Interactive News

Failures and opportunities in social media marketing

On Cnet is news about a new study by Gartner with the catching headline of a 50% failure rate:

75 percent of Fortune 1000 companies are eager to get involved in social-networking initiatives for marketing or customer relations purposes, but 50 percent of those campaigns will be classified as failures

The main problem is (oh wonder) the differing expectations about what will happen during those marketing efforts:

The quirkiest and most addictive campaigns often provide little value for the company and turn out to be fads, whereas marketing efforts on the Web often don’t go over as well with the public.

In addition, the report points out that online usage during the purchasing process of all products and services will increase:

Gartner’s research shows that by 2012 fully half of all purchases will have some online component. That could mean searching for product reviews, reading about a new product on a blog, or comparing prices even if the purchase is ultimately made in a store.

So the need to figure out win-win situations for brands and the community are ever more important.

And furthermore, a “heads up” for online marketers for the financially difficult times ahead:

Businesses will turn to the Web to stay in touch with consumers during a difficult financial climate. “This is going to be a lifeline,” he said. “Your spirit of customers is probably the only thing you have.”

1 trillion unique webpages and information overload

Just a quick note: While read/writeweb writes about information overload and how it has caused a productivity loss of $650 billion, Google boasts about having indexed 1 trillion (1,000,000,000,000) Websites. Add Email, twitter, SMS and possibly even paper producst like books and newspapers, the amount of information available – or battling for our attention – is enormous these days.

Tools for searching (or: finding), aggregation, filtering and blocking will become ever more important.

Participation will no longer be optional.

I missed the blogpost “social media will be like air” by Charlene Li in March. But before not mentioning it at all, I’ll rather blog about it late. The article is about the fact that social media, especially the communities/social networks that make up these media plattforms, will be be ubiquitous in a few years. The son of my boss once asked, how people managed to access the internet before computers were invented. A rather smart question, once you think about it.

In a few years kids will ask us, why we used so many different platforms to socially engage with one another online. (And why we used platforms in the first place). Similar to why they will ask us, why we needed stationary big machines with huge screens to access the internet.

So the article of Charlene Li is worth reading in any case, but there was one point that I particularly noticed:

4) A business model where social influence defines marketing value. Today’s advertising models don’t work on social networking sites – that’s because simply targeting better on profile or social graph details is still the same old media model of CPM and CPC pricing. What’s missing is marketing value based on how valuable I am in the context of my influence. For example, Steve Rubel is a highly influential person because he is an authority on social media, the people in his social graph tend to interested in his views, and they in turn have a great deal of authority as well. (Several people came up to me after the speech and said that this is similar to a “PageRank of people”, a very easy way to crystallize the idea.)

There are discussions about the future of your “typical target group” already going on. The idea of establishing a “PageRank of people” seems to be a viable solution. Discriminating it may be, but it provides a good indication of who to target – or should we rather call it: speak to?

In summary, Participation is no longer optional writes Steve Rubel, referencing Charlene Li’s post. And he ads:

The end result is that marketers will need to shift the way they approach communities. Static advertising is no longer viable. The solution is collaboration. Marketers will need to tap these emerging social operating systems to build meaningful connections through their sites and others before competitors do.

Engaging in “social networking” with your brand/product advocates will be is a crucial part of the media mix. I just wonder, when this insight will have found its way into marketing plans of most companies?

Vote for marketing memes on the web

I should have known. The chances of having an idea first are really slim. So someone, Alister, to be precise, came up with the idea to block the URL for Marketing Meme first. A URL that could be the meme-tracker of the marketing world, just as techmeme is the meme-tracker of the technology world.

Not sure when he came up with this, of course, it doesn’t say on the site. All it says is: your vote and support is needed here. And the post behind that link was written in December of last year (so I am probably only 5 months too late – which is a decade in internet terms). Now he is asking us from the marketing community to help him to get the guys from techmeme to setup a special service for the marketing industry:

I’d be happy to see some nice ongoing volume of inbound links from SEM Search, but honestly, I’d really like to see Gabe Rivera over at techmeme.com create a “marketingmeme.com“, that removes SEM/SEO/SMO/PR/etc stuff out of techmeme and puts it under its own “engine”, building off, say, Lee Odden’s list, with some fuzzy logic around that, finding other on-topic blogs as well.

So if you’re interested in having such a service (I am, for sure!), go over to this site and put your vote in the comments!

Joost focuses on the US.

Just a quick one: Joost shuts down its global operations and focuses on the US only. Shame, I liked the idea of Joost. But in the end, it was brought down by two main factors that even a technologically smart way of streaming videos can’t solve: first: trying to buy global rights for content that studios could probably sell much more profitable on a country-by-country basis. second: having exclusive, compelling content that users won’t find anywhere else (nevermind that they’re overloaded with too much online video anyway.

And for me: I always felt like the joost interface just wasn’t right somehow. I don’t watch fullscreen video on my PC. Still, I was always hoping for it to evolve (globally), so that one day I could enjoy watching videos via joost. But not any more, I guess.

