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THE BIG
BRAND THEORY
Digital insights from industry leaders.
THE BIG
BRAND THEORY
Digital insights from industry leaders.
From the Digital CMO Summit 2010
Presented by Compete
About the Digital CMO Summit

The Digital CMO Summit is an annual invitation-only event that brings
marketing leaders together to discuss how the Internet and digital media
are transforming their businesses. The intimate size of the summit, with its
formal sessions and informal activities, creates an unparalleled opportunity
to learn from, influence, and connect with executives from top advertisers,
agencies, and media companies.

The 2010 event was held May 5-7, 2010 in Miami, Florida, and was
sponsored by American Express Business Insights and 24/7 Real Media, Inc.

                         For information on the 2011 Digital CMO Summit,
                                   please visit www.digitalcmosummit.com.
wElcOmE
4 ......................Welcome from Stephen DiMarco, CMO, Compete
6 ......................Roundtable Participants
8 ......................Defining “The Big Brand Theory”
16 ....................The Ever-Expanding Online Universe
22 ....................Obstacles to Unlocking Digital Opportunities
28 ....................The Digital Marketing Impact
36 ....................Innovations in Online Branding
42 ....................The Final Word
44 ....................Roundtable Biographies
an you imagine witnessing the evolution of the universe from
               its earliest beginnings? Imagine small, unrelated bits resolving
               slowly to form recognizable patterns. Like the hot, dense state
               that characterized the Big Bang, the evolution of brand building
               online has been fueled by its own explosion of transformational
               technology. This is both a daunting and exciting time for our
industry, and I believe that leading brands—big brands—to be specific, are
showing us the way forward.

I recently had the opportunity to interact with leaders from many of these
brands in Miami at our client event, the 2010 Digital CMO Summit. Senior
marketers from brands such as Kodak, Alaska Airlines, T-Mobile, Microsoft,
and Procter & Gamble shared how their companies are taking steps to
transform online branding, digital measurement, and creative execution.
And since the dialogue went beyond theory to fundamental changes
in practice, we wanted to share some insights to help you calibrate
your current position on this ever-evolving scale.

To that end, we asked some of our distinguished speakers to respond to
a few key questions about where we’re going and how we’re going to get
there. I am pleased to share their knowledge and insights with you.

Stephen DiMarco
Chief Marketing Officer
Compete
ROuNDTABlE
  pARTIcIpANTS
  mARc cONNOR                STEpHEN DImARcO           DAvID FENN                      RIcHARD FIElDING
  Group Director Strategic   Chief Marketing Officer   Director of National Accounts   Chief Client Officer
  Planning                   Compete                   Yelp                            Kantar Media North America
  Bridge Worldwide




6 THE BIG BRAND THEORY
DENNIS HAuGAN                JEFFREY HAYzlETT          KAREN ScHlOSSER                KIRSTEN wARD
Senior Director of Digital   Bestselling Author,       Associate Marketing Director   Director of Digital Advertising
Marketing Strategy           Change Agent,             OTC Healthcare                 Microsoft Corporation
T-Mobile USA                 Digital Thought Leader,
                                                       Procter & Gamble
                             & Cowboy




                                                                                        THE BIG BRAND THEORY 7
THE
  BIG
  BRAND
  THEORY
8 THE BIG BRAND THEORY
“The Big Brand Theory” was the theme of our Digital CMO Summit and it marks a
seminal moment in the evolution of our industry. Today, big brands are not just being
built online—they are springing to life online, changing the very way we think about
and leverage branding. Fueled by evolutionary advances in digital measurement and
analysis, and bold new ideas about creative execution reflecting the near constant
emergence of next generation technologies, “The Big Brand Theory” is neither hype
nor hypothesis—it is an amazing new fact of life for marketers. That’s why we put
this question to our roundtable:


                                   what does “The Big Brand Theory” mean to YOu?




                                                                    THE BIG BRAND THEORY 9
SOCIAL MEDIA


                    RETAIL PRESENCE                              EMAIL




                                   SOcIAl mEDIA IN-STORE DISplAY              wEBSITE

          INTERNET              brand
                                   EmAIl        iGOOGlE         DR/pROFESSIONAl
                                                                       TELEVISION

                              experience
                          pRINT mEDIA           DIREcT mAIl         cuSTOmER RElATIONS

                                   television      cONvERSATION             pAID SEARcH
                     PRINT MEDIA                              DIRECT MAIL


                                      CUSTOMER RELATIONS



10 THE BIG BRAND THEORY
mARc: The promise of “The Big Brand Theory” is to put a               DENNIS: The first thing I think of when I hear “The Big Brand
brand’s purpose into motion and to leverage all of its available      Theory” is dialogue. Social media is dialogue to me and the value
touchpoints to engage people, understand them, serve them, and        for your brand can be huge. Participating in the conversation
inspire them to share the brand’s story with others for the benefit   about your brand is key. Your brand in many ways is defined by
of all. And digital technology can best enable that new level of      these social conversations. Also, you must realize a brand is
relationship and experience.                                          not a destination, it is woven throughout the experience across
                                                                      the whole lifecycle. So don’t think of brand as pure awareness
KAREN: To me, “The Big Brand Theory” is the idea that the lines       and consideration, it is the full experience the consumer has
between online and offline, marketer and consumer, research and       throughout their lifecycle that forms your brand.
intellectual capital, are all blurred and merging. No longer can a
brand think of these worlds as separate or digital marketing as a     KIRSTEN: “The Big Brand Theory” means a resurgence in
“choice”—it is an expectation of consumers and therefore core to      recognizing that online plays such an important role in brand
brand-building.                                                       building. Coming out of the recession, where companies were
                                                                      pulling back from online, it is exciting to see the economy
DAvID: I think a key part of it is that the opportunity to learn      recovering and online gaining some momentum. As technology
from your customers is more possible today than ever before.          is evolving along with consumers and their behaviors online,
Social media like Facebook, Twitter, and Yelp provide our             it really provides brands a huge opportunity to reach them in
customers with an online megaphone. Those companies that              new and exciting ways.
listen and engage now are a step ahead of their competition.

                                                                                                           THE BIG BRAND THEORY 11
SOcIAl mEDIA
cONTINuES TO GROw
         % of internet users using
         social media in US 2008-2014.
                                         67% 77% 78% 83% 84% 85% 86%


                                         2008    2009      2010   2011   2012   2013   2014

                                         Source: Compete




12 THE BIG BRAND THEORY
JEFFREY: The way I see it, a brand is a promise to deliver a          JEFFREY: With the advent of technology, there is a shift
consistent experience whether it’s from a product, service, or a      underway from business to customer. With advertising and in
person, in every way you touch your customers, employees, partners,   particular digital today, more and more your customers are in
and even your competition. A brand identifies and authenticates       charge of your brand. The sooner companies and brands come
a product or service and delivers a pledge of satisfaction and        to terms with that shift, the quicker they will create a closer
quality. In addition, your brand needs to be represented in your      relationship with their customers. To do so, companies need
communications with your audiences, through the Web, email,           to listen to their online customers and join their conversation.
advertising, marketing materials, and even social media.              This is new territory and usually confusing for traditional
                                                                      companies. But, to ignore it or treat it as a fad is a mistake.
KAREN: Digital technologies provide an amazing ability to
sense, respond to, and engage with consumers. The challenge
is to harness the power of the insights, conversations, and                              This is new territory
relationships that are at our fingertips.
                                                                                         and usually confusing for
                                                                                         traditional companies




                                                                                                            THE BIG BRAND THEORY 13
OlD SpIcE uTIlIzES SOcIAl
TO REvITAlIzE ITS BRAND
                Leveraging multiple social media channels—Facebook, Twitter and YouTube, Old Spice is
                now connecting with a new generation of fans in a way that is both relevant and meaningful
                to them. The first Old Spice Guy campaign videos had almost 6 million YouTube video views
                IN THE FIRST DAY.

                The numbers continue to skyrocket from there with over 145 million views to date—
                surpassing even traditional broadcast reach. So what can a well executed, wildly
                successful social media campaign really do for a brand?

