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           Digital & Social Influence Marketing
                                    From monologue to dialogue
                                            2 July 2009 - LAMP @ AFTRS Seminar
                                                  Deck Revised: 26 July 2009



                                                    Martin Walsh
                                        Digital Marketing Director / Producer
                                                     twitter.com/martinwalsh


                                                     © 2009 Martin Walsh. Ver2.2
Notes:
1.   To watch the videos throughout this deck simply click on the video thumbnails.
2.   Some slides also include additional detailed notes so it is best to download the PowerPoint to
     access them in the notes section below the slide.
3.   All of this material is a limited and generalised view of my more detailed knowledge on each
     subject contained in the deck for example; Digital PR, Search Engine Marketing, Social Influence
     Marketing, Measurement & Analytics and Integrated Marketing etc. I have also developed more
     detailed training and strategy decks as well as playbooks, guidelines, task lists, roles &
     responsibility definitions, workflows and everything else associated with strategy development,
     training, execution and the operationalisation of digital marketing.
About Martin
Martin is the Producer of the critically acclaimed and award winning The Battle of Long Tan documentary
and from 2005 to 2009 he led Digital Marketing @ Microsoft defining, developing and executing Microsoft’s
B2C and B2B global digital marketing and social influence marketing strategies & disciplines.
Prior to Microsoft, Martin successfully led and grew the ecommerce division of a large Australian media &
entertainment company from less than AUD$22 million in annual sales to more $AUD700 million in annual sales.
Martin has worked in senior marketing roles across radio, film, music, games, entertainment and the technology industries for companies such
as News Corporation, Village Roadshow / PBL, Austereo, Telstra, BMG (Bertelsmann), Sydney 2000 Olympics and Tabcorp. He specialises in
digital & consumer marketing, social media marketing, social CRM, search engine marketing and online analytics and he has also advised
organisations such as Australian Rugby Union, Cricket Australia, film distributors, games publishers, media and government on how to engage
with consumers, commercially exploit their content and enhance their digital marketing capability & strategies.
In late 2004 Martin established Red Dune Films and acquired the film, documentary & story rights to the Battle of Long Tan from the seven
Australian Long Tan combat commanders. In 2006 he produced the ASTRA award winning & TV Week Logie award nominated Battle of Long Tan
documentary for The History Channel (FOXTEL) which was narrated by Sam Worthington (Terminator Salvation, Avatar & Clash of The Titans).
The innovative marketing & publicity strategy Martin (and Graham Cassidy) developed for the Long Tan documentary & film has so far resulted
in unprecedented media coverage comprising two 60 Minutes stories, magazine cover stories, a national media partnership with News Limited,
a national 40th anniversary service in Canberra which was televised live on the Nine TV Network, a public thank you and apology by Australia’s
then Prime Minister John Howard to Vietnam Veterans, tens of thousands of online video views and fans and an eventual upgrade to the
soldiers gallantry medals. View TV coverage here. Martin is also producing a feature film on Long Tan with Bruce Beresford (Driving Miss Daisy,
Double Jeopardy, Breaker Morant) directing as well as a variety of other feature films and alternate reality games (ARG’s).
Born In Melbourne but now living in Sydney, Martin originally began his career as an Actor before serving with Australian Army Special Forces -
2 Commando Company, 1st Commando Regiment and then studying innovation at Swinburne University earning a Master’s Degree and
Graduate Diploma in Entrepreneurship and Innovation.
Some great resources
 Groundswell: Winning in a world transformed by social technologies.
 Charlene Li & Josh Bernoff


                           Made To Stick: Why Some Ideas Survive and Others Die.
                           Chip Heath & Dan Heath


                                                      The Movie Business: The Definitive Guide to the Legal and
                                                      Financial Secrets of Getting Your Movie Made.
                                                      Kelly Charles Crabb
An Internet Watered Down: or how to save the mobile web.
 Great resources                               John Pettengill, Razorfish

    Digital Outlook Report: 2009                                                   Digital Mom.
    Razorfish                                                                      Razorfish & Café Mom




                                            Click here to get all these
Power to the People Social Media Tracker     reports in one location.
Wave 3 2008 & Wave 4 2009.
Universal McCann
                                           Consumer Experience Report.             Global Digital Insight: Understanding the
                                           Razorfish                               connected generation.
                                                                                   Universal McCann
What’s happening across Media & Entertainment?

                                             CAGR

                                                 13%
                                                 25%

                                                 7%

                                                 6%

                                                 5%

                                                 7%    *40% 2007-2008

                                                 4%
ARG’s: Alternate Reality Games, Marketing & Social Media

 A view to a USD$25b Opportunity

 Watching TV shows when and where you want to is quickly becoming commonplace in a
 world awash with Hulu, TiVo, and iTunes. But if the fragmented media landscape is great for
 consumers, it's hell for advertisers.

 Now, big brands are turning back to an idea as old as P&G-sponsored soap operas -- hiring
 agencies to create entertainment designed to promote products. Only this time, companies
 are doing it via playful webisodes and websites. They are also experimenting with alternative-
 reality games, or ARGs. These puzzles build anticipation for a product release by sprinkling
 clues on the Web and in the real world.

 Spending on these forms of branded entertainment, as it's being called, grew 13 percent in
 2008 to $25 billion, according to estimates from the research firm PQ Media.
ARG’s: Alternate Reality Games, Marketing & Social Media
 The Dark Knight: Why So Serious?                                          Click image to watch video
                                                                      10m unique participants in over 75 countries
 42 Entertainment                                                                across 31 websites.




 Why So Serious? Gave comic book fans and mainstream movie
 goers the chance to live in the world of The Dark Knight.
 Playing out the events of Gotham City in real time, the ARG
 provided the opportunity to explore the strong characters,
 themes and backdrop of the world while punctuating the
 experience with activities that ‘eventised’ the web – like ringing
 cakes with baked in mobile phones, clearing Harvey Dent of
 vicious campaign attacks or helping the Joker to steal a District
 22 school bus to rob Gotham National Bank.
                                                                      http://www.alternaterealitybranding.com/tdk_sxsw
ARG’s: Alternate Reality Games, Marketing & Social Media
 The Dark Knight: Why So Serious?
 42 Entertainment
                                     Click images to watch videos
                       Harvey Dent                            Why So Serious Comicon 08
ARG’s: Alternate Reality Games, Marketing & Social Media
 Trent Reznor: Year Zero                                              Click image to watch video
 42 Entertainment                                            3.5m unique participants in over 60 countries
                                                                         across 29 websites.




 On Feb 10th, Nine Inch Nails and 42 Entertainment
 launched the ambitious Year Zero project, a work of
 cross-media art involving websites, emails, phone calls,
 murals and live events with songs of Year Zero at their
 core. Arguably the most complete and compelling web-
 based piece of art yet created, Year Zero has become an
 Internet phenomenon as well as a dynamic album,
 changing the way people think about the future – and
 the way they act today. These trans-media assets turned    http://www.alternaterealitybranding.com/cannes2008yearzero/
 Year Zero into more than an album you listen to, but a
 place where you live.
Digital Music: Apple Content Strategy
                                                     The iTunes Store                                                                                          The App Store
                        6
                                                           iTunes Scale                                                                                       App Store Strategy
                                                                       • On Jan 06, „09 Apple announced                                       Best-of-Breed                        • App Store economics are
                                                                                                                                                Services
                        5                                                that it had sold 6 billion songs                                                                            identical to iTunes Store –
Songs Sold (billions)




                                                                                                                                   Device                     Carrier Disinter-
                                                                                                                                  Software                       mediation
                        4
                                                                         since launch of the store on Apr                                                                            i.e. 70/30 revenue split.
                                                                         28 „03.                                                                                                   • Despite likely large scale
                        3                                              • On Apr 3, ‟08 iTunes surpassed                      Device                                 Applications     and huge number of
                                                                                                                            Hardware                                  & SDK
                        2
                                                                         Wal-Mart to become the largest                                                                              downloads, Apple will make
                                                                         music retailer in the US.                                                                                   only a small profit.
                        1                                              • Just two months earlier, on Feb                       Sync Client                      Music              • Main goal is a more
                                                                                                                                                               & Video
                                                                         26, ‟08, iTunes surpassed Best                        & Content
                                                                                                                                                                  iPod
                        0
                                                                                                                                 Service
                                                                                                                                                                                     attractive platform that
                                                                         Buy to become the 2nd largest
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…
                             Q…

                             FY03 FY04 FY05 FY06 FY07 FY08 FY09
                                                                                                                             ...Apple makes money selling devices but                drives hardware margin.
                            Source: Apple Press Releases & Microsoft     music retailer in US.                              earns its keep through hardware + client +
                            Analysis                                                                                                service e2e differentiation...

                                                      iTunes Economics                                                                       Quotes about App Store Strategy
                                                                                                                       “We‟re thinking about the App Store in the same way that we think about the
                                                            % of       •   Although iTunes drives billions in
                                                    US $                                                               iTunes store. While it will generate some revenues, it will be a small profit
                                                                           revenue it makes only a small operating
                               Music DTO                    Rev                                                        generator, and just as with the iTunes store making iPods more attractive, we
                                                                           profit.
                                                                                                                       think the App Store will make the iPhone and iPod Touch more attractive to
                        Revenue ($/unit)      $0.99         100% •         Apple uses the iTunes service as a
                                                                                                                       customers. We‟ll hopefully see an indirect return by selling more iPhones and iPod
                           Royalty Costs      $0.70          71%           differentiator but monetizes via the
                                                                                                                       Touches…” - Peter Oppenheimer, CFO, Earnings Call, Jul 21, 2008
                                                                           device.
                           Delivery Costs     $0.10          10% •         “Our objective with the iTunes store is
                           Billing Costs      $0.12          12%                                                       “…One area where we have completely changed the value proposition for mobile
                                                                           to run it just a little above break even.
                                                                                                                       devices is the App Store…Competitors are scrambling to copy our App Store but
                        Total COGS ($/unit) ~$0.92          ~93%           And we think that it helps us to sell
                                                                                                                       it‟s not as easy as it looks and we are far along in creating the virtuous cycle of
                                                                           iPods and Macs, and that is really our
                        Gross Profit ($/unit) $0.07           7%                                                       cool applications begetting more iPhone sales, thereby creating an even larger
                                                                           strategy.”, Apple CFO Peter
                                                                                                                       market which will attract even more iPhone software development….” - Steve
                        Operating Exp ($/unit)~$0.07 ~7%                   Oppenheimer, Q1-08 Earnings Call, 22
                                                                                                                       Jobs, CEO, Earnings Call, Oct 22, 2008
                                                                           Jan „08.
                        Operating Inc ($/unit) <$0.02 <2%
Mobile Phones: App Store Analytics
                                  App Store Stats                                               Revenue into ISV Ecosystem
• On Feb 14th, 2009 – 218 days after launch            of the App Store –       •    App Store pours money into ISV ecosystem
  there were 20,397 apps.                                                                In first month, 60M downloads drove App Store revenues of $30M
• Current App Launch Momentum:                                                            with $21M going to ISV‟s
                                                                                         At current trends, will drive $360M revenue in 1st year, with
   1,400 new apps launched/week
                                                                                          $250M to ISV‟s.
   400 new games launched/week.                                                         FY‟11 est. of $2B revenues w/$1.5B to ISV‟s
• 1B downloads estimated in 1st 12 months.                                      •    Ratio of 1 paid app for every 11 downloads.
• Download Stats:                                                               •    Most revenue goes to a concentrated group of ISVs (perhaps
    Days Since Launch of App Store     60              102   145    189              80% to top 25).
    Incremental Days                   60               42    43     44                  40% revenue goes to top 10 apps
    New Downloads (millions)          100              100   100    200         •    Stories of developers making $100-200K abound, driving a
    Cumulative Downloads (millions) 100                200   300    500              “gold rush” like focus


                          App Store Momentum                                                           App Store Categories
                 25,000
                                                                    20,397
                 20,000        Applications
Number of Apps




                                                                                                                        27%

                 15,000
                                                                                                        14%
                 10,000                                                                                                           3%
                                                                                                        9%                       3%
                                                                                                                                4%
                  5,000                                                                                       8%              4%
                                                                                                                   7%     6% 5%
                     0
                           0
                           2
                           4
                           6
                           8
                          10
                          12
                          14
                          16
                          18
                          20
                          22
                          24
                          26
                          28
                          30
                          32
                          34
                          36
                          38




Note: Analysis, Feb 14, 2009         Weeks Since App Store Launch            Note: Analysis, Feb 14, 2009
TV 2.0: More about Digital and Less about Television
                                         VIEWING &
         CONTENT         AUDIENCE
                                          STORAGE
       PRODUCTION      AGGREGATION
                                          DEVICES
TV 2.0: Today




                Online   Interactive
                Video     Television
TV 2.0: Tomorrow

                     Traditional
                     Television



             Interactive           Online
              Television           Video
TV 2.0: Xbox, Netflix & Social Networking
 Microsoft and Xbox were the only gaming &
 entertainment company to understand the
 importance of the shift in consumer behaviour
 and the convergence of media channels. 1m of                                       Click images to watch videos
 Xbox Live members are already Netflix members
 and have watched more than 13m videos (1.5b
 minutes) through Xbox.

 Xbox has the highest software attach rate vs
 Playstation and Nintendo with less market share      Xbox Entertainment Platform
 than WII but greater than Playstation.

 Xbox Live is already one of the largest social
 networks in the world with more than 20m active
 users and 56% of them pay!

 At 2009 E3, Microsoft Xbox announced the
 integration of Twitter and Facebook into Xbox Live
 and upgrading of video to 1080p.

                                                       Xbox Twitter & Facebook
Gaming: Quick Stats
There are approximately 93m games consoles in the home.                            Worldwide Top Super Genres

                                                                      70,000,000


The average age of a gamer in Australia is 30 years old. By
                                                                      60,000,000
2014 the average age will be 40 years old.
                                                                      50,000,000

84% of 16-25 year old Australians play games.
                                                                      40,000,000




                                                              Units
46% of Australian gamers are female up from 41% in 2007               30,000,000
but by 2012 the proportion between male and female will be
equal.                                                                20,000,000




19% of Australians are already downloading their games                10,000,000


from online vendors.

The average cost of producing games is now between $10m
and $50m.

Gamers take more advantage of Web 2.0 functions on the
Internet.
Current Media Landscape (By Discipline)
    Landscape is fractured; territory battles continue between digital and offline media organisations and
    agencies, particularly over interactive TV and video as GRPs decline.

                                                                                                                              Radio
•      Media is trying to tap into the
       media dollars allocated to                                                                                             Local TV
                                                                                                         OOH
       emerging media / gaming, digital,                                                                 Guerilla                   Offline
       and sponsorships.                                                     Emerging
                                                                                             Digital                                              Newspaper
                                                                                             OOH                                   (187B$+)           Magazine
•      Key growth opportunities exist at                                     Channels          VOD TiVo                                    DRTV
       the intersections:                                                        Mobile          Set-top
                                                                                                 video                     Broadcast TV
               •    Online Display and Video                                                     extensions Google TV
                                                                                    Gaming                                  Cable TV
               •    Cable Television                                                                             Online
               •    Broadcast Television                                                                         Video
                                                                                    Search                                Content integration
                                                                         Digital ($26B+)   Online
                                                                                                                            Product Placement
                                                                                                       microsite /
                                                                                  Display              brand
                                                                                                       extensions         Sponsorships
                                                                                                                             Events

                   Size of circles is not proportional to agency head count or channel
                   spend. Emerging channels / sponsorships spend included in digital        18
                   and offline totals.
Why am I spending time on
this?
Change, chaos and
confusion =
                           Opportunity!
    And original content
      will always be
         needed!
DIGITAL MARKETING IS MARKETING
THAT LEVERAGES THE INTERACTIVE
CONNECTIONS BETWEEN SEEKERS AND
PROVIDERS ENABLED BY DIGITAL MEDIA
AND DEVICES.
Video
Brands and Digital
Marketing Platforms
The Marketing Funnel
Isn’t Linear
(hell, it’s not even a funnel)
Traditional Marketing Models Fail to Model Complex Buying Paths




 Traditionally, marketers modeled customers’ decisions as they progressed from awareness through consideration, preference, action, and loyalty
 — through what is called the marketing funnel. The marketer’s job was to move people from the large end down to the small end. But now it’s
 time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they
 lead the dialogue. We must rethink the marketing funnel because:

 •    Complexity reigns in the middle of the funnel.
 •    The most valuable customer isn’t necessarily someone who buys a lot.
 •    Traditional media channels are weakening.
 •    Consumers force brand transparency.
Traditional Marketing Models Fail to Model Complex Buying Paths
 •   Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that a product or
     service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such
     as recommendations from friends or family, product reviews, and competitive alternatives described by peers
     influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers
     don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back
     alleys, alternate entry and exit points, external influences, and alternative resources.

