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The Good, the Bad and the Ugly ofElectronic Communications
Download Slides at: www.danavan.net/wspra
Dana VanDen Heuvel
Dana is the founder of The MarketingSavant Group and a widely recognized specialist in emerging marketing technologies such as blogging, social media, RSS, Internet communities and interactive marketing trends and best practices and speaks regularly on these topics at industry events. Dana is the creator of the American Marketing Association ―TechnoMarketing‖ training series and the author of the AMA‘s Marketech ‘08 Guide To Marketing Technology and the recent e-book, Social Networking: MySpace, YourSpace and TheirSpace.
After-Event Slides & Resources
The slides and resource links are available electronically after the event:
www.danavan.net/wspra
The traditional marketing model is being challenged, and (CMOs)
can foresee a day when it will no longer work.
McKinsey Quarterly, 2005, Number 2
Crisis In Mass Marketing 18%: Proportion of TV advertising campaigns generating positive ROI
54 cents: Average return in sales for every $1 spent on advertising
256%: The increase in TV advertising costs (CPM) in the past decade
84%: Proportion of B2B marketing campaigns resulting in falling sales
100%: The increase needed in advertising spend to add 1-2% in sales
14%: Proportion of people who trust advertising information
90%: Proportion of people who can skip TV ads who do skip TV ads
80%: Market share of video recorders with ad skipping technology in 2008
95%: The failure rate for new product introductions
117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965
3000: Number of advertising messages people are exposed to per day
56%: Proportion of people who avoid buying products from companies who they think advertise too much
65%: Proportion of people who believe that they are constantly bombarded with too much advertising
69%: Proportion of people interested in technology or devices that enable them to skip or block advertising
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Information Proliferation
Media Fragmentation - Then, and Now
1960 Now
6 TV channels/home 130
8,400 Magazines 17,300
4,400 Radio stations 13,500
None Internet stations 35,000 +
None Pages on Google 12 B +
None Blogs 200 M +
Source: Marketing Leadership Council - www.mlc.executiveboard.com
Where Everything Is Headed
2008 2050?
Digital
Non-Digital
Today
Source: Google1996
360 Digital Marketing World
Online Media
NewsCommunity
sites
Special Interest
EmaileNewsletterseCardseMail
Wikis
FolksonomySocial
Bookmarking
Digital Devices Phones DVR
(Tivo)PDAs Game
ConsolesMicrocasting
VBlogs
Digital Radio
WebcastingPodcasting
Syndication
Real Simple Syndication (RSS)
Content Partnerships
ConversationsBlogs
Listservs
Message Boards
Chat Rooms/Events
IM
Text-messaging
Photo Blogs
Viral Content
Web SitesPress Rooms
w/RSSOnline
AdvertisingGames & Contests
Search
Keyword Marketing
Blog Aggregators
Blog Search Engines
Search Engine Optimization
Manifestos
eAlerts
Citizen Action
Meetups
Source: Ogilvy
Source: Brian Solis via Flickr
SOCIAL MEDIA IS AN UMBRELLA TERM
THAT DEFINES THE VARIOUS ACTIVITIES
THAT INTEGRATE TECHNOLOGY,
SOCIAL INTERACTION, AND THE
CONSTRUCTION OF WORDS,
PICTURES, VIDEOS AND AUDIO. http://www.wikipedia.org
Social Media: Defined!
More Simply Put:
―Social Media is
people having
conversations
online.‖
The conversations are powered by…
Blogs
Widgets
Micro Blogs
Online Chat
RSS
Social Networks
Social Bookmarks
Message Boards
Podcasts
Video Sharing Sites
Photo Sharing Sites
Virtual Worlds
Wikis
(…just to name a few)
Who‘s Out There?
More than half of all online American teenagers use
social networking sites.
64% of online teenagers created content
*
*
Who Participates in Social Media?
How do YOU
participate
online?
10 Questions For You
1) Do you read blogs? Which ones?
2) Do you have a personal blog? What's it about?
3) Do you participate in at least one social network? Which one?
4) Have you ever uploaded a video online? What did you use to do
it?
5) What's your favorite search engine. Why?
6) Have you ever used an online classified service like craigslist?
7) Besides making phone calls—how else do you use your mobile
phone?
8) Have you ever registered a domain name?
9) Do you use social bookmarks or tagging?
10) Do you use a feed reader of some sort? Which one? Why?
