Social Media and Advertising: Ad Club 10/07

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AUDIENCE: Advertising agencies OVERVIEW: How is Social Media changing the advertising industry? How is consumer dialogue impacting outbound marketing? This presentation, co-written by Laura Porto Stockwell of Publicis in the West, and Eric Weaver of Brand Dialogue, covers these massive shifts in commerce, culture, media and advertising.

Transcript of Social Media and Advertising: Ad Club 10/07

Creating digital dialogs, a social media overviewOctober 16, 2007

http://www.youtube.com/watch?v=NLlGopyXT_g

two truths

1: The way we communicate with each other is changing

http://www.youtube.com/watch?v=4nIUcRJX9-o

Ear Eye

The U.S. Audience

• 90 million have participated in online groups• 57 million have read a blog• 50 million have created content online• 44 percent have contributed thoughts and files to the online world• 36 million have downloaded music or video• 33 million have reviewed or rated something• 12 million have created a blog• 6 million use RSS

Source: Pew Internet & American Life

Tweens

Source:IG Trendcentral

• 88 percent have been online in the past month

• 75 percent regularly use a computer

• 38 percent own an MP3 player and 34 percent bought and downloaded a song in the past month

• 31 percent send or receive email on a daily basis

• 29 percent own a cell phone

Millenials

• Will outnumber baby boomers and Gen-X'ers by 2010

• 80 percent use social networking sites

• 76 percent instant message

• 71 percent regularly participate in blogs

• 55 percent visit MySpace daily

• 44 percent use web to compare prices

• 16 percent use podcasts and RSS

•18-to-21-year-olds, Forrester ResearchSource: Pew Internet & American Life

“Reliance and trust in nontraditional sources— meaning everyday people,their friends, their networks, the network they've created around them—hasa much greater influence on their behaviors than traditional advertising.'’

-Jack McKenzie, Millennials Strategy Group

“A safe assumption is that when today’s children and teenagers reachadulthood, they’re not going to be tolerant of media that’s one-way,that’s not interactive.”

-Steve Outing, Senior Editor Poynter Institute for Media Studies

48 percent of younger users say they learn about new entertainment throughcommunity, review and video sharing sites and blogs—only 25 percent say theylearn about new entertainment through television.

-Media Screen

Active Gen X and Trailing Boomers

Source: Universal McCann

• 60 percent instant message

• 54 percent regularly participate in blogs

• 37 percent use web to compare prices

• 19 percent use social networking sites

• 12 percent use RSS

• 9 percent use podcasts

2: The way we communicate with our customers is not changing.

“The Computer as a Communication Device,” Licklider & Taylor, 1968

So how do I start the conversation?

Social media=anything with a feedback loop

About: MeWho: MySpace, Facebook

About: TopicWho: NYTimes.com, Craig’s List

About: BrandWho: Reebok Run Easy,

Pontiac Underground

About: ProductWho: Amazon, Netflix, Match, Yub

7 principles forsocial media design

Empower personalitiesTap motivationEnable feedbackMaster moderationDon’t talk to yourselfGeek outHave integrity

thoughts onthe future

life streaming

bio media

immersive environments

Microsoft Home of the Future, Greg Gilbert, The Seattle Times, 2006

a few examples

MYSPACE.COM - EXAMPLE OF CO-PROMOTION WITHEXPEDIA.COM - EXAMPLE OF UNPAID BLOGGERS

URL:HTTP://WWW.MYSPACE.COM/EXPEDIA

YOUTUBE.COM - EXAMPLES OF CORPORATE DEMO ANDPARODY

CASE-SENSITIVE URL FOR OFFICIAL MICROSOFT DEMO:HTTP://WWW.YOUTUBE.COM/WATCH?V=FlZxuqjJDgk

MICROSOFT SURFACE PARODY:HTTP://WWW.YOUTUBE.COM/WATCH?v=CZrr7AZ9nCY

DEL.ICIO.US

“SOCIAL BOOKMARKING” LETSYOU SHARE YOUR FAVORITE

LINKS AND SITES WITHINTERESTED PARTIES

USEFUL TOOL TO KEEPFAVORITES IN ONE CENTRAL

LOCATION

43THINGS.COM

COMBINES SOCIALNETWORKING WITH

PERSONAL GOAL-SETTING

MAKE YOUR GOALSPUBLIC, GET

CHEERED ON BYOTHERS WITH

SIMILAR GOALS,SHARE SUCCESSES

MEEZ.COM

COMBINES A STANDARDIZED IDENTITY WITH A3D AVATAR

AVATAR CAN BE USED ON MULTIPLE SOCIALNETWORKS - CHANGE IN ONE PLACE,

UPDATES PROFILES ON ALL SITES

TWITTER.COM

MUCH MORE THAN“HERE’S WHAT I’M

DOING RIGHTNOW”

