This is the first report from our upcoming People's Insights Annual Report titled “Now & Next: Future of Engagement”, also available as a Kindle eBook and soon as an interactive iPad app. The report will highlight the ten most important frontiers that will define the future of engagement for marketers, entrepreneurs and changemakers: Crowdfunding, Behavior Change Games, Collaborative Social Innovation, Grassroots Change Movements, Co-creation Communities, Social Curation, Transmedia Storytelling, Collective Intelligence, Social Live Experiences and Collaborative Consumption.
In each of these reports, we start by describing why they are important, how they work, and how brands might benefit from them; we then examine web platforms and brand programs that point to the future (that is already here); then finish by identifying some of the most important features of that future, with our recommendations on how to benefit from them.
Do subscribe to our email newsletter to receive an invite to download a free copy of the interactive iPad app.
Find out more: http://peopleslab.mslgroup.com/peoplesinsights/future-of-engagement/
Get the Kindle eBook: http://www.amazon.com/dp/B00D8ZZMDY
2. We are delighted to share that we will be
publishing the People’s Insights Annual
Report titled “Now & Next: Future of
Engagement” in January 2013 as an interactive
iPad app. The report will highlight the ten
most important frontiers that will define
the future of engagement for marketers,
entrepreneurs and changemakers:
Crowdfunding, Transmedia Storytelling,
Social Curation, Behavior Change Games,
Grassroots Change Movements, Collaborative
Social Innovation, Crowdsourced Product
Innovation, Collective Intelligence, Social
Recommendation and Hybrid Reality
Experiences.
Throughout 2012, 100+ planners on
MSLGROUP’s Insights Network have been
tracking inspiring web platforms and brand
programs at the intersection of social data,
citizenship, crowdsourcing and storytelling.
Every week, we pick up one project and
curate the conversations around it — on the
MSLGROUP Insights Network itself but also
on the broader social web — into a weekly
insights report. Every quarter, we compile
these insights, along with original research
and insights from the MSLGROUP global
network, into the People’s Insights Quarterly
Magazine. Now, we have synthesized the
insights from our year-long endeavor in future
scanning as foresights into the future of
engagement.
We believe, like William Gibson that, “the
future is already here; it’s just not very evenly
distributed.” So, innovative web platforms
in the areas of social data, citizenship,
crowdsourcing and storytelling point towards
interesting possibilities for brand programs
that leverage similar models to engage
people. In turn, the web platforms and brand
programs of today give us clues to the future
of engagement tomorrow.
In our reports on the ten frontiers that will
define the future of engagement, we start by
describing why they are important, how they
work, and how brands might benefit from
them; we then examine web platforms and
brand programs that point to the future
(that is already here); then finish by identifying
some of the most important features of that
future, with our recommendations on how to
benefit from them.
For the next ten weeks, we will publish
these reports one by one, then present them
together, in context, as an interactive iPad app.
Do subscribe to our email newsletter to receive
each report and also an invite to download a
free copy of the interactive iPad app.
People’s Insights Annual Report
3. 3
What is Crowdfunding?
Crowdfunding involves people coming together
to collectively fund projects they are passionate
about and help bring them to life. Crowdfunding
has been used to support a wide variety of
projects, including disaster relief, citizen
journalism, political campaigns, startups, art
(music, movies and books), game development,
scientific research and causes. In return, funders
receive a reward, which might include a product,
a customized experience, equity or simply
recognition, depending on the type of project.
Microlending platforms like Kiva (video), peer-to-
peer lending platforms like Prosper and micro-
donation platforms like DonorsChoose (video) can
be considered to be predecessors to crowdfunding
platforms. However, crowdfunding in its present
form can be traced to the inception of platforms
like indiegogo (video) in 2008 and Kickstarter
(video) in 2009, both of which connect people
to creative projects in need of funds. It entered
mainstream consciousness in 2012, when several
projects on Kickstarter and other crowdfunding
platforms raised more than $1 million each – and
up to $10 million – in funding. These include
technology gadgets like e-paper watch Pebble; a
music record and tour by Amanda Palmer; gaming
projects like gaming console Ouya; and even a
community center in Glyncoch, Wales.
