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5 Reasons to Stop Investing in Facebook - SXSW Interactive 2012 - Social Media

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SXSW Interactive 2012 Presentation: Brands have been diving head first into Facebook over the past few years but their social reality has failed to live up to their lofty expectations. Guided by a sea of experts who can say "social" but can’t do social, brand pages often resemble online ghost towns with engagement that consists of mere small talk and fake smiles. To make matters worse, Facebook went from a friendly handhold to a ruthless chokehold of world-wide-web domination. This presentation will help you put Facebook back in its rightful place. PLEASE NOTE: In order for the hyperlinks in the presentation to work, you must download the PDF. Unfortunately, Slideshare's UI doesn't tolerate them. Many thanks.

SXSW Interactive 2012 Presentation: Brands have been diving head first into Facebook over the past few years but their social reality has failed to live up to their lofty expectations. Guided by a sea of experts who can say "social" but can’t do social, brand pages often resemble online ghost towns with engagement that consists of mere small talk and fake smiles. To make matters worse, Facebook went from a friendly handhold to a ruthless chokehold of world-wide-web domination. This presentation will help you put Facebook back in its rightful place. PLEASE NOTE: In order for the hyperlinks in the presentation to work, you must download the PDF. Unfortunately, Slideshare's UI doesn't tolerate them. Many thanks.

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5 Reasons to Stop Investing in Facebook - SXSW Interactive 2012 - Social Media

  1. 1. Reasons Yo u S h o u l d S t o p I n v e s t i n g in Facebook by Niki Weber Email Website Linkedin Date niki.e.weber@gmail.com metavintage.com linkedin.com/in/nikiweber May 8, 2012
  2. 2. Before we begin, here’s a note about Identifying sources The icons shown below can be found throughout the presentation. Each are hyper-linked. All you have to do is click on the icon to drive to additional information (e.g. deeper explanations, research findings, clarifications, references, sources, etc.). IDEA Click for insights, further clarification, explanations DATA Click for statistics, research, resources SHARE Click fo credits, inspirations, sparks 5 Reasons You Should Stop Investing in Facebook 2
  3. 3. Back in the day Should I be on Facebook? 5 Reasons You Should Stop Investing 1n Facebook 3
  4. 4. Today Social = Facebook 5 Reasons You Should Stop Investing in Facebook 4
  5. 5. What’s needed A Social Reset Go Back. We f*cked up everything. 5 Reasons You Should Stop Investing in Facebook 5
  6. 6. How I really Feel about Facebook PERSONALLY PROFESSIONALLY “Social networking...which seemed to It doesn’t matter what I think personally. promise my brain the vitamin of human It only matters what my target audiences’ interaction, but actually traded my info think, feel, do, and see. If my audience is to the corporate world and left me with on Facebook, I need to be there. If they little more than a blackhole that sucked aren’t, I need to go where they are. away what little attention span the internet had already left me with...”* 5 Reasons You Should Stop Investing 1n Facebook 6
  7. 7. Who am I? My 8-mile speech I’m by no means a digital prophet. My creativity is a combination of left and right brain. Most recently I was the Digital Planning Director/Creative Innovations Director at TBWAChiatDay. I don’t have a Facebook page for 7 compelling reasons. For Facebook testing and observation I use an alias named, ‘Lola.’ I only blog or tweet to discuss my personal, non-work passions. At work, my passion is my client. Their brand. Not mine. I’m direct. I don’t shy away from a debate. Please refrain from bashing BrainSport’s website—there is a reason for everything. I don’t hate Facebook and I’m not really anti-social. I often speak in hyperbole for added dramatic effect. I am strongly opposed to marketing bullshit. This is not a hater speech. I have nothing to gain from giving this talk. I have no doubt Facebook could give a shit about this talk. 5 Reasons You Should Stop Investing 1n Facebook 7
  8. 8. What Facebook probably Thinks of my talk PRICKED EGO BUT WILL PRETEND NOT TO GIVE A SH!T Here DOES NOT GIVE A SH!T WILL NOT WILL ACKNOWLEDGE RETAILIATE 5 Reasons You Should Stop Investing 1n Facebook 8
  9. 9. Let’s also Get this out of the way Occasionally, Facebook isn’t a terrible idea. However, even if you’re in Facebook’s sweet spot, it still means you need a Social Reset. Facebook is only a part of what social entails. From my experience and from audience insights, I believe Facebook isn’t a terrible idea when: YOU’RE TARGETING YOUR BRAND CAN YOUR BRAND ORGANICALLY THESE AUDIENCES: BE CLASSIFIED AS: MANIFESTS AS: • Moms (all phases) • Retail/CPG • Customer service • Students (of all levels) • Complex, new product • Events • New parents • Mature produce • Content creators • Narcissists • Cause/non-profit • Pictures • The lonely, voyeurs, or stalkers • Commodity (looking to differentiate) • Exciting polls! • Casual gamers • Social gaming • Rewards and incentives • Existing passionate communities • Babies! • Famous and followed • Persons going through a breakup • Pet-based (sponsored-celebs) or some other painful life event • Celebrity-ladened • Exclusive and insider • Deal-seekers (artist, team, player, etc.) • Birthday celebrators • Rapidly changing inventory • Wedding-minded • Critics, conversationalists, or “in-the-knowers” 5 Reasons You Should Stop Investing 1n Facebook 9
  10. 10. Why now? Last July I was pissed... 5 Reasons You Should Stop Investing 1n Facebook 10
  11. 11. Why now? It’s a time where... THERE’S AN ALARMING LACK “THOUGHTS” ARE REDUCED OF OPINIONS AND CREATIVITY TO SOUND BYTES PEW AND MASHABLE OUR INSTINCTIVE ATTRACTION TO SEEM UNDER THE SPELL GOSSIP HAS MADE FACEBOOK THE OF FACEBOOK US MAGAZINE FOR NON-CELEBS I MISS BRANDS DOING THINGS FACEBOOK’S “CONNECTIONS” THAT WERE MEANINGFUL ENABLE GROUP THINK THAT MADE ME WANT TO BE TO A DEGREE THAT LOYAL TO THEM MAKES ME NERVOUS AN INCREDIBLE AMOUT I MISS A TIME WHERE APPLE OF BAD DATA AND AND REDBULL AREN’T THE ONLY MISINFORMATION TWO BRANDS DOING THINGS IS BEING SYNDICATED RIGHT MARKETING-WISE 5 Reasons You Should Stop Investing 1n Facebook 11
  12. 12. 5 Reasons you should Stop investing in Facebook 5 Reasons You Should Stop Investing 1n Facebook 12
  13. 13. 5 Reasons you should Stop investing in Facebook 1 WE’RE EXPERIENCING A SOCIAL-CARGO-CULT AND IT’S DISTORTING THE LANDSCAPE 5 Reasons You Should Stop Investing 1n Facebook 13
  14. 14. What is a Social Cargo Cult? The real-life ethnological phenomenon that happens when a technologically primitive society comes in contact with a technologically more advanced society. (Think of digital immigrants entering the world of digital natives.) It’s a term used to describe anyone else who imitates superficial features of a system (in this case, military logistics) and hopes to replicate the original’s success, without any thought or understanding of the intrinsic workings of the system. Reason #1 5 Reasons You Should Stop Investing 1n Facebook 14
