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Understanding and Creating
Media Engagement
Dr. Edward C Malthouse
Sills Professor of Integrated Marketing Communication
Professor Industrial Engineering, Management Science
Medill School of Journalism, Media, IMC
Customer engagement
2M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
What is engagement?
3M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
What is engagement?
o Marc (1966): How disappointed a person would be “should
the magazine stop publication.”
o Davina Kent, TiVo: “Engagement is the average time spent in
a branded experience”
o Mark McLaughlin, Yahoo!: “Operationally, Yahoo! defines
Engagement on two dimensions: Loyalty (retention of unique
users…) and usage [time, page views, etc.]”
o Ad Week panel: a result of delivering messages that are
meaningful, resonate with consumers, and make them
passionate about and involved with the brand (Smith 2014)
o ARF: a mental activation process. Activation is where
engagement begins and, depending on the meaning made by
the consumer, develops via the process of co-creation
(Plummer, Zaltman, & Mast 2006)
4M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Psychological state
o Hollebeek (2011a; p. 787): “the level of customer’s motivational,
brand-related and context-dependent state of mind”
o Bowden (2009): a psychological process driving loyalty
o Higgins and Scholer (2009, p. 102) “a state of being involved,
occupied, fully absorbed, or engrossed in something”
o Calder/Malthouse article: collective experience—thoughts and
beliefs about how a brand contributes to a personal goal
o Sprott, Czellar, and Spangenberg (2009): an individual trait
reflecting one’s propensity to include brands as part of their self-
concept
5M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Behavior
o Van Doorn et al. (2010, p. 254): a customer’s behavioral
manifestations that have a brand or firm focus, beyond
purchase, resulting from motivational drivers”
o Verhoef, Reinartz, and Krafft (2010, p. 248): “a behavioral
manifestation toward the brand or firm that goes beyond
transactions”
o Kumar et al. (2010, p. 297): “active interactions of a customer
with a firm, with prospects and with other customers, whether
they are transactional or nontransactional in nature”
o Bijmolt et al. (2010): three key behavioral manifestations of
engagement are WOM, co-creation, and complaining
behavior
6M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Both psychological state and
behavior
o Vivek et al. (2010, p. 133): “may be manifested cognitively,
affectively, behaviorally, or socially”
o Hollebeek et al. (2014; p. 154): “a consumer's positively valenced
brand-related cognitive, emotional and behavioral activity during or
related to focal consumer/brand interactions”
o Brodie et al. (2011): “a psychological state that occurs by virtue of
interactive, co-creative customer experiences with a focal
agent/object (e.g., a brand) in focal service relationships. It … exists
as a dynamic, iterative process within service relationships that
cocreate value. It plays a central role in a nomological network
governing service relationships in which other relationship concepts
(e.g., involvement, loyalty) are antecedents and/or consequences in
iterative CE processes. It is a multidimensional concept subject to a
context- and/or stakeholder-specific expression of relevant cognitive,
emotional and/or behavioral dimensions”.
7M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
The Engagement Ecosystem
8M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Brand Actions
Other Actors
Brand Dialog
Behaviors
Shopping
Behaviors
Brand
Consumption
Customer Brand
Perceptions
Satisfaction,
Loyalty,
Lifetime Value,
Consumer value
The Engagement Ecosystem
9M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Brand Actions
Brand strategy,
product, price,
promotion,
distribution
Other Actors
Other consumers,
the media,
regulators, etc.
Brand Dialog
Behaviors
Social media,
Twitter, FB,
Reviews, YouTube
Shopping
Behaviors
Search, Shop logs,
purchase records
Brand
Consumption
Time, Frequency,
Completion
Customer Brand
Perceptions
Make me smarter
Social, Identity,
Civic, Hedonic
Satisfaction,
Loyalty,
Lifetime Value,
Consumer value
The Engagement Ecosystem
10M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Brand Actions
Other Actors
Brand Dialog
Behaviors
Shopping
Behaviors
Brand
Consumption
Customer Brand
Perceptions:
“Experiences”
Satisfaction,
Loyalty,
Lifetime Value,
Consumer value
How do media products create value?
o Uses and gratifications theory (back to 1950s):
information, identity, social, entertainment/hedonic
o Media experiences – the thoughts and feelings about
how an object contributes to a personal goal
(Calder/Malthouse articles and chapters)
o Also see Larivière et al. (2013)
“Value Fusion” paper
The Engagement Ecosystem
12M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
Brand Actions
Other Actors
Brand Dialog
Behaviors
Shopping
Behaviors
Brand
Consumption
Customer Brand
Experience
Satisfaction,
Loyalty,
Lifetime Value,
Consumer value
The second, third and
sometimes fourth
screen is becoming a
fundamental extension
of the viewing
experience.