“The Good”
Jones Soda – Youth BlogsCompany: Jones Soda
Industry: Consumer Packaged Goods
Blog URL: http://www.jonessoda.com/blogs/
Launch Date: Multiple (individual bloggers)
David vs. Goliath:
•Grassroots marketing efforts
•Well targeted to Gen-Y consumer base
•Blogs align with underground image and the
brand stewards, (non-traditional athletes) notably
skateboarders,
Blogging Model:
•Loose connection of independent youth &
athlete bloggers
•Event driven marketing/blogging
•Community building as a corporate strategy
Brand Community
[Blogs]:
•Built on context and
relevance of content
•Consciousness of
kind
•Create a community
around yourself
Facebook Success: Apple Students
Embracing existing community
Free product sample
eCommerce
Cross Promotion
Results
420,000 users
12,000 topics
Indium Social Media Strategy
25% reduction in marketing spend
Major account wins
Entire organization involved
in the ‗community‘
Stonyfield FarmCompany: Stonyfield Farm
Industry: Organic dairy
Blog URL: http://www.stonyfieldfarms.com/weblog/
Blogs: 4
Results:
•Direct comments from readers, engaging in
conversation
•Generate ‘good will’
•Growth in email newsletter subscribers
Recent Per Month Visits
•Strong Women Daily News: 15,603
•The Daily Scoop: 4,049
•Creating Healthy Kids: 9,659
•The Bovine Bugle: 28,237
Blog Objectives:
•Capitalize on their "personality" in the world--they
care about the environment
•Maintain touch with loyal, long-standing customer
base
•CEO, Gary Hirshberg, wants to "be real" and saw
the blogs as a way to do that--inspired in part by
the success of blogs within the Howard Dean
presidential bid of early 2004.
Source: http://www.businessblogconsulting.com/2004/12/business_blog_c.html
Power of Twitter
Beth Kanter 2008: Can conference room of connected
people get 250 people to donate $10 by the end of the
conference?
$2,657 from 112 donors in 90 minutes
Twitter Community Lends Support
.
$3500 Collected In The First 15-hours!
Widget
Voltz & Grobe (Diet Coke + Mentos)
20M video downloads
$10M in free publicity for Mentos
½ its annual marketing budget
1.5B ad impressions for Coca-Cola
Southwest is Winning with Widgets
2 Million Downloads
Generated $150M
45% of customers book
again
July ‘07, blog attracted
100k visits, 40M
uniques
Past 12 months, blog
has received 6,200
comments (20 per day)
Integrated Social Media Strategy
Goodwill Repositioning
Blog
YouTube
MySpace
ebay Store
A Few Stats
Over 11,500 unique visitors to the virtual fashion show 9/12 launch
Over 42,000 page views
16% of fashion show visitors have been converted into online Goodwill shoppers
Fashion Show Visitors from 31 countries and 48 states plus DC
48% of fashion show visitors are from the DC, MD, VA region (the area we serve)
Blog is averaging between 600 & 700 visitors a week
5.6% of blog visitors are being converted into online Goodwill shoppers
Blog visitors from 77 countries and all 50 states
Brick & mortar stores during the two weeks following the launch of the fashion show:
Customer count + 6.6%
Rack sales (clothing) + 16.5%
Total sales + 8.275%
http://dcgoodwillfashions.blogspot.com/
Pontiac Example
“The Birmingham-based chocolate firm said
the comeback was a response to online
petitions and campaigns on social
networking sites such as Facebook and
Bebo..”
Cadbury Wispa Comeback
80‘s candy bar brought
back to life
Facebook group, online
petitions, social media
buzz
Cadbury was listening!
http://news.sky.com/skynews/Home/Sky-News-
Archive/Article/20082851280368
Jeep‘s ―Jeep 2.0‖ Strategy
1. Portals (using contextual/Google and behavioral/AOL targeting)
2. An IM avatar development program
3. Online video - A new campaign site which was redesigned to host rich-media offerings like video vignettes
4. Virtual "test drives―
5. Ads on free music download sites with viral marketing (pass this song on to your friends capability)
6. Microsites
7. Traditional TV with product placement
8. Events and bowl games - An online fantasy football sponsorship w/print component
9. Print ads
Jeep –
The way beyond trail
A choose your own adventure
interactive film
User integrates him/herself directly
into the video and story reflects
their personal registration selections
Program provides clues in exchange
for ―tell a friend‖
Product directly integrated and
demonstrated through plot line of
film
Jeep Hosts Fans in Facebook
…and Courts Fans from Any
Communtity
InDecision 2008
Both campaigns provided amazing lessons
This is what social media is all about. This campaign is the product
of superior multi-channel audio, video and text content distribution
using new and traditional media platforms.
Getting the message out.
Keeping the message fresh.
Sticking to the story.
Tracking and staying in touch with the interested visitor.
Developing a worthwhile engaging relationship with those who
can support you and your concerns.
