ARC\'s Web2.0 Age

$: ARC\'s Web2.0 Age$
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Arc

Worldwide

Web 2.0: Our Story

January, 2006

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There’s Already Old School…

The Internet has only been around in mass use with a browser for less than 10 years. We’re just getting warmed up.

Over that time, we have outgrown many tenets and redefined many more.

Hyper-innovation and technology advances drive continued adoption, experimentation, and re-drawing of boundaries, redefinition of what’s possible.

Bottom line – we’ve arrived at Web 2.0

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We Group These Into Three Domains of Innovation

Continually exploring innovation in three domains:

Content Development

Content Distribution

Content Experience

Our definition of Web 2.0 flows directly from our perspective on these three basic domains.

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Blogs, RSS Feeds

It’s About Content A Flow & Relationship Cycle

Content

Content Development

Content Development


Mobile

Internet

Environments

ContentExperiences

ContentExperiences

ContentExperiences

ContentExperiences

ContentExperiences

From:MarketersConsumersAggregators

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FromContent Development

Robust Destination Sites

Static Content

Company Generated Content


Targeted Push

Brand 2 Consumer

Searched

Content Experience

All Purpose Corporate Site

Clicks and Eyeballs

Plug-Ins

Stickiness

To

Big Ideas

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From ToContent Development

Robust Destination Sites

Static Content

Company Generated Content


Targeted Push

Brand 2 Consumer

Searched

Content Experience

All Purpose Corporate Site

Clicks and Eyeballs

Plug-Ins

Stickiness

Content Development

1. Distributed Digital Experiences

2. Dynamic Content

3. Consumer Generated Content


4. Relevant Pull

5. Peer 2 Peer

6. Tagged

Content Experience

7. Topic-specific Brand Properties

8. Level of Engagement

9. Sensing, Agnostic Platforms

10. Consumer-driven Conversation

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Are Consumers Ready for This? … Absolutely

Broadband penetration is staggering; it delivers the enhanced experience of Web 2.0

It once took an internet user 5-6 years to become comfortable with buying online. Today it takes 1-2 years

High expectations and dissatisfaction with current text nature of internet will grow; “I have to read, work for you to sell to me”

Generations growing-up with immersive video and the expression of their opinion as an integral part of their digital lives

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1. Distributed Digital Experiences

No more build it and they will come to you

Mobile, handsets, short-form content manifesting itself in multiple user environments Permission, trust and demand-based delivery

My database is with me at all times – it’s an extension of me

Sites must evolve from the sole brand destination to “distribution centers” for value to customers

1Content Development

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Today

Communication, Digitization driving sharing of everything – and fast!

Social Networks, let me find friends, globally, and mobile connects me with them all the time

Blogs – people are able to express, become their own journalists, seek an audience with like minded people

Many.com websites structured around the organizations for the organizations

90% of websites irrelevant for consumers, they want the 10% that matters to them - delivered at that RIGHT time


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2. Dynamic Content

From text to audio to video – to social ‘real world’ content

Consumer expectation of freshness and change Consumers slam corporate podcasts that start strong and then sputter

out No mercy on iTunes

The Mash-up mentality – all digital content is meant to be taken and changed for new purposes, agendas, humor

“Content” is not placed or “ran”, it LIVES. In the form of social communities, environments and groups that function

like living organisms Warcraft gamers had their characters stage a “protest” in the virtual world

against a rule the users didn’t like


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3. Consumer Generated Content

From blogs to music to ringtones to microsites to short-form film and games, consumers control the web and our experiences within it

Consumers have found their voices, and they like the way they sound

A new generation sees themselves as active participants, not just recipients

But what is it really – what are the user benefits? The opportunity to participate actively in a brand A place to indulge their passions, users “co-branding” with you A means to live vicariously through others The ability to critic, and evaluate products and services


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Consumer Generated Content - Growing

65% of experienced Internet users find user reviews more helpful than information supplied by the brand

Fifty-seven Percent Of Online U.S. teens–or roughly 12 million–now create or share online content, including blogs, Web pages, and photos,

Compare to just 7 percent of adult online users had created blogs

Some 6 million Americans have downloaded pod casts -- Internet "radio" broadcasts -- from the Web

Pew Internet & American Life Project, November, 2005

20% of those who have ever listened to a podcast do so weekly Listen to average of 6 podcasts week and 4 hours/month listening time

Study by Bridge Ratings, November, 2005


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What are consumers creating?

