Why Blogs and Social Media are Effective Marketing Tools

8/14/2019 Why Blogs and Social Media are Effective Marketing Tools

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presents
http://illuminea.com/


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Blogs and social media

Marketing for the 21st century


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Case Studies


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illuminea 2008. All rights reserved.

Who shouldve had a blog:


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Dell

In 2005, Dell didnt have a blog.But one of their customers did
http://jeremy.zawodny.com/blog/archives/006009.htmlhttp://jeremy.zawodny.com/blog/archives/006009.html


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http://jeremy.zawodny.com/blog/archives/006009.html


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Dells customer strikes back

This customer was very upset with Dellscustomer service.

He wrote about his experience on his blog.

So did another blogger, whose post wasso popular, it led to the creation of a newterm for Dell
http://www.thisistrue.com/dellhell.htmlhttp://www.thisistrue.com/dellhell.html


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Dell Hell in Google

If you search for Dell Hell in Google, thatguys post is the first result.

As a result, Dell got negative presscoverage in the New York Times and WallStreet Journal.


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Dell couldnt fight back

Dell didnt have a blog, so they wereunable to communicate with the angryblogosphere.


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But there was a happy ending. Dell set uptheir own blog.


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Happy ending

In the age of customers empowered byblogs and social media, Dell has leaptfrom worst to first."

Jeff Jarvis, Business Week

First step: Dell dispatched technicians toreach out to complaining bloggers and

solve their problems, earning pleasantlysurprised buzz in return.
http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_277576.htm?chan=top+news_top+news+index_top+storyhttp://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_277576.htm?chan=top+news_top+news+index_top+story


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Dells new blog
http://direct2dell.com/one2one/default.aspxhttp://direct2dell.com/one2one/default.aspxhttp://direct2dell.com/one2one/default.aspx


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Measurable results

Dell saw a 27 point decrease in negativeblog posts, from 49 percent at the peakof Dell Hell to the current 22 percent.

Cost would have been hundreds ofmillions for similar ad campaign.


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Michael Dell: "A company this size is notgoing to be about a couple of peoplecoming up with ideas. It's going to be

about millions of people and harnessingthe power of those ideas."


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Apple lost billions

At the hands of bloggers


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May 2007: earlier yesterday technology blogEngadget published what it claimed was aninternal email from Apple that stated the iPhone

launch would be delayed until October and thatthe Leopard operating system would be delayeduntil January 2008.Six minutes after the post, Apple's share valuehad sunk to $103.42, cutting Apple'scompany value by $4bn. - TechCrunch

Applegate
http://www.techcrunch.com/2007/05/17/applegate/http://www.techcrunch.com/2007/05/17/applegate/


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Applegate

Apple has received formal governmentapproval to sell its much-anticipated

iPhone in the US, just a day after a bogusemail, dubbed "Applegate", wiped $4bnfrom the company's stock market value. -Guardian
http://www.guardian.co.uk/media/2007/may/18/digitalmedia.applehttp://www.guardian.co.uk/media/2007/may/18/digitalmedia.apple


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Targets not on target


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Target PR Nightmare

A rep from a non-profit concerned withmedia and marketings impact on kidswrites to Target objecting to the ad on the

previous slide.


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Targets unfortunate response

Target: unfortunately we are unable torespond to your inquiry because Target

does not participate with non-traditional

media outlets. This practice is in place toallow us to focus on publications that

reach our core guest.


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uh oh


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= PR nightmare


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Target was publicly slammed for havingquestionable advertising practices andelitist public relations policies.

Story was picked upand repeatedthoughout the blogosphere

Target PR Nightmare
http://www.shapingyouth.org/blog/?p=969http://www.mediabistro.com/unbeige/adsmktg/target_gets_kicked_in_the_crotch_by_nontraditional_media_outlets_75966.asphttp://virtualeconomics.typepad.com/virtualeconomics/2008/01/non-traditional.htmlhttp://gawker.com/5002336/target-to-bloggers-you-dont-matter-in-lifehttp://gawker.com/5002336/target-to-bloggers-you-dont-matter-in-lifehttp://virtualeconomics.typepad.com/virtualeconomics/2008/01/non-traditional.htmlhttp://www.mediabistro.com/unbeige/adsmktg/target_gets_kicked_in_the_crotch_by_nontraditional_media_outlets_75966.asphttp://www.shapingyouth.org/blog/?p=969


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Target PR Nightmare

Shaping Youth is a small, grass-rootsorganization - that has a blog.

