Monologue to Dialogue Social Media And Digital Marketing MWalsh

1. This document is best viewed in the SlideShare full screen mode or download the PowerPoint deck. Digital & Social Influence Marketing From monologue to dialogue 2 July 2009 - LAMP @ AFTRS Seminar Deck Revised: 1 October 2009 Martin Walsh Digital Marketing Director / Producer www.twitter.com/martinwalsh © 2009 Martin Walsh. Ver5.1

2. Notes: 1. To watch the videos throughout this deck simply click on the video thumbnails. 2. Some slides also include additional detailed notes so it is best to download the PowerPoint to access them in the notes section below the slide. 3. All of this material is a limited and generalised view of my more detailed knowledge on each subject contained in the deck for example; Digital PR, Search Engine Marketing, Social Influence Marketing, Measurement & Analytics and Integrated Marketing etc. I have also developed more detailed training and strategy decks as well as playbooks, guidelines, task lists, roles & responsibility definitions, workflows and everything else associated with strategy development, training, execution and the operationalisation of digital marketing.

3. About Martin Martin is the Producer of the critically acclaimed and award winning The Battle of Long Tan documentary and from 2005 to 2009 he led Digital Marketing @ Microsoft defining, developing and executing Microsoft’s B2C and B2B global digital marketing and social influence marketing strategies & disciplines. Prior to Microsoft, Martin successfully led and grew the ecommerce division of a large Australian media & entertainment company from less than AUD$22 million in annual sales to more $AUD700 million in annual sales. Martin has worked in senior marketing roles across radio, film, music, games, entertainment and the technology industries for companies such as News Corporation, Village Roadshow / PBL, Austereo, Telstra, BMG (Bertelsmann), Sydney 2000 Olympics and Tabcorp. He specialises in digital & consumer marketing, social media marketing, social CRM, search engine marketing and online analytics and he has also advised organisations such as Australian Rugby Union, Cricket Australia, film distributors, games publishers, media and government on how to engage with consumers, commercially exploit their content and enhance their digital marketing capability & strategies. In late 2004 Martin established Red Dune Films and acquired the film, documentary & story rights to the Battle of Long Tan from the seven Australian Long Tan combat commanders. In 2006 he produced the ASTRA award winning & TV Week Logie award nominated Battle of Long Tan documentary for The History Channel (FOXTEL) which was narrated by Sam Worthington (Terminator Salvation, Avatar & Clash of The Titans). The innovative marketing & publicity strategy Martin (and Graham Cassidy) developed for the Long Tan documentary & film has so far resulted in unprecedented media coverage comprising two 60 Minutes stories, magazine cover stories, a national media partnership with News Limited, a national 40th anniversary service in Canberra which was televised live on the Nine TV Network, a public thank you and apology by Australia’s then Prime Minister John Howard to Vietnam Veterans, tens of thousands of online video views and fans and an eventual upgrade to the soldiers gallantry medals. View TV coverage here. Martin is also producing a feature film on Long Tan with Bruce Beresford (Driving Miss Daisy, Double Jeopardy, Breaker Morant) directing as well as a variety of other feature films and alternate reality games (ARG’s). Born In Melbourne but now living in Sydney, Martin originally began his career as an Actor before serving with Australian Army Special Forces - 2 Commando Company, 1st Commando Regiment and then studying innovation at Swinburne University earning a Master’s Degree and Graduate Diploma in Entrepreneurship and Innovation.

4. Some great resources Groundswell: Winning in a world transformed by social technologies. Charlene Li & Josh Bernoff Made To Stick: Why Some Ideas Survive and Others Die. Chip Heath & Dan Heath The Movie Business: The Definitive Guide to the Legal and Financial Secrets of Getting Your Movie Made. Kelly Charles Crabb

5. An Internet Watered Down: or how to save the mobile web. Great resources John Pettengill, Razorfish Digital Outlook Report: 2009 Digital Mom. Razorfish Razorfish & Café Mom Click here to get all these Power to the People Social Media Tracker reports in one location. Wave 3 2008 & Wave 4 2009. Universal McCann Consumer Experience Report. Global Digital Insight: Understanding the Razorfish connected generation. Universal McCann

6. What’s happening across Media & Entertainment? CAGR 13% 25% 7% 6% 5% 7% *40% 2007-2008 4%

7. ARG’s: Alternate Reality Games, Marketing & Social Media A view to a USD$25b Opportunity Watching TV shows when and where you want to is quickly becoming commonplace in a world awash with Hulu, TiVo, and iTunes. But if the fragmented media landscape is great for consumers, it's hell for advertisers. Now, big brands are turning back to an idea as old as P&G-sponsored soap operas -- hiring agencies to create entertainment designed to promote products. Only this time, companies are doing it via playful webisodes and websites. They are also experimenting with alternative- reality games, or ARGs. These puzzles build anticipation for a product release by sprinkling clues on the Web and in the real world. Spending on these forms of branded entertainment, as it's being called, grew 13 percent in 2008 to $25 billion, according to estimates from the research firm PQ Media.

8. ARG’s: Alternate Reality Games, Marketing & Social Media The Dark Knight: Why So Serious? Click image to watch video 10m unique participants in over 75 countries 42 Entertainment across 31 websites. Why So Serious? Gave comic book fans and mainstream movie goers the chance to live in the world of The Dark Knight. Playing out the events of Gotham City in real time, the ARG provided the opportunity to explore the strong characters, themes and backdrop of the world while punctuating the experience with activities that ‘eventised’ the web – like ringing cakes with baked in mobile phones, clearing Harvey Dent of vicious campaign attacks or helping the Joker to steal a District 22 school bus to rob Gotham National Bank. http://www.alternaterealitybranding.com/tdk_sxsw

9. ARG’s: Alternate Reality Games, Marketing & Social Media The Dark Knight: Why So Serious? 42 Entertainment Click images to watch videos Harvey Dent Why So Serious Comicon 08

10. ARG’s: Alternate Reality Games, Marketing & Social Media Trent Reznor: Year Zero Click image to watch video 42 Entertainment 3.5m unique participants in over 60 countries across 29 websites. On Feb 10th, Nine Inch Nails and 42 Entertainment launched the ambitious Year Zero project, a work of cross-media art involving websites, emails, phone calls, murals and live events with songs of Year Zero at their core. Arguably the most complete and compelling web- based piece of art yet created, Year Zero has become an Internet phenomenon as well as a dynamic album, changing the way people think about the future – and the way they act today. These trans-media assets turned http://www.alternaterealitybranding.com/cannes2008yearzero/ Year Zero into more than an album you listen to, but a place where you live.

