New Media and Wine

Modern Methods of Communicating Directly to Your Customers: How effective is New Media in terms of recruitment and sales? Presented by: Paul Mabray, CEO of VinTank Marc Engel, Partner and Director of Wines Practice, B/R/S Group

Flow 1) Who We Are 2) What is ‘New Media’? 3) What Does It Mean for Wine? 4) Is New Media Effective for Recruitment and Sales? 5) Lessons 6) Workshop It

WHO WE ARE

Two guys. Two Opinions. Paul Mabray Marc Engel • 17 year online wine veteran. • Work for the only digital think tank in the wine industry. • Wrote a tiny little report about wine and social media called “We are here” and then gave it away for FREE.

Two guys. Two Opinions. Paul Mabray Marc Engel • No, I don’t work for Paul • Marketing researcher • Listen to the voice of the consumer (and trade) • Presented “Engaging the U.S. Wine Consumer: A New Paradigm” at Wine Evolution, January 2007

WHAT IS NEW MEDIA?

So what is new media? WIKIPEDIA DEFINES - New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.

So what is new media? New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Really? Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.

Old vs New

This…

This… Is new media.

No really We are witnessing a fundamental shift in communication.

But don’t take our word for it… If Facebook were a country, it would be the 4th largest country in the world. Source: TechCrunch 2009 http://www.techcrunch.com/2009/07/15/facebooks- offical-user-count-now-250-million/

Did we say fundamental? Never in history has humanity been as interconnected as they are today.

Welcome to the Revolution Source: http://www.flickr.com/photos/mlemos/ 3522358252/sizes/o/in/set-72157617990467890/

Translation This ain’t your mamma’s internet.

Evolution

Evolution Google

Today 66% of Global Internet Population Visit Social Networks. Nielsen

Today 66% of Global Internet Population Visit Social Networks. Nielsen Social networks are the 4th most popular online activity – ahead of personal email and PORN. Nielsen

Today 66% of Global Internet Population Visit Social Networks. Nielsen Social networks are the 4th most popular online activity – ahead of personal email. Nielsen 75% of consumers rate Word of Mouth as the #1 inﬂuencer of purchase intent. Nielsen

Today 66% of Global Internet Population Visit Social Networks. Nielsen Social networks are the 4th most popular online activity – ahead of personal email. Nielsen 75% of consumers rate Word of Mouth as the #1 inﬂuencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorﬁsh 2009

66% of Global Internet Population Visit Social Networks.* Today Social networks are the 4th most popular online activity – ahead of personal email.* 75% of consumers rate Word of Mouth as the #1 inﬂuencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorﬁsh 2009 75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati

Social networks are the 4th most popular online activity – ahead of personal email. Nielsen Today 75% of consumers rate Word of Mouth as the #1 inﬂuencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorﬁsh 2009 75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati 25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman

Social networks are the 4th most popular online activity – ahead of personal email. Nielsen Today 75% of consumers rate Word of Mouth as the #1 inﬂuencer of purchase intent. Nielsen 71% say they share a recommendation (product, Don’t make us service, restaurant) online with others at least every few months. Razorﬁsh 2009 75,000 new blogs created every day, updated to estimate the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati tomorrow. 25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman

New media is like the swine flu.

… but why? Interactive Connected Because new Free media is Fast Measurable

And it’s not contained It has jumped out of computers and into our pockets.

People can connect, update, complain or praise – anytime, anywhere.

Just wait till tomorrow

Just wait till tomorrow Tomorrow is TODAY

Sounds scary “Technology is shifting the power away from the editors, the publishers, the establishment, the media elite. Now it’s people who are in control.” Rupert Murdoch, Global Media Entrepreneur

We understand. Most Business People

Your Competition. 86% say they  have not used social  networking sites to get  business advice or  informaDon.  76% have  not found social  networking sites such as  Facebook, Twi@er and  LinkedIn to be helpful in  Most Business People generaDng business leads or  61% say they  for expanding their  use general  business during the  search engines  last year. like Google. Source: Citibank/GfK Roper survey of 500 small business executives across the U.S., as cited in Research Brief from the Center for New Media Research, 2 Nov. 2009

Imagine The advantage you could have with your head out of the sand.

WHAT DOES NEW MEDIA MEAN FOR WINE?

So what’s in this for wine

Wine & New Media: A Perfect Pair I’m a long  tail product. New  Wine Media

Wine & New Media: A Perfect Pair I’m a long  tail product. New  Wine Media I love long  tails!

Wine & New Media: A Perfect Pair New  Wine Word of Mouth  Media is the biggest  reason why  people buy me.

