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Ron Jacobs [email_address] Is Social Media Marketing the New Direct Marketing? Or, is Social Media just stealing our souls...
<ul><li>Ron Jacobs </li></ul><ul><li>President, Jacobs & Clevenger </li></ul><ul><li>Co-Author, Successful Direct Marketin...
Agenda <ul><li>The need to redefine Direct Marketing </li></ul><ul><ul><li>Direct Marketing is Interactive, Interactive Ma...
Direct Marketing How do you define it?
Direct marketing  is a form of  advertising  that reaches its audience without using traditional formal channels of advert...
Most definitions of Direct Marketing don’t reflect contemporary usage <ul><li>Ron J.’s definition </li></ul><ul><ul><li>In...
Bob Stone didn’t try to define Direct Marketing, so much as describe what it does
We can agree on many aspects of what Direct Marketing Strategies should include <ul><li>Use of (multiple) channels for com...
So, how is Social Media Marketing different than Direct Marketing? <ul><li>Multiple, individual voices that choose to enga...
New thinking, a new lexicon.  Not campaigns… curation Not ads… dialogues.  Not awareness & interest… behavior.  Reputation...
Curation enables consumers to become collaborators
Media Vs Channels It’s about effectiveness, not efficiency
Channels work together, but play their own roles
Paid Media
Crispin Porter + Bogusky’s Social Home Page
Owned Media … A Brand Channel
Kogi BBQ… Twitter for traffic building and CRM
Kogi BBQ… Twitter for traffic building and CRM
Earned Media… Angie’s List
Earned Media… Angie’s List
Marketers (and Agencies) need to show accountability & effectiveness, not just measurement  <ul><ul><li>Everything has a  ...
Key Performance Indicators (KPIs) can help measure everything <ul><li>1. Business contribution: </li></ul><ul><li>Channel ...
Marketing Dashboards. The visual display of metrics. <ul><li>Marketing Dashboards  graphically display KPI’s in main categ...
Social Media It’s already being by brands to optimize marketing
Businesses are taking social marketing seriously <ul><ul><li>The number of photos archived on Flikr.com as of June 2009 </...
Businesses are taking social marketing seriously <ul><ul><li>The amount of video uploaded to YouTube every minute </li></u...
The Social Graph… Conversations are occurring around every category, brand, and the entire buying process <ul><ul><li>Wher...
Online data begins to unlock the riddle of prospects & customers  <ul><li>Social monitoring merges with Web analytics </li...
Combining social/online data and offline data is a key to micro-targeting <ul><li>Social Data </li></ul><ul><li>Social Sit...
Facebook is creating and capturing large amounts of data Facebook has 500 million active users 50% of active users log on ...
Google’s data mining benefits their advertisers 79 million US Gmail Accounts Google has 145 million unique US visitors 1 b...
Rapleaf, data mining the social space <ul><li>Rapleaf Data Mines </li></ul><ul><li>Who  – demographics </li></ul><ul><li>W...
YOUR AD HERE YOUR AD HERE Marketers can target ads based on social data today Target: -Existing fans/followers -Friends of...
Bringing Social Media Marketing to life  Alterian Buzz Bowl
Alterian’s Social Engagement Index 2011 Super Bowl TV Ads www.alterian-social-media.com/
Alterian’s Social  Sentiment Engagement Index 2011 Super Bowl TV Ads www.alterian-social-media.com/
How much is a tweet, a fan or a follower worth?  Cost Per Social Impression www.alterian-social-media.com/
Ads effect Mobile as well, which is growing faster than predicted <ul><li>Mobile searches related to Chrysler, a Super Bow...
Conclusions <ul><li>Direct Marketing, like all marketing, is effected by social media marketing </li></ul><ul><li>Social M...
Questions & Answers Questions?
Thank You! [email_address]
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Is social media the new direct marketing - 3 march 2011 -- slideshare

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No one believes that Social Media Marketing is the new Direct Marketing, but it is making an impact everything that we do. Social Media Marketing's ability to capture huge amounts of data, is something that every marketer should be aware of, no matter if they choose to take advantage of it or not. This presentation was given to the Detroit Direct Marketing Association on 3 March 2011.

