ASMI Keynote
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The document discusses the impact of social media on marketing. Some key points: - Social media has become mainstream and consumers are openly sharing experiences and influencing others. This requires new marketing tools and metrics. - Consumers increasingly trust peer recommendations over traditional advertising and are actively engaging with brands on social media platforms like blogs, reviews and social networks. - Marketers need to shift from one-way "telling and selling" to building relationships and conversations in order to be relevant to today's consumers. Measuring engagement rather than just reach and awareness is important.
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ASMI Keynote
- 1. The Impact of Social Media on Marketing Brian Cavoli October 11, 2007
- 2. Welcome the World of Influence 2.0 Media influence is waning Communications moving from one-way marketing to a consumer dialog Social media enables broader consumer connections Consumers are openly sharing their experiences, need and motivations Influencing the opinions of millions – positively and negatively Principles of the Social Media Impact on Business
- 3. Social Media is Mainstream It’s a Lot More Than Blogs Requires New Tools and Metrics
- 4. Social Media is Mainstream It’s a Lot More Than Blogs Requires New Tools and Metrics
- 5. 40% watch less TV now than two years ago (Piper Jaffrey) Trust in ads plunge 41% in the last 3 years (Insight Express) 92% cite WOM as a best source for ideas on new products (GfK NOP) More consumers trust discussion boards than ads in any media (Forrester) The Internet Takes Over "The Internet is becoming consumers' primary entertainment source. The TV is increasingly taking a back seat to the cell phone and the personal computer” - IBM Media & Entertainment Strategy and Change
- 6. Consumers Trust Others – Even if They Don’t Know Them
- 7. Social Media Sites Lead Time Spent “ The popularity of social networking is not expected to wane in the near future. This is a phenomenon we’re seeing not only in the U.S., but also around the world.” - Peter Daboll, President and CEO comScore Sites based on social media
- 8. Social Components Drive Business Results 77% Online shoppers read consumer product reviews and ratings before making a purchase (Jupiter) $2 billion Online travel purchases a year are affected by social media (Compete) 24% Online car shoppers have changed their mind about a vehicle purchase based on social media (Compete) 51% Journalists read blogs for story ideas (Columbia Univ) More Influential BoingBoing has more inbound links than NPR and BusinessWeek (Technorati)
- 9. Social Media Also Influences B2B Purchases IT buyers trust social media more than any other content source More informed purchase decisions Objective feedback on products More in-depth research 80% of business and IT professionals read blogs 53% said blog content impacts their work-related purchasing decisions Source: PJA IT Social Media Index, 2007 IT Buyers Place the Greatest Trust in Social Media Source: Universal McCann/KnowledgeStorm, 2007
- 10. Social Components Drive Business Results Mentos sales jumped 15% after the Diet Coke Mentos Experiment videos on YouTube Customers that sort the list of products by customer ratings spend 41% more Emails that feature customer review content receive 50% higher clickthrough rates Warner Bros attributes 25% of the March of the Penguins $100 million revenue to a “Mommy podcast”
- 11. “ for seizing the reins of the global media, for founding and framing the new digital democracy, for working for nothing and beating the pros at their own game”
- 12. “ marketing world leaders declared that it's time to give up control and accept that consumers now control their brands.”
