MRM Lecture at University of Washington, M.C. in Digital Media. Holly Brown, Managing Director (Seattle)

1. 10 Things Every Marketer Should Know June 22, 2009

2. The Marketer’s Landscape First Age Uni-Directional TV Print Radio OOH Second Age Bi-Directional Interactive Third Age Multi-Directional Participatory (Social Media) 2 Interrupting Talking Listening 2

3. The Numbers Average internet user goes to 108 different websites per year As of Feb 2009, time spent on social networking exceeded time spent on e-mail (Nielsen) Since early 2008, time spent on social sites has surged 73% Facebook’s largest age demographic is 35-44 year olds, and has over 60MM active members. More than half return every day and together they generate more than 65 billion page views each month There were over 7,000,000 twitterers in Feb. 09 (pre-Oprah) Twice as many Americans now consume daily news on their Mobile Phones than the Combined Circulation of the Top Ten US Newspapers Apple’s App Store has delivered over a billion downloads Over 1 Trillion text messages sent in 2008 3

4. So…..What Else do you Need to Know? 4

5. #1 All Marketing is Digital Advertising, CRM, Television, Outdoor, Mobile, Direct Marketing, Promotions Digital footprints, tags and feedback mechanisms are everywhere Everything can be tracked and measured (this is a blessing and a curse) This baseline informs how we think about marketing in the digital age It suggests we should be able to tell what’s working, what’s not and why (I’ll revisit this point later) 5 5

6. #2 All Marketing is Social Social marketing needs to be an integral constant in your marketing program What business problem are we trying to solve You do need to play the game to know what it takes to win Social marketing is and will continue to be silo’d, as digital marketing was before. Resist this! Social buzz is both short lived and everlasting 6 The marketing community acts like a high school party crowd, by the next week, they move on to the next thing. Pete Blackshaw – EVP, Nielsen Online Digital Strategic Services 6

7. Social Marketing is about Influence Q: When considering purchasing a product or service, which of the following two are your most trusted and valuable sources of information? Company Website 25% Word of Mouth 65% Print Editorial 23% True online and offline 7 Product Catalogue, 7% Online User Reviews 50% TV Ads, 8% Print Ads, 5% Radio Ads, 3% Source: Facebook segment, self-reported survey data conducted on Facebook, Mar.08, US only, n = 3,169

8. Social Touch Description Analogy Advocacy Blogger mention/Badge Installation Press mention Ad Impression Units that are clearly 3rd party ads with varying degrees of targeting Ad Impression of equivalent targeting 8 Endorsed Impression Passed along brand-produced content, including views of badges embedded Highly targeted, premium context brand impression Visit Visits to a Brand page, sponsored group, or custom-built widget Visit to the brand web site Subscription Install a gadget, join a group, subscribe to RSS Email capture or other equivalently targeted lead generation 8 Relative Value of Social Touches

9. #3 The Media Agency is Dead Agency services converging Creative and Media are inextricably linked Content is king Exponential growth in number of publishers and content providers Buying media is a commodity not a strategic value App-vertising = reach through relevance Social media is not purchased, it’s earned Buying reach is out, influencing reach is in 9 9

10. Digital Marketing in the Age of Influence Influence Persuasion Content and Conversation Platforms Push Create Utility Buy reach & Talk at People Talk with People Win reach Create Engagement Non-Media Driven Models: Participatory, conversational, personalized content, builds influence and wins reach through word or mouth and viral distribution Media Driven Models Buy through “predictable” targeted channels to drive awareness and response 10

11. #4 Technology is the New Creative Strategy The new “Agency” job titles UX is embedded into all digital communications Interactive Designer is the new Art Director Integrated Producers are replacing Project Managers Content Strategists are the new Copywriters Strategy Directors are the new Account Managers Everything is connected to a back end, data warehouse, ad server, or CRM system Ad Ops is the new Traffic Manager Everyone needs to know what technologies can be applied Clients need to re-org! 11 11