 •   The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era in which peers
     influence each other as much as companies do, good customers can’t be identified solely by their purchases.
     Companies also need to track individuals who influence others to buy. For example, a customer who buys very little
     from you but always rates and reviews what she buys can be just as valuable as someone who buys a lot — her
     reviews might influence 100 other people to buy your product. Tracking only transactions and loyalty at the end of
     the funnel misses this significant element of influence.

 •   Traditional media channels are weakening. Marketers continue to use mainstream media messages to move
     consumers into a consideration frame of mind. But passive consumption of media is waning. Individuals dismiss or
     ignore marketing messages in lieu of information available from an ever-increasing number of resources, such as
     product review sites, message boards, and online video.
Today’s Complex Buying Paths


                               Marketing complexity means that traditional
                               methods and metrics fail to address and capture
                               the whole story. Online metrics like unique visitors
                               to a Web site, number of pages viewed, and time
                               spent per page mimic offline media metrics of
                               reach and frequency. But traditional marketing
                               and traditional measurement doesn’t address or
                               indicate the engagement of an individual; they fail
                               to address or capture the sentiment, opinion, and
                               affinity a person has towards a brand as
                               manifested in ratings, reviews, comments in blogs
                               or discussion forums, or the likelihood to
                               recommend to a friend.
Marketing Needs to Shift Focus from Low Value Broadcast Campaigns to High-
                    Value Timely & Relevant Programs
Traditional Marketing Approach
                     Good at:
                         – Helping you better target your
                           marketing
                         – Predicting response rates
                         – Optimizing spend by reducing
                           marketing waste
                         – Understanding buying modalities


                     Not so good at:
                         – Answering the “When” question
                         – Lending itself to automation
Real-Time Marketing Approach
Good at:
    – Identifying new sales opportunities and
      changes in behavior
    – Immediately triggering a marketing
      response
    – Building program equity through
      automation


Not so good at:
    – Understanding the entire customer context
No Shrugging Shoulders: Move More Marketing Real-Time
Now, it’s a big digital
world out there…
Video
Consumer Behavior in
Australia has changed…
         In fact consumer behaviour changed two years
         ago so social media behaviour is not ‘a new fad’!
Starting in 1995 people
became interested in
online content…..
13 Years of Online Content Growth!




            # display impressions across the web (millions)
But a few years
ago…..
…people started to become
more interested in each
other…..
Social Media Marketing
     Questions start conversations
“Social Media is like teen sex. Everyone
wants to do it. Nobody knows how.
When it’s finally done there is surprise
it’s not better.” Avanish Kaushik, Occams Razor
In all seriousness though, officially.....


  SOCIAL MEDIA IS AN UMBRELLA TERM THAT
  DEFINES THE VARIOUS ACTIVITIES THAT
  INTEGRATE TECHNOLOGY, SOCIAL
  INTERACTION, AND THE CONSTRUCTION OF
  WORDS, PICTURES, VIDEOS AND AUDIO.
Putting it more simply:



                 “Social media is
                  people having
              conversations online.”
SOCIAL NETWORKING SITES ARE
OFFICIALY MORE POPULAR THAN PORN
SITES.
TIME OCTOBER 13, 2007
Social media sites are mushrooming
But it’s still a dynamic environment




                                       So don’t put all
                                       your eggs in one
                                       basket!
Social media – The conversation prism



Social media is primarily
about conversations, so it is
important for you to
understand where the
conversations are taking
place.
Social Media’s Growing Importance
                                                 Total minutes consumed by Top 100 websites




 *On Demand Media explodes; ComScore Networks and Piper Jaffray & Co.
The conversations are powered by:
                          •   Blogs
                          •   Micro blogs
                          •   Online chat
                          •   RSS
                          •   Widgets
                          •   Social Networks
                          •   Social Bookmarks
                          •   Message boards
                          •   Forums
                          •   Podcasts
                          •   Video sharing sites
                          •   Photo sharing sites
                          •   Virtual worlds
                          •   Wikis

                                       (…just to name a few)
Understanding Social Media: some video snacks

Click an image below to watch a short video >
It is absolutely critical for
marketers to understand
WHY people are participating
in social networking….
Why users participate in Social Networking
 Time and time again we hear agencies advising clients that they need to have
 a Facebook page or develop a social networking application as part of the
 social media program or marketing campaign.

 If you don’t understand the fundamental attributes of why consumers
 participate, for example meeting others, keeping up friendships or being
 entertained then you are simply wasting time and money and in some cases
 being counter productive to your marketing efforts.

 If you don’t develop a presence or application which addresses some or all of
 the attributes on the next couple of slides then don’t bother.
Why users participate in Social Networking
 Why audiences engage in social networking:
 •   Meet people - 78% join to communicate with existing colleagues or develop new
     acquaintances

 •   Be entertained - 47% join in order to find entertaining content such as photos, music or
     videos

 •   Learn something - 38% join to get information from other people about topics that
     hold particular interest to them

 •   Influence others - 23% join to express their opinions in a forum where their ideas can
     be discussed or acted upon
Why users participate in Social Networking
 More broadly:
 •   Keeping up friendships – Facebook is about connecting with people you know.
 •   Making new friends – We’ve all heard stories of people hooking up on social networks.
 •   Succumbing to social pressure from existing friends – People in the groundswell want
     their friends there too.
 •   Paying it forward – Having seen that a site is useful, you may be moved to contribute.
 •   The altruistic impulse – People give blood because they think they should.
 •   The prurient impulse – People are fascinating. Some are sexy, some are entertaining, and some,
     frankly, are stupid.
 •   The creative impulse – Not everybody is a photographer, a writer, or a videographer, but for thow
     who are the web is perfect to show off their work.
 •   The validation principle – People who post information on Yahoo! Answers or Intuit’s tax wiki
     would like to be seen as knowledgeable experts.
 •   The affinity impulse – If your soccer team, your PTA, or your fellow Swans fans have connected
     online then you can join and connect with people who share your interests and concerns.
The Social Media Stack




In order to leverage the Social media opportunity you must first understand the Social Media Stack. It is not a traditional publishing medium where you
simply serve a banner ad and expect a response. All you can do is try to inspire conversations through some sort of creative and communication, then enable
and facilitate conversations through applications which allows you to connect to the users.
1. Platforms give you access to reach and connections
2. Applications enable the interactions
3. Ads can inspire the conversations
Evolution of online advertising
How additional brand value is created on social networks
The world has also shifted from Passive consumption
to Active participation
More than
13,000,000
    articles
> 100,000,000 videos viewed per day
88% is new and original content
65,000 new videos / day
400,000,000
blogs
73m in China alone
3,600,000,000
photos on Flickr
5,000,000,000
minutes spent on Facebook everyday
1,000,000,000
links, news stories, blog posts, photos &
videos shared each week on Facebook
1,382%
Monthly growth rate of
Twitter users from Jan
to Feb 2009

and 3,000,000
       Tweets per day    But, only
                                     Of Australians
                             4.4%    are on Twitter
62%
of online Australians read blogs
62%       (5.3m)

 have joined a
 social network
79%
watch video clips
online
AND THIS FUTURE IS TODAY,
NOT TOMORROW…
By 2010, Millennials / Gen Y-ers
will outnumber Baby Boomers.
They are today’s “digital natives.”
MILLENIALS SPEND
> 16 HOURS / WEEK
ONLINE.
96% OF THEM HAVE
JOINED A SOCIAL NETWORK.
They have an average of
53 online friends.
Trends
Gen Y: Emotionally Searching For Their Identities

Adolescents and early adults are at a period of self-discovery, shaped by their
environment, education and activities, and social culture. That's why they:

• Seek recognition and fame.

• Enjoy absurdity — and humor with an odd slant.

• Embrace a variety of subcultures.
Trends
Gen Y: Mentally Fickle And Creative

Few Generation Yers can remember a time when technology — from DVDs to PCs —
did not play an important part in their lives. Having grown up with deep exposure to
media and devices, they:

• Skim text and information quickly.

• Are easily bored.

• Are expressive and creative.
Experience and engagement
matters…
Marketing and customer behavior has changed
ediocre experiences just don’t resonate with today’s customers
M

Life would be so much easier for companies if their customers still responded to the
same old marketing pitches. But unfortunately, customers are heading in the opposite
direction and getting tougher to win and keep.

Forrester research shows that consumers:

• Aren't easily influenced.

• Care more about price.

• Use more channels.
Marketing has changed
But Companies Still Head Towards Customer Experience Mediocrity 

What have companies done with their customer experience efforts to survive in this era
of skeptical, empowered customers? Not much. For example, when we evaluate
organizations' Web sites, they often fail even the most basic tests of usability and brand
building. What causes these problems? Ultimately, companies don't deliver strong
customer experiences because of:

• Siloed efforts.

• Industry tunnel vision.

• Self-centered design.
Consumers want more from brands
They want less promise and more experiences



 From brochure-ware websites...
Consumers want more from brands
They want less promise and more experiences
To everyday experiences + interactions...




                                     *Optimised for all devices & services
Services which can be mixed and mashed
Consumers no longer care about
advertising.

They care about what their
friends and peers think.
And this is not a fad.

It’s a fundamental shift in
the way we communicate.
“IN 2008, IF YOU’RE NOT ON A
SOCIAL NETWORKING SITE,
YOU’RE NOT ON THE INTERNET.”
IAB PATFORM STATUS REPORT USER GENERATED CONTENT SOCIAL MEDIA AND ADVERTISING, APRIL 2008
The old communication
model was a monologue
The average person is exposed to

3,000           advertising messages / day.
Only 18%     of TV ad
campaigns generate
positive ROI
90% of
people who
can skip TV
ads, do.
People have become less interested in the ads




                 Click-through rates on display ads
1995   2009
AND ONLY 14%
OF PEOPLE TRUST
ADVERTISEMENTS.
BUT 60%
OF AUSTRALIANS TRUST THE
RECOMMENDATIONS OF
OTHER AUSTRALIANS.
NIELSEN ONLINE CONSUMER GENERATED MEDIA REPORT JAN, 2008
So......

           14%   vs.   60%
                 hmm….
But it is still about the total sum of the parts.

TV + Radio + Print + Display + Search + Social
Media = a better integrated marketing
result.

You need to understand that advertising
now inspires the conversations.
Digital Marketing
Thinking More Broadly...

     Lester Wunderman’s Nine Points For The Future Of Advertising:

          1   Interactive marketing on the Internet is a strategy, not a tactic
          2   The customer, not the product, must be the hero
          3   Communicate with each customer or prospect as an audience of one
          4   Create relationships
          5   Know and invest in each customers Lifetime Value
          6   Media is a contact strategy
          7   Be accessible to your customer
          8   Acquire customers with the intention of loyalising them
          9   You are what you know
We have seen the rise of information democracy
    From information asymmetry...
      • Information was scarce
      • Customers were ill-informed
      • Exchanges were monologues
      • Marketing was “command-and-control”

    … To information democracy
     • Information is ubiquitous
     • Customers are well-informed
     • Exchanges are conversations
     • Marketing is “connect-and-collaborate”
The new communication model
is a dialogue
Which means it’s….


TRANSPARENT
INCLUSIVE
AUTHENTIC
VIBRANT
CUSTOMER-DRIVEN
And it’s NOT….


CONTROLLED
ORGANISED
EXCLUSIVE
PRODUCT-DRIVEN
“ON MESSAGE”
“Content is the new democracy
and we the people, are ensuring
that our voices are heard.”
Brian Solis, “The Social Media Manifesto.”
Translation:

THE TRAIN IS LEAVING THE
STATION.

WITH OR WITHOUT
YOU.
HOW DO I GET ON THE


       ?
TRAIN
Stop thinking ‘campaigns’
Start thinking ‘conversations’
“Social Media is a commitment, not
a campaign.”
Martin Walsh, Microsoft Social Influence Marketing: Point of View Manifesto
October 2007
And by the way,
hope is not a strategy.
Social Media Marketing
A Systematic Approach to a Social Strategy
Consumers using social technologies threaten traditional marketing institutions like brands and ad campaigns. For the most part,
marketers understand that there's no choice but to dive in and use some of those technologies — blogs, communities, wikis, widgets,
social networks, and all the rest — to their own advantage. We get questions from our clients all the time about how to implement
these technologies. But they're often asking the wrong question first.

Don't ask what technology to use. Ask first who you're trying to reach, what you're trying to accomplish, and how you plan to change
your relationships with your customers. Then, and only then, can you decide what technologies to use.

We outline below a systematic method for social strategy formation:

1.   Listen. Benchmark the existing conversations around yours and your competitors brands, products and services.
2.   People. Review the Social Technographics Profile of your customers. (see next slide)
3.   Objectives. Decide what your goals are.
4.   Strategy. Determine how your objectives will change your relationship with customers.
5.   Technology. Choose the appropriate technologies to deploy.
6.   Engagement. Social Media is not a passive medium and doesn’t follow traditional marketing rules so you need to develop
     playbooks, policies, guidelines, clear roles & responsibilities and methods to successfully engage with consumers & influencers.
7.   Measurement. You must develop a plan which allows you to determine and measure social media’s influence on your marketing
     investments and efforts. It is critical that the insight and information is actionable.
SMM Program Goals: Improved Visibility, Strategy, Capabilities Across
the Social Media Spectrum

  Ignore      Watch       React      Engage      Leverage     Drive
“It’s about conversations, and the best
communicators start as the best
listeners.”
Brian Solis, Social Media Manifesto
A.

     Listen.
Immerse yourself in the conversations.




                            (any or all of the above are a good place to start!)
Listening - Benchmark
Understand and Measure Existing Online
Conversations:

A Benchmark report allows you to answer questions like;
how many people are talking, what are they saying, and
whether consumers are frustrated or satisfied with your
products and services and many others.

It allows you to understand the entire social media landscape in relationship to your brand,
products, services and important issues for example your Share of Voice (SOV), where the
conversations are taking place, sentiment and who the key influencers are.

It should include a highly comprehensive executive analysis to produce actionable intelligence that
goes far beyond simple online "buzz" analysis. The Benchmark should provide detailed topic and
sentiment analysis as well as authority information about the key sites, authors, posts and
comments that comprise the "conversation ecosystem" around your brand.
Listening: Tools
Listening - Social Media Monitoring Dashboard




TruCast.
Listening - Social Media Monitoring

You must also map the
Ecosystems relating to your
brands, competitors and key
topics so you can identify
where the conversations are
taking place, who the key
influencers are, what your
share of voice is and what
sentiment exists.
Listening: Share of Voice - 5 Key Scenarios (example only)


                                        Share of Voice
                                   Windows%       Apple%
 More Media, More Places                6%            60%
 All Your Email One Place              20%             4%
 Work From Anywhere                    24%            10%
 Share Memories As They Happen          5%            24%
 Keeping Kids Safe Online              20%            17%
B.

     People.
People: Review the Social Technographics profile

 •   Most people often approach Social Media as simply a list of technologies to be deployed as
     needed — a blog here, Facebook page, community or Twitter account there — to achieve a
     marketing goal or because it is the latest Shiny Object.

 •   But, a more coherent approach is to start with your target audience and determine what
     kind of relationship you want to build with them, based on what they are ready for.