                          *Old Spice Twitter following                           2,700%
                           Old Spice Facebook interaction   INCREASED              800%
                           Traffic to OldSpice.com                                 300%

                Oh yeah, the campaign also generated over 1.4 billion impressions for Old Spice
                and sales for the product increased 107%.
                                                                                            *Source: SocialTimes




14 THE BIG BRAND THEORY
200,000




150,000




100,000




 50,000
            2009

                                                                        2010
     0
           JUL     AUG      SEPT   OCT   NOV   DEC   JAN     FEB      MAR       APR

          Source: Compete                                  Unique Visitors OldSpice.com



                                                                        THE BIG BRAND THEORY 15
THE
  EvER-ExpANDING
  ONlINE uNIvERSE

16 THE BIG BRAND THEORY
Change is a given, but not until the Internet has it been so constant, so fast, for
so long. Global Internet usage has grown from 938 million users in June 2005 to
1.966 billion users in June 2010. Nearly 4 out of every 5 North Americans are online.
Digital marketing is evolving just as dramatically. That’s pretty exciting on one level,
but at another level it can be frustrating because of the frantic race to keep up—not
to mention the challenge of anticipating where it’s going to go so that you can beat
the competition there. It’s not going to contract or slow down any time soon. So we
wanted to know:


                                         Given that the online universe is expanding
                               at a breakneck pace, where do you want it to go next?




                                                                   THE BIG BRAND THEORY 17
KAREN: Breakneck pace is an understatement! I am                 DAvID: I think there is a huge opportunity to close the online
 excited about what technology—and more importantly, the          and offline purchase loop. Online is sometimes thought of as a
 consumers powering the technology—will enable. The collective    medium to only drive online behavior, when in fact it is a huge
 minds of willing consumers are much more powerful than the       influencer of offline and local purchase behavior. More customer
 smartest marketers, inventors, agencies, supply networks, and    friendly tracking mechanisms are available today, such as “check-
 philanthropists. I am hopeful that consumer-driven technology    ins” scannable mobile coupons, calls, and search tracking on
                                                                      ,
 advances will go well beyond “product” advocacy and engagement   mobile devices. All of these can provide insight to online ad spend
 to more formalized and expanded pockets of product and idea      and online/offline purchase behavior. As the landscape changes,
 development that will improve lives around the world.            we will gain more clarity into the relationship of online to consumer
                                                                  offline purchase behavior.



                   The collective minds of willing consumers
                   are much more powerful than the smartest
                   marketers, inventors, agencies, supply
                   networks, and philanthropists.




18 THE BIG BRAND THEORY
KIRSTEN: Standardization and innovation. Online media is           JEFFREY: Again, I’m going to circle back to the mobile
so flexible that there is constant innovation and new ways and     market, including all mobile devices, phones, net books, and pad
approaches to reaching consumers. As it expands so quickly there   computers. I’m always traveling and most of my online time is
needs to be a move towards standardization and consistency         spent on my mobile phone or iPad. For others, a mobile device is
across the industry. We need to improve industry standards on      almost their only means of getting online. More and more content,
how to define and track success and, ultimately, achieve           applications, publishers, and marketers will be looking at mobile
consensus on what success looks like.                              marketing and investing in it.

DENNIS: The mobile phone screen, of course!                        RIcHARD: I agree that you’ll see online expanding further into
                                                                   mobile with location-based media. I also think you’ll see more IP
                                                                   content delivered to TV, which is where a lot of Internet video will
                                                                   be consumed.




                                                                                                         THE BIG BRAND THEORY 19
A READY AND wIllING
mOBIlE AuDIENcE
             The good news for brands trying to market through mobile starts with the amount of
             time people are spending on their devices. With the device never being more than an
             arm’s reach away, advertisers are taking notice and using this mobile medium to relay
             all types of information. We see that smartphone owners are interested in receiving
             mobile advertising, which is very promising for the mobile marketing industry. Brands
             need to focus on engaging and driving behavior of these ‘early adopters’ in order to
             help bring these concepts to mass market.




20 THE BIG BRAND THEORY
On a scale of 1 to 5, how interested would you be
     in receiving the following on your smartphone?




36% 29% 26% 21% 18%
Grocery coupons      A barcode that            Offers you can           An ad via SMS    An ad within
                     I can scan on             save and pursue          when I go by a   a free app
                     my smartphone             at your leisure          retailer with
                                                                        a promotion



     Source: Compete Smartphone Intelligence, % of top two box scores




                                                                                                THE BIG BRAND THEORY 21
OBSTAclES TO
 uNlOcKING
 DIGITAl
 OppORTuNITIES
22 THE BIG BRAND THEORY
A study by the Society of Digital Agencies conducted in Q4 2009 found that 81% of
brand executives expected an increase in digital projects for 2010, and 78% believed
that the current economy would actually motivate the allocation of more funds for digital
marketing. In the abstract, the benefits of digital marketing are clear in terms of reach,
efficiency, flexibility, and cost-effectiveness. But there are obstacles, too: internal and
external, operational and technical, involving investments in both human and financial
resources. Then, of course, there are the various channels that consumers use. In spite
of these obstacles, marketers are bullish on digital. So we wanted to know:


                       what is the biggest obstacle for companies looking to unlock
                                 the digital opportunities in front of them this year?




                                                                    THE BIG BRAND THEORY 23
KAREN: The biggest obstacle will likely be the tendency to              JEFFREY: I think using data and using it correctly to target their
leverage digital platforms as another “one-way” communication           prospects and customers, on their terms, with personalized offers
device. Marketers are still coming to grips with the fact that we       that are based on their preferences, buying habits, or geographical
don’t own our brands—the consumer owns our brand in their               location. Companies have huge amounts of customer data in
hearts, minds, and spheres of influence. We can only provide            their hands and often do nothing more than collect it. There’s
input (typically via advertising), services, and a great “product” to   a tremendous amount of technology available to turn simple
help form their opinion. There is a perceived risk to understanding     customer correspondence into a meaningful and personalized offer
and learning from what consumers think and feel via open                that builds customer loyalty and spurs repeat business.
conversation. To me this is just putting your head in the sand.
It will show up in sales if the consumer doesn’t like you, so you       DAvID: I believe fragmentation is the biggest obstacle. Many
should listen, embrace, engage, and improve.                            large companies are still trying to figure out online, let alone all of
                                                                        the silos within online: SEO, SEM, Display, Search, DR, etc. Often
                                                                        times, client marketing groups and their partner agencies are not
                                                                        collaborating cross silo, cross medium, or cross partner.




24 THE BIG BRAND THEORY
mARc: The biggest obstacle is the medium itself—we don’t           KIRSTEN: One word: COMPLEXITY! Because technology
have a formula based on decades of evidence to determine its       is emerging so quickly. We are shifting the marketing mix and
persuasion score and other metrics. The “standard formats” of      really focusing on holistic measurement across all campaigns
iMedia or sponsorship (interruptive advertising) or websites are   for Bing. A critical part of everything we do is measure; we have
important, but not the way to break through, drive engagement      a plan and strategy not just for campaigns but also for how we
and/or relationships. To do that you must innovate and             will measure success at the end. We are experimenting so much
innovation is risky business. You have to be willing and able to   with new and innovative ways to reach our audience that it’s
envision completely new and better ways of utilizing technology    important for us to be able to measure what works. We want
to cut through the clutter and create connections.                 to be sure we are looking at the right metrics and making apples-
                                                                   to-apples measurements across platforms and campaigns.
DENNIS: Data and system architecture built in silos and no
dynamic customer profile that delivers the right content at the
right time to the right digital screen. Also, content management                      You must innovate and innovation is
that integrates both company-produced and user-generated                              risky business. You have to be willing
                                                                                      and able to envision completely new
content at topic level.
                                                                                      and better ways of utilizing technology
                                                                                      to cut through the clutter and create
                                                                                      connections.




                                                                                                     THE BIG BRAND THEORY 25
FORD FIESTA GENERATES
pRE-lAuNcH Buzz
               More than a year in advance of Fiesta’s launch, Ford engaged target prospects in a
               digital media effort that went viral before the first vehicle rolled off the assembly line.
               Fiesta demand was well on the rise since January, far before its May launch date,
               with 15,000 to 20,000 shoppers per month—a product of Ford’s social media efforts.
               According to J.D. Power and Associates, Ford spends 25% on digital (industry average
               is 9%) and is sure to measure their digital efforts.