Wine & New Media: A Perfect Pair OMG! People  talk about what  they like all the  New  Dme on me. Wine Word of Mouth  Media is the biggest  reason why  people buy me.

Wine & New Media: A Perfect Pair I confuse and  inDmidate  New  Wine most people. Media

Wine & New Media: A Perfect Pair I confuse and  inDmidate  New  Wine most people. Media I’m not scared.  People trust  me. Even your  mom will trust  me.

Wine & New Media: A Perfect Pair I’m quite the  experience. New  Wine Media

Wine & New Media: A Perfect Pair I’m quite the  experience. New  Wine Media … and I seek  mastery and  control.

Wine & New Media: A Perfect Pair I’m quite the  …!!! experience. New  Wine Media … and I seek  mastery and  control.

Look who’s talking Source: www.cruvee.com

The Dominance of Twitter Where they’re talking… On Blogs On Forums On Microblogs Source: www.cruvee.com

Wine Blogs • 250,000 products produced annually • About 30,000 reviewed by ‘professional’ reviewers • There are over 1000 dedicated wine blogs

Wine Blogs Collectively wine bloggers represent an audience much larger than the winespectator.com.

Wine Industry Noise 40+ 50+ 200+

Wine Industry Noise 40+ – Wine Social Networks 50+ – Wine iPhone Apps 200+ – Wine Portals

Wine, where should you play?

Wine Social Networks Fishing where the ﬁsh are.

Wine Social Networks Fishing where the ﬁsh are. 86,000+ Users 50,000+ Users 1,000,000 Tasting 32,000+ Tasting Notes Notes

Customers Recommend Brands

Change “No longer is it enough to make and sell wine and then expect the world to beat a path to your door. (Well, unless you’re Laﬁte in China, that is.) Today, sellers have to reach out to their customers, and they have to do so in ways that may be unfamiliar and even uncomfortable for them.” –Steve Heimoff, blogger and writer, Wine Enthusiast

It’s a crazy Wine World

It’s a crazy Wine World Insane Regulations

It’s a crazy Wine World Insane Regulations An incredibly complex product

It’s a crazy Wine World Distribution has all but ended as a viable sales channel for small wineries. Rob McMillan Insane Regulations An incredibly complex product

IS NEW MEDIA EFFECTIVE?

Is new media effective? 3,279,102 friends 620,359 friends 1,043,850 friends 218,172 friends 1,824 videos uploaded 330 videos uploaded Channel Views: 20,024,491 Channel Views: 2,221,268 151,206 followers 4, 848 Followers

Is new media effective? $360 $639 million million

Why yes, it is. $360 $639 million million Overall funds raised during the 2008 campaign.

Obama’s Online Fundraising • $150 million (sha@ered  previous record of $65m) • 632,000 donors (total was  3.1 million) • Average donaDon <$100  (Plouﬀe)

Hyper Speed After Palin disparaged Obama’s past work as a community organizer, he raised $10M within 24 hours, most of it online.

The Obama Network Widgets facebook MyBO.com Email Barack TV Social networks Outreach twitter Mobile

MyBO.com • 2 million proﬁles created • 35,000 volunteer groups • 400,000 blog posts • 200,000 ofﬂine events

Mobile Obama

New Media is extremely effective for branding, marketing and public relations…

Why? 1) Informative 2) Inclusive 3) Entertaining 4) Engaging 5) Democratizing

Hulu “Consumer behavior is one of the hardest things to change.The gap between the existing and the new has to be so materially better that it shocks you into behavior change.” --Jason Killer, CEO of Hulu

Hulu • 380MM videos (up 150% in 6 months). • 2.6% market share of all video. • Resurrecting old media properties, bring to whole new generation.

It’s powerful, ask Domino’s

Listening - Customer Service Chris Brogan – President of New Marketing Labs

Listening - Customer Service Chris Brogan – President of New Marketing Labs October, 2009… My website went  down. The moment I noDced it, I  tweeted to Rackspace, my host.  (Yes, I pinged Twi@er before  looking anywhere else). I said,  “Dear @rackspace – my site is  down. Please help.”

Listening - Customer Service Chris Brogan – President of New Marketing Labs Guess how long it took for them to  respond.

Listening - Customer Service Chris Brogan – President of New Marketing Labs Four Minutes.

Listening - Customer Service Chris Brogan – President of New Marketing Labs I’m fully sold on who I’d  choose if I needed  mission‐cri5cal support for  a heavy traﬃc site. I’d use  Rackspace cloud.