SUBSCRIBE TOTHOUGHT

LEADERES TO GETREAL-TIME

STREAM OF URLs,RELEVANT POSTS,

ANDINSTANTANEOUS

NEWS UPDATES

E.G., MEMBERSINCLUDE TECHEVANGELISTS,WHITE HOUSE

CAMERAMEN, PREXPERTS,

SOLDIERS IN IRAQ,AUTHORS

TWITTERVISION.COM

TUNE INTO ATRULY GLOBAL

CONVERSATION

SEE UPDATES INREAL TIME FROM

PEOPLE ALL OVERTHE WORLD

BE CAREFUL, IT’LLSUCK YOU IN!

FACEBOOK.COM

NEARLY 50% OF MEMBERS ARE NOWOVER AGE 35

THOUSANDS OF PROFESSIONALS INMARKETING, ADVERTISING, PR, INCLUDING

JULIE ROEHM (EX-WALMART), DAVIDKENNY (CEO, DIGITAS), STUART ELLIOTT

(NY TIMES), AND OTHERS AT COCA-COLA,AMEX, P&G, UNILEVER

BIG BRANDS (FORD, TARGET, WAL-MART)EXPERIMENTING WITH GROUP

SPONSORSHIPS

MARKETING 2.0, CONSUMER GENERATEDMEDIA GROUPS ENABLING AMAZING

DIALOGUE

“MADISON AVENUE STAMPEDES ONTOFACEBOOK” (AD AGE)

URL:ADAGE.COM/ARTICLE?ARTICLE_ID=119822

BRIDGEBUILDERS.NING.COM

NEW SOCIALNETWORK FORSEATTLE-AREA

MARKETING ANDADVERTISING PROS

HOPING TO MAKE ITA PLACE WHERE

WE’LL SHARE TIPS,GIGS AND

INTERESTS

JOINT EFFORT BYPUGET SOUND AMA

AND SEATTLE ADCLUB

NOT HIS UNIVERSE ANYMORE:DIRECT MARKETER LESTER WUNDERMAN

MORE THOUGHTS ON WHERE IT’S ALL GOING

Monologue is dying or dead“In the 20th Century, wedid monologue marketing.We did most – if not all –of the talking. And weexpected the consumer tolisten. Now, we’ve movedto a dialogue. Consumerswant to be heard. In fact,they will not tolerate notbeing heard.”

- John Hayes, CMO,American Express

“We are moving fromtechnology push toconsumer pull… frompush marketing to co-creation… from ideamanufacturing toconsumer experiences.”

- Keith Pardy, SVPStrategic Marketing,Nokia

“Agencies are evolving too slowly. They are holding onto the past andtrying to rationalize it.”

- Jerri DeVard, SVP Marketing, Citigroup

“Agencies need to get more integrated, collapsestructures and go digital.”

- Jim Stengel, GMO, P&G

AMC’S “MAD MEN”

MORE THOUGHTS ON WHERE IT’S ALL GOING

Why the big shift?The 50-year-old traffic light is out at the intersection ofCulture, Media and Commerce

Newer audiences less about polish, more about honesty

Traditional limitations of choice (brand/product choices,buying venues, product/pricing data) are gone

Balance of power shifting away from marketersControl the brand? As if.

Customers purchasing based on testimony of other customers, lessbecause of us

And they’re reinterpreting and representing your brand

Massive shifts

Their voices can be asloud as our own

JUSTINE EZARIK AT&T DEBACLE VIRAL

CHEVY TAHOE/APPRENTICE CGM EXPRIMENT

PODCASTERS - DISCUSSING YOUR BRAND?

Why so loud?Because 1) theNet is the firstplace peoplelook, and 2)search lurrrvesconversations!

Massive shifts

SOBERING: The more consumers can find open,honest dialogue about a brand, the more yourfinely-honed message can sound self-serving,inauthentic, and untrustworthy.

Ouch.

What does this mean for clients?As prospective customers become ever more distractedand interrupted, intrusive methods are tuned out

Gains are incremental at best

Security – everyone’s – is often about proving sustainablevalue to the org

Corporate risk aversion runs high

You tend with what you know works

So, new media: should we invest? Where? Who knowswhere this is all going?