               *According to Ford, the Fiesta Movement has generated:
                 • 11 million social networking impressions
                 • 5 million engagements on social networks
                 • 11,000 videos posted
                 • 15,000 Tweets
                 • 13,000 photos

               The results speak for themselves, the metrics above combined with the 50,000 interested
               potential customers, (97% of which are not current Ford owners) make this campaign a
               success and surely set a standard for the industry.
                                                                                                  *Source: Brandweek




26 THE BIG BRAND THEORY
80,000


70,000


60,000
           2009
50,000


40,000


30,000


20,000


10,000


    0
                                                                                   2010
           JUL   AUG       SEPT   OCT   NOV   DEC   JAN      FEB   MAR    APR    MAY      JUN   JUL

         Source: Compete                                  Fiesta   Aveo    Fit         Yaris    Versa




                                                                                                THE BIG BRAND THEORY 27
THE
 DIGITAl
 mARKETING
 ImpAcT
28 THE BIG BRAND THEORY
According to Forrester Research, marketers will continue to shift marketing dollars
away from traditional media and into the digital domain. By 2014, spending on
interactive marketing will approach $55 billion and represent 21% of all marketing
dollars. Different organizations will make this shift at their own paces—some sooner,
some later—depending on a range of factors, such as goals, strategies, and returns
on current traditional media efforts. So we asked our experts:


                                 How will “digital” impact your marketing this year?
                                       what metrics and/or outcomes do you track
                                      to make sure it is working according to plan?




                                                                  THE BIG BRAND THEORY 29
HOw wIll YOu FuND INcREASES
IN YOuR cOmpANY’S INTERAcTIvE
mARKETING BuDGET ?
                 *




 60% 15% 14% 7%                                                                                                    8%
 Increase budget for            Increase budget for          Increase budget          No plans to increase         Don’t know
 interactive by shifting        interactive with no          for both interactive     interacitve budget
 money away from                budget change to             and traditional
 traditional marketing          traditional marketing        marketing


Source: Forrester: US Interactive Marketing Forcast Online Survey                   * 204 Marketers (multiple responses accepted)




30 THE BIG BRAND THEORY
DENNIS: I think digital will be the first to build a holistic         DAvID: Yelp doesn’t market per se. However, we are seeing
customer experience across the entire customer lifecycle. It is the   tremendous growth in the use of our mobile platforms, such as
only media/channel that can truly connect and move the customer       iPhone, Droid, Blackberry, etc. We’ll plan to invest our development
along their journey, so I think it will, be a test bed for customer   resources accordingly.
experience design. I would then expand to other channels creating
a multi-channel experience design.                                    RIcHARD: Social media and community based content are
                                                                      providing excellent opportunities for more in-depth “storytelling”
KAREN: As a part of the overall marketing mix, digital tools          by brands. Inserting the brand organically into consumer
allow engagement, interaction, and advocacy like no other             conversations in a relevant and meaningful way should be
medium. Every program has different objectives and strategies,        a key objective for every organization.
and therefore custom measurement metrics. One that is tough
to measure, but important to triangulate diagnostically, is the       mARc: Digital is increasingly becoming utilized to drive
“net promoter” intent among those consumers you touch—the             engagement, the value of which is easier or harder to measure
likelihood they would recommend your product to others.               depending on the industry and the nature of transactions.
                                                                      Therefore, we look to directly or indirectly assess a variety
                                                                      of metrics to determine the value of any given digital tactic.




                                                                                                           THE BIG BRAND THEORY 31
cONNEcTION IS KEY
                                                      emotionally

    Taking consumers from
    disconnected to committed                                purpose
    requires both rational and
    emotional connections.
    By solidifying the rational   disconnected                                           connected
    connection with the brand
    benefits and building the
    emotional connection with                                benefits
    the brand purpose, brands
    can create both forms
    of connections.

                                                         rationally
                                                 Source: Marc Connor DCMO Presentation




32 THE BIG BRAND THEORY
KIRSTEN: We plan to use digital media to drive consumer                 JEFFREY: The biggest impact I see is the ability to market
response in terms of brand building. We are trying a lot of             to individuals whenever and wherever they are through mobile
non-traditional at Bing. We go into our campaigns with the              marketing. Currently, it’s an emerging industry and thought
understanding that some aspects are experimental and may not            to account for a little over 3% of marketing’s overall spend,
provide the results we want. So when we set our plans, 90%              approximately $4 billion in 2010 out of an overall market of $288
of what we do will accomplish our goals. The other 10% we set           billion in the US. However, mobile is going to be one of the biggest
aside to try new things. It is really important and I encourage other   media interaction tools for the consumer in the next couple of years.
digital marketers to give themselves room to try new things. And,       Data shows that mobile video ads perform close to 100 times better
of course, measure!                                                     than browser-based video ads, allowing users to replay multiple
                                                                        clips, share with friends, and spread the video virally.


                                                                                            when we set our plans, 90%
                                                                                            of what we do will accomplish
                                                                                            our goals. The other 10% we
                                                                                            set aside to try new things.




                                                                                                              THE BIG BRAND THEORY 33
GROupON mAKES
 GROupON mAKES
 A BIG ImpAcT
 A BIG ImpAcT
                Groupon is using digital to generate buzz and sharing among its users. Groupon.com
                attracts over 10 million visits per month with only a few hundred thousand of them
                coming from search and of those referrals, only a fraction came from paid clicks.

                Breaking down the channels using the graphic to the right, it becomes even clearer:
                compared to other deals sites, Groupon is crushing it with email and social marketing,
                using deal hungry influencers to spread the word and get the consumption juices flowing.




34 THE BIG BRAND THEORY
20%




15%




10%




5%




0%
      General Portals & Search   Social Traffic      Blog Traffic           Email

      Source: Compete                             Coupon & Bargain Search      Groupon




                                                                              THE BIG BRAND THEORY 35
INNOvATIONS
  IN ONlINE
  BRANDING

36 THE BIG BRAND THEORY
In digital marketing, innovation isn’t a choice—you innovate or die. And you can’t
just innovate once. What works today may not be effective tomorrow. To be successful,
means studying the game-changers. Some mature brands such as Old Spice, Coca-Cola,
Procter & Gamble, and Toyota are doing very innovative things. As Kirsten states,
the technology may change but the fuel for effective marketing remains a good idea.
That’s why we asked our experts:


      what brands do you feel are at the forefront of integrating digital marketing
                   and insights into their marketing? what are they doing right?




                                                                 THE BIG BRAND THEORY 37
KIRSTEN: There are pockets of brilliance all around us;                  I also admire more familiar brands, like Coca-Cola and Apple—
 so many examples inspire me for very different reasons. For              people know who they are because the brands know who they
 traditional CPG, I would recognize Old Spice. They have developed        are. They’ve delivered affinity and become iconic. Also, living in
 an extremely strong, engaging idea and executional asset in their        upstate New York I’ve come to really appreciate the Wegman’s
 “Smell like a man, man” campaign that is having a dramatic               supermarket chain, and Fresh Direct, an online grocer out of New
 impact on their relevance and advocacy among their target. They          York. They’ve both done an exceptional job enhancing their bonds
 are willing to take risk with their marketing—although it really isn’t   with customers.
 risky as they know their target consumer so well by listening and
 engaging! Also, importantly, this isn’t a “digital” or “non-digital”     DAvID: I really like some of the recent Toyota programs. Their
 idea, but an actual IDEA that can travel throughout all touch points     “Swagger Wagon” campaign is current, funny, and creates great
 in the marketing mix.                                                    connections to their brand, especially given all that Toyota has
                                                                          gone through this year. I like the way that they used digital video,
 JEFFREY: There are a number of brands I admire from a                    banners, etc. to create a buzz about the brand. And that they
 personal perspective, based on the connections that I make with          created unique content—the swagger wagon rap—for digital that
 them as an enthusiast of their products and the connections              probably would not have gone over well in other media.
 that the brands make with me as a customer. I love brands like
 Cabela’s for their attention to the customer, the way they deliver
 great customer experiences, and the activities they promote.



