Barbarians at the Gates: Social Networks a ba a s at t e Gates Soc a et o sas Disruptive Media Global Business Summit May 18, 2010 John Deighton John Deighton Harvard Business School
Kaiser Family Foundation studyKaiser Family Foundation study Children under age 18: Spend 7.5 hours a day using media. Up from 6.5 hours a day last year. In those 7.5 hours they consume 11 hours of media content, half of it social.
Obama versus Clinton: Fundraising: Q1 2007Obama versus Clinton Fundraising Q1 2007 Total Contributions from % from % from Candidate Receipts Individuals contributions of contributions of ($millions) ($millions) $1,000 or more $200 or lessClintonCli t 36.1 36 1 25.8 25 8 86% 9%Obama 25.7 25.2 68% 22%Edwards 14.0 14.0 77% 15%
Obama versus Clinton versus ClintonThey each competed by vigorously deploying social media:1. Found pockets of consumer passion.2. Linked them to pockets of producer passion.3. Employed social media to propagate the enthusiasm.
Obama versus Clinton versus Clinton Campaign launch advertising Campaign launch advertising
Obama versus Clinton versus ClintonThe difference lay in their styles.Clinton sought to propagate the power of the heir apparent.Obama was the insurgent. And the Internet favors was the insurgent. And the Internet favors underdogs It is intrinsically a guerilla medium, exploiting the rigidities of the market leader, using exploiting the rigidities of the market leader, using soft power to defeat superior resources.
Obama versus Clinton versus Clinton Obama was “uniquely unqualified.” He did not win the election because of the internet, but he could not have won without it. Garrett Graff
Obama versus Clinton versus Clinton His unique selling proposition was this: He was answering the voter s call. He was not was answering the voter’s call. He was not running a marketing campaign but responding to a voter movement. responding to a voter movement. Social media showed the movement in action. He lacked qualifications, but the movement made clear that qualifications were not being asked for. The movement legitimized the Th t l iti i d th candidate.
Manchester United and owner Malcolm Glazer versus l l lthe Green and Gold Movement
July 6, 10:00 PM the video is posted to YouTubeJuly 7, noon, United employee Robin Urbanski reads on July 7 noon United employee Robin Urbanski reads onTwitter: “psssst...@UnitedAirlines breaks guitars! And they don t even care!dont even care!” Minutes later, Urbanski calls Rob Bradford, United’s Managing Director of customer solutions, “We need to call Carroll.” The call was made but Carroll was not available until the next morning. gSo at 2:00 PM Urbanski tweets, “This has struck a chord w/ us and weve contacted him directly to make it right.”
At 1:02pm from a member of the public: “Check the@unitedairlines account. Theyve apologized andaccepted responsibility. Cool stuff.”At 2 28 2:28pm ffrom one of Cf Carroll’s t ll’ team: “ “word h it d has@UnitedAirlines isnt trying to make it right, they arejust tweeting is that way ” way...At 2:31pm from United Airlines: “The word you hear iswrong. We have called him and the person whoanswered his phone scheduled a call for tomorrowmorning.” i ”
1:46 PM Jul 7: Whyd you guys have to go and break hisgguitar? http://bit.ly/rI2ef Stop being a bully and fess p // y/ p g yup!3:40 PM Jul 7: Learn from the United Breaks Guitarssong that its NOT ok to treat any customer bad.9:50 PM Jul 7: You can say creatively that this hasstruck a chord with you but lets be real how do you y yplan on changing?9:53 PM Jul 7: You realize that Dave Carroll is one ofmany people burned by your "Airline" ~ howd youplan to make things right 4them?9:55 PM Jul 7: And since Im on a roll, shame on you , yfor taking over a year to bother.... too much truth inyour bad PR?
At 3:00pm on July 8 from Ryan Moore: “i posted a video p y f y pfor a client of mine monday night and its like the biggestvid on youtube canada now. http://bit.ly.”At 3:39pm on July 8 United Airlines replied: “Love yourclient s video.clients video Not all r as honest as he That is why he.policy asks for claims w/in 24 hours. No excuse; were ysorry.”At 4:56pm on July 8 from a Twitter member: “I love thissong about b @unitedAirlines d l Check h k it out!!http://bit.ly/8RDMI”At 5:02pm on July 8 from United Airlines: “It is excellentand that is why we would like to use it for training y gpurposes so everyone receives better service from us.”
United Breaks Guitars U it d B k G it 9Milioni 8 7 6 5 4 3 2 1 0 06‐lug 25‐ago 14‐ott 03‐dic 22‐gen 13‐mar 02‐mag
Hitler Learns United Broke his GuitarHitl L U it d B k hi G it
Danone Fi ht B k i AD Fights Back in Argentina ti
Danone Fi ht B k i AD Fights Back in Argentina tiDanone encountered viral slurs against Actimel encountered viral slurs against Actimelyoghurt brand. ‐ Emails claimed product is addictive, harms children.Danone first responded with television advertising.Later Danone built a website for visitors to make rumors about their friends and send them to their friends, followed by the message: "Dont believe everything you see on the internet. Ill show you how easy it is to spread a rumor about you."
Marketing when the communication media are socialcommunication media are social When the tools of marketing change, the strategy of the craft changes.
Marketing when the communication media are socialcommunication media are social from attrition to maneuver.
Marketing when the communication media are socialcommunication media are social from attrition to maneuver. from exploiting incumbency to deploying insurgency. to deploying insurgency
Marketing when the communication media are socialcommunication media are social from attrition to maneuver. from exploiting incumbency to deploying insurgency. to deploying insurgency from planning for value creation from planning for value creation to protecting against value destruction.
We used to use mass media to showWe used to use mass media to showthe power of incumbency ‐ Ubiquitous, omnipotent, dominant: Budweiser the King of Beers. Budweiser the King of Beers Visa – It’s Everywhere you Want to Be. Verizon We Never Stop Working for You. Verizon – We Never Stop Working for You. McDonalds – Billions and Billions Served Citi – The Whole World in One Bank
Now social media let us deploy the power of Now social media let us deploy the power ofinsurgency ‐ Like Snapple to Coke in the old world, pp , Obama to Clinton in the new. Snuggie to Slanket Dave Carroll to United Airlines
What Could United have Done Differently? Retreat Meet Beat
What Others Have Done Nestle censors its Facebook Fan page. p g North Face sues the South Butt.Retreat Toyota ignores the YouTube parodies Slanket leverages the Snuggie successMeet Danone fights fire with fireBeat Dove looks for an incumbent larger than itself. Miracle Whip – ‘Don’t be so Mayo.’
How Does the Future Look? With few exceptions, insurgency in the new media environment is hard to defeat. new media environment is hard to defeat Containment is a more prudent policy. Meanwhile today, in politics, print journalism, recorded music, book publishing, television, travel reservation services, auto retailing, education, religion, banking, and many other li i b ki d th industries, it is more fun to be an insurgent than an incumbent. insurgent th i b t