 •   Forrester’s Social Technographics Ladder classifies people according to how they use social
     technologies.

 •   By examining how the technologies are represented in any subgroup, strategists can
     determine which sorts of strategies make sense to reach their customers.
Australian Social Media Participation Ladder
Forrester Social Technographic Tool -
http://www.forrester.com/Groundswell/profile_tool.html


   Creators: make social content go. They
   write blogs or upload video, music or text.

   Critics: respond to content from others.
   They post reviews, comment on blogs,
   participate in forums, and edit wiki articles.

   Collectors: organise content for
   themselves or others using RSS feeds, tags
   and voting sites like Digg.com.

   Joiners: connect in social networks like
   Facebook and MySpace.

   Spectators: consumer social content
   including blogs, user generated video,
   podcasts, forums or reviews.

   Inactives: neither create nor consume
   social content of any kind
C.
Objectives.
Objectives: Determine your social media objectives
By itself, the profile of a target customer only tells a marketer what's possible. Next you should decide what you want to accomplish.
FYI - an objective is not ‘establish a Twitter account.’ There are generally eight main objectives of social strategies for connecting with
consumers. To get started, pick the one that's best suited to your company's overall goals:

•    Listening. Find out what customers are really saying in order to understand them better.

•    Talking. Spread messages about a company.

•    Energizing. Get a companies best customers to evangelise it’s products.

•    Spreading. Get customers or users within a company to encourage others to adopt a product or service. (B2B only)

•    Supporting. Help customers support each other to solve each other’s problems.

•    Embracing. Integrate customers into the way the business works, including using their help to design products and improve processes.

•    Managing. Empower employees and managers within an organisation.

•    Social Impact. Improve society with non commercial applications.

For example - if your key objective initially is energizing your most loyal customers then executing against this objective allows you to
give a voice to your enthusiastic customer base and with the right social strategy this has the potential to increase sales.
Example: A Social Media / Social Influence Strategy Overview
                                                      Strategy 1: Social Media Program Management
                                                                                • Objectives
                                                                            • Strategy & Tactics
                                                                        • Monitoring, tracking, analysis

                                                                Strategy 2: Engagement Programs
                 Strategy 2a: Audience Advocacy Programs                                               Strategy 2b: Social Media / Digital PR
            Identify and engage various audience Advocate groups to become a              Identify and engage key writers, bloggers and mainstream influencers that
           word-of-mouth channel that will facilitate learning and trial of multiple              will facilitate through a formal proactive outreach program.
           Microsoft products and services among their families, friends and peers.




                                                                                                                                                                      Search Engine Marketing
                     On Network                              Off Network


                                                                  Strategy 3: Online Experiences
           Build and facilitate online experiences where customers can come together and showcase inspiring product stories, compelling examples and ‘how to’s’
                                                 delivered through the voice of our brands, partners and passionate customers.


                                        On Network                                                                     Off Network

                                                                           User Generated Content

                                                                              Wiki’s     Ratings
                                                                               Blogs     Reviews
                                                                             Forums      Video casts
                                                                        Communities      Audio casts
                                                                          Comments       Photos
                                                                           Feedback      RSS
                                                                 Social bookmarking      Tagging
Social Media Plan
Primary objective: Harnesses genuine experiences and inform and inspire customers in ways that are interactive, dynamic, and
                   personal.

Objectives                                                                             Goals: Brand = net favorability for our brand in web sphere = +share of voice,
1. Leverage the passion and experience of our most engaged audience to drive buzz      sentiment, recommendation = Net Promoter
    and excitement for our brands, products and technologies
2. Building on ‘help and how to’ enable engaged audiences to share their delight and   Strategies
    passion for our brand / product with others through UGC.                           1.   Social Media Management (SMM) – What really influences
3. Understand and monitor the sentiment and share of voice that we have online. Find   2.   Engagement Plan – Reach out, engage and facilitate favourable conversations
    strategic opportunities to participate in the conversation and increase volumes.        a) Consumer Advocacy Program – Organize passionate audiences to drive the conversation
                                                                                            b) Social Media / Digital PR Program – Converse and influence the influencers
                                                                                       3.   Online Experiences – Give us a voice in the community (on network and off network)

Questions to be answered
1. Can we move the share of voice online closer to relevant competitors?                                      SMM
2. Will moving share of voice impact market share? Purchase decisions?
3. What is the right balance between advocates and our own voice?                                                            measure              ID potential
4. Will strong advocates move the sentiment among audiences?                                                                                       advocates


What the plan is not
1. Strengthen partner ecosystem                                                                                 Increase                                           Contact
                                                                                                                 volume                                             them
2. Deep gaming scenarios
3. Shopping aids                                                                                                                                                             Advocacy Program
4. E Commerce plan to drive online sales of relevant products


                                                                                                                      Amplify
“UGC is useful to nearly 1/3 of consumers as they research products and services.                                   their impact
                                                                                                                                                        Arm them

The most trustworthy of all UGC is that which appears on a company’s own website.”
                                                                                                                                       Activate
                                                        David Card, Jupiter Research         Online Experience                          them
D.
Strategy.
Strategy: Determine how your objectives will change relationships with your customers
Your objective determines what business goal you want to accomplish. Having decided on the objective, you can move on to strategy:
how will you accomplish the goal? In particular, social strategy revolves around answering this question: How do we want to change
our relationship with our customers?

While activities like social marketing campaigns can sometimes have a short-term impact, the long-term value of activity in the social
world is the ability to change relationships with customers. By focusing on the relationships, not the technologies, marketers can keep
their eye on long-term change that matters. To flesh out this type of strategy, we should take the following steps:

•    Describe the new relationship. Our current relationship with most of our customers is as a trusted supplier of software which just
     works. In energizing our core customers, we will extend this relationship, giving our satisfied customers opportunities to discuss their
     experiences on our website, and by doing so, motivate other customers to buy and help establish a better perception of our products.

•    Measure the impact of the change. It's crucial that we have metrics in place to measure progress towards the objective. For example,
     in energizing strategies we should measure to what extent visitors to social elements of the site are more likely to actually buy
     something. If our objective is talking with customers, we should measure awareness, impressions, or online buzz. If it's supporting, we
     should look for declines in support costs related to site visits. Regardless of the objective, our strategy is not complete without a
     success metric.

•    Identify barriers to the strategy. Change created by social strategies is often difficult for companies to swallow. For example, we are
     starting to have more direct relationship with all of our customers. By featuring customers' opinions on its site, we will be admitting
     that those consumers influence buying decisions as much as we do, a transition some Microsoft marketers might find difficult to make.
Strategy: Example Only
Strategy 1: Social Media Management
           •     Develop a baseline / benchmark of relevant sentiment and share of voice and map the ecosystem
           •     Monitor, engage and track relevant Social Media conversations
           •     Build engagement programs specific to individual scenarios focusing on most influential conversations
           •     Monitor engagement strategies against SOV/sentiment Strategy

Strategy 2: Advocate Community and Energise UGC
           •    Launch a Windows Advocate Community on MSCOM Australia
           •    Test and learn best practices for ‘onboarding’ advocates
           •    Grow advocate community
           •    Showcase User Generated Content (UGC) across the Windows network

Strategy 3: Online Peer to Peer Discussions – Forums
           •     Develop "owned" / managed forums with a friendly consumer "front end" focused on the needs of consumer
                 scenarios where Windows plays a key role
           •     Facilitating peer to peer conversation on Windows properties will increase Windows SOV in online conversations
                 currently being dominated by Apple and Yahoo.

Strategy 4: Digital PR and Social Media Newsroom
           •     Identify and consistently engage key influencers; bloggers and the media, to drive more favourable conversations &
                 Share of Voice (SOV) and minimise negative sentiment.
           •     Establish a Social Media Newsroom on MSCOM
E.
 Technology.
Technology: Select and deploy appropriate technologies

By this point, you should have determined your customers' profile, what technologies they will accept, and at what rate. Since you also
now know your objective and have nailed down a strategy, you can now evaluate technologies.

This is why it makes sense to evaluate technologies only after you've finished the other steps. The technologies you choose will be
determined by the technographics profile of your customers, your issues, problems, objectives and strategies.

1. For example, you could recommend deploying Ratings and Reviews because 32% of Gen X online customers in Australia are likely
   to be Critics. The best energizing technology would be to deploy these ratings and reviews on our Web sites and encourage
   customers to post their own evaluations of our products. 76% of all Australians use online reviews to help them make purchases. It
   has already been proven that ratings and reviews can significantly increase sales and increase sales conversions between 29-50%.
   Forrester's research shows that 80% of customer-supplied reviews are positive.

2. In addition, we should also establish a online community to allow our energised customers to support other customers around our
   products and technologies. Most people come to MSCOM and in particular our Windows sites for post-purchase information and
   there are hundreds of thousands of people, forums and websites out across the Internet who deal with niche topics such as Media
   Centre or Photos or Windows Tweaks & Tricks.

3. User-generated content. We might also enable customers to energize others by allowing them to upload their own articles, videos
   and pictures of their experiences with our products.
F.
 Engage!
Develop your engagement
rules and response
management approach first…
Social Influence Marketing
 Successful Social Influence Marketing Requires Engagement
 By now, it’s clear that successful Social Media programs don’t follow traditional marketing rules; they can’t be
 treated as channels because social networks aren’t passive Web pages. Instead, marketers should mimic how bands
 promote themselves on sites like Facebook / MySpace — they engage their fans by posting frequently, providing
 backstage gossip, and answering their questions. Marketers should emphasize and place a focus on relationships at
 the center of their Social Media effort:

 • Know what kind of relationship you want to develop.

 • Provide real value.

 • Get employees to be actively involved.

 • Participate without fear, and respond quickly to feedback.

 • Keep growing the relationship.

 • Use the right metrics.
Use a stepping approach:
Develop your policies,
guidelines and
playbooks before you
engage.

Educate and train your
team.
Get your response
assessment decision
tree, rules, roles &
responsibilities and
workflow sorted…
User Generated Content
 Six Tactics To Successfully Engage With UGC
 Interacting with customers at a more intimate level requires a different way of thinking. While the loss of control and exposure
 created though the necessary openness can be troubling at first, there are some key tactics companies can use to stay on top of
 the situation. Knowing where communities currently congregate and what is being said is critical before you attempt to enable
 your own UGC. To begin with UGC, follow these six steps:

 1.     Monitor customers generating content about your brand, products and or needs.

 2.     Leverage your UGC community.

 3.     Participate in existing customer-driven communities.

 4.     Respond to negative commentary.

 5.     Select the right technology to engage your customers.

 6.     Enable your audience to create content on your behalf.
User Generated Content
 You can track its value!
Social Media Engagement Models
Remember, messages are not conversations.
Structured Approach to Social Media
 2. Strategic Plan                                                                     3. Active Engagement
• What are most effective ways to reach audience with                                       • What affinity groups are evident and how do they
  content and brand artifacts?                                     3.                         self-organize?
• Who are where can we begin the process and leverage             Active                    • Which individuals represent the proper sentiment
  network effects?                                             Engagement                     for our metrics and goals?
• How can we use intelligence to improve search and                                         • How has message and proliferation changed over
  keyword strategy?                                                                           time?


                                                                 Brand           4.
                                                    2.
                                                               Messages &     Evaluate
                                              Strategic Plan     CGM        Effectiveness


                                                                                       4. Evaluate Effectiveness
          1. Ecosystem Mapping
                                                                   1.                       • What is the update and adoption rate and how are
              • What is the baseline level of activity and                                    my artifacts being spread?
                sentiment occurring in the ecosystem?           Ecosystem                   • How can I leverage the network to amplify the
                                                                 Mapping
              • What are the affinity groups centered                                         impact?
                around identified relevant topics?                                          • How can we take this insight and optimize
              • Who are the subject matter experts                                          • Future marcomm initiatives
                and influencers in these affinity groups?                                   • Feedback loop
Audience Advocacy Program
Primary objective: Identify and engage Brand Advocate groups to become a word-of-mouth channel that will facilitate learning and
trial of multiple our products and services among their family, friends and peers.

Phase 1 Objectives                                                                           Tactics
1. Organize passionate customers to drive conversations                                      1. Identification methodology and recruitment program to build & engage advocate base
2. Drive greater retention through deeper engagement across product lines                    2. Horizontal community that supports multiple products, services & experiences
3. Facilitate peer learning and sharing                                                      3. Points driven recognition program to deepen and drive engagement
4. Macro understanding of influential powers of different types of advocates.                4. Tools to facilitate sharing, learning and doing
Long Term Objectives                                                                         5. Deploy 3 types of advocates to test and learn where we can be most effective; FTE’s,
1. Provide us with an authentic way to gather and operationalize customer feedback              formal advocates and self proclaimed advocates.
2. Exponentially grow WOM and increase customer lifetime value
3. Micro understanding of influential power of 3 different types of advocates. Build         Goals: Growth and engagement patterns of advocates, +online registrations, +cross
   engagement campaigns accordingly.                                                            product usage, -churn

Questions to be answered
1. Can we identify and activate our brand advocates?                                                                                                                                                      Refine ID/Profile Algorithms
                                                                                                     Community
2. Will they be willing to consistently showcase their own inspirational/aspirational uses                                                                         Advocate/Social Networks

                                                                                                     Pilot Design




                                                                                                                                                          Scale
                                                                                                                                                                  Other Users/Social Networks
                                                                                                                                                                     Users/Social Networks

   of multiple products?                                                                                                                                                 Campaigns
                                                                                                                      Start
3. Through this community platform, can we cultivate and grow our base of passionate,                                 Here                                           Ongoing Data Mining

                                                                                                                                                                           Refine
   engaged customers?                                                                                                Build ID
                                                                                                                    Algorithm
                                                                                                                                              Outreach to
                                                                                                                                              advocates                  Community
                                                                                                                                                                         Strategy &
                                                                                                                                                                                             Recruit
                                                                                                                                                                                             Users
                                                                                                                                                                                                             Tour
                                                                                                                                                                                                           Community               Opt-in




                                                                                                      Overlay
4. Can we measure the impact on loyalty and retention?                                                          
                                                                                                                
                                                                                                                     Über user
                                                                                                                     Segments
                                                                                                                                               Tour
                                                                                                                                               Survey
                                                                                                                                                                          Platform


                                                                                                                                              1:1 Interview
                                                                                                                     Show & tell tendencies                                        TRACKING
                                                                                                                    Special interests                                         Activity level                                 COMMUNITY
                                                                                                                                                                                                                           Challenge/Solutions             Feedback
What the plan is not                                                                                                                                 Dashboard
                                                                                                                                                                            
                                                                                                                                                                            
                                                                                                                                                                                Referrals
                                                                                                                                                                                Ratings
                                                                                                                                                                                                                       
                                                                                                                                                                                                                       
                                                                                                                                                                                                                            Tips/Techniques
                                                                                                                                                                                                                            Cool ideas
                                                                                                                                                     Reporting                 Cross-product usage                        Special spaces
1. Brand generated vertical communities                                                                                                                                     
                                                                                                                                                                            
                                                                                                                                                                                Content creation
                                                                                                                                                                                Retention
                                                                                                                                                                                                                       
                                                                                                                                                                                                                       
                                                                                                                                                                                                                            Contests
                                                                                                                                                                                                                            Promotions
                                                                                                                                                                                                                                                            Refine
                                                                                                                                                                                                                       
2. Viral marketing campaign with short-term results                                                                                             Scale/Growth Triggers                                                       Feedback




                                                                                                                                                                                                                                                          Engagement
                                                                                                                                                 Evaluate




                                                                                                                                                                                                                                                            Drives
                                                                                                                                                 Expand Community
3. One way, brand-to-consumer communication                                                                                                       Scope
                                                                                                                                                                                     USER TYPE
                                                                                                                                                                                                                               RECOGNITION
                                                                                                                                                                                                                            Catalyst for deeper
                                                                                                                                                                                                                             engagement
                                                                                                                                                                                    Casual
                                                                                                                                                                                                                            Drives WOM
                                                                                                                                                                                    Über
                                                                                                                                                                                    Advocate
Most brand websites are largely out of sync with the tone and tenor of consumer                                                                                                                                                               Higher
                                                                                                                                                                                                                                               Tier

conversation….to remain relevant brand websites need to provide social currency to                                                                                               Invite  advocates for                              PROFILE
                                                                                                                                                                                                                                            Recognition


