Paid Media is... The New
Science of Influence MOBILEYOUTH ® youth marketing mobile culture since 2001

Advertising is like SEX Only
losers pay for it MOBILEYOUTH ® youth marketing mobile culture since 2001

Find out more about Influence
in the 2012 mobileYouth Report Influence In the Age of Differentiation, Influence was generated by the Big Ideas of Creative Agencies. In the Age of Discovery, Influence happens when young people tell their stories to friends. The brand becomes a Social Tool in helping them telling that s t o r y. I f t h e b r a n d i s conducive to Storytelling, it flickr: fomu has positive influence generating Earned Media. Discover the new rules of influence: MOBILEYOUTH ® The mobileYouth Report 2012 youth marketing mobile culture since 2001

65% of all youth bought
mobile handsets based on what their friends, not what advertising, said MOBILEYOUTH ® youth marketing mobile culture since 2001

Fans are the most profitable
segment Why focus on Fans? Fans Vs Followers Fans constitute 10% of the Share of Customer Share of Profits entire market but contribute 90% of a brand’s profits How Fans contribute to an c e brand profits? ow nor H ig Lower Retention Costs ou his? y t High product launch hit rates Increase in revenue through up-selling Increase in revenue through cross-selling Source: Weber Shandwick Fans Followers Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

Fans You spent your whole
marketing career trying to get customers to like you when all along you ignored the inconvenient truth of the Fans who already loved you. Fans aren’t just 2 or 3 times more influential than your average customer, they can be up to 100 times more influential. Focus on your fans, build them a Beachhead to house the dialogue. If you don’t know who your fans are you only have customers. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

FANS aren’t 2 or 3
times more influential than customers but up to 100x more influential MOBILEYOUTH ® youth marketing mobile culture since 2001

Lines of Influence in Youth
Culture Influence Marketing Role of Fans in the Product Life Cycle Fans fill the chasm between Early Adopters and Followers. Traditional marketing focused on using ad campaigns to create a social context that would bridge the gap between Early Adopters and Followers. ut In the Age of Discovery, bo social context is created g a rs, by young Fans. They are sin te us op tion. more effective in f influencing purchase OP ly Ad trac NS decisions of Followers ST ar dis e FA because they define Social Currency of the E ea h product and provide y’r on t he us validation for using it. t c Discover the new rules of influence: Fo The mobileYouth Report 2012 MOBILEYOUTH® youth marketing mobile culture since 2001

The New Dynamics of Marketing
cyreplacing Agencies How Fans en are ! 65% In the Age of Differentiation, ag this youth relied on ive Ageoof Differentiation t d f mass media created by ea un cr o youth purchase ur Mobiles new handsets yo the agencies to based on what Agencies Youth et ike Brands discover products I b ’t l & make purchase Market friends and family recommend decisions. w on Agencies told the brand story through mass media messages to influence the youth market. Source: Nielsen In the Age of Discovery, young people turn to recommendation Age of Discovery 72% of trusted peers Mobile Brands Fans Youth Market youth seek peer recommendation to discover new before they products and switch operators Young fans tell their stories to peer groups using make purchase decisions. brands as social tools to influence the youth market. Source: OFCOM UK Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH youth marketing mobile culture since 2001 ®

Beachheads Bui Build your fans
a home: community, project or cause. ld t House the Dialogue and allow them to create their own hem Context. Connect them with each other and step back. kno ... or wh Per ow ish. to b If yo uild ur a the gen m, fi cy d re t oes hem n’t . Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

FANS: 10% of the market
90% of the conversation 0% of the agency “Big Idea” MOBILEYOUTH ® youth marketing mobile culture since 2001

90-10 Rule Focus on the
10% (the fans) that influence the 90% (the mass ... rt e market). In the modern Attention Economy, youth are more sho ativ influenced by the Earned Media of these vocal influencers. , in Cre So > ns genc ies Fa A Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

Now, here’s the INCONVENIENT TRUTH
MOBILEYOUTH ® youth marketing mobile culture since 2001

Influence: module 02/06 Loved brands
are the most profitable SMART Index SMART (Simple Mobile Earned Media correlates to Profit ... Advocacy & Recommendation Handset brands that have successfully maintained positive SMART Index cts Tracker) Index measures scores have also seen an increase in their share of market profit as a percent Earned Media for a brand by fa share. In the US, Apple’s share of total market profit has increased by nearly looking at the likelihood of a hard 50% while its SMART index score among young people hovers at 50%. he brand being recommended by a st young person to his or her peer e’ SMART&Index& network. r 60%$ He BlackBerry$ Apple$ 40%$ A positive SMART Index means Samsung$ the brand has active Fans who 20%$ Sony$Ericsson$ Change&in&share&of& are recommending it to their Motorola$ market&profit& friends. '60%$ '40%$ '20%$ 20%$ 40%$ 60%$ Nokia$ '20%$ A negative SMART Index signifies that critics of the '40%$ brand are more active than its source: mobileYouth '60%$ Fans. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

