Update: Only a few brands will trial these new ads, after testing, will then be broadly released later in the year.
A few days ago, I had a private briefing before the press with Tim Kendall, Director of Monetization at Facebook, below are the findings, with specific recommendations for brands. As I get more information, such as results and data, I’ll update this post.
Web Strategy Summary (90 Words)
Facebook launched a new product called ‘Engagement Advertisements’ that encourages members to interact with the ads by leaving comments, sharing virtual gifts, or becoming fans. To combat dismal click through rates of traditional advertisements, these features emulate widgets and encourage users to increase member adoption, viral growth, and brand interaction. Brands will only succeed with these “WidgetAds” if they create content that puts community first, lean on new interactions, integrate with other tools, plan for the long haul, and change how they measure success –traditional internet advertising tactics won’t apply.
[Facebook's 'Engagement Advertisements' emulates natural activities of members --in hopes to increase interaction, network spread, and brand preference]
Facebook, a Fast Growing Global Social Network
Facebook, noted as the largest social network, is on a growth rate to increase it’s active users to 90million active users today in August, 2008 up from 54 million aprox at the start of the year. While presumed to be of a younger college educated demographic, it’s not the domain of the young alone as the largest growth rates are educated white collar workers, over age 25. Facebook has global growth in markets such as 66% growth rate in EMEA, and 35% and 33% growth rates in Europe and Latin America, respectively.
Engagement Advertisements Integrate with Natural User Behaviors
Facebook’s innovative way of monetizing is unique, they were the first to launch a developer platform (F8) as well as the ill-fated Facebook Beacon, and are now launching with a new interactive marketing and advertising product.
[Facebook's 'Engagement Advertisements' more akin to interactive marketing with a social twist: "WidgetAds"]
Unlike Beacon or Facebook Connect, both products intended to aggregate the actions on third-party sites (like Blockbuster.com) this new product called “Engagement Advertisements” is intended to nicely integrate with Facebook’s newly redesign profile and news pages. Early brands to trial this include: Paramount Pictures whose video commenting for Tropic Thunder ran two weeks ago –I’ve asked for campaign results. Future early adopters also include General Mills’ Betty Crocker which will have image commenting and the ability to ‘fan’, and video commenting for Addias, both to trial late August.
Engagement Ads provide three unique experiences
Rather than clicking on the ad and being whisked away to a branded microsite, these ads allow members to stay within the contained walls of Facebook and their social community. Engagement ads come in three major flavors:
1) Comment Style Ad: Members can now leave comments on these advertisements, much like wall posts. Brands that are focused on entertainment, new product rollouts, autos and apparel are well suited. The ad can show up to 4 comments per object, and the activity spreads to the users newsfeed.
2) Virtual Gifts Style Ad: Brands can now create virtual items that users can share, spread to each other. This wildly popular behavior within applications and Facebook is suitable for consumer products, entertainment, and some media.
3) Fan Style Ad: A play off the Facebook pages, users with a persona affinity for a product (like Apple) can become a fan, triggering a notification to their network, and could then tie on social ads. Will work great for established brands, like guitar hero, passion products, luxury products, or any brand with a rabid customer base.
Forrester Data: Social Networks foster communication, self-expression
With horrible click through rates (I’ve heard cases of .04 percent CTR) of ads on social networks, some brands prefer to focus resources elsewhere. Why the low rates? Our research indicates that youth primarily exhibit behaviors of communication and self-expression –not searching for products, looking at ads, or hunting for information.
Common Behaviors of Youth on Social Networks
See what my friends are up to: 86%
Sent a message to someone: 79%
Posted/updated my profile: 70%
Looked at profiles of people I didn’t know: 65% Sources: North American Technographics Retail And Marketing Online Youth Survey, Q4 2007, Forrester Research
This youth data supports that social network behavior is in fact, ‘social’ and these respondents are not seeking to find out about product information, nor learn about the latest products at a media site, product review, or a search engine like Google.
[Brands will only succeed with 'Engagement Advertising' if they lean on user behaviors like communication, self-expression, and social exploration --traditional internet advertising need not apply]
Knowing that the use case between social networks and product-focused sites is key for marketers to deploy successful marketing. For success, marketers and advertisers need to focus in on the key social behaviors, and integrate the marketing activities within the community.
Demystifying Facebook’s Marketing Tool Chest
Facebook’s marketing toolset is confusing, and many brands frequently ask me what is the current set, and how do they use it, here’s the current toolset as of today. Remember that when it comes to groups and brand engagement, the most powerful activity is for employees to actually participate in the community with their customers –not stand by the idle wayside. With that said, here are some of the other tools available to marketers to engage the Facebook community.
