Download ppt - Why Social Media Matters in an Economic Downturn

CONFIDENTIAL | 1Back to Menu April 10, 2023

Introduction

CONFIDENTIAL | 2Back to Menu

Winning Back the CustomerWhy Social Media Matters in a Down Economy

Eric Anderson

VP of Emerging Media

Recorded Webinar available here; https://www1.gotomeeting.com/register/141856925


What actually happens to consumer loyalty in a recession?

Contrary to popular belief, it doesn’t look like this:

VS.



It looks more like this:

VS.

”Consumers are weighing purchases across categories in ways they haven't done since the mid 70's. Your brand might be competing against a completely unrelated product or service.” Eric Lahr, Advertising Age



It looks more like this:

VS.

• This behavioral shift means you need a deeper level of engagement with consumers about where your brand fits in their lives.

• Advertising won’t give you that. Social media might…


What we talk about when we talk about social media:

Proportionality of text cloud based on use of social media by marketers,Forrester Research, Metrics for Social Applications in a Downturn, 2008


First let’s hear from the bears.

In a bear market, budgets should shift toward online marketing, because it’s measurable and efficient. But social media doesn’t meet that standard – it’s too much of an unknown.


In fact we’re Raging-Bullish.

White Horse, on the other hand, is bullish on social media.

5 good reasons to invest in social media in 2009:

1.You can't afford to sit this out.2.True loyalty is recession-proof.3.You can put your customers to work.4.Your advertising is flabby.5.Free is good.


1. You can’t afford to sit this out.

The Oklahoma Land Rush on social media property won’t slow down for a recession.

Minimally, you must protect your brand in all of the social media outlets that will eventually become as important as your Web site.

I’m gonna git me a Twitter page!



What are the risks? Check out the MySpace domains for these top global brands.

There’s also the risk of disgruntled customers or competitors using social media properties for anti-brand sites (not that any of you have disgruntled customers).

www.myspace.com/google www.myspace.com/pepsi www.myspace.com/mcdonalds



Unlike the last Web boom, this one isn’t fueled by ad dollars and VC funding. The sheer rate of organic growth and the rise of influential Gen Y consumers means lost time is lost opportunity.

Facebook 2008 growth rate



Unlike the last Web boom, this one isn’t fueled by ad dollars and VC funding The sheer rate of organic growth and the rise of influential Gen Y consumers means lost time is lost opportunity


2. True loyalty is recession-proof.

You can’t separate the emerging role of social media in building loyalty from the diminished impact of traditional media. The average person is exposed to 3,000 ad messages a day. That’s why:

–90% of people who can skip TV ads do.–Web users have banner blindness about 80% of the time.–Just 20% of mothers say advertisers connect with them.


$148 billion spent on advertising

14% of consumers trust advertising

Half a billion spent on social media

78% of consumers trust social media (input from other consumers)


The impact of social media isn’t just a matter of raw impressions. It’s also a matter of trust.


Simply put, social media builds brand trust because it allows people to learn about brands from other people.



Trust in “a person like me” has tripled from 20% to 68% in the last three years.



36% of consumers say they think more positively about a company just for having a blog.




How to invest in loyalty right now:

1.Reach out your current customers to find your brand evangelists, then enlist them in your loyalty strategy.

2.Listen in on the conversations currently taking place around your brand.

3.Set your customers to work on content creation.

4.Dip your toe in.


3. You can put your customers to work (crowdsourcing).

Crowdsourcing is a classic two-for-one: you get the positive brand impact from engaging your customers, and if you do it right, you get results you can use.

Good uses of crowdsourcing:•Product reviews•Blog content•Product development•Focus groups•Trend analysis •Branding/advertising



With Mountain Hardwear, we crowd-sourced the development of a print ad and even required that it conform to the campaign’s visual standards.


The winning entryAgency-produced print ad


The crowd came through in big way.


4. Your ads are flabby.

In a recession, your paid advertising needs to work harder and go further. Integrating paid and social media can pack a powerful punch.

Social seeding, blogs, reviews, forums, and social network sites all greatly improve your SEO, which in turn enhances the performance of paid search.

Source: iCrossing Search Syngery, 2007



Paid advertising on a social network site can direct to a brand page on the same site, where users can “friend” the brand and pass along content.

Source: Fox Interactive Media, Never-Ending Friending, 2007



Every ad campaign should be deeply networked: on video sites, into social networks, and into the site experience.

Screen clipping taken: 10/27/2008, 12:41 AM


5. Free is good

(most of the time) Our favorite social media freebies:•Friending•Social network seeding•SEO lift•Listening


5. Free is good.

Example: we tested promotion performance using paid media vs. one relying entirely on social seeding. In this case, free was good indeed.

20 million ad impressionsNo social seeding18,000 visits/mo

No ad impressionsSeeding on fishing and sweeps forums

15,000 visits/mo


Your most important social media move: hire the right agency.

Thank you!

Eric Anderson, VP of Emerging Media

[email protected]

www.whitehorse.com

Recorded Webinar available here: https://www1.gotomeeting.com/register/141856925

CONFIDENTIAL | 28Back to Menu April 10, 2023

Introduction