Link submissions, reviews , discussions and newsgroups ratings, votes and polls, FAQs

Blogs, Web, Mobile and Video Podcasting Spoofs of Advertising, Products, Media, Film

Brokeback Mountain + Top Gun = “Brokeback Squadron”

Contest Entries - Create Designs, Entries, Vote for the best My Designs, My Ideas My Content, Reflection on Me and my universe

Blogging as a means to shape and define identity Blogs as brands for individuals – are cared and nurtured for


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A Few Words on the Blog Nation

They are dynamic, not published weekly or monthly like corporate websites

They are published daily… and bloggers post actively on other blogs – maintaining their own brand and reputation

Search engines love new fresh content

They write content as conversation, story that builds, engages

Not a push, stuffy PR release approach, but real 2 way dialogue. Fakers are sniffed out a mile away.

Content Development

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Weblogs CumulativeMarch 2003 - June 2005

Doubling

18.9 Million Weblogs TrackedDoubling in size approx. every 5 monthsConsistent doubling over the last 36 months

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As of Oct 2005 over 70,000 blogs were created dailyA new weblog is created about every secondRecent Spikes partly due to increase in Chinese Blogs55% of new bloggers are still posting 3 months later13% of all blogs update weekly (or more)About 2% - 8% of new blogs are spam (red spikes)

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KryptoniteLock Controversy

US Election Day

Indian Ocean Tsunami

Superbowl

Schiavo Dies

Newsweek Koran

Deepthroat Revealed

Justice O’ConnorLive 8 Concerts

London Bombings Katrina

Daily Posting Volume

1.2 Million legitimate Posts/DaySpam posts marked in redOn average, additional 5.8% are spam posts Some spam spikes as high as 18%

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Blogs and MSM

EschatonCommon Dreams

The EconomistBinary BonsaiDaveneticsNPRTalking Points MemoThe TimesPBSESPNBoston.comEngadgetNational ReviewAsahi ShinbunSlateFARKGizmodoLA TimesInstapunditDaily Kos

MTVSalon

SF GateReutersNews.comFox NewsUSA Today

Boing BoingWired NewsMSNBCGuardian

BBCYahoo News

Washington PostNew York Times

0 10,000 20,000 30,000 40,000 50,000 60,000

Blue = Mainstream Media

Red = Blog

Challenge: Fight or Embrace?

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4. Relevant Pull

RSS and other content syndication methods are, and will, revolutionize the way content is distributed Micro-targeted, updated instantly On-demand Highly specialized, niche Completely at consumer’s discretion Opinionated

Sites springing up that combine customizable RSS feeds, “Feed splicing”

Exclusive, VIP (pay?) feeds will be next

4Content Distribution

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Is it Push Or Pull?

No-one is targeted, consumers are friends, welcome back anytime, not targeted for campaigns

Engagement and “True Friend Experience" is King

RSS and Email – All Opt in, pulling people back

Experience create lasting impression - am I happy and satisfied, learns and applies, helpful

Online delivers human interaction to everyone, wherever and whenever


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Peer-2-Peer

Peers & Customers ARE the New Marketers

To deliver a new level of immersion of experience

Put the consumer as the driver and let them be a part of delivering a whole new experience

Give them the tools and opportunities to speak up Be the microphone, the artboard, the broadcaster for them Nokia realized they’re selling customer expression, not just

selling phones – moblogs already set up for new camera phones


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Peer-2-Peer

Social networking and location aware devices, along with new forms of content development and distribution, make the Web an almost entirely consumer-driven medium

Consumers far more likely to accept recommendations about a product or service when coming from a peer network vs. a corporation

Enable loyal customers to say the things as a marketer you wish you could –

“The new BMW M5 engine KICKS ASS over AUDI”


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Who do consumers trust?

Who do they engage with in conversations? Other individual customers, friends and family 3rd party analysts and experts Blogs on online communities Maybe customer service via chat Corporations – less and less!

