the business of social media


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Presentation to Universidade Católica Portuguesa (Catholic University of Portugal) Social Media Program, Lisbon, Portugal
This presentation explores the business of social media from multiple viewpoints with both a global and Portuguese perspective

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  • Universidade Católica Portuguesa(Catholic University of Portugal)Social Media ProgramThe Business of Social MediaLisbon, PortugalApril, 2012
  • TAP Portugal (Portuguese Airline Company)In my opinion, TAP is a very interesting case of success resulting from trial-and-error, and there is a lot to explore in their use of social media. Let me try to sum it up for you. In December 2009, TAP organized its first flashmob, wishing its passengers Merry Christmas, and surprising the public who was used to see TAP as a traditional organization. The posting of this video on YouTube was part of a strategy to refresh the company’s image and reposition it as able to compete with low cost companies, following TAP’s rebranding in 2005. January 2010, news about TAP pilots posting negatively about TAP on their personal Facebook pages hit the news, but the company was able to revert the negative buzz by announcing that its staff would have to attend a seminar on ethical use of social media. At the same time, TAP created its own profile page on Facebook, later updated to a Fans page. May 2010, when the volcano in Iceland filled the European airspace with ashes, TAP’s spaces and call center became swamped with questions and doubts about the flights, reimbursements and the like. And the customers naturally turned to its Facebook profile for help, as they already associated TAP with presence in social media. TAP’s marketing department, which ran the Facebook page mainly with information and product campaigns, created a joint taskforce with the call center and provided an excellent service in updating news about the flights and answering questions. Thus, TAP has tried out different social media to better reach its customers and has successfully dealt with social media crisis. TAP on Facebook:’s website:
  • - Banco Espírito Santo (‘I’m going to shoot an advertisement with Ronaldo’ Campaign)This campaign took place in May 2010 and it is one of the best known examples because it features Cristiano Ronaldo. Ronaldo has been ‘the face’ of Banco Espírito Santo (BES) since 2003, and the bank got lucky because he later became one of the best football players of the world. This particular campaign conducted auditions through videos posted on its website, looking for skilled amateurs who wanted to participate in BES’ next TV commercial with Ronaldo. Although it didn’t resort to social media directly, the videos, the auditions, backstage filming and the final result were widely posted on YouTube and Facebook and shared and commented in social media.The campaign’s website:’ website:’ Facebook Page:
  • Absolut had reached capacity on the guest list within 48 hours of launching & announcing this feature and had to update our digital communications to focus primarily on the daytime eventThe day of the event Absolut also leveraged the downtown Toronto bluetooth network (with 25 transmitters) to push messages to devices that were bluetooth enabledAbsolut also setup a one-off mini-network near the venue itself and overall we had 7% opt-in to our messagesAbsolut Vodka created this campaign to promote sales and a special one day event that would happen in a secret and exclusive location. Harbinger for PR, Vision for event management, BSTREET for digital & retail
  • Target audience: Females aged 25-34Goal: Increase awareness of Green WorksVarious incentives offered for visiting Facebook page “The engagement rate with our coupon within the Facebook environment was much higher than previous digital coupon campaigns we have run in other apertures,” says Scott Iason, Clorox’s Group Manager, Media Investments.
  • The story Nike wanted was that a father and son were watching the Champion's League Final, father says, "Wow, that's the most amazing ad I've ever seen!", and the son responds, "Yah, I saw it this morning and I've already shared it with all of my friends!”"What Facebook enables is translating [advertising] into a connection and that connection allows a continuous relationship.”
  • In celebration of the 30th anniversary of its AAdvantage loyalty program, American Airlines ran a Twitter contest called “Tweet to Win 30K Miles.”“Given a valuable enough incentive, users will complete several registration steps for entry. The requirement to share a specific tweet and hashtag to an entrants own social network is what drove the success of this promotion, especially given that it wasn’t heavily supported by other media channels. In the future, we’d probably require that users take fewer steps for entry in order to increase the total number of entrants. Including a specific and unique hashtag was essential for tracking purposes.”AAdvantage community manager Colin Alsheimer
  • igniting the conversation with early screenings, a second Promoted Trend ran the day of the film’s premiere to keep the buzz and excitement high.