  15. 15. Evidence of a Social Cargo Cult Inexperienced social media ‘gurus’ and Facebook’s massive marketing tidal wave left behind a modern day cargo cult of social vocabulary. Today, nearly every marketer can speak social, but most do not know what the hell they actually mean. Reason #1 5 Reasons You Should Stop Investing 1n Facebook 15
  16. 16. How does a social cargo cult impact the Social Media Landscape? a. c. e. Repetitious Theoretical Bully jargon social experts tactics d. b. Safe bets SOCIAL Misinformation SLUDGE deluge Reason #1 5 Reasons You Should Stop Investing in Facebook 16
  17. 17. What Social Sludge looks like Reason #1 The Internet 5 Reasons You Should Stop Investing 1n Facebook 17
  18. 18. A word about Those safe from the storm “TRUTH IS, NOT EVERYONE CAN BE COOL [SOCIALLY] AND FOR THOSE WHO ARE NOT, YOU HAVE FACEBOOK. - Anonymously Obvious Reason #1 5 Reasons You Should Stop Investing 1n Facebook 18
  19. 19. 5 Reasons you should Stop investing in Facebook 1 WE’RE EXPERIENCING A SOCIAL-CARGO-CULT AND IT’S DISTORTING THE LANDSCAPE 2 YOU DON’T OWN IT, IT’S NOT YOURS, AND IT WILL NEVER PUT YOU FIRST, EVER 5 Reasons You Should Stop Investing 1n Facebook 19
  20. 20. You don’t own it. It’s not yours. Your brand. Their server. Their data. Without even a fight, most brands gave Up power, control and ownership. Reason #2 5 Reasons You Should Stop Investing 1n Facebook 20
  21. 21. 5 Reasons you should Stop investing in Facebook 1 WE’RE EXPERIENCING A SOCIAL-CARGO-CULT AND IT’S DISTORTING THE LANDSCAPE 2 YOU DON’T OWN IT, IT’S NOT YOURS, AND IT WILL NEVER PUT YOU FIRST, EVER 3 EXPECTATION HAS FAILED TO LIVE UP TO THE REALITY 5 Reasons You Should Stop Investing 1n Facebook 21
  22. 22. Expectations To Live Up Have Failed To Reality Reason #3 5 Reasons You Should Stop Investing 1n Facebook 22
  23. 23. Expectation Reality Free & Easy Expensive & Hard work Reason #3 5 Reasons You Should Stop Investing 1n Facebook 23
  24. 24. Expectation Reality Why Not ? Oh Sh!t Reason #3 5 Reasons You Should Stop Investing 1n Facebook 24
  25. 25. Expectation Reality Authentic Community Forced Relationship Reason #3 5 Reasons You Should Stop Investing 1n Facebook 25
  26. 26. Expectation Reality We Have Social We Have A Process Figured Out On Paper Reason #3 5 Reasons You Should Stop Investing 1n Facebook 26
  27. 27. Expectation Reality Facebook Fans Facebook…the F*ck If I Know Reason #3 5 Reasons You Should Stop Investing 1n Facebook 27
  28. 28. Expectation Reality Honest, Transparent Opportunistically Honest, & Authentic* Transparent & Authentic Reason #3 5 Reasons You Should Stop Investing 1n Facebook *The Bullshit Trinity of Social 28
  29. 29. 5 Reasons you should Stop investing in Facebook 1 WE’RE EXPERIENCING A SOCIAL-CARGO-CULT AND IT’S DISTORTING THE LANDSCAPE 2 YOU DON’T OWN IT, IT’S NOT YOURS, AND IT WILL NEVER PUT YOU FIRST, EVER 3 EXPECTATION HAS FAILED TO LIVE UP TO THE REALITY 4 LEGALLY AND / OR STRUCTURALLY YOU’RE PROBABLY F*CKED 5 Reasons You Should Stop Investing 1n Facebook 29
  30. 30. Legally and / or structurally You’re probably f*cked. FULLY STAFFED PROGRAMMATIC STRUCTURE UNDERSTAFFED HIGH LEGAL’S POWER LOW OVER SOCIAL Reason #4 5 Reasons You Should Stop Investing 1n Facebook 30
  31. 31. 5 Reasons you should Stop investing in Facebook 1 WE’RE EXPERIENCING A SOCIAL-CARGO-CULT AND IT’S DISTORTING THE LANDSCAPE 2 YOU DON’T OWN IT, IT’S NOT YOURS, AND IT WILL NEVER PUT YOU FIRST, EVER 3 EXPECTATION HAS FAILED TO LIVE UP TO THE REALITY 4 LEGALLY AND / OR STRUCTURALLY YOU’RE PROBABLY F*CKED 5 FACEBOOK LOST ITS MIND ON THE PATH TO IPO 5 Reasons You Should Stop Investing 1n Facebook 31
  32. 32. On the path to Ipo Facebook Lost Its Mind Reason #5 5 Reasons you should stop investing in Facebook 32
  33. 33. Facebook koobecaF Be open Decline to comment Reason #5 5 Reasons you should stop investing in Facebook 33
  34. 34. Facebook koobecaF Apps on Our mission is to Facebook may not give people the integrate, link to, power to share & promote, distribute, make the world more or redirect to any open & connected app on any other competing social platform Reason #5 5 Reasons you should stop investing in Facebook 34
  35. 35. Facebook koobecaF 425mm 425mm monthly monthly active mobile actively missed users opportunities Reason #5 5 Reasons you should stop investing in Facebook 35
  36. 36. Facebook koobecaF Frictionless Without sharing expressed consent Reason #5 5 Reasons you should stop investing in Facebook 36
  37. 37. Facebook koobecaF F-Commerce F-Commerce is the future is a huge fail Reason #5 5 Reasons you should stop investing in Facebook 37
  38. 38. Facebook koobecaF Premium 60% of people ads drive do not want to brand impact engage with brands via social media Reason #5 5 Reasons you should stop investing in Facebook 38
  39. 39. Facebook koobecaF Facebook partners Facebook profile with Spotify is required to have a Spotify account Reason #5 5 Reasons you should stop investing in Facebook 39
  40. 40. Facebook koobecaF Developer Voted friendly worst API Reason #5 5 Reasons you should stop investing in Facebook 40
  41. 41. Facebook koobecaF Facebook Brand sites will will replace continue to live brand sites on our servers Stephen Haines, commercial director of Facebook’s U.K. Reason #5 5 Reasons you should stop investing in Facebook 41
  42. 42. Facebook koobecaF Facebook Facebook is strongly is #1 in referral encouraging longer traffic engagement within Facebook Reason #5 5 Reasons you should stop investing in Facebook 42
  43. 43. Facebook koobecaF Brands get 46% more Brand pages are engagement with seeing a drop in Facebook Timeline engagement, brand pages regardless of whether they’ve switched to Timeline Reason #5 5 Reasons you should stop investing in Facebook 43
  44. 44. Facebook koobecaF “I know that “In most cases people don’t want younger people privacy...especially think very much younger people” the same as older people when it comes to online ” Reason #5 5 Reasons you should stop investing in Facebook 44
  45. 45. Facebook koobecaF “Many lightweight An exhaustive interactions over time” amount of insignificant and often deal-ladened interactions over time with no measurable ROI Reason #5 5 Reasons you should stop investing in Facebook 45
  46. 46. Facebook koobecaF Social at scale We missed our will not be free profit goals by $500 million, pay up brands Reason #5 5 Reasons you should stop investing in Facebook 46
  47. 47. Facebook koobecaF Premiums allow “We’re sort . brands to share of like 1951 . content on the best television” places on Facebook Mark D’Arcy, a former Time Warner ad exec who’s now Facebook’s director of global creative As stated on Facebook’s fMC site solutions, said of Facebook ads Reason #5 5 Reasons you should stop investing in Facebook 47