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Is social media the new direct marketing - 3 march 2011 -- slideshare

  1. 1. Ron Jacobs [email_address] Is Social Media Marketing the New Direct Marketing? Or, is Social Media just stealing our souls? A Presentation for direct mail? data? search? Email? web?
  2. 2. <ul><li>Ron Jacobs </li></ul><ul><li>President, Jacobs & Clevenger </li></ul><ul><li>Co-Author, Successful Direct Marketing Methods </li></ul><ul><li>Sponsor, Ron Jacobs & Bob Stone Multichannel Marketing Communications Certificate Program, DePaul University </li></ul>
  3. 3. Agenda <ul><li>The need to redefine Direct Marketing </li></ul><ul><ul><li>Direct Marketing is Interactive, Interactive Marketing is Direct (Stan Rapp) </li></ul></ul><ul><li>How Direct Marketing and Social Media Marketing overlap </li></ul><ul><li>How Social Media Marketing is creating data </li></ul><ul><li>The importance of establishing Key Performance Indicators </li></ul><ul><li>Explore attribution models for multichannel marketing communications </li></ul>http://vimeo.com/10251808
  4. 4. Direct Marketing How do you define it?
  5. 5. Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. Direct Advertising is a sub-discipline and type of marketing . There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it sends its message directly to consumers , without the use of intervening commercial communication media . The second characteristic is the core principle of successful Advertising driving a specific &quot;call to action.&quot; This aspect of direct marketing involves an emphasis on trackable, measurable, positive responses from consumers (known simply as &quot;response&quot; in the industry) regardless of medium. If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a Web site, then the effort is considered to be direct response advertising. Direct marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognized brand message. A well-executed direct advertising campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to get the offered product, service, or event.
  6. 6. Most definitions of Direct Marketing don’t reflect contemporary usage <ul><li>Ron J.’s definition </li></ul><ul><ul><li>Interactive use of advertising media, to stimulate an (immediate) behavior modification, in such a way that this behavior can be tracked recorded and analyzed, then stored in a database for future retrieval and use </li></ul></ul><ul><li>Larry Kimmel’s definition (Pres. DMA) </li></ul><ul><ul><li>The channel agnostic approach to driving maximum customer satisfaction and optimal marketplace results </li></ul></ul><ul><li>DMA’s definition </li></ul><ul><ul><li>An organized and planned system of contacts </li></ul></ul><ul><ul><li>Using a variety of media </li></ul></ul><ul><ul><li>Seeking to produce a lead or an order </li></ul></ul><ul><ul><li>Developing and maintaining a database </li></ul></ul><ul><ul><li>Measurable in cost and results </li></ul></ul><ul><ul><li>Expandable with confidence </li></ul></ul>
  7. 7. Bob Stone didn’t try to define Direct Marketing, so much as describe what it does
  8. 8. We can agree on many aspects of what Direct Marketing Strategies should include <ul><li>Use of (multiple) channels for communication and response </li></ul><ul><li>Segment customers </li></ul><ul><ul><li>Demographics, psychographics, behavior, proximity, etc. </li></ul></ul><ul><li>Individually addressable communications </li></ul><ul><ul><li>Focused content, discrete offers, calls to action </li></ul></ul><ul><li>Relevant interactions </li></ul><ul><ul><li>Response, conversion, leads, etc. </li></ul></ul><ul><li>Create sustainable relationships </li></ul><ul><ul><li>Beyond likes, fans, friends and followers </li></ul></ul><ul><li>Capture, analyze and use data </li></ul><ul><li>Measureable and scalable results </li></ul><ul><ul><li>Lifetime value, ROMI, business centric goals, best practices </li></ul></ul>