Zappos

Will it Blend? • A small company, no marketing budget - CEO Tom Dickson blends objects in their blender and video tapes it. • Marbles, golf balls, hockey pucks • 3.8 million views • 5x increase in sales (home and commercial)

#flymeto • Give away iPhones, ﬂights for tweeting their company’s name • 90x increase in Twitter followers in one week • Web trafﬁc up 600% • 100% increase in signups, still sustaining growth • Bolstered by coverage in the media (BBC, about.com, Mashable) Cost: $13,500

IS NEW MEDIA EFFECTIVE IN THE WINE INDUSTRY?

Gary Vay-ner-chuck • 850,000 followers on Twitter • Nearly 90,000 viewers per day of his vlog, Wine Library TV • Million dollar book deal • NYTimes, Amazon.com bestseller • $80 million retail, half on Internet

Murphy-Goode

Pinotblogger Josh Hermsmeyer wanted to start a winery. Participated in online forums, including eRobertParker • But found them hierarchical Now, nearly 5,000 Twitter followers • Up 3x since May Over 1200 mailing list names

New Media to Drive Offline Sales Free membership in a lower-tier ‘club’ No purchase commitments Exclusive content online • Recipes • Pairing tools • Special e-commerce offers Purchase ofﬂine ‘Proven’ by surveys with these ‘club’ members

Marketing is not the same… As sales. It’s about building brand awareness and connection, which should allow for the opportunity for sales.

Facebook for personal connections Already have a direct Fans on FB come to the relationship with people winery to buy wine at the winery who blog and are on FB

Facebook for personal connections Already have a direct Fans on FB come to the relationship with people winery to buy wine at the winery who blog and are on FB Tony the winemaker Josh & Ryan, Kent, the chef pourers in the tasting room

Old new media, more effective than new new media. Ad on FB offering 10% discount • Nearly 300,000 impressions (times displayed) • 90 clicks to the website • 0 sales • Targeted email more effective • FB-only 25% off promotion in honor of the winemaker and her husband’s 25th anniversary • 0 sales • Then emailed to mailing list…nearly $15,000 in sales

Old new media, more effective than new new media. Ad on FB offering 10% discount • Nearly 300,000 impressions (times displayed) • 90 clicks to the website • 0 sales Targeted email more effective • FB-only 25% off promotion in honor of the winemaker and her husband’s 25th anniversary • 0 sales • Then emailed to mailing list…nearly $15,000 in sales

Uncertainty about Facebook • “But I don’t think it affects the bottom line” • “Not the driving force behind sales, but a great information tool” • “Still trying to ﬁgure out how to measure its impact”

Uncertainty About Twitter • “Hard to track and measure” • “Not sure what to make of it yet. Is it a fad or is it a useful tool?” • “Losing its edge”

LESSONS

New Media is NOT a silver bullet “YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”

New Media is NOT a silver bullet “YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.” “YOU NEED TO HAVE YOUR WINES RATED BY WINE BLOGGERS.”

New Media is NOT a silver bullet “YOU NEED TO BE ON FB, “YOU MS, Twitter, FF, NEED to etc, etc, etc.” BLOG.” “YOU NEED TO HAVE YOUR WINES RATED BY WINE BLOGGERS.”

New Media is NOT a silver bullet “YOU NEED TO BE ON FB, “YOU MS, Twitter, FF, NEED to etc, etc, etc.” BLOG.” “YOU NEED TO HAVE YOUR WINES RATED BY WINE BLOGGERS.” WHAT IS THE TRUTH? Your brand will beneﬁt from a good social media strategy that is PART of your overall digital strategy. PICK the social network where YOUR type of customers are engaging. Do activities that yield the HIGHEST ROI for your efforts.

What new media will give to you • Exposure • Likelihood to be recommended • Customer acquisition • Extended customer life time value (LTV) • Measurement • Unparalleled access

Content is King From customer relationship management to customer-managed relationships MESSAGE MUST BE RELEVANT

Business is Personal The Godfather was wrong

Integrate the Old & New New media is just 1 (one, uno, eins, un, ichi, ) communication channel.

Integrate the Old & New New media is just 1 (one, uno, eins, un, ichi, ) communication channel. Publicity initially gained online may eventually get reinforced by traditional media. E-marketing, website, employee relations, community release, PR.

Be Patient Don’t expect immediate sales payoff, but you can expect uptake in discussions. Again, brand building is not the same as sales.

Set clear goals Finding trends and tracking them back to their point of origin is the key to measuring ROI. • Number of referrers on your e-commerce site (assuming you can track this data) from your website or Twitter • Number of coupons used that were given away in a Facebook campaign to start calculating which sales stemmed from your social media campaigns • Hash tags on Twitter, redirects in links • Use bit.ly

Take aways 1) Listen 2) Be Authentic 3) Be Transparent 4) Engage 5) Care

New Media and Wine

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