  48. 48. 5 Implications for Moving forward 5 Reasons You Should Stop Investing 1n Facebook 48
  49. 49. 5 Implications for Moving forward 1 ACCEPT REALITY & FORCE CLARITY (even if it’s an uncomfortable process) 5 Reasons You Should Stop Investing 1n Facebook 49
  50. 50. 5 Implications for moving forward Accept reality & force clarity Solution #1 5 Reasons You Should Stop Investing 1n Facebook 50
  51. 51. 5 Implications for moving forward Part of accepting reality If you want to realistically deliver a memorable experience, you can have two but not all three principles in effect—a take on Keeley’s Triangle. FAST (even if it’s an uncomfortable process) FREE ENGAGING (e.g. intern vs. professional blogger, (meaningful, relevant, community manager, outreach structures, irresistibly shareable) systems, and measurement) Solution #1 5 Reasons You Should Stop Investing 1n Facebook 51
  52. 52. 5 Implications for moving forward Part of accepting reality If you want to realistically deliver a memorable experience, you can have two but not all three principles in effect—a take on Keeley’s Triangle. FAST (even if it’s an uncomfortable process) ...but it’s going to cost you (e.g. systemic team, quality creative, risk tolerance, etc.) FREE ENGAGING (e.g. intern vs. professional blogger, (meaningful, relevant, community manager, outreach structures, irresistibly shareable) systems, and measurement) Solution #1 5 Reasons You Should Stop Investing 1n Facebook 52
  53. 53. 5 Implications for moving forward Part of accepting reality If you want to realistically deliver a memorable experience, you can have two but not all three principles in effect—a take on Keeley’s Triangle. FAST (even if it’s an uncomfortable process) ...but it’s going to cost you (e.g. systemic team, quality creative, risk tolerance, etc.) FREE ENGAGING (e.g. intern vs. professional blogger, (meaningful, relevant, community manager, outreach structures, irresistibly shareable) systems, and measurement) Solution #1 ...but it won’t be fast. 5 Reasons You Should Stop Investing 1n Facebook (e.g. will be programmatic, will require a dedicated team, etc.) 53
  54. 54. 5 Implications for moving forward Part of accepting reality If you want to realistically deliver a memorable experience, you can have two but not all three principles in effect—a take on Keeley’s Triangle. FAST (even if it’s an uncomfortable process) ...but it will not be good or ...but it’s going to cost you it will have a short shelf life (e.g. systemic team, quality and be hard to replicate creative, risk tolerance, etc.) (e.g. polls, pushed content, sweepstakes, contests, posts, etc. –not reactive or proactive, just pushing) FREE ENGAGING (e.g. intern vs. professional blogger, (meaningful, relevant, community manager, outreach structures, irresistibly shareable) systems, and measurement) Solution #1 ...but it won’t be fast. 5 Reasons You Should Stop Investing 1n Facebook (e.g. will be programmatic, will require a dedicated team, etc.) 54
  55. 55. 5 Implications for Moving forward 1 ACCEPT REALITY & FORCE CLARITY (even if it’s an uncomfortable process) 2 ROLL-UP YOUR SLEEVES (take action–test, learn, optimize and repeat) 5 Reasons You Should Stop Investing 1n Facebook 55
  56. 56. 5 Implications for moving forward Roll up your sleeves Solution #2 5 Reasons You Should Stop Investing 1n Facebook 56
  57. 57. 5 Implications for Moving forward 1 ACCEPT REALITY & FORCE CLARITY (even if it’s an uncomfortable process) 2 ROLL-UP YOUR SLEEVES (take action–test, learn, optimize and repeat) 3 PUT FACEBOOK BACK IN THEIR PLACE (and treat them like the media vendor they’ve become) 5 Reasons You Should Stop Investing 1n Facebook 57
  58. 58. 5 Implications for moving forward Put Facebook back in their place Solution #3 5 Reasons You Should Stop Investing 1n Facebook 58
  59. 59. 5 Implications for Moving forward 1 ACCEPT REALITY & FORCE CLARITY (even if it’s an uncomfortable process) 2 ROLL-UP YOUR SLEEVES (take action–test, learn, optimize and repeat) 3 PUT FACEBOOK BACK IN THEIR PLACE (and treat them like the media vendor they’ve become) 4 OBTAIN TRUSTED SOCIAL EXPERT (they build more than blog) 5 Reasons You Should Stop Investing 1n Facebook 59
  60. 60. 5 Implications for moving forward Obtain trusted social expert Solution #4 5 Reasons You Should Stop Investing 1n Facebook 60
  61. 61. 5 Implications for Moving forward 1 ACCEPT REALITY & FORCE CLARITY (even if it’s an uncomfortable process) 2 ROLL-UP YOUR SLEEVES (take action–test, learn, optimize and repeat) 3 PUT FACEBOOK BACK IN THEIR PLACE (and treat them like the media vendor they’ve become) 4 OBTAIN TRUSTED SOCIAL EXPERT (they build more than blog) 5 SEEK COUNSEL FROM THE SOCIAL CLAIRVOYANT (as qualified & accurate as 99.2% of social media experts*) 5 Reasons You Should Stop Investing 1n Facebook *It’s an educated guess 61
  62. 62. Solution #5 5 Reasons You Should Stop Investing in Facebook 1n Facebook MetaVintage.com/Fortune 62
  63. 63. 5 Implications for Moving forward 1 ACCEPT REALITY & FORCE CLARITY (even if it’s an uncomfortable process) 2 ROLL-UP YOUR SLEEVES (take action–test, learn, optimize and repeat) 3 PUT FACEBOOK BACK IN THEIR PLACE (and treat them like the media vendor they’ve become) So, now what? 4 OBTAIN TRUSTED SOCIAL EXPERT (they build more than blog) 5 SEEK COUNSEL FROM THE SOCIAL CLAIRVOYANT (as qualified & accurate as 99.2% of social media experts*) 5 Reasons You Should Stop Investing 1n Facebook *It’s an educated guess 63
  64. 64. Consult an expert on mixing ‘Friends & Money’ “If you need a friend, get a dog.” 5 Reasons You Should Stop Investing 1n Facebook 64
  65. 65. If you forget everything else Remember to ask.. . “WHY AM I ON FACEBOOK?” 5 Reasons You Should Stop Investing 1n Facebook 65
  66. 66. Shout - out’s & Thank you’s It takes a village to do digital correctly, and this presentation is no different. A very special thanks to my digital friends who helped me along the way. J.P. Guiseppi Nick Drake Tim Shea Kari McGlynn Adam Wiese Gage Clegg Ryan Potter All My BrainSport Peeps Eugene Buono Jon, Roberto & the Rest of the Guys at Covelop To request the full-length presentation, please send me an e-mail. By Email Website Linkedin Niki Weber niki.e.weber@gmail.com metavintage.com linkedin.com/in/nikiweber
  67. 67. Appendix CAVEAT: Keeping up with the trials and tribulations of Facebook is a full-time job. I’ve included the most up-to-date research in an attempt to stall the obsolesce of this presentation. Eventually my blog (metavintage.com) will act as the real-time version of the document. It will dive into certain slides deeper, add new research and Facebook developments, provide voice-over commentary, etc. Additionally, I tried to feature research sources with the least bias, but most consistency (e.g. eMarketer). Additionally, it’s incredibly hard to separate fact from fiction. I’ve tried to shed light on the side of the argument that rarely is seen. I would be more than happy to add opposing views to the deck as it grows, so please feel free to send.
