Capitalizing on the Incredibly Shrinking Marcom Expense Line
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The document discusses how social media marketing strategies can be more effective by spending and talking less. It notes that most marketing budgets focus on traditional channels, but digital channels can provide savings. Examples are given of how companies like Starbucks, Wine Library, and Yelp have successfully used approaches like Twitter and Facebook to reach customers at low costs. The key is shifting from always trying to engage customers in conversations to using tools and platforms to provide value and shareable content.
Capitalizing on the Incredibly Shrinking Marcom Expense Line
- 1. Capitalizing on the Incredibly Shrinking Marcom Expense Line Denis Hancock July 26-28, 2010 Park Hyatt Aviara Resort Carlsbad, CA
- 2. Social media marketing strategies are often narrowly focused Where most of the money is Customers Where most Co-creators social media marketing Influencers strategies are focused © 2011 Moxie Insight. All Rights Reserved. 2
- 3. Some guidelines for reaching everyone else more effectively Spend less. Talk less. © 2011 Moxie Insight. All Rights Reserved. 3
- 4. Social media marketing critics and advocates both love these stats Online spend lags activity Source: Ogilvy The social component is small, and growing slowly Source: MediaPost.com © 2011 Moxie Insight. All Rights Reserved. 4
- 5. The problem is the metric, not the activity SocialMedia Cost of sending a tweet: $0 Cost of creating a Facebook event: $0 Cost of putting a video on YouTube: $0 Ability to reach customers for free*: Priceless © 2011 Moxie Insight. All Rights Reserved. 5
- 6. Marketing is going through a structural change Current marketing budget New marketing budget Savings! Traditional channels Traditional channels Digital Digital © 2011 Moxie Insight. All Rights Reserved. 6
- 7. A select few agencies have been thinking this way “I want to be the agency that ruined “Their view was it for every other always, if the idea is agency in the great enough, in a world” world that is – Alex Bogusky, intensely formerly of Crispin connected… the idea Porter + Bogusky will run wild through the population without us having to pay for media.” – Andy Macaulay, chairman of Zig Source: Susan Krashinsky, “Advertising whiz Bogusky takes © 2011 Moxie Insight. All Rights Reserved. 7 his leave”, Globe & Mail, 7/2/10
- 8. Sites like Facebook lower the need for “creative genius” “It does raise huge questions about, you know, could you in the future have half the marketing budget and do it differently.” —Richard Musson, VP of Marketing for Labatt Breweries © 2011 Moxie Insight. All Rights Reserved. 8
- 9. New platforms are creating new opportunities “The real opportunity isn’t for mayors – that’s limited and short sighted. Knowing that the top 5% of customers generate the majority of revenue, it’s a whole new loyalty platform. And it’s a lot cheaper than Aeroplan.” – Phil Barrett, VP of digital and mobile at BStreet © 2011 Moxie Insight. All Rights Reserved. 9
- 10. The key driver: “ambient intimacy” 150 used to be a lot of connections. Now it’s not. © 2011 Moxie Insight. All Rights Reserved. 10
- 11. But there are other key differences to consider as well Traditional Media Social Media Cost Expensive Free (or very cheap) Choice for customer Forced Opt-in Connection with customer Indirect Direct Impact on intended customer Generally negative Generally positive experience Ability to “go viral” Difficult Easier Knowledge about who’s receiving—and sharing—the Poor Good (and improving) message © 2011 Moxie Insight. All Rights Reserved. 11
- 12. Starbucks tapped into this opportunity early 200,000 + accepted event invite on Facebook 400,000 + viewed YouTube video 379 blog posts tied back to it Viral buzz increased 26% overall © 2011 Moxie Insight. All Rights Reserved. 12
- 13. The potential payoffs for Starbucks are getting bigger and bigger © 2011 Moxie Insight. All Rights Reserved. 13
- 14. @garyvee drives Wine Library’s ROI in Twitter Direct mail campaign: $7,500 200 new customers Billboard ad: $7,500 300 new customers Tweet offering free shipping 1,800 new customers Source: Tanya Battalas, “Companies take on Twitter”, New Jersey Times, June 2009 © 2011 Moxie Insight. All Rights Reserved. 14
- 15. Yelp: Great news for great service providers © 2011 Moxie Insight. All Rights Reserved. 15
- 16. How to think about reaching everyone else more effectively Spend less. Talk less. © 2011 Moxie Insight. All Rights Reserved. 16
- 17. New perceptions around media are evolving Broadcasting = bad Conversations = good © 2011 Moxie Insight. All Rights Reserved. 17
- 18. The “problem” is often represented something like this Source: “Changing context,” Nokia © 2011 Moxie Insight. All Rights Reserved. 18
- 19. But there’s a problem with the notion of the “problem” Social media enthusiast Your customer vs. © 2011 Moxie Insight. All Rights Reserved. 19
- 20. Too many people are feeling a lot like this LEARNING & PROBLEM FAMILIARIZATIONRESOLUTION EVALUATION INITIAL USE EXPERIENCES INITIATING FULFILLMENT CONSIDERING NEEDS ORDER ACTIVITIES IDENTIFYING ALTERNATIVES DECISION PROCESS EVALUATING ALTERNATIVES ADDITIONAL SALES INFORMATION INITIAL CONTACT ASSESSMENT © 2011 Moxie Insight. All Rights Reserved. 20
- 21. Asking them to “join in your conversation” can make it that much worse Hey consumer – talk to us! We’re Brand n Brand 1 listening! Brand 5 Brand 2 Brand 3 Brand 4 © 2011 Moxie Insight. All Rights Reserved. 21
- 22. But there is something else you can do In the social media world, simple broadcasting strategies are prevalent – and effective. © 2011 Moxie Insight. All Rights Reserved. 22
- 23. Twitter points us in this direction © 2011 Moxie Insight. All Rights Reserved. 23
- 24. A unique growth strategy, led by weak tie connections Strong Ties Weak Ties 24 | © 2010 Moxie Insight. All Rights Reserved.
