razorfish digital brand experience

FEED: The 2009 Razorfish Digital Brand Experience Report

Garrick Schmitt, Group Vice President, Experience Planning Email: garrick.schmitt@razorfish.com Twitter: @gschmitt

Conventional Wisdom Says Advertising Is Failing...

2 

Page 3  © 2009 Razorfish. All rights reserved. 

76% of people think companies lie in ads

77% trust companies less than they did last year

38% of people believe companies will do what is right

15% of people enjoy the ads as much as the programs

2008 Vizu Answers, 2009 Yankelovich, 2009 Edelman Trust Barometer, 2009 Edelman Trust Barometer, TGI, HT Spike Jones, Brains On Fire. 

Worse? 83% Of Mad Men’s Time-Shifted Audience Fast Forwards Through The Commercials TIVO, September 25th, 2009 

But It’s Not That Advertising Is Failing…It’s That Experiences Matter More Than Ever Before.

5 

6 

HELLO

How Do Consumers Engage With Brands In An Increasingly Digital World?

8 

THE DETAILS

Meet The “Connected Consumer”

In August 2009 Razorfish surveyed 1,000 U.S. “connected consumers”*:

•  Broadband access

•  Spent $150 online in the past six months (travel, Netflix, tickets, Amazon, etc.)

•  Visited a community site (MySpace, YouTube, Facebook, Yelp, etc.)

•  Consumed or created some form of digital media such as photos, videos, music or news

WHAT IS YOUR AGE?

WHICH OF THE FOLLOWING BEST DESCRIBES YOUR COMBINED HOUSEHOLD INCOME?

9 

* This equates roughly to the U.S. broadband population which is about 200m based on the Pew Internet and American Life Project.

READ THIS

Yes, You Can Build A Brand Online. You Have No Choice

Marketers have never thought of digital as a wonderful place to build a brand, but they should:

•  65% of consumers have had a digital experience change their opinion about a brand

•  97% of them report that experience influencing whether or not they purchased a product or service from that brand

HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS?

HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?

11 

Actions Speak Louder Than Advertising Branded experience are the new advertising. And consumers are increasingly hungry for them, sometimes ravenously so:

•  97% have searched for a brand online

•  77% have watched a commercial on YouTube

•  69% have read a corporate blog

•  65% have played a branded, browser-based game.

•  73% have posted a product or brand review on a site like Amazon, Facebook or Twitter

PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:

12 

Brand Culture Or Fan Culture?

Conventional wisdom holds that consumers don’t want brands encroaching on their social lives – but that’s just not true:

•  76% of consumers welcomed brand advertising on social networks (FEED, 2008)

•  40% of consumers “friended” a brand on Facebook and/or MySpace

•  26% of consumers have “followed” a brand on Twitter

HAVE YOU EVER “FRIENDED” A BRAND ON FACEBOOK OR MYSPACE?

HAVE YOU EVER FOLLOWED A BRAND ON TWITTER?

13 

The Outlet Malls Of Tomorrow? Facebook, MySpace & Twitter Marketers shouldn’t assume that consumers are as passionate about their brands as they are: Consumers don’t want a conversation with brands – they want deals.

14 

•  44% of consumers who follow a brand on Twitter do so for deals

•  37% of consumers who “friended” a brand on Facebook and/or MySpace do so for deals

WHAT IS THE PRIMARY REASON YOU FOLLOW A BRAND ON TWITTER?

Bottom Line: Digital Brand Experiences Create Customers Digital is not simply an “awareness” or CRM play, it’s a customer-creation play. The overwhelming majority of consumers who engage with a brand online move from passive “receivers” to advocates almost instantly :

15 

•  97% report increased brand awareness

•  98% show increased consideration

•  97% will more likely purchase a product

•  96% may recommend the brand to their friends

WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING:

16 

DIGITAL PRIMACY

Consumers Turning First, Foremost To Digital

According to Forrester consumers now spend nearly as much time online as they do watching TV*. We found that their technical fluency is far greater than most believe:

•  57% of consumers actively customize their homepages

•  84% share links or bookmarks

•  55% subscribe to RSS feeds

•  33% get their news from Facebook

•  20% get their news from Twitter

PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:

17 

*Forrester 2009 North American Technographics Survey

Mobile Internet Service Use Skyrocketing Mobile Internet services are being consumed broadly. Majority of consumers own a smartphone and use it actively.