38 THE BIG BRAND THEORY
KIRSTEN: I love the Toyota “Swagger Wagon” campaign. I can               DENNIS: I have always admired Nike from an online brand/
see it creating a real connection with the target audience given that    product and social integration standpoint. I think they have done
it is so relevant. Also, you can tell that they really thought through   a great job integrating their customer product engagement and
the entire holistic campaign and not just how to create a funny,         social dialogue into their brand. I also think Apple does a great
viral video. They created a family of videos and extensions of the       job leveraging digital content, web, and their retail into a multi-
campaign that are all so well executed, from banner ads to print.        channel experience.

mARc: Kraft continues to excel with utilizing consumer insights          KAREN: I would also cite Nike. They have developed a suite
and technology innovation, most recently with their iPad App.            of tools, services, and products that facilitate deeper consumer
Old Spice has developed a masterful campaign and rigorous                experiences with their products, fostering loyalty, passion,
pursuit of digital innovation has driven conversation online and         and advocacy.
off. Red Bull is an incredibly savvy marketer and that proficiency
is demonstrated through their growing digital brand presence             RIcHARD: Best Buy, Nike, Pepsi, Ford, Procter & Gamble, all
and experiences.                                                         these companies are focusing on “ideas” and “transformation”
                                                                         first, a much broader perspective than just media or advertising.




                                                                                                                THE BIG BRAND THEORY 39
FIvE KEY FINDINGS
The previous pages are filled with wisdom that you can use as you plan
and execute your digital marketing programs. Here are five key findings
that you should keep in your mind, scribble on your palm, and raise at
your next strategy meeting.

• RElY ON THE 90/10 RulE. Approximately 90% of what you do should
  be designed to accomplish your goals and objectives; the other 10%
  should be set aside for experimentation.

• BE DATA-DRIvEN AND MEASuRE. It is critical to not only collect data but
  to put it to strategic use to enhance your online brand building efforts. Solid
  data can help you create more meaningful and personalized relationships
  with consumers. Measuring results and impact has always been important
  and digital tools can help you do it even more efficiently. By understanding
  what is working and how well, you can optimize your marketing to be as
  effective as possible.
• POWER SHIFT. Marketers must understand that they are no longer in
  complete control of their brand. At minimum, they have shared control
  with their consumers, and in some cases, consumers are clearly in charge.
  Marketers need to use the digital tools at their disposal to harness the power
  that consumers wield, and use it to target and engage them in promoting
  the brand.

• BE EMOTIONAl. Rational connections do not lead to lifelong
  customers. You need to develop emotional connections, moving people
  past the intellectual reasons for purchasing your products and services
  and creating a more lasting bond between consumer and brand.

• WATCH OuT. You can learn a lot by watching what others are doing.
  With technology changing and advancing so quickly, see who has good
  ideas and who is just using technology for technology’s sake. Emulate
  what works and learn from others’ mistakes.
final word? Maybe to this book, but not to “The Big Brand Theory”
            and not to brand building or digital marketing. Those chapters
            are still being written—by all of us, every day. What the future
            holds is anyone’s guess but this much is true: the future is in our
hands. The words of wisdom contained in this little book show you the range
of opinion of some of our field’s superstar practitioners. They agree on some
issues but not on others.

So what should you do? Take it all in, see what seems right for your company
based on your objectives, competitive situation, and budget. But talk to your
customers as well. Initiate a dialogue with the people who buy your products or
use your services. Then take it step by step and allow for some trial and error.
What’s important is that you understand the tools and the possibilities, and
that you leverage every bit of data you can get your hands on about your
customers in developing and delivering the optimal digital marketing experience.

As we’ve tried to demonstrate, both at the Digital CMO Summit
and in this roundtable, digital marketing is a dialogue, one we want
to continue with you.

Stephen DiMarco
Chief Marketing Officer
Compete
ROuNDTABlE
  BIOGRApHIES


44 THE BIG BRAND THEORY
mARc cONNOR                                                     STEpHEN DImARcO
Group Director, Strategic Planning, Bridge Worldwide            Chief Marketing Officer, Compete

Marc is responsible for leading digital and relationship        Stephen oversees marketing, product management and
marketing strategy for several of Bridge Worldwide’s clients,   channel partnerships for Compete. Previously, he was a co-
including Procter & Gamble, ConAgra, and Red Bull. In this      founder of the web strategy and development firm ZEFER and
capacity, he marries the agency’s philosophy of “Marketing      also directed business development for FX/Fox Cable, the cable
with Meaning” and the latest consumer trends and technology     programming subsidiary of News Corp. Prior to this, Stephen
to create breakthrough consumer experiences that drive          managed consumer advertising campaigns for Comedy Central
business results. Some recent successes include the Healthy     and helped launch Nine Inch Nails while Director of Operations
Choice “Working Lunch” that capitalized on the insight that     at TVT Records. He holds a BS from Georgetown University and
“lunchtime is the new primetime” and the Prilosec OTC           an MBA from Harvard Business School.
“Official Sponsor of You” program that harnesses the energy
of people power to foster brand affinity and advocacy. Prior
to joining Bridge Worldwide, Marc worked with Pure Digital
Technologies to bring their game-changing, innovative Flip
camcorder to market.



                                                                                              THE BIG BRAND THEORY 45
DAvID FENN                                                                   RIcHARD FIElDING,
  Director of National Accounts, Yelp                                          Chief Client Officer, Kantar Media North America

  Dave joined Yelp in November 2007 and is responsible for directing both      Richard oversees the development and promotion of new services and
  national and mid-market sales teams. Before joining Yelp, Dave was vice      core products to benefit existing clients and driving new client acquisition.
  president of business development at Simply Hired, a vertical search         Most recently, Richard was vice president of Starcom MediaVest Group –
  engine for jobs. Prior to Simply Hired, Dave was with Yahoo! and held both   USA and director of its Global Research Group, where he was responsible
  direct sales and sales management positions. Prior to Yahoo!, Dave was a     for developing and deploying core agency consumer insight-based tools for
  partner at The Baxley Group, a provider of outsourced sales and marketing    the agency’s network, as well as supplying global client research support,
  services. Before that, Dave held a number of sales and business              local agency research group oversight and managing global vendor
  development roles at NewChannel, Inacom, Datalex, and Granite.               relationships. He previously served as vice president and director of the
                                                                               Insights & Analytics Group for Starcom Worldwide, and began his career
                                                                               with the company in Hong Kong as their Asian regional research director.
                                                                               Richard also served as a media consultant for AC Nielsen in Indonesia
                                                                               and as a research director for the company in Malaysia.




46 THE BIG BRAND THEORY
DENNIS HAuGAN                                                                 JEFFREY w. HAYzlETT
Senior Director of Digital Marketing Strategy, T-Mobile USA                   Bestselling Author, Change Agent, Digital Thought Leader, & Cowboy

Dennis has translated his vision into multi-year digital strategies for       Before resigning his position in mid-2010 to pursue a career in television,
marketing, product development, sales, and care over the last 12 years.       Jeffrey had been responsible for the Eastman Kodak’s worldwide
He’s held responsibilities for B2C, B2B, e-commerce, self service,            marketing operations, including the design and implementation of all
customer marketing, online advertising, paid search, SEO, and social          marketing strategies, investments, policies, and processes. He led
marketing. Most recently, Dennis concepted and launched T-Mobile              the company’s efforts for strategy and planning, marketing programs,
Studio™, an interactive destination for wireless phone personalization.       marketing network operations, brand development and management,
He has helped move McCaw Cellular, AT&T Wireless, and T-Mobile USA to         business development, and corporate sponsorships. He was also
leadership positions in many brand, e-commerce, and self -service areas.      responsible for the company’s corporate communications, public
His focus is on digital content optimization and aggregation across digital   relations, and public affairs organizations. He is the author of
ecosystems, the customer life cycle, and multiple channels. Dennis is a       The Mirror Test: Is Your Business Really Breathing?
frequent guest speaker on digital content integration and has a case study
published in Larry Weber’s latest marketing-to-the-social-web book,
Sticks and Stones.




                                                                                                                         THE BIG BRAND THEORY 47
KAREN ScHlOSSER                                                              KIRSTEN wARD
  Associate Marketing Director, OTC Healthcare, Procter & Gamble               Director of Digital Advertising, Microsoft Corporation

  At P&G, Karen leads both the Prilosec OTC and Pepto-Bismol businesses,       Kirsten oversees digital advertising strategy for Bing and MSN, including
  which includes defining and delivering the brands’ short and long-           the launch of broad digital campaigns for the introduction of Bing and
  term business and marketing strategies and goals. She also leads and         a revamped MSN in the last year. The Bing marketing campaign has
  champions digital marketing breakthrough via scale, platform innovation,     received a number of honors since its launch in May 2009, including the
  and learning across all health care brands. Since joining P&G in 1998,       2010 ARF David Ogilvy Award for Excellence in Advertising Research,
  Karen has held a wide variety of traditional and non-traditional marketing   OMMA 2009 Award for Online Advertising Creativity, and Ad Age 2009
  roles, including marketing Folgers and Millstone coffees to both consumers   Best New Brand Award.
  and B2B, and helping to build the targeted marketing platforms to fuel
                                                                               Since joining Microsoft in 2001, Kirsten has held a variety of product
  the beginnings of interactive marketing at P&G. Before joining P&G, Karen
                                                                               management and marketing roles in the Server & Tools and Online
  was an IT consultant with Ernst & Young, where she developed a healthy
                                                                               Services divisions. Her marketing experience spans traditional and digital
  appreciation for the power of technology to enable business growth.
                                                                               advertising, engagement marketing, branding and public relations. Prior
                                                                               to Microsoft, Kirsten held various product management and management
                                                                               consulting positions in the Pacific Northwest.