  9. 9. So, how is Social Media Marketing different than Direct Marketing? <ul><li>Multiple, individual voices that choose to engage </li></ul><ul><li>Conversational tone </li></ul><ul><ul><li>Not controlled by the brand </li></ul></ul><ul><li>Transparent & searchable </li></ul><ul><ul><li>Users choose touch points </li></ul></ul><ul><li>Unique to the personality of prospects & customers </li></ul><ul><li>Meets brand objectives </li></ul><ul><li>Partial customer engagement </li></ul><ul><li>Evaluate advocates, influentials </li></ul><ul><li>Customers and prospects are targeted </li></ul><ul><li>Communications & tone are controlled by the brand </li></ul><ul><li>Single, outbound voice </li></ul><ul><ul><li>Across all touch points </li></ul></ul><ul><li>Reflects the personality of the brand </li></ul><ul><li>Meets business objectives </li></ul><ul><li>Full customer engagement </li></ul><ul><li>Evaluate with analytics </li></ul>Direct Marketing Social Media Marketing
  10. 10. New thinking, a new lexicon. Not campaigns… curation Not ads… dialogues. Not awareness & interest… behavior. Reputation Sentiment Experience Collaboration Engagement Relevance Authenticity Transparency Accountability Agility Behavior Like, Friend Curation Immersion Emotion Brand Consumer
  11. 11. Curation enables consumers to become collaborators
  12. 12. Media Vs Channels It’s about effectiveness, not efficiency
  13. 13. Channels work together, but play their own roles
  14. 14. Paid Media
  15. 15. Crispin Porter + Bogusky’s Social Home Page
  16. 16. Owned Media … A Brand Channel
  17. 17. Kogi BBQ… Twitter for traffic building and CRM
  18. 18. Kogi BBQ… Twitter for traffic building and CRM
  19. 19. Earned Media… Angie’s List
  20. 20. Earned Media… Angie’s List
  21. 21. Marketers (and Agencies) need to show accountability & effectiveness, not just measurement <ul><ul><li>Everything has a Key Performance Indicator (KPI), but cross-channel activity makes measurement and attribution harder </li></ul></ul><ul><ul><li>Relevance </li></ul></ul><ul><ul><ul><li>How marketing adds value to the business </li></ul></ul></ul><ul><ul><li>Alignment </li></ul></ul><ul><ul><ul><li>Proof that marketing is focused on the success of the business, not the size of its budget </li></ul></ul></ul><ul><ul><li>Rigor </li></ul></ul><ul><ul><ul><li>A fact-based, disciplined approach to strategy and execution </li></ul></ul></ul><ul><li>Without the above, Marketing gets The ROI Question </li></ul><ul><ul><li>This is Finance’s way of asking “Can Marketing be trusted to spend the company’s money wisely?”  </li></ul></ul>
  22. 22. Key Performance Indicators (KPIs) can help measure everything <ul><li>1. Business contribution: </li></ul><ul><li>Channel reach, revenue contribution (direct and indirect), Return On Investment (or ROMI), category penetration, costs and profitability. </li></ul><ul><li>2. Marketing outcomes: </li></ul><ul><li>Customers, leads, sales, service contacts, conversion, retention, winback and response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value. </li></ul><ul><li>3. Customer satisfaction: </li></ul><ul><li>Usability, performance/availability, recommendation behavior. Opinions, attitudes, reasons for defection, brand impact and churn. </li></ul><ul><li>4. Customer behavior : </li></ul><ul><li>Profiles, customer orientation (segmentation), usability, clickstream and site actions. Bounce rates, conversions, page views, depth, page & site duration, RFM and transaction behavior. </li></ul><ul><li>5. Channel promotion: </li></ul><ul><li>Attraction efficiency. Referrer efficiency, cost of acquisition and reach. CPM Vs CPC. Search engine visibility and link building. Unique visitors, frequency, e-mail marketing results. Channel integration. </li></ul><ul><li>6. Social media: </li></ul><ul><li>Engagement (e.g. # of comments); involvement (e.g. time spent); bounce rate; # of reads, comments, & posts; brand affection/aversion; conversions; mention of brand name; advocacy; viral activity; referrals; recommendations; multiple moving averages; etc. </li></ul>1. Business contribution 2. Marketing outcomes 3. Customer satisfaction 4. Customer behavior 5. Channel promotion 6. Social Media <ul><li>KPIs distill analytics data into relevant information </li></ul><ul><li>Exclusive to each business </li></ul><ul><li>Specific </li></ul><ul><li>Valuable </li></ul><ul><li>Actionable </li></ul><ul><li>Focus on the 3 – 5 most significant metrics </li></ul>
  23. 23. Marketing Dashboards. The visual display of metrics. <ul><li>Marketing Dashboards graphically display KPI’s in main categories </li></ul><ul><ul><li>Brand </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Customer </li></ul></ul><ul><ul><li>Channels </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Organizational Development </li></ul></ul><ul><ul><li>Macro-economic Environment </li></ul></ul>
  24. 24. Social Media It’s already being by brands to optimize marketing
  25. 25. Businesses are taking social marketing seriously <ul><ul><li>The number of photos archived on Flikr.com as of June 2009 </li></ul></ul><ul><ul><li>13.6 Billion </li></ul></ul><ul><li>The amount of content (Links, news, posts, notes, photos, etc. shared on FaceBook weekly </li></ul><ul><ul><li>3.5 Billion </li></ul></ul><ul><li>The number of minutes spent on FaceBook daily </li></ul><ul><ul><li>16 Billon </li></ul></ul><ul><li>If FaceBook were a country </li></ul><ul><ul><li>It would be the 3 rd most populated in the world, behind China & India </li></ul></ul><ul><ul><li>The number of Articles on Wikipedia </li></ul></ul><ul><ul><ul><li>16 Million </li></ul></ul></ul>
  26. 26. Businesses are taking social marketing seriously <ul><ul><li>The amount of video uploaded to YouTube every minute </li></ul></ul><ul><ul><ul><li>24 hours </li></ul></ul></ul><ul><ul><li>The amount of time it would take to view every video on YouTube </li></ul></ul><ul><ul><ul><li>1,750 Years </li></ul></ul></ul><ul><ul><li>The number of YouTube videos viewed per day </li></ul></ul><ul><ul><ul><li>2 Billion </li></ul></ul></ul><ul><ul><li>The average number of tweets on Twitter.com every day </li></ul></ul><ul><ul><ul><li>65 Million </li></ul></ul></ul>
  27. 27. The Social Graph… Conversations are occurring around every category, brand, and the entire buying process <ul><ul><li>Where are conversations taking place? </li></ul></ul><ul><ul><li>Who are the influencers driving them? </li></ul></ul><ul><ul><li>What is being talked about? (e.g. Keywords) </li></ul></ul><ul><ul><li>Is the Sentiment positive or negative? </li></ul></ul><ul><ul><li>Are Keywords be used in dialogues, topics, headlines, copy? </li></ul></ul>
  28. 28. Online data begins to unlock the riddle of prospects & customers <ul><li>Social monitoring merges with Web analytics </li></ul><ul><ul><li>Alterian, Omniture, Coremetrics/IBM, Webtrends </li></ul></ul><ul><li>Technology like Hadoop makes it easy for companies to tap unlimited data </li></ul><ul><ul><li>E.g. New York Times making its archives public </li></ul></ul><ul><ul><li>Twitter archived by Library of Congress </li></ul></ul><ul><ul><li>Facebook Cassandra, Amazon Dynamo, Google BigTable </li></ul></ul><ul><li>Dashboards and data visualization tools make it easy to understand </li></ul><ul><li>Balancing privacy and personalization </li></ul>
