This document discusses the evolving landscape of digital and social media marketing. It notes that while there are great opportunities for companies through new channels like Facebook and Twitter, many are still experimenting to determine best practices. Measurement of effectiveness and return on investment remains a challenge. It also highlights risks, such as when McDonald's received negative publicity from a Twitter campaign.

1. DIGITAL & SOCIAL
MEDIA MARKETING
FINANCIAL TIMES SPECIAL REPORT | Wednesday March 7 2012
www.ft.com/digital­social­media­marketing­2012 | twitter.com/ftreports
Advertisers rush Inside this issue
Cautionary tales
David
Gelles
finds
to master fresh
reasons to
be careful
when
companies
take
advertising
set of skills
online Page 2
B2B
Paul Taylor sees a chance
for business to gain traction
with customers Page 2
There are great R/GA, the digital agency. from customers, the iterations
“These things are connected, we could do on a campaign,” Ownership
opportunities, and you can’t do one without she says. “We saw the ability to Ajay Makan looks at the
says David Gelles, the other.” really, really measure results.” wide variety of corporate
The promise of these plat- Adobe now spends 74 per cent of responses Page 2
but companies forms is tremendous. The new its more than $100m marketing
Viral campaigns
are still largely world of digital and social media budget on digital.
April Dembosky looks
marketing can give companies Even for a digital-first com-
feeling their way increased access to their cus- pany such as Adobe, each cam-
behind the success of
internet sensations Page 3
tomers, fresh insights into their paign is a fresh start of sorts.
O
nly a few years ago preferences, a broader creative Ms Lewnes says 20 per cent of Marketing budgets
digital marketers palette to work with, and her budget is going towards Tim Bradshaw says
might have thought additional data and metrics to experimental campaigns, and campaigns via social media
all was plain-sailing. study. that each product launch are still often unpredictable
After a decade of disruption Yet there are unsolved ques- requires a different mix of paid, Page 3
wreaked by the emergence of tions over how best to organise earned and owned media.
the popular web, companies and and execute digital and social Perhaps the largest shift in A life in the day
advertising agencies had finally campaigns. No single formula recent years has been the transi- David Gelles follows the
understood the intricacies of tion from the one-way, broad- chief marketing officer
placing online display and cast messaging of television, of Gannett Page 3
search ads. ‘People find it hard to print and outdoor, to the two-
Yet in the past few years, a realise marketing is a way conversation that social Advertising Predictions of
new generation of technologies options now allow companies to the display ad’s demise are
has come along to disrupt once two­way conversation have with their consumers. premature, writes Jane Bird
Page 3
again the way advertisers oper-
ate. Led by Facebook and Twit-
rather than a “It requires a shift in your
perception,” says Maryam Ban-
ter, and joined by behemoths one­way pushing­out’ ikarim, chief marketing officer
Mobile Tim Bradshaw
explains why the promised
such as Google and a bevy of of Gannett, the media company. land is not quite with us
start-ups, these Silicon Valley “People find it hard to realise Page 4
misfits have muscled into the ad has emerged, leaving most com- marketing is a two-way conver-
business and upended tradi- panies and ad agencies in a sation rather than a one-way On FT.com
tional assumptions about how state of constant experimenta- pushing out.” April Dembovsky explains
companies should allocate mar- tion. There is also lingering con- Yet quantifying the effective- uring their fans and followers,” conversations around the news everything you need to
keting budgets. fusion over how best to measure ness, and return on investment, says Ms Lewnes. “But what’s that Beyoncé was pregnant, it know about
In addition to search and dis- the effectiveness of a campaign, of digital and social campaigns, important are the insights you added more pictures and stories Pinterest
play advertising, big companies and a company’s return on remains a challenge. Rather can glean from the data. Under- about the story to its website.
must now factor in social media, investment. than tracking click-through and standing if someone is happy or Yet many markers remain dis-
video advertising, mobile mar- Ann Lewnes, chief marketing conversion rates as with search unhappy with something.” satisfied with the state of online
keting and daily deals. officer of Adobe, the software and display advertising, market- Social signals obtained from measurement.
“We’ve gone from display and company, says she pushed the ers are trying to count follow- Twitter and Facebook can also Keith Weed, chief marketing
search to this much longer list,” company into digital and social ers, measure sentiment and ana- give companies real time officer of Unilever, the
says Nick Law, chief creative marketing early on. “We saw lyse purchase intent. insight. When MTV saw there
officer in North America for the insights we could glean “A lot of people are just meas- was a spike in online Continued on Page 2

2. 2 ★ FINANCIAL TIMES WEDNESDAY MARCH 7 2012
Digital & Social Media Marketing
A chance for business to gain traction Is it about
B2B
There have been
in a B2B environment is
managing their social net-
work profile, and I think
fire hose of information,
make it actually be of use
to us.
not been leveraged enough,
even though he notes that
an estimated two-thirds of
ences purchase decisions.
What is more, 51 per cent of
people using search are
LinkedIn with a Twitter
component. Mr
explains: “It was almost
Bell selling
or service?
that’s a testament to the “You can’t ignore it. I feel incidents of switching sup- doing it to find a recom- like a support group for
some successful fact that we now live
blended lives.”
inundated every day and so
there’s a pressure to make
pliers is down to B2B rela-
tionship problems.
mendation from someone
else, preferably with experi-
CFOs, so they could talk
about their challenges with
experiments, He adds: “I think the sense of it and turn all that Ethan McCarty, who is ence of a product or service. other CFOs.”
says Paul Taylor notion that ‘social media’ is
a description of a technol-
information into actionable
insight.”
the senior manager, digital
and social strategy for IBM,
“Yet we still don’t put
enough emphasis in terms
Ultimately, the virtual
networking group led to
ogy is not accurate. It is Jonathan Lister, who which works with Ogilvy of what shows up in those real world events and what “The shine has worn off
The role of social media in about human behaviour. heads marketing solutions PR, says he believes this first two pages of search both Mr Bell and Mr Mcarty ‘Ownership’ social media,” says Dr Nora
business-to-business mar- “What’s changed is that for LinkedIn in North issue reflects “an overall results in relation to a B2B say was considerable value Ganim Barnes, the centre
keting is much less talked more of us are using all America, agrees. buyer journey,” he says. in terms of sales leads. There is a wide director. “If companies can-
about or understood than
its counterpart in business-
sorts of social media plat-
forms to take care of things
“We have this aspiration
at LinkedIn to connect tal-
‘Extend the He also believes that,
with a few notable excep-
“I think this is a great
example, and it’s one we’ve
variety of corporate not find a metric to show
social media are generating
relationship
to-consumer marketing. in our lives, from making ent with opportunity on a into the tions, companies are often been replicating around the responses, explains a return on investment,
However social media do
have a role, and an impor-
decisions on business, to
communicating, to network-
huge scale,” he says.