The success of such crowdfunding projects
shows that people are willing to offer financial
support to people and projects they believe
in, and has created a new model for artists and
entrepreneurs to fund their projects.
Source: p22earl on Flickr
How Does Crowdfunding Work?
On most crowdfunding platforms, a creator
(an individual or a group) pitches a project to
the community and asks for small amounts of
funding. Then, the creator and the community
promote the project on the crowdfunding
platform, on the social web, and in mainstream
media, to gather support for the project, and
help it reach the funding goal within a specified
duration.
Successful creators often have a clear plan for
completing their project and a public history of
successfully completing similar projects, backed
up by links to project website and personal social
network profiles. By launching the crowdfunding
project in public, creators back up their projects
with their reputations.
Most backers support crowdfunding projects
based on trust, to help their friends or public
figures they have long admired create something
meaningful. Others are inspired by the newness
of the idea or the rewards promised by the
project, such as backstage passes for a concert
or being included in a film’s credits. Yet others
are attracted to the idea of co-creating the
project, by having insider access to updates and
the ability to contribute their own ideas to it.
Crowdfunding platforms offer creators more
than just money. They also help creators test
their ideas in public, build a strong community
that supports them and spreads the word,
and gain visibility on the platform itself, on
social networks, blogs and sometimes even
newspapers and television.
People and brands put
their money where
their mouse is.
4. View the full infographic at intuit.com
View the full infographic at pleasefund.us
View the full infographic at intuit.com
As Stephan Angoulvant, design director at texting
printing company Lumi, shared:
“For us, Kickstarter has been a powerful tool to
connect with a community passionate about
our work, to help us collect critical insight, and
to provide a time line that helps us organize our
activities as we grow our project.”
Platforms offer one of two funding models: ‘all or
nothing’ in which the creator only gets the funds
if the project reaches the funding goal, and ‘keep
it all’ in which the creator gets whatever amount
the project has raised, irrespective of whether
it has met the funding goal. Over time, three
distinct models of crowdfunding have emerged,
focused on donations, lending and investments.
As crowdfunding becomes mainstream, we are
beginning to see niche crowdfunding platforms
targeting specific geographies, funding models
and types of projects. Pozible (video), Zeczec
and WeFund focus on diverse projects in
Australia, Taiwan and the U.K. respectively.
ArtistShare (video) focuses on music projects,
CrowdRise (video) and Razoo (video) on non-
profits, LoudSauce (video) on meaningful ads,
GiveForward (video) on patients, GoFundMe
(video) on personal projects, SpaceHive (video)
on public spaces, Credibles (video) on food
businesses, and Crowdfunder (video) and
CrowdCube (video) on startups.
Crowdfunding for Brands
Several brands have used crowdfunding
principles in their programs to connect their fans
with worthy projects and non-profits (targeting
backers), and to encourage fans to start their own
projects and catalyze positive change (targeting
creators).
In the most popular model, brands ask their
employees, customers or fans to vote for eligible
non-profits to receive philanthropic grants. Many
brands also enable the community members to
directly back the non-profits by volunteering or
donating money. Several brands have launched
recurring programs that follow this model,
which include Chase Community Giving (video),
American Express Members Project (video), and
Starbucks Vote.Give.Grow.
In another popular model, brands ask their fans to
act as changemakers by creating their own projects
and gathering support from their networks to
qualify for funding. Not only do these projects
receive funding, but also visibility from the brand
and its community members, and support from
the brand and its employees to realize and scale
the idea. Branded programs that follow this
model include the Pepsi Refresh Project (video),
Benetton’s Unemployee of the Year (video) and
Mahindra Group’s Spark the Rise (video).
