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Web 2.0 and Community Marketing
Francisco Hernández Marcos @franciscohm
Madrid, 4th December 2012
This document has been produced by 11 Goals & Associates. It is not complete unless supported by the underlying detailed analyses and oral presentation.
About me SHAMELESS SELF-PROMOTION
Education: Universidad Politécnica de Madrid, UNED,
London Business School, University of Chicago – Fundaciò
“laCaixa” & Fundación Rafael del Pino scholarships.
Firms worked for full-time: Abengoa, McKinsey&Co, ABN
AMRO, Real Madrid C.F.
Entrepreneurship: Crisalia
Social Media & Internet consulting: 11goals.com
Lectures & Speaker in 3 continents: The Wall Street Journal, Universidad Politécnica
de Madrid, London Business School, Cornell University, Politecnico di Milano, CEIBS
(Shanghai), Kungliga Tekniska högskolan, The Business Factory, Asociación J.W.
Fulbright Spain, ESCP Europe, UIMP, and several private companies.
Full profile: linkedin.com/in/franciscohm
1
“A child of five would understand this. Send someone to fetch a child of five.”
Groucho Marx (Duck soup, 1933)
2
What happened to Real Madrid’s social networks
Source: Famecount (now Starcount), Football Marketing
#1 sports team in social media worldwide
(sep 2011)
3
What happened to Real Madrid’s social networks
Source: AllFacebook.com
Only Spanish brand ever to be the most
active Facebook page
4
Agenda
Things are changing
Web 2.0 & Community MKT
Some useful tools and concepts
Sending a postcard…
6
Showing off who we have met or known…
7
Displaying where we have been…
Our parents
Our children (& ourselves)
8
Who decides what news are more important?
Gumersindo Lafuente: “Por primera vez en la historia, las audiencias controlan a los periodistas”
9
Who was the leader of the Arab Spring revolution? • 9 out of 10 Egyptians and Tunisians asked
in a poll said they used Facebook to organize protests and spread awareness
10
How do we play?
Offline, Social
5.7 mill. daily users
Source: App Data
Online, Non-Social
“Transactionalization” Online, Social
“Re-Socialization”
11
The path to social+online
Social Non Social
Online
Offline
Gaming
¿?
¿? SOCIAL
TECHNOLOGIES (Social relevance / real identities)
& INNOVATION
Supermarket Shopping
TV
Electronics Shopping
Travelling
ILLUSTRATIVE EXAMPLES
INFORMATION TECHNOLOGIES
Each segment has its own way and pace to be online and social
Source: 11 Goals & Associates
12
Inertia in the application of new technologies
Radio as newspaper… TV as radio…
Web 1.0 as newspaper… Web 2.0 as Web 1.0…
It always takes time to adapt to new technologies We expect years developing applications of current and future social technologies
Source: 11 Goals & Associates
13
Agenda
Things are changing
Web 2.0 & Community MKT
Some useful tools and concepts
World’s best brands according to Interbrand
Source: “Best Global Brands 2012”, Interbrand 15
Which of these ‘ads’ do you trust the most?
17
Customers trust each other, not the brand!
Source: Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews, by Molecular Inc.
76% of American consumers believe companies don’t tell the truth in advertising -Yankelovich (2005) 60% have a much more negative opinion of marketing & advertising than a few years ago - Yankelovich (2004) 78% say consumer recommendations are the most credible form of advertising - Nielsen (2007) 83% say online evaluations and reviews influence their purchasing decisions - Opinion Research Corporation (2008) 84% trust user reviews more than critics’ reviews - MarketingSherpa (2007) Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers - Edelman Trust Barometer (2006, 2007)
What form of advertising do consumers trust?
Source: Nielsen, Global Trust in advertising and Brand Messages, Abril 2012
92%
70%
58%
58%
50%
47%
47%
47%
47%
46%
42%
41%
40%
40%
36%
36%
33%
33%
29%
Recommendations from people I know
Consumer opinions posted online
Editorial content such as newspaper articles
Branded Websites
Emails I signed up for
Ads on TV
Brand sponsorships
Ads in magazines
Billboards and other outdoor advertising
Ads in newspapers
Ads on radio
Ads before movies
TV program product placements
Ads served in search engine results
Online video ads
Ads on social networks
Online banner ads
Display ads on mobile devices
Text ads on mobile phones
“Recommendations from people I know” is, by far, the most trusted form of marketing
However, “Ads on social networks” not really trusted
28.000 Internet users in 56 countries
Our growing circle of trust From “Me” to “Social”
Miguel
Mom Me Dad
Carlos
Enrique
Gonza
Carmen
Arturo
…
…
…
…
Esther
Source: 11 Goals & Associates 20
How do we use our circle of trust?
We rely on people we know to:
• Get informed.
• Make decisions.
Extract value from the circle
Nourish and extend the circle
We use our experiences to:
• Increase our Goodwill
• Identify ourselves.
