Session Leader: Jennifer Wilson, principal, Lean Forward

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Session Leader Jennifer Wilson, principal,
Lean Forward
The Empowered Consumer
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The Empowered Consumer

• Lets find out whos in the session.
• You are a
• Brand Advertiser
• Agency Executive
• Direct Marketer
• Publisher /Media Owner
• Technology Vendor

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The Empowered Consumer

• Objectives of this session
• The evolution of the connected consumer
• Opportunities available with this new consumer
• Learn the changing behaviour concepts

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Mega Trends

• From Ads To Content- Break with consensus- Hire
  your users- Let go of content - Respect
  people's time- Stories are conversations -
  Create multiple elements
• From Consumers to Users- Content leads to
  conversations- Social glue cements friendships
  - Identify the right influencers - Behaviour
  drives media choices
• From Broadcasting to Narrowcasting - Utilise
  potential of new formats- Make the users, the
  distributors- Focus on niche channels- Ensure
  activities can be tracked

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Key Trends

• Limited time (even multitasking) equals selective
  attention
• We need clues as to what to bother with and how
  to limit the noise
• Our communities will be key to this discovery and
  filtering
• Social networking has changed notions of
  privacy and friendship
• The content is all that counts, device and medium
  are irrelevant
• Attention shifting any where, any time will
  truly add any device
• The empowered consumer (Gen C) is broader than
  Gen Y
• Capturing attention will mean moving the messages
  to where the consumer is, not waiting to be found
• Sometimes, numbers are not the only game in town
  (think niche)
• Understanding how to use community and behaviours
  and what this means for how you position your
  brand

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Attention is Shifting

• Neilsen-Online report stated
• 84 use some form of Web 2.0 to share content
• 83 consume Consumer Generated Media
• 77 comment on or create CGM (increasing comfort)
• 78 download audio or video content
• 69 upload video or audio content
• Peer recommendation is the single largest
  influence on their take up of CGM (and where they
  go for this)
• 40 need more time to participate more
• Needing faster internet was a low barrier (15)

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100s of 1,000,000s or 1,000,000s of 100s?
In 2007, revenue to portals sites dropped by over
5 (first fall) as attention by-passed the home
page and went either directly or via search
engines, straight to destination sites (75) .
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Changing behaviour, changing devices

• US (the impact of Digital Video Recorders)
• 24 have DVR, 48 use Video on Demand (VoD)
• 33 watch more TV (but most watch 50
  replay)(Australians like live TV
  replay)
• Mobile
• UK 26 report watching video on mobile
• 32 of those reduce their tv viewing, 8 by a
  lot, and 4 substitute tv with mobile
• 50 want full length shows on mobile, not short
  form

Figures taken from IBM End of Advertising
Report August 2007
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Joost hundreds of channels
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Veoh fast, simple UGC
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But more importantly. creating

• Contribute to social networks
• Japan 9 US 16
• UK 20 Australia 30
• Uploaded video
• Japan 4 US 7
• UK 9 Australia 9
• Australian participation online in terms of
  contribution to sites is the worlds highest

IBM End of Advertising Report August 2007
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Lets upload our content
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But why not get paid for it?
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Is technology the cause?

• Video, DVD, hard disk recorders (DVD)
• Time shifting and ad skipping (ratings?)
• Sling box
• Place shifting (location and device)
• Bit Torrent, Joost, Hulu, Veoh etc
• Device shifting
• YouTube, Babelgum, Vimeo, Viddler etc
• Shift from profession - UGC (but how much?)
• Mobile TV
• Video on demand, snacking and repurposed

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Or is it Community??

• If there are 20k shows 400 channels on Joost
• And approximately 8 hours of video is loaded
  every hour on youTube
• How do we decide what to watch, read, engage?
• We rely on recommendations and referrals to tell
  us what we should be engaged with
• Our community (known and unknown) is the source
  of recommendations
• Social networks have key functions conversation,
  discovery, finding, sharing, recommending plus
  play
• You need to go where the market is to meet them

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User filtered content
User Filtered Content (UFC) is what Web 2.0 is
about
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Social Functions (the feature set)

• Identity uniquely identifying people in the
  system
• Presence knowing who is online, available or
  nearby
• Relationships describes how users in the system
  are related (Flickr people can be contacts,
  friends or family)
• Conversations talking to other people via the
  system
• Groups a way of forming communities of interest
• Reputation how to know the status of other
  people in the system (who's a good citizen? who
  can be trusted?)
• Sharing sharing things that are meaningful to
  participants
• Not every social software system has all of
  these, but most of them have three or more. The
  most popular implement many of these building
  blocks, but focus on just one or two.