Engagement Ads: (new, and detailed above) allow community members to interact with the ads in the profile and newsfeeds –without leaving the Facebook site, increasing interaction, social spread, and brand engagement. Currently unproven, brands may not be ready for these types of new ads, until they change how they measure success.
Standard Advertisements: These Text and image ads can appear on homepage or profile pages, neatly integrate with the new redesign.
Social ads: Are helpful for brands to increase the velocity or acceleration by marketers, allowing them to buy ads that echo the behaviors “what did my friends do” of opt-in users. These primarily appear on the newsfeed, which will encourage spread to an individuals network. Some brands have been under fire from users who felt this was invasive.
Traditional IAB graphic ads: Advertising laden brands may still purchase the standard IAB skyscraper and banner ads from Microsoft both an investor and partner. With low CTRs, some brands have better places to spend their money for return on investment.
Facebook pages: Launched last year, brands can (at no charge) create their own pages, embed applications, encourage discussions, and start to garner “Fans” of it’s products. Most brands are incorrectly using these, based upon the findings from my recent report on the best and worst of social network marketing for 2008 -Forrester Research.
Event Feature: based pages allow marketers to promote events through viral invites, rsvp tools, and event rollups from media and community interaction. While a useful utility, for most brands that market on the web, this is often a side-effort, not the primary push.
Facebook Connect: Perhaps the biggest untold story is the day when Facebook (and other social networks) will connect with corporate websites, I’ve outline future scenarios in this post What ‘Facebook Connect’ Means for Corporate Websites.
Key Takeaways
Monetization of social networks continues to be a challenge, and Facebook continues to innovate, however for this announcement, brands and Facebook should:
To Succeed, Brands Must Learn Social Marketing
While costly, risky, and foreign to brands, the biggest missed opportunity for brands in social networks is to become part of the community, interact and build real relationships. Although we should expect interaction rates and viral spread to increase with engagement ads, brands should wait and see how these ads CTR perform. For those brands that are ready to forgo the risk, and pursue ‘Engagement Ads’ they should:
Be community themed: Ads created by the brand will succeed if the content is first focused on the needs of the community.
Rely on new interaction activities: The rules of the game have changed, the goal is to increase interaction within the community –not pull them offsite.
Approach with an Integrated Mix: Facebook offers many tools, ‘Engagement Ads’ shouldn’t go it alone, instead increase chances of success by involving other tools.
Change how they measure success: Brands must also change they way the measure success with these interactive ads, rather than weigh success solely on page views or referral traffic.
Marriage of Widgets and Advertisements offshoot: “WidgetAds”
Looking forward, this announcement helps to set in place how online marketing will start to evolve. Widgets have already become advertising units, and now these advertisements are starting to become widgets. Expect Engagement ads, and Widgets created by third parties to start to exhibit these behaviors outside of Facebook. Facebook Connect, Google Connect, and OpenID will bridge social graphs with interactive ads –springing forth a new generation of widgetads.
Although innovative, Facebook must focus on marketers
Although pushing interactive marketing, Facebook must hand-hold many brands with their frequently changing marketing offerings. Facebook must develop a client solution that will help optimize these tools with professional services based on data, results, and demographic information. Marketers can’t afford to experiment with their brand without the help of a trained and experienced group of social marketers provided by the platform.
The only caveat being that the experience of users, always, always comes first, I’ll point to others that cover this aspect.
My new friend Avi Bhatnagar showed me this clever viral video that combines personalization, as well as a social marketing impact. You can add your friends in the ‘spread this’ page to spread it among your friends and family, you can create your own here. Quite honestly, the video effects (while are obvious upon a close inspection) are a pretty good, all things considered. I noticed in my recent research report on Social Network Marketing campaigns, that DiGiornio had a simliar type of personalized social campaign that let you prank calls on your friends with the “Ditcher” –expect to see personalized marketing, interactive marketing, to meld with social marketing.
I’m taking a break from my normal corporate web strategy posts for today, instead want to introduce you to Ronald, who despite his mild mannered appearance really uses his passion and socila media tools to share it with the world. Frankly, I was inspired, and even more so that he responded to my email –and let me do an interview with him.
Ronald Jenkees (his blog) (see his YouTube Channel), who I found on my ‘recommended’ list on YouTube on an iPod Touch woke me up. He combined hip hop, jazz keyboard jams, synth and beats and a lot of heart into his music –a lot of it available to peruse on YouTube. I’m a former musician (played since 4) and am always inspired to see people follow their passions. Now with platforms like YouTube, the middleperson has been removed from discovering talent –the masses can self sort it out. He shares behind the scenes videos of the work in progress (this one splicing to genres), or this Guitar Riff with (2MM views).
I contacted Ronald, (who mentioned several times in his videos that he reads all comments) and knew I could get a few questions answered from him.
