HOW SOCIAL MEDIA IS CHANGING THE WORLD OF BUSINESS<br />Presented by: Dean Russell<br />@dean_r<br />http://london.fleishm...
What is communication?<br />
<ul><li>Marketing and Advertising agencies</li></ul>#1.Marketing and advertising agencies<br />
#2. Public Relations agencies<br />
<ul><li>Marketing and Advertising agencies</li></ul>Marketing and advertising agencies<br />
<ul><li>Marketing and Advertising agencies</li></ul>Marketing and advertising agencies<br />
Consumers are 4 times more likely to purchase due to an Ad on Facebookvs standard display Ad due to social element<br />
Internet has roughly twice the influence of television on consumers <br />
In 2010, 30.1 million adults in the UK (60 per cent) accessed the Internet every day.In 2011, 30 million adults in the UK ...
 “Our survey provides overwhelming evidence that the Internet is at the center of the decision-making process of consumers...
So what?!?<br />15<br />
“For the first time the consumer is boss, which is fascinating, scary and terrifying because everything we used to know wi...
PR agencies are used to creating an ongoing dialogue with audiences  - a core skill needed for social media<br />17<br />
The PR Road<br />Advertising & Marketing<br />Media relations <<br />Events  Corporate <<br />Public affairs <<br />Crisis...
Direct response
Lead generation
Sales</li></ul>Chief Marketing Officers<br />Brand Managers<br />Corp Comm Directors<br />PR Managers<br />PR 2.0<br />Mar...
Motion graphics</li></ul>Online Advertising<br /><ul><li>Display
Promotions</li></ul>Insights<br /><ul><li>Data, metrics, measurement, analytics </li></ul>MobileMarketing<br />ORM<br /><u...
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How Social Media is Changing the World of Business by Dean Russell, Fleishman-Hillard


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Social media is changing the agency landscape with the roles of advertising, marketing and PR increasingly merging. This presentation looks at the challenges of of the concept of social business and how social media will increasingly play a role in organisations that goes deeper than sales and marketing alone.

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  • The following presentation investigates how social media is changing the world of business, and from an communications perspective, what impact this will have on how agencies work and those wanting a career in this area.
  • Firstly – we need to define communications.There are lots of definitions for communications. And in a business context – we might say the roles of communications could be broadly split into 2 areas...
  • Broadly speaking – the agency world could probably be split into 2 types...Definition: Marketing is &quot;the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.“Marketing and advertising agencies...who use a toolkit ranging from packaging to television advertising to reach or rather – broadcast - to their audience...Image source:
  • The second half could be considered to be Public Relations. PR too has many definitions, one of those could be summarised by “the practice of managing communication between an organization and its publics”What PR does very well is to tell a story –a sustained narrative which can be managed over time and is in part told via key influencers. This can range from keeping customers aware of products, through to crisis communications to supporting CSR activities...Historically – it could be said that marketing and advertising agencies would do, is perform their research and come up with carefully crafted branding and key messages and whilst Marketing and Advertising agencies would carefully hone these into advertising campaigns, product packaging, slogans etc...with PR agencies would working in the real world to amplify these messages, develop stories andImage source:
  • With PR importantly building relationships with advocates, influencers and customers...
  • One of the key roles of PR can be to help organisations influence the influencers. Whether they are journalists, customers, politicians, or campaign groups...and nowadays those influencers may even be channels themselves. E.g. Google could be considered an influencer because if an organisation doesn’t appear on Google what does that say about their reputation.Traditionally, the marketing and PR activities have been quite distinct and quite often clients would hire with multiple agencies each bringing their unique skills to the table...Image source:
  • Historically,the challenge across all areas of marketing and PR was that both had a habit of broadcasting messages. Often focussing on telling the world what they wanted them to know and then assuming they had done their job...Image source:
  • Yet over the past decade – things have changed. People have started talking back – en masse. As Time magazine said back in 2007 – when they made their person of the year ‘You’. They highlighted that so called ‘user generated content’ was beginning to change the way communications worked.People were able to find their voice online and share their opinions which created a whole new challenge for professional communicators who were used to one-way broadcasting...
  • This has led to a form of brand anarchy – where consumers are talking to each other and to the brands directly. And when they don’t feel listened to they are reacting – loudly and badly. Which is a huge challenge for brands where they have spend lots of money carefully crafting their messages and slogans – just to have them ripped to shreds within days online...Which means organisations now MUST have an integrated strategy in place – where listening is a central component.