11. Digital Music: Apple Content Strategy The iTunes Store The App Store 6 iTunes Scale App Store Strategy • On Jan 06, „09 Apple announced Best-of-Breed • App Store economics are Services 5 that it had sold 6 billion songs identical to iTunes Store – Songs Sold (billions) Device Carrier Disinter- Software mediation 4 since launch of the store on Apr i.e. 70/30 revenue split. 28 „03. • Despite likely large scale 3 • On Apr 3, ‟08 iTunes surpassed Device Applications and huge number of Hardware & SDK 2 Wal-Mart to become the largest downloads, Apple will make music retailer in the US. only a small profit. 1 • Just two months earlier, on Feb Sync Client Music • Main goal is a more & Video 26, ‟08, iTunes surpassed Best & Content iPod 0 Service attractive platform that Buy to become the 2nd largest Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… FY03 FY04 FY05 FY06 FY07 FY08 FY09 ...Apple makes money selling devices but drives hardware margin. Source: Apple Press Releases & Microsoft music retailer in US. earns its keep through hardware + client + Analysis service e2e differentiation... iTunes Economics Quotes about App Store Strategy “We‟re thinking about the App Store in the same way that we think about the % of • Although iTunes drives billions in US $ iTunes store. While it will generate some revenues, it will be a small profit revenue it makes only a small operating Music DTO Rev generator, and just as with the iTunes store making iPods more attractive, we profit. think the App Store will make the iPhone and iPod Touch more attractive to Revenue ($/unit) $0.99 100% • Apple uses the iTunes service as a customers. We‟ll hopefully see an indirect return by selling more iPhones and iPod Royalty Costs $0.70 71% differentiator but monetizes via the Touches…” - Peter Oppenheimer, CFO, Earnings Call, Jul 21, 2008 device. Delivery Costs $0.10 10% • “Our objective with the iTunes store is Billing Costs $0.12 12% “…One area where we have completely changed the value proposition for mobile to run it just a little above break even. devices is the App Store…Competitors are scrambling to copy our App Store but Total COGS ($/unit) ~$0.92 ~93% And we think that it helps us to sell it‟s not as easy as it looks and we are far along in creating the virtuous cycle of iPods and Macs, and that is really our Gross Profit ($/unit) $0.07 7% cool applications begetting more iPhone sales, thereby creating an even larger strategy.”, Apple CFO Peter market which will attract even more iPhone software development….” - Steve Operating Exp ($/unit)~$0.07 ~7% Oppenheimer, Q1-08 Earnings Call, 22 Jobs, CEO, Earnings Call, Oct 22, 2008 Jan „08. Operating Inc ($/unit) <$0.02 <2%

12. Mobile Phones: App Store Analytics App Store Stats Revenue into ISV Ecosystem • On Feb 14th, 2009 – 218 days after launch of the App Store – • App Store pours money into ISV ecosystem there were 20,397 apps.  In first month, 60M downloads drove App Store revenues of $30M • Current App Launch Momentum: with $21M going to ISV‟s  At current trends, will drive $360M revenue in 1st year, with  1,400 new apps launched/week $250M to ISV‟s.  400 new games launched/week.  FY‟11 est. of $2B revenues w/$1.5B to ISV‟s • 1B downloads estimated in 1st 12 months. • Ratio of 1 paid app for every 11 downloads. • Download Stats: • Most revenue goes to a concentrated group of ISVs (perhaps Days Since Launch of App Store 60 102 145 189 80% to top 25). Incremental Days 60 42 43 44  40% revenue goes to top 10 apps New Downloads (millions) 100 100 100 200 • Stories of developers making $100-200K abound, driving a Cumulative Downloads (millions) 100 200 300 500 “gold rush” like focus App Store Momentum App Store Categories 25,000 20,397 20,000 Applications Number of Apps 27% 15,000 14% 10,000 3% 9% 3% 4% 5,000 8% 4% 7% 6% 5% 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Note: Analysis, Feb 14, 2009 Weeks Since App Store Launch Note: Analysis, Feb 14, 2009

13. TV 2.0: More about Digital and Less about Television VIEWING & CONTENT AUDIENCE STORAGE PRODUCTION AGGREGATION DEVICES

14. TV 2.0: Today Online Interactive Video Television

15. TV 2.0: Tomorrow Traditional Television Interactive Online Television Video

16. TV 2.0: Xbox, Netflix & Social Networking Microsoft and Xbox were the only gaming & entertainment company to understand the importance of the shift in consumer behaviour and the convergence of media channels. 1m of Click images to watch videos Xbox Live members are already Netflix members and have watched more than 13m videos (1.5b minutes) through Xbox. Xbox has the highest software attach rate vs Playstation and Nintendo with less market share Xbox Entertainment Platform than WII but greater than Playstation. Xbox Live is already one of the largest social networks in the world with more than 20m active users and 56% of them pay! At 2009 E3, Microsoft Xbox announced the integration of Twitter and Facebook into Xbox Live and upgrading of video to 1080p. Xbox Twitter & Facebook

17. Gaming: Quick Stats There are approximately 93m games consoles in the home. Worldwide Top Super Genres 70,000,000 The average age of a gamer in Australia is 30 years old. By 60,000,000 2014 the average age will be 40 years old. 50,000,000 84% of 16-25 year old Australians play games. 40,000,000 Units 46% of Australian gamers are female up from 41% in 2007 30,000,000 but by 2012 the proportion between male and female will be equal. 20,000,000 19% of Australians are already downloading their games 10,000,000 from online vendors. The average cost of producing games is now between $10m and $50m. Gamers take more advantage of Web 2.0 functions on the Internet.

