Interactive

Marketing
The evolution of marketing...
from mass communication to
conversational engagement

INDEX
Social Animals ................................................... 3
Future of Media ................................................. 4
The Party Principal : content vs. pitch ............. 5
How to connect with customers ........................ 6
The Big Idea ....................................................... 7
Community and 7 Ways to Go Viral .................. 8
What are people really looking for? .................. 9
Social Media at your Company..........................10
Questions to ask your company ........................11
Success on Twitter .............................................12
Widgets ..............................................................13
PR and Conferences...........................................14
Search Guide .....................................................15
Mobile Platforms ..............................................16
Retention and Metrics ......................................17
Build it with APIs / Partnerships .....................18
THE START OF A CONVERSATIONAL RELATIONSHIP
The marketer is hosting a party
Imagine the role of marketing as being less about
crafting clever mass communications and much more a
role of social director, who engages guests to participate,
interact and share.
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messaging, but by standing for something real and
being consistent with integrity.
page 2
 NEW MODEL

Social Animals ,WLVUHPDUNDEO\GLI¿FXOWIRU

We are social animals. Organic and interdependent.
companies to credibly evangelize
Communities revolve around understanding and their own products on social
self expression. They depend on the contributions of
members. Participation is the greater reward.
networks or communities.

Marketing in this environment is not about peddling Companies can start and host
- there is a much greater opportunity in terms of
developing enduring relationships which will deliver
the conversation, but ONLY
dividends over time. customers can evangelise with
integrity.
FRAMEWORK FOR THE SOCIAL WEB

Emotional Connections vs. Data

The challenge in front of
Entertainment and Mutual gain vs. Messaging
marketing now is to secure
Relationship vs. Transaction
relationships with customers so
that they in turn communicate
about your company, brand or
product.
The Evolution of Marketing into Rational Conversations page 3
 Future of Media
If there is one over-arching and self-evident truth about the
path of progress, it is that people eventually get what they want.
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FUTURE OF ADVERTISING

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messages thrown at them out of context, interrupting their
entertainment, the current linear advertising model is going
to BE broken.

FUTURE OF MEDIA

Because people want to belong and participate, rather than

simply observe, social networks and interactive digital
content syndication will effectively replace broadcast media.
Its simply more rewarding to play than to watch

RICHER RELATIONSHIPS WILL EVOLVE

Marketing MUST become conversational – because no one

really wants to invest in a relationship with a loud- mouthed
robot, you know, given the choice....

The Evolution of Marketing into Rational Conversations page 4

The Party Principal
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sell anything. Offer ideas, entertainment, inspiration, relevant information and community as currency. Invite people to share and most
importantly, contribute. Participate in open communities on the web as a good citizen. The model below is essentially a customer model.
There will be other groups, Investors, employees etc.

Digg
Upon
StumbleUpon
Yelp
Applications
Mobile Entertainment Widgets
a
Wikipedia
YouTube/Vimeo and Shows Web Applications Search Direct
Current TV Mobile Search Engines
Last FM Episodic features
Social Bookmarks
Marketing
and designed to develop Catalogs
Widgetized interaction and Wikis
Direct Mail
Content interest Coupons
email

WebSite
Ning
W
WebPresence
Facebook
mySpace
Communities Brand Advertising
Twitter Social / Professional/ Related
Interact Broadcast
Linkedin News / Feedback Loops
Inform / Transact Paid Search
Yelp Informational Services
Hi5 Community of Customers Web
bebo

Partnerships
Referrals
UGC Affiliate Marketing Brand and
News Messaging
Content Twitter / blogs VARS
podcasts Retail Channels Product
Video / Shared
LiveCast RSS etc. Services
YouTube Pictures
SMS /Voice Events
Blipp Crowdsourced
Rever Content eBooks Porttal News
Portal
Crow Sourced Content
Crowd
The Evolution of Marketing into Rational Conversations Blog Communities page 5
Broa
Broadcast and Print
 Managing Conversational Relationships
Developing conversational relationships with customers is somewhat pointless unless there are systems in place to effectively interact
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methodology starts with the idea that the most important information is not demographic or transactional data, but that which
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5- 7 Rewards
Create and manage status and evangelism
Exclusive Club rewards programs, community and special
communications for these VIPs
7.0 Love / Blind Faith
Curators: Hosts of events, wikis, blogs etc. EVANGELISTS
Referral

