Ron social media the new direct marketing - 3 march 2011 -- final.ppt


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During dmaDetroit's 15th Annual AIMS event, Ron Jacobs, President of Jacobs and Clevenger presented on: "Is Social Media the new Direct Marketing"
This is his presentation.

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Ron social media the new direct marketing - 3 march 2011 -- final.ppt

  1. 1. Ron JacobsPresident, Jacobs & ClevengerCo-Author, Successful Direct Marketing MethodsSponsor, Ron Jacobs & Bob Stone Multichannel Marketing Communications Certificate Program, DePaul University
  2. 2. Is Social Media Marketing the New Direct Marketing? Email? data? direct search? web? mail? A Presentation for Ron Jacobs ronjacobs@jacobsclevenger.comCopyright 2011 Jacobs & Clevenger
  3. 3. Agenda• The need to redefine Direct Marketing – Direct Marketing is Interactive, Interactive Marketing is Direct (Stan Rapp)• How Direct Marketing and Social Media Marketing overlap• How Social Media Marketing is creating data• The importance of establishing Key Performance Indicators• Explore attribution models for multichannel marketing communications 2011 Jacobs & Clevenger
  4. 4. Direct Marketing How do you define it?Copyright 2011 Jacobs & Clevenger
  5. 5. Direct marketing is a form of advertising that reaches its audience without using traditionalformal channels of advertising, such as TV, newspapers or radio. Businesses communicatestraight to the consumer with advertising techniques such as fliers, catalogue distribution,promotional letters, and street advertising.Direct Advertising is a sub-discipline and type of marketing. There are two main definitionalcharacteristics which distinguish it from other types of marketing. The first is that it sends itsmessage directly to consumers, without the use of intervening commercial communicationmedia. The second characteristic is the core principle of successful Advertising driving a specific"call to action." This aspect of direct marketing involves an emphasis on trackable, measurable,positive responses from consumers (known simply as "response" in the industry) regardless ofmedium.If the advertisement asks the prospect to take a specific action, for instance call a free phonenumber or visit a Web site, then the effort is considered to be direct response advertising.Direct marketing is predominantly used by small to medium-size enterprises with limitedadvertising budgets that do not have a well-recognized brand message. A well-executed directadvertising campaign can offer a positive return on investment as the message is not hiddenwith overcomplicated branding. Instead, direct advertising is straight to the point; offers aproduct, service, or event; and explains how to get the offered product, service, or event. Copyright 2011 Jacobs & Clevenger
  6. 6. Most definitions of Direct Marketing don’t reflectcontemporary usage • Ron J.’s definition – Interactive use of advertising media, to stimulate an (immediate) behavior modification, in such a way that this behavior can be tracked recorded and analyzed, then stored in a database for future retrieval and use • Larry Kimmel’s definition (Pres. DMA) – The channel agnostic approach to driving maximum customer satisfaction and optimal marketplace results • DMA’s definition – An organized and planned system of contacts – Using a variety of media – Seeking to produce a lead or an order – Developing and maintaining a database – Measurable in cost and results – Expandable with confidence Copyright 2011 Jacobs & Clevenger
  7. 7. Bob Stone didn’t try to define Direct Marketing, somuch as describe what it doesCopyright 2011 Jacobs & Clevenger
  8. 8. We can agree on many aspects of what DirectMarketing should do • Use of (multiple) channels for communication and response • Segment customers by demographics, psychographics, behavior, etc. • Individually addressable communications – Focused content, discrete offers, calls to action • Relevant interactions – Response, conversion, leads, etc. • Create sustainable relationships – Beyond likes, fans, friends and followers • Capture, analyze and use data • Measureable and scalable resultsCopyright 2011 Jacobs & Clevenger
  9. 9. So, how is Social Media Marketing different thanDirect? Direct Marketing Social Media Marketing • Customers and prospects are • Multiple, individual voices targeted that choose to engage • Communications are • Conversational tone controlled – Not controlled by the brand • Single, outbound voice • Transparent & searchable – Across all touchpoints – Users choose touchpoints • Reflects the personality of • Unique to the personality of the brand prospects & customers • Meets business objectives • Meets business objectives • Measurable & accountable • Measureable & accountableCopyright 2011 Jacobs & Clevenger
