Marketing reorganised
around people

   Marcus Wareham
   26th January 2011
Today’s web is   Businesses are   Reorganising
about people     reorganising     around people
                 around people    delivers results
The web is being rebuilt
around people




   Browse        Search    Discover

    90’s           00’s    10’s
Globally, borders are being
replaced with connections




                      600M users worldwide
Companies that connect people
have taken off globally




       Facebook   V Kontakte   Orkut   QZone   Mixi
       600 M      104 M        28 M    305 M   20 M
       users      users        users   users   users
Industries are transforming by
reorganising around people
Gaming is reorganising
around people

          FarmVille      Xbox
News is reorganising
around people

  NY Times     Twitter           CNN




                   43%
                   of news sharing occurs
                   through social media
Music is reorganising
around people

      Pandora           Spotify
Shopping is reorganising
around people

        Amazon             Groupon




                   up to 50%
                   increase in average
                   order value
Institutions are reorganising
around people

             Red Cross     British Monarchy




                     66%
                     of all government agencies
                     are using at least one social
                     networking tool
This is all happening in an age of
rapid technology innovation
Incumbent                                          Entrants
      iPad, iPhone            Social graph, credits,
      iTouch, iTunes                      real-time
                                  communications
      Android, Chrome,              Social gaming,
      Youtube, web Apps       virtual goods, offers

      Kindle, electronics &
                               Social group buying
      general merch

      Motion sensors in            Location-aware
      gaming inputs                mobile services
Mobile has a steeper adoption
rate than any past technology
                                  GLOBAL MOBILE VS. DESKTOP INTERNET USER PROJECTION 2007 - 2015
                            2000




                            1600
Internet Users (Millions)




                            1200




                             800




                            400
                                                                                                   MOBILE
                                                                                                   INTERNET USERS


                                                                                                   DESKTOP
                              0                                                                    INTERNET USERS




                                  Source: Morgan Stanley Research
These social experiences are
following us throughout our lives
        TV      Car    Phone        iPad
Who. What. When. And now Where.
The web is      Businesses are   reorganising
reorganising    reorganising     around people
around people   around people    delivers results
Businesses are reorganising
 around people

                            Product Development
“…technology-enabled
 collaboration with         HR
 external stakeholders      Customer Service
 helps organizations gain
 market share from          Customer Insight
 the competition ”          Marketing
         - McKinsey & Co
Product development is being
reorganised around people
Product development is being
reorganised around people
Human resources is being
reorganised around people
Customer service is being
reorganised around people
Customer insights are being
reorganised around people
Marketing is being reorganised
around people
Marketing has always been a
mix of paid, owned and earned




    Print       Websites      Public Relations




                 OPEN
  Television   Store fronts   Word of Mouth
Facebook lets you create
The ideal is more earned at
the scale and predictability scale
“earned” at unprecedented
Fans are just the beginning




         brand            fan
Fans are more valuable when
they impact their friends
                                  Facebook population




                              Friends of fans
                              60M friends



                                            Fan base
 My friend likes this brand
                                            500K fans
 Ads with friends
This is the NEW word of mouth -
it is twice as effective

          1.6X
     lift in brand recall	


            2X             VS
 lift in message awareness	


            4X                  Meg Griffing Sloan, Becca Foy, and
   lift in purchase intent	

   14 other friends like Heineken
This is word of mouth at
unprecedented scale
                 Facebook population




             Friends of fans
             527M friends

 Starbucks
                         Fan base
                         19M fans


                                       global data
Here is what it looks like
for your brand
                     Facebook population



{insert client
    logo
    here}        Friends of fans
                 XXM friends

   Brand
                               Fan base
                               XXM fans
Facebook has two ways to access
the new word of mouth
                Premium	

                                 Marketplace	





                             1
           1
                             2

                             3

                             4
Premium Ads drive brand impact
Premium Ads drive brand impact
                  •  100% Share of voice
                  •  Guaranteed delivery
                  •  Users don’t have to leave
                     their home or profile page
                  •  Most trafficked pages on
                     Facebook
                  •  Engagement sparks
                     organic sharing to the
                     user’s friends, giving
                     advertisers viral
                     impressions
Marketplace Ads drive action


