Transcript of " FINANCIAL TIMES SPECIAL REPORT DIGITAL & SOCIAL MEDIA MARKETING"
DIGITAL & SOCIALMEDIA MARKETINGFINANCIAL TIMES SPECIAL REPORT | Wednesday March 7 2012 www.ft.com/digitalsocialmediamarketing2012 | twitter.com/ftreportsAdvertisers rush Inside this issue Cautionary tales David Gelles findsto master fresh reasons to be careful when companies take advertisingset of skills online Page 2 B2B Paul Taylor sees a chance for business to gain traction with customers Page 2There are great R/GA, the digital agency. from customers, the iterations “These things are connected, we could do on a campaign,” Ownershipopportunities, and you can’t do one without she says. “We saw the ability to Ajay Makan looks at thesays David Gelles, the other.” really, really measure results.” wide variety of corporate The promise of these plat- Adobe now spends 74 per cent of responses Page 2but companies forms is tremendous. The new its more than $100m marketing Viral campaignsare still largely world of digital and social media budget on digital. April Dembosky looks marketing can give companies Even for a digital-first com-feeling their way increased access to their cus- pany such as Adobe, each cam- behind the success of internet sensations Page 3 tomers, fresh insights into their paign is a fresh start of sorts.O nly a few years ago preferences, a broader creative Ms Lewnes says 20 per cent of Marketing budgets digital marketers palette to work with, and her budget is going towards Tim Bradshaw says might have thought additional data and metrics to experimental campaigns, and campaigns via social media all was plain-sailing. study. that each product launch are still often unpredictableAfter a decade of disruption Yet there are unsolved ques- requires a different mix of paid, Page 3wreaked by the emergence of tions over how best to organise earned and owned media.the popular web, companies and and execute digital and social Perhaps the largest shift in A life in the dayadvertising agencies had finally campaigns. No single formula recent years has been the transi- David Gelles follows theunderstood the intricacies of tion from the one-way, broad- chief marketing officerplacing online display and cast messaging of television, of Gannett Page 3search ads. ‘People find it hard to print and outdoor, to the two- Yet in the past few years, a realise marketing is a way conversation that social Advertising Predictions ofnew generation of technologies options now allow companies to the display ad’s demise arehas come along to disrupt once twoway conversation have with their consumers. premature, writes Jane Bird Page 3again the way advertisers oper-ate. Led by Facebook and Twit- rather than a “It requires a shift in your perception,” says Maryam Ban-ter, and joined by behemoths oneway pushingout’ ikarim, chief marketing officer Mobile Tim Bradshaw explains why the promisedsuch as Google and a bevy of of Gannett, the media company. land is not quite with usstart-ups, these Silicon Valley “People find it hard to realise Page 4misfits have muscled into the ad has emerged, leaving most com- marketing is a two-way conver-business and upended tradi- panies and ad agencies in a sation rather than a one-way On FT.comtional assumptions about how state of constant experimenta- pushing out.” April Dembovsky explainscompanies should allocate mar- tion. There is also lingering con- Yet quantifying the effective- uring their fans and followers,” conversations around the news everything you need toketing budgets. fusion over how best to measure ness, and return on investment, says Ms Lewnes. “But what’s that Beyoncé was pregnant, it know about In addition to search and dis- the effectiveness of a campaign, of digital and social campaigns, important are the insights you added more pictures and stories Pinterestplay advertising, big companies and a company’s return on remains a challenge. Rather can glean from the data. Under- about the story to its website.must now factor in social media, investment. than tracking click-through and standing if someone is happy or Yet many markers remain dis-video advertising, mobile mar- Ann Lewnes, chief marketing conversion rates as with search unhappy with something.” satisfied with the state of onlineketing and daily deals. officer of Adobe, the software and display advertising, market- Social signals obtained from measurement. “We’ve gone from display and company, says she pushed the ers are trying to count follow- Twitter and Facebook can also Keith Weed, chief marketingsearch to this much longer list,” company into digital and social ers, measure sentiment and ana- give companies real time officer of Unilever, thesays Nick Law, chief creative marketing early on. “We saw lyse purchase intent. insight. When MTV saw thereofficer in North America for the insights we could glean “A lot of people are just meas- was a spike in online Continued on Page 2