How They Stacked Up
Source: Jeremiah Owyang
“The Bad”
Digital & Social Media Conversations
“There’s a real cost to ignoring the conversation.”
No Love for Iams
What if half the store shelf
said, “Don’t Touch This?”
(evangelists)Word of Mouth Among Airlines
Source: Harvard Business Review
Word Of Mouth Is A Powerful Force
Wal-Mart:
Disclose, Disclose, Disclose!
Chevy Tahoe / The Apprentice
Comcast Learns Social Media…
Comcast tech filmed
sleeping…waiting for his own
customer service team.
A viral video & blog sensation (of
course!)
Popular blogger ‗Tweets‘ his
Comcast woes
Comcast calls him 20 min later
and resolves his issues!
“The Ugly”
Kryptonite: No Match for Blogs!
―Rahodeb‖
Unethical, covert blogging by Whole
Foods CEO John Mackey
According to FTC documents, Mackey
had been posting comments for the
past eight years until last August.
Accused of hyping his
own company's stock
and running down rivals.
http://online.wsj.com/article/SB118454129429667079.html?mod=opinion_main_review_and_outlooks
Other Notable Disasters
“Content is the new democracy
and we the people, are ensuring
that our voices are heard.”
Brian Solis, “The Social Media Manifesto”
The Relentless Pursuit…of the NBT
Addiction To Bright + Shiny Objects
―Web 2.0‖ Is The Mother of all Bright +
Shiny Objects
Symptoms Of B.S.O.S. (Bright + Shiny
Object Syndrome)
A soft spot for buzzwords
A disposition to regurgitate the latest buzzwords you just
overheard
An insatiable desire to sell ―the latest thing‖ to clients
A tendency to believe the hype, without investigating for
yourself
A tendency to dismiss without investigating for yourself
Excess use of the word ―viral‖ viral…viral…viral.. viral…
Lack of interest in research or first hand experience
Total disregard for customer, brand or business needs
So, Now What?
9 BIG THEMES
9 Big Themes
1. We‘re in the BETA economy
No other medium allows you to launch, test, re-launch, test, measure, tweak, re-tweak, evolve, re-launch, quite like the Web
Folks like Guy Kawasaki and Seth Godin preach about this all the time. Guy launched his Truemorsservice on a shoestring budget and uses Twitter to promote it.
When budgets get cut – marketers look to digital for new ways of testing out ideas vs. big bang and big budget initiatives (think Bud.TV)
9 Big Themes
2. Marketers use existing platforms
Why build from scratch when you can use NING as a social network, Wordpressas a CMS, Basecamp as a Collaboration tool and Concept Share as a way to co-create.
Now is a great time to dig into the already existing platforms (in addition to existing social networks).
9 Big Themes
3. Marketers are just switching tubesConsider skipping mass TV all together.
It worked for BMW films and with YouTube firmly in place — it can even work with less production values and high priced talent.
Consider ways to make the participant the star!
9 Big Themes
4. It‘s all about the tubes…
BRANDS CONSUMERS
In 1965, 80% of 18-49 year-olds in the US could be reached with three 60-second TV spots. In 2002, it required 117 prime-time commercials to do the same.‖ (Jim Stengel, Global Marketing Officer, P&G)
A US hour of prime time TV carried21 minutes of advertising, Late Night network shows like Leno or Letterman carry 31:27 (TNS Media Intelligence, Q1 2006)
Big Six study (US): People with PVR‘s watch 12% more TV, yet 90% of them adskip (Germany : 88.2%)
54% of US consumers avoids products & services which ―overwhelm‖ with advertising (Yankelovich Partners)
85% of Chinese stop watching TV during commercial breaks. More than half change the channel, while the rest do housework, eat, chat or use the bathroom. (McKinsey & Co.)
9 Big Themes
5. Marketing: To touch point infinity, and
beyond! Don‘t put all your digital eggs in one
basket like a site or banner campaign—look at smart ways to distribute the experience across as many touch points as possible.
Be smart about it. Think about how your user thinks and acts digitally and meet them in them medium.
Of course this doesn‘t have to be digital, but you might get more bang for your buck.
9 Big Themes
6. Marketers trade focus groups for
Digital Ethnography
Research dollars converted to social media currency (Victoria‘s Secret)
Look to the internet & social media for insights.
Social Networks and search engines can be rich ethnography tools. I‘m not advocating to abandon field research—but before you slash that discovery phase, think about how digital can be used to find things about the behavior of your target.
9 Big Themes
7. Marketers think outside the banner
Think about traditional media buys such as banners differently.
They should no longer be the first line of offense in a digital initiative.
