The Good, the Bad and the Ugly of Social Media and e-Communications


Published on

Dana VanDen Heuvel is a widely recognized expert who
speakes regularly on blogging, podcasting, RSS, Internet
communities, interactive marketing trends, and best
practices. This morning’s keynote will address the good,
bad and ugly of today’s electronic communications. Plan
to leave this session armed with the knowledge of how
to effectively use electronic communications to create
meaningful relationships in your community.

Published in: Business, Devices & Hardware

The Good, the Bad and the Ugly of Social Media and e-Communications

  1. 1. The Good, the Bad and the Ugly of Electronic Communications Download Slides at:
  2. 2. Dana VanDen Heuvel Dana is the founder of The MarketingSavant Group and a widely recognized specialist in emerging marketing technologies such as blogging, social media, RSS, Internet communities and interactive marketing trends and best practices and speaks regularly on these topics at industry events. Dana is the creator of the American Marketing Association ―TechnoMarketing‖ training series and the author of the AMA‘s Marketech ‘08 Guide To Marketing Technology and the recent e-book, Social Networking: MySpace, YourSpace and TheirSpace.
  3. 3. After-Event Slides & Resources  The slides and resource links are available electronically after the event:
  4. 4. The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2
  5. 5. Source: Justin Kirby & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. xix Crisis In Mass Marketing  18%: Proportion of TV advertising campaigns generating positive ROI  54 cents: Average return in sales for every $1 spent on advertising  256%: The increase in TV advertising costs (CPM) in the past decade  84%: Proportion of B2B marketing campaigns resulting in falling sales  100%: The increase needed in advertising spend to add 1-2% in sales  14%: Proportion of people who trust advertising information  90%: Proportion of people who can skip TV ads who do skip TV ads  80%: Market share of video recorders with ad skipping technology in 2008  95%: The failure rate for new product introductions  117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965  3000: Number of advertising messages people are exposed to per day  56%: Proportion of people who avoid buying products from companies who they think advertise too much  65%: Proportion of people who believe that they are constantly bombarded with too much advertising  69%: Proportion of people interested in technology or devices that enable them to skip or block advertising
  6. 6. Information Proliferation  Media Fragmentation - Then, and Now 1960 Now 6 TV channels/home 130 8,400 Magazines 17,300 4,400 Radio stations 13,500 None Internet stations 35,000 + None Pages on Google 12 B + None Blogs 200 M +
  7. 7. Source: Marketing Leadership Council -
  8. 8. Where Everything Is Headed Today Digital Non-Digital 1996 2008 Source: Google 2050?
  9. 9. 360 Digital Marketing World Online eNewsletters Email Real Simple Media eMail eCards Syndication (RSS) Content Partnerships News Community sites Syndication Special Blog Search Engines Manifestos Interest Conversations Blogs Blog Aggregators Chat Rooms/Events Search Engine Optimization Citizen Photo Blogs Action Listservs Keyword Marketing eAlerts Message Boards Search Meetups Text-messaging Press Rooms Web Sites Viral Games & Online IM w/RSS Wikis Content Contests Advertising Folksonomy Digital Radio Social VBlogs Bookmarking Podcasting Digital Webcasting Devices Phones DVR PDAs Game Microcasting (Tivo) Consoles Source: Ogilvy
  10. 10. Source: Brian Solis via Flickr
  12. 12. More Simply Put: ―Social Media is people having conversations online.‖
  13. 13. The conversations are powered by…  Blogs  Widgets  Micro Blogs  Online Chat  RSS  Social Networks  Social Bookmarks  Message Boards  Podcasts  Video Sharing Sites  Photo Sharing Sites  Virtual Worlds  Wikis (…just to name a few)
  14. 14. Who‘s Out There?  More than half of all online American teenagers use social networking sites.  64% of online teenagers created content *
  15. 15. Who Participates in Social Media? *
  16. 16. How do YOU participate online?
  17. 17. 10 Questions For You 1) Do you read blogs? Which ones? 2) Do you have a personal blog? What's it about? 3) Do you participate in at least one social network? Which one? 4) Have you ever uploaded a video online? What did you use to do it? 5) What's your favorite search engine. Why? 6) Have you ever used an online classified service like craigslist? 7) Besides making phone calls—how else do you use your mobile phone? 8) Have you ever registered a domain name? 9) Do you use social bookmarks or tagging? 10) Do you use a feed reader of some sort? Which one? Why?