Both of these types of crowdfunding programs
tap into the same dynamics as the crowdfunding
platforms. Brands provide change makers and
non-profits the opportunity to connect with a larger
community, and offer their fans a range of projects
that match their passions. Changemakers and
non-profits activate their networks to support the
5. 5
projects, and keep backers engaged with updates
on progress during the fundraising period. The
brand provides credibility and visibility, beyond
funding. Finally, brands rely on the wisdom of
crowds to identify projects to fund, and fans feel
affinity not only for their favorite projects, but also
for the brand for creating the platform to support
them.
Crowdfunding case studies
Throughout the year, we have tracked the
conversations around a number of crowdfunding
platforms and branded crowdfunding programs
in our weekly insights reports and quarterly
magazines; here are a few highlights.
Crowdfunding platform: Kickstarter
Read the full case study on our blog or on
Slideshare
Source: kickstarter.com
Kickstarter is the largest U.S. crowdfunding
platform, empowering artists and engineers to
raise funds from individuals.
Mike Bulajewski, a user experience designer,
described Kickstarter as:
“A place where artists and engineers can connect
with the people in direct peer-to-peer relationships
who aren’t just buying entertainment, they’re
helping make dreams a reality.”
Kickstarter focuses on funding of creative
projects and fills a gap that was created by the
slow economy and budget slashes. As journalist
James Reed observed in the music industry:
“As the music industry’s financial resources
continue to crumble, more independent
musicians are turning to fans to directly finance
work that might not otherwise get done.”
This need has helped fuel the growth and
success of Kickstarter. Journalist Patricia Cohen
noted:
“[Kickstarter] recently boasted that it expected
to raise $150 million in contributions in 2012.
By comparison, the National Endowment for the
Arts, noted Yancey Strickler, one of Kickstarter’s
founders, has a budget of $146 million.”
Kickstarter follows the ‘all or nothing’
funding model, in which only projects that
have successfully met their funding goals –
approximately 43% of all Kickstarter projects
– receive funds. Kickstarter believes this model
“protects everyone involved,” as projects with
insufficient budgets are less likely to succeed.
Since 2009, Kickstarter has helped raise more
than $250 million for more than 24,000 projects.
Crowdfunding platform: LoudSauce
Read the full case study on our blog or on
Slideshare
Source: loudsauce.com
LoudSauce is a crowdfunding platform that funds
advertising for social good.
The platform offers people a unique opportunity
to broadcast messages that can help society. As
social activist Jeremy Williams commented:
“Most of us can’t afford a billboard. But if we got
together with like-minded people and each
chipped in a bit, perhaps we could use just a small
part of the advertising network for something
positive.”
This opportunity helps non-profits and
organizations reach larger crowds and create
larger networks of like-minded people. Blogger
Beth Buczynski observed:
“Most of these [social media] outlets require
people to “opt in” to receive updates and invites.
This means that for the most part, organizations
with the ability to catalyze social and environmental
change end up preaching to the choir.”
6. Source: mybanktracker.com
Source: unhate.benetton.com/unemployee-of-the-year
“Way to go, Chase- it is refreshing to see a “big
faceless corporation” making things right. Thanks
for looking out for the little guys!”
However, the need to campaign for votes and
compete with other charities has led to much
debate amongst non-profits about the return on
investment of participating in such programs. As
consultant Carrie Hirmer commented:
“For us, being in one of these contest-type
grants has been a wonderful thing so far. It may
not work as well for some organizations. It has
helped increase awareness of the need for our
project and has served as a door-opener, so to
speak, for relationships that will last long after
the contest ends.”
This type of program also requires constant
campaign management and proactive
communication with audiences. B.L. Ochman,
a consultant and contributor to AdAge.com,
who has written about this program at length,
considers Chase Community Giving to be:
“a model of what — and what not — to do in a
corporate philanthropy campaign.”
Branded crowdfunding program: Benetton
Unemployee of the Year
Read the full case study on our blog or on
Slideshare
In 2012 Benetton’s Unemployee of the Year
gave €500,000 to 100 projects to celebrate
young people’s ingenuity, creativity, and ability
to create new ways of addressing the problem of
unemployment.
