Dancing with MegaphonesThe New Rules, Realities, and Hard Data Behind Consumer Control

iMedia Agency Summit December 13, 2010Phoenix, AZPete Blackshaw: CMO, NM Incite, a Nielsen-McKinsey Company Lee Rainie: Director, Pew Internet Project

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1 -Dances with megaphones: Lee Rainie

Megaphone 1:Internet and Broadband

Flickr: Susan Ford Collins

70% 66%

Consequences for info ecosystem

Volume Velocity

Vibrance Valence /Relevance

Variety – Explosion of 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

Megaphone 2:Mobile

connectivity

Flickr: Susan Ford Collins

Cell phone owners – 85% adults

Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

96% 90% 85%

58%

Mobile internet connectors – 57% adults

Feb-04 Aug-04 Feb-05 Aug-05 Feb-06 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-100%

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

Anytime media

Attention zonesContinuous

partial attentionDeep divesInfo-snacking

Media zonesSocialImmersiveStreamsCreative /

participatoryStudy

Megaphone 3:Social

networking

Flickr: Susan Ford Collins

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

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2 -Dances with megaphones: Pete Blackshaw

The Big & Emerging Questions for Brands

1

Issue The Big Question

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

Influencer Management

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?

diverse demanding emergingconnected

Landscape: Diverse, Demanding, Connected, Emerging

Trend What It Is, What It MeansMass 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

23

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

59% of Americans use TV and the Internet Simultaneously

Dramatically More Cross-Platform / Media-Mixing

Source: Nielsen Three-Screen Report

Channel Preferences Dramatically Diversifying

  Question: Those who would contact the company to…

Discuss New

productsComplain Get

AdviceMake a Reco. Crisis

Email 96 97 94 96 76Call a live representative 94 95 92 90 95FAQ on company website 94 NA 92 NA 74Post an opinion or question on company website 87 80 77 82 48IM through the company's website 81 78 78 76 71Posting on a company message board 77 69 71 74 47Posting on a blog sponsored by that company 68 61 64 68 41Telephone - automated response/recording 57 57 62 59 52Reading company's Facebook page 55 NA 53 NA 36Sending photo or video to company 53 48 48 51 41Posting on the company's Facebook page 50 42 47 47 31Texting the company via mobile device 36 34 40 37 41

Source: Nielsen Consumer Channel Preference Study ‘09

Apps Usage: Gaming & Utility Big Drivers

Relevance to BPLocation Finders

Shopping Aids

Travel Services

Environmental & Weather Apps

Proliferation of Service Apps, Many Sponsored by Brands

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 BPPrice Finders

Product Info

Travel Services

Environmental Info

Website

Facebook

Twitter

MySpace

LinkedIn

Social Commerce Ecosystems From Destination-Focused Websites to “Brand Stands”

Value Consumer = Price Value Consumer = Benefits/Price

The Recalibration of “Value”…Beyond Price

Other New Variables…Corporate Responsibility, “Green”

Many consumers shop for more than just price. They’re willing to pay more if they perceive the value of additional benefits received.

Market Trends DescriptionDigital & 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

30

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

Organizational Trends DescriptionMedia 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

Mobile Phones Will Overtake PCs by 2015

Source: Nielsen

Rise of Media Blending (Media Mix Modeling 2.0?)

Technology-Driven Retailer Innovation

Source: Company websites; Progressive Grocer & Pittsburgh Post-Gazette

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

Rise of the Organizational War Room: New Listening Models for CRM

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

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