Sean Corcoran discussed how earned media through word-of-mouth and social sharing now accounts for a massive number of online impressions. He argued that paid media can act as a catalyst to drive people to owned media platforms where they become engaged and generate earned media impressions through sharing and advocacy. David Armano mapped out how owned, paid, and earned media now overlap across various digital properties and platforms. He stressed the importance of identifying influential users and forming meaningful engagements. Rob Fuggetta discussed how brands can leverage their brand advocates to generate earned media impressions through advocacy-based marketing programs that identify, energize, and track brand advocates.

1. 1 Sean Corcoran, Senior Analyst, Forrester David Armano, Senior Vice President, Edelman Digital Rob Fuggetta, Founder/CEO, Zuberance Twitter hashtag: #PaidvEarned Paid vs Earned Media April 19, 2011

2. Paid vs Earned Media 2 Moderator: David Spark Spark Media Solutions

3. Paid vs Earned Media 3 Hashtag for event: #PaidvEarned

4. 4 Successful earned media campaign techniques B2B, mid-size,communication Integration strategy of owned, paid, earned Best uses of each channel for highest ROI, budget mix ROI evaluation, measurement methods, success metrics “Viral lift,” conversion rates, tracking How to manage, scale, automate earned campaign Resources and tools Trends You asked us about…

5. 5 Participant Profile: Title & Role Title Role & Responsibility N = 336, Online survey, fielded April 12 – 18 2011

6. 6 Current Spends and Trends Q: How are you currently spending resources on Media? Rank in order of importance.* Q: What % of your marketing budget has shifted from Paid to Earned Media? Owned Budget shifts from Paid to Earned Earned Paid *N = 336; score is a weighted calculation

7. Marketers believe customers go to owned media channels most* 7 *N = 336; score is a weighted calculation

9. Paid media such as search engines, banner ads or other advertising

10. Earned media such as reviews, online forums, other sources for peer adviceN = 336

12. [I have] control over content in an environment that directly sells my brand

13. [Owned media] has the most information and details- [and is a] trusted source of accurate info [Owned media] is used as a research tool, it showcases the most information about our brand in one place. All Paid & Earned Media drive back to our website.

14. Most of information about what the company does is contained within owned media, giving customers a better understanding of what we're all about.

15. [It is the] number one area where customers like to book and compare prices.

16. We drive everyone to the website. Also, people do searches indepenedently, and will be led there. Finally, the obvious reason is that we sell our product on our website through a hosted booking engine. N = 336, quantitative and open-ended comment analysis

18. Direct response campaigns drive the most the most in-store and onine traffic

19. Awareness is a key issue in videogames - a launch driven business - and we do not feel Earned or Owned Media gets us enough reach (for most releases).

20. It's the highest reaching vehicle that creates awareness and drives traffic to your "owned" properties

21. Very measurable ROI - easy to track how many leads, sales, etc came directly from the investment.

22. It's measurable and thus gets the most budget N = 336, quantitative and open-ended comment analysis

24. We're a B2B focused brand, so our customers tend to know who we are in the industry. We really rely on the word of mouth on our technology to sell intricate details of our product to buyers.

25. Word of mouth recommendations are our largest source of referrals and brand discovery/awareness (new sales). Luckily we are one of the few brands that believes credibility, trust, and limited transparency are crucial to success.

26. 3rd party endorsements, whether from peers, other buyers or critical reviews, have great impact.

27. Customers are looking at how others use products in similar ways and then make value judgments based on that information. Credible & trustworthy Peer references Third-party influence N = 336, quantitative and open-ended comment analysis

28. Paid vs Earned Media 12 Sean Corcoran Senior Analyst Forrester Research Inc @seancor

30. Shifting The Balance Of Media Sean Corcoran, Sr. Analyst April 19, 2011

31. Word-Of-Mouth reigns again

32. This social media thing is real More than 4 out of 5 online U.S. adults now participate in social media each month …and nearly 7 out of 10 European online adults too Sources: Forrester Social Technographics Survey Q4, 2009

