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    2006 Nielsen BuzzMetrics, A VNU business affiliate

    CGM & Engagement

    Nielsen BuzzMetrics Webinar SeriesAugust 15, 2006

    Pete Blackshaw, Chief Marketing Officer

    Max Kalehoff, VP, Marketing

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    About The Participants

    Experience: Intelliseek CMO;

    Planetfeedback Co-Founder; Procter &

    Gamble; California Legislature Senate

    Press Secretary

    Columnist, ClickZ

    Author, Consumergeneratedmedia.com

    Co-Founder, WOMMA

    Pete Blackshaw, CMO, Nielsen BuzzMetrics

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    About The Participants

    Experience: comScore; Media

    Metrix; Burson-Marsteller; Y&R

    Weekly Columnist, MediaPost

    Author, AttentionMax.com

    Delegate to WOMMA & ARF

    Max Kalehoff, VP Marketing, Nielsen BuzzMetrics

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 4Return to Home

    What Well Cover

    What is Engagement?

    What is CGM? What Is Relationship Between CGM and Engagement?

    Specific Ways CGM Can Measure Engagement?

    Final ThoughtsWhat Do You Think?

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    What is Engagement?

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    Engagement is everywhere

    New Rules of Engagement

    ARF develops definitionof brand 'engagement'

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    Massive confusion

    ARF

    AAAA

    Time-Warner

    Mediaweek

    Union Square Ventures

    Northeastern University

    Nielsen Media Research

    Edelman

    WCJ

    CRMmetrix

    ACNielsen

    Virgin Mobile

    Publishing 2.0

    Grey Interactive

    Supernova Group

    Jack Myers Media Business Report

    and MediaVillage.com

    PRWeek

    Root Markets

    Samsung

    Media, marketing and advertising executives at arecent Nielsen BuzzMetrics roundtable disagreed

    steadfastly about the meaning of engagement.

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    Erwin Ephron

    Engagement is more than a search for

    accountability. It is a cry for help.

    Advertising has become more

    fragmented, more costly, and less

    effective. Many advertisers hope

    engagement will be the tool for making

    things better. A system for improving

    consumer response. But doing is always

    more difficult than saying, so what do we

    mean by engagement and how might we

    measure it?

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    Robert Passikoff

    Engagement is the consequence

    of a marketing or communication

    effort that results in an increased

    level of brand equity for the

    product/service.

    - Robert Passikoff, Brand Keys Founder

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    Bob DeSena

    Engagement is a measurement of

    involvement with a marketing

    communication.

    - Bob DeSena, CEO, Engagement Marketing

    Group (formerly of Masterfoods)

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 11Return to Home

    Ted McConnell

    Engagement is a scale indicating

    the degree to which a consumer is

    likely to, or has internalized a

    communication.

    - Ted McConnell, Procter & Gamble

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 12Return to Home

    ARF Unveils Working Definition

    Engagement has emerged as more of a

    demand creation paradigm than the reach or

    awareness focused paradigm of the past twenty

    five years. Marketers have identifiedengagement as a crucial component that

    underlies consumer brand preference and

    loyalty especially in response to

    communications.

    Engagement is turning on a prospect to a brand

    idea enhanced by the surrounding context.

    - Joe Plummer, Chief Research Officer, Advertising

    Research Foundation

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 13Return to Home

    What is CGM?

    The Fastest Growing Media AreThose Which ConsumersShape and Share Themselves

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 15Return to Home

    CGM Proliferation

    A diverse and fast-growing body of online content

    Rapidly expanding into multi-media formats

    Early Stage Internet Recent Internet (Rich Media)

    LowPenetration

    HighPenetration

    UsenetNewsgroups

    InternetDiscussion

    Forums

    ConsumerBlogs

    Chat, AIM

    Mobile-CameraSharing Forums

    (MOBLOGS)

    Advanced Chat +Phone Enabled

    Video Blogs(VLOGS)

    PodCasting(Consumer Versionof Satellite Radio)

    Micro-communitysites

    Audio

    Blogs

    Portals

    Feedback

    Portals

    Groups

    MediaBlogs

    Marketer

    Blogs

    Tagging

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 16Return to Home

    CGMNew Formats & Context

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 17Return to Home

    CGM: The Most Influential Information Source

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 18Return to Home

    CGM Acts Like Media and is Highly Targeted

    Corporate

    content, 18%

    Media content,

    12%

    Expert content,22%

    Consumer

    generated

    content, 26%

    Other (affiliate,

    etc.), 22%

    Jupiter Research

    26% of top search results forworlds 20 largest brands areconsumer-generated.

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 19Return to Home

    What if half the store shelfsaid, Dont Touch This?

    Passionate Seekers Connect with Speakers

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    Passionate Seekers Connect with Speakers

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    What Is The RelationshipBetween CGM and Engagement?

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 22Return to Home

    Is CGM a Vehicle to Measure Engagement?

    A deeper, better story about brand, media or advertising effectiveness,

    impact and engagement:

    What this Measures? What Else is Out There?

    Unique viewersTotal householdsAudience ShareGross Ratings Points (GRPS)

    Target Ratings Points (TRPs)ReachFrequencyPerformance Relative to Others

    Talk valueDepth/nature of EngagementIncremental impressionsDiffusion/DispersionEmotional TextureAudience TypeMedia SpilloverDiscontinuities/New LearningReactions from Elusive Audiences

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 23Return to Home

    CGM-Engagement Relationship

    It is complexCGM can be:

    An indicator of engagement

    A form of engagement

    A result of engagement

    CGM reflects engagement :

    Media Vehicles

    Commercial Messages

    Brand

    and most importantly

    Overall Customer Experience

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    What Are Measurable CGM Behaviors?

