Company Branding: The Reality of the Online Jungle

Confused? Don’t be. We will cover who the audience really is, what they want now, and in the future. Web 2.0 – is it really useful? Main challenges and opportunities Some practical advice

We will cover who the audience really is, what they want now, and in the future.

Web 2.0 – is it really useful?

Main challenges and opportunities

Some practical advice

User Types Three broad types are: Infophrenics Sofademics Sponges

Three broad types are:

Infophrenics

Sofademics

Sponges

So who are these people? Infophrenics Infophrenics skip from one news source to the other, with little discretion or judgment applied. Complete lack of brand loyalty, the only thing of value for them is information, regardless of source Will make purchase based on what is a best fit for them, yet actively avoid promotions Think of them as “data junkies,” getting their daily fix from their favorite web sites

Infophrenics

Infophrenics skip from one news source to the other, with little discretion or judgment applied.

Complete lack of brand loyalty, the only thing of value for them is information, regardless of source

Will make purchase based on what is a best fit for them, yet actively avoid promotions

Think of them as “data junkies,” getting their daily fix from their favorite web sites

So who are these people? Sofademics Have a very high awareness of and contribution to discussions of popular culture. Think the MTV generation but “grown up.” Engage in multiple discourses regarding current affairs, with an avoidance of elitism and general lack of thought. Tend to only discuss issues in their own social circle

Sofademics

Have a very high awareness of and contribution to discussions of popular culture. Think the MTV generation but “grown up.”

Engage in multiple discourses regarding current affairs, with an avoidance of elitism and general lack of thought.

Tend to only discuss issues in their own social circle

So who are these people? Sponges Readily absorb information, yet do not contribute to discussion (whether User Generated content or otherwise) Do not engage in multiple discourses, yet in certain situations where they feel comfortable (outside digital channel) can potentially be brand advocates “ The invisible, silent majority”

Sponges

Readily absorb information, yet do not contribute to discussion (whether User Generated content or otherwise)

Do not engage in multiple discourses, yet in certain situations where they feel comfortable (outside digital channel) can potentially be brand advocates

“ The invisible, silent majority”

Key differences Infophrenics – contribute content and discussion anywhere, anytime, often with little depth. Brand agnostic, brand loyalty is rare. Bias towards news sites. Value based decisions. Male skew. Sofademics – contribute content and discussion online among their acquaintances, and encourage feedback. Bias towards popular culture sites. Lifestyle based decisions. Female skew. Sponges – do not contribute content, but observe and are strong influencers within their circle, but outside the digital channel. High level of brand loyalty. No site bias. Make decisions based on “common sense.”

Infophrenics – contribute content and discussion anywhere, anytime, often with little depth. Brand agnostic, brand loyalty is rare. Bias towards news sites. Value based decisions. Male skew.

Sofademics – contribute content and discussion online among their acquaintances, and encourage feedback. Bias towards popular culture sites. Lifestyle based decisions. Female skew.

Sponges – do not contribute content, but observe and are strong influencers within their circle, but outside the digital channel. High level of brand loyalty. No site bias. Make decisions based on “common sense.”

Time to smell the roses Companies are struggling to extend reach of their employment pool because they do not realize that the majority of potential employees have NO INTEREST in creating their own blogs, or engaging in blog conversation, or mashing up a video, or uploading a photo of themselves unless it is a very specific interest (which is why communities work)

Companies are struggling to extend reach of their employment pool because they do not realize that the majority of potential employees have

NO INTEREST

in creating their own blogs, or engaging in blog conversation, or mashing up a video, or uploading a photo of themselves unless it is a very specific interest (which is why communities work)

The Reach problem is obvious Infophrenics and Sofademics are the most vocal so we tend to lump all web “users” as these, instead of trying to talk to the Sponges that make up the largest pool of talent This is why most companies find they keep on talking to the same talent pool online. Start using different bait.

