How to Build Successful Cross Media Programs Perianne Grignon Vice President, Media Services Sears Holdings Corporation 1 Clients are seeking a better marketing product New New ways ways of of thinking thinking New New ways ways of of engaging engaging our our customers customers Creating Creating new new assets assets 2 Online media usage is growing at SHC 60 50 40 30 Online $MM 20 Non-search 10 0 2006 2006 Going- Final in 2007 Goingin 2007 Final 2008 Goingin % Spend 3 The mix of online media is broadening 100 90 80 % of Online Spend 70 Converged 60 Portals & Ad Networks Behavioral Targeting 50 40 30 Advanced Targeting 20 10 $MM 0 2006 Going-in 2006 Final 2007 Going-in 2007 Final 4 How did we get here? • • • • • Organization shift Senior Management Endorsement Cultural change Hired talent Developed Partnerships Internally & Externally • Made some good decisions • We measured our progress 5 What we have learned • • • • • • Hire the best talent Invest in education Evolve the media currency Focus on Goal Alignment External Partners are growing & learning too Focus efforts across the purchase funnel 6 Engage customers throughout the purchase funnel Awareness Consideration Magazine, TV, Catalog, Online Website A Few Hours to A few years TV, Radio, Direct Mail, Website, Preprint, Catalog, Online, Credit, Email, Search 1-5 Days TV, Radio, Direct Mail, Website, Preprint, Online, Email, Credit, ROP Store Experience Now Promotional Program, Bounce Backs, Adjacency In-store up sell, Now Trial Purchase Cross-sell Loyalty Direct Mail, Online, Website, Data capture, Store Experience, Email Lifetime 7 Success metrics vary across the funnel Awareness Qualitative Studies Consideration Qualitative Studies Trial Visits, Engagement metrics Purchase Sales, Margin, Revenue Cross-sell Loyalty Category Sales Opt-ins, transaction trends 8 Three case studies New New ways ways of of thinking thinking New New ways ways of of engaging engaging our our customers customers Creating Creating new new assets assets 9 New ways of thinking 10 Why Yahoo! as a cross media partner? Fall of 06: • Relationship was Purely Transactional • Technology Capabilities • Scale - 70% of global Internet population • Culture dedicated to Strategic Goal Alignment • Experience and Know How Awareness Consideration Trial Fall of 06 Purchase Cross-sell Loyalty 11 Media Impression Spill Audience Segments The Long Tail approach to media Mass Hand Raisers Today: 95% Tomorrow: 60% Passionates 5% 25% 0% 15% # of people that began a DIY project in the past 12 months – 57 million Audience # of M 18-49 on Y! Mail in a month - 23,821,000 # of M 18-49 on Y! that participated in woodwork or carpentry in the last 6 months - 3,917,000 # of monthly searches on Yahoo! for “Craftsman” -25,707 # of monthly searches on Yahoo! for “Tools” - 1,751,805 # of pictures tagged “Tool” in Flickr- 121,086 # of “Tools” groups – 10,235 # of questions pertaining to “Tools” in Yahoo Answers -14,645 # of members in “The Real Craftsman Club” group for Craftsman and Sears owners 1,716 Engagement Source: comScore Media Metrix, October 2006; AIM, Summer Release 2006 and Internal Yahoo! Data 12 Behavioral targeting to Craftsman audiences •Associate “KnowHow” training (Sears & Kmart) •Craftsman. com is the hub for DIY Know-How •Know-How innovation Stations •Yahoo/Craftsman communities InStore Online •CraftsmanYahoo! DIY Page •Official tools of NASCAR Partnerships INSPIRING KNOW HOW Products Nascar Marketing •Evolution of the Craftsman Club: Club Experts, Project Suggestions, New Tool Exclusives •80 years of knowhow campaign •Today- Know-How Inspired Products: Cross Force Compu-Carve, & Edger/Blower •Tomorrow- Project Planning Blue Prints Customer Services • Online Advisor which tool, when, etc • After sale: Craftsman Help Line • Craftsman Delivery Trucks 13 The Holiday 07 Challenge Engage consumers to be on the alert for special short-window time periods to realize extra savings and incredible deals to help make holiday wishes come true. 14 Bringing it all together – The Holiday Wishing Hub “Bix” “Bix”polling