  68. 68. OPENING: A LITTLE BACKGROUND BEFORE WE BEGIN
  69. 69. Appendix A HEADS UP ON WHAT I MEANT BY “INVESTMENT”? I’m referring to the blood, sweat, tears, and dollars spent on keeping a Facebook brand page alive. Apologies if you came here thinking that by “investment” I was referring to the IPO kind. I wish I was clairvoyant last July when I submitted this topic, but unfortunately it was pure serendipity. Although, it would have been incredibly badass to have predicted it seven months ago. One critical caveat: The aim of this presentation always was to get marketers to look at Facebook a little more critically and a little less like a groupie. I want to encourage discussion. My opinions are by no means perfect, but it’s a conduit to broaching a subject that shockingly hasn’t been addressed. Please comment away and hit me up on LinkedIn or through email. I’d love to optimize this presentation so it eventually becomes a smart, useful tool. Appendix BACK
  70. 70. Appendix WHAT DO YOU MEAN BY BACK IN THE DAY? I’m referencing 2008, 2009, and the early part of 2010. During this time brands we’re still tight with MySpace and only starting to consider Facebook presences. To be fair, social was so new that most brands didn’t have time or the future insight to address the question: What’s my brands role in social? Why am I on MySpace or Facebook? How will being social benefit my business? Brands’ social strategy (if there even was one) was more of a follow the leader vs. the right thing to build my brand. As you can see below, In 2008 and 2009 MySpace spending was still exceeding Facebook spending. At this point in time, brands were not in a state of social hysteria and actually contemplated participating on Facebook (and social in general.) By no means was Facebook a no-brainer nor did the idea of Facebook equate to social. However, in 2010, Facebook exponentially pulled away with the lead. Appendix NEXT
  71. 71. Appendix BACK IN THE DAY THERE WERE TANGIBLE METRICS: At the close of 2009 there was no mention of “engagement,” “social at the core,” or “advocacy” as a social media marketing objective. Instead, three separate and independent studies showed marketers using hard, tangible metrics to define objectives like increased website traffic or lead generation. In looking back, we were closer to finding the true ROI of social media in 2009 than we are today. Appendix BACK
  72. 72. Appendix A DRAMATIC SURGE IN FACEBOOK LOVE OCCURRED IN 2010 AND CONTINUES TO GROW. A dramatic surge in Facebook love occurred in 2010. Through a brilliant CMO and agency exec targeted campaign, massive audience numbers, and a sexy start-up sheen, Facebook has become synonymous with social. Having a presence on the platform has become a literal no-brainer. Without a doubt, brands are in love with Facebook and believe it to be their primary social media outlet. 85% of companies viewed Facebook as successful, a Appendix significant jump from 54% in 2009. Yet Facebook hadn't matched message or bulletin boards, with 93% reporting it was a successful tactic. foursquare also saw a significant increase in usefulness; it wasn't even measured in 2009, yet in 2010, 75% of companies reported it was a successful tactic. NEXT There was a 10% increase in Facebook utilization by Fortune 500 companies in 2010. Facebook usage continued to increase from 2011 - 2012.
  73. 73. Appendix BY 2011& 2012, SOCIAL MEDIA GREATLY IMPACTS BRANDS, THEIR BUSINESS, AND THEIR BUDGETS. Facebook and social media in general are impacting marketers more than any previous vendor or medium, because it goes beyond the walls of marketing. The perception of social media begins to change in 2010 with more companies viewing it as important. 86% reported social media technologies to be somewhat or very important to their business and marketing strategies in 2010, up from 79% in 2009. And growth was even stronger among those The rise of social media is the leading factor impacting who consider it “very important.” Appendix the marketing world at 70%. Surprisingly, critical business factors like competition, ROI, and disruptive technologies don’t come close to the impact social media has had on their organizations. NEXT
  74. 74. Appendix BY 2011& 2012, SOCIAL MEDIA GREATLY IMPACTS BRANDS, THEIR BUSINESS, AND THEIR BUDGETS. Multiple, separate and independent studies show budget allocation for Facebook and social media in general is on the http://gim.ie/xz9o rise, even though the medium has failed to produce convincing ROI. Appendix NEXT
  75. 75. Appendix BY 2011& 2012, SOCIAL MEDIA GREATLY IMPACTS BRANDS, THEIR BUSINESS, AND THEIR BUDGETS. Multiple separate and independent studies show budget allocation for Facebook and social media in general is on the rise even though the medium has failed to produce convincing ROI. Appendix http://gim.ie/ywZn http://gim.ie/ywW2 NEXT
  76. 76. Appendix BY 2011& 2012, SOCIAL MEDIA GREATLY IMPACTS BRANDS, THEIR BUSINESS, AND THEIR BUDGETS. Multiple separate and independent studies show budget allocation for Facebook and social media in general is on the rise even though the medium has failed to produce convincing ROI. Appendix http://gim.ie/ywVG NEXT
  77. 77. Appendix FACEBOOK STARTS TO UP THE ANTE. In the last half of 2011, most Fortune 500 brands felt a full-court offense from Facebook’s sales teams. I’ve pasted below a few slides that I always chuckled at... Are these not the least engaging ad units opportunities What a weird primary stat to share and compare...I This triangle is probably the least creative, primarily un- you’ve ever seen? Events? polls? Comments? Likes? never cared how long a user stayed on a customizable, un-sexy, and uninteresting tool kit for And search-like banners? These options may homepage, it was the action they took or the brands. Appendix occasionally convert and deliver on some people’s content that engaged them that was important. The definition of engaging, but in my opinion they are the data is too vague to be insightful. least engaging units, which a majority of brands don’t need to generate revenue. NEXT
  78. 78. Appendix FACEBOOK FILES FOR IPO. On February 2, 2012, Facebook filed for IPO. Finally the public received greater transparency into Facebook’s inter- workings. Two things were clear: (1) Facebook was $500 million under their profit projections. (2) In possibly an unfair comparison, Facebook is way behind where Google was at this same stage given their inability to define a clear and valuable monetization platform. Implication for brands: The sales pressure we’ve started to adjust to is going to continue to grow and possibly get worse. Appendix NEXT
  79. 79. Appendix FACEBOOK HOLDS THEIR FIRST fMC. On February 29, 2012 Facebook held its first conference in New York for marketers (and some of their media and agency partners) called fMC. It was a myopic but thoroughly detailed attempt to educate marketers on social and new changes to their platform. They created guides, org charts, and rule books for marketers. They presented self-funded Forrester studies. Most of their suggestions required a brand to be a heavy but nimble content producer. The most alarming aspect to me was what Facebook didn’t say. The changes they cited as being necessary to success lay at the feet of brands and marketers, but very little changed within Facebook that actually helps brands. It was like a friend who talks about themselves the whole time and never asks how you’re doing. To be fair, some content was good, some bad. All was in an effort to increase Facebook revenue generation. None focused on improving the experience for Facebook users. Appendix Facebook created a microsite to host the conference’s various materials here: http://www.facebook.com/business/fmc NEXT
