The one

number you need to

knowin the social Age

ARF Audience MeasurmentJune 2013

2

Companies have growing measurement challenges.

Metric proliferation

Measurement is not insight

Some metrics are estimated

No framework to provide context

3

Companies have growing measurement challenges.

Metric proliferation Simplify

Measurement is not insight Learn

Some metrics are estimated Know the detail

No framework to provide context Organize

4

Sentiment has been one of the most-discussed social metrics for years.

NET POSITIVE SENTIMENT

NET NEGATIVE SENTIMENT

Bacon

Hybrid Cars

Cell Carriers

Financial Services

Neutral

Airlines

Video Game Consoles

10%

20%

Gas Companies

Insurance

5

Emotions help us better understand what makes people tick, but don’t predict behavior.

0%

5%

10%Love

Excited

Inspired

Fear

Frustrated

Angry

Hate

Sadness

Worried

Relaxed

Hope

Happy

avg

hybrid cars

Mobile Technologies

Mortgages

Hybrid Cars

Financial Services

Cellular

MeatMeat

Hybrid Cars

Financial ServicesCell Carriers

6

Is there a metric that predicts how people will behave?

7

• Measures the number of people, not conversations.

• Developed with Northwestern University’s Kellogg Business School.

• When individuals mention multiple brands over time (even when not in the same conversation), the Advocacy algorithm determines while brand they speak most positively about and considers them advocates of that brand only.

Advocacy (recommendation of brand, product, or behavior) predicts changes in sales or share.

Change in advocates (prior month) vs. Change in Sales

8

Note: This is not actual representation of data, but rather an illustration of the efficiency concept.

Advocacy allows for competitive comparison.

9

So you can map your brand’s performance for context and perspective..

Brand B

Brand C

Brand DBrand E

Brand F

800

600

200

0

400

2,000 4,000 6,000 8,000

PARTICIPANTS

AD

VO

CA

TES

Brand A

10

Most important, advocates aren’t just a metric; they’re a great opportunity to learn and act.

Sales

Features Passion Motivations

Value Trust Archetypes

Service Engagement

Movements

Marketing Problems Advocates

Rational Emotional Social

11

Covert Campaign - Mailing

Mini Takes the States

Motorby- Ads

Ad

voca

cy Index

The earliest advocate insights helped drive MINI’s campaign development to activate their community.

12

Feb

-06

Ma

r-06

Ap

r-06

Ma

y-06

Jun-0

6

Jul-0

6

Aug

-06

Sep

-06

Oc

t-06

No

v-06

De

c-0

6

Jan-0

7

Feb

-07

Ma

r-07

Ap

r-07

Ma

y-07

Change in Sales vs. Change in Advocates

MINI’s advocates were a leading (and statistically significant) indicator of sales in 12 of the first 16 months of testing.

1

2

3

13

Each incremental bacon advocate predicts sales of 5,000 pounds of bacon.

0%

2%

4%

6%

8%

10%

0%

5%

10%

15%

20%

25%Share of Advocacy

Share of Category (pounds)

Y=0.8769X+0.138R2=0.3014

P=0.028

Advocacy

Share of category (pounds)

14

Advocates may be influencers, but they are also canaries in the coal mine, indicating powerful trends and messages.

Advocates serve as both a direct influencer to sales

through their relationships in communities, as well as an indicator of the

offline or other unmeasured

conversations

15

Because advocacy is a high bar, it may even move in the opposite direction as sentiment.

0

5,000

10,000

15,000

20,000

25,000

30,000

NETFLIX ADVOCATES

16

Advocates tend to analyze, vs. react. Even in the midst of brand meltdown, advocates were able (and willing) to explain Netflix’s true value.

“I couldn’t say with confidence that we’d recover. We were in a place that was quite risky. We didn’t have the reserves to make a second stumble.”

-- Reed Hastings, CEO Netflix

17

Advocacy provides context to other metrics, that allows you to further evaluate where your advocacy is coming from.

Brand advocates

Unprompted brand mentionsContent creation (YT videos)Responses to brand Facebook postsSentiment of engagement metrics

Facebook likes on brand postsRe-tweets of brand mentionsComments on YT videosSentiment of participation metrics

Brand Facebook page likesBrand Twitter handle followersSubscribers to brand YouTube channel

Low

to H

igh

Eff

ort

AdvocacyBrand/ Product Advocate

EngagementMore effort to interact

ParticipationMinimal effort to interact

AwarenessPassive contact with brand

mentions or messages

18

Leveraging the metrics that drive advocacy can help you more effectively understand your Earned Media success and how well your “Paid” and “Owned” is working.

Paid Earned Owned

19

Advocate behavior predicts sales or share in many other categories.

CLIENTS ARE USING THE ADVOCACY METRIC AS:

Corporate KPI

Marketing Mix Model input

Complement to brand health trackers

Ongoing source of insights and understanding

20

One Number

ADVOCACY