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All Earned Is Not Created EqualExperience-Driven Social Marketing:

Deeper Engagement for Stronger Advocacy & Bigger Lifts

Earned is the most powerful media&

‘Experience-driven’ is the most powerful earned

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Experience-Driven SocialThe Most Powerful Medium in the Mix

Deeper Engagement

of In-Person Experience

Stronger Advocacy

Online

& Off

Bigger

Lifts

In Branding

& Sales

A Primer:

Earned Is theMost Powerful Media

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Earned Media Is the Most Trusted

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 sponsorships

Emails signed up forEditorial content (e.g., newspaper article)

Brand websitesConsumer opinions posted online

Recommendations 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%

Have some degree of trust* in the following forms of advertising

(April 2012)

Source: The Nielsen Company.

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Earned Is the Most Powerful Media

WOM Is More Trusted Recommendations from personal acquaintances are the most trusted form of advertising. (Nielsen)

Paid and Owned Are Mistrusted 75% of consumers don’t believe companies tell the truth in advertising. (Yankelovich)

WOM Drives Sales Recommendations are the #1 driver of consumer purchase decisions at all stages of the cycle. (Keller Fay)

WOM Customers Are More Valuable WOM customers have nearly twice the long-term value. (Villanueva et al)

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Experience-Driven Isthe Most Powerful Earned

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Experience-Driven SocialThe Most Powerful Medium in the Mix

Deeper Engagement

of In-Person Experience

In-Person Experience Generates Deeper Engagement

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More Time with Consumer per Marketing Dollar Spent

Party265,605

Planning25,175

Conversation152,032

Party Site4,641

Social Media22,481

Total Hours:

469,934

eCPM-30 seconds of engagement:

$4.15

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Hours of consumer engagement with featured brand during a 5,000-party campaign, by type of activity

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Experience-Driven SocialThe Most Powerful Medium in the Mix

Stronger Advocacy

Online

& Off

More Persuasive Advocacy:More Credible & Passionate

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More Far-Reaching Advocacy:Experience-Driven Social Can Have Mass Reach

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0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.014.0

8.07.0 6.5

5.5

Uni

que

Peop

le (i

n m

illio

ns)

Unique people reached by, and typical CPMs of, select major media

Sources: The Nielsen Company, Google, Audit Bureau of Circulation

(CPM:$20) (CPM:$7) (CPM:$5) (CPM:$15) (CPM:$10)

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Experience-Driven SocialThe Most Powerful Medium in the Mix

Bigger

Lifts

In Branding

& Sales

Bigger Brand Lifts

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Experience-Driven Social Generates Bigger Brand Lifts

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Favorability Advocacy-Intent Purchase-Intent0%

10%

20%

30%

40%

50%

60%

70%

80%

30%26% 26%

76% 76%72%

Pre-Campaign Post-Campaign

Average Favorability, Advocacy-Intent, and Purchase-Intent of the featured product, pre- and post-party, among party guests

155% Lift196% Lift 183% Lift

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Lifts that Last Longer

Product Knowledge Favorability Advocacy-Intent0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

34%

56%

10%

84%

93%

75%70%

89%

60%

Control Partygoers Conversation Partners

Product knowledge, favorability and advocacy-intent of the featured product, among hosts, guests, conversation partners and

control, 6 months after a House Party campaign

Source: ChatThreads

“When I saw a commercial for the cooking creme, I literally yelled out loud and said, that's the Philadelphia cooking creme!"

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Lifts in Marketing Receptivity

Post-Campaign Average: 69%

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Lifts in Marketing Receptivity

Unaided Recall Aided Recall Ad Favorability0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

51% 50%

32%

65%

82%

64%61%69%

59%

Control Partygoers Conversation Partners

Source: ChatThreads

Unaided recall, aided recall, and favorability of advertising for the featured product, among partygoers, conversation partners and

control, 6 months after a House Party campaign

Bigger Sales Lifts

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Test/Control Markets MeasureSales Lift

Test Stores

Control Stores

Nielsen Matched panel design for a House Party campaign

Source: The Nielsen Company.

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Test Stores Show Big Sales LiftSales of featured product, in test and control stores, 6 months after

a 15,000 party campaign

Control Stores Test Stores $460,000

$480,000

$500,000

$520,000

$540,000

$560,000

$580,000

$600,000

$519,330

$578,014

11% Sales Lift

Source: The Nielsen Company.

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Millions in Extra Revenue for Extremely High ROI

Millions in extra revenue for extremely high ROI

Percent of sales driven by House Parties 11%

Incremental gross revenue $6,803,706

Incremental gross profit $3,401,853

ROI in gross revenue (revenue/cost) $3.94

ROI in gross profit (profit/cost) $1.97

For every $1 the brand

spent, it got back:

$3.94 in revenue

$1.97 in profit

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Bonus Assets Raise ROI Even Higher

Gross Profitfrom Sales

$3,401,853

UGC $100,000

Opt-ins $70,000

Consumer Insights $20,000

Facebook Likes $40,000

$3,401,853 Gross Profit from Sales

$230,000 Value of Bonus Assets

$3,631,853 Gross Profit(including bonus assets)

$2.11 ROI in Gross Profit(including bonus assets)

Gross profit of a 15,000-party campaign, by deliverable

TalkTrack® Report on Word of Mouth by Triggers

March 2013

© 2013 Keller Fay GroupNot to be quoted or distributed without written

permission

www.kellerfay.com

Key Findings

• After “need,” “good experience” sparks the most earned

• Experience-driven earned is the most credible• Experience-driven earned sparks the most action

– Pass along– Seek more info– Purchase

• Over half of experience-driven earned contains strong buy/try recommendations

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Key TakeawaysEarned is the most powerful media, andExperience-driven is the most powerful earned

Deeper Engagement

of In-Person Experience

Stronger Advocacy

Online

& Off

Bigger

Lifts

In Branding

& Sales

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Thank YouPeter.storck@houseparty.com