2 ★ FINANCIAL TIMES WEDNESDAY MARCH 7 2012Digital & Social Media MarketingA chance for business to gain traction Is it aboutB2BThere have been in a B2B environment is managing their social net- work profile, and I think fire hose of information, make it actually be of use to us. not been leveraged enough, even though he notes that an estimated two-thirds of ences purchase decisions. What is more, 51 per cent of people using search are LinkedIn with a Twitter component. Mr explains: “It was almost Bell selling or service? that’s a testament to the “You can’t ignore it. I feel incidents of switching sup- doing it to find a recom- like a support group forsome successful fact that we now live blended lives.” inundated every day and so there’s a pressure to make pliers is down to B2B rela- tionship problems. mendation from someone else, preferably with experi- CFOs, so they could talk about their challenges withexperiments, He adds: “I think the sense of it and turn all that Ethan McCarty, who is ence of a product or service. other CFOs.”says Paul Taylor notion that ‘social media’ is a description of a technol- information into actionable insight.” the senior manager, digital and social strategy for IBM, “Yet we still don’t put enough emphasis in terms Ultimately, the virtual networking group led to ogy is not accurate. It is Jonathan Lister, who which works with Ogilvy of what shows up in those real world events and what “The shine has worn offThe role of social media in about human behaviour. heads marketing solutions PR, says he believes this first two pages of search both Mr Bell and Mr Mcarty ‘Ownership’ social media,” says Dr Norabusiness-to-business mar- “What’s changed is that for LinkedIn in North issue reflects “an overall results in relation to a B2B say was considerable value Ganim Barnes, the centreketing is much less talked more of us are using all America, agrees. buyer journey,” he says. in terms of sales leads. There is a wide director. “If companies can-about or understood thanits counterpart in business- sorts of social media plat- forms to take care of things “We have this aspiration at LinkedIn to connect tal- ‘Extend the He also believes that, with a few notable excep- “I think this is a great example, and it’s one we’ve variety of corporate not find a metric to show social media are generating relationshipto-consumer marketing. in our lives, from making ent with opportunity on a into the tions, companies are often been replicating around the responses, explains a return on investment, However social media dohave a role, and an impor- decisions on business, to communicating, to network- huge scale,” he says. So how does that trans- virtual space’ too slow to develop any- thing akin to brand advo- world because it was so effective,” says Mr McCarty, Ajay Makan they may no longer feel obliged to throw resources – Ethantant one, within business. ing, and so forth.” late to B2B marketing? McCarty cacy or expert programmes whose role involves educat- at, say, Facebook and Twit- “From my point of view, In addition, he says, B2B “Well, some of the people where they are putting peo- ing senior IBMers in the use There is still a great deal of ter, in the way they didall social media are highly social media are growing we’re mapping are finding ple within the company in of social media tools, and in uncertainty within the cor- when they were new.”relevant to B2B,” says John because our attention is that perfect article of news shift, in trust in organisa- direct contact with buyers. using social media to high- porate world about what But measuring resultsBell, who heads the interac- fractured. or connecting with that per- tions to trust in networks”. There are exceptions how- light their areas of exper- social media are for, and leads back to the thornytive, broadcast and print “There’s a lot of stuff to fect person, or connecting Mr Bell asks: “If you can ever including IBM. In tise. this is reflected in the lack question of ownership, anddesign team at Ogilvy PR. pay attention to and, from a with that perfect brand. extend the sales relation- India, it was trying to build “We learnt a couple of the of consensus about which whether a social media “There’s this mythology professional point of view, And we’re seeing that more ship from the oral and relationships with custom- things from that experi- department should take strategy is primarily aboutthat it’s first and foremost a there is not a moment and more. It’s all about rele- meeting space into the vir- ers at the highest level ence,” he says. responsibility. keeping existing customersB2C environment or set of where I feel like I am on top vance.” tual space, why not do it?” within companies. Most importantly, IBM A recent PR Week survey happy, brand management,behaviours more appropri- of everything I need to be Mr Bell adds: “Social He says many brands are So Robert Parker, the discovered that if it used found just 4 per cent of US or sales and marketing.ate to B2C