FINANCIAL TIMES SPECIAL REPORT DIGITAL & SOCIAL MEDIA MARKETING
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FINANCIAL TIMES SPECIAL REPORT | Wednesday March 7 2012

FINANCIAL TIMES SPECIAL REPORT | Wednesday March 7 2012

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 FINANCIAL TIMES SPECIAL REPORT DIGITAL & SOCIAL MEDIA MARKETING FINANCIAL TIMES SPECIAL REPORT DIGITAL & SOCIAL MEDIA MARKETING Document Transcript

  • 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: james.aylott@ft.com 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.”
  • FINANCIAL TIMES WEDNESDAY MARCH 7 2012 ★ 3 Digital & Social Media MarketingLights, camera, blender! How to create a hit Since the company started the “But it’s not something you can half-naked, from a beachside doubled after the social cam- destroy their product in the here as well. One is that peopleViral campaigns “meme” in 2006, sales of its plan for. There’s no formula for shower: “Hello ladies. How are paign, compared with the same blender. Blendtec charged any- may never connect the ad with retail blender have shot up saying ‘this will strike a chord you? Fantastic. Does your man time period the year before, the where from $5,000 to $35,000 for the brand, laughing and talkingApril Dembosky looks almost 800 per cent, says Kels and get millions of views’.” look like me? No. Can he smell company said. each video, with the price going about a funny beer commercial,behind the success of Goodman, Blendtec’s video pro- ducer. “It was entertainment, There are some key elements to a viral video, she says, such like me? Yes. Should he use Old Spice body wash?” “It was so far off the chart compared with what we had up if the company wanted the video posted to Blendtec’s but not remembering what brand it was for.internet sensations not selling,” he says. “That’s as being very funny, very topi- Two weeks after that commer- dreamed about,” says Mike Nor- unique YouTube channel. The other danger is not reach- why people loved it.” cal, or using cutting-edge tech- cial aired, the company’s adver- ton of Old Spice. “Also, you get But this made Mr Goodman ing the right audience for the These days, practically every nology, like Burger King’s tising team at Wieden+Kennedy this instant feedback and senti- wary, as the more promotional product. Blendtec’s videos wereFood blenders do not make the marketer is salivating for a sim- online “subservient chicken”. pushed social media to a new ment analysis from people who videos were posted, the more he hugely popular with young boyssexiest marketing material. But ilar internet sensation. With the Building on a television com- put their trust in the brand and felt it hurt the entertainment who enjoyed watching thingsBlendtec found a way round extensive reach of Facebook and mercial, the 2004 online cam- want to be part of it.” value of the series. crash and explode – not thethat by having its chief execu- Twitter, and the speed of shar- paign featured a man dressed in ‘People don’t pass on “It’s almost unfair to own Ms Lieb confirms there is a demographic that buys $400tive, Tom Dickson, drop an ing that comes with them, a a chicken suit with a garter belt commercials. They what we did – it’s so basic,” says balancing act marketers must blenders. But over time, middle-iPhone into its home blender, short video can be distributed at and stockings who performed Jason Bagley, a creative director perform. “The most viral cam- aged women bought a Blendtecpush the smoothie button, and almost no cost on the web, usu- whatever action a user typed pass along jokes and with Wieden. But the experience paign is the least branded,” she Total Blender, saying their sonsgrind it to a black dust. “I’m going to put this on ally with the recommendation of a trusted friend behind it. into a dialogue box on the screen, from touching its toes to stories, things that confirms to him: “Social media campaigns are going to exist for says. “People don’t pass on com- mercials. They pass along jokes saw it on YouTube. As always, with a hit, there isEbay,” he tells the camera, hold- The value to companies over the doing Michael Jackson’s moon- resonate with them’ a long time.” and stories, things that really pressure to produce another:ing up a cocktail glass full of anonymous, multimillion dollar walk. The gimmick promoted In some cases, companies resonate with them, not ‘30 days this puts makers of accidentalsmoking iPhone dust and flash- placement on television is huge. the chain’s fried chicken sand- have come up with such suc- to whiter teeth and fresher successes in a tough spot.ing an earnest smile. But coming up with a video wich and “Have it your way” level, when it took questions cessful “memes” that they build breath’.” “The good days of Will it The video was viewed 10.5m that taps into the cultural zeit- campaign slogan. from fans on Facebook and a secondary marketing business “That has led to a wave of Blend? were when we were justtimes on YouTube. To date, geist is an elusive task. More recently, Old Spice has Twitter, then wrote, produced, around it. homemade videos starring fooling around,” Mr GoodmanBlendtec has made 130 Will it “Everyone wants every cam- had raging success online, find- and posted video