measuring roi for transmedia

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Robert Pratten Founder, TransmediaStoryteller.com 26 th October 2010 Presentation to Spoilrr Meet-up Group San Francisco, California Measuring RoI for Transmedia Storytelling

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Some wonder why they should give away free content or experiences if it's only enjoyed by those who will buy the paid content anyway. This presentation describes an approach to cost-justifying free content and experiences and explains why it's a good investment in customer relationships. More in this doc: http://www.transmediastoryteller.com/community/content/5/58/audiences-engagement-and-content-strategy-for-transmedia-storyt

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Page 1: Measuring RoI for Transmedia

Robert PrattenFounder, TransmediaStoryteller.com

26th October 2010

Presentation to

Spoilrr Meet-up GroupSan Francisco, California

Measuring RoI for Transmedia Storytelling

Page 2: Measuring RoI for Transmedia

About me

Page 3: Measuring RoI for Transmedia

This presentation

• Intro to transmedia: basic concepts– what is transmedia storytelling?– types of transmedia storytelling– why is "transmedia“ so popular?

• Measuring RoI in Transmedia– Cost-justifying “free” content– The $ value of advocacy

Page 4: Measuring RoI for Transmedia

Part 1: Introduction to Transmedia

Page 5: Measuring RoI for Transmedia

Transmedia storytelling

…is telling a story across multiple media and, if possible, with audience participation, interaction or collaboration…

...with each product or experience satisfying in its own right

…and consumption of each additional media heightening the audience’ understanding, enjoyment and affection for the storyworld.

Page 6: Measuring RoI for Transmedia

Transmedia storytelling

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Narrative space

CURREN

TN

EW

PLACE

story

Page 8: Measuring RoI for Transmedia

Story and storyworld

Page 9: Measuring RoI for Transmedia

Harry Bosch (Author: Michael Connelly)

Los Angeles

Rodney King

Harry Bosch

The FBI

LAPD

Eleanor Wish

LA Times

Crime (Homicide)

Mickey Haller

“The

Myt

hos”

–e.

g. th

e St

oryw

orld

Fictional World Past & Present

Book A

Book B

Book C

http://en.wikipedia.org/wiki/Michael_Connelly

Real World Past & Present

Page 10: Measuring RoI for Transmedia

Franchise transmediamultiple platforms create a collection of individual experiences

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Types of Transmedia

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Portmanteau transmediamultiple platforms contribute to a single experience

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Mix & match of transmedia types

ARG

Comic Book Feature Film

Page 14: Measuring RoI for Transmedia

Why Transmedia

• Millennials/GenY expect it:– simultaneous multi-platform consumption of media– multiple media

• More audience touchpoints & improved engagement in world exploding with content:– address discovery & attention; piracy; UGC

• Increased advocacy (more later...)• Consumers actively avoiding ads: therefore brands

seeking truly engaging experiences• Exciting and fun: oceans of uncharted water to explore

Page 15: Measuring RoI for Transmedia

Transmedia Tao

Page 16: Measuring RoI for Transmedia

Part 2: Measuring RoI

Page 17: Measuring RoI for Transmedia

Measuring RoI for Transmedia Storytelling

“how do we cost-justify the content and experiences we give away for free?”

Page 18: Measuring RoI for Transmedia

Assumptions

• Other products or services sold to generate revenue• The free content and experiences are sharable• Not an isolated give-away but an on-going relationship

with audience/consumers• There is a content strategy: you know who each piece

of content is intended for and how it will be used

Page 19: Measuring RoI for Transmedia

Multi-platform strategy

Spread, Attention and Credibility

Reve

nue

GoodPoor

Goo

dPo

or

YouTube

App StoreOfficialsite

piracy

Page 20: Measuring RoI for Transmedia

Content that’s designed for a purpose

Page 21: Measuring RoI for Transmedia

Determine goals

• Awareness• Advocacy• Sales• Insights

Page 22: Measuring RoI for Transmedia

Cost-justifying the investment

• Awareness– Comparison with other methods (e.g. paid ads)

• Advocacy– Net Promoter (word-of-mouth economic framework)– Customer Value Matrix