12. Technology Partners and Platforms Abound Mobile: 5th Finger, Ansible, Punchkick, Hipcricket, Cellit, RipRoad , Brand In Hand Social Apps: Context Optional, Social Gears, Large Animal Games, 360i, Facebookster, Weblin , Unbound Technology Social Monitoring: Nielsen BuzzMetrics, TNS Cymfony, Visible Technologies Dow Jones Insight, J.D. Power & Associates Ripple6 Enterprise Search: Autonomy FAST (MS) EndecaVivisimo IBM Attivio Word of Mouth/Viral: Viral Factory Zocalo Group MindCometZipatoni Red Bricks Media BzzAgent Keller Fay Group Community Platforms: Jive Software Telligent Systems Pluck MzingaKickAppsNingVotigoVitrue Crowd Factory RamiusCoTweetHiveLiveCommuniSpace Crowd Sourcing: crowdSPRINGIdeaScale Widget Application Platforms: Clearspring,Gigya, Widgetbox, Vidgroove 12 12

13. #5 The Consumer is in Control 13 Marketing 13

14. So What is a Marketer to Do? 14 14

15. Marketer Participation Marketers need to find the right entry point to engage in social media dialogue. Community Management Lead Conversation Guide 15 Join Listen In order to succeed, trust needs to increase with Marketer engagement Sponsor/Enable can happen during any stage because you can pay to engage Media Engagement Model (aka Conversation 3.0)

17. Be polite

18. Be authentic

19. Offer value

20. Be transparent

21. Start with your most powerful audience, your existing customers16 Podcasts/RSS User Reviews Rating Systems Search Widgets

22. #6 Distribute Your Website Focus Content Vehicles Audiences Dynamics Product Overview Digital To Partner New Partner NAV Product Spec/Func . Sell Website Existing Partner AX Product Spec/Func. Use Webcast Through Partner GP Industry Podcast Sl Competitive Video – high res CRM Customer Testimonials Video – low res CRM Online Marketing Offers Email Sales Offers PowerPoint 17 To Customer Message Strategy New BDM Banner Ad Other Existing BDM Demo Other New TDM Search Copy Other Existing TDM Other Non-Digital Fact Sheet Brochure Content Once to Many Vehicles Whitepaper Direct Mail CD Other Other

23. #7 Digital Drives the Whole Funnel 18 18

25. Content creation and syndication

26. Interactive Advertising

27. Social Media Strategy

28. Market research/conversation monitoring

29. Web sites/microsite/landing experiences

30. Mobile/IP TV/DigitalOutdoor

31. Online Events and Experience Marketing Extensions

32. Service and Support

33. Direct to consumer

34. Data ops & analytics

35. Lead Gen and CRM

36. SEO/SEM

37. Low cost production

38. 1X (Estimated globally)

39. 3X (Estimated globally)19 What we do

41. New Metrics to evaluate widget views and distribution

42. “Click depth” and Site visit “recency”20 20

44. Test & Learn at all phases of development

45. Continuous optimization of tactics

46. Complex ROI models 21

47. The Reality is….. Attribution model is broken Different reporting systems can vary as much as 150% Tagging errors can result in erroneous data Data reporting and insights are the not the same thing Use the right tool for the job Campaign reporting, creative/media optimization/dashboard level KPIs /Advanced Analytics/ Cookie level analysis/Perception shifts, IAB standards Visual Analytics is next evolution 22 22

48. A Dashboard Can Only Tell You so Much 23 23

49. What to Measure Metrics Conversations Mentions Comments Advocacy Influencers Attitude Shift Brand Favorability/ Sentiment Exposure Metrics Page Views Visits Unique Visitors Time on Site Referrers Reach Actions Search Engine Entries Clicks Downloads Ongoing Usage Ratings Passalong Purchase Registration 24 ROI Example Tools/ Vendors Atlas Google Analytics WebTrends Omniture Publishers Tube Mogel Meteor TruCast Radian6 Buzzlogic Collective Intellect Telligent Atlas WebTrends Omniture Double Click

50. Advanced Analytics Enables Marcom Mix Modeling 25 Recommended Media Allocations Social Media is an integral part of campaign impact analyses for Marcom Mix Modeling

51. #9 Uncertainty is the New Baseline 26 26 If it’s been done before, don’t do it again…..or at least do it different or better Past performance is not a great strategy Start with Customer Insight What is Relevant and Useful?

