the converged media imperative - dma/ibm webinar

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September 12, 2012 IBM / DMA Webinar

The Converged Media Imperative:

Combining Paid, Owned & Earned Media

Rebecca Lieb @lieblinkDigital Advertising & Media Analyst

© 2012 Altimeter Group

As consumption habits shift, brands require media ubiquity

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The average consumer sees c. 3,000 brand impressions a day. Media is and will continue to converge as brands are challenged to intercept this elusive customer, regardless of medium, channel or time of day


5 factors

5 FACTORS

3 factors

3 FACTORS

5 factors

5 FACTORS

advocacyawareness consideration intent purchase support loyalty

5X3X5=75

75X7=525

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Tesco customers scan and purchase goods in virtual subway supermarkets

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Customers scan QR codes to purchase products for same day delivery. More than 10K consumers visited the Home Plus mall using their smartphones. New members rose by 76% after the first implementation and online sales

increased by 130%. This was deployed in Seoul.


Tesco grew to #1 grocery retailer online and a close 2nd offline by adapting to dynamic customers’ needs

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Solution: Bring the store to the customer via interactive

displays during commutes.


Digital Paid, Owned, and Earned media6

micrositescorporate blog

corporate websiteSponsored posts, adsPPC ads

Display, banner ads

Pay per post blogging


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Paid Owned Earned

Visualizing Paid, Owned, and Earned

Requires media buy Owned or controlled, does not require media buy

User-generated or media content surrounding brand


Investment in Earned & Owned increases in 2012 8

Source: Society of Digital Agencies (SoDA) via eMarketer, 2012


A closer look into each media type

Source: Society of Digital Agencies (SoDA) via eMarketer, 2012

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Now, let’s define Converged Media10

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



Creating branded ‘surround sound’: how media types influence and enable each other

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PAID

OWNED

EARNED

Drives

vol

ume

to b

rand

Drives volume

Provides platformPr

ovid

es p

latfo

rm

Instructs where to amplify

Informs innovation, creative


Question: Which media type are Facebook and Twitter?



Answer: all three!13

Paid:

• Sponsored tweets, posts, engagement ads

Owned:

• Branded Facebook or Twitter page

• Brand-curated content

• Branded Facebook apps

Earned:

• Fan/user-generated content posted related to brand

• May be on brand’s page or elsewhere


What does this look like on Twitter?14

Owned

Paid

Earned


What does this look like on Facebook?15

Owned

Paid

Earned


Converged Media Example: Earned + Paid16

Bazaarvoice deploys paid advertisements with user ratings and reviews. Microsoft

advertises with transparency; shoppers click on the ads to learn more from their peers.

PaidEarned


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How Successful Brands Deploy Converged Media



Glidden Paint builds confidence by building experiences that resonate pre-purchase

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Overwhelmed by color choices and afraid of making a wrong decision,

sometimes shoppers give up. Glidden facilitates decision-making

by providing trusted voices, validating ideas, leading towards the

brand in the process.


Glidden launches branded microsite, MyColortopia as the hub for advice, blog, tools

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Glidden invests heavily in “approachable” bloggers to be the voice of the experience– the consideration/

“inspiration” phase– not necessarily the brand. Content and tools aid in this process:

• ‘Ask the Colortopia Team’ Q&A forum• Blog • Influencers as publishing partners and promoters• Color selection/ room visualization tool• Personalized “My Project” folder


Glidden employs a wide palette of channels, converging media for a streamlined brand experience

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Based on campaign insights and focus groups, Glidden introduces Before & After feature mid-campaign– helping inspire shoppers based on others’ success stories

Engagement skyrockets:• 500m digital exposures; 800k offline

exposures• 2k comments across properties• 100k+ tool interactions• 100m+ minutes spent interacting with

content• Shoppers 70% more likely to consider

Glidden for future projects

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Results apparent after just 6 months



P&G tells stories of Olympian… Moms?22

P&G launched a globally resonant campaign to support 150 athletes and their mothers across 34 brands. In just a few months, multiple video ads received +5M views. Thank You, Mom Facebook

page has +750,000 likes in U.S. alone.


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P&G ties in product imagery with brand message and campaign story



Brisk Tea combines old-school branding success with new-age tactics

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To promote new packaging, Brisk piggybacked on the release of Star Wars: Episode I - The Phantom

Menace. They partnered to create a TV spot reviving Brisk’s mid-90s clay-animated ads, applying

it to the likes of Yoda and Darth Maul. Brisk integrates online and offline throughout the

campaign.