Target is #33 in the Fortune 50 - with$59 Billion in revenue - but no blog.
http://www.shapingyouth.org/http://www.shapingyouth.org/


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Video takes down the big guys


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Comcast couch guy

From the blog: A Comcast techniciancame to replace a faulty modem. Afterspending an hour on hold with Comcast's

central office, he fell asleep on my couch.I've been in my apartment for three weeksand my internet connection is still non-

functional. This is my tribute to Comcast,their low quality technology and their poorcustomer service.
http://www.snakesonablog.com/2006/06/20/snakes-on-comcast-internet-connection/http://www.snakesonablog.com/2006/06/20/snakes-on-comcast-internet-connection/


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Comcast couch guy

Number of views on YouTube: 1,181,809

See the movie
http://www.youtube.com/watch?v=CvVp7b5gzqUhttp://www.youtube.com/watch?v=CvVp7b5gzqU


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AOL cancel my account!

Vincent Ferrari wanted to cancel his AOLaccount. It took him 21 minutes offrustration to succeed. At one point the

AOL rep asked 30 year old Ferrari tospeak to his dad.

Unfortunately for AOL, Ferrari recorded

the conversation and published it onYouTube.


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AOL cancel my account!

Video covered on MSNBC and elsewhere

Number of views on YouTube: 218,391

See the movie
http://www.msnbc.msn.com/id/13447232/http://www.youtube.com/watch?v=xmpDSBAh6RYhttp://www.youtube.com/watch?v=xmpDSBAh6RYhttp://www.msnbc.msn.com/id/13447232/


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Blogs and social media have a

serious impact


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Why blog?Visualization of the blogosphere

Because youare already

there.


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And you have no control


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Todays leading brand

Source: Millward Browns Brandz
http://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdf


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Nature of advantage is shifting

Decades and billions on

marketing, branding andadvertising

$0 on ads

The big boys: Coke,P&G

Google


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The corporate website is becomi
http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/


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Irrelevant Corporate Website

But were tired of the corporate website and allits happy marketing speak, stock photos ofsmart looking dudes or minority women crowded

around the computer raving about your product,the positive press release, the happy customertestimonials, the row of executive portraits, thedonations your corporate made to disaster relief,

the one-sided view never ends. JeremiahOwyang, Sr. Analyst at Forrester Research:

Social Computing
http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/


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The new corporate website

Websites are created with customers

Unfiltered customer testimonials willappear

Content will have both negative andpositive views about your products

Your website will be a CommunityResource


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Outcome

Customers will make your site the firstplace to go for information, trust willincrease, you may be able to build better

products and services with real-timecustomer feedback, and most importantly,youll be a community resource that will

help you meet your customer needsfaster.

-

Web Strategy: How to evolve your irrele
http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/


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What is social media?


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Sites considered social media:

Blogs

Message boards

Forums

Social networks(MySpace orFacebook)

Video sharing (YouTube)

Picture sharing(Photobucket)

Podcasts

Vidcasts Wikis

Groups

Virtual words orcommunities (Secondlife)


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Examples
http://friendfeed.com/http://twitter.com/http://facebook.com/http://stumbleupon.com/http://digg.com/http://del.icio.us/


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Common traits:

Editable

Participative

Connect people

Th bl h i d bli i i


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The blogosphere is doubling in sizeevery 6 months


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Growth of the blogosphere

It is now over 60 times bigger than it was 3 yearsago

On average, a new weblog is created everysecond of every day

19.4 million bloggers (55%) are still posting 3months after their blogs are created

Technorati tracks about 1.2 Million new blog

posts each day, about 50,000 per hour 34% of large corporations currently have a blogsolution, 70% plan one by the end of the year


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To blog or not to blog?The answer, simply

enough, is to blog. Nobetter opportunity exists

to engage in an opendialog and exchange ofideas with customers and

potential customers.Bob Lutz, Vice Chairman, General

Motors


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"If you blog, you exist."

- Shai Agassi, former

Board Member, SAP


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What is a blog?


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Portmanteau of

weblog

Written in

chronological order

Displayed in

reversechronologicalorder

A verb

From Wikipedia entry for Bloghttp://en.wikipedia.org/wiki/Blog


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Blog Characteristics


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RSS Feeds


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Trackbacks

Tells other blogsyou linked tothem, and thenan excerpt of yourpost appears with

a link back toyour blog in thecommentssection of theirpost that youlinked to


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Pingbacks

You get anotification thatother bloggerslinked to yourblog, and an

excerpt of theirpost appears onyour blog with alink to their blog(opposite oftrackbacks)


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Example of pingback


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Comments


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Pings

Blogs set up to ping send an automaticmessage to tens or hundreds of blogdirectories, telling them you just publishedsomething new.

This not only spreads your blog further,but Google is known to follow these blogdirectories, and it helps Google pick up onnew blogs quickly.