                  •  Auction-based pricing
    1             •  Drive actions
                     •  Off-site clicks
    2                •  Transactions
                     •  Game installs
    3
                     •  E-commerce sales
                     •  Kick-start fan base
    4
Premium Ads offer unique benefits

                           BENEFITS




   PREMIUM    Brand    6

MARKETPLACE   Action   3
There are four Premium Ads strategies
to address your goals
                       Launch products    Keep community engaged
                       Timely messages    Maintain brand perceptions



                        Target Block     Campaign        Sustained
   Demographics or
Geographic Targeting



          Target
                        Reach Block

        Broad Reach




                            1-3 Days       6 Weeks     Always-on strategy

                                         Duration
The web is      Businesses are   reorganising
reorganising    reorganising     around people
around people   around people    delivers results
A focus on people delivers the results
brands care about

                +9M          +11%
                          awareness after
        recommendation     product launch




                                             2X
                               preference

     4X offline
     2X online            intent

      foot traffic                      +6%
12%+
increase in
brand awareness
7%+
increase in
purchase intent
2x
#of mentions
over World Cup
sponsor
6%
more likely to
purchase Umbro
sportswear and
football shirts


*Result is better than
96% of similar studies conducted by
Nielsen according to their normative
data.
2x
increase in traffic
to levis.com
11%
increase in
awareness of
Krave cereal after
product launch in
UK
9M+
recommendations
for Charity
How could you
build around people?

        Insert
        brand
         logo
[Insert client recommendation]
Approach depends on client scenario
      SCENARIO ONE:                 SCENARIO TWO:

              Product                             Drive constant
              launch	

                           awareness	



  1                                 1
       Premium to drive awareness       Marketplace to reach fan goal




  2    Marketplace to build
                                    2   Stay top-of-mind.
                                        Premium for big impact,
       a fan base
                                        Marketplace for light reminders



  3    Premium to reach friends
                                    3   Premium to drive awareness in
       of fans before launch            line with seasonality
The web reorganised around people
creates new opportunities



Businesses are transforming how they
relate to people and operate



Companies recognizing this shift are
gaining strategic advantage
Appendix
Marketers are reorganising
around people (option 2)
Experiences are better when
reorganised around people