than B2B, but we on top of. media’s value is in doing just that. His group’s chief financial social media to create a companies have a separate For all Mr Tobin’s talk offound that’s not true. “So I think that we’re all strengthening relationships research suggests that 60 officer in India, began to community of practice, par- social media team, while IT breaking down silos and “In fact, one of the fastest experimenting with ways in – that’s what it does.” per cent of buyers in the host a social media commu- ticularly where IBM has departments are almost as integrating approaches, hisgrowing social behaviours social media to make sense But, surprisingly in B2B B2B space say word of nity that was a combination brand credibility: “We get a likely to manage budgets as agency’s approach is nar-for senior decision-makers of this onslaught, of this relationships, he says it has mouth from peers influ- of a blog connected into lot of traction.” are PR teams. While nearly rowly focused on communi- all large companies engage cations. with social media in some His company staffs Twit- way, the variety of ter feeds and Facebook responses is huge. pages round the clock toWhat to do “The whole question of push the messages of client who ‘owns’ social media companies, but complaints within companies is prob- about a product are given a lematic,” says Jim Tobin, surprisingly old-fashioned president of Ignite, a social response: a 1-800 number or media agency based in email address to contact thewhen good North Carolina. “It touches on everything from cus- tomer service to marketing, and companies need to inte- grate it across everything client company’s customer services. Ignite is a marketing- focused agency, so clients know they are paying for asalesmanship they do.” focused service, but it is Many businesses have noticeable that there are turned to agencies to few, if any, social media develop a comprehensive agencies focused on cus- approach. In a relatively tomer service strategies. new medium, agencies are Even in a set-up such asgoes bad often thought to have a cut- ting edge in designing and executing social media strategies. But the trade-off is that agencies can never be as embedded in the cul- ’Campaigns are constant and ongoing, and soCautionary tales Ann Lewnes, chief marketing officer at Adobe, the software ture and message of a com- pany as employees. need more company. “That’s one of the big- Some see a model of the attention’David Gelles finds gest changes to marketing today. future emerging in a Chi-reasons to be careful You don’t just put a campaign out there. At any given moment, cago skyscraper. There, in the offices of Gatorade, the Gatorade’s command cen-when companies take someone is saying something sports drink brand, five in- tre, there are limits to inte-advertising online about your company and product, and you have to be listening.” house marketing and com- munication specialists sit in gration. Communications and marketing teams are Because McDonald’s was listen- front of a battery of screens still king. Customer serv-W hen McDonald’s ing, it says the damage was lim- programmed to track online ices specialists may be bought advertising ited, with the #McDStories paro- mentions of the brand, and given access to PepsiCo’s on Twitter this year, dies accounting for only 2 per to respond. social media applications to it was hoping to cent of conversation about the The idea is to marry in- respond to specific com-drum up some goodwill for its brand that day. “The response to house staff’s knowledge of plaints or queries, but theyburgers and fries. By promoting any type of complaint has to be the brand with the best of do not shape strategy.the “#McDStories” hashtag, it almost immediate,” says Ms technology. A media agency One exception to the biasexpected to users to share favour- Lewnes, adding that Adobe also is represented in Gatorade’s towards marketing is theite memories from the world’s strives to remain vigilant. “We social media “command hotel industry. Hyatt offerslargest restaurant chain. have a policy that within minutes centre”, but the effort is led a Twitter-based concierge Instead, critics of the fast-food we have to respond in a meaning- by, and directed towards, service that has 20,000 fol-chain hijacked the hashtag and ful manner.” the company’s own staff. lowers, and answers ques-used it to pillory McDonald’s, Other brands can simply be “The room has glass tions from guests or pro-accusing it of peddling unhealthy, tone-deaf in their promotions, doors to remind everyone in spective guests at any ofunappetising food. drawing the wrath of online crit- the company of the fact the company’s hotels. The incident was the latest ics quick to pounce on the slight- that social media are Starwood Hotels, whichexample of how well-intentioned est whiff of inappropriateness always on and affect every- operates brands such associal media marketing can back- from a big