Megan Clarken
EVP, Nielsen Global Watch Product Leadership
MEDILL IMC | SPIEGEL RESEARCH CENTER
The Rate of Change Away From
Live TV is Accelerating
Live TV
-7%
PC
+18%
Smartphone
+110%
Tablet
+158%
Q1 2014 - Q1 2016
MEDILL IMC | SPIEGEL RESEARCH CENTER
TV and Social Media Interactions are
creating a Dynamic Engagement
Ecosystem
39%
TV viewers keep up with
shows so that they can
join social media
conversations
33%
TV viewers are more
likely to watch
programming if it has a
social media tie
MEDILL IMC | SPIEGEL RESEARCH CENTER
The Engagement Ecosystem
Brand Actions
Customer
Engagement
Behaviors
TV
Consumption
MEDILL IMC | SPIEGEL RESEARCH CENTER
The Engagement Ecosystem
Brand Actions
Customer
Engagement
Behaviors
TV
Consumption
Twitter volume
Twitter sentiment
Twitter richness
#Live viewers,
#Recorded
viewers
Tune- in Advertising
Tweeting
MEDILL IMC | SPIEGEL RESEARCH CENTER
Simultaneous System of Equations for
Estimation
o Where:
Y1: The logarithm of the size of the live audience - log(NLive)
Y2: The logarithm of the size of the recorded audience - log(NRec)
Y3: The logarithm of the number of tweets from viewers - log(NTweetViewers)
Y4: The logarithm of the number of tweets from the TV Show - log(NTweetShow)
Y5: The logarithm of the advertising effort of the TV Show - log(Advertising)
X1: Number of tweets with positive sentiment - Positive tweets
X2: Number of tweets with negative sentiment - Negative tweets
X3: Tweet richness score - Richness
t: a weekly trend variable starting from the first week the show was aired
1 11 12 , 13 , 14 , 15 , 16 , 17 , 18
2 21 22 , 23 , 24 , 25 , 26 , 27 , 2
1 2 3 4 5 1 2 3 1
2 1 3 4 5 1 2 3
log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X
log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X
st st s t s t s t s t s t s t s
st st s t s t s t s t s t s t
t uα β β β β β β β β
α β β β β β β β β
= + + + + + + + + +
=+ + + + + + + + 8
3 31 32 , 33 , 34 , 35 , 36 , 37 , 38
4 41 42 , 43 , 44 , 45 , 46 , 47
2
3 1 2 3 5 1 2 3 3
4 1 2 3 5 1 2 3
log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X
log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X
s
st st s t s t s t s t s t s t s
st st s t s t s t s t s t
t u
t uα β β β β β β β β
α β β β β β β β
+
= + + + + + + + + +
=+ + + + + + + , 48
5 51 , 1 52 , 1 53 , 1 54 , 1 55 , 1 56 , 1 57 , 1 58
4
5 1 2 3 4 1 2 3 5log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X
s t s
st s t s t s t s t s t s t s t s
t u
t u
β
α β β β β β β β β− − − − − − −
+ +
=+ + + + + + + + +
MEDILL IMC | SPIEGEL RESEARCH CENTER
Data
• Set-top box data from a cable company with over 1 million subscribers
• Focused on a TV show as the unit of analysis
• Extracted TV viewing data for 31 drama and entertainment shows
launched in 2015 from a sample of 191,222 devices
• Of the 31 shows, 10 were canceled and 21 were renewed
• Aggregated total number of live and recorded viewers each week t for
each TV show s
• Merged weekly advertising data from Kantar for every TV show
• Aggregated Twitter measures for every show each week – volume,
sentiment and richness for tweets by account (TV show) and viewers
MEDILL IMC | SPIEGEL RESEARCH CENTER
Descriptive Statistics for S x T=306
observations
Variable Mean SD
Nlive 3,335.60 3240.72
Nrec 2,861.13 3,079.91
Advertising 29.80 149.50
NTweetShow 63.14 65.88
NTweetViewers 1,139.20 1,639.29
Positive Tweets 10.04 1.82
Negative Tweets 1.26 0.60
Tweet Richness 1,437.56 1,766.06
MEDILL IMC | SPIEGEL RESEARCH CENTER
Results
MEDILL IMC | SPIEGEL RESEARCH CENTER
Size of time-shifted
audience increases
with size of live
audience!
