The Convergence of
Consumer & Financial
B R A N D I N G
A Silicon Valley Perspective
Holland Carney
President
. Western Region
Alexander Ogilvy PR Worldwide
Consumer & Financial
“WALL STREET is
bombarding the public
with an unprecedented
marketing blitz -amplified by
the news media. The result:
Investing is becoming a high-
risk sport”
Everybody’s an Investor!
hWall Street advertising zoomed 95% last year to $
billion--3 times what it was 5 years ago
hThe percentage of investors investing online TRIPLED
from 1998 to 1999
h48% of Americans own stock today
hInvestors now hold an average Nasdaq stock for 5
months, vs. 2 years a decade ago
hBuy recommendations outnumber sells by 72 to 1. The
ratio 10 years ago was 10 to 1
hCNBC is to investors what ESPN is to sports fans!
NASDAQ
NASDAQ has become a global
consumer marketing medium.
“Correction
”
Bull Vs. Bear
“Slump
”
“Much Needed
Correction”
“Crash
”
“Temporary setback”
“Burst Bubble”
My 15-Year Old Brother
Will only consume
Pepsi products
because he owns
Pepsi stock
My 78-Year Old Grandmother
Bought her first stock
because she regularly
buys the products and
already has a deep
brand relationship.
Brand Loyalists = Shareholders
Stock Losers = Unhappy Customers
The Cost to Build a Brand
Venture capitalist John Doerr has been
quoted widely saying it takes $200 million to
build a brand in the New Economy.
$$ “Left on the Table”
Ope
nin
g
Pric
ing
$20
$80
$60
?
Left Billions on the Table
Source: The Red Herring
The New Economy Brand
“Internet public offerings, it turns out, are only
incidentally about raising money: They are mostly
desperate pleas for consumer attention.”
è Paul Kedrosky, an assistant professor on the faculty
of commerce at the University of British Columbia
Irrational Exuberance
“Investors are driven by impulse, herd behavior,
dinner party chatter, intuition, media hype, fear of
being left out -- everything, in short but informed,
reasoned analysis . . .Wall Street has literally become
embedded in our culture and everyday lives. The
effect of the media on investor psychology is
undoubtedly one of the driving factors behind the bull
market.”
è Robert J. Shiller, Author of Irrational Exuberance
May 8: $55
Ope
nin
g
Pric
ing
$16
$81
$65
0M
?
1,500
7,000
500
% i
ncr
eas
e in
dai
ly t
ick
et
sal
es
$5! Under Water!
Tanked “like yellow
carnations for a
wedding
anniversary”
- Motley Fools
Pric
ing
Ope
nin
g
$21
$14
Initial Public Offering
Under Water!
Employees, and
shareholders are upset . . .
NOW EVERYONE is aware!
0
10
20
30
40
50
60
70 Companies
1998 1999 2000
Successful IPOs Offerings postponed or withdrawn
…but with the drop in the stock markets in April, those
businesses may have more trouble going public.
S
ou
rc
es
: T
ho
m
ps
on
F
in
an
ci
al
S
ec
ur
iti
es
D
at
a/
V
en
tu
re
E
co
no
m
ic
s;
IP
O
.c
om
Graveyards and Dead Pools
Venture capital firms have been able
to raise more and more money...
Sources: Thompson Financial Securities Data/Venture Economics;
First 3 Months
0
10
20
30
40
$50 billion in commitments
‘85 ‘90 ‘95 ‘00
…and were pouring it into Internet-related*
businesses in the first quarter...
* Includes content,
e-commerce, hardware and services
Sources: Thompson Financial Securities Data/Venture Economics;
Non-Internet
billion
B2B
billion
Services/Other
billion
B2C
billion
Communications/
Infrastructure
billion
Total Invested: $ Billion
Henry Blodgett’s “After the Fall”
•AOL
•Yahoo
•Amazon
•PriceLine
•DoubleClick
•eBay
•CMGI
•Inktomi
•InfoSpace
“Most existing
Internet companies
won't make it out of
their childhood alive.
. . However . . . many
of the success stories
have yet to come
public.”
June 2000
Henry Blodgett’s “After the Fall”
1) Prospects of earnings soon
2) Plenty of cash
3) Defensible business model
4) Market leadership
5) Strong international agendas
6) Solid management and
7) Ability to benefit from the most powerful
trends on the Internet going forward: wireless,
broadband and interactive TV
“Never again, he says, will consumer
Net stocks carry the ‘any time, any
price’ aura about them.”
June 2000
Tokyo
Stock
Exchange
Hong Kong
Stock Exchange
London
Stock
ExchangeNASDAQ
NYSE Deutsche
Boerse
Global Stock Exchange Integration
Sources: the exchanges; International Federation of Stock Exchanges
Paris
Bourse
Sao Paolo
Australia
Stock Exchange
Asian Companies on NASDAQ
Source: The Red Herring
ImageImage GoodwillGoodwill
ProductProduct CustomerCustomer
VisualVisual ChannelChannel
Image
Degree to which
the brand’s image
is strong and
engaging
Product
Way in which the
performance of the
product supports
the brand
Visual
Does brand
present clear,
consistent and
differentiating
presence?
Goodwill
Extent that
brand is
endorsed by
influencers
and society
at large
Customer
Primary
opportunitie
s for the
customer to
be involved
with the
brand
Channel
Degree to
which the
brand is well
leveraged in
the trade
Relevance
Business Strategy
Employee
Communication
Shareholder
Communication
Awareness
Attitudinal
Rating
Individuals
Price
Decision Maker
Access
Telesales Center
Customer
Communication
Product
Repeat
Purchase
Taste
Free Trial
The Convergence of
B R A N D I N G
Consumer & Financial
