Suddenly Jeffrey G. Molander Molander & Associates Inc. [email_address] Social

Jeffrey G. Molander

Molander & Associates Inc.

[email_address]

What Should Concern You Pre-crisis focus Short-term revenue: Advertising Reliance on old (media) model for wealth Social engineering posing as innovation Search & affiliate marketing Spam, adware -- the stuff that REALLY works Endorsed & supported by marketers who could afford it!

Pre-crisis focus

Short-term revenue: Advertising

Reliance on old (media) model for wealth

Social engineering posing as innovation

Search & affiliate marketing

Spam, adware -- the stuff that REALLY works

Endorsed & supported by marketers who could afford it!

The Opportunities Kill advertising as we know it & make something better!

Kill advertising as we know it & make something better!

The Opportunities Doc Searls Co-author, The Cluetrain Manifesto Fellow at Harvard’s Berkman Center for Internet & Society “ Advertising is about supply finding and ‘creating’ demand. [There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”

Content + Community “Crowdsourcing”

$30,000,000 (2007)

“ It was never about the computers. It was never about the applications. It was never about the sales channels. The Internet was always about the people, which is why email, IM, multi-player gaming and similar developments have always been the ‘killer apps’ of the social Web.” Brian Clark GMD Studios

Content Marketing “ To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see … With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains .” Greg Verdino Crayon

“ To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see …

With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains .”

Look Familiar?

Look Familiar?

Look Threatening?

Fundamentals

Elements of the Social Web Websites (text) Blogging Social networks (biz and personal) Bookmarking (del.icio.us Ma.gnolia StumbleUpon) Multi-Media Video (amateur & pro, social networks, etc.) Audio & podcasting

Websites (text)

Blogging

Social networks (biz and personal)

Bookmarking (del.icio.us Ma.gnolia StumbleUpon)

Multi-Media

Video (amateur & pro, social networks, etc.)

Audio & podcasting

Elements of the Social Web Mobile Opportunity is clear: 2.5 billion mobile phones Less than 2/10ths of a percent of the total advertising spent worldwide Source: Informa Telecoms & Media 2007

Mobile

Opportunity is clear: 2.5 billion mobile phones

Less than 2/10ths of a percent of the total advertising spent worldwide

Source: Informa Telecoms & Media 2007

Collaborative Shopping Working Collaborative Narcissism “ Lifestreaming” & Micro-blogging Multi-dimensional (mobile+Web) Elements of the Social Web

Collaborative

Shopping

Working

Collaborative Narcissism

“ Lifestreaming” & Micro-blogging

Multi-dimensional (mobile+Web)

Elements of the Social Web R.S.S.

Elements of the Social Web Websites Multi-Media Collaborative Shopping Working Socializing Tech: RSS, Widgets, Java, Ajax

Websites

Multi-Media

Collaborative

Shopping

Working

Socializing

Tech: RSS, Widgets, Java, Ajax

Experiential!

What’s Changing? (really)

The New Reality Dr. David Weinberger Author, Speaker, Academic Marketers: “There is no market for your message.”

Social ‘Currency’

Social ‘Currency’ An alternate ‘Currency’ for the Web Consumer skepticism Trust & authenticity Word-of-mouth recommendations Influence Challenges How to be trusted? Authenticity requires transparency! What are the tactics?

An alternate ‘Currency’ for the Web

Consumer skepticism

Trust & authenticity

Word-of-mouth recommendations

Influence

Challenges

How to be trusted?

Authenticity requires transparency!

What are the tactics?

