Coffee and a Chat with Joanne Jacobs Or, The Business Case for Transmedia

1. Coffee and a Chat with Joanne JacobsOr, The Business Case for Transmedia Joanne Jacobs COO, 1000heads | @joannejacobs Image source: http://www.flickr.com/photos/wwworks/2896811680/in/photostream/

2. Session Promise To discuss the perception of transmedia by the business world To acknowledge the role of recommendations in developing trust To show how social channels can be used to shape programming To identify new ROI metrics for transmedia strategies Image source: http://www.flickr.com/photos/thomasvdb/379546998/

3. Transmedia Image credit: http://deanashour.wordpress.com/2011/04/13/reflective-blog-on-interactivity-transmedia-storytelling/ Ownership of image not specified.

4. Transmedia and business

5. Transmedia in business Leaving aside the fact that no-one in business uses the term ‘transmedia’… Business doesn’t yet understand how to make use of multiplatform experiences Multiplatform or 2 screen experiences often (wrongly) considered as merely ‘another marketing channel’ Image source: http://ansonalex.com/infographics/social-media-usage-statistics-2012-infographic/#infographic originally posted by OnlineMBA.com

6. Inhibitors to success Difficult for traditional media people to drop broadcast mentality Difficult for marketers to resist controlling messages Difficult for business to grasp that sales is not the only way to optimise business and generate profit. Image source: http://www.flickr.com/photos/kevenlaw/2285791176/

7. Value of transmedia Spreads the burden of content development Reduces the risk of programme investment Reduces the cost of (traditional) marketing Optimises experience for consumer/producer, encouraging greater content loyalty Image source: http://www.flickr.com/photos/wwarby/5157714032/

8. THIS MEANS… You don’t make money from transmedia. You save money with transmedia. Image source: http://www.flickr.com/photos/17258892@N05/2588346772/in/photostream/

9. AND… Businesses LIKE to make money. Image source: http://www.flickr.com/photos/calliope/2207307656/

10. SO… How do we make transmedia more appealing to business? We need to better articulate ROI. Image source: http://www.flickr.com/photos/zanotti/281538625/

11. Value – some definitions Value: benefit from a good/service Utility: aggregate sum of satisfaction or benefit that an individual gains from consuming a given amount of goods/services Price: market rate at which goods/services are exchanged Economic cost: amount paid for a good/service when compared with alternatives. This includes total, variable, fixed, marginal and opportunity costs. ROI is based on economic costs, not value or utility. Image source: http://www.flickr.com/photos/unleashcreativity/2877558527/

12. Transmedia saves money ROI of transmedia is drawn from opportunity costs – cost to business of failing to adopt next best option and from variable costs – expenses that change in proportion to the activity of a business Image source: My wallet and phone.

13. Business optimisation The ROI of transmedia is in business optimisation. The ROI of transmedia among users is quality of information and participation. Image source: http://www.flickr.com/photos/42843806@N00/8209826047/

14. So…. Businesses will adopt transmedia when it’s what competitors are doing. And…. Businesses adopt social strategies because it’s cheaper market research/product development/supply chain management than existing processes Image source: http://www.flickr.com/photos/jeffanddayna/5067383625

15. The value of recommendations

16. Recommendations culture Content industries traditionally influenced by recommendations Increased trust on recommendations as a source of purchase decisions Growth of social tools encourages expression of recommendations

17. Why Social Media Exists Decline in trust of corporate sources Need for specialised information Understanding that expertise is located around passionate individuals, not necessarily around paid endorsers Image source: http://www.flickr.com/photos/christopherdombres/4462311122/

18. Trust Trust is generated through a history of voluntary contributions of useful, reliable information Image source: http://www.flickr.com/photos/vagawi/3155400274/

19. Stories as Sources of Trust Most valued contributions of information come from people you know Stories of experiences are the most likely vector of such information Image source: http://www.flickr.com/photos/ckovalev/463141632

20. Influencers People near you People you respect Both develop a history of interactions based on trust Image source: http://www.flickr.com/photos/36821100@N04/3896331106/

21. Recommendation effect Content that is: • Augmented by a recommendation system; • Promoted by influencers …. Generates trust and loyalty in the content brand, potentially increasing ‘sales’. …. HAPPY BUSINESS. Image source:

22. Collaborative content development and business

23. Collaboration Business proposition for collaboration is in creating buzz Not used to the idea of changing programming content on the basis of audience interactions! Image source: http://www.flickr.com/photos/aussiegall/345009210/

24. True value of collaboration Forging trusted networks Content interactions as a source of continuous improvement of programming Audience directed content development Generating loyalty Image source:

25. What we should be saying Collaboration generates: Value: great content for all platforms. Utility: involvement, engagement, communities, participation. Increased price for content: as loyalty rises, likelihood of revenue generation from content increases (merchandising, games, add-ons, etc). Reduced costs of production: as content is developed collaboratively, there is less need for capital investment in content. Image source: http://www.flickr.com/photos/jurvetson/916142

26. ROI Metrics for Transmedia

27. ROI metrics for transmedia Interaction complexity (2-3 competitions) Community sentiment Cost per acquisition (Reduced) costs of content development Opportunity costs of isolated (traditional) media NOT fans, number of platforms, number of interactions, brand recall, views/visits, etc. Image source: http://www.flickr.com/photos/aussiegall/5198365474/

28. Delivery of Session Promises Discussed the perception of transmedia by the business world, and identified inhibitors to success Examined how trust arises from recommendations Shown how social channels can shape programming Identified new ROI metrics for transmedia strategies Image source: http://www.flickr.com/photos/thomasvdb/379546998/

29. Joanne Jacobs Chief Operating Officer, 1000heads p: +61 2 9809 8966 m: +61 2 419 131 077 e: joanne.jacobs@1000heads.com t: @joannejacobs Questions Unless otherwise specified, all images used in this presentation are Creative Commons under an attribution licence. All sources are identified.