CGM & Engagement

Nielsen BuzzMetrics Webinar Series August 15, 2006 Pete Blackshaw, Chief Marketing Officer Max Kalehoff, VP, Marketing

2006 Nielsen BuzzMetrics, A VNU business affiliate

About The Participants Pete Blackshaw, CMO, Nielsen BuzzMetrics

Experience: Intelliseek CMO; Planetfeedback Co-Founder; Procter & Gamble; California Legislature Senate Press Secretary Columnist, ClickZ Author, Consumergeneratedmedia.com Co-Founder, WOMMA

2006 Nielsen BuzzMetrics, A VNU business affiliate

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About The Participants Max Kalehoff, VP Marketing, Nielsen BuzzMetrics

Experience: comScore; Media Metrix; Burson-Marsteller; Y&R Weekly Columnist, MediaPost Author, AttentionMax.com Delegate to WOMMA & ARF

2006 Nielsen BuzzMetrics, A VNU business affiliate

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What Well Cover

What is Engagement? What is CGM? What Is Relationship Between CGM and Engagement? Specific Ways CGM Can Measure Engagement? Final ThoughtsWhat Do You Think?

2006 Nielsen BuzzMetrics, A VNU business affiliate

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What is Engagement?

2006 Nielsen BuzzMetrics, A VNU business affiliate

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Engagement is everywhere

New Rules of Engagement

ARF develops definition of brand 'engagement'

2006 Nielsen BuzzMetrics, A VNU business affiliate

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Massive confusion
Media, marketing and advertising executives at a recent Nielsen BuzzMetrics roundtable disagreed steadfastly about the meaning of engagement.
ARF AAAA Time-Warner Mediaweek Union Square Ventures Northeastern University Nielsen Media Research Edelman WCJ CRMmetrix
2006 Nielsen BuzzMetrics, A VNU business affiliate

ACNielsen Virgin Mobile Publishing 2.0 Grey Interactive Supernova Group Jack Myers Media Business Report and MediaVillage.com PRWeek Root Markets Samsung
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Erwin Ephron
Engagement is more than a search for accountability. It is a cry for help. Advertising has become more fragmented, more costly, and less effective. Many advertisers hope engagement will be the tool for making things better. A system for improving consumer response. But doing is always more difficult than saying, so what do we mean by engagement and how might we measure it?
2006 Nielsen BuzzMetrics, A VNU business affiliate

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Robert Passikoff

Engagement is the consequence of a marketing or communication effort that results in an increased level of brand equity for the product/service.
- Robert Passikoff, Brand Keys Founder

2006 Nielsen BuzzMetrics, A VNU business affiliate

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Bob DeSena

Engagement is a measurement of involvement with a marketing communication.

- Bob DeSena, CEO, Engagement Marketing Group (formerly of Masterfoods)

2006 Nielsen BuzzMetrics, A VNU business affiliate

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Ted McConnell

Engagement is a scale indicating the degree to which a consumer is likely to, or has internalized a communication.
- Ted McConnell, Procter & Gamble

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ARF Unveils Working Definition

Engagement has emerged as more of a demand creation paradigm than the reach or awareness focused paradigm of the past twenty five years. Marketers have identified engagement as a crucial component that underlies consumer brand preference and loyalty especially in response to communications.

Engagement is turning on a prospect to a brand idea enhanced by the surrounding context.

- Joe Plummer, Chief Research Officer, Advertising Research Foundation
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What is CGM?