6.0 Evangelism Programs

Love 4-5 Retention
Producers: Creates content on your behalf
Select ACTIVE Site and content
CUSTOMERS Features

SALES / SERVICE
Offerings
5.0 Preferred
Commentator: Shares and comments broadly Events
Service Blogs
4.0 Valued
Likely to share, depending on opportunity COMMUNITY News, RSS, Services

DIRECT MARKETING

SOCIAL NETWORKS
3.0 Known
Differentiation
WEB FRANCHISE Opportunity: Build relevant audience by
converting passive users to active users
and focus on the needs of best perform-
May share, depending on faith
ing customers.
Common Objections

ADVERTISING / PROMOTION
2.0 Skeptical
Will visit a site, request info, brochure
Value Proposition: IDEAS
1.0 Noticed 2- 4 Communication
Watches and reads content Relevant communication that relates to a
value for the recipient rather than noise.
Informational and conversational.
0.0 Unknown PR/ ADVERTISING / DIRECT MARKETING Product announcement and features
Inactive untapped potential Trial offers, Direct Mail and Promotion

-1.0 Misunderstood REPUTATION MANAGEMENT / PR

Likely to share, depending on opportunity 1. Get Noticed
Sponsorships, cause marketing, paid search, SEO, viral content,
-2.0 Distrusted/Disliked advertising and brand promotions that open conversations and
Commentator: Shares and complains broadly
invite interaction. The goal is to get permission to make contact
and introduce the VALUE to that customer.
Valued is the point where a transaction takes place.
Be cautious of a tendency to label and categorize people. It is a hold-over from mass-marketing practices. De- CONTENT DEVELOPMENT: Share ideas, Solve problems, make
mographics have little to do with effective relational marketing People play varying roles depending on their introductions, make friends, create community.
momentary relationship with the brand. The approach detailed here is about routing traffic, not labeling. page 6
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One of the most important elements of effectively driving
conversations is to have a theme - a position, a reason.

The conversations and opinions can sweep broadly, but in

the end, everything people are talking about should circle
the Big Idea. Everything (meaning your brand) must
have real integrity with this central theme. The nature
of this will determine your success. A weak, diluted idea
will net weak results. An idea that has little integrity, may
undermine your own brand.

This needs to be a big, big idea. Your organizing principal.

The thing that makes you better or different.

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The big idea needs to be sustainably differentiated and

needs a huge element of human emotion attached to it.
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NEVER DOES, its the opposite of what everyone
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have it, practically everything is a waste of time...
Apollo 11 Moon Landing, July 1969.
The Evolution Courtesy
of Marketing into of NASA
Rational Conversations page 7
What drives Community ?
Each community has its own reason for being, it is a
constantly growing and changing landscape that is
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consistent organizing factors that fuel these communities:
7 ways
to go viral 4. Platforms Consider Ebay: perhaps
the best example of a strong franchise where
use of a platform drives further adoption in a

Entertainment 1. Communication Messaging

virtuous cycle. Get your users to do something
that involves others in a way that engages them
Belonging within communities and networks has driven to use the platform. Then get them involved in
virality for companies like Skype, Facebook,
building the community.
Shared Purpose MySpace, and even Fax machines. Since you
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Participation and Ownership tool until you get it, communication works to
drive virality where the medium requires some
5. User Generated Content
When you give people an opportunity to contribute
sort of membership. FRQWHQWWKHUHVXOWFDQEHKLJKOHYHOVRIWUDI¿F7KLV
We build on these fundamentals. Finding a successful VRUWRIWUDI¿FXQLTXHO\GULYHVUHVXOWVLQRUJDQLF
formula that organically achieves sustainable growth is key search. YouTube, Wikipedia and Yelp are probably