(start interview)
Jeremiah: Why music? What got you into it, why are you passionate about it?
Ronald: First of all, thanks a ton for the interview and good questions.
I got a toy keyboard for Christmas one year and actually played the heck out of it. Simple stuff, but I had fun writing little melodies. Later, in the 6th or 7th grade, I was given a Yamaha keyboard for Christmas (PSR-500). I bought it because it had lots of cool-looking buttons, but I discovered I could sequence beats and layer stuff with it. That same $500 keyboard lasted me until I was out of college when I could afford my Triton Le. My passion comes from the fun moments in music – when it feels right to hit certain notes.. When it’s groovin. That’s the stuff I like to share on YouTube.
Jeremiah: You combine your personal thoughts, as well as greet the YouTube audience, and give them encouragement and tips, many musicians just go ‘right to the jams’ why the extra personal sharing?
Ronald: It’s fun to connect with people rather than to just jam out. Plus, I’m very thankful for those that watch my videos, comment, email, and etc., so anything I can do to inspire people to have their own some simple fun with music, I’m all for it. It doesn’t take very many notes or technical skill to create something moving. Of course, practice and becoming a better musician in general helps to get those ideas out in the air, but all of that starts with very simple fun that anyone can take part in. I also think it’s really good for the brain and your mood.
Jeremiah: Did you have a music career before YouTube? Why did you post videos there? What has it done for you, did it spur on your first and second album?
Ronald: I used to make beats and silly raps and share them with friends on my website, but that was the extent of my music career. I actually studied tech in college and always did music for the fun of it (still do!). I started posting videos on YouTube just to entertain people – mainly my old college friends. Eventually I started posting vids of myself playing music. I guess it mixed well with my goofiness on camera, but mainly that combination of being entertaining and letting loose helped me to not feel like such a show-off. The YouTube audience is the only reason I came out with a whole album and am now working on a second.
Jeremiah: What has YouTube provided you that a record company, distributor, and marketers can’t? What advantages and disadvantages has this brought?
Ronald: YouTube is awesome for marketing. Whenever I upload a new video, 40,000 subscribers get an email notification. So that acts as my mailing list whenever I’m ready to share a new jam or some news.
As far as distribution goes, I use a company called CD Baby to get my stuff on iTunes and other digital marketplaces. I also use a store built by my friend and musician Brad (of BradSucks.net) to sell downloads and CD’s directly on my website (www.ronaldjenkees.com) using PayPal. It takes a lot of work doing shipping and customer service, but it’s AWESOME to be able take good care of your own fans and eliminate The Man in the process. The whole process of creation and delivery is very rewarding.
Jeremiah: What’s the next steps for you? Is this a full time job now? When are you going to tour? I’ll sign up for your San Francisco show!
Ronald: My main goal right now is to just continue writing new music and get done with a second album. I’d love to eventually do some music for some established artists (independently), and possibly do some soundtrack-type work. I don’t have a huge desire to hit the road doing shows at the moment. I feel like my time is best spent writing new music rather than traveling and performing, but that could change. I’m certainly not ruling anything out.
Jeremiah’s Bonus Question (added a few hours later, via email) I just had one followu p question. Is this your day job? Have you made a full paying career out of being a musician (and primarily using YouTube for Marketing?
Ronald: Awesome!! Yes, this has turned into my day job in the last year. Doing everything independently keeps you busy. Writing new music, working on old music, helping people get your music, signing and packaging CD’s, shipping, replying to emails/comments and etc.. I can easily work 16 hour days if I’m not careful, because it’s mostly fun stuff. I’m sure you can relate since you have a cool thing going right now.
(end interview)
Thanks Ronald, I just bought your first album on iTunes, enjoyed it while going on my walk, great energy, spurred on new ideas. I’m a fan, thanks for staying so open, transparent, and following your passion. I’m sure you’ll get a gig with established artists, your raw talent will take you far. It’s fantastic to see someone do what they love, and make it a paying gig.
Here’s an outro piece, an take on a distorted guitar, with improve
If you work at an online media company, or are a stakeholder for content on a corporate website, forward this to the decision makers and engage in an email or in person dialog.
How Media and Marketers are Missing an Opportunity
A few days ago, I embedded a slideshow of fantastic images from Beijing’s opening Olympic ceremony. An embed is code that I can easily paste into my blog post, and it will show media (such as a youtube video).
[The community will 'scrape' content that is valuable to them, often without attribution. Get ahead of their behaviors for your content and package it for them]
Essentially, The Boston Globe got ripped off, as they either paid for those photos, or sent a photographer out to capture the images. Photo ripping (or video, audio, or content on your webpages) isn’t going to go away, content on the web is distributed, and holding it close becomes more and more common.
