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Just when marketers thought it was safe to employ mainstream digital strategies an increasing number of hyper-connected customers are changing the game with social media – bypassing strategies like search and email marketing altogether! They’re choosing non-traditional paths to discover products and services. This presentation gives a hype-free look at what’s driving today’s ’social’ shift and understanding how to adapt existing marketing and business models to drive results. Here, I discuss why customers are hungry for experiences– not just products/services and how successful marketers are converting into publishers. I show you how to build a business case for or against social marketing investments.
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SuddenlySuddenlySocialSocial
Jeffrey G. Molander
Molander & Associates Inc.
Jeffrey G. Molander
Molander & Associates Inc.
What Should Concern YouWhat Should Concern You
• Pre-crisis focus– Short-term revenue: Advertising – Reliance on old (media) model for wealth – Social engineering posing as innovation
• Search & affiliate marketing• Spam, adware -- the stuff that REALLY works
– Endorsed & supported by marketers who could afford it!
• Pre-crisis focus– Short-term revenue: Advertising – Reliance on old (media) model for wealth – Social engineering posing as innovation
• Search & affiliate marketing• Spam, adware -- the stuff that REALLY works
– Endorsed & supported by marketers who could afford it!
The OpportunitiesThe Opportunities
Kill advertising as we know it & make something better!
Kill advertising as we know it & make something better!
Doc SearlsCo-author, The Cluetrain Manifesto
Fellow at Harvard’s Berkman Center for Internet & Society
Doc SearlsCo-author, The Cluetrain Manifesto
Fellow at Harvard’s Berkman Center for Internet & Society
“Advertising is about supply finding and ‘creating’ demand.
[There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”
“Advertising is about supply finding and ‘creating’ demand.
[There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”
The OpportunitiesThe Opportunities
Content + Community“Crowdsourcing”
Content + Community“Crowdsourcing”
$30,000,000 (2007)$30,000,000 (2007)
“It was never about the computers. It was never about the applications. It was never about the sales channels. The Internet was always about the people, which is why email, IM, multi-player gaming and similar developments have always been the ‘killer apps’ of the social Web.”
Brian ClarkGMD Studios
Content MarketingContent Marketing“To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see… With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains.”
“To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see… With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains.”
Greg VerdinoCrayon
Greg VerdinoCrayon
Look Familiar?Look Familiar?
Look Familiar?Look Familiar?
Look Threatening?Look Threatening?
FundamentalsFundamentals
Elements of the Social WebElements of the Social Web• Websites (text)
– Blogging– Social networks (biz and personal)– Bookmarking (del.icio.us Ma.gnolia StumbleUpon)
• Multi-Media– Video
(amateur & pro, social networks, etc.)– Audio & podcasting
• Websites (text)– Blogging– Social networks (biz and personal)– Bookmarking (del.icio.us Ma.gnolia StumbleUpon)
• Multi-Media– Video
(amateur & pro, social networks, etc.)– Audio & podcasting
Elements of the Social WebElements of the Social Web
• Mobile– Opportunity is clear: 2.5
billion mobile phones – Less than 2/10ths of a
percent of the total advertising spent worldwide
• Mobile– Opportunity is clear: 2.5
billion mobile phones – Less than 2/10ths of a
percent of the total advertising spent worldwide
Source: Informa Telecoms & Media 2007Source: Informa Telecoms & Media 2007
• Collaborative– Shopping– Working
• Collaborative Narcissism – “Lifestreaming” & Micro-blogging– Multi-dimensional (mobile+Web)
• Collaborative– Shopping– Working
• Collaborative Narcissism – “Lifestreaming” & Micro-blogging– Multi-dimensional (mobile+Web)
Elements of the Social WebElements of the Social Web
Elements of the Social WebElements of the Social Web
R.S.S.R.S.S.
Elements of the Social WebElements of the Social Web
• Websites • Multi-Media• Collaborative
– Shopping– Working– Socializing
• Tech: RSS, Widgets, Java, Ajax
• Websites • Multi-Media• Collaborative
– Shopping– Working– Socializing
• Tech: RSS, Widgets, Java, Ajax
Experiential!Experiential!
What’s Changing?
(really)
What’s Changing?
(really)
The New Reality
Dr. David WeinbergerAuthor, Speaker, Academic
Marketers:“There is no marketfor your message.”
Social ‘Currency’Social ‘Currency’
Social ‘Currency’Social ‘Currency’• An alternate ‘Currency’ for the Web
– Consumer skepticism – Trust & authenticity– Word-of-mouth recommendations
• Influence• Challenges
– How to be trusted?– Authenticity requires transparency!– What are the tactics?
• An alternate ‘Currency’ for the Web– Consumer skepticism – Trust & authenticity– Word-of-mouth recommendations
• Influence• Challenges
– How to be trusted?– Authenticity requires transparency!– What are the tactics?
