1.
1<br />Sean Corcoran, Senior Analyst, Forrester<br />David Armano, Senior Vice President, Edelman Digital<br />Rob Fuggetta, Founder/CEO, Zuberance<br />Twitter hashtag: #PaidvEarned<br />Paid vs Earned Media<br />April 19, 2011<br />

2.
Paid vs Earned Media<br />2<br />Moderator:<br />David Spark<br />Spark Media Solutions <br />

3.
Paid vs Earned Media<br />3<br />Hashtag for event:<br />#PaidvEarned<br />

4.
4<br />Successful earned media campaign techniques<br />B2B, mid-size,communication <br />Integration strategy of owned, paid, earned<br />Best uses of each channel for highest ROI, budget mix<br />ROI evaluation, measurement methods, success metrics<br />“Viral lift,” conversion rates, tracking<br />How to manage, scale, automate earned campaign<br />Resources and tools<br />Trends<br />You asked us about…<br />

5.
5<br />Participant Profile: Title & Role<br />Title<br />Role & Responsibility<br />N = 336, Online survey, fielded April 12 – 18 2011<br />

6.
6<br />Current Spends and Trends<br />Q: How are you currently spending resources on Media?<br />Rank in order of importance.* <br />Q: What % of your marketing budget has shifted from Paid to Earned Media?<br />Owned<br />Budget shifts from Paid to Earned<br />Earned<br />Paid<br />*N = 336; score is a weighted calculation <br />

7.
Marketers believe customers go to owned media channels most*<br />7<br />*N = 336; score is a weighted calculation <br />

8.
8<br />Marketers are evenly divided on views<br />Q: Which category has the biggest impact on your business in terms of generating sales, new customers, and revenue from marketing-related efforts? Why? <br /><ul><li>Owned media such as your website or blog

9.
Paid media such as search engines, banner ads or other advertising

10.
Earned media such as reviews, online forums, other sources for peer advice</li></ul>N = 336<br />

11.
Biggest impact on business: Owned<br />9<br /><ul><li>Content is superior. "Content is King."

12.
[I have] control over content in an environment that directly sells my brand

13.
[Owned media] has the most information and details- [and is a] trusted source of accurate info [Owned media] is used as a research tool, it showcases the most information about our brand in one place. All Paid & Earned Media drive back to our website.

14.
Most of information about what the company does is contained within owned media, giving customers a better understanding of what we're all about.

15.
[It is the] number one area where customers like to book and compare prices.

16.
We drive everyone to the website. Also, people do searches indepenedently, and will be led there. Finally, the obvious reason is that we sell our product on our website through a hosted booking engine. </li></ul>N = 336, quantitative and open-ended comment analysis<br />

17.
Biggest impact on business: Paid<br />10<br /><ul><li>As a challenger brand, awareness driving to a large audience is critical for trial and new customer acquisition. Earned builds loyalty, but comes later in the cycle.

18.
Direct response campaigns drive the most the most in-store and onine traffic

19.
Awareness is a key issue in videogames - a launch driven business - and we do not feel Earned or Owned Media gets us enough reach (for most releases).

20.
It's the highest reaching vehicle that creates awareness and drives traffic to your "owned" properties

21.
Very measurable ROI - easy to track how many leads, sales, etc came directly from the investment.

22.
It's measurable and thus gets the most budget </li></ul>N = 336, quantitative and open-ended comment analysis<br />

23.
Biggest impact on business: Earned<br />11<br /><ul><li>They are perceived as being independent and unbiased.

24.
We're a B2B focused brand, so our customers tend to know who we are in the industry. We really rely on the word of mouth on our technology to sell intricate details of our product to buyers.

25.
Word of mouth recommendations are our largest source of referrals and brand discovery/awareness (new sales). Luckily we are one of the few brands that believes credibility, trust, and limited transparency are crucial to success.

26.
3rd party endorsements, whether from peers, other buyers or critical reviews, have great impact.

