Digital Media Companies for the New Digital Landscape

Publishers, Ad Networks and Conversational Marketing

Chas EdwardsPublisher & Chief Revenue Officer

Federated MediaJune 2007

Agenda

• Emergence of “Conversational Media”

• Marketing Challenges

• A Move Toward “Conversational Marketing”

New Sites Born Every Minute

Just Like Print, Websites Run Gamut

Leaders Emerge

Digg

CNET

Wired

PC Mag

Digg.com, anindependent

conversationalmedia sitesurpassesall other

Tech Newsbrands in 6

Months.

“Social Media” or “Traditional Media”?

Three socialmedia sites

enter the top15, dwarf the

others interms ofgrowth

Better Question:

Where are mycustomers and whereare they mostengaged?

BW Says Blog is More Influential than BW

Less Reach, More Influence

Upon clicking, the user is presented with the Sphere widget,bridging the gap between traditional and conversational media:

Dooce.com has 20,000 in-boundlinks, twice iVillage’s 12k and 5xthat of Babycenter’s 4k

Reach Giving Way to Engagement

Buying Lots of ImpressionsReach is getting easier -- Google and ad networks

Standing Out from the NoiseImpact is harder than it’s ever been

Impact Through Conversational Marketing

Tap Authors & Hosts, Be Relevant

Microsoftran twotypes ofads.

Standardcopy

andAuthor-assistedcopy

Authorcopyperformed60%better.

Co-Branding Leverages Affinity

Co-branded and“author-driven”creativeperformed over4x the industrystandard

Turn Ads Into Content

Symantec ads featured an RSSfeed of content updated daily.Unlike most ads, the Symanteccreative did not experience ‘fatigue’.In fact, Symantec saw a 300%spike in response several weeksinto the campaign

Time

Clic

k Th

roug

h %

Typical Ads

RSS Ad

Co-Branded, Author-Driven Invitationsto Conversation

“Author Driven Creative”FM Authors contributed their own

definitions of “The Human Network” whichwere featured in the ad units.

Human Network Hub: Vote or Edit Wiki

Readers participatedby voting for the definition

they liked best.

Participants Share Their Experiences

#2 Organic Resulton Google

Participants ShareExperience on theirBlogs

“Human Network”Added to Wikipedia

Ask.com Enlists Ask A Ninja

The Ad Spot:

After each of the 9Ask.com-sponsoredepisodes, the Ninja invitesviewers to visit Ask.comand enter in the word“Ninjuice”

Ninja’s Viewers Follow His Lead

The Search Query: “Ninjuice”

Viewers go to Ask.com (or click on screen inprevious slide) and enter the word “Ninjuice” intothe Ask.com search box

Conversion Is Off the Charts

The Pay Off:

Bonus Ninja video.

Among total viewers of thesponsored Ask A Ninjaepisode, 8.3% watched theAsk.com ad spot, queried“ninjuice” at Ask.com andclicked to watch the bonusvideo

Digg ArcThe Intel sponsored Diggvisualization application.

Intel Underwrites Digg Product Dev

Intel Drafts Off Digg’s Self-Promotion Efforts

Digg’s CTO, Daniel Burka announcedthe news on Digg’s blog and posted it toDigg.com (screenshot).

Within an hour it was, in the Diggparlance, “made popular” as membersbegan Digging the story at a rapid rate.

As of 5/21 (week after launch), therehave been 1330 Diggs to this story!

Among the comments, the one that mostspeaks for other community members(based on the number of Diggs thecomment received) is this: “Mmmm moreeye candy. So much cooler thancomment threading, or searching, orbeing able to delete comments.”

Best Practices

• Locate Your Brand Communities Don’t worry whether the site is social or traditional

• Follow The Leaders, Partner With Them This requires relationships that bots can’t provide

• Add Value To Existing Conversation The conversation is theirs, not yours

Good conversations involve listening, not just talking