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Web 2.0 & Community Marketing (Fulbright Alumni)


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Presentation about Web 2.0 and Community Marketing to the Spanish Fulbright Alumni Association.

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Web 2.0 & Community Marketing (Fulbright Alumni)

  1. 1. Web 2.0 and Community Marketing Francisco Hernández Marcos @franciscohm Madrid, 4th December 2012This document has been produced by 11 Goals & Associates. It is not complete unless supported bythe underlying detailed analyses and oral presentation.
  2. 2. About me SHAMELESS SELF-PROMOTIONEducation: Universidad Politécnica de Madrid, UNED,London Business School, University of Chicago – Fundaciò“laCaixa” & Fundación Rafael del Pino scholarships.Firms worked for full-time: Abengoa, McKinsey&Co, ABNAMRO, Real Madrid C.F.Entrepreneurship: CrisaliaSocial Media & Internet consulting: 11goals.comLectures & Speaker in 3 continents: The Wall Street Journal, Universidad Politécnicade Madrid, London Business School, Cornell University, Politecnico di Milano, CEIBS(Shanghai), Kungliga Tekniska högskolan, The Business Factory, Asociación J.W.Fulbright Spain, ESCP Europe, UIMP, and several private companies.Full profile: 1
  3. 3. “A child of five would understand this.Send someone to fetch a child of five.” Groucho Marx (Duck soup, 1933) 2
  4. 4. What happened to Real Madrid’s social networks #1 sports team in social media worldwide (sep 2011)Source: Famecount (now Starcount), Football Marketing 3
  5. 5. What happened to Real Madrid’s social networks Only Spanish brand ever to be the most active Facebook pageSource: 4
  6. 6. Agenda  Things are changing  Web 2.0 & Community MKT  Some useful tools and concepts
  7. 7. Sending a postcard… 6
  8. 8. Showing off who we have met or known… 7
  9. 9. Displaying where we have been…Our parents Our children (& ourselves) 8
  10. 10. Who decides what news are more important? Gumersindo Lafuente: “Por primera vez en la historia, las audiencias controlan a los periodistas” 9
  11. 11. Who was the leader of the Arab Spring revolution? • 9 out of 10 Egyptians and Tunisians asked in a poll said they used Facebook to organize protests and spread awareness 10
  12. 12. How do we play?Offline, Social 5.7 mill. daily users “Transactionalization” Online, Social Online, Non-Social “Re-Socialization”Source: App Data 11
  13. 13. ILLUSTRATIVE EXAMPLESThe path to social+online Non Social Social ¿? SOCIAL TECHNOLOGIES Online (Social relevance / real identities) & ¿? INNOVATION Each segment has its own INFORMATION TECHNOLOGIES way and pace to be online TV and social GamingOffline Travelling Electronics Supermarket Shopping ShoppingSource: 11 Goals & Associates 12
  14. 14. Inertia in the application of new technologiesRadio as newspaper… TV as radio… It always takes time to adapt to new technologiesWeb 1.0 as newspaper… Web 2.0 as Web 1.0… We expect years developing applications of current and future social technologiesSource: 11 Goals & Associates 13
  15. 15. Agenda  Things are changing  Web 2.0 & Community MKT  Some useful tools and concepts
  16. 16. World’s best brands according to InterbrandSource: “Best Global Brands 2012”, Interbrand 15
  17. 17. World’s best brands according to meSource: Me 16
  18. 18. Which of these ‘ads’ do you trust the most? 17
  19. 19. Customers trust each other, not the brand! 76% of American consumers believe companies don’t tell the truth in advertising -Yankelovich (2005) 60% have a much more negative opinion of marketing & advertising than a few years ago - Yankelovich (2004) 78% say consumer recommendations are the most credible form of advertising - Nielsen (2007) 83% say online evaluations and reviews influence their purchasing decisions - Opinion Research Corporation (2008) 84% trust user reviews more than critics’ reviews - MarketingSherpa (2007) Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers - Edelman Trust Barometer (2006, 2007)Source: Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews, by Molecular Inc.
