ISSUE #3: The Relationship Exponent Relationships dominate our lives. At their best, they provide exponential value that is impossible to create individually. And in a world that’s driven more and more by social behavior, even brands are playing the relationship game. This issue examines what makes great partnerships work and what makes them break. LETTER FROM THE EDITOR May 12, 2016

Since I founded the agency fifteen years ago, I most often measure and evaluate the wider digital landscape by determining why our phone is ringing – what is prompting people’s calls? And for the past couple years, time and again, the caller at the end of the line is asking about the same thing – brand integration – one of those marketing buzzwords for what is ultimately a relationship between two brands. Transparently, that’s where this issue of Situation started. Let’s talk about partnerships, sponsorships, great brand collaborations. But as we scratched the DAMIAN BAZADONA is the President surface of what this meant, we discovered that this was a small piece in a much larger puzzle. and Founder of Situation, a digital agency that believes doing is greater than I’ll state the obvious and say that relationships are the byproduct of living in a hyper-connected having. Since its inception in 2001 and world. Put simply, there are just more relationships in our lives than ever before. Consider the from its headquarters in NYC, Situation various social platforms your business uses on a daily basis. You engage with those channels crafts brand experiences for some of the under an agreement in which you waive almost every right in exchange for data. Those biggest names in the global live event and relationships are arguably some of the most important business relationships we have, but how entertainment space. well do we really understand them?

We’ve gotten lazy in how we treat some of these relationships, which is especially dangerous when there’s so much more that can go wrong. I’d be lying if I said it’s easy. Navigating this terrain is complicated. Yes, it’s about data, knowledge and understanding these agreements you’re entering. But it’s also about experience, wisdom, gut, and feeling – those subjective intangibles that, in my opinion, cannot be ignored when evaluating relationships.

But the good news is that you’re on the right track – just by joining this conversation. We hope you walk away from this issue with a deeper understanding of the variety of dynamics that affect our relationships and how to fine-tune your instincts on investing in the relationships that win.

Happy Reading,

Damian Bazadona, President and Founder, Situation Contents

Relationships That Win Spring/Summer 2016 06 BY JEREMY KRAUS www.situation.nyc Real Talk About Influencers and Marketers 08 BY MARK SEELEY EDITOR-IN-CHIEF DAMIAN BAZADONA 10 200 Years of Relationships: MANAGING EDITORS ELLEN MULLEN, JORDAN PERSON BAM & Roundabout Theatre Company CONTENT EDITOR ELIZABETH GREENFIELD BY KATRYN GEANE

ART & PRODUCTION Investing in Great Relationships­ – Literally 12 BY DAMIAN BAZADONA SENIOR CREATIVE OFFICERS TOM LORENZO, CHRIS POWERS ASSOCIATE CREATIVE DIRECTOR JOHN HOWELLS From Laptop to Living Room: DESIGNER MILES MORTON 16 EXECUTIVE DIRECTOR OF PROJECT MANAGEMENT JACKIE LAU Evolving Relationships in an On-Demand World PROJECT MANAGER SHAWNA MONSON BY PETER YAGECIC

SITUATION CONTRIBUTORS Behind the Scenes @ Advertising Week KATRYN GEANE, JEREMY KRAUS, NICOLE LEMIEUX, 20 BY NICOLE LEMIEUX ELLEN MULLEN, AARON PFANNEBECKER, MARK SEELEY, PETER YAGECIC The IMAX Ingredient 22 BY AARON PFANNEBECKER SPECIAL THANKS The Relationship Ride: RACHEL BALDOCK, LISA CECCHINI, MARIA MARTINEZ, 26 KEVIN McAULEY, ALLIE MEIKLE, EILEEN MINNICK, Six Flags & Their Partnership Strategy NATALIA ORZEL, THE RUBIN MUSEUM, STEPHANIE SCIANDRA, BY ELLEN MULLEN KELLY SHERRARD, ERIC SMITH Relationships for Social Good 28 BY LINA RENZINA The Last Word 30 BY TEAM SITUATION “I’d be lying if I said it’s easy... experience, wisdom, gut, and feeling – those subjective intangibles cannot be ignored when evaluating relationships.” - Damian Bazadona, Situation PERSPECTIVES In the best partnerships, the resultant value is greater than the sum of the individual parts. These relationships provide exponential value that is impossible to create individually. We asked RELATIONSHIPS leading marketing minds in the live event and entertainment space the simple question: THAT WIN What makes an BY JEREMY KRAUS Executive Director of Client Services, Situation effective relationship?

SITUATION >> THE RELATIONSHIP EXPONENT © Getty Images Clear understanding of campaign goals and metrics for success. When both parties bring forth their authentic selves. I engage But we should strive to be more than just effective. Exceptional with influencers from diverse audiences to grow the audience relationships — those that transcend the RFP process and create of our premier sporting event, the US Open. The most effective meaning for brands and audiences — are built on true passion partnerships allow the influencers to exhibit the brand in a way and love for the work. In this way, business relationships and that remains true to the voice of the influencer while maintaining romantic relationships are one and the same. the brand integrity. Consumers appreciate authenticity, and the MATTHEW BORST partnership is more successful as a result. Director of Connected Content, NICOLE KANKAM MTV Events/Viacom Music and Entertainment Group Managing Director of Marketing, United States Tennis Association

Seamless and unified collaboration across the entire campaign Communication. The fruits of effective relationships within lifecycle for all the key stakeholders. That means understanding the NASCAR are easily visible — drivers and cars sport sponsors’ logos importance of the ‘value-exchange’ — architecting and executing in multimillion-dollar races attended by hundreds of thousands campaigns that are equally beneficial for all parties. Start with the of loyal fans — but it’s those relationships cultivated daily that underlying premise: Does this program add value for the brand, the allow for ‘race-day’ magic to happen. How? Emphasis is placed on property/asset-holder, and the fan? The idea can be brilliant, teeming collaboration, creativity, and critical, yet constructive feedback with cutting-edge technology and oozing with innovation — but if it’s amongst all stakeholders, including NASCAR, tracks, teams, not supported by all the parties critical to the campaign’s success — drivers, sponsors, TV partners, and (most importantly) fans. then you will not be building an ‘effective relationship.’ KYLIE EASTERLING SCOTT CARLIS Digital & Social Media Manager, Senior Vice President of Digital Media, Talladega Superspeedway Learfield

7 BRIEF The exponential growth of social platforms and online communities blurs the line between what’s a brand and who’s a friend. Everyday people find fame on REAL TALK ABOUT Vine, Instagram, Twitter, and Snapchat, and their fans and followers trust their Real Talk opinions and recommendations. Slowly, celebrity endorsements have taken a backseat to the creation of integrated content from these influential internet stars. Brands seized the opportunity to access these active and niche fan bases INFLUENCERS AND in unique (and lucrative!) ways – and the influencer campaign was born.

