White Paper - The 10 Rules of Engagement
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This document provides an overview of engagement advertising. It begins with definitions and explanations of engagement advertising, noting that it is about dialogue between brands and consumers online and offline. It then discusses the multi-platform nature of advertising today. The bulk of the document outlines 10 rules for effective engagement advertising, with each rule explained and accompanied by examples. The 10 rules are: be authentic, leverage technology, mind the gap, use the right kind of ads, experiment, generate great content, use a call to action, create brand advocates, embrace change, and have fun.
White Paper - The 10 Rules of Engagement
- 3. |3 What is Engagement Advertising? 03 Multi-Platform World 07 10 Rules: Table of Contents 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. Be Authentic Leverage Technology Mind the Gap Use the Right Kind of Ads Experiment! Generate Great Content Use a Call to Action Create Brand Advocates Embrace Change Have Fun! 11 12 18 22 24 30 34 38 42 46 50 Company Overview 52 Sources 57 www.sponsorpay.com
- 6. What is Engagement Advertising? Engagement happens when someone is interested in listening to you. This usually arises when what you tell them is catered towards fulfilling their own interests. In engagement advertising the consumer is both the focal point of and greatly shapes the communication. Brand awareness and image are developed based on communities and the content shared within them. Overall, engagement advertising is about a dialogue between the brand and the consumer, both online and offline, with the difficult task of finding the balance between what will interest them and achieving your business objectives This type of advertising comes from both sides. Consumers have started demanding interaction and relationships that are both relevant and valuable for them. Brands are beginning to realize its benefits and challenges, such as how to embrace the changing attitude of the consumer. This may require companies to change both their perspectives and previous practices. www.brandengage.com
- 7. |7 The following 10 Rules highlight what we found to be the most important considerations for engagement advertising: 01. Be Authentic 02. Leverage Technology 03. Mind the Gap 04. Use the Right Kind of Ads 05. Experiment! 06. Generate Great Content 07. Use a Call to Action 08. Create Brand Advocates 09. Embrace Change 10. Have Fun! www.sponsorpay.com
- 14. 10 Rules: Be Authentic 01 www.brandengage.com Be Authentic
- 15. | 15 Brands rely strongly on advertising to communicate with their audience about products and services. Consumers, however, are becoming increasingly circumspect about this messaging. Onethird of online consumers actually trust a stranger‘s opinion on a public forum or blog more than they do advertisements by brands. Research shows that confidence in paid TV ads has decreased by 24% since 2009. How can advertisers turn this trend around? Being authentic is an important first step. In order to create a healthy dialogue it is essential to clearly and honestly communicate brand values and make sure that advertising campaigns reflect and demonstrate them. This not only means inviting the audience to talk about the good aspects of your company but also being bold enough to accept the less positive and open it up for discussion. With the rapid growth of the Internet, it is indeed nearly impossible for companies to hide from consumers’ feedback. A better method is to be transparent. Embracing your assets and mistakes will help improve your image in the long run. www.sponsorpay.com
- 16. 10 Rules: Be Authentic www.brandengage.com
- 17. | 17 Best practice Dove recently struck success again with its “Real Beauty Sketches” ads, in line with the brand’s “real beauty” positioning. The campaign expresses perfectly the values Dove stands for: self-esteem and acceptance no matter the physical appearance. The ad concept is based on company research claiming only 4% of women consider themselves beautiful. The campaign achieved Dove’s key message. As of April 14, 2013, the three-minute version has been viewed more than 91 million times on YouTube. The video has over 3.4 million shares as well across Facebook, Twitter and various blogs. www.sponsorpay.com
- 18. 10 Rules: Be Authentic www.brandengage.com