  20. 20. What form of advertising do consumers trust? Recommendations from people I know 92% Consumer opinions posted online 70%Editorial content such as newspaper articles 58% Branded Websites 58% Emails I signed up for 50% 28.000 Internet users in Ads on TV 47% 56 countries Brand sponsorships 47% Ads in magazines 47% Billboards and other outdoor advertising 47% Ads in newspapers 46% “Recommendations from Ads on radio 42% people I know” is, by far, Ads before movies 41% the most trusted form of TV program product placements 40% marketing Ads served in search engine results 40% Online video ads 36% However, “Ads on social Ads on social networks 36% networks” not really Online banner ads 33% trusted Display ads on mobile devices 33% Text ads on mobile phones 29%Source: Nielsen, Global Trust in advertising and Brand Messages, Abril 2012
  21. 21. Our growing circle of trustFrom “Me” to “Social” … Me Mom Dad Enrique … Miguel Carmen Esther … … Arturo Gonza CarlosSource: 11 Goals & Associates 20
  22. 22. How do we use our circle of trust? Extract value We rely on people we know to: from the circle • Get informed. • Make decisions. Yo Mamá Papá Enrique We use our experiences to: Miguel Tomás Esther • Increase our Goodwill • Arturo Rafael Identify ourselves. xxx xxx … • Self-express ourselves. • Self-realise • Socialize around an excuse Nourish and for conversation extend the circle 21
  23. 23. What’s a social networking service? SNS: “online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities” (Wikipedia) ~85% of online population use SNS There are discrepancies about which services are really a SNS and which ones are notSource: 22
  24. 24. World map of Social NetworksJune 2009Source: 23
  25. 25. World map of Social NetworksJune 2012 The World Facebookised (1000 mill. Active users)Source: 24
  26. 26. Real activity in SNS. Facebook rules. Facebook world’s time share: •75% (SNS) •14% (Internet)Source: comScore 25
  27. 27. What is a social graph? Social graph: “the global mapping of everybody and how theyre related” (Wikipedia) Sociograms: “graphic representation of social links that a person has” (Wikipedia)Source: ,
  28. 28. A Facebook’s sociogram exampleSource: Facebook Inc. Paul Butler 27
  29. 29. Sociogram by Networks (Top 250 friends)Another Facebook exampleSource: Touch Graph 28
  30. 30. Facebook API, Open graph • Facebook offers the ability to access to the user’s social graph if she gave access to us. • Brands should understand the graph’s possibilities and should work out ways to build social way of promoting their brands. • Examples: • Spotify • Netflix • NYTSource: 29
  31. 31. Web 2.0 is not only SNS: Social Media Ecosystem Nobody owns theSource: Luma Partners ecosystem 30
  32. 32. 5 attitudes regarding the social media ecosystem Ignore Complement [Hi-Tech] [Content] Combat Copy Minimum presence (most brands) Pasive  Reactive  ProactiveSource: 11 Goals & Associates 31
  33. 33. In Social Media, the medium is the people Audience• Message• Image Real• Video impact• Emotion• Poll• … Social Ecosystem Community Marketing/Management: Audience knowledge: •Experience •Analytics (Tests) Social Ecosystem knowledge 32
  34. 34. A powerful community on SNS helps Obama to…Movilize StrikeKnow Inform Defend …without intermediaries, faster, and to a broader audience 33
  35. 35. “Marketing is dead”Harvard Business Review – 9 Aug 2012Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize theyre operating within a dead paradigm. But they are. The evidence is clear.Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of- mouth or customer reviews.Actually, we already know in great detail what the new model of marketing will look like. Its already in place in a number of organizations. Here are its critical pieces:  Restore community marketing  Find your customer influencers  Help them build social capital  Get your customer advocates involved in the solution you provide. Most read article in Aug 2012Source: 34
  36. 36. 3-SLIDE SUMMARYCommunity Marketing used to be this…Picture: 35
  37. 37. 3-SLIDE SUMMARY…that in order to get scale was denaturalized by this… 36
  38. 38. 3-SLIDE SUMMARY…until this came along and allowed scale and directcontact simultaneously 37
  39. 39. Who deals with the fanbase? 0FFLINE WEB 1.0 WEB 2.0 (CIRCULATION) (DAILY REACH %) (FANS/FOLLOWERS) Marca: 244.456 /day Facebook/Twitter (mill.) Diario As: 198.758/day Marca: 0,65/0,91 Real Madrid: ~0 Diario As: 0,28/0,41 Real Madrid: 31,8/6,8 MD: 95.907 /day Facebook/Twitter (mill.) Sport: 91.753/day MD: 0,18/0,64 FC Barcelona: ~0 Sport: 0,23/0,22 FC Barcelona: 35,3/12,4Web 2.0 allow football clubs –better than ever before- to be in touch directly with their fanbaseSource: OJD (2011),, Facebook Inc. Twitter Inc. 38
  40. 40. The value of Community Marketing Real Madrid: estimated equivalent advertising value of its Facebook page: EUR 30 mill./month (Apr 2011)Source: IAB Spain, Ontwice,
  41. 41. Agenda  Things are changing  Web 2.0 & Community MKT  Some useful tools and concepts
  42. 42. Do we need a [great] brand to create a [great] onlinecommunity? Online community Failure Success Strong Brand Weak or non-existent No Common interestSource: 11 Goals & Associates 41
  43. 43. From a person to the online community People Community Online community Common interest Online “Robust communities are built not on brand reputation but on a deep understanding of members’ lives.” 42
  44. 44. ILLUSTRATIVE EXAMPLESCommunity segmentation Soccer Club Country’s tourism board @1 Former Potential visitors visitors Team Supporters Other gov entities Country Tourist Employees industry @2 citizens Football fans General public Interests? Motivations? Roles?Source: 11 Goals & Associates 43
