media - new generation media

8/14/2019 Media - New Generation Media

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I AM THE MEDIAAlain Thys, Marketing3 Nov. 29,2006

Attribution-NonCommercial 2.0 Belgiumhttp://creativecommons.org/licenses/by-nc/2.0/be/
http://creativecommons.org/licenses/by-nc/2.0/be/http://creativecommons.org/licenses/by-nc/2.0/be/


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est pas (just) about social


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The traditional marketing model is being challenged, and(CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2


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This Presentation

WHILE YOU WERE SLEEPING

WHERE DO WE GO FROM HERE?

BRANDS AS STORYTELLERS


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While youwere sleeping

Part 1:


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The Good Ole Daysof Corporate Media

Central editorial control

Government regulation (censorship)

One-way communication

Limited channels of information

We will decide what you want & need


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Your contract with the network when you get the show is that youregoing to watch the spots Any time you skip a commercial

youre actually stealing the programming

Jamie Kellner, CEO of Turner Broadcasting, April 2002 (cc) Lynette Webb, 2006


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Yet then the power shifted

Anytime - Any Place - Any Way
http://www.google.be/webhp?hl=nl


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200,000,000 blogs

1.5 millionresidents

The workersshould

appropriate the

means of production

>100,000,000 videos(65,000/day)

www.ebay.com 21 Nov 2006

14,463,346 auctions

Almost 4,000,000 articles(10 languages)

33,347,000 profiles
http://www.epinions.com/


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In which (semi-)amateurs start to play for real

NEWS MEDIA

BBC Newlsline Ticker 19,550 /millionCNN 18,600New York Times 8,740Drudge Report 4,210

Washington Post 3,755Reuters Online 3,680Guardian Unlimited 2,985Al Jazeera 2,925Wall Street Journal 1,995Le Monde 990The Huffington Post 959The Economist 740Daily Kos (State of theNation) 722Crooks&Liars (John Amato) 525

Xu Jing Lei56,750/million

1,000-4,000comments per

article

Blogs vs. Mainstream News Media : Early days, yet traffic is growing

Every Citizen is a Reporter


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20.8CBSCSI: Crime Scene Investigation3.22.0ABCDancing With the Stars2.

22.3 millionABCDesperate Housewives1.

Nielsen Rating Nov 6- Nov 12

12.7Quick Change Artists

17.3Pokemon Theme Music

35.7 MMEvolution of Dance

YouTube TOP 3 (20 nov 2006)

In which (semi-)amateurs startto play for real


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In which (semi-)amateurs start to play for

real

For video, please check

http://www.mobuzztv.com/


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While online media play catchup with traditional outlets

July 2006

(cc) Lynette Webb, 2006


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The biggest player is

The long, long, long, long, long tail

1-200,000 1,000-200,000


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(cc) Lynette Webb, 2006


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Big Six study (US): People with PVRs watch 12% more TV, yet 90%of them adskip (Germany : 88.2%)

78.2% of Germans are irritated by advertising, only 24% actually stillwatches it (GfK Marktforschung)

54% of US consumers avoids products & services which overwhelmwith advertising (Yankelovich Partners)

85% of Chinese stop watching TV during commercial breaks. Morethan half change the channel, while the rest do housework, eat, chator use the bathroom. (McKinsey & Co.)

In 1965, 80% of 18-49 year-olds in the US could be reached with three60-second TV spots. In 2002, it required 117 prime-time commercialsto do the same. (Jim Stengel, Global Marketing Officer, P&G)

A US hour of prime time TV carried 21 minutes of advertising, LateNight network shows like Leno or Letterman carry 31:27 (TNS MediaIntelligence, Q1 2006)

B R A N D S

C O N S U M E R S

RESPONSE


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Australia Romania China/Shanghai Philippines India

Top Graph = ad awareness - Bottom Graph = GRP Weight

ResponseThere is no apparent link between advertising awareness andGRP weight

Illustration based on anonymised examples

Source: Mediafuture SARL

GRPs => Awareness => Karma =>


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of consumers dont believethat companies tell thetruth in advertisements76%

Yankelowich


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The Consumer is a Cat


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Where do we

go from here ?