  10. 10. New thinking, a new lexicon. Not campaigns… curationNot ads… dialogues. Not awareness & interest… behavior. Relevance Engagement Experience Collaboration Consumer Sentiment Reputation Like, Friend Curation Behavior Emotion Immersion Brand Authenticity Transparency Agility Accountability Copyright 2011 Jacobs & Clevenger
  11. 11. Curation enables consumers to become collaborators 11Copyright 2011 Jacobs & Clevenger
  12. 12. Media Vs Channels It’s about effectiveness, not efficiencyCopyright 2011 Jacobs & Clevenger
  13. 13. Channels work together, but play their own roles Paid • A catalyst to drive engagement • No longer the foundation of Media communications, but not dead nor dying Owned • Channel controlled by a brand • Takes time to scale, but extends a brand’s Media presence & relationships Earned • Customers become the channel • Builds Word of Mouth, often the result of Media coordinated owned & paid mediaCopyright 2011 Jacobs & Clevenger
  14. 14. Paid MediaCopyright 2011 Jacobs & Clevenger
  15. 15. Crispin Porter + Bogusky’s Social Home PageCopyright 2011 Jacobs & Clevenger
  16. 16. Owned Media … A Brand ChannelCopyright 2011 Jacobs & Clevenger
  17. 17. Kogi BBQ… Twitter for traffic building and CRMCopyright 2011 Jacobs & Clevenger
  18. 18. Kogi BBQ… Twitter for traffic building and CRMCopyright 2011 Jacobs & Clevenger
  19. 19. Earned Media… Angie’s ListCopyright 2011 Jacobs & Clevenger
  20. 20. Earned Media… Angie’s ListCopyright 2011 Jacobs & Clevenger
  21. 21. Marketers (and Agencies) need to show accountability& effectiveness, not just measurement • Everything has a Key Performance Indicator (KPI), but cross- channel activity makes measurement and attribution harder – Relevance • How marketing adds value to the business – Alignment • Proof that marketing is focused on the success of the business, not the size of its budget – Rigor • A fact-based, disciplined approach to strategy and execution • Without the above, Marketing gets The ROI Question – This is Finance’s way of asking “Can Marketing be trusted to spend the company’s money wisely?”Copyright 2011 Jacobs & Clevenger
  22. 22. Key Performance Indicators (KPIs) can help measureeverything 1. Business contribution: Channel reach, revenue contribution (direct and indirect), 1. Business Return On Investment (or ROMI), category penetration, costs •KPIs distill contribution and profitability. analytics 2. Marketing outcomes: data into Customers, leads, sales, service contacts, conversion, retention, relevant 2. Marketing winback and response efficiencies. Acquisition cost, Avg. order, information Avg. profit, Lifetime Value. outcomes 3. Customer satisfaction: •Exclusive Usability, performance/availability, recommendation behavior. to each Opinions, attitudes, reasons for defection, brand impact and 3. Customer churn. satisfaction business 4. Customer behavior : Profiles, customer orientation (segmentation), usability, • Specific clickstream and site actions. Bounce rates, conversions, page 4. Customer views, depth, page & site duration, RFM and transaction behavior •Valuable behavior. 5. Channel promotion: •Actionable Attraction efficiency. Referrer efficiency, cost of acquisition and reach. CPM Vs CPC. Search engine visibility and link building. 5. Channel Unique visitors, frequency, e-mail marketing results. Channel promotion •Focus on integration. the 3 – 5 6. Social media: most Engagement (e.g. # of comments); involvement (e.g. time 6. Social significant spent); bounce rate; # of reads, comments, & posts; brand Media metrics affection/aversion; conversions; mention of brand name; advocacy; viral activity; referrals; recommendations; multiple moving averages; etc.Copyright 2011 Jacobs & Clevenger
  23. 23. Marketing Dashboards. The visual display of metrics. Marketing Dashboards graphically display KPI’s in main categories – Brand – Product – Customer – Channels – Efficiency – Organizational Development – Macro- economic EnvironmentCopyright 2011 Jacobs & Clevenger
  24. 24. Social Media It’s already being by brands to optimize marketingCopyright 2011 Jacobs & Clevenger
  25. 25. Businesses are taking social marketing seriously • The number of photos archived on as of June 2009 – 13.6 Billion • The amount of content (Links, news, posts, notes, photos, etc. shared on FaceBook weekly – 3.5 Billion • The number of minutes spent on FaceBook daily – 16 Billon • If FaceBook were a country – It would be the 3rd most populated in the world, behind China & India • The number of Articles on Wikipedia – 16 MillionCopyright 2011 Jacobs & Clevenger
  26. 26. Businesses are taking social marketing seriously • The amount of video uploaded to YouTube every minute – 24 hours • The amount of time it would take to view every video on YouTube – 1,750 Years • The number of YouTube videos viewed per day – 2 Billion • The average number of tweets on every day – 65 MillionCopyright 2011 Jacobs & Clevenger