- 13. 4 Reasons why online will transform traditional modes of advertising People don’t like ads But they crave information The consumer is in control. No, really Diversion of ad budgets Pay per view Welcome to the Post Advertising Age “… display advertising's main role will be to quickly, straightforwardly, informatively draw you into a broader brand experience.” - Bob Garfield in Advertising Age
- 14. Marketers are Changing Their Tune P&G’s CMO Jim Stengle calls for radical change at 2007 4A’s media conference “ What we really need is a mind-set shift, a mind-set shift that will make us relevant to today's consumers, a mind-set shift from 'telling and selling' to building relationships”
- 15. Building Brands People Want to Talk About Beam Brands refocuses $100M budget toward a singular goal – to drive word-of-mouth "Advertising is not dead; it's really important, but it's more about fanning the flames of word-of-mouth than anything else." - Beam CMO Rory Finlay
- 16. Social Media is Mainstream It’s a Lot More Than Blogs Requires New Tools and Metrics
- 17. Blogs are Important… But They are Just the Beginning Technorati reports that there are over 100 million blogs 1.6 million posts per day “ Authoritative blogs” outnumber any other traditional medium 30,488 high/very high authority blogs 13,000 radio stations 9,000 TV stations 17,000 magazines Cumulative Number of Blogs (Source: Technorati)
- 18. Social Networks Offer Blogging and a Whole Lot More Easy to set up and connect with many people Feature blogs, comments, discussion board Easily enables people to create interest groups Doesn’t require a big commitment to keep current Users motivated to build their networks by sharing experiences and interests
- 19. … And Their Traffic is Exploding 2 of every 3 people online visit a social networking site (Compete) 70% of 15- to 34-year-olds utilize social-networking sites (Never Ending Friending) More than half of MySpace visitors are over 35+ (Comscore) “ The shift in demographics reflects the ’mainstream effect’. It's really a broadening of the user base, rather than one user base supplanting the other" - ComScore on the changing Myspace audience Social Network Users MySpace 200,000,000 Orkut 68,000,000 Friendster 50,000,000 Facebook 40,000,000 Classmates 40,000,000 Xanga 40,000,000
- 20. Creating New Marketing Opportunities … Beyond the Banner Ad
- 22. Brands Enhancing the Community Experience
- 23. Making it Easy to Spread the Brand Virally
- 24. Consumers Are Identifying Themselves With Brands
- 25. “ Never Ending Friending” 70% of the value from social networks is from the “momentum effect” Consumers using brand elements on their profile
- 26. Television Decreases for Social Networking Users
- 27. Using Video Engage Consumers
- 28. Marketer are Connecting with Consumers on Twitter
- 29. Social Media is Mainstream Social Media is a Lot More Than Blogs Requires New Tools and Metrics
- 30. Traditional Marketing Tools Don’t Work Here Influence 2.0 creates a complex marketing environment Traditional metrics frail to capture the whole story Measure the influences on the conditions that can result in sales Reach/frequency Click throughs, page views Sales and ROI Sentiment Brand affinity Power to influence others “ Ditch the marketing tactics – this is about building trusting relationships. Marketers will fail of they approach social media as traditional marketing channel” - Forrester Research Traditional metrics measure: Engagement metrics measure:
- 31. Measuring Engagement Requires New Tools Source: Forrester Research Interaction eCommerce Social media Platforms Inquiries, online sales Qty/freq. of reviews, posts, comments Intimacy Market surveys Brand Monitoring Sentiment tracking Consumer opinions Influence Market surveys Brand Monitoring Satisfaction ratings Brand affinity Viral content High profile blog posts Involvement Web analytics Site visits, time spent, page views, etc. How to Track What to Track
- 32. Measure the Influences on Your Brand Gain business insights from both online consumer discussions and traditional media coverage Natural Language Processing Traditional Media Television Radio Newspapers Magazines Social Media Blogs Social networks Discussion boards Product review sites
- 33. Next-Gen Video Wars: Blu-ray vs. HD DVD How do consumer feel about the battle between these competing high-def video formats? vs.
- 34. Equal Discussion Among Early Adopters Volume of posts was balanced between the formats Small percentage of sites discussed specific models of players 60% of conversations on 44 sites, representing early adopters Videophiles: creating a total video experience Gamers: benefits / disadvantages of the consoles, games and equipment Format Discussion Volume Speaker Analysis Volume
- 35. HD DVD Discussion is More Positive HD DVD has greater percentage of positive posts Blu-ray has over 50% more negative posts Positive HD DVD Discussions Outweigh Blu-ray 32.9% to 23.5%
- 36. HD DVD Earns More Positive Mentions Launch of PS3 drove significant discussion 2.5 times more posts impressed with HD DVD 70% more posts discussed HD DVD advantages Only 7.5% mentioned delaying purchase until standards emerge Post Authors Impressed with HD DVD, Cite its Advantages # of posts
- 37. Top Blu-ray Negatives: “Dislike” and PS3 Key Blu-ray features not being discussed Detractors doubt Sony’s innovation credibility Many note other failed Sony innovations Many felt Sony is an arrogant company Integration with PS3 is a negative Object to forced adoption Microsoft praised for offering HD DVD option to Xbox 360 “ Cost” and “Format Wars” Aren’t Top Negatives
- 39. Thought Starters for Sony and Blu-ray Let other companies be spokespeople for Blu-ray Movie studios, reatilers and technology companies support the format Engage the detractors Launch a discussion board and invite detractors, give them answers to their questions, concerns, objections Issue a disc that is a showcase for “next generation interactivity” Discussion reveals this term isn’t understood Talk benefits, not features Little discussion of 30 MG capacity - doubts that the capacity is necessary
- 40. Measuring Engagement with Cymfony Brian Cavoli [email_address] 617-673-6023