Although the philosophies of how to utilize, engage, and evaluate influencer MARKETERS campaigns vary, the most important steps are universal: BY MARK SEELEY • Define the relationship: Influencers aren’t a one-off band-aid solution. It’s never successful to just “bring in the influencers!” Influencer Engagement Supervisor, Situation integrations work best when built into the campaign from the start.

• Build the relationship: Build and invest in your relationship with the influencers before, during, and after the campaign. Don’t fall into the trap of undervaluing influencers – treat them as you’d treat any other valuable organizational partner.

SITUATION >> THE RELATIONSHIP EXPONENT In our experience in the live event and entertainment space, there are four common types of influencers that we use to support our brands: THE PROMOTER THE ARTIST THE LOOK-ALIKE THE CHEERLEADER Brands use The Promoter’s platform The Artist is brought on board for An influencer whose audience An influencer who has genuine to deliver a sales message or to their artistic talent and perspective matches the brand’s desired affinity for a brand and talks about push branded content out to their to produce content that matches audience. Through and through, the it willingly and often. A relationship audience. The relationship between the aesthetic of the campaign. The influencer’s digital presence reflects with The Cheerleader happens the brand and The Promoter is relationship between The Artist the lifestyle of the brand’s audience. organically and naturally. more transactional and less about and the brand requires extensive Metric: Audience growth and common interests. discussions and meetings to ensure Metric: Frequency. brand engagement. a consistent brand message. Challenge: In order to identify a Metric: Conversion. Challenge: The Look-Alike’s true Cheerleader, marketers must Metric: High-quality content Challenge: Unlike other types of audience may not necessarily have constantly be listening. Once a that both the brand and The influencers, the content and message affinity for the brand. While a Cheerleader finds a new interest and Artist’s audience can enjoy and being pushed out by The Promoter brand may want to reach a certain they move on, that’s it. appreciate artistically. can feel less genuine and organic. audience, this does not mean the Example: A superfan or celebrity Challenge: This is a play for quality audience will react in the Example: Utilizing The Promoter’s that is consistently engaging with a content and awareness, so the desired way. email list for direct access to their brand because of a natural affinity. audience to push an exclusive offer responsibility is on the marketer to Example: An alcohol brand aligns or content. support the content to achieve the with a local “mixologist,” a popular greatest reach. bartender whose Instagram feed Example: A street artist reimagines features the neighborhood hotspots, a brand’s logo or key art. cuisines, and hobbies favored by the brand’s desired audience.

A successful brand-influencer relationship is constantly evolving. Someone who is brought on board as an “Artist” may CONCLUSION one day become a “Cheerleader.” A “Look-Alike” may seize the opportunity to share brand content like a true “Promoter.” When you build a relationship with the influencer as an individual, natural opportunities for further partnership abound.

9 PERSPECTIVES AUDIENCE

This connection must be multidirectional. We provide We are data-driven, customer-focused, our audiences ticket services, 200 YEARS OF and personalized. Our audiences are but also adventure, connections as varied in their interests, tastes, and to artists, benefits, a means as our programming is eclectic. philanthropic outlet, education, It’s incumbent upon the Theatre to meet online content, and beyond. RELATIONSHIPS every prospect and patron where they are and to invite each person to participate at Shannon Lacek, BAM & Roundabout Theatre Company their greatest comfort level. Director of Marketing, BAM Robert Sweibel, BY KATRYN GEANE Director of Marketing & Audience Account Supervisor, Situation Development, RTC

For over 200 combined years, Brooklyn Academy of Music (BAM) and Roundabout Theatre Company (RTC) have served the greater New York community through both the compelling work and DONORS artists featured on their stages and the countless offstage initiatives that engage patrons and develop When cultivating institutional new audiences. They’ve masterfully navigated Our guiding words are: warm and respectful. We avoid relationships with foundations and other changing landscapes on a variety of fronts – being overbearing, one-sided, grant makers, we must be honest, open, artistic, labor, municipal, the general population and robotic. and fulfill our objectives and those of the nonprofit. A shared trust in the ability – by building remarkable relationships. We sat Lynne Gugenheim Gregory, of the nonprofit to produce successful down with representatives from both organizations Director of Development, RTC programs is imperative. to find out about their priorities and perspectives. William Lynch, (Spoiler alert: it's all about relationships.) Director of Leadership Gifts, BAM

SITUATION >> THE RELATIONSHIP EXPONENT WHAT IS AN EXCITING GROWTH OPPORTUNITY FOR ARTISTS YOU AND YOUR CONSTITUENTS?

Both parties should always Expanding diversity onstage and Our relationships with artists be supportive and equal, Developing and delivering a brand off in our family of artists. must be malleable and honest. experience to our patrons across all not sycophantic. Jill Rafson, Jill Rafson, channels and venues. Director of New Play Director of New Play Amy Cassello, Robert Sweibel, Development, RTC Development, RTC Associate Producer NextWave Festival, BAM Director of Marketing & Audience Development, RTC

Utilizing increased learnings about member preferences so we can provide well curated communications.

Claire Charlesworth, Director of Membership Programs, BAM COMMUNITY

We build new relationships by listening first. Then, The greatest strength is the hands-on it’s our job to nurture nature of our work. In both classrooms creativity, self-reflection, and in our on-site workshop spaces, we and belonging. are empowering students to be creators. Steven McIntosh, Director of Education and Jennifer DiBella, Family Programs, BAM Director of Education, RTC

St. Vincent in performance at BAM © Rebecca Greenfield, 2013 11 Q&A INVESTING IN GREAT RELATIONSHIPS­ – LITERALLY BY DAMIAN BAZADONA President & Founder, Situation

When your business is identifying “The Next Big Thing” – and then putting your money where your mouth is – what factors drive your decision? What do you look for? What do great investors know that mere mortals don’t? For Jeff Sine, Co-founder and Partner of growth investment company The Raine Group, the answer lies in relationships. Business-to-business. Business-to-consumer. And beyond. I sat down with Sine to discover the attributes of great partnerships in the creative space.

