Digital Media WorkshopCBS 5 & Faction Media

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N Faction OverviewSmart people doing smart things—that's Faction Media. Innovation is our business and our mission is to build long lasting, profitable relationships between our clients and their customers. We've built our reputation on our ability to successfully combine progressive thinking, great creativity, and cross-channel marketing expertise.

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About Faction

The Agency

- Based in Denver, Colorado

- Office in Phoenix

- Founded in 2005

- 5 Fortune 1000 clients

- 12 soon to be Fortune 1000 clients

The Leaders in B2B Digital Marketing

- Technology partners with the leading digital pioneers including Google, Yahoo, MSN, Omniture, SilverPop & Atlas

- Regular contributors to Marketing Sherpa, DM News, Target Market Magazine and BtoB Magazine

- Over 40 national & international digital marketing awards

- Serve as judges at multiple digital marketing awards shows

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Make Marketing Dollars Work Harder

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Shifting Communication Models

Traditional Information Theory Shannon/Weaver sender/receiver model

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RY • Communication was characterized as a passive systemic process

• Penetration within the marketplace awareness would rise to the level of brand/product awareness and/or subsequent purchase intent

• The incremental costs associated with generating awareness are no longer relevant, nor feasible, for most marketers in our economic business environment

MESSAGE NOISESENDER TRANSMISSION CHANNEL RECEPTION RECEIVER

The New Information TheoryActive Engagement and Participation by the Consumer

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RECEPTIONRECEIVER TRANSMISSION

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MULTIPLE CHANNELS

MEDIA FRAGMENTATION

MESSAGE SENDER

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• Marketers must provide pathways to Brand/Product/Service information through multi-cross-channel strategies and tactics

• Audiences participate becoming the Media (Advocacy) with unlimited access to contextually relevant information

• Direct touchpoints with the Brand allowing for unique experiences customized to audience segments

• Conversation, Dialogue and Transparency are critical to developing a genuine relationship with your audience(s)

Dynamics of the Digital Media Shift

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Growing Maturity of the Web

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IFT Building a 50 Million People Audience:

• Radio took 38 years

• TV took 13 years

• World Wide Web made to the 50 million person audience mark in 4 years

• Facebook has attracted 300 Million users in 5 years

• Twitter is currently around 60+ Million users

The Web Today @ 5200 Days Old

2009 Digital Landscape• Worldwide Digital Population 554,618,961*

• Number of US Internet users will reach nearly 200 million in 2008**

• Consuming 1600 Web pages during 37 Sessions per month per person while visiting • Over 185 Million Web sites / Over 1 Trillion web pages found by Google in 2008• 72.5% of US Households have Broadband

Diversity of Online Audience• 56.7 million Baby Boomers users online• 23 million Hispanics, about 52% of the US Hispanic population• 17 million Matures 62+ is online spending more than an average 44 minutes per day• 12.1 million adult GLBT Internet users in the US in 2007, representing 7.9% of online adults

Rise of Networked Individualism• Endless choices of interests: Professional, Personal, Social, Political, Sub-Cultural.... • All connected through Digital communications instantaneously accessible to advertisers• Understanding your audience intimately is critical

*Nielsen NetRatings **eMarketer / ClickZ (complied)

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"The Internet? We are not interested in it"

- Bill Gates, 1993

Local Digital Media spends expected to double by 2013.

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*Kelsey Group Information - Local ad forecast

Digital Media Spend on the Rise

*Forrester Research 2009 Interactive Marketing Forecast Survey/Interactive Marketing Models

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Media Consumption

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The Shift is ON

Average Hours per week that consumers spend doing these activities

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Gen Y(18-27)

Gen X(28-41)

Younger Boomers(42-51)

Older Boomers(52-62)

Seniors(63+)

Using a PC at Home 10.9 9.0 8.4 8.7 8.6

Watching TV 10.4 11.3 12.5 13.7 14.3Using a Mobile

Phone 8.9 5.8 4.7 3.4 2.3

Using the Internet for personal use 9.0 7.5 6.5 6.5 5.8

Listening to the Radio 7.0 6.9 7.4 6.2 5.3

Watching DVD/VHS 5.8 4.3 3.6 3.3 2.8

Playing Video Games 4.3 2.0 1.1 1.1 1.1

Reading offline Magazines 1.7 2.0 2.1 2.4 3.1

Reading Offline Newspapers 1.2 1.7 2.8 3.6 5.1

*Forrester Research 2008 US Online Consumption

Americans multi-task their media

The Changing Video Experience• 57% of TV and Internet homes simultaneously use the Internet and TV at least one time per month.