48 THE BIG BRAND THEORY
Compete, a Kantar Media company, helps the world’s top brands improve their marketing based on the
online behavior of millions of consumers. Leading advertisers, agencies and publishers rely on Compete’s
products and services to create engaging online experiences and highly profitable advertising campaigns.
Compete’s online panel-the largest in the industry-makes the web as ingrained in marketing as it is in
people’s lives. Compete is located in Boston, MA, with offices throughout the U.S. For more information,
please visit www.compete.com.




                                                                                     THE BIG BRAND THEORY 49
FOuR cOplEY plAcE SuITE 700 BOSTON mA 02116   617.933.5600   www.cOmpETE.cOm

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The Big Brand Theory

  • 1. THE BIG BRAND THEORY Digital insights from industry leaders.
  • 2.
  • 3. THE BIG BRAND THEORY Digital insights from industry leaders. From the Digital CMO Summit 2010 Presented by Compete
  • 4. About the Digital CMO Summit The Digital CMO Summit is an annual invitation-only event that brings marketing leaders together to discuss how the Internet and digital media are transforming their businesses. The intimate size of the summit, with its formal sessions and informal activities, creates an unparalleled opportunity to learn from, influence, and connect with executives from top advertisers, agencies, and media companies. The 2010 event was held May 5-7, 2010 in Miami, Florida, and was sponsored by American Express Business Insights and 24/7 Real Media, Inc. For information on the 2011 Digital CMO Summit, please visit www.digitalcmosummit.com.
  • 5. wElcOmE 4 ......................Welcome from Stephen DiMarco, CMO, Compete 6 ......................Roundtable Participants 8 ......................Defining “The Big Brand Theory” 16 ....................The Ever-Expanding Online Universe 22 ....................Obstacles to Unlocking Digital Opportunities 28 ....................The Digital Marketing Impact 36 ....................Innovations in Online Branding 42 ....................The Final Word 44 ....................Roundtable Biographies
  • 6. an you imagine witnessing the evolution of the universe from its earliest beginnings? Imagine small, unrelated bits resolving slowly to form recognizable patterns. Like the hot, dense state that characterized the Big Bang, the evolution of brand building online has been fueled by its own explosion of transformational technology. This is both a daunting and exciting time for our industry, and I believe that leading brands—big brands—to be specific, are showing us the way forward. I recently had the opportunity to interact with leaders from many of these brands in Miami at our client event, the 2010 Digital CMO Summit. Senior marketers from brands such as Kodak, Alaska Airlines, T-Mobile, Microsoft, and Procter & Gamble shared how their companies are taking steps to transform online branding, digital measurement, and creative execution.
  • 7. And since the dialogue went beyond theory to fundamental changes in practice, we wanted to share some insights to help you calibrate your current position on this ever-evolving scale. To that end, we asked some of our distinguished speakers to respond to a few key questions about where we’re going and how we’re going to get there. I am pleased to share their knowledge and insights with you. Stephen DiMarco Chief Marketing Officer Compete
  • 8. ROuNDTABlE pARTIcIpANTS mARc cONNOR STEpHEN DImARcO DAvID FENN RIcHARD FIElDING Group Director Strategic Chief Marketing Officer Director of National Accounts Chief Client Officer Planning Compete Yelp Kantar Media North America Bridge Worldwide 6 THE BIG BRAND THEORY
  • 9. DENNIS HAuGAN JEFFREY HAYzlETT KAREN ScHlOSSER KIRSTEN wARD Senior Director of Digital Bestselling Author, Associate Marketing Director Director of Digital Advertising Marketing Strategy Change Agent, OTC Healthcare Microsoft Corporation T-Mobile USA Digital Thought Leader, Procter & Gamble & Cowboy THE BIG BRAND THEORY 7
  • 10. THE BIG BRAND THEORY 8 THE BIG BRAND THEORY
  • 11. “The Big Brand Theory” was the theme of our Digital CMO Summit and it marks a seminal moment in the evolution of our industry. Today, big brands are not just being built online—they are springing to life online, changing the very way we think about and leverage branding. Fueled by evolutionary advances in digital measurement and analysis, and bold new ideas about creative execution reflecting the near constant emergence of next generation technologies, “The Big Brand Theory” is neither hype nor hypothesis—it is an amazing new fact of life for marketers. That’s why we put this question to our roundtable: what does “The Big Brand Theory” mean to YOu? THE BIG BRAND THEORY 9
  • 12. SOCIAL MEDIA RETAIL PRESENCE EMAIL SOcIAl mEDIA IN-STORE DISplAY wEBSITE INTERNET brand EmAIl iGOOGlE DR/pROFESSIONAl TELEVISION experience pRINT mEDIA DIREcT mAIl cuSTOmER RElATIONS television cONvERSATION pAID SEARcH PRINT MEDIA DIRECT MAIL CUSTOMER RELATIONS 10 THE BIG BRAND THEORY
  • 13. mARc: The promise of “The Big Brand Theory” is to put a DENNIS: The first thing I think of when I hear “The Big Brand brand’s purpose into motion and to leverage all of its available Theory” is dialogue. Social media is dialogue to me and the value touchpoints to engage people, understand them, serve them, and for your brand can be huge. Participating in the conversation inspire them to share the brand’s story with others for the benefit about your brand is key. Your brand in many ways is defined by of all. And digital technology can best enable that new level of these social conversations. Also, you must realize a brand is relationship and experience. not a destination, it is woven throughout the experience across the whole lifecycle. So don’t think of brand as pure awareness KAREN: To me, “The Big Brand Theory” is the idea that the lines and consideration, it is the full experience the consumer has between online and offline, marketer and consumer, research and throughout their lifecycle that forms your brand. intellectual capital, are all blurred and merging. No longer can a brand think of these worlds as separate or digital marketing as a KIRSTEN: “The Big Brand Theory” means a resurgence in “choice”—it is an expectation of consumers and therefore core to recognizing that online plays such an important role in brand brand-building. building. Coming out of the recession, where companies were pulling back from online, it is exciting to see the economy DAvID: I think a key part of it is that the opportunity to learn recovering and online gaining some momentum. As technology from your customers is more possible today than ever before. is evolving along with consumers and their behaviors online, Social media like Facebook, Twitter, and Yelp provide our it really provides brands a huge opportunity to reach them in customers with an online megaphone. Those companies that new and exciting ways. listen and engage now are a step ahead of their competition. THE BIG BRAND THEORY 11
  • 14. SOcIAl mEDIA cONTINuES TO GROw % of internet users using social media in US 2008-2014. 67% 77% 78% 83% 84% 85% 86% 2008 2009 2010 2011 2012 2013 2014 Source: Compete 12 THE BIG BRAND THEORY
  • 15. JEFFREY: The way I see it, a brand is a promise to deliver a JEFFREY: With the advent of technology, there is a shift consistent experience whether it’s from a product, service, or a underway from business to customer. With advertising and in person, in every way you touch your customers, employees, partners, particular digital today, more and more your customers are in and even your competition. A brand identifies and authenticates charge of your brand. The sooner companies and brands come a product or service and delivers a pledge of satisfaction and to terms with that shift, the quicker they will create a closer quality. In addition, your brand needs to be represented in your relationship with their customers. To do so, companies need communications with your audiences, through the Web, email, to listen to their online customers and join their conversation. advertising, marketing materials, and even social media. This is new territory and usually confusing for traditional companies. But, to ignore it or treat it as a fad is a mistake. KAREN: Digital technologies provide an amazing ability to sense, respond to, and engage with consumers. The challenge is to harness the power of the insights, conversations, and This is new territory relationships that are at our fingertips. and usually confusing for traditional companies THE BIG BRAND THEORY 13
  • 16. OlD SpIcE uTIlIzES SOcIAl TO REvITAlIzE ITS BRAND Leveraging multiple social media channels—Facebook, Twitter and YouTube, Old Spice is now connecting with a new generation of fans in a way that is both relevant and meaningful to them. The first Old Spice Guy campaign videos had almost 6 million YouTube video views IN THE FIRST DAY. The numbers continue to skyrocket from there with over 145 million views to date— surpassing even traditional broadcast reach. So what can a well executed, wildly successful social media campaign really do for a brand? *Old Spice Twitter following 2,700% Old Spice Facebook interaction INCREASED 800% Traffic to OldSpice.com 300% Oh yeah, the campaign also generated over 1.4 billion impressions for Old Spice and sales for the product increased 107%. *Source: SocialTimes 14 THE BIG BRAND THEORY
  • 17. 200,000 150,000 100,000 50,000 2009 2010 0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR Source: Compete Unique Visitors OldSpice.com THE BIG BRAND THEORY 15