• Self-express ourselves.
• Self-realise
• Socialize around an excuse for conversation
Yo
Miguel
Arturo
Esther
xxx …
Enrique
Rafael
Tomás
Mamá Papá
xxx
21
What’s a social networking service?
Source: http://en.wikipedia.org/wiki/Social_networking_service
SNS: “online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities” (Wikipedia)
There are discrepancies about which services are really a
SNS and which ones are not
~85% of online
population use SNS
22
World map of Social Networks June 2012
Source: vincos.it
The World Facebookised (1000 mill. Active users)
24
Real activity in SNS. Facebook rules.
Source: comScore
Facebook world’s time share: •75% (SNS)
•14% (Internet)
25
What is a social graph?
Social graph: “the global mapping of everybody and how they're related” (Wikipedia)
Source: http://en.wikipedia.org/wiki/Social_graph , http://en.wikipedia.org/wiki/Sociogram
Sociograms: “graphic representation of social links that a person has” (Wikipedia)
Sociogram by Networks (Top 250 friends)
Source: Touch Graph
Another Facebook example
28
Facebook API, Open graph
Source: https://developers.facebook.com/docs/opengraph/
• Facebook offers the ability to access to the user’s social graph if she gave access to us.
• Brands should understand the graph’s possibilities and should work out ways to build social way of promoting their brands.
• Examples:
• Spotify
• Netflix
• NYT
29
Web 2.0 is not only SNS: Social Media Ecosystem
Source: Luma Partners
Nobody owns the ecosystem
30
5 attitudes regarding the social media ecosystem
Ignore
Source: 11 Goals & Associates
Minimum presence (most brands)
Combat Copy
Complement [Hi-Tech]
[Content]
Pasive Reactive Proactive
31
In Social Media, the medium is the people
Audience
Social Ecosystem
• Message • Image • Video • Emotion • Poll • …
Real impact
Community Marketing/Management:
Audience knowledge:
•Experience
•Analytics (Tests)
Social Ecosystem knowledge
32
A powerful community on SNS helps Obama to…
…without intermediaries, faster, and to a broader audience
Movilize
Defend
Strike
Inform
Know
33
“Marketing is dead” Harvard Business Review – 9 Aug 2012
Source: http://blogs.hbr.org/cs/2012/08/marketing_is_dead.html
Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize they're operating within a dead paradigm. But they are. The evidence is clear.
Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of-mouth or customer reviews.
Actually, we already know in great detail what the new model of marketing will look like. It's already in place in a number of organizations. Here are its critical pieces: Restore community marketing Find your customer influencers Help them build social capital Get your customer advocates involved in the solution you provide.
Most read article in Aug 2012
34
Community Marketing used to be this…
Picture: http://es.wikipedia.org/wiki/Archivo:Ultramarinos-.jpg
3-SLIDE SUMMARY
35
…that in order to get scale was denaturalized by this… 3-SLIDE SUMMARY
36
…until this came along and allowed scale and direct contact simultaneously
3-SLIDE SUMMARY
37
Who deals with the fanbase?
Source: OJD (2011), Alexa.com, Facebook Inc. Twitter Inc.
0FFLINE (CIRCULATION)
Marca: 244.456 /day Diario As: 198.758/day Real Madrid: ~0
WEB 1.0 (DAILY REACH %)
WEB 2.0 (FANS/FOLLOWERS)
Facebook/Twitter (mill.) Marca: 0,65/0,91 Diario As: 0,28/0,41 Real Madrid: 31,8/6,8
MD: 95.907 /day Sport: 91.753/day FC Barcelona: ~0
Facebook/Twitter (mill.) MD: 0,18/0,64 Sport: 0,23/0,22 FC Barcelona: 35,3/12,4
Web 2.0 allow football clubs –better than ever before- to be in touch directly with their fanbase
38
The value of Community Marketing
Real Madrid: estimated equivalent advertising value of its Facebook
page: EUR 30 mill./month (Apr 2011)
Source: IAB Spain, Ontwice, http://www.slideshare.net/IAB_Spain/liga-de-ftbol-profesional-en-redes-sociales
Agenda
Things are changing
Web 2.0 & Community MKT
Some useful tools and concepts
Do we need a [great] brand to create a [great] online community?
Failure
Online community
Brand
Success
Strong
Weak or non-existent
No
Common interest
Source: 11 Goals & Associates
41
From a person to the online community
People Community Online community
Common interest Online
“Robust communities are built not on brand reputation but on a deep understanding of members’ lives.”
42
Community segmentation
Soccer Club
Former visitors
Potential visitors
Tourist industry
Country citizens
@1
@2
Other gov entities
Employees
Country’s tourism board
ILLUSTRATIVE EXAMPLES
Source: 11 Goals & Associates
Football fans
Team Supporters
General public Interests?