brand. When Casey thing they do,” says Joshua Sheraton, blazed a trail infire, putting a company on the Anthony, the mother suspected of Karpf, director of digital corporate social media adefensive. While sites such as murdering her daughter, was Tweets: critics of the fastfood chain hijacked the hashtag and used it to pillory McDonald’s and social media for decade ago by creating theFacebook and Twitter provide acquitted last year, the “#not- PepsiCo, which owns Gato- “lurker,” an online personaunparalleled access to customers, guilty” hashtag began trending on year Olla, the condom maker, blogosphere were swift and fierce. rade. that trawled websites forallowing companies to interact Twitter. devised a campaign to attract cus- “Our entire meal was a SHAM!” PepsiCo set up a “centre customer complaints andwith fans, they also provide a That prompted Entenmann’s, tomers. It created a programme wrote one participant. “We were of excellence” in 2008, and sought to address themforum for dissenters. the snack maker, to tweet: “Who’s that sent men a friend request unwilling participants in a bait- holds meetings among exec- directly. McDonald’s was monitoring the #notguilty about eating all the from their supposedly unborn and-switch.” The story went viral, utives to share best social Whatever the focus of aconversation on Twitter, and tasty treats they want?!” Custom- babies. So a Facebook user named and ConAgra was soon on the media practice, such as social media strategy, ana-quickly took down its promoted ers called Entenmann’s out, and Daniel Ogawa got a friend request defensive. Gatorade’s command cen- lysts say companies willtweets. “With all social media the social media agency repre- from “Daniel Ogawa Jr”, with a “Social media brings both tre, among brands. need to change the waycampaigns, we include contin- senting the company apologised picture of a baby and a message opportunity and threat. Entering But such a high level of they manage campaigns.gency plans, should the conversa- in a blog post. that said “Avoid surprises like the market with a siloed mindset resource commitment is Dallas Lawrence, chieftion not go as planned,” Rick “The mis-steps happen when this one. Use Olla Condoms.” can be extremely dangerous,” unusual. In one of the few global digital media strate-Wion, social media director for marketing departments aren’t Another ill-fated tactic involves says Laurence Buchanan, Digital academic studies of social gist at the Burson-Marstel-McDonald’s USA, told the FT. aligned with the brand’s values,” ‘Social media bring trying to engage with the social Transformation Lead at Cap- media activity, the centre ler agency, says: “Conven-“The ability to change midstream says Nick Law, chief creative both opportunity and media community on false pre- gemini Consulting. for marketing research at tional media campaignshelped this small blip from officer in North America for tences. “Having a mechanism in place the University of Massachu- involved intense work dur-becoming something larger.” R/GA, a digital agency. “There are threat. Entering the Last year, ConAgra, a maker of to filter through the vast amount setts, Dartmouth, found ing the commissioning Yet the damage was alreadydone, and the episode became a all these steps in the process where marketers take shortcuts market with a siloed packaged foods, invited bloggers to a four-course meal at an exclu- of noise generated on social media sites is a pre-requisite,” he says. that in 2011 take-up among Fortune 500 companies lev- period, but once they were launched, clients could stepcautionary tale for companies. to get some news out in the mar- mindset can be sive restaurant in New York. “But this is a complete waste of elled off, while there was back. McDonald’s scored points for ketplace.” Instead of haute cuisine, the blog- investment without the ability to retrenchment among fast “Social media work isbeing quick to respond. “You Social media gaffes are not lim- extremely dangerous’ gers were served frozen lasagne. act fast on opportunities and growing, privately owned constant and ongoing, andneed to be on it 24/7,” says ited to Twitter, however. Last The reactions on the threats as they come up.” US companies. so it needs more attention.”Advertisers rush to master fresh set of skills Contributors David Gelles US Media and Marketing CorrespondentContinued from Page 1 agencies to change the way out across television, print, could rapidly catch up, as ing our spend across differ- help determine the winners If marketers continue to Tim Bradshaw they work. radio, and the web. they adopt digital media. ent media,” says Mr Weed. and losers in the years to flock to new digital and Digital Mediaconsumer products group “Twenty years ago there “Things really are getting “In emerging markets “If you fragment, the mes- come. At stake are the valu- social options, Facebook Correspondentthat is the second-largest were templates,” says Mr joined