27.
Customers are looking at how others use products in similar ways and then make value judgments based on that information. </li></ul>Credible & trustworthy<br />Peer references<br />Third-party influence<br />N = 336, quantitative and open-ended comment analysis<br />

28.
Paid vs Earned Media<br />12<br />Sean Corcoran<br />Senior Analyst <br />Forrester Research Inc<br />@seancor<br />

29.

30.
Shifting The Balance Of Media<br />Sean Corcoran, Sr. Analyst<br />April 19, 2011<br />

31.
Word-Of-Mouth reigns again<br />

32.
This social media thing is real <br />More than 4 out of 5 online U.S. adults now participate in social media each month<br />…and nearly 7 out of 10 European online adults too<br />Sources: Forrester Social Technographics Survey Q4, 2009<br />

33.
Social networks are really popular<br />59% of U.S. online adults are visiting social networks at least once per month<br />…and 50% of online Metro Chinese adults too<br />Sources: Forrester Social Technographics Survey Q1, 2010<br />

34.
People are VERY active with social media<br />Nearly one third of US online adults are “Conversationalists” – they post status updates on social sites at least weekly<br />Sources: Forrester Social Technographics Survey Q1, 2010<br />

35.
Word-Of-Mouth Is Now Media (Earned Media)<br />Word-of-mouth impressions made by people on other people online in the U.S. in 2009:<br />500 Billion<br />Source: Forrester North Americans Technographics Empowerment Survery Q4 2009<br />

36.
And It Lives On<br />

37.
<ul><li> Reviews/Ratings

38.
Blog posts & comments

39.
Listening platforms

40.
Volume, Sentiment, etc.

41.
Paid Search

42.
Display ads

43.
Video ads

44.
Sponsorships

45.
Web site

46.
Mobile site

47.
Facebook

48.
Twitter

49.
YouTube</li></ul>“Earned, Owned, Paid” redefines the marketing mix<br />Earned Media<br />“The Result”<br />Paid Media<br />“The Catalyst”<br />Owned Media<br />“The Portable Brand”<br />

50.
Brands can now build long term socially-enabled platforms, rather than just short term campaigns<br />

51.
Marketers have a tremendous opportunity to energize their advocates and create earned media<br />16% of the online consumers generate 80% of online word-of-mouth impressions<br />

52.
Paid media (advertising) is the catalyst <br />

53.
Social media has become the interactive platform for TV<br />

54.
The “true reach” of the Super Bowl includes both earned and paid media<br />75 million total online views with 55,000 comments and over 185,000 ratings<br />

55.
O + P = E<br />

56.
What It Means: An up hill battle for marketers<br />

57.
Marketers have been on the hunt<br />

58.
…but the hunters have become the hunted<br />

59.
Marketers must adapt<br />Adaptive Marketing:<br />A flexible approach in which marketers respond quickly to their environment to align consumer and brand goals and maximize return on brand equity.<br />

60.
In the adaptive marketing era…<br />ALL of marketing evolves from a focus on push to pull<br />The Groundswell (social media) is mainstream<br />All marketing communication is “always on”<br />Consumers move from passive audience to active participants<br />Brands must publish and update content on a regular basis<br />Intelligence drives decisions in real time<br />Loyalty and Influence become the key drivers of success <br />

61.
Recommendations<br />Start thinking about marketing to people<br />Most interactive marketers actually market to browsers, phones, and email addressess<br />Identify your advocates immediately <br />Use listening platforms to identify the most influential and NPS to identify the most loyal<br />Build owned media platforms that enable advocates to promote the brand<br />Leverage tools like Facebook Open Graph and Ratings and Reviews<br />Create cross-team processes <br />Share real time data and processes for acting on it across marketing, PR, customer service, IT, etc.<br />Recognize the true cost is in resources<br />You can’t buy earned media, you must empower the organization to cultivate it<br />Rethink your metrics<br />Include earned media metrics in your paid media analysis<br />Measure the impact paid media has on your owned and earned media assets<br />Incorporate loyalty and influence as key metrics for any marketing initiative<br />