spots online of Just three months into the ordinary people that are in fact says. “Once you have to startBlend? videos, featuring the paign to be viral, just like every- ing multiple ways to exploit its their Old Spice guy answering Will it Blend? series, Blendtec company-backed ads made by concentrating, once you startdestruction of lightbulbs, golf body wants every movie to be a iconic “the your man could them, in less than 10 minutes started receiving calls from professional producers and paid putting dollar signs and a time-balls, even a Nike running shoe. hit,” says Rebecca Lieb, an ana- smell like” character, who spoke each. Many thousands wrote in. other companies, including Ford actors.” frame to creativity, it’s reallyAlmost all have gone viral. lyst with the Altimeter Group. to potential customers in 2010, Sales of Old Spice body wash and Google, begging them to But there are two dangers hard.” Dangers of a fast­moving bandwagon book page were more ener- Marketing budgets gised by simple questions such as whether milk or tea Campaigns via should go into a cup first. social media are still Despite the excitement surrounding social plat- often unpredictable, forms, paid advertising says Tim Bradshaw remains relatively low, at 20 per cent of display spend- ing, but 5 per cent of total First Google and Yahoo, digital media. then Facebook and Twitter, “The challenge remains now Tumblr, Instagram and fully to prove the return on Pinterest. For digital mar- investment in what is a keters, there is always the very fast-moving environ- latest “new thing” – usually ment,” says Richard Mar- with an odd spelling. shall, managing partner ofMaryam Banikarim: ‘Once I got to Gannett, I made a commitment to really tackle this social media thing’ Pascal Perich “Advertisers don’t want TMW, a creative communi- to miss out. They worry cations agency. that if they don’t jump on Nonetheless, money con-A dedicated follower of fashion the bandwagon and it tinues to flow into digital. becomes a Eurostar, they Guy Phillipson, chief execu- might look ridiculous,” says tive of the Internet Adver- Christophe Cauvy, Euro- tising Bureau, says new pean head of digital and money is moving online innovation at JWT and a from classified, press and miles from Gannett’s head- world. “When someone have to develop the muscle panies’ total advertising pany that is trying to rein- long-time digital marketing direct marketing budgets.A life in the day quarters outside Washing- emails me and says, ‘There memory yourself.” spend. vent itself.” practitioner. For consumer goods ton, DC. “My goal is to is this company I think Ms Banikarim also “While people are spend- She also participates in Burberry, the British brands such as drinks, dig-David Gelles bring the outside in,” she you’ll be interested in,’ I try required everyone on her ing serious money on dig- the M50, a twice-annual fashion brand, has emerged ital can be a substitute forfollows the chief says. Instead of spending all to take the meeting,” she says. team to have a social media presence, even if it was not ital, it’s usually not more than 10 per cent of the gathering of marketing heads from companies in the past year as a digital marketing pioneer, with physical promotional prod- ucts, he says. Smirnoff’smarketing officer day in team meetings, por- During these meet-and- an official Gannett account. spend,” she says. around the US. To share hundreds of thousands of “Nightlife Exchange” cam-of Gannett ing over details of market- ing plans, Ms Banikarim greets, she is on the look- out for young digital com- She then brought in an out- side agency to train them She also sets aside part of each day for learning about her observations, she writes a company-wide monthly followers on Twitter and Google+, and nearly 11m paign on Facebook, which ran an online talent show prefers to be out in the city, panies that Gannett might on best practice. subjects that are not neces- newsletter, called “On the Facebook fans. to find a new backingM aryam Banika- holding meetings, attending partner with, or even “Once I got to Gannett, I sarily part of the chief mar- Road,” a homage to Jack It has also been an early dancer for Madonna, might rim, the chief presentations from other acquire. Now Ms Banikarim made a commitment to keting officer’s role. Kerouac. adopter of new social net- previously have been run marketing companies, and learning regularly schedules meet- really tackle this social “Going into those areas Being externally focused works, using photo-sharing on beermats, for instance. officer of Gan- what some of Gannett’s ings where start-ups media thing,” she says. that aren’t like marketing is can leave her strapped for service Instagram to show Of all the major digitalnett, eschews the black media properties are doing present their wares to her important,” she says. “You time. “When you’re in the behind-the-scenes pictures formats, Mr Phillipson saystown cars that shuttle to use technology to engage and Gracia Martore, Gan- have to be open to things midst of a transformation, from fashion shows and vir- online video is among themany business leaders to their audience. nett chief executive, and ‘There’s an like design and music that it’s so busy,” she