  • This has led to channels such as Facebook, Twitter, YouTube etc now becoming more powerful than ever – with the primary contributors of content being the general public who don’t always play ball with the previously well crafted marketing messages and brands...This groundswell of opinion and dialogue means that people are connecting more and listening more, to their friends, peers, - their overall community rather than brand slogans and messaging. Something communications professionals are now coming to grips with – both in the agency and client worlds.
  • Looking at a few statistics highlights the power of these channels. In the UK – recent statistics indicated that Consumers are 4x more likely to purchase due to an Ad on Facebook versus Standard display advertising due to the social element…
  • Incredibly - the Internet has roughly twice the influence of the second strongest medium — television — and about 10 times the influence of print media.Yetwhilst companies have been increasing resources applied to web‐based activities like social media, online advertising, developing web properties and search management, there is still a gap between the relative importance of different media and spending on the media mix.
  • And the reach of the internet is now enormous – in the UK there are over 30 million adults accessing the internet every day and a similar number with a Facebook profile.So overall –the internet is now so much more pervasive – especially with the rise of web-enabled smart phone means that access is becoming just a natural part of individuals daily routine. Add to this the impact of the social web and the volume of consumers now connecting in communities online and sharing reviews, comments and recommendations on everything from hotels to products to politics, and its easy to see why social media is now having a massive impact in terms of influencing purchasing decision-making through to perceptions about brands.
  • You might be thinking ‘So What’?. Well in the agency world, and in the client side world of business – this is a big deal. Why?It’s a big deal because this means that organisations (often via agencies) can no longer created carefully crafted brands and marketing messages – because people just don’t believe them anymore. And it means that organisations are now having to do something they rarely did in the past outside of focus groups and perception audits...they are having to have ongoing conversations and listen to feedback daily.
  • And for many organisations the challenge of listening is huge because it requires resources, time, a whole new approach to marketing and PR. In fact, the challenge was summarised well by Kevin Roberts who stated that “For the first time the consumer is boss, which is fascinating, scary and terrifying because everything we used to know will no longer work”. Whilst this may sound dramatic – there is truth in the statement.For PR agencies – this isn’t so scary though. Whilst its different in some ways, PR agencies have experience in this because traditionally we have been used to building relationships and ongoing dialogue – its part of building the story. Whereas marketing and advertising agencies have been more used to having centralised more control – which is more of a challenge to move away from...
  • So one could argue that PR agencies are in the right place to build on the concept of creating ongoing dialogues and reacting to changes in the wider media/audience landscape as this is something we have been used to doing throughout our history. It’s just a different type of dialogue now – at times building conversations direct with the consumer and not always through middlemen such as the press.However, traditionally – PR agencies haven’t necessarily been the ones creating the big campaign ideas which is also now critical in delivering success online and there is still a need to create a focal point through viral campaigns, videos and interactive content such as games.
  • This means we are now in a new age for communications. Where the roles PR and Marketing and blurring and creating a battle for the middle ground where crossover occurs.As this diagram shows – with the lines between the previously clearly defined roles are now much more blurred when we take into account how social media crosses the boundaries. This means agencies – such as Fleishman-Hillard – are redefining the role we play for our clients, and it also means clients are now re-assessing how they structure their communications teams and senior management.
  • This shift means there is a new category of communications and consultancy emerging – a communications synthesis as it were. A strategic integration which aligns PR and Marketing and will lead to a new breed of social business consulting. This will require a new communications role which sits comfortably across both PR and marketing…Ultimately, this is changing the way the business world engages with customers…
  • Which is even changing some of the core principles around the way organisations work. For example – this McKinsey report highlighted that even the concept of the traditional sales funnel is now being changed.And now we are beginning to see some great examples of this new world where campaigns straddle advertising, marketing and PR. For example – one of the most successful in the last year or so was the recent Old Spice campaign…
  • The now famous Old Spice campaign was a huge success and really brought together strands and principles of of traditional TV advertising along with social media via YouTube, Twitter and mixed them all up to create a new kind of real time engagement.Rather than relying on the traditional broadcasting approach of Advertising and Marketing, or the conversational approach of PR, by merging them together and bringing the audience in on the joke enabled far greater visibility and ultimately greater success – massively shifting the perception of a once tired brand. This is likely to be the first of many which blur the lines in this way...
  • In simple terms – one could argue there are3 areas of change. Technology, Behaviour and Business models.All of which are triggered by social media in some way. Taking this into account – lets take a look at a traditional and well established business model by Porter.