- 19. | 19 A “fail” turning into positive JC Penney took a unilateral decision a year and a half ago to change its image in order to attract new, potentially younger consumers: new logo, new image, new look in stores, new promotions. All these changes were too much for the core customers, leading to a loss in 2012 of $985 Million. JC Penney is now trying to get its former customers back with a multimedia ad campaign admitting to have failed. They want to show that they have learned from their mistakes and will focus on listening to their customers. The ad campaign itself is getting a huge response. JC Penney’s Facebook page is receiving lots of traffic and the hash tag #jcpListens is a top trending topic on Twitter. www.sponsorpay.com
- 20. 10 Rules: Leverage Technology 02 www.brandengage.com Leverage Technology
- 21. | 21 New technology has brought innovative devices used for different purposes. To make calls and text, we reach for our smartphones. To browse the web, the tablet is the go-to device and to work on documents, we have our laptops. In 2013, it is predicted that smart mobile devices will grow by almost 20%. The touchpoints to reach target audiences have increased, but the unique features of each device have to be taken into account when devising an effective strategy. Furthermore being present on more than one platform has been proven to increase marketing effectiveness. In a study by Nielsen, nearly 75% of the people surveyed who saw an ad on several platforms remembered it while only half of them when exposed solely to TV. Finding and leveraging the most impactful channels for your brand will help you be more successful in multi-platform engagement. www.sponsorpay.com
- 22. 10 Rules: Leverage Technology www.brandengage.com
- 23. | 23 Multi-platform virality Coca-Cola wanted to generate virality around their Happiness Truck campaign during the Olympics. To achieve this, SponsorPay employed its BrandEngage® platform to create an engagement campaign around a video ad distributed exclusively in Facebook apps. The campaign was spread across multiple platforms and was able to achieve great success with hundreds of thousands of completed video views. The engaging nature of the content ensured a 63.7% share rate. www.sponsorpay.com
- 24. 10 Rules: Mind the Gap 03 www.brandengage.com Mind the Gap
- 25. | 25 There is apparently a disconnect between what consumers and marketers think is valuable. According to a study by Forbes and TURN, only 15% of consumers who share an ad feel connected to a brand while 49% of marketers measure this type of marketing as very influential. 24% of marketers feel that newsletters get a good response, however, less than 10% of consumers are actually interested in them. It is crucial to ensure you know your consumers. Making use of the data about consumer behavior and interactions has been –and should continue to be– an important focus for marketers: 68% said they will increase data-related marketing spending in 2013. Website analytics constitute around half of the data generated on customers while email and social media interaction are respectively 19% and 12%. www.sponsorpay.com
- 26. 10 Rules: Use the Right Kind of Ads 04 www.brandengage.com Use the Right Kind of Ads
- 27. | 27 Marketers are still struggling to crack the magic formula when it comes to engaging consumers on new platforms such as online and mobile. Display and search still draw the majority of advertising budgets even though they are not liked or highly ineffective. More than 60% of consumers do not like display or text ads on mobile devices and over 40% of mobile ad clicks are either by accident or fraud. Interruptive ads have the power to not only irk the consumer but also give them a negative impression of your brand – exactly the opposite of what you were looking to accomplish. Establishing a value-exchange is an effective method in which you can get your message across to the consumer without annoying them. www.sponsorpay.com
- 28. 10 Rules: Use the Right Kind of Ads www.brandengage.com
- 29. | 29 Generate awareness with value-exchange Nivea wanted to generate brand awareness for its product range, Pure Effect. The campaign was inserted in social games and apps with a strong female audience. The value-exchange model was particularly effective in generating engagement from consumers as they received premium content in exchange for interacting with advertising in their favorite environments. The result – 68% of consumers who watched the video clicked through to the Nivea website to get more information about products. www.sponsorpay.com