says. tual clipboard Pinterest to fastest growing, with spend-work in New York City. At a time when the mar- Tom Cox, deals head. incredible pace are not part of traditional “It takes a concerted capture London Fashion Instead, each morning she keting world is changing “There’s an incredible marketing.” effort to make the time, Week, although Burberry istakes the subway from her rapidly, thanks to advances pace of innovation in the of innovation. This recently took her to even though it would be yet to use microblogging New money ishome in the Chelsea neigh- in digital and social media, digital space,” she says. First Facebook a presentation by JC Pen- easy to work through those platform Tumblr. moving onlinebourhood to Gannett’s Ms Banikarim finds herself “First, there was Facebook ney, the US retailer, as it hours. Which means that A “strategic innovationoffices in midtown Manhat- always looking out for the and Twitter, now there’s and Twitter, now unveiled its new corporate “it’s only at 6 o’clock when council” of Burberry from classified,tan, where she oversees themarketing efforts of the 100- newest thing, while still try- ing to learn lessons from Pinterest [an online pin- board service].” there’s Pinterest’ identity and discussed plans to win back the US con- you start to get to work,” she says. employees aged under 30 guides which new digital press and directyear-old media company. other big companies. Each platform serves its sumer. Upon returning to her platforms the fashion brand marketing budgets “I really love the sub- “The marketing land- own role, and Gannett An early test came when She knew Michael Fran- Chelsea home, she often should adopt, based largelyway,” she says. “It’s the scape has become much chooses sites according to the company had to decide cis, JC Penney’s chief mar- finds that there is yet more on intuition and what theyfastest way to get around, more complicated,” she its goals. whether to use the bit.ly keting officer, from her pre- to do. personally enjoy using – ing doubling year-on-year inand I’m curious by nature. says. “Ten years ago, you “Social is not just one link-shortening service, or vious job, when she headed “Mine is your multimedia although Burberry admits the UK. Video helps to tell aThe mix of people is some- were looking to buy print bucket,” she says. “The whether to insist readers marketing at Univision, the multi-device household, I’m that calculating the returns story, he says.thing that has long mesmer- and radio and TV and out- sites all have different audi- share longer links. In a vote Spanish-language television on my iPad looking at is not an exact science. Other key themes the IABised me.” door. Today, you’re con- ences and purposes.” for brevity, Ms Banikarim station. blogs, my husband is play- But for every Burberry, has identified for 2012 Her commuting habits are stantly getting pitched new Ms Banikarim says she went with bit.ly. “It was really fascinating ing a game on his iPhone,” there is an ArenaFlowers. include integration acrosspart of Ms Banikarim’s pol- things.” tries to take a hands-on Yet she cautions that for to hear Penney lay out its she says. com, the online florist, that media, online and off, andicy of being “externally Once arrived at her office, approach, using social all the excitement around transformation plan,” she “It’s usually after every- initially struggled with ensuring better attributionfocused.” Ms Banikarim might meet media actively herself. digital and social media says. “There are a lot of one goes to bed that I start social media. of value across the lifetime Indeed, Ms Banikarim some of the start-ups dis- “Everybody today needs to marketing, it remains a parallels with Gannett. IT scrolling through articles to “The average person buys of a campaign.works from New York, 200 rupting the marketing be digital,” she says. “You small fraction of most com- too is a 100 year old com- see what I missed.” flowers two or three times a But data are fast becom- year,” says Will Wynne, ing the “black gold” of the chief executive of Arena- industry, Mr Phillipson Flowers. “So how do we get says. Data are constantly people to keep following us being gathered from con-Banners set to become ‘smart and sexier’ without shoving flowers down their throat?” Two years ago, Arena took to Twitter to post sumers online and can cap- ture browsing behaviour, indicating purchase intent, audience demographics and photos of bouquets and even past transactions. Facebook’s revenue. The There are now also non- could link to property, per- are 74 per cent more likely share coupons, and found The sophisticated target-Advertising company is preparing for a standard formats, such as sonal finance or lifestyle to buy. It uses anonymised that these fell flat. ing of consumers that these $100bn flotation, and Ms homepage takeovers, or sections, where there might data gathered by cookies to “It wasn’t measurable,” data allow has prompted aPredictions of the Fenner says: “There’s interstitials, that change be more specific banners for discover which websites says Mr Wynne. “The main resurgence in display adver-display ad’s demise plenty of life in the banner format yet.” Her view is shape when the cursor is rolled over them. They