• As of June, 28% of consumer’s time using the Internet is also spent simultaneously watching TV.

• Short form video (such as YouTube clips) still makes up the lion’s share of online video viewing — 83% in May 09 — while name-brand TV network content comprises the majority of mobile video viewing.

• Every minute there is more than 20 hours of video content uploaded to YouTube.com

• Over 15 million Americans report watching mobile video in Q2 2009. This is an increase of 70% versus last year.

Localized Advertising• Local online advertising, defined as display, search, and classifieds, will be worth $8.9 billion in 2012.

• Local search is $2.5 billion of that total, according to Jupiter.

*Nielsen NetRatings **eMarketer / ClickZ (complied)

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Digital Advertising Drives Behavior

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It’s Interconnected• People Search concepts from TV, Display• Search drives telephone calls• Local Ad’s drive store visits• Social Media drives Research, provides reviews, forms opinions

Ford's Kermit the Frog Intro to hybrids at the Super Bowl was leveraged by GM with them buying the puppet's moniker as a keyword and running ads for its hybrid program under sponsored results. Text in GM's paid listing read "Live Green, Go Yellow," and encouraged people to learn about GM FlexFuel vehicles. The link led to OnlyGM.com, a microsite where the carmaker promotes its approach to alternative fuel.

Strategic and Tactical Implementation

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Digital EcoSystemWhile the toolsets available to marketers are the same the strategy behind the campaign coupled with precise execution is the key to success.

The Digital EcoSystem

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Understanding Measurement Tools & Analytics

Digital Media is highly insightful

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Through this media you can understand:

•How people arrive at a website•How they navigate•How they find information•How they value content•How they respond to alternative offers•How they react to email/search/display marketing•How they interact in the buying process•How they manage customer service

But you have to take Measurements

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What Metrics Are Not.... Clicks, Page Views, Hits

Metrics Are Business Intelligence that provide your business a competitive advantage...

• Increase efficiency of Marketing Budgets/Spend• Competitive Intelligence• Pathway to understanding your customers behavior = Increased Sales

Engage Metrics• Pick a analytics platform to capture and measure data (online/offline).• Pick a metric, develop a scorecard, and use it. • Consistently measure and interpret data for campaign optimization.• Measure performance and kill what isn’t working

Further Improve Your Current Online Marketing Efforts• Gather/Analyze any existing marketing/customer data.• Concentrate on Audience Segmentation to reach your Niche(s)

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Metric Framework Drives Analytics Tool Selection

July 2009 Forrester Wave Web Analytics

Identify your needs• Immediate• Long Term

Pick a platform• Sometimes free is good enough• But it can cost you

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Practical Applications

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Demand Generation

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Finding an audience, the challenge to driving sales

•Create online retail brand for importer•Identify niche audiences for niche products•Identify tactics for:

•Driving immediate sales •Creating brand recognition for future

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Sara - First Time Tree Purchaser Females, 25-40 (Young co-habiting couples)Aesthetic appeal in the selection of longevity of productResearch products in store prior to purchaseNot first-time online shoppers

Like the convenience of internet commerce

Patricia - Convert from Fresh TreesIndividuals/Families who have decided not to

continue to purchase fresh treeFemales, 30-50Looking for convenience and service

Less mess and hassle

Vera - Decorative PurchaserFemales 25-50More affluent

Disposable income to enhance surrounding for holiday season

Looking for selectionOften supplements a fresh tree or additional

artificial tree

Artificial Tree Niches

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Digital Tactics Sell Trees

• Search - Paid and Organic

• Shopping Portals (PriceGrabber,NexTag, Shopping.com, Shopzilla)

• Display Ads/Email Sponsorship (Shefinds.com)

• The Digital Effect ....1+1=3

• Email leading to Blogs to spike in Organic Search

• 180 days exceeded projected sales in Q4 2007

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tw telecom SMB/Enterprise Revenue Genertation Effort

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tw telecom background/profile

tw telecom provides managed network services, specializing in Ethernet and transport data networking, Internet access, local and long distance voice, VoIP, VPN and security, to enterprise organizations and communications services companies throughout the U.S. As a leading provider of integrated and converged network solutions, tw telecom delivers customers overall economic value, quality, service, and improved business productivity.