  80. 80. Appendix FACEBOOK HOLDS THEIR FIRST fMC. At fMC, Facebook announced a variety of improvements and changes. Primarily the changes centered around new offerings for marketers in the areas of analytics, ads, and timeline. Below (and on the next few slides) I’ve recapped a few of the changes I found most interesting. New Facebook Ad Offerings: Reach Generator: Rather than pay on a per-click or per-thousand impressions basis, Reach Generator lets advertisers pay a fixed fee based on their Page’s fan count. In return, Facebook guarantees exposure of a Page’s posts to 75 percent of their fans a month, and roughly 50 percent a week, by showing them as ads in the ads sidebar, news feed, and logout page. Typically a Page post only reaches 16 percent of a Page’s fans, so this creates a simple way to pay for added distribution. It will be interesting to see how fans respond to this more pervasive advertising. Will Unlikes increase? Will fans engage? Only time will tell. Also, it was shocking to me that posts on a brand’s Facebook page only reaches 16% of their fans. That’s insanely low, proving that remaining on Facebook is no longer free even from an exposure standpoint. Facebook “Premium” Advertising (including mobile): Premium for Facebook guarantees impressions and placement for Sponsored Stories and premium ads in the news feed, home pages and log-out page, in addition to their former placement on the right hand side of the page. These ads are derived from Facebook page posts. Premium stories and ads show up on tablets and mobile devices now as well. Well, these ads will certainly keep brands and their community managers busy churning out content–irregardless if your a brand who naturally creates content or not. I’m not sure this is a truly viable option for all brands. Additionally, I believe this isn’t a compelling mobile advertising opportunity. Considering over half of Facebook’s universe logs in primarily thought mobile, brands must cut their odds of reaching people by 50% from the get-go. Appendix The company is finally trying to monetize mobile, a little bit, selling an ad product that guarantees brands that their "fans" will see posts to brand pages on Facebook, even if Facebook has to push them into user News Feeds on desktop or mobile. http://www.facebook.com/business/fmc New Media & Marketing: http://bit.ly/HPI8gy NEXT
  81. 81. Appendix FACEBOOK HOLDS THEIR FIRST fMC. At fMC, Facebook announced a variety of improvements and changes. Primarily the changes centered around new offerings for marketers in the areas of analytics, ads, and timeline. Below (and on the next few slides) I’ve recapped a few of the changes I found most interesting. Facebook Timeline & Brand Pages Updates: Private Messages Between Brands and Users Brands will be able to send and receive private messages with users. They claim this will allow for much deeper consumer interaction and will also enable community managers to take extended customer inquiries off the Timeline and into a private message. So in other words, Facebook has given brands a way to hide negative conversations from their page or timeline. For a company who talks about the need to be open and transparent, this is bit of a step backwards. Appendix http://www.facebook.com/business/fmc New Media & Marketing: http://bit.ly/HPI8gy NEXT
  82. 82. Appendix FACEBOOK HOLDS THEIR FIRST fMC. At fMC, Facebook announced a variety of improvements and changes. Primarily the changes centered around new offerings for marketers in the areas of analytics, ads, and timeline. Below (and on the next few slides) I’ve recapped a few of the changes I found most interesting. New Facebook Ad Offerings: Facebook Direct Messaging (Another Way to Look at Private Messages): Here's how the direct messaging system will work: If a Facebook user sends brands a message, they can answer back - though consumers must initiate the dialogue. Brand pages were previously relegated to responding to customer concerns only via wall post responses. I think these quotes sum it up nicely: "The problems it's going to create for community management, “Yet Another Social CRM Channel - Help or Headache? customer care, and one-to-one responses are going to be relatively Facebook introduced the direct messaging feature among a significant," said Michael Scissons, CEO of social media marketing slew of ad product announcements on Wednesday. With the company Syncapse. "You think of these large brands and the news, one could almost hear a pack of CRM directors groan, challenges they've had with simply publishing [on Facebook]. Now they realizing they'll need to add Facebook to phone, email, live chat, are managing the two-way dialogue in a one-to-one manner. It's going Twitter, etc. on their laundry list of channel concerns.” to create a significant amount of work." "Bob Kraut, SVP of advertising and marketing communications "Brands who take their consumer relationships seriously are already for Arby's, suggested the direct messages may help firms avert monitoring and responding frequently to fans' comments and questions comment threads that spiral out of control, causing bad on Facebook," said Lisa Mabe, founder of Washington, DC-based branding. "This [will] lower the risk and be better for customers in marketing and PR firm Hewar Communications. "Similarly, consumers the long run," he said. "There will be more people in the game, will expect brands to acknowledge and get back to them in a timely Appendix and maybe less transparency. But maybe the customer is fine manner via the new private messages. Brands absolutely must stay on with that. It's the customer that counts." top of their private messages coming in from consumers or else risk turning off or even losing customers." (Right...the customer is fine with less transparency, not the circumventing a huge PR nightmare.) http://www.clickz.com/clickz/news/2156896/facebooks-direct-messaging-brands-talking NEXT
  83. 83. Appendix FACEBOOK HOLDS THEIR FIRST fMC. At fMC, Facebook announced a variety of improvements and changes. Primarily the changes centered around new offerings for marketers in the areas of analytics, ads, and timeline. Below (and on the next few slides) I’ve recapped a few of the changes I found most interesting. New Facebook Ad Offerings: Facebook “Log-Out Experience” Ad Unit: Facebook is starting to take a different approach to advertising, which traditionally uses a cost- per-click or cost-per-views model with their new log-out ad unit. At $700,000 each day, this brand exclusive ad unit is worth about $256 million a year — assuming it stays at this price — which represents an extra 6.7 percent of revenue growth (based off $3.7 billion in revenue in 2011). While Facebook has tried to condition advertisers to take a more social approach, the log-out is a shotgun for those looking for the most reach and frequency as quickly as possible. Things to consider: + Targeting isn’t ideal as users can be targeted only by age and gender, according to Facebook. + Reach of the log-out ads is limited to the number of users who actually log out -- a subset of Facebook's U.S. audience. (When announcing log-out ads last month at the fMC conference for marketers, company executives said that 37 million U.S. users log out daily.) However, these “logger-outers” represent only a subset of Facebook’s universe. Why do these people log-out? What’s their demographic/psychographic/ technographic background? Are they logging out because they are on a shared computer? A work computer? + While I’m always down for testing, the price tag is too pricey for most brands’ to serve simply as a test. But Appendix maybe most importantly, the ads, should history repeat itself, will fail with Facebook members, but brands will snag them anyway. http://read.bi/GQEyUW http://bit.ly/GNJ9Vb NEXT http://bit.ly/GPsulF
  84. 84. Appendix FACEBOOK HOLDS THEIR FIRST fMC. At fMC, Facebook announced a variety of improvements and changes. Primarily the changes centered around new offerings for marketers in the areas of analytics, ads, and timeline. Below (and on the next few slides) I’ve recapped a few of the changes I found most interesting. Facebook Timeline & Brand Pages Updates: Facebook Page Insights Page insights will start reporting data with a latency of 5-10 minutes, not two or more days as it currently stands. I guess it’s great that after 5+ years of existence, brands can finally see a limited selection of reporting in real-time. It’s amazing to me this wasn’t fixed years ago. Seems like a pending IPO forced the correction. Appendix http://www.facebook.com/business/fmc http://tcrn.ch/H2qSXl NEXT
