Social Media and Marketing
The changing paradigm
Wait a minute…..
I learned how to use Windows, eMail and the Web. Then I had to learn
how to use my PDA, which I still can’t get to work right, now I have to
learn about social media ?
Well there’s a lot of buzz around
social media lately but…
It’s less important to older Web users who have a lot
of disposable income.
And older Web users are less
likely to use social media
Millennials Gen‐X Boomers Matures Total
(13‐24) (25‐41) (42‐60) (61‐75)
Socializing via social network 78% 60% 38% 23% 54%
sites, chat rooms or message
Maintaining a proﬁle on a social 71% 51% 30% 10% 45%
ParEcipaEng in virtual worlds 21% 36% 35% 10% 2%
There is a direct correlaEon between social media use and age: older Web users are
sEll learning about social media and are slower to adopt new technology
Younger people, however, tend to be more wired and use social media on a variety
of devices including PDA’s like the iPhone
Source: eMarketer, n=2,081 January 2008
Yet strong growth in social
media is forecasted
With penetration of social media so high in
younger age groups most of the growth will
come from older web users who are not as
fast to adopt new technology
but media executives still believe
social media is overhyped
In the Fortune 300 today, only 15
percent of CEOs are below 50. Maybe
they don’t understand the importance
of social media and marketing.
And spending on social
media is anemic
US Online Social Network Ad Spending, 2006‐1012 (millions
and % of total US online ad spending
2006 2007 2008 2009 2010 2011 2012
Social network ad $350 $920 $1430 $1815 $2085 $2360 $2610
TOTAL ONLINE SPEND $16,900 $21,100 $25,900 $30,000 $35,000 $41,000 $51,000
% Social Network of 2.1% 4.4% 5.5% 6.0% 6.0% 5.8% 5.1%
If it is a marketers job to “go where the eyeballs are” then spending
on social media is anemic
Larger organizations are also
having a hard time changing
Social Media TacMcs Used by US Marketers
Small and Large Companies
RSS Feed Blogs Social
Small Comp Large Comp
But marketers have to
communicate that marketing
• Markets are no longer bulls-eye, demographics based islands, easily targeted.
Every market (and anyone offering anything online has a market), is composed of
dynamic humans involved in instantaneous dialogue a million times over. Shift your
mindset by opening up your market research to data that is not just statistical, but
logical and intuitive. Behaviors and connections are the important things now.
• Marketing is no longer controlled by companies, it’s controlled by the market, as a
whole, and everyone in it, simultaneously. Your market is no longer accepting the
same pitch, delivered in the same manner. It’s about two-way conversation,
connecting at a deeper level than your value proposition. Understand that it’s now
on your markets’ terms when, how, and why you communicate with them.
• Participating in a conversation is not the same as “hyped-up-copy,” stop insulting
your market. Realize this - indirect communication, over-communicating, scarcity
tactics, and flat out hyping things up - no longer work.
• How you measure success and failure has changed dramatically. Changes this
large, create a need to re-evaluate how you measure and track, how you
measure success, and even how you compile information.
• The old mindsets regarding metrics and analytics as applied to ROI have to be
adjusted or you’ll never make good marketing decisions. Time to measure
qualitative brand attributes not quantitative.
And they have to do a better
job with Web analytics
There is no one metric that can give you the informaEon you need on your
customers but together a number of metric soluEons can give you a wealth of
informaEon as to what, when and more importantly why.
Because most senior managers
don’t understand Web metrics
• The top line measurement of Web analytics should always
be against business objectives, however all business
objectives are not quantifiable when you’re using social
media as a key brand touch point.
• How do you measure a positive customer experience in a
social media site? What can happen if a customer relates
a negative brand or company experience on social
• Web dashboards have to have more than numbers, they
have to tell a story with insights and recommendations.
– For example, an example of paths through the site can give
you real insights into the purchase decision behavior of your
• Analysis on “cost per targeted actions” can also reduce
search engine marketing budgets so that you can focus on
drivers of business objectives.