Also, I do give Boston.com credit, the images they posted on their site shows them all on one page, unlike the annoying slideshows from other online news outlets that force you to click to see the next image. For Boston.com this has made it much easier for individuals to download photos and share without attribution, hence my call for them to get ahead of the curve.
Media and Marketers Should Provide Embeddable Content
Instead, The Boston Globe should have created the images in an embeddable media player or slide player that allows the images to quickly be shared from blogs, facebook profiles, and anywhere else those may talk about the Olympics. They should have links back to their site, give due credits, and even make a dynamic “learn more” at the end of the slideshow that they can change at will to recommend other content as it comes around. There are many widget developers that offer these services, that can also help content spread within Facebook and other social networks.
[Media Companies and Brands should Provide Content to Where Communities Currently Exist: Fish where the Fish are]
Attributes to Measuring Success must change
With the distributed web, measurement will need to change. For media companies (and marketers at corporations) hits, visits, and clicks are the most common way to measure success. This needs to go away, as these are not accurate attributes to measure as content flies around the web. Instead, they should focus on velocity (distance/time) as embeds fly and are spread to different sites.
All Content Should be Considered –although not all will be shared
Ever heard the phrase: “If you love it, let it go”? The same applies to corporate sites, who should repurpose presentations in Slideshare, and brochures and collateral in docstock, images in Flickr, and product demos in YouTube. The goal of marketing is to get the word out, so you best do it first, so you can at least have credit for brand attribution, as well as control to remove or edit it as things change. Remember, as a content provider, you should find the communities where they exist, and provide content to them: “Fish where the Fish are”
Get ahead of the curve and let your content be sharable, much of this is uncontrollable, you might as well lead this change, so you can at least track, edit, and manage how it’s dispersed.
The game is up, “Janet” is not an official Exxon representative
A few days ago, the Twittersphere was curious, interested, and excited to see a member of Exxon Mobil’s employee ranks to join the twitter conversation and engage in conversation…sadly, she’s not a real employee. You can see the fake Twitter account called ExxonMobilCorp
The mystery unraveled –in 3 days Shel Holtz was one of the first to discover this (update: he’s posted this thoughts), as he commended Exxon for their efforts, their response was “It’s not us”. The mystery continued to unravel as I received an email from the Houston Chronicle Press wanting to talk to me about what I knew (Update: The Chronicle’s story is now live) –the word hit mainstream analysts and press in three days, secrets don’t remain secrets for long in internet speed.
“Janet” has been posing as an Exxon employee, answering questions about the direction of the company, where philanthropy resources are being spent, and even responding (a few, which were very off-tone) about the Exxon Valdez.
A real conversation with Exxon
I spoke to Alan Jeffers, Spokesperson of Exxon Mobil a few minutes ago to get his side of the story, and to offer some words of wisdom, which I’ll share below. First of all, Exxon has been “brand jacked”, (and will now make the official punk’d list), they were caught off guard because they were not monitoring and responding to their own online brand.
Alan was forthcoming, honest, and appears to want to do the right thing, I posed a few questions to him, his responses in quotes:
What if this was an employee in a remote arm of the company, would it then be ok?
“It’s not really relevant, there are only people that are authorized and not-authorized, even people with the best intentions, may not know what the appropriate position is or the facts, we think that there’s a problem, as we don’t want to be misleading people and there’s a lot of errors what the person is posting even if it was something that had the best of intentions could be misleading.
It’s our perception that social networking is based on honesty, transparency and trust, it’s important that they become forthcoming about who they represent”
This is slap hands on everyone’s hands, Exxon hasn’t really done anything wrong, they were just caught unaware. In fact, the whole Twitter community (myself included, see my write up) has been fooled including this list of brands on twitter.
What message do you want to give to Janet the supposed company representative?
“Be forth-coming about who you are, it’s ok to be in support for or against something, but you should be forth-coming about your identity”
What lessons have you learned about monitoring your brands in social networks?
“We need to be diligent about what is being said about you, by you, and those pretending to be you”
I see a lot of opportunities for Exxon here, it’s clear the community wants to talk to you, you can roll with this by coming face forward:
“We’re going to examine what is going on, and if indeed if there is anything to do, I want to underscore we’re not trying to prevent anyone from going out. There’s lots of opportunities, we want to speak to people, and to learn what people think”
Alan and Exxon employees have a big opportunity at hand –once they’re ready.
