What To To Look For And Act On In 2010


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My keynote presentation from the eConsultancy Peer Summit which summarizes key digital marketing trends to look out for and act on in 2010

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What To To Look For And Act On In 2010

  1. 1. what to look for and act on in 2010
  2. 2. 2007 – 2012 Macro Trends 1 Marketing is now a conversation: Brands must know how to adapt their engagement models and tone. 2 Consumers’ attention is more distributed across ever changing digital channels and sources: Brands must learn new ways to stand out. 3 Content shelf-life is shrinking: Brands most know how to continuously stay fresh. 2
  3. 3. 2009 – 2010 Micro Trends 1 Social Media Grows up 2 Brand Humanization: Corporate and Personal Brand Confluence 3 Blurring Line Between Marketing & Servicing 3 !"
  4. 4. social media grows up #"
  5. 5. SOCIAL MEDIA GROWS UP Some Facts Between 2008 and 2009 LinkedIn grew 63% YOY (1 new member AUDIENCE every second). For the same period, Twitter grew 1,679%. In 2006 the total marketing spend on social media was $350 SPEND million. The forecast spend for 2011 is more than $2.5 billion. Dell Outlet booked more than $3mm in revenue attributable Spend SALES to it’s twitter posts. 78% of people trust what their social media network says about TRUST a product or service vs. 55% for Television. 5
  6. 6. But where is this growth coming from….?
  7. 7. SOCIAL MEDIA GROWS UP Growth Growth is coming from Demographic Diversification Proportion of adults who access social networking sites on the internet at home. 18% growth across the year Q1 2008 Q3 2008 Q1 2009 21% growth 60 50 across the year 40 30 20 10 0 15 - 24 25 - 34 35 - 54 55 - 64 65 - 74 75+ Age (years) * source ofcom 7
  8. 8. SOCIAL MEDIA GROWS UP Growth (Example) Demographic Diversification comes in forms obvious to many of us every day: GRANDMA (76 Years) Angela (34 Years) Madison (7 Years) 8
  9. 9. SOCIAL MEDIA GROWS UP Broad Distribution Growth is accelerating because content is being distributed (ie shared) more effectively then ever before Eric Tsai, “The Evolution of Media Content Distribution: Circulation 1.0 to 2.0” 9 DesignDamage.com, posted July 2nd, 2009,
  10. 10. SOCIAL MEDIA GROWS UP Broad Distribution (Examples) Many have successfully cracked the code on distributed content models… BRAND / PROPERTY IBM NEW YORK TIMES BARACK OBAMA ZAPPOS WESABE SMARTER PLANET SOCIAL MEDIA PLATFORM Kindle Blog Blog iPhone Facebook Connect Twitter Dashboard Subscriptions Platform Application 10
  11. 11. SOCIAL MEDIA GROWS UP Brands 85% of consumers look for Brands to interact with them in social media Consumer Expectations of Brands in Social Media Spaces 7% Should have social media presence, 8% interact with consumers as needed / by request 51% Should have social media presence, interact with consumers regularly 34% Can have a presence in social media, should not interact with consumers Shoud not have a social media presence * data from emarketer.com 11
  12. 12. 1 SOCIAL MEDIA GROWS UP SOCIAL MEDIA INFLUENCE: Implications A greater percentage of High Value Customers, and their spend, will be influenced through for Marketing Social Media Marketing. in 2010 2 MARKETING SPEND: The distribution of digital marketing investments will continue to shift. 3 CHANGES IN PLATFORM AUDIENCE: Tactics and Tone will change to match a more mature audience. 4 RELATIONSHIPS WITH INFLUENCERS: Relationships with influentials will become more critical to success. 5 BRAND PERCEPTION: A larger portion of a Brand’s perception scores will be influenced by its Social Media presence, or lack thereof. $%"
  13. 13. Brand Humanization: Corporate and Personal Brand Confluence $!"
  14. 14. BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE Corporate / Personal Social Media Gap Current brand voices may not be fully in synch with Web 2.0 environments such as Social Media. This presents a challenge for corporations. 14
  15. 15. BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE Why is this happening – The Connected Web “People would rather have a conversation with a person than a brand” – Scott Monty, Ford Motor Company Sites like Facebook & Twitter have changed the dynamic around customer access to in-person interaction, putting people in front of brands. 15 *photo from Scott Monty’s flickr feed
  16. 16. BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE The Connected Web – Proof Points “People will determine whether Joe (an employee) is trustworthy by what he says, what he does, […] how he talks with others, who he links to, what he links to and who he's friends with and follows.” – John Robinson, Editor and Chief of the Greensboro Record. Customers will no longer accept brands at face value. 16
