Dave Balter on Social Marketing and Word of Mouth, April 2011

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Dave Balter, CEO of BzzAgent, Spring 2011 Speech. http://www.about.me/davebalter

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  • I’d like to start off today’s presentation with a brief history of BzzAgent. Our CEO started BzzAgent in 2001 after reading Malcolm Gladwell’s Tipping Point. At this point we effectively started the WOM industry. In 2002 we anticipated the ethical debates around WOM and social media marketing and established the first Code of Conduct. We also recognized we needed an industry trade group to focus on these issues full-time, and helped establish WOMMA. In 2009 and 2010 we expanded our digital WOM capabilities, utilizing Facebook’s “open graph” and Twitter’s API to help brands create broad online exposure through our Agents. We also partnered with leading analytics firms Nielsen and IRI to add more comprehensive program analytics to our offerings. So far BzzAgent programs have been picked up in 12 MMM models conducted by these partners, with significant sales impact and positive ROI. BzzAgent is the ONLY social marketing company that has been picked up in MMM studies, which are the gold standard in media analytics approaches.
  • We hear from the biggest brands that participation is difficult. It’s one thing to create a Facebook Fan Page – it’s another to get anyone to do anything there. Yes, holding a sweepstakes will get people to sign up, but then they’ll either go silent or ask for more hand-outs. Way back in the late 90’s Jakob Nielsen created this diagram to describe typical online community behavior. The idea is very simple: in the vast majority of communities, the bulk of activity comes from a small group of people. These are the folks who create content, lead discussions, comment or rate other content, and share with others. This is contrast to the bulk of site users who simply read content without contributing – also known as “lurkers”.
  • We hear from the biggest brands that participation is difficult. It’s one thing to create a Facebook Fan Page – it’s another to get anyone to do anything there. Yes, holding a sweepstakes will get people to sign up, but then they’ll either go silent or ask for more hand-outs. Way back in the late 90’s Jakob Nielsen created this diagram to describe typical online community behavior. The idea is very simple: in the vast majority of communities, the bulk of activity comes from a small group of people. These are the folks who create content, lead discussions, comment or rate other content, and share with others. This is contrast to the bulk of site users who simply read content without contributing – also known as “lurkers”.
  • Dave Balter on Social Marketing and Word of Mouth, April 2011

