WHAT’S THE VALUE OF AN IDEA IN THE ERA OF SOCIAL MEDIA?

2010 - Laurent Françoishttp://twitter.com/lilzeon

About meHead of Marketing & Development @Express Roularta Services (2010-now) �

Head of 360° Digital Influence practice @ Ogilvy (until 2010)Blogger & cofounder of Tout Ca Magazine (http://citizenl.net & http://www.tout-ca.com ) �

ESCP Europe (MEB) �

Sciences Po

UCLA

to get in touch:

enzo.francois@gmail.com

http://twitter.com/lilzeon

http://pearltrees.com/lilzeon

Few things on the world

we live in

Liquid Modernity (Zygmunt Bauman)�

• End of « solid institutions » like churches, classic pyramidal families

–> a need for new ways to get solutions

• privatization of ambivalence

–> tests are made by the individuals themselves, who directly « feel » & experience global issues

• Uncertainty everywhere

–> as there's no longer absolute truth, a need to get reinsurance

• Nomadism everywhere

–> in life (collapse of long-term wedding, disruptive work-life...) �

“Luckily, with these changes has come an increasing openness to doing new things. Online dating has grown so much in part as a response to these societal changes, having become the third most important way we meet our significant

others, even though it didn’t even exist 15 years ago.” »Greg Blatt, chief executive

of Match.com

Attention economy

• Less & less time to solve more & more problems

• distance matters less than time

• price is not only dependent on the transformation process (input / process / output) but on attention-based principles

"...in an information-rich world, the wealth of

information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the

overabundance of information sources that might consume it"

(Simon 1971, p. 40-41) �What the most important asset

is: access to relevant information” Herbert Simon

In this environment, good ideas are threatened by an environment of constraints and by personal lack of time…

Environment of risks• Uncertainty everywhere• Purchasing power in disgrace

Personal strategies • Lack of overal knowledge• Time constraint

“Americans conducted 14.8 billion core searches in April 2009“comScore

…which tries to be solved through the internet.It may be a massive online problem solving system…

“of the customers who shop for high-end merchandise online, 78 percent of them did so in order to find the best price while nearly as many, 77 percent, did so to compare brands”BrandWeek, January 2010

…but it’s much more than a

super-computer

It’s not only a magic generation issue.It’s the economics, society, technics, ethics, needs, ideas,

entrepreneurs, history, whatever

(stupid)�

…as if we were amplified and if our thoughts, feelings and actions were opportunities of conversations…

So what could be the value of an idea in the

era of Social Media?

Value: an ambigous notion

• Basically:– Value is dependent on

your need– Value is dependent on the

way you express it– Value is highly dependent

on the context– Value is highly dependant

on the time– Value is something highly

personalized

« a fair return or equivalent in goods, services, or money for something

exchanged

the monetary worth of something : market price

relative worth, utility, or importance <a good value at the price> <the value

of base : a numerical quantity that is

assigned or is determined by calculation or measurement <let x

take on positive values> <a value for

the age of the earth>something (as a principle or quality)

intrinsically valuable or desirable <sought material values instead of

human values — W. H. Jones>

Merriam-Webster

So value is only SOMETIMES directly linked to money

The state of ROI in Social Media Marketing

• TV influenced the way marketing metrics are shaped– Audience based

– Static based

• A strong debate btw advertisers, media agencies, social media players & at the end: brands

“Say an advertiser wants to buy 20

gross rating points. When network television audiences were larger, this

might be accomplished by buying one

30-second spot. Today, buying those same 20 gross rating points might

require buying multiple spots, which

means the advertiser is using up more of a finite resource — the amount of

airtime on the broadcast networks. Scarcity heightens demand, and

heightened demand raises prices.