  18. 18. “The Good”
  19. 19. Jones Soda – Youth Blogs Company: Jones Soda Blogging Model: Industry: Consumer Packaged Goods •Loose connection of independent youth & Blog URL: athlete bloggers Launch Date: Multiple (individual bloggers) •Event driven marketing/blogging •Community building as a corporate strategy David vs. Goliath: •Grassroots marketing efforts •Well targeted to Gen-Y consumer base •Blogs align with underground image and the brand stewards, (non-traditional athletes) notably skateboarders, Brand Community [Blogs]: •Built on context and relevance of content •Consciousness of kind •Create a community around yourself
  20. 20. Facebook Success: Apple Students  Embracing existing community  Free product sample  eCommerce  Cross Promotion  Results  420,000 users  12,000 topics
  21. 21. Indium Social Media Strategy  25% reduction in marketing spend  Major account wins  Entire organization involved in the ‗community‘
  22. 22. Stonyfield Farm Blog Objectives: •Capitalize on their quot;personalityquot; in the world--they care about the environment Company: Stonyfield Farm •Maintain touch with loyal, long-standing customer Industry: Organic dairy base Blog URL: •CEO, Gary Hirshberg, wants to quot;be realquot; and saw Blogs: 4 the blogs as a way to do that--inspired in part by the success of blogs within the Howard Dean presidential bid of early 2004. Recent Per Month Visits Results: •Strong Women Daily News: 15,603 •Direct comments from readers, engaging in •The Daily Scoop: 4,049 conversation •Creating Healthy Kids: 9,659 •Generate ‘good will’ •The Bovine Bugle: 28,237 •Growth in email newsletter subscribers Source:
  23. 23. Power of Twitter  Beth Kanter 2008: Can conference room of connected people get 250 people to donate $10 by the end of the conference?  $2,657 from 112 donors in 90 minutes
  24. 24. Twitter Community Lends Support Widget . $3500 Collected In The First 15-hours!
  25. 25. Voltz & Grobe (Diet Coke + Mentos)  20M video downloads  $10M in free publicity for Mentos ½ its annual marketing budget  1.5B ad impressions for Coca-Cola
  26. 26. Southwest is Winning with Widgets  2 Million Downloads  Generated $150M  45% of customers book again  July ‘07, blog attracted 100k visits, 40M uniques  Past 12 months, blog has received 6,200 comments (20 per day)
  27. 27. Integrated Social Media Strategy Goodwill Repositioning Blog YouTube MySpace ebay Store
  28. 28. A Few Stats  Over 11,500 unique visitors to the virtual fashion show 9/12 launch  Over 42,000 page views  16% of fashion show visitors have been converted into online Goodwill shoppers  Fashion Show Visitors from 31 countries and 48 states plus DC  48% of fashion show visitors are from the DC, MD, VA region (the area we serve)  Blog is averaging between 600 & 700 visitors a week  5.6% of blog visitors are being converted into online Goodwill shoppers  Blog visitors from 77 countries and all 50 states Brick & mortar stores during the two weeks following the launch of the fashion show:  Customer count + 6.6%  Rack sales (clothing) + 16.5%  Total sales + 8.275%
  29. 29. Pontiac Example
  30. 30. Cadbury Wispa Comeback  80‘s candy bar brought back to life  Facebook group, online petitions, social media buzz  Cadbury was listening! “The Birmingham-based chocolate firm said the comeback was a response to online petitions and campaigns on social networking sites such as Facebook and Bebo..” Archive/Article/20082851280368
  31. 31. Jeep‘s ―Jeep 2.0‖ Strategy 1. Portals (using contextual/Google and behavioral/AOL targeting) 2. An IM avatar development program 3. Online video - A new campaign site which was redesigned to host rich-media offerings like video vignettes 4. Virtual quot;test drives― 5. Ads on free music download sites with viral marketing (pass this song on to your friends capability) 6. Microsites 7. Traditional TV with product placement 8. Events and bowl games - An online fantasy football sponsorship w/print component 9. Print ads
  32. 32. Jeep – The way beyond trail  A choose your own adventure interactive film  User integrates him/herself directly into the video and story reflects their personal registration selections  Program provides clues in exchange for ―tell a friend‖  Product directly integrated and demonstrated through plot line of film
  33. 33. Jeep Hosts Fans in Facebook
  34. 34. …and Courts Fans from Any Communtity
  35. 35. InDecision 2008 Both campaigns provided amazing lessons This is what social media is all about. This campaign is the product of superior multi-channel audio, video and text content distribution using new and traditional media platforms.  Getting the message out.  Keeping the message fresh.  Sticking to the story.  Tracking and staying in touch with the interested visitor.  Developing a worthwhile engaging relationship with those who can support you and your concerns.
  36. 36. How They Stacked Up Source: Jeremiah Owyang
  37. 37. Who wins… Source:
  38. 38. “The Bad”
  39. 39. Digital & Social Media Conversations “There’s a real cost to ignoring the conversation.”
