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar Tell me a story that makes  my  conversations more interesting
Good Experience I tell 4 people Anonymous Case:  UK Consumer Electronics Bad Experience I tell 18 people Average Sale £ 230 In which you can estimate the value you generate, so you can even make a business case for your boss   3 Radio 4 TV 4 Magazines 14 Other 14 Retailer information 16 Product/Company Information 21 Internet 25 Newspaper Coupons 33 Word-of-mouth from family & friends 36 In-store demonstration 49 In-store Sales Associate % Top 3 Purchase Influencers
YET REMEMBER You can not control WOM … only influence it.
 

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I Am The Media

  • 1. I AM THE MEDIA Alain Thys, Marketing3 – Nov. 29,2006 Attribution-NonCommercial 2.0 Belgium http://creativecommons.org/licenses/by-nc/2.0/be/
  • 2. Ceci n’est pas (just) about social media
  • 3. The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2
  • 4. This Presentation WHILE YOU WERE SLEEPING WHERE DO WE GO FROM HERE? BRANDS AS STORYTELLERS
  • 5. While you were sleeping Part 1:
  • 6.
  • 7. “ Your contract with the network when you get the show is that you’re going to watch the spots … Any time you skip a commercial … you’re actually stealing the programming” Jamie Kellner, CEO of Turner Broadcasting, April 2002 (cc) Lynette Webb, 2006
  • 8. Yet then the power shifted ® Anytime - Any Place - Any Way
  • 9. 200,000,000 blogs 1.5 million residents “ The workers should appropriate the means of production” >100,000,000 videos (65,000/day) www.ebay.com 21 Nov 2006 14,463,346 auctions Almost 4,000,000 articles (10 languages) 33,347,000 profiles
  • 10. In which (semi-)amateurs start to “play for real” NEWS MEDIA BBC Newlsline Ticker 19,550 /million CNN 18,600 New York Times 8,740 Drudge Report 4,210 Washington Post 3,755 Reuters Online 3,680 Guardian Unlimited 2,985 Al Jazeera 2,925 Wall Street Journal 1,995 Le Monde 990 The Huffington Post 959 The Economist 740 Daily Kos (State of theNation) 722 Crooks&Liars (John Amato) 525 Xu Jing Lei 56,750/million 1,000-4,000 comments per article Blogs vs. Mainstream News Media : Early days, yet traffic is growing Every Citizen is a Reporter
  • 11. Nielsen Rating – Nov 6- Nov 12 YouTube TOP 3 (20 nov 2006) In which (semi-)amateurs start to “play for real” 20.8 CBS CSI: Crime Scene Investigation 3. 22.0 ABC Dancing With the Stars 2. 22.3 million ABC Desperate Housewives 1. 12.7 Quick Change Artists 17.3 Pokemon Theme Music 35.7 MM Evolution of Dance
  • 12. In which (semi-)amateurs start to “play for real” For video, please check http://www.mobuzztv.com/
  • 13. While online media play catchup with traditional outlets July 2006 (cc) Lynette Webb, 2006
  • 14. The long, long, long, long, long tail The biggest player is 1-200,000 1,000-200,000
  • 16.
  • 17. Australia Romania China/Shanghai Philippines India Top Graph = ad awareness - Bottom Graph = GRP Weight Response There is no apparent link between advertising awareness and GRP weight Illustration based on anonymised examples Source: Mediafuture SARL GRPs => Awareness => Karma => €€€ 
  • 18. of consumers don’t believe that companies tell the truth in advertisements 76% Yankelowich
  • 20. Where do we go from here ? Part 2:
  • 21. THERE IS STILL ONE TRUSTED MEDIUM LEFT IN THE WORLD MY FRIENDS – THEIR FRIENDS – AND ALL THOSE WE COLLECTIVELY RESPECT
  • 22. Blind Faith Collectivism Command Reasoned Faith Elective Collectivism Contract People are saying: “I can no longer rely on a single source of information. The omniscient, all-powerfull source – whether a news anchor, doctor, CEO or government official – is gone. Edelman Trust Barometer, 2006 While institutional trust is eroding
  • 23. A person like yourself or a peer Edelman Trust Barometer 2006 When forming an opinion of a company, how credible would the information be from … People Trust People 15 Blogger 16 PR person 17 Entertainer 19 Union 29 CEO 33 Regular employee 36 Lawyer 53 Accountant 58 NGO Rep 58 Financial Analyst 61 Person like yourself/peer 62 Doctor or similar 62 Academic %
  • 24. People Trust Humans Source: CMO Council’s Retail Fluency Report, 2005 Most influential information sources in purchasing electronic goods? (TOP 3) 3 Radio 4 TV 4 Magazines 14 Other 14 Retailer information 16 Product/Company Information 21 Internet 25 Newspaper Coupons 33 Word-of-mouth from family & friends 36 In-store demonstration 49 In-store Sales Associate % Source
  • 25. This is not a “new hype” just an ignored reality 61% trust other people like themselves (as media) - Edelman Trust Barometer, 2006 2006 Diffusion studies found that WOM is 10x more effective than media advertising 2001 Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising 1955 36% of surveyed consumers reported learning of an innovation through word-of-mouth, while 48% reported being influenced by WOM when making a purchase decision 1967
  • 26. Paleolithic (stone) age “ hunter-gatherer” -2,000,000 -3500 Writing Print -500 Information Age -50 4000 years of media-revolution cannot undo 2,000,000 of programming TRIBAL – VERBAL – DISTRUST OF BIG TRIBES
  • 27. The words I write, I speak, I film The Stories I Tell RADIO, TV, PRINT, EVENTS, … ARE NICE, YET IN MY COMMUNITY I AM THE MEDIA
  • 28. In a million channel world, brands whose consumers tell the best stories, win
  • 29. How to control millions of inaccurate and divergent conversations ? YOU DON’T Consumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go. A.G. Lafley, CEO and Chairman of P&G, October 2006 (cc) Lynette Webb, 2006
  • 30. Brands have to become storytellers, that « light the fire » … and let go
  • 32. Tell me a story that makes my conversations more interesting
  • 33. Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
  • 34. Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
  • 35. If you want them to talk about you make them … LOVE HATE YET NEVER LEAVE THEM INDIFFERENT YOU
  • 36. Yet it is exactly there that most brands leave consumers “indifferent” Customer Satisfaction Averages (scale 0-10) “ 44% of consumers say the majority of their Customer Experiences are “bland”...”