relevant products such as mortgages, investment individual customers have previously visited, and to ways we spend our time are on pay per click, search tising in the past two years. Banner ads, once cheap andare premature, supported by eMarketer, a might expand to fill a larger accounts, or credit cards. understand their personal engine optimisation and commoditised, have beenwrites Jane Bird US-based digital research company, which expects proportion of the screen, then disappear, or reveal JWT used this technique for HSBC’s annual sale preferences. Sam Barrett, Struq’s chief affiliate marketing, because you build big databases to given new life by the ability to buy ad slots through online display to overtake something underneath. campaign. Ms Fenner says: executive, recognises that crunch numbers and be automated exchanges.Website display advertise- search ads by 2015. “These richer, heavier for- “We needed some signifi- not everyone welcomes very analytical. The social “It’s more efficient andments are so pervasive that Ben Gibson, managing mats are much more inter- cant awareness-building, so such surveillance. People side is a bit wishy-washy, the principle behind it ismany industry commenta- director of The Search we developed interruptive can opt out or select like but you can get a soaraway that you are able to looktors believe they have lost Agency, says: “Although homepage takeovers and and dislike options for spe- Sonali Fenner success – which you can’t before you buy,” saystheir effectiveness. search advertising is still ‘Search advertising special builds to tie in with cific products. “We want to do by being analytical.” Marco Bertozzi, managing So-called banner ads are core, display is enjoying a is still core but the offline advertising and give users control of what says. “We might launch a ArenaFlowers therefore director for Europe, theincreasingly ignored, they renaissance, because it can create a splash.” they see,” Mr Barrett says. single set of banners and changed its social strategy, Middle East and Africa atsay, and will gradually dis- now be targeted for greater display is having To plan this sort of cam- Buying specific locations refine them, or launch mul- employing an external the Vivaki Nerve Centre, aappear. They expect searchads, which already account relevance.” Also, its effectiveness can a renaissance’ paign and decide where to place the banner ads, crea- is relatively expensive, whereas identifying generic tiple ads in parallel and watch which performs bet- agency of comedy writers to pepper its Twitter feeds division of Publicis Groupe. The move towards real-for about 60 per cent of be accurately measured and tive agencies work with customer characteristics is ter. JWT typically reviews with offbeat jokes and one- time exchanges also under-online advertising, to take optimised for better return ruptive, they make people media agencies such as cheaper. On LinkedIn, an banner performance weekly liners. Followers, replies lines another trend in dig-over completely. Text-based on investment. Banner ads stop and notice,” says Ms MindShare, OMD and Medi- advertiser might ask for during a six-week cam- and re-tweets rocketed. ital marketing.search ads appear as the typically come in three Fenner. They also tend to aCom. The agencies ensure banners to be displayed to paign, to check it is gener- As Arena found, the con- “We are seeing a muchfirst few results of tapping a shapes: the leaderboard at be more complicated and the banners appear at the university-educated people ating the traffic and sales. tent that is widely shared more global approach inrequest into a search the top, the sky scraper side expensive to build. The fact right time and place. aged under 35 in London. Although people might online is not always that how advertisers are lookingengine, and in a column column, and the multiple they are non-standard usu- Increasingly powerful anal- Spotting when a banner not click on banners, JWT which the brands expect. at the world,” says Mr Ber-down the right hand side. purpose unit box that can ally involves extensive col- ysis techniques are used to has worked is fairly easy by believes the evidence sup- Yorkshire Tea, a brand of tozzi. “Big media companies However, Sonali Fenner, be various sizes. laboration and testing. target banners at those who using metrics such as the ports their continued role. Bettys & Taylors of Harro- such as Facebook, Googlejoint head of account man- At first, banners were A financial services com- will find them relevant. number of clicks or page “In the words of Google, gate, made some television and Yahoo are able to workagement at JWT London, static graphics, but increas- pany might place a generic Struq, a London-based views. Getting banners banner is set to become commercials showing one of with advertisers acrossthinks banners will thrive. ingly they include audio, banner on the homepage of agency, says it can improve right first time is not an smart and sexier,” Ms its vans travelling across markets and regions to They account for most of video and animation. an online newspaper. This targeting so that customers exact science, Ms Fenner Fenner says. the US, but fans on its Face- deliver campaigns at scale.”