The Fastest Growing Media Are Those Which Consumers Shape and Share Themselves

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What Is CGM?
Consumer-Generated Media (CGM): Varied and new sources of online content that are created, initiated, circulated, shared and used by consumers who are intent on educating others about products, brands and services. Often informed by relevant experience, and typically archived online for access by other consumers and market influencers. Core Drivers
Basic consumer needs of expression Media fragmentation + device proliferation Erosion of trust in traditional information sources Rise of interactive media, social networks, democratized publishing

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CGM Proliferation
A diverse and fast-growing body of online content Rapidly expanding into multi-media formats

High Penetration

Portals Micro-community sites Feedback Portals Internet Discussion Forums

Media Blogs

Chat, AIM

Consumer Blogs

Mobile-Camera Sharing Forums (MOBLOGS)

Advanced Chat + Phone Enabled

Tagging

PodCasting
(Consumer Version of Satellite Radio)

Low Penetration

Usenet Newsgroups

Groups

Audio Blogs
Marketer Blogs Video Blogs (VLOGS)

Early Stage Internet

2006 Nielsen BuzzMetrics, A VNU business affiliate

Recent Internet (Rich Media)

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CGMNew Formats & Context

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CGM: The Most Influential Information Source

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CGM Acts Like Media and is Highly Targeted

Other (affiliate, etc.), 22% Corporate content, 18%

Media content, 12%

Consumer generated content, 26%

Expert content, 22%

Jupiter Research 26% of top search results for worlds 20 largest brands are consumer-generated.

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Passionate Seekers Connect with Speakers

What if half the store shelf said, Dont Touch This?

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Passionate Seekers Connect with Speakers

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What Is The Relationship Between CGM and Engagement?

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Is CGM a Vehicle to Measure Engagement?

A deeper, better story about brand, media or advertising effectiveness, impact and engagement:

What this Measures? Unique viewers Total households Audience Share Gross Ratings Points (GRPS) Target Ratings Points (TRPs) Reach Frequency Performance Relative to Others

What Else is Out There? Talk value Depth/nature of Engagement Incremental impressions Diffusion/Dispersion Emotional Texture Audience Type Media Spillover Discontinuities/New Learning Reactions from Elusive Audiences

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CGM-Engagement Relationship
It is complexCGM can be: CGM reflects engagement :
An indicator of engagement A form of engagement A result of engagement Media Vehicles Commercial Messages Brand and most importantly Overall Customer Experience

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What Are Measurable CGM Behaviors?

What are Core Transactions in the Age of Consumer Control?

The Simple and Conventional View

A click?

An opt-in?

A transaction?

A TV show watched?

A request?

A page view?

A visit?

Stated Recall?

A More ConsumerCentric View

A post?

A public review? A blog entry?

A photo or video? A site Visit?

A reference?

A love letter?

A reco or referral? Pass Along?

800 call?
A cry for help?

A hate letter?

A request for help?

Tribute content?
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2006 Nielsen BuzzMetrics, A VNU business affiliate

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CGM Credits To Media, Brands, Advertising

Each quadrant tells the brand a different piece of the story. Each implicates/reflects media
while drinking a Pepsi Love Pepsi ad

Branded

my refrigerator has beer and Pepsi

Signed up at Pepsi.com

dentist says I drink too much Pepsi

loved Pepsi half-time show

Subtle Reference to jingle

the P-Diddy ad

Subtle Reference to Spokesperson ..in any context

the half-time show

Non-Branded
soft drinks part of obesity problem free iTune promotion

Indirect / Unconscious
2006 Nielsen BuzzMetrics, A VNU business affiliate

Direct / Explicit
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How did your offline ads resonate or engage?

CGM provided unique insight into return on advertising

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CGM Applied To Engagement: Identifying engaged individuals Determining degrees and quality Anticipating response

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CGM Measurement: Identifying Engaged Individuals

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Identification of Engaged Individuals

When Individuals create CGM, they naturally self-select themselves into passionate segments based on: Affinity
Auto Enthusiasts, Cancer Patients, TiVo Fans

Lifestage
Teens, Moms, Grandparents

Psychographic
Urban Dwellers, Emulaters, Leaders

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Example: Nutrition Influencers

1. Identify large segment of self-selecting individuals.
Longitudinally track over 500,000 consumers who actively discuss food and nutrition, from several hundred individual communities.

