Consumer Engagement: What Does It Mean?

Consumer Engagement: What Does it Mean? FramingKeynote: Bob DeSena, CEO Engagement Marketing Group ResearchPerspective: Ken Wollenberg, EVP Simmons Integrated Marketing Solutions Agency POV: Kate Sirkin, EVP & Global Research Director MediaVest Group

BobDeSenaEngagementMarketingGroup Framing Keynote

en gaj Bob DeSena Engagement Marketing Group May 22, 2006 to attract and hold fast

(NOT ENGAGING)

(POSSIBLY ENGAGING)

(ENGAGING)

Engagement Agenda –Background –What is it and why is it important? –How do I engage? –What should I be doing? –What changes are required? –Summary

Background –Fragmentation of Media –Consumer Choice –Consumer Control

(NOT ENGAGING)

Background: Beyond Cliché Fundamental ChangeImplication Democratization of content Transfer of creative power Wal-MartTransfer of pricing power and power over marketing information Fragmentation of mediacpM to cpMt, cps Consumer Choice, Control Organize around consumer Passive to ActiveSend to insure received, See to Do — Talk, Listen, Engage

Background: Beyond Cliché –Awkward age in evolution of marketing and media –Mass to targeted to personal communication

Engagement Defined A measurement of involvement with a marketing communication

Engagement Defined A measurement of involvement with a marketing communication –Scale –Activation –Response

Engagement Defined A measurement of involvement with a marketing communication –Scale –Activation –Response “Engagement is turning on a prospect to a brand idea enhanced by the surrounding context.” (MI4 Committee)

Engagement Understood –Strategic recognition of what has happened in the consumer market –And a commitment to meet the changing needs/demands of the “ME” consumer –New Model: Brand + Direct + Digital Marketing Directly

How Do I Engage? Commit (You’re already an expert) 1.Understand WHO 2.Understand WHERE 3.Understand HOW to use unique characteristics, attributes of active channels 4.Insure you listen to what was said, analyze, use feedback to refine 1 above, optimize 2, 3

What Can I Do? Take a direct marketer to lunch

What Can I Do? Take a direct marketer to lunch Think about the bigger picture from your own core competence and skill set

What Can I Do? Take a direct marketer to lunch Think about the bigger picture from your own core competence and skill set Write and publish your thoughts

What Can I Do? Take a direct marketer to lunch Think about the bigger picture from your own core competence and skill set Write and publish your thoughts Do it. Test. Act. Move the discipline forward

What Can I Do? Take a direct marketer to lunch Think about the bigger picture from your own core competence and skill set Write and publish your thoughts Do it. Test. Act. Move the discipline forward “Listen to the data.” Add your perspective

What Can I Do? Take a direct marketer to lunch Think about the bigger picture from your own core competence and skill set Write and publish your thoughts Do it. Test. Act. Move the discipline forward “Listen to the data.” Add your perspective Do #1 again

Requirements –New skill sets Direct Brand Digital –Organizational change –Incentives that match goals

Summary –Things changed. Marketing model, metrics have not –Engagement is a requirement for effectiveness in a permission- based, active consumer market –You know how to do this –Change creates opportunity

THANK YOU Engagement Marketing Group

KenWollenbergSimmons Research Perspective

Engagement from a Research Perspective… May 22, 2006 A Presentation to the iMedia Summit

The Voice of the American Consumer 2 Engagement... “Engagement is all about making it relevant to the consumer.” - James Speros, CMO, Ernst & Young

The Voice of the American Consumer 3 Engagement from a Research Perspective Engagement is a multi-dimensional concept… …It is the ability of the brand and the brand/media environment to meaningfully connect with the consumer. Simply Counting Eyeballs is no Longer Enough!

The Voice of the American Consumer 4 Objectives Simply put… Create a metric for: Planning, Buying & Selling that goes beyond a simple measure of age/sex and click streams

The Voice of the American Consumer 5 Objectives Create ratings of cognitive, behavioral and emotional involvement Validate that engagement translates into a positive halo effect for brand advertising Examine inter- and intra-media channel synergies Enable users to identify brand attributes that resonate with ‘engaged’ consumers

The Voice of the American Consumer 6 *Also reported for major demographic groups Q Site Signature Analysis Tier 1 Deliverable (illustrative)

The Voice of the American Consumer 7 *Also reported for major demographic groups Tier 1 Deliverable (illustrative) Q Brand Signature Analysis

The Voice of the American Consumer 8 *Also reported for major demographic groups Tier 1 Deliverable (illustrative) Category Signature Analysis

The Voice of the American Consumer 9 *Also reported for major demographic groups Tier 1 Deliverable (illustrative) Multi-Channel Signature Analysis

The Voice of the American Consumer 10 Engagement Study Features Multi-media measurement system –Television, Print, Internet Depth and breadth of system –Program, Magazine, Web Site specific English and Spanish-language dominant audiences

The Voice of the American Consumer 11 Engagement Study Features Syndicated platform Linkage to Simmons National Consumer Survey behavioral and lifestyle data Distributed within existing marketplace analysis and delivery systems

The Voice of the American Consumer 12 Engagement Dimensions (illustrative list) OVERALL ENGAGEMENT –Trust –Discovery –Personal Timeout –Relationship Building –Critical images –Ad Receptivity A global set of involvement dimensions will be measured across media channels: Television Internet Print

The Voice of the American Consumer 13 Engagement Dimensions (illustrative list) TELEVISION Personal relevance Mood Interactivity Personal relationship Network/program advertising coherency PRINT Special Content Visual Impact Bonding to a community Entertainment/ relaxation Educative and Informative Ad Congruity INTERNET Near and Dear Inspiring and Personal Ease of Navigation Treat! Social belonging There are also media-specific dimensions measured:

The Voice of the American Consumer 14 Engagement Measurement... Multi-Media Broadcast/Cable –600 programs Magazines by title –150 top ranked –Hard copy/on-line readership Web sites –150 top consumer sites

The Voice of the American Consumer 15 Methodology Sample frame = Adults 18+ Dual data collection methodology –Online/Telephone interviews Continuous survey deployment Quarterly reporting –11,500 interviews quarterly – evaluations per vehicle

The Voice of the American Consumer 16 Engagement Deliverables: *Also reported for major demographic groups

The Voice of the American Consumer 17 Deliverables/Subscription Levels Tier 1: Engagement Rankings –Summary tables ranking media vehicles on overall and individual engagement factors –Delivered quarterly –Subscription available per media channel study –NCS base license not required

The Voice of the American Consumer 18 *Also reported for major demographic groups Tier 1 Deliverable (illustrative)

The Voice of the American Consumer 19 *Also reported for major demographic groups Tier 1 Deliverable (illustrative)

The Voice of the American Consumer 20 Tier 1 Deliverable (illustrative) *Indexed against the All Internet Average for each reporting quarter. *Also reported for major demographic groups

The Voice of the American Consumer 21 Deliverables Tier 2: Engagement Rankings Linked to NCS product usage/attitudinal profiles –Overall engagement and sub-dimensions linked –Utilizing Simmons data integration techniques –Delivered for each 12-Month NCS Spring/Fall release –Access to data requires a base NCS license

The Voice of the American Consumer 22 Tier 2 Deliverable: Link to NCS (illustrative) Enables Users to Create a Robust Demographic and Attitudinal Profile of Each Engagement Metric : Engaged Yahoo.com Users*: DescriptorIndex Women No kids184 Full-Time Employee162 HHI $35-$49K135 Occupation: Prof128 Engaged Yahoo.com Users*: DescriptorIndex Early Adopter305 Internet Involved236 Informed Consumer189 Instant Gratification177 Ad Receptive140 *Top 2 Box Score on a scale of 1 to 5 where ‘1’ is “less engaged” and ‘5’ is “highly engaged”

The Voice of the American Consumer 23 Tier 2 Deliverable: Link to NCS (illustrative) Identify Top Brands Among Engaged Yahoo! Visitors : Engaged Yahoo.com Users*: AutomobilesIndex Honda225 Subaru201 Acura178 Jeep164 Saturn158 Engaged Yahoo.com Users*: CerealIndex Apple Jacks148 Grape Nuts138 Oatmeal Crisp127 Cocoa Puffs125 Froot Loops118 *Top 2 Box Score on a scale of 1 to 5 where ‘1’ is “less engaged” and ‘5’ is “highly engaged”

The Voice of the American Consumer 24 Deliverables/Subscription Levels Tier 3: Advanced Applications –Research executed online –Recontact of original sample or new samples drawn –Stand-alone deliverables or linkage back to syndicated –Pricing on ad hoc basis

The Voice of the American Consumer 25 Tier 3 Deliverable: Advanced (illustrative) Track Engagement on a Day-by-Day Basis to Measure the Impact of Content on Engagement: 8/28/068/29/068/30/06 Engagement: 3.5Engagement: 3.3Engagement: 4.0 Q Engagement Score for AIM Today was 3.4:

The Voice of the American Consumer 26 Development Timeline R&D –Pre-Testing Data Analysis, Model Development Preliminary Deliverables Full Study Launch 2Q06 Spring/Summer 2006 July/August 2006 September 2006

Engagement from a Research Perspective… May 22, 2006 A Presentation to the iMedia Summit

KateSirkinMediaVestGroup Agency POV

Consumer Engagement Panel Discussion Bob DeSena EngagementMarketing Ken Wollenberg Simmons Kate Sirkin MediaVest Moderated by: Doug Weaver Upstream Group

Break Out Session Agency/Client/PublisherRelationships

Some Assumptions… 1.The Agency & the Publisher/Seller Both Want to Bring the Client Impactful, Strategic Ideas 2.There Is Some Inherent Tension in The Relationship 3.Both Parties Would Like to Come Up With A Model for Real Strategic Cooperation 4.A Set of Best Practices and Rules-of-Thumb Would Help Govern These Relationships and Improve Performance and Yield on both sides

We’re all in the business of ideas, but profitable, successful ideas don’t get realized often enough. What’s the single biggest process issue in the agency/seller relationship that stands in the way of idea generation? Issue One:

Seller organizations want access to clients for many reasons. Give us three common sense rules for them to follow in pursuing those client relationships so that they won’t destroy the agency relationship. Issue Two:

The RFP is a staple of our short business cycle, but is it really a good vehicle for exchanging creative ideas? Issue Three:

Many sales organizations would love to have higher level relationships with high level agency executives – media directors, AMD’s, agency presidents, and so on. What’s the right strategy for creating and fostering those relationships? Issue Four:

One thing sales and agency executives share is a common focus on profitability. I’d like each of you to finish this sentence: “Agencies (or Sellers) would help me make my business a lot more profitable if they would…” Issue Five:

Pick an agency relationship (or a seller relationship) in which spending has increased dramatically and consistently over the past three years. Without saying who it is, please offer up several adjectives that describe the character of the relationship. Issue Six:

In all relationships, things can go wrong. In overcoming adversity (a major error on a campaign; a budget cut that really hurts the publisher’s bottom line; missed creative deadlines; political disagreement) what are some of the best practices? How can you fix a problem without damaging the relationship? Issue Seven:

Thank You! Please Your Comments & Questions