Brisk ties TV commercial in with co-branded “Brisksaber” app

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Brisksaber allows fans to unlock new characters and objects based on codes found

on Brisk Iced Tea bottles. Scores can be posted on Facebook and Twitter. High scorers make the leaderboard on Facebook.com/Brisk



Star Wars push only part of Brisk’s integrated “That’s Brisk, Baby” content strategy

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PepsiCo’s largest multimedia advertising campaign yields results:

• Facebook following jumped from 10k to 950,000 in ~18 months, 82% of whom are in their 20s or 30s

• In-store sales up 12%*• Total sales more than double in 2

years• Over 500,000 app downloads


ClearChannel integrates online and offline channels to ‘make the audience the media’

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Converging media through 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.


National Car Rental listens to each campaign to instruct the next

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Learning: Fans share qualitative information about their travel habits in

exchange for travel perks. Rapid entries in short timeframe reveal unforeseen fan

competitiveness.

National invests in more campaigns tapping into both storytelling and fans’ competitive

drive; sees 30% growth in Facebook fanbase, thousands of new FB and Twitter followers. Both below-target cost-per fan/

per engagement metrics, millions of impressions via earned PR placement.


The New York Giants bring social events to owned venues, generating earned buzz

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NY Giants were the first pro sports team to integrate live tweets into offline events (stadium, TV) and online (poll,

Q&A, e-commerce tie-in). Tying in social content and voting with real-time events generated an increase in e-commerce sales, a 127% increase in Twitter followers, and huge brand

amplification and awareness for related campaigns.


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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



ScottTrade hosts owned community platform to drive earned

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ScottTrade utilizes multiple approaches to drive earned on their own platform:

• Influencer advice• Featured blogs• Polling, community voting• Featured members• Community interaction features• Customizable experience


Marketo shows B2B can drive earnedAnd still be effective on owned (Facebook)

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While Marketo advertises with Facebook ads, they keep it fun, interactive, and in line with the brand message (rock-and-roll theme). Customers interact with brand

directly on Facebook where they can expect an immediate response.


Peets uses paid ads on mobile promoting earned media to snag new customers

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The converged experience for

customers:Airport retailers purchase

location-aware advertising on GateGuru to drive users into stores.


SAP integrates paid and owned media types to strategically push SMB offering

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Paid


SAP monitors and compares all content performance across channels and optimizes

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Cross-channel monitoring reveals which ads perform well with whom and where. Leveraging this data across platforms, SAP has seen +55 million impressions since late last year when

the campaign launched.

27%

14%

10%9%

7%

6%

5%

4%

4%

3%

11%

Smarter SME Software (Precise) (Owned) (Branded)

Hot Salsa, Hot Sales (Precise) (Owned) (Unbranded)

Improve Your Cash Flow (Precise) (Earned) (Branded)

Small Business Success (Precise) (Owned) (Unbranded)

Drive Business Growth! (Precise) (Owned) (Unbranded)

Run Your SMB Better (Precise) (Owned) (Branded)

What's Right For You? (Precise) (SAP) (Owned)

Drive Business Growth! (Precise) (Case) (Owned) (Branded)

Need to Boost Cash Flow? (Precise) (Earned) (Branded)

SMB iPhone Apps (Precise) (Owned) (Unbranded)

Other

Facebook Top 10 Assets (clicks)

-2.500%

-2.000%

-1.500%

-1.000%

-0.500%

0.000%

0.000%

1.000%

2.000%

3.000%

4.000%

5.000%

6.000%

Share Ratio Net Adopter

StumbleUpon Campaign Performance

Earned


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The Role of Data & The Digital Exhaust Trail



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Nearly half of digital marketers use no form of attribution

Lacking (or basic) tracking methods: a

testament to challenges marketers face in leveraging big

data.


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Attribution analysis remains a challenge

Incomplete or Missing Data

• Disparate devices, channels, platforms leave ‘blind spots’ when analyzing attribution

Complex Technology & Talent Requirements

• Massive data sets require big data platforms as well as a specific level of talent/ skill to unlock full potential

Defining What Success Means

• What defines success varies drastically by campaign; every attribution model must be unique to that campaign



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Most marketers conducting attribution analysis employ first/last event approach


Using analytics to accurately reflect the dynamic customer journey

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Traditional Attribution Model

Dynamic Attribution Model


Marketers feel a growing necessity to manage large amounts of data from multiple media streams

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Challenges

Numerous ‘permutations’ of the customer journey

Myriad of devices

Diverse social events

Geo-targeting

Behavioral targeting

Structured vs. unstructured data

Objectives Identify high potential audiences and

accurately target them

Enable the right message at the right time via the right content targeting

Maximize ad inventory by identifying high-value audiences across publisher properties

Optimize ad media purchase and understand the value of channels higher up in the funnel


