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Ron Jacobs President, Jacobs & Clevenger Co-Author, Successful Direct Marketing Methods Sponsor, Ron Jacobs & Bob Stone Multichannel Marketing Communications Certificate Program, DePaul University

Ron j.is social media the new direct marketing - 3 march 2011 -- final.ppt

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During dmaDetroit's 15th Annual AIMS event, Ron Jacobs, President of Jacobs and Clevenger presented on: "Is Social Media the new Direct Marketing"This is his presentation.

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Page 1: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Ron JacobsPresident, Jacobs & ClevengerCo-Author, Successful Direct Marketing MethodsSponsor, Ron Jacobs & Bob Stone Multichannel Marketing

Communications Certificate Program, DePaul University

Page 2: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Ron [email protected]

Is Social Media Marketing the New Direct Marketing?

A Presentation for

directmail?

data? search?Email?web?

Page 3: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Agenda

• The need to redefine Direct Marketing– Direct Marketing is Interactive, Interactive Marketing is Direct (Stan

Rapp)

• How Direct Marketing and Social Media Marketing overlap• How Social Media Marketing is creating data • The importance of establishing Key Performance Indicators• Explore attribution models for multichannel marketing

communications

http://vimeo.com/10251808

Page 4: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Direct MarketingHow do you define it?

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Copyright 2011 Jacobs & Clevenger

Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising.

Direct Advertising is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it sends its message directly to consumers, without the use of intervening commercial communication media. The second characteristic is the core principle of successful Advertising driving a specific "call to action." This aspect of direct marketing involves an emphasis on trackable, measurable, positive responses from consumers (known simply as "response" in the industry) regardless of medium.

If the advertisement asks the prospect to take a specific action, for instance call a free phonenumber or visit a Web site, then the effort is considered to be direct response advertising.

Direct marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognized brand message. A well-executed direct advertising campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to get the offered product, service, or event.

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Copyright 2011 Jacobs & Clevenger

Most definitions of Direct Marketing don’t reflect contemporary usage

• Ron J.’s definition– Interactive use of advertising media, to stimulate an (immediate)

behavior modification, in such a way that this behavior can be tracked recorded and analyzed, then stored in a database for future retrieval and use

• Larry Kimmel’s definition (Pres. DMA)– The channel agnostic approach to driving maximum customer

satisfaction and optimal marketplace results

• DMA’s definition– An organized and planned system of contacts– Using a variety of media – Seeking to produce a lead or an order– Developing and maintaining a database– Measurable in cost and results– Expandable with confidence

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Copyright 2011 Jacobs & Clevenger

Bob Stone didn’t try to define Direct Marketing, so much as describe what it does

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Copyright 2011 Jacobs & Clevenger

We can agree on many aspects of what Direct Marketing should do

• Use of (multiple) channels for communication and response• Segment customers by demographics, psychographics,

behavior, etc.• Individually addressable communications

– Focused content, discrete offers, calls to action

• Relevant interactions – Response, conversion, leads, etc.

• Create sustainable relationships– Beyond likes, fans, friends and followers

• Capture, analyze and use data • Measureable and scalable results

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Copyright 2011 Jacobs & Clevenger

So, how is Social Media Marketing different than Direct?

• Multiple, individual voices that choose to engage

• Conversational tone– Not controlled by the brand

• Transparent & searchable– Users choose touchpoints

• Unique to the personality of prospects & customers

• Meets business objectives• Measureable & accountable

• Customers and prospects are targeted

• Communications are controlled

• Single, outbound voice– Across all touchpoints

• Reflects the personality of the brand

• Meets business objectives• Measurable & accountable

Direct Marketing Social Media Marketing

Page 10: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

New thinking, a new lexicon. Not campaigns… curationNot ads… dialogues. Not awareness & interest… behavior.