18. Current Media Landscape (By Discipline) Landscape is fractured; territory battles continue between digital and offline media organisations and agencies, particularly over interactive TV and video as GRPs decline. Radio • Media is trying to tap into the media dollars allocated to Local TV OOH emerging media / gaming, digital, Guerilla Offline and sponsorships. Emerging Digital Newspaper OOH (187B$+) Magazine • Key growth opportunities exist at Channels VOD TiVo DRTV the intersections: Mobile Set-top video Broadcast TV • Online Display and Video extensions Google TV Gaming Cable TV • Cable Television Online • Broadcast Television Video Search Content integration Digital ($26B+) Online Product Placement microsite / Display brand extensions Sponsorships Events Size of circles is not proportional to agency head count or channel spend. Emerging channels / sponsorships spend included in digital 18 and offline totals.

19. Why am I spending time on this?

20. Change, chaos and confusion = Opportunity! And original content will always be needed!

21. DIGITAL MARKETING IS MARKETING THAT LEVERAGES THE INTERACTIVE CONNECTIONS BETWEEN SEEKERS AND PROVIDERS ENABLED BY DIGITAL MEDIA AND DEVICES.

22. Video Brands and Digital Marketing Platforms

23. The Marketing Funnel Isn’t Linear (hell, it’s not even a funnel)

24. Traditional Marketing Models Fail to Model Complex Buying Paths Traditionally, marketers modeled customers’ decisions as they progressed from awareness through consideration, preference, action, and loyalty — through what is called the marketing funnel. The marketer’s job was to move people from the large end down to the small end. But now it’s time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they lead the dialogue. We must rethink the marketing funnel because: • Complexity reigns in the middle of the funnel. • The most valuable customer isn’t necessarily someone who buys a lot. • Traditional media channels are weakening. • Consumers force brand transparency.

25. Traditional Marketing Models Fail to Model Complex Buying Paths • Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such as recommendations from friends or family, product reviews, and competitive alternatives described by peers influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back alleys, alternate entry and exit points, external influences, and alternative resources. • The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era in which peers influence each other as much as companies do, good customers can’t be identified solely by their purchases. Companies also need to track individuals who influence others to buy. For example, a customer who buys very little from you but always rates and reviews what she buys can be just as valuable as someone who buys a lot — her reviews might influence 100 other people to buy your product. Tracking only transactions and loyalty at the end of the funnel misses this significant element of influence. • Traditional media channels are weakening. Marketers continue to use mainstream media messages to move consumers into a consideration frame of mind. But passive consumption of media is waning. Individuals dismiss or ignore marketing messages in lieu of information available from an ever-increasing number of resources, such as product review sites, message boards, and online video.

26. Today’s Complex Buying Paths Marketing complexity means that traditional methods and metrics fail to address and capture the whole story. Online metrics like unique visitors to a Web site, number of pages viewed, and time spent per page mimic offline media metrics of reach and frequency. But traditional marketing and traditional measurement doesn’t address or indicate the engagement of an individual; they fail to address or capture the sentiment, opinion, and affinity a person has towards a brand as manifested in ratings, reviews, comments in blogs or discussion forums, or the likelihood to recommend to a friend.

27. Marketing Needs to Shift Focus from Low Value Broadcast Campaigns to High- Value Timely & Relevant Programs

28. Traditional Marketing Approach Good at: – Helping you better target your marketing – Predicting response rates – Optimizing spend by reducing marketing waste – Understanding buying modalities Not so good at: – Answering the “When” question – Lending itself to automation

29. Real-Time Marketing Approach Good at: – Identifying new sales opportunities and changes in behavior – Immediately triggering a marketing response – Building program equity through automation Not so good at: – Understanding the entire customer context

30. No Shrugging Shoulders: Move More Marketing Real-Time

31. Now, it’s a big digital world out there…

32. Video

33. Consumer Behavior in Australia has changed… In fact consumer behaviour changed two years ago so social media behaviour is not ‘a new fad’!

34. Starting in 1995 people became interested in online content…..

35. 13 Years of Online Content Growth! # display impressions across the web (millions)

36. But a few years ago…..

37. …people started to become more interested in each other…..

38. Social Media Marketing Questions start conversations

39. “Social Media is like teen sex. Everyone wants to do it. Nobody knows how. When it’s finally done there is surprise it’s not better.” Avanish Kaushik, Occams Razor

40. In all seriousness though, officially..... SOCIAL MEDIA IS AN UMBRELLA TERM THAT DEFINES THE VARIOUS ACTIVITIES THAT INTEGRATE TECHNOLOGY, SOCIAL INTERACTION, AND THE CONSTRUCTION OF WORDS, PICTURES, VIDEOS AND AUDIO.

41. Putting it more simply: “Social media is people having conversations online.”

42. SOCIAL NETWORKING SITES ARE OFFICIALY MORE POPULAR THAN PORN SITES. TIME OCTOBER 13, 2007

43. Social media sites are mushrooming

44. But it’s still a dynamic environment So don’t put all your eggs in one basket!

45. Social media – The conversation prism Social media is primarily about conversations, so it is important for you to understand where the conversations are taking place.

46. Social Media’s Growing Importance Total minutes consumed by Top 100 websites *On Demand Media explodes; ComScore Networks and Piper Jaffray & Co.

47. The conversations are powered by: • Blogs • Micro blogs • Online chat • RSS • Widgets • Social Networks • Social Bookmarks • Message boards • Forums • Podcasts • Video sharing sites • Photo sharing sites • Virtual worlds • Wikis (…just to name a few)

48. Understanding Social Media: some video snacks Click an image below to watch a short video >

49. It is absolutely critical for marketers to understand WHY people are participating in social networking….

50. Why users participate in Social Networking Time and time again we hear agencies advising clients that they need to have a Facebook page or develop a social networking application as part of the social media program or marketing campaign. If you don’t understand the fundamental attributes of why consumers participate, for example meeting others, keeping up friendships or being entertained then you are simply wasting time and money and in some cases being counter productive to your marketing efforts. If you don’t develop a presence or application which addresses some or all of the attributes on the next couple of slides then don’t bother.

