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Martini whitepaper 62011

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Interesting research about how the consumers with the most money and influence online are setting their agendas according to the specialty sites that focus on a single topic.
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BEYOND INFLUENCE: Where to find and engage the new power consumers online. How “Pollinators” change the markeng equaon Why they bee- line to Niche Sites Why marketers need to approach reach inside out
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Page 1: Martini whitepaper 62011

Beyond influence:Where to find and engage the new power consumers online.

How “Pollinators” change the marketing equation

Why they bee- line to Niche Sites

Why marketers need to approach reach inside out

Page 2: Martini whitepaper 62011

Beyond Influence | June 2011

What the Buzz is about…

65%... Percentage Influencers in the online population today — 4 times what’s believed to be the case

20%... Are a special breed of uber-Influencers called Pollinators

$3,450… Amount Pollinators spend on passion categories — seven times the median spend for non-Influencers

83%... Percentage of Pollinators who use Niche Sites, compared to 40% of General Population

92%... Probability of finding Influencers on Martini Media — 1 in 3 are Pollinators

Page 3: Martini whitepaper 62011

Beyond Influence | June 2011 | Piii

Table of Contents

The trouble with influence is it hasn’t been influential enough ..................................................... 1

The new class of influencer is easier to find, engage and scale...................................................... 1

Niche sites are passion destinations ............................................................................................... 2

The sphere of influence just got bigger…and stronger ................................................................... 3

The magic in Pollinators is their magnifier effect ........................................................................... 4

The new influence model calls for marketing from the inside out ................................................. 5

Pollinators reset the bar on brand influence .................................................................................. 6

Living well means making a personal statement ............................................................................ 7

The people who spend the most time on their passions are first in line for big-ticket items ........8

Brand experiences are a social affair .............................................................................................. 9

Pollinator connections are part of the magnifier effect ............................................................... 10

Niche sites generate nectar .......................................................................................................... 11

Niche Site Engagement = Ad Receptiveness ................................................................................. 12

Methodology ................................................................................................................................ 13

About Martini Media and Added Value Group ............................................................................. 13

Page 4: Martini whitepaper 62011

Beyond Influence | June 2011 | P1

The trouble with influence is it hasn’t been influential enough.

It’s no secret that audiences are not created equal. Every marketer wants to connect with people who have disproportionate spending ability and influence. But influencers have been hard to find and expensive to cultivate, leaving many marketers to abandon selectivity in favor of reach-first mass strategies.

More than ever, marketers need a reliable, scalable connection to the people who generate the most brand power. They need that connection grounded in online destinations that attract agenda-setters in meaningful numbers.

The new class of influencer is easier to find, engage and scale. This paper is devoted to (a) the new class of influencers as digital puts influence at more fingertips than ever: 45% of the population we term Influentials, and 20% of uber-influencers we term Pollinators; and (b) the Niche Sites that form their primary feeding and spreading ground. It’s through these niche sites that marketers can most effectively source mass impact in a digital world. This new audience dynamic has profound implications for how marketers can effectively approach digital media.

All findings are based on a research study commissioned by Martini Media and conducted by Added Value in May 2011.

Page 5: Martini whitepaper 62011

Beyond Influence | June 2011 | P2

Niche sites are passion destinations.

Fig. 1: Examples of some Niche Sites.

Niche sites focus on a single area or topic (e.g., tennis, sports cars, wine). They draw aficionados because they cover the subject exclusively, continuously and in depth. This stands in stark contrast to general sites that cover more topics at a more superficial level. For example, ESPN.com, is a general site while Tennis.com is a niche site.

People go to niche sites for depth, insight, frequency of updates and a forum that facilitates like-minded, social bonding. A Ferrari owner, for instance, is likely to feel more engaged and validated on Ferrarilife.com than on Caranddriver.com.

This study hypothesized that niche sites create more intense connections with influential people. The findings bear this out.

Page 6: Martini whitepaper 62011

Beyond Influence | June 2011 | P3

The sphere of influence just got bigger…and stronger.