Pingomatic.com is an example of apinging service.
http://pingomatic.com/http://pingomatic.com/


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Tags

Good for searchengines; gives themmore info on what the

post is about Good forTechnoratiblog directory

Good for finer

categorization ofposts
http://www.technorati.com/http://www.technorati.com/


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Social Bookmarks

Make it easy forpeople to submitposts to bookmark

directories This helps spread theword, and if enoughpeople vote for your

blog, you can get tonsof traffic


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Its a new media world that really returns

us to old Main Street ethics. A shopkeeperwithin the town builds great relationshipswith his/her community members. Theresan intrinsic understanding that they needthe community as much if not more so thanthe community needs the shop. And so theshopkeeper works hard for the community,

and treats it well.- The Participation Ethos
http://www.livingstonbuzz.com/blog/2007/09/16/the-participation-ethos/http://www.livingstonbuzz.com/blog/2007/09/16/the-participation-ethos/


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Isnt it a waste of time?


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Other wastes of time:

Airplanes are interesting toys but of no militaryvalue. Marechal Ferdinand Foch

The wireless music box has no imaginable

commercial value. Who would pay for amessage sent to nobody in particular? DavidSarnoffs associates in response to his urgingsfor investment in the radio in the 1920s.

Who the hell wants to hear actors talk? --H.M. Harry Warner,Warner Brothers, 1927.
http://en.wikipedia.org/wiki/Ferdinand_Fochhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/Harry_Warnerhttp://en.wikipedia.org/wiki/Warner_Bros.http://en.wikipedia.org/wiki/Warner_Bros.http://en.wikipedia.org/wiki/Harry_Warnerhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/Ferdinand_Fochhttp://en.wikipedia.org/wiki/Ferdinand_Fochhttp://en.wikipedia.org/wiki/Ferdinand_Foch


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Benefits: General

Low cost and fast to set up

Transparent and authentic

Information is always up-to-date

Blogging is innovative = you areinnovative


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Benefits: Reach

Get the right information to the rightpeople at the right time.

Broad reach via RSS and email

subscriptions

Opening a new marketing channel forproducts and services


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Benefits: Financial

Test out ideas on the blog beforedevelopment

Forrester research: savings from customer

insights


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Benefits: Search Engines

Search engines like: Sites that publish fresh content

Sites with inbound links

Keywords


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Benefits: Thought Leadership

Position you and your company as thoughtleaders in competitive markets

Establish a true, credible voice in the

marketplace

Tim Ferris launchedThe 4 Hour Workweek to New York Times

bestseller list through blogging
http://www.fourhourworkweek.com/http://www.fourhourworkweek.com/


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Benefits: Branding

Strengthen and promote your brand

Give your company a human face

Forrester research: increased brandvisibility

Forrester research: reduced impact fromnegative user-generated content, andincreased sales efficiency


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Benefits: PR

Free and controlled news desk

Damage control!

Rapid response tool

Create buzz - give small hints abt. newproducts, generate press interest

Announce conferences/events


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Benefits: Customer Relations

Customer queries answered leading toreduced customer service or technicalsupport calls

Enhance customer loyalty

Build sense of community

Turn customers into your sales force

Reach an active, passionate consumerbase

Reach people on their own terms


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Benefits: Lead Generation

Better communication with prospects

Leverage existing customer base tospread your message

Increased enquiries generated

A living white paper

Word of Mouth - 80% of online userstrust the opinion of a friend oracquaintance more than any otherpossible web source


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Benefits: Intelligence

GM's Fastlane Blogs Bob Lutz, says hereceives better consumer intelligence fromreading the comments on his blog than

those from traditional market researchchannels, like surveys and focus groups.

Quickly and easily poll your customers

Get feedback Build better products from 2-way

conversation
http://fastlane.gmblogs.com/http://fastlane.gmblogs.com/http://fastlane.gmblogs.com/http://fastlane.gmblogs.com/http://fastlane.gmblogs.com/


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When blogs came to the

rescue


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Johnson&Johnson sues Red Cross overuse of Red Cross!

J&J uses their blog to take the dialogue

beyond the standard corporate PR, andcommunicates on their blog.

vs.


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The result? A large number of commentsand stories generally providing broadsupport for J&J's point of view. While there

are negative comments, the blog achievedwhat no other crisis communication'svehicle would have delivered.

vs.

GM l d i i l di


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GM leader in social media

GM launched blog in 2005 Fastlane

Written by Vice Chairman

200 years: GM expanding social mediastrategy to include GMNext

Isnt that a waste of time?

GM t SM
http://www.fastlane.com/http://gmnext.com/http://gmnext.com/http://gmnext.com/http://gmnext.com/http://www.fastlane.com/


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GM says yes to SM

Forrester compared the results of GMsFastlane blog to those of a focus group,and since a focus group costs about

$15,000 a month, which works out to$180,000 each year, GM has achievedsimilar results via their blog, and saved

itself $180,000 in cash per year.