Infophrenics and Sofademics are the most vocal so we tend to lump all web “users” as these, instead of trying to talk to the Sponges that make up the largest pool of talent

This is why most companies find they keep on talking to the same talent pool online. Start using different bait.

But hold on, what about Web 2.0? Social networking is popular, but the engagement level is broad, not deep. The fact that people have migrated so easily from MySpace to Facebook is further indication that Infophrenics and Sofademics have an altered perception of brand value, yet again we ignore the potential Sponge advocates! Advertising your company on a social network can extend reach, but as soon as you create something of use, like an application, suddenly you are able to interact with the Sponges who would prefer to utilize not hypothesize

Social networking is popular, but the engagement level is broad, not deep.

The fact that people have migrated so easily from MySpace to Facebook is further indication that Infophrenics and Sofademics have an altered perception of brand value, yet again we ignore the potential Sponge advocates!

Advertising your company on a social network can extend reach, but as soon as you create something of use, like an application, suddenly you are able to interact with the Sponges who would prefer to utilize not hypothesize

Extending the Reach Companies have no choice but to throw away the mass communications models, but at the same time you should not demand the level of online participation that is the current trend (build your own, brand your own, do your own). “ Successful companies will encourage not demand engagement. Think of it as being in a de-facto relationship with consumers – they know that they can always move out and keep the TV”

Companies have no choice but to throw away the mass communications models, but at the same time you should not demand the level of online participation that is the current trend (build your own, brand your own, do your own).

“ Successful companies will encourage not demand engagement. Think of it as being in a de-facto relationship with consumers – they know that they can always move out and keep the TV”

So what are we supposed to do? Encourage invisible information consumption i.e. don’t ask potential employees to always contribute to the dialog, let them interact with your company in invisible ways. There is nothing wrong with just asking people to interact with your website without having to contribute content!

Encourage invisible information consumption i.e. don’t ask potential employees to always contribute to the dialog, let them interact with your company in invisible ways. There is nothing wrong with just asking people to interact with your website without having to contribute content!

So what are we supposed to do? Push information to potential brand advocates and employees Widgets are an effective way to convey your message to potential candidates, clients and suppliers, especially the sponges who tend not to want to have to look for information by going outside their normal social circle.

Push information to potential brand advocates and employees

Widgets are an effective way to convey your message to potential candidates, clients and suppliers, especially the sponges who tend not to want to have to look for information by going outside their normal social circle.

So what are we supposed to do? Personalize the content, not the platform Having a message personalized to your audience is far more effective that massaging your content to fit different platforms like MySpace, mobile etc. We are too focused on the medium not the message.

Personalize the content, not the platform

Having a message personalized to your audience is far more effective that massaging your content to fit different platforms like MySpace, mobile etc.

We are too focused on the medium not the message.

So what are we supposed to do? Silence can be golden The silent majority, the sponges, absorb what you have to say but they can only take so much. There is no need for a weekly communication, instead they will value less, more relevant information

Silence can be golden

The silent majority, the sponges, absorb what you have to say but they can only take so much. There is no need for a weekly communication, instead they will value less, more relevant information

So what are we supposed to do? 3 rd party endorsement is vital LinkedIn works because it utilizes the principle of the circle of trust. If someone else online says positive thinks about your brand, it is far more powerful than self promotion

3 rd party endorsement is vital

LinkedIn works because it utilizes the principle of the circle of trust. If someone else online says positive thinks about your brand, it is far more powerful than self promotion

In 5 years time . . . Infophrenics will be even more manic, spending less time on even more sites, contributing more content but of poorer and poorer quality, and the value of your “brand” to them will approach zero.

Infophrenics

will be even more manic, spending less time on even more sites, contributing more content but of poorer and poorer quality, and the value of your “brand” to them will approach zero.

In 5 years time . . . Sofademics will have an even greater popular culture IQ, leading them to be highly regarded influencers but in a declining social circle. They will not increase the number of sites they visit, but they will demand more tailored communications. Their numbers will grow.

