Dave Balter on Social Marketing and Word of Mouth, April 2011

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Dave Balter, CEO of BzzAgent, Spring 2011 Speech. http://www.about.me/davebalter

Transcript of Dave Balter on Social Marketing and Word of Mouth, April 2011

Advocacyin a Social World

#BzzAgent@davebalter

#BzzAgent@davebalter

Man Groomer

The Evolution of Word of Mouth

A long, long, long time…

The last decade…

• Outposts• New connections• Always on

• Real-time• Your Weak Ties • Scale

Social Marketing

Social Media has overtaken porn as the #1 media on the Web

Coca Cola spent roughly

on advertising last year$2.44 billion

“While TV is still an important medium for promoting our brands, many of our recent advertising campaigns and promotions have also utilized online facilities such as

Facebook and YouTube more”

-6.6% = $121M

The Social cycle

1. The experiences

2. The platforms

3. The advocates

The EXPERIENCES

Viral COEFFICIENT

Threewords.meGod.com

Satan.com

100,000 to 4,000,000users in 15 months

The PLATFORMS

X

X

X

July 2008

20

2005 2006 2007 NOV. 2009 DEC. 2009 APRIL 2010

No personal information will be available

…limit the information displayed

…unless you alter your privacy settings.

The default privacy setting is set to “everyone.”

Therefore do nothave privacy settings.

Access toGeneral Information about you.

Facebook PRIVACY POLICY

The ADVOCATES

The Tipping Point + The Social Media Network

connectorconnects people to

each other

mavenconnects people through

sharing knowledge

salesmanuses knowledge to engage

and persuade

The Tipping Point + The Social Media Network

connectorconnects people to

each other

mavenconnects people through

sharing knowledge

salesmanuses knowledge to engage

and persuade

Tipping Point was “Influence 1.0”

Influence 2.0“Topic” StateBehavior is Not StaticTracked By Our Social Behaviors

Source: Jakob Nielsen, Participation Inequality: Encouraging More Users to Participate

1% CREATORS

9% EDITORS

90% AUDIENCE

Source: Jakob Nielsen, Participation Inequality: Encouraging More Users to Participate

1% CREATORS

9% EDITORS

90% AUDIENCE

Heed the 1% Rule

Over 50% of all the Wikipedia

edits are done by just .7% of the

users … 524 people.

Over 50% of all the Wikipedia

edits are done by just .7% of the

users … 524 people.

167,113 of Amazon’s book reviews were

contributed by just a few “top-100″ reviewers.

167,113 of Amazon’s book reviews were

contributed by just a few “top-100″ reviewers.

25M users of Facebook Causes App…185,000

donations: .7%

25M users of Facebook Causes App…185,000

donations: .7%

4 Methods forCREATING ADVOCATES

METHOD #1:

Generate Status

“I just looked at my followers number and said to myself‘where did all these people come from?’ ”

Welcome to the Social Media Boy Scouts

Farmville

Farmville

Farmville

North of 80 Million Users

17 Million Daily Active Users

North of 80 Million Users

17 Million Daily Active Users

METHOD #2:

Offer Incredible Value

METHOD #3:

Make it Scarce

PATTY: BONELESS PORK (PORK, WATER, SALT, DEXTROSE, CITRIC ACID, BHA, TBHQ).

SAUCE: WATER, HIGH FRUCTOSE CORN SYRUP, TOMATO PASTE, DISTILLED VINEGAR, MOLASSES, NATURAL SMOKE FLAVOR, MODIFIED FOOD STARCH, SALT, SUGAR, SOYBEAN OIL, SPICES, ONION*, MUSTARD FLOUR, GARLIC *, XANTHAN GUM, CARAMEL COLOR, SODIUM BENZOATE (PRESERVATIVE), NATURAL FLAVOR (VEGETABLE SOURCE), CORN OIL. *DEHYDRATED PICKLE SLICES

BUN: FLOUR (WHEAT FLOUR BLEACHED AND ENRICHED WITH THIAMINE, RIBOFLAVIN, NIACIN, IRON, FOLIC ACID, MALTED BARLEY FLOUR), WATER, HIGH FRUCTOSE CORN SYRUP, YEAST, VEGETABLE OIL (PARTIALLY HYDROGENATED SOYBEAN OIL, COTTONSEED OIL). CONTAINS 2 PERCENT OR LESS OF DEXTROSE, FUMARIC ACID, CALCIUM SULPHATE, SALT, ACETIC ACID, SOY FLOUR, MONOCALCIUM PHOSPHATE, AMMONIUM SULPHATE, CORNSTARCH, FUNGAL PROTEASE, NATURAL CULTURE, AMMONIUM CHLORIDE, ASCORBIC ACID, AZODICARBOMIDE, MONO- AND DIGLYCERIDES, PROPIONIC ACID, PHOSPHORIC ACID, CORN FLOUR, CALCIUM PEROXIDE, CALCIUM PROPIONATE, DICETYL TARTARIC ACID ESTERS OF MONO- AND DIGLYCERIDES, ETHOXYLATED MONO- AND DIGLYCERIDES.

What Am I Eating?

McRib Nutritonal Info 490 calories, 220 calories from fat, 25 g fat, 8 g saturated fat, 75 mg cholesterol, 1040 mb sodium, 44 g carbohydrates, 2 g fiber,

24 g protein, 11 g sugars.

What Am I Eating?

METHOD #4:

Provide Exclusivity(or Access)

What’s Happening On Quora?

Facebook co-founder Dustin Moskovitzoffers his opinion of the movie The Social Network.

Google Images product manager Nate Smithexplains how color image search works.

Foursquare's head of business developmenttalks about what it's like to work for founder Dennis Crowley..

AOL co-founder Steve Caseanswers how much it cost to mail everyone those CDs back in the 1990s.

$121,000,000

BzzAgent Proprietary & Confidential 2011

Statistical Analysis of marketing efforts

BzzAgent Proprietary & Confidential 2011

Statistical Analysis of marketing efforts

BzzAgent Proprietary & Confidential 2011

Statistical Analysis of marketing efforts

Shopper marketing data can be fed into the development and optimization of social media programs.

Social media the new “starting point” for consumer engagement

Traditional media informs and reminds post social dialogue

Measure social media spend against loyalty card behaviors

Use to develop effectiveshopper marketing programs

SOCIAL MEDIA & PEER INFLUENCE

RADIO PRINT

TV

OUTDOOR

DIGITAL

MAGAZINE

MARKETING PROGRAMS

Ty’s Ten (WOM) Tips

1. Reasonable Price

2. Keep it Secretive

3. Surprise People

4. Limit Production

5. Avoid Large Chains

6. Simplicity

7. Personalization

8. Variety

9. Retirements

10. Risk

Thank You

About.me/davebalterAbout.me/davebalter