- 25. Twitter is “few to many” rather than “many to many” Harvard Study: 10% of Twitter users generate 90% of the content. “This implies that Twitter's resembles more of a one- way, one-to-many publishing service than a two-way, peer-to-peer communication network.” Source: Twitter hype punctured by study”, BBC News, June 9 th 2009. www.bbc.co.uk. 25 | © 2010 Moxie Insight. All Rights Reserved.
- 26. Twitter users are more likely to engage in commerce 26 | © 2010 Moxie Insight. All Rights Reserved.
- 27. This made Twitter much more different from Facebook than many realize Facebook is a social network. Twitter is a media/marketing vehicle disguised as a social network. Big difference. And if you don't think it's changing the way information is dispersed, for good and bad, you're insane. – Bill Simmons ESPN’s “The Sports Guy” © 2011 Moxie Insight. All Rights Reserved. 27
- 28. @woot: Buy our stuff © 2011 Moxie Insight. All Rights Reserved. 28
- 29. @zappos: If you have a question, talk to someone else © 2011 Moxie Insight. All Rights Reserved. 29
- 30. @mashable: broadcasting the social media guide © 2011 Moxie Insight. All Rights Reserved. 30
- 31. Facebook is subtly allowing ambient networks to grow Top versus Recent news Fan versus Like © 2011 Moxie Insight. All Rights Reserved. 31
- 32. Companies are often getting advice like this Don’t split the conversation stream between the organization and “just fans.” You want fans to see each other communicating online. It’s about fostering a community. To split your updates from fans signals that: You are controlling the message Organizational message delivery is the primary reason for the page; and The organization doesn’t value fan content or participation as highly as its own Source: “Facebook fan page best practices”, Livingston Buzz, November 2 nd 2009 © 2011 Moxie Insight. All Rights Reserved. 32
- 33. Follow it and you often get results like this © 2011 Moxie Insight. All Rights Reserved. 33
- 34. Aren’t these a little better? © 2011 Moxie Insight. All Rights Reserved. 34
- 35. What Facebook fans say they want Note: consumers were allowed to answer “yes” to more than one response. Source: Morpace Inc. study, as published on RetailCustomerExperience.com (April 13 th 2010) © 2011 Moxie Insight. All Rights Reserved. 35
- 36. The difference between “fan” and “like” is important © 2011 Moxie Insight. All Rights Reserved. 36
- 37. It connects to a new opportunity, enabled by social media Suspect Prospect … but can you use social media to create Customer “passive” or “occasional” advocates”? Regular Advocate You know about the importance of these folks… © 2011 Moxie Insight. All Rights Reserved. 37
- 38. Using “passive advocates” to win the tug of war Good Bad Brand They She She She like you loves hates dislikes you you you © 2011 Moxie Insight. All Rights Reserved. 38
- 39. Shifting objectives: From conversations to impact Instead of always trying to engage customers in conversations, use new tools and platforms to: Give people something they want Give people something they want to share © 2011 Moxie Insight. All Rights Reserved. 39
- 40. Stickybits.com: A new case of conversations being sub-optimal © 2011 Moxie Insight. All Rights Reserved. 40
- 41. Groupon: Cool, cheap, local experiences (if enough people buy in) © 2011 Moxie Insight. All Rights Reserved. 41
- 42. Foursquare: Connection without conversation (and cheap, cheap rewards) © 2011 Moxie Insight. All Rights Reserved. 42
- 43. One more thing… Think Quirky. © 2011 Moxie Insight. All Rights Reserved. 43
- 44. Quirky: Cost effective innovation and marketing processes collide © 2011 Moxie Insight. All Rights Reserved. 44
- 45. Key takeaways Spend less. Talk less. Think Quirky. © 2011 Moxie Insight. All Rights Reserved. 45
- 46. Denis Hancock Director of Marketing Insight dhancock@nGenera.com www.denisbhancock.com Twitter ID: @denisbhancock 416-863-8848