Trust as Currency Source: Nielsen 2007 26,486 internet users in 47 different countries

Trust

TIME

Consumers’ Time Online Source: Online Publishers Association (Internet activity Index, January 2008) “ Content ” 43 % “ Communications” 28.7 % “ Commerce” 16.1 % “ Community ” 7.5 % “ Search” 5.0 %

“ Content ” 43 %

“ Communications” 28.7 %

“ Commerce” 16.1 %

“ Community ” 7.5 %

“ Search” 5.0 %

Content & Community Sites: Commercial Intent Source: Online Publishers Association (Internet activity Index, January 2008) “ Content” + Community = 51 % Comparing Researching Gathering & sharing opinions

“ Content” + Community = 51 %

Comparing

Researching

Gathering & sharing opinions

Prime Time is ANYtime

Sling is THE Thing

New York – Philadelphia Train

Address Change Publish! Customers Don’t want to be “sold to” and distrust Distracted (discovering, communicating) Consuming & creating content ON THEIR SCHEDULE

Customers

Don’t want to be “sold to” and distrust

Distracted (discovering, communicating)

Consuming & creating content ON THEIR SCHEDULE

How to Publish & Drive Sales (getting invited to the party)

“ You are interrupting their life. All advertising is unwanted. So if you’re going to crash the party bring some Champagne with you.” Bob Thacker OfficeMax Inc.

Goals Where to Party Making Champagne Who to Invite Risk Management

Where to Party

Making Champagne

Who to Invite

Risk Management

Where?

Exclusive Sponsorship

The Party!

Who’s at the Party?

Evangelists “ Bringing the good news" Influencing…

Story Telling “Passionistas” 43% spend 12 hours+ per week visiting sites related to their obsession 50% of consumers will consider buying if it’s associated with their passion 70% are making purchases based on experiences Source: MediaVest, Yahoo and Conifer Research 2008 Allows them to feel different or better about themselves

43% spend 12 hours+ per week visiting sites related to their obsession

50% of consumers will consider buying if it’s associated with their passion

70% are making purchases based on experiences

What are they Doing at the Party? CONTROLLING & EXPERIENCING Discovering Meeting Trading (barter, auctions, buying) Borrowing, cheating and stealing Sharing stories Creating!

CONTROLLING & EXPERIENCING

Discovering

Meeting

Trading (barter, auctions, buying)

Borrowing, cheating and stealing

Sharing stories

Creating!

(using the Social Web)

Party Planning Making Champagne

3 Types of Story Telling Participants Bradley Horowitz Yahoo!

Tools of Production are Affordable Accessible

Rise of The ProSumer Anyone with a… Can be a… Publisher Photo Journalist Radio Host Author

Rise of Story Curators & Filters

The Business Goal of Social Web Companies Make EVERYONE a creator! 100% - creators 100% - synthesizers 100% - consumers Try to make it EASIER for everyone to participate in all roles.

YOUR Goal Make everyone an EVANGELIST On your turf

Party Planning Customer Reviews & Word of Mouth

The Recommendation Age Customer-Generated Reviews & Recommendations

Why? Authentic Trust is Implicit Authoritative *Reputation-based

The Winner Is…

Runner Up…

Where to Apply Product Pages (descriptions) Product Pages (catalogs)

Where to Listen “ Fan Mail” Product Reviews Contests Product Designs Suggestions Community Sites Enthusiast Commercials or Mock Commercials

Recommendations Source: Keller Fay Group 2008 Americans have 3.5 billion brand-related conversations per day 80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship

Americans have 3.5 billion brand-related conversations per day

80% trust recommendations (STORIES) from friends, family and “trusted” sources over any form of advertising

The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship

Do Product Reviews Have Impact? Source: The eTail Group 2008

Web-Video-Print Story Telling Integration

The Risks

Threats to Brands Customer Complaints (Damage Control) No barrier to entry No truth / validity filter Exposure = credibility Monitor Watchdog Sites (ripoffreport.com) Web Communities Custom Sites (wakeupwalmart.com) YouTube

Customer Complaints (Damage Control)

No barrier to entry

No truth / validity filter

Exposure = credibility

Monitor

Watchdog Sites (ripoffreport.com)

Web Communities

Custom Sites (wakeupwalmart.com)

YouTube

WHO You Invite Matters

“ It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].” John Lazarchic Petco

Designing Experiences

Source: "Passionistas: The New Empowered Consumer" Conference September 2007 Edwind Wong Dir. Customer Insights Yahoo! "It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”

Source: "Passionistas: The New Empowered Consumer"

Conference September 2007

$30,000,000 (2007)

Secret Sauce of “Crowdsourcing?”