pollingmodule moduletotogenerate generateconsumer consumer interaction interactionwith withtop topgift giftitems itemsacross across66 categories categories Video Videomodule moduleplays playsweb webversions versionsofofTV TV ads and links to other “Wish” videos ads and links to other “Wish” videos Static Staticpanel panelwith withactive activelinks linkstotoSears.com, Sears.com, weekly updates to drive opt-ins to weekly updates to drive opt-ins todatabase, database, and andsweeps sweepsentries entries Yahoo YahooAnswers Answersfeature featureabout about“Wishing” “Wishing” and andgifting giftingfor forthe theHoliday Holidayseason. season. Rotating Rotatingad adunit. unit.Launch Launchphase phaseon onunit unit designed to capture Wishes. designed to capture Wishes. Downloadable DownloadableWishing WishingHours Hourswidget widgetand and countdown countdowntotonext nextWishing WishingHour. Hour. Links Linkstoto Sears.com Sears.comtotodownload downloadwidget. widget. Yahoo Flickr module enables visitors to view Yahoo Flickr module enables visitors to view and share Holiday and “Wish” themed and share Holiday and “Wish” themed photographs with others. photographs with others. 15 Wishing Hours Results • Drove approx. 500M new customers • 60% engaged at a higher level by entering the sweepstakes • Drove a positive ROI 16 Expanded touch points Awareness Consideration Trial Purchase Cross-sell Loyalty 17 New ways of thinking Follow Follow Consumer Consumer Behavior Behavior Full Fullcomplement complementof ofOnline: Online: Banner, Banner,Video, Video,Photos, Photos, Voting, Voting,Answers Answers Targeting Targeting the the right right audiences audiences Long Longtail tailplanning planningleveraging leveragingY! Y! &&Sears’ Sears’customer customerdata data Delivering Delivering relevant relevant Messages Messages Build Buildbetter betterpromotional promotionaloffers offers and andstep-up step-upcreative creativeproduction production Accountable Accountable measurement measurement Daily Dailyscore-carding score-cardingdrove drove Holiday Holidaycontingency contingencyplan plan 18 New ways of engaging our customers 19 A behemoth marketing partnership TV Show, Custom Creative Cause-Related, Online-Micro Site Website Authentic Embedments Website, Preprint, Online Micro Site Awareness Consideration Trial Advertising, Website, “as seen on” Purchase In-Store, Experiential Events Cross-sell Loyalty 20 Rich Micro Site 21 Fall 07 – Launch a new Brand http://www.managemyhome.com New Sears Holdings Brand that lives on the web • • • • File-cabinet for all the working parts of your house Basic repairs and maintenance Ideas & Know-How Big ideas about remodeling 22 Traffic & registration lifts 4000 14.0% 3500 12.0% 3000 10.0% 2500 8.0% Substantial increase in traffic and conversion rate WTW 2000 Visits Conversion rate Sun., Oct. 7 3,893 13.4% Sun., Sept. 30 2,623 5.0% Change +48% +168% 6.0% 1500 4.0% 1000 500 2.0% 0 0.0% 9/30/2007 10/1/2007 10/2/2007 10/3/2007 10/4/2007 Visits 10/5/2007 10/6/2007 10/7/2007 10/8/2007 10/9/2007 Co nv. Rate 600 500 400 300 200 100 0 Sunday, October 7 Hourly Traffic 9/30/2007 10/1/2007 10/2/2007 10/3/2007 10/4/2007 10/5/2007 Registratio ns 10/6/2007 10/7/2007 10/8/2007 10/9/2007 Registrations increased 301% WTW, from 130 on Sunday, Sept. 30 to 522 on Sunday, Oct. 7 Traffic spike driven between 7pm and 12 am Central time 23 Deeper user engagement 200 180 160 140 120 100 80 60 40 20 0 9/30/2007 10/1/2007 10/2/2007 1-2 categories 10/3/2007 10/4/2007 3-5 categories 10/5/2007 6-10 categories 10/6/2007 11-15 categories 10/7/2007 10/8/2007 10/9/2007 16-20 categories Depth of home profiles created increased significantly starting on Sunday •33% of Sunday new members creating home profile populated at least 3 home profile categories •Average percentage of new members creating home profile with at least 3 categories: 3% 1,200 1,000 800 600 400 200 0 9/30/2007 10/1/2007 10/2/2007 10/3/2007 10/4/2007 10/5/2007 M anual search visits 10/6/2007 10/7/2007 10/8/2007 10/9/2007 Product Manual searches increased 70% WTW, from 536 on