Time-Shifted
Viewing
Live
Viewing
MEDILL IMC | SPIEGEL RESEARCH CENTER
Tune-In Advertising
from a TV show
makes people
record it and watch
later!
Live Viewing
Time-Shifted
Viewing
MEDILL IMC | SPIEGEL RESEARCH CENTER
Tweets from a TV
show make
people want to
watch it live
Time-Shifted
Viewing
Live Viewing
MEDILL IMC | SPIEGEL RESEARCH CENTER
Time-Shifted
ViewingLive Viewing
Negative sentiment on social
media makes people want to
watch shows live
MEDILL IMC | SPIEGEL RESEARCH CENTER
Implications
• Motivations for time-shifted viewing could be
different from live-viewing
• Negative sentiments have a much stronger effect
than do positive sentiments
• Advertising does little to influence desired
outcomes such as live-viewing or engagement on
Twitter
• Tweeting by TV Shows can have a detrimental
effect on time-shifted viewing
• Audience size does not seem to increase with time
– TV shows have to acquire a critical mass of
viewers from week 1
MEDILL IMC | SPIEGEL RESEARCH CENTER
Opportunities for Future Research &
Collaboration
Content providers
Predict success or
failure of TV shows
Leverage social
media to drive
engagement
The Effect of POEM from
a IMC perspective
Advertisers
Viewer-based
segmentation and
targeting
• Market Basket Analysis
• Native Advertising
Tracking behavior across
channels (media &
retail)
Programmatic Advertising
Content
Distributors
Redefining value –
CLV of different
segments
Omnichannel strategy
Second chance for
unsuccessful shows
Skinny bundles!
Viewers
Cord loyalists, Cord cutters,
cord shavers, cord nevers
Media consumption patterns
over time
• Live/recorded
• Multitasking
• Genres
• Social viewing
Response to interactive ads,
marketing communication
If content is king, then distribution is queen!
MEDILL IMC | SPIEGEL RESEARCH CENTER
THANK YOU!
ecm@northwestern.edu
28M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R

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Understanding and creating media engagement

  • 1. Understanding and Creating Media Engagement Dr. Edward C Malthouse Sills Professor of Integrated Marketing Communication Professor Industrial Engineering, Management Science Medill School of Journalism, Media, IMC
  • 2. Customer engagement 2M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
  • 3. What is engagement? 3M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
  • 4. What is engagement? o Marc (1966): How disappointed a person would be “should the magazine stop publication.” o Davina Kent, TiVo: “Engagement is the average time spent in a branded experience” o Mark McLaughlin, Yahoo!: “Operationally, Yahoo! defines Engagement on two dimensions: Loyalty (retention of unique users…) and usage [time, page views, etc.]” o Ad Week panel: a result of delivering messages that are meaningful, resonate with consumers, and make them passionate about and involved with the brand (Smith 2014) o ARF: a mental activation process. Activation is where engagement begins and, depending on the meaning made by the consumer, develops via the process of co-creation (Plummer, Zaltman, & Mast 2006) 4M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
  • 5. Psychological state o Hollebeek (2011a; p. 787): “the level of customer’s motivational, brand-related and context-dependent state of mind” o Bowden (2009): a psychological process driving loyalty o Higgins and Scholer (2009, p. 102) “a state of being involved, occupied, fully absorbed, or engrossed in something” o Calder/Malthouse article: collective experience—thoughts and beliefs about how a brand contributes to a personal goal o Sprott, Czellar, and Spangenberg (2009): an individual trait reflecting one’s propensity to include brands as part of their self- concept 5M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
  • 6. Behavior o Van Doorn et al. (2010, p. 254): a customer’s behavioral manifestations that have a brand or firm focus, beyond purchase, resulting from motivational drivers” o Verhoef, Reinartz, and Krafft (2010, p. 248): “a behavioral manifestation toward the brand or firm that goes beyond transactions” o Kumar et al. (2010, p. 297): “active interactions of a customer with a firm, with prospects and with other customers, whether they are transactional or nontransactional in nature” o Bijmolt et al. (2010): three key behavioral manifestations of engagement are WOM, co-creation, and complaining behavior 6M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