  85. 85. Appendix FACEBOOK STARTS TEACHING BRANDS HOW TO BE SOCIAL. With Alicia Keyes playing music in the background, Facebook presented some pretty audacious recommendations to brands at fMC. A few of my favorite, jaw-dropping ones are included below. To see the rest, visit the link below. Implication for marketers: Start treating Facebook like a vendor. Stop providing them with the all-access-pass to your brand. Appendix Want a social blueprint for how to be a social brand? Facebook has you covered. Not sure how to structure your company? Facebook has you covered. http://www.facebook.com/business/fmc NEXT
  86. 86. Appendix FACEBOOK STARTS TEACHING BRANDS HOW TO BE SOCIAL. Facebook presented some pretty audacious recommendations to brands at fMC. A few of my favorite, jaw-dropping ones are included below. To see the rest, visit the link below. Implication for marketers: Start treating Facebook like a vendor. Stop providing them with the all-access-pass to your brand. Appendix Want to know what’s wrong with your corporate culture? Want to know what you’re doing wrong in your social marketing efforts (in other words Facebook)? Facebook has you covered. Want a solution that provides more revenue to Facebook? Facebook has you covered. http://www.facebook.com/business/fmc NEXT
  87. 87. Appendix FACEBOOK STARTS TEACHING BRANDS HOW TO BE SOCIAL. With Alicia Keyes playing music in the background, Facebook also shared the findings of a self-financed Forrester study that looked appears to focus on social media (not just Facebook exclusively). To see the studies, visit the link below. Implication for marketers: Start treating Facebook like a vendor. Stop providing them with the all-access-pass to your brand. You want some Facebook-funded research, which served as the backbone to everything shared at fMC, but that doesn’t delve into any of the outstanding questions marketers have? Facebook has you covered with these two Forrester studies: Appendix http://www.facebook.com/business/fmc NEXT
  88. 88. Appendix FACEBOOK STARTS TEACHING BRANDS HOW TO BE SOCIAL. In March, Paul Adams, Facebook’s global brand experience manager chided brands for their behavior in social (e.g. Facebook) in a presentation titled, Why Marketers Misunderstand Facebook. His Point: Whenever a new mass medium is invented, marketers try to force their old habits into the new platform. That doesn't work, and it's only when marketers learn how the new medium really works that they become successful using it for advertising. To prove his theory, Adams condensed the entire history of media, from the invention of the printing press in 1440 through to today, into just two well-designed PowerPoint slides. The first one notes which media were subject to censorship and which contributed to the death of privacy; the second notes the occasions in which people attempted to use new media as a replacement—rather than an addition—for the old. His stated example: The telephone, Adams explains, was originally thought to be a fantastic solution to broadcasting. You’d dial-in, leave the receiver dangling, and listen along with all the others to the day’s broadcast. My Point: Facebook isn’t social. Facebook is like a brands’ customer service 800 number. I think it’s less that brands don’t get Facebook. It’s more like they understand the giant undertaking and wonder whether it’s worth it. With little to no positive, clearly documented ROI to show, Adams just comes off as a typical arrogant Facebook employee overstepping their bounds and missing the huge elephant in the room–their platform is starting to die, it allows for limited brand engagement, it doesn’t deliver ROI, and to do it right can be an expensive pain in the ass. Appendix http://slidesha.re/GY5uTg BACK
  89. 89. Appendix WHAT’S A SOCIAL RESET? Most brands started on Facebook without truly understanding why and how it would benefit their business. Their social strategy (if there even was one) was more of a follow the leader vs. the right thing to build my brand. With volumes of data and anecdotal evidence, we need to pause what we’re doing. For the moment, we need to stop building more branded apps, stop with the like- driven campaigns, & stop including Facebook in brainstorms, and internal meetings, Right now, It’s time for some tough self-reflection... Why am I on Facebook? Is my audience even on Facebook in a meaningful way? Are they even my fans? What value does my brand derive, and is it set up for success? Are there other, possibly better-suited, places for my brand to exist (even beyond the usual suspects of Twitter, YouTube, etc.) based on what I know about my target audiences’ behaviors? This presentation is dedicated to all the advertisers, marketers, entrepreneurs, creatives, clients, users, gurus, people, humans, and the like–we need a social reset, a pause in the insanity to reflect and redefine social. Let’s look at the evidence from the past few years–the data. Let’s be honest about our issues with legal, corporate structure, and political realities. Let’s look at the audiences and see what they are up to and where else they may be. Let’s firm up tangible, beneficial, business-driving success metrics. Appendix One final caveat: I’m not saying brands and agencies haven’t mapped this out already. It’s my hypothesis that the pressure Facebook has been placing on them since announcing the IPO has made waters murky and most haven’t had time to re-evaluate. NEXT
  90. 90. Appendix WHAT’S A SOCIAL RESET? Today a remarkable series of events have led to social being equivalent to Facebook. However, even in the face of Facebook’s explosive growth and marketers exponentially increasing financial commitment, engagement is only slightly greater today than it was in Q1’2009. Appendix NEXT http://gim.ie/yHpS
  91. 91. Appendix WHY A SOCIAL RESET IS NEEDED? As shown in the previous slides, increased spending by brands is projected in 2012. However, for all the increased spend and interest being showered on Facebook by most brands, they are getting little in return. Appendix NEXT
  92. 92. Appendix WHY A SOCIAL RESET IS NEEDED? There’s a huge gap between where brands are investing their budgets and what channels yielded the best results. http://gim.ie/ywSw Appendix http://gim.ie/ywSv NEXT
  93. 93. Appendix WHY A SOCIAL RESET IS NEEDED? There’s a huge gap between where brands are investing their budgets and what channels yielded the best results. Here’s another data set proving the same point. http://gim.ie/ywV6 http://gim.ie/ywVP Appendix NEXT
  94. 94. Appendix WHY A SOCIAL RESET IS NEEDED? This social inflation is literally taking budget away from digital, proven, effective, mission critical initiatives like SEO and email. Appendix NEXT
  95. 95. Appendix WHY A SOCIAL RESET IS NEEDED? Because CMO’s are taking actions based on misguided beliefs. Social media is not free. Social media is time intensive, and your time is valuable. As your presence grows you may need to pay for tools or additional staff, but at minimum you need to account for the value of the time you commit. Appendix BACK
  96. 96. Appendix MY PERSONAL FEELINGS ON FACEBOOK... The point of this slide is to acknowledge that although I may personally dislike Facebook, I always push opinions to the side and dive in to the behaviors of my brands’ target audiences. Also, the quote on the right of the slide is part of a brilliant piece written by Alex Pasternack over on Vice’s blog, MOTHERBOARD, a few years ago. He beautifully articulated my opinion of Facebook back in 2010. You can check out his post here: http://bit.ly/wSks6q Appendix BACK