18 

•  57% access the Internet from their phone

•  50% have downloaded an app for their phone

•  30% have interacted with an ad banner on their phone

WHAT TYPE OF SMARTPHONE DO YOU HAVE?

Connected Consumers Are The New Mainstream

19 

THE TECHNOLOGY ADOPTION CURVE

20 

BRAND CULTURE

Are Consumers Really In Control?

Conventional wisdom says that every generation of consumer grows smarter, shrewder and more immune to marketing. But that’s not true – consumers are actively choosing to engage with brands, everywhere.

•  40% have “friended” a brand on Facebook and/or MySpace

•  26% have “followed” a brand on Twitter

•  77% have watch an advert on YouTube

•  69% have read a corporate blog post

•  73% have posted a review of a brand on a site like Amazon or Yelp

•  52% have blogged about brand’s product or service

PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING:

21 

Facebook And Twitter Creating Fan Culture For Brands

After deals, the main reason consumers “friend” a brand? Because they *really* are a fan (or a customer, at least). Social media platforms are proving to be customer service platforms.

•  33% friend a brand on Facebook/ MySpace because they are a customer

•  24% follow a brand on Twitter because they are a current customer

•  23% follow a brand on Twitter for “interesting or engaging” content, which shows promise for a new type of relationship

WHEN YOU “FRIEND” A BRAND ON FACEBOOK OR MYSPACE, DOES IT GENERALLY DO THE FOLLOWING?

WHEN YOU FOLLOW A BRAND ON TWITTER, DOES IT GENERALLY DO THE FOLLOWING?

22 

Fans And The Future Of The Marketing Funnel

Brand culture and fan culture are dramatically reshaping the traditional funnel as consumers leap from experience to advocacy (or the inverse) almost instantly.

•  70% have participated in a brand-sponsored contest

•  24% have produced content to participate in a contest

•  26% have attended a brand sponsored event, such as Nike’s Human Race

•  24% have downloaded a branded application for their mobile phone

HAVE YOU EVER PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES?

WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING?

23 

Experiences Not Only Build Brands, They Make Or Break Them

Amazon, Google, Facebook, Apple and Nike are all experiential brands that know consumer preference isn’t formed in reaction to a message, but to a series of experiences over time. There’s good reason. Of consumers who interact:

•  97% report increased brand awareness

•  98% show increased consideration

•  97% will more likely purchase a product

•  96% may recommend the brand to their friends

24 

25 

THE BOTTOM

LINE

Getting To The Bottom Of Brand Engagement

Everyone is chasing after a metric to define brand engagement. Millward Brown says “digital consumers” have 15% stronger relationships with brands. The Altimeter Group attempts to correlate social media activity to financial performance, citing Dell, Starbucks and eBay as leaders.

We at Razorfish took a different tack: we simply wanted to know if there was any direct correlation between a consumer’s digital interaction with a brand and their likelihood to purchase a specific product or service.

26 

Digital Experience Create Customers The answer was a resounding “yes”. Experiences have a much greater influence over brand affinity and consumer purchasing than even we anticipated:

•  65% of consumers have had a digital experience change their opinion about a brand.

•  97% of those report that experience influencing whether or not they purchased a product or service from that brand.

•  64% of consumer report making a first purchase from a brand because of digital experience (e.g. website, banner, etc.)

HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION (EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS AND SERVICES IT OFFERS

27 

HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A PRODUCT OR SERVICE FROM THE BRAND?

HAVE YOU EVER MADE YOUR FIRST PURCHASE FROM A BRAND BECAUSE OF A DIGITAL EXPERIENCE (E.G., A WEB SITE, MICROSITE, MOBILE COUPON, EMAIL)?

Five Brands That Are Excelling In An Experience-Driven World…

1. UNIQLO: Japanese Retailer Surprises And Delights Audiences With Every Interaction

29 

30 

2. Red Bull: Pioneered Experiential Marketing With Subversive Events And Sponsorships

31 

3. Barbie: Reinvented An American Icon For The Pop Sugar Set And Broke Sales Records

32 

4. Nike: Human Race. Chalkbot. Nike Is Setting A New Standard For Experiential Marketing

33 

4. Virgin America: Brand Built By Breakthrough Experiences – And The Marketing Of Them

34 34

5. Microsoft’s Bing: Accomplishing The Impossible By Putting Experience First And In Every Ad

Thank You

Garrick Schmitt, Group Vice President, Experience Planning Email: garrick.schmitt@razorfish.com

Twitter: @gschmitt