Quality may replace quantity—Apple’s recent entry into the online banner space taught us that banners can still work—but the ROI improves with creativity.
Social ads, blog outreach and other ‗participation‘ based media spends could prove more effective.
9 Big Themes
of consumers don’t believe that
companies tell the truth in
advertisements76%Yankelowich
9 Big ThemesYankelowich
8. Marketers embrace ‗delight by function‘
The digital media/ tools/ network/ widget becomes the product…and the marketing
When tempted to cut budgets in digital product functionality—think again.
Adding or improving existing functionality may lead to product preference which increases revenue, sales and even saves money. (think widgets)
9 Big ThemesYankelowich
9. Marketers listen to New Media
Digital gives you many ways to listen to customers
– from direct engagement like Dell‘s IdeaStorm
or My Starbucks Idea to simple surveys or even
A:B testing.
All are excellent examples of using digital to
turn up the volume on customer desires.
Those brands that do the best job listening will
weather any downturn.
How to control millions of inaccurate
and divergent conversations ?
YOU DON’T
Consumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go.
A.G. Lafley, CEO and Chairman of P&G, October 2006
(cc) Lynette Webb, 2006
“Every brand needs to be relevant and part
of a community. They need to open a
dialogue with their consumers, but they also
need to be prepared for what could be
negative feedback and I don’t think all
marketers are ready for that.”
- Bob Ivins, EVP, comScore
“L.A.M.P”
LISTEN
Where are your customers online/offline?
Blogs, Social media tools (e.g. LinkedIn Answers), Discussion Forums, Twitter, etc…/Events
Monitor these conversations:
Find your brand using Google Alerts, Keotag.com, Boardreader.com and Technorati.com
Use a central tool to track the different conversations happening around your company. Most online conversations are RSS enabled, barring a few Yahoo! groups that don’t support RSS. Use a RSS reader (e.g. Bloglines.com) to gather all these conversations into a central repository and create a folder that you check on a daily basis.
AWARENESS
Calculate Brand perception within these conversations
News & Blogs (Google search, Google Blog search, technorati search)
Keyword mentions & incoming links
Corporate Blog (Unique users, hits, trackbacks, comments)
Brand Scoring system (how much buzz are you getting vs. competition)
Assign a marketer to staying aware and alert to what’s going on in social networks and social media
Around your organization
Around your competitors
Around your industry
MEASURE
The value of social media presence can be calculated by simple methods:
ReachHow many people are influenced by our social networking efforts?
AcquisitionHow much of their attention have we acquired through connections, website visits, and time spent engaging with us?
ConversionHow many have we ‘converted’ toward the ultimate goal (subscription, sales, leads, registrations, evangelists, etc.)?
RetentionAre we reducing customer churn, lowering our overall cost to serve, increasing the purchase value/volume/frequency, and growing the lifetime value of our customer base?
MEASURE
Another take on the process of measuring social media value
Source: Forrester Research
PARTICIPATE
Create a strategy around how you wish to participate!
You have the following options:
Be where the users are
Facilitate easier means of communication with them
Create brand evangelists
Be a source of information on the organization
Respond swiftly and honestly
Start publishing content
Stir internal company conversations
Improve product and user experience
Top ten obstacles to new media
1) Inadequate resources (time and/or money)
2) Disconnected employees
3) Resistance to change
4) Desire to control communication/fear of unknown
5) Not convinced of benefits
6) Perceived lack of IT capabilities
7) Resistant culture
8) Senior management won‘t allow it
9) Legal/governance/regulation issues
10) Would require too much training
Five Keys to Success
Be Generous With Your Knowledge Share beyond the marketing speak
Be Consistent Calendar your activities – daily, weekly, monthly
routine
Always Deliver Value Listen, think, revise, teach, repeat
Take A Stand Take your strong positions to market
Focus On The Long-term Benefits Track your results in months & years
New Media Homework!
Find blogs in your area of interest using Technorati
Seek out podcasts for marketers (or whatever you fancy) in iTunes or Podcast Alley
Sign up for a free RSS reader (Bloglines, Google Reader) and consume feeds
Join LinkedIn
Anyone not visited YouTube yet? Look for your favorite things there too
New Media Extra Credit
Become a regular commenter on blogs that interest
you
Join Facebook & ask a question on LinkedIn
Start a blog of your own on a topic of your choice
Create a podcast
Switch over some of your newsletter subscriptions to
RSS feeds
Get a Flickr account to share photos
The Good, the Bad and the Ugly of Electronic Communications
Q & A
Need help after the presentation? Email dana@marketingsavant.com
Download slides at: http://www.danavan.net/wspra
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