Mekanism: Engineering Viral

MarketingNAJIH SURAYA (15/391824/PEK/21270)NINA RATNA(15/391827/PEK/21273)

Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others , creating the potential for exponential growth in the message’s exposure and influence.

Mekanism, a digital social media production company development of viral marketing campaignsMekanism focuses its work on story-telling through emerging media platforms

68% annual growth in billings

Mostly engineered in virality , by creating an online campaign and make it go viral

MEKANISM HISTORY

• 2000 – Membangun perusahaan advertising ketika adanya media fragmentation dan penyusutan biaya untuk advertising• 2007 – Client hanya meng-hired 1 agency untuk campaign

produk mereka. Founder ingin membuat multiple agency.• 2009 – Mechanism mengembangkan viral marketing &

meningkatkan annual growth 68%• 2010 – Growth hanya 10% & client yang bergabung

lebih sedikit.

Becoming full service • Closer relationship with advertisers and afford

more opportunities to leverage the content into Television and other traditional media

Remain in Niche creative shop that specialized in Viral Marketing• Focus on what makes in successful and attempt

to fend off recent competition

ONLINE VIDEO ADVERTISING

• Online Video advertising also offers the potential for higher level of consumer engagement with brand rather than cost saving and fast reach

• Online video offered viewers more possibilities for interactive than TV ads and amounted to more brand related time spent by consumer

“Engineering Virality”3 main approaches:1. A unique storytelling

focus2. Management of digital

platforms3. Building a network of

high-profile digital influencers to help spread a campaign

STORYTELLING FOR EMERGING MEDIA

Engaging the consumer on a deeper level

• Positive emotional associations with brand and a desire to share the stories

• Research and understand the interest and needs of the target group by conducting focus groups and monitoring online buzz

Involving the consumer in the

process

• ‘Gives something for the consumer to talk about within their social media

• Finding and sharing the content• Creating platforms for people to

have voice to build the relationship between consumers and the brand

PLATFORM MANAGEMENT

• First step: Developing right story for a brand and target

audience• Development of 3 pronged strategy:• Reaching out popular blogger and high profile digital influencers,

online citizens with large followings to create editorial buzz around campaigns and increased sharing process

• Distribution strategy relied heavily on the use of owned spaces on social media platforms

• Use of traditional paid and digital media • ‘Building and fostering brand communication’ online and

‘working at the speed of social media by creating a constant dialogue with the consumers’ – Crucial pieces

INFLUENCER NETWORKS

• In 2006, Microsoft help in promoting launch of Microsoft Vista• Reaching out to a number of other popular online

personalities to promote the campaign and direct the followers to website

• Influencer network continues and become a central components built into the majority of their campaigns - ‘seeding’ the campaign’s content on variety of blogs and other sites that could post later

5 Steps characterized Mekanism’s digital influencers strategy

Identity

Engage

Value Exchange

Distribute Message

Optimize

MEASURING SUCCESS

TO BE OR NOT TO BE AN AGENCY

Clients requesting other complimentary services to viral

marketing. Converting mekanism from a specialized production shop to a

full service ad agency. Major clients wanted Mekanism to provide a complete service to cater to

their needs Risk of diluting Mekanism’s core competency : Viral marketing Conversion into an ad agency as part of expansion strategy Provide a closer relationship with advertisers with increased usage of the

internet It will be easier to attract bigger clients because as it is ad agency Ad agency can provide over a standalone service provider, it is advisable to Mekanism to become a ad agency and thereby provide complete integrated service

Established player in the

marketGot the right mix of talent

Innovation at its best

Ability to deliver viral

videos consistentlyPre-empting clients needsServing blue chip clients 

Great Understanding

of brand / customer needs

Still servicing a large number of

ad agenciesUnable to

command a higher share of

clients’ total expenses

Digital spends account for

13%

Growing business with existing clients and add new ones by

expanding to a full-service ad agency (offer digital/viral

marketing in addition to traditional

marketing/advertising and content creation)

• Cut out “ ad agency” middleman

and take a bigger portion of billings by working directly with

in-house brand advertisers

• Go after big brands with larger, growing

budgets for digital/viral marketing

• Digital advertising/”virality”

has become more prevalent with

increased end-user and usiness social

media use; Consumers are tuning out TV ads and spending more

time online• Capitalize on traditional ad

agencies’ lack of experience and

technical skills in creating/managing

digital advertising and viral marketing

campaigns.

Traditional ad agencies are

quickly gaining digital and ‘viral

marketing’ expertise with

significant talent and monetary

resources - positioning

themselves to be a “one stop shop”

• Trend in advertising industry

of clients consolidating

agencies • Skepticism from clients on potential

virality of campaigns

STRENGTHS

WEAKNESS

OPPORTUNITIES

THREATS

ANALYSIS

SWOT