So how does that trans-
virtual space’ too slow to develop any-
thing akin to brand advo-
world because it was so
effective,” says Mr McCarty,
Ajay Makan they may no longer feel
obliged to throw resources
– Ethan
tant one, within business. ing, and so forth.” late to B2B marketing? McCarty cacy or expert programmes whose role involves educat- at, say, Facebook and Twit-
“From my point of view, In addition, he says, B2B “Well, some of the people where they are putting peo- ing senior IBMers in the use There is still a great deal of ter, in the way they did
all social media are highly social media are growing we’re mapping are finding ple within the company in of social media tools, and in uncertainty within the cor- when they were new.”
relevant to B2B,” says John because our attention is that perfect article of news shift, in trust in organisa- direct contact with buyers. using social media to high- porate world about what But measuring results
Bell, who heads the interac- fractured. or connecting with that per- tions to trust in networks”. There are exceptions how- light their areas of exper- social media are for, and leads back to the thorny
tive, broadcast and print “There’s a lot of stuff to fect person, or connecting Mr Bell asks: “If you can ever including IBM. In tise. this is reflected in the lack question of ownership, and
design team at Ogilvy PR. pay attention to and, from a with that perfect brand. extend the sales relation- India, it was trying to build “We learnt a couple of the of consensus about which whether a social media
“There’s this mythology professional point of view, And we’re seeing that more ship from the oral and relationships with custom- things from that experi- department should take strategy is primarily about
that it’s first and foremost a there is not a moment and more. It’s all about rele- meeting space into the vir- ers at the highest level ence,” he says. responsibility. keeping existing customers
B2C environment or set of where I feel like I am on top vance.” tual space, why not do it?” within companies. Most importantly, IBM A recent PR Week survey happy, brand management,
behaviours more appropri- of everything I need to be Mr Bell adds: “Social He says many brands are So Robert Parker, the discovered that if it used found just 4 per cent of US or sales and marketing.
ate to B2C than B2B, but we on top of. media’s value is in doing just that. His group’s chief financial social media to create a companies have a separate For all Mr Tobin’s talk of
found that’s not true. “So I think that we’re all strengthening relationships research suggests that 60 officer in India, began to community of practice, par- social media team, while IT breaking down silos and
“In fact, one of the fastest experimenting with ways in – that’s what it does.” per cent of buyers in the host a social media commu- ticularly where IBM has departments are almost as integrating approaches, his
growing social behaviours social media to make sense But, surprisingly in B2B B2B space say word of nity that was a combination brand credibility: “We get a likely to manage budgets as agency’s approach is nar-
for senior decision-makers of this onslaught, of this relationships, he says it has mouth from peers influ- of a blog connected into lot of traction.” are PR teams. While nearly rowly focused on communi-
all large companies engage cations.
with social media in some His company staffs Twit-
way, the variety of ter feeds and Facebook
responses is huge. pages round the clock to
What to do
“The whole question of push the messages of client
who ‘owns’ social media companies, but complaints
within companies is prob- about a product are given a
lematic,” says Jim Tobin, surprisingly old-fashioned
president of Ignite, a social response: a 1-800 number or
media agency based in email address to contact the
when good North Carolina. “It touches
on everything from cus-
tomer service to marketing,
and companies need to inte-
grate it across everything
client company’s customer
services.
Ignite is a marketing-
focused agency, so clients
know they are paying for a
salesmanship
they do.” focused service, but it is
Many businesses have noticeable that there are
turned to agencies to few, if any, social media
develop a comprehensive agencies focused on cus-
approach. In a relatively tomer service strategies.
new medium, agencies are Even in a set-up such as
goes bad often thought to have a cut-
ting edge in designing and
executing social media
strategies. But the trade-off
is that agencies can never
be as embedded in the cul-
’Campaigns are
constant and
ongoing, and so
Cautionary tales
Ann Lewnes, chief marketing
officer at Adobe, the software
ture and message of a com-
pany as employees.
need more
company. “That’s one of the big- Some see a model of the attention’
David Gelles finds gest changes to marketing today. future emerging in a Chi-
reasons to be careful You don’t just put a campaign out
there. At any given moment,
cago skyscraper. There, in
the offices of Gatorade, the Gatorade’s command cen-
when companies take someone is saying something sports drink brand, five in- tre, there are limits to inte-
advertising online about your company and product,
and you have to be listening.”
house marketing and com-
munication specialists sit in
gration. Communications
and marketing teams are
Because McDonald’s was listen- front of a battery of screens still king. Customer serv-
W
hen McDonald’s ing, it says the damage was lim- programmed to track online ices specialists may be
bought advertising ited, with the #McDStories paro- mentions of the brand, and given access to PepsiCo’s
on Twitter this year, dies accounting for only 2 per to respond. social media applications to
it was hoping to cent of conversation about the The idea is to marry in- respond to specific com-
drum up some goodwill for its brand that day. “The response to house staff’s knowledge of plaints or queries, but they
burgers and fries. By promoting any type of complaint has to be the brand with the best of do not shape strategy.
the “#McDStories” hashtag, it almost immediate,” says Ms technology. A media agency One exception to the bias
expected to users to share favour- Lewnes, adding that Adobe also is represented in Gatorade’s towards marketing is the
ite memories from the world’s strives to remain vigilant. “We social media “command hotel industry. Hyatt offers
largest restaurant chain. have a policy that within minutes centre”, but the effort is led a Twitter-based concierge
Instead, critics of the fast-food we have to respond in a meaning- by, and directed towards, service that has 20,000 fol-
chain hijacked the hashtag and ful manner.” the company’s own staff. lowers, and answers ques-
used it to pillory McDonald’s, Other brands can simply be “The room has glass tions from guests or pro-
accusing it of peddling unhealthy, tone-deaf in their promotions, doors to remind everyone in spective guests at any of
unappetising food. drawing the wrath of online crit- the company of the fact the company’s hotels.