Average user clickfarms

There is a standard joke around online advertising managers about the fear of those “chinese villages” taking over one of your ad campaigns so that you receive the clicks you paid for, only all of them come from one and the same family (in China or India, or Eastern Europe or Antigua, etc. it doesn’t really matter).

But you don’t need to go very far away. Your next door neighbor might be part of a “click farm”. Even though he most likely never realised what he got himself into.

Just the other day I took a look at a site called OnlineTVRecorder.com (don’t want to give them any link credit). On that site you can record TV programms of any German TV Channel – most of which I wouldn’t even be able to access in this area of the country. You first record them, and then download and decode them. But you can only decode those that you “recorded” in advance. This makes it similar to any VCR/DVD recorder and hence (I guess) a legal way of recording shows via the web.

So far so good. However, the system only works for you, when you pay per download with so called “good will points”. If you haven’t got enough points, you can’t download or decode any files.

And how do you get these points? There are two ways. Either you donate money, or you click on some of their ads. Yes, that’s right: you can click on the ads to receive good will points! You get points for clicks that advertisers pay a lot of money for (on aggregate).

I guess most users on this site aren’t fully aware of the fact that each of their clicks contributes to ripping of advertisers. Note: I am not saying “poor advertisers” here! I am just saying that advertisers don’t get what they pay for when they signed the contract with these mediasites: intentional attention.

Clickworking is an interesting and positive trend, since it uses the minimal individual productivity of large crowds to achieve a large complex goal.

Clickfarming seems to be a dark side equivalent. Utilize the small contributions of a large crowd’s individuals who might not even (want to) realize that their few clicks are contributing to a large system of fraud.

I wonder how many other sites of this kind are out there? How much dubious content is paid for in this way? How many advertising campaigns bought on a pay-per-click basis have been corrupted by clickfarms like these?

If I was an advertiser and I saw one of my banners on one of those sites, I would ask my media agency or the publisher for my money back. And may be sue them.

Chrysler listens, Starbucks wants ideas.

There seems to be a concurrent trend. Two companies just announced new projects / plattforms on which they want to listen to consumers, engage them, discuss product development with them.

Starbucks launched the website “My Starbucks Idea” on which they aks users to provide Starbucks with their ideas:

You know better than anyone else what you want from Starbucks. So tell us. What’s your Starbucks Idea? Revolutionary or simple—we want to hear it. Share your ideas, tell us what you think of other people’s ideas and join the discussion. We’re here, and we’re ready to make ideas happen. Let’s get started.

As you would expect, you can post ideas, vote on other’s ideas, discuss ideas, etc. In addition, there is a blog called “ideas in action” that covers the project. At the moment, some sources are rather cynical about the project, because people mostly just ask about free drinks, fre Wi-Fi, etc. I am curious to see if there will be some really good ideas with added value resulting from this approach.

Chrysler, on the other hand, will launch a “customer advisory board” of up to 5.000 consumers chosen of those who will apply through the website to take part. Once they can access the forum, they can submit ideas, get a sneak peak at videos, etc. It will be interesting to see if they can capture the right target audience, to quote autoblog:

However, we’re a little unsure if the tactic will provide Chrysler with what it needs to shape the future of its products and services, considering that the only people likely to sign up are partisan pistonheads who are already married to the Mopar camp or slighted customers looking for a place to vent.

For some companies, this change in dealing with the (online) target group has resulted in successes, as Ad Age writes about the Dell case study:

This sort of online listening post worked for Dell, whose IdeaStorm website resulted in a few concrete product developments and, in turn, helped to turn some of the computer-maker’s fiercest critics. One of them, Jeff Jarvis, went from a state of high dudgeon on his blog to praise the company in BusinessWeek.

In my opinion these approaches should probably work fine, as long as there is added value for both sides. If the consumer ideas and suggestions are crap, useless, unreal or simply silly, the companies might soon stop asking consumers in this fashion. It would then be much easier to go back to the old fashioned model of focus group research, where the noise to signal ratio is much better.

On the other hand, there should be some real improvements/products/ideas coming out of these approaches, making the whole outcome visible to the participating audience, showing them that their little contribution did infact change the way these companies go to market (even if the resulting outcomes were not your own idea, you would appreciate the effort made by the company).

Otherwise we’ll start having similar symptons as you have in German elections nowadays. You feel like your vote is too small to make a difference – and heck, no matter what people vote for, it doesn’t feel like things change much anyway. So why bother.

Social Media




Social Media
Xing
Foursquare
flickr Fotos
last.fm
Twitter
Delicious Bookmarks
YouTube
Vanille Shop
Pinterest

Blogs:
Netzfischer
ClipsFun
Tippblogger
Urlaubsnotizen
Vanille Shop Blog
Advertising
TwitPic Photos
Feeds
Atom | RSS | Comments

  Subscribe



re:publica 12
My Photos
www.flickr.com