The era of the blockbuster is so over. The niche is now king, and the entertainment industry – from music to movies to TV – will never be the same.

~ Chris Anderson, author The Long Tail.

Back in 1962, the Innovation-Adoption Curve pegged 16% of the U.S. population as innovators and early adopters. Today, the total influence pool is more than 65%, thanks to the anywhere, anyone, anytime proposition of Internet information.

Fig. 2: Rogers Innovation Adoption Curve.

The Internet now acts as a nuclear reactor for brand perception. For marketers, that’s an opportunity and a threat. Brand movements ignite from previously isolated consumer experiences and spread like wildfire through email, text, and social networks. Whether the message supports or attacks the brand, it moves far and fast.

The single biggest challenge for marketers, then, is establishing experience and relevance with the people who spread it first and furthest.

Influence is More Widespread Today

Fig. 3: Proportion of Influencers and General Population.

The

Chas

m

Innovators2.5%

Early adopters13.5%

Early majority34%

Late majority34%

Laggards16%

The 1962 Model:16% of consumers were Influential

20% Pollinators (~34MM)

45% Influentials (~77MM)

35% General Population (~60MM)

Online Users

Page 7: Martini whitepaper 62011

Beyond Influence | June 2011 | P4

The magic in Pollinators is their magnifier effect.

We call this core group the Pollinators because they act like bees, picking up information and spreading it so that it reproduces. The remaining 45% of influencers we call Influentials; they still generate immediate and sustaining impact on the marketplace.

Fig. 4: Definition of Pollinators vs. Influentials.

INFLUENTIALS45% of online users

Frequently/sometimes do at least two but NOT ALL actions below:

POLLINATORS20% of online users

Frequently/sometimes do ALL actions below:

n Talk about/share my opinions on [CATEGORY]n Make recommendations to others before they make a purchase n Am the first to try new products/services n Share opinions on [CATEGORY] in online forums (Facebook updates or Likes/Twitter/

message boards/online reviews etc.) n Blog about [CATEGORY]

INFLUENCERS

CATEGORIES COVERED:

Page 8: Martini whitepaper 62011

Beyond Influence | June 2011 | P5

The new influence model calls for marketing from the inside out.

The findings in this study signal a new opportunity for marketers: Generate mass impact by mobilizing the influencer groups that set everyone else in motion.

The Internet has not only put influence at more fingertips than ever; it has defined this new mass in meaningful segments.

As the new uber-influencers, Pollinators represent the core of the new marketing possibility. Brand-conscious, passion-focused, and wired-in, they turn to reliable places online to source the sharing and shopping that lead the market.

Niche sites attract Pollinators and Influentials with intense focus and community not found elsewhere. They represent the new power source in media.

Because niche sites can be aggregated, it’s possible to achieve mass impact by attracting the most powerful consumers first (rather than blanketing the market and then attempting to “target”).

Fig 5: Key Takeaways.

INSIGHT IMPLICATIONS

Marketing Influencers, especially Pollinators, are more likely to seek out information on brands, pay attention to ads, buy online and advocate for brands.

Don’t hunt down influencers; attract them. The more they’re empowered—approached in their environment on their terms—the more these consumers embrace a brand offer.

Influentials and Pollinators are willing to buy premium brands, but they take steps to ensure they’re getting their money’s worth.

Give them the full story. The more information they have, the more comfortable they get with product selection.

Influentials and Pollinators are substantially more likely to use social tools to connect with their large networks.

Give them something to share. Make your advertising social by making it entertaining and informative in ways befitting the passion area.

Creative Specificity and point of view attract the agenda-setters to niche sites.

Fit in. The more at home your advertising is in their favorite online environments, the more influential consumers can get comfortable with your brand.

Media Pollinators go first where their passions lead them…to niche sites.

Put Pollinators at the center of the media buy. Prioritize them. They’re high-value consumers with exponential brand building power.

Pollinators don’t spend much time or energy on mass-reach sites; the content is too general.