  • 7. Both psychological state and behavior o Vivek et al. (2010, p. 133): “may be manifested cognitively, affectively, behaviorally, or socially” o Hollebeek et al. (2014; p. 154): “a consumer's positively valenced brand-related cognitive, emotional and behavioral activity during or related to focal consumer/brand interactions” o Brodie et al. (2011): “a psychological state that occurs by virtue of interactive, co-creative customer experiences with a focal agent/object (e.g., a brand) in focal service relationships. It … exists as a dynamic, iterative process within service relationships that cocreate value. It plays a central role in a nomological network governing service relationships in which other relationship concepts (e.g., involvement, loyalty) are antecedents and/or consequences in iterative CE processes. It is a multidimensional concept subject to a context- and/or stakeholder-specific expression of relevant cognitive, emotional and/or behavioral dimensions”. 7M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R
  • 8. The Engagement Ecosystem 8M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R Brand Actions Other Actors Brand Dialog Behaviors Shopping Behaviors Brand Consumption Customer Brand Perceptions Satisfaction, Loyalty, Lifetime Value, Consumer value
  • 9. The Engagement Ecosystem 9M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R Brand Actions Brand strategy, product, price, promotion, distribution Other Actors Other consumers, the media, regulators, etc. Brand Dialog Behaviors Social media, Twitter, FB, Reviews, YouTube Shopping Behaviors Search, Shop logs, purchase records Brand Consumption Time, Frequency, Completion Customer Brand Perceptions Make me smarter Social, Identity, Civic, Hedonic Satisfaction, Loyalty, Lifetime Value, Consumer value
  • 10. The Engagement Ecosystem 10M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R Brand Actions Other Actors Brand Dialog Behaviors Shopping Behaviors Brand Consumption Customer Brand Perceptions: “Experiences” Satisfaction, Loyalty, Lifetime Value, Consumer value
  • 11. How do media products create value? o Uses and gratifications theory (back to 1950s): information, identity, social, entertainment/hedonic o Media experiences – the thoughts and feelings about how an object contributes to a personal goal (Calder/Malthouse articles and chapters) o Also see Larivière et al. (2013) “Value Fusion” paper
  • 12. The Engagement Ecosystem 12M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R Brand Actions Other Actors Brand Dialog Behaviors Shopping Behaviors Brand Consumption Customer Brand Experience Satisfaction, Loyalty, Lifetime Value, Consumer value
  • 13. The second, third and sometimes fourth screen is becoming a fundamental extension of the viewing experience. Megan Clarken EVP, Nielsen Global Watch Product Leadership MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 14. The Rate of Change Away From Live TV is Accelerating Live TV -7% PC +18% Smartphone +110% Tablet +158% Q1 2014 - Q1 2016 MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 15. TV and Social Media Interactions are creating a Dynamic Engagement Ecosystem 39% TV viewers keep up with shows so that they can join social media conversations 33% TV viewers are more likely to watch programming if it has a social media tie MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 16. The Engagement Ecosystem Brand Actions Customer Engagement Behaviors TV Consumption MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 17. The Engagement Ecosystem Brand Actions Customer Engagement Behaviors TV Consumption Twitter volume Twitter sentiment Twitter richness #Live viewers, #Recorded viewers Tune- in Advertising Tweeting MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 18. Simultaneous System of Equations for Estimation o Where: Y1: The logarithm of the size of the live audience - log(NLive) Y2: The logarithm of the size of the recorded audience - log(NRec) Y3: The logarithm of the number of tweets from viewers - log(NTweetViewers) Y4: The logarithm of the number of tweets from the TV Show - log(NTweetShow) Y5: The logarithm