Options for Janet
It’s also interesting that Janet tweeted this, just a few hours ago: “btw, @jowyang , thanks for that wonderful piece: http://tinyurl.com/6nol2e”. Janet, I highly recommend that you do one of the following: 1) Turn over the Twitter ID keys to Exxon, 2) indicate that you’re not an official representative. I see that you’re attempting to preserve the brand, but you can be a brand advocate to Exxon without attempting to pretend to be an employee –in fact, you may be hurting the brand. (Update: Aug 3, Janet has deleted that tweet thanking me and continues to pose as an official Exxon representative)
Key Takeaways
Lack of identity confirmation continues to plague the web
Identity is a serious issue on the web, we’ve no great way of confirming true profiles, therefore, going forward, before we can conclude a blog or twitter or Facebook account is official, we need to see trackbacks coming from the corporate site, or contact info and get confirmation.
Companies must monitor their brand
Brands should be monitoring the discussion and instances of their keywords in social networks –failure to do so results in becoming case studies.
An opportunity for the real Exxon to step forward
The power has shifted to those that participate, so while Janet may have achieved momentum by participating, further opportunity lies within Exxon when they’re ready to come forward.
The community (myself included) need to first validate identities
This fourth one, I just added. It was too easy for someone to assume a brand’s identity and we all fell for it, myself obviously. We need to first determine if these are the real employees and validate. I’m exploring some ways to do this, we’ll revisit this topic soon.
Legal and Trademark issues complicate
Update 12 hours later: It’s become clear that even more issues are bubbling up from comments, and the social media club dlist, which I’m part of. For example, in UK there are clear laws (not just guidelines) about being transparent about buzz marketing campaigns, and some are suggesting that Twitter be responsible for being a brand cop, while some say brands should be accountable. Some are suggesting that Janet become the “Scoble” of Exxon while Marshall Kirkpatrick says Exxon should walk completely away from Twitter.
If you work at an interactive agency or at a brand that’s interested in marketing at social networks, this post is for you.
Agencies and Brands unsure what to do
I can see the deal now, and I’m sure many of you have been in these meetings (client or agency side). The agency knows the brand manager is familiar, comfortable, with traditional interactive marketing campaigns in the past. So, the agency comes to the table repurposing a successful microsite now to meet a “Facebook strategy”. The brand manager nods, signs off, and the agency gets to work. Weeks to months later, the campaign launches on Facebook, with many of the computer-to-human features that you’d see on a microsite but it doesn’t allow self-expression or the ability to share. As such, only a few folks show up, and it’s written off as a ‘learning experiment’ (corporate translation: fail)
[When it comes to social network marketing, many brands are deploying "computer-to-human" efforts, and therefore missing out on the true community features of self-expression and sharing that "member-to-member" activities provide]
Fail: many brands repurposing microsite strategies
In my recent report “The best and worst of social network marketing” most brands are doing it wrong. In fact, I’m hearing of more and more cases where interactive agencies are repurposing interactive marketing (human to computer) and go to brands (who don’t know what to do) and present a 6-7 digit proposal for a Facebook strategy. Unfortunately, many brands are spending a tremendous amount of resources and missing the most important opportunities. (Deloitte research also backs this up -WSJ)
Solitaire, a terrible party game
Have you noticed that the card game solitaire doesn’t make for a good party game? It’s the same thing when it comes to social networks. Social networks are about self expression, communication, and networking and sharing with others –it’s more akin to social card games like poker, gin, or even mah jong. The core elements of these games encourage sharing, trading, communicating with other players of the party.
Many brands are deploying solitaire games at a party, where everyone is already playing poker. The same concept applies to marketing efforts on social networks. In our research, many were developing efforts that was two-way between the brand and a single member (interactive marketing). Instead, brands missed the core behavior of member to member interaction between the community, therein lies the true opportunity.
Socialization, the missing link
What does this opportunity look like? Getting the members to self-express on your behalf, communicate to each other, and spread the brand values to their own network at a rapid pace. Social networking tools allow for rapid spread of information to ones network –providing they choose to participate in this behavior.
It’s interesting to note that the agency that delivered the only passing grade was Federated Media, who doesn’t come from the traditional interactive agency realm, but instead first with a blog advertising networks, and is slowly expanding into social marketing. Unfortunately, I’ve heard concerns from some that they may not be able to scale to meet enterprise needs that other large existing firms offer, so we’ll have to see if they can grow –while maintaining flexibility.
So, as you start to shop around for ideas to meet your objectives for your social marketing activities, remember that repurprosing the traditional microsites is missing out on the social behaviors that are native to social networks.
Understand the different forms of web marketing
Also, if you need a crash cours on the many different types of marketing available to you learn about the many forms of Web Marketing for 2008, the list grows every year.