SITUATION >> THE RELATIONSHIP EXPONENT Damian Bazadona (DB): Let’s dive right in. Can you give me the elevator pitch of who The Raine Group is and what you do? Jeff Sine (JS): Sure. As a growth investment company, “ we have two growth equity funds. We make significant REMEMBER, THESE PEOPLE ARE ALL, minority investments behind the founders and the entrepreneurs who created these companies. They’re IN THEIR OWN WAYS, GENIUSES not cashing out when we come in; they’re looking for capital to expand their reach and to accelerate their to create what they’ve created. That’s the only way you can growth. We operate only in the fields of tech, media, and telecom. We have a global mandate, but our core describe them, so they have sparks flying constantly.” investment thesis targets companies that speak to a - Jeff Sine, highly passionate or highly engaged audience. The Raine Group

DB: The diversity of your portfolio is really interesting to me. Is there a common thread? JS: We’ve got everything from event, fitness, entertainment, and technology. These companies DB: Totally. Deep brand connection is vital. something. We said, “Okay, how can we help connect use every tool to reach those audiences, to engage What else? the dots between their celebrity and their music, with them, and ultimately to monetize them. There’s while exposing this to a bigger audience?” very little commonality in terms of the ages or the JS: We want people who still feel like they’re at genders or even the geographic profiles of the group. the beginning of their journey. We’re not control VICE is an example of a company that didn’t just want The commonality is the passion that people have for investors. We’re not trying to buy the company someone to come in and turbocharge their business these brands. and run it better or strip costs. We’re trying to feed with capital. They wanted ideas and relationships — the fire and fuel the growth. And, hopefully, it’s that is why we were a perfect match as their early DB: So consumer passion, that connection to a rocket fuel. investors. They understand that we see what makes brand, is incredibly valuable to you? them what they are: a brand with incredible devotion Zumba, based in Miami, was one of our projects. to their audiences, to their brands, to their craft, to JS: Think about Margaritaville, Jimmy Buffett’s brand Again, people are so passionate about that experience. the work. company — that really defined a lifestyle and a frame It’s not just about fitness and weight loss. It’s about of mind around vacations and a carefree attitude. fun, and it’s about being a little bit outside of yourself But today, if you build one of these things, there are so Parrotheads are one of the earliest self-defined and just not being self-conscious. The Zumba team many ways to take it and extend it. If you’re an online affinity groups. Affinity doesn’t even do it justice, is really great at inspiring people, and it’s become medium, you take it live. If you’re a live medium, you because Parrotheads are almost like a religion. We a global trend. It’s operating in 180 countries. take it to commerce. If you’re a commerce medium, love the connection that people have to those brands. We’ve helped them tap celebrities — particularly you take it to film and television. There are so many It transcends borders and age. It’s not just people who music celebrities — who it turns out were authentic different ways to give people more of what they want grew up listening to Jimmy’s music. Zumba users. It wasn’t like we went and contrived while remaining absolutely on your message.

13 DB: Interesting. I’m thinking about DB: Let’s flip it. What’s the red flag Margaritaville, Important Studios that makes you say, “This is not a good [whose notable assets include “South relationship for us, and here’s why.” Park” and The “Book of Mormon”] JS: It’s an issue when we see companies that and Nitro Circus Live. These founders we don’t think have sustainable competitive and brands are a highly passionate advantage. They might be hot today, but group of people. Talk me through we’re not convinced they’re going to be your relationship with the companies hot tomorrow. We see companies that have themselves. Once you step in gotten to where they are by doing some with capital infusion, how do you things really well and, now, see that there are share the vision? five more things that they can do but they JS: It’s good to have a plan as the starting don’t have anybody on their teams who can point, but nothing ever works out exactly do those things; or, maybe they don’t nail the “I have a rule about no victory the way you’ve planned it. In many, many execution as they’re trying to do those new cases, that’s good news because that means things. But we try to help. We try to bring in laps around here. We talk about new opportunities. If you’ve got momentum talent. Obviously, if you’ve been doing one the challenges, and we talk about and you’ve got all these assets, opportunities thing really well for a long time, and now are going to come to you. Remember, these you’re trying to do a bunch of new things, what’s tough. What are the issues? people are all, in their own ways, geniuses, there’s a higher level of risk associated with to create what they’ve created. That’s the that. That’s where transparency comes in. only way you can describe them, so they have WE WANT TO ROLL UP OUR sparks flying constantly. One of the things DB: Talk a little bit about that we like to do is try to figure out how to light expectation of transparency. SLEEVES AND HELP THEM the next fire for them and get the next thing JS: All these companies owe us is that they going. On the other hand, you also want to ” have to be brutally honest with us about how prioritize and focus on the things that are SOLVE THE ISSUES. things are going — the good, the bad, and the going to have the most impact. ugly. Especially the bad and the ugly. I have - Jeff Sine, a rule about no victory laps around here. We DB: What makes creative visionaries The Raine Group talk about the challenges, and we talk about great is that unpredictable path. But what’s tough. What are the issues? We want I imagine that you have to balance an to roll up our sleeves and help them solve the investment in that curiosity with risk. issues. We’re not blaming anybody. We just JS: The management teams we’ve invested in want to go find solutions. Or maybe there is are interested in making money. If we didn’t no solution, and you have to stop doing what find that kind of common denominator, I you thought was going to be great and go do don’t think we would invest with them. That the next thing. doesn’t always mean that we’re going to agree on the same path, but we’ve been able to speak each other’s language.