  29. 29. Combining social/online data and offline data is a key to micro-targeting <ul><li>Social Data </li></ul><ul><li>Social Site Affiliation </li></ul><ul><li>Interests and brand affinities </li></ul><ul><li>Occupation </li></ul><ul><li>Education </li></ul><ul><li>Location </li></ul><ul><li>Reviews </li></ul><ul><li>Social Graph </li></ul><ul><li>Targeting friends </li></ul><ul><li>Extending reach </li></ul><ul><li>Social Affinity </li></ul><ul><li>Offline Data </li></ul><ul><li>Income </li></ul><ul><li>Presence of children </li></ul><ul><li>Home Ownership </li></ul><ul><li>Purchase Behavior </li></ul><ul><li>Lifestyles </li></ul><ul><li>Much more </li></ul><ul><li>Micro-Targeting </li></ul><ul><li>Targeted lists of people for postal and/or email programs </li></ul><ul><li>Serve display media to only people you want </li></ul><ul><li>Use customer insight to tailor messaging and media plan </li></ul>
  30. 30. Facebook is creating and capturing large amounts of data Facebook has 500 million active users 50% of active users log on every day Average user creates 90 pieces of content monthly 550,000 Facebook applications 70% of users engage with apps
  31. 31. Google’s data mining benefits their advertisers 79 million US Gmail Accounts Google has 145 million unique US visitors 1 billion searches daily Google data mines all search and Gmail as a resource for advertisers 96% of Googles profit is the result of ad revenue
  32. 32. Rapleaf, data mining the social space <ul><li>Rapleaf Data Mines </li></ul><ul><li>Who – demographics </li></ul><ul><li>Where – footprint online </li></ul><ul><li>What – affinities, interests </li></ul><ul><li>With Whom – friend connections </li></ul>Rapleaf Process <ul><li>Quick Facts </li></ul><ul><li>Data on 900+ million records </li></ul><ul><li>400+ million consumers </li></ul><ul><ul><li>60+ billion friend connections </li></ul></ul>
  33. 33. YOUR AD HERE YOUR AD HERE Marketers can target ads based on social data today Target: -Existing fans/followers -Friends of current fans/followers -Existing & prospective customers -Friends of prospects -Fans/followers of competitors -Custom created segments -Leverage metadata to facilitate sharing
  34. 34. Bringing Social Media Marketing to life Alterian Buzz Bowl
  35. 35. Alterian’s Social Engagement Index 2011 Super Bowl TV Ads www.alterian-social-media.com/
  36. 36. Alterian’s Social Sentiment Engagement Index 2011 Super Bowl TV Ads www.alterian-social-media.com/
  37. 37. How much is a tweet, a fan or a follower worth? Cost Per Social Impression www.alterian-social-media.com/
  38. 38. Ads effect Mobile as well, which is growing faster than predicted <ul><li>Mobile searches related to Chrysler, a Super Bowl advertiser, were 102 times higher after the ad was televised </li></ul><ul><ul><li>Desktop searches for Chrysler increased only 48 times </li></ul></ul><ul><li>For GoDaddy.com, another Super Bowl advertiser, mobile searches for the brand were 315 times higher than usual </li></ul><ul><ul><li>Desktop searches were only 38 times higher </li></ul></ul><ul><li>There are 200 million plus YouTube mobile playbacks per day </li></ul><ul><li>78% of smartphone users shop on their device </li></ul><ul><li>Apps Market… Apple leads with 82.7% share in 2010 (Forrester) </li></ul><ul><ul><li>Avg. cost of paid apps -- $2.43 </li></ul></ul><ul><ul><li>$1.7 billion globally in 2010 </li></ul></ul><ul><ul><li>$38 billion globally by 2015 </li></ul></ul>Source: Google
  39. 39. Conclusions <ul><li>Direct Marketing, like all marketing, is effected by social media marketing </li></ul><ul><li>Social Media Marketing is creating even more marketing data </li></ul><ul><li>To prove marketing effectiveness, use a few KPI’s aligned with organizational goals, which have indisputable rigor </li></ul><ul><li>Customer engagement is attributable to customer experience </li></ul><ul><ul><li>Relevancy is both earned and bought </li></ul></ul><ul><ul><li>It’s not Push or Pull… It’s Push and Pull!!! </li></ul></ul><ul><li>“ If you don’t like change, you’re going to like irrelevance even less.” </li></ul>
  40. 40. Questions & Answers Questions?
  41. 41. Thank You! [email_address]

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