The New Social Media Landscape; Welcome to Somalia
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Transcript of The New Social Media Landscape; Welcome to Somalia
The New Social Media Landscape--Welcome to Somalia. Enjoy your stay.
February 2014
Who I Am
Agenda
1. How We Got Here2. How Brands Work3. Why People Like Brands4. The New Customer Journey5. What Markets Look Like Now6. Social Media Strategy for the New World
Once Upon a Time, Big Media Ruled
And You knew how to reach your buyers
Then, the Web came
And it was easier to create your own content
And People Changed their habits
“This is a very noisy world.”
Agenda
1. How We Got Here2. How Brands Work3. Why People Like Brands4. The New Customer Journey5. What Markets Look Like Now6. Social Media Strategy for the New World
What’s a brand?“A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. If the consumer (whether it’s a business, a buyer, a voter or a donor) doesn’t pay a premium, make a selection or spread the word, then no brand value exists for that consumer.“
--Seth Godin
“A brand is the sum of the good, the bad, the ugly, and the off-strategy. It is defined by your best product as well as your worst product. It is defined by award-winning advertising as well as by the god-awful ads that somehow slipped through the cracks, got approved, and, not surprisingly, sank into oblivion. It is defined by the accomplishments of your best employee– the shining star in the company who can do no wrong– as well as by the mishaps of the worst hire that you ever made. It is also defined by your receptionist and the music your customers are subjected to when they are placed on hold. For every grand and finely worded public statement by the CEO, the brand is also defined by derisory consumer comments overheard in the hallway or in a chat room on the Internet. Brands are sponges for content, for images, for fleeting feelings. They become psychological concepts held in the minds of the public, where they may stay forever. As such, you can’t entirely control a brand. At best you can only guide and influence it.”
– Scott Bedbury
Brands are made of data points
• Your brand is a sponge• The sponge fills up with data points– Can be true or false– Can be from personal experience, legit sources or
rumor– The most recent ten data points define the brand
for you• There are more data points out there than
ever before, but most are ignored
Three Types of Messages
• Research: Investigation into and study of materials and sources in order to establish facts and reach new conclusions
• Advertising: Paid communication intended to encourage purchase
• Word-of-Mouth: Passing of information from person to person– Friends– Authorities
What We’re Talking AboutOld World New World
Research • Phone Book• Sears Catalog
• Google • Websites
Advertising • Prime Time TV• Radio• Print• Outdoor
• Search• Digital Display• Digital Banner• Native
Word-of-Mouth • Uncontrollable• Unmeasurable
• Controllable• Measurable
Recommendations > Advertising
Source: Nielsen, 2012
Percent trusting medium “Completely or Somewhat”
How Supply has Changed
Research
Advertising
Word-of-Mouth
Supply Impact
• Search Engine use up• Company Content up • Catalogs, Phone Book,
Magazines down
• All digital (esp search) up
• TV flat to down• Print down
• Amateur content way up (Yelp, Amazon, Facebook)
• PR flat
• Google is ultimate arbiter of short list
• Need for SEO, constant content creation
• Sales start with search• TV/Radio Ads for
brands, booze, cars• Unlimited supply, falling
prices• Most trusted content is
amateur• Need to leverage word
of ordinary people
Endorsed Impressions Drive 40% Increase in Buying
• People exposed to Starbucks’ brand messages by their friends’ Facebook actions (likes, comments, etc.) are 40% more likely to buy than control group
Source: ComScore, Facebook
Agenda
1. How We Got Here2. How Brands Work3. Why People Like Brands4. The New Customer Journey5. What Markets Look Like Now6. Social Media Strategy for the New World
Why “Like” a Brand?
Social Media is Identity Production
• Danah Boyd and MySpace• You define your own brand with content (data
points)• You are what you like– Jane Austen, Earl Grey Tea, Joslyn Museum– Kendrick Lamar, Coors Light, Cali Taco
• Your brand is a sponge, too
Top Car Brands
Audi
Nissan
Mercedes
Ferrari
BMW
0 2 4 6 8 10 12 14 16 18
7.8
8.7
13.0
13.1
15.6
Nissan
Honda
Toyota
Chevrolet
Ford
0 0.5 1 1.5 2 2.5
0.9
1.1
1.6
1.6
2.0
On FacebookMillion Likes
By SalesYTD October 2013
Source: Fanpagelist.com, GoodCarBadCar.net
Agenda
1. How We Got Here2. How Brands Work3. Why People Like Brands4. The New Customer Journey5. What Markets Look Like Now6. Social Media Strategy for the New World
Sales Start with Search
2. Evaluate
5. Bond
4. Experience
3. Buy1. Need
Source: McKinsey
Sales Start with Search
2. Evaluate
5. Bond
4. Experience
3. Buy1. Need
Source: McKinsey
• Average consumer consumes 10 pieces of information during search
• What does their network say?
Sales Start with Search
2. Evaluate
5. Bond
4. Experience
3. Buy1. Need
Source: McKinsey
• Social Media touches customers after sale (Customer Service, User groups, R&D)
• Customers can evangelize
How do we make a shortlist?
What we already think
about the brand(s)
New Information• Research• Advertising• Word-of-Mouth
Shortlist
• If the brand is not on the shortlist, the brand will not be purchased
• Your job as Marketer is to get onto the shortlist
The Culture Has Changed
• “99% of purchases of a complex product or service begin with a Google Search.”
• “60% of the customer’s buying process is done before having a conversation with a supplier.”
