Dancing with Megaphones

The 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 .

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 .

#fail .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 .

Megaphone 2: Mobile connectivity Flickr: Susan Ford Collins .

Cell phone owners 85% adults All adults 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Ages 18-29 Ages 30-49 Ages 50-64 Age 65+ 96% 90% 85% 58% .

Mobile internet connectors 57% adults All adults 70% Whites Blacks Hispanics 60% 50% 62% 59% 55% 40% 30% 20% 10% 0% .

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 .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.

Consequences for info ecosystem Place Anywhere Presence Any device .

Dramatically More Cross-Platform / Media-Mixing 59% of Americans use TV and the Internet Simultaneously Source: Nielsen Three-Screen Report .

So what for brands? Attention zones Continuous partial attention Deep dives Info-snacking Media zones Social Immersive Streams Creative / participatory Study / work .

Megaphone 3: Social networking Flickr: Susan Ford Collins .

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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 ecosystem Social networks as sentries (WOM) .

Consequences for info ecosystem Social networks as information evaluators .

Consequences for info ecosystem Social networks as forums for action .

Implications Pete Blackshaw Webshots: lauryn6842 .

automated response/recording Reading company's Facebook page Sending photo or video to company Posting on the company's Facebook page Texting the company via mobile device Source: Nielsen Consumer Channel Preference Study 09 Discuss New products Complain Get Advice Make a Reco.With Dramatically Different Channel Preferences Question: Those who would contact the company to« Email Call a live representative FAQ on company website Post an opinion or question on company website IM through the company's website Posting on a company message board Posting on a blog sponsored by that company Telephone . Crisis 96 94 94 87 81 77 68 57 55 53 50 36 97 95 NA 80 78 69 61 57 NA 48 42 34 94 92 92 77 78 71 64 62 53 48 47 40 96 90 NA 82 76 74 68 59 NA 51 47 37 76 95 74 48 71 47 41 52 36 41 31 41 .

5 brands in mind. based on packaging and sampling INITIAL CONSIDERATION: Consumer starts with 1.2 brands. and this engagement has a meaningful impact on the likelihood of repeat purchase 19 . and makes decision based largely on information learned before shopping POST-PURCHASE EXPERIENCE: 66% of consumers engage with their brand after purchase (e. the consumer has evaluated only 3.Implication: A New Consumer Decision Journey to Manage ACTIVE EVALUATION: The consumer adds 1. online research). influenced by previous trial and word of mouth PURCHASE: At the moment of purchase.7 more brands to consideration..g.

Where Social Media Fits in to the Mix Most influential touchpoints Store/agent/dealer interactions Prior brand/ product experience Consumer-driven marketing    Word of mouth Online research Offline/print reviews 12 26 43 28 10 5 21 37 31 Company-driven marketing     Traditional advertising Direct marketing Sponsorship In-store advertising 39 26 22 Moment of Purchase Initial Consideration 24 Active Evaluation Friending the Social Consumer .

Brand Credibility More Important Than Ever Six Drivers of Brand Credibility Trust Confidence Consistency Integrity Authority Authenticity As Advertised Real & Sincere Real People Informal Transparency Let the Sun Shine In Easy to Learn Easy to Discover No Secrets Affirmation Playback Reinforcement Search Results Accountability Listening Responsiveness 24 Follow-Up Empathy Welcome Mat Invitational Marketing Humility (we can learn) Solidifying the Solution Absorbing Feedback Dignifying Feedback .

Implication: Bold New Questions for Companies Issue Credibility Influencer Management The Big Question How to manage and protect credibility and trust in a highly transparent. and Earned Media 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. Listening & What are the right listening & measurement protocols to drive Measurement accountability. feed engagement strategy & investment? . recognizing that social media breaks down geographic and organizational barriers. 24/7 feedback environment? How to extend the notion of key influencer management to everyday consumers and even employees? Cultivating How to generate earned media from customer service.

Implication: Death (or erosion) of Web Sites Social Commerce Ecosystems Facebook LinkedIn Website Twitter MySpace .

Implication: New and More Holistic Rules of Engagement Brand Backyard Common Consumer Backyard Consumer Relations Branded Media Channels Forum / Communities Consumer Outreach Influencer Outreach Brand Site Contact Center E-mail Phone Web Site Engagement Blog Chat. LinkedIn 3rd Party Consumerist Edmunds WebMD TechCrunch 43 . SMS Phone Rate & Review Communities User-Contributions Ratings & Reviews Co-Creation Platforms Twitter Facebook YouTube Flickr.

Implication: From Selling to Service Pizza Hut Ben & Jerry s Kraft Hershey s Dunkin Donuts Convenient pizza ordering experience Experience B& J through peace. milk experience at anytime Communicate with coworkers for coffee runs Relevance to BP Price Finders Product Info Travel Services Environmental Info . Simulate your favorite choc. love and ice cream Discover recipes for any occasion.

Implication: Rise of Consumer Cartels .

Implication: Massive Levels of Retailer Innovation Can BP empower its franchises and/or products around innovation? Source: Company websites. Progressive Grocer & Pittsburgh Post-Gazette .

Deliberate effort to shape and monitored social media manage messaging .Implication: The Rise of Real-Time 24/7 Real-Time War Room 24/7 Engagement Listening Beyond Borders Listening tools cover multiple languages & regions All aspects of integrated. brand.

Looking Ahead Source: Nielsen .

choices 34 . rewriting rules + shifting attention from websites Redefining consumer retailer interactions. What It Means Social earned media & paid media become more intertwined New devices and multi-tasking abound Extends mass socialization & extends media to point of sale Disruptive growth in apps. all eyes to wireless devices More filtering/control of apps. friends. powered by GPS. heightened scrutiny Increased access and speed expand digital opportunities Dramatic consumer habit change.Near TermAhead / Next? What s Trends for 2011 Trend Mass Socialization Platform Proliferation Mobile Comes of Age Apps Everywhere Dominance of Facebook Rise of Social Commerce Relevance & Privacy Infrastructure Growth Heads Down Generation Digital Downsizing What It Is. etc Cautious advance to addressability. followers. fueled by games and service utilities A juggernaut.

Owned. especially crisis 35 . Creative. More Empowered/Linked & More Sophisticated Friction-free and seamless (already in play with iTunes) Creating huge opportunities .Longer Term Trends & Disrupters What s Ahead / Next? Market Trends Digital & Social Mobile Disruption Activism & Social Media Payments and Fees Globalization of Social Description From separate roles to unified and integrated (now one & the same) Re-setting the entire landscape Smarter. Earned Moving to Community Manager Roles & Responsibilities Dramatic expansion beyond marketing channel innovations New synergy between marketing & operations Social prompting greater integration from agencies & suppliers Practice of immediately responding to key issues.and huge operational challenges Organizational Trends Description Media Blending Brand Managers Enterprise SM Marketing + Service Agency Integration Speedbacking Increasingly sophisticated: Paid.

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! .

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