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,
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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 Vibrance Velocity 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 All adults Ages 18-29 Ages 30-49 Ages 50-64 Age 65+ 96% 90% 85% 100% 90% 80% 70% 60% 58% 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 Mobile internet connectors – 57% adults All adults Whites Blacks Hispanics 70% 60% 50% 40% 30% 20% 10% 0% 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 Place Anywhere Any device Presence 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 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 With Dramatically Different Channel Preferences Discuss New products Complain Email 96 97 Call a live representative 94 FAQ on company website Question: Those who would contact the company to… Make a Reco. Crisis 94 96 76 95 92 90 95 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 Get Advice Implication: A New Consumer Decision Journey to Manage ACTIVE EVALUATION: The consumer adds 1.7 more brands to consideration, based on packaging and sampling INITIAL CONSIDERATION: PURCHASE: ▪ Consumer starts with At the moment of purchase, the consumer has evaluated only 3.2 brands, and makes decision based largely on information learned before shopping 1.5 brands in mind, influenced by previous trial and word of mouth POST-PURCHASE EXPERIENCE: 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 19 Where Social Media Fits in to the Mix Most influential touchpoints Store/agent/dealer interactions 12 26 43 Prior brand/ product experience 28 10 Consumer-driven marketing Word of mouth Online research Offline/print reviews 5 21 37 31 Company-driven marketing Traditional advertising Direct marketing Sponsorship In-store advertising 39 Initial Consideration 25 26 22 Active Evaluation Moment of Purchase Friending the Social Consumer Brand Credibility More Important Than Ever Six Drivers of Brand Credibility 24 Trust Authenticity Transparency Confidence Consistency Integrity Authority As Advertised Real & Sincere Real People Informal Let the Sun Shine In Easy to Learn Easy to Discover No Secrets Affirmation Listening Responsiveness Playback Reinforcement Search Results Accountability 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 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 How to generate earned media from customer service, 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, recognizing that social media breaks down geographic and organizational barriers. Listening & What are the right listening & measurement protocols to drive Measurement accountability, feed engagement strategy & investment? Implication: (or erosion) of Web Sites SocialDeath Commerce Ecosystems Facebook LinkedIn Website MySpace Twitter Implication: New and More Holistic Rules of Engagement Brand Backyard Consumer Relations Brand Site Contact Center E-mail Phone Web Site 43 Branded Media Channels Engagement Blog Chat, SMS Phone Rate & Review Common Consumer Backyard Forum / Communities Consumer Outreach Communities User-Contributions Ratings & Reviews Co-Creation Platforms Twitter Facebook YouTube Flickr, LinkedIn Influencer Outreach 3rd Party Consumerist Edmunds WebMD TechCrunch Implication: From Selling to Service Pizza Hut Convenient pizza ordering experience Ben & Jerry’s Experience B& J through peace, love and ice cream Kraft Discover recipes for any occasion. Hershey’s Simulate your favorite choc. milk experience at anytime Dunkin Donuts Communicate with coworkers for coffee runs Relevance to BP Price Finders Product Info Travel Services Environmental Info 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 Implication: The Rise of Real-Time 24/7 Real-Time War Room 24/7 Engagement All aspects of integrated, brand- Deliberate effort to shape and monitored social media manage messaging Listening Beyond Borders Listening tools cover multiple languages & regions Looking Ahead Source: Nielsen Near TermAhead Trends /for 2011 What’s Next? 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 Longer Term Trends/ &Next? Disrupters What’s Ahead 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 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 36 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!