SITUATION >> THE RELATIONSHIP EXPONENT DB: Do you care to share an example? DB: Last question. What’s your favorite thing about your job? JS: We’re a very large investor in DraftKings, the fantasy sports company that’s been under JS: I don’t get bored. Think about what legal attack here in New York. We’ve had to we have to consider. You have to consider hunker down with the management team sociology, psychology, pop culture, and a lot of lawyers and just work through technology, regulation, competition, and the issues. What makes you feel good about financial markets. All of those things are it is that they are providing an experience in this big melting pot, and out of that, you to sports fans. This is the core of fandom, have to figure out, “Okay. What am I going right? While we work everything out, we’re to do next?” It forces you to think about providing a great experience to millions of this stuff in a very interconnected way, which people around the world. is fun. ■ “I have a rule about no victory DB: What’s your relationship like with laps around here. We talk about other people who make the investment the challenges, and we talk about decisions. Are you generally in agreement? what’s tough. What are the issues? JS: I’d say 85% of the time we’re in agreement. We now have an operating rhythm where we understand what we’re looking for. If we have WE WANT TO ROLL UP OUR deep divisions or disagreement, we won’t do a deal. There have been deals that we liked SLEEVES AND HELP THEM but thought that the timing was not right, ” so we waited. We’ve come back and done the SOLVE THE ISSUES. deals, but we aim for consensus at the end of the day. JEFF SINE is the Co-Founder/Partner at The - Jeff Sine, Raine Group. Prior to founding The Raine Group, Sine was Vice Chairman and Global The Raine Group DB: Tell me about your co-founder. Head of Technology, Media & Telecom JS: My co-founder is a guy named Joseph Investment Banking, at UBS Investment Ravitch. Joe was my arch-competitor for Bank. His clients have included many of many years. He was the guy at Goldman the leading global media, technology, and Sachs; I was at Morgan Stanley and then UBS. communications companies, including Viacom, Google, Time Warner, News Corporation, Sony, DB: What’s your favorite thing about Bertelsmann, Comcast, Cox Communications, having Joe as a partner? Thomson, SoftBank, Microsoft, AT&T, Disney, JS: His creativity. He’s got a very different way and many others. He has also produced many of approaching problems and opportunities plays and musicals over the past two decades than I do. We usually end up at the same on Broadway and in London’s West End, and is destination, but we take a very different path a three-time Tony Award® winner. to get there.

15 CREATIVE TECH FROM LAPTOP TO LIVING ROOM Evolving Relationships in an On-Demand World BY PETER YAGECIC Executive Director of Technology & Emerging Platforms, Situation

In the early days of hip-hop, the self-produced, handcrafted mixtape was the primary method by which aspiring MCs spoke directly to their audiences. Armed with only a dual cassette boom box, artists could reproduce their bespoke product whenever they felt the urge. The result? An intimate relationship between artist and fan, vastly different than the one generated by the massive overhead of the record industry machine.

SITUATION >> THE RELATIONSHIP EXPONENT Fast-forward to today, and you can see a similar system. There’s hardly a device you can connect intimacy in the world of online video creation. A world to your TV that doesn’t have a corresponding app of ever-cheaper high-quality cameras and increasing for these two heavyweights, but neither Netflix bandwidth have created the perfect incubator to nor Amazon seems to be interested in letting self- allow the masses to publish their own video content publishers play in their sandbox. and attract legions of devoted fans. Services like YouTube and Vimeo have long provided the technical Apple, by contrast, has a different philosophy infrastructure to distribute this wave of content, but regarding its newest version of Apple TV. Since it's they have only recently turned their attention toward not currently in the business of making its own addressing the financials of that equation outside the content, the company wants to empower content realm of ad revenue. creators to create and publish apps that can be downloaded to an Apple TV, much like the iOS app “No longer is a boombox The introduction of services like YouTube Red, which store for phones and tablets. Apple firmly believes all you need to asks users to pony up $10 a month to subsidize some that the future of TV lies with apps, so it has of the same artists they’ve been enjoying for free for opened its doors to all comers — from “big guns” like years (among other enhancements), is an experiment HBO GO to the “little guys” like the yoga place on SHARE YOUR whose effectiveness has yet to be determined. Vimeo the corner who wants to reach a wider audience and has offered an alternative called Vimeo On Demand make a few bucks at the same time. that allows content creators to ask consumers to fund CREATIVE BRILLIANCE Unfortunately, the technical hurdles of producing, them directly through subscription and à la carte ” consumption of video. Both of these solutions still hosting, and distributing high-quality video content, WITH THE MASSES. demand that watchers go to the primary websites not to mention coding a native app, are significant. (YouTube.com and Vimeo.com) to consume their No longer is a boom box all you need to share your - Peter Yagecic, artists’ offerings. creative brilliance with the masses. As a result, there Situation aren’t many individual content creators that have Some artists, notably Louis C.K., embrace the created their own apps to play their content within honor system and release their content as a DRM the ecosystem of an Apple TV or Roku, but there are a (Digital Restriction Management)-free video file in number of companies trying to change that by doing exchange for $5 and the promise not to share with the technological heavy lifting. those who haven’t paid. This method is admirable and great for those comfortable watching a full- One such company is VHX (vhx.tv). They describe length comedy special on their computer; but as themselves as “the all-in-one solution” that allows the number of video syndication devices continues content creators to “create custom video experiences to flood the marketplace, demand is growing to across all major platforms and connected devices.” get this content onto our living room TVs instead of These platforms include Roku, iOS, Chromecast, our laptops. AirPlay or custom-built platforms using the service’s open API (Application Program Interface). Industry titans like Netflix and Amazon have been I had an opportunity to chat with VHX Co-founder pioneers in developing apps that run on many and CEO Jamie Wilkinson about the product and different hardware platforms — presumably in an how they’re helping video creators stay connected effort to gain a foothold in the home entertainment to their fan base.

17 “ACTUALLY TALKING TO YOUR CUSTOMERS is the oldest trick in the book for building a successful business.”