The incident was the latest ics quick to pounce on the slight- that social media are Starwood Hotels, which
example of how well-intentioned est whiff of inappropriateness always on and affect every- operates brands such as
social media marketing can back- from a big brand. When Casey thing they do,” says Joshua Sheraton, blazed a trail in
fire, putting a company on the Anthony, the mother suspected of Karpf, director of digital corporate social media a
defensive. While sites such as murdering her daughter, was Tweets: critics of the fast­food chain hijacked the hashtag and used it to pillory McDonald’s and social media for decade ago by creating the
Facebook and Twitter provide acquitted last year, the “#not- PepsiCo, which owns Gato- “lurker,” an online persona
unparalleled access to customers, guilty” hashtag began trending on year Olla, the condom maker, blogosphere were swift and fierce. rade. that trawled websites for
allowing companies to interact Twitter. devised a campaign to attract cus- “Our entire meal was a SHAM!” PepsiCo set up a “centre customer complaints and
with fans, they also provide a That prompted Entenmann’s, tomers. It created a programme wrote one participant. “We were of excellence” in 2008, and sought to address them
forum for dissenters. the snack maker, to tweet: “Who’s that sent men a friend request unwilling participants in a bait- holds meetings among exec- directly.
McDonald’s was monitoring the #notguilty about eating all the from their supposedly unborn and-switch.” The story went viral, utives to share best social Whatever the focus of a
conversation on Twitter, and tasty treats they want?!” Custom- babies. So a Facebook user named and ConAgra was soon on the media practice, such as social media strategy, ana-
quickly took down its promoted ers called Entenmann’s out, and Daniel Ogawa got a friend request defensive. Gatorade’s command cen- lysts say companies will
tweets. “With all social media the social media agency repre- from “Daniel Ogawa Jr”, with a “Social media brings both tre, among brands. need to change the way
campaigns, we include contin- senting the company apologised picture of a baby and a message opportunity and threat. Entering But such a high level of they manage campaigns.
gency plans, should the conversa- in a blog post. that said “Avoid surprises like the market with a siloed mindset resource commitment is Dallas Lawrence, chief
tion not go as planned,” Rick “The mis-steps happen when this one. Use Olla Condoms.” can be extremely dangerous,” unusual. In one of the few global digital media strate-
Wion, social media director for marketing departments aren’t Another ill-fated tactic involves says Laurence Buchanan, Digital academic studies of social gist at the Burson-Marstel-
McDonald’s USA, told the FT. aligned with the brand’s values,” ‘Social media bring trying to engage with the social Transformation Lead at Cap- media activity, the centre ler agency, says: “Conven-
“The ability to change midstream says Nick Law, chief creative both opportunity and media community on false pre- gemini Consulting. for marketing research at tional media campaigns
helped this small blip from officer in North America for tences. “Having a mechanism in place the University of Massachu- involved intense work dur-
becoming something larger.” R/GA, a digital agency. “There are threat. Entering the Last year, ConAgra, a maker of to filter through the vast amount setts, Dartmouth, found ing the commissioning
Yet the damage was already
done, and the episode became a
all these steps in the process
where marketers take shortcuts
market with a siloed packaged foods, invited bloggers
to a four-course meal at an exclu-
of noise generated on social media
sites is a pre-requisite,” he says.
that in 2011 take-up among
Fortune 500 companies lev-
period, but once they were
launched, clients could step
cautionary tale for companies. to get some news out in the mar- mindset can be sive restaurant in New York. “But this is a complete waste of elled off, while there was back.
McDonald’s scored points for ketplace.” Instead of haute cuisine, the blog- investment without the ability to retrenchment among fast “Social media work is
being quick to respond. “You Social media gaffes are not lim-
extremely dangerous’ gers were served frozen lasagne. act fast on opportunities and growing, privately owned constant and ongoing, and
need to be on it 24/7,” says ited to Twitter, however. Last The reactions on the threats as they come up.” US companies. so it needs more attention.”
Advertisers rush to master fresh set of skills Contributors
David Gelles
US Media and Marketing
Correspondent
Continued from Page 1 agencies to change the way out across television, print, could rapidly catch up, as ing our spend across differ- help determine the winners If marketers continue to Tim Bradshaw
they work. radio, and the web. they adopt digital media. ent media,” says Mr Weed. and losers in the years to flock to new digital and Digital Media
consumer products group “Twenty years ago there “Things really are getting “In emerging markets “If you fragment, the mes- come. At stake are the valu- social options, Facebook Correspondent
that is the second-largest were templates,” says Mr joined up,” says Mr Weed. they’re going to go through sage you’re making it less ations of companies such as and its social media peers
advertiser in the world, Law at R/GA. “Now, we “The same creative is going these cycles much more cohesive and joined up.” Facebook, which earned may prove their worth. Paul Taylor
says: “Digital is in theory don’t have a typical client to flow across multiple quickly than us,” says Mr Technologies are chang- $3.7bn last year, mostly Yet if a proliferation of Editor, The Connected
more measurable than any- engagement. Because media screens.” Law. ing fast, and few marketers from advertising, and is online options fragments Business
thing else, in theory and in are so flexible, we can get Growing access to the And digital advertising is would claim to know what preparing to go public at a advertisers’ spend, or if the
April Dembosky
practice, but it’s not broad very specific.” web in emerging markets is still a small portion of glo- new social platform might value of up to $100bn. promise of social media San Francisco
enough yet. What we’ll see One brand may need a also allowing for truly glo- bal advertising, accounting demand their attention a Yet some basic trends are goes unfulfilled, this Correspondent
is a significant maturation robust Facebook page, bal campaigns. for 16 per cent of total year from now. emerging, with mobile moment could one day be
of ROI in digital.” while another may call for a “A few years ago I would spend in 2011, according to access to the web leading seen as another bubble. Ajay Makan
More insights and crea- strategy of engaging with be engaging much more of ZenithOptimedia. the pack. Regardless of that, it US Reporter
tive opportunities mean consumers on message a national base on cam- That figure is growing ‘Google and “If the first 1bn users con- seems certain that new
Jane Bird
more work for marketing boards, blogs and elsewhere paigns,” says Mr Weed. fast, but television is set to Facebook are truly nected to the internet technologies are destined to
Sarah Murray
teams, and can mean on the web. Such “But Google and Facebook remain the biggest advertis- through PCs, the next 1bn change the way consumers
increased costs for market- approaches are forcing are truly global media com- ing platform, accounting for global media will be through mobile,” interact with brands.