Content networks of niche sites change the media equation, by aggregating the high- voltage connection (influencers in their sphere or interest).

Page 9: Martini whitepaper 62011

Beyond Influence | June 2011 | P6

Pollinators reset the bar on brand influence.

Pollinators are passionate people with diverse interests. In the category Style & Design for instance, 74% of Pollinators indicate interest while only 47% of Influentials and a modest 32% of General Population are engaged. Even in extremely niche categories like Golf, Aviation, Yachting etc., Pollinators are more invested than any other group.

Category Interest (Extremely/Somewhat Interested)

Fig. 6: Passion across categories.

0

20

40

60

80

100

0

20

40

60

80

Pollinator Influential GP

Page 10: Martini whitepaper 62011

Beyond Influence | June 2011 | P7

Living well means making a personal statement.

Pollinators put a higher premium on living well, making a lot of money and appearing successful. The contrast is most apparent in how much Pollinators say it’s important to “stand out” from the crowd. Their buying follows.

Personal Values (Describes Me Very Much — Top 2 Box)

Fig. 7: Personal values.

Pollinator Influential GP

77 68 58

68 42 37

59

40

27

55

23

11

LIVE LIFE TO FULLEST

NEED TO MAKE A LOT OF MONEY

LIKE TO STAND OUT FROM THE

CROWDPAY

ATTENTION TO

APPEARANCE

Page 11: Martini whitepaper 62011

Beyond Influence | June 2011 | P8

The people who spend the most time on their passions are first in line for big-ticket items.

Significantly more Pollinators intend to purchase in such categories as automotive, technology and luxury. Whereas 20% of Pollinators own an iPad, only 9% of Influentials and 5% of non-Influentials do. Fully 60% of Pollinators, and 35% of Influentials, spend more than $1,000 annually (on average) on tech products, compared to 35% and 19% for the other two groups.

Fig. 8: Purchase Intention.

Brands make a personal statement for Pollinators; they are integral to these consumers’ self-definition. Not surprisingly, then, they spend considerably more money on their passion categories (nearly seven times the amount/year invested by non-influential consumers).

Pollinator Influential GP Median annual spend in “passion category” $3,450 $2,500 $500

Pollinators Influentials GP

Near term auto intenders (next 6 months) 39% 8% 3%

Luxury Car Considerers 68% 58% 42%

iPad owners 21% 9% 5%

Annual Tech Spend >1k 60% 35% 19%

Page 12: Martini whitepaper 62011

Beyond Influence | June 2011 | P9

Brand experiences are a social affair.

The new influencers thrive on sharing experiences online, positive and negative. This extends to brands. Influentials and Pollinators both share brand experiences, but Pollinators play a disproportionate role in brand advocacy.

Fig. 9: Brand Advocacy Attitudes (Describes Me Very Much — Top 2 Box).

Their willingness to spend isn’t wanton, though. Three in four Pollinators talk about being more cautious about purchases than five years ago (compared to 57% for influential and 59% for general population).

81%

66%

78%

65%

60%

73%

31%

47%

48%

64%

73%

74%

42%

49%

52%

25%

24%

27%

A good brand is worth talking

about

I make sure people know if I

have a bad brand experience

I often tell friends about products

that interest me

I go out of my way to recommend

good products & brands to my

friends & family

I consider myself social and well-

connected

A good ad is worth talking

about

Page 13: Martini whitepaper 62011

Beyond Influence | June 2011 | P10

Pollinator connections are part of the magnifier effect.

Roughly 75% of Pollinators think of themselves as social and well connected; they have the networks to prove it. They are more likely to access online networks on a daily basis. For example, 75% of Pollinators access Facebook daily (vs. 44% of Influentials) and 17% access Twitter daily (vs. 5% of Influentials). Not surprisingly, the general population is considerably less prolific on social media.

Fig. 10: Network Size: % Have More than 100 Contacts.

0

10

20

30

40

50

Personal Network online

Personal Network offline

Business Network online

Business Network offline

Pollinator Influential GP

Page 14: Martini whitepaper 62011

Beyond Influence | June 2011 | P11

Niche sites generate nectar.