Sofademics

will have an even greater popular culture IQ, leading them to be highly regarded influencers but in a declining social circle.

They will not increase the number of sites they visit, but they will demand more tailored communications. Their numbers will grow.

In 5 years time . . . Sponges will very slowly “talk back” more and more online. Their pool of knowledge will become smaller, though the depth of their knowledge will increase. Therefore brands will need to be more authentic in their communications, and be prepared to listen. When a Sponge sends a message, it is of far more significance than an utterance from one of the other online types. Bet your future on Sponges.

Sponges

will very slowly “talk back” more and more online. Their pool of knowledge will become smaller, though the depth of their knowledge will increase. Therefore brands will need to be more authentic in their communications, and be prepared to listen. When a Sponge sends a message, it is of far more significance than an utterance from one of the other online types. Bet your future on Sponges.

Summary of the main challenges we face today We are demanding interaction, not making it a choice, thus alienating the majority and creating a reach problem. We are generally using technology because we can, not because the people want it. The vocal minority has a disproportionate share of voice online, causing massive strategic skews. Even when we have the data about our talent pool, the utilization of this data is often clumsy

We are demanding interaction, not making it a choice, thus alienating the majority and creating a reach problem.

We are generally using technology because we can, not because the people want it.

The vocal minority has a disproportionate share of voice online, causing massive strategic skews.

Even when we have the data about our talent pool, the utilization of this data is often clumsy

Opportunities Most of your potential audience have not been communicated to in an engaging, personal way. If you are among the first brands to talk to them, you will have a unassailable position As a brand, there is a massive market that you have never spoken to. Companies worldwide do not need to focus on increasing the size of the addressable market, we need to focus on finding the addressable market. Digital is the best channel to engage in personalized communications, yet how many companies actually do this beyond changing the To: name in their email newsletter? Personalize or perish! Remember that not all of your audience is alike in their consumption of the digital channel.

Most of your potential audience have not been communicated to in an engaging, personal way. If you are among the first brands to talk to them, you will have a unassailable position

As a brand, there is a massive market that you have never spoken to. Companies worldwide do not need to focus on increasing the size of the addressable market, we need to focus on finding the addressable market.

Digital is the best channel to engage in personalized communications, yet how many companies actually do this beyond changing the To: name in their email newsletter? Personalize or perish!

Remember that not all of your audience is alike in their consumption of the digital channel.

Focus on Web 2.0 There is nothing “new” about 2.0 Web 2.0 provides new ways to build online communities As soon as you “corporatize” these, you lose users The basics have to be correct before you go near 2.0

There is nothing “new” about 2.0

Web 2.0 provides new ways to build online communities

As soon as you “corporatize” these, you lose users

The basics have to be correct before you go near 2.0

The Threats Voice of authority can be feigned High cost of covering all avenues Last mover disadvantage Level playing field Creative and technical limitations

Voice of authority can be feigned

High cost of covering all avenues

Last mover disadvantage

Level playing field

Creative and technical limitations

Main Mistakes Create blogs that are in fact too controlled. Lack of strategic planning “Opening of an envelope” mentality – feeling you just have to be there, when you don’t Not listening, or cutting off avenues for interaction Demand complete control

Create blogs that are in fact too controlled.

Lack of strategic planning

“Opening of an envelope” mentality – feeling you just have to be there, when you don’t

Not listening, or cutting off avenues for interaction

Demand complete control

A Successful brand will . . . recognize that the user conversation is not a linear message, but is in fact an ongoing event An event is any interaction For the first time these events are two way. Submit and Encourage

recognize that the user conversation is not a linear message, but is in fact an ongoing event

An event is any interaction

For the first time these events are two way.

Submit and Encourage

The Opportunities Disproportionate share of voice Immediate data Real time market research Third party endorsement becomes transparent

Disproportionate share of voice

Immediate data

Real time market research

Third party endorsement becomes transparent

Transforming to Take Best Advantage Focus on agility. Pare down metrics and simplify. Step back and breathe. Understand that digital isn’t quick, nor is it easy, but the rewards can greatly exceed any other channel.