FT Contributors
ers.
In-house and at agencies,
departments within organi-
sations to collaborate in
panies in a way the world
has never seen.”
40 per cent of total spend
through at least 2013.
companies in says Mr Weed, who recently
visited a family in the
Just as the web reshaped
the advertising world a dec-
Martin Brice
Commissioning Editor
marketers are scrambling new ways. The amount of money Managing the growing a way the world slums of Mumbai who none- ade ago, the new world of
to acquire new skills, and “It’s brought the market- being committed to digital array of digital and social theless had two mobile digital and social media Andy Mears
add staff to monitor the ing teams much closer marketing varies widely, initiatives has forced com-
has never seen’ phones. marketing is forcing compa- Picture Editor
exponential growth of together,” says Ms Lewnes. with more developed coun- panies to revise their rela- Unilever was the first and nies and ad agencies to re-
online dialogue about com- “They all used to be in their tries seeing a higher digital tionships with ad agencies, Pinterest, the online pin- largest customer for Apple’s evaluate where, how and Greg Meeson
Front page illustration
panies. silos. PR was off operating spend. as well. board and sharing site, is mobile iAd marketing when they engage with
“You have to throw bod- by itself, advertising was Unilever, for example, Unilever reduced its ros- the latest to draw a legion platform, and has renewed potential customers.
For advertising details,
ies at that,” says Ms operating by itself. Now spends about 35 per cent of ter of more than 400 digital of users – and the interest its contract for a second “Ultimately, this concept
contact:
Lewnes. “There are people they’re working together.” its US budget on digital, agencies to fewer than 100, of marketers – without hav- year. of digital will disappear,”
James Aylott
who have to monitor it all At its best, this can result compared with 25 per cent with just 12 lead global ing proved its business “I want to get to the says Mr Weed.
+44 (0)20 7873 3392
day.” in truly integrated market- in Europe, and just 4 per agencies, including Razor- model or staying power. future first,” Mr Weed says. “My 20 year old son
Email: james.aylott@ft.com
Myriad options are also ing campaigns, with a uni- cent in India. fish, AKQA and R/GA. How this shift in the mar- “I don’t want to be follow- laughs at me when I talk
forcing companies and fied message being pushed Yet emerging markets “We’re already fragment- keting world plays out will ing my competitors.” about online and offline.”

3. FINANCIAL TIMES WEDNESDAY MARCH 7 2012 ★ 3
Digital & Social Media Marketing
Lights, camera, blender! How to create a hit
Since the company started the “But it’s not something you can half-naked, from a beachside doubled after the social cam- destroy their product in the here as well. One is that people
Viral campaigns “meme” in 2006, sales of its plan for. There’s no formula for shower: “Hello ladies. How are paign, compared with the same blender. Blendtec charged any- may never connect the ad with
retail blender have shot up saying ‘this will strike a chord you? Fantastic. Does your man time period the year before, the where from $5,000 to $35,000 for the brand, laughing and talking
April Dembosky looks almost 800 per cent, says Kels and get millions of views’.” look like me? No. Can he smell company said. each video, with the price going about a funny beer commercial,
behind the success of Goodman, Blendtec’s video pro-
ducer. “It was entertainment,
There are some key elements
to a viral video, she says, such
like me? Yes. Should he use Old
Spice body wash?”
“It was so far off the chart
compared with what we had
up if the company wanted the
video posted to Blendtec’s
but not remembering what
brand it was for.
internet sensations not selling,” he says. “That’s as being very funny, very topi- Two weeks after that commer- dreamed about,” says Mike Nor- unique YouTube channel. The other danger is not reach-
why people loved it.” cal, or using cutting-edge tech- cial aired, the company’s adver- ton of Old Spice. “Also, you get But this made Mr Goodman ing the right audience for the
These days, practically every nology, like Burger King’s tising team at Wieden+Kennedy this instant feedback and senti- wary, as the more promotional product. Blendtec’s videos were
Food blenders do not make the marketer is salivating for a sim- online “subservient chicken”. pushed social media to a new ment analysis from people who videos were posted, the more he hugely popular with young boys
sexiest marketing material. But ilar internet sensation. With the Building on a television com- put their trust in the brand and felt it hurt the entertainment who enjoyed watching things
Blendtec found a way round extensive reach of Facebook and mercial, the 2004 online cam- want to be part of it.” value of the series. crash and explode – not the
that by having its chief execu- Twitter, and the speed of shar- paign featured a man dressed in ‘People don’t pass on “It’s almost unfair to own Ms Lieb confirms there is a demographic that buys $400
tive, Tom Dickson, drop an ing that comes with them, a a chicken suit with a garter belt commercials. They what we did – it’s so basic,” says balancing act marketers must blenders. But over time, middle-
iPhone into its home blender, short video can be distributed at and stockings who performed Jason Bagley, a creative director perform. “The most viral cam- aged women bought a Blendtec
push the smoothie button, and almost no cost on the web, usu- whatever action a user typed pass along jokes and with Wieden. But the experience paign is the least branded,” she Total Blender, saying their sons
grind it to a black dust.
“I’m going to put this on
ally with the recommendation
of a trusted friend behind it.
into a dialogue box on the
screen, from touching its toes to
stories, things that confirms to him: “Social media
campaigns are going to exist for
says. “People don’t pass on com-
mercials. They pass along jokes
saw it on YouTube.
As always, with a hit, there is
Ebay,” he tells the camera, hold- The value to companies over the doing Michael Jackson’s moon- resonate with them’ a long time.” and stories, things that really pressure to produce another:
ing up a cocktail glass full of anonymous, multimillion dollar walk. The gimmick promoted In some cases, companies resonate with them, not ‘30 days this puts makers of accidental
smoking iPhone dust and flash- placement on television is huge. the chain’s fried chicken sand- have come up with such suc- to whiter teeth and fresher successes in a tough spot.
ing an earnest smile. But coming up with a video wich and “Have it your way” level, when it took questions cessful “memes” that they build breath’.” “The good days of Will it
The video was viewed 10.5m that taps into the cultural zeit- campaign slogan. from fans on Facebook and a secondary marketing business “That has led to a wave of Blend? were when we were just
times on YouTube. To date, geist is an elusive task. More recently, Old Spice has Twitter, then wrote, produced, around it. homemade videos starring fooling around,” Mr Goodman
Blendtec has made 130 Will it “Everyone wants every cam- had raging success online, find- and posted video spots online of Just three months into the ordinary people that are in fact says. “Once you have to start
Blend? videos, featuring the paign to be viral, just like every- ing multiple ways to exploit its their Old Spice guy answering Will it Blend? series, Blendtec company-backed ads made by concentrating, once you start
destruction of lightbulbs, golf body wants every movie to be a iconic “the your man could them, in less than 10 minutes started receiving calls from professional producers and paid putting dollar signs and a time-
balls, even a Nike running shoe. hit,” says Rebecca Lieb, an ana- smell like” character, who spoke each. Many thousands wrote in. other companies, including Ford actors.” frame to creativity, it’s really
Almost all have gone viral. lyst with the Altimeter Group. to potential customers in 2010, Sales of Old Spice body wash and Google, begging them to But there are two dangers hard.”