Everyone wins

AGENCIES can show innovation, forwardthinking, demo new reach vehicles

CLIENTS can more fully engage markets, havecustomers become advocates, extend brandwithout increasing marketing spend

SNIFFING AROUND

Client management teams will ask…

Should we “be” on MySpace?

Should we open a presence on Second Life?

Do we need a “Facebook strategy?”

What’s this “conversational marketing” stuff?

MOTIVATING THEM TO TRY

Five ways to empower your clientBe their Tony Robbins

Help marketers reposition themselves asthe primary BRIDGE BUILDER between company andcustomer

the CUSTOMER INSIGHTS CHAMPION

Help them use new channels to truly understandcustomer desires, not to merely validate theirexisting strategy

Help them shift from monologue to dialogue

Help them create internal alignment

EMPOWER YOUR CLIENT

Shifting monologue to dialogueKnow the available channels (they change quarterly)

As Pull becomes more interesting, be where yourprospects look for you - SEO important

Dedicate resources to community management

Predetermine your action boundaries

Listen via automated tools

Engage with NEXT customers, not just current ones

ADDLED ADVOCACY DEPARTMENT

“Block my message? Oh no you don’t.”AMA Seminar: “Learn how to get past the filters yourcustomers have deployed.”

Mega fast-food brand: Turning off TiVo fast-forwardfunctionality

Mega beer brand: Tracking down opt-outs throughaffiliated credit bureaus

Are we building relationships yet?

SHAMELESS SELF-INTEREST DEPARTMENT

That’s some tasty Kool-Aid®

June 2007: “The‘Aeropanel’ offersa unique andexcitingadvertisingformat in anuncluttered,relaxed andcomfortableenvironment.”

Yeah…it was.RYANAIR’S NEW AD VENUE

EMPOWER YOUR CLIENT

Create internal alignmentArm marketers with knowledge of trends, case studies

Show examples of low $ investment, high buzz/WOMvalue

Make sure they have brand and message benchmarks tostart with

What are you coming to the party with?

Market needs something to react to before dialogue can begin

Present a strategy to engage customer base withoutpandering to them

No MySpace for MySpace’s sake

RULES OF ENGAGEMENT

Watch the boundariesSet and stick to brand boundaries

When conversation is clearly crossing the line,fearlessly engage detractors in honest dialogue

If talk is within the boundaries, leave it alone!Control issues imply a lack of confidence.

Fear ain’t sexy.

RULES OF ENGAGEMENT

CautionsDO have an authentic presence, but DON’T push messages

DON’T jump in with the same old approach (FB bannerbuys, phony PR blogs, self-interest) – backlash is loud

DON’T underestimate this shift

Make sure you have a dialogue capability

DO use the new channels to increase your own value

DON’T think that everyone necessarily wants a“conversation” with their brands

FUTURESHOCK

What’s in store?

IDENTITY AGGREGATION

Is that really YOU? Are you who you say you are?

REPUTATION AGGREGATION

Others’ public opinions of you and your actions,saved forever and subscribable

ACTIVITY AGGREGATION

Your online behavior, posts, comments, all of it,easily found, forever - and subscribable

ZOOMINFO.COM

AGGREGATINGINFO ABOUT YOU

WITHOUT YOURKNOWLEDGE ANDPRESENTING IT AS

“GOSPEL”

THERE’S A PORNSTAR WITH THE

SAME NAMESHOWING UP INYOUR RESULTS?

NAYMZ.COM

GENERATING AREPUTATION

SCORE ABOUTYOU

A REP SCORE MAYBE HOW WE

CHOOSEBUSINESS

PARTNERS OREMPLOYEES IN

THE FUTURE

PROFILACTIC.COM

AGGREGATINGALL OF YOUR

ONLINE ACTIVITYIN ONE PLACE

SUBSCRIBABLE BYANYONE

VOLUNTARY NOW- COULD BECOME

AUTOMATED

Parting thoughtsExciting, scary, significant time to be in thisbusiness!

Witnessing a massive social transformation andempowerment

More venues and tools to communicate value than ever

There are no experts yet

Lots of opportunities for innovative thinking

Inertia’s a powerful thing.Status quo = go nowhere.

Dip your clients’ toes In - the water’s fine.

LAURA PORTO STOCKWELL

VP, INTERACTIVE STRATEGIST

PUBLICIS IN THE WEST

http://digitaldialogs.com

ERIC WEAVER

PRESIDENT

BRAND DIALOGUE

http://branddialogue.com