Part 2:


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THERE IS STILLONE TRUSTEDMEDIUMLEFT IN THEWORLD

MY FRIENDS THEIR FRIENDS AND ALL THOSE WE COLLECTIVELY RESPECT


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Blind FaithCollectivismCommand

Reasoned FaithElective Collectivism

Contract

People are saying: I can no longer rely on a single source of information. The

omniscient, all-powerfull source whether a news anchor, doctor, CEO or government official is gone.

Edelman Trust Barometer, 2006

While institutionaltrust is eroding


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33%

61%55%51%

2003 2004 2005 2006

A person like yourself or a peer

Edelman Trust Barometer 2006When forming an opinionof a company, how

credible would theinformation be from

15Blogger

16PR person17Entertainer

19Union

29CEO

33Regular employee

36Lawyer 53Accountant

58NGO Rep

58Financial Analyst

61Person like yourself/peer

62Doctor or similar

62Academic

%

People Trust People


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People Trust Humans

3Radio

4TV

4Magazines

14Other

14Retailer information

16Product/Company Information

21Internet

25Newspaper Coupons

33Word-of-mouth from family &friends

36In-store demonstration

49In-store Sales Associate%Source

Source: CMO Councils Retail Fluency Report, 2005

Most influential information sources inpurchasing electronic goods? (TOP 3)


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This is not a new hype just an ignored reality

61% trust other people like themselves (as media) - Edelman Trust Barometer, 20062006

Diffusion studies found that WOM is 10x more effective than media advertising2001

Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger than apersonal sales pitch and 2x as effective as radio advertising

1955

36% of surveyed consumers reported learning of an innovation through word-of-mouth, while48% reported being influenced by WOM when making a purchase decision

1967


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Paleolithic(stone) agehunter-gatherer

-2,000,000 -3500

Writing

Print

-500

InformationAge

-50

4000 years of media-revolution cannot undo 2,000,000 of programming

TRIBAL VERBAL DISTRUST OF BIG TRIBES


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The words I write, I speak, I film

The Stories I Tell

RADIO, TV, PRINT, EVENTS, ARE NICE, YET IN MY COMMUNITY

I AM THE MEDIA


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In a million channel world,brands whose consumers

tell the best stories, win


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How to control millionsof inaccurate and

divergentconversations ?

YOU DONTConsumers are beginning in a very real sense to own our brands and participatein their creation We need to begin to learn to let go.

A.G. Lafley, CEO and Chairman of P&G, October 2006(cc) Lynette Webb, 2006


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Brands have to become storytellers, that light thefire and let go


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Brands as StorytellersPart 3:


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Tell me a storythat makes my conversationsmore interesting


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Make it something Ireally care about

Make it fun, credibleand memorable

Make it something Ican easily tell others

Be true, so I dont liketo look like a liar


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If you want them to talk about you make them

LOVE HATEYET NEVER LEAVE THEM INDIFFERENTYOU

Y i i l h h b d l i diff


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Yet it is exactly there that most brands leave consumers indifferent

Customer Satisfaction Averages (scale 0-10)

44% of consumers saythe majority of their Customer Experiencesare bland...


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69% of consumers say emotions count for over half their customer experience

Source data point: strategic resource development group, 2006

RATIONAL

ARGUMENTS

SUPERFICIAL

EMOTIONS

0.3 seconds RATIONAL DECISION MAKING IS AN ILLUSION


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TRADITIONAL SEGMENTATION

ASSUMES EVERYONE FEELS THE SAME

Elsa (Female/urban/mid-income/25-30 years old)

25 29


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It's easy to understand the survival of popular traditional techniques such assyndicated market research, simplistic quantitative surveys, and focus groups, [yet]conventional research methods often gather incomplete information.