You don’t need a CREATIVE
AGENCY anymore MOBILEYOUTH ® youth marketing mobile culture since 2001

STOP managing the brand and
START activating the FANS MOBILEYOUTH ® youth marketing mobile culture since 2001

Fan Mapping m o b
i l e Yo u t h ’ s F a n s p o t t i n g methodology for clients. To navigate the new landscape in the Age of Discovery, you’ll need a reliable map. mobileYouth’s MAP (MAP: Measure, A r t i c u l a t e , Pr o f i l e ) u s e s a combination of EMI, Brand Heatmaps and Immersion to generate MAPs for mobile brands. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001 flickr: Andrew Stawarz

flickr: Andrew Stawarz its nt
o pe e t Liked vs Loved s s pl ha eo ong cy t p l al en ge If youth like your brand be g o a t al truth ive ing at ry en ent h i ... ou afraid, be very afraid. If re t w en customers like you in the c e ur lif ct nv du co ve dy pro e in dy lo modern Attention Economy, you might as well be Y o le o our th invisible. What counts is wh y ed t al rea being Loved, particularly by ke nor tha li ig ns the Change Agents that count - the Fans. Love u yo he fa generates Earned Media. oft Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

flickr: justinLowerycom Share of Customer
vs Share of Market Share of Market = your position now. Share of Customer = your future market position. Traditional Market Research measures market share to determine success and employs Big Idea marketing favored by Creative Agencies to maximize market share. In the Age of Discovery, research and marketing needs to focus on Share of Customer and adopt Earned Media Indexes to predict future trends and measure existing Beachheads. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

Net Promoter System Used as
a standalone, Net Promoter Score can become a vanity metric used to replace customer satisfaction questionnaires. In Social Business, NPS can be turned into a system (as with mobileYouth’s SMART index) to identify Fans, Beachheads and lines of influence. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

Earned Media Index Earned Media
Indexes such as Net Promoter Score or mobileYouth’s SMART Index. Earned Media indexes measure how much Earned Media a brand generates - a key indicator of success in the mobileYouth Economy. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

SMART Index Simple Mobile Advocacy
Recommendation Tracker: mobileYouth’s own Earned Media Index used by mobile brands to identify Beachhead opportunities, profile Fans and develop a visual Brand Heatmap. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001 flickr: leila HADD

flickr: chicagolau Brand Management 9
99 is 1 Old school marketing popular in the Age of Differentiation. Telling the brand story in a big way using the Big Idea. Using new media to expand the . .. brand’s reach and awareness rather than empowering youth with Brand Democracy. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

is a Creative Agencies g
g in in r is r t o ve n b . Traditionally the font of Big Ideas. Being geared towards the Age of A d o ts Differentiation, Creative Agencies x duc struggle with the Age of Discovery. ta ro Typically, agencoes are hobbled by Cultural Pushback. Many agencies p employ “social” tactics but remain attached to the Loudspeaker mindset, driving clients to waste money on campaigns that win the agency awards as opposed to the client customers. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

flickr: ick harris ast s
t o Paid Media Advertising, sponsorship and brand .. .i endorsement. Old school marketing built on the Big Idea school of Creative Agencies. In the pre- digital era when the Attention Economy was less evident, Paid Media created Influence. Today, however, with youth Paid Media’s role has rapidly declined, giving way to Earned Media as the key line of market influence. Discover the new rules of influence: The mobileYouth Report 2012 MOBILEYOUTH ® youth marketing mobile culture since 2001

Build a SYSTEM Build PERMISSION
ASSETS House the conversation MOBILEYOUTH ® youth marketing mobile culture since 2001

The Age of Discovery: Start
your journey here MOBILEYOUTH ® youth marketing mobile culture since 2001

THE MOBILEYOUTH 2013 REPORT youth
marketing insights for handset brands, content providers and operators features: 29 reports 400+ pages data, charts, cases mobileYouth: tracking youth & mobile culture since 2001 MOBILEYOUTH youth marketing mobile culture since 2001

THE MOBILEYOUTH 2013 REPORT http://www.mobileyouth.org
MOBILEYOUTH youth marketing mobile culture since 2001