  • 4 ★ FINANCIAL TIMES WEDNESDAY MARCH 7 2012Digital & Social Media MarketingNirvana is tantalisingly close Non­profits Turning to web to snare philanthropists A New York­based non­profit called “charity: to communicate with supporters. The content it its subscribers of between water”, which has more puts out is designed notMobile 20 and 65 per cent, a level than 137,000 Twitter just to attract more funding unheard of with traditional followers, uses social media but to engage a communityTim Bradshaw online marketing. to link supporters to interested in eradicatingexplains why the Mobile adspend in the UK is estimated to have more photographs and videos of its work. Meanwhile, its poverty. In 2010, the organisationpromised land is than doubled in 2011, Facebook friends can see ran a social medianot quite with us according to the Internet Advertising Bureau. An highlights of the fundraising ball or send in pictures of campaign called On the Ground in response to weak IAB study last year found themselves wearing ts coverage of the PakistanF or a decade or so, smartphone owners go wristbands, hats, T­shirts or floods in US media. someone has pro- online an average of 18 temporary tattoos. “The mainstream media claimed every year times a day. This and other non­profits weren’t really going there,” as the “year of Despite the slow build-up, find social media sites offer says Mr Wu. “So we builtmobile advertising”. many companies have been an unparalleled way of an entire micro­site where The promise of marketing caught off-guard by the connecting with supporters. people could share stories,directly to a device in some- arrival of mobile as a seri- In the private sector, social photos and videos of whatone’s hand, material tai- ous media and marketing media have merely shifted they were seeing, and welored and targeted to their channel. the way companies allocate made it easy to share thatindividual needs, has been a Only 15 per cent of FTSE marketing budgets, but content through Twitter andlong-awaited nirvana. 100 companies have a communication and Facebook. But a combination of mobile-formatted home- marketing in the non­profit It wasn’t necessarilysmall screens, a fragmented page, says the IAB. Many sector have been about our work at Acumenmedia market and concerns have leapt with gusto into transformed, giving but it was topical to ourthat mobiles may be just app development, which tal- organisations the ability to audience.”too personal for advertising lies with consumers’ run previously unthinkable Similarly, for Oxfam, theheld back the explosion. greater preference for con- global marketing campaigns. UK­based charity, direct However, after the aggres- suming content in that for- Once, global campaigns fundraising is only a part ofsive entries into the market mat. meant spending large sums why the organisation usesof Google and Apple in 2010 However, maintaining a on print or television social media. “It’s more toand with smartphones tak- mobile web presence is advertising, billboards or raise awareness of whating almost half the market important for simple but direct mail, channels that we’re doing so as toin the US and Europe, last often overlooked tasks such few non­profits could afford. increase the opportunityyear finally saw a turning as email or search queries. “Social media are a for fundraising,” sayspoint. As a result, the “bounce critical means of getting the Sarah Jordan, Oxfam’s “2011 was the first real rate” for visitors who leave message out in a cost­ head of digitalyear of mobile,” says Brian a site on mobile after view- efficient way,” says James communications.Wieser of Pivotal Research, ing a single page is almost Wu, at Acumen Fund, a Social media sites allowan independent equity ana- nine in 10. New York­based non­profit non­profits to communicatelyst firm. “After many However, despite Google venture fund. more directly withyears of expectation, mobile and Apple lowering the The change coincides supporters than a pressat last arrived as a rela- upfront costs of their dis- with a shift in the profile of release. “Updating snippetstively mainstream market- play advertising in Febru- donors. Philanthropy is no of information from the fielding channel.” ary to encourage more into longer the preserve of has immediacy and feels A barrage of big numbers the market, price has not wealthy individuals and more genuine when ourexplains why the technol- been the main barrier to foundations but is humanitarian teams areogy has finally broken brands’ use of mobile. increasingly being taken up explaining what’s going on,”through. The mobile inter- Nielsen found that ads by large numbers of young says Ms Jordan.net now has a scale of audi- shown on mobile ranked The iPhone4: ‘Mobile [has] at last arrived as a relatively mainstream marketing