  • The classic Porter Value Chain model.This well established model shows the facets of businesses and how they all contribute to the margin of the business. If we consider the impact of social media on this model – it begins to show how social media is no longer just even a PR versus Advertising &amp; Marketing shift. It will change the entire business...
  • This concept of a social business is where social media begins to map deeper into the organisation - no longer being a marketing and PR function only – but something which increases efficiencies, saves costs and improves customer relations and in turn retention and loyalty. Lets looks at a few simple examples:Customer service – linking CS with Twitter to respond in real time to enquiriesCustomer Research – Facebook to see what people are really saying about your productsLogistics - sites like Amazon and eBay as a new channel for purchasing and logisticsProcurement – sites like Groupon to buy in bulk with others and save on costsInternal comms - Skype and Yammer – to improve internal communicationsRecruitment – sites like LinkedIn to find the best talent for your organisationUltimately – social media used effectively can touch most parts of a business... And organisations around the world are realising this and are now being coined as ‘Social Business’.
  • And working on the assumption that the internet and social media in one form or another is here to stay will mean that the social business model is a necessity...For people entering into business and especially wanting a career in the agency world means that they also need to grasp this shift now and not just rely on the business models they are reading about in reference books but need to take time to look around at how businesses are now working and really understand the impact of social media.
  • For example – this survey highlights the challenges for newcomers to the agency world. A survey developed 18 months ago highlighted that there are significant changes to job requirements in communications…
  • So lets look look to the future...
  • Firstly – don’t be scaredof the changes. Embrace them and see how they work for you. It’s an exciting time for all of us working in our various industries.Remember it is those organisations that embrace change who currently able to rewrite the rules – and those who are resisting them that may end up having to follow them in the future...Image Source:
  • Those organisations that are embracing the concept of integration – both in terms of understanding how PR and Marketing now must be more closely aligned - and that social media needs to map to their business functions beyond sales alone are finding success – big and small...
  • So this new age of truly integrated communications activities – where the roles of marketing and PR are more closely aligned and where social media maps deeper in the organisation beyond Sales and Marketing will find they are far more successful in the future. So the choice is simple - either choose to define the rules of a new age of social business, or risk falling foul of them.
  • Thanks for listening.Feel free to follow me on twitter @dean_r and find out more about Fleishman-Hillard London at
  • How Social Media is Changing the World of Business by Dean Russell, Fleishman-Hillard

    1. 1. HOW SOCIAL MEDIA IS CHANGING THE WORLD OF BUSINESS<br />Presented by: Dean Russell<br />@dean_r<br /><br />
    2. 2. What is communication?<br />
    3. 3. <ul><li>Marketing and Advertising agencies</li></ul>#1.Marketing and advertising agencies<br />
    4. 4. #2. Public Relations agencies<br />
    5. 5. <ul><li>Marketing and Advertising agencies</li></ul>Marketing and advertising agencies<br />
    6. 6.
    7. 7. <ul><li>Marketing and Advertising agencies</li></ul>Marketing and advertising agencies<br />
    8. 8.
    9. 9.
    10. 10.
    11. 11. Consumers are 4 times more likely to purchase due to an Ad on Facebookvs standard display Ad due to social element<br />
    12. 12. Internet has roughly twice the influence of television on consumers <br />
    13. 13. In 2010, 30.1 million adults in the UK (60 per cent) accessed the Internet every day.In 2011, 30 million adults in the UK were registered on Facebook alone.<br />13<br />
    14. 14. “Our survey provides overwhelming evidence that the Internet is at the center of the decision-making process of consumers”<br /> Dave Senay, Fleishman-Hillard<br />
    15. 15. So what?!?<br />15<br />
    16. 16. “For the first time the consumer is boss, which is fascinating, scary and terrifying because everything we used to know will no longer work”Kevin Roberts, chief executive of Saatchi & Saatchi <br />16<br />
    17. 17. PR agencies are used to creating an ongoing dialogue with audiences - a core skill needed for social media<br />17<br />
    18. 18. The PR Road<br />Advertising & Marketing<br />Media relations <<br />Events Corporate <<br />Public affairs <<br />Crisis <<br />Writing /pubs <<br />Consumer Exec visibility <<br />Financial comms<<br />Internal <<br />Awareness-Consideration-Purchase<br /><ul><li>Advertising
    19. 19. Creative
    20. 20. Branding
    21. 21. Direct response
    22. 22. Lead generation
    23. 23. Promotions
    24. 24. CRM
    25. 25. Sales</li></ul>Chief Marketing Officers<br />Brand Managers<br />Corp Comm Directors<br />PR Managers<br />PR 2.0<br />Marketing 2.0<br />Creative Strategy<br /><ul><li>Personas</li></ul>Visual ID<br /><ul><li>Branding</li></ul>Content<br /><ul><li>Video
    26. 26. Audio
    27. 27. UGC
    28. 28. Motion graphics</li></ul>Online Advertising<br /><ul><li>Display
    29. 29. SEM
    30. 30. Games
    31. 31. Advertorials
    32. 32. Promotions</li></ul>Insights<br /><ul><li>Data, metrics, measurement, analytics </li></ul>MobileMarketing<br />ORM<br /><ul><li>SEO
    33. 33. Google
    34. 34. Wikipedia</li></ul>Website Design/Tech<br /><ul><li>Info arch.