That’s how the marketplace justifies its

price increases. Even if the logic is

cock-eyed —there are plenty of other ways to reach people besides TV

commercials, after all — it creates a rationale the marketplace can deal

with”

Catharine P. Taylor

Wrong principles

• People are more & more empowered

• They're not passive anymore in the way TV could consider it

• People are more & more linked through interests than through their ages or sex– Because they look for

information– Because they're liquid

• People can consolidate horizontal clusters against vertical communication– Nestlé bad buzz

“The basis for this tension between

operational issues and constraining analytic tool choice is often that analyst

think that they are done when the model

is "right". Many analysts seem to believe that they can declare victory

and pat themselves on the back when the model is accurate, statistically valid,

highly predictive etc. They will often

talk about all sorts of statistical measures that "prove" the model is a

good one. Yet, in fact, the only results

that matter are business results. If the model is accurate but impractical to

implement then it adds no business value and should, therefore, be

considered a bad model. ”

James Taylor

Value lies in communities of interests

Why communities matter to value an idea

• The value of an idea lies in the using of it » Thomas Edison

• People are now both the “audience”, the stakeholders and the amplifiers of the ideas

• The bone of contention:– Trying to get metrics from human

interactions & conversations

– Trying to quantify what is highly complicated to do

« It can only begin to have value

when it’s an idea + execution. Till

then, it’s still just an idea. When you combine an idea + great team +

execution, it can start to have potential but the real value remains

zero, until it gets tested/evaluated by

real customers. That’s when you can start to estimate the real potential of

“the whole package” again not the

idea alone. »Valto Loikkanen

Uniqlo understood it!

« Statusphere »

Trendwatching

Entering social metrics

• The world is neither flat in Social Media norperfectly equal:– Mapping communities is

key to understandingwhich public are outreached by individuals

– It’s then important to measure the importance of your idea-relatedtopics in these groups

« blackboxing is the way

scientific and technical work

is made invisible by its own

success. When a machine

runs efficiently, when a

matter of fact is settled, one

need focus only on its inputs

and outputs and not on its

internal complexity. Thus,

paradoxically, the more

science and technology

succeed, the more opaque

and obscure they become. »

Bruno Latour

• An example of modelization of communities

Social metrics should not bestatic

• Conversations amongpeople are dynamic– The fuel of this dynamic

is the relevance people give to a topic or another

– It’s utterly important to position your idea in thismoving system

”It's a process, not an event.

Dating is a process. So is

losing weight, being a public

company and building a brand.

On the other hand, putting up a

trade show booth is an event.

So are going public and having

surgery.

Events are easier to manage,

pay for and get excited about.

Processes build results for the

long haul”

Seth Godin

• Therefore ideas should beable to touch people depending on the ties they’re ready to manage with them– Strong ties (your close

buddies)– Weak ties (your groups of

interests)– Temporary ties (when people

are over-active to reach a goal)

• At the end, we can onlymanage 150 ties accordingto Paul Adams (UX Google lead)

“We care about the direct relationship with the "one" but count

on the effect of the one passing along to their many either explicitly

or more subtly”John Bell, MD & ECD 360°Digital

Influence, Ogilvy

Metrics me

Ogilvy 360o Digital Influence Conversation Impact™Model: Summary

• Allows cross-channel / media mix & campaign optimization

• Evaluates influencer and end user campaign impact

• Segments metrics around key marcom funnel points:

• Reach & Positioning

• Audience exposed to message

• Brand positioning

• Preference

• Audience preference for brand

• Action

• Sales & other action

• Examples on the right �

Campaign 1. Influencer Impact (Preference)

Share of Positive Voice

Campaign 2. End User Impact (Positioning/Preference)

In-Category Awareness, Purchase Intent, Sentiment

Conversation Impact Dashboard - Overview

Metric / Funnel Goal > Data Aware-ness

Considera-tion

Prefer-ence Action Loyalty

Reach/Positioning

• UMV – blogs, site, microsite, applications, other, total # / % change

Real-time to weekly

• Volume of online conversation, #/% change, Cost per Online Conversation Generated (CPICG)

Real-time to daily

• Share of voice in category (=Volume for brand / volume for category), # / % change, Cost per Increase in Share of Voice (CPISV)

Real-time to daily

• Search visibility (for relevant keywords) Real-time to weekly

Preference

• Sentiment index of online conversation (% positive - % negative), # / pts change, consumers reached vs. all, Cost Per Increase in Sentiment Index (CPISI)

Daily

• Share of [net] positive voice in category (=[Net] positive brand mentions / [net] positive category mentions), # / % change, consumers reached vs. all, Cost per Increase in Share of Positive Sentiment (CPISP)*

Daily

• Relative net promoter score (NPS) in category (=brand NPS / category NPS), # / % change, consumers reached vs. all, Cost per Point Increase in NPS (CPINP)

Monthly/Quarterly survey

Action

• Registration: RPA