                                                                                                                                                                                    deeper involvement        Yes
influencers.                                                                                                                                                                     Exclusive content
                                                                                                                                                                                   and communication
                                                                                                                                                                                                                                   Advocate traits
                                                                                                                                                                                                                                   Behaviors
                                                                                                                                                                                                                                   Patterns
             Social Media Monitoring and Analysis Report, Aberdeen Group, January 2008
Social Media - Engagement Models
Authentic Voice                                                   Community Connection
Leverage internal or Outsourced                                   Play a role in the
external experts to evangelize to                                 customers
customers                                    Authentic            current participatory
                                               Voice              environment

                                                                  Facilitate relevant
Brand Ambassador                                                  conversation at its source
Provide a gated community for
staunch brand allies – access         Brand          Community    Amplify participation with
and assets are key                  Ambassador       Connection   a brand or product
                                                                  through relevance,
Provide a privileged                                              entertainment and utility
relationship for industry
luminaries who are not                                            Gather unfiltered
necessarily our brand allies                                      audience insights from
                                                                  online communities
Authentic Voice
 Direct to Influencer Outreach Program
 Objective
 •   Leverage internal and /or outsourced experts to evangelize to customers
 •   Place the brand message into the heart of the conversation where it has not existed previously
 •   Implement a toolset to prioritize and streamline the direct to customer communication plan

 Impact to the Organization
 •   Improve sentiment and customer satisfaction improvements through high value, direct to customer
     interactions
 •   Dramatically increase the workflow efficiency
 •   Tap into high impact low dollar marketing channel

 Success Measured By
 •   Increased interactions with influential's
 •   Increase in related topic posts/mentions
 •   Positive change in overall sentiment and number of posts
 •   Improvement in number of interactions per SME
 •   Correlation of sentiment with active and passive participation
Brand Ambassadors

 Improving Advocates, Partnerships and
 Sponsorships
 Objectives
 •   Provide a gated community for staunch brand allies – access and assets are key
 •   Provide a privileged relationship for industry luminaries who are not necessarily our brand allies

 Impact to the Organization
 •   Have a highly scalable and measurable means to deliver content and information to group of influential's
 •   Open up a relatively free distribution channel through the influential's loyal base
 •   Map ecosystem in order to scale out and prioritize your list of Advocates and your messaging schedule
 •   Monitor ongoing health of Advocates

 Success Measured By
 •   Passive and active participation metrics
 •   Sentiment and impact shifts
Community Connection
Facilitating Peer to Peer interactions

Objectives
•    Play a role in the customers current participatory
     environment
•    Facilitate relevant conversation at its source
•    Amplify participation with a brand or product through
     relevance, entertainment and utility
•    Gather unfiltered audience insights from online communities

Impact to the Organization
•    Increase brand loyalty by demonstrating a keen understanding of an audience and the brands ability to deliver value to that audience
•    Encourage brand or product discovery
•    Gain a deeper audience understanding leading to the brand aligning its goals to audience motivations
•    Open a more accurate feedback channel to inform product and audience groups

Success Measured By
•    Site visits
•    Interaction with content
•    Positive posts and comments
•    Numbers of people participating
Influencer Mapping & Outreach
•   An Influencer is an individual that has influence over potential buyers or decision makers. In the
    blogsphere we categorize an influencer not as someone with a voice, but someone with an audience
    made up of potential customers.

•   Influencer Mapping involves the identification of individuals that have influence over potential
    buyers, allowing us to orient marketing activities around these influencers. Influencers may be
    potential buyers themselves or third parties.

•   Outreach defines our approach to engaging with those influencers in order to create connects on
    ideas, information (or misinformation) or practices regarding your products and services.


• TruCast a tool that allows companies to track, analyze,
  measure sentiment and participate in blogs, forums, social
  networks, and online communities
Social Influence Marketing Best Practices
Best practices
•   Listen before you talk: Listening can increase loyalty, trust and willingness to recommend a brand or company. When
    participants feel heard within the community, 82% say they are more likely to recommend the company's products and services
    than before they joined.

•   Engage in an ongoing dialogue: Customers expect to have a say about their products and services: how they should fit into their
    lives, how they’re designed and packaged, where they can buy them, and how they should be advertised. They are often
    passionate about being able to help companies make decisions.

•   Keep communities small: Although some social networks thrive on large numbers, online communities for marketers can be
    small, as it promotes intimacy and exclusivity. You can’t have a conversation with a million people.

•   Measure engagement / participation, not membership: Focus not on how many people log in, but how actively people
    participate. Just 1% of people on big social networks create original comment, and another 10% comment on or respond to
    content. The other 89% lurk. But by-invitation, branded communities can have participation rates of up to 90%


•   Focus on people, not your products: People want to talk about common interests and passions -and not solely your products.
    So focus the conversation around what they care most about.
REMEMBER
                             IT’S A DIALOGUE,
                          NOT A MONOLOGUE.

“I absolutely ADORE the            “Me too! And isn’t
      food at that                the hostess stunning
      restaurant.”                     as well?”
G.
Relinquish
control.
REPEAT AFTER ME:


“THE GOAL IS NOT TO CONTROL
THE CONVERSATION.”
THE GOAL IS TO:

 ENABLE
 INSPIRE
 INFLUENCE
       &……
A Brand is Not What
YOU Say it is. It’s What
THEY Say it is.
Source: www.BrandTags.net
When Brands
Stumble …
Do you remember
Dell Hell?
June 21, 2005

Dell lies. Dell sucks.
But, some Brands Are
Adapting …
• At start of program, 49% of blog posts
  were negative. Today, overall tonality is
  22% negative.

• Direct2Dell currently ranked 700 on
  Technorati, among the highest corporate
  blogs.

• Direct2Dell gets more than 5m unique
  views per month.

• Over 7,000 ideas have been submitted
  via IdeaStorm.

• Studio Dell gets more than 200,000
  views per month.
Faceless Companies Now Have Faces
H.
Measurement and
analytics
What is the most
important ingredient
for success?
Customer Insight =
Ability to solve problems +
Ability to exploit opportunities +
Ability to satisfy your customers
Great resources                                     Radian6 PowerShift Blog
                                                    Avinash Kaushik
                      Web Strategy Blog
                                                    www.radian6.com/blog
                      Jeremy Owyang
 Occam’s Razor Blog
 Avinash Kaushik      www.web-strategist.com/blog

 www.kaushik.net
Engagement: A New Perspective on Marketing
As outlined earlier, if the marketing funnel no longer accurately reflects what marketers can influence, why do they still cling to
it? Because they can measure it, which is reassuring, even if it no longer accurately reflects the real buying process. And, of
course, there are no useful alternatives.

We believe that marketers need a new approach to understanding customers and prospects. This new type of measurement —
engagement — encompasses the quantitative metrics of site visits and transactions, the qualitative metrics of brand awareness
and loyalty, and the fuzzy areas in the middle best characterized by social media.

The Elements Of Engagement:

Engagement goes beyond reach and frequency to measure people’s real feelings about brands. It starts with their own brand
relationship and continues as they extend that relationship to other customers. As a customer’s participation with a brand
deepens from site use and purchases (involvement and interaction) to affinity and championing (intimacy and influence),
measuring and acting on engagement becomes more critical to understanding customers’ intentions. The four parts of
engagement build on each other to make a holistic picture.

•   Involvement
•   Interaction
•   Intimacy
•   Influence
Engagement: A New Perspective on Marketing
Engagement: A New Perspective on Marketing
Involvement: This component is the most basic measurement of engagement and reflects the measurable aspects of
an individual’s relationship with a company or brand. It includes actions like visits to a site or a physical store, time
spent per page, and pages viewed. While this alone isn’t sufficient, measuring these activities is critical because they
are often the first point of interaction an individual has with a brand and are the foundation for making the
connections to other metrics. For example, Reed Business tracks visitors to its Web sites, the time they spend, the
articles they read by category or channel, and pages they view per week (and across other time periods). This helps
Reed Business distinguish between first-time and repeat visitors, and informs the company of the depth, frequency,
and level of interactions of their visits, helping it determine its content agenda. You can use Web analytics services like
Omniture, Web Trends, or Visual Sciences to measure these activities.

Interaction: This component provides the depth that involvement alone lacks by measuring events in which
individuals contribute content about a brand, request additional information, provide contact information, or
purchase a product or service. Where involvement measures touches, interaction measures actions. These include
click-throughs, completed transactions, blog comments, social network connections, and uploaded photos and videos.
Social media contributions increasingly play a role in calculating the value of a customer and are vital to tracking
emerging behaviors. For example, PETCO tracks when customers browse and sort by top-rated items and then buy a
product, allowing the company to identify the effect user generated content (UGC) has on purchases. You can use
eCommerce platforms to provide transaction data, while social media platforms like Bazaarvoice and UGENmedia
track actions like ratings and reviews, photos or videos uploaded, or connections made in social networks.
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
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Monologue to Dialogue Social Media And Digital Marketing MWalsh
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Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
Monologue to Dialogue Social Media And Digital Marketing MWalsh
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Monologue to Dialogue Social Media And Digital Marketing MWalsh