51. Why users participate in Social Networking Why audiences engage in social networking: • Meet people - 78% join to communicate with existing colleagues or develop new acquaintances • Be entertained - 47% join in order to find entertaining content such as photos, music or videos • Learn something - 38% join to get information from other people about topics that hold particular interest to them • Influence others - 23% join to express their opinions in a forum where their ideas can be discussed or acted upon

52. Why users participate in Social Networking More broadly: • Keeping up friendships – Facebook is about connecting with people you know. • Making new friends – We’ve all heard stories of people hooking up on social networks. • Succumbing to social pressure from existing friends – People in the groundswell want their friends there too. • Paying it forward – Having seen that a site is useful, you may be moved to contribute. • The altruistic impulse – People give blood because they think they should. • The prurient impulse – People are fascinating. Some are sexy, some are entertaining, and some, frankly, are stupid. • The creative impulse – Not everybody is a photographer, a writer, or a videographer, but for thow who are the web is perfect to show off their work. • The validation principle – People who post information on Yahoo! Answers or Intuit’s tax wiki would like to be seen as knowledgeable experts. • The affinity impulse – If your soccer team, your PTA, or your fellow Swans fans have connected online then you can join and connect with people who share your interests and concerns.

53. The Social Media Stack In order to leverage the Social media opportunity you must first understand the Social Media Stack. It is not a traditional publishing medium where you simply serve a banner ad and expect a response. All you can do is try to inspire conversations through some sort of creative and communication, then enable and facilitate conversations through applications which allows you to connect to the users. 1. Platforms give you access to reach and connections 2. Applications enable the interactions 3. Ads can inspire the conversations

54. Evolution of online advertising

55. How additional brand value is created on social networks

56. The world has also shifted from Passive consumption to Active participation

57. More than 13,000,000 articles

58. > 100,000,000 videos viewed per day 88% is new and original content 65,000 new videos / day

59. 400,000,000 blogs 73m in China alone

60. 3,600,000,000 photos on Flickr

61. 5,000,000,000 minutes spent on Facebook everyday

62. 1,000,000,000 links, news stories, blog posts, photos & videos shared each week on Facebook

63. 1,382% Monthly growth rate of Twitter users from Jan to Feb 2009 and 3,000,000 Tweets per day But, only Of Australians 4.4% are on Twitter

64. 62% of online Australians read blogs

65. 62% (5.3m) have joined a social network

66. 79% watch video clips online

67. AND THIS FUTURE IS TODAY, NOT TOMORROW…

68. By 2010, Millennials / Gen Y-ers will outnumber Baby Boomers.

69. They are today’s “digital natives.”

70. MILLENIALS SPEND > 16 HOURS / WEEK ONLINE.

71. 96% OF THEM HAVE JOINED A SOCIAL NETWORK.

72. They have an average of 53 online friends.

73. Trends Gen Y: Emotionally Searching For Their Identities Adolescents and early adults are at a period of self-discovery, shaped by their environment, education and activities, and social culture. That's why they: • Seek recognition and fame. • Enjoy absurdity — and humor with an odd slant. • Embrace a variety of subcultures.

74. Trends Gen Y: Mentally Fickle And Creative Few Generation Yers can remember a time when technology — from DVDs to PCs — did not play an important part in their lives. Having grown up with deep exposure to media and devices, they: • Skim text and information quickly. • Are easily bored. • Are expressive and creative.

75. Experience and engagement matters…

76. Marketing and customer behavior has changed ediocre experiences just don’t resonate with today’s customers M Life would be so much easier for companies if their customers still responded to the same old marketing pitches. But unfortunately, customers are heading in the opposite direction and getting tougher to win and keep. Forrester research shows that consumers: • Aren't easily influenced. • Care more about price. • Use more channels.

77. Marketing has changed But Companies Still Head Towards Customer Experience Mediocrity What have companies done with their customer experience efforts to survive in this era of skeptical, empowered customers? Not much. For example, when we evaluate organizations' Web sites, they often fail even the most basic tests of usability and brand building. What causes these problems? Ultimately, companies don't deliver strong customer experiences because of: • Siloed efforts. • Industry tunnel vision. • Self-centered design.

78. Consumers want more from brands They want less promise and more experiences From brochure-ware websites...

79. Consumers want more from brands They want less promise and more experiences To everyday experiences + interactions... *Optimised for all devices & services

80. Services which can be mixed and mashed

81. Consumers no longer care about advertising. They care about what their friends and peers think.

82. And this is not a fad. It’s a fundamental shift in the way we communicate.

83. “IN 2008, IF YOU’RE NOT ON A SOCIAL NETWORKING SITE, YOU’RE NOT ON THE INTERNET.” IAB PATFORM STATUS REPORT USER GENERATED CONTENT SOCIAL MEDIA AND ADVERTISING, APRIL 2008

84. The old communication model was a monologue

85. The average person is exposed to 3,000 advertising messages / day.

86. Only 18% of TV ad campaigns generate positive ROI

87. 90% of people who can skip TV ads, do.

88. People have become less interested in the ads Click-through rates on display ads

89. 1995 2009

90. AND ONLY 14% OF PEOPLE TRUST ADVERTISEMENTS.

91. BUT 60% OF AUSTRALIANS TRUST THE RECOMMENDATIONS OF OTHER AUSTRALIANS. NIELSEN ONLINE CONSUMER GENERATED MEDIA REPORT JAN, 2008

92. So...... 14% vs. 60% hmm….

93. But it is still about the total sum of the parts. TV + Radio + Print + Display + Search + Social Media = a better integrated marketing result. You need to understand that advertising now inspires the conversations.

94. Digital Marketing Thinking More Broadly... Lester Wunderman’s Nine Points For The Future Of Advertising: 1 Interactive marketing on the Internet is a strategy, not a tactic 2 The customer, not the product, must be the hero 3 Communicate with each customer or prospect as an audience of one 4 Create relationships 5 Know and invest in each customers Lifetime Value 6 Media is a contact strategy 7 Be accessible to your customer 8 Acquire customers with the intention of loyalising them 9 You are what you know

95. We have seen the rise of information democracy From information asymmetry... • Information was scarce • Customers were ill-informed • Exchanges were monologues • Marketing was “command-and-control” … To information democracy • Information is ubiquitous • Customers are well-informed • Exchanges are conversations • Marketing is “connect-and-collaborate”

96. The new communication model is a dialogue

97. Which means it’s…. TRANSPARENT INCLUSIVE AUTHENTIC VIBRANT CUSTOMER-DRIVEN

98. And it’s NOT…. CONTROLLED ORGANISED EXCLUSIVE PRODUCT-DRIVEN “ON MESSAGE”

99. “Content is the new democracy and we the people, are ensuring that our voices are heard.” Brian Solis, “The Social Media Manifesto.”