Trust as CurrencyTrust as Currency
Source: Nielsen 200726,486 internet users in 47 different countries
TrustTrust
TIMETIME
Consumers’ Time OnlineConsumers’ Time Online
Source: Online Publishers Association (Internet activity Index, January 2008)
• “Content” 43 %
• “Communications” 28.7 %
• “Commerce” 16.1 %
• “Community” 7.5 %
• “Search” 5.0 %
Content & Community Sites:Commercial Intent
Content & Community Sites:Commercial Intent
Source: Online Publishers Association (Internet activity Index, January 2008)
• “Content” + Community = 51 %– Comparing– Researching– Gathering & sharing opinions
Prime Time is ANYtime
Sling is THE Thing
New York – Philadelphia TrainNew York – Philadelphia Train
Address ChangePublish!
Address ChangePublish!
Customers• Don’t want to be “sold to” and distrust• Distracted (discovering, communicating)• Consuming & creating content
ON THEIR SCHEDULE
Customers• Don’t want to be “sold to” and distrust• Distracted (discovering, communicating)• Consuming & creating content
ON THEIR SCHEDULE
How to Publish& Drive Sales
(getting invited to the party)
How to Publish& Drive Sales
(getting invited to the party)
“You are interrupting their life. All advertising is unwanted.
So if you’re going to crash the party bring some Champagne with you.”
Bob ThackerOfficeMax Inc.
GoalsGoals• Where to Party
• Making Champagne
• Who to Invite
• Risk Management
• Where to Party
• Making Champagne
• Who to Invite
• Risk Management
Where?Where?
Exclusive Sponsorship
The Party!
Who’s at the Party?
EvangelistsEvangelists
“Bringing the good news" “Bringing the good news"
Influencing… Influencing…
Story Telling “Passionistas”
• 43% spend 12 hours+ per week visiting sites related to their obsession
• 50% of consumers will consider buying if it’s associated with their passion
• 70% are making purchases based on experiences
• 43% spend 12 hours+ per week visiting sites related to their obsession
• 50% of consumers will consider buying if it’s associated with their passion
• 70% are making purchases based on experiences
Source: MediaVest, Yahoo and Conifer Research 2008Source: MediaVest, Yahoo and Conifer Research 2008
Allows them to feel different or
better about themselves
What are they Doing at the Party?What are they Doing at the Party?
• CONTROLLING & EXPERIENCING
• Discovering
• Meeting
• Trading (barter, auctions, buying)
• Borrowing, cheating and stealing
• Sharing stories
• Creating!
• CONTROLLING & EXPERIENCING
• Discovering
• Meeting
• Trading (barter, auctions, buying)
• Borrowing, cheating and stealing
• Sharing stories
• Creating!
(using the Social Web)(using the Social Web)
Party PlanningParty Planning
MakingChampagneMakingChampagne
3 Types of Story Telling Participants
Bradley HorowitzYahoo!
Tools of Production are Affordable
Accessible
Tools of Production are Affordable
Accessible
Rise of The ProSumerRise of The ProSumer
Anyone with a…Anyone with a… Can be a…
Publisher
Photo Journalist
Radio Host
Author
Can be a…
Publisher
Photo Journalist
Radio Host
Author
Rise of StoryCurators & Filters
Rise of StoryCurators & Filters
The Business Goal ofSocial Web CompaniesThe Business Goal of
Social Web Companies
Make EVERYONE a creator!100% - creators
100% - synthesizers100% - consumers
Try to make it EASIER for everyone to participate in all roles.
Make EVERYONE a creator!100% - creators
100% - synthesizers100% - consumers
Try to make it EASIER for everyone to participate in all roles.
YOUR GoalYOUR Goal
Make everyone an EVANGELIST
On your turf
Make everyone an EVANGELIST
On your turf
Party PlanningParty PlanningCustomer Reviews&Word of Mouth
Customer Reviews&Word of Mouth
The Recommendation AgeThe Recommendation Age
Customer-GeneratedReviews & Recommendations
Customer-GeneratedReviews & Recommendations
Why?Why?
AuthenticTrust is Implicit
Authoritative*Reputation-based
AuthenticTrust is Implicit
Authoritative*Reputation-based
The Winner Is…
Runner Up…Runner Up…
Where to Apply Where to Apply
Product Pages
(descriptions)
ProductPages
(catalogs)
Where to ListenWhere to Listen
“Fan Mail” Product Reviews Contests
Product Designs Suggestions
Community SitesEnthusiast Commercialsor Mock Commercials
RecommendationsRecommendations
Source: Keller Fay Group 2008Source: Keller Fay Group 2008
• Americans have 3.5 billion brand-related conversations per day
• 80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising
• The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship
• Americans have 3.5 billion brand-related conversations per day
• 80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising
• The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship
Do Product Reviews Have Impact?Do Product Reviews Have Impact?
