This document discusses digital trends for 2011 and how they are changing consumer behaviors and purchase journeys. It notes that mobile devices are becoming the primary way people access the internet, social networks now influence online and offline purchases, and content is fragmenting across various digital platforms. The trends are pushing brands to adopt a more open approach where they foster online communities, engage in dialogue with consumers, and co-create brands with them.

1. The Open BrandDigital Trends for 2011KELLY MOONEYCEO, RESOURCE INTERACTIVEAUTHOR, THE OPEN BRANDCOPYRIGHT 2011 RESOURCE INTERACTIVE. PROPRIETARY AND CONFIDENTIAL.

5. What’s changing?1How we get information2How we engage with one another (and brands)3How we make purchases

6. 2OO8:130 million on Facebook—Inside Facebook, December 2008500,000 tweets per quarterwere posted at the end of 2007.—TwitdirAmericans spent more than 4.5 hours per month on smartphones.—M:Metrics, May 2008

7. 2O1O: 500+ million on Facebook. —Facebook Pressroom, Feb 2011Twitter hits 50 million tweets a day.—Mashable, Feb 2011American spent 3 hours a day using mobile phones to access the internet, use social networks, and work on their finances.—Rudder Finn, Feb 2010 4.5 million Foursquare users are “checking in” at locations around the world. —Foursquare Blog, Nov 2010

8. ECOMMERCE WEBSOCIAL WEB(Re)Searching, Shopping, Self-servicingCreating, Sharing, InfluencingConsumer behaviors are evolving…

9. The web influences nearly 5O% of offline salesOffline Sales 50%TOTAL SALES (millions)Total Online Impact 48% 47% 45% 42%Offline Sales Influenced by Online38%Online Sales200720082009201020112012Source: Jupiter/Forrester US Online Retail Forecast, 2007 - 2012

10. Traditional purchase journeyTRADITIONAL BEHAVIORS SIGN UP FOR LOYALTY CARDLOOK AT A CATALOGCONTACT CUSTOMER SERVICESEE AN ADRECEIVE A MAILERCALL 1-800VISIT A STORECONSULT SALES REPLINEAR • PREDICTABLE • BRAND-CONTROLLED

11. New purchase journeyECOMMERCE BEHAVIORS SOCIAL WEB BEHAVIORS PERUSE FAV BLOGGERS’ POSTSSIGN UP FOR LOYALTY CARDUSE COMPARISON TOOLSLOOK AT A CATALOGCONTACT CUSTOMER SERVICESEE AN ADRECEIVE A MAILERCALL 1-800VISIT A STORECONSULT SALES REPCHECK CRAIGS- LIST FOR RESALE OPTIONSASK QUESTION VIA LIVE CHATSEARCH FOR A PRODUCTWATCH YOUTUBE VIDEOSIGN UP FOR EMAILSHOP FROM FRIENDS’ LEMONADE STANDBROWSE WEB SITEPOST REVIEW, UPLOAD PICREAD AND RATE REVIEWVISIT A STORELINK FROM FRIEND’S FACEBOOKBROWSE TAG CLOUDSLINK FROM FRIEND’S FACEBOOKTRACK PURCHASEREVIEW FAQSCREATE TAGSNON-LINEAR • MULTICHANNEL • DIGITAL-FIRST

12. WORLDVIEW OF A CLOSED BRANDTargets ConsumersMonologueAwarenessPushGuarded CommunicationsCreated by MarketersBrand Management

13. WORLDVIEW OF A CLOSED BRANDWORLDVIEW OF AN OPEN BRANDFosters CommunitiesTargets ConsumersDialogueMonologueAwarenessEngagementPullPushGuarded CommunicationsTransparent CommunicationsCo-created with ConsumersCreated by MarketersBrand ManagementBrand Stewardship