WRHYHU\WKLQJ2QFHWKDW¶VZRUNLQJZHFRQWLQXHSHUIHFWLQJ 2. Invitations Make it easy for users the best examples of this.
to invite all their friends. Give the membership
the engine of adoption. reasons to send messages to friends for
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Possibly even make it hard for them not to.
6. Emotional Connections
Countless Facebook and OpenSocial applications
Email, IM, VM and community apps. have taken advantage of surveys, comparisons
and other fun games designed to drive virality.
Big growth can be realized from getting users to
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3. Widgets Reid Hoffman refers to this input some data and gave them information about
themselves (whether it be an IQ test, which sort of
as “invading a community”. Rockyou, Slide,
Superhero you are, or contact info on old friends).
Photobucket and a host of others have done
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existing community makes it more likely that a
7. Paid There have been several businesses
200K
new user will see one of your widgets and want
to get something similar. Increasing returns that successfully grew by paying both new and
to scale means that the big get bigger faster. inviting users. The economics can make this more
12+ M 60+ M 26+ M The challenge here is in effectively seeding GLI¿FXOWIRUPHGLDPRGHOVWKDQFRPPHUFHPRGHOV
distribution of widgets amongst opinion However, it can drive a lot of new adoption and
leaders and early adopters etc. did for AllAdvantage and Paypal.

The Evolution of Marketing into Rational Conversations page 8

What people are really looking for
when they view viral content...
The most common fallacy with viral content development
is that with a small budget, it is possible to create a bit of
content that results in millions of views overnight.
The “Mentos and Coke” sensations can happen - but
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Recently, one search engine has quietly become the

second most popular site for SEARCH on the internet:
YouTube... it turns out that millions of people are looking
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The opportunity is to take your product, service company

or entertainment and to create content that people will
want to watch and share. This content is widgetized, by
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and blogs and can can be distributed via Pod casts, which
make the numbers of potential viewers rise exponentially.

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them - or better yet let the viewer discover them

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humorous video detailing each step etc.

The Evolution of Marketing into Rational Conversations page 9

How to get started with social
REPORTING:

We are offering a monitoring and reporting service that

media at your company will keep you informed of what is happening, areas of
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For most companies, adopting Social media will be nothing
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mistake would be to launch a blog or two, and add a couple of ‡&RPSDQ\DQGSURGXFWQDPHV

community pages and perhaps a twitter page. ‡.H\,QGXVWU\6LWHV
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This is not a new media, it is in fact a new approach to ‡.H\H[HFXWLYHVDQG)LJXUHKHDGV
integrating customers. We have social media thought leaders ‡&RPSHWLWRUFRPSDQLHVDQG%UDQGV
who can take your company through this process, and make ‡6(53V
it inspirational, fun and engaging. ‡%ORJV0LFUREORJVDQG&RPPXQLWLHV

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a proposal for a comprehensive program.
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4. Systems, Processes and Materials
5. Seminars and online resources/ systems and courses etc.
6. Monitor/ Manage/Track/Optimize