- Jamie Wilkinson, VHX

Peter Yagecic (PY): How does We also give our sellers detailed YouTubers, yoga studios, production PY: What was the key impetus for VHX enhance the dialogue analytics and full access to companies, and major film and creating your open API? Can you between content creators and information about their customers, television studios. point to a brand that has made their consumers? which is key to understanding who the best use of the API to create is buying and using their products, PY: Do you envision VHX as its own VOD experience? Jamie Wilkinson (JW): Our mission growing their business, and building empowering the little guys to is to help businesses large and small JW: Our app and websites are highly long-lasting relationships. Video get their content into people’s sell videos directly to their audience, customizable, but they can only go stores like iTunes and Netflix don’t living rooms? so we’ve designed our platform so far. Most of these limitations are provide any information or lines of from the ground up to enable JW: This goes back to our mission: our by design: we have no interest in communication at all, which means dialogue between content creators goal is to help sellers – big and small building a bloated, everything-to- you’re perpetually rebuilding your and their customers. – build a successful video business. everyone product. audience from scratch. Actually One of the other data points we point talking to your customers is the For example, every VHX site has its to is the accessibility of professional- We have great sellers who want to oldest trick in the book for building own community forum, which allows grade production equipment and do things that aren’t possible with a successful business, and having customers to talk with each other democratized marketing power of our turnkey solutions — processing detailed usage data to back it up directly; a great example is Yoga With social media. Our hope is to continue your payments but using VHX for makes you more effective across Adriene’s forums, where her fans this trend and lower the barrier to everything else, offering interactive the board. exchange tips and suggestions that entry for professional-grade “Netflix- quizzes alongside instructional

go well beyond what Adriene covers in esque” distribution. We’re here to videos, or streaming video inside of PY: Who is your ideal customer? her videos. The forum feature creates provide the tools, know-how, and virtual reality apps. Those are perfect a sense of community and illustrates JW: Anyone who wants to build support they need to become the next examples where building something the authentic relationship a creator a successful video business! We’ve great TV company — whether you’re custom with the VHX API makes way can have with their fans. worked with sellers big and small: an actual media company based in LA more sense.

individuals, small businesses, or just two people in a room.

SITUATION >> THE RELATIONSHIP EXPONENT TECH SHOWCASE MEET VHX

VHX is a video technology platform built to power independent video subscription networks with the goal of bringing creators closer to their audiences by launching their own Netflix-like services. The Brooklyn-based startup provides an end-to-end technology solution that enables creators to sell and distribute their content directly to their audience from their own websites or through custom apps created for Apple TV, Roku, iPhone, PY: What trends do you see NEXT is the great rebundling. With emerging in the VOD marketplace hundreds of thousands of channels, iPad, and Android. VHX sellers control their distribution in the next six months? In the discovery and aggregation become strategies and customer data, so they can market next two years? major problems. The cable bundle did effectively, scale quickly, and keep more revenue.

JW: First, the great unbundling. a great job solving for this, but the Thousands of sellers use VHX to sell their films, TV shows, Hundreds of channels become problem is that you had to be a cable web series, and more. VHX publishers include VICE Media, thousands, tens of thousands, company in order to do that bundling. Comedy Central, Black & Sexy TV, Yoga With Adriene, hundreds of thousands of channels. The next wave — and platforms like The free, mostly amateur version VHX — open this playing field up Aziz Ansari, and more. of this has already happened thanks to everyone. to YouTube and Vimeo; we want For the layman, services like VHX’s to be part of the next wave of open API still require a programmer. premium “content worth paying Yet, VHX, and tools like it, are trying for” channels. to preserve the intimate relationship between content creators and their audiences. Whether it’s an Apple TV, PlayStation’s Virtual Reality PS5, or whatever other technology that comes along to beam images into our brains, the one constant will be the need for compelling, engaging stories to hold the attention of the masses. ■

19 BACKSTAGE BEHIND THE SCENES @ ADVERTISING WEEK BY NICOLE LEMIEUX Senior Copywriter, Situation

SITUATION >> THE RELATIONSHIP EXPONENT © 2016 Tabatha Fireman / Getty Images No matter how you slice it, we’re all in the relationship business. Lines between marketing and creative, individuals and brands are more blurred than ever. Today, “everyone is in everyone’s kitchen,” says Matt Scheckner, Co-Founder and Executive Director of Advertising Week, the global series of large-scale assemblies of elite brand marketers and creative visionaries. Those who have attended can agree that Advertising Week is more than just a conference. After all, “sexy” is not a word we marketers typically throw around when it comes to gatherings with our peers — Snoop Dogg, Outkast, and Salma Hayek aren’t your typical conference guests.

How does Advertising Week’s unique approach to relationship building – a combination of thought leadership and entertainment – create the foundation for the hottest marketing event around? We sat down with Scheckner to find out.

ENVIRONMENT IS EVERYTHING PUT ON A SHOW SIX DEGREES OF ASSOCIATION “We try to put people in aspirational or “I didn’t have a background as a creative How did a kid from Queens wind up enlisting inspirational settings,” Scheckner explains. or agency guy. I definitely brought a the Duke of York to host an event for “I think the where and the environment spirit of ‘why can’t we try this?’” With Advertising Week? “It’s all about who you and the experience really matter.” No no obligation to conform to traditional know…and who they know. I went to public shifting uncomfortably 12 rows deep in expectations, Scheckner designed the school. I didn’t know anybody in the Royal a convention center rental chair here. event to push boundaries and fill seats. Family, but I knew somebody who knew By hosting events at iconic venues like Seminars range from content technology somebody who introduced me to the Chief Abbey Road Studios, Sotheby’s, the to David Bowie’s legacy to the European of Staff of the Duke,” recalls Scheckner, National Gallery, or Southwark Cathedral, Union referendum, with speakers including who was impressed by the Duke’s work in “[we] create environments purposefully Hollywood A-Listers, agency heavy hitters, promoting young British entrepreneurship selected to inspire relationship-building media big shots, and CMOs. “We tackle real in the tech space. and creativity.” issues, but I’m not in the investigative journalism business. I’m looking to put on a good show.”

21 FEATURE THE IMAX INGREDIENT BY AARON PFANNEBECKER Senior Copywriter, Situation

Being in an IMAX theater for the first time blew my mind. I remember going to the Mugar Omni Theater in Boston. Leonard Nimoy narrated a special IMAX introduction to each film. I was a big “Star Trek” fan at the time, so I was in heaven.

It was one of those huge egg-shaped screens that towers over you. There are these handrails in front of each row that I had to grab during the show because I felt like I was going to fall out of the theater when the movie played.

This is what I saw when the film began: a bird’s-eye view descending onto a city street, then speeding towards traffic, away from it, into a wall, then out of the city, into the sky, and then into space. I remember feeling like I was either going to be sick or tossed out of the theater.