33. Social networks are really popular 59% of U.S. online adults are visiting social networks at least once per month …and 50% of online Metro Chinese adults too Sources: Forrester Social Technographics Survey Q1, 2010

34. People are VERY active with social media Nearly one third of US online adults are “Conversationalists” – they post status updates on social sites at least weekly Sources: Forrester Social Technographics Survey Q1, 2010

35. Word-Of-Mouth Is Now Media (Earned Media) Word-of-mouth impressions made by people on other people online in the U.S. in 2009: 500 Billion Source: Forrester North Americans Technographics Empowerment Survery Q4 2009

36. And It Lives On

38. Blog posts & comments

39. Listening platforms

40. Volume, Sentiment, etc.

41. Paid Search

42. Display ads

43. Video ads

44. Sponsorships

45. Web site

46. Mobile site

47. Facebook

48. Twitter

49. YouTube“Earned, Owned, Paid” redefines the marketing mix Earned Media “The Result” Paid Media “The Catalyst” Owned Media “The Portable Brand”

50. Brands can now build long term socially-enabled platforms, rather than just short term campaigns

51. Marketers have a tremendous opportunity to energize their advocates and create earned media 16% of the online consumers generate 80% of online word-of-mouth impressions

52. Paid media (advertising) is the catalyst

53. Social media has become the interactive platform for TV

54. The “true reach” of the Super Bowl includes both earned and paid media 75 million total online views with 55,000 comments and over 185,000 ratings

55. O + P = E

56. What It Means: An up hill battle for marketers

57. Marketers have been on the hunt

58. …but the hunters have become the hunted

59. Marketers must adapt Adaptive Marketing: A flexible approach in which marketers respond quickly to their environment to align consumer and brand goals and maximize return on brand equity.

60. In the adaptive marketing era… ALL of marketing evolves from a focus on push to pull The Groundswell (social media) is mainstream All marketing communication is “always on” Consumers move from passive audience to active participants Brands must publish and update content on a regular basis Intelligence drives decisions in real time Loyalty and Influence become the key drivers of success

61. Recommendations Start thinking about marketing to people Most interactive marketers actually market to browsers, phones, and email addressess Identify your advocates immediately Use listening platforms to identify the most influential and NPS to identify the most loyal Build owned media platforms that enable advocates to promote the brand Leverage tools like Facebook Open Graph and Ratings and Reviews Create cross-team processes Share real time data and processes for acting on it across marketing, PR, customer service, IT, etc. Recognize the true cost is in resources You can’t buy earned media, you must empower the organization to cultivate it Rethink your metrics Include earned media metrics in your paid media analysis Measure the impact paid media has on your owned and earned media assets Incorporate loyalty and influence as key metrics for any marketing initiative

62. Thank you Sean Corcoran @seancor www.forrester.com

63. Paid vs Earned Media 35 David Armano Senior Vice President Edelman Digital @armano

64. MEDIA PROPERTIES, OVERLAPS & OWNERSHIP MEANINGFUL ENGAGEMENT IN A CONNECTED WORLDDavidArmano, SVP Edelman Digital | @armano

65. DIGITAL MEDIA PROPERTIES & PLATFORMS

66. Digital properties Websites Custom Built PortalsInternal/Enterprise OWNEDproperties EARNEDmedia 38

67. AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content OWNEDproperties PAIDmedia 39

68. AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content OWNEDproperties PAIDmedia Partnerships Influencer networksBranded entertainmentNiche Platforms EARNEDmedia 40

69. AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content OWNEDproperties PAIDmedia Partnerships Influencer networksBranded entertainmentNiche Platforms EMBASSIES EARNEDmedia SOCIAL platforms outposts RELEVANT Message boards blogosphere Influencer engagement 41

70. THE “CLOVERLEAF” WHERE MEDIA LIVES TODAY

71. 43

72. SEARCH & SOCIAL: HOW DIGITAL MEDIA SPREADS

73. 45 Search: Information based + 1. Digital participant initiates search(information) 3. Traffic directed & media sharedvia social networks and e-mail 2. Results ranked by authority/quality Source: David ArmanoEdelman 2011, edelmandigital.com