Dangers of a
fast­moving
bandwagon
book page were more ener-
Marketing budgets gised by simple questions
such as whether milk or tea
Campaigns via should go into a cup first.
social media are still Despite the excitement
surrounding social plat-
often unpredictable, forms, paid advertising
says Tim Bradshaw remains relatively low, at
20 per cent of display spend-
ing, but 5 per cent of total
First Google and Yahoo, digital media.
then Facebook and Twitter, “The challenge remains
now Tumblr, Instagram and fully to prove the return on
Pinterest. For digital mar- investment in what is a
keters, there is always the very fast-moving environ-
latest “new thing” – usually ment,” says Richard Mar-
with an odd spelling. shall, managing partner of
Maryam Banikarim: ‘Once I got to Gannett, I made a commitment to really tackle this social media thing’ Pascal Perich “Advertisers don’t want TMW, a creative communi-
to miss out. They worry cations agency.
that if they don’t jump on Nonetheless, money con-
A dedicated follower of fashion
the bandwagon and it tinues to flow into digital.
becomes a Eurostar, they Guy Phillipson, chief execu-
might look ridiculous,” says tive of the Internet Adver-
Christophe Cauvy, Euro- tising Bureau, says new
pean head of digital and money is moving online
innovation at JWT and a from classified, press and
miles from Gannett’s head- world. “When someone have to develop the muscle panies’ total advertising pany that is trying to rein- long-time digital marketing direct marketing budgets.
A life in the day quarters outside Washing- emails me and says, ‘There memory yourself.” spend. vent itself.” practitioner. For consumer goods
ton, DC. “My goal is to is this company I think Ms Banikarim also “While people are spend- She also participates in Burberry, the British brands such as drinks, dig-
David Gelles bring the outside in,” she you’ll be interested in,’ I try required everyone on her ing serious money on dig- the M50, a twice-annual fashion brand, has emerged ital can be a substitute for
follows the chief says.
Instead of spending all
to take the meeting,” she
says.
team to have a social media
presence, even if it was not
ital, it’s usually not more
than 10 per cent of the
gathering of marketing
heads from companies
in the past year as a digital
marketing pioneer, with
physical promotional prod-
ucts, he says. Smirnoff’s
marketing officer day in team meetings, por- During these meet-and- an official Gannett account. spend,” she says. around the US. To share hundreds of thousands of “Nightlife Exchange” cam-
of Gannett ing over details of market-
ing plans, Ms Banikarim
greets, she is on the look-
out for young digital com-
She then brought in an out-
side agency to train them
She also sets aside part of
each day for learning about
her observations, she writes
a company-wide monthly
followers on Twitter and
Google+, and nearly 11m
paign on Facebook, which
ran an online talent show
prefers to be out in the city, panies that Gannett might on best practice. subjects that are not neces- newsletter, called “On the Facebook fans. to find a new backing
M
aryam Banika- holding meetings, attending partner with, or even “Once I got to Gannett, I sarily part of the chief mar- Road,” a homage to Jack It has also been an early dancer for Madonna, might
rim, the chief presentations from other acquire. Now Ms Banikarim made a commitment to keting officer’s role. Kerouac. adopter of new social net- previously have been run
marketing companies, and learning regularly schedules meet- really tackle this social “Going into those areas Being externally focused works, using photo-sharing on beermats, for instance.
officer of Gan- what some of Gannett’s ings where start-ups media thing,” she says. that aren’t like marketing is can leave her strapped for service Instagram to show Of all the major digital
nett, eschews the black media properties are doing present their wares to her important,” she says. “You time. “When you’re in the behind-the-scenes pictures formats, Mr Phillipson says
town cars that shuttle to use technology to engage and Gracia Martore, Gan- have to be open to things midst of a transformation, from fashion shows and vir- online video is among the
many business leaders to their audience. nett chief executive, and ‘There’s an like design and music that it’s so busy,” she says. tual clipboard Pinterest to fastest growing, with spend-
work in New York City. At a time when the mar- Tom Cox, deals head. incredible pace are not part of traditional “It takes a concerted capture London Fashion
Instead, each morning she keting world is changing “There’s an incredible marketing.” effort to make the time, Week, although Burberry is
takes the subway from her rapidly, thanks to advances pace of innovation in the of innovation. This recently took her to even though it would be yet to use microblogging New money is
home in the Chelsea neigh- in digital and social media, digital space,” she says. First Facebook a presentation by JC Pen- easy to work through those platform Tumblr. moving online
bourhood to Gannett’s Ms Banikarim finds herself “First, there was Facebook ney, the US retailer, as it hours. Which means that A “strategic innovation
offices in midtown Manhat- always looking out for the and Twitter, now there’s and Twitter, now unveiled its new corporate “it’s only at 6 o’clock when council” of Burberry from classified,
tan, where she oversees the
marketing efforts of the 100-
newest thing, while still try-
ing to learn lessons from
Pinterest [an online pin-
board service].”
there’s Pinterest’ identity and discussed plans
to win back the US con-
you start to get to work,”
she says.