I think of this when I think of IMAX. Seeing IMAX isn’t just a movie experience. It’s bigger than that. There’s nothing else like it. IMAX feels like IMAX.

SITUATION >> THE RELATIONSHIP EXPONENT All images appear courtesy of IMAX © 2016 THE RELATIONSHIP FACTOR

It’s a household brand synonymous with the chief export of the United States: spectacle. IMAX films look better and they sound better. When a Hollywood blockbuster is released in IMAX, people want to see it because they know they’ll be seeing the very best cinema has to offer.

Yet, IMAX is not solely a content creator. IMAX provides the ingredients that directors love to cook with. Content creators use IMAX film and cameras to make their dreams a reality. IMAX has created invaluable partnerships – an intertwined web of filmmakers, studios, and exhibitors – that push the boundaries of filmmaking and film viewing.

As a result, IMAX continues to flourish and set the cinematic pace in an increasingly on-demand world where nearly everyone is equipped to view movies whenever they like – on the mobile screen in their pocket.

How did IMAX get where it is today? Situation President and Founder Damian Bazadona sat down with IMAX Chief Marketing Officer Eileen Campbell to discuss the key to IMAX’s relationships and the future of experiential film.

“From the Damian Bazadona (DB): What’s the secret EC: Warner Brothers is the first studio to your success? that really saw the potential of IMAX as a very beginning, IMAX isn’t commercial opportunity. They really believed Eileen Campbell (EC): The secret to our in what we were doing. Then, of course, I think just something you see; success is the relationships we’ve made. there were certain films and filmmakers with It comes right down to it. We have great whom we have quite special relationships. technology. The truth is that after all these James Cameron and "Avatar," for example. That years, somebody might be able to knock off IT’S SOMETHING was a seminal point for IMAX in the history aspects of IMAX technology. What they can't of our company because it ignited that, "you really knock off is the relationships. We've got ” have to see it in IMAX" sentiment. We have a distribution channel of 1,000 of the highest- YOU FEEL. some amazing long-standing relationships grossing theaters in the world. with important filmmakers like Chris - Eileen Campbell,

Nolan and Zach Snyder; Zach just directed DB: There are very few examples of one- IMAX "Batman V. Superman," and Chris was the sided relationships producing great work. executive producer. When we share ideas, the sky is the limit. What is an example of one of IMAX’s greatest relationships?

23 NEW PLAYERS, NEW NARRATIVE

“We’re constantly IMAX was born during Expo 1967 in Montreal, and the first IMAX film was shown in Expo 1970 in striving to give you, Osaka. Over the next 30 years, IMAX became a lucrative fixture in history and science museums around the world. Like me, most people first experienced IMAX outside of Hollywood; it was at a science museum in a domed theater watching a short feature on flying or space travel.

AN EXPERIENCE In 2000, IMAX teamed with Walt Disney Pictures to release "Fantasia 2000." The film illuminated the proverbial lightbulb above Hollywood’s head. Since then, major action films measure their YOU CAN NEVER GET success in the number of IMAX tickets sold. ON YOUR COUCH!” - Eileen Campbell, IMAX DB: Can you tell me about how those This is another one of our relationship angles. early films have influenced current IMAX The company is called ARRI, which makes content creators? the highest-quality digital cameras in the cinema business. They have a camera called EC: Those early films weren't made with deep the ALEXA 65, and we're working with them narrative roots. Now, when you're doing a to create an IMAX version of that camera movie that's got a narrative story, you show that will allow more films to be shot with something for maybe 30 seconds, maybe 10 greater flexibility and at a lower cost than seconds, and then you cut to something else. our traditional film camera. In fact, since Those old nature documentaries, you held we announced the collaboration, the next the shot for a good, long time. That's where "Captain America" movies will be completely you got that sort of roller coaster feel. Some shot with that camera. filmmakers still definitely get that. From the

very beginning, IMAX isn't just something DB: I imagine the venue itself is critical you see; it's something you feel. to the experience. The most successful

experiences I've seen prove why you DB: Technology is always advancing. need to be there in person, rather than Reinvention is essential to success. What on your couch. is IMAX doing to stay at the forefront? EC: At a typical movie theater, you're viewing EC: We have a 3D digital camera that Michael angle is about 50 degrees, because it's flat, 55 Bay used for "Transformers." It has also been maybe. Because IMAX screens are curved, used for a couple documentaries, and it is a the theater opens up to 70 degrees of viewing. little lighter and less expensive to shoot with When you see things in your peripheral than traditional 3D rigs. Then we've got a new vision, it feels a lot more like reality. camera partnership that we're working on.

SITUATION >> THE RELATIONSHIP EXPONENT DB: How do you measure the success of the IMAX experience? Is it the content that matters most, or the overall pairing of the content with the IMAX technology MAKING AN EVENT IN AN ON-DEMAND WORLD that’s being used to amplify it? The demand to see IMAX films continues to grow even in an on-demand world; IMAX continues EC: It’s all of those things. I have a friend, to thrive because people still want to see spectacle, and still want an event. IMAX’s CEO Brian Collins, who has “5 Es” that he's always Richard L. Gelfond says, "Don't think of [IMAX] as a giant screen, think of it as the best immersive reminding me to think about. One is entice experience on the planet.” — how do you get people to think about your brand in the first place? The second is entrance — what's special when you go in and see that big screen? There’s the actual experience, so DB: As strong as the gravitational pull to EILEEN CAMPBELL joined IMAX in July 2013 as when you’re in the theater, what's going on? the couch may be, we will always want to Chief Marketing Officer. From 2007 to 2013, When you exit, what's being done to remind be someplace else. One of the best ways Campbell was the Global Chief Executive Officer you to keep the story alive? Then expand — to experience something new is by going for the brand building consulting agency, how do you get people talking about it and to the movies. It’s an American pastime Millward Brown, and held various other sharing the experience? We are working on all — we all love spectacle. How does IMAX executive positions at Millward Brown from five of these to optimize the experience. view itself in an on-demand world? 2000-2007. Prior to that, she led Angus Reid

Group’s market research and global expansion. DB: What are some examples of IMAX’s EC: Once you say a film is in IMAX, it's She was employed at NFO Research from 1979 reach outside of the United States? Is the an event. We’re always working to make to 1996, most recently as Senior Vice President. demand just as high? IMAX the gold standard for viewing experiences. We’re constantly striving to Campbell is the former Chair of the Council of EC: Our fastest growth is happening give you an experience you can never get on American Survey Research Organizations. internationally. The IMAX experience is your couch! ■ largely the same everywhere in the world, though we have some markets where we experiment, like in Russia. We have some theaters in Russia that are called IMAX Sapphires. They're about 60-seat theaters. These Sapphire theaters have a private entrance, they have a private lounge, and really incredible seating. Their tickets go for something like $80 USD. In China, where the average household income in Shanghai is $11,000 a year, compared to the average household income in New York City of $80,000, an IMAX ticket sells for the exact same price in both places — $20 here, and $20 there.