    35. 35. U/X
    36. 36. Apps
    37. 37. Widgets
    38. 38. Flash</li></ul>Social Media<br /><ul><li>Blogger Relations
    39. 39. OEO
    40. 40. WOM/Viral
    41. 41. Social networking
    42. 42. Reviews/testimonials</li></li></ul><li>Chief Marketing Officers<br />Brand Managers<br />Corp Comm Directors<br />PR Managers<br />Communications Synthesis<br />Strategic integration<br />Alignment<br />Social business consulting<br />A New Category<br />Creative Strategy<br /><ul><li>Personas</li></ul>Visual ID<br /><ul><li>Branding</li></ul>Content<br /><ul><li>Video
    43. 43. Audio
    44. 44. UGC
    45. 45. Motion graphics</li></ul>Online Advertising<br /><ul><li>Display
    46. 46. SEM
    47. 47. Games
    48. 48. Advertorials
    49. 49. Promotions</li></ul>Insights<br /><ul><li>Data, metrics, measurement, analytics </li></ul>MobileMarketing<br />ORM<br /><ul><li>SEO
    50. 50. Google
    51. 51. Wikipedia</li></ul>Website Design/Tech<br /><ul><li>Info arch.
    52. 52. U/X
    53. 53. Apps
    54. 54. Widgets
    55. 55. Flash</li></ul>Social Media<br /><ul><li>Blogger Relations
    56. 56. OEO
    57. 57. WOM/Viral
    58. 58. Social networking
    59. 59. Reviews/testimonials</li></li></ul><li>The epicenter of consumer-driven marketing is the Internet as consumers seek information, reviews, and recommendations. Strong performance requiresa mind-set shift from buying media to programs that foster word-of-mouth and systems that customize advertising by viewing the context and the consumer”- McKinsey<br />To look beyond funnel-inspired push marketing,companies must invest in vehicles that let marketers interactwith consumers…<br />“The Consumer Decision Journey” 2009<br />
    60. 60. A new kind of campaign<br />
    61. 61. Three Dimensions of Change <br />Business Model Changes<br />Technology Changes<br />Behavioral Changes<br /><ul><li>Everyone has a voice
    62. 62. New communities are forming
    63. 63. Time shifting
    64. 64. Information is free…Information overload
    65. 65. Fragmenting channels
    66. 66. Traditional media is being absorbed and changed
    67. 67. Loss of control over brands
    68. 68. Faster speeds and mobile
    69. 69. Content is eternal and sharable
    70. 70. New tools make everyone a content creator
    71. 71. Media is modular</li></li></ul><li>
    72. 72.
    73. 73. Source: Me - Today<br />The social business model is a necessity in the 21st Century<br />
    74. 74. Korn-Ferry: Changing job requirements.<br />Knowledge of candidates for PR/marketing jobs:<br />Somewhat Important Very Important<br />Media Relations<br />82%<br />Social Networking<br />80%<br />Blogging, Podcasting or RSS<br />77%<br />Micro-blogging<br />72%<br />Email Marketing<br />56%<br />Search Engine Optimization<br />62%<br />Web Content Management<br />52%<br />Social Bookmarking<br />51%<br />Source: Korn-Ferry /PRSA 2009 Digital Readiness Report <br />
    75. 75. “18% of hiring decision makers for communications jobs today have no interest at all in traditional public relations skills.”<br />Source: Korn-Ferry /PRSA 2009 Digital Readiness Report <br />
    76. 76. Google analytics<br />Hitwise<br />Coremetrics<br />Fireclick<br />Radian6<br />HubSpot<br />Omniture<br />Blog Pulse<br />Evaluation<br />Looking ahead...<br />
    77. 77.
    78. 78. Integrated<br />
    79. 79. 31<br />
    80. 80. Thanks for listening<br />Dean Russell<br />@dean_r<br /><br />
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