Online Communication for Political and Corporate Advocacy Campaigns

Media Fragmentation Requires A New Approach

The Media Landscape in 2005:

Television audiences are dispersed across various media outlets making it increasingly difficult to find the ideal media mix to effectively achieve marketing goals

Certain demographic groups are especially fragmented

160 million American currently use the Internet, spending a total of 256 billion minutes online monthly.

75 million Americans used the Internet to research political information in 2004 and 49% of Congressional staffers prefer to receive information online before a vote

Online Landscape in 2005

Millions are online, and broadband has reached the tipping point

Voters and decision-makers have embraced the Internet, spending more time online than ever before

Reaching voters and decision-makers has never been easier

Online Landscape in 2005

Millions are online, and broadband has reached the tipping point

Voters and decision-makers have embraced the Internet, spending more time online than ever before

Reaching voters and decision-makers has never been easier

Broadband Hit 40% in ’05, and Continues to Grow

Source: Forrester Research, June 2005

0.6 2.66.1

10.515.6

19.5

27.4

38

48.3

57

63.668.2

101.1 102.1 103.2 104.3 105.5 106.6 107.7 108.9 110.1 111.2 112.4 113.6

80.277.1

74.372.16867.2

63.559.2

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0.0

20.0

40.0

60.0

80.0

100.0

120.0

US

Ho

useh

old

s (

millio

ns)

All US households (millions)

Internet households

Broadband households

Actual Forecast

In 1998, 33% of US households were online.

By the end of 2009, 77% of US Households will be online.

Broadband hit 40% in 2005 and continues to grow.

Broadband is expected to grow at a 20% Compound Annual Growth Rate (CAGR) between over the next 5 years.

The Domestic Internet Reach:

Women 57MMTeens 23MMYoung Adults 21MMMen 53MMSeniors 26MM

Target Internet

All Genders and Ages Have Embraced the Internet

Teens

(12-17)

Women

(18-54)Seniors

(55+)Men

(18-54)

Young Adults (18-24)

Source: Mediamark Research Inc., Fall 1998-Fall 2005

Middle Adults Make Up The Largest Group OnlineSeniors Are The Fastest-Growing Online Demographic With 25% Annual Growth

5%

12%

83%

Internet Usage Has Become So Pervasive As to Have Affected Offline Media Usage

3%

73%

24%

4%

76%

20%

TV

“Since going online, how has your time spent using each of the following types of media offline changed, if at all?”

4%

77%

19%

Newspaper RadioMagazine

DecreasedNo ChangeIncreased

Source: Forrester Research, September 2003-4. Based on U.S. adults age 18+.

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Total US Online (in millions)

Percent of US Online

Source: Nielsen//Netratings, February 2005. Home and Work Panel.Base: Actively online US people age 2+.

To

tal

US

Peo

ple

On

lin

e (i

n m

illi

on

s) Percen

t of U

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line

Internet Usage Peaks In the Late Afternoon andDuring Prime Time, Competing Heavily with TV

Daytime is Primetime for the Internet

Internet Represents 15% of Weekly Media Time Spent

Source: SRI/Knowledge Networks Media Scan – Fall 2004. Other includes cinema, yellow pages and videogames.

Cable TV 25%

Magazine 3%

Other 3%

Broadcast TV 25%

Radio 25%

Internet 15% Papers

4%

Tomorrow, Internet Consumption Will Grow Faster

Source: Veronis Suhler Stevenson, Nielsen//NetRatings, Arbitron and Thomas Weisel Partners LLC. April 2004.

17%

+2%

-2%

-1%

-2%

2002 - 2007Compound AnnualGrowth Rate (CAGR)

Cable TV

Internet+17%

Magazines

Radio-1%

Broadcast TV

News-papers

Online Ad Spending is Expected to Grow…

Online Ad Spending Forecast by Vertical(US$ in Millions)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2002 2003 2004 2005 2006 2007 2008

Automotive

Business & Finance

CPG

Entertainment

PharmaRetail

Technology

Telecommunications

Travel

Other (Inc. Pol/Gov)

Source: Jupiter custom forecast, August 2005, based on CMR ad spending estimates.