Experience CollaborationEngagementRelevance

Authenticity Transparency AccountabilityAgility

BehaviorLike, Friend Curation

ImmersionEmotion

Brand

Consumer

ReputationSent

imen

t

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Curation enables consumers to become collaborators

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Page 12: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

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Media Vs ChannelsIt’s about effectiveness, not efficiency

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Copyright 2011 Jacobs & Clevenger

Channels work together, but play their own roles

• A catalyst to drive engagement• No longer the foundation of

communications, but not dead nor dying

Paid Media

• Channel controlled by a brand• Takes time to scale, but extends a brand’s

presence & relationships

OwnedMedia

• Customers become the channel• Builds Word of Mouth, often the result of

coordinated owned & paid media

Earned Media

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Paid Media

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Copyright 2011 Jacobs & Clevenger

Crispin Porter + Bogusky’s Social Home Page

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Copyright 2011 Jacobs & Clevenger

Owned Media … A Brand Channel

Page 17: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Kogi BBQ… Twitter for traffic building and CRM

Page 18: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Kogi BBQ… Twitter for traffic building and CRM

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Copyright 2011 Jacobs & Clevenger

Earned Media… Angie’s List

Page 20: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Earned Media… Angie’s List

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Copyright 2011 Jacobs & Clevenger

Marketers (and Agencies) need to show accountability & effectiveness, not just measurement

• Everything has a Key Performance Indicator (KPI), but cross-channel activity makes measurement and attribution harder– Relevance

• How marketing adds value to the business – Alignment

• Proof that marketing is focused on the success of the business, not the size of its budget

– Rigor• A fact-based, disciplined approach to strategy and execution

• Without the above, Marketing gets The ROI Question– This is Finance’s way of asking “Can Marketing be trusted to spend the

company’s money wisely?”

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Copyright 2011 Jacobs & Clevenger

Key Performance Indicators (KPIs) can help measure everything

1. Business contribution:Channel reach, revenue contribution (direct and indirect), Return On Investment (or ROMI), category penetration, costs and profitability.

2. Marketing outcomes: Customers, leads, sales, service contacts, conversion, retention, winback and response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value.

3. Customer satisfaction:Usability, performance/availability, recommendation behavior. Opinions, attitudes, reasons for defection, brand impact and churn.

4. Customer behavior :Profiles, customer orientation (segmentation), usability, clickstream and site actions. Bounce rates, conversions, page views, depth, page & site duration, RFM and transaction behavior.

5. Channel promotion:Attraction efficiency. Referrer efficiency, cost of acquisition and reach. CPM Vs CPC. Search engine visibility and link building. Unique visitors, frequency, e-mail marketing results. Channel integration.

6. Social media:Engagement (e.g. # of comments); involvement (e.g. time spent); bounce rate; # of reads, comments, & posts; brand affection/aversion; conversions; mention of brand name; advocacy; viral activity; referrals; recommendations; multiple moving averages; etc.

1. Business contribution

2. Marketing outcomes

3. Customer satisfaction

4. Customer behavior

5. Channel promotion

6. Social Media

•KPIs distill analytics data into relevant information

•Exclusive to each business

• Specific

•Valuable

•Actionable

•Focus on the 3 – 5 most significant metrics

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Marketing Dashboards. The visual display of metrics.

Marketing Dashboards graphically display KPI’s in main categories

– Brand– Product– Customer– Channels– Efficiency– Organizational

Development– Macro-

economic Environment

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Social MediaIt’s already being by brands to optimize marketing

Page 25: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Businesses are taking social marketing seriously

• The number of photos archived on Flikr.com as of June 2009– 13.6 Billion

• The amount of content (Links, news, posts, notes, photos, etc. shared on FaceBook weekly – 3.5 Billion

• The number of minutes spent on FaceBook daily– 16 Billon

• If FaceBook were a country– It would be the 3rd most populated in the world,

behind China & India

• The number of Articles on Wikipedia– 16 Million

Page 26: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Businesses are taking social marketing seriously

• The amount of video uploaded to YouTube every minute– 24 hours

• The amount of time it would take to view every video on YouTube– 1,750 Years

• The number of YouTube videos viewed per day– 2 Billion

• The average number of tweets on Twitter.com every day– 65 Million

Page 27: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

The Social Graph… Conversations are occurring around every category, brand, and the entire buying process

• Where are conversations taking place?

• Who are the influencers driving them?

• What is being talked about? (e.g. Keywords)

• Is the Sentiment positive or negative?