It’s true, most social network marketing isn’t being done effectively, why? Many brands (and their agencies) are deploying “interactive marketing” (user to website) experience rather than relying on the tools of social networks “social marketing” (member to member). As a result, many brands are wasting their time, money, and resources to reach communities in social networks without first understanding that the use case is very different than a microsite campaign. Don’t just take my word for it, research from Deloitte also suggests the same –WSJ (link via Fabrice)
In this latest report, we created a scorecard (which you can use to checklist your own efforts) which amplifies the real opportunities of social network; the community themselves. This report is great for anyone brand deploying a social network marketing effort, or for agencies that are trying to enter this new world. Marketing efforts did best when the control was turned over to the hands of the community.
[We tested marketing efforts on Social Networks using 'Social' criteria (rather than traditional marketing tactics) that meets the needs of the community, sadly, only 1 out 16 brands passed]
We took a multi-industry approach, and reviewed 16 firms from four industries: automotive, media, technology, and consumer products. Sadly, out of this 16 contenders that were appropriate, only the BMW Series 1 received a passing grade, and half of the firms scored a zero or lower. We also tried to find examples in many social networks including Facebook, MySpace, LinkedIn, Imeem, and Microsoft’s Windows Live Spaces. I was already asked on Twitter if there were B2B examples, unfortunately, we only found one that made the report, Microsoft Live Server.
Despite these dismal scores, there were some great examples such as the The Dell/Microsoft (Red) program provided a rich media theme that was easily sharable, Sony’s BMG page for Alicia Keys was personable and interactive, and Kraft’s DiGiorno Pizza delivered a unique interactive experience with its members. To improve social network marketing, brands must develop community-centered content and activities, measure success based on new criteria, and be prepared to participate.
If you leave a question on Forrester report page, I promise to respond to the best of my ability.
If you’re a client, you can download instantly, or if you’re not a client, you can purchase the report, and if you’re not fully satisfied you can return with no questions asked –we stand by our work.
Also, I propose we do away with the term “campaign” when it comes to social networks, it derives images of military movements, and short term commitments –exactly what not to do when it comes to communities.
Although some of them have changed since we first started to judge the 16 social network marketing efforts are:
Note: A passing score is a minimum of 8.
The whole process was a tremendous amount of work, we spent hours testing, reviewing, and compiling data, you should use this report as a benchmark and a checklist for your future efforts on social networks. It was a lot of work, but should really help you to all move forward and reach communities even more effectively.
Lastly, I use social media tools as a small percentage of my research methodology, for example, I asked the 12,000+ readers of this blog (and 9000+ on Twitter) to help define what they think are success metrics for campaigns, some of this was factored into the scorecard requirements. At Forrester we serve different roles, mine being Interactive Marketers, it’s also important to know the largest segment of readers to this blog are Interactive Marketers according to a recent survey. So I use the same tools that I cover, and try to practice what I preach. Last by not least, thanks to Christine Overby, Harley Manning, Sarah Glass and Scott Wright at Forrester for all their help.
Scope Clarification:
Update: One brand was unsure of the scope of this research report. To be clear, this report encompassed only the marketing efforts on a social network. It does not include blogs, podcats, youtube, communities that a brand may create on their own site, or efforts within the intranet. Also, some brands may have had multiple marketing efforts on social networks, this report would have only examined and graded one.
(Above Picture: 22 brands provide schwag (real and useful products) to the Blogher pre party…imagine the marketing at the actual conference)
I just got back from the pre Blogher party at Guy Kawasaki’s house, even today, as I gave a social computing workshop, I heard from yet another brand that they are desperately trying to reach women bloggers. Why? Well first of all, many of them control the financial spending at the household (ahem, that’s true at my house) and they are also ‘creators’ with blogs, pictures, video and podcasts –they’re influencers. With so many brands understanding the new “Google” world, where influence can happen from digital creators, they do what they can to reach them.
I spoke to a few of the bloggers trying to find out what works and what doesn’t. One indicated that when brands pitch them, they should really read their blog to understand their editorial agenda. I talk to brands, and they think it’s a mob rush to reach these women, and therefore very difficult to get in front of them.
I was talking to many female bloggers and learned that one of the party organizers from Kirtsy that about 50 brands submitted schwag for this pre party (although as you see above, only about half made the bag). I took a picture of the good stuff that I brought home (for once, says my wife). Also, Blogher received $5 million in funding this week (update: read interview, link via Chris Bishops) to build an advertising newtork, and the Blogher conference will have about 1,000 attendees in SF, many having traveled all over the country.
Now despite the attention being given to this hot market, I see two major problems. First of all, this market is already getting statured by marketers pitching these influential women, secondly, some of them (as I’ve heard) are not fully disclosing how they recieve these products, whether or not they keep or give them away.
So my questions to you is this:
When this organic and natural market gets saturated from the many vendors pitching at them (would make Scoble blush) what impacts does this have to: 1) credibility of the women bloggers, 2) Effectiveness of brands trying to reach this inundated market? 3) If credibility and demand is reduced to this market, will it decrease their influence? How will they be able to maintain these levels? I think something has to give.