channel’ Brian Wieser Getty people wanting to give But social media sitesence that has demanded lowest among any kind of small amounts of money present non­profits withbrands’ attention. media when judged by con- advertising screen,” says searching for online dis- deals did not generate that “geo-targeting remains and track how their audiences that are too big. A study by Nielsen and sumers’ trust. Just 26 per Christophe Cauvy, Euro- counts. enough revenue to warrant ahead of its time”. donations are used. “With a small team, theNM Incite, the market cent trusted text-message pean head of digital and ComScore, a supplier of a mention in its filing to go “While some marketers “The onset of social question is how to keepresearcher’s joint venture ads and 27 per cent mobile innovation at JWT, a WPP digital marketing intelli- public. will place value on informa- media and the change in track of it,” says Mswith McKinsey, found there agency. “The screen size gence, says: “The retail Other check-in apps such tion associated with loca- the philanthropic landscape Jordan.are nearly as many mobile does not allow much nice, industry, which experi- as Gowalla and Rummble tion, we believe that most are not mutually exclusive, “You have to provideinternet users today as ‘The size of the non-intrusive advertising.” enced an upheaval with the failed to break through to large marketers are not and it’s no surprise that content and havethere were internet users in screen does not So, as more brands move advent of online shopping, the mainstream and folded, organised in a manner that they came of age at the conversations, but how2000, with 44 per cent of US into mobile marketing, is poised for further disrup- and though their last affords effective manage- same time,” says Mr Wu, do you manage that whenmobile subscribers using a allow much nice, retailers face perhaps the tion, as smartphones enter remaining big rival Four- ment of campaigns targeted who is responsible for there are so many ofsmartphone. ComScore found that by non­intrusive greatest challenge. Armed with smartphone bricks-and-mortar stores, bringing the internet right square has notched up some 15m users globally, it on the basis of a narrow geographic location,” he Acumen Fund’s online communications and them taking place on so many platforms andthe end of 2011, 127.6m advertising’ cameras and barcode- on to retailers’ home turf remains a specialist rather says. fundraising. channels?”mobile users in the US and scanning apps such as and further complicating than a mass-market propo- “Narrow geo-targeting Acumen Fund uses108m users in Europe were Ebay’s Red Laser, shoppers consumer conversion.” sition. will be generally inefficient Facebook, Twitter and blogs Sarah Murrayregularly consuming some display ads, lower even are comparing prices in- It notes: “Smartphones As such, Mr Wieser of in terms of costs and bene-kind of mobile media, than regular banners on the store but buying online have become consumers’ Pivotal Research believes fits for most brands.”whether through apps or web (29 per cent) and well instead. “We are now seeing most valued shopping com-the browser – a 30 per cent below adverts in search one item purchased every panion.”rise on the previous year. results (36 per cent) or on second via mobile devices In such a situation, retail- Google announced its TV (46 per cent). in Britain, double the rate ers are being strong-armedmobile revenues hit $2.5bn Similarly, a poll of more we saw at the beginning of into the mobile worldduring 2011, including than 4,000 adults in the UK last year,” says Angus whether they like it or not.searches on tablets such as and US by YouGov on McCarey, UK retail director However, despite the sig-the iPad, and Facebook behalf of Upstream found at Ebay. “Apps such as Red nificant growth of the pastannounced it has 425m that two-thirds would find Laser are blurring the lines 18 months, one element ofmobile users. it unacceptable to receive between online and offline mobile marketing remains Blyk, a mobile media net- “unwanted advertising” on shopping.” largely out of reach: thework that works with oper- their mobiles. ComScore found more holy grail of location-basedators in India and the UK, “The main problem is than half of US smartphone targeting.said the number of people that ads on such an inti- owners used their mobile Facebook’s attempt toopting in to view ads leapt mate device are perceived for purchasing in a shop, harness “check-ins” to spe-from 1m to 4m during 2011, differently from when seen with one in five scanning a cific spots via its smart-with response rates among on a TV screen or outdoor barcode and one in 10 phone app for localisedNow’s the perfect time forinvestors to target music recorded music sales were choice of songs and music