1. FEED:
The 2009
Razorfish Digital
Brand Experience
Report
Garrick Schmitt, Group Vice President, Experience Planning
Email: garrick.schmitt@razorfish.com
Twitter: @gschmitt

2. Conventional Wisdom Says
Advertising Is Failing...
2

3. nies lie in ads
76% of pe ople think compa ey did last year
77% trust comp anies less than th
companies will d o what is right
8% o f people believe the programs
3 ads as much as
15% of people enjoy the
Page 3 © 2009 Razorfish. All rights reserved.
2008 Vizu Answers, 2009 Yankelovich, 2009 Edelman Trust Barometer, 2009 Edelman Trust Barometer, TGI, HT Spike Jones, Brains On Fire.

4. Worse?
83% Of Mad Men’s Time-Shifted
Audience Fast Forwards Through
The Commercials
TIVO, September 25th, 2009

5. But It’s Not That Advertising Is
Failing…It’s That Experiences
Matter More Than Ever
Before.
5

6. HELLO
6

7. How Do Consumers Engage
With Brands In An
Increasingly Digital World?

8. THE DETAILS
8

9. Meet The “Connected Consumer”
WHAT IS YOUR AGE? In August 2009 Razorfish surveyed
1,000 U.S. “connected consumers”*:
• Broadband access
• Spent $150 online in the past six
months (travel, Netflix, tickets,
Amazon, etc.)
WHICH OF THE FOLLOWING BEST DESCRIBES YOUR COMBINED HOUSEHOLD • Visited a community site
INCOME?
(MySpace, YouTube, Facebook,
Yelp, etc.)
• Consumed or created some form
of digital media such as photos,
videos, music or news
* This equates roughly to the U.S. broadband population which is about 200m based on the Pew Internet and American Life Project.
9

10. READ THIS

11. Yes, You Can Build A Brand Online. You
Have No Choice
HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION Marketers have never thought of
(EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS
AND SERVICES IT OFFERS? digital as a wonderful place to build a
brand, but they should:
• 65% of consumers have had a
digital experience change their
opinion about a brand
• 97% of them report that
HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A
experience influencing whether or
PRODUCT OR SERVICE FROM THE BRAND? not they purchased a product or
service from that brand
11

12. Actions Speak Louder Than Advertising
PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING: Branded experience are the new
advertising. And consumers are
increasingly hungry for them,
sometimes ravenously so:
• 97% have searched for a brand
online
• 77% have watched a
commercial on YouTube
• 69% have read a corporate blog
• 65% have played a branded,
browser-based game.
• 73% have posted a product or
brand review on a site like
Amazon, Facebook or Twitter
12

13. Brand Culture Or Fan Culture?
HAVE YOU EVER “FRIENDED” A BRAND ON FACEBOOK OR MYSPACE? Conventional wisdom holds that
consumers don’t want brands
encroaching on their social lives – but
that’s just not true:
• 76% of consumers welcomed
brand advertising on social
networks (FEED, 2008)
HAVE YOU EVER FOLLOWED A BRAND ON TWITTER? • 40% of consumers “friended” a
brand on Facebook and/or
MySpace
• 26% of consumers have “followed”
a brand on Twitter
13

14. The Outlet Malls Of Tomorrow?
Facebook, MySpace & Twitter
Marketers shouldn’t assume that consumers are as passionate about their brands
as they are: Consumers don’t want a conversation with brands – they want deals.
WHAT IS THE PRIMARY REASON YOU FOLLOW A BRAND ON TWITTER?
• 44% of consumers who follow a
brand on Twitter do so for deals
• 37% of consumers who “friended” a
brand on Facebook and/or MySpace
do so for deals
14

15. Bottom Line: Digital Brand Experiences
Create Customers
Digital is not simply an “awareness” or CRM play, it’s a customer-creation play.
The overwhelming majority of consumers who engage with a brand online move
from passive “receivers” to advocates almost instantly :
WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR • 97% report increased brand
SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING:
awareness
• 98% show increased consideration
• 97% will more likely purchase a
product
• 96% may recommend the
brand to their friends
15

16. DIGITAL
PRIMACY
16

17. Consumers Turning First, Foremost To
Digital
PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING: According to Forrester consumers
now spend nearly as much time online
as they do watching TV*. We found
that their technical fluency is far
greater than most believe:
• 57% of consumers actively
customize their homepages
• 84% share links or bookmarks
• 55% subscribe to RSS feeds
• 33% get their news from
Facebook
• 20% get their news from Twitter
*Forrester 2009 North American Technographics Survey
17

18. Mobile Internet Service Use Skyrocketing
Mobile Internet services are being consumed broadly. Majority of consumers own
a smartphone and use it actively.
WHAT TYPE OF SMARTPHONE DO YOU HAVE? • 57% access the Internet from their
phone
• 50% have downloaded an app for
their phone
• 30% have interacted with an ad
banner on their phone
18