  • 1. This document is best viewed in the SlideShare full screen mode or download the PowerPoint deck. Digital & Social Influence Marketing From monologue to dialogue 2 July 2009 - LAMP @ AFTRS Seminar Deck Revised: 26 July 2009 Martin Walsh Digital Marketing Director / Producer twitter.com/martinwalsh © 2009 Martin Walsh. Ver2.2
  • 2. Notes: 1. To watch the videos throughout this deck simply click on the video thumbnails. 2. Some slides also include additional detailed notes so it is best to download the PowerPoint to access them in the notes section below the slide. 3. All of this material is a limited and generalised view of my more detailed knowledge on each subject contained in the deck for example; Digital PR, Search Engine Marketing, Social Influence Marketing, Measurement & Analytics and Integrated Marketing etc. I have also developed more detailed training and strategy decks as well as playbooks, guidelines, task lists, roles & responsibility definitions, workflows and everything else associated with strategy development, training, execution and the operationalisation of digital marketing.
  • 3. About Martin Martin is the Producer of the critically acclaimed and award winning The Battle of Long Tan documentary and from 2005 to 2009 he led Digital Marketing @ Microsoft defining, developing and executing Microsoft’s B2C and B2B global digital marketing and social influence marketing strategies & disciplines. Prior to Microsoft, Martin successfully led and grew the ecommerce division of a large Australian media & entertainment company from less than AUD$22 million in annual sales to more $AUD700 million in annual sales. Martin has worked in senior marketing roles across radio, film, music, games, entertainment and the technology industries for companies such as News Corporation, Village Roadshow / PBL, Austereo, Telstra, BMG (Bertelsmann), Sydney 2000 Olympics and Tabcorp. He specialises in digital & consumer marketing, social media marketing, social CRM, search engine marketing and online analytics and he has also advised organisations such as Australian Rugby Union, Cricket Australia, film distributors, games publishers, media and government on how to engage with consumers, commercially exploit their content and enhance their digital marketing capability & strategies. In late 2004 Martin established Red Dune Films and acquired the film, documentary & story rights to the Battle of Long Tan from the seven Australian Long Tan combat commanders. In 2006 he produced the ASTRA award winning & TV Week Logie award nominated Battle of Long Tan documentary for The History Channel (FOXTEL) which was narrated by Sam Worthington (Terminator Salvation, Avatar & Clash of The Titans). The innovative marketing & publicity strategy Martin (and Graham Cassidy) developed for the Long Tan documentary & film has so far resulted in unprecedented media coverage comprising two 60 Minutes stories, magazine cover stories, a national media partnership with News Limited, a national 40th anniversary service in Canberra which was televised live on the Nine TV Network, a public thank you and apology by Australia’s then Prime Minister John Howard to Vietnam Veterans, tens of thousands of online video views and fans and an eventual upgrade to the soldiers gallantry medals. View TV coverage here. Martin is also producing a feature film on Long Tan with Bruce Beresford (Driving Miss Daisy, Double Jeopardy, Breaker Morant) directing as well as a variety of other feature films and alternate reality games (ARG’s). Born In Melbourne but now living in Sydney, Martin originally began his career as an Actor before serving with Australian Army Special Forces - 2 Commando Company, 1st Commando Regiment and then studying innovation at Swinburne University earning a Master’s Degree and Graduate Diploma in Entrepreneurship and Innovation.
  • 4. Some great resources Groundswell: Winning in a world transformed by social technologies. Charlene Li & Josh Bernoff Made To Stick: Why Some Ideas Survive and Others Die. Chip Heath & Dan Heath The Movie Business: The Definitive Guide to the Legal and Financial Secrets of Getting Your Movie Made. Kelly Charles Crabb
  • 5. An Internet Watered Down: or how to save the mobile web. Great resources John Pettengill, Razorfish Digital Outlook Report: 2009 Digital Mom. Razorfish Razorfish & Café Mom Click here to get all these Power to the People Social Media Tracker reports in one location. Wave 3 2008 & Wave 4 2009. Universal McCann Consumer Experience Report. Global Digital Insight: Understanding the Razorfish connected generation. Universal McCann
  • 6. What’s happening across Media & Entertainment? CAGR 13% 25% 7% 6% 5% 7% *40% 2007-2008 4%
  • 7. ARG’s: Alternate Reality Games, Marketing & Social Media A view to a USD$25b Opportunity Watching TV shows when and where you want to is quickly becoming commonplace in a world awash with Hulu, TiVo, and iTunes. But if the fragmented media landscape is great for consumers, it's hell for advertisers. Now, big brands are turning back to an idea as old as P&G-sponsored soap operas -- hiring agencies to create entertainment designed to promote products. Only this time, companies are doing it via playful webisodes and websites. They are also experimenting with alternative- reality games, or ARGs. These puzzles build anticipation for a product release by sprinkling clues on the Web and in the real world. Spending on these forms of branded entertainment, as it's being called, grew 13 percent in 2008 to $25 billion, according to estimates from the research firm PQ Media.
  • 8. ARG’s: Alternate Reality Games, Marketing & Social Media The Dark Knight: Why So Serious? Click image to watch video 10m unique participants in over 75 countries 42 Entertainment across 31 websites. Why So Serious? Gave comic book fans and mainstream movie goers the chance to live in the world of The Dark Knight. Playing out the events of Gotham City in real time, the ARG provided the opportunity to explore the strong characters, themes and backdrop of the world while punctuating the experience with activities that ‘eventised’ the web – like ringing cakes with baked in mobile phones, clearing Harvey Dent of vicious campaign attacks or helping the Joker to steal a District 22 school bus to rob Gotham National Bank. http://www.alternaterealitybranding.com/tdk_sxsw
  • 9. ARG’s: Alternate Reality Games, Marketing & Social Media The Dark Knight: Why So Serious? 42 Entertainment Click images to watch videos Harvey Dent Why So Serious Comicon 08
  • 10. ARG’s: Alternate Reality Games, Marketing & Social Media Trent Reznor: Year Zero Click image to watch video 42 Entertainment 3.5m unique participants in over 60 countries across 29 websites. On Feb 10th, Nine Inch Nails and 42 Entertainment launched the ambitious Year Zero project, a work of cross-media art involving websites, emails, phone calls, murals and live events with songs of Year Zero at their core. Arguably the most complete and compelling web- based piece of art yet created, Year Zero has become an Internet phenomenon as well as a dynamic album, changing the way people think about the future – and the way they act today. These trans-media assets turned http://www.alternaterealitybranding.com/cannes2008yearzero/ Year Zero into more than an album you listen to, but a place where you live.
  • 11. Digital Music: Apple Content Strategy The iTunes Store The App Store 6 iTunes Scale App Store Strategy • On Jan 06, „09 Apple announced Best-of-Breed • App Store economics are Services 5 that it had sold 6 billion songs identical to iTunes Store – Songs Sold (billions) Device Carrier Disinter- Software mediation 4 since launch of the store on Apr i.e. 70/30 revenue split. 28 „03. • Despite likely large scale 3 • On Apr 3, ‟08 iTunes surpassed Device Applications and huge number of Hardware & SDK 2 Wal-Mart to become the largest downloads, Apple will make music retailer in the US. only a small profit. 1 • Just two months earlier, on Feb Sync Client Music • Main goal is a more & Video 26, ‟08, iTunes surpassed Best & Content iPod 0 Service attractive platform that Buy to become the 2nd largest Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… Q… FY03 FY04 FY05 FY06 FY07 FY08 FY09 ...Apple makes money selling devices but drives hardware margin. Source: Apple Press Releases & Microsoft music retailer in US. earns its keep through hardware + client + Analysis service e2e differentiation... iTunes Economics Quotes about App Store Strategy “We‟re thinking about the App Store in the same way that we think about the % of • Although iTunes drives billions in US $ iTunes store. While it will generate some revenues, it will be a small profit revenue it makes only a small operating Music DTO Rev generator, and just as with the iTunes store making iPods more attractive, we profit. think the App Store will make the iPhone and iPod Touch more attractive to Revenue ($/unit) $0.99 100% • Apple uses the iTunes service as a customers. We‟ll hopefully see an indirect return by selling more iPhones and iPod Royalty Costs $0.70 71% differentiator but monetizes via the Touches…” - Peter Oppenheimer, CFO, Earnings Call, Jul 21, 2008 device. Delivery Costs $0.10 10% • “Our objective with the iTunes store is Billing Costs $0.12 12% “…One area where we have completely changed the value proposition for mobile to run it just a little above break even. devices is the App Store…Competitors are scrambling to copy our App Store but Total COGS ($/unit) ~$0.92 ~93% And we think that it helps us to sell it‟s not as easy as it looks and we are far along in creating the virtuous cycle of iPods and Macs, and that is really our Gross Profit ($/unit) $0.07 7% cool applications begetting more iPhone sales, thereby creating an even larger strategy.”, Apple CFO Peter market which will attract even more iPhone software development….” - Steve Operating Exp ($/unit)~$0.07 ~7% Oppenheimer, Q1-08 Earnings Call, 22 Jobs, CEO, Earnings Call, Oct 22, 2008 Jan „08. Operating Inc ($/unit) <$0.02 <2%
  • 12. Mobile Phones: App Store Analytics App Store Stats Revenue into ISV Ecosystem • On Feb 14th, 2009 – 218 days after launch of the App Store – • App Store pours money into ISV ecosystem there were 20,397 apps.  In first month, 60M downloads drove App Store revenues of $30M • Current App Launch Momentum: with $21M going to ISV‟s  At current trends, will drive $360M revenue in 1st year, with  1,400 new apps launched/week $250M to ISV‟s.  400 new games launched/week.  FY‟11 est. of $2B revenues w/$1.5B to ISV‟s • 1B downloads estimated in 1st 12 months. • Ratio of 1 paid app for every 11 downloads. • Download Stats: • Most revenue goes to a concentrated group of ISVs (perhaps Days Since Launch of App Store 60 102 145 189 80% to top 25). Incremental Days 60 42 43 44  40% revenue goes to top 10 apps New Downloads (millions) 100 100 100 200 • Stories of developers making $100-200K abound, driving a Cumulative Downloads (millions) 100 200 300 500 “gold rush” like focus App Store Momentum App Store Categories 25,000 20,397 20,000 Applications Number of Apps 27% 15,000 14% 10,000 3% 9% 3% 4% 5,000 8% 4% 7% 6% 5% 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Note: Analysis, Feb 14, 2009 Weeks Since App Store Launch Note: Analysis, Feb 14, 2009
  • 13. TV 2.0: More about Digital and Less about Television VIEWING & CONTENT AUDIENCE STORAGE PRODUCTION AGGREGATION DEVICES
  • 14. TV 2.0: Today Online Interactive Video Television
  • 15. TV 2.0: Tomorrow Traditional Television Interactive Online Television Video
  • 16. TV 2.0: Xbox, Netflix & Social Networking Microsoft and Xbox were the only gaming & entertainment company to understand the importance of the shift in consumer behaviour and the convergence of media channels. 1m of Click images to watch videos Xbox Live members are already Netflix members and have watched more than 13m videos (1.5b minutes) through Xbox. Xbox has the highest software attach rate vs Playstation and Nintendo with less market share Xbox Entertainment Platform than WII but greater than Playstation. Xbox Live is already one of the largest social networks in the world with more than 20m active users and 56% of them pay! At 2009 E3, Microsoft Xbox announced the integration of Twitter and Facebook into Xbox Live and upgrading of video to 1080p. Xbox Twitter & Facebook
  • 17. Gaming: Quick Stats There are approximately 93m games consoles in the home. Worldwide Top Super Genres 70,000,000 The average age of a gamer in Australia is 30 years old. By 60,000,000 2014 the average age will be 40 years old. 50,000,000 84% of 16-25 year old Australians play games. 40,000,000 Units 46% of Australian gamers are female up from 41% in 2007 30,000,000 but by 2012 the proportion between male and female will be equal. 20,000,000 19% of Australians are already downloading their games 10,000,000 from online vendors. The average cost of producing games is now between $10m and $50m. Gamers take more advantage of Web 2.0 functions on the Internet.
  • 18. Current Media Landscape (By Discipline) Landscape is fractured; territory battles continue between digital and offline media organisations and agencies, particularly over interactive TV and video as GRPs decline. Radio • Media is trying to tap into the media dollars allocated to Local TV OOH emerging media / gaming, digital, Guerilla Offline and sponsorships. Emerging Digital Newspaper OOH (187B$+) Magazine • Key growth opportunities exist at Channels VOD TiVo DRTV the intersections: Mobile Set-top video Broadcast TV • Online Display and Video extensions Google TV Gaming Cable TV • Cable Television Online • Broadcast Television Video Search Content integration Digital ($26B+) Online Product Placement microsite / Display brand extensions Sponsorships Events Size of circles is not proportional to agency head count or channel spend. Emerging channels / sponsorships spend included in digital 18 and offline totals.
  • 19. Why am I spending time on this?
  • 20. Change, chaos and confusion = Opportunity! And original content will always be needed!
  • 21. DIGITAL MARKETING IS MARKETING THAT LEVERAGES THE INTERACTIVE CONNECTIONS BETWEEN SEEKERS AND PROVIDERS ENABLED BY DIGITAL MEDIA AND DEVICES.
  • 23. The Marketing Funnel Isn’t Linear (hell, it’s not even a funnel)
  • 24. Traditional Marketing Models Fail to Model Complex Buying Paths Traditionally, marketers modeled customers’ decisions as they progressed from awareness through consideration, preference, action, and loyalty — through what is called the marketing funnel. The marketer’s job was to move people from the large end down to the small end. But now it’s time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they lead the dialogue. We must rethink the marketing funnel because: • Complexity reigns in the middle of the funnel. • The most valuable customer isn’t necessarily someone who buys a lot. • Traditional media channels are weakening. • Consumers force brand transparency.
  • 25. Traditional Marketing Models Fail to Model Complex Buying Paths • Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such as recommendations from friends or family, product reviews, and competitive alternatives described by peers influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back alleys, alternate entry and exit points, external influences, and alternative resources. • The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era in which peers influence each other as much as companies do, good customers can’t be identified solely by their purchases. Companies also need to track individuals who influence others to buy. For example, a customer who buys very little from you but always rates and reviews what she buys can be just as valuable as someone who buys a lot — her reviews might influence 100 other people to buy your product. Tracking only transactions and loyalty at the end of the funnel misses this significant element of influence. • Traditional media channels are weakening. Marketers continue to use mainstream media messages to move consumers into a consideration frame of mind. But passive consumption of media is waning. Individuals dismiss or ignore marketing messages in lieu of information available from an ever-increasing number of resources, such as product review sites, message boards, and online video.
  • 26. Today’s Complex Buying Paths Marketing complexity means that traditional methods and metrics fail to address and capture the whole story. Online metrics like unique visitors to a Web site, number of pages viewed, and time spent per page mimic offline media metrics of reach and frequency. But traditional marketing and traditional measurement doesn’t address or indicate the engagement of an individual; they fail to address or capture the sentiment, opinion, and affinity a person has towards a brand as manifested in ratings, reviews, comments in blogs or discussion forums, or the likelihood to recommend to a friend.
  • 27. Marketing Needs to Shift Focus from Low Value Broadcast Campaigns to High- Value Timely & Relevant Programs
  • 28. Traditional Marketing Approach Good at: – Helping you better target your marketing – Predicting response rates – Optimizing spend by reducing marketing waste – Understanding buying modalities Not so good at: – Answering the “When” question – Lending itself to automation
  • 29. Real-Time Marketing Approach Good at: – Identifying new sales opportunities and changes in behavior – Immediately triggering a marketing response – Building program equity through automation Not so good at: – Understanding the entire customer context
  • 30. No Shrugging Shoulders: Move More Marketing Real-Time
  • 31. Now, it’s a big digital world out there…
  • 32. Video
  • 33. Consumer Behavior in Australia has changed… In fact consumer behaviour changed two years ago so social media behaviour is not ‘a new fad’!
  • 34. Starting in 1995 people became interested in online content…..
  • 35. 13 Years of Online Content Growth! # display impressions across the web (millions)
  • 36. But a few years ago…..
  • 37. …people started to become more interested in each other…..
  • 38. Social Media Marketing Questions start conversations
  • 39. “Social Media is like teen sex. Everyone wants to do it. Nobody knows how. When it’s finally done there is surprise it’s not better.” Avanish Kaushik, Occams Razor
  • 40. In all seriousness though, officially..... SOCIAL MEDIA IS AN UMBRELLA TERM THAT DEFINES THE VARIOUS ACTIVITIES THAT INTEGRATE TECHNOLOGY, SOCIAL INTERACTION, AND THE CONSTRUCTION OF WORDS, PICTURES, VIDEOS AND AUDIO.
  • 41. Putting it more simply: “Social media is people having conversations online.”
  • 42. SOCIAL NETWORKING SITES ARE OFFICIALY MORE POPULAR THAN PORN SITES. TIME OCTOBER 13, 2007
  • 43. Social media sites are mushrooming
  • 44. But it’s still a dynamic environment So don’t put all your eggs in one basket!
  • 45. Social media – The conversation prism Social media is primarily about conversations, so it is important for you to understand where the conversations are taking place.
  • 46. Social Media’s Growing Importance Total minutes consumed by Top 100 websites *On Demand Media explodes; ComScore Networks and Piper Jaffray & Co.
  • 47. The conversations are powered by: • Blogs • Micro blogs • Online chat • RSS • Widgets • Social Networks • Social Bookmarks • Message boards • Forums • Podcasts • Video sharing sites • Photo sharing sites • Virtual worlds • Wikis (…just to name a few)
  • 48. Understanding Social Media: some video snacks Click an image below to watch a short video >