Based on some concepts from Gene Smith with
thanks to Matt Webb Stewart Butterfield
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Social Software Building Blocks

• Flickr is for sharing photos
• Slideshare lets you share Powerpoint
  presentations
• Twitter aims at presence
• Instant messaging applications are about
  conversation
• LinkedIn tracks relationships

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Gen-C (Young Active Fun)

• An empowered and always on generation
• Aged 11 30 (caveat see below) (cross over
  with Gen Y, defined by behaviour)
• Initially called the click and go generation,
  C can stand for any and all of the following
• Community Connected
• Creative Content Celebrity
• Home MySpace, Facebook, YouTube, Flickr, Pownce
• Device mobile phone
• Communication Social Networks, MSN, SMS (email)
• Network 110 (Dunbar 150), core group of 10 -15

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Life of a Gen C

• Will never read a newspaper but attracted to some
  magazines
• Will never own a land-line phone (and maybe not a
  watch)
• Will not watch TV on someone elses schedule much
  longer
• Trust unknown peers more than experts
• Are starting to be willing (2005) to pay for
  digital content
• Little interest in the source of information,
  mostly aggregated.
• Community at the center of Internet experience
• Think not interested in advertising/affected by
  brand - wrong
• Everything will move to mobile
• Less interested in television than any generation
  before
• Move content from platform to platform without
  restrictions
• Want to be heard (user generated)
• Use IM/Soc Net. Think e-mail is for their parents

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Aggregation, by peers
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C Celebrity
On Guy Kawasakis Blog
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Why is mobile important?

• There are about 1.05 billion internet connected
  PCs
• There are more than 2.6billion mobile phones
• SMS is largest data application on the planet
• 5 times as many user of SMS than any form of IM
• SMS is the preferred form of communication
• The fasted and the most private
• Almost 60 of the planet have them their
  primary community connection is through them
• Gen-C own their phones, in way they dont own
  internet or PC connections. Most personal, most
  intimate
• 1g voice 2G SMS 3G social networking

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Where does it sit in our psyche?

• 13 regard it as their best friend 2/3rd would be
  emotionally affected if we lost it)
• 14 of us answer it during sex
• Almost 90 would take it to the toilet with them
  (and too many are willing to answer it there!)
• 28 of us send sexually explicit SMS messages
• 23 have dumped a partner via SMS
• Mobile is our most important connection 70
  would refuse to lend a phone to a friend for a
  day
• 15 of the youth market disposable income is
  spend on mobile and related services

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Mobile VoD - growing
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Specific Focus (iPhone)
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Join the ConversationHow to Engage
Marketing-Weary Consumers with the Power of
Community, Dialogue and Partnership
Joseph Jaffe
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The Conversation

• Communication (one way) must give way to
  conversation (two way)
• The conversation will always be key, and the more
  two-way, the better
• There is only one consumer, regardless of the
  method of engagement
• So there should be only one conversation
• Let your community talk to each other
• Listen in on their conversations
• And dont interrupt them!

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But does advertising work here?

• Why do people go to specific places and what
  might they do there?
• Is your message relevant to these people or just
  more noise?
• If you want new consumers how do you get
  discovered (and recommended)?
• Are you across the new media and the new
  possibilities?
• Is the 30 second spot dead, or is it sit back
  media that is dead?
• Where has your audience gone?

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Sinner or Saviour?
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What did I mean by conversation?

• Jose Avila III furnished his apartment using
  FedEx boxes and padded envelopes.
• They sent him a cease and desist
• Accusation? Profiting from their IP

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WeDigTV (new life for the 30 spot?)
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HSBC www.yourpointofview.com
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HSBC www.yourpointofview.com
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Some Pointers

• ALL of your consumers are empowered
• Never stifle the conversation feed it
• If the 1990 rule is correct,
• Finding your 1 is crucial
• Nurturing your 9 is vital
• They are the key to accessing your 90
• Know what you are talking about before you start
  the conversation
• Dont even start if youre not going to continue.
  Consumers are sensitive to fakery
• Deliver (and live) the experience

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Same rules for Second Life
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Is this really real?

• A hoary old fish, hooks and leaders trailing
  like battle ribbons from his jaw, approaches a
  collection of loitering youngsters taking their
  ease by a coral reef. "Hey," says the grandpa,
  "how's the water?". The young fish smile, bob and
  sway their fins deferentially. "Fine, fine,
  fine," they all say. When the relic has swum off
  and away, they turn to each other and, almost
  simultaneously, say, "What's that all about?
  What's water?
• Quote source David Foster Wallace, Infinite Jest

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The Empowered Consumer

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• 4 Very Good
• 3 Good
• 2 Couldve been better
• 1 I learned nothing

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The Empowered Consumer

• To provide comments on this session please email
• Beth Etling beth_at_ad-tech.com
• Please mention the session title in your email.