Dancing with MegaphonesThe New Rules, Realities, and Hard Data

Behind Consumer Control

iMedia Agency Summit

December 13, 2010

Phoenix, AZ

Pete Blackshaw: CMO, NM Incite, a Nielsen-McKinsey Company

Lee Rainie: Director, Pew Internet Project

Megaphone 1:Internet and Broadband

Flickr: Susan Ford Collins

70%

66%

Consequences for info ecosystem

Volume Velocity

Vibrance Valence /Relevance

Variety – Explosion of creations/niches

Networked creators among internet users

• 62% are social networking site users

• ~50% share photos

• 33% create content tags

• 32% contribute rankings and ratings

• 30% share personal creations

• 26% post comments on sites and blogs

• 24% use Twitter / other status update features

• 15% have personal website

• 15% are content remixers

• 14% are bloggers

• 4% use location-sharing services

So what for brands?

• The Bermuda Triangle

– Markets are fractured

– Marketplace is roiled

– Metrics haven’t kept pace

– Too much noise

• Brands are co-owned by advocates /acolytes

– Best of times - sanctuaries

– Worst of times - #fail

Megaphone 2:Mobile

connectivity

Flickr: Susan Ford Collins

Cell phone owners – 85% adults

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

All adults Ages 18-29 Ages 30-49 Ages 50-64 Age 65+

96% 90%

85%

58%

Mobile internet connectors – 57% adults

0%

10%

20%

30%

40%

50%

60%

70%

All adults Whites Blacks Hispanics

62% 59%

55%

New cell and wireless realities

• More than 2/3 of adults and 3/4 of teens use the cloud• Web vs. apps struggle: 35% have apps; 24% use apps• Features used by cell owners

– 76% take pictures– 74% are texters (text overtakes talk in frequency in 2009)– 39% browse internet– 34% are email users– 34% record videos– 34% play games– 33% play music– 30% are IM-ers– 7% participate in video calls

Consequences for info ecosystem

Anywhere

Any device

PresencePlace

59% of Americans use TV and the Internet Simultaneously

Dramatically More Cross-Platform / Media-Mixing

Source: Nielsen Three-Screen Report

So what for brands?

Attention zones

Continuous partial attention

Deep dives

Info-snacking

Media zonesSocial

Immersive

Streams

Creative / participatory

Study / work

Megaphone 3:Social

networking

Flickr: Susan Ford Collins

So what for brands?

• Changed character of population

• Changed character of content

• Changes rhythms of engagement

• Changed the composition and use of people’s social networks

Consequences for info ecosystemSocial networks as sentries (WOM)

Consequences for info ecosystemSocial networks as information evaluators

Consequences for info ecosystemSocial networks as forums for action

Webshots: lauryn6842

Implications Pete Blackshaw

With Dramatically Different Channel Preferences

Question: Those who would contact the company to…

Discuss New

productsComplain

Get Advice

Make a Reco.

Crisis

Email 96 97 94 96 76

Call a live representative 94 95 92 90 95

FAQ on company website 94 NA 92 NA 74

Post an opinion or question on company website 87 80 77 82 48

IM through the company's website 81 78 78 76 71

Posting on a company message board 77 69 71 74 47

Posting on a blog sponsored by that company 68 61 64 68 41

Telephone - automated response/recording 57 57 62 59 52

Reading company's Facebook page 55 NA 53 NA 36

Sending photo or video to company 53 48 48 51 41

Posting on the company's Facebook page 50 42 47 47 31

Texting the company via mobile device 36 34 40 37 41

Source: Nielsen Consumer Channel Preference Study ‘09

Implication: A New Consumer Decision Journey to Manage

INITIAL CONSIDERATION: PURCHASE:

POST-PURCHASE EXPERIENCE:

ACTIVE EVALUATION:

▪ Consumer starts with 1.5 brands in mind, influenced by previous trial and word of mouth

At the moment of purchase, the consumer has evaluated only 3.2 brands, and makes decision based largely on information learned before shopping

66% of consumers engage with their brand after purchase (e.g., online research), and this engagement has a meaningful impact on the likelihood of repeat purchase

The consumer adds 1.7 more brands to consideration, based on packaging and sampling

19

Where Social Media Fits in to the Mix

Friending the Social Consumer25

Most influential touchpoints

2137

31

2810

Company-driven marketing Traditional advertising Direct marketing Sponsorship In-store advertising

Consumer-driven marketing Word of mouth Online research Offline/print reviews

Prior brand/product experience

Store/agent/dealer interactions

Moment of Purchase

22

5

43

ActiveEvaluation

26

26

Initial Consideration

39

12

Six Drivers of Brand Credibility

Trust Authenticity Transparency

ConfidenceConsistency

IntegrityAuthority

As AdvertisedReal & Sincere

Real PeopleInformal

Let the Sun Shine InEasy to Learn

Easy to DiscoverNo Secrets

Affirmation Listening Responsiveness

PlaybackReinforcementSearch ResultsAccountability

EmpathyWelcome Mat

Humility (we can learn)Absorbing Feedback

Follow-UpInvitational MarketingSolidifying the Solution

Dignifying Feedback24

Brand Credibility More Important Than Ever

Implication: Bold New Questions for Companies

Issue The Big Question

Credibility How to manage and protect credibility and trust in a highly transparent, 24/7 feedback environment?