I certainly home someone reads my above questions at blogher to the female congress, it’s a real issue that I hope they address.
Key Update 12 hours later (a moment of clarity):
First, to be very clear, it’s not the character of the bloggers I’m challenging, it’s the economics of great demand for a limited supply, please don’t misconstrue this.
After a good night’s sleep (something I rarely get) I can see what’s going to happen now:
1) The opportunities for brands to get in front of bloggers to review products has become saturated, pitching to them has become less than effective.
2) Therefore, the advertising network that blogher, sugar, glam, or others puts forth where be where the excess demand goes, brands will simply pay to advertise their products on the major nodes of the network, based on other blog network models, there will be little trickle down for b-a list bloggers in this space.
3) The credibility of “blogger review” will be reserved for a few products, but the supply of excess product marketing demand will be alleviated through a blog advertising network.
History shows that marketers are great at figuring out avenues where there is less friction.
I’ve taken Chris’s exact list, but have segmented it into the five objectives. This way, you’re not randomly choosing tactics without first having a goal in mind. Of course, the first thing to do is to first understand how your community uses social technologies, start by using this free social technographics profile generator.
1) Listening: Gleaning market and customer insight and intelligence
10. Build sentiment measurements, and listen to the larger web for how people are talking about your customer.
11. Learn which bloggers might care about your customer. Learn how to measure their influence.
14. Build conversation maps for your customers using Technorati.com , Google Blogsearch, Summize, and FriendFeed.
21. Collect case studies of social media success. Tag them “socialmediacasestudy” in del.icio.us.
25. Search Summize.com for as much data as you can find in Twitter on your product, your competitors, your space.
32. Make WebsiteGrader.com your first stop for understanding the technical quality of a website.
33. Make Compete.com your next stop for understanding a site’s traffic. Then, mash it against competitors’ sites.
34. Learn how not to ask for 40 pieces of demographic data when giving something away for free. Instead, collect little bits over time. Gently.
38. Track your inbound links and when they come from blogs, be sure to comment on a few posts and build a relationship with the blogger.
39. Find a bunch of bloggers and podcasters whose work you admire, and ask them for opinions on your social media projects. See if you can give them a free sneak peek at something, or some other “you’re special” reward for their time and effort (if it’s material, ask them to disclose it).
2) Talking: Engaging in a two way discussion to get your message out (and get messages in)
2. Build blogs and teach conversational marketing and business relationship building techniques.
5. Create informational podcasts about a product’s overall space, not just the product.
8. Check out Twitter as a way to show a company’s personality. (Don’t fabricate this).
9. Couple your email newsletter content with additional website content on a blog for improved commenting.
13. Try out a short series of audio podcasts or video podcasts as content marketing and see how they draw.
19. Experiment with the value of live video like uStream.tv and Mogulus, or Qik on a cell phone.
23. Explore distribution. Can you reach more potential buyers/users/customers on social networks.
24. Don’t forget early social sites like Yahoogroups and Craigslist. They still work remarkably well.
26. Practice delivering quality content on your blogs, such that customers feel educated / equipped / informed.
28. Turn your blog into a mobile blog site with Mofuse. Free.
30. Ensure you offer the basics on your site, like an email alternative to an RSS subscription. In fact, the more ways you can spread and distribute your content, the better.
40. Learn all you can about how NOT to pitch bloggers. Excellent resource: Susan Getgood.
41. Try out shooting video interviews and video press releases and other bits of video to build more personable relationships. Don’t throw out text, but try adding video.
44. Experiment with different lengths and forms of video. Is entertaining and funny but brief better than longer but more informative? Don’t stop with one attempt. And try more than one hosting platform to test out features.
3) Energizing: Letting your customers tell your prospects on your behalf (viral, word of mouth)
1. Add social bookmark links to your most important web pages and/or blog posts to improve sharing.
3. For every video project purchased, ensure there’s an embeddable web version for improved sharing.
4. Learn how tagging and other metadata improve your ability to search and measure the spread of information.
12. Download the Social Media Press Release (pdf) and at least see what parts you want to take into your traditional press releases.
36. Help customers and prospects connect with you simply on your various networks. Consider a Lijit Wijit or other aggregator widget.
47. Spread good ideas far. Reblog them. Bookmark them. Vote them up at social sites. Be a good citizen.
4) Supporting: Getting your customers to self-support each other
6. Build community platforms around real communities of shared interest.
7. Help companies participate in existing social networks, and build relationships on their turf.
15. Experiment with Flickr and/or YouTube groups to build media for specific events. (Marvel Comics raised my impression of this with their Hulk statue Flickr group).