  • 49. It is absolutely critical for marketers to understand WHY people are participating in social networking….
  • 50. Why users participate in Social Networking Time and time again we hear agencies advising clients that they need to have a Facebook page or develop a social networking application as part of the social media program or marketing campaign. If you don’t understand the fundamental attributes of why consumers participate, for example meeting others, keeping up friendships or being entertained then you are simply wasting time and money and in some cases being counter productive to your marketing efforts. If you don’t develop a presence or application which addresses some or all of the attributes on the next couple of slides then don’t bother.
  • 51. Why users participate in Social Networking Why audiences engage in social networking: • Meet people - 78% join to communicate with existing colleagues or develop new acquaintances • Be entertained - 47% join in order to find entertaining content such as photos, music or videos • Learn something - 38% join to get information from other people about topics that hold particular interest to them • Influence others - 23% join to express their opinions in a forum where their ideas can be discussed or acted upon
  • 52. Why users participate in Social Networking More broadly: • Keeping up friendships – Facebook is about connecting with people you know. • Making new friends – We’ve all heard stories of people hooking up on social networks. • Succumbing to social pressure from existing friends – People in the groundswell want their friends there too. • Paying it forward – Having seen that a site is useful, you may be moved to contribute. • The altruistic impulse – People give blood because they think they should. • The prurient impulse – People are fascinating. Some are sexy, some are entertaining, and some, frankly, are stupid. • The creative impulse – Not everybody is a photographer, a writer, or a videographer, but for thow who are the web is perfect to show off their work. • The validation principle – People who post information on Yahoo! Answers or Intuit’s tax wiki would like to be seen as knowledgeable experts. • The affinity impulse – If your soccer team, your PTA, or your fellow Swans fans have connected online then you can join and connect with people who share your interests and concerns.
  • 53. The Social Media Stack In order to leverage the Social media opportunity you must first understand the Social Media Stack. It is not a traditional publishing medium where you simply serve a banner ad and expect a response. All you can do is try to inspire conversations through some sort of creative and communication, then enable and facilitate conversations through applications which allows you to connect to the users. 1. Platforms give you access to reach and connections 2. Applications enable the interactions 3. Ads can inspire the conversations
  • 54. Evolution of online advertising
  • 55. How additional brand value is created on social networks
  • 56. The world has also shifted from Passive consumption to Active participation
  • 58. > 100,000,000 videos viewed per day 88% is new and original content 65,000 new videos / day
  • 61. 5,000,000,000 minutes spent on Facebook everyday
  • 62. 1,000,000,000 links, news stories, blog posts, photos & videos shared each week on Facebook
  • 63. 1,382% Monthly growth rate of Twitter users from Jan to Feb 2009 and 3,000,000 Tweets per day But, only Of Australians 4.4% are on Twitter
  • 65. 62% (5.3m) have joined a social network
  • 67. AND THIS FUTURE IS TODAY, NOT TOMORROW…
  • 68. By 2010, Millennials / Gen Y-ers will outnumber Baby Boomers.
  • 69. They are today’s “digital natives.”
  • 70. MILLENIALS SPEND > 16 HOURS / WEEK ONLINE.
  • 71. 96% OF THEM HAVE JOINED A SOCIAL NETWORK.
  • 72. They have an average of 53 online friends.
  • 73. Trends Gen Y: Emotionally Searching For Their Identities Adolescents and early adults are at a period of self-discovery, shaped by their environment, education and activities, and social culture. That's why they: • Seek recognition and fame. • Enjoy absurdity — and humor with an odd slant. • Embrace a variety of subcultures.
  • 74. Trends Gen Y: Mentally Fickle And Creative Few Generation Yers can remember a time when technology — from DVDs to PCs — did not play an important part in their lives. Having grown up with deep exposure to media and devices, they: • Skim text and information quickly. • Are easily bored. • Are expressive and creative.
  • 76. Marketing and customer behavior has changed ediocre experiences just don’t resonate with today’s customers M Life would be so much easier for companies if their customers still responded to the same old marketing pitches. But unfortunately, customers are heading in the opposite direction and getting tougher to win and keep. Forrester research shows that consumers: • Aren't easily influenced. • Care more about price. • Use more channels.
  • 77. Marketing has changed But Companies Still Head Towards Customer Experience Mediocrity  What have companies done with their customer experience efforts to survive in this era of skeptical, empowered customers? Not much. For example, when we evaluate organizations' Web sites, they often fail even the most basic tests of usability and brand building. What causes these problems? Ultimately, companies don't deliver strong customer experiences because of: • Siloed efforts. • Industry tunnel vision. • Self-centered design.
  • 78. Consumers want more from brands They want less promise and more experiences From brochure-ware websites...
  • 79. Consumers want more from brands They want less promise and more experiences To everyday experiences + interactions... *Optimised for all devices & services
  • 80. Services which can be mixed and mashed
  • 81. Consumers no longer care about advertising. They care about what their friends and peers think.
  • 82. And this is not a fad. It’s a fundamental shift in the way we communicate.
  • 83. “IN 2008, IF YOU’RE NOT ON A SOCIAL NETWORKING SITE, YOU’RE NOT ON THE INTERNET.” IAB PATFORM STATUS REPORT USER GENERATED CONTENT SOCIAL MEDIA AND ADVERTISING, APRIL 2008
  • 84. The old communication model was a monologue
  • 85. The average person is exposed to 3,000 advertising messages / day.
  • 86. Only 18% of TV ad campaigns generate positive ROI
  • 87. 90% of people who can skip TV ads, do.
  • 88. People have become less interested in the ads Click-through rates on display ads
  • 89. 1995 2009
  • 90. AND ONLY 14% OF PEOPLE TRUST ADVERTISEMENTS.
  • 91. BUT 60% OF AUSTRALIANS TRUST THE RECOMMENDATIONS OF OTHER AUSTRALIANS. NIELSEN ONLINE CONSUMER GENERATED MEDIA REPORT JAN, 2008
  • 92. So...... 14% vs. 60% hmm….
  • 93. But it is still about the total sum of the parts. TV + Radio + Print + Display + Search + Social Media = a better integrated marketing result. You need to understand that advertising now inspires the conversations.
  • 94. Digital Marketing Thinking More Broadly... Lester Wunderman’s Nine Points For The Future Of Advertising: 1 Interactive marketing on the Internet is a strategy, not a tactic 2 The customer, not the product, must be the hero 3 Communicate with each customer or prospect as an audience of one 4 Create relationships 5 Know and invest in each customers Lifetime Value 6 Media is a contact strategy 7 Be accessible to your customer 8 Acquire customers with the intention of loyalising them 9 You are what you know
  • 95. We have seen the rise of information democracy From information asymmetry... • Information was scarce • Customers were ill-informed • Exchanges were monologues • Marketing was “command-and-control” … To information democracy • Information is ubiquitous • Customers are well-informed • Exchanges are conversations • Marketing is “connect-and-collaborate”
  • 96. The new communication model is a dialogue
  • 99. “Content is the new democracy and we the people, are ensuring that our voices are heard.” Brian Solis, “The Social Media Manifesto.”
  • 100. Translation: THE TRAIN IS LEAVING THE STATION. WITH OR WITHOUT YOU.
  • 101. HOW DO I GET ON THE ? TRAIN
  • 102. Stop thinking ‘campaigns’ Start thinking ‘conversations’
  • 103. “Social Media is a commitment, not a campaign.” Martin Walsh, Microsoft Social Influence Marketing: Point of View Manifesto October 2007
  • 104. And by the way, hope is not a strategy.
  • 105. Social Media Marketing A Systematic Approach to a Social Strategy Consumers using social technologies threaten traditional marketing institutions like brands and ad campaigns. For the most part, marketers understand that there's no choice but to dive in and use some of those technologies — blogs, communities, wikis, widgets, social networks, and all the rest — to their own advantage. We get questions from our clients all the time about how to implement these technologies. But they're often asking the wrong question first. Don't ask what technology to use. Ask first who you're trying to reach, what you're trying to accomplish, and how you plan to change your relationships with your customers. Then, and only then, can you decide what technologies to use. We outline below a systematic method for social strategy formation: 1. Listen. Benchmark the existing conversations around yours and your competitors brands, products and services. 2. People. Review the Social Technographics Profile of your customers. (see next slide) 3. Objectives. Decide what your goals are. 4. Strategy. Determine how your objectives will change your relationship with customers. 5. Technology. Choose the appropriate technologies to deploy. 6. Engagement. Social Media is not a passive medium and doesn’t follow traditional marketing rules so you need to develop playbooks, policies, guidelines, clear roles & responsibilities and methods to successfully engage with consumers & influencers. 7. Measurement. You must develop a plan which allows you to determine and measure social media’s influence on your marketing investments and efforts. It is critical that the insight and information is actionable.
  • 106. SMM Program Goals: Improved Visibility, Strategy, Capabilities Across the Social Media Spectrum Ignore Watch React Engage Leverage Drive
  • 107. “It’s about conversations, and the best communicators start as the best listeners.” Brian Solis, Social Media Manifesto
  • 108. A. Listen.
  • 109. Immerse yourself in the conversations. (any or all of the above are a good place to start!)
  • 110. Listening - Benchmark Understand and Measure Existing Online Conversations: A Benchmark report allows you to answer questions like; how many people are talking, what are they saying, and whether consumers are frustrated or satisfied with your products and services and many others. It allows you to understand the entire social media landscape in relationship to your brand, products, services and important issues for example your Share of Voice (SOV), where the conversations are taking place, sentiment and who the key influencers are. It should include a highly comprehensive executive analysis to produce actionable intelligence that goes far beyond simple online "buzz" analysis. The Benchmark should provide detailed topic and sentiment analysis as well as authority information about the key sites, authors, posts and comments that comprise the "conversation ecosystem" around your brand.
  • 112. Listening - Social Media Monitoring Dashboard TruCast.
  • 113. Listening - Social Media Monitoring You must also map the Ecosystems relating to your brands, competitors and key topics so you can identify where the conversations are taking place, who the key influencers are, what your share of voice is and what sentiment exists.
  • 114. Listening: Share of Voice - 5 Key Scenarios (example only) Share of Voice Windows% Apple% More Media, More Places 6% 60% All Your Email One Place 20% 4% Work From Anywhere 24% 10% Share Memories As They Happen 5% 24% Keeping Kids Safe Online 20% 17%
  • 115. B. People.
  • 116. People: Review the Social Technographics profile • Most people often approach Social Media as simply a list of technologies to be deployed as needed — a blog here, Facebook page, community or Twitter account there — to achieve a marketing goal or because it is the latest Shiny Object. • But, a more coherent approach is to start with your target audience and determine what kind of relationship you want to build with them, based on what they are ready for. • Forrester’s Social Technographics Ladder classifies people according to how they use social technologies. • By examining how the technologies are represented in any subgroup, strategists can determine which sorts of strategies make sense to reach their customers.
  • 117. Australian Social Media Participation Ladder Forrester Social Technographic Tool - http://www.forrester.com/Groundswell/profile_tool.html Creators: make social content go. They write blogs or upload video, music or text. Critics: respond to content from others. They post reviews, comment on blogs, participate in forums, and edit wiki articles. Collectors: organise content for themselves or others using RSS feeds, tags and voting sites like Digg.com. Joiners: connect in social networks like Facebook and MySpace. Spectators: consumer social content including blogs, user generated video, podcasts, forums or reviews. Inactives: neither create nor consume social content of any kind
  • 119. Objectives: Determine your social media objectives By itself, the profile of a target customer only tells a marketer what's possible. Next you should decide what you want to accomplish. FYI - an objective is not ‘establish a Twitter account.’ There are generally eight main objectives of social strategies for connecting with consumers. To get started, pick the one that's best suited to your company's overall goals: • Listening. Find out what customers are really saying in order to understand them better. • Talking. Spread messages about a company. • Energizing. Get a companies best customers to evangelise it’s products. • Spreading. Get customers or users within a company to encourage others to adopt a product or service. (B2B only) • Supporting. Help customers support each other to solve each other’s problems. • Embracing. Integrate customers into the way the business works, including using their help to design products and improve processes. • Managing. Empower employees and managers within an organisation. • Social Impact. Improve society with non commercial applications. For example - if your key objective initially is energizing your most loyal customers then executing against this objective allows you to give a voice to your enthusiastic customer base and with the right social strategy this has the potential to increase sales.
  • 120. Example: A Social Media / Social Influence Strategy Overview Strategy 1: Social Media Program Management • Objectives • Strategy & Tactics • Monitoring, tracking, analysis Strategy 2: Engagement Programs Strategy 2a: Audience Advocacy Programs Strategy 2b: Social Media / Digital PR Identify and engage various audience Advocate groups to become a Identify and engage key writers, bloggers and mainstream influencers that word-of-mouth channel that will facilitate learning and trial of multiple will facilitate through a formal proactive outreach program. Microsoft products and services among their families, friends and peers. Search Engine Marketing On Network Off Network Strategy 3: Online Experiences Build and facilitate online experiences where customers can come together and showcase inspiring product stories, compelling examples and ‘how to’s’ delivered through the voice of our brands, partners and passionate customers. On Network Off Network User Generated Content Wiki’s Ratings Blogs Reviews Forums Video casts Communities Audio casts Comments Photos Feedback RSS Social bookmarking Tagging
  • 121. Social Media Plan Primary objective: Harnesses genuine experiences and inform and inspire customers in ways that are interactive, dynamic, and personal. Objectives Goals: Brand = net favorability for our brand in web sphere = +share of voice, 1. Leverage the passion and experience of our most engaged audience to drive buzz sentiment, recommendation = Net Promoter and excitement for our brands, products and technologies 2. Building on ‘help and how to’ enable engaged audiences to share their delight and Strategies passion for our brand / product with others through UGC. 1. Social Media Management (SMM) – What really influences 3. Understand and monitor the sentiment and share of voice that we have online. Find 2. Engagement Plan – Reach out, engage and facilitate favourable conversations strategic opportunities to participate in the conversation and increase volumes. a) Consumer Advocacy Program – Organize passionate audiences to drive the conversation b) Social Media / Digital PR Program – Converse and influence the influencers 3. Online Experiences – Give us a voice in the community (on network and off network) Questions to be answered 1. Can we move the share of voice online closer to relevant competitors? SMM 2. Will moving share of voice impact market share? Purchase decisions? 3. What is the right balance between advocates and our own voice? measure ID potential 4. Will strong advocates move the sentiment among audiences? advocates What the plan is not 1. Strengthen partner ecosystem Increase Contact volume them 2. Deep gaming scenarios 3. Shopping aids Advocacy Program 4. E Commerce plan to drive online sales of relevant products Amplify “UGC is useful to nearly 1/3 of consumers as they research products and services. their impact Arm them The most trustworthy of all UGC is that which appears on a company’s own website.” Activate David Card, Jupiter Research Online Experience them
  • 123. Strategy: Determine how your objectives will change relationships with your customers Your objective determines what business goal you want to accomplish. Having decided on the objective, you can move on to strategy: how will you accomplish the goal? In particular, social strategy revolves around answering this question: How do we want to change our relationship with our customers? While activities like social marketing campaigns can sometimes have a short-term impact, the long-term value of activity in the social world is the ability to change relationships with customers. By focusing on the relationships, not the technologies, marketers can keep their eye on long-term change that matters. To flesh out this type of strategy, we should take the following steps: • Describe the new relationship. Our current relationship with most of our customers is as a trusted supplier of software which just works. In energizing our core customers, we will extend this relationship, giving our satisfied customers opportunities to discuss their experiences on our website, and by doing so, motivate other customers to buy and help establish a better perception of our products. • Measure the impact of the change. It's crucial that we have metrics in place to measure progress towards the objective. For example, in energizing strategies we should measure to what extent visitors to social elements of the site are more likely to actually buy something. If our objective is talking with customers, we should measure awareness, impressions, or online buzz. If it's supporting, we should look for declines in support costs related to site visits. Regardless of the objective, our strategy is not complete without a success metric. • Identify barriers to the strategy. Change created by social strategies is often difficult for companies to swallow. For example, we are starting to have more direct relationship with all of our customers. By featuring customers' opinions on its site, we will be admitting that those consumers influence buying decisions as much as we do, a transition some Microsoft marketers might find difficult to make.