  97. 97. Appendix WHAT IS AN 8-MILE SPEECH? In the final battle in the movie 8-Mile, Eminem preempts the bashing or trash-talking one could throw at him and eliminates his foes’ ammunition in the process (e.g. “i know everything he’s gotta say against me. i am white i am a fuckin bum. i do live in a trailer with my mom...”). This is my 8-mile pre-empt. I don’t know everything, and am not a digital prophet by any means. I purely am responding to experiences I’ve dealt with in the past few years and trying to make a topic I’m passionate about discussed or contemplated. I’m by no means a digital prophet. And I think titles like this one are asinine (cough AOL). My creativity is a combination of left and right brain. It comes from synthesizing, finding patterns, turning data into insight, listening to audiences, having an unconventional, “why not” attitude, actively seeking knowledgeable criticism, studying the ‘why” of human behavior, trusting my gut, and pretty much having no fear in failing. Most recently I was the Digital Planning Director, Creative I left in November 2011 to join a startup I’m psyched about. Innovations Director at TBWAChiatDay. I don’t have a Facebook page for 7 compelling reasons. I never had the urge to have one, status updates were akin to spam in my opinion, I can be OCD about privacy and corporations profiting off my data, a clean SEO is important to me, I felt posting updates felt narcissistic, and honestly, I’m not cool enough to have one.) For Facebook testing & observation I use an alias named, ‘Lola’. My Facebook-less life is akin to a drug dealer who doesn’t sample his or her product, but knows the habits of their audience well. (I’m not alone in my personal ‘anti-Facebook-socialness’ by the way–Google Mr. Max Palevsky). And no, I’m not condoning drug dealing, I’m highlighting a shared similarity. I only blog or tweet to discuss my personal, non-work passions. And I do so under an alias because unless you’re into the same passions it’s partially none of your business and nothing you’d care about and I tend to go by MetaVintage. At work, my passion is my client. Their brand. Not mine. I believe all agency and marketing folk should be immersed in their brand, not building a brand for themselves. I’m direct. I don’t shy away from a debate. The big BUT is that I absolutely accept and am open to being proven differently. Debates move things forward and make things better. Please refrain from bashing BrainSport’s website—there is a I have rationale for why they are the way they are. Hear me out first before you bash it. reason for everything I don’t hate Facebook and I’m not really anti-social. I’m not saying Facebook is terrible for every brand. Most of what Facebook is good for could be executed through a great CRM strategy more effectively and efficiently (enter my experience on Adobe). Also, I actually love that social puts a lot of power back in the people’s hands. I often speak in hyperbole for added dramatic effect. So when you see it in action throughout the deck, please bear with me. Appendix I am strongly opposed to marketing bullshit. And jargon and metaphors. This is not a hater speech. A hater speech relies on emotional appeal. I plan to come at you with tangible facts and anecdotes from real world experience. I have nothing to gain from giving this talk. Except the high possibility of getting a bunch of excruciating shit, push back and nitpicking. I have no doubt Facebook could give a shit about this talk. And I’m cool with that. BACK
  98. 98. Appendix GOOD FACEBOOK PAIRINGS. Like I mentioned before, I believe Facebook can be compelling for certain brands or initiatives that share certain Facebook-friendly characteristics. Two recent examples–the backlash Rush Limbaugh advertisers recently experienced within social media as well as the the rapid spread of the Kony 2012 video. The phenomenon that was the Kony 2012 video was a success not simply because of Facebook, but because of the collective social effect it was designed to leverage– 86.6MM views on Vimeo and Youtube (and counting), a How unfortunate to be the community managers for the brands advertising on viral slingshot of tweets (many by highly followed celebs), Rush in early March. An absolutely blitz by angry consumers quickly convinced Facebook’s 1.4MM likes, the mass media picking it up, over 44 advertisers to withdrawal support from Rush’s show. For those brands who etc. The point is that without all of these other social didn’t act quickly, it got ugly. So ugly that most brands pulled public-facing Appendix platforms in conjunction with Facebook, Kony 2012 would comments and tweets in the short term and continued with their planned tweets most likely not have become the sensation it was. and posts as planned. It was absolutely cringe worthy as it was clear many brands weren’t ready to deal with the shitstorm. Rush has said salacious comments before, but it’s the wide spread adoption and inherent comfort level the masses feel towards social media, the fact it targeted women who are avid and vocal users of social, and the ease at which you could share your opinion directly with the brands you wanted to made this particular comment have more dire consequences. http://nyti.ms/HfQf8y http://read.bi/HalOAQ http://nyti.ms/HfQpNd http://abcn.ws/HfQ64X BACK
  99. 99. Appendix THE IMPETUS FOR THIS PRESENTATION. This past November I took a leap of faith and went to a startup I truly think can help people. Prior to joining BrainSport, I was the Digital Strategy Director/ Creative Innovation Director at TBWAChiatDay. I had the unique privilege to work across some amazing global, Fortune 500 brands. I submitted this topic last July in pure frustration late one night from work. We had just been presented a deck from Facebook claiming brand sites would soon be replaced by Facebook. I was sick of writing presentations and strategies I didn’t believe in. They were becoming formulaic as we kept hitting up against the same anti-social realities most large brands encounter (moderation, legal restrictions on UGC, no staff to manage, etc.) I sat through multiple presentations from Facebook across multiple clients with a swapped client logo, the same vocabulary, the same false promises, the same self-centeredness, the same ideas and overstepping of bounds, and the same bully tactics. I’ve been lucky enough to work with and befriend some of the most genius and creative minds in the advertising and marketing world. I consistently witnessed their talent go down the drain as Facebook provided them with the ugliest, least inspiring, constricted and rigid canvas to paint upon. We were waisting their time on ideas that will never be worthy of more than a shallow ‘like.’ And I quite frankly who better? An overwhelming majority of so-called social media actually have never planned and executed a social campaign in their life. I’ve done more social than is probably healthy. Appendix BACK
  100. 100. Appendix A FEW CAVEATS. These points are simply my opinions based on both past and present experiences. However, I wanted to highlight two points that go beyond opinion to fact. 1. Pew & Mashable Under the Spell: I’ve purposely stayed away from including research from Pew & Mashable within this deck because I believe Mashable has lost objectivity when it comes to Facebook as there hasn’t been a strong negative editorial on Facebook in months–months filled with changes and mistakes. Additionally, I wouldn’t be surprised if some of the ridiculous studies coming from Pew weren’t somehow funded silently by Facebook as they are doing a slew of research with social media and nearly every study showcases Facebook as a hero. All of their social studies live here if you’re interested in checking it out: http://bit.ly/H9RhV7. 2. Bad Data & Misinformation: Somewhat dovetailing with the point mentioned above, there is an incredible amount of misinformed data being syndicated online. Having been up to my ears in Facebook to an even greater degree for the past few months, it’s been startling for me to see what’s omitted in the research Facebook and their partners publish. I’ve purposefully tried to stick to the same few research sources throughout this presentation in an attempt to have a consistent baseline. I have a myriad of studies that are incongruous and/or only telling half the story. However, my point in highlighting my experience is to bring awareness and ensure others begin to pay closer attention to sources & methodology and to think deeper on what other questions my be left outstanding. One final note, Red Bull & Apple aren’t the only brands doing things correct. However, they are two great examples who have been doing it right before the Facebook-era, during Facebook’s era, beyond Facebook’s platform, and will continue to develop lasting bonds with their customers in the post-Facebook era. Appendix BACK
  101. 101. REASON 1: WE’RE EXPERIENCING A SOCIAL-CARGO-CULT AND IT’S DISTORTING THE LANDSCAPE