employees aged under 30
guides which new digital
press and direct
year-old media company. other big companies. Each platform serves its sumer. Upon returning to her platforms the fashion brand marketing budgets
“I really love the sub- “The marketing land- own role, and Gannett An early test came when She knew Michael Fran- Chelsea home, she often should adopt, based largely
way,” she says. “It’s the scape has become much chooses sites according to the company had to decide cis, JC Penney’s chief mar- finds that there is yet more on intuition and what they
fastest way to get around, more complicated,” she its goals. whether to use the bit.ly keting officer, from her pre- to do. personally enjoy using – ing doubling year-on-year in
and I’m curious by nature. says. “Ten years ago, you “Social is not just one link-shortening service, or vious job, when she headed “Mine is your multimedia although Burberry admits the UK. Video helps to tell a
The mix of people is some- were looking to buy print bucket,” she says. “The whether to insist readers marketing at Univision, the multi-device household, I’m that calculating the returns story, he says.
thing that has long mesmer- and radio and TV and out- sites all have different audi- share longer links. In a vote Spanish-language television on my iPad looking at is not an exact science. Other key themes the IAB
ised me.” door. Today, you’re con- ences and purposes.” for brevity, Ms Banikarim station. blogs, my husband is play- But for every Burberry, has identified for 2012
Her commuting habits are stantly getting pitched new Ms Banikarim says she went with bit.ly. “It was really fascinating ing a game on his iPhone,” there is an ArenaFlowers. include integration across
part of Ms Banikarim’s pol- things.” tries to take a hands-on Yet she cautions that for to hear Penney lay out its she says. com, the online florist, that media, online and off, and
icy of being “externally Once arrived at her office, approach, using social all the excitement around transformation plan,” she “It’s usually after every- initially struggled with ensuring better attribution
focused.” Ms Banikarim might meet media actively herself. digital and social media says. “There are a lot of one goes to bed that I start social media. of value across the lifetime
Indeed, Ms Banikarim some of the start-ups dis- “Everybody today needs to marketing, it remains a parallels with Gannett. IT scrolling through articles to “The average person buys of a campaign.
works from New York, 200 rupting the marketing be digital,” she says. “You small fraction of most com- too is a 100 year old com- see what I missed.” flowers two or three times a But data are fast becom-
year,” says Will Wynne, ing the “black gold” of the
chief executive of Arena- industry, Mr Phillipson
Flowers. “So how do we get says. Data are constantly
people to keep following us being gathered from con-
Banners set to become ‘smart and sexier’ without shoving flowers
down their throat?”
Two years ago, Arena
took to Twitter to post
sumers online and can cap-
ture browsing behaviour,
indicating purchase intent,
audience demographics and
photos of bouquets and even past transactions.
Facebook’s revenue. The There are now also non- could link to property, per- are 74 per cent more likely share coupons, and found The sophisticated target-
Advertising company is preparing for a standard formats, such as sonal finance or lifestyle to buy. It uses anonymised that these fell flat. ing of consumers that these
$100bn flotation, and Ms homepage takeovers, or sections, where there might data gathered by cookies to “It wasn’t measurable,” data allow has prompted a
Predictions of the Fenner says: “There’s interstitials, that change be more specific banners for discover which websites says Mr Wynne. “The main resurgence in display adver-
display ad’s demise plenty of life in the banner
format yet.” Her view is
shape when the cursor is
rolled over them. They
relevant products such as
mortgages, investment
individual customers have
previously visited, and to
ways we spend our time are
on pay per click, search
tising in the past two years.
Banner ads, once cheap and
are premature, supported by eMarketer, a might expand to fill a larger accounts, or credit cards. understand their personal engine optimisation and commoditised, have been
writes Jane Bird US-based digital research
company, which expects
proportion of the screen,
then disappear, or reveal
JWT used this technique
for HSBC’s annual sale
preferences.
Sam Barrett, Struq’s chief
affiliate marketing, because
you build big databases to
given new life by the ability
to buy ad slots through
online display to overtake something underneath. campaign. Ms Fenner says: executive, recognises that crunch numbers and be automated exchanges.
Website display advertise- search ads by 2015. “These richer, heavier for- “We needed some signifi- not everyone welcomes very analytical. The social “It’s more efficient and
ments are so pervasive that Ben Gibson, managing mats are much more inter- cant awareness-building, so such surveillance. People side is a bit wishy-washy, the principle behind it is
many industry commenta- director of The Search we developed interruptive can opt out or select like but you can get a soaraway that you are able to look
tors believe they have lost Agency, says: “Although homepage takeovers and and dislike options for spe- Sonali Fenner success – which you can’t before you buy,” says
their effectiveness. search advertising is still ‘Search advertising special builds to tie in with cific products. “We want to do by being analytical.” Marco Bertozzi, managing
So-called banner ads are core, display is enjoying a is still core but the offline advertising and give users control of what says. “We might launch a ArenaFlowers therefore director for Europe, the
increasingly ignored, they renaissance, because it can create a splash.” they see,” Mr Barrett says. single set of banners and changed its social strategy, Middle East and Africa at
say, and will gradually dis- now be targeted for greater display is having To plan this sort of cam- Buying specific locations refine them, or launch mul- employing an external the Vivaki Nerve Centre, a
appear. They expect search
ads, which already account
relevance.”
Also, its effectiveness can
a renaissance’ paign and decide where to
place the banner ads, crea-
is relatively expensive,
whereas identifying generic
tiple ads in parallel and
watch which performs bet-
agency of comedy writers to
pepper its Twitter feeds
division of Publicis Groupe.
The move towards real-
for about 60 per cent of be accurately measured and tive agencies work with customer characteristics is ter. JWT typically reviews with offbeat jokes and one- time exchanges also under-
online advertising, to take optimised for better return ruptive, they make people media agencies such as cheaper. On LinkedIn, an banner performance weekly liners. Followers, replies lines another trend in dig-
over completely. Text-based on investment. Banner ads stop and notice,” says Ms MindShare, OMD and Medi- advertiser might ask for during a six-week cam- and re-tweets rocketed. ital marketing.
search ads appear as the typically come in three Fenner. They also tend to aCom. The agencies ensure banners to be displayed to paign, to check it is gener- As Arena found, the con- “We are seeing a much
first few results of tapping a shapes: the leaderboard at be more complicated and the banners appear at the university-educated people ating the traffic and sales. tent that is widely shared more global approach in
request into a search the top, the sky scraper side expensive to build. The fact right time and place. aged under 35 in London. Although people might online is not always that how advertisers are looking
engine, and in a column column, and the multiple they are non-standard usu- Increasingly powerful anal- Spotting when a banner not click on banners, JWT which the brands expect. at the world,” says Mr Ber-
down the right hand side. purpose unit box that can ally involves extensive col- ysis techniques are used to has worked is fairly easy by believes the evidence sup- Yorkshire Tea, a brand of tozzi. “Big media companies
However, Sonali Fenner, be various sizes. laboration and testing. target banners at those who using metrics such as the ports their continued role. Bettys & Taylors of Harro- such as Facebook, Google
joint head of account man- At first, banners were A financial services com- will find them relevant. number of clicks or page “In the words of Google, gate, made some television and Yahoo are able to work
agement at JWT London, static graphics, but increas- pany might place a generic Struq, a London-based views. Getting banners banner is set to become commercials showing one of with advertisers across
thinks banners will thrive. ingly they include audio, banner on the homepage of agency, says it can improve right first time is not an smart and sexier,” Ms its vans travelling across markets and regions to
They account for most of video and animation. an online newspaper. This targeting so that customers exact science, Ms Fenner Fenner says. the US, but fans on its Face- deliver campaigns at scale.”