  17. 17. BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE Personal Brand Costs/ Benefits (Risks and Fears) Larger brands are now creating personal sub-brands under a corporate umbrella. However, there are both opportunities and risks associated with “Employees as Brands” 1 Personal brands are a cost to the company: Why let employees build their own brand on the reputation and at the cost of the company? 2 What if the employee goes rogue? Are personal brands governable? 3 Popular employees are likely to get wooed by a competitor. After they leave a gap is left that the brand perhaps can’t fill. 17
  18. 18. BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE Personal Brand Costs/ Benefits (Opportunities) 1 Authenticity Cost: The investment hurdle to win customer trust is naturally lower for individuals than for corporations. 2 All Things to All People: It can be difficult (and costly) for one brand to achieve multi-segment relevance. Personal brands can be a good way to appeal to a new audience without alienating the core. 3 Attracting the Best of Gen Y Talent: The brightest MBAs, etc. will want to work somewhere they can spread their wings and grow. 18
  19. 19. BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE Corporate Social Media Brand Approaches @wholefoods @don_draper @jetblue @BestBuyCMO Marketing Sophistication Less More 19
  20. 20. CORPORATE AND PERSONAL BRAND CONFLUENCE Success Stories from the Right Side of the Scale Frank Eliason puts a personal face to Comcast FRANK ELIASON servicing customers through the Comcast Cares twitter feed. Scott Monty and his team put a Ford personal spin on providing advice SCOTT MONTY for car care. David Knapp at Bank of America tweets Bank of to assist customers. A large contrast America from the traditional telephone based DAVID KNAPP servicing of the past. 20
  21. 21. CORPORATE AND PERSONAL BRAND CONFLUENCE 1 Implications PROLIFERATION OF PERSONAL BRANDS: for Marketing With consumer expectations of “personal” interactions increasing, all corporations will need in 2010 to infuse “authenticity” into their marketing strategies. 2 INTENTIONAL CHOICE OF SOCIAL MEDIA BRAND MODEL: Corporations will need to make a conscious choice on which model will work best for them from a brand and risk perspective. 3 ENGAGEMENT GUIDELINES: Regardless of model, in order to create marketing and brand humanization consistency, tone of voice and guidelines for 1:1 digital interactions will need to be addressed. %$"
  22. 22. blurring line between marketing and servicing %%"
  23. 23. BLURRING LINE BETWEEN MARKETING AND SERVICING Learnings from Servicing as Marketing in the “Real” World: Word of Mouth Advocacy 1 CUSTOMER ATTENTION: As brands struggle to "engage" consumers, service is a convenient and potentially rewarding starting point. 2 PROBLEMS AS OPPORTUNITIES: Capitalize on the fact that servicing is an emotional experience by openly and enthusiastically solving problems and showing empathy. 3 EMPLOYEE PASSION: When employees use, and are excited about, the product they sell, credibility goes up – and credibility drives persuasion (Think waiters). 23
  24. 24. BLURRING LINE BETWEEN MARKETING AND SERVICING Implications for Servicing/Marketing on the Web BROAD DISTRIBUTION The social web amplifies the impact of service on word of mouth. IMPLICATIONS BRAND The dynamics of Social Media create a heightened sensitivity, PERSONALIZATION ENGAGEMENT among an already skeptical audience, to “traditional” marketing IMPLICATIONS tactics. PLATFORM Increasing need for channel specific tactics such as developing Spend IMPLICATIONS Facebook and Twitter servicing infrastructure and programs. 24
  25. 25. In today’s Social Media rich environment Servicing = Loyalty
  26. 26. BLURRING LINE BETWEEN MARKETING AND SERVICING Implications 1 THE CONTINUED SHIFT OF SERVICING RESOURCES: As “push” marketing techniques become less for Marketing and less efficient, brands will invest growing in 2010 resources in “pull” techniques, such as Social Media servicing, to achieve engagement goals. MARKETING EFFORTS POSITIONED AS SERVICING: 2 Brands will have to expand the scope of engagement efforts beyond current customer servicing platforms to create new “servicing positioned” marketing platforms that leverage the Social Web. 3 GROWING NEED FOR MEASURING SUCCESS: As scale of Servicing as Marketing increases corporations will insist on measuring channel success metrics more effectively. %&"
  27. 27. Metrics 1 Acquisition: (eg. Fans on Facebook, Followers on Twitter). 2 Engagement: (eg. Video Views, Monthly Uniques). 3 Monetization: (eg. Dollars earned through particular social media channels). 27
  28. 28. THANK YOU Marc Schiller, CEO & Founder marc@electricartists.com 42 Bond Street, 3rd Fl. New York, NY 10012 212.354.2650