Who and where do they turn? Friends – phone, e-mail, social meetings Blogs and online communities Reviews by third party analysts and experts Live customer service


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From Searched to “Tagged”

Almost a third of blog posts use tags or user-created categories

Currently over 25 Million, growing at about 400k/day

Search engine portals being challenged by tagged content portals Customers determine how to classify, “folksonomy” Trusted list of valued sites get tagged for others to use Communities share tagged content – Flickr photos Tagging allows users to browse and search in smaller – but more

relevant – pool of websites Towards a post-Google system of relevancy, Tag Clouds


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452 Podcasts matching “dogs” tag in this portal

Tag Clouds

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Topic Specific Digital Brand Properties

Context specific platform delivery (i.e., home, store, city, etc.) A stand-along campaign on the web Using digital media to launch new products & positioning Place-based mobile product info. / value delivery

7Content Experience

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Level of Engagement

Past the concept of “Clicks and Eyeballs” as measures of reach and awareness

Towards deeper relationships, pass on, return visits, integration of your content with user content

May not be about length of session, but quality of session

Emotional measures, not simply statistical

Content Experience

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A. YOU TAILOR ITimmersed in the brand via rich, engaging content and personalization

B. YOU CREATE ITuser‑generated content, editorial, and reviews

C. YOU CONTROL ITcontent consumption and experience where and when you want it (on‑demand, beyond the .com). mobile, TiVo, other

D. YOU SHARE ITp2p content distribution platforms creates high degrees of involvement, trust, and confidencebrand as a platform for like‑minds to interact, (vs) brand as the deliverer of the message

E. YOU HAVE FUN WITH ITlearn, play, share, laugh, test, explore

F. YOU BREATHE IT...once the brand belongs to you, then brand preference is the default

Content Experience

8Dimensions of Engagement in the digital world

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What does it become?

A new breed of consumer engagement A category educator A visionary communication channel Content delivered through experience A place to be recognized, a place to share and embrace each

other A destination

8Content Experience

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What does it look like again?

One Rich Interactive Platform

It does not resemble a traditional website, with scrolling pages, forms, functions and content combined

Human Touch and Community

A Constant and Reassuring feature

Every interaction is remembered and acted on

8Content Experience

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Sensing, Agnostic Platforms

Automatic Awareness

Content formatted to screen / device / platform

The end of device drivers

The new client-server relationship is mobile

Content Experience

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Consumer Driven Conversation

Beyond “Stickiness” to a relevant conversation

Quantity of time on a site is not always a good thing, quality is more important

Be there for your customer when they need you, what do they want? How do you know? Incorporating their ideas, listening to them, marketing with them

Content Experience

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Imagine Human ConversationContent Experience

10 The information that I need delivered whenever, however,

and wherever All information has dimension of contextual relevance – what

I see and hear is what I need I expect to be recognized – to know my likes and dislikes Not pushy, invasive, or assumptive Relationship as a source of enjoyment and value

… versus today’s Corporate Website, where the consumer has to work hard to find information

Delivery and conversation is a reflection of internal organizational structure – fragmented and segregated

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What does it look like?

Human face to a corporate experience Your own personal guide, welcome back Guided tour, just like visiting a friend You receive advice You ask questions You are treated with respect Little bit of fun, to make it human It remembers you, what you did last visit Lets you share your story, listens and learns Social –connects you with similar like minded people, to

share, learn from, feel belonging

Content Experience

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What’s Next for Purina?

A strategic platform for digital experience Planning Prototyping / Evaluation Iteration Enterprise launch

An infrastructure for rich media and entertainment

Build a real pet community Sow seeds and fertilize the ground for consumer feedback Have a plan for what to do with it… Keep your “loyals” happy and feeling involved

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Purina is at Web 1.25 (with good momentum)

What’s workingInnovation mindset and desire – spiritually you’re thereStarter distribution network (content feeds)Great resources (i.e. off-line entertainment properties)

What must improve Strategic framework for Entertainment content – A Master

Plan Customer generated content (Podcast idea in the works) “Behind the scenes” blogs, “Exclusive” content, not just

recycling existing TV. Original entertainment for interactive. Content itself must be RELEVANT… what to re-format? What

content to create that’s not there now?

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Big Ideas

Mobile-based fashion show – consumer submitted “at the park” entries Fashion designers do line for dogs Models + dogs on runway = “Fashion’s gone to the dogs” Co-branding opportunities way outside of the pet care space

Mobile phone manufactures and carriers Hospitality and travel brands

Redefine the dog show – Sprint Global dog show

Continue discussion

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End

ARC\'s Web2.0 Age

Technology

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