  45. 45. Interests and role of each subgrup within the community Subgroup Interests Rol 1  …  …  … 2  …  …  … 3  …  …  … …  …  …  … Key question: Does it make sense as a system? How can the brand close any gap in the system?Source: 11 Goals & Associates 44
  46. 46. Three forms of Community Affiliation “Pools” “Web” “Hub” • People have strong • People have strong one- • People have strong associations with a to-one relationships connections to a shared activity or goal, with others who have central figure and Description or shared values, and similar or weaker associations loose associations with complementary needs. with one another. one another. • Apple enthusiasts. • Cancer patients and • Oprah Winfrey. Examples • Political party relatives. • Hannah Montana. members. • Apple enthusiasts (too) • Apple enthusiasts (too) RRSS Most frequent type Preferred by brandsSource: “Getting Brand Communities Right”, Harvard Business Review, Abril 2009, 11 Goals & Associates
  47. 47. Building up an coherent social media community ANALYTICS (SOCIAL BALANCED SCORECARD) STRATEGY ORGANIZATION SERVICES MARKETING ONLINE & SOCIAL MEDIA INTERNAL & EXTERNAL FOR COMMUNITY MANAGEMENT SOCIAL & GENERAL COMMUNITY ENGINEERING SOCIAL MKT• The “community engineering” stages are key to build a truly brand community on social networks and to achieve a high level of social capital.• Without a good community engineering (and social capital) campaigns simply do not work.• Currently most brands think of social media as another ad place, and get easily disappointed because they did not work enough the community before beginning to extract value from it.Source: 11 Goals & Associates 46
  48. 48. How is Social Media organized in your company?Source: Altimeter Group 47
  49. 49. Priorities when developing the community LONG TERM • …. • …. MEDIUM TERM • …. • …. • …. SHORT TERM • …. • …. • ….. • …. Revenues + keep More More Fans fans and Engagement engagementSource: 11 Goals & Associates 48
  50. 50. Miths and realities about managing communities SUMMARY Myth Reality 1. A brand community is a marketing 1. A brand community is a business Strategy. strategy. 2. A brand community exists to serve 2. A brand community exists to serve the business. the people in it. 3. Build the brand, and the 3. Engineer the community, and the community will follow brand will be strong. 4. Brand communities should be 4. Smart companies embrace the lovefests for faithful brand conflicts that make communities advocates. thrive. 5. Opinion leaders build strong 5. Communities are strongest when communities. everyone plays a role. 6. Online social networks are the key 6. Online networks are just one tool, to a community strategy. not a community strategy. 7. Successful brand communities are 7. Of and by the people, communities tightly managed and controlled. defy managerial control.Source: “Getting Brand Communities Right”, Harvard Business Review, April 2009. 49
  51. 51. SUMMARY OF CONCLUSIONS1 of 2 ¶ Many things are changing due to the existence of Social Networks and Social Media. The same underlying motives but a different way expressed them. ¶ We tried to understand the reasons of this phenomenon. Is there any theory behind it? What’s the big picture? ¶ To a great extend Internet transformed intrinsically social activities into merely transactional ones. Now thanks to SNS those activities are re-socialising, but this time online. ¶ However, Social Technologies adoption is a continuous process that will take many years to be completed. Brands need to experiment and learn. ¶ The success of social networking services like Facebook relies in the fact that they are able to translate a person’s social live (“circle of trust”) into the online world. It’s not a new social life, it is the same life but faster and more efficient. ¶ Facebook worldwide’s dominating SNS excepting in former URRS countries and other countries where it has been banned (China, Iran, etc.). ¶ At par with SNS is the concept of Social Graph, key to understand how our brand or company can take advantage of social media through SNS or Apps. 50
  52. 52. SUMMARY OF CONCLUSIONS2 of 2 ¶ Social Media works as a very complex ecosystem in constant change. The best attitude towards that reality is to try to understand the ecosystem and to figure out how to complement it and add value for the user. However brands tend to copy parts of the ecosystem, leading to digital strategies which use to be expensive, short-lived, and not very successful. ¶ In Social Media, the medium is the people. ¶ Community Marketing uses social technologies to build large, active and sustainable online communities of great value for the brand. ¶ In order to build up a great online community:  Do not need a great brand.  Need to deeply understand the member’s interests and lives.  Segment the community and determine the interest and role of each segment.  See how members are affiliated among them and with the brand.  Think carefully about the organization you need.  Focus on i) grow fans ii) engage fans iii) generate direct and indirect revenues 51
  53. 53. Thanks! Francisco Herná 52
  54. 54. Motivations for sharing To bring valuable and entertaining content to others To get the word To define ourselves out about causes or brands 5 key motives to others for sharing To grow and nourish Self-fulfillment our relationshipsSource: “The Psycology of Sharing: Why do people share online?”, The New York Times’s Customer Insight Group