More information: http://pewinternet.org/Presentations/2010/Dec/iMedia.aspx

1. Dancing with Megaphones
The New Rules, Realities, and Hard Data
Behind Consumer Control
iMedia Agency Summit
December 13, 2010
Phoenix, AZ
Pete Blackshaw: CMO, NM Incite, a Nielsen-McKinsey Company
Lee Rainie: Director, Pew Internet Project

2. Megaphone 1:
Internet and
Broadband
Flickr: Susan Ford Collins

4. 70%
66%

5. Consequences for info ecosystem
Volume Velocity
Vibrance Valence /
Relevance

6. Variety – Explosion of creations/niches

7. Networked creators among internet users
• 62% are social networking site users
• ~50% share photos
• 33% create content tags
• 32% contribute rankings and ratings
• 30% share personal creations
• 26% post comments on sites and blogs
• 24% use Twitter / other status update features
• 15% have personal website
• 15% are content remixers
• 14% are bloggers
• 4% use location-sharing services

8. So what for brands?
• The Bermuda Triangle
– Markets are fractured
– Marketplace is roiled
– Metrics haven’t kept pace
– Too much noise
• Brands are co-owned by advocates /acolytes
– Best of times - sanctuaries
– Worst of times - #fail

9. Megaphone 2:
Mobile
connectivity
Flickr: Susan Ford Collins

10. Cell phone owners – 85% adults
All adults Ages 18-29 Ages 30-49 Ages 50-64 Age 65+
100% 96%
90%
90%
85%
80%
70%
60%
58%
50%
40%
30%
20%
10%
0%
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

11. Mobile internet connectors – 57% adults
All adults Whites Blacks Hispanics
70%
62%
60%
59%
50% 55%
40%
30%
20%
10%
0%

12. New cell and wireless realities
• More than 2/3 of adults and 3/4 of teens use the cloud
• Web vs. apps struggle: 35% have apps; 24% use apps
• Features used by cell owners
– 76% take pictures
– 74% are texters (text overtakes talk in frequency in 2009)
– 39% browse internet
– 34% are email users
– 34% record videos
– 34% play games
– 33% play music
– 30% are IM-ers
– 7% participate in video calls

13. Consequences for info ecosystem
Anywhere
Place Presence
Any device

14. Dramatically More Cross-Platform / Media-Mixing
59% of Americans use TV
and the Internet
Simultaneously
Source: Nielsen Three-Screen Report

15. So what for brands?
Attention zones Media zones
Continuous Social
partial attention Immersive
Deep dives Streams
Info-snacking Creative /
participatory
Study / work

16. Megaphone 3:
Social
networking
Flickr: Susan Ford Collins

18. So what for brands?
• Changed character of population
• Changed character of content
• Changes rhythms of engagement
• Changed the composition and use of people’s
social networks

19. Consequences for info ecosystem
Social networks as sentries (WOM)

20. Consequences for info ecosystem
Social networks as information evaluators

21. Consequences for info ecosystem
Social networks as forums for action

22. Implications Pete Blackshaw
Webshots: lauryn6842

23. With Dramatically Different Channel Preferences
Question: Those who would Discuss
Get Make a
New Complain Crisis
contact the company to… products
Advice Reco.
Email 96 97 94 96 76
Call a live representative 94 95 92 90 95
FAQ on company website 94 NA 92 NA 74
Post an opinion or question on company website 87 80 77 82 48
IM through the company's website 81 78 78 76 71
Posting on a company message board 77 69 71 74 47
Posting on a blog sponsored by that company 68 61 64 68 41
Telephone - automated response/recording 57 57 62 59 52
Reading company's Facebook page 55 NA 53 NA 36
Sending photo or video to company 53 48 48 51 41
Posting on the company's Facebook page 50 42 47 47 31
Texting the company via mobile device 36 34 40 37 41
Source: Nielsen Consumer Channel Preference Study ‘09

24. Implication: A New Consumer Decision Journey to Manage
ACTIVE EVALUATION:
The consumer adds 1.7 more brands to consideration, based
on packaging and sampling
INITIAL
CONSIDERATION: PURCHASE:
▪ Consumer starts with At the moment of
1.5 brands in mind, purchase, the
influenced by consumer has
previous trial and evaluated only 3.2
word of mouth brands, and makes
decision based
largely on
information learned
before shopping
POST-PURCHASE EXPERIENCE:
66% of consumers engage with their brand after purchase (e.g., online research), and this
engagement has a meaningful impact on the likelihood of repeat purchase
19

25. Where Social Media Fits in to the Mix
Most influential touchpoints
Store/agent/dealer
interactions 12
26
Prior brand/ 43
28
product experience 10
Consumer-driven marketing 5
 Word of mouth 21
 Online research 37
 Offline/print reviews
31
Company-driven marketing
 Traditional advertising
 Direct marketing 39
 Sponsorship 26 22
 In-store advertising
Initial Active Moment of
Consideration Evaluation Purchase
25 Friending the Social Consumer