100. Translation: THE TRAIN IS LEAVING THE STATION. WITH OR WITHOUT YOU.

101. HOW DO I GET ON THE ? TRAIN

102. Stop thinking ‘campaigns’ Start thinking ‘conversations’

103. “Social Media is a commitment, not a campaign.” Martin Walsh, Microsoft Social Influence Marketing: Point of View Manifesto October 2007

104. And by the way, hope is not a strategy.

105. Social Media Marketing A Systematic Approach to a Social Strategy Consumers using social technologies threaten traditional marketing institutions like brands and ad campaigns. For the most part, marketers understand that there's no choice but to dive in and use some of those technologies — blogs, communities, wikis, widgets, social networks, and all the rest — to their own advantage. We get questions from our clients all the time about how to implement these technologies. But they're often asking the wrong question first. Don't ask what technology to use. Ask first who you're trying to reach, what you're trying to accomplish, and how you plan to change your relationships with your customers. Then, and only then, can you decide what technologies to use. We outline below a systematic method for social strategy formation: 1. Listen. Benchmark the existing conversations around yours and your competitors brands, products and services. 2. People. Review the Social Technographics Profile of your customers. (see next slide) 3. Objectives. Decide what your goals are. 4. Strategy. Determine how your objectives will change your relationship with customers. 5. Technology. Choose the appropriate technologies to deploy. 6. Engagement. Social Media is not a passive medium and doesn’t follow traditional marketing rules so you need to develop playbooks, policies, guidelines, clear roles & responsibilities and methods to successfully engage with consumers & influencers. 7. Measurement. You must develop a plan which allows you to determine and measure social media’s influence on your marketing investments and efforts. It is critical that the insight and information is actionable.

106. SMM Program Goals: Improved Visibility, Strategy, Capabilities Across the Social Media Spectrum Ignore Watch React Engage Leverage Drive

107. “It’s about conversations, and the best communicators start as the best listeners.” Brian Solis, Social Media Manifesto

108. A. Listen.

109. Immerse yourself in the conversations. (any or all of the above are a good place to start!)

110. Listening - Benchmark Understand and Measure Existing Online Conversations: A Benchmark report allows you to answer questions like; how many people are talking, what are they saying, and whether consumers are frustrated or satisfied with your products and services and many others. It allows you to understand the entire social media landscape in relationship to your brand, products, services and important issues for example your Share of Voice (SOV), where the conversations are taking place, sentiment and who the key influencers are. It should include a highly comprehensive executive analysis to produce actionable intelligence that goes far beyond simple online "buzz" analysis. The Benchmark should provide detailed topic and sentiment analysis as well as authority information about the key sites, authors, posts and comments that comprise the "conversation ecosystem" around your brand.

111. Listening: Tools

112. Listening - Social Media Monitoring Dashboard TruCast.

113. Listening - Social Media Monitoring You must also map the Ecosystems relating to your brands, competitors and key topics so you can identify where the conversations are taking place, who the key influencers are, what your share of voice is and what sentiment exists.

114. Listening: Share of Voice - 5 Key Scenarios (example only) Share of Voice Windows% Apple% More Media, More Places 6% 60% All Your Email One Place 20% 4% Work From Anywhere 24% 10% Share Memories As They Happen 5% 24% Keeping Kids Safe Online 20% 17%

115. B. People.

116. People: Review the Social Technographics profile • Most people often approach Social Media as simply a list of technologies to be deployed as needed — a blog here, Facebook page, community or Twitter account there — to achieve a marketing goal or because it is the latest Shiny Object. • But, a more coherent approach is to start with your target audience and determine what kind of relationship you want to build with them, based on what they are ready for. • Forrester’s Social Technographics Ladder classifies people according to how they use social technologies. • By examining how the technologies are represented in any subgroup, strategists can determine which sorts of strategies make sense to reach their customers.

117. Australian Social Media Participation Ladder Forrester Social Technographic Tool - http://www.forrester.com/Groundswell/profile_tool.html Creators: make social content go. They write blogs or upload video, music or text. Critics: respond to content from others. They post reviews, comment on blogs, participate in forums, and edit wiki articles. Collectors: organise content for themselves or others using RSS feeds, tags and voting sites like Digg.com. Joiners: connect in social networks like Facebook and MySpace. Spectators: consumer social content including blogs, user generated video, podcasts, forums or reviews. Inactives: neither create nor consume social content of any kind

118. C. Objectives.

119. Objectives: Determine your social media objectives By itself, the profile of a target customer only tells a marketer what's possible. Next you should decide what you want to accomplish. FYI - an objective is not ‘establish a Twitter account.’ There are generally eight main objectives of social strategies for connecting with consumers. To get started, pick the one that's best suited to your company's overall goals: • Listening. Find out what customers are really saying in order to understand them better. • Talking. Spread messages about a company. • Energizing. Get a companies best customers to evangelise it’s products. • Spreading. Get customers or users within a company to encourage others to adopt a product or service. (B2B only) • Supporting. Help customers support each other to solve each other’s problems. • Embracing. Integrate customers into the way the business works, including using their help to design products and improve processes. • Managing. Empower employees and managers within an organisation. • Social Impact. Improve society with non commercial applications. For example - if your key objective initially is energizing your most loyal customers then executing against this objective allows you to give a voice to your enthusiastic customer base and with the right social strategy this has the potential to increase sales.

