Coffee and a Chat with Joanne Jacobs

Or, The Business Case for Transmedia

Joanne JacobsCOO, 1000heads | @joannejacobs

Image source: http://www.flickr.com/photos/wwworks/2896811680/in/photostream/

Session Promise

To discuss the perception of transmedia by the business worldTo acknowledge the role of recommendations in developing trustTo show how social channels can be used to shape programmingTo identify new ROI metrics for transmedia strategies

Image source: http://www.flickr.com/photos/thomasvdb/379546998/

Transmedia

Image credit: http://deanashour.wordpress.com/2011/04/13/reflective-blog-on-interactivity-transmedia-storytelling/ Ownership of image not specified.

Transmedia and business

Transmedia in business

Leaving aside the fact that no-one in business uses the term ‘transmedia’…

Business doesn’t yet understand how to make use of multiplatform experiences

Multiplatform or 2 screen experiences often (wrongly) considered as merely ‘another marketing channel’

Image source: http://ansonalex.com/infographics/social-media-usage-statistics-2012-infographic/#infographic originally posted by OnlineMBA.com

Inhibitors to success

Difficult for traditional media people to drop broadcast mentality

Difficult for marketers to resist controlling messages

Difficult for business to grasp that sales is not the only way to optimise business and generate profit.

Image source: http://www.flickr.com/photos/kevenlaw/2285791176/

Value of transmedia

• Spreads the burden of content development

• Reduces the risk of programme investment

• Reduces the cost of (traditional) marketing

• Optimises experience for consumer/producer, encouraging greater content loyalty

Image source: http://www.flickr.com/photos/wwarby/5157714032/

THIS MEANS…

You don’t make money from transmedia.

You save money with transmedia.

Image source: http://www.flickr.com/photos/17258892@N05/2588346772/in/photostream/

AND…

Businesses LIKE to make money.

Image source: http://www.flickr.com/photos/calliope/2207307656/

SO…

How do we make transmedia

more appealing to business?

We need to better articulate ROI.

Image source: http://www.flickr.com/photos/zanotti/281538625/

Value – some definitions

Value: benefit from a good/serviceUtility: aggregate sum of satisfaction or benefit that an individual gains from consuming a given amount of goods/servicesPrice: market rate at which goods/services are exchangedEconomic cost: amount paid for a good/service when compared with alternatives. This includes total, variable, fixed, marginal and opportunity costs.

ROI is based on economic costs, not value or utility.

Image source: http://www.flickr.com/photos/unleashcreativity/2877558527/

Transmedia saves money

ROI of transmedia is drawn from

opportunity costs –cost to business of

failing to adopt next best option

and from variable costs – expenses that change in

proportion to the activity of a business

Image source: My wallet and phone.

Business optimisation

The ROI of transmedia is in business optimisation.

The ROI of transmedia among users is quality of information and participation.

Image source: http://www.flickr.com/photos/42843806@N00/8209826047/

So….

Businesses will adopt transmedia when it’s what competitors are doing.

And….

Businesses adopt social strategies because it’s cheaper market research/product

development/supply chain management than existing processes

Image source: http://www.flickr.com/photos/jeffanddayna/5067383625

The value of recommendations

Recommendations culture

• Content industries traditionally influenced by recommendations

• Increased trust on recommendations as a source of purchase decisions

• Growth of social tools encourages expression of recommendations

Why Social Media Exists

• Decline in trust of corporate sources

• Need for specialised information

• Understanding that expertise is located around passionate individuals, not necessarily around paid endorsers

Image source: http://www.flickr.com/photos/christopherdombres/4462311122/

Trust

Trust is generated through a history of voluntary

contributions of useful, reliable

information

Image source: http://www.flickr.com/photos/vagawi/3155400274/

Stories as Sources of Trust

Most valued contributions of information come from people you know

Stories of experiences are the most likely vector of such information

Image source: http://www.flickr.com/photos/ckovalev/463141632

Influencers

People near youPeople you respect

Both develop a history of

interactions based on trust

Image source: http://www.flickr.com/photos/36821100@N04/3896331106/

Recommendation effect

Content that is:• Augmented by a recommendation system;• Promoted by influencers

…. Generates trust and loyalty in the content brand, potentially increasing ‘sales’.

…. HAPPY BUSINESS.

Image source:

Collaborative content development and business

Collaboration

Business proposition for collaboration is in creating buzz

Not used to the idea of changing programming content on the basis of audience interactions!

Image source: http://www.flickr.com/photos/aussiegall/345009210/

True value of collaboration

Forging trusted networks

Content interactions as a source of continuous improvement of programming

Audience directed content development

Generating loyalty

Image source:

What we should be saying

Collaboration generates:•Value: great content for all platforms. •Utility: involvement, engagement, communities, participation.•Increased price for content: as loyalty rises, likelihood of revenue generation from content increases (merchandising, games, add-ons, etc).•Reduced costs of production: as content is developed collaboratively, there is less need for capital investment in content.

Image source: http://www.flickr.com/photos/jurvetson/916142

ROI Metrics for Transmedia

ROI metrics for transmedia

• Interaction complexity (2-3 competitions)

• Community sentiment• Cost per acquisition• (Reduced) costs of

content development• Opportunity costs of

isolated (traditional) media

• NOT fans, number of platforms, number of interactions, brand recall, views/visits, etc.

Image source: http://www.flickr.com/photos/aussiegall/5198365474/

Delivery of Session Promises

Discussed the perception of transmedia by the business world, and identified inhibitors to successExamined how trust arises from recommendationsShown how social channels can shape programmingIdentified new ROI metrics for transmedia strategies

Image source: http://www.flickr.com/photos/thomasvdb/379546998/

Joanne JacobsChief Operating Officer, 1000headsp: +61 2 9809 8966 m: +61 2 419 131 077e: joanne.jacobs@1000heads.comt: @joannejacobs

Questions

Unless otherwise specified, all images used in this presentation are Creative Commons under an attribution licence. All sources are identified.