- 30. 10 Rules: Use the Right Kind of Ads www.brandengage.com
- 31. | 31 Create a unique user experience American Express struck gold with their American Express Unstaged campaign. The message the brand wanted to communicate to customers was about achieving their own memorable experiences. Through American Express Unstaged, fans could stream concerts from some of the biggest names in music through the lens of a well-known director to fans across the globe. A Coldplay concert from 2011 is still the largest artist event on YouTube. www.sponsorpay.com
- 33. | 33 On average, companies spend over six figures on advertising campaigns. With this sort of investment, brands certainly want to make sure they are communicating their messages in the most impactful way. In the past, marketers often diligently pursued one idea they hoped would work. Today, however, it is inefficient to spend too much time and resources developing an idea you are not sure will be successful. Thanks to social media, several channels are available to quickly and cost-effectively test whether or not a campaign is meeting with resonance in the market. www.sponsorpay.com
- 35. | 35 Test the social potential of your campaign Warner Brothers took advantage of the BrandEngage® platform to showcase the trailer for The Hobbit across different channels, including mobile and social. In the process, they were able to build strong social engagement – 65% of consumers who watched the video became fans of the movie on Facebook. www.sponsorpay.com
- 36. 10 Rules: Generate Great Content 06 www.brandengage.com Generate Great Content
- 37. | 37 Below are three basic criteria for creating content that will resonate well with consumers: Research shows that consumers are exposed to 3,000 marketing messages a day but are only able to take in 100. Further empirical evidence suggests that the attention span of most users lasts for about three minutes. How to make sure you are catching the consumer’s attention? Eye-catching: Draw a reaction from your audience whether that be through humorous, shocking (within reason) or thought-provoking content. It also means creating real-time content to be relevant to what consumers find interesting right now. The content of your message has to be valuable so as to create real “value-exchange”. Providing great content is the currency you give so consumers appreciate and reward your brand with awareness, purchase and loyalty. Clear: Can consumers easily understand what you’re trying to communicate? Using the right medium is important to express your ideas in an effective way whether that is through video, text, etc. Sometimes you can have a combination of both visuals and text to deliver your message. Above all, however, it is important to be mindful of who your audience is. Tailor your language and style to suit them. That way they will be more receptive. Accessible: Can the user find your content? Make sure you use appropriate keywords. Linking to other related content is also important. Your message does not have to go viral to be effective. Instead, it needs to be easily discovered by the target audience. www.sponsorpay.com
- 38. 10 Rules: Generate Great Content www.brandengage.com
- 39. | 39 The power of real-time content Each year advertisers spend millions to create memorable Super Bowl ads, but many have started to wonder whether that money could be better spent on digital advertising. In 2013, some brands did just that by creating engaging content on social media when presented with the right opportunity. During the Super Bowl blackout, Oreo tweeted the image on the left that created significant buzz – 16,028 people retweeted it. www.sponsorpay.com
- 40. 10 Rules: Use a Call to Action 07 www.brandengage.com Use a Call to Action