120. Example: A Social Media / Social Influence Strategy Overview Strategy 1: Social Media Program Management • Objectives • Strategy & Tactics • Monitoring, tracking, analysis Strategy 2: Engagement Programs Strategy 2a: Audience Advocacy Programs Strategy 2b: Social Media / Digital PR Identify and engage various audience Advocate groups to become a Identify and engage key writers, bloggers and mainstream influencers that word-of-mouth channel that will facilitate learning and trial of multiple will facilitate through a formal proactive outreach program. Microsoft products and services among their families, friends and peers. Search Engine Marketing On Network Off Network Strategy 3: Online Experiences Build and facilitate online experiences where customers can come together and showcase inspiring product stories, compelling examples and ‘how to’s’ delivered through the voice of our brands, partners and passionate customers. On Network Off Network User Generated Content Wiki’s Ratings Blogs Reviews Forums Video casts Communities Audio casts Comments Photos Feedback RSS Social bookmarking Tagging

121. Social Media Plan Primary objective: Harnesses genuine experiences and inform and inspire customers in ways that are interactive, dynamic, and personal. Objectives Goals: Brand = net favorability for our brand in web sphere = +share of voice, 1. Leverage the passion and experience of our most engaged audience to drive buzz sentiment, recommendation = Net Promoter and excitement for our brands, products and technologies 2. Building on ‘help and how to’ enable engaged audiences to share their delight and Strategies passion for our brand / product with others through UGC. 1. Social Media Management (SMM) – What really influences 3. Understand and monitor the sentiment and share of voice that we have online. Find 2. Engagement Plan – Reach out, engage and facilitate favourable conversations strategic opportunities to participate in the conversation and increase volumes. a) Consumer Advocacy Program – Organize passionate audiences to drive the conversation b) Social Media / Digital PR Program – Converse and influence the influencers 3. Online Experiences – Give us a voice in the community (on network and off network) Questions to be answered 1. Can we move the share of voice online closer to relevant competitors? SMM 2. Will moving share of voice impact market share? Purchase decisions? 3. What is the right balance between advocates and our own voice? measure ID potential 4. Will strong advocates move the sentiment among audiences? advocates What the plan is not 1. Strengthen partner ecosystem Increase Contact volume them 2. Deep gaming scenarios 3. Shopping aids Advocacy Program 4. E Commerce plan to drive online sales of relevant products Amplify “UGC is useful to nearly 1/3 of consumers as they research products and services. their impact Arm them The most trustworthy of all UGC is that which appears on a company’s own website.” Activate David Card, Jupiter Research Online Experience them

122. D. Strategy.

123. Strategy: Determine how your objectives will change relationships with your customers Your objective determines what business goal you want to accomplish. Having decided on the objective, you can move on to strategy: how will you accomplish the goal? In particular, social strategy revolves around answering this question: How do we want to change our relationship with our customers? While activities like social marketing campaigns can sometimes have a short-term impact, the long-term value of activity in the social world is the ability to change relationships with customers. By focusing on the relationships, not the technologies, marketers can keep their eye on long-term change that matters. To flesh out this type of strategy, we should take the following steps: • Describe the new relationship. Our current relationship with most of our customers is as a trusted supplier of software which just works. In energizing our core customers, we will extend this relationship, giving our satisfied customers opportunities to discuss their experiences on our website, and by doing so, motivate other customers to buy and help establish a better perception of our products. • Measure the impact of the change. It's crucial that we have metrics in place to measure progress towards the objective. For example, in energizing strategies we should measure to what extent visitors to social elements of the site are more likely to actually buy something. If our objective is talking with customers, we should measure awareness, impressions, or online buzz. If it's supporting, we should look for declines in support costs related to site visits. Regardless of the objective, our strategy is not complete without a success metric. • Identify barriers to the strategy. Change created by social strategies is often difficult for companies to swallow. For example, we are starting to have more direct relationship with all of our customers. By featuring customers' opinions on its site, we will be admitting that those consumers influence buying decisions as much as we do, a transition some Microsoft marketers might find difficult to make.

124. Strategy: Example Only Strategy 1: Social Media Management • Develop a baseline / benchmark of relevant sentiment and share of voice and map the ecosystem • Monitor, engage and track relevant Social Media conversations • Build engagement programs specific to individual scenarios focusing on most influential conversations • Monitor engagement strategies against SOV/sentiment Strategy Strategy 2: Advocate Community and Energise UGC • Launch a Windows Advocate Community on MSCOM Australia • Test and learn best practices for ‘onboarding’ advocates • Grow advocate community • Showcase User Generated Content (UGC) across the Windows network Strategy 3: Online Peer to Peer Discussions – Forums • Develop "owned" / managed forums with a friendly consumer "front end" focused on the needs of consumer scenarios where Windows plays a key role • Facilitating peer to peer conversation on Windows properties will increase Windows SOV in online conversations currently being dominated by Apple and Yahoo. Strategy 4: Digital PR and Social Media Newsroom • Identify and consistently engage key influencers; bloggers and the media, to drive more favourable conversations & Share of Voice (SOV) and minimise negative sentiment. • Establish a Social Media Newsroom on MSCOM

125. E. Technology.

126. Technology: Select and deploy appropriate technologies By this point, you should have determined your customers' profile, what technologies they will accept, and at what rate. Since you also now know your objective and have nailed down a strategy, you can now evaluate technologies. This is why it makes sense to evaluate technologies only after you've finished the other steps. The technologies you choose will be determined by the technographics profile of your customers, your issues, problems, objectives and strategies. 1. For example, you could recommend deploying Ratings and Reviews because 32% of Gen X online customers in Australia are likely to be Critics. The best energizing technology would be to deploy these ratings and reviews on our Web sites and encourage customers to post their own evaluations of our products. 76% of all Australians use online reviews to help them make purchases. It has already been proven that ratings and reviews can significantly increase sales and increase sales conversions between 29-50%. Forrester's research shows that 80% of customer-supplied reviews are positive. 2. In addition, we should also establish a online community to allow our energised customers to support other customers around our products and technologies. Most people come to MSCOM and in particular our Windows sites for post-purchase information and there are hundreds of thousands of people, forums and websites out across the Internet who deal with niche topics such as Media Centre or Photos or Windows Tweaks & Tricks. 3. User-generated content. We might also enable customers to energize others by allowing them to upload their own articles, videos and pictures of their experiences with our products.

127. F. Engage!

128. Develop your engagement rules and response management approach first…

129. Social Influence Marketing Successful Social Influence Marketing Requires Engagement By now, it’s clear that successful Social Media programs don’t follow traditional marketing rules; they can’t be treated as channels because social networks aren’t passive Web pages. Instead, marketers should mimic how bands promote themselves on sites like Facebook / MySpace — they engage their fans by posting frequently, providing backstage gossip, and answering their questions. Marketers should emphasize and place a focus on relationships at the center of their Social Media effort: • Know what kind of relationship you want to develop. • Provide real value. • Get employees to be actively involved. • Participate without fear, and respond quickly to feedback. • Keep growing the relationship. • Use the right metrics.