  • 18. THE EvER-ExpANDING ONlINE uNIvERSE 16 THE BIG BRAND THEORY
  • 19. Change is a given, but not until the Internet has it been so constant, so fast, for so long. Global Internet usage has grown from 938 million users in June 2005 to 1.966 billion users in June 2010. Nearly 4 out of every 5 North Americans are online. Digital marketing is evolving just as dramatically. That’s pretty exciting on one level, but at another level it can be frustrating because of the frantic race to keep up—not to mention the challenge of anticipating where it’s going to go so that you can beat the competition there. It’s not going to contract or slow down any time soon. So we wanted to know: Given that the online universe is expanding at a breakneck pace, where do you want it to go next? THE BIG BRAND THEORY 17
  • 20. KAREN: Breakneck pace is an understatement! I am DAvID: I think there is a huge opportunity to close the online excited about what technology—and more importantly, the and offline purchase loop. Online is sometimes thought of as a consumers powering the technology—will enable. The collective medium to only drive online behavior, when in fact it is a huge minds of willing consumers are much more powerful than the influencer of offline and local purchase behavior. More customer smartest marketers, inventors, agencies, supply networks, and friendly tracking mechanisms are available today, such as “check- philanthropists. I am hopeful that consumer-driven technology ins” scannable mobile coupons, calls, and search tracking on , advances will go well beyond “product” advocacy and engagement mobile devices. All of these can provide insight to online ad spend to more formalized and expanded pockets of product and idea and online/offline purchase behavior. As the landscape changes, development that will improve lives around the world. we will gain more clarity into the relationship of online to consumer offline purchase behavior. The collective minds of willing consumers are much more powerful than the smartest marketers, inventors, agencies, supply networks, and philanthropists. 18 THE BIG BRAND THEORY
  • 21. KIRSTEN: Standardization and innovation. Online media is JEFFREY: Again, I’m going to circle back to the mobile so flexible that there is constant innovation and new ways and market, including all mobile devices, phones, net books, and pad approaches to reaching consumers. As it expands so quickly there computers. I’m always traveling and most of my online time is needs to be a move towards standardization and consistency spent on my mobile phone or iPad. For others, a mobile device is across the industry. We need to improve industry standards on almost their only means of getting online. More and more content, how to define and track success and, ultimately, achieve applications, publishers, and marketers will be looking at mobile consensus on what success looks like. marketing and investing in it. DENNIS: The mobile phone screen, of course! RIcHARD: I agree that you’ll see online expanding further into mobile with location-based media. I also think you’ll see more IP content delivered to TV, which is where a lot of Internet video will be consumed. THE BIG BRAND THEORY 19
  • 22. A READY AND wIllING mOBIlE AuDIENcE The good news for brands trying to market through mobile starts with the amount of time people are spending on their devices. With the device never being more than an arm’s reach away, advertisers are taking notice and using this mobile medium to relay all types of information. We see that smartphone owners are interested in receiving mobile advertising, which is very promising for the mobile marketing industry. Brands need to focus on engaging and driving behavior of these ‘early adopters’ in order to help bring these concepts to mass market. 20 THE BIG BRAND THEORY
  • 23. On a scale of 1 to 5, how interested would you be in receiving the following on your smartphone? 36% 29% 26% 21% 18% Grocery coupons A barcode that Offers you can An ad via SMS An ad within I can scan on save and pursue when I go by a a free app my smartphone at your leisure retailer with a promotion Source: Compete Smartphone Intelligence, % of top two box scores THE BIG BRAND THEORY 21
  • 24. OBSTAclES TO uNlOcKING DIGITAl OppORTuNITIES 22 THE BIG BRAND THEORY
  • 25. A study by the Society of Digital Agencies conducted in Q4 2009 found that 81% of brand executives expected an increase in digital projects for 2010, and 78% believed that the current economy would actually motivate the allocation of more funds for digital marketing. In the abstract, the benefits of digital marketing are clear in terms of reach, efficiency, flexibility, and cost-effectiveness. But there are obstacles, too: internal and external, operational and technical, involving investments in both human and financial resources. Then, of course, there are the various channels that consumers use. In spite of these obstacles, marketers are bullish on digital. So we wanted to know: what is the biggest obstacle for companies looking to unlock the digital opportunities in front of them this year? THE BIG BRAND THEORY 23
  • 26. KAREN: The biggest obstacle will likely be the tendency to JEFFREY: I think using data and using it correctly to target their leverage digital platforms as another “one-way” communication prospects and customers, on their terms, with personalized offers device. Marketers are still coming to grips with the fact that we that are based on their preferences, buying habits, or geographical don’t own our brands—the consumer owns our brand in their location. Companies have huge amounts of customer data in hearts, minds, and spheres of influence. We can only provide their hands and often do nothing more than collect it. There’s input (typically via advertising), services, and a great “product” to a tremendous amount of technology available to turn simple help form their opinion. There is a perceived risk to understanding customer correspondence into a meaningful and personalized offer and learning from what consumers think and feel via open that builds customer loyalty and spurs repeat business. conversation. To me this is just putting your head in the sand. It will show up in sales if the consumer doesn’t like you, so you DAvID: I believe fragmentation is the biggest obstacle. Many should listen, embrace, engage, and improve. large companies are still trying to figure out online, let alone all of the silos within online: SEO, SEM, Display, Search, DR, etc. Often times, client marketing groups and their partner agencies are not collaborating cross silo, cross medium, or cross partner. 24 THE BIG BRAND THEORY
  • 27. mARc: The biggest obstacle is the medium itself—we don’t KIRSTEN: One word: COMPLEXITY! Because technology have a formula based on decades of evidence to determine its is emerging so quickly. We are shifting the marketing mix and persuasion score and other metrics. The “standard formats” of really focusing on holistic measurement across all campaigns iMedia or sponsorship (interruptive advertising) or websites are for Bing. A critical part of everything we do is measure; we have important, but not the way to break through, drive engagement a plan and strategy not just for campaigns but also for how we and/or relationships. To do that you must innovate and will measure success at the end. We are experimenting so much innovation is risky business. You have to be willing and able to with new and innovative ways to reach our audience that it’s envision completely new and better ways of utilizing technology important for us to be able to measure what works. We want to cut through the clutter and create connections. to be sure we are looking at the right metrics and making apples- to-apples measurements across platforms and campaigns. DENNIS: Data and system architecture built in silos and no dynamic customer profile that delivers the right content at the right time to the right digital screen. Also, content management You must innovate and innovation is that integrates both company-produced and user-generated risky business. You have to be willing and able to envision completely new content at topic level. and better ways of utilizing technology to cut through the clutter and create connections. THE BIG BRAND THEORY 25
  • 28. FORD FIESTA GENERATES pRE-lAuNcH Buzz More than a year in advance of Fiesta’s launch, Ford engaged target prospects in a digital media effort that went viral before the first vehicle rolled off the assembly line. Fiesta demand was well on the rise since January, far before its May launch date, with 15,000 to 20,000 shoppers per month—a product of Ford’s social media efforts. According to J.D. Power and Associates, Ford spends 25% on digital (industry average is 9%) and is sure to measure their digital efforts. *According to Ford, the Fiesta Movement has generated: • 11 million social networking impressions • 5 million engagements on social networks • 11,000 videos posted • 15,000 Tweets • 13,000 photos The results speak for themselves, the metrics above combined with the 50,000 interested potential customers, (97% of which are not current Ford owners) make this campaign a success and surely set a standard for the industry. *Source: Brandweek 26 THE BIG BRAND THEORY
  • 29. 80,000 70,000 60,000 2009 50,000 40,000 30,000 20,000 10,000 0 2010 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Source: Compete Fiesta Aveo Fit Yaris Versa THE BIG BRAND THEORY 27
  • 30. THE DIGITAl mARKETING ImpAcT 28 THE BIG BRAND THEORY