creators, beat theGuest Column in a digital format, with 98 catalogues containing pirates at their own game.FRANCIS KEELING per cent of all singles sold millions of tracks. As the late, great Steve in this way. Some 95 per Models vary from the Jobs would have cent of these revenues hugely successful recognised, the key toAdele being cut off in full came from digital-only download-to-own model success is elegantflow may have been the retailers, with many of the led by iTunes, to video simplicity.most memorable moment world’s traditional retailers streaming by Vevo and Radio is the ultimateof this year’s Brit awards, having failed to move to on-demand subscription example of simplicity, withbut the real story of the digital. services by Spotify, Deezer just one button to play. Inmusic industry’s annual Music has always been and Napster. the US, Pandora – anjamboree was the part of people’s everyday The key success factor automated musiccontinuing conveyor belt of activities, whether those be for this new breed of recommendation serviceBritish talent. exercising, eating, driving services is that, for the that creates personalised This represents a or going to a bar. first time, they offer a radio “stations” – hascreative success story that Now the same applies to better experience than amassed millions of userssees the UK punch well online experiences such as piracy. thanks to its simplicity.above its weight in the browsing, blogging and Although this provides In Europe, however, newglobal market. tweeting, with digital incredible choice, it digital services have Successfully exploiting music services increasingly arguably sends a confusing focused on providingthe English language and integrated to everyday life message to consumers. on-demand music and theour music heritage, British and users streaming many ability to search and listenartists accounted for some hours of music each day. New breed of to anything, on any device.12 per cent of global sales For the music industry, services The divide between pushof recorded music during this has meant a big offers a (sit back and listen) and2011, and no fewer than change, with an increasing better pull (search and discover)six of the year’s top 20 number of people no longer experience services creates anbest-selling albums worried about owning than piracy opportunity crying out forworldwide. music. something to fill the gap. All this takes They just want to be In future, we expect theinvestment, and without able to access it and listen Users new to services right service to provide athis investment there can to their favourite songs require time to understand combination of wellbe neither growth nor the whenever they want and, the experience, and it is curated radio stations andnew talent fans rightly crucially, on whatever clear that many services user-generated playlists,expect. device they have with will take time to settle in. which can be shared The days when record them at the time. Retailers, with the among friends.companies physically The phenomenal support of rights owners, Above all, it must bemanufactured vinyl are development rate of need to offer consumers able to make good musiclong gone but A&R – technology, particularly of long-term trials, so they recommendations –Artists & Repertoire, the handheld devices, has led can assess what model is whether based on mood,almost mythical process of to a change of music right for them. sentiment, genre or simplydivining new talent – is as player from hi-fi to PC, to Spotify has proved this, what someone is hearingvital as ever. mobile phone and tablet – by converting millions of at that moment. Finding talent, providing and now increasingly to its free open service users As well as pressinginvestment to support connected TV and gaming to paying subscribers. governments to implementrecording, production and, consoles. By developing ideas that legislation to combatmost importantly, Many digital services capture consumer interest, piracy, the music industrymarketing are even more are now available as a the technology innovators is doing all it can tocrucial, now that the downloadable app that can are encouraging content license more legal servicesroutes to market for new be controlled via TV owners to work closely and to educate consumers.artists are so diverse. remote. with them and make the Now is the perfect time for However, a key part of In Europe, there are music licensing process far investors to target music.our growth will come from more than 300 legal digital easier to navigate.external investment in new music services operating Only by working in The writer is Global Headdigital services. (67 of them in the UK conjunction with of Digital Business at In 2011, 32 per cent of alone), offering a vast technology can we, the Universal Music Group