Viral is Dead: Keynote at Digital Day Toronto

Balancing Proven & EmergingHow to Manage the Balance Between

“the Basics” and Emerging Digital Initiatives

CMA Digital Day, November 11, 2009Kevin “Nalts” Nalty,

YouTube Personality and Career Marketerwww.NaltsConsulting.com

Who Is He?

YouTube “Star”!

110 million views!

140K subscribers!

810+ videos!

One of most-watched YouTube “comedians”!

More than 200,000 people watch daily !

Consultant!

Online full-time marketer with deep experience in social media & online video!

Helps leading brands engage in online-video!

Marketer!

Merck Consumer Product Director!

Johnson & Johnson!

KPMG Consulting!

Qwest Interactive!

About Last Night

About Last Night

About Last Night

About Last Night

No Perfect “Media Mix”

No Perfect “Media Mix”

Key Drivers

No Perfect “Media Mix”

Key Drivers• B2B or B2C

No Perfect “Media Mix”

Key Drivers• B2B or B2C

• Awareness vs. direct response

No Perfect “Media Mix”

Key Drivers• B2B or B2C

• Awareness vs. direct response

• Budget realities

No Perfect “Media Mix”

Key Drivers• B2B or B2C

• Awareness vs. direct response

• Budget realities

• Company’s risk profile

No Perfect “Media Mix”

Key Drivers• B2B or B2C

• Awareness vs. direct response

• Budget realities

• Company’s risk profile

• What the “big guy/gal” watches or reads

Canadian Media Trends

Source: eMarketer

Is Traditional Marketing Dead?

Is Traditional Marketing Dead?

• Yes and no... still need reach and scale of many mediums

Is Traditional Marketing Dead?

• Yes and no... still need reach and scale of many mediums

• Each media generation eventually loses impact

Is Traditional Marketing Dead?

• Yes and no... still need reach and scale of many mediums

• Each media generation eventually loses impact

• Constant new channels are available to those with eyes open wide...

Is Traditional Marketing Dead?

• Yes and no... still need reach and scale of many mediums

• Each media generation eventually loses impact

• Constant new channels are available to those with eyes open wide...

Is Traditional Marketing Dead?

• Yes and no... still need reach and scale of many mediums

• Each media generation eventually loses impact

• Constant new channels are available to those with eyes open wide...

Canadian Social-Media Trends

Canadian Social-Media Trends• Canada’s Internet population

continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer).

Canadian Social-Media Trends• Canada’s Internet population

continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer).

• 79.6% of American Speakers unnecessarily remind you about Canadian’s “Internet ubiquity.”

Canadian Social-Media Trends• Canada’s Internet population

continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer).

• 79.6% of American Speakers unnecessarily remind you about Canadian’s “Internet ubiquity.”

• Webinars and podcasts are top social media resources for US & Canadian business professionals (Business.com, Nov. 5, 09).

Canadian Social-Media Trends• Canada’s Internet population

continues to grow - by 2013, it will hit 25.9 million, or nearly 75% of the entire nation (eMarketer).

• 79.6% of American Speakers unnecessarily remind you about Canadian’s “Internet ubiquity.”

• Webinars and podcasts are top social media resources for US & Canadian business professionals (Business.com, Nov. 5, 09).

‣ Consumer-focused companies: Facebook is dominant social network 83% of respondents versus 45% for Twitter.

‣ Business-to-business (B2B) companies: maintain a presence on both platforms with 77% on Facebook and 73% on Twitter.

“Social Media” Mindset

“Social Media” Mindset

Don’t Forget the Funnel

• The top’s width is less important than the bottom’s efficiency

• Great marketers look at gaping holes between awareness and purchase Do I have an

awareness problemor a conversion

problem?

An Impression Isn’t an Impression

• New medium requires new metrics

• CPM = “clueless promotion measure”

• Solution: Informed assumptions on value of engagement

(Unless It Makes One)

Corporate Barriers

• Few get fired investing in “proven” mix

• “Return on Hassle”

• Revenue target, and I don’t get promoted for experimentation.

• Heck, my executives don’t even care about “emerging” media.

• Let someone else be first (Darwinian).

Corporate Barriers

• Few get fired investing in “proven” mix

• “Return on Hassle”

• Revenue target, and I don’t get promoted for experimentation.

• Heck, my executives don’t even care about “emerging” media.

• Let someone else be first (Darwinian).

Corporate Barriers

• Few get fired investing in “proven” mix

• “Return on Hassle”

• Revenue target, and I don’t get promoted for experimentation.