  • 31. According to Forrester Research, marketers will continue to shift marketing dollars away from traditional media and into the digital domain. By 2014, spending on interactive marketing will approach $55 billion and represent 21% of all marketing dollars. Different organizations will make this shift at their own paces—some sooner, some later—depending on a range of factors, such as goals, strategies, and returns on current traditional media efforts. So we asked our experts: How will “digital” impact your marketing this year? what metrics and/or outcomes do you track to make sure it is working according to plan? THE BIG BRAND THEORY 29
  • 32. HOw wIll YOu FuND INcREASES IN YOuR cOmpANY’S INTERAcTIvE mARKETING BuDGET ? * 60% 15% 14% 7% 8% Increase budget for Increase budget for Increase budget No plans to increase Don’t know interactive by shifting interactive with no for both interactive interacitve budget money away from budget change to and traditional traditional marketing traditional marketing marketing Source: Forrester: US Interactive Marketing Forcast Online Survey * 204 Marketers (multiple responses accepted) 30 THE BIG BRAND THEORY
  • 33. DENNIS: I think digital will be the first to build a holistic DAvID: Yelp doesn’t market per se. However, we are seeing customer experience across the entire customer lifecycle. It is the tremendous growth in the use of our mobile platforms, such as only media/channel that can truly connect and move the customer iPhone, Droid, Blackberry, etc. We’ll plan to invest our development along their journey, so I think it will, be a test bed for customer resources accordingly. experience design. I would then expand to other channels creating a multi-channel experience design. RIcHARD: Social media and community based content are providing excellent opportunities for more in-depth “storytelling” KAREN: As a part of the overall marketing mix, digital tools by brands. Inserting the brand organically into consumer allow engagement, interaction, and advocacy like no other conversations in a relevant and meaningful way should be medium. Every program has different objectives and strategies, a key objective for every organization. and therefore custom measurement metrics. One that is tough to measure, but important to triangulate diagnostically, is the mARc: Digital is increasingly becoming utilized to drive “net promoter” intent among those consumers you touch—the engagement, the value of which is easier or harder to measure likelihood they would recommend your product to others. depending on the industry and the nature of transactions. Therefore, we look to directly or indirectly assess a variety of metrics to determine the value of any given digital tactic. THE BIG BRAND THEORY 31
  • 34. cONNEcTION IS KEY emotionally Taking consumers from disconnected to committed purpose requires both rational and emotional connections. By solidifying the rational disconnected connected connection with the brand benefits and building the emotional connection with benefits the brand purpose, brands can create both forms of connections. rationally Source: Marc Connor DCMO Presentation 32 THE BIG BRAND THEORY
  • 35. KIRSTEN: We plan to use digital media to drive consumer JEFFREY: The biggest impact I see is the ability to market response in terms of brand building. We are trying a lot of to individuals whenever and wherever they are through mobile non-traditional at Bing. We go into our campaigns with the marketing. Currently, it’s an emerging industry and thought understanding that some aspects are experimental and may not to account for a little over 3% of marketing’s overall spend, provide the results we want. So when we set our plans, 90% approximately $4 billion in 2010 out of an overall market of $288 of what we do will accomplish our goals. The other 10% we set billion in the US. However, mobile is going to be one of the biggest aside to try new things. It is really important and I encourage other media interaction tools for the consumer in the next couple of years. digital marketers to give themselves room to try new things. And, Data shows that mobile video ads perform close to 100 times better of course, measure! than browser-based video ads, allowing users to replay multiple clips, share with friends, and spread the video virally. when we set our plans, 90% of what we do will accomplish our goals. The other 10% we set aside to try new things. THE BIG BRAND THEORY 33
  • 36. GROupON mAKES GROupON mAKES A BIG ImpAcT A BIG ImpAcT Groupon is using digital to generate buzz and sharing among its users. Groupon.com attracts over 10 million visits per month with only a few hundred thousand of them coming from search and of those referrals, only a fraction came from paid clicks. Breaking down the channels using the graphic to the right, it becomes even clearer: compared to other deals sites, Groupon is crushing it with email and social marketing, using deal hungry influencers to spread the word and get the consumption juices flowing. 34 THE BIG BRAND THEORY
  • 37. 20% 15% 10% 5% 0% General Portals & Search Social Traffic Blog Traffic Email Source: Compete Coupon & Bargain Search Groupon THE BIG BRAND THEORY 35
  • 38. INNOvATIONS IN ONlINE BRANDING 36 THE BIG BRAND THEORY
  • 39. In digital marketing, innovation isn’t a choice—you innovate or die. And you can’t just innovate once. What works today may not be effective tomorrow. To be successful, means studying the game-changers. Some mature brands such as Old Spice, Coca-Cola, Procter & Gamble, and Toyota are doing very innovative things. As Kirsten states, the technology may change but the fuel for effective marketing remains a good idea. That’s why we asked our experts: what brands do you feel are at the forefront of integrating digital marketing and insights into their marketing? what are they doing right? THE BIG BRAND THEORY 37
  • 40. KIRSTEN: There are pockets of brilliance all around us; I also admire more familiar brands, like Coca-Cola and Apple— so many examples inspire me for very different reasons. For people know who they are because the brands know who they traditional CPG, I would recognize Old Spice. They have developed are. They’ve delivered affinity and become iconic. Also, living in an extremely strong, engaging idea and executional asset in their upstate New York I’ve come to really appreciate the Wegman’s “Smell like a man, man” campaign that is having a dramatic supermarket chain, and Fresh Direct, an online grocer out of New impact on their relevance and advocacy among their target. They York. They’ve both done an exceptional job enhancing their bonds are willing to take risk with their marketing—although it really isn’t with customers. risky as they know their target consumer so well by listening and engaging! Also, importantly, this isn’t a “digital” or “non-digital” DAvID: I really like some of the recent Toyota programs. Their idea, but an actual IDEA that can travel throughout all touch points “Swagger Wagon” campaign is current, funny, and creates great in the marketing mix. connections to their brand, especially given all that Toyota has gone through this year. I like the way that they used digital video, JEFFREY: There are a number of brands I admire from a banners, etc. to create a buzz about the brand. And that they personal perspective, based on the connections that I make with created unique content—the swagger wagon rap—for digital that them as an enthusiast of their products and the connections probably would not have gone over well in other media. that the brands make with me as a customer. I love brands like Cabela’s for their attention to the customer, the way they deliver great customer experiences, and the activities they promote. 38 THE BIG BRAND THEORY
  • 41. KIRSTEN: I love the Toyota “Swagger Wagon” campaign. I can DENNIS: I have always admired Nike from an online brand/ see it creating a real connection with the target audience given that product and social integration standpoint. I think they have done it is so relevant. Also, you can tell that they really thought through a great job integrating their customer product engagement and the entire holistic campaign and not just how to create a funny, social dialogue into their brand. I also think Apple does a great viral video. They created a family of videos and extensions of the job leveraging digital content, web, and their retail into a multi- campaign that are all so well executed, from banner ads to print. channel experience. mARc: Kraft continues to excel with utilizing consumer insights KAREN: I would also cite Nike. They have developed a suite and technology innovation, most recently with their iPad App. of tools, services, and products that facilitate deeper consumer Old Spice has developed a masterful campaign and rigorous experiences with their products, fostering loyalty, passion, pursuit of digital innovation has driven conversation online and and advocacy. off. Red Bull is an incredibly savvy marketer and that proficiency is demonstrated through their growing digital brand presence RIcHARD: Best Buy, Nike, Pepsi, Ford, Procter & Gamble, all and experiences. these companies are focusing on “ideas” and “transformation” first, a much broader perspective than just media or advertising. THE BIG BRAND THEORY 39
  • 42. FIvE KEY FINDINGS The previous pages are filled with wisdom that you can use as you plan and execute your digital marketing programs. Here are five key findings that you should keep in your mind, scribble on your palm, and raise at your next strategy meeting. • RElY ON THE 90/10 RulE. Approximately 90% of what you do should be designed to accomplish your goals and objectives; the other 10% should be set aside for experimentation. • BE DATA-DRIvEN AND MEASuRE. It is critical to not only collect data but to put it to strategic use to enhance your online brand building efforts. Solid data can help you create more meaningful and personalized relationships with consumers. Measuring results and impact has always been important and digital tools can help you do it even more efficiently. By understanding what is working and how well, you can optimize your marketing to be as effective as possible.
