What the election of America’s first Digital President means for advertising in Brazil.

• Lessons from Obama

• Why advertising must change in Brazil.

• A bet...

A Different Man…• Young

• Charismatic

• Intelligent

• Black

• Digital

And His Vision: “Change”

• Short

• Simple

• Motivating

• Viral

An Unprecedented Budget…

With digital mediaat the core

Obama’s Campaign Budget

Out of a total budget of $566M (USD)

• 48% allocated to media

• 6% spent on digital media

1. Paid Search

• $7.2M on Google

• $14M on Yahoo!

2. Digital “Brand” Advertising

• $3.8M on mainstream websites

3. Social Media

• $980K on Facebook

• $280K on MySpace

Digital Media Spend

An Unprecedented Digital Effort…

Seven Extraordinary Tactics

Tactic 1: Recruit a team of digital specialists

A digital-savvy staff crafted the strategy

20 people fully dedicated to digital

Plus world-class Super Geeks:

• Chris Hughes, co-founder of Facebook

• Eric Schmidt, CEO of Google

Tactic 2: Make Your Message Findable

Content that’s visible in the right place at the right time

Findability

If you want young voters…go where they are

Findability

Intelligent targeting – 18 top games in 10 “swing states”

Findability

Make all content exportable

Findability

5 times more blog mentions for Obama

Tactic 3: Be Relevant to Your Audiences

30 specific communities addressed in the “People” section

Relevance

Overwhelming presence on all social media platforms, from massive to targeted

Tactic 4: Create Engagement

Site log-in created a database of 13 million qualified leads

Tactic 5: Empower your fans

Recruit Core Advocates among your closest target

Obama “Core”

1. Black Community and its leaders

2. Democrats tired of the Clintons

3. First victims of the economic downturn

Peers (Followers)

Thousands of local “small Obamas”

• Speaking to everyone

• Listening to everyone

• Raising funds

• Organizing micro-meetings

• Generating vast amounts of content besides the “official” content

Empowerment

Encourage the “Core” to activate their personal networks

Obama “Core”

Peers (Followers)

Empowerment

Create easy-to-use tools for “badging” and recruitment

Empowerment

Encourage grassroots event creation

Empowerment

Phoning tools

Empowerment

Personal fundraising tools

Empowerment

Fight the smears

Empowerment

Dedicated iPhone app

3M personal text messages to announce Biden as VP, before the news hit TV screens

Tactic 6: Reward the Faithful

Give them inside information

His first thanks go to his supporters… by e-mails

Reward

Give them direct access

Tactic 7: Be Transparent

Leverage digital to report on what you’re doing

• During the campaign

Transparency

Leverage digital to report on what you’re doing

• Once elected

Each non-urgent legislation will be published for 5 days to allow the public to review and comment on it, before the President signs it.

Transparency

Leverage digital to report on what you’re doing

• Once elected

Transparency

Leverage digital to report on what you’re doing

• Once elected

All that and a Titanium Lion, too…

That’s great.

But what does it mean

for us?

Advertising in 2009 must be…

1. Built by people who truly understand digital

2. Findable anywhere and everywhere, all the time

3. Relevant to multiple audiences

4. Built for interactivity and engagement

5. Designed to create and empower “fans”

6. Provide rewards for the user

7. Socially conscious and transparent

But we’re in a crisis.

Maybe we should stick to

what works?

Hello TV people: It’s not working

Percentage of U.S. homes watching network primetime TV

Maybe Brazil is totally and completely immune?

Maybe Brazil will never change?

I will make you a bet:

Brazil is going to explode. Digitally.

Why?

You’re rushing onlineWired household penetration is outpacing all the other major growth markets:

You in 2009: 38%*

RIC in 2009: 22%**

*Averages Brazil, Mexico and Argentina**Averages Russia, India and China

You’re hyperdigitalYou have one of the mostadvanced digital populationson Earth.

Highest reach insocial networks:60%

Highest reach in digital communications: 82% webmail73% in Messenger

So why aren’t your digital

budgets bigger?

Share of Media Spend By Media Type

2001

2002

2003

2004

2005

2006

2007

2008

2009

This is crazy, right?

Evolution of Internet Spend per Online Household

2001

2002

2003

2004

2005

2006

2007

2008

2009

The ProblemLatin America is stuck in an “old media” rut.

Digitally, you’ve fallen behind,and the gap is widening:

*Averages Brazil, Mexico and Argentina**Averages US, Canada, Italy, Spain, UK, Germany, France, Australia, India, Russia, China, South Korea, Japan

You: $21*

Everyone else: $180**

What I Believe:You are the biggest growth market on the planet for digital. The population wants it.

Brands, creative agencies, and media companies are not keeping up.

The revolution will start with you.

So I made you a bet.

I was serious…

Coming SoonRazorfish / Latin America

Do you have digital DNA?We should talk…

joe.crump@razorfish.com

Muito obrigadojoe.crump@razorfish.com