  • “Twitter allows us to emotionally connect with our audience by conversing with them in such an immediate and relevant way,” explains Lou D’Angeli Director of Marketing and PR, Cirque Du Soleil, Resident Show Division/North America du Soleil also had success with its Promoted Tweets campaign — its Zarkana promotion on Twitter experienced a higher return compared to some of the more traditional forms of marketing 
  • "We saw numerous Tweets with an intent to purchase Wispa Gold — this is because Twitter satisfies the immediacy of disseminating temporal thoughts and information." Jerry Daykin, Social Media Manager at Cadbury
  • Blue Shirt Nation, Sponsored by company, outside the firewallHere we have a robust community of people with a common interest, Best Buy. They share knowledge, best practices, frustrations, aspirations and jokes.(Play video)Within a year 20,000 of them have signed up. All have come to the site from referrals or through word of mouth. Out of 140,000 employees (almost all young), they had a 30 percent increase in people signing up for 401(k) accounts.
  • the business of social media

    1. 1. the business of social media Universidade lica Portuguesa Formação Avançada em Media Sociais April 24, 2012 Joel PostmanCopyright 2012 – 2013, Joel Postman & Socialized PR
    2. 2. six valuable attributes of social media Authenticity Sharing Transparency Connection Immediacy ParticipationCopyright 2012 – 2013, Joel Postman & Socialized PR
    3. 3. what is our microsoft word strategy? social media strategy?Copyright 2012 – 2013, Joel Postman & Socialized PR
    4. 4. business > communications > social media business & communications goals drive social media strategy/tactics business • grow revenue • enter new markets • grow brand equity • rebrand communications • communicate strategy • generate leads • generate traffic social media • facebook • twitter • youtube • blogs, communities, etc….Copyright 2012 – 2013, Joel Postman & Socialized PR
    5. 5. social media marketing sales cycle Awareness ✔ ✔ ✔ Consideration ✔ ✔ Preference ✔ Purchase Loyalty ✔ ✔Copyright 2012 – 2013, Joel Postman & Socialized PR
    6. 6. small business social media investment • Small businesses now prefer Facebook over Google • foursquare use has risen from 2% to 9% in past year • 6.6% have offered a “daily deal” using Groupon, with 13% planning to do so • 72% spend less than $5000 annually on social media marketingCopyright 2012 – 2013, Joel Postman & Socialized PR
    7. 7. fortune 500 social media investment • 114 companies had a corporate blog, down from 116 in 2010 • 62% of Fortune 500 firms have a Twitter account, up 2% from 2010 • 58% have a Facebook page Copyright 2012 – 2013, Joel Postman & Socialized PR
    8. 8. internet trends in portugalCopyright 2012 – 2013, Joel Postman & Socialized PR
    9. 9. têm acesso à internet formas de utilização de internet Carat MRA – Media Regular Analysis, October 2011Copyright 2012 – 2013, Joel Postman & Socialized PR
    10. 10. perfil do utilizador internet Carat MRA – Media Regular Analysis, October 2011Copyright 2012 – 2013, Joel Postman & Socialized PR
    11. 11. produtos/serviç os que já adquiriram na internet Carat MRA – Media Regular Analysis, October 2011Copyright 2012 – 2013, Joel Postman & Socialized PR
    12. 12. top 20 domínios na internet Carat MRA – Media Regular Analysis, October 2011Copyright 2012 – 2013, Joel Postman & Socialized PR
    13. 13. a few of portugal’s web 2.0 startups mashmush: music mashups guestcentric: revenue generation and product advice sharing booking engine for hotels weduc: community education platform tuaZona: social review weebiz: sharing business opportunitiesSee for more portuguese web 2.0 startups Copyright 2012 – 2013, Joel Postman & Socialized PR
    14. 14. portugal’s top 10 facebook pages 2012 – 2013, Joel Postman & Socialized PR
    15. 15. world’s top 10 facebook pages 2011Copyright 2012 – 2013, Joel Postman & Socialized PR
    16. 16. Copyright 2012 – 2013, Joel Postman & Socialized PR
    17. 17. social network valuations baffle some • Facebook valued at $70B - $100B, IPO near − Microsoft’s $250M investment valued the firm at $15B in 2007 − Acquired Instagram for $1B • Twitter $10B − Biz Stone says no to $5B in Nov. 2010Copyright 2012 – 2013, Joel Postman & Socialized PR
    18. 18. how much are you worth? Copyright 2012 – 2013, Joel Postman & Socialized PR
    19. 19. how many users make a $10b network? Copyright 2012 – 2013, Joel Postman & Socialized PR