62.
Thank you<br />Sean Corcoran<br />@seancor<br />www.forrester.com<br />

63.
Paid vs Earned Media<br />35<br />David Armano<br />Senior Vice President <br />Edelman Digital<br />@armano<br />

64.
MEDIA PROPERTIES, OVERLAPS & OWNERSHIP<br />MEANINGFUL ENGAGEMENT IN A CONNECTED WORLDDavidArmano, SVP Edelman Digital | @armano<br />

65.
DIGITAL MEDIA <br />PROPERTIES & PLATFORMS<br />

66.
Digital<br />properties<br />Websites<br />Custom Built PortalsInternal/Enterprise<br />OWNEDproperties<br />EARNEDmedia<br />38<br />

67.
AdvertisingBannersDisplayPaid Endorsements<br />Digital<br />properties<br />Websites<br />Custom Built PortalsInternal/Enterprise<br />Rich Media Content <br />OWNEDproperties<br />PAIDmedia<br />39<br />

68.
AdvertisingBannersDisplayPaid Endorsements<br />Digital<br />properties<br />Websites<br />Custom Built PortalsInternal/Enterprise<br />Rich Media Content <br />OWNEDproperties<br />PAIDmedia<br />Partnerships<br />Influencer networksBranded entertainmentNiche Platforms<br />EARNEDmedia<br />40<br />

69.
AdvertisingBannersDisplayPaid Endorsements<br />Digital<br />properties<br />Websites<br />Custom Built PortalsInternal/Enterprise<br />Rich Media Content <br />OWNEDproperties<br />PAIDmedia<br />Partnerships<br />Influencer networksBranded entertainmentNiche Platforms<br />EMBASSIES<br />EARNEDmedia<br />SOCIAL<br />platforms<br />outposts<br />RELEVANT Message boards<br />blogosphere<br />Influencer engagement<br />41<br />

70.
THE “CLOVERLEAF”<br />WHERE MEDIA LIVES TODAY<br />

71.
43<br />

72.
SEARCH & SOCIAL: HOW<br />DIGITAL MEDIA SPREADS<br />

73.
45<br />Search: Information based<br />+<br />1. Digital participant initiates search(information)<br />3. Traffic directed & media sharedvia social networks and e-mail <br />2. Results ranked by authority/quality <br />Source: David ArmanoEdelman 2011, edelmandigital.com<br />

74.
46<br />Search: Information based<br />+<br />1. Digital participant initiates search(information)<br />3. Traffic directed & media sharedvia social networks and e-mail <br />2. Results ranked by authority/quality <br />Source: David ArmanoEdelman 2011, edelmandigital.com<br />Social: Influence based<br />3. Conversations & social sharing about media influence search results and rankings<br />2. Media digested, conversed aboutand shared<br />1. Digital participant views mediafrom social connection (relationships)<br />

75.
47<br />

76.
EARNING MEDIA <br />THROUGH OUTREACH<br />

77.
FIRST DETERMINE WHO HAS THE RIGHT INFLUENCE<br />49<br />

78.
Source: Edelman 2011, edelmandigital.com<br />50<br />

79.
THE FOUR C’S FORMEANINGFUL ENGAGMENT<br />IN A CONNECTED AGE<br />

80.

81.
CONNECTION: EBAY SOCIAL MEDIA SELLERS<br />53<br />

82.
CONTENT: HUGGIES HIGH CHAIR CRITICS<br />54<br />

83.
CONTENT: HUGGIES HIGH CHAIR CRITICS<br /><ul><li>Two months after launch, Highchair Critics (HC) outpaced the growth of Huggies’ Facebook Page – the brand’s most active and engaged online community to date. HC had 67,000 page views compared to Facebook’s 13,500 page views during the same time period

84.
HC averaged 440 comments on promotional giveaway posts each week (during the commercial program), spurring thousands of positive, personal endorsements from moms, many of whom cited the shaped-to-fit feature as their favorite product benefit</li></ul>55<br />

85.
CAMPAIGN: CLINIQUE<br />Directing to Facebook competition<br />3,365 competition entries<br />9,000 votes<br />39,440 visits to the Facebook competition<br />42,053 YouTube video views<br />56<br />

86.
CAMPAIGN: EDGE #SOIRRITATING<br />“The #soirritatinghashtag has been used about 6,800 times, and attention from numerous media outlets has contributed to mounting buzz — all of which likely contributed to Edge’s decision to continue the campaign throughout 2011” (Mashable)<br />57<br />

87.
COORDINATION: BLACKBERRY GLOBAL SOCIAL BUSINESS<br />58<br />

88.