Speed is a competitive
advantage on the Web
• Slow costs more. Every minute you can take out of manufacturing
time, stocking time, get-to-market time, and customer response time
saves the company money.
• Speed is the ultimate customer turn on. Everyone is short of time. We
hate delays, long lines, out-of-stocks. We love finding what we want
and getting back to work (or play) fast. And we'll pay for speed.
• Speed is the one advantage that big competition can't duplicate
easily. Big companies are bureaucratic, dysfunctional, and self-
absorbed. They don't listen, they are slow to change, and they kill
momentum and initiative.
• The Internet is all about speed; “instant gratification takes too long”
• Customers want responses in minutes, not hours or days.
• Social media is hot NOW and companies that are experimenting with
social media may be better positioned to use it for marketing as it
continues to evolve.
As marketing budgets shrink more
dollars are going to online
but the days of paying for clicks
and impressions are over
• Clicks on internet ads don’t measure all of a campaign’s sales
impact nor the cumulative (latent) impact of ads. They also don’t tell
you anything about brand building effects and the Internet ads as
we once knew them may be a relic of the past.
• It’s now about a specific action that you want your audience to take
on your Website to help meet business objectives and measuring
• Don’t use reach and frequency as applied to the Web, that is taking
old models for new media and doesn’t work.
• Move from selling online to having a conversation online around the
• If you continue to ignore conversations with your audience you
better have damn great products and brand equity.
So are CMO’s dumb
or waiting for proven ROI ?
• Despite the cultural phenomenon that Facebook and MySpace have become in
five years’ time, 55% of the chief marketing officers at leading brands surveyed by
Epsilon said they’re not too interested (22%), or not interested at all (33%), in
incorporating the social networking sites into their marketing strategies.
• CMOs bracing for budget reductions identified email as the channel they are least
likely to cut back on versus any other tool in the traditional or digital marketing mix.
• While just over half of the companies surveyed already use consumer data mining,
23% more said that they plan to utilize the technology in the next 12 months. 55% of
those not already employing web analytics plan to do so in the next 12 months.
• Customer loyalty and rewards programs remain polarizing, with 33% of companies
already using the strategy and 17% planning to use in the next year, but 50% not
using or planning to use.
Traditional marketing channels
are being hurt by social media
• More than a third -- 38% -- of all 12-to-64-year-olds online in the U.S.
indicate that they regularly use social networks. And it's not just the
younger population using them. A third of women ages 35 to 44, for
example, reported that they regularly use the sites.
• Over 25% of those using social-networking sites indicated that their TV
viewing is being cannibalized. Even if it is a small amount of time, with
the large numbers of people involved, this can add up to a lot of TV
And using traditional ads
on social media doesn’t work
• Social media sites are trying to find a model to get profitable but its users
will determine what works and what does not and click ads won’t work.
• When Facebook redesigned their site millions of users protested and
petitioned to change it back to the older interface.
So then what’s a emarketer
• First stop thinking about marketing in terms of old media (impressions,
reach, frequency). Think about the changes that have taken place
within the marketing environment.
• Communicate the changes to senior managers and influencers but lead
them down the path to come to the conclusion that the Web is where
you want your brand to be.
• Start building capabilities now to handle back end social media branding
efforts. Learn NOW from mistakes not later when it’s too late and your
competitors are already there.
• Expand Web analytics and ensure that you present insights as to what is
happening on the Web and why and what your brand can do to
capitalize on the Web and social media.
• Stop thinking that you need a company or branded Website. It takes a
lot of resources to build and maintain a branded website. Could dollars
be better spent on social media platforms?
• Learn to listen..it’s about a conversation. How would you feel if someone
tried to sell you something while you were talking to a bunch of your
Sitting on the sidelines and watching social media could hurt your brand
at at time when it’s harder and harder to win customers