  • 37. 69% of consumers say emotions count for over half their customer experience Source data point: strategic resource development group, 2006 0.3 seconds RATIONAL DECISION MAKING IS AN ILLUSION RATIONAL ARGUMENTS SUPERFICIAL EMOTIONS
  • 38. TRADITIONAL SEGMENTATION ASSUMES EVERYONE “FEELS THE SAME” Elsa (Female/urban/mid-income/25-30 years old) 25 29
  • 39. It's easy to understand the survival of popular traditional techniques such as syndicated market research, simplistic quantitative surveys, and focus groups, [yet] conventional research methods often gather incomplete information. McKinsey Quarterly, November 2006 PSYCHOLOGY – ANTROPOLOGY – NEUROLOGY – SIMULATIONS - … TRADITIONAL RESEARCH OFTEN MISSES THE POINT
  • 40. Make it something I really care about GIVE MEANING GO « DEEP » For video, go to http://www.campaignforrealbeauty.ca/flat2.asp?id=4804
  • 41. Brands people talk about make meaning Beyond Money CHOOSE YOUR CLASSIC For Apple video, go to http://www.youtube.com/watch?v=4oAB83Z1ydE For Harley video, go to: http://www.harley-davidson.com/wcm/Content/Pages/Riders/Creed_Video.jsp?locale=en_US&locale=en_US&bmLocale=en_US
  • 42. Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
  • 43. A person like yourself or your peer is seen as the most credible spokesperson about your company Have your customers tell your story For the jetBlue story videos, please go to http://www.jetblue.com/experience/index.html?intcmp=story
  • 44. THE GREATEST MARKETING STORY EVER TOLD, BY MILLIONS
  • 45. Origins of the engagement ring Pope Innocent III 1215 Fourth Lateran Council Birthstones
  • 46. BUT WHY THE DIAMONDS ?
  • 47. 1938 Harry Oppenheimer meets Gerold M. Lauk of N.W.Ayer
  • 48. 1938 Europe 1953 1948 1990s Cullinan IX Cullinan III & IV
  • 49. For Marilyn Monroe video, go to http://www.youtube.com/watch?v=p0FDGnAIWpk
  • 50.
  • 51. Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
  • 52. FEATURES - BENEFITS VALUES - PROPOSITIONS WHERE ARE THE READY MADE STORIES ???
  • 53. Hemingway Van Gogh Chabrol Sartre ...
  • 54. Opinion Leaders – Customers – Employees Successes - Failures - Reports - Milestones CEO – Founder – Products - … And the best news: You don’t even need to be creative
  • 55. No intrusive creative, yet true storycrafting 2500 years of experience meets neuro-research Make it something I can easily tell others Egocentricity Contrast Emotion Beginning & Ending Tangible Visual
  • 56. Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar
  • 57. It’s the steak, not the sizzle baby
  • 58. Based on: Edelman Trust Barometer, 2006 – attributes for building trust The key drivers for trust & closeness are “quality & service” 10 10 10 10 10 Employee or CEO blogs 8 9 4 8 9 A visible CEO 9 8 6 8 8 Dialogue with all stakeholders 5 7 8 6 4 Well-known corporate brand 6 5 5 5 7 Socially responsible activities 6 5 9 7 6 Strong financial performance 4 4 3 3 5 Good employee and labour relations 3 3 7 4 3 Fair pricing for products & services 2 2 2 1 1 Attentiveness to customer needs 1 1 1 1 2 Quality of products & services ESP ITA DEU FRA UK
  • 59. Yet still, most consumers are left “indifferent” Customer Satisfaction Averages (scale 0-10) “ 44% of consumers say the majority of their Customer Experiences are “bland”...”
  • 60. In fact, if asked, they mostly won’t recommend a brand BTW: The same often applies to the people working for the brand themselves Telecom Europe = - 48% Profusion, 2005
  • 61.
  • 62. THE CHOICE If you want to influence WOM you have to convince your organisation to deliver what you promise Be true, so I don’t look like a liar
  • 63. In which the first step to take is confront reality STAFF – CUSTOMERS –SUPPLIERS – CONSUMERS
  • 64. Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar Tell me a story that makes my conversations more interesting
  • 65. Good Experience I tell 4 people Anonymous Case: UK Consumer Electronics Bad Experience I tell 18 people Average Sale £ 230 In which you can estimate the value you generate, so you can even make a business case for your boss  3 Radio 4 TV 4 Magazines 14 Other 14 Retailer information 16 Product/Company Information 21 Internet 25 Newspaper Coupons 33 Word-of-mouth from family & friends 36 In-store demonstration 49 In-store Sales Associate % Top 3 Purchase Influencers
  • 66. YET REMEMBER You can not control WOM … only influence it.
  • 67.