  27. 27. The Social Graph… Conversations are occurring aroundevery category, brand, and the entire buying process • Where are conversations taking place? • Who are the influencers driving them? • What is being talked about? (e.g. Keywords) • Is the Sentiment positive or negative? • Are Keywords be used in dialogues, topics, headlines, copy?Copyright 2011 Jacobs & Clevenger
  28. 28. Online data begins to unlock the riddle of prospects &customers • Social monitoring merges with Web analytics – Alterian, Omniture, Coremetrics/IBM, Webtrends • Technology like Hadoop makes it easy for companies to tap unlimited data – E.g. New York Times making its archives public – Twitter archived by Library of Congress – Facebook Cassandra, Amazon Dynamo, Google BigTable • Dashboards and data visualization tools make it easy to understand • Balancing privacy and personalizationCopyright 2011 Jacobs & Clevenger
  29. 29. Combining social/online data and offline data is akey to micro-targeting Offline Data Social Graph •Income •Targeting friends •Presence of children Micro-Targeting •Extending reach •Targeted lists of people forSocial Data •Social Affinity •Home Ownership postal and/or email programs •Purchase Behavior•Social Site Affiliation •Serve display media to only •Lifestyles people you want•Interests and brand affinities •Much more •Use customer insight to tailor•Occupation messaging and media plan•Education•Location•Reviews 29 Copyright 2011 Jacobs & Clevenger
  30. 30. Facebook is creating and capturing large amounts ofdata Facebook has 500 50% of active Average user million active users users log on every creates 90 pieces of day content monthly 550,000 Facebook applications 70% of users engage with appsCopyright 2011 Jacobs & Clevenger
  31. 31. Google’s data mining benefits their advertisers Google has 145 million 79 million US Google data mines all unique US visitors Gmail Accounts search and Gmail as a 1 billion searches daily resource for advertisers 96% of Googles profit is the result of ad revenueCopyright 2011 Jacobs & Clevenger
  32. 32. Rapleaf, data mining the social space Rapleaf Data Mines Quick Facts • Who – demographics • Data on 900+ million records • Where – footprint online • 400+ million consumers • What – affinities, interests • 60+ billion friend connections • With Whom – friend connections Rapleaf Process Inputs: Social Returns: In the form: Searches: Used for: • Emails • Social network • Aggregate report • Targeting, • Name and memberships • Individual data segmentation Address • Demographics appends • Identifying • Facebook Fan • Occupation • Instant API influencers page • Social graph • Optimizing • Twitter • Influence resources followers • And 35+ more • And more • Social CRM32 sitesCopyright 2011 Jacobs & Clevenger
  33. 33. Marketers can target ads based on social datatodayTarget:-Existing fans/followers-Friends of current fans/followers-Existing & prospective customers YOUR AD-Friends of prospects HERE-Fans/followers of competitors-Custom created segments-Leverage metadata to facilitate sharing YOUR AD HERE 33Copyright 2011 Jacobs & Clevenger
  34. 34. Bringing Social Media Marketing to life Alterian Buzz BowlCopyright 2011 Jacobs & Clevenger
  35. 35. Alterian’s Social Engagement Index 2011 Super Bowl TV Copyright 2011 Jacobs & Clevenger
  36. 36. Alterian’sSocialSentimentEngagementIndex2011Super BowlTV Copyright 2011 Jacobs & Clevenger
  37. 37. How much is a tweet, a fan or a follower worth?Cost Per Social ImpressionCopyright 2011 Jacobs & Clevenger
  38. 38. Ads effect Mobile as well, which is growing fasterthan predicted • Mobile searches related to Chrysler, a Super Bowl advertiser, were 102 times higher after the ad was televised – Desktop searches for Chrysler increased only 48 times • For, another Super Bowl advertiser, mobile searches for the brand were 315 times higher than usual – Desktop searches were only 38 times higher • There are 200 million plus YouTube mobile playbacks per day • 78% of smartphone users shop on their deviceCopyright 2011 Jacobs & Clevenger
  39. 39. Conclusions • Direct Marketing, like all marketing, is effected by social media marketing • Social Media Marketing is creating even more marketing data • To prove marketing effectiveness, use a few KPI’s aligned with organizational goals, which have indisputable rigor • Customer engagement is attributable to customer experience – Relevancy is both earned and bought – It’s not Push or Pull… It’s Push and Pull!!! • “If you don’t like change, you’re going to like irrelevance even less.”Copyright 2011 Jacobs & Clevenger
  40. 40. Questions & Answers Questions?Copyright 2011 Jacobs & Clevenger
  41. 41. ronjacobs@jacobsclevenger.comCopyright 2011 Jacobs & Clevenger