of the advertising effort of the TV Show - log(Advertising) X1: Number of tweets with positive sentiment - Positive tweets X2: Number of tweets with negative sentiment - Negative tweets X3: Tweet richness score - Richness t: a weekly trend variable starting from the first week the show was aired 1 11 12 , 13 , 14 , 15 , 16 , 17 , 18 2 21 22 , 23 , 24 , 25 , 26 , 27 , 2 1 2 3 4 5 1 2 3 1 2 1 3 4 5 1 2 3 log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X st st s t s t s t s t s t s t s st st s t s t s t s t s t s t t uα β β β β β β β β α β β β β β β β β = + + + + + + + + + =+ + + + + + + + 8 3 31 32 , 33 , 34 , 35 , 36 , 37 , 38 4 41 42 , 43 , 44 , 45 , 46 , 47 2 3 1 2 3 5 1 2 3 3 4 1 2 3 5 1 2 3 log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X s st st s t s t s t s t s t s t s st st s t s t s t s t s t t u t uα β β β β β β β β α β β β β β β β + = + + + + + + + + + =+ + + + + + + , 48 5 51 , 1 52 , 1 53 , 1 54 , 1 55 , 1 56 , 1 57 , 1 58 4 5 1 2 3 4 1 2 3 5log(Y ) log(Y ) log(Y ) log(Y ) log(Y ) X X X s t s st s t s t s t s t s t s t s t s t u t u β α β β β β β β β β− − − − − − − + + =+ + + + + + + + + MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 19. Data • Set-top box data from a cable company with over 1 million subscribers • Focused on a TV show as the unit of analysis • Extracted TV viewing data for 31 drama and entertainment shows launched in 2015 from a sample of 191,222 devices • Of the 31 shows, 10 were canceled and 21 were renewed • Aggregated total number of live and recorded viewers each week t for each TV show s • Merged weekly advertising data from Kantar for every TV show • Aggregated Twitter measures for every show each week – volume, sentiment and richness for tweets by account (TV show) and viewers MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 20. Descriptive Statistics for S x T=306 observations Variable Mean SD Nlive 3,335.60 3240.72 Nrec 2,861.13 3,079.91 Advertising 29.80 149.50 NTweetShow 63.14 65.88 NTweetViewers 1,139.20 1,639.29 Positive Tweets 10.04 1.82 Negative Tweets 1.26 0.60 Tweet Richness 1,437.56 1,766.06 MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 21. Results MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 22. Size of time-shifted audience increases with size of live audience! Time-Shifted Viewing Live Viewing MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 23. Tune-In Advertising from a TV show makes people record it and watch later! Live Viewing Time-Shifted Viewing MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 24. Tweets from a TV show make people want to watch it live Time-Shifted Viewing Live Viewing MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 25. Time-Shifted ViewingLive Viewing Negative sentiment on social media makes people want to watch shows live MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 26. Implications • Motivations for time-shifted viewing could be different from live-viewing • Negative sentiments have a much stronger effect than do positive sentiments • Advertising does little to influence desired outcomes such as live-viewing or engagement on Twitter • Tweeting by TV Shows can have a detrimental effect on time-shifted viewing • Audience size does not seem to increase with time – TV shows have to acquire a critical mass of viewers from week 1 MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 27. Opportunities for Future Research & Collaboration Content providers Predict success or failure of TV shows Leverage social media to drive engagement The Effect of POEM from a IMC perspective Advertisers Viewer-based segmentation and targeting • Market Basket Analysis • Native Advertising Tracking behavior across channels (media & retail) Programmatic Advertising Content Distributors Redefining value – CLV of different segments Omnichannel strategy Second chance for unsuccessful shows Skinny bundles! Viewers Cord loyalists, Cord cutters, cord shavers, cord nevers Media consumption patterns over time • Live/recorded • Multitasking • Genres • Social viewing Response to interactive ads, marketing communication If content is king, then distribution is queen! MEDILL IMC | SPIEGEL RESEARCH CENTER
  • 28. THANK YOU! ecm@northwestern.edu 28M E D I L L I M C | S P I E G E L R E S E A R C H C E N T E R