2. Segment most influential consumers into influencer panels

Dieters, Nutrition Experts, Concerned Moms, Conscientious Consumers, Fitness Buffs, Diabetics.

3. Track panel longitudinally.

Measure buzz volume across panels for hundreds of nutrition trends, and food brands.

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Example: Buzz Around Splenda

70% 7%

60%

6%

50%
Influencers & Segments

5%
Early Majority

40%

4%

30%

3%

20%

2%

10%

1%

0% Q3/2003 Q4/2003 Q1/2004 Q2/2004 Q3/2004

Diabetics Fitness Buffs

0% Q4/2004

Influencer Panel Conscientious Consumer Head of Household

Dieters Nutrition Experts Early Majority

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CGM Measurement: Determining Degree, Quality of Engagement

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New TV Shows: March 2006 Buzz Levels

Among shows that debuted in the 05-06 Season

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New TV Shows: Sentiment for March

Figure 9: sentiment toward 12 new shows.

Note: Sentiment presented as a % of all show messages in March 2005.

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TV Show Example: Sentiment Over Time

Strong initial buzz quickly gives way to negative attacks; series-long effort restores some positivity.
100%
12% 1% 8% 6% 1% 17% 19% 19% 21% 12% 7% 8% 9% 31% 9% 18% 7% 6% 7% 3% 14% 18% 25% 25% 4% 7% 12% 8% 10% 6% 12% 6%

90% 80% 70% 60% 50%

7%

25%

54% 60% 66% 41% 51% 52% 30% 32% 33%

40% 30% 20% 10%

43% 51%

23% 13% 7% 16% 10%

22%

20%

25%

27%

24%

0%
Pr eLa un ch 2 3 4 8 6 1 7 9 Ep is od e Ep is od e Ep is od e Ep is od e Ep is od e Ep is od e de Ep is od e Ep is od e Ep is od e 10 5 Ep is o

Positive
2006 Nielsen BuzzMetrics, A VNU business affiliate

Negative

Mixed

Unsure

No Opinion
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CGM Measurement: Anticipating Response Provided Engagement

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Low-Carb Dropoff
Decline in volume of Atkins buzz leads sales by a few quarters Echoed by sharp increase in negativity during late Q4
80% 12%

Q4, 2003
70%

Q3, 2004
Low-carb sales peak and begin decline (ACNielsen)
10%

Early majority buzz on Atkins drops

60%

8%

50%

40%

Q2, 2004
Atkins buzz among Dieters, the last hold outs, drops.

6%

30%

4%

20%

2% 10%

0% Q4 03 Q1 04 Q2 04 Dieters Q3 04 Early Majority Panel Q4 04 Q1 05

0%

Source: BuzzMetrics research

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iPod Video Product Launch - Early Warning?

Early Buzz Breaks Early June

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iPod Video Product Launch - Did Web Site Help?

Early Buzz Breaks Early June

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Final Thoughts What Do You Think?

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Final Thoughts On CGM & Engagement

Caveat: discussion of CGM and Engagement is nascent, but a strong relationship appears CGM can offer new advertising accountability frameworks
Beyond reach, frequency and impression models Perhaps proving prior models obsolete or artificial

Engagement and CGM can be studied in a variety of constructs Any discussion of Engagement must also address Disengagement (negative GRPs) Engagement should foremost be about the brand and customer experience

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Nielsen BuzzMetrics Next Steps

Further validation testing on discussed themes Continued Nielsen BuzzMetrics Unconference Series Ongoing Broad Industry Discussion
(Upcoming Ad-Tech Discussionwelcome input)

Nielsen BuzzMetrics CGM Summit 2006

Breakouts on engagement client-only event

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The truth

- Hugh McLeod of Gapingvoid.com

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Thanks...
pete.blackshaw@buzzmetrics.com max.kalehoff@buzzmetrics.com www.nielsenbuzzmetrics.com

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