Motivations? Roles?
43
Interests and role of each subgrup within the community
Subgroup Interests Rol
1 …
… …
2 …
… …
3 …
… …
… …
… …
Source: 11 Goals & Associates
Key question: Does it make sense as a system? How can the brand close any gap in the system?
44
Preferred by brands Most frequent type
Source: “Getting Brand Communities Right”, Harvard Business Review, Abril 2009, 11 Goals & Associates
Examples
Description
“Pools” “Web” “Hub”
• People have strong associations with a shared activity or goal, or shared values, and loose associations with one another.
• Apple enthusiasts. • Political party
members.
• People have strong one-to-one relationships with others who have similar or complementary needs.
• Cancer patients and relatives.
• Apple enthusiasts (too)
• People have strong connections to a central figure and weaker associations with one another.
• Oprah Winfrey. • Hannah Montana. • Apple enthusiasts (too)
RRSS
Three forms of Community Affiliation
Building up an coherent social media community
MARKETING SOCIAL & GENERAL
SERVICES FOR COMMUNITY MANAGEMENT
ORGANIZATION INTERNAL & EXTERNAL
STRATEGY ONLINE & SOCIAL MEDIA
ANALYTICS (SOCIAL BALANCED SCORECARD)
COMMUNITY ENGINEERING SOCIAL MKT
Source: 11 Goals & Associates
• The “community engineering” stages are key to build a truly brand community on social networks and to achieve a high level of social capital.
• Without a good community engineering (and social capital) campaigns simply do not work. • Currently most brands think of social media as another ad place, and get easily disappointed
because they did not work enough the community before beginning to extract value from it.
46
How is Social Media organized in your company?
Source: Altimeter Group 47
• ….
• …..
• ….
• ….
• ….
• ….
• ….
• ….
• ….
SHORT TERM
MEDIUM TERM
LONG TERM
Priorities when developing the community
More Fans
More
Engagement
Revenues + keep fans and
engagement
Source: 11 Goals & Associates 48
Miths and realities about managing communities
Source: “Getting Brand Communities Right”, Harvard Business Review, April 2009.
1. A brand community is a marketing Strategy.
2. A brand community exists to serve the business.
3. Build the brand, and the community will follow
4. Brand communities should be lovefests for faithful brand advocates.
5. Opinion leaders build strong communities.
6. Online social networks are the key to a community strategy.
7. Successful brand communities are tightly managed and controlled.
Myth
1. A brand community is a business strategy.
2. A brand community exists to serve the people in it.
3. Engineer the community, and the brand will be strong.
4. Smart companies embrace the conflicts that make communities thrive.
5. Communities are strongest when everyone plays a role.
6. Online networks are just one tool, not a community strategy.
7. Of and by the people, communities defy managerial control.
Reality
SUMMARY
49
SUMMARY OF CONCLUSIONS 1 of 2
¶ Many things are changing due to the existence of Social Networks and Social Media. The same underlying motives but a different way expressed them.
¶ We tried to understand the reasons of this phenomenon. Is there any theory behind it? What’s the big picture?
¶ To a great extend Internet transformed intrinsically social activities into merely transactional ones. Now thanks to SNS those activities are re-socialising, but this time online.
¶ However, Social Technologies adoption is a continuous process that will take many years to be completed. Brands need to experiment and learn.
¶ The success of social networking services like Facebook relies in the fact that they are able to translate a person’s social live (“circle of trust”) into the online world. It’s not a new social life, it is the same life but faster and more efficient.
¶ Facebook worldwide’s dominating SNS excepting in former URRS countries and other countries where it has been banned (China, Iran, etc.).
¶ At par with SNS is the concept of Social Graph, key to understand how our brand or company can take advantage of social media through SNS or Apps.
50
SUMMARY OF CONCLUSIONS 2 of 2
¶ Social Media works as a very complex ecosystem in constant change. The best attitude towards that reality is to try to understand the ecosystem and to figure out how to complement it and add value for the user. However brands tend to copy parts of the ecosystem, leading to digital strategies which use to be expensive, short-lived, and not very successful.
¶ In Social Media, the medium is the people.
¶ Community Marketing uses social technologies to build large, active and sustainable online communities of great value for the brand.
¶ In order to build up a great online community:
Do not need a great brand.
Need to deeply understand the member’s interests and lives.
Segment the community and determine the interest and role of each segment.
See how members are affiliated among them and with the brand.
Think carefully about the organization you need.
Focus on i) grow fans ii) engage fans iii) generate direct and indirect revenues
51
Thanks! Francisco Hernández
www.11goals.com
52
Motivations for sharing
Source: “The Psycology of Sharing: Why do people share online?”, The New York Times’s Customer Insight Group
To grow and nourish our relationships
Self-fulfillment
To define ourselves to others
To get the word out about causes
or brands
To bring valuable and entertaining content to others
5 key motives for sharing