Online ad spending total is expected to increase at a 14% Compound Annual Growth Rate (CAGR) over the 2004 to 2009 period.

Source: Dynamic Logic’s Market Norms, February 2004

Savvy marketers have moved away judging the effectiveness of online advertising in a direct

response vacuum where click-through was the only

important metric.

Significant increases in all branding metrics result

from online ad campaigns, when the control and exposed groups are

compared.

…Largely Due to Increases in Branding Campaigns…

…Persuading Voters Through Banner Ads

Third party research showed that favorability towards John Kerry increased by 14% among Republicans and Independents after being exposed to ads for John Kerry.

Voters pay attention to political ads. 74% of those exposed to Kerry banner ads during the Convention remembered seeing them.

Political Affiliation: Brand Metrics After Seeing Kerry Online Ads

Source: Dynamic Logic Study for John Kerry for President, August 2004

Online Ads Impact Voter Perceptions

After the third presidential debate, third party research showed that those who were exposed to DNC banner ads actually associated their messages with John Kerry.

Research was commissioned by Yahoo! and MSHC and only surveyed voters in battleground states, as defined by the DNC.

Source: Dynamic Logic Study for Democratic National Committee, October 2004

Do you associate the message “Finishes strong and is ready to lead” with Kerry?

Survey Group Control Exposed Overall (n=2,383) 42% 47% Women (n=844) 41% 52% Republicans (n=621) 11% 17% Independents (n=795) 43% 46% 3+ Impressions (n=1,275) 43% 50%

Online Landscape in 2005

Millions are online, and broadband has reached the tipping point

Voters and decision-makers have embraced the Internet, spending more time online than ever before

Reaching voters and decision-makers has never been easier

The Internet is Changing The Way Americans Live

Source: Pew Internet & American Life Project, March 2005

Fully 75 million Americans – 37% of the adult population and 61% of online Americans – used the Internet to get political news and information, discuss candidates and debate issues in emails, or participate directly in the political process by volunteering or giving contributions to candidates.

43 million people – 35% of online Americans – said they used email to discuss politics.

The online political news consumer population grew dramatically from 18% of the U.S. population in 2000 to 29% in 2004.

Whereas 11% of registered voters said the Internet was their primary source for political news in 2000, fully 18% said that in 2004.

Voters turn to the Internet for political news and information:

Reaching and Influencing Congress Online

A Radical Shift in Information-Gathering

Over the last five years there has been a radical shift in the way Congress gathers critical issue information.

Online news sites, like NationalJournal.com, WashingtonPost, and even sites like Google, have become not only a valued resource but also a way for companies and advocacy

organizations to communicate with Congress.

Preparing for a Vote, Congress Goes Online….

How Does Congress Prefer to Access Information from Interest Groups, Lobbyists and Other Sources 24 Hours Before a Vote?

49%

35%

10%

6%

Online Resources

Email

In-person visit/presentation

Printed materials sent by mail

…Seeking Policy Information and Analysis

What Information is Most Useful for Interest Groups, Corporations or Other Organizations to Provide Online?

Newly released position papers

Analysis of impact on my district or state

Tutorials explaining complex issues

Presentation of opposing viewpoints

Archived position papers

Videos of events

Other 2%

2%

40%

45%

53%

68%

70%

Source: National Journal Study

Online Landscape in 2005

Millions are online, and broadband has reached the tipping point

Voters and decision-makers have embraced the Internet, spending more time online than ever before

Reaching voters and decision-makers on the web

Reaching Voters and Decision-Makers Online

1. Targeted Banner Advertising2. Behavioral Marketing3. Contextual Advertising4. Direct-Response Marketing5. Buzz and Blog Marketing6. Landing Page & Creative Design

A variety of persuasion and direct response online advertisingmethods well-positioned to reach and educate target audiences