Create marketing effectiveness by capitalizing on big data 43

Audience Optimization

Content Optimization

Yield Optimization

Channel Optimization

Opportunities

Implement rules-driven integration of disparate data

Improve operating infrastructures

Create a network of data-centric technology and partners

Define marketing data governance


Goal: Deliver the right message to the right person at the right time for the right price in the right channel

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Big Data = Big Opportunity

© 2012 Altimeter Group© 2012 Altimeter Group

Converged Media Success Criteria


Brands that do not integrate paid, owned and earned media types are at a disadvantage

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Fragmented messaging, inconsistent branding

Redundant efforts, no communication/ collaboration

Departments competing for budget

Low customer engagement/advocacy

Convergence begins to occur in traditional media


Altimeter identifies 11 criteria to successful converged media deployment

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Strategy: Understand Converged Media 48

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



The value of each media type depends on the business

Source: Zuberance Paid, Owned, Earned Media Study, April 2011

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Owned35%

Earned32%

Paid32%

Biggest impact on business by cat-egory

Q: Which category has the biggest impact on your business in terms of generating

sales, new customers, and revenue from marketing-related efforts?

Owned media such as your

website or blog

Paid media such as search

engines, banner ads or other

advertising

Earned media such as reviews,

online forums, other sources for

peer advice


Strategy: Plan a Stable Foundation 50

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 earned instruct 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

• Paid media helps drive volume to owned and earned channels, and ultimately what amplifies the brand message.



Organization: Ability to Achieve Earned at Scale 51


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


Organization: Align Teams & Departments52


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


Intel among the first to reorganize… merging social media team with global media team

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“Why does this make sense? I found we were having similar conversations across teams. For the past several years, I have been encouraging every opportunity for them to work as one, sharing information and insights — driving cross media opportunities with our partners and thinking about a new world where the idea of “paid” or transactional media dissolves.”


Organization: Align Agencies & Vendors54


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


Production: Aligned Content / Creative Across Channels55

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


Production: Real-time Capabilities56

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

• Empower to act, particularly in Earned media


Real-time marketing turbo-charges other efforts

Source: GolinHarris, The Promises and Pitfalls of Real-Time Marketing. http://golinharris.com/#!/insights/real-time-marketing-research/


Production: Channel Flexible 58

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


Production: Influencer Relations59

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


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Influencers vs. Advocates

Influencer Advocate

Definition An influencer is someone who actively shares their opinions, passions and expertise through their (large) personal and professional networks.

An advocate is someone who proactively defends, promotes and participates in the public conversation for a particular brand, product, service or cause.

Function Brand Amplifiers and Accelerators

Brand Defenders

Example Celebrities, analysts, bloggers Loyal customers


Analysis: Social Listening / Analysis of Crowd 61


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


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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.

Analysis: System for Identifying & Measuring KPIs


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Putting the Pieces Together


The Dynamic Customer Journey requires an integrated approach

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But it doesn’t end with the purchase…


Execution Workflow: Experiment tactically, amplify intelligently, measuring and iterating throughout

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We asked brands, agencies and vendors to rate the maturity of the Converged Media space….



While varied, the perception is clear67

Respondent Group

Average (1-5)

ALL 1.95

Brands 2.18

Vendors 1.72

Agencies 2.08

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.


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But while brand report the highest rating, they lag in effectively deploying the converged media experience

BrandCreative

Digital

PR/ Communications

Social

Customer Service

• Mindset, access to resources vary by department• Departmental silos hinder converged deployment• Disparate toolsets further divide teams & initiatives


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Brand

Agency

Vendor Agency

Vendor

Brands cannot deploy converged media alone. They must coordinate agency and vendor

partners. Our research found that stakeholders are often resistant to cross-collaboration.

Brands must incentivize agencies (digital, social, PR, creative, etc.) and vendors work together


For software vendors, acquisition and integration hinders converged deployment

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As media types flow together to converge, building software from the ground up is too costly and time consuming. Thus , vendors are forced to move outside of familiar territory to expand into new functions– or will be gobbled up by large software companies creating digital marketing suites.


The Dynamic Customer Journey requires an integrated approach

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But it doesn’t end with the purchase…

Traditional Attribution Model

Dynamic Attribution Model


From funnel to cycle…72


Paid, owned and earned media are central to the influence loop, both for brands and their customers


Summary73

Converged media is a growing reality

Paid, owned, earned integration makes marketing more effective

Processes and best practices are emerging

Redefining roles, hierarchies and organization is essential

Convergence is primarily digital now, but it’s bleeding into offline channels


Rebecca [email protected]

rebeccalieb.com/blog

Twitter: lieblink

THANK YOU

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.