Presented to Ad2 on April 19, 2007.

1. Advertising Federation “ What Web 2.0 Means for Ad Agencies” April 15, 2007

4. Time spent online vs. television Forrester’s Consumer Behavior Online: A Deep Dive 5 6 12 13 16 Hours spent online/wk 14 11 12 11 11 Hours watching TV/wk Seniors (62+) Older Boomers (51 – 61) Young Boomers (41 – 50) Gen X (27 – 40) Gen Y (18 – 26)

5. Compound annual growth in advertising spending Veronis Suhler Stevenson Communications Industry Forecast Participation Monologue 46.1% 24% 6.2% 6.9% 2004 - 2009 109.1% 15.8% 1.2% 4.7% 1999 - 2004 Videogame advertising Consumer internet Consumer magazines Television Years

9. What is Web 2.0?

20. “ An attitude, not a technology”

21. But what does it represent?

26. How we see it

32. Web 2.0 in Action

43. Folksonomy

45. Social Network

47. User Generated Content

49. Convergence

51. Social Networks…again

53. Data transformations (i.e “Mashups”)

56. 2.0…Beyond the Web

61. Hacking

69. What’s the “2.0”?

70. Customers Audience Users People

71. Learn Feel Connect Trade

73. TECHNOLOGY HUMAN BEHAVIOR

75. DEMOCRACY REPURPOSE So what is advertising in a Web 2.0 context? CHEAP NETWORKING SHARE OPT-IN FAST COLLABORATION CONVERSATION CO-CREATION FUNCTIONAL ON-DEMAND PARTICIPATION PEOPLE-CENTRIC PERSONALIZATION DECENTRALIZED 2-WAY IDENTITY NETWORKING

76. Technology is evolving a new participatory role in our lives Humanizing Technology

79. We don’t claim all the answers - but for certain, advertising has no sustainable role as predator and deceiver

81. And many clients have a very clear vision of Advertising’s role in their business

82. And what of our precious advertisements?

83. The craft of advertising is becoming marginalized to the periphery of our experiences (And this will only continue to accelerate)

84. Spam.

85. Spam.

86. Spam.

87. Spam.

88. Spam.

89. Spam.

90. Spam.

91. Spam.

92. Spam.

93. Spam.

96. The engagement formerly known as “ads” are fundamentally peripheral to the Web 2.0 experience.

99. …and what of “utility”? Ironically, no ads appear on word search for “utility”. Ironic? Or Telling.

100. And beyond the internet experience…what value do ads add within human experiences?

101. New York Red Bulls reverse the periphery model and put the brand at the very core of the experience.

102. And Red Bull is not content to merely attach themselves to a sport. They’ve tailored whole new sports around their brand promise.

103. Evian Spa is putting purified water at the center of a value-added experience.

104. Charmin is offering pure utility and a joyful delight—comfy, clean, safe bathrooms throughout icky Manhattan.

105. “… the role of marketers becomes more of intermediaries to the community of users …treating [them] as co-producers of value.” -Yochai Benkler Yale Law School specialist in Open Source Management

106. There are many Web 2.0-inspired roles that advertisers may begin to fill in Web 2.0 spaces and within people’s lives

107. There are many roles that advertisers may begin to fill in Web 2.0 spaces - and within people’s lives How may our roles fuel the core pillars? Learn Feel Connect Trade

108. Let’s play the role of Collaborators and invite co-creation with our brands Doritos online gallery of user-created submissions received 600M views during Super Bowl week. The SuperBowl airing, itself, promises 93M viewers.

109. Let’s be Journalists and spark a global conversation “ A viral video from Dove drove more traffic (500M impressions) to the campaign’s target site than the ad they ran on 2006’s SuperBowl”. Blogger chat fueled the spot to the top 15 most-linked-to videos of 2006.

110. Let’s be Listeners and leverage the long nose of transparency to fuel engagement Round 1: garnered 2M user sessions, 30M site hits, over 7M views, 4M YouTube views - one of the most successful ads in the history of YouTube”. Round 2: harnessed user anticipation and created passionate engagement with the whole process of creating of the “ad”

111. Let’s play the role of Provocateur and incite wholey participatory experiences CourtTV’s “Parco, P.I.” stunt campaign in NYC & LA “ One million hits to blog in one week, and most-viewed YouTube video of that week.”

112. Play the Economist and move fast(er) and cheap(er) 20 holiday-themed sites…one struck jackpot. 40M+visits, over half a billion hits, 2M Google hits, over 100 user-created videos on YouTube, total time spent on the sites - 642 years. Ideation to Production to market - 5 weeks.

113. Be a Life-coach and counsel the actual actions of our brand promises, not simply the words Built good-will before unveiling product, by establishing a fun, human, robin hood personality for the brand. 2 million hits on Ted teaser site, 175 million PR impressions , almost $5M in flights booked online before Ted even began flying.

114. Evolve our role as Brand Stewards. Let’s get out from behind the screens and be transparent. Virgin America appealed directly to people to marketplace point of difference and sign their petition to get DOT approval to fly in America. And they got it. JetBlue confesses to operational failures and issues both a very public apology and manifesto for change. Not ads.

115. Evolve from ‘Spin’ and leverage the new accessibility of empirical behavioral data Demands for accountable effectiveness are being met by Web 2.0 applications. This expectation is driving measurability of TV commercials (Nielsen Ad Rating, Google Pay-Per-Action)

116. Play the role of Assistant and provide pure functional utility Nike now believes digital thinking should be at the heart of ad strategy…so much so that they’ve signaled a warning to their agency partner of 25 years

117. Get from behind our screens and actually (gulp) meet with our customers (and critics)? To curb hactivist prejudices, Dell has made blogger outreach into a discipline. The company's team recently sat down for drinks, nachos, and fried zucchini at a pub with blogger (and outspoken Dell critic) Jeff Jarvis. (Jarvis picked up his own tab.) “ In a flash he transformed the borgish image of Dell for me,” says Jarvis.

120. Thank you for your attention.