- 41. | 41 An exchange is an action followed by a reaction. You have taken the first step forward by creating content meant to be valuable for the consumer. Now it is time for them to react to the content. To help them do this, your content should have a call to action. This could be variety of things including a Like or share on Facebook, a comment/response (such as a poll) or a purchase. Here are some top tips to keep in mind to give your content a call to action: Provide an incentive: Customers are more likely to respond to your call to action especially when they feel they are receiving something of value in return. This can include a discount, gift card or prize. Focus on a small number of actions: No matter what the incentive may be, a customer is less likely to engage if they are confused by what they have to complete in the first place. Make the actions simple for your audience. Create a sense of urgency: Do not let your audience adopt the “do it later” mentality. To create a sense of urgency, use action words like “buy”, “call”, “click”, “order”. To reinforce this, suggest to your audience that they do not have much time to act. This will give them a boost to complete the action immediately instead of waiting, thinking the opportunity will still be there at a later time. Make the call to action easy to spot: Make the call to action stand out. There are plenty of options on how you can achieve this. Give it a special design, make it big or allow it to catch your audience’s attention with an alternative, eye-catching color. www.sponsorpay.com
- 42. 10 Rules: Use a Call to Action www.brandengage.com
- 43. | 43 A clear value-exchange deal Domino’s Pizza ran a campaign with SponsorPay in order to build overall brand presence while simultaneously increasing awareness of the “Box Busting Deal” campaign to drive online pizza purchases. The “Go” button on the campaign was both easy to spot and created a sense of urgency for the audience. Effective dayparting was employed to showcase the campaign only between the hours of 10 pm and 4 am. The result – a 36% clickthrough to Domino’s online pizza ordering site. www.sponsorpay.com
- 44. 10 Rules: Create Brand Advocates 08 www.brandengage.com Create Brand Advocates
- 45. | 45 Creating great content takes time, experimentation and creativity. It is not always easy, so why not have your biggest fans help out for free? They are your brand’s advocates, customers who have gone from liking your brand and engaging with it to actually being loyal and spreading the word about it. With a typical company receiving around 65% of its business from existing customers, loyal brand advocates are your most valuable clients. 89% of marketers consider investing in brand advocates particularly important for 2013. Make it easy for advocates to participate via the following methods: Positive recommendations Facebook posts, Tweets and comments Stories and testimonials Videos, photos and other multimedia Simultaneously, take advantage of the great content they produce by sharing it on your social media platforms or even publishing it. Give advocates an easy way to share their content with others as well. www.sponsorpay.com
- 46. 10 Rules: Create Brand Advocates www.brandengage.com
- 47. | 47 Local bloggers to spread the word Duane Reade, a US East Coast-based drugstore chain, has successfully used their brand advocates to form their VIP blogger team. The VIP blogger team comprises bloggers from the New York City area who generate content for Duane Reade via their own social platforms. Although they are not employees, they are treated as such. The bloggers receive incentives and are introduced to initiatives before the public. This strategy has helped Duane Reade fuel awareness and social activity around its content. The chain experienced a 28% increase in year-overyear sales and earned 5 times its investment on the initiative. www.sponsorpay.com
- 48. 10 Rules: Embrace Change 09 www.brandengage.com Embrace Change
- 49. | 49 More than ever, advertisers must be flexible and agile to navigate the dynamic, ever-changing multi-platform world of engagement advertising. Consumer preferences change at a rapid pace and many times in ways we do not anticipate. On the other hand, innovation has evolved to become cheaper and easier for companies to iterate. Predictions are difficult to rely on due to both the changing preferences in the consumer and disruptive tendencies of the marketplace. Therefore, marketers must be open to new methods and ideas and continue to be flexible by experimenting in their space. www.sponsorpay.com
- 50. 10 Rules: Embrace Change www.brandengage.com
- 51. | 51 Gamification as a new medium to reach relevant audiences SponsorPay developed a campaign for Axe that involved an interactive mini-game placed after an engaging video. It was very well-received with consumers spending more than three and a half minutes with the brand. www.sponsorpay.com
- 52. 10 Rules: Have Fun! 10 www.brandengage.com Have Fun!