  • 124. Strategy: Example Only Strategy 1: Social Media Management • Develop a baseline / benchmark of relevant sentiment and share of voice and map the ecosystem • Monitor, engage and track relevant Social Media conversations • Build engagement programs specific to individual scenarios focusing on most influential conversations • Monitor engagement strategies against SOV/sentiment Strategy Strategy 2: Advocate Community and Energise UGC • Launch a Windows Advocate Community on MSCOM Australia • Test and learn best practices for ‘onboarding’ advocates • Grow advocate community • Showcase User Generated Content (UGC) across the Windows network Strategy 3: Online Peer to Peer Discussions – Forums • Develop "owned" / managed forums with a friendly consumer "front end" focused on the needs of consumer scenarios where Windows plays a key role • Facilitating peer to peer conversation on Windows properties will increase Windows SOV in online conversations currently being dominated by Apple and Yahoo. Strategy 4: Digital PR and Social Media Newsroom • Identify and consistently engage key influencers; bloggers and the media, to drive more favourable conversations & Share of Voice (SOV) and minimise negative sentiment. • Establish a Social Media Newsroom on MSCOM
  • 126. Technology: Select and deploy appropriate technologies By this point, you should have determined your customers' profile, what technologies they will accept, and at what rate. Since you also now know your objective and have nailed down a strategy, you can now evaluate technologies. This is why it makes sense to evaluate technologies only after you've finished the other steps. The technologies you choose will be determined by the technographics profile of your customers, your issues, problems, objectives and strategies. 1. For example, you could recommend deploying Ratings and Reviews because 32% of Gen X online customers in Australia are likely to be Critics. The best energizing technology would be to deploy these ratings and reviews on our Web sites and encourage customers to post their own evaluations of our products. 76% of all Australians use online reviews to help them make purchases. It has already been proven that ratings and reviews can significantly increase sales and increase sales conversions between 29-50%. Forrester's research shows that 80% of customer-supplied reviews are positive. 2. In addition, we should also establish a online community to allow our energised customers to support other customers around our products and technologies. Most people come to MSCOM and in particular our Windows sites for post-purchase information and there are hundreds of thousands of people, forums and websites out across the Internet who deal with niche topics such as Media Centre or Photos or Windows Tweaks & Tricks. 3. User-generated content. We might also enable customers to energize others by allowing them to upload their own articles, videos and pictures of their experiences with our products.
  • 128. Develop your engagement rules and response management approach first…
  • 129. Social Influence Marketing Successful Social Influence Marketing Requires Engagement By now, it’s clear that successful Social Media programs don’t follow traditional marketing rules; they can’t be treated as channels because social networks aren’t passive Web pages. Instead, marketers should mimic how bands promote themselves on sites like Facebook / MySpace — they engage their fans by posting frequently, providing backstage gossip, and answering their questions. Marketers should emphasize and place a focus on relationships at the center of their Social Media effort: • Know what kind of relationship you want to develop. • Provide real value. • Get employees to be actively involved. • Participate without fear, and respond quickly to feedback. • Keep growing the relationship. • Use the right metrics.
  • 130. Use a stepping approach:
  • 131. Develop your policies, guidelines and playbooks before you engage. Educate and train your team.
  • 132. Get your response assessment decision tree, rules, roles & responsibilities and workflow sorted…
  • 133. User Generated Content Six Tactics To Successfully Engage With UGC Interacting with customers at a more intimate level requires a different way of thinking. While the loss of control and exposure created though the necessary openness can be troubling at first, there are some key tactics companies can use to stay on top of the situation. Knowing where communities currently congregate and what is being said is critical before you attempt to enable your own UGC. To begin with UGC, follow these six steps: 1. Monitor customers generating content about your brand, products and or needs. 2. Leverage your UGC community. 3. Participate in existing customer-driven communities. 4. Respond to negative commentary. 5. Select the right technology to engage your customers. 6. Enable your audience to create content on your behalf.
  • 134. User Generated Content You can track its value!
  • 136. Remember, messages are not conversations.
  • 137. Structured Approach to Social Media 2. Strategic Plan 3. Active Engagement • What are most effective ways to reach audience with • What affinity groups are evident and how do they content and brand artifacts? 3. self-organize? • Who are where can we begin the process and leverage Active • Which individuals represent the proper sentiment network effects? Engagement for our metrics and goals? • How can we use intelligence to improve search and • How has message and proliferation changed over keyword strategy? time? Brand 4. 2. Messages & Evaluate Strategic Plan CGM Effectiveness 4. Evaluate Effectiveness 1. Ecosystem Mapping 1. • What is the update and adoption rate and how are • What is the baseline level of activity and my artifacts being spread? sentiment occurring in the ecosystem? Ecosystem • How can I leverage the network to amplify the Mapping • What are the affinity groups centered impact? around identified relevant topics? • How can we take this insight and optimize • Who are the subject matter experts • Future marcomm initiatives and influencers in these affinity groups? • Feedback loop
  • 138. Audience Advocacy Program Primary objective: Identify and engage Brand Advocate groups to become a word-of-mouth channel that will facilitate learning and trial of multiple our products and services among their family, friends and peers. Phase 1 Objectives Tactics 1. Organize passionate customers to drive conversations 1. Identification methodology and recruitment program to build & engage advocate base 2. Drive greater retention through deeper engagement across product lines 2. Horizontal community that supports multiple products, services & experiences 3. Facilitate peer learning and sharing 3. Points driven recognition program to deepen and drive engagement 4. Macro understanding of influential powers of different types of advocates. 4. Tools to facilitate sharing, learning and doing Long Term Objectives 5. Deploy 3 types of advocates to test and learn where we can be most effective; FTE’s, 1. Provide us with an authentic way to gather and operationalize customer feedback formal advocates and self proclaimed advocates. 2. Exponentially grow WOM and increase customer lifetime value 3. Micro understanding of influential power of 3 different types of advocates. Build Goals: Growth and engagement patterns of advocates, +online registrations, +cross engagement campaigns accordingly. product usage, -churn Questions to be answered 1. Can we identify and activate our brand advocates? Refine ID/Profile Algorithms Community 2. Will they be willing to consistently showcase their own inspirational/aspirational uses Advocate/Social Networks Pilot Design Scale Other Users/Social Networks Users/Social Networks of multiple products? Campaigns Start 3. Through this community platform, can we cultivate and grow our base of passionate, Here Ongoing Data Mining Refine engaged customers? Build ID Algorithm Outreach to advocates Community Strategy & Recruit Users Tour Community Opt-in Overlay 4. Can we measure the impact on loyalty and retention?   Über user Segments  Tour  Survey Platform   1:1 Interview Show & tell tendencies TRACKING  Special interests  Activity level COMMUNITY  Challenge/Solutions Feedback What the plan is not Dashboard   Referrals Ratings   Tips/Techniques Cool ideas Reporting  Cross-product usage  Special spaces 1. Brand generated vertical communities   Content creation Retention   Contests Promotions Refine  2. Viral marketing campaign with short-term results Scale/Growth Triggers Feedback Engagement  Evaluate Drives  Expand Community 3. One way, brand-to-consumer communication Scope USER TYPE RECOGNITION  Catalyst for deeper engagement  Casual  Drives WOM  Über  Advocate Most brand websites are largely out of sync with the tone and tenor of consumer Higher Tier conversation….to remain relevant brand websites need to provide social currency to Invite  advocates for PROFILE Recognition deeper involvement Yes influencers.  Exclusive content and communication  Advocate traits  Behaviors  Patterns Social Media Monitoring and Analysis Report, Aberdeen Group, January 2008
  • 139. Social Media - Engagement Models Authentic Voice Community Connection Leverage internal or Outsourced Play a role in the external experts to evangelize to customers customers Authentic current participatory Voice environment Facilitate relevant Brand Ambassador conversation at its source Provide a gated community for staunch brand allies – access Brand Community Amplify participation with and assets are key Ambassador Connection a brand or product through relevance, Provide a privileged entertainment and utility relationship for industry luminaries who are not Gather unfiltered necessarily our brand allies audience insights from online communities
  • 140. Authentic Voice Direct to Influencer Outreach Program Objective • Leverage internal and /or outsourced experts to evangelize to customers • Place the brand message into the heart of the conversation where it has not existed previously • Implement a toolset to prioritize and streamline the direct to customer communication plan Impact to the Organization • Improve sentiment and customer satisfaction improvements through high value, direct to customer interactions • Dramatically increase the workflow efficiency • Tap into high impact low dollar marketing channel Success Measured By • Increased interactions with influential's • Increase in related topic posts/mentions • Positive change in overall sentiment and number of posts • Improvement in number of interactions per SME • Correlation of sentiment with active and passive participation
  • 141. Brand Ambassadors Improving Advocates, Partnerships and Sponsorships Objectives • Provide a gated community for staunch brand allies – access and assets are key • Provide a privileged relationship for industry luminaries who are not necessarily our brand allies Impact to the Organization • Have a highly scalable and measurable means to deliver content and information to group of influential's • Open up a relatively free distribution channel through the influential's loyal base • Map ecosystem in order to scale out and prioritize your list of Advocates and your messaging schedule • Monitor ongoing health of Advocates Success Measured By • Passive and active participation metrics • Sentiment and impact shifts
  • 142. Community Connection Facilitating Peer to Peer interactions Objectives • Play a role in the customers current participatory environment • Facilitate relevant conversation at its source • Amplify participation with a brand or product through relevance, entertainment and utility • Gather unfiltered audience insights from online communities Impact to the Organization • Increase brand loyalty by demonstrating a keen understanding of an audience and the brands ability to deliver value to that audience • Encourage brand or product discovery • Gain a deeper audience understanding leading to the brand aligning its goals to audience motivations • Open a more accurate feedback channel to inform product and audience groups Success Measured By • Site visits • Interaction with content • Positive posts and comments • Numbers of people participating
  • 143. Influencer Mapping & Outreach • An Influencer is an individual that has influence over potential buyers or decision makers. In the blogsphere we categorize an influencer not as someone with a voice, but someone with an audience made up of potential customers. • Influencer Mapping involves the identification of individuals that have influence over potential buyers, allowing us to orient marketing activities around these influencers. Influencers may be potential buyers themselves or third parties. • Outreach defines our approach to engaging with those influencers in order to create connects on ideas, information (or misinformation) or practices regarding your products and services. • TruCast a tool that allows companies to track, analyze, measure sentiment and participate in blogs, forums, social networks, and online communities
  • 144. Social Influence Marketing Best Practices Best practices • Listen before you talk: Listening can increase loyalty, trust and willingness to recommend a brand or company. When participants feel heard within the community, 82% say they are more likely to recommend the company's products and services than before they joined. • Engage in an ongoing dialogue: Customers expect to have a say about their products and services: how they should fit into their lives, how they’re designed and packaged, where they can buy them, and how they should be advertised. They are often passionate about being able to help companies make decisions. • Keep communities small: Although some social networks thrive on large numbers, online communities for marketers can be small, as it promotes intimacy and exclusivity. You can’t have a conversation with a million people. • Measure engagement / participation, not membership: Focus not on how many people log in, but how actively people participate. Just 1% of people on big social networks create original comment, and another 10% comment on or respond to content. The other 89% lurk. But by-invitation, branded communities can have participation rates of up to 90% • Focus on people, not your products: People want to talk about common interests and passions -and not solely your products. So focus the conversation around what they care most about.
  • 145. REMEMBER IT’S A DIALOGUE, NOT A MONOLOGUE. “I absolutely ADORE the “Me too! And isn’t food at that the hostess stunning restaurant.” as well?”
  • 147. REPEAT AFTER ME: “THE GOAL IS NOT TO CONTROL THE CONVERSATION.”
  • 148. THE GOAL IS TO: ENABLE INSPIRE INFLUENCE &……
  • 149. A Brand is Not What YOU Say it is. It’s What THEY Say it is.
  • 152. Do you remember Dell Hell? June 21, 2005 Dell lies. Dell sucks.
  • 153.
  • 154. But, some Brands Are Adapting …
  • 155. • At start of program, 49% of blog posts were negative. Today, overall tonality is 22% negative. • Direct2Dell currently ranked 700 on Technorati, among the highest corporate blogs. • Direct2Dell gets more than 5m unique views per month. • Over 7,000 ideas have been submitted via IdeaStorm. • Studio Dell gets more than 200,000 views per month.
  • 156.
  • 157.
  • 158. Faceless Companies Now Have Faces
  • 160. What is the most important ingredient for success?
  • 161. Customer Insight = Ability to solve problems + Ability to exploit opportunities + Ability to satisfy your customers
  • 162. Great resources Radian6 PowerShift Blog Avinash Kaushik Web Strategy Blog www.radian6.com/blog Jeremy Owyang Occam’s Razor Blog Avinash Kaushik www.web-strategist.com/blog www.kaushik.net
  • 163. Engagement: A New Perspective on Marketing As outlined earlier, if the marketing funnel no longer accurately reflects what marketers can influence, why do they still cling to it? Because they can measure it, which is reassuring, even if it no longer accurately reflects the real buying process. And, of course, there are no useful alternatives. We believe that marketers need a new approach to understanding customers and prospects. This new type of measurement — engagement — encompasses the quantitative metrics of site visits and transactions, the qualitative metrics of brand awareness and loyalty, and the fuzzy areas in the middle best characterized by social media. The Elements Of Engagement: Engagement goes beyond reach and frequency to measure people’s real feelings about brands. It starts with their own brand relationship and continues as they extend that relationship to other customers. As a customer’s participation with a brand deepens from site use and purchases (involvement and interaction) to affinity and championing (intimacy and influence), measuring and acting on engagement becomes more critical to understanding customers’ intentions. The four parts of engagement build on each other to make a holistic picture. • Involvement • Interaction • Intimacy • Influence
  • 164. Engagement: A New Perspective on Marketing
  • 165. Engagement: A New Perspective on Marketing Involvement: This component is the most basic measurement of engagement and reflects the measurable aspects of an individual’s relationship with a company or brand. It includes actions like visits to a site or a physical store, time spent per page, and pages viewed. While this alone isn’t sufficient, measuring these activities is critical because they are often the first point of interaction an individual has with a brand and are the foundation for making the connections to other metrics. For example, Reed Business tracks visitors to its Web sites, the time they spend, the articles they read by category or channel, and pages they view per week (and across other time periods). This helps Reed Business distinguish between first-time and repeat visitors, and informs the company of the depth, frequency, and level of interactions of their visits, helping it determine its content agenda. You can use Web analytics services like Omniture, Web Trends, or Visual Sciences to measure these activities. Interaction: This component provides the depth that involvement alone lacks by measuring events in which individuals contribute content about a brand, request additional information, provide contact information, or purchase a product or service. Where involvement measures touches, interaction measures actions. These include click-throughs, completed transactions, blog comments, social network connections, and uploaded photos and videos. Social media contributions increasingly play a role in calculating the value of a customer and are vital to tracking emerging behaviors. For example, PETCO tracks when customers browse and sort by top-rated items and then buy a product, allowing the company to identify the effect user generated content (UGC) has on purchases. You can use eCommerce platforms to provide transaction data, while social media platforms like Bazaarvoice and UGENmedia track actions like ratings and reviews, photos or videos uploaded, or connections made in social networks.