130. Use a stepping approach:

131. Develop your policies, guidelines and playbooks before you engage. Educate and train your team.

132. Get your response assessment decision tree, rules, roles & responsibilities and workflow sorted…

133. User Generated Content Six Tactics To Successfully Engage With UGC Interacting with customers at a more intimate level requires a different way of thinking. While the loss of control and exposure created though the necessary openness can be troubling at first, there are some key tactics companies can use to stay on top of the situation. Knowing where communities currently congregate and what is being said is critical before you attempt to enable your own UGC. To begin with UGC, follow these six steps: 1. Monitor customers generating content about your brand, products and or needs. 2. Leverage your UGC community. 3. Participate in existing customer-driven communities. 4. Respond to negative commentary. 5. Select the right technology to engage your customers. 6. Enable your audience to create content on your behalf.

134. User Generated Content You can track its value!

135. Social Media Engagement Models

136. Remember, messages are not conversations.

137. Structured Approach to Social Media 2. Strategic Plan 3. Active Engagement • What are most effective ways to reach audience with • What affinity groups are evident and how do they content and brand artifacts? 3. self-organize? • Who are where can we begin the process and leverage Active • Which individuals represent the proper sentiment network effects? Engagement for our metrics and goals? • How can we use intelligence to improve search and • How has message and proliferation changed over keyword strategy? time? Brand 4. 2. Messages & Evaluate Strategic Plan CGM Effectiveness 4. Evaluate Effectiveness 1. Ecosystem Mapping 1. • What is the update and adoption rate and how are • What is the baseline level of activity and my artifacts being spread? sentiment occurring in the ecosystem? Ecosystem • How can I leverage the network to amplify the Mapping • What are the affinity groups centered impact? around identified relevant topics? • How can we take this insight and optimize • Who are the subject matter experts • Future marcomm initiatives and influencers in these affinity groups? • Feedback loop

138. Audience Advocacy Program Primary objective: Identify and engage Brand Advocate groups to become a word-of-mouth channel that will facilitate learning and trial of multiple our products and services among their family, friends and peers. Phase 1 Objectives Tactics 1. Organize passionate customers to drive conversations 1. Identification methodology and recruitment program to build & engage advocate base 2. Drive greater retention through deeper engagement across product lines 2. Horizontal community that supports multiple products, services & experiences 3. Facilitate peer learning and sharing 3. Points driven recognition program to deepen and drive engagement 4. Macro understanding of influential powers of different types of advocates. 4. Tools to facilitate sharing, learning and doing Long Term Objectives 5. Deploy 3 types of advocates to test and learn where we can be most effective; FTE’s, 1. Provide us with an authentic way to gather and operationalize customer feedback formal advocates and self proclaimed advocates. 2. Exponentially grow WOM and increase customer lifetime value 3. Micro understanding of influential power of 3 different types of advocates. Build Goals: Growth and engagement patterns of advocates, +online registrations, +cross engagement campaigns accordingly. product usage, -churn Questions to be answered 1. Can we identify and activate our brand advocates? Refine ID/Profile Algorithms Community 2. Will they be willing to consistently showcase their own inspirational/aspirational uses Advocate/Social Networks Pilot Design Scale Other Users/Social Networks Users/Social Networks of multiple products? Campaigns Start 3. Through this community platform, can we cultivate and grow our base of passionate, Here Ongoing Data Mining Refine engaged customers? Build ID Algorithm Outreach to advocates Community Strategy & Recruit Users Tour Community Opt-in Overlay 4. Can we measure the impact on loyalty and retention?   Über user Segments  Tour  Survey Platform   1:1 Interview Show & tell tendencies TRACKING  Special interests  Activity level COMMUNITY  Challenge/Solutions Feedback What the plan is not Dashboard   Referrals Ratings   Tips/Techniques Cool ideas Reporting  Cross-product usage  Special spaces 1. Brand generated vertical communities   Content creation Retention   Contests Promotions Refine  2. Viral marketing campaign with short-term results Scale/Growth Triggers Feedback Engagement  Evaluate Drives  Expand Community 3. One way, brand-to-consumer communication Scope USER TYPE RECOGNITION  Catalyst for deeper engagement  Casual  Drives WOM  Über  Advocate Most brand websites are largely out of sync with the tone and tenor of consumer Higher Tier conversation….to remain relevant brand websites need to provide social currency to Invite  advocates for PROFILE Recognition deeper involvement Yes influencers.  Exclusive content and communication  Advocate traits  Behaviors  Patterns Social Media Monitoring and Analysis Report, Aberdeen Group, January 2008

139. Social Media - Engagement Models Authentic Voice Community Connection Leverage internal or Outsourced Play a role in the external experts to evangelize to customers customers Authentic current participatory Voice environment Facilitate relevant Brand Ambassador conversation at its source Provide a gated community for staunch brand allies – access Brand Community Amplify participation with and assets are key Ambassador Connection a brand or product through relevance, Provide a privileged entertainment and utility relationship for industry luminaries who are not Gather unfiltered necessarily our brand allies audience insights from online communities

140. Authentic Voice Direct to Influencer Outreach Program Objective • Leverage internal and /or outsourced experts to evangelize to customers • Place the brand message into the heart of the conversation where it has not existed previously • Implement a toolset to prioritize and streamline the direct to customer communication plan Impact to the Organization • Improve sentiment and customer satisfaction improvements through high value, direct to customer interactions • Dramatically increase the workflow efficiency • Tap into high impact low dollar marketing channel Success Measured By • Increased interactions with influential's • Increase in related topic posts/mentions • Positive change in overall sentiment and number of posts • Improvement in number of interactions per SME • Correlation of sentiment with active and passive participation

141. Brand Ambassadors Improving Advocates, Partnerships and Sponsorships Objectives • Provide a gated community for staunch brand allies – access and assets are key • Provide a privileged relationship for industry luminaries who are not necessarily our brand allies Impact to the Organization • Have a highly scalable and measurable means to deliver content and information to group of influential's • Open up a relatively free distribution channel through the influential's loyal base • Map ecosystem in order to scale out and prioritize your list of Advocates and your messaging schedule • Monitor ongoing health of Advocates Success Measured By • Passive and active participation metrics • Sentiment and impact shifts