Source: The eTail Group 2008Source: The eTail Group 2008
Web-Video-Print Story Telling Integration
Web-Video-Print Story Telling Integration
The RisksThe Risks
Threats to BrandsThreats to Brands
–Customer Complaints (Damage Control)• No barrier to entry• No truth / validity filter• Exposure = credibility
–Monitor• Watchdog Sites (ripoffreport.com)• Web Communities• Custom Sites (wakeupwalmart.com)• YouTube
–Customer Complaints (Damage Control)• No barrier to entry• No truth / validity filter• Exposure = credibility
–Monitor• Watchdog Sites (ripoffreport.com)• Web Communities• Custom Sites (wakeupwalmart.com)• YouTube
WHO You Invite MattersWHO You Invite Matters
“It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].”
John LazarchicPetco
John LazarchicPetco
Designing Experiences
Designing Experiences
Source: "Passionistas: The New Empowered Consumer" Conference September 2007
Source: "Passionistas: The New Empowered Consumer" Conference September 2007
Edwind WongDir. Customer Insights
Yahoo!
Edwind WongDir. Customer Insights
Yahoo!
"It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”
"It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”
$30,000,000 (2007)$30,000,000 (2007)
Secret Sauce of “Crowdsourcing?”Secret Sauce of
“Crowdsourcing?”
Emotions!Emotions!• Suppliers (who are customers)
– Approval of community– Financial rewards
• Community– Participatory– Cause-minded– Cool-minded
• Suppliers (who are customers)– Approval of community– Financial rewards
• Community– Participatory– Cause-minded– Cool-minded
Crowdsourcing!Crowdsourcing!
Building a RoadmapBuilding a Roadmap
Jeff’s Golden Rules… Jeff’s Golden Rules… 1. Identify the right micro-verticals where
consumers engage deeply2. Activate new or existing consumer
communities that welcome advertiser participation
3. Make the ‘network effect’ work for you through syndication & aggregation
4. Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption
1. Identify the right micro-verticals where consumers engage deeply
2. Activate new or existing consumer communities that welcome advertiser participation
3. Make the ‘network effect’ work for you through syndication & aggregation
4. Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption
Case Studies
Best Practices
Case Studies
Best Practices
Best Practice:Marketers as
Publishers
Best Practice:Marketers as
Publishers
It’s SOCIAL!It’s SOCIAL!
Qualified Un-Qualified
List size 10,000 100,000
Cost per e-mail 1 0.15
Total cost 10,000 15,000
Conversion rate 10% 2.50%
Customers 1,000 2,500
Cost per order 10 6
Revenues $100,000 $250,000
The OpportunityThe Opportunity
• “Editorial bribes”• 3 per month• Targeted by gender • Click to long form content• Prone to sharing
• Blatant Call to Action• 1 Campaign/mo (with 3 f/u’s)
The SecretThe Secret
Editorial Bribes Keep ‘em Involved(and Campaigns Sell)
E-mail CTR vs Order ValueDormeo E-mail Campaign Data
0
2 0 0
4 0 0
6 0 0
8 0 0
1 0 0 0
1 2 0 0
1 4 0 0
1 6 0 0
1 8 0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
0
1 0 0 0
2 0 0 0
3 0 0 0
4 0 0 0
5 0 0 0
6 0 0 0
7 0 0 0
8 0 0 0
CTR Order Value
Take HomeTake Home
• Trust your instincts and act boldly• Stop all tactical activities that don’t have a
hope of nailing a STRATEGIC objective• Create authentic, honest relationships w/
customers and give them choice• Be fearless, experimental • Build trust-centric models that INFLUENCE
and PROMPT behaviors• Embrace long-term thinking and METRICS!
• Trust your instincts and act boldly• Stop all tactical activities that don’t have a
hope of nailing a STRATEGIC objective• Create authentic, honest relationships w/
customers and give them choice• Be fearless, experimental • Build trust-centric models that INFLUENCE
and PROMPT behaviors• Embrace long-term thinking and METRICS!
Resources• People
– Joe Pulizzi Junta42.com – Dave Chaffey (davechaffey.com)– Chris Kenton (chriskenton.com)– Ben Edelman (benedelman.org)
• Books– Branding Only Works on Cattle
(Jonathan Salem Baskin)– Open Brands (Kelly Mooney)– Convergence Culture (Henry Jenkins, MIT)– The Big Switch (Nick Carr) – Cluetrain Manifesto, 1999 (Searls, Locke, Weinberger)
Resources• Blogs
– MarketingVox (Digital Media News Filter)– Avinash Kaushik (Analytics)– APML.org (Attention Economy)– Adotas.com and ClickZ (Ad Industry News)– SEOBook.com (Search & Digital Economy)– ThoughtShapers.com (Leading eBiz Minds)– Web Analytics Association
(webanalyticsassociation.org)
