2010 Corporate Image and Branding Conference: Emerging Opportunities in the Era of Social Media. Nigel Hollis presents: “Global Branding: Building a Community of Brand Enthusiasts”

1. Building a Community
of Brand Enthusiasts
aka No Free Lunch Nigel Hollis
Chief Global Analyst
Millward Brown

2. What a difference a couple of years can make
- 2007 - - 2009 -
Dow Jones Index 13,371 350M
Consumer Confidence Index** 87.3 116.1M
US Television Ad Spending* $67.8B 18M
Facebook Users^ 50M
10,344
US Blog Readers* 94.1M
49.5
Twitter Users* 0 $66.9B
*eMarketer, ** Conference Board , ^Facebook 2

3. After the financial bubble we are enjoying…
The social media bubble!
3

4. TV is not the only medium to be fragmented
Pure Plays Blogging Syndication
Peer 2 Peer Wikis & Collab
Open Source Tagging & Rating Consumer Review
4

5. The power of social media
How social media changed the U.K. music industry
Data from the U.K.'s Official Charts Company

6. Simon Cowell's X-Factor winner topped the U.K. Christmas
music charts from 2005 to 2008
So what went wrong this year? 6

7. After four years of X-Factor number ones, Jon and Tracy
Morter felt enough was enough
Over
750,000
fans
7

8. A coordinated effort meant that RATM's "In The Name"
took the Number 1 slot in spite of the X-Factor hype
Christmas
Week
Source: The U.K.'s Official Charts Company 8

9. The Facebook RATM campaign generated a far better
conversion rate
12%
c. 6,000,000 votes c. 750,000 fans
78%
9

10. Why was the RATM campaign so successful?
The campaign possessed authenticity
• Started by a real person with a real cause
It tapped into an underlying societal tension
• The suspicion that "big business" is manipulating the public psyche for their own ends
The choice of song resonated with a wide audience
• Anti-establishment sentiment of the lyrics
• Positive associations for people who remembered it from the 90s
These ingredients are similar to those of an iconic brand
10

11. Do the same factors enable
social media success for brands?

12. These brands are often praised for their effective use of
social media
12

13. The average number of fans per brand differs dramatically
by product category
Source: Facebook Fan Pages 13

14. And one or two brands tend to dominate each category
Source: Facebook 14

15. People who Bond with a brand are more likely to buy it
High share
of wallet
Individuals who Bond
with a brand are more
than ten times more
likely to buy it than
those who just know
the name
Low share
of wallet
15

16. Successful social media brands tend to be stronger brands
Successful Other brands
Bonding
Advantage
Performance
Relevance
Presence
16

17. A strong brand, a distinctive identity, global scale, and an
active presence on Facebook drive the number of fans
% BONDED COMPARED TO NUMBER OF FANS (100,000S)
17

18. Red Bull: Simply an engaging brand
18

19. People bond to Coca-Cola and Red Bull for very different
reasons
19

20. The same drivers create brand and social media success
(Strong brands defined as growing equity over a 3 year time period)
Projected
Leadership
Clarity of
Associations
Brand Success
Great Brand
Experience
Strong
Business
Model
20

21. But what about viral?
What does it take to be a success?

22. Viral success depends on strong creative and good
distribution
Creative Contribution
to overall
number of
ad views
on YouTube
Other support/
PR
22

23. Viral success depends on both the propagation rate
(creative appeal) and the size of the initial audience
Over 10 million views
Evolution
• Ellen
• The View
• Entertainment Tonight
• Geraldo 500,000 views
• Blogger buzz: one of the Top 15 most-
linked-to videos among bloggers Daughters
(Technorati)
Edelman's PR blitz behind "Evolution" led to
a much stronger in-market performance
23

24. Marketers should consider integrating marketing
campaigns across social media sites
Sites Visited Membership by # of Sites
Source: Dynamic Logic AdReaction 2009 study 24

25. Viral success depends on strong creative and good
distribution
Creative Contribution
to overall
number of
ad views
on YouTube
Other support/
PR
Placement/ease of finding
Part of a viral campaign
25

26. An example of a viral campaign with multiple executions
driving ongoing engagement
26

27. 12
/1
0
20
40
60
80
100
120
/ 20
09
12
/3
/ 20
09
12
/5
/ 20
09
12
/7
/ 20
RATM campaign
09
12
/9
/ 20
12 09
/1
1 /2
00
12 9
/1
3 /2
00
12 9
/1
5 /2
00
Source: Factiva, number of print articles per week
12 9
/1
7 /2
00
12 9
/1
9 /2
00
12 9
/2
1 /2
00
12 9
/2
3 /2
00
12 9
/2
5 /2
00
12 9
/2
7 /2
00
12 9
/2
9 /2
00
12 9
Mass media coverage helped drive awareness of the
/3
1 /2
00
9
27

28. Why are people using social
media?
It's about people, stupid!

29. Facebook is about connecting with specific people, while
Twitter is used as an information access platform
% % % %
Am able to keep in touch
with distant family members
Feel more connected
to old acquaintances
Feel more informed
about current events
Feel more informed
about pop culture
Source: Dynamic Logic AdReaction 2009 study 29

30. Twitter: First in the know about celebrities and events
You follow someone on Twitter because you
want to hear what they have to say.
30

31. Only 13 percent of social media users follow brands, but
they participate in an average of three categories
Retail
CPG
13%
Technology
12% Sports
Restaurants
Travel
Banks/Finance
Follow Do not
Quick Service Restaurants
Auto
Source: Dynamic Logic AdReaction 2009 study 31
Q23. What types of companies or brands do you follow or keep up with via social networks? (Check all that apply)

32. People follow brands largely for what they can get out of
it: Information, discounts and giveaways
Q24. Please select any of the following reasons you choose to follow brands or companies on social
networking sites. (Check all that apply)
CPG Retail Technology
% % %
Info about new products 83 68 80
Sales/Discounts 74 71 76
Contests and giveaways 61 56 62
Sharing thoughts/ideas 56 48 55
Like the brand 48 51 48
Reading people’s responses 47 43 55
Company news
46 33 61
Source: Dynamic Logic AdReaction 2009 study 32

33. Conclusion
No free lunch with social media

34. It's a chicken-and-egg dilemma: Success breeds success
Pre-existing brand equity is the best
predictor of a brand's social media
success
• Fans are more "end" than "means"
Social and viral success relies on
creativity and scale
• Aim to seed creative execution with mass-
media for maximum impact
People use social media to connect with
people and brands they know (or to find
a good deal)
• Figure out what value your brand brings to
the social scene
• Test the idea, listen, and engage
• If it is a success, publicize it
34

35. The best social media brands tend to be the best brands
Tap into universal human values
Hold true to what the brand stands for
Anticipate the consumer
Act big
Invite consumers in
35

36. Thank you for listening
For more commentary on brands, media and marketing
please visit: mb-blog.com