14. Get O.P.E.N. Engaging PersonalNETWORKEDON-DEMAND

15. Get O.P.E.N. Engaging PersonalNETWORKEDON-DEMANDParticipationBelongingImmersionEntertainmentInspirationSelf-expressionEgo gratificationPortabilityCommunityMeaningful EfficiencyEaseControlFindabilityInstantaneousnessAcknowledgementDialogCustomizationPrivilegePopularity

16. Get O.P.E.N. Engaging PersonalNETWORKEDON-DEMANDConversion/Sales Awareness/Acquisition Awareness/Trial Retention/Loyalty

17. STARBUCKS

23. REAL-TIME WEBECOMMERCE WEBSOCIAL WEB(Re)Searching, Shopping, Self-servicingFeeding, Discovering, LayeringCreating, Sharing, InfluencingConsumer behaviors are evolving…

24. New purchase journeyECOMMERCE BEHAVIORS SOCIAL WEB BEHAVIORS REAL-TIME WEB BEHAVIORSPERUSE FAV BLOGGERS’ POSTSGET UP TO THE MINUTE REVIEWSSIGN UP FOR LOYALTY CARDUSE COMPARISON TOOLSLOOK AT A CATALOGCONTACT CUSTOMER SERVICESEE AN ADRECEIVE A MAILERCALL 1-800VISIT A STORECONSULT SALES REPCHECK CRAIGS- LIST FOR RESALE OPTIONSINVITE FRIENDS TO CO-SHOP NOWFOLLOW A PRODUCTASK QUESTION VIA LIVE CHATSEARCH FOR A PRODUCTWATCH YOUTUBE VIDEOSAY THANKS WITH TWIT PAY GIFTSIGN UP FOR EMAIL“LIKE” A PRODUCT FOR LATER OR FEEDBACKSHOP FROM FRIENDS’ LEMONADE STANDFOLLOW THE BRAND ON TWITTERBROWSE WEB SITERESPOND TO CAN’T RESIST TWITTER ADSEARCH NETWORK FOR BEST REVIEWSBUY VIA MOBILE OR FACEBOOKPOST REVIEW, UPLOAD PICDISCOVER WHAT PEOPLE ARE BUYING NOWREAD AND RATE REVIEWVISIT A STOREGET GEO-TARGTED OFFER ON PHONELINK FROM FRIEND’S FACEBOOKBROWSE TAG CLOUDSREPLENISH VIA PHONELINK FROM FRIEND’S FACEBOOKTRACK PURCHASEREVIEW FAQSSTREAM PURCHASE EXPERIENCEASK FRIENDS FOR INSTANT FEEDBACKCREATE TAGSSNAP QR CODE FOR MORE INFONON-LINEAR • MULTICHANNEL • DIGITAL-FIRST

25. Digital TrendsIMPACTING O.P.E.N. EXPERIENCES A SELECTION FOR EOO2/24/2O11© Copyright 2011 Resource Interactive

26. 2011 Digital Trends1. Mobile: The New PC2. It’s Better with Friends3. Atomized & Distributed4. The Digital Looking Glass5. Funny Money6. Location Matters7. Life is a Game8. The Internet of Things© Copyright 2011 Resource Interactive

27. Mobile: The New PCThe digital centerpiece of your customers’ lives© Copyright 2011 Resource InteractiveImage: Robert Scoble

28. Mobile: The New PCBy 2O13, mobile phones will overtake PCsas the most common Web access device worldwide.Data: Gartner 2O1O

29. Mobile: The New PCThere have been 73.5 million iPhones soldand there are over 317,OOO appsin the App Store withover 7 billion apps sold(2OO per second).Data: MobileCrunch - October, 2010 | MobClix | Apple - November, 2010

30. Mobile: The New PCeBay Windows Mobile 7Target iPhone AppSephora iPhone AppWhole Foods Recipes for iPhoneAmazon Android App

31. Mobile: The New PCSherwin-Williams ColorSnap™ iPhone AppSherwin-Williams ColorSnap™ BlackBerry App

32. Mobile: The New PCApple has sold more than 7 million iPads.There are over 4O,OOO iPad specific apps and over 1 million downloads on the first day of availability.Data: NYT - October, 2010 | Apple - November, 2010 | CNBC - May 3rd, 2010