89.
Paid vs Earned Media<br />60<br />Rob Fuggetta<br />Founder/CEO <br />Zuberance<br />@RobFuggetta<br />

90.
Leveraging Earned MediaRob Fuggetta, Founder/CEO, ZuberanceApril 19, 2011<br />

91.
62<br />About Zuberance<br />Social Marketing Company focused on Brand Advocates<br />Turn Brand Advocates into powerful marketing force<br />Generate qualified leads, traffic, sales, positive WOM<br />

92.
63<br />Where Zuberance Fits In<br />Social Media Marketing Products & Services<br />Listen<br />Engage<br />Sell<br />Zuberance<br />

93.
64<br />Zuberance Brand Advocate Solution<br />“Advocate E-S-P”<br />Advocate Expertise<br />Advocate Services<br />Advocate Platform<br /><ul><li>Advocate Apps

94.
Marketer Tools

95.
Advocacy Engine

96.
Advocate Insights</li></li></ul><li>65<br />Brand Advocates, Definition<br />Highly-satisfied customers who pro-actively recommend brands or products without being paid to do so. <br />►60 Million Brand Advocates in U.S.<br />Source: Multiple<br />

97.
66<br />How to Leverage Earned Media<br />Brand Advocacy System<br />

98.
67<br />Identify Brand Advocates…<br />How likely are you to recommend our brand or product to your friends?<br />50%<br />

99.
68<br />Ask Ultimate Question in Many Places<br />Email<br />Call Center<br />Web<br />Product<br />Social<br />Packaging<br />

100.
…Energize Brand Advocates…<br />Advocate Ratings & Reviews<br />Advocate Stories<br />Advocate Answers<br />Advocate Offers<br />69<br />

101.
…Track Results <br /><ul><li>Clicks

102.
Leads

103.
Impressions

104.
Sales</li></ul>70<br />►Earned Media is Measurable!<br />

105.
71<br />Real-World Results<br />

106.
72<br />Q: How Compete Against “Big Boys”?<br />$50M+<br />Vonage$200M<br />Ooma<br /><$2M<br />Source: Vonage annual report, 2010<br />

107.
73<br />Answer: Ooma Unleashes Advocates<br />

108.
74<br />Ooma Acquisition Costs Drop 54%<br />Customer Acquisition Costs (CAC)<br />$146<br />$78<br />Before<br />After<br />

109.
75<br />Problem: Negative WOM<br />►Yet 54% of Norton customers highly likely to recommend<br />

110.
76<br />Solution: Norton Advocates to Rescue!<br />Before energizing Norton Advocates:<br />After energizing Norton Advocates:<br />►Norton sales increased $26 million on Amazon.com<br />

111.
77<br />750,000 Chili’s Advocates<br />1M+ Recommendations<br />50,000+ Email Club Sign-Ups<br />Chili’s Peppers in Earned Media<br />

112.
78<br />10X Higher Conversion Rate<br />25%<br />2.5%<br />Earned Media<br />Paid Media<br />Source: FireClick Index, Zuberance Customer Data<br />

113.
79<br />Do not pay or coach Brand Advocates<br />Make it easy for Advocates<br />Track and optimize results<br />Get an Advocacy system<br />Best Practices<br />

114.
80<br />Thank You!<br />Rob Fuggetta, Founder & CEO<br />Zuberance<br />rob@zuberance.com<br />650.369.2002<br />Follow Zuberance on Twitter:<br />http://twitter.com/zuberance<br />