The Converged Media Imperative

1. Bazaarvoice March 6, 2013 Bazaarvoice Summit The Converged Media Imperative: How Brands Must Combine Paid, Owned & Earned Media Rebecca Lieb Digital Advertising & Media Analyst

2. As consumption habits shift, brands require media ubiquity The average consumer sees c. 3,000 brand impressions daily. Media are converging and will continue to. Brands are challenged to intercept elusive customers, regardless of medium, channel or time of day

3. Converged Media Permutations 5 FACTORS 3 FACTORS 5 FACTORS 5X3X5=75 awareness consideration intent purchase support loyalty advocacy 5 factors 3 factors 5 factors 75X7=525

4. Digital Paid, Owned, and Earned media Website Display, banner ads Microsites Sponsored posts, ads Blogs PPC ads Pay per post blogging

5. Now, let’s define Converged Media • Two or more channels of paid, earned, and owned media. • Consistent storyline, look, and feel. • All channels work in concert, enabling brands to reach customers throughout the customer journey © 2012 Altimeter Group

6. What does this look like on Facebook? Paid Owned Earned

7. What does this look like on Twitter? Owned Paid Earned

8. Converged Media Example: Earned + Paid Earned Paid Bazaarvoice deploys paidads with earned user ratings and reviews. Microsoft advertises with transparency; shoppers click to learn more from their peers.

9. How Successful Brands Deploy Converged Media © 2013 Altimeter Group

10. Sharpie lets its fans do the copywriting, promotes tweets as ads Targeting teens interested in creativity and self-expression, Sharpie used Promoted Tweets. Through Promoted Accounts, they attracted an artistic following whose tweets were turned into Promoted Tweets. The campaign helped Sharpie increase its following 6X at 1,000 followers per day.

11. Content Creators: Superfans spend ~33 hours per week in Sephora’s Beauty Talk community customer spending average customer 2.5x community user 10x superfan

12. Canon leverages owned microsite to drive tremendous earned response • Canon leveraged owned platform (Imagin8tion) for a contest in which winners’ photos (earned) inspire a Ron Howard short film. • 1.7 million YouTube channel views • 138,000 photo submissions • 21,000 votes cast • 23,000 posts • 192 press mentions, 415 blog mentions • 40% increase in positive sentiment © 2013 Altimeter Group

13. Nike crowdsources input for customized shoe designs, merges media online and off- Nike launched the NikeID campaign (store, mobile app, community, etc.) to enable customers to design their own shoe and purchase it directly on their mobile devices. Earned input inspires owned assets (including the product itself!), driving paid ads, online and off— including interactive billboard experience in Times Square. © 2013 Altimeter Group

14. Threadless customers submit, vote, and shop for crowdsourced t-shirt designs

15. Jones Soda crowdsources label design with photo contest Jones Soda asks customers to submit photos that represent a “Jones attitude”

16. GiffGaff conquers traditional service overhead, online community answers 100% of customer inquiries • GiffGaff, a small UK-based mobile virtual network operator with only 25 employees has national coverage, but no call center. Instead, the community receives pre-pay credits and badges for contributions. • Community has provided +1M replies • Users have produced >146 videos, >500k views • Users have submitted >9k ideas, 270 have been implemented • 95% of queries are resolved within 1 hour • Average response time: 3 minutes • Top earning giffgaffer earned over £13k, paid for university © 2013 Altimeter Group

17. Glidden Paint employs a wide palette of channels, converging mediafor a streamlined brand experience © 2013 Altimeter Group

18. Enterprise tech company paysinfluencers to ignite earned, drive traffic to owned 128 Pieces of content created by influencers 24 Influencers commissioned to create content 1.1m Social interactions 9,314 Average actions per piece of content The company paid influencers to share content Across their networks © 2012 Altimeter Group

19. ClearChannel integrates online and offline channels to ‘make the audience the media’ Converging media via digital billboards, gesture recognition, and social media interaction, ClearChannel combines offline media with online to drive attention, engagement, (advertiser interest), and a summer-long sweepstakes.

20. Converged Media Success Criteria © 2013 Altimeter Group

21. Brands that do not integrate paid, owned and earned media types are at a disadvantage Fragmented messaging, inconsistent branding Redundant efforts, no communication/ collaboration Departments competing for budget Low customer engagement/advocacy Convergence begins to occur in traditional media

22. Altimeter identifies 11 criteria to successful converged media deployment

23. Strategy: Understand Converged Media Brand marketers must first possess an understanding of the changing forces of converged media: Emerging practices Content types Technologies Channels News, media, current events Behavioral trends Other trends specific to audience © 2012 Altimeter Group

24. Strategy: Plan a Stable Foundation Two legs (or media channels) may hold up the converged media strategy, but stability and balance is achieved when design incorporates all three. Deploy all three media type in harmony, integrating each to instruct the next The insights that come with analyzing earnedinstruct where to amplify using paid and where to innovate in owned Owned media provides the platform upon which earned and paid can exist and is foundational to the brand presence and messaging, which inspires earned Paidmedia helps drive volume to owned and earned channels, and ultimately what amplifies the brand message. © 2012 Altimeter Group