Sunday, Sept. 30 to 911 on Sunday, Oct. 7 24 New ways of engaging our customers Drive Drive Consideration Consideration We’ve We’vere-invented re-invented&&elevated elevated “product “productplacement” placement”together together Deepen Deepen Customer Customer Relationships Relationships AAdeep, deep,rich richmicro-site micro-sitebacked backedup upby bythe the sears.com sears.com shopping shoppingexperience experience Multi-channel Multi-channel Marketing Marketing Platform Platform from from--Gate-keeper Gate-keeper to to--Partner Partnerrelationship relationship Authenticity Authenticity Two Twocore corebeliefs: beliefs:pay payoff offSears SearsBrand Brand Positioning Positioningand andthe theViewer ViewerExperience Experience 25 Creating new assets 26 The climate was cloudy Sears in August 07 • Not buying NFL games • Buying Sports only opportunistically • The tide was moving against doing a big converged deal: • Online media was shifting away from cross-media deals to Advanced Targeting projects 27 A focused solution • Leveraged knowledge of the retail calendar • Built a new, multi-channel asset • TV • Online • Associates • Cause - related 28 NFL Network Sponsorship: Total Access On-Location…presented by Sears Add screen shot of pre-game w/ Sears signage 29 NFL.com Thanksgiving Week Sponsorship 728x90 Sears Leader board 50% SOV Customized sponsored page header 100% fixed placement :15 Pre roll ad placement w/ 300x60 companion ad 100% SOV Bonus sponsorship of Exclusive Thanksgiving week POLL w/ custom Sears brand integration 30 Heroes at Home launch platform 31 Multi-channel NFL MEDIA SPONSORSHIP CALENDAR 2007 SEPT OCT Kickoff 2007 Holiday Décor Apperal Home HomFassions, Fashions, HE, Trim shop, HHG, Paint HE, Christmas Thanksgiving HA, Apperal, HE, SAC, HE, HE Tools, HHG, Tools, Tools, HA, Tools, Apperal, FJ, Home Apperal, Toys Apperal, Toys/Game, NOV Last Minute Gift Ideas HE Tools, HE Tools, Apperal, FJ, Apperal, FJ, Toys/Game, Toys/Game, DEC Thanksgiving 2007 Post X-Mas HHG, Apperal, FJ, HA, Tools, JAN FEB PLAYOFFS Customized Sears PSA/Vignettes Countdown to Kickoff SEARS PRE-GAME SHOW IN-STORE FEATURE SEGMENTS BLACK FRIDAY ROADBLOCK NFL SUNDAY TICKET HOLIDAY PACKAGE THANKSGIVING WEEK/CYBER MONDAY/HOLIDAY 32 Integrated messaging 33 Zero to big in 6 weeks NFL Network on-air & Online Pre-Game Sponsorship Of Thursday Night Football Awareness Sears Holdings Cause - related Hero’s at Home Vignettes Associate awareness Consideration Trial Media Buy across TV & Online Black Friday & Cyber Monday Sponsorship Purchase Cross-sell Loyalty 34 Creating new assets Breakthrough Breakthrough Cause Cause Related Related Associates Associates New NewThanksgiving Thanksgiving&&Thursday Thursdaynight night Marketing Marketingasset asset Authentic AuthenticFit Fitbetween betweenSHC SHC&&The TheNFL NFLNetwork Network Enthusiasm Enthusiasm&&Pride Pride 35 Score-card New New ways ways of of thinking thinking Actionable ActionableLong-Tail Long-Tail Marketing Marketing Solution Solutiondelivered deliveredby by capabilities capabilities New New ways ways of of engaging engaging our our customers customers Creating Creating new new assets assets New NewWeb WebBrand Brand Launched Launched Within WithinAuthentic Authentic TV TVContent Content Know Knowthe theMarketer’s Marketer’s Objectives Objectives Bring Bringititall allTogether Together 36 Looking forward New New ways ways of of thinking thinking Blow-Up Blow-Upthe theRFP RFP what whatpart partof ofthe the purchase purchasefunnel funnel are arewe wetrying tryingto to drive driveto? to? Do Dothe thesuccess success metrics metricsmatch-up match-up with withthe the objectives? objectives? New New ways ways of of engaging engaging our our customers customers Creating Creating new new assets assets Think Thinkbeyond beyondthe the media mediabuy buyto to the thebusiness business objectives objectives Create Createstickiness stickiness by bycreating creatingnew new content contentthat thatgoes goes beyond beyond sponsorship sponsorship 37 How to Build Successful Cross Media Programs Thank you! 38