Focus on agility.

Pare down metrics and simplify.

Step back and breathe.

Understand that digital isn’t quick, nor is it easy, but the rewards can greatly exceed any other channel.

The Breadth of the Digital Channel Websites and microsites SEO and SEM Online advertising Email marketing Mobile Affiliate Marketing How many of these are you using?

Websites and microsites

SEO and SEM

Online advertising

Email marketing

Mobile

Affiliate Marketing

How many of these are you using?

Practical Advice - Websites Work out what your website is for Branding, informational and HR CAN coexist, though this is often a source of friction Implement tracking! Use every opportunity to gain email addresses – people WILL PAY A PRICE Focus on positive outcomes Truth: Your results are matched by your investment (time and dollars)

Work out what your website is for

Branding, informational and HR CAN coexist, though this is often a source of friction

Implement tracking!

Use every opportunity to gain email addresses – people WILL PAY A PRICE

Focus on positive outcomes

Truth: Your results are matched by your investment (time and dollars)

Practical Advice – SEO and SEM The ideal situation is to rank highly in natural search results, but NO ONE can promise this Avoid generic terms line “management jobs” or “sales opportunities” Focus on niche markets of interest Being highly ranked for a few terms is better than average for many Truth: The best ROI is usually SEO, then SEM, the online media buying, then offline DM

The ideal situation is to rank highly in natural search results, but NO ONE can promise this

Avoid generic terms line “management jobs” or “sales opportunities”

Focus on niche markets of interest

Being highly ranked for a few terms is better than average for many

Truth: The best ROI is usually SEO, then SEM, the online media buying, then offline DM

Practical Advice – Online Advertising From experience, don’t bother with banners, towers etc unless it is a purely branding exercise If you are committing budget, allocate to the “long tail” sites. View online advertising as having the sole aim of increasing your database for future comms to consumers and potential employees rather than short term gains. Truth: The online advertising market is overpriced and cluttered at the moment

From experience, don’t bother with banners, towers etc unless it is a purely branding exercise If you are committing budget, allocate to the “long tail” sites.

View online advertising as having the sole aim of increasing your database for future comms to consumers and potential employees rather than short term gains.

Truth: The online advertising market is overpriced and cluttered at the moment

Practical Advice – Email Marketing Can be extremely positive provided it is strategic rather than reactive Use a campaign management system Have something to say! Truth: Avoid the word “newsletter” in your subject line as your email is more likely to be deleted

Can be extremely positive provided it is strategic rather than reactive

Use a campaign management system

Have something to say!

Truth: Avoid the word “newsletter” in your subject line as your email is more likely to be deleted

Areas for Improvement by Sector Finance – many digital initiatives are still transactional rather than engaging, and do not reflect the brand personality. Entertainment – usually anything but, still caught in a linear mindset. FMCG – very promotion based, opportunities lost! Automotive – most sites have the same tone, very little cut through.

Finance – many digital initiatives are still transactional rather than engaging, and do not reflect the brand personality.

Entertainment – usually anything but, still caught in a linear mindset.

FMCG – very promotion based, opportunities lost!

Automotive – most sites have the same tone, very little cut through.

Recap The image of your company on the web cannot be controlled. User mash-up brands for their own use. Values can be retained so they are clear for employees, prospects, customers and suppliers. Protectionism does not work The majority of your target market, the Sponges, won’t contribute contact, but you need to talk to them Measure success

The image of your company on the web cannot be controlled. User mash-up brands for their own use.

Values can be retained so they are clear for employees, prospects, customers and suppliers.

Protectionism does not work

The majority of your target market, the Sponges, won’t contribute contact, but you need to talk to them

Measure success

Thankyou Peter Bray at Clear Blue Day [email_address] www.clearblueday.com