25 CASE STUDY THE RELATIONSHIP RIDE Six Flags & Their Partnership Strategy BY ELLEN MULLEN Creative Content Supervisor, Situation

You feel butterflies in your stomach. Your pulse is Situation had an exclusive opportunity to speak with The local teams are composed of various positions beating rapidly. Your adrenaline is racing. Riding a Stephanie Borges — VP, North America Strategic based on need and include Department Managers, roller coaster and being in a relationship can often Marketing & Partnerships for Six Flags. She revealed Directors, Fulfillment Managers, Coordinators, and feel like one and the same. Our favorite theme park Six Flags’ secret, “We’ve developed a turnkey Seasonal Activation Teams. Local teams are charged operator seems to have conquered both — Six Flags is a marketing solution; we work with brands and their with bringing in revenue for their region, and relationship rock star. agencies to create customized, efficient programs these local partnerships allow each park to that are endemic to the brand and the parks. Six Flags maintain a unique identity under Six Flags’ strong With nearly 29 million guests visiting 18 parks across offers an astounding 360° customizable program umbrella brand. North America each year, Six Flags is the largest based on brands’ goals and visions, and a full-service regional theme park company in the world. A key team that can fully execute any program.” Since each Six Flags park is unique, the potential for component of their massive success and enormous partnerships varies by market. But the team always reach is their partnership strategy. On average, Six The Six Flags partnership teams work like an agency. seeks to strike a balance with every partner, which is Flags hosts over 40 national promotions throughout Borges explained, “We divide and conquer our wide the key to any strong, stable relationship. the year, along with over 400 local programs across array of programs with both national and local all properties. It’s evident that Six Flags has truly partnership teams.” The national team is a staff of 20 Borges concluded our conversation with this final mastered the often-tricky partner relationship and that oversees the larger partnerships that typically insight, “Six Flags provides a meaningful opportunity found symbiotic success on a large scale. So, how do include all Six Flags parks. This team also develops for brands to interact with guests, while always they do it? programs with a large-scale footprint — partnerships ensuring that guests can enjoy all the thrills they that affect seven parks or more. came to experience.”

SITUATION >> THE RELATIONSHIP EXPONENT Image appears courtesy of Six Flags © 2016 including consumer discount admission promotions, 5 PARTNERSHIP PILLARS POWER PARTNERSHIPS branded attraction dominations, and brand inclusion in Six Flags retail locations. SNICKERS is also the sponsor for the award winning fall Halloween event, 1. Focus on the client. Samsung Electronics Fright Fest®. The official event sponsorship includes From the very beginning of conversations Six Flags and Samsung Electronics America, Inc., a number of in-park promotional programs, including with clients, Six Flags makes sure that announced a marketing partnership which appoints a National Sweepstakes awarding one lucky winner, everyone involved is aligned with the goals Samsung as the “Official Technology Partner” of Six or “Very Important Zombie,” a Fright Fest prize pack and expectations for the program. How Flags. The partnership includes the debut of ground- and a customized tombstone on display at their success can be measured, whether it’s a lift breaking experiences coming to nine Six Flags parks local park. in sales or increased brand awareness, is - North America’s first Virtual Reality (VR) Roller agreed upon before the partnership begins. Coasters - taking its signature brand of thrills to Activision “Call of Duty” 2. Safety and guest experience first. the next level and beyond in fully immersive, virtual Six Flags and Activision partnered in support of During the initial brainstorming process, riding experiences using Samsung Gear VR powered the 2015 release of Call of Duty®: Black Ops III by Six Flags is open to all ideas, and they by Oculus. re-naming the Apocalypse roller coaster at Six Flags love thinking outside the box. But their Magic Mountain the “Shadows of Evil” The Ride. For Coca-Cola commitment to safety and the guest the first time in the park’s history, the wooden coaster experience is always priority number one. Coca-Cola® and Six Flags continue their long- was transformed for Fright Fest, transporting guests standing partnership by refreshing guests as the to the 1940s Film Noir-inspired Morg City, including 3. Be choosey. Official Soft Drink of Six Flags. The association zombie encounters and more. This marked the third Six Flags strives to work with partners that includes fully integrated marketing, food service year Six Flags and Activision joined forces to support are relevant to the guest experience and and sponsorship elements at every property, the Call of Duty® series, building off the success appropriate for the theme park experience. including TV commercials, custom-made vignettes of the national pre-order retail program supported on award-winning Six Flags TV, digital out-of- inside parks and at GameStop stores. 4. Quality over quantity. home networks, online at sixflags.com, and via Six Flags values key partners that can deliver experiential marketing. Six Flags and Coca-Cola Allegra® Allergy a meaningful opportunity for brands to work collaboratively on launching unique beverage Allegra® Allergy expanded their partnership in 2016, interact with guests, rather than having a innovation concepts, including the expansion and returned as the presenting sponsor of Opening plethora of ineffective or trite partnerships. of the Coca-Cola Freestyle™ stations, and is the Weekend at participating Six Flags parks across the Borges shares, “We love to come up with official national sponsor of The Coca-Cola July 4th country. As the official event sponsor, Allegra was ‘never been done before’ concepts.” Fest, which includes exclusive ride times, product integrated into each participating park’s promotion sampling and extravagant firework shows. of opening events and featured in-park as Six Flags 5. Evolve with technology carefully. welcomed guests for the new season. The year-long The digital space can be an amazing Mars Chocolate North America program includes Allegra brand and promotional resource for Six Flags when it comes to Mars, Inc. is “The Official Chocolate of Six Flags,” messaging across Six Flags’ award-winning Media interacting with guests in a more relevant including brands 3 MUSKETEERS®, DOVE®, Networks, as well as social and online channels. The way. But it’s about using technology for M&Ms®, MILKY WAY®, SNICKERS®, and TWIX®. program also includes a national sweepstakes and what makes sense to enhance the overall The partnership utilizes integrated marketing with custom event day featuring exclusive ride time after experience, rather than just jumping to the several in-park and in-market promotional programs the parks closes to the public. new, shiny tech toy.