25. Organization: Ability to Achieve Earned at Scale Earned is the most difficult medium to achieve, particularly at a significant scale. Essential both to build and nurture earned media is: • Content strategy, consistent brand messaging • Listening & measurement tools • Publishing tools • Inter-agency/ vendor communication • A fundamentally agile approach • An ongoing effort © 2012 Altimeter Group © 2012 Altimeter Group

26. Organization: Align Teams & Departments Brands MUST overcome the cultural silos that exist internal to the organization, aligning in a number of historically autonomous areas: • Ownership/ governance • Communication • Collaboration/ creative design • Campaign goals • Budget © 2012 Altimeter Group © 2012 Altimeter Group

27. Organization: Align Agencies & Vendors Each will have individual areas of specialization and expertise, yet full-picture visibility is essential for all partner companies. Brands must play moderator and facilitate: • Communication • Collaboration/ creative design • Campaign goals, KPIs • Performance incentives © 2012 Altimeter Group © 2012 Altimeter Group

28. Production: Aligned Content / Creative Across Channels Design, voice, message, branding, and other creative elements must be consistent: • Agreement/ alignment across stakeholders from day one • Across all channels and touchpoints • Singular brand message, no matter the media • Natural extension of organizational and partner alignment

29. Production: Real-time Capabilities To be effective in converged media is to be agile. Brands must enable: • Proper labor resources • Proper tools • Stakeholder buy-in • Communication channels between stakeholders • Content marketing strategy • Empowerment to act, particularly in Earned media

30. Production: Channel Flexible The empowered and dynamic customer has choices in how they consume; brands must extend presence across: • Multiple channels, platforms • Multiple touchpoints • Not JUST mainstream channels, instead following their customers • Demographic-specific hang-outs

31. Production: Influencer Relations In the digital age, brands cannot ignore influencers, as they can amplify the message (positive or negative) across all media types: • Touting or shaming product/ service in unprompted Earned setting • Acting as the voice of a Paid campaign • Offering guidance or advice on Owned platforms • Influencers are key to helping build Earned at scale

32. Analysis: Social Listening / Analysis of Crowd Social listening, monitoring and measurement are key for substantiating agility. Brands must: • Have systems and process in place to listen, measure, respond • Let conversation instruct creative design, strategy • Use insights to be proactive • Allow insights to facilitate personalization/ resonance © 2012 Altimeter Group

33. Analysis: System for Identifying & Measuring KPIs Metrics are the foundation from which investment potential is established, understood, optimized, and realized: • The system for identifying KPIs must instruct the ongoing measurement itself • Metrics should be established at the outset… but can evolve • Metrics may shift based on segment, platform, campaign assets, goals,even cultural events, etc. © 2012 Altimeter Group

34. Workflow: Coordinating Paid + Owned + Earned © 2012 Altimeter Group

35. Execution Workflow: Coordinating Paid, Owned, and Earned as one orchestration © 2012 Altimeter Group

36. Periodic Strategic & Analysis Reporting Investigate what’s happening in Paid, Owned, Earned channels What instructs what? Listen to and observe customers and prospects Listen to competitors What their customers say How they respond

37. Content Strategy What message represents, reflects, speaks for the brand? Understand how content strategy varies: Persona segments, product type, geography, channel, screen, source of information Spans many stakeholders; internal depts. and external agencies

38. Publication Across Channels To execute across channels, brand must define: Governance, engagement plan(s), communication, internal collaboration, series of meetings, designated leader, tools to support Agency and brands are increasingly adopting collaborationtools spanning multiple teams Growing ecosystem of tools CMS, Media Network Mgmt, SMMS, etc.

39. Engagement Teams must identify hot paths and hot conversations where content is resonating Trigger further discussion via: Content Experts, Community Managers, Product Leads, Executives Advocates and influencers Also partake in ongoing discussion and monitoring

40. Amplification Leverage converging media Use Paid to amplify Earned and Owned And Earned to amplify owned and paid… And Owned to amplify earned and paid… Explore new ad and promotion types via owned and earned Social ads, UCG New aggregation platforms Tap into social graph by allowing those involved to share with their networks

41. Restructuring Messaging must evolve and change in real-time to meet the needs and changes of the market Leverage emerging tools for customer collaboration Staying on-message vs. taking new positioning? Involve customers in the process; be innovative

42. Measurement a baseline requirement across all phases • Conduct in real-time to allow for rapid iteration • Communicate progress to company via simple reporting • Daily wrap-ups, trend diagrams, real-time tickers

43. Then the cycle repeats… © 2012 Altimeter Group

44. Putting the Pieces Together © 2012 Altimeter Group

45. We asked brands, agencies and vendors to rate the maturity of the Converged Media ... Respondents rated the maturity of the Paid, Earned and Owned space on a scale of 1-5, where 1 is Very Immature and 5 is Very Mature. © 2012 Altimeter Group

46. Summary Converged is here. Facebook and Twitter ads are proof.  Those who take advantage now will have an edge. It's not easy. Immense internal change must occur as lines blur, both internally and with agency partners Leverage data and platforms that propel campaigns forward by aggregating ad data, corporate content, and social, then derive analytics. Converged media is rapidly bleeding into offline channels and also creates demands for real-time marketing capabilities As consumer gadgets and devices and media channels proliferate, this will only become more complicated

47. THANK YOU Rebecca Lieb rebecca@altimetergroup.com rebeccalieb.com/blog Twitter: lieblink With assistance from Jessica Groopman, researcher Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.