There's a lot of talk about paid, owned, and earned media, and just as much about content marketing. What if you could leverage your earned media, specifically user-generated content, to create more engaging, effective paid media? Meet "reality advertising" – an innovative solution that fuses earned content and paid media, creating highly targeted ads that stand out in the cluttered social and digital ad space. In a session led by House Party's Chief Product & Technology Officer, you'll see firsthand how the content consumer advocates create can be combined with state of the art data and targeting tools for more effective digital advertising.

1. DIGIDAY BRAND SUMMIT 2013
Reality Advertising:
How Brands can use Earned to create more effective Paid
Mike Hermus
Chief Product & Technology Officer
@mikehermus
@housepartyinc
DIGIDAY BRAND SUMMIT 2013
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© 2013 House Party, Inc.

2. Consumers are bombarded with brand
messages, making it harder for digital ads to break
through
@mikehermus @housepartyinc
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3. Some newer channels are showing promise
in reaching consumers but…
0.58
0.11
Facebook news feed ads
@mikehermus @housepartyinc
Typical display ads
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4. Study after study confirms that earned is #1 in
terms of consumer trust
Degree of consumer trust in the following forms of advertising*
Recommendations from people known
Consumer opinions posted online
Brand websites
Editorial content (e.g., newspaper article)
Emails signed up for
Brand sponsorships
TV
Magazines
Billboards/outdoor advertising
Newspaper
Radio
Ads before movies
Search engine results ads
Online video ads
Online banner ads
Display ads on mobile devices
Text ads on mobile phones
58%
58%
50%
47%
47%
47%
47%
46%
42%
41%
40%
36%
33%
33%
Source: The Nielsen Company (April 2012)
29%
0%
@mikehermus @housepartyinc
92%
70%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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5. The challenge for marketers
Creating earned with
the scale and targeting
of mass media
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6. What if you could…
Combine the scale &
targeting of digital media
with the power and
effectiveness of earned
content/consumer
to consumer content?
@mikehermus @housepartyinc
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7. Introducing… Reality Advertising!
“Reality Advertising is an
innovative solution that
uses earned content as
creative for paid
media, producing highly
targeted ads that stand out
in the cluttered social and
digital ad space.”
@mikehermus @housepartyinc
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8. What’s at the core of Reality Advertising? UGC!
A user generated image of a positive product experience
is memorialized recommendation for all to see
Relevant
Resonant
Authentic
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9. Make that content the centerpiece of a digital ad
campaign
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10. THREE QUESTIONS YOU’RE
BOUND TO ASK
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11. 1. HOW DOES IT RELATE TO
CONTENT MARKETING?
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12. Typically, it’s the marketers creating the content
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13. In reality advertising, the consumer creates the
content for you
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14. 2. HOW DOES IT RELATE TO
NATIVE ADVERTISING?
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15. Native advertising is all about the format
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16. Reality Advertising is about the content
Reality Ad—Non-Native Format
Reality Ad—Native Format
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17. 3. WHY IS IT CALLED REALITY
ADVERTISING?
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18. Reality TV and Reality Ads are both rooted in real
people having real experiences
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19. How Reality Advertising differs from Reality TV?
Authenticity
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20. @mikehermus @housepartyinc
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21. Bringing Reality Advertising to life starts with real
consumers sharing real stories
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22. 1. Identify your advocates
Driving successful advocacy starts with finding the right people...
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23. 2. Give them a great experience
The party was a success! I am in love with my new
SodaStream. My Mom already bought one. My sister and
my Aunt are planning on buying one. Everyone loved it!
The kids thought the process was really neat with the
sounds and bubbles. The boys loved the sidewalk
chalk, beachball, visors, and the water balloons provided
in the kit! Even the adults got in on some of the fun. We
played games, ate dinner, and enjoyed fresh drinks in so
many different flavors all day long!!
—chantalmalfoy
@mikehermus @housepartyinc
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24. 3. Provide the tools to capture and share UGC
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25. 4. Make sure you have permission
Pick the right platform
Mind your Ts & Cs
Opt-ins are your friends
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26. YOU HAVE THE
CONTENT,
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NOW WHAT?
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27. Take that content and execute a digital
ad campaign!
Identify brand
objectives/goals
Develop ad units and copy
Curate the content
Set appropriate audience
targeting
Pick your channel/platform
Optimize!
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28. Optimization in more detail
Current Technology is very powerful
But you need options to optimize against
User-generated content can provide
lots of options
“Know, don‟t guess”
@mikehermus @housepartyinc
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29. Reality Advertising: The Results
+190%
+75%
+66%
+18%
+15%
Click-Thru Rate
Engagement Rate
Post Likes
Standard Creative
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Page Likes
Photo Views
UGC
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30. Maximizing Impact: Photo Posts
+313%
+136%
+76%
+34%
Click-Thru Rate
Engagement Rate
Post Likes
Standard Creative
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+23%
Page Likes
Photo Views
UGC
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31. What about the top performing ads?
Click-thru rate of 2.1%
Non-click engagement rate of 3.6%
Total post engagement of 5.7%
Approximately 90% better than
standard creative
@mikehermus @housepartyinc
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32. For each $ spent on UGC vs. stock assets, brands
received:
1.2 times as many page likes
1.3 times as many post likes
1.8 times as many clicks
1.8 times as many conversions
4 times as many photo views
@mikehermus @housepartyinc
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33. Key takeaways
„Reality Advertising‟ is all about the content—but it is user generated
content captured from authentic experiences—the ability to
create/find/capture this content is critical
Campaigns can be executed in any channel or format that provides a large
enough viewable image. Native social formats are a natural fit, but by no
means the only option
Optimization can really be leveraged when you have a lot of good quality
UGC to choose from—get 100 images and let the data quickly tell you
which resonates with your target audience
The results speak for themselves— “Authenticity Trumps Perfection”:
significantly more clicks, more conversions, and more engagement per
dollar spent
@mikehermus @housepartyinc
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34. Thank You!
DIGIDAY BRAND SUMMIT 2013
Mike Hermus
Chief Product & Technology Officer
@mikehermus
@housepartyinc
about.houseparty.com
© 2013 House Party, Inc.
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