18. Start a community group on Facebook or Ning or MySpace or LinkedIn around the space where your customer does business. Example: what Jeremiah Owyang did for Hitachi Data Systems.
29. Learn what other free tools might work for community building, like MyBlogLog.
35. Remember that the people on social networks are all people, have likely been there a while, might know each other, and know that you’re new. Tread gently into new territories. Don’t NOT go. Just go gently.
37. Voting mechanisms like those used on Digg.com show your customers you care about which information is useful to them.
5) Embracing: Building better products and services through collaboration with clients
31. Investigate whether your product sells better by recommendation versus education, and use either wikis and widgets to help recommend, or videos and podcasts for education.
50. Use the same tools you’re trying out externally for internal uses, if that makes sense, and learn about how this technology empowers your business collaboration, too.
Strategy, Training, and Planning
While not one of the 5 objectives, many of these aren’t directly social media tactics, but they are great rules of thumb.
16. Recommend that your staff start personal blogs on their personal interests, and learn first hand what it feels like, including managing comments, wanting promotion, etc.
17. Map out an integrated project that incorporates a blog, use of commercial social networks, and a face-to-face event to build leads and drive awareness of a product.
20. Attend a conference dealing with social media like New Media Expo, BlogWorld Expo, New Marketing Summit (disclosure: I run this one with CrossTech), and dozens and dozens more. (Email Chris for a calendar).
22. Interview current social media practitioners. Look for bridges between your methods and theirs.
27. Consider the value of hiring a community manager. Could this role improve customer service? Improve customer retention? Promote through word of mouth?
42. Explore several viewpoints about social media marketing.
43. Women are adding lots of value to social media. Get to know the ones making a difference. (And check out BlogHer as an event to explore).
45. Work with practitioners and media makers to see how they can use their skills to solve your problems. Don’t be afraid to set up pilot programs, instead of diving in head first.
46. People power social media. Learn to believe in the value of people. Sounds hippie, but it’s the key.
48. Don’t be afraid to fail. Be ready to apologize. Admit when you’ve made a mistake.
49. Re-examine who in the organization might benefit from your social media efforts. Help equip them to learn from your project.
One of Chris’s recommendations was to check out Website Grader, I found that to be very interesting, try that free service.
If this were an official Forrester report, I’d segment even further by prioritizing by usage (polling marketers), cost, effectiveness, and then deliver specific recommendations. At some point in the future, I will probably get that chance to that research.
I could double this list with additional tactics, but I think it’s enough to get started, hopefully Chris’s initial list and my mind meld should help you to improve your objective based social media strategies.
If you’re a white label social network vendor, you’re likely getting many new clients at corporations that have special pricing needs, let’s discuss this scenario.
Yesterday, I spoke to a white label social network who had some challenges pricing their product for their corporate clients. I speak to both vendors and clients, so it’s interesting to hear from both ends about concerns, triggers, and final deals.
There are a few ways to approach pricing your social media product for corporate clients, you can do a fixed amount, a layered pricing model (buy as you need), variable on performance (pay as you consume) or a combination thereof.
I’ve found that for new programs (like social media) these are often experimental “new media” budgets and although these products and services tend to be inexpensive, there are still some pricing considerations you must be prepared for. Most corporations issue quarterly or annual budgets to business groups, often with a fixed amount. If you require additional funds, you’ll have to present a business case to management, which can also take some time, as well as be a headache to validate one’s new business programs.
One additional factor is that budgets that are not entirely used up, they get recaptured by the umbrella organization, and could be an indicator that the business group doesn’t need further funds, resulting in reduced budget the next quarter. There’s an inherent risk here as well, as if all of the budget is used up on primarily a single vendor, the ability to have flexible spending for other services is limited. I draw these factors from both my experience having a small budget for social media as well as speaking to many clients on a similar front.
In my vendor product catalog (which will publish soon), I can see that there are many different pricing models happening for the white label social network industry, while there are many different pricing styles, perhaps the most common is fixed band pricing (fixed monthly fee with low variable by user).
If you’re a white label social network and are getting push back from clients about pricing and you’re not sure why, you should examine your pricing offer. For situations like this, social media vendors should experiment with fixed price bands (rather than variable by usage) so that business groups confidently purchase and keep within their budget. Then, as the program grows, the client business group won’t have to go to management when costs exceed their budget in early stages of this program, and then having to demonstrate success.
Of course, when the community platform shows high degrees of success, the opportunity for increasing support, hosting and pipe capabilities, and other services (including pay as you use pricing). So in summary, keep it simple, when dealing with corporations who are just experimenting with community software, offer a set or fixed price, at least till the community is up and running.
I’d like to hear from you, are you a vendor or a client? What are effective pricing models for new business programs (esp social media)