- 53. | 53 Engagement advertising offers marketers a chance to be creative and try new ideas, tools and strategies. Have fun with it! The sky is the limit! www.sponsorpay.com
- 56. Company Overview About Us ALWAYSON OnMedia 100 Top Private Companies (2013) Given to top emerging companies creating new business opportunities in the world of media and advertising. Global leader in value-exchange advertising Media Momentum Rank #2 in Top 50 (2012) Founded in April 2009 Berlin (HQ), Paris, London, New York, San Francisco, Los Angeles, Istanbul, Shanghai, Seoul and Tokyo The awards acknowledge the fastest growing companies in the European tech community. White Bull Winner (2011) International team of 140+ from 30+ countries Investment from Team Europe, Hasso Plattner Ventures, Kite Ventures and Nokia Growth Partners The Bully Awards acknowledge excellence in innovation, leadership, growth and disruptive potential. Red Herring Winner - Europe 100 (2011) Red Herring honours the world’s most innovative companies. Previous winners include Google, Skype, and YouTube. www.brandengage.com
- 60. Sources Multi-Platform World comScore Report: 2013 Europe Digital Future in Focus - pages 16, 19 and 21 http:/ /www.inmobi.com/inmobiblog/2012/02/29/inmobi-releases-first-wave-of-mobile-media-consumption-q4-survey-%E2%80%93-global-results/ http:/ /mashable.com/2013/02/26/smartphone-users-giving-up-mobile-apps/ http:/ /www.eetimes.com/electronics-blogs/other/4410297/More-than-500-million-connected-devices-in-U-S--homes http:/ /www.newmediatrendwatch.com/markets-by-country/18-uk/154-mobile-devices http:/ /www.emarketer.com/Article/France-Mobile-Devices-Boost-Gadget-Count-Homes/1009753 http:/ /www.nielsen.com/us/en/newswire/2012/the-cross-platform-report-a-new-connected-community.html http:/ /www.comscore.com/fre/Insights/Press_Releases/2013/5/comScore_Reports_March_2013_U.S._Smartphone_Subscriber_Market_Share http:/ /marketingland.com/pew-56-percent-of-all-mobile-users-access-the-internet-27205 Rule 1: Be Authentic http:/ /www.forbes.com/sites/marketshare/2013/01/03/nearly-one-third-of-online-consumers-trust-a-stranger-over-a-brand/ http:/ /www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html http:/ /www.nytimes.com/2013/04/19/business/media/dove-ad-on-womens-self-image-creates-an-online-sensation.html?_r=1& http:/ /viralvideochart.unrulymedia.com/youtube/Dove_Real_Beauty_Sketches?id=XpaOjMXyJGk http:/ /www.businessinsider.com/jc-penney-q4-2012-earnings-2013-2 http:/ /www.forbes.com/sites/lauraheller/2013/05/02/j-c-penney-is-listening-and-getting-a-huge-response/ www.brandengage.com
- 61. | 61 Rule 2: Leverage Technology https:/ /www.idc.com/getdoc.jsp?containerId=prUS23814112 http:/ /www.nielsen.com/us/en/newswire/2011/nearly-75-of-consumers-remember-an-ad-when-viewed-across-media-platforms.html Rule 3: Mind the Gap White Paper Forbes Insights/Turn, The New Rules On Engagement, page 20 http:/ /blogs.pb.com/digital-insights/2012/11/21/brands-and-consumers-disconnect-over-social-media-marketing-infographic/ http:/ /www.infogroup.com/about/news/marketers-plan-spending-and-hiring-increases-in-2013-to-keep-up-with-big-data http:/ /www.emarketer.com/Article/Marketers-Use-Social-Media-Data-Drive-Campaigns/1009682 Rule 4: Use the Right Kind of Ads http:/ /www.fi.nielsen.com/site/documents/NielsenTrustinAdvertisingGlobalReportApril2012.pdf, http:/ /gigaom.com/2012/08/31/ report-40-percent-of-mobile-clicks-are-fraud-or-accidents/ www.sponsorpay.com
- 62. Sources Rule 5: Experiment! http:/ /news.cnet.com/8301-1023_3-57582408-93/tumblr-ceo-says-average-cost-of-ad-campaign-tops-six-figures/ https:/ /twitter.com/Oreo/status/298246571718483968 http:/ /www.emarketer.com/Article/Real-Time-Content-Creators-Need-Real-Time-Content-Consumers/1009862 Rule 6: Generate Great Content http:/ /blux.co/approach/companies-need-brand-advocates http:/ /www.informationweek.com/report-online-shoppers-have-a-4-second-a/193502066 Rule 8: Create Brand Advocates http:/ /blux.co/approach/companies-need-brand-advocates http:/ /blog.zuberance.com/blog/news-flash-marketers-interest-in-brand-advocacy-peaking/ http:/ /streetfightmag.com/2013/03/04/case-study-duane-reade-uses-brand-advocates-to-promote-neighborhood-stores/ www.brandengage.com
- 64. BERLIN | SAN FRANCISCO | NEW YORK | LOS ANGELES | LONDON | PARIS | ISTANBUL | SHANGHAI | SEOUL | TOKYO www.sponsorpay.com | www.brandengage.com | press@sponsorpay.com