Converged Media - Altimeter Group Webinar

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September 13, 2012

The Converged Media Imperative:

How Brands Must Combine Paid, Owned & Earned Media

Rebecca Lieb, Digital Media Analyst & Jeremiah Owyang, Industry Analyst, Partner@lieblink @jowyang Event Hashtag #POEMedia

© 2012 Altimeter Group© 2012 Altimeter Group

Image by Mark Garbowski used with Attribution as directed by Creative Commons http://toomuchglass.net/2010/12/02/la-la-la-la/

We’re Tuning Out the Noise

© 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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Investment in Earned and Owned increases in 2012 5

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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Digital Paid, Owned, and Earned media7

micrositescorporate blog

corporate websiteSponsored posts, adsPPC ads

Display, banner ads

Pay per post blogging


Now, let’s define Converged Media8

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


POP QUIZ: Which media type are Facebook and Twitter?



Answer: all three!11

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 Facebook?12

Owned

Paid

Earned


What does this look like on Twitter?13

Owned

Paid

Earned


Converged Media Example: Earned + Paid14

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

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Enterprise tech company pays the influencers to ignite earned, drive traffic back to owned

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1.1m Social interactions

128 Pieces of content created by

influencers

24 Influencers commissioned

to create content

The company paid influencers to share content

Across their networks

9,314 Average actions per

piece of content



Enterprise tech company achieves converged media harmony with quality content

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While investing in influencers and media partners to amplify, the

investment was just as much in the content itself– valuable, sharable,

and on-brand.


P&G tells stories of Olympian… Moms?19

P&G launched a globally resonant campaign to support more than 150 athletes and their mothers,

across 34 brands. In just a few months since launching, multiple video ads have received more

than 5 million views and the Thank You Mom Facebook page has over 750,000 likes in the

U.S. alone.


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



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.


Uniqlo partners with an unlikely online ‘influencer’ to promote flagship store opening in SF

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Uniqlo creates “Lucky Cube with Maru,” a sharable, interactive game where users choose a box to win a prize.

Uniqlo hopes to drive traffic and buzz; The prize can be picked up locally or shipped. Maru the cat has received

more than 175 million views and was inducted into YouTube Japan’s Hall of Fame.


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 26

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 28

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 29


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


Intel’s iQ Social Publishing an industry first for integrated media curation

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The iQ experience, while still in beta, is comprised around social algorithms that curate content shared by Intel employees as well as owned and industry content. It is then filtered through a touch design based on the

insights generated through all data in aggregate.


Organization: Align Teams & Departments31


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 & Vendors33


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 Channels34

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


Why Virgin Mobile believes in a brand newsroom35

Built as a way to streamline the time between idea and execution, ‘Virgin Mobile Live’ is a the branded hub for all Virgin content. Targeting 18-30 year olds,

the brand ‘joins the conversation’ with a youthful, pop culture-savvy tone. Content is shared 100x/month on

Facebook, 200x/month on StumbleUpon.


Production: Real-time Capabilities36

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

• Empowerment 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 38

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 Relations39

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


Analysis: Social Listening / Analysis of Crowd 40


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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Workflow:

Coordinating Paid + Owned + Earned


Execution Workflow: Coordinating Paid, Owned, and Earned as one orchestration

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Periodic Strategic & Analysis Reporting44

Investigate what’s happening in Paid, Owned, Earned channels

What instructs what?

Listen to and observe your customers

Listen to competitors too

• What their customers say

• How they’re responding


Content Strategy45

What message represents, reflects, speaks for the brand?

Understand how content strategy varies:

• Persona segments, product type, geography, channel, screen, source of information

Spans many stakeholders; internal depts. and external agencies


Publication Across Channels46

To execute across channels, brand must define:

• Governance, engagement plan(s), communication, internal collaboration, series of meetings, designated leader, tools to support

Agency and brands are increasingly adopting collaboration tools spanning multiple teams

Growing ecosystem of tools

• CMS, Media Network Mgmt, SMMS, etc.


Engagement47

Teams must identify hot paths and hot conversations where content is resonating

Trigger further discussion via:

• Content Experts, Community Managers, Product Leads, Executives

• Advocates and influencers

Also partake in ongoing discussion and monitoring


Amplification48

Leverage converging media

• Use Paid to amplify Earned and Owned

• And Earned to amplify owned and paid…

• And Owned to amplify earned and paid…

Explore new ad and promotion types via owned and earned

• Social ads, UCG

• New aggregation platforms (eg. Bizaarvoice)

Tap into social graph by allowing those involved to share with their networks


Restructuring49

Messaging must evolve and change in real-time to meet the needs and changes of the market

Leverage emerging tools for customer collaboration

Staying on-message vs. taking new positioning?

• Involve customers in the process; be innovative


Conduct in real-time to allow for rapid iteration

Communicate progress to company via simple reporting

• Daily wrap-ups, trend diagrams, real-time tickers

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Measurement a baseline requirement across all phases


And then the cycle repeats…51



But remember, workflows are unique to the organization52


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Putting the Pieces Together


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


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.


Summary55

Converged is here. Facebook and Twitter ads are proof. Those who take advantage now will have an edge.

It's not easy. Immense internal change must occur as lines blur, both internally and with agency partners

Leverage data and platforms that propel campaigns forward by aggregating ad data, corporate content, and social, then derive analytics.

Converged media is rapidly bleeding into offline channels and also creates demands for real-time marketing capabilities

As consumer gadgets and devices and media channels proliferate, this will only become more complicated


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.

Jeremiah [email protected]

web-strategist.com/blog

Twitter: jowyang

With assistance from Jessica Groopman, Researcher

Converged Media - Altimeter Group Webinar

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