33. Mobile: The New PCGapWired MagazineToys ‘R Us

34. Mobile: The New PCHP SlatePlayBookDell StreakSamsung Galaxy TabCisco Cius© Copyright 2010 Resource Interactive

35. It’s Better with FriendsThe new, socially powered web© Copyright 2010 Resource InteractiveImage: tribehut

36. It’s Better with FriendsWe expect in the first 24 hoursalone we’re going to serve 1 billion buttonson the web.”Mark Zuckerberg, Facebook Founder – April 22, 2O1O“

37. It’s Better with FriendsAlmost 65 millionFacebook usersthings daily.Data: All Facebook, July, 2010

38. It’s Better with FriendsMore than two million websiteshave integrated with Facebook, including over 8O of comScore’s U.S. Top 1OO websitesData: Mashable - May, 2010

39. It’s Better with Friendshttp://www.youtube.com/watch?v=Ed5vJeaEuzA

40. It’s Better with FriendsLevi’s Friends StoreVictoria’s Secret PINKPandoraYour Amazon Facebook Page

41. Atomized & DistributedThe fragmenting of content & commerce© Copyright 2011 Resource Interactive

42. Atomized & DistributedThis year, savvy CMOs will utilize digital platforms in new ways to make their brands an integral and integrated part of their customers’ everyday lives.Data: SODA Digital Outlook, 2010

43. Atomized & DistributedIn the most radical future, content will come to consumers– rather than them chasing it – prepare to fragment your corporate website & let it distribute to the social web.Data: Forrester, The Future of the Social Web - April, 2009

44. Atomized & DistributedWhole Foods

45. Atomized & Distributed68% of B2C companies in North America say they have acquired customers via Facebook.Data: Hubspot - February, 2010

46. Atomized & DistributedPampersPanteneThe Home Depot

47. Atomized & DistributedNBC UniversalBarnes & NobleFCUK YouTique on YouTube

48. The Digital Looking GlassDigital collides with the physical to create a layered world© Copyright 2011 Resource InteractiveImage: Robert.Montalvo

49. The Digital Looking GlassIn December 2OO9, Google Goggles was launched, bringing image recognition-based searchto millions of Android mobile devices.Data: Google

50. The Digital Looking Glasshttp://www.youtube.com/watch?v=bq-hXD33vXs&feature=relmfu

51. The Digital Looking GlassRed LaserGoogle GogglesAllureThe Weather ChannelWhole Foods

52. The Digital Looking GlassF-18 Fighter JetMonday Night Football

53. The Digital Looking GlassThere were over 1 million mobile AR app downloads in 2OO9. That number is expected to rise to 4OO million by 2O14.Data: Juniper Research

54. The Digital Looking GlassTissotLegoSamsungTobiFashionista

55. The Digital Looking GlassTissot

56. 2O16:Smart phones are the primary enabler of consumer shopping engagements— Nielsen, June 2010Tablet computers will out sell desktops in the US— Forrester, August 2010Mobile payment transactions in the U.S. will reach $56.7B— MarketResearch.com, August 2010

57. Digital ≠ website

58. Digital enables an always on, O.P.E.N. brandCAMPAIGNCAMPAIGNCAMPAIGNCONTENT SYNDICATIONBRAND WEB SITESOUTBOUND COMMSOCIAL MEDIAONLINE ADVERTISINGeRETAILERSSEARCHMOBILEGAMINGCONTENT, CONVERSATION, COMMERCE

59. How O.P.E.N. is your brand?Do you make it easy to learn about and purchase your products?Do you personalize experiences?Do you compel people to spend time with your brands?Do you enable the fans to share ideas and influence your brand?

60. Thank you.Kelly Mooneykmooney@resource.comtwitter: @pkmooney