Being Digital, Always Listening …and how to engage in the age of consumer control

1. Being Digital, Always Listening …and how to engage in the age of consumer control Pete Blackshaw, Executive Vice-PresidentNielsen Online Digital Strategic Services

2. About the Presenter & Author • Executive Vice-President, Digital Strategic Services, Nielsen Online • Co-Founder: Word-of-Mouth Marketing Association (WOMMA) • PlanetFeedback.com (Founder) • P&G Interactive Marketing • Columnist & Blog Author • Proud father of three kids (who “tell 3000” constantly) Photo taken hours before official launch

3. Thought-Starter

4. ¿Y que decimos sobre la CRISIS…? BAM (Brand AssociationMap) CRISIS en los medios sociales 13/07/08 – 11/10/08 Las conversaciones sobre la situación económica nacional hacen referencia al incremento del desempleo, la inflación o la desaceleración de la construcción Morosidad, endeudamiento o especulación aparecen junto a burbuja inmobiliaria o vivienda La quiebra de entidades como Lehman Brothers o Merrill Lynch han sido los desencadenantes principales de la crisis Sarkozy ha sabido posicionarse cerca del término confianza

5. Thought-Starter Neil Campbell, President, Tropicana North America, on decision to return to previous Tropicana Pure Premium carton design in response to feedback from loyal consumers “What we didn’t get was the passion this very loyal small group of consumers have. That wasn’t something that came out in the research.”

6. Today’s Landscape… • Consumers In Control…but not total control • The New Age of Expression & Co-Creation • Broadband is Here -- On Demand Everything, Especially Video • Search Rewriting Rules and Redefining Brand “Equity” • Blog and Web 2.0 Publishing Bringing New Agility/Flexibility • The Growing Co-Dependency of Offline and Online Content • Service is the New Marketing • Credibility Increasingly Under Scrutiny!

7. Enter Consumer-Generated Media Consumer-Generated Media (CGM) n. “High-impact media generated by consumers, typically informed by relevant product or service experience. Commonly archived online for ready access by other consumers or key marketplace influencers -- e.g. media, analysts.” Synonym: Word-of-Mouth (WOM) • Brand Content • (Site, Blog) • News Core Underlying Assumption Brand advocacy, measured in CGM, is one of the most important metrics (and growth forecasters) in the age of consumer control

8. What’s Motivating or Inspiring It? • Emotional need/desire to be heard • Desire to connect with one another • Need to create and make change • Evangelize for the things and people we love • Quest for authenticity • Ease of Use / Low Barriers to Entry • Better, Faster, Cheaper • Power and Leverage

9. So What’s a CGM Creator Like Pete Really Worth? And how does a brand drive opportunity with Pete? Demos still critical? Loyalty / Buyer Power Influence / Viral Power Three Blogs Bi-Weekly Ad Age Column Writes About Customer Service Business Traveler Lots of Ideas, Joins Brand Fan Clubs Average Spend: $1000 Latest Passion: Twittering Brand Experiences Active User of Website Based in Hub City 1200 Facebook Friends, 2006 Twitter Followrs May 1, 2008

10. Against this Backdrop Credibility is Everything

11. Six Drivers of Brand Credibility

12. What if half the store shelf said, “Don’t Touch This?” Affirmation in Action!

13. Listening & Responsiveness

14. Key Benefits of “Unprompted” Listening Source: Nielsen Online Digital Strategic Services (DSS)

15. Questions CGM Analysis Can Answer -- How do consumers feel about my brand…right now? How many are talking (volume), and who’s being impacted (reach)? What issuesare being discussed? What trends are coming? Who’s talking and where, and are they influential? Does there influence spill over to offline influencers. Can I influence, control, or manage word of mouth? Did my marketing engage,resonate or “echo” with consumers? Action Areas CGM/WOM Can Service Consumer Insights / Unmet Needs Search Engine optimization New product launch optimization How much to invest in customer service Media Negotiation, Valuing Spokespersons Message Optimization Influencer Management Website, Blog, CRM Optimization Organizational Change / Motivating Mgmt Identifying untapped content niches Modeling Indirect Marketing/Media – e.g. Sustainability Listening Measurements & Applications

16. Listening “trail” enables trend analysis • Peak level similar to popular TV shows (30 Rock) • Surpasses that other recent fashion innovation - Crocs 2.7M views The Cult of Snuggie0.4M views 16

17. Sightings Braindead Inventors Snuggie Pub Crawl WTF Blanket Parody Listening captures “pop culture” aspect of Snuggies’ success Survey Listening Snuggies Attribute Ratings (% Agreeing) Backwards Robe Snuggies Want Warm 17

18. Trust in Advertising: As Parents See It! False Advertising? No Advertising? Misleading? In what ways are consumer receptive to advertising?

19. Consider: Is Listening the New Marketing? 59,944 Followers!

20. Opportunities for Brands

21. Anchor Listening Strategy To the New Purchase Funnel Similar principles of awareness/trial/purchase occur online, but curiosity/education (e.g. searching for mom tips) and advocacy (e.g. tell others) frame the end points. Digital Consumer First “Seeks,” Then Experiences and Lastly “Speaks” 8

22. 6 Profit from reduced operating costs Profit from price premium Profit from increased purchases Profit from referrals Base profit The Referral Spectrum Year of customer life 5 Reviewing Products 4 Feedback/Complaint Sites 3 Product Blubs in Blogs 2 Message Boards Becoming a Public Fan Participating in Research 1 0 Help brand Communities Acquisition Answering Questions for Recommendation: Re-Value the Consumer Develop more holistic contribution model that factors “beyond ROI” activity – e.g. referral, participation.What is full value of a “engaged” mom? The Value Profit Chain (Heskett/Sasser 1/03)

23. Listen to the Entire Ecosystem Around Traditional Media

24. Think Hard About the Power of Welcome Mats Buzz Kills

25. Brands Getting It Right (or showing promise)

26. Twitter and Engagement Hundreds of brands leveraging Twitter. Low cost of entry. Key question for American Express: what’s the best (and most sincere) foot forward?

27. Comcast Engagement: Lemons to Lemonade? From media embarrassment over customer service to an entirely new listening & engagement strategy Comcast Customer Connect Comcast Central Forum / Communities Corporate Blog Blogging on other sites • Comcast.com • E-mail / Phone • Web • Office of Rick Germano • Proactive • Twitter • Social Media • Facebook • Communities • Customers helping customers • Comcast blog • Speaking directly to customers • 3rd Party • Consumerist • You Tube • Etc.

28. Twitter as Service & Engagement Channel? • Over 25,000 comments • 80% Customer Service Related • 60% internet/home networking related • 25% Cable TV / DVR • 5% Miscellaneous Odds and End • 20% Personal or Social Media Related

29. Brands Getting It Wrong (or sitting in danger zone)

30. Road Map to Getting It Right WOMMA ethics code Key Consideration for Amex: Higher Sensitivity w/Financial Services

31. Additional Resources For Nielsen Clients: SMART For All Parties: Nielsen Wire My Book on These Themes Nielsen Online: Javier, David, Henk, Yolanda, Gustavo …

32. Gracias! Henk van Riesen Director Comercial y de MarketingNielsen Online The Nielsen Company Tel: 91 743 16 05Móvil: 618 987 052Fax: 91 741 46 49 www.nielsen-online.com