  • 43. • POWER SHIFT. Marketers must understand that they are no longer in complete control of their brand. At minimum, they have shared control with their consumers, and in some cases, consumers are clearly in charge. Marketers need to use the digital tools at their disposal to harness the power that consumers wield, and use it to target and engage them in promoting the brand. • BE EMOTIONAl. Rational connections do not lead to lifelong customers. You need to develop emotional connections, moving people past the intellectual reasons for purchasing your products and services and creating a more lasting bond between consumer and brand. • WATCH OuT. You can learn a lot by watching what others are doing. With technology changing and advancing so quickly, see who has good ideas and who is just using technology for technology’s sake. Emulate what works and learn from others’ mistakes.
  • 44. final word? Maybe to this book, but not to “The Big Brand Theory” and not to brand building or digital marketing. Those chapters are still being written—by all of us, every day. What the future holds is anyone’s guess but this much is true: the future is in our hands. The words of wisdom contained in this little book show you the range of opinion of some of our field’s superstar practitioners. They agree on some issues but not on others. So what should you do? Take it all in, see what seems right for your company based on your objectives, competitive situation, and budget. But talk to your customers as well. Initiate a dialogue with the people who buy your products or use your services. Then take it step by step and allow for some trial and error.
  • 45. What’s important is that you understand the tools and the possibilities, and that you leverage every bit of data you can get your hands on about your customers in developing and delivering the optimal digital marketing experience. As we’ve tried to demonstrate, both at the Digital CMO Summit and in this roundtable, digital marketing is a dialogue, one we want to continue with you. Stephen DiMarco Chief Marketing Officer Compete
  • 46. ROuNDTABlE BIOGRApHIES 44 THE BIG BRAND THEORY
  • 47. mARc cONNOR STEpHEN DImARcO Group Director, Strategic Planning, Bridge Worldwide Chief Marketing Officer, Compete Marc is responsible for leading digital and relationship Stephen oversees marketing, product management and marketing strategy for several of Bridge Worldwide’s clients, channel partnerships for Compete. Previously, he was a co- including Procter & Gamble, ConAgra, and Red Bull. In this founder of the web strategy and development firm ZEFER and capacity, he marries the agency’s philosophy of “Marketing also directed business development for FX/Fox Cable, the cable with Meaning” and the latest consumer trends and technology programming subsidiary of News Corp. Prior to this, Stephen to create breakthrough consumer experiences that drive managed consumer advertising campaigns for Comedy Central business results. Some recent successes include the Healthy and helped launch Nine Inch Nails while Director of Operations Choice “Working Lunch” that capitalized on the insight that at TVT Records. He holds a BS from Georgetown University and “lunchtime is the new primetime” and the Prilosec OTC an MBA from Harvard Business School. “Official Sponsor of You” program that harnesses the energy of people power to foster brand affinity and advocacy. Prior to joining Bridge Worldwide, Marc worked with Pure Digital Technologies to bring their game-changing, innovative Flip camcorder to market. THE BIG BRAND THEORY 45
  • 48. DAvID FENN RIcHARD FIElDING, Director of National Accounts, Yelp Chief Client Officer, Kantar Media North America Dave joined Yelp in November 2007 and is responsible for directing both Richard oversees the development and promotion of new services and national and mid-market sales teams. Before joining Yelp, Dave was vice core products to benefit existing clients and driving new client acquisition. president of business development at Simply Hired, a vertical search Most recently, Richard was vice president of Starcom MediaVest Group – engine for jobs. Prior to Simply Hired, Dave was with Yahoo! and held both USA and director of its Global Research Group, where he was responsible direct sales and sales management positions. Prior to Yahoo!, Dave was a for developing and deploying core agency consumer insight-based tools for partner at The Baxley Group, a provider of outsourced sales and marketing the agency’s network, as well as supplying global client research support, services. Before that, Dave held a number of sales and business local agency research group oversight and managing global vendor development roles at NewChannel, Inacom, Datalex, and Granite. relationships. He previously served as vice president and director of the Insights & Analytics Group for Starcom Worldwide, and began his career with the company in Hong Kong as their Asian regional research director. Richard also served as a media consultant for AC Nielsen in Indonesia and as a research director for the company in Malaysia. 46 THE BIG BRAND THEORY
  • 49. DENNIS HAuGAN JEFFREY w. HAYzlETT Senior Director of Digital Marketing Strategy, T-Mobile USA Bestselling Author, Change Agent, Digital Thought Leader, & Cowboy Dennis has translated his vision into multi-year digital strategies for Before resigning his position in mid-2010 to pursue a career in television, marketing, product development, sales, and care over the last 12 years. Jeffrey had been responsible for the Eastman Kodak’s worldwide He’s held responsibilities for B2C, B2B, e-commerce, self service, marketing operations, including the design and implementation of all customer marketing, online advertising, paid search, SEO, and social marketing strategies, investments, policies, and processes. He led marketing. Most recently, Dennis concepted and launched T-Mobile the company’s efforts for strategy and planning, marketing programs, Studio™, an interactive destination for wireless phone personalization. marketing network operations, brand development and management, He has helped move McCaw Cellular, AT&T Wireless, and T-Mobile USA to business development, and corporate sponsorships. He was also leadership positions in many brand, e-commerce, and self -service areas. responsible for the company’s corporate communications, public His focus is on digital content optimization and aggregation across digital relations, and public affairs organizations. He is the author of ecosystems, the customer life cycle, and multiple channels. Dennis is a The Mirror Test: Is Your Business Really Breathing? frequent guest speaker on digital content integration and has a case study published in Larry Weber’s latest marketing-to-the-social-web book, Sticks and Stones. THE BIG BRAND THEORY 47
  • 50. KAREN ScHlOSSER KIRSTEN wARD Associate Marketing Director, OTC Healthcare, Procter & Gamble Director of Digital Advertising, Microsoft Corporation At P&G, Karen leads both the Prilosec OTC and Pepto-Bismol businesses, Kirsten oversees digital advertising strategy for Bing and MSN, including which includes defining and delivering the brands’ short and long- the launch of broad digital campaigns for the introduction of Bing and term business and marketing strategies and goals. She also leads and a revamped MSN in the last year. The Bing marketing campaign has champions digital marketing breakthrough via scale, platform innovation, received a number of honors since its launch in May 2009, including the and learning across all health care brands. Since joining P&G in 1998, 2010 ARF David Ogilvy Award for Excellence in Advertising Research, Karen has held a wide variety of traditional and non-traditional marketing OMMA 2009 Award for Online Advertising Creativity, and Ad Age 2009 roles, including marketing Folgers and Millstone coffees to both consumers Best New Brand Award. and B2B, and helping to build the targeted marketing platforms to fuel Since joining Microsoft in 2001, Kirsten has held a variety of product the beginnings of interactive marketing at P&G. Before joining P&G, Karen management and marketing roles in the Server & Tools and Online was an IT consultant with Ernst & Young, where she developed a healthy Services divisions. Her marketing experience spans traditional and digital appreciation for the power of technology to enable business growth. advertising, engagement marketing, branding and public relations. Prior to Microsoft, Kirsten held various product management and management consulting positions in the Pacific Northwest. 48 THE BIG BRAND THEORY
  • 51. Compete, a Kantar Media company, helps the world’s top brands improve their marketing based on the online behavior of millions of consumers. Leading advertisers, agencies and publishers rely on Compete’s products and services to create engaging online experiences and highly profitable advertising campaigns. Compete’s online panel-the largest in the industry-makes the web as ingrained in marketing as it is in people’s lives. Compete is located in Boston, MA, with offices throughout the U.S. For more information, please visit www.compete.com. THE BIG BRAND THEORY 49
  • 52. FOuR cOplEY plAcE SuITE 700 BOSTON mA 02116 617.933.5600 www.cOmpETE.cOm