Editor's Notes

  1. Physical distribution costs for gaming apps includes the following: Cost of games cartridges and shrink-rapped box Inventory risk Distribution to brick &amp; mortar stores Retail margin in brick &amp; mortar stores Defective merchandise Returns of merchandise Updates &amp; bug fixes for games Economics of App Store are better for developers than other platforms. “Games sold via the App Store are the most profitable in terms of any of the formats we work on,” Simon Jeffery, U.S. president of Sega.
  2. “ IPhone Software Sales Take Off: Apple&apos;s Jobs”, WSJ, August 11, 2008
  3. Traditionally, marketers modelled customers’ decisions as they progressed from awareness through consideration, preference, action, and loyalty — through what is called the marketing funnel (see Figure 1-1). The marketer’s job was to move people from the large end down to the small end. But now it’s time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they lead the dialogue. We must rethink the marketing funnel because: Complexity reigns in the middle of the funnel. The most valuable customer isn’t necessarily someone who buys a lot. Traditional media channels are weakening. Consumers force brand transparency. · Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such as recommendations from friends or family, product reviews, and competitive alternatives described by peers influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back alleys, alternate entry and exit points, external influences, and alternative resources. · The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era in which peers influence each other as much as companies do, good customers can’t be identified solely by their purchases. Companies also need to track individuals who influence others to buy. For example, a customer who buys very little from you but always rates and reviews what she buys can be just as valuable as someone who buys a lot — her reviews might influence 100 other people to buy your product. Tracking only transactions and loyalty at the end of the funnel misses this significant element of influence. · Traditional media channels are weakening. Marketers continue to use mainstream media messages to move consumers into a consideration frame of mind. But passive consumption of media is waning. Individuals dismiss or ignore marketing messages in lieu of information available from an ever-increasing number of resources, such as product review sites, message boards, and online video. · Consumers force brand transparency. Marketing and public relations teams used to have the influence to spin a message in their favor when something went wrong. But in these days of snoring cable technicians caught sleeping on a customer’s couch, captured on video, and posted on YouTube or blogs blasting CompUSA for selling an empty box instead of a camera, spin is out of control. Online social tools, coupled with increasing social behavior online, make it easy for the truth to come out. When companies try to spin the message now, they get caught in the act, only making the problem worse.
  4. Marketing complexity means that traditional methods and metrics fail to address and capture the whole story. Online metrics like unique visitors to a Web site, number of pages viewed, and time spent per page mimic offline media metrics of reach and frequency. But traditional marketing and traditional measurement doesn’t address or indicate the engagement of an individual; they fail to address or capture the sentiment, opinion, and affinity a person has towards a brand as manifested in ratings, reviews, comments in blogs or discussion forums, or likelihood to recommend to a friend.
  5. Engage at Every Stage means: Acquire new prospects and sales leads Convert leads or web site visitors into customers Grow customer value through repeat business Retain loyal, satisfied customers Reactivate customers who may have churned or been inactive Each lifecycle program may be composed of multiple campaigns and use multiple tactics.
  6. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  7. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. It is absolutely critical for marketers to understand WHY consumers participate in social networking.
  8. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  9. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  10. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  11. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  12. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  13. Seek recognition and fame. Many Gen Yers were raised and schooled in an educational system focused on promoting self-esteem and a &amp;quot;you can be anything&amp;quot; mentality. As a result, they&apos;re more narcissistic than other generations. As Jean M. Twenge writes in her book Generation Me, alluding to the popularity of reality TV shows like Fear Factor, &amp;quot;For many people, particularly [Generation Y], instant fame is worth eating bugs.” Twenge also points out that college students scored significantly higher in the Narcissistic Personality Inventory (NPI) test in 2006 than they did in 1987. Enjoy absurdity — and humor with an odd slant. Young consumers spend more and more time online seeking experiences that are both funny and entertaining. The popularity of peer-generated video has spawned Gen Y-focused sites like CollegeHumor.com and eBaumsWorld.com, which offer media with an odd, sometimes absurd sense of humor. Embrace a variety of subcultures. Generation Y is as diverse as it is unique. We found a variety of subcultures stemming from the clothes they wear, the music they listen to, and the media they consume and share. Niches like &amp;quot;goth,&amp;quot; &amp;quot;emo,&amp;quot; or &amp;quot;prep&amp;quot; each have their own attitudes, ideals, communication styles, and interests.
  14. Skim text and information quickly. Surrounded by video games and television, Gen Yers have learned to quickly scan through information. Photobucket.com CEO Alex Welch summed it up perfectly when he told us: &amp;quot;Our Gen Y users rapidly absorb content, without dwelling on text-heavy pages.&amp;quot; In their book Got Game John C. Beck and Mitchell Wade write, &amp;quot;Gamers have amassed thousands of hours of rapidly analyzing new situations, interacting with characters they don&apos;t really know, and solving problems quickly and independently.” Are easily bored. In an extensive research study of 14- to 24-year-olds, interactive marketing vendor Resource Interactive found a strong need for &amp;quot;instant gratification and immediacy.&amp;quot; The research firm also found that these young consumers will wait just three seconds for a Web page to load before clicking away. Generation Y needs constant stimulation —from multiple windows open on their PCs to non-stop music on their iPods. Are expressive and creative. Gen Yers are active online content creators. They are more likely than other generations to upload videos to sites like YouTube, publish a blog, create Web pages, and post to photo-sharing sites than any of their elders. That&apos;s why a site like Whateverlife.com, which offers free templates for personalizing MySpace pages, can become such a popular destination. Supporting this entrepreneurial trend, Gen Y is the most likely of all generations to agree with the statement &amp;quot;I put a lot of time and energy into my career.”
  15. Life would be so much easier for companies if their customers still responded to the same old marketing pitches. But unfortunately, customers are heading in the opposite direction and getting tougher to win and keep. Forrester research shows that consumers: Aren&apos;t easily influenced. Customers don&apos;t just rely on what companies tell them about their products and services. Our data shows that, during the past three years, consumers have become more likely to research products online and less likely to be influenced by advertising. Care more about price. During the past four years, the percentage of consumers who think price is more important than brand names has steadily increased. During the same time period, the percentage of consumers who are willing to pay more for products that save them time and hassles has decreased. Use more channels. It wasn&apos;t too long ago that just about all transactions were completed in person or over the phone. But consumers increasingly use more digital channels to connect with companies. By year-end 2007, almost 100% of Australian customers had adopted mobile phones and more than 72.9% were on the Internet — more than half of them over broadband.
  16. What have companies done with their customer experience efforts to survive in this era of skeptical, empowered customers? Not much. For example, when we evaluate organizations&apos; Web sites, they often fail even the most basic tests of usability and brand building. What causes these problems? Ultimately, companies don&apos;t deliver strong customer experiences because of: Siloed efforts. When customers interact with companies across a number of different touch points, they view these interactions as part of a continuous relationship that occurs over time. But few companies see it the same way: Each channel typically falls under the control of a different part of the organization, with different goals, decision-makers, and points of view on how to serve customers. How common is this problem? Plenty. Three-quarters of companies think that &amp;quot;getting alignment across the organization&amp;quot; is a significant obstacle to improving their customer experience. Industry tunnel vision. It&apos;s obvious — and understandable — why executives like to benchmark their companies against direct competitors. But when that&apos;s all they do, it leads to a dangerously incestuous view of the world that&apos;s disconnected from the customer&apos;s reality. Just because many major automotive sites devote most of their home page real estate to giant, flashy images, while burying and miniaturizing links to car models and local dealers, doesn&apos;t make it right. Self-centered design. Companies often lack a sharp, research-based understanding of their target customers. In this information void, people advocate for things that they personally like. When an exec says, &amp;quot;I don&apos;t like this,&amp;quot; or &amp;quot;That works for me,&amp;quot; they&apos;re typically focusing on their own needs. But if your target customers are teenage males, does it matter how the experience feels to a 40-something female VP of marketing?
  17. In the USA this figure is 72% and I put the lower rate for Australians down to our natural built-in bull shit meter!
  18. Step 1: Review The Social Technographics Profile Why do social strategies fizzle? As often as not, it&apos;s because they misjudge their customers. Forrester has developed a tool called the Social Technographics Profile for analyzing groups of vcustomers and their social tendencies. For example, L.L. Bean should review the Social Technographics Profile of its customers before forming a strategy. Based on this profile, online consumers who shop at L.L. Bean: Are more socially active online than average Americans. Starting at the bottom of the profile, you can see that nearly half of all online Americans are Inactive, untouched by social technologies, but only 36% of L.L. Bean shoppers are Inactive. This creates urgency for L.L. Bean to work on its social strategy, as most of its online customers are already participating. Would accept Critic activities like reviews. Thirty-four percent of online L.L. Bean shoppers are Critics: people who contribute to discussion forums or write ratings and reviews. Based on this profile, many of L.L. Bean&apos;s customers would participate in ratings and reviews if they were available on its site. Are highly likely to be Collectors. L.L. Bean shoppers are more than twice as likely to be Collectors as other online consumers. RSS feeds, a major Collector activity, are missing from the L.L. Bean Web site. Are also well above average in Creator and Joiner activities. One in four online L.L. Bean shoppers are Creators: people who write blogs, maintain Web sites, and upload videos. A similar proportion are Joiners: members of social networks. This gives a green light to strategies based on any of these activities. Step 2: Pick An Objective By itself, the profile only tells a marketer what&apos;s possible. Next you should decide what you want to accomplish. Based on our experience with companies building social strategy, there are five main objectives of social strategies for connecting with consumers. To get started, pick the one that&apos;s best suited to your company&apos;s overall goals: Listening. Use social technologies for research to better understand your customers. For example, Del Monte used a private community to understand the desires of pet owners. In social strategy, listening typically involves private communities or brand monitoring. Talking. Use social technologies to spread messages about your company. Executive blogs like GM&apos;s FastLane are a quick way to talk to, and with, your customer base.(see endnote 4) Interactive marketers can also extend the brand through social marketing activities like videos on YouTube, as Dove did with its Dove Evolution video, or with brand widgets like Discovery Channel&apos;s Shark Week widget. Energizing. Find your most enthusiastic customers and use social technologies to supercharge the power of their word of mouth. This works well for retail companies, which can use ratings and reviews from some customers to influence others. Other energizing strategies include designating brand ambassadors, as Fiskars Brands did with its Fiskateers scrapbooking community, or leveraging social networks as Victoria&apos;s Secret did for its VSPink brand. Supporting. Set up social tools like forums and wikis to help your customers support each other. Supporting can save costs, as in the support forums run by companies like Dell and Intuit. Supporting customers with a community can also increase their comfort level and increase sales. Embracing. Integrate your customers into the way your business works, including using their help to design your products and improve your processes. This is the most challenging of the five goals, and is best suited to companies that have succeeded in one of the other four goals already. Salesforce.com&apos;s IdeaExchange is a powerful example of how customers&apos; suggestions can help improve products. L.L. Bean&apos;s key objective initially is likely to be energizing its most loyal customers. For L.L. Bean, giving a voice to its enthusiastic customer base with the right social strategy has the potential to increase sales. Step 3: Choose A Strategy Your objective determines what business goal you want to accomplish. Having decided on the objective, you can move on to strategy: how will you accomplish the goal? In particular, social strategy revolves around answering this question: How do I want to change my relationship with my customers? While activities like social marketing campaigns can have a short-term impact, the long-term value of activity in the social world is the ability to change relationships with customers. By focusing on the relationships, not the technologies, marketers can keep their eye on long-term change that matters. To flesh out this type of strategy, companies like L.L. Bean should take the following steps: Describe the new relationship. L.L. Bean&apos;s current relationship with its customers is as a trusted supplier with a large inventory and excellent service reputation. In energizing its customers, L.L. Bean will extend the relationship, giving its satisfied customers opportunities to discuss their experiences on the L.L. Bean site, and by doing so, motivate other customers to buy. Measure the impact of the change. It&apos;s crucial that companies have metrics in place to measure progress towards the objective. For example, in energizing strategies like the one we laid out for L.L. Bean, you should measure to what extent visitors to social elements of the site are more likely to actually buy something. If your objective is talking with customers, measure awareness, impressions, or online buzz. If it&apos;s supporting, look for declines in support costs related to site visits. Regardless of the objective, your strategy is not complete without a success metric. Identify barriers to the strategy. Change created by social strategies is often difficult for companies to swallow. For example, L.L. Bean now has a direct relationship with all of its customers. By featuring customers&apos; opinions on its site, the company will be admitting that those consumers influence buying decisions as much as the company itself, a transition some L.L. Bean executives might find difficult to make. Step 4: Select And Deploy Appropriate Technologies — And Measure Results By this point, you&apos;ve determined your customers&apos; profile, you know what technologies they will accept, and at what rate. Since you know your objective and have nailed down a strategy, now you can evaluate technologies. This is why it makes sense to evaluate technologies only after you&apos;ve finished the other three steps. In this case, Forrester recommends that L.L. Bean consider three social technologies: Ratings and reviews. Because L.L. Bean&apos;s online customers are likely to be Critics, the best energizing technology would be to deploy ratings and reviews on the L.L. Bean Web site and encourage customers to post their own evaluations of products. Studies by companies like Bazaarvoice have proven that ratings and reviews can significantly increase sales, and Forrester&apos;s own research shows that 80% of customer-supplied reviews are positive. User-generated content. L.L. Bean might also enable customers to energize others by allowing them to upload pictures of their outdoor experiences, as Dick&apos;s Sporting Goods does on its &amp;quot;bragging boards.&amp;quot; Given the relatively high number of Creators among L.L. Bean shoppers, encouraging them to upload photos or videos is likely to succeed. List making. With a quarter of L.L. Bean customers in the Collector category, the site can tap into their organizing skills and ask them to assemble their favorite collections for different activities, ranging from family road biking to ocean kayaking. Integrating these lists into product descriptions and search results, as Amazon.com does with its Listmania tool, will encourage cross-sell and upsell.
  19. Windows Brand Voice | Hand Out October 22, 2009 © 2008 Microsoft Corporation. All rights reserved.
  20. Windows Brand Voice | Hand Out October 22, 2009 © 2008 Microsoft Corporation. All rights reserved.
  21. These 3 strategies combine together to make a community program where we monitor the conversations and participates through passionate users. Each strategy by itself will accomplish some measure of success but the strategies combined allow us to participate, evaluate messages and course-correct where need be. Without SMM we will not know which messages are having the most success, if our advocates are making progress and if the brand platform is reaching into the consumer influence. Without the advocacy program the voice will be ours only and won’t allow for relationship building and customer feedback. Without the brand platform we will not be able to leverage the CRM system, the content will live somewhere outside our network and customers won’t be having a 1 st run experience with our brands and products. Advocacy is 3 rd party.
  22. Know what kind of relationship you want to develop. The simplest thing that a marketer can do on a social network is to repurpose existing elements from the corporate Web site, throw up a few ads as part of their sponsored group, and hope to generate some sales. This not only doesn’t work but also typically backfires, as users see that the marketer isn’t really trying. Similarly, don’t put up a one-time promotion or contest to get users to add the marketer as a friend unless you will follow through with them. Forward-thinking marketers like Condé Nast Publications’ Brides.com instead think about what kind of relationship they will develop with users over time — from the engagement to a time after the wedding takes place. Newly engaged women can download a wedding countdown timer that they can put on their own profile pages. Their friends see the timer and are likely to add their own timers once they get engaged. The Brides.com profile page also features links to the Brides.com site, which has deeper features and content, such as wedding photo sharing areas. Provide real value. SNS marketing needs to become a part of users’ lives, and one sure way to do this is to provide value in the form of entertainment, information, or promotions. For example, Chili’s sponsors “Secret Shows” on MySpace, where only “friends” receive clues about the date, location, and name of the band that will perform. Ad-focused marketer profiles like Jeep’s profile on Facebook don’t provide much incremental value that isn’t already found in traditional channels. Compare that with the “Yes I own a Jeep Wrangler, and wave to other wranglers” group that taps into the unique culture among Jeep owners. Short-term promotions like sweepstakes entries or free MP3 files may encourage sharing, but long-term brand impressions may not have changed substantially. For example, Apple gave away millions of iTunes to build its large community, but it now also needs to provide value at a different level or it will be forced to ante up again. Get employees to be actively involved. SNSes provide a platform for communication among friends, and yet, only a few brands have engaged in any sort of personal dialog with users on their SNS profiles. What kind of friend never says hello or responds to questions? Contrast this with Ernst &amp; Young (E&amp;Y), which created a group on Facebook expressly for the purpose of reaching out to college students interested in working at E&amp;Y.19 Naturally, students post questions on “The Wall,” and employees like Dan Black, the director of campus recruiting in the Americas for the company, write back — sometimes in highly personal ways.20 Here’s a sample of one of these conversations: Nick Lao: “Hi E&amp;Y I have a question: is the summer leadership program competitive? Is it beneficial to have that on resume during the recruiting process? Is there any other E&amp;Y sponsored events during the summer other than this one? Thanks and hope to hear from one of you soon.” Dan Black: “Nick — sorry I missed your question first time around (eyesight is the first to go for us “thirty-somethings” I guess). Yes, the Summer Leadership Program is very competitive, since it’s the first opportunity that any student has to connect to the firm. If you aren’t selected for it, then you should apply for an internship the following year; if not selected for that you should apply for full time in your last year. Sounds tough? It is, but it’s worth it. I was rejected for an EY internship but perseverance won out when I came back and interviewed for a full time gig — here I am 13 years later . . .” Participate without fear, and respond quickly to feedback. Part of engaging in a dialog is that users will talk back — and not always in friendly terms. E&amp;Y was prepared for negative feedback and had a plan in place to leave most comments standing unless they were profane. The firm has deleted very few comments so far and has notified users when it does. JPMorgan Chase’s credit card department used feedback from its Facebook group to create a “karma points” program associated with the Chase +1 program and also acted quickly on suggestions, such as changing the design of the profile to make it easier to use. Keep growing the relationship. So you finally get a SNS user to add you as a friend — now what? Marketers need to think through in advance how often they will refresh content on profiles or send out messages to the friends list to keep the relationship fresh. For example, the Victoria’s Secret group VSPink sends out messages to group members about upcoming contests, such as winning a “PJ Party.” At a minimum, marketers should message friends regularly but avoid using this channel to push out the weekly special. Instead, the messages and updates throughout the network should be building up value for group members, as noted above. Use the right metrics. Counting just the number of friends linked to the brand only scratches the surface of SNS value. As the MySpace and Marketing Evolution study with Adidas and Electronic Arts showed, the marketers’ SNS metrics could be tied back to the original goals of the marketing campaign — such as increased brand awareness and purchase intent — thanks to elements like viral downloadable badges. Chase +1 on Facebook rewards activities like taking a credit education quiz that users can then redeem for merchandise on Amazon.com or gift to a friend or charity of their choice. In the case of the Chase +1 campaign, three metrics were most important: 1) brand awareness in Facebook; 2) number of credit cards linked to the group; and 3) usage of the cards after the sign-up. The benefit of using these three metrics is that they can be used to compare Facebook’s performance against other marketing channels — and also as a baseline to tweak elements within the Facebook presence itself.
  23. Six Tactics To Successfully Engage With UGC Interacting with customers at a more intimate level requires a different way of thinking. While the loss of control and exposure created though the necessary openness can be troubling at first, there are some key tactics companies can use to stay on top of the situation. Knowing where communities currently congregate and what is being said is critical before you attempt to enable your own UGC. To begin with UGC, follow these six steps: 1. Monitor consumers generating content about your brand. The first step begins with observing what content people are creating about your brand. For a more formal method, look to brand monitoring firms like Nielsen BuzzMetrics or Cymfony to collect and analyze data. On the less formal side, maintain a team focused on locating and tracking blogs and other media about your brand. This doesn&apos;t have to be the team&apos;s full-time job, but you need some of its time dedicated to this effort to properly identify and track UGC activity. Try using simple tactics such as Google Alerts or other automated content notification tools to track online activity as it emerges. 2. Leverage your UGC community. Consider selecting one or two popular individuals commenting on your brand to contribute to your marketing efforts. When Vespa initiated its blog, it tapped its owner base for volunteers to write the content. Reward participation, even if they say things you don&apos;t like — let contributors know that you&apos;re listening and that you are open to their suggestions and ideas. Continuously analyze what people are saying and respond with appropriate product and service changes — and thank them for the advice. 3. Participate in existing consumer-driven communities. Identify the most highly used destinations of UGC for your brand — then join in and become a member. Don&apos;t hide your relationship to the brand; be open about who you are and why you&apos;re there. Listen to what people have to say, respond, and be honest with your commitments. Consider sponsoring or advertising on the site as a show of support. If possible, contribute content of your own that matches the content being generated in the community — think like a content-provider, not an advertiser. 4. Respond to negative commentary. Start off by establishing clear guidelines about what is allowed and what is not — both for your staff and for customers on your branded UGC sites. Don&apos;t block negative content, but have a plan in place to respond. If you see a consistent type of feedback, make a blanket response addressing those issues. For individual cases, respond back to resolve the issue, just like you would for a customer service call. Most importantly, be clear about how you will respond, and don&apos;t block content because it&apos;s in disagreement with your point of view — leaving that content demonstrates transparency and builds authenticity for your brand. Over time, you&apos;ll see other people on the site writing back to each other in defense of your brand — General Motors&apos; FastLane blog frequently sees its users carrying on a discussion about a post within the comments. 5. Select the right technology to engage your customers. The existing technologies being used by your customers will give you a good indication of what people are looking for. Try blogging if you have something to say and enable comments. Deploy a wi