4. 4 ★ FINANCIAL TIMES WEDNESDAY MARCH 7 2012
Digital & Social Media Marketing
Nirvana is tantalisingly close Non­profits Turning to web
to snare philanthropists
A New York­based
non­profit called “charity:
to communicate with
supporters. The content it
its subscribers of between water”, which has more puts out is designed not
Mobile 20 and 65 per cent, a level than 137,000 Twitter just to attract more funding
unheard of with traditional followers, uses social media but to engage a community
Tim Bradshaw online marketing. to link supporters to interested in eradicating
explains why the Mobile adspend in the UK
is estimated to have more
photographs and videos of
its work. Meanwhile, its
poverty.
In 2010, the organisation
promised land is than doubled in 2011, Facebook friends can see ran a social media
not quite with us according to the Internet
Advertising Bureau. An
highlights of the fundraising
ball or send in pictures of
campaign called On the
Ground in response to weak
IAB study last year found themselves wearing ts coverage of the Pakistan
F
or a decade or so, smartphone owners go wristbands, hats, T­shirts or floods in US media.
someone has pro- online an average of 18 temporary tattoos. “The mainstream media
claimed every year times a day. This and other non­profits weren’t really going there,”
as the “year of Despite the slow build-up, find social media sites offer says Mr Wu. “So we built
mobile advertising”. many companies have been an unparalleled way of an entire micro­site where
The promise of marketing caught off-guard by the connecting with supporters. people could share stories,
directly to a device in some- arrival of mobile as a seri- In the private sector, social photos and videos of what
one’s hand, material tai- ous media and marketing media have merely shifted they were seeing, and we
lored and targeted to their channel. the way companies allocate made it easy to share that
individual needs, has been a Only 15 per cent of FTSE marketing budgets, but content through Twitter and
long-awaited nirvana. 100 companies have a communication and Facebook.
But a combination of mobile-formatted home- marketing in the non­profit It wasn’t necessarily
small screens, a fragmented page, says the IAB. Many sector have been about our work at Acumen
media market and concerns have leapt with gusto into transformed, giving but it was topical to our
that mobiles may be just app development, which tal- organisations the ability to audience.”
too personal for advertising lies with consumers’ run previously unthinkable Similarly, for Oxfam, the
held back the explosion. greater preference for con- global marketing campaigns. UK­based charity, direct
However, after the aggres- suming content in that for- Once, global campaigns fundraising is only a part of
sive entries into the market mat. meant spending large sums why the organisation uses
of Google and Apple in 2010 However, maintaining a on print or television social media. “It’s more to
and with smartphones tak- mobile web presence is advertising, billboards or raise awareness of what
ing almost half the market important for simple but direct mail, channels that we’re doing so as to
in the US and Europe, last often overlooked tasks such few non­profits could afford. increase the opportunity
year finally saw a turning as email or search queries. “Social media are a for fundraising,” says
point. As a result, the “bounce critical means of getting the Sarah Jordan, Oxfam’s
“2011 was the first real rate” for visitors who leave message out in a cost­ head of digital
year of mobile,” says Brian a site on mobile after view- efficient way,” says James communications.
Wieser of Pivotal Research, ing a single page is almost Wu, at Acumen Fund, a Social media sites allow
an independent equity ana- nine in 10. New York­based non­profit non­profits to communicate
lyst firm. “After many However, despite Google venture fund. more directly with
years of expectation, mobile and Apple lowering the The change coincides supporters than a press
at last arrived as a rela- upfront costs of their dis- with a shift in the profile of release. “Updating snippets
tively mainstream market- play advertising in Febru- donors. Philanthropy is no of information from the field
ing channel.” ary to encourage more into longer the preserve of has immediacy and feels
A barrage of big numbers the market, price has not wealthy individuals and more genuine when our
explains why the technol- been the main barrier to foundations but is humanitarian teams are
ogy has finally broken brands’ use of mobile. increasingly being taken up explaining what’s going on,”
through. The mobile inter- Nielsen found that ads by large numbers of young says Ms Jordan.
net now has a scale of audi- shown on mobile ranked The iPhone4: ‘Mobile [has] at last arrived as a relatively mainstream marketing channel’ Brian Wieser Getty people wanting to give But social media sites
ence that has demanded lowest among any kind of small amounts of money present non­profits with
brands’ attention. media when judged by con- advertising screen,” says searching for online dis- deals did not generate that “geo-targeting remains and track how their audiences that are too big.
A study by Nielsen and sumers’ trust. Just 26 per Christophe Cauvy, Euro- counts. enough revenue to warrant ahead of its time”. donations are used. “With a small team, the
NM Incite, the market cent trusted text-message pean head of digital and ComScore, a supplier of a mention in its filing to go “While some marketers “The onset of social question is how to keep
researcher’s joint venture ads and 27 per cent mobile innovation at JWT, a WPP digital marketing intelli- public. will place value on informa- media and the change in track of it,” says Ms
with McKinsey, found there agency. “The screen size gence, says: “The retail Other check-in apps such tion associated with loca- the philanthropic landscape Jordan.
are nearly as many mobile does not allow much nice, industry, which experi- as Gowalla and Rummble tion, we believe that most are not mutually exclusive, “You have to provide
internet users today as ‘The size of the non-intrusive advertising.” enced an upheaval with the failed to break through to large marketers are not and it’s no surprise that content and have
there were internet users in screen does not So, as more brands move advent of online shopping, the mainstream and folded, organised in a manner that they came of age at the conversations, but how
2000, with 44 per cent of US into mobile marketing, is poised for further disrup- and though their last affords effective manage- same time,” says Mr Wu, do you manage that when
mobile subscribers using a allow much nice, retailers face perhaps the tion, as smartphones enter remaining big rival Four- ment of campaigns targeted who is responsible for there are so many of
smartphone.