    What are Core Transactions in the Age of Consumer Control?

    A click?

    A visit?A

    page view?

    A transaction?

    A request?

    An opt-in?The Simple andConventionalView

    A More

    Consumer-

    Centric View

    A TV showwatched?

    A post?

    A photoor video?

    A blogentry?

    A reference?

    A reco orreferral?

    A publicreview?

    A site

    Visit?

    A loveletter?

    StatedRecall?

    Pass Along?

    800 call? A hateletter?

    A requestfor help? A cry

    for help?

    Tributecontent?

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 25Return to Home

    CGM Credits To Media, Brands, Advertising

    Each quadrant tells the brand a different piece of the

    story. Each implicates/reflects media

    Branded

    Non-Branded

    Direct / ExplicitIndirect / Unconscious

    Love Pepsi ad

    the P-Diddy ad

    while drinking a Pepsi

    my refrigerator has

    beer and Pepsi Signed up at Pepsi.com

    loved Pepsi half-time show

    the half-time show

    free iTune promotion

    Subtle Reference to jingle

    Subtle Reference to Spokesperson

    ..in any context

    dentist says I drink too much Pepsi

    soft drinks part of obesity problem

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 26Return to Home

    How did your offline ads resonate or engage?

    CGM provided unique insight into return on advertising

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 27Return to Home

    CGM Applied To Engagement:

    Identifying engaged individuals

    Determining degrees and qualityAnticipating response

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    CGM Measurement:

    Identifying Engaged Individuals

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    Identification of Engaged Individuals

    When Individuals create CGM, they naturally self-select

    themselves into passionate segments based on:

    Affinity

    Auto Enthusiasts, Cancer Patients, TiVo Fans

    Lifestage

    Teens, Moms, Grandparents

    Psychographic

    Urban Dwellers, Emulaters, Leaders

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    Example: Nutrition Influencers

    1. Identify large segment of self-selectingindividuals.

    Longitudinally track over 500,000 consumers who actively discuss food andnutrition, from several hundred individual communities.

    2. Segment most influential consumers intoinfluencer panels

    Dieters, Nutrition Experts, Concerned Moms, ConscientiousConsumers, Fitness Buffs, Diabetics.

    3. Track panel longitudinally.

    Measure buzz volume across panels for hundreds of nutrition trends, andfood brands.

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    Example: Buzz Around Splenda

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    Q3/2003 Q4/2003 Q1/2004 Q2/2004 Q3/2004 Q4/2004

    Influe

    ncers&Segments

    0%

    1%

    2%

    3%

    4%

    5%

    6%

    7%

    E

    arlyMajority

    Influencer Panel Dieters Diabetics

    Conscientious Consumer Nutrition Experts Fitness Buffs

    Head of Household Early Majority

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    CGM Measurement:

    Determining Degree, Quality ofEngagement

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    New TV Shows: March 2006 Buzz Levels

    Among shows that debuted in the 05-06 Season

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    New TV Shows: Sentiment for March

    Figure 9: sentiment toward 12 new shows.

    Note: Sentiment presented as a % of all show messages in March 2005.

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    TV Show Example: Sentiment Over Time

    Strong initial buzz quickly gives way to negative attacks; series-long effort

    restores some positivity.

    43%

    7%13%

    10%

    23%

    16%

    22% 20%25% 27% 24%

    7%

    51%

    60% 66% 41% 52%

    54%51%

    30%32%

    33%

    7%

    21%

    18%17%

    19%

    19%

    14%18%

    25%

    25%25%

    12%

    9%

    8%1%

    9% 6%3% 7%

    8%6%

    6%31%

    12%

    1%6% 8% 7% 7%

    4%

    12% 10% 12%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Pre-La

    unch

    Episod

    e1

    Epis

    ode2

    Epis

    ode3

    Epis

    ode4

    Epis

    ode5

    Epis

    ode6

    Episod

    e7

    Epis

    ode8

    Epis

    ode9

    Episod

    e10

    Positive Negative Mixed Unsure No Opinion

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    CGM Measurement:

    Anticipating ResponseProvided Engagement

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 38Return to Home

    iPod Video Product Launch - Early Warning?

    Early Buzz Breaks Early June

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    iPod Video Product Launch - Did Web Site Help?

    Early Buzz Breaks Early June

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    Final Thoughts

    What Do You Think?

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    Final Thoughts On CGM & Engagement

    Caveat: discussion of CGM and Engagement is nascent, but a

    strong relationship appears

    CGM can offer new advertising accountability frameworks

    Beyond reach, frequency and impression models

    Perhaps proving prior models obsolete or artificial

    Engagement and CGM can be studied in a variety of constructs

    Any discussion of Engagement must also address

    Disengagement (negative GRPs)

    Engagement should foremost be about the brand and customer

    experience

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    2006 Nielsen BuzzMetrics, A VNU business affiliate 42Return to Home

    Nielsen BuzzMetrics Next Steps

    Further validation testing on discussed themes

    Continued Nielsen BuzzMetrics Unconference Series

    Ongoing Broad Industry Discussion

    (Upcoming Ad-Tech Discussionwelcome input)

    Nielsen BuzzMetrics CGM Summit 2006

    Breakouts on engagement client-only event

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    The truth

    - Hugh McLeod of Gapingvoid.com

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    Thanks...

    [email protected]

    [email protected]

    www.nielsenbuzzmetrics.com