Emotions! Suppliers (who are customers) Approval of community Financial rewards Community Participatory Cause-minded Cool-minded

Suppliers (who are customers)

Approval of community

Financial rewards

Community

Participatory

Cause-minded

Cool-minded

Crowdsourcing!

Building a Roadmap

Jeff’s Golden Rules… Identify the right micro-verticals where consumers engage deeply Activate new or existing consumer communities that welcome advertiser participation Make the ‘network effect’ work for you through syndication & aggregation Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption

Identify the right micro-verticals where consumers engage deeply

Activate new or existing consumer communities that welcome advertiser participation

Make the ‘network effect’ work for you through syndication & aggregation

Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption

Case Studies Best Practices

Best Practice: Marketers as Publishers

It’s SOCIAL!

The Opportunity $250,000 $100,000 Revenues 6 10 Cost per order 2,500 1,000 Customers 2.50% 10% Conversion rate 15,000 10,000 Total cost 0.15 1 Cost per e-mail 100,000 10,000 List size Un-Qualified Qualified

“ Editorial bribes” 3 per month Targeted by gender Click to long form content Prone to sharing Blatant Call to Action 1 Campaign/mo (with 3 f/u’s) The Secret

“ Editorial bribes”

3 per month

Targeted by gender

Click to long form content

Prone to sharing

Blatant Call to Action

1 Campaign/mo (with 3 f/u’s)

Editorial Bribes Keep ‘em Involved (and Campaigns Sell )

Take Home Trust your instincts and act boldly Stop all tactical activities that don’t have a hope of nailing a STRATEGIC objective Create authentic, honest relationships w/ customers and give them choice Be fearless, experimental Build trust-centric models that INFLUENCE and PROMPT behaviors Embrace long-term thinking and METRICS!

Trust your instincts and act boldly

Stop all tactical activities that don’t have a hope of nailing a STRATEGIC objective

Create authentic, honest relationships w/ customers and give them choice

Be fearless, experimental

Build trust-centric models that INFLUENCE and PROMPT behaviors

Embrace long-term thinking and METRICS!

Resources People Joe Pulizzi Junta42.com Dave Chaffey (davechaffey.com) Chris Kenton (chriskenton.com) Ben Edelman (benedelman.org) Books Branding Only Works on Cattle ( Jonathan Salem Baskin) Open Brands (Kelly Mooney) Convergence Culture (Henry Jenkins, MIT) The Big Switch (Nick Carr) Cluetrain Manifesto , 1999 (Searls, Locke, Weinberger)

People

Joe Pulizzi Junta42.com

Dave Chaffey (davechaffey.com)

Chris Kenton (chriskenton.com)

Ben Edelman (benedelman.org)

Books

Branding Only Works on Cattle ( Jonathan Salem Baskin)

Open Brands (Kelly Mooney)

Convergence Culture (Henry Jenkins, MIT)

The Big Switch (Nick Carr)

Cluetrain Manifesto , 1999 (Searls, Locke, Weinberger)

Resources Blogs MarketingVox (Digital Media News Filter) Avinash Kaushik (Analytics) APML.org (Attention Economy) Adotas.com and ClickZ (Ad Industry News) SEOBook.com (Search & Digital Economy) ThoughtShapers.com (Leading eBiz Minds) Web Analytics Association (webanalyticsassociation.org)

Blogs

MarketingVox (Digital Media News Filter)

Avinash Kaushik (Analytics)

APML.org (Attention Economy)

Adotas.com and ClickZ (Ad Industry News)

SEOBook.com (Search & Digital Economy)

ThoughtShapers.com (Leading eBiz Minds)

Web Analytics Association (webanalyticsassociation.org)

Jeff Molander [email_address] Blog: JeffMolander.com Slides at JeffMolander.com/luc

Jeff Molander

[email_address]

Blog:

JeffMolander.com

Slides at

JeffMolander.com/luc