The places where people assemble based on passion I think, they’re where usually you see the most Influencers.

~Jon Cohen, Co-CEO Cornerstone - Influencers: How Trends and Creativity Become Contagious

Pollinators are twice as likely (83%) to visit niche sites as any other group. Niche sites offer them more informed opinion and product evaluations, all from an enthusiast’s point of view. They tweet, share, post, purchase and recommend based on what they find there.

Fig. 11: Pollinators are drawn to niche sites.

They also get a sense of belonging from niche sites. And they get the information required to present as authorities themselves—something they pride themselves on.

83% 17% 61% 39% 40% 60%

Pollinators Influentials General Population (GP)

Niche Site User Niche Site Non-User

Fig. 12: Wordle of actual vebatims on why niche sites appeal.

Page 15: Martini whitepaper 62011

Beyond Influence | June 2011 | P12

Niche Site Engagement = Ad Receptiveness

Perhaps most importantly, Pollinators are more receptive to ads on niche sites. They say it’s because the ads are more relevant to their interests. Influentials also respond more to advertising on niche sites, for the same reason. 36% Pollinators say they see relevant advertising on niche sites compared to just 14% non-influencers.

Whether this is the result of branded content or simply content-correlated advertising, the fact remains: The people with the most power online tune in to advertising when it’s on niche sites devoted to their passions.

Fig. 13: Ad Evaluation.

33% 22% 16%

10% 14% 21%

NICHE SITES GENERAL SITES PORTALSNICHE SITES GENERAL SITES PORTALS

More positive

More negative

36% Shows advertising that is more

relevant to me 21%

14%

Page 16: Martini whitepaper 62011

Beyond Influence | June 2011 | P13

Methodology

Martini Media partnered with Added Value to conduct a custom, 20-minute, online survey among 18-65 year olds. Fieldwork was conducted from April 29-May 4, 2011. The respondents had to be interested in at least one of fifteen content categories. These ranged from popular genres with broad-based appeal (news, technology, travel) to truly niche categories (skiing, equestrian, yachting, aviation).

A quota was implemented to ensure 50% of the sample had a household income of more than $100,000 per year. Sample of N=500 was sourced from Lightspeed Research Panel to understand the prevalence of Influencers and Niche Site usage among the broader online population. 57% of the panel respondents were Niche Site users. This paper is written based on the findings from panel data.

A separate augment of N=350 were surveyed from the Martini Media network of sites to confirm our findings on Niche Site usage, motivations and benefits. A significant majority of visitors on this network are influencers (92% compared to just 65% in the online world).

About Martini Media:Martini Media is the leading digital media platform for reaching American consumers with household incomes over $100,000 — 25% of the internet population, 70% of the spending power. Martini operates a publisher network of 1000 of the most affluent, engaging sites on the web in lifestyle and business, providing revenue support across web, video, mobile, email, social and data.

For our 270+ yearly luxury & premium advertising clients, Martini leverages proprietary ad-targeting technology and audience data sets with a full-service marketing solutions team to maximize every interaction between audience, advertiser and media. Martini Media was founded in 2008, funded by Venrock, Reed Elsevier Ventures and Granite Ventures, along with a number of prominent angel investors.

For more information: Contact Adam Chandler|CRO|917.208.0145|[email protected].

About Added Value Group:Added Value offers brand development and marketing insight services to blue-chip companies across all industry sectors. Everything they do starts with insight and ends with action, in pursuit of healthy brand growth for their clients.

With a footprint that now extends across 23 locations in 14 countries, drawing on the expertise within its global network, Added Value Group fuses brand marketing, consumer insight, innovation, and communications optimization to help solve clients’ marketing problems.

Added Value Group is part of Kantar Group, the information, insight and consultancy arm of WPP, a world leader in communications services.

For more information: visit www.added-value.com. Contact Nima Srinivasan|SVP|323.436.6619|[email protected].


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