The Evolution of Marketing into Rational Conversations page 10

Questions to ask your company
1. How do we control the message?
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2. How do we measure the results
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tions. We can help.
3. How do we overcome cultural inertia?
Most new ideas require change - often the greatest challenge in the equation. The upside is that gener-
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4. How do you empower everyone to engage responsibly? and how can you be
sure to comply with business conduct policies?
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zation to connect.
5. Will you give employees the choice to participate?
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tive and focussed on the customer wherever possible.
6. What are the keys to maintaining credibility online?
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7. Is there a formula for adding value to the conversation?
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The Evolution of Marketing into Rational Conversations
8. What do you do when the conversation turns critical?
Your people need to be trained and coached on how to handle these situations.
9. How do you clarify corporate versus personal participation?
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10. How do you coach without dictating?
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11. How can you be transparent and honest about what the company is doing?
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12. Are there policies in place to avoid violating privacy or confidentiality policies?
Acceptable practices should be similar to those in the workplace. A guide to online conversations could be
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13. How do we know we are succeeding?
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14. What Communities should we focus on?
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15. Are there systems in place to correct mistakes?
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16. How do you monitor what’s happening ?
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and support those.
page 11
 WHAT IS A TWITTER CLIENT?
Find a Twitter client that works for you, but watch for new tools. Tweetie and Tweetdeck
Success on Twitter are popular. Twitter tools, services and products are coming out daily: once a month do a
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GENERAL TIPS
TAGGING: HASHTAGS ARE A KEY TO THE MULTIPLIER EFFECT
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Twitter searches are indexed by keywords and tags. The tags are by far the most effective.
- To send a direct message to anyone (following or not) put an “@” before their ID.
Simply take a moment to consider the one or possibly two words that most people would
- You can Direct Message people who follow you, its private (the world sees@ messages)
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Each key word should be added to the end of the twitter message (tweet) and be preceded
- If you want to Re-Tweet a message, add “RT” before the name of the person who wrote it.
by a hashtag “#”(number symbol). No space #TAGGING
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have to follow anyone that follows you.
RETWEETS ARE THE KEY TO EVERYTHING
- Promoting others is a great way to participate in community
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- The more commercial your intro/bio is, the fewer people are likely to follow you
calculated based on everything they do in a day You might have a couple thousand people
following you on Twitter (1200 is an active/engaged user average) Only the crazies reads
HOW TO BUILD A VALUABLE FOLLOWING
it all. Your impact in a single message is likely to encompass only a few dozen people.
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This is where the goal to create messages that are taken and passed along. When you see a
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message preceded by RT, it has been copied or “re-Tweeted”. Several factors contribute to
they like you enough to follow you back. News sites and celebrities are probably not
retweeting:
going to follow you. If they are, nobody is reading it. Good followers are active, have a few
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Re-tweets and seem to be generally engaged. Perhaps they have under 2,000 followers.
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Following 20 people to follow a week, you will develop a solid following in 6 months or
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FOLLOW YOU. If you do nothing, the account will be a sad, lonely thing that may mis-
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USING SEARCH
MANAGE TOPICS
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Find the right mix of Twitter topics to tweet, retweet and follow for your online brand. In
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TIMING
Birds sing in the morning. Unless you want to drive yourself crazy, you already have
regular times in the day when you check and process voicemail and email. Adding Twitter
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mode” and squeezing in a few DMs and RTs (direct messages and retweeting tweets of
value) is easy while on hold returning a call.
The Evolution of Marketing into Rational Conversations
blog. This is particularly important once you hit the Dunbar Limit of people you follow:
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Twitter timeline. You need to focus.
ADD VALUE TO THE CONVERSATION
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(personal), steering a prospective customer to the right tool for what they want – be it
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page 12
Stand-alone Widget Applications Instant on-board diagnosis
Because widgets are embedable, you can use them to create
connections that are capable of being replicated all over the
internet; across communities, blogs and forums, mobile
platforms and desktops.

The right widget strategy, effectively implemented can drive

an entire business model. You only have to look at the 150+M
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things on the internet - it takes investment of time and
imagination. Magnity has a great deal of experience with
widget development: strategy, design, coding and distribution. Impulsive Fun

GUIDELINES TO SUCCESS

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The Evolution of Marketing into Rational Conversations page 13