ComScore found that by
non­intrusive greatest challenge.
Armed with smartphone
bricks-and-mortar stores,
bringing the internet right
square has notched up
some 15m users globally, it
on the basis of a narrow
geographic location,” he
Acumen Fund’s online
communications and
them taking place on so
many platforms and
the end of 2011, 127.6m advertising’ cameras and barcode- on to retailers’ home turf remains a specialist rather says. fundraising. channels?”
mobile users in the US and scanning apps such as and further complicating than a mass-market propo- “Narrow geo-targeting Acumen Fund uses
108m users in Europe were Ebay’s Red Laser, shoppers consumer conversion.” sition. will be generally inefficient Facebook, Twitter and blogs Sarah Murray
regularly consuming some display ads, lower even are comparing prices in- It notes: “Smartphones As such, Mr Wieser of in terms of costs and bene-
kind of mobile media, than regular banners on the store but buying online have become consumers’ Pivotal Research believes fits for most brands.”
whether through apps or web (29 per cent) and well instead. “We are now seeing most valued shopping com-
the browser – a 30 per cent below adverts in search one item purchased every panion.”
rise on the previous year. results (36 per cent) or on second via mobile devices In such a situation, retail-
Google announced its TV (46 per cent). in Britain, double the rate ers are being strong-armed
mobile revenues hit $2.5bn Similarly, a poll of more we saw at the beginning of into the mobile world
during 2011, including than 4,000 adults in the UK last year,” says Angus whether they like it or not.
searches on tablets such as and US by YouGov on McCarey, UK retail director However, despite the sig-
the iPad, and Facebook behalf of Upstream found at Ebay. “Apps such as Red nificant growth of the past
announced it has 425m that two-thirds would find Laser are blurring the lines 18 months, one element of
mobile users. it unacceptable to receive between online and offline mobile marketing remains
Blyk, a mobile media net- “unwanted advertising” on shopping.” largely out of reach: the
work that works with oper- their mobiles. ComScore found more holy grail of location-based
ators in India and the UK, “The main problem is than half of US smartphone targeting.
said the number of people that ads on such an inti- owners used their mobile Facebook’s attempt to
opting in to view ads leapt mate device are perceived for purchasing in a shop, harness “check-ins” to spe-
from 1m to 4m during 2011, differently from when seen with one in five scanning a cific spots via its smart-
with response rates among on a TV screen or outdoor barcode and one in 10 phone app for localised
Now’s the perfect time for
investors to target music
recorded music sales were choice of songs and music creators, beat the
Guest Column in a digital format, with 98 catalogues containing pirates at their own game.
FRANCIS KEELING per cent of all singles sold millions of tracks. As the late, great Steve
in this way. Some 95 per Models vary from the Jobs would have
cent of these revenues hugely successful recognised, the key to
Adele being cut off in full came from digital-only download-to-own model success is elegant
flow may have been the retailers, with many of the led by iTunes, to video simplicity.
most memorable moment world’s traditional retailers streaming by Vevo and Radio is the ultimate
of this year’s Brit awards, having failed to move to on-demand subscription example of simplicity, with
but the real story of the digital. services by Spotify, Deezer just one button to play. In
music industry’s annual Music has always been and Napster. the US, Pandora – an
jamboree was the part of people’s everyday The key success factor automated music
continuing conveyor belt of activities, whether those be for this new breed of recommendation service
British talent. exercising, eating, driving services is that, for the that creates personalised
This represents a or going to a bar. first time, they offer a radio “stations” – has
creative success story that Now the same applies to better experience than amassed millions of users
sees the UK punch well online experiences such as piracy. thanks to its simplicity.
above its weight in the browsing, blogging and Although this provides In Europe, however, new
global market. tweeting, with digital incredible choice, it digital services have
Successfully exploiting music services increasingly arguably sends a confusing focused on providing
the English language and integrated to everyday life message to consumers. on-demand music and the
our music heritage, British and users streaming many ability to search and listen
artists accounted for some hours of music each day. New breed of to anything, on any device.
12 per cent of global sales For the music industry, services The divide between push
of recorded music during this has meant a big offers a (sit back and listen) and
2011, and no fewer than change, with an increasing better pull (search and discover)
six of the year’s top 20 number of people no longer experience services creates an
best-selling albums worried about owning than piracy opportunity crying out for
worldwide. music. something to fill the gap.
All this takes They just want to be In future, we expect the
investment, and without able to access it and listen Users new to services right service to provide a
this investment there can to their favourite songs require time to understand combination of well
be neither growth nor the whenever they want and, the experience, and it is curated radio stations and
new talent fans rightly crucially, on whatever clear that many services user-generated playlists,
expect. device they have with will take time to settle in. which can be shared
The days when record them at the time. Retailers, with the among friends.
companies physically The phenomenal support of rights owners, Above all, it must be
manufactured vinyl are development rate of need to offer consumers able to make good music
long gone but A&R – technology, particularly of long-term trials, so they recommendations –
Artists & Repertoire, the handheld devices, has led can assess what model is whether based on mood,
almost mythical process of to a change of music right for them. sentiment, genre or simply
divining new talent – is as player from hi-fi to PC, to Spotify has proved this, what someone is hearing
vital as ever. mobile phone and tablet – by converting millions of at that moment.
Finding talent, providing and now increasingly to its free open service users As well as pressing
investment to support connected TV and gaming to paying subscribers. governments to implement
recording, production and, consoles. By developing ideas that legislation to combat
most importantly, Many digital services capture consumer interest, piracy, the music industry
marketing are even more are now available as a the technology innovators is doing all it can to
crucial, now that the downloadable app that can are encouraging content license more legal services
routes to market for new be controlled via TV owners to work closely and to educate consumers.
artists are so diverse. remote. with them and make the Now is the perfect time for
However, a key part of In Europe, there are music licensing process far investors to target music.
our growth will come from more than 300 legal digital easier to navigate.
external investment in new music services operating Only by working in The writer is Global Head
digital services. (67 of them in the UK conjunction with of Digital Business at
In 2011, 32 per cent of alone), offering a vast technology can we, the Universal Music Group