While the platform may not have an immediate
impact on traditional media buying and
advertising, it is finding support from both
consumers and advertisers. As advertiser Michael
Caissie commented:
“I work in advertising and my goal is to make a
more human way of communication and this
concept of ideas coming from the public is almost
to me revolutionary.”
Branded crowdfunding program: Chase
Community Giving
Read the full case study on our blog or on
Slideshare
Since 2009, Chase Community Giving has
donated more than $28 million to more than 500
charities by asking its employees and customers
to first nominate eligible charities, then asking
its 3.8 million fans on Facebook to vote for their
favorite charities.
The four-year program has contributed much
learning to Chase’s internal giving strategy.
As Samantha Smith, journalist at NY Times
said:
“JPMorgan Chase’s goal with the above
contribution is to continuously engage
communities that care and are knowledgeable
on change in the JPMorgan Chase Foundation’s
giving strategy.”
The program has also helped spread the word
about Chase’s philanthropic efforts and shape
people’s opinion about the brand. As Julie Brown
commented on Facebook:
7. 7
Source: votegivegrow.com/
Source: sparktherise.com
Involving customers also complemented
Starbucks’ contribution to non-profits. As
Starbucks customer Suzanne C commented:
“This seems like a good way for SB to not only
donate funds to a non-profit but to also raise
awareness for the non-profits that are out there!”
In return, customers feel a sense of pride for
contributing to worthy causes and a sense of
affinity for Starbucks for making it happen. As
Starbucks customer Sarah commented:
“Feels good to patronize a company that is
philanthropically minded.”
Branded crowdfunding program:
Mahindra Spark the Rise
Read the full case study on our blog or on
Slideshare
In 2012 and 2013, Mahindra Group is giving grants
of $1 million to 96 ideas and projects that can
drive positive change in India under its Spark the
Rise program. Mahindra also connects change
makers with each other and mentors, to help
create an ecosystem for social innovation
in India.
While Benetton is famous for highlighting social
issues in its advertising, this campaign marks
the brand’s first effort to support these issues
financially. As Stuart Elliott, columnist at
NY Times wrote:
“For almost as long, critics have dismissed the
[Benetton] ads as exploitative because they do
not offer solutions to the problems or assistance
to the causes that could use financial help. Now,
however, Benetton is going to put some money
where its mouth is.”
Youth unemployment is a cause that has a large
passionate following globally, and the program
has inspired widespread coverage of the issue
and participation from 42,266 unemployed
young people. As NYTimes reader DJ
noted:
“Every little bit helps when you have no job
at all."
The €5,000 grants and the relevance of
the cause will help Benetton build a deeper
relationship with the youth market. As Adweek
blogger Tim Nudd wrote:
“They may be less provocative than last year’s,
but perhaps they’ll make a more lasting difference
in the lives of the target market.”
Branded crowdfunding program:
Starbucks Vote.Give.Grow
Read the full case study on our blog or on
Slideshare
In 2012, Starbucks Vote.Give.Grow gave $4
million to 124 local non-profit organizations
based on votes from My Starbucks Rewards card-
members.
The program created an opportunity for
Starbucks to involve brand loyalists in its
corporate purpose. As social do-gooder Tara
Nami commented:
“One of the focus areas of the Starbucks
Foundation is helping the communities in which
they operate, and during the month of April… we,
the people, get to help them decide where and to
whom it goes to in our very own communities.”
8. We also expect some niche crowdfunding
platforms to focus on connecting brands with
creators and backers. Projeggt (video) in Spain is
trying to promote a model where brands sponsor
projects in return for custom rewards from
creators.
Already, we are seeing examples of brands,
organizations and celebrities supporting projects
on crowdfunding platforms. For instance, Mozilla
Firefox is offering matching grants at Crowdrise.
Some brands will go further and create their
own crowdfunding platforms, and ask their
community members to fund projects and
non-profits on a matching grant basis, not only
through virtual actions such as voting.