  102. 102. Appendix WHY IS UNDERSTANDING “CARGO CULT” IMPORTANT? I spent a majority of time here because the principle is somewhat laced throughout all five reasons to stop investing in Facebook. It gets to the root of why my definition of “social” or “engagement” will most likely be significantly different than the definitions provided by a brand, a marketer, a CMO, a Facebook sales rep, etc. Additionally, I believe looking at constructs of the past and applying them to the future is simply wise. It provides a means to navigate technological innovation when the new is so new that no one truly can be an expert–especially in moments where we cannot be certain how the masses will respond without actually giving them time to respond. Appendix NEXT
  103. 103. Appendix A DEEPER DIVE INTO WHAT A CARGO CULT IS... What is a “cargo cult”? The term refers to the real-life ethnological phenomenon of what happens when a technologically primitive society comes in contact with a technologically more advanced society. The term is used to describe anyone else who imitates or mimics superficial features of a system (in this case, military logistics) and hopes to replicate the original's success, without any thought or understanding of the intrinsic workings of the system. (Think the Gods Must Be Crazy or Digital Non-Natives colliding with Digital Natives.) What is the most famous occurrence of cargo cult in history? During WWII, partly because of the limitations of aircraft of the time, several airbases were needed in the many South Pacific islands like Papua New Guinea and Melanesia so that bombers could refuel and such. The natives of these island lived primitively with absolutely no technology or outside influences. One day, out of the sky, planes began dropping the most modern, progressive innovations literally on top of them on a daily basis. The Allies shared this technology with the hospitable natives. However, when the war ended several years later, we left as suddenly as we had arrived. Military bases were abandoned and the steady flow of cargo which had altered the Islanders’ lives completely dried up. The men and women of Tanna Island had grown to enjoy the radios, trucks, boats, watches, iceboxes, medicine, Coca-Cola, canned meat, and candy, so they set into motion a plan to bring back the cargo. They believed they had surreptitiously learned the secrets of summoning the cargo by observing the practices of the American airmen, sailors and soldiers. So, they made an understandable mistake: they began mimicking the behavior of their military visitors and started crafting makeshift airfields, headphones, and even signal towers, out of things like bamboo and indigenous trees, eagerly waiting for another shipment. Renowned physicist Richard Feynman coined the phrase “cargo cult science” based on such cults. The term draws a metaphor for research which is polluted by the mind’s tendency to cherry-pick evidence that supports the desired outcome. Though it is tempting to look down on these islanders for their misguided assumptions, they are simply an extreme example of this very human bias. For them it was easier to believe that the control towers, headsets, and runways were the cause of the cargo- Appendix carrying airplanes rather than an effect, so they closed their minds to alternative explanations. What is the most modern day resurgence of Cargo Cult besides the one occurring within social media? Modern design, especially web design, information architecture and interaction design. In their worse misapplication, design patterns can lapse into a sort of Cargo Cult, in which past structures and layouts and flows are imitated and reproduced with no real understanding of how or why they worked in their original context. http://bit.ly/HEJziZ NEXT
  104. 104. Appendix A DEEPER DIVE INTO WHAT A SOCIAL CARGO CULT IS... What is a Social Cargo Cult? The original Cargo Cults were people overawed by more advanced technology (in the famous case of World War II era aviation artifacts) who began imitating the forms of what they saw (wooden radio towers, torch-lit runways, counterfeit uniforms) in hopes of bringing the benefit ("cargo") that they had witnessed flowing from these same rituals and objects in the past. The modern-day Social Cargo Cults are the behaviors of people [brands, marketers and most advertising agencies] overawed by more advanced technology [in this case the surge of activity within social, Facebook jaw-dropping numbers, the overnight billionaires living the American Dream, and all the sexy VC & start-up sizzle that comes with it] who began imitating and mimicking the forms of what they saw [in this case the social jargon created by Facebook and so-called social media experts, meaningless, intangible vocabulary, words not backed up matching actions, efforts with no return communicated as successful, the hype in the press, the words other CMO’s are using, the rhetoric spewed in the speeches they are giving at social starf*cking conferences, etc.] in hopes of bringing the benefit [fame, awards, glory, peer recognition, career growth, earned media, and perhaps a true connection with fans] that they had witnessed flowing from these same rituals and objects in the past [by other brands in the past]. A Social Cargo Cult occurred when inexperienced social media ‘gurus’ and Facebook’s massive marketing tidal wave collided to create a social vocabulary adopted and mimicked by marketers. As a result, nearly every marketer can speak social, but most do not know what the hell they actually mean. Marketers are imitating or reproducing the social efforts of others with no real understanding of why it worked or what it meant in its original context. Appendix NEXT
  105. 105. Appendix A SOCIAL CARGO CULT IS RESPONSIBLE FOR THINGS LIKE: A brand opening a Facebook page and spending millions in advertising, but having an intern managing it. A brand creating a Facebook app that crops photos somehow, but that fans never touch. Yet, Adweek still features them in an article, and the CMO can point to it as evidence of their digital brilliance. A marketer speaking at an AMA conference about the benefits of social media although never successfully executing a social campaign ever and/or not having one metric besides likes to prove it. A Social Cargo Cult occurs when a marketer says their primary objective on Facebook is to drive sales (35%) but in reality they can’t prove that metric so they fall back to likes (60%). Or when a marketer says a critical marketing objective is building and fostering a community via engagement on Facebook, but less than 2% of a brand’s Facebook fans engage with their page on average. And it’s this... (P&G laying off a bunch of people because their CMO believes social is more efficient with little to no evidence on how besides pointing to Old Spice’s earned media impressions. On a side note, Facebook sourced success with P&G in an update to their IPO filing...very interesting indeed.) Appendix http://bit.ly/HGO0NS http://bit.ly/HEfI8G NEXT http://bit.ly/HGNpvF http://read.bi/HEJsnR http://read.bi/HBSfJu
  106. 106. Appendix SYMPTOMS OF A SOCIAL CARGO CULT. Social simulation plagued by a lack of depth of knowledge, understanding, or experience by marketers requesting work from agencies, while at the same time turning to Facebook salespersons for social advice, has created a digital environment where most brands: Believe the same --> Facebook’s never-ending advice syndication and direct brand engagement coupled with inexperienced social gurus has led to the dissemination of consistent misinformation See the same --> Theoretical social experts’ ramblings take this misinformation and syndicates it to make matters worse Say the same --> So now we all begin to simulate what we see and read and begin speaking the same jargon Do the same --> Facebook’s inflexibility, the brand’s aversion to risk and loss of control, and emulation result in the same dumb, forced social executions Spend the same --> Bullied by Facebook, brands follow the platform’s recommendations, which don’t necessarily help generate revenue for their brand but do make Facebook a sick amount of money Appendix http://bit.ly/HS0BHG NEXT http://bit.ly/HS0Jal

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