Dancing with MegaphonesThe New Rules, Realities, and Hard Data Behind Consumer Control
iMedia Agency Summit December 13, 2010Phoenix, AZPete Blackshaw: CMO, NM Incite, a Nielsen-McKinsey Company Lee Rainie: Director, Pew Internet Project
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1 -Dances with megaphones: Lee Rainie
Megaphone 1:Internet and Broadband
Flickr: Susan Ford Collins
70% 66%
Consequences for info ecosystem
Volume Velocity
Vibrance Valence /Relevance
Variety – Explosion of niches
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
Megaphone 2:Mobile
connectivity
Flickr: Susan Ford Collins
Cell phone owners – 85% adults
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All adults Ages 18-29 Ages 30-49 Ages 50-64 Age 65+
96% 90% 85%
58%
Mobile internet connectors – 57% adults
Feb-04 Aug-04 Feb-05 Aug-05 Feb-06 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-100%
10%
20%
30%
40%
50%
60%
70%
All adults Whites Blacks Hispanics
62% 59% 55%
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
Consequences for info ecosystem
Anywhere
Any device
PresencePlace
Anytime media
Attention zonesContinuous
partial attentionDeep divesInfo-snacking
Media zonesSocialImmersiveStreamsCreative /
participatoryStudy
Megaphone 3:Social
networking
Flickr: Susan Ford Collins
Consequences for info ecosystemSocial networks as sentries (WOM)
Consequences for info ecosystemSocial networks as information evaluators
Consequences for info ecosystemSocial networks as forums for action
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2 -Dances with megaphones: Pete Blackshaw
The Big & Emerging Questions for Brands
1
Issue The Big Question
Credibility How to manage and protect credibility and trust in a highly transparent, 24/7 feedback environment?
Influencer Management
How to extend the notion of key influencer management to everyday consumers and even employees?
Cultivating Earned Media
How to generate earned media from customer service, and 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 & Measurement
What are the right listening & measurement protocols to drive accountability, feed engagement strategy & investment?
diverse demanding emergingconnected
Landscape: Diverse, Demanding, Connected, Emerging
Trend What It Is, What It MeansMass 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 Facebook A juggernaut, rewriting rules + shifting attention from websites
Rise of Social Commerce Redefining consumer retailer interactions, powered by GPS, etc
Relevance & Privacy Cautious advance to addressability; heightened scrutiny
Infrastructure Growth Increased access and speed expand digital opportunities
“Heads Down” Generation
Dramatic consumer habit change; all eyes to wireless devices
Digital Downsizing More filtering/control of apps, friends, followers, choices
23
What’s Ahead / Next?Near Term Trends for 2011
59% of Americans use TV and the Internet Simultaneously
Dramatically More Cross-Platform / Media-Mixing
Source: Nielsen Three-Screen Report
Channel Preferences Dramatically Diversifying
Question: Those who would contact the company to…
Discuss New
productsComplain Get
AdviceMake a Reco. Crisis
Email 96 97 94 96 76Call a live representative 94 95 92 90 95FAQ on company website 94 NA 92 NA 74Post an opinion or question on company website 87 80 77 82 48IM through the company's website 81 78 78 76 71Posting on a company message board 77 69 71 74 47Posting on a blog sponsored by that company 68 61 64 68 41Telephone - automated response/recording 57 57 62 59 52Reading company's Facebook page 55 NA 53 NA 36Sending photo or video to company 53 48 48 51 41Posting on the company's Facebook page 50 42 47 47 31Texting the company via mobile device 36 34 40 37 41
Source: Nielsen Consumer Channel Preference Study ‘09
Apps Usage: Gaming & Utility Big Drivers
Relevance to BPLocation Finders
Shopping Aids
Travel Services
Environmental & Weather Apps
Proliferation of Service Apps, Many Sponsored by Brands
Pizza Hut
Convenient pizza ordering experience
Experience B& J through peace, love and ice cream
Discover recipes for any occasion.
Communicate with co-workers for coffee runs
Simulate your favorite choc. milk experience at anytime
Ben & Jerry’s Kraft Hershey’s Dunkin Donuts
Relevance to BPPrice Finders
Product Info
Travel Services
Environmental Info
Website
MySpace
Social Commerce Ecosystems From Destination-Focused Websites to “Brand Stands”
Value Consumer = Price Value Consumer = Benefits/Price
The Recalibration of “Value”…Beyond Price
Other New Variables…Corporate Responsibility, “Green”
Many consumers shop for more than just price. They’re willing to pay more if they perceive the value of additional benefits received.
Market Trends DescriptionDigital & 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
30
What’s Ahead / Next?Longer Term Trends & Disrupters
Organizational Trends DescriptionMedia 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
Mobile Phones Will Overtake PCs by 2015
Source: Nielsen
Rise of Media Blending (Media Mix Modeling 2.0?)
Technology-Driven Retailer Innovation
Source: Company websites; Progressive Grocer & Pittsburgh Post-Gazette
Can BP empower its franchises and/or products around innovation?
Rise of the Organizational War Room: New Listening Models for CRM
24/7 Real-Time War Room 24/7 Engagement Listening Beyond Borders
All aspects of integrated, brand-monitored social media
Deliberate effort to shape and manage messaging
Listening tools cover multiple languages & regions
The end
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