Targeted Banner Advertising

Combine the efficiency of direct mail with key insights from broadcast media placement to reach target audiences:

Demo-Targeting – Online ads can be delivered to those in specific demographic groups. Example: Yahoo! News, 55+ Women

Geo-Targeting – Ensure your message is only seen by those in your state, city, or district. Example: TargetPhiladelphia burbs on The New York Times

Behavioral Targeting – Serve ads based on a user’s online web-surfing behavior. Example: Deliver HomeDepot ads to people on Lowes.com

Content Targeting – Place ads on a specific website based on their content and the audience they attract. Example: Run ads only when the phrase “Iraq War” appears in a story or search query.

IP Targeting – Serve ads to specific IP addresses, such as house.gov, .mil, .edu, etc. Example: Reach Congress on The Washington Post Online

Reaching Specific Groups of Voters: Working Mothers

Working Women Are Heavy Users Of The Internet:

Spend more time online each day than in front of a television

Spend an average of 40 minutes online during the day for non-work activities

Use the Internet during the day to research news, look up the weather, do chores, communicate with friends, and generally increase their quality of life

Reaching Specific Groups of Voters: Individuals Under 35

Voters under 35 are characterized by “unsettled” lifestyles:

2004 welcomed the first group of voters who grew up with the Internet at home, school, and work

46% consider the Internet to be the “most essential” medium in their daily lives, increasing their social networks and significantly eating into their TV time

The majority prefer the Internet as their primary source of local entertainment, news, and TV information

Reach Those Interested in Healthcare Issues

110 Million US Adults Look for Health Information Online Every Month

Reach News-Savvy, Information-Seekers Online

Reach Online Influentials on Leading Political News Websites:

Influentials are private citizens who tell their friends where to vacation, which books to read, and for whom they should vote.

Influentials are more likely to vote, contribute, volunteer write letters to the editor, and get involved in local political affairs.

Find online Influentials on newspaper websites. 75% of major newspaper visitors are “very or somewhat likely” to research a candidate’s position online.

Reaching Capitol Hill Decision-Makers

85% of Congressional Staffers Turn to the Internetat Least Daily to Conduct Research for Work

Behavioral Marketing to Reach Niche Groups Online

Behavioral marketing targets individuals based on their online activities, rather than purely by the content of the pages they visit.

“Site-Centric” Behavioral Targeting Identify behaviors within a single website and serve ads to

that user at a later point in time based on knowledge of this behavior.

Example:After spending five minutes in the Business Section of the New York Times Online, you see ads for Fidelity in the Sports section the following day.

“Web-Wide” Behavioral Targeting Obtain permission from the user to identify commercial

behavior across all sites and deliver targeted ads based on “Web-Wide” behavior via desktop technology.

Example:Ads for AFL-CIO appear after you visit the Labor Department’s website.

Contextual Advertising Reaches Information-Seekers

Place information at the top of search engine results pages and only pay when people click on your ads

Customers use search engines to research products 41% of the time

Contextual ads can be geographically targeted to the city and state level

Contextual ads can also appear within relevant content

Contextual Ads Also Available in Banner Ad Formats

Washington Post and Yahoo! Also OfferContextual Advertising in Banner Formats

Reaching Influentials/Online Political Citizens on Blogs

Source: Pew, March 2005; eMarketer, May 2005

Blog Readers Are the Most Influential Online Political Citizens

By the end of 2004, blogs had established themselves as a key part of online culture and as the de facto Assignment Editor for news rooms across the nation.

Blog readership jumped 58% in 2004 and now stands at 27% of internet users.

There were 36 blogs in 1999 – today there are more than 8 billion.

Rapid growth continues…and is extended by the emergence of RSS:

Additional Information For Those Searching For It

Online Advertising During in 2004 and 2005 Election

If you are connected to the Internet, you can click on each ad to see it animate

Online is More Accountable Than Other Media

• Reports• Optimization

Advisor

Step 4

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