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The new paradigm:
Seeing is believing


Allowing the consumer to experience the product

Nov 12, 2009

Earlier this week, Microsoft and mobile media company JiWire began a promotion that offers visitors to airports and hotels across the country access to free WiFi in exchange for performing one search with Microsoft's recently launched search engine, Bing. That's merely the latest instance of companies pushing people to experience their product digitally in order to sell it, and it's a strategy that apparently works. A new study from Razorfish, a digital agency, finds that two-thirds of so-called connected consumers, those with broadband who spend money online, say that a digital brand experience impacted their perception of a company, either positively or negatively. Nearly all, 97 percent, of those respondents say that experience ultimately influenced their decision to buy or not buy a product. The lesson seems to be that the days of talking at consumers is over; these days, people want to interact with a brand rather than just hear about it. Garrick Schmitt, group vice president of experience planning at Razorfish, talks to Media Life about how advertisers can create digital brand experiences, what their value is, and why they matter.

What did you find most surprising or most interesting about this study?

Digital brand experiences create customers. The overwhelming majority of consumers who actively engage with a brand digitally are much more inclined to purchase products and recommend the brand to others.

Moreover, 65 percent of consumers report that a digital brand experience changed their perception of a brand and, of those, 97 percent report that a digital brand experience ultimately influenced whether or not they purchased a product.

Pretty heady stuff for those who create experiences.


What is the most important thing media buyers and planners can take from it?

Experiences are the new advertising. Conventional wisdom holds that traditional advertising is failing, but that’s not really the case. It’s just that experiences (particularly digital experiences) have really captured the imagination of consumers.

To succeed, brands need to do something, not just say something. And, based on our findings, consumers will most certainly engage if the experience is either interesting or unique enough.


What have been the biggest changes you've seen in the years you've done the study? Why?

Consumer wants to interact with brands — everywhere, including social networks. The myth of consumers running from brands or opting out of branded experiences via technology is just false.

Seventy-three percent have posted a product or brand review on a web site like Amazon, Yelp or Twitter, 70 percent have read a corporate blog, 65 percent have played a branded browser-based game and 40 percent have “friended” a brand on Facebook. These interactions are shaping their perceptions of the brand.


What is the general profile of a "connected consumer?" How do they differ from others?

Connected consumers mirror the U.S. broadband population. In August 2009, Razorfish surveyed 1,000 U.S. “connected consumers” across four major age groups.

We focused on “connected consumers” because this is the demographic our clients care most about; they are defined as consumers who have broadband access, regularly spend money online, and who actively consume or create digital content.


How can a digital experience influence a person's purchase of a service or brand? What are some common negative experiences that advertisers should try to avoid?
 
Does the digital experience live up to the consumer’s expectations of a brand? Or does it exceed it? If you are buying a luxury vehicle and the brand’s web site or dealer’s web site is lackluster, or the advertising tacky, would you feel good about making that purchase? Probably not.

The same goes for any brand today, in any category. That’s why Amazon excels in customer service (not marketing) and why Virgin America, Red Bull and even Microsoft’s Bing are succeeding. Experiences matter. A lot.


Why do consumers have a desire to interact with brands online? What is the payoff for them?

Consumers have a desire to interact with brands, period. Brands are deeply ingrained within our culture, and our findings show just how much consumer already engage:

- 97 percent have searched for a brand online;

- 77 percent have watched a commercial on YouTube;

- 69 percent have read a corporate blog;

- 65 percent have played a branded, browser-based game;

- 73 percent have posted a product or brand review on a site like Amazon, Facebook or Twitter.


How does the digital space facilitate dialogues that are not possible offline?  

Digital scales. An offline event can only draw so many people into one specific physical location. But online allows you to achieve global scale through the creation of engaging experiences (think virtual fashion shows, streaming entertainment events, etc.) and — most importantly — word of mouth.

Twitter is a testament to this. There is simply no better way to reach a truly global audience than to create something great and let people experience it, then share it.



Diego Vasquez is a staff writer for Media Life.




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