  40. 40. No Love for Iams What if half the store shelf said, “Don’t Touch This?”
  41. 41. Word Of Mouth Is A Powerful Force Word of Mouth Among Airlines (evangelists) Source: Harvard Business Review
  42. 42. Wal-Mart: Disclose, Disclose, Disclose!
  43. 43. Chevy Tahoe / The Apprentice
  44. 44. Comcast Learns Social Media…  Comcast tech filmed sleeping…waiting for his own customer service team.  A viral video & blog sensation (of course!)  Popular blogger ‗Tweets‘ his Comcast woes  Comcast calls him 20 min later and resolves his issues!
  45. 45. “The Ugly”
  46. 46. Kryptonite: No Match for Blogs!
  47. 47. ―Rahodeb‖  Unethical, covert blogging by Whole Foods CEO John Mackey  According to FTC documents, Mackey had been posting comments for the past eight years until last August.  Accused of hyping his own company's stock and running down rivals.
  48. 48. Other Notable Disasters
  49. 49. “Content is the new democracy and we the people, are ensuring that our voices are heard.” Brian Solis, “The Social Media Manifesto”
  50. 50. The Relentless Pursuit…of the NBT Addiction To Bright + Shiny Objects
  51. 51. ―Web 2.0‖ Is The Mother of all Bright + Shiny Objects
  52. 52. Symptoms Of B.S.O.S. (Bright + Shiny Object Syndrome)  A soft spot for buzzwords  A disposition to regurgitate the latest buzzwords you just overheard  An insatiable desire to sell ―the latest thing‖ to clients  A tendency to believe the hype, without investigating for yourself  A tendency to dismiss without investigating for yourself  Excess use of the word ―viral‖ viral…viral…viral.. viral…  Lack of interest in research or first hand experience  Total disregard for customer, brand or business needs
  53. 53. So, Now What?
  54. 54. 9 BIG THEMES
  55. 55. 9 Big Themes 1. We‘re in the BETA economy  No other medium allows you to launch, test, re- launch, test, measure, tweak, re-tweak, evolve, re- launch, quite like the Web  Folks like Guy Kawasaki and Seth Godin preach about this all the time. Guy launched his Truemors service on a shoestring budget and uses Twitter to promote it.  When budgets get cut – marketers look to digital for new ways of testing out ideas vs. big bang and big budget initiatives (think Bud.TV)
  56. 56. 9 Big Themes 2. Marketers use existing platforms Why build from scratch when you can use NING as a social network, Wordpress as a CMS, Basecamp as a Collaboration tool and Concept Share as a way to co-create. Now is a great time to dig into the already existing platforms (in addition to existing social networks).
  57. 57. 9 Big Themes 3. Marketers are just switching tubes Consider skipping mass TV all together. It worked for BMW films and with YouTube firmly in place — it can even work with less production values and high priced talent. Consider ways to make the participant the star!
  58. 58. 9 Big Themes 4. It‘s all about the tubes…  BRANDS  CONSUMERS  In 1965, 80% of 18-49 year-olds in  Big Six study (US): People with PVR‘s the US could be reached with three watch 12% more TV, yet 90% of them 60-second TV spots. In 2002, it adskip (Germany : 88.2%) required 117 prime-time commercials to do the same.‖ (Jim Stengel, Global Marketing Officer,  54% of US consumers avoids products P&G) & services which ―overwhelm‖ with advertising (Yankelovich Partners)  A US hour of prime time TV carried 21 minutes of advertising, Late Night  85% of Chinese stop watching TV network shows like Leno or during commercial breaks. More than Letterman carry 31:27 (TNS Media half change the channel, while the rest Intelligence, Q1 2006) do housework, eat, chat or use the bathroom. (McKinsey & Co.)
  59. 59. 9 Big Themes 5. Marketing: To touch point infinity, and beyond!  Don‘t put all your digital eggs in one basket like a site or banner campaign—look at smart ways to distribute the experience across as many touch points as possible.  Be smart about it. Think about how your user thinks and acts digitally and meet them in them medium.  Of course this doesn‘t have to be digital, but you might get more bang for your buck.
  60. 60. 9 Big Themes 6. Marketers trade focus groups for Digital Ethnography  Research dollars converted to social media currency (Victoria‘s Secret)  Look to the internet & social media for insights.  Social Networks and search engines can be rich ethnography tools. I‘m not advocating to abandon field research—but before you slash that discovery phase, think about how digital can be used to find things about the behavior of your target.
