DBS Lunch Workshop with House Party: Reality Advertising

DIGIDAY BRAND SUMMIT 2013

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Mike Hermus

Chief Product & Technology Officer

@mikehermus

@housepartyinc

Reality Advertising: How Brands can use Earned to create more effective Paid

DIGIDAY BRAND SUMMIT 2013

© 2013 House Party, Inc.

2@mikehermus @housepartyinc

Consumers are bombarded with brand messages, making it harder for digital ads to break through

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Facebook news feed ads

Some newer channels are showing promise in reaching consumers but…

Facebook news feed ads

0.58

Typical display ads

0.11

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Study after study confirms that earned is #1 in terms of consumer trustDegree of consumer trust in the following forms of advertising*

Text ads on mobile phonesDisplay ads on mobile devices

Online banner adsOnline video ads

Search engine results adsAds before movies

RadioNewspaper

Billboards/outdoor advertisingMagazines

TVBrand sponsorshipsEmails signed up for

Editorial content (e.g., newspaper article)Brand websites

Consumer opinions posted onlineRecommendations from people known

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%29%

33%33%

36%40%41%42%

46%47%47%47%47%

50%58%58%

70%92%

Text ads on mobile phonesDisplay ads on mobile devices

Online banner adsOnline video ads

Search engine results adsAds before movies

RadioNewspaper

Billboards/outdoor advertisingMagazines

TVBrand sponsorshipsEmails signed up for

Editorial content (e.g., newspaper article)Brand websites

Consumer opinions posted onlineRecommendations from people known

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%29%

33%33%

36%40%41%42%

46%47%47%47%47%

50%58%58%

70%92%

Source: The Nielsen Company (April 2012)

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The challenge for marketers

Creating earned with the scale and targeting of mass media

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What if you could…

Combine the scale & targeting of digital media with the power and effectiveness of earned content/consumer to consumer content?

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Introducing… Reality Advertising!

“Reality Advertising is an innovative solution that uses earned content as creative for paid media, producing highly targeted ads that stand out in the cluttered social and digital ad space.”

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What’s at the core of Reality Advertising? UGC!A user generated image of a positive product experience

is memorialized recommendation for all to see

Relevant

Resonant

Authentic

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Make that content the centerpiece of a digital ad campaign

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THREE QUESTIONS YOU’RE BOUND TO ASK

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1. HOW DOES IT RELATE TO CONTENT MARKETING?

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Typically, it’s the marketers creating the content

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In reality advertising, the consumer creates the content for you

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2. HOW DOES IT RELATE TO NATIVE ADVERTISING?

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Native advertising is all about the format

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Reality Advertising is about the content

Reality Ad—Native FormatReality Ad—Non-Native Format

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3. WHY IS IT CALLED REALITY ADVERTISING?

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Reality TV and Reality Ads are both rooted in real people having real experiences

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How Reality Advertising differs from Reality TV?

Authenticity

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Bringing Reality Advertising to life starts with real consumers sharing real stories

@mikehermus @housepartyinc22

1. Identify your advocates

Driving successful advocacy starts with finding the right people...

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2. Give them a great experience

—chantalmalfoy

The party was a success! I am in love with my new SodaStream. My Mom already bought one. My sister and my Aunt are planning on buying one. Everyone loved it! The kids thought the process was really neat with the

sounds and bubbles. The boys loved the sidewalk chalk, beachball, visors, and the water balloons provided in the kit! Even the adults got in on some of the fun. We played games, ate dinner, and enjoyed fresh drinks in so many

different flavors all day long!!

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3. Provide the tools to capture and share UGC

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4. Make sure you have permission

Pick the right platform

Mind your Ts & Cs

Opt-ins are your friends

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YOU HAVE THE CONTENT, NOW WHAT?

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Take that content and execute a digital ad campaign!

Identify brand objectives/goals

Curate the content

Pick your channel/platform

Develop ad units and copy

Set appropriate audience targeting

Optimize!

Identify brand objectives/goals

Curate the content

Pick your channel/platform

Develop ad units and copy

Set appropriate audience targeting

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Optimization in more detail

Current Technology is very powerful

But you need options to optimize against

User-generated content can provide lots of options

“Know, don’t guess”

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Reality Advertising: The Results

Click-Thru Rate Engagement Rate Post Likes Page Likes Photo Views

Standard Creative UGC

+66% +75%

+15% +18%

+190%

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Click-Thru Rate Engagement Rate Post Likes Page Likes Photo Views

Standard Creative UGC

Maximizing Impact: Photo Posts

+76%

+136%

+34% +23%

+313%

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What about the top performing ads?

Click-thru rate of 2.1%

Non-click engagement rate of 3.6%

Total post engagement of 5.7%

Approximately 90% better than standard creative

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For each $ spent on UGC vs. stock assets, brands received:

1.3 times as many post likes

1.2 times as many page likes

1.8 times as many clicks

4 times as many photo views

1.8 times as many conversions

33@mikehermus @housepartyinc

Key takeaways

‘Reality Advertising’ is all about the content—but it is user generated content captured from authentic experiences—the ability to create/find/capture this content is critical

Campaigns can be executed in any channel or format that provides a large enough viewable image. Native social formats are a natural fit, but by no means the only option

Optimization can really be leveraged when you have a lot of good quality UGC to choose from—get 100 images and let the data quickly tell you which resonates with your target audience

The results speak for themselves— “Authenticity Trumps Perfection”: significantly more clicks, more conversions, and more engagement per dollar spent

DIGIDAY BRAND SUMMIT 2013Thank You!

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Mike HermusChief Product & Technology Officer

@mikehermus

@housepartyinc

about.houseparty.com

© 2013 House Party, Inc.