26. Brand Credibility More Important Than Ever
Six Drivers of Brand Credibility
Trust Authenticity Transparency
Confidence As Advertised Let the Sun Shine In
Consistency Real & Sincere Easy to Learn
Integrity Real People Easy to Discover
Authority Informal No Secrets
Affirmation Listening Responsiveness
Playback Empathy Follow-Up
Reinforcement Welcome Mat Invitational Marketing
Search Results Humility (we can learn) Solidifying the Solution
24 Accountability Absorbing Feedback Dignifying Feedback

27. Implication: Bold New Questions for Companies
Issue The Big Question
Credibility How to manage and protect credibility and trust in a highly
transparent, 24/7 feedback environment?
Influencer How to extend the notion of key influencer management to
Management everyday consumers and even employees?
Cultivating How to generate earned media from customer service, and
Earned Media how service in general can be leveraged more strongly for
brand and business-building via social media?
Organization How to best manage day-to-day digital/social media
operations, recognizing that social media breaks down
geographic and organizational barriers.
Listening & What are the right listening & measurement protocols to drive
Measurement accountability, feed engagement strategy & investment?

28. Implication: Death (or erosion) of Web Sites
Social Commerce Ecosystems
Facebook
LinkedIn Website Twitter
MySpace

29. Implication: New and More Holistic Rules of Engagement
Brand Backyard Common Consumer Backyard
Consumer Branded Forum / Consumer Influencer
Relations Media Communities Outreach
Channels Outreach
Brand Site Engagement Communities Platforms 3rd Party
Contact Center Blog User-Contributions Twitter Consumerist
E-mail Chat, SMS Ratings & Reviews Facebook Edmunds
Phone Phone Co-Creation YouTube WebMD
Web Site Rate & Review Flickr, LinkedIn TechCrunch
43

30. Implication: From Selling to Service
Pizza Hut Ben & Jerry’s Kraft Hershey’s Dunkin Donuts
Convenient pizza Experience B& J through Discover recipes for any Simulate your favorite choc. milk Communicate with co-
ordering experience peace, love and ice cream occasion. experience at anytime workers for coffee runs
Relevance to BP
Price Finders
Product Info
Travel Services
Environmental Info

31. Implication: Rise of Consumer Cartels

32. Implication: Massive Levels of Retailer Innovation
Can BP empower its franchises and/or products around innovation?
Source: Company websites; Progressive Grocer &
Pittsburgh Post-Gazette

33. Implication: The Rise of Real-Time
24/7 Real-Time War Room 24/7 Engagement Listening Beyond Borders
All aspects of integrated, brand- Deliberate effort to shape and Listening tools cover multiple
monitored social media manage messaging languages & regions

34. Looking Ahead
Source: Nielsen

35. Near TermAhead / Next?
What’s Trends for 2011
Trend What It Is, What It Means
Mass Socialization Social “earned” media & paid media become more
intertwined
Platform Proliferation New devices and multi-tasking abound
Mobile Comes of Age Extends mass socialization & extends media to point of sale
Apps Everywhere Disruptive growth in apps, fueled by games and service
utilities
Dominance of A juggernaut, rewriting rules + shifting attention from
Facebook websites
Rise of Social Redefining consumer retailer interactions, powered by GPS,
Commerce etc
Relevance & Privacy Cautious advance to addressability; heightened scrutiny
Infrastructure Growth Increased access and speed expand digital opportunities
“Heads Down” Dramatic consumer habit change; all eyes to wireless
Generation devices 35
Digital Downsizing More filtering/control of apps, friends, followers, choices

36. Longer Term Trends & Disrupters
What’s Ahead / Next?
Market Trends Description
Digital & Social From separate roles to unified and integrated (now one & the same)
Mobile Disruption Re-setting the entire landscape
Activism & Social Media Smarter, Creative, More Empowered/Linked & More Sophisticated
Payments and Fees Friction-free and seamless (already in play with iTunes)
Globalization of Social Creating huge opportunities….and huge operational challenges
Organizational Trends Description
Media Blending Increasingly sophisticated: Paid, Owned, Earned
Brand Managers Moving to “Community Manager” Roles & Responsibilities
Enterprise SM Dramatic expansion beyond marketing channel innovations
Marketing + Service New synergy between marketing & operations
Agency Integration Social prompting greater integration from agencies & suppliers
Speedbacking Practice of immediately responding to key issues, especially crisis
36

37. Things to watch
• Content metering online – new media business
models
• Enhanced tech – 3-D
• New attention research – Nielsen and
Coalition for Innovative Media Measurement
• Privacy debates
• Net neutrality debates
• Spectrum allocation debates
• Rise of the “internet of things”

38. Thank you!