McKinsey Quarterly, November 2006

PSYCHOLOGY ANTROPOLOGY NEUROLOGY SIMULATIONS -

TRADITIONAL RESEARCHOFTEN MISSES THE POINT


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Brands people talk about make meaning Beyond Money

CHOOSE YOUR CLASSIC

For Apple video, go to

http://www.youtube.com/watch?v=4oAB83Z1ydE

For Harley video, go to:http://www.harley-

davidson.com/wcm/Content/Pages/Riders/Creed_Video.jsp?locale=en_US&locale=en_US&bmLocale=en_US


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A person like yourself or your peer is seen asthe most crediblespokesperson aboutyour company

Have your customers tell your story

For the jetBlue story videos, please go to

http://www.jetblue.com/experience/index.html?intcmp=story


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THE GREATEST MARKETING STORY EVER TOLD, BY MILLIONS

O i i f th t i


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Origins of the engagement ring

Pope Innocent III

1215Fourth Lateran Council

Birthstones


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BUT WHY THE DIAMONDS ?


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1938Harry Oppenheimer meets Gerold M. Lauk of N.W.Ayer

Cullinan IX


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1938 19531948 1990s

Cullinan III & IV

Europe


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For Marilyn Monroe video, go to

http://www.youtube.com/watch?v=p0FDGnAIWpk


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The Result

Word of mouth to the point of becoming cultural tradition

1 The Beers Goes Japan

1978 Diamonds for 50% of Japanese Brides1981 Diamonds for 60% of Japanese Brides

Case Study: Japan

Make it funcredible andmemorable


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HemingwayVan GoghChabrolSartre...


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Opinion Leaders Customers EmployeesSuccesses - Failures - Reports - MilestonesCEO Founder Products -

And the best news:

You dont even need to be creative


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Its the steak,not the sizzle baby

The key drivers for trust & closeness are


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1010101010Employee or CEO blogs

89489A visible CEO

98688Dialogue with all stakeholders

57864Well-known corporate brand

65557Socially responsible activities

65976Strong financial performance

44335Good employee and labour relations

33743Fair pricing for products & services

22211Attentiveness to customer needs

11112Quality of products & services

ESPITADEUFRAUK

Based on: Edelman Trust Barometer, 2006 attributes for building trust

The key drivers for trust & closeness arequality & service

Yet still, most consumers are left indifferent


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Customer Satisfaction Averages (scale 0-10)

44% of consumers saythe majority of their Customer Experiencesare bland...


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In fact, if asked, they mostly wont recommend a brand

BTW: The same often applies to the people working for the brand themselves

Telecom Europe = - 48%

Profusion, 2005

WE PROMISE ONE THING AND DO


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SOMETHING ELSE

90% of businesses are unable to execute

the strategy they have on paper as

only 5% of the workforceunderstands what the strategy is

60% of organisations do not linkbudgets to strategy

70% of organisations do not linkmanagement incentives to strategies

85% of executive teams spend lessthan 1 hour per month discussing

strategy

95% of senior businessleaders say Customer Experience is the nextcompetitive battleground yetnothing happens.


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THE CHOICE

If you want to influence WOM you have to convinceyour organisation to deliver what you promise

Be true,so I dont look

like a liar

In which the first step to take is confront reality


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STAFF CUSTOMERS SUPPLIERS CONSUMERS


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Tell me a storythat makes my conversationsmore interesting

In which you can estimate the value you generate, so


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3Radio

4TV

4Magazines

14Other

14Retailer information

16Product/Company Information

21Internet

25Newspaper Coupons

33Word-of-mouth from family & friends

36In-store demonstration

49In-store Sales Associate%Top 3 Purchase InfluencersGood Experience

I tell 4 people

Anonymous Case:UK Consumer

Electronics

Bad ExperienceI tell 18 people

Average Sale 230

you can even make a business case for your boss


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YET REMEMBER

You can not control WOM only influence it.


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