Home Page:                    Photos:
7.25 hrs/month                3B/month

Marcus Wareham - Facebook - 26 january 2011

  • 1.
    Marketing reorganised around people Marcus Wareham 26th January 2011
  • 2.
    Today’s web is Businesses are Reorganising about people reorganising around people around people delivers results
  • 3.
    The web isbeing rebuilt around people Browse Search Discover 90’s 00’s 10’s
  • 4.
    Globally, borders arebeing replaced with connections 600M users worldwide
  • 5.
    Companies that connectpeople have taken off globally Facebook V Kontakte Orkut QZone Mixi 600 M 104 M 28 M 305 M 20 M users users users users users
  • 6.
    Industries are transformingby reorganising around people
  • 7.
    Gaming is reorganising aroundpeople FarmVille Xbox
  • 8.
    News is reorganising aroundpeople NY Times Twitter CNN 43% of news sharing occurs through social media
  • 9.
    Music is reorganising aroundpeople Pandora Spotify
  • 10.
    Shopping is reorganising aroundpeople Amazon Groupon up to 50% increase in average order value
  • 11.
    Institutions are reorganising aroundpeople Red Cross British Monarchy 66% of all government agencies are using at least one social networking tool
  • 12.
    This is allhappening in an age of rapid technology innovation Incumbent Entrants iPad, iPhone Social graph, credits, iTouch, iTunes real-time communications Android, Chrome, Social gaming, Youtube, web Apps virtual goods, offers Kindle, electronics & Social group buying general merch Motion sensors in Location-aware gaming inputs mobile services
  • 13.
    Mobile has asteeper adoption rate than any past technology GLOBAL MOBILE VS. DESKTOP INTERNET USER PROJECTION 2007 - 2015 2000 1600 Internet Users (Millions) 1200 800 400 MOBILE INTERNET USERS DESKTOP 0 INTERNET USERS Source: Morgan Stanley Research
  • 14.
    These social experiencesare following us throughout our lives TV Car Phone iPad
  • 15.
    Who. What. When.And now Where.
  • 16.
    The web is Businesses are reorganising reorganising reorganising around people around people around people delivers results
  • 17.
    Businesses are reorganising around people Product Development “…technology-enabled collaboration with HR external stakeholders Customer Service helps organizations gain market share from Customer Insight the competition ” Marketing - McKinsey & Co
  • 18.
    Product development isbeing reorganised around people
  • 19.
    Product development isbeing reorganised around people
  • 20.
    Human resources isbeing reorganised around people
  • 21.
    Customer service isbeing reorganised around people
  • 22.
    Customer insights arebeing reorganised around people
  • 23.
    Marketing is beingreorganised around people
  • 24.
    Marketing has alwaysbeen a mix of paid, owned and earned Print Websites Public Relations OPEN Television Store fronts Word of Mouth
  • 25.
    Facebook lets youcreate The ideal is more earned at the scale and predictability scale “earned” at unprecedented
  • 26.
    Fans are justthe beginning brand fan
  • 27.
    Fans are morevaluable when they impact their friends Facebook population Friends of fans 60M friends Fan base My friend likes this brand 500K fans Ads with friends
  • 28.
    This is theNEW word of mouth - it is twice as effective 1.6X lift in brand recall 2X VS lift in message awareness 4X Meg Griffing Sloan, Becca Foy, and lift in purchase intent 14 other friends like Heineken
  • 29.
    This is wordof mouth at unprecedented scale Facebook population Friends of fans 527M friends Starbucks Fan base 19M fans global data
  • 30.
    Here is whatit looks like for your brand Facebook population {insert client logo here} Friends of fans XXM friends Brand Fan base XXM fans
  • 31.
    Facebook has twoways to access the new word of mouth Premium Marketplace 1 1 2 3 4
  • 32.
    Premium Ads drivebrand impact
  • 33.
    Premium Ads drivebrand impact •  100% Share of voice •  Guaranteed delivery •  Users don’t have to leave their home or profile page •  Most trafficked pages on Facebook •  Engagement sparks organic sharing to the user’s friends, giving advertisers viral impressions
  • 34.
    Marketplace Ads driveaction •  Auction-based pricing 1 •  Drive actions •  Off-site clicks 2 •  Transactions •  Game installs 3 •  E-commerce sales •  Kick-start fan base 4
  • 35.
    Premium Ads offerunique benefits BENEFITS PREMIUM Brand 6 MARKETPLACE Action 3
  • 36.
    There are fourPremium Ads strategies to address your goals Launch products Keep community engaged Timely messages Maintain brand perceptions Target Block Campaign Sustained Demographics or Geographic Targeting Target Reach Block Broad Reach 1-3 Days 6 Weeks Always-on strategy Duration
  • 37.
    The web is Businesses are reorganising reorganising reorganising around people around people around people delivers results
  • 38.
    A focus onpeople delivers the results brands care about +9M +11% awareness after recommendation product launch 2X preference 4X offline 2X online intent foot traffic +6%
  • 39.
  • 40.
  • 41.
    6% more likely to purchaseUmbro sportswear and football shirts *Result is better than 96% of similar studies conducted by Nielsen according to their normative data.
  • 42.
  • 43.
    11% increase in awareness of Kravecereal after product launch in UK
  • 44.
  • 45.
    How could you buildaround people? Insert brand logo
  • 46.
  • 47.
    Approach depends onclient scenario SCENARIO ONE: SCENARIO TWO: Product Drive constant launch awareness 1 1 Premium to drive awareness Marketplace to reach fan goal 2 Marketplace to build 2 Stay top-of-mind. Premium for big impact, a fan base Marketplace for light reminders 3 Premium to reach friends 3 Premium to drive awareness in of fans before launch line with seasonality
  • 48.
    The web reorganisedaround people creates new opportunities Businesses are transforming how they relate to people and operate Companies recognizing this shift are gaining strategic advantage
  • 49.
  • 50.
  • 51.
    Experiences are betterwhen reorganised around people Home Page: Photos: 7.25 hrs/month 3B/month