142. Community Connection Facilitating Peer to Peer interactions Objectives • Play a role in the customers current participatory environment • Facilitate relevant conversation at its source • Amplify participation with a brand or product through relevance, entertainment and utility • Gather unfiltered audience insights from online communities Impact to the Organization • Increase brand loyalty by demonstrating a keen understanding of an audience and the brands ability to deliver value to that audience • Encourage brand or product discovery • Gain a deeper audience understanding leading to the brand aligning its goals to audience motivations • Open a more accurate feedback channel to inform product and audience groups Success Measured By • Site visits • Interaction with content • Positive posts and comments • Numbers of people participating

143. Influencer Mapping & Outreach • An Influencer is an individual that has influence over potential buyers or decision makers. In the blogsphere we categorize an influencer not as someone with a voice, but someone with an audience made up of potential customers. • Influencer Mapping involves the identification of individuals that have influence over potential buyers, allowing us to orient marketing activities around these influencers. Influencers may be potential buyers themselves or third parties. • Outreach defines our approach to engaging with those influencers in order to create connects on ideas, information (or misinformation) or practices regarding your products and services. • TruCast a tool that allows companies to track, analyze, measure sentiment and participate in blogs, forums, social networks, and online communities

144. Social Influence Marketing Best Practices Best practices • Listen before you talk: Listening can increase loyalty, trust and willingness to recommend a brand or company. When participants feel heard within the community, 82% say they are more likely to recommend the company's products and services than before they joined. • Engage in an ongoing dialogue: Customers expect to have a say about their products and services: how they should fit into their lives, how they’re designed and packaged, where they can buy them, and how they should be advertised. They are often passionate about being able to help companies make decisions. • Keep communities small: Although some social networks thrive on large numbers, online communities for marketers can be small, as it promotes intimacy and exclusivity. You can’t have a conversation with a million people. • Measure engagement / participation, not membership: Focus not on how many people log in, but how actively people participate. Just 1% of people on big social networks create original comment, and another 10% comment on or respond to content. The other 89% lurk. But by-invitation, branded communities can have participation rates of up to 90% • Focus on people, not your products: People want to talk about common interests and passions -and not solely your products. So focus the conversation around what they care most about.

145. REMEMBER IT’S A DIALOGUE, NOT A MONOLOGUE. “I absolutely ADORE the “Me too! And isn’t food at that the hostess stunning restaurant.” as well?”

146. G. Relinquish control.

147. REPEAT AFTER ME: “THE GOAL IS NOT TO CONTROL THE CONVERSATION.”

148. THE GOAL IS TO: ENABLE INSPIRE INFLUENCE &……

149. A Brand is Not What YOU Say it is. It’s What THEY Say it is.

150. Source: www.BrandTags.net

151. When Brands Stumble …

152. Do you remember Dell Hell? June 21, 2005 Dell lies. Dell sucks.

153. But, some Brands Are Adapting …

154. • At start of program, 49% of blog posts were negative. Today, overall tonality is 22% negative. • Direct2Dell currently ranked 700 on Technorati, among the highest corporate blogs. • Direct2Dell gets more than 5m unique views per month. • Over 7,000 ideas have been submitted via IdeaStorm. • Studio Dell gets more than 200,000 views per month.

155. Faceless Companies Now Have Faces

156. H. Measurement and analytics

157. What is the most important ingredient for success?

158. Customer Insight = Ability to solve problems + Ability to exploit opportunities + Ability to satisfy your customers

159. Great resources Radian6 PowerShift Blog Avinash Kaushik Web Strategy Blog www.radian6.com/blog Jeremy Owyang Occam’s Razor Blog Avinash Kaushik www.web-strategist.com/blog www.kaushik.net

160. Engagement: A New Perspective on Marketing As outlined earlier, if the marketing funnel no longer accurately reflects what marketers can influence, why do they still cling to it? Because they can measure it, which is reassuring, even if it no longer accurately reflects the real buying process. And, of course, there are no useful alternatives. We believe that marketers need a new approach to understanding customers and prospects. This new type of measurement — engagement — encompasses the quantitative metrics of site visits and transactions, the qualitative metrics of brand awareness and loyalty, and the fuzzy areas in the middle best characterized by social media. The Elements Of Engagement: Engagement goes beyond reach and frequency to measure people’s real feelings about brands. It starts with their own brand relationship and continues as they extend that relationship to other customers. As a customer’s participation with a brand deepens from site use and purchases (involvement and interaction) to affinity and championing (intimacy and influence), measuring and acting on engagement becomes more critical to understanding customers’ intentions. The four parts of engagement build on each other to make a holistic picture. • Involvement • Interaction • Intimacy • Influence

161. Engagement: A New Perspective on Marketing

162. Engagement: A New Perspective on Marketing Involvement: This component is the most basic measurement of engagement and reflects the measurable aspects of an individual’s relationship with a company or brand. It includes actions like visits to a site or a physical store, time spent per page, and pages viewed. While this alone isn’t sufficient, measuring these activities is critical because they are often the first point of interaction an individual has with a brand and are the foundation for making the connections to other metrics. For example, Reed Business tracks visitors to its Web sites, the time they spend, the articles they read by category or channel, and pages they view per week (and across other time periods). This helps Reed Business distinguish between first-time and repeat visitors, and informs the company of the depth, frequency, and level of interactions of their visits, helping it determine its content agenda. You can use Web analytics services like Omniture, Web Trends, or Visual Sciences to measure these activities. Interaction: This component provides the depth that involvement alone lacks by measuring events in which individuals contribute content about a brand, request additional information, provide contact information, or purchase a product or service. Where involvement measures touches, interaction measures actions. These include click-throughs, completed transactions, blog comments, social network connections, and uploaded photos and videos. Social media contributions increasingly play a role in calculating the value of a customer and are vital to tracking emerging behaviors. For example, PETCO tracks when customers browse and sort by top-rated items and then buy a product, allowing the company to identify the effect user generated content (UGC) has on purchases. You can use eCommerce platforms to provide transaction data, while social media platforms like Bazaarvoice and UGENmedia track actions like ratings and reviews, photos or videos uploaded, or connections made in social networks.