The Culture has Changed
TwitterPinterest
FacebookLinkedIn
Average AmericanMorning TV NewsEvening TV News
Newspaper
0 10 20 30 40 50 60
38
40
40
44
46
51
53
57
Sources: Doubleclick, Pew Internet Project, INMA
Average Age of Selected Medium’s User, 2012
Where We Are Now
• Infinite supply– Supply of content is unlimited– 80% of everything is mediocre
• Less Trust in Old Names– Professional Media trusted less than Amateur Media– Old Media circling drain– Old ad formulas don’t work
• More efficiency in finding what you want– Search is consistently refined, asymptotically approaching ideal/ SEO
losing juice– Search Ads is arms race– Personalization of everything
Rising Importance of Emotion
• Increasingly noisy market; more people trying to press emotional buttons
• Need zero ambiguity around segment and desired emotion– “Make truck drivers feel proud”– “Make new moms feel awe”
• Most effective emotions for sharing: Curiosity, Amazement, Interest, Astonishment, Uncertainty
Plutchik’s Wheel of Emotion
Source: HBR
Agenda
1. How We Got Here2. How Brands Work3. Why People Like Brands4. The New Customer Journey5. What Markets Look Like Now6. Social Media Strategy for the New World
What Is A Media Company?Any property that successfully aggregates an audience through content is a media company.
– David Meerman Scott
So how do we pick?
(Almost) Perfect Competition
• Infinite buyers and sellers • No barriers of entry and exit • Perfect factor mobility • Perfect information • Zero transaction costs • Rational buyers • No externalities • Profit maximization• Homogenous products• Non-increasing returns to scale• Property rights
• De facto perfect competition in many subsegments (news, sports news, stock prices)
• Some differentiation between segments, but fixed time budget
• Potential for Treadmill
Jack Welch was Right
• #1 or #2 in every market you compete in.• Only a few reap benefits; all others are
commodities• Key is to define market appropriately– Not general education news, but news about
Catholic Elementary Schools– Not all swimming pools worldwide, but swimming
pools in our region– Not accounting, accounting for truckers
Agenda
1. How We Got Here2. How Brands Work3. Why People Like Brands4. The New Customer Journey5. What Markets Look Like Now6. Social Media Strategy for the New World
Strategies for (Almost) Perfect Competition
• There are no strategies for perfect competition, but we’re not there yet.
• Two main thrusts– Exploit structural advantages while you still have them
• Customer relationships• Distribution/Gatekeeper relationships• Tie up scarce assets
– Aggressively execute tactically• Build Audience• Build Distribution Channels• Build Content engine• Optimize for Search and Sharing
Low Risk Moves: by Buyer
• B2B Brands: Increase Relevance – Deepen Emotional Benefits– Emphasize Risk Reduction– Avoid mediocre “Thought Leadership.”
• B2C Brands: Deepen the emotional connection – Emphasize emotion– Make your sharers look good– Try new forms (e.g., Lowe’s Fix in Six)
Low Risk Moves: by Positioning
• Incumbent Brands: Maintain Audience, Deepen Emotion– Maintain/Grow Audience– Deepen Emotional Benefits– Maintain segment integrity
• Attacker Brands: Experiment aggressively, own an emotion– Focus on Shareability– Own an emotion– Grow the audience– Try new forms
Lessons from Show Business 1. Be distinctive. Narrow and deep beats big and
general. CNBC v TBS.
2. Be where your audience is. Don’t ask them to use formats or platforms they don’t like.
3. Reformat. When you take your content to a new segment, recut it to suit local needs.
4. Sequels and Franchises work, but only for a while. You will lose the trust of the audience if you milk your ideas too hard.
Lessons from Show Business 5. It’s all about talent. Some people have more star
power than others.
6. Word of mouth matters. You want people telling their friends about how good your stuff is.
7. Scheduling matters. Don’t release your big movie the same day your rival releases their big movie.
8. Storytelling wins. Study everything Pixar does.
Pixar: The Story Spine
1. Once upon a time, _____________________
2. Everyday, _____________________
3. One day, _____________________
4. Because of that, _____________________
5. And Because of that, _____________________
6. Until finally _____________________
7. And ever since that day, _____________________
Pixar: The Story Spine
1. Once upon a time, there was a man called Adam and a woman called Eve who lived in the Garden of Eden.
2. Everyday, they tended the garden, and they were happy in their work.
3. One day, the serpent convinced Eve to eat the forbidden fruit.
4. Because of that, Adam decided to eat it too.5. And Because of that, God got very angry.6. Until finally he kicked them out of the Garden.7. And ever since that day, people like you and me have to
struggle to make a living.
Mamet on Drama
QUESTION:WHAT IS DRAMA?
DRAMA, AGAIN, IS THE QUEST OF THE HERO TO OVERCOME THOSE THINGS WHICH PREVENT HIM FROM ACHIEVING A SPECIFIC, ACUTE GOAL.
--DAVID MAMET
Lessons from Show Business 9. Guest stars can get people to check you out. Borrow
audiences where you can.
10. The money’s in the publishing/syndication. It’s a hit-driven business, so you need a big portfolio.
11. Service the superfans. Star Trek wasn’t for the cool kids.
12. Promote your stars. Don’t be afraid to talk about how good you are.
13. Good artists borrow; Great artists steal. There are no original ideas. Just good execution.
Questions
• How does social media for brands differ from social media for individuals?
• What brands do you use, but not publicly like? What brands do you publicly like but not use?
• How could brands do social media better?– Creighton Admissions?– Lucky Bucket?– Archdiocese of Omaha?