GM t SM


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GM is trying to engage their customers on .

Transparency

Increases chances of reaching youngerbuyers

Profit? Increase of 2.6% in salescompared with January last year.

GM says yes to SM
http://www.socialmediaexplorer.com/2008/02/04/word-of-mouth-driven-by-others/http://www.socialmediaexplorer.com/2008/02/04/word-of-mouth-driven-by-others/


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It aint all rosy

P bl ith i l di


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Problems with social media

Time

Compliance issues

Untrustworthy member data

50% of blogs abandoned within 90 days

Loss in workplace productivity

Hard to measure success Need for openness


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G i i F d


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Growing pains: Ford

Ford recently releasedtheir first social media release.

Fords lawyers did a very unsocial thing

and stopped some of their most exuberantfans from printing up a fan calendar withphotos of their own Ford cars in it.

G i i F d
http://ford.digitalsnippets.com/http://ford.digitalsnippets.com/


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The folks at BMC (Black Mustang Club) automotive forum wantedto put together a calendar featuring members cars, and print itthrough CafePress. Photos were submitted, the layout was set,and CafePress notifies the site admin that pictures of Ford carscannot be printed. Not just Ford logos, not just Mustang logos, the

car -as a whole- is a Ford trademark and its image cant bereproduced without permission. So even though Ford has a lineupof enthusiasts who want to show off their Ford cars, the company isbent on alienating them. Them being some of the most loyalowners and future buyers that they have. Or rather, that they had,

because many have decided that they will not be doing businesswith Ford again if this matter isnt resolved. (From BoingBoing -read more there)

Growing pains: Ford
http://www.boingboing.net/2008/01/13/ford-car-owners-are.htmlhttp://www.boingboing.net/2008/01/13/ford-car-owners-are.htmlhttp://www.boingboing.net/2008/01/13/ford-car-owners-are.html


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Ford pulled the spark-plug right outtatheir hearts. Todd Defren
http://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.html


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How do I social?

Ho to social


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How to social

Have a personality

Dont be afraid of failure

Pick the right social media for youraudience

Make friends

Add value to the community

Dont self-promote

How to social (cont)


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How to social (cont)

Be accurate

Be transparent

Be patient

Increase your linkability

Make tagging and bookmarking easy

Help your content travel


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Social Media Trends

Fatigue


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Fatigue

The average amount of time each userspends on social networking sites hasfallen by 14% over the last four months

(ComScore)


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Fads


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Fads

MySpace > Facebook > Twitter >Friendfeed > ?


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Microblogging/Lifestreams


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Whos on twitter


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Who s on twitter

Carnival Cruise lines Intel Software

Adaptive Path

PodTech Network

Hillary Clinton

Barack Obama

Ways to use twitter
http://twitter.com/CarnivalCruisehttp://twitter.com/IntelSoftwarehttp://twitter.com/AdaptivePathhttp://twitter.com/podtechhttp://twitter.com/hillaryclintonhttp://twitter.com/BarackObamahttp://twitter.com/BarackObamahttp://twitter.com/BarackObamahttp://twitter.com/BarackObamahttp://twitter.com/hillaryclintonhttp://twitter.com/podtechhttp://twitter.com/podtechhttp://twitter.com/AdaptivePathhttp://twitter.com/IntelSoftwarehttp://twitter.com/CarnivalCruise


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Ways to use twitter

Personal Branding Get feedback

Hire people

Direct traffic Read news

Network

Company intranet

Notify your customers Event updates

Find prospects

Provide live coverage Set up meetings

Support your social

media strategy getvotes for articles, etc.


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Reputation Management

What happens when you googleyour name?

The web is the network


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The web is the network

To end off, I suggest you watch this videoon what the new web is all about it isabout us, and we are creating it.

The Machine is Us/ing Us
http://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_g


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"To find something comparable, you

have to go back 500 years to theprinting press, the birth of massmedia...Technology is shifting power

away from the editors, the publishers,the establishment, the media elite.Now it's the people who are taking

control." Rupert Murdoch, quoted inWired, July 2006.

About illuminea


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About illuminea

illuminea provides online marketing services,including website and blog design, developmentand strategy; and social media strategydevelopment and consulting services.

illuminea also gives courses on the subject ofblogging and social media, and other marketingtopics.

Learn more on illuminea.com and read ourblog at illuminea.com/blog.

Th k !
http://illuminea.com/http://illuminea.com/bloghttp://illuminea.com/bloghttp://illuminea.com/bloghttp://illuminea.com/


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Why Blogs and Social Media are Effective Marketing Tools