27 Our relationship exponent would not be complete without the generous dedication of the incredible OP-ED agencies and media companies who donate their time and creativity to produce and promote our PSAs pro bono and provide us with $1.6 billion of donated RELATIONSHIPS FOR SOCIAL GOOD placements a year. R/GA, JWT, and BBDO are just a handful of the brilliant creative companies that work BY LINA RENZINA on our social good campaigns. Public Relations and Social Media, The Advertising Council MAINTAIN STRONG TIES Find the right partners that believe in your message The Ad Council began during World War II as a government initiative to rally support and who will walk the walk. around war efforts. Since then, we’ve evolved into an independent not-for-profit organization that partners with other non-profits and government agencies to produce We offer our partners and their employees the public service communications campaigns to influence behaviors and create social opportunity to do good with their everyday jobs. Our change. Our partners are national in scale and issue experts in their fields; examples partners believe in our campaigns and are committed to fulfilling their Corporate Social Responsibility include Feeding America, Autism Speaks, and the Centers for Disease Control and (CSR). These meaningful brand relationships ground Prevention (CDC). our campaigns and establish them to the general

public. Brand recognition propels our message to We have strong ties with brands that spread our messages. Often, these brands put aside reach the widest possible audiences. their differences to work together for the greater good. Our historic ties in the advertising and media industries contribute to our donated media and creative services model. We’re in it for the long haul. These relationships are not one-off collaborations; some campaigns, like the iconic Smokey Bear, have been in our portfolio for over 70 years. Additionally, we value in person interaction to strengthen relationships. Through our Annual Dinner, conferences, and award ceremonies, we make a point to connect with our partners and sponsors in real life.

COME TOGETHER FOR LOVE Last spring, we launched our diversity and inclusion campaign called Love Has No Labels. The online video was released in partnership with Upworthy. Upworthy was the perfect partner for this campaign because of its “feel good” content and wide audience reach. This audience was likely to connect and share the video, resulting in over 160 million views. The partner brands — PepsiCo, Coca-Cola, State Farm, Unilever, and P&G — came together for this campaign and for

SITUATION >> THE RELATIONSHIP EXPONENT the powerful message that Love Has No Labels. Each brand found its own way to activate the message in a way that seamlessly fit into its existing brand strategy. We asked the brands to remove the labels on their digital and social presence and stand with us as a unifying voice. The campaign went viral with over 160 million views and was dubbed the second most viewed video of 2015. But most importantly, the tracking study shows statistically significant shifts in behaviors and attitudes towards bias. How could it not, with all of us working together to promote diversity and inclusion?

COMMUNICATE DIGITAL KINDNESS To amplify the call to stand against bullying, we rallied Silicon Valley big dogs — Facebook, Apple, Google, Snapchat, Twitter, Reddit, Kik, and Whisper — to target young people and activate the anti-bullying message. The tech partners became ambassadors for the digital-friendly message and put WHAT DOESN’T WORK as ambassadors to campaigns that were authentic to their muscle behind the anti-bullying message by their interests. Forcing a partnership or relationship will not help empowering young people to combat bullying online either party. We strive to find the right fit, either Our strong roots in many industries create successful with real tools. with a campaign sponsor or brand partner. If the campaigns and measurable results. Our relationships Those tools took a variety of forms. Snapchat relationship feels disingenuous internally, your widen the reach of a message and empower developed two custom filters, seen tens of millions of audience will pick up on it. ambassadors for our causes. The connection with our times. Reddit changed its logo to include the emoji. audience is a crucial relationship we try to form for In June 2015, we launched a social influencer Twitter donated a custom emoji; every time someone each campaign. Our partners — corporate, NGO, and partnership program called Creators for Good. In tweeted #IAmAWitness, the tweet was auto- non-profit — remind our audiences that we’re all in this program, influencers on YouTube, Snapchat, populated with the emoji image. To date, Whisper this together. ■ and Instagram are paired with a campaign to which has driven hundreds of thousands of impressions they feel a passionate connection. Aside from the through monthly featured posts. THE AD COUNCIL is a private non-profit organization campaign guidelines for influencers, these matches with a rich history of marshaling volunteer talent from Some of the biggest social influencers across are carefully chosen to ensure that they are the the advertising and media industries to deliver critical YouTube, Instagram, Vine, and Facebook — including perfect fit for the message, the Ad Council, and messages to the American public. Having produced Grace Helbig, Glozell Green, and JoshuaDTV — drove our sponsors. So far these relationships have been literally thousands of PSA campaigns addressing the awareness of the emoji by creating videos for their incredibly successful, with 11 influencer videos, most pressing social issues of the day, the Ad Council channels and filming a three-minute PSA that has amassing over 11 million views. Influencers such has affected, and continues to affect, tremendous been viewed more than 2.9 million times on YouTube as Meg DeAngelis (Texting & Driving) and Meghan positive change by raising awareness, inspiring action, and Facebook. Rienks (Teen Dating Violence) have come onboard and saving lives. @adcouncil

Images from Love Has No Labels and I Am Witness campaigns appear courtesy of The Ad Council © 2016 29 THE LAST WORD

Symfluencesim-flü-ən(t)s | noun

DEFINITION: The effect of two different parties uniting to create something new, using their respective influence, resources, and skills to the advantage of both parties.

USE IT IN A SENTENCE: Virtual reality reporting became accessible and immersive through the symfluence of Google Cardboard and the New York Times’ NYT VR.

ETYMOLOGY: From the 19th c. Greek σύν/sún (with, together) and the Latin fluere (to flow).

RELATED FORMS: Symfluencer, noun Symfluential, adjective

SITUATION >> THE RELATIONSHIP EXPONENT ISSUE #3: THE RELATIONSHIP EXPONENT >> SPRING/SUMMER 2016 WWW.SITUATION.NYC