    20. 20. from $580M to marginal relevance • 2005: News Corp. buys MySpace for $580M, loses money consistently on dropping search and ad revenue • June 2009: 720 jobs cut globally • Sept. 2010: Twitter surpassed MySpace in unique visitors to become the No. 3 social network. Twitter grew 76%, MySpace declined 17% from the previous year • Jan. 2011: 500 jobs cut, 47% of workforce • Feb. 2011: News Corp. puts MySpace up for sale • Graphical anarchy, lack of relevance, no longer the “cool” network, though musicians still very favorableCopyright 2012 – 2013, Joel Postman & Socialized PR
    21. 21. social media case studies Universidade lica Portuguesa Formação Avançada em Media Sociais April 24, 2012 Joel PostmanCopyright 2012 – 2013, Joel Postman & Socialized PR
    22. 22. tap portugal • Flashmob Christmas 2009 Lisbon Airport, posted to YouTube, continuation of 2005 rebranding, competing with lower cost airlines • 2010 TAP pilots post negatively on personal pages. TAP announces ethics training for employees and creates own page to respond • Facebook page became information hub for customers and families when Icelandic volcano closed European airspace • Tap has used social media to improve image, compete, help customers and deal with pilots’ complaintsCopyright 2012 – 2013, Joel Postman & Socialized PR
    23. 23. banco espírito santo make a commercial with ronaldo (2010) • Skilled amateurs invited to audition for next Ronaldo commercial via BES web site • Videos posted on YouTube, and Facebook, shared through other social media • Merged “real-life” customers and fans with BES’ online world • Capitalized on popularity of RonaldoCopyright 2012 – 2013, Joel Postman & Socialized PR
    24. 24. baskin robbins’ borderless destinations Baskin Robbins’ virtual destination Copyright 2012 – 2013, Joel Postman & Socialized PR
    25. 25. absolut vodka pops-up • Launch of Absolut micro-site • Tie-in with Justin Broadbent’s blog • Via Absolut Canada website • A Facebook profile page acting as an event teaser • Twitter account @absolutcanadaCopyright 2012 – 2013, Joel Postman & Socialized PR
    26. 26. coca-cola face look • Campaign in Israel using Facebook face recognition technology • Campaign is called Face Look • Users log in to any of the machines that Coke placed around theme parks using their face as ID, and then use Facebook profile to engage in the real worldCopyright 2012 – 2013, Joel Postman & Socialized PR
    27. 27. clorox green works “army of advocates” • Clorox offered a $3 off coupon for visiting the Facebook page; raised intent to purchase 7% • Record breaking engagement rate was later correlated to a 12% increase in brand awareness in a Nielsen study • More than 20,000 fans submitted comments and voted for charitable causes as well • Over 33% of Clorox’s Facebook visitors for 2010 can be directly linked to thisCopyright 2012 – 2013, Joel Postman & Socialized PR
    28. 28. nike football: connecting with fans • Three-minute film, first available to fans of Nike Football on Facebook • Goal: father & son watch game, father says he likes the video, son says he already saw it and posted it on Facebook • Over 11M Likes on Facebook • Over 172K active conversations about Nike FootballCopyright 2012 – 2013, Joel Postman & Socialized PR
    29. 29. american airlines: deal 30 • 30th anniversary, win 30K miles, 30 partner deals and promotions over 30 weekdays • Microsite promoted a new daily partner deal or promotion • Participants register their AAdvantage number, tweet the #Deal30 hashtag and follow the @AAdvantage account to enter for a chance to win 30,000 Aadvantage miles • In first week, microsite gained nearly 18,000 clicks via Twitter • The @AAdvantage Twitter account experienced a 70% increase in followers • Overall, retweets on Twitter increased 43% • Deal 30 microsite garnered more than 27,000 registrationsCopyright 2012 – 2013, Joel Postman & Socialized PR
    30. 30. paramount: buzz & box office results for “super 8” • Paramount used a single Tweet combined with a Promoted Trend to exclusively announce early screenings a full day in advance of the premiere • Twitter exclusive sneak previews generated $1 million in box office receipts • Receipts for the opening weekend surpassed expectations by 52%Copyright 2012 – 2013, Joel Postman & Socialized PR
    31. 31. cirque du soleil & promoted accounts • Cirque du Soleil used Twitter’s Promoted Accounts to grow its follower base • Engaged with users in real-time to answer questions about upcoming shows and to get feedback about past performances • Cirque du Soleil gained on average, over 360 followers per day directly from Promoted Accounts • During the promotion, it also gained over 340 followers per day, nearly double the number of followers it gained on a daily basis before Promoted AccountsCopyright 2012 – 2013, Joel Postman & Socialized PR