• Heck, my executives don’t even care about “emerging” media.

• Let someone else be first (Darwinian).

Corporate Barriers

• Few get fired investing in “proven” mix

• “Return on Hassle”

• Revenue target, and I don’t get promoted for experimentation.

• Heck, my executives don’t even care about “emerging” media.

• Let someone else be first (Darwinian).

Excuses Be Gone

Why New Media Hedge Fund

1. Someone needs to own media R&D

2. Tride & true can vanish... then what?

3. Pilots create organizational learning

4. Insights can inform traditional mix

5. BUT: Keep lean & evaluate scale potential (SecondLife?!)

A Simple Solution

• Devote ~10-20% of time & budget on emerging opportunities...

• But selectively...

Risk: High Low

Benefit:

Low

High

Engaging with customers via social

media

Activating brand loyalists to market

Hosting social media

Developing brand-funded entertainment

Obsessing over my product.com site

Engaging advocates who have large

audience

Target ads on social-media sites

From Kotler to Kevin

The “proven” ways

• Research & roll

• Reach, frequency, single-minded proposition

• Segment audienceon key demographics

• Positioning

New considerations

• Listen, try, fail, improve

• Inform, entertain, & gently market

• Micro-segment audience by behaviors & needs

• Inviting

On a Lighter Note...

Why Video is Vital

• Audience is rabidly consuming onine video

• YouTube shift from “wild west” to the 2nd search engine

• Video = most visceral form of social-media

• Budgets are going up fast

• Scale & impact, minimal

Budget Increases

Online video is leading priority in online-marketing mix, but spending is in its infancy with dramatic growth projectionsin 2010 (from $850 million to $1,250 million).

Video-Marketing Paradox

• 40% increase in viewership of online video in past 12 months (between Aug. 2008 and Aug. 2009: Nielsen)

• Still, for every $100 spent on broadcast television, only $1.60 is spent on online video

See source

Viral Is Dead

• Viral video and contests are not an online-video strategy

• Play the lotto for better odds.

• Don’t chase the exception (Evian)

!

Viral Is Dead

• Viral video and contests are not an online-video strategy

• Play the lotto for better odds.

• Don’t chase the exception (Evian)

!

pleese godmake i viral

ROI Concern is “Red Herring”

• Intent: Test/control and pre/post

• Immediate response gets weighted heavily:

- Cost per “real” view

- Cost-per-visitor to site

• But assume residuals:

• Slow builds

• Indirect impact

Context Trumps Interuption

• “In the show” promotion p’wns pre-roll.

• Ads are only one way in.

• Branded entertainment is harder to ignore (and works).

!

Meet the New Stars

• Most-viewed and most-subscribed are individuals

• They’ll promote to their audience

• Asses in seats & implied endorsement

Big Influence Shifts

!! Every new medium creates new stars

!! Faster shift from obscurity to fame

Big Influence Shifts

!! Every new medium creates new stars

!! Faster shift from obscurity to fame

!! Every new medium creates new stars

!! Faster shift from obscurity to fame

Please Don’t Spend on Spec

• Don’t produce content without a distribution plan.

• Keep costs down until model is proven.

• Brands don’t have to be content creators (ask BudTV.com)

• Partner with proven creators.

Fox Case Study

• Doubled campaign goal, with >8 million views to date

• “Stars” posted 26 “Lie to Me” and 8 “Fringe” videos.

• More than 100,000 comments

• Both shows renewed and Fringe was one of network’s best debuts ever.

Fish Where Fish Are

Views!

step one: get them to our product.com sites!

step two: get our video content on YouTube!

BoringProduct.com!

Websites!

(They Don’t Like to Leave)

Nalts’ Secret Sauce

1. Sexy, weird, candid

2. Thumbnails are king

3. Short titles

4. :30 to :90 seconds

5. Grab them in first 10 seconds

6. Unbroadcast

7. Surprise finish

Seed, seed, seed

• Real work starts after posting

• Get it everywhere (Tubemogul.com)

• Add media (per qualified view)

• Target audience via social

• “Your audience may like this...”

Some Take-Homers

• Decide who’s in charge of media R&D, and be sure they’re sharing learning

• Get help from a social-media moron, and give them room to breath

• Monitor your brand via licensed dashboards or free poor-man tools

• Do something.... even if small

Surprise... No TestQuestions & Discussion?

Kevin “Nalts” Nalty,kevin@NaltsConsulting.comwww.NaltsConsulting.com