    1. 1. Advocacy in a Social World #BzzAgent @davebalter
    2. 2. Man Groomer
    3. 3. The Evolution of Word of Mouth A long, long, long time…
    4. 4. The last decade… <ul><li>Outposts </li></ul><ul><li>New connections </li></ul><ul><li>Always on </li></ul><ul><li>Real-time </li></ul><ul><li>Your Weak Ties </li></ul><ul><li>Scale </li></ul>Social Marketing
    5. 5. Social Media has overtaken porn as the #1 media on the Web
    6. 6. Coca Cola spent roughly on advertising last year $2.44 billion
    7. 7. “ While TV is still an important medium for promoting our brands, many of our recent advertising campaigns and promotions have also utilized online facilities such as Facebook and YouTube more” -6.6% = $121M
    8. 8. The Social cycle 1. The experiences 2. The platforms 3. The advocates
    9. 9. The EXPERIENCES
    10. 13. Viral COEFFICIENT
    11. 15. Threewords.me God.com Satan.com
    12. 16. 100,000 to 4,000,000 users in 15 months
    13. 17. The PLATFORMS
    14. 19. X X X July 2008
    15. 20. 2005 2006 2007 NOV. 2009 DEC. 2009 APRIL 2010 Facebook PRIVACY POLICY No personal information will be available … limit the information displayed … unless you alter your privacy settings. The default privacy setting is set to “everyone.” Therefore do not have privacy settings. Access to General Information about you.
    16. 22. The ADVOCATES
    17. 25. The Tipping Point + The Social Media Network connector connects people to each other maven connects people through sharing knowledge salesman uses knowledge to engage and persuade
    18. 26. Tipping Point was “Influence 1.0” Influence 2.0 “ Topic” State Behavior is Not Static Tracked By Our Social Behaviors The Tipping Point + The Social Media Network connector connects people to each other maven connects people through sharing knowledge salesman uses knowledge to engage and persuade
    19. 29. Source: Jakob Nielsen, Participation Inequality: Encouraging More Users to Participate 1% CREATORS 9% EDITORS 90% AUDIENCE
    20. 30. Source: Jakob Nielsen, Participation Inequality: Encouraging More Users to Participate Heed the 1% Rule Over 50% of all the Wikipedia edits are done by just .7% of the users … 524 people. 167,113 of Amazon’s book reviews were contributed by just a few “top-100″ reviewers. 25M users of Facebook Causes App…185,000 donations: .7% 1% CREATORS 9% EDITORS 90% AUDIENCE
    21. 31. 4 Methods for CREATING ADVOCATES
    22. 35. METHOD #1: Generate Status
    23. 37. “ I just looked at my followers number and said to myself ‘ where did all these people come from?’ ”
    24. 40. Welcome to the Social Media Boy Scouts
    25. 41. Farmville
    26. 42. Farmville
    27. 43. Farmville North of 80 Million Users 17 Million Daily Active Users
    28. 44. METHOD #2: Offer Incredible Value
    29. 51. METHOD #3: Make it Scarce
    30. 55. PATTY: BONELESS PORK (PORK, WATER, SALT, DEXTROSE, CITRIC ACID, BHA, TBHQ). SAUCE: WATER, HIGH FRUCTOSE CORN SYRUP, TOMATO PASTE, DISTILLED VINEGAR, MOLASSES, NATURAL SMOKE FLAVOR, MODIFIED FOOD STARCH, SALT, SUGAR, SOYBEAN OIL, SPICES, ONION*, MUSTARD FLOUR, GARLIC *, XANTHAN GUM, CARAMEL COLOR, SODIUM BENZOATE (PRESERVATIVE), NATURAL FLAVOR (VEGETABLE SOURCE), CORN OIL. *DEHYDRATED PICKLE SLICES BUN: FLOUR (WHEAT FLOUR BLEACHED AND ENRICHED WITH THIAMINE, RIBOFLAVIN, NIACIN, IRON, FOLIC ACID, MALTED BARLEY FLOUR), WATER, HIGH FRUCTOSE CORN SYRUP, YEAST, VEGETABLE OIL (PARTIALLY HYDROGENATED SOYBEAN OIL, COTTONSEED OIL). CONTAINS 2 PERCENT OR LESS OF DEXTROSE, FUMARIC ACID, CALCIUM SULPHATE, SALT, ACETIC ACID, SOY FLOUR, MONOCALCIUM PHOSPHATE, AMMONIUM SULPHATE, CORNSTARCH, FUNGAL PROTEASE, NATURAL CULTURE, AMMONIUM CHLORIDE, ASCORBIC ACID, AZODICARBOMIDE, MONO- AND DIGLYCERIDES, PROPIONIC ACID, PHOSPHORIC ACID, CORN FLOUR, CALCIUM PEROXIDE, CALCIUM PROPIONATE, DICETYL TARTARIC ACID ESTERS OF MONO- AND DIGLYCERIDES, ETHOXYLATED MONO- AND DIGLYCERIDES. What Am I Eating?
    31. 56. McRib Nutritonal Info 490 calories, 220 calories from fat, 25 g fat, 8 g saturated fat, 75 mg cholesterol, 1040 mb sodium, 44 g carbohydrates, 2 g fiber, 24 g protein, 11 g sugars. What Am I Eating?
    32. 59. METHOD #4: Provide Exclusivity (or Access)
    33. 65. What’s Happening On Quora? Facebook co-founder Dustin Moskovitz offers his opinion of the movie The Social Network. Google Images product manager Nate Smith explains how color image search works. Foursquare's head of business development talks about what it's like to work for founder Dennis Crowley.. AOL co-founder Steve Case answers how much it cost to mail everyone those CDs back in the 1990s.
    34. 66. $121,000,000
    35. 67. Statistical Analysis of marketing efforts
    36. 68. Statistical Analysis of marketing efforts
    37. 69. Statistical Analysis of marketing efforts
    38. 70. Shopper marketing data can be fed into the development and optimization of social media programs. Social media the new “starting point” for consumer engagement Traditional media informs and reminds post social dialogue Measure social media spend against loyalty card behaviors Use to develop effective shopper marketing programs SOCIAL MEDIA & PEER INFLUENCE RADIO PRINT TV OUTDOOR DIGITAL MAGAZINE MARKETING PROGRAMS
    39. 71. Ty’s Ten (WOM) Tips 1. Reasonable Price 2. Keep it Secretive 3. Surprise People 4. Limit Production 5. Avoid Large Chains 6. Simplicity 7. Personalization 8. Variety 9. Retirements 10. Risk
    40. 72. Thank You About.me/davebalter

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