    32. 32. cadbury “retweet for sweets” • Promoted Tweets tied to Promoted Trend and offered “Retweet for Sweets” challenge • Twitter users could win a box of Wispa Gold if Wispa retweeted their completed Tweet: “I love #WispaGold because _____.” • Twitter Promoted Account with targeted keywords like • Promoted Account launch: positive mentions of the chocolate, confectionery, caramel and Wispa chocolate bar increased 116% over the previous day • Used Promoted Tweets in search and in timelines • Promoted Trend launch: positive mentions of the with a link to a video of DJ Paul Oakenfold’s remix of brand increased 1,800% Spandau Ballet’s “Gold” • “Reweet for Sweets” challenge from the Promoted • With Twitter followers beginning to tweet about Wispa Trend had a 25% engagement rate Gold’s return, Cadbury launched a mass awareness • Paul Oakenfold’s remix of “Gold” was the most campaign with a Promoted Trend using the hashtag watched in Cadbury’s Keep Singing, Keep TeamGB #WispaGold Pumped video seriesCopyright 2012 – 2013, Joel Postman & Socialized PR
    33. 33. british midland international pinterest lottery • A game of numbers and chance • Consumers had to repin BMI destinations (each was labeled with a number on the BMI boards) to their own boards • Then, BMI chose six random numbers and the consumer with that combination on their board would win • More than 3,000 entries in the first two weeks aloneCopyright 2012 – 2013, Joel Postman & Socialized PR
    34. 34. land’s end pin it to win it • Lands End Canvass holiday season "Pin It To Win It" campaign asked users to create a Pin It To Win It pinboard • Pin 10 to 20 images from the Lands End site or repin them from the Lands End Pinterest page • Email the URL of your pinboard to Lands End for a chance to win a $250 gift cards • Around 200 boards created for the contest, 10-20 images on average • Lands End merchandise images and links injected into the Pinterest feed at no cost to Land’s EndCopyright 2012 – 2013, Joel Postman & Socialized PR
    35. 35. kotex: “the first real pinterest marketing campaign” • Kotex sent out 50 custom gift boxes to women on Pinterest • Women who received the gifts posted about them on Pinterest, Facebook, Twitter, and Instagram • Saw over 2,000 interactions that created close to 695,000 impressionsCopyright 2012 – 2013, Joel Postman & Socialized PR
    36. 36. lufthansa eurovision badge • Eurovision Song Contest is the worlds most viewed non-sporting event (40 participating countries) • Lufthansa created a special partner badge for the occasion, cross-promoted by Eurovision • Over 10K around the world unlocked the badge • Lufthansa page now has over 50K followers • Page provided timely reminders of their local knowledge to travelers & fans worldwideCopyright 2012 – 2013, Joel Postman & Socialized PR
    37. 37. MTV’s gym tan laundry (gtl) & video music awards badges • MTV launched a brand page and unique badge campaigns, connecting the most popular shows & events to real world people • MTV has the most popular foursquare page, over 250K fans • Over 12,000 users unlocked the GTL badge; 10,000 unlocked the Video Music Awards Moonman badge in under two weeks • MTVs most popular reality stars use their foursquare badge page to leave Tips in places relevant to their charactersCopyright 2012 – 2013, Joel Postman & Socialized PR
    38. 38. mcdonald’s foursquare day • McDonalds also hosted a one-day check-in campaign • Randomly selected 100 people who checked in to receive $5 & $10 gift cards • Check-ins up 33% from the previous day (on day of campaign) • Check-ins remained high during the following week, 40% increase • Campaign resulted in 50+ articles & blog posts • Over 600,000 new fans and followers • 99% positive feedbackCopyright 2012 – 2013, Joel Postman & Socialized PR
    39. 39. best buy: blueshirtnation • Blue Shirt Nation, sponsored by company, outside the firewall • A community of people with a common interest sharing knowledge, best practices, frustrations, aspirations and jokes. • Within a year 20,000 signed up. All have come to the site from referrals or through word of mouth. • Among younger employees, Best Buy had a 30 % increase in people signing up for 401(k) retirement accounts.Copyright 2012 – 2013, Joel Postman & Socialized PR
    40. 40. summary: effective social media • Consumers become part of the brand • Often uses multiple media • Unique content/access • Rewards • Delivers business and social results • Tied back to business and communications strategyCopyright 2012 – 2013, Joel Postman & Socialized PR
    41. 41. facebook/postman @jpostmanCopyright 2012 – 2013, Joel Postman & Socialized PR