52. #10 Useful is the New Clever 27 27

53. Back to 101 marketing:Show consumers tangible value in your brand, message andoffer 28

54. The MRM Worldwide Customer UtilityTM formula: 29 Customer Utility to the power of X Brand Platform Open Digital (world) A Great Idea Brand Content Digital and Customer Strategy Measurement & Analytics Segmentation, Targeting, Media, Search

55. Customer UtilityTMValue Exchange Product New products, new biz lines, e-commerce, marketplaces Service Mobile apps, software as service, location based services, crowd sourcing, vertical social networks, digitizing physical services, mash-ups, widgets etc. Engagement Digital branding, video, traditional media, web 2.0/social media, integrated campaigns, interactive advertising,loyalty, CRM 30 $$ Value to Customer Customer Experience

56. Customer Utilityis at the heart of how well we usecontent and context in the service of the brand 31 ATTRACT—ENGAGE—ACQUIRE—RETAIN Content and Context Brand Marketer Generated User Generated Awareness Consideration Purchase Use Form Opinion Talk

57. Creative Examples 32

59. Mobile Cookbook with 4,000 recipes33

60. Microsoft ExecTweets Twitter traffic increased 422% in 2008 and continues to grow at an extremely rapid pace into 2009. However, It is a recognized shortcoming of Twitter that it is hard to find the right people to follow. Microsoft can add value to the Twitter community by providing a service that helps users discover influential execs, especially around business verticals and hot topics. GOALS: Engage business and IT executives in natural conversations about management, and build brand affinity by sponsoring the environment. HIGHLIGHTS: Exectweets has attracted more than 226K followers, vaulting it from obscurity amongst the 19 million Twitter users to the 191st most followed Twitter account. 34

61. Whopper Sacrifice Social networking has grown extremely rapidly in the past couple years such that the average user has 172 friends on Facebook. Some of these Facebook friends are acquaintances, or in some cases total strangers. Burger King wanted to exploit this idiosyncrasy of social networks. GOALS: Build brand affinity with its core audience. Burger King built an application to do a “spring cleaning” of sorts. By deleting 10 friends, Burger King offered a Whopper. HIGHLIGHTS: The Whopper Sacrifice application garnered positive reactions from users and 233,906 friends were "sacrificed" by Facebook users more interested in relationships with the global fast-food chain's specialty hamburgers, according to Burger King. 35

63. 4,942,588 unique visitors, 207,733 MySpace friends and 5,000,000+ users engaged with and added the Zune music player to their MySpace pages

64. Through forums, comments, downloads and friends, 3,562,528 engagements were made at a cost of $0.25 each36 36

65. Skittles.com Build a new corporate website for today’s audiences and move away from traditional corporate websites. As Web 2.0 has evolved and matured, traditional Web 1.0 artifacts such as the corporate website have become decreasingly relevant to consumers. GOALS: Create a corporate website that is relevant to consumers by letting consumers dictate what is interesting to them. HIGHLIGHTS: The results are mixed. While generating a lot of buzz in the media, the campaign put the un-moderated user content directly on the company homepage, resulting in display of adverse comments. 37

66. Deliver Value First, Ask for it Second Campaign Mentions (BuzzMetrics) Impressions & CTR by Week 38

68. Amount by which the total campaign acquisition goal has been exceeded (as measured by i’m-initiated downloads of Windows Live Messenger) since March 2007: 200%

69. Total free impressions since March 2007: 147+ million

70. Ratio of dollars generated for each $1 spent on media, separate from the positive ROI created across Microsoft’s online services network: 9:1

71. Create awareness

72. Acquire new users

73. Drive advocacy

74. Increase engagement39 39

75. I’M Initiative 40

76. Create Media Annuities 41

77. Provide a Social Object to Attract Participation 42

78. Make it Better Together 43

79. Enable and Encourage Participation – Make it Easy to do so 44

80. Open Up Creative Assets and Make Them Findable and Portable 45

81. What Were Those 10 Things Again? Everything is Digital Everything is Social The Media Agency is Dead Technologyis the new Creative Strategy The Consumeris in Control DistributeYour Website Digital Drives the Whole Funnel Be Careful What you Measure Uncertainty is the new Baseline Usefulis the new Clever 46 46

82. Thank You Holly Brown SVP, Managing Director Holly.Brown@MRMWorldwide.com 47 47