InfluencerManagement

How to extend the notion of key influencer management to everyday consumers and even employees?

Cultivating Earned Media

How to generate earned media from customer service, and how service in general can be leveraged more strongly for brand and business-building via social media?

Organization How to best manage day-to-day digital/social media operations, recognizing that social media breaks down geographic and organizational barriers.

Listening & Measurement

What are the right listening & measurement protocols to drive accountability, feed engagement strategy & investment?

Website

Facebook

Twitter

MySpace

LinkedIn

Social Commerce Ecosystems Implication: Death (or erosion) of Web Sites

Consumer Relations

BrandedMedia

Channels

Forum / Communities

ConsumerOutreach

Influencer Outreach

Brand Backyard Consumer BackyardCommon

Brand SiteContact CenterE-mail PhoneWeb Site

EngagementBlogChat, SMSPhoneRate & Review

CommunitiesUser-Contributions Ratings & Reviews Co-Creation

PlatformsTwitterFacebookYouTubeFlickr, LinkedIn

3rd PartyConsumeristEdmundsWebMDTechCrunch

43

Implication: New and More Holistic Rules of Engagement

Implication: From Selling to Service

Pizza Hut

Convenient pizza ordering experience

Experience B& J through peace, love and ice cream

Discover recipes for any occasion.

Communicate with co-workers for coffee runs

Simulate your favorite choc. milk experience at anytime

Ben & Jerry’s Kraft Hershey’s Dunkin Donuts

Relevance to BP

Price Finders

Product Info

Travel Services

Environmental Info

Implication: Rise of Consumer Cartels

Implication: Massive Levels of Retailer Innovation

Source: Company websites; Progressive Grocer &

Pittsburgh Post-Gazette

Can BP empower its franchises and/or products around innovation?

Implication: The Rise of Real-Time

24/7 Real-Time War Room 24/7 Engagement Listening Beyond Borders

All aspects of integrated, brand-monitored social media

Deliberate effort to shape and manage messaging

Listening tools cover multiple languages & regions

Source: Nielsen

Looking Ahead

Trend What It Is, What It Means

Mass Socialization Social “earned” media & paid media become more intertwined

Platform Proliferation New devices and multi-tasking abound

Mobile Comes of Age Extends mass socialization & extends media to point of sale

Apps Everywhere Disruptive growth in apps, fueled by games and service utilities

Dominance of Facebook

A juggernaut, rewriting rules + shifting attention from websites

Rise of Social Commerce

Redefining consumer retailer interactions, powered by GPS, etc

Relevance & Privacy Cautious advance to addressability; heightened scrutiny

Infrastructure Growth Increased access and speed expand digital opportunities

“Heads Down” Generation

Dramatic consumer habit change; all eyes to wireless devices

Digital Downsizing More filtering/control of apps, friends, followers, choices

35

What’s Ahead / Next?Near Term Trends for 2011

Market Trends Description

Digital & Social From separate roles to unified and integrated (now one & the same)

Mobile Disruption Re-setting the entire landscape

Activism & Social Media Smarter, Creative, More Empowered/Linked & More Sophisticated

Payments and Fees Friction-free and seamless (already in play with iTunes)

Globalization of Social Creating huge opportunities….and huge operational challenges

36

What’s Ahead / Next?Longer Term Trends & Disrupters

Organizational Trends Description

Media Blending Increasingly sophisticated: Paid, Owned, Earned

Brand Managers Moving to “Community Manager” Roles & Responsibilities

Enterprise SM Dramatic expansion beyond marketing channel innovations

Marketing + Service New synergy between marketing & operations

Agency Integration Social prompting greater integration from agencies & suppliers

Speedbacking Practice of immediately responding to key issues, especially crisis

Things to watch

• Content metering online – new media business models

• Enhanced tech – 3-D• New attention research – Nielsen and

Coalition for Innovative Media Measurement

• Privacy debates• Net neutrality debates • Spectrum allocation debates • Rise of the “internet of things”

Thank you!