74. 46 Search: Information based + 1. Digital participant initiates search(information) 3. Traffic directed & media sharedvia social networks and e-mail 2. Results ranked by authority/quality Source: David ArmanoEdelman 2011, edelmandigital.com Social: Influence based 3. Conversations & social sharing about media influence search results and rankings 2. Media digested, conversed aboutand shared 1. Digital participant views mediafrom social connection (relationships)

75. 47

76. EARNING MEDIA THROUGH OUTREACH

77. FIRST DETERMINE WHO HAS THE RIGHT INFLUENCE 49

78. Source: Edelman 2011, edelmandigital.com 50

79. THE FOUR C’S FORMEANINGFUL ENGAGMENT IN A CONNECTED AGE

81. CONNECTION: EBAY SOCIAL MEDIA SELLERS 53

82. CONTENT: HUGGIES HIGH CHAIR CRITICS 54

84. HC averaged 440 comments on promotional giveaway posts each week (during the commercial program), spurring thousands of positive, personal endorsements from moms, many of whom cited the shaped-to-fit feature as their favorite product benefit55

85. CAMPAIGN: CLINIQUE Directing to Facebook competition 3,365 competition entries 9,000 votes 39,440 visits to the Facebook competition 42,053 YouTube video views 56

86. CAMPAIGN: EDGE #SOIRRITATING “The #soirritatinghashtag has been used about 6,800 times, and attention from numerous media outlets has contributed to mounting buzz — all of which likely contributed to Edge’s decision to continue the campaign throughout 2011” (Mashable) 57

87. COORDINATION: BLACKBERRY GLOBAL SOCIAL BUSINESS 58

89. Paid vs Earned Media 60 Rob Fuggetta Founder/CEO Zuberance @RobFuggetta

90. Leveraging Earned MediaRob Fuggetta, Founder/CEO, ZuberanceApril 19, 2011

91. 62 About Zuberance Social Marketing Company focused on Brand Advocates Turn Brand Advocates into powerful marketing force Generate qualified leads, traffic, sales, positive WOM

92. 63 Where Zuberance Fits In Social Media Marketing Products & Services Listen Engage Sell Zuberance

94. Marketer Tools

95. Advocacy Engine

97. 66 How to Leverage Earned Media Brand Advocacy System

98. 67 Identify Brand Advocates… How likely are you to recommend our brand or product to your friends? 50%

99. 68 Ask Ultimate Question in Many Places Email Call Center Web Product Social Packaging

100. …Energize Brand Advocates… Advocate Ratings & Reviews Advocate Stories Advocate Answers Advocate Offers 69

102. Leads

103. Impressions

104. Sales70 ►Earned Media is Measurable!

105. 71 Real-World Results

106. 72 Q: How Compete Against “Big Boys”? $50M+ Vonage$200M Ooma <$2M Source: Vonage annual report, 2010

107. 73 Answer: Ooma Unleashes Advocates

108. 74 Ooma Acquisition Costs Drop 54% Customer Acquisition Costs (CAC) $146 $78 Before After

109. 75 Problem: Negative WOM ►Yet 54% of Norton customers highly likely to recommend

110. 76 Solution: Norton Advocates to Rescue! Before energizing Norton Advocates: After energizing Norton Advocates: ►Norton sales increased $26 million on Amazon.com

111. 77 750,000 Chili’s Advocates 1M+ Recommendations 50,000+ Email Club Sign-Ups Chili’s Peppers in Earned Media

112. 78 10X Higher Conversion Rate 25% 2.5% Earned Media Paid Media Source: FireClick Index, Zuberance Customer Data

113. 79 Do not pay or coach Brand Advocates Make it easy for Advocates Track and optimize results Get an Advocacy system Best Practices

114. 80 Thank You! Rob Fuggetta, Founder & CEO Zuberance rob@zuberance.com 650.369.2002 Follow Zuberance on Twitter: http://twitter.com/zuberance