Dancing with Megaphones The New Rules, Realities, and Hard Data Behind Consumer Control

1. Dancing with MegaphonesThe 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 96% 90% 85% 58%

11. Mobile internet connectors – 57% adults 62% 59% 55%

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 Continuous partial attention Deep dives Info-snacking Media zones • Social Immersive Streams 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 ecosystemSocial networks as sentries (WOM)

20. Consequences for info ecosystemSocial networks as information evaluators

21. Consequences for info ecosystemSocial networks as forums for action

22. Implications Pete Blackshaw Webshots:  lauryn6842

23. With Dramatically Different Channel Preferences 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: At the moment of purchase, the consumer has evaluated only 3.2 brands, and makes decision based largely on information learned before shopping • Consumer starts with 1.5 brands in mind, influenced by previous trial and word of mouth 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. 3 22 Where Social Media Fits in to the Mix Most influential touchpoints Store/agent/dealer interactions 12 26 43 Prior brand/ product experience • Consumer-driven marketing • Word of mouth • Online research • Offline/print reviews 5 • Company-driven marketing • Traditional advertising • Direct marketing • Sponsorship • In-store advertising 39 26 22 Initial Consideration Active Evaluation Moment of Purchase Friending the Social Consumer

26. Brand Credibility More Important Than Ever 24

27. Implication: Bold New Questions for Companies

28. Social Commerce Ecosystems Implication: Death (or erosion) of Web Sites

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

30. Implication: From Selling to Service Hershey’s Pizza Hut Ben & Jerry’s Kraft Dunkin Donuts 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

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

34. Looking Ahead Source: Nielsen

35. What’s Ahead / Next? Near Term Trends for 2011 35

36. What’s Ahead / Next? Longer Term Trends & Disrupters 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!