Global Branding: Building a Community of Brand Enthusiasts
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The document discusses the evolution of brand engagement and the impact of social media on consumer behavior and marketing strategies from 2007 to 2009. It highlights the success of campaigns like the Rage Against the Machine Facebook effort, which showcased the importance of authenticity and societal relevance in brand interactions. Ultimately, it emphasizes that strong creative strategies and existing brand equity are critical for social media success and viral marketing.
Global Branding: Building a Community of Brand Enthusiasts
- 1. Building a Community of Brand Enthusiasts aka No Free Lunch Nigel Hollis Chief Global Analyst Millward Brown
- 2. What a difference a couple of years can make - 2007 - - 2009 - Dow Jones Index 13,371 350M Consumer Confidence Index** 87.3 116.1M US Television Ad Spending* $67.8B 18M Facebook Users^ 50M 10,344 US Blog Readers* 94.1M 49.5 Twitter Users* 0 $66.9B *eMarketer, ** Conference Board , ^Facebook 2
- 3. After the financial bubble we are enjoying… The social media bubble! 3
- 4. TV is not the only medium to be fragmented Pure Plays Blogging Syndication Peer 2 Peer Wikis & Collab Open Source Tagging & Rating Consumer Review 4
- 5. The power of social media How social media changed the U.K. music industry Data from the U.K.'s Official Charts Company
- 6. Simon Cowell's X-Factor winner topped the U.K. Christmas music charts from 2005 to 2008 So what went wrong this year? 6
- 7. After four years of X-Factor number ones, Jon and Tracy Morter felt enough was enough Over 750,000 fans 7
- 8. A coordinated effort meant that RATM's "In The Name" took the Number 1 slot in spite of the X-Factor hype Christmas Week Source: The U.K.'s Official Charts Company 8
- 9. The Facebook RATM campaign generated a far better conversion rate 12% c. 6,000,000 votes c. 750,000 fans 78% 9
- 10. Why was the RATM campaign so successful? The campaign possessed authenticity • Started by a real person with a real cause It tapped into an underlying societal tension • The suspicion that "big business" is manipulating the public psyche for their own ends The choice of song resonated with a wide audience • Anti-establishment sentiment of the lyrics • Positive associations for people who remembered it from the 90s These ingredients are similar to those of an iconic brand 10
- 11. Do the same factors enable social media success for brands?
- 12. These brands are often praised for their effective use of social media 12
- 13. The average number of fans per brand differs dramatically by product category Source: Facebook Fan Pages 13
- 14. And one or two brands tend to dominate each category Source: Facebook 14
- 15. People who Bond with a brand are more likely to buy it High share of wallet Individuals who Bond with a brand are more than ten times more likely to buy it than those who just know the name Low share of wallet 15
- 16. Successful social media brands tend to be stronger brands Successful Other brands Bonding Advantage Performance Relevance Presence 16
- 17. A strong brand, a distinctive identity, global scale, and an active presence on Facebook drive the number of fans % BONDED COMPARED TO NUMBER OF FANS (100,000S) 17
- 18. Red Bull: Simply an engaging brand 18
- 19. People bond to Coca-Cola and Red Bull for very different reasons 19
- 20. The same drivers create brand and social media success (Strong brands defined as growing equity over a 3 year time period) Projected Leadership Clarity of Associations Brand Success Great Brand Experience Strong Business Model 20
- 21. But what about viral? What does it take to be a success?
- 22. Viral success depends on strong creative and good distribution Creative Contribution to overall number of ad views on YouTube Other support/ PR 22
- 23. Viral success depends on both the propagation rate (creative appeal) and the size of the initial audience Over 10 million views Evolution • Ellen • The View • Entertainment Tonight • Geraldo 500,000 views • Blogger buzz: one of the Top 15 most- linked-to videos among bloggers Daughters (Technorati) Edelman's PR blitz behind "Evolution" led to a much stronger in-market performance 23
- 24. Marketers should consider integrating marketing campaigns across social media sites Sites Visited Membership by # of Sites Source: Dynamic Logic AdReaction 2009 study 24
- 25. Viral success depends on strong creative and good distribution Creative Contribution to overall number of ad views on YouTube Other support/ PR Placement/ease of finding Part of a viral campaign 25
- 26. An example of a viral campaign with multiple executions driving ongoing engagement 26
- 27. 12 /1 0 20 40 60 80 100 120 / 20 09 12 /3 / 20 09 12 /5 / 20 09 12 /7 / 20 RATM campaign 09 12 /9 / 20 12 09 /1 1 /2 00 12 9 /1 3 /2 00 12 9 /1 5 /2 00 Source: Factiva, number of print articles per week 12 9 /1 7 /2 00 12 9 /1 9 /2 00 12 9 /2 1 /2 00 12 9 /2 3 /2 00 12 9 /2 5 /2 00 12 9 /2 7 /2 00 12 9 /2 9 /2 00 12 9 Mass media coverage helped drive awareness of the /3 1 /2 00 9 27
- 28. Why are people using social media? It's about people, stupid!
- 29. Facebook is about connecting with specific people, while Twitter is used as an information access platform % % % % Am able to keep in touch with distant family members Feel more connected to old acquaintances Feel more informed about current events Feel more informed about pop culture Source: Dynamic Logic AdReaction 2009 study 29
- 30. Twitter: First in the know about celebrities and events You follow someone on Twitter because you want to hear what they have to say. 30
- 31. Only 13 percent of social media users follow brands, but they participate in an average of three categories Retail CPG 13% Technology 12% Sports Restaurants Travel Banks/Finance Follow Do not Quick Service Restaurants Auto Source: Dynamic Logic AdReaction 2009 study 31 Q23. What types of companies or brands do you follow or keep up with via social networks? (Check all that apply)
- 32. People follow brands largely for what they can get out of it: Information, discounts and giveaways Q24. Please select any of the following reasons you choose to follow brands or companies on social networking sites. (Check all that apply) CPG Retail Technology % % % Info about new products 83 68 80 Sales/Discounts 74 71 76 Contests and giveaways 61 56 62 Sharing thoughts/ideas 56 48 55 Like the brand 48 51 48 Reading people’s responses 47 43 55 Company news 46 33 61 Source: Dynamic Logic AdReaction 2009 study 32
- 33. Conclusion No free lunch with social media
- 34. It's a chicken-and-egg dilemma: Success breeds success Pre-existing brand equity is the best predictor of a brand's social media success • Fans are more "end" than "means" Social and viral success relies on creativity and scale • Aim to seed creative execution with mass- media for maximum impact People use social media to connect with people and brands they know (or to find a good deal) • Figure out what value your brand brings to the social scene • Test the idea, listen, and engage • If it is a success, publicize it 34
- 35. The best social media brands tend to be the best brands Tap into universal human values Hold true to what the brand stands for Anticipate the consumer Act big Invite consumers in 35
- 36. Thank you for listening For more commentary on brands, media and marketing please visit: mb-blog.com