19. Connected Consumers Are The New
Mainstream
THE TECHNOLOGY ADOPTION CURVE
19

20. BRAND
CULTURE
20

21. Are Consumers Really In Control?
PLEASE RATE THE FREQUENCY OF WHICH YOU DO THE FOLLOWING: Conventional wisdom says that every
generation of consumer grows smarter,
shrewder and more immune to marketing.
But that’s not true – consumers are actively
choosing to engage with brands,
everywhere.
• 40% have “friended” a brand on
Facebook and/or MySpace
• 26% have “followed” a brand on Twitter
• 77% have watch an advert on YouTube
• 69% have read a corporate blog post
• 73% have posted a review of a brand
on a site like Amazon or Yelp
• 52% have blogged about brand’s
product or service
21

22. Facebook And Twitter Creating Fan
Culture For Brands
WHEN YOU “FRIEND” A BRAND ON FACEBOOK OR MYSPACE, DOES IT After deals, the main reason
GENERALLY DO THE FOLLOWING?
consumers “friend” a brand? Because
they *really* are a fan (or a customer,
at least). Social media platforms are
proving to be customer service
platforms.
• 33% friend a brand on Facebook/
MySpace because they are a
WHEN YOU FOLLOW A BRAND ON TWITTER, DOES IT GENERALLY DO THE
customer
FOLLOWING?
• 24% follow a brand on Twitter
because they are a current
customer
• 23% follow a brand on Twitter for
“interesting or engaging” content,
which shows promise for a new
type of relationship
22

23. Fans And The Future Of The Marketing
Funnel
HAVE YOU EVER PARTICIPATED IN A BRAND-SPONSORED CONTEST OR Brand culture and fan culture are
SWEEPSTAKES?
dramatically reshaping the traditional
funnel as consumers leap from
experience to advocacy (or the
inverse) almost instantly.
• 70% have participated in a brand-
WHEN YOU HAVE PARTICIPATED IN A BRAND-SPONSORED CONTEST OR
sponsored contest
SWEEPSTAKES, DOES IT GENERALLY DO THE FOLLOWING?
• 24% have produced content to
participate in a contest
• 26% have attended a brand
sponsored event, such as Nike’s
Human Race
• 24% have downloaded a branded
application for their mobile phone
23

24. Experiences Not Only Build Brands,
They Make Or Break Them
Amazon, Google, Facebook, Apple
and Nike are all experiential brands
that know consumer preference isn’t
formed in reaction to a message, but
to a series of experiences over time.
There’s good reason. Of consumers
who interact:
• 97% report increased brand
awareness
• 98% show increased consideration
• 97% will more likely purchase a
product
• 96% may recommend the brand to
their friends
24

25. THE
BOTTOM
LINE
25

26. Getting To The Bottom Of Brand
Engagement
Everyone is chasing after a metric to
define brand engagement. Millward
Brown says “digital consumers” have
15% stronger relationships with
brands. The Altimeter Group attempts
to correlate social media activity to
financial performance, citing Dell,
Starbucks and eBay as leaders.
We at Razorfish took a different tack:
we simply wanted to know if there was
any direct correlation between a
consumer’s digital interaction with a
brand and their likelihood to purchase
a specific product or service.
26

27. Digital Experience Create Customers
HAS AN EXPERIENCE YOU HAVE HAD ONLINE EVER CHANGED YOUR OPINION
(EITHER POSITIVELY OR NEGATIVELY) ABOUT A BRAND OR THE PRODUCTS
The answer was a resounding “yes”.
AND SERVICES IT OFFERS
Experiences have a much greater
influence over brand affinity and
consumer purchasing than even we
anticipated:
HAS THAT EXPERIENCE INFLUENCED WHETHER OR NOT YOU PURCHASED A
• 65% of consumers have had a
PRODUCT OR SERVICE FROM THE BRAND?
digital experience change their
opinion about a brand.
• 97% of those report that
experience influencing whether or
not they purchased a product or
HAVE YOU EVER MADE YOUR FIRST PURCHASE FROM A BRAND BECAUSE OF
A DIGITAL EXPERIENCE (E.G., A WEB SITE, MICROSITE, MOBILE COUPON, service from that brand.
EMAIL)?
• 64% of consumer report making a
first purchase from a brand
because of digital experience (e.g.
website, banner, etc.)
27

28. Five Brands That Are
Excelling In An Experience-
Driven World…

29. 1. UNIQLO: Japanese Retailer Surprises
And Delights Audiences With Every
Interaction
29

30. 2. Red Bull: Pioneered Experiential
Marketing With Subversive Events And
Sponsorships
30

31. 3. Barbie: Reinvented An American Icon
For The Pop Sugar Set And Broke Sales
Records
31

32. 4. Nike: Human Race. Chalkbot. Nike Is
Setting A New Standard For Experiential
Marketing
32

33. 4. Virgin America: Brand Built By
Breakthrough Experiences – And The
Marketing Of Them
33

34. 5. Microsoft’s Bing: Accomplishing The
Impossible By Putting Experience First And
In Every Ad
34
34

35. Thank You
Garrick Schmitt, Group Vice President, Experience Planning
Email: garrick.schmitt@razorfish.com
Twitter: @gschmitt