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Building solid relationships through better network connections.

Your lifeline to the world outside your office and your most powerful ally at work - your computer - has had enough. Your unreliable network connection has driven it to seek help, and it’s left a trail for you to follow until the issue is resolved.

Designed to be subtly humorous, this concept takes a “before and after” approach to depict how people grow their relationships with their PCs through their networks. The underlying message and tie-in to tw telecom: we have experience in establishing strong network connections; we provide a human touch typically not associated with telecom companies.

This concept would tap into tw telecom’s personalization message, while conveying other messages associated with the brand, including simple, flexible, reliable, and quality services delivered from a single source.

From the beginning the campaign was purpose-

built for active engagement, and we’ve coined the term “Active Interaction Campaign”

to describe it.

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Direct Delivery Interact

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Phone Response

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PERSONALIZED VIDEO

PAID SEARCH

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Measure, Learn, Adapt

CAMPAIGN ANALYSIS

Respond+Measure

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GOOGLE RESULTS/PPC AD

LANDINGPORTAL/

STREAMING VIDEO

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Email Meant to Tease and EnticeThe email was the introduction to the campaign and the first touch point with prospects.

Two different emails to a N2 sample of 500 prospects.

• One that took half of the recipients directly to the landing page: 5.71% CTR

• One that prompted the other half of recipients to Google their name: 14.04% CTR

The results was a significant difference in the number of click-throughs from the direct link email to the Google your name email.

Given the almost three times more impressive performance of the Google email, all campaign materials were adjusted to ensure the Google component was included in all emails and direct mailers to prospects.

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The Search portion of the campaign included keyword set-up and management. Following receipt of the email/direct mail, the respondents searched their name in Google and find a sponsored link with their name and a personalized message from tw telecom.

Search Campaign

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The direct mail was a self-mailing DM piece with a Post-It Note inside – designed for reinforcement of the email by prompting and enticing the targeted recipient who had not responded to the email.

Direct Mail

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EXTERIOR INTERIOR

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The Web portal is the central hub of the campaign. All Search traffic was be directed to the site from which the targeted user we able to view a variable-data video and interact with offers and incentives.

Web Portal

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Optimization Process & Results

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As the campaign progressed, real time data was gathered and yielded critical insight to the overall performance of the campaign. Ultimately is defined a funnel for lead qualification, and provided data useful for followup efforts based on user engagement throughout the process.

• Re-Targeted Non-Responders based on A/B test results

• Adjusted e-mail creative based on initial performance

• Google component proved to be challenging given the number of names and unforeseen variables: (Athletes, Authors, Copyright Issues, Famous Figures / Charlie Brown, etc.)

• Increased a lift in response rate of 21.5% in sales.

Performance Optimization

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Campaign Results

Ultimately the success metric for the campaign was the total “meet rate” generated. Based on the average sale and historical close ratios it is estimated that the Active Interaction Campaign generated an impressive net ROI representing first year in contractual reoccurring revenue.

Campaign MetricsEmail Send: 7860

Email Deliveries: 6389Email Open Rate: 19%

Email CTR: 14%

Search Names Purchased: 4976Search Impressions: 37,063*

Search Clicks: 276Search Response Rate: 5.5%

Landing Page Visits: 353Visit Length: 5.7 minutes

Phone Response: 85

Meet Rate: 7%

Ten Digital Marketing Take Aways

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Ten Digital Marketing Takeaways:

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• Don’t assume you know your audience

• Allow for unique experiences for your target audiences

• Use technologies when appropriate

• Integrate, Integrate, Integrate - offline/online

• Measure only what you’re able to act upon

• Don’t comprise on the quality of your Web site (it’s your main hub)

• Localize digital campaigns to your market - local portals, sites, geo-targeting search

• Leverage cost effectiveness of e-mail to attract and retain customers

• Find your Niche and own it - dominate the space

• Understand your failures and leverage them for improvement

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1730 Blake Street Suite 200 Denver, CO 80202 www.factionmedia.com

Contact UsSteve Riegelstever@factionmedia.com 303.339.0206

Dave Grevesdaveg@factionmedia.com 303.339.0206

Kurt Greveskurtg@factionmedia.com 480.275.8448