Philips aims to become a leader in health and well-being through meaningful innovations that improve lives. Growing demand will come from aging populations, environmental awareness, and emerging markets. Social media is blurring lines between marketing and PR, with trust in peer recommendations over advertisements. Studies show companies benefitting from social media through increased sales, customer satisfaction, knowledge sharing, and reduced costs. Philips' digital strategy focuses on consistency, continuity, creativity, and understanding customers through engagement rather than just transactions.

1. New Communications in a networkedworld – the Philips caseAuthorDivisonMMMM dd, yyyy

2. NEW COMMUNICATIONS IN A NETWORKED WORLD

3. 3We target attractive growth markets and have a compelling mission“Philips’ strategy is to become the leading company in Health & Well-being.Growing demand for healthcare, a healthy lifestyle and energy-efficient lighting solutions will be driven by an aging population, increased environmental awareness and expanding emerging marketsOur ability to create (and deliver)meaningful innovations (to our customers)to improve people’s lives

4. Survey findings. 81% : “Significant” or “Very Significant” Most critical organizational issuesEnsuring the right skill sets Training and educating staff Educating senior management Most critical executional issuesUnderstanding best practices How to prioritize social media Digital content … Managing corporate reputation in an uncontrolled environment… Integrating online and offline across multiple channels4

5. Marketing and PR are convergingCorp Comms/PRRelationshipsReputationContentMarketingBrandAdvertisingContentSocial Media Success Embraces two-wayBuilds relationshipsRelevantIntegratedAdds valueMeasuredDigital strategies and social media increasingly blur the lines between Corp Comms/PR and Marketing. Natural assets from all disciplines are critical for success.

6. 14%78%Trust advertisementsTrust the recommendationsof peers{Conversation}{One-Way}Source: Forrester

7. Correlating social media engagement with financial performance. In the last twelve monthsRevenue Growth %Wallflowers Selectives Butterflies MavensSource: Altimiter/Wetpaint July 2009Gross Margin Growth %Net Margin Growth %18%15%10%1%4%5%3%-2%-9%-4%-11%-6%7

8. McKinsey: Companies are measurablybenefiting from Web 2.0.With partners and suppliers.Internally.With customers.Source: McKinsey , September 2009

9. With customers.Increased effectiveness and customer satisfaction, reduced costsUsing a mix of techniques Source: McKinsey Global Survey , September 2009Awareness +25%Consideration +19%Conversion +17%Loyalty +20%Increasing effectiveness of marketingVideo sharingBlogsIncreasing customer satisfaction+20%RSS-15%Reducing marketing costsSocial networking-15%WikisReducing support costsPodcasts-20%Reducing travel costsRatingReducing time to market for products/services -20%TaggingIncreasing number of successful innovations for new products or services+20%P2PMicroblogging+10%Increasing revenueMashupsNo measurable effects/benefitsPrediction markets9

10. Internally. Increased knowledge, reduced costsUsing a mix of techniques Source: McKinsey Global Survey , September 2009+30%Increasing speed of access to knowledgeVideo sharingBlogs-20%Reducing communication costsRSS+35%Increasing speed of access to internal expertsSocial networking-20%Decreasing travel costsWikisIncreasing employee satisfaction +20%Podcasts-15%Reducing operational costs RatingTaggingReducing time to market for products/services -20%P2PIncreasing number of successful innovations for new products or services+20%Microblogging15%Increasing revenueMashupsNo measurable effects/benefitsPrediction markets10

11. With partners and suppliers.Increased knowledge , speed, satisfaction and reduced costs …Using a mix of techniques Source: McKinsey Global Survey , September 2009+25%Increasing speed of access to knowledgeVideo sharing-20%Reducing communication costsBlogsRSS+30%Increasing speed of access to external expertsSocial networking-20%Reducing travel costsWikis+20%Increasing satisfaction of suppliers, partners, external expertsPodcasts-20%Reducing time to market for products/services Rating-12%Reducing supply chain costsTaggingReducing product development costs -20%P2PIncreasing number of successful innovations for new products or services+20%Microblogging+15%Increasing revenueMashupsNo measurable effects/benefitsPrediction markets11

12. Philips and the online opportunitiesChannel thinking – Outside / InConsistency – One Philips Continuity – nohopping of and onCreativityCommitmentacross the Board

13. People don’t care what you say about your company.13

14. Channel thinking – Outside In – news room

15. Channel thinking – Outside In - LinkedIn

16. “It’s not about targeting audiences; it’s about drawing an irresistible bull’s-eye on yourself so audiences will target you.”Dave Senay, CEO, Fleishman-Hillard16

17. BuzzWeb 2.0WikisSocial MediaFolksonomyPodcastingRSSBlogsMedia relationsTaggingWirelessPromotionsGrassrootsSearch engine marketingYouTubePress releasesPitching reportersFactsheets Online editorial outreachConsumer-generated contentReputationmanagementPublicityPublic affairsCitizen journalismViral marketingSpecial eventsEmployeecommunicationsCoalitionsFlogsAdvergamingPR stuntsIRBrandingMobile marketingTivoThird party outreachMetaversesMySpaceSocial networkingWe MediaFlickrNewTraditionalContent optimizationFacebookSyndication

18. Organization A new value equation.From: Message 5,000,000 to possibly reach 500To: Personallyreach500who influence 5,000 who influence 50,000who influence 5,000,000Value Equation: 5,000 people who want to hear your message are more valuable than 5 millionwho don’t.

19. Consistency across sectors

20. Continuity – Strategy is imperative!Digital Content strategyOnePhilips project The themes around which we align The properties that will be maintainedHow we will measure effectivenessHow we will listen How we will manage these properties for the long termInternal “Help desk”: why, when, what, how?

21. Continuity – Stakeholder Relations NetworkGetInsideHealth NewsletterA monthly, dynamic newsletter individually tailored to the interests of our audience, alerting them to new, relevant content on GetInsideHealth.comResultsAverage open rate: 26%Average click-through rate: 36%Over 10,000 subscribers

22. Digital content strategy – Internal CommunicationsDigital Workplace

23. Used on a creative commons license from Brian Solis and Pr 2.0

24. Creativity – what makes you stand out?

27. “Now it’s the people who are taking control.”Rupert Murdoch, CEO, News Corp.27

29. What are we looking at.RelevanceInfluencer RankingsActivity, Reach and LinksShare of VoiceSentiment Sentiment vs. competitors% of Influencer’s EngagedTop ThemesGroup Membership StatsTheme-SEO coherenceWhere are the conversations?Who is most important to me?How many people am I reaching?How am I doing vs. competitors?Are people positive or negative?How I am perceived vs. competitors?Do top influencers talk about me?What are people saying?How many people connect with me?Does my online profile align with the conversation?

30. How does that fit with our map.Using engagement, you get a more holistic appreciation of your customers' actions, recognizing that value comes not just from transactions but also from actions people take to influence others.

31. Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding.Here’s how. Qualitative.Meaningful 1:1 relationships Quality of conversationsTargeted reach to important niche audiences/advocates SentimentPositive