However, as branded crowdfunding programs
become mainstream, and their novelty wears off,
we expect that they will become more focused,
with a stronger alignment between the brand’s
purpose and the type of projects or non-profits it
funds.
The program is a demonstration of Mahindra
Group’s commitment to its corporate philosophy
‘Rise.’ Ad veteran Ramesh Narayan commented:
“Mahindra is making a statement it is
committed to helping India, and backing it with
action. [Spark the Rise] is an eloquent statement
of its positioning, unlike a mere advertising
campaign that says the company is committed
to some cause or the other.”
The initiative taps into the passions of the Indian
crowds, as former ad-man Lakshmipathy Bhat
pointed out:
“The ‘rallying cry’ of Rise and the call to action
of ‘Spark the Rise’ couldn’t have come at a better
time – there are heroes emerging from every walk
of life and being egged on by the general public.”
As consumers evolve in the digital age, it is
important for brands to be seen as authentic and
socially responsible. Narayan commented:
“As consumers get younger and more aware,
these will be increasingly important critical
factors affecting choice."
The Future of Crowdfunding
In the near future, we expect equity-based
crowdfunding platforms to become a popular
way to fund startups across the world, as financial
regulation is modified to allow allocation of
equity against crowdfunding. Such models
already work in markets like the UK.
We also expect consolidation amongst the larger
crowdfunding platforms, as large crowdfunding
platforms like Kickstarter and indiegogo become
truly global through organic growth, acquisitions
and partnerships. For instance, indiegogo is
already investing in supporting projects by
creators from across the world and building a
strong global network of partners, and Kickstarter
has already expanded to the UK.
In parallel, we expect even more niche
crowdfunding platforms that focus on an under-
served segment or geography, as white label
crowdfunding software like Launcht, Hayduke,
Invested In, CrowdForce and Catarse become
more powerful.
9. 9
Learn more about us at:
peopleslab.mslgroup.com | twitter.com/peopleslab
People’s Lab is MSLGROUP’s proprietary
crowdsourcing platform and approach that
helps organizations tap into people’s insights for
innovation, storytelling and change.
The People’s Lab crowdsourcing platform
helps organizations build and nurture public
or private, web or mobile, hosted or white
label communities around four pre-configured
application areas: Expertise Request Network,
Innovation Challenge Network, Research &
Insights Network and Contest & Activation
Network. Our community and gaming features
encourage people to share rich content, vote/
comment on other people’s content and
collaborate to find innovative solutions.
The People’s Lab crowdsourcing platform
and approach forms the core of our distinctive
insights and foresight approach, which consists
of four elements: organic conversation analysis,
MSLGROUP’s own insight communities, client-
specific insights communities, and ethnographic
deep dives into these communities. The People’s
Insights Quarterly Magazines showcase our
capability in crowdsourcing and analyzing
insights from conversations and communities.
People’s Lab:
Crowdsourcing
Innovation & Insights
10. Write to us to start a conversation on the future of engagement.:
Pascal Beucler,
SVP & Chief Strategy Officer
(pascal.beucler@mslgroup.com)
Janelle Dixon,
North America Head of Insights
(janelle.dixon@mslgroup.com)
Dominic Payling,
Europe Head of Insights
(dominic.payling@mslgroup.com)
Gaurav Mishra,
Asia Head of Insights
(gaurav.mishra@mslgroup.com)
mslgroup.com | twitter.com/msl_group
MSLGROUP is Publicis Groupe's strategic
communications and engagement group,
advisors in all aspects of communication
strategy: from consumer PR to financial
communications, from public affairs to
reputation management and from crisis
communications to event management.
With more than 3,700 people, its offices span
22 countries. Adding affiliates and partners
into the equation, MSLGROUP's reach
increases to 4,000 employees in 83 countries.
Today the largest 'PR and Engagement'
network in Europe, Greater China and India, the
group offers strategic planning and counsel,
insight-guided thinking and big, compelling
ideas – followed by thorough execution.