• Sales– New revenue from new customers– New revenue for existing customers

• Insights– reduced cost of product development– reduced cost of scrapped

Page 23: Measuring RoI for Transmedia

Awareness

Page 24: Measuring RoI for Transmedia

Awareness

• Awareness is measured by recall• Recall is significantly higher for rich media

than for TV or banner ads• In measuring cost-effectiveness, the question

is “how much do I need to spend for the same level of recall?” (e.g. not for number of views)

• Free content lives on long after paid advertising has been spent and replaced

Page 25: Measuring RoI for Transmedia

Recall comparisons

Page 26: Measuring RoI for Transmedia

Advocacy

Page 27: Measuring RoI for Transmedia

Net Promoter Word-of-Mouth Economic Framework

Net Promoter is another approach to measuring the ROI in empowering advocates. The methodology places customers along a spectrum from Detractor (negative word-of-mouth) through to Promoter (positive referrals).

Page 28: Measuring RoI for Transmedia

Calculating a Customer’s Worth

Page 29: Measuring RoI for Transmedia

Customer Value Matrix (Harvard Business Review)

low high

low

high

Cust

omer

’s Li

fetim

e Va

lue

Customer’s Referral Value

Affluents Champions

Misers AdvocatesDon’t buy a lot but are

strong marketers

Buy a lot but don’t market well

In the Harvard Business Review (HBR) article How Valuable is Word of Mouth?, researchers found that a company’s most valuable customers were those whose word of mouth brought in the most profitable new customers regardless of how much they bought themselves. Well-designed transmedia will have the impact of increasing referrals (and hence customer value) in all segments, effectively converting the least valuable Misers into Advocates and Affluents into Champions.

Page 30: Measuring RoI for Transmedia

Why Should Free All Be Spreadable?

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The Consumer Funnel

brand awareness

brand consideration

brand preference

buying intention

purchase

customer advocacy

customer loyalty

brandimage

emotional response

attitude towards rich media

consumer sees rich media

love the media

share/remix

contentcreation

cons

umer

funn

el*

*Borrowed from Elaboration Likelihood Model, Richard E Petty and John T Cacioppo

Page 32: Measuring RoI for Transmedia

Cost-justification

customer advocacy

customer loyalty

brandimage

emotional response

attitude towards media

consumer sees rich media

love the media

share/remix

contentcreation

brand awareness

brand consideration

brand preference

buying intention

purchase

A. Comparison with other media in terms of basic awareness generation.

B. Calculating the word-of-mouth referral and customer lifetime value (CLV) benefits.

Page 33: Measuring RoI for Transmedia

Free content & experiences are social media (e.g. meant to be shared)

• Uncreative or clumsy attempts to motivate audience to “buy now” destroy the social capital inherent in forwarding content to a friend and hence significantly damage its chances of spreading

• Capturing sales will be best accomplished by combining marketing methods.

• Calls-to-action in free content should offer prospect of further engagement - directing audience to homepage where new calls-to-action motivated the buy.

Page 34: Measuring RoI for Transmedia

Does free content generate sales?

• impression-based & rich media advertising influenced purchasing decisions as many as 30 days out from the actual sale

• click-through rates were 22% higher for search advertising campaigns assisted by impression-based ads.

Microsoft’s whitepaper, The Long Road to Conversion, criticizes what it calls “the last advert model” in evaluating marketing ROI in which calculations over-attribute sales success to the last click before conversion. After studying 17 million sales conversions between May and September 2008 they found that:

That is, although impression ads and rich media are generating sales, few marketers record their full contribution to success because the “click” is attributed to the final search ad and because measurement of ad spending rarely looks far enough back in the history of the consumer’s contact with the brand.

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Sales

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Justifying free content for existing fans

• Increase in advocacy generates: – increased margin per fan (e.g. up-sell to “collectors

edition”)– market for new products (role-play, belonging, gifting)– new sales to new audience

• Increase in life-time value of IP– deeper mythos = more sustainable (from cult to pop),

more opportunities… greater longevity– increased customer life-time value

Page 37: Measuring RoI for Transmedia

Summary

• Transmedia storytelling is increasing audience engagement (and hence revenue) by telling stories across multiple platforms and allowing audience participation.

• Return on investment can be measured by an increase in:– Awareness– Advocacy– Sales– Insights

Page 38: Measuring RoI for Transmedia

Transmedia Storyteller

Robert Prattentwitter.com/zenfilms

www.transmediastoryteller.com