New Breed of Public Relations
There is a new breed of Public Relations that goes beyond
integrated marketing. Because the nature of media is
changing, the opportunities, challenges and activities have
changed also. We understand the opportunities around
integrated digital marketing.
1. Pre-seed credibility with coverage by leading tech press.
2. Create pre-launch buzz.
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4. Blogger sites, both grass roots consumer and broadly
relevant industry opinion makers.
5. Create links from stories and discussion groups from
media to build on search results.
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7. Find a voice with consumer-oriented mainstream media.
8. Founder interviews build credibility and funding options.
The Evolution of Marketing into Rational Conversations
Conferences and Events
Magnity has experience with taking clients to conferences.
These conferences are very cost-effective, build credibility,
extend a network of contacts for partnerships and associations
and set the stage for funding options.
We help prioritize and plan conference attendance. In addition
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cally relevant venues. It is possible to attend and present and/
or exhibit. We can help plan those decisions. The best way to
attend one of these conferences is as a guest speaker. We have
people that can effectively guide you through a conferences and
even attend with you, making sure you get to connect with the
right people.
page 14
Site optimization for
conversational marketing
We offer a range of comprehensive and pragmatic solutions
to help you and your team to evaluate and optimize interfaces
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With conversational marketing the number of constituencies
interacting with your site are likely to increase – it all gets
more interesting, the challenges remain:
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for the stage of their relationship with the company.
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The Evolution of Marketing into Rational Conversations
Effective search is VITAL
Building strong online brands is all about search optimization
and owning the right keywords and search terms – these can
be built into every touch point.
Effective search optimization goes so far beyond Meta-tagging
and back-link. A deeper strategic approach is required:
- Advantages of PPC /paid search to advance organic results
- Importance of integrated key words across all digital media
- Strategies that understand, anticipate and capitalize
on competitive positions.
- Planning and managing paid search
- Effective use of landing pages and sub-domains
- Local vs. Global
- Enhanced search with social networking and blogging
page 15
Mobile Platforms
Mobile Platforms already far out-number desktop computing
devices, they are also set to take the lead as the most dynamic
media for interaction. Many of the same principals apply,
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to incorporate features such as IM/Text Messaging, cameras,
unique micro-payment options and geotracking...
Year-end 2009 outcomes are predicted as:
U.S. mobile subscriber penetration will exceed 90%, or 275 million people.
U.S. mobile revenues are on target to exceed $148 billion this year.
$45 billion of that will be just for data services, up from $23.2 billion in 2007.
2.3 trillion minutes of use (talk time).
1.7 trillion text messages.
U.S. customers are the most talkative in the world, with 829 talk
minutes a year in 2008. Next is Canada, with 444 minutes per
subscriber in the same period.
The Evolution of Marketing into Rational Conversations
New Revenue Streams
How many agencies do you know of that monitor the
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possible that the development of web applications, mobile
technologies and solutions and embracing new approaches to
customer relations will open doors to new revenue streams.
We are an entrepreneurial agency that is geared towards
helping to identify those opportunities.
MEMBERSHIPS / MERCHANDISE AND SUPPORT
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prioritize resources and UIs.
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ADVERTISING / SPONSORS
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platforms.
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DIRECT SALES
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interaction.
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management.
page 16
Retention: Actionable Metrics
MEASURE ONLY WHAT YOU CAN ACT ON
WHAT MAKES USERS RETURN?

Without effective retention and devices to excite users,
real growth may be exponentially reduced. We can help
to develop and execute on retention plans:
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Metrics are actually vital to conversations. Systems,
processes and technologies can get as sophisticated as your
requirements will allow. Its all changing constantly. There
are some common sense rules to guide you:
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way that is usable:
2. Hypothesise customer life cycle
3. Test, measure iterate and improve
4. Target conversion metrics that are actionable

METRIC Conv. % Est.Value

Site Visits 100% $0.01

Acquisitions
Not Abandon 70% $0.05

Successful 1st 30% $0.25

Retention
Viral Activity 5% $2.50

Refer 1+ users 3% $2.00

Referral
Refer 10+ 0.2% $15.00

Minimum 2% $5.00
Revenue
Break Even 1% $30.00

The Evolution of Marketing into Rational Conversations page 17

Beauty of APIs Partnerships
Increasingly, companies are building products and services With hundreds of potential partners on the web, effective
as composites of the products and services of others. In the channel marketing is based on building deep symbiotic
digital world, this practice is rapidly accelerating. relationships with the right partners.

Application Programming Interfaces, or APIs are commonly We can help your management team to plan and prioritize
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along web services. In the simplest terms, it means that parts of
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components from other companies. The terms may be published
along with the codes for access, so no negotiation is needed to make
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things work. The value of this can not be underestimated. ‹7YPVYP[PaLHUKKLÄUL!\ZLYZJOHUULSZHUKJVZ[Z
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your marketing strategy.

The Evolution of Marketing into Rational Conversations page 18

 Integrated Marketing Campaigns
Social Media Planning and Implementation
Development of Web Sites and Web Applications
Public Relations
SEO/ Paid Search
Multimedia Content Development
Events
Naming and Branding

Contact: David Shantz 415.455.0995 ext. 401

1800 Washington Street, San Francisco, CA 94109 www.magnity.com