  61. 61. 9 Big Themes 7. Marketers think outside the banner  Think about traditional media buys such as banners differently.  They should no longer be the first line of offense in a digital initiative.  Quality may replace quantity—Apple’s recent entry into the online banner space taught us that banners can still work—but the ROI improves with creativity.  Social ads, blog outreach and other ‗participation‘ based media spends could prove more effective.
  62. 62. 9 Big Themes Yankelowich 76% of consumers don’t believe that companies tell the truth in advertisements
  63. 63. 9 Big Themes Yankelowich 8. Marketers embrace ‗delight by function‘  The digital media/ tools/ network/ widget becomes the product…and the marketing  When tempted to cut budgets in digital product functionality—think again.  Adding or improving existing functionality may lead to product preference which increases revenue, sales and even saves money. (think widgets)
  64. 64. 9 Big Themes Yankelowich 9. Marketers listen to New Media  Digital gives you many ways to listen to customers – from direct engagement like Dell‘s IdeaStorm or My Starbucks Idea to simple surveys or even A:B testing.  All are excellent examples of using digital to turn up the volume on customer desires.  Those brands that do the best job listening will weather any downturn.
  65. 65. How to control millions of inaccurate and divergent conversations ? YOU DON’T Consumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go. A.G. Lafley, CEO and Chairman of P&G, October 2006 (cc) Lynette Webb, 2006
  66. 66. “Every brand needs to be relevant and part of a community. They need to open a dialogue with their consumers, but they also need to be prepared for what could be negative feedback and I don’t think all marketers are ready for that.” - Bob Ivins, EVP, comScore
  67. 67. “L.A.M.P”
  68. 68. LISTEN Where are your customers online/offline?  Blogs, Social media tools (e.g. LinkedIn Answers), Discussion Forums, Twitter, etc…/Events Monitor these conversations:  Find your brand using Google Alerts,, and  Use a central tool to track the different conversations happening around your company. Most online conversations are RSS enabled, barring a few Yahoo! groups that don’t support RSS. Use a RSS reader (e.g. to gather all these conversations into a central repository and create a folder that you check on a daily basis.
  69. 69. AWARENESS Calculate Brand perception within these conversations  News & Blogs (Google search, Google Blog search, technorati search)  Keyword mentions & incoming links  Corporate Blog (Unique users, hits, trackbacks, comments)  Brand Scoring system (how much buzz are you getting vs. competition)  Assign a marketer to staying aware and alert to what’s going on in social networks and social media  Around your organization  Around your competitors  Around your industry
  70. 70. MEASURE The value of social media presence can be calculated by simple methods:  Reach How many people are influenced by our social networking efforts?  Acquisition How much of their attention have we acquired through connections, website visits, and time spent engaging with us?  Conversion How many have we ‘converted’ toward the ultimate goal (subscription, sales, leads, registrations, evangelists, etc.)?  Retention Are we reducing customer churn, lowering our overall cost to serve, increasing the purchase value/volume/frequency, and growing the lifetime value of our customer base?
  71. 71. MEASURE Another take on the process of measuring social media value Source: Forrester Research
  72. 72. PARTICIPATE Create a strategy around how you wish to participate! You have the following options:  Be where the users are  Facilitate easier means of communication with them  Create brand evangelists  Be a source of information on the organization  Respond swiftly and honestly  Start publishing content  Stir internal company conversations  Improve product and user experience
  73. 73. Top ten obstacles to new media 1) Inadequate resources (time and/or money) 2) Disconnected employees 3) Resistance to change 4) Desire to control communication/fear of unknown 5) Not convinced of benefits 6) Perceived lack of IT capabilities 7) Resistant culture 8) Senior management won‘t allow it 9) Legal/governance/regulation issues 10) Would require too much training
  74. 74. Five Keys to Success  Be Generous With Your Knowledge  Share beyond the marketing speak  Be Consistent  Calendar your activities – daily, weekly, monthly routine  Always Deliver Value  Listen, think, revise, teach, repeat  Take A Stand  Take your strong positions to market  Focus On The Long-term Benefits  Track your results in months & years
  75. 75. New Media Homework!  Find blogs in your area of interest using Technorati  Seek out podcasts for marketers (or whatever you fancy) in iTunes or Podcast Alley  Sign up for a free RSS reader (Bloglines, Google Reader) and consume feeds  Join LinkedIn  Anyone not visited YouTube yet? Look for your favorite things there too
  76. 76. New Media Extra Credit  Become a regular commenter on blogs that interest you  Join Facebook & ask a question on LinkedIn  Start a blog of your own on a topic of your choice  Create a podcast  Switch over some of your newsletter subscriptions to RSS feeds  Get a Flickr account to share photos
  77. 77. The Good, the Bad and the Ugly of Electronic Communications Q&A Download slides at: Need help after the presentation? Email