up,” says Mr Weed. they’re going to go through sage you’re making it less ations of companies such as and its social media peersadvertiser in the world, Law at R/GA. “Now, we “The same creative is going these cycles much more cohesive and joined up.” Facebook, which earned may prove their worth. Paul Taylorsays: “Digital is in theory don’t have a typical client to flow across multiple quickly than us,” says Mr Technologies are chang- $3.7bn last year, mostly Yet if a proliferation of Editor, The Connectedmore measurable than any- engagement. Because media screens.” Law. ing fast, and few marketers from advertising, and is online options fragments Businessthing else, in theory and in are so flexible, we can get Growing access to the And digital advertising is would claim to know what preparing to go public at a advertisers’ spend, or if the April Demboskypractice, but it’s not broad very specific.” web in emerging markets is still a small portion of glo- new social platform might value of up to $100bn. promise of social media San Franciscoenough yet. What we’ll see One brand may need a also allowing for truly glo- bal advertising, accounting demand their attention a Yet some basic trends are goes unfulfilled, this Correspondentis a significant maturation robust Facebook page, bal campaigns. for 16 per cent of total year from now. emerging, with mobile moment could one day beof ROI in digital.” while another may call for a “A few years ago I would spend in 2011, according to access to the web leading seen as another bubble. Ajay Makan More insights and crea- strategy of engaging with be engaging much more of ZenithOptimedia. the pack. Regardless of that, it US Reportertive opportunities mean consumers on message a national base on cam- That figure is growing ‘Google and “If the first 1bn users con- seems certain that new Jane Birdmore work for marketing boards, blogs and elsewhere paigns,” says Mr Weed. fast, but television is set to Facebook are truly nected to the internet technologies are destined to Sarah Murrayteams, and can mean on the web. Such “But Google and Facebook remain the biggest advertis- through PCs, the next 1bn change the way consumersincreased costs for market- approaches are forcing are truly global media com- ing platform, accounting for global media will be through mobile,” interact with brands. FT Contributorsers. In-house and at agencies, departments within organi- sations to collaborate in panies in a way the world has never seen.” 40 per cent of total spend through at least 2013. companies in says Mr Weed, who recently visited a family in the Just as the web reshaped the advertising world a dec- Martin Brice Commissioning Editormarketers are scrambling new ways. The amount of money Managing the growing a way the world slums of Mumbai who none- ade ago, the new world ofto acquire new skills, and “It’s brought the market- being committed to digital array of digital and social theless had two mobile digital and social media Andy Mearsadd staff to monitor the ing teams much closer marketing varies widely, initiatives has forced com- has never seen’ phones. marketing is forcing compa- Picture Editorexponential growth of together,” says Ms Lewnes. with more developed coun- panies to revise their rela- Unilever was the first and nies and ad agencies to re-online dialogue about com- “They all used to be in their tries seeing a higher digital tionships with ad agencies, Pinterest, the online pin- largest customer for Apple’s evaluate where, how and Greg Meeson Front page illustrationpanies. silos. PR was off operating spend. as well. board and sharing site, is mobile iAd marketing when they engage with “You have to throw bod- by itself, advertising was Unilever, for example, Unilever reduced its ros- the latest to draw a legion platform, and has renewed potential customers. For advertising details,ies at that,” says Ms operating by itself. Now spends about 35 per cent of ter of more than 400 digital of users – and the interest its contract for a second “Ultimately, this concept contact:Lewnes. “There are people they’re working together.” its US budget on digital, agencies to fewer than 100, of marketers – without hav- year. of digital will disappear,” James Aylottwho have to monitor it all At its best, this can result compared with 25 per cent with just 12 lead global ing proved its business “I want to get to the says Mr Weed. +44 (0)20 7873 3392day.” in truly integrated market- in Europe, and just 4 per agencies, including Razor- model or staying power. future first,” Mr Weed says. “My 20 year old son Email: firstname.lastname@example.org Myriad options are also ing campaigns, with a uni- cent in India. fish, AKQA and R/GA. How this shift in the mar- “I don’t want to be follow- laughs at me when I talkforcing companies and fied message being pushed Yet emerging markets “We’re already fragment- keting world plays out will ing my competitors.” about online and offline.”