• Are Keywords be used in dialogues, topics, headlines, copy?

Page 28: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Online data begins to unlock the riddle of prospects & customers

• Social monitoring merges with Web analytics– Alterian, Omniture, Coremetrics/IBM, Webtrends

• Technology like Hadoop makes it easy for companies to tap unlimited data– E.g. New York Times making its archives public– Twitter archived by Library of Congress– Facebook Cassandra, Amazon Dynamo, Google BigTable

• Dashboards and data visualization tools make it easy to understand

• Balancing privacy and personalization

Page 29: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Combining social/online data and offline data is a key to micro-targeting

Social Data•Social Site Affiliation

•Interests and brand affinities

•Occupation

•Education

•Location

•Reviews

Social Graph•Targeting friends

•Extending reach

•Social Affinity

Offline Data•Income

•Presence of children

•Home Ownership

•Purchase Behavior

•Lifestyles

•Much more

Micro-Targeting•Targeted lists of people for postal and/or email programs

•Serve display media to only people you want

•Use customer insight to tailor messaging and media plan

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Facebook is creating and capturing large amounts of data

Facebook has 500 million active users

50% of active users log on every day

Average user creates 90 pieces of content monthly

550,000 Facebook applications 70% of users engage with apps

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Copyright 2011 Jacobs & Clevenger

Google’s data mining benefits their advertisers

79 million US Gmail Accounts

Google has 145 million unique US visitors1 billion searches daily

Google data mines all search and Gmail as a resource for advertisers

96% of Googles profit is the result of ad revenue

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Inputs:• Emails• Name and Address• Facebook Fan page• Twitter followers

Social Searches:

• And 35+ more sites

Returns:• Social network memberships• Demographics• Occupation• Social graph• Influence• And more

In the form:• Aggregate report• Individual data appends• Instant API

Used for:• Targeting, segmentation• Identifying influencers• Optimizing resources• Social CRM

Rapleaf, data mining the social spaceRapleaf Data Mines• Who – demographics• Where – footprint online• What – affinities, interests• With Whom – friend connections

Rapleaf Process

Quick Facts• Data on 900+ million records• 400+ million consumers• 60+ billion friend connections

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Copyright 2011 Jacobs & Clevenger

YOUR AD HERE

YOUR AD HERE

Marketers can target ads based on social data today

Target:-Existing fans/followers-Friends of current fans/followers-Existing & prospective customers-Friends of prospects-Fans/followers of competitors-Custom created segments-Leverage metadata to facilitate sharing

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Page 34: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

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Bringing Social Media Marketing to life Alterian Buzz Bowl

Page 35: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Alterian’sSocial EngagementIndex

2011Super BowlTV Ads

www.alterian-social-media.com/

Page 36: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Alterian’sSocial SentimentEngagementIndex

2011Super BowlTV Ads

www.alterian-social-media.com/

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Copyright 2011 Jacobs & Clevenger

How much is a tweet, a fan or a follower worth? Cost Per Social Impression

www.alterian-social-media.com/

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Copyright 2011 Jacobs & Clevenger

Ads effect Mobile as well, which is growing faster than predicted

• Mobile searches related to Chrysler, a Super Bowl advertiser, were 102 times higher after the ad was televised– Desktop searches for Chrysler increased only 48 times

• For GoDaddy.com, another Super Bowl advertiser, mobile searches for the brand were 315 times higher than usual– Desktop searches were only 38 times higher

• There are 200 million plus YouTube mobile playbacks per day• 78% of smartphone users shop on their device

Page 39: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

Conclusions

• Direct Marketing, like all marketing, is effected by social media marketing

• Social Media Marketing is creating even more marketing data• To prove marketing effectiveness, use a few KPI’s aligned with

organizational goals, which have indisputable rigor • Customer engagement is attributable to customer experience

– Relevancy is both earned and bought– It’s not Push or Pull… It’s Push and Pull!!!

• “If you don’t like change, you’re going to like irrelevance even less.”

Page 40: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

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Questions & Answers

Questions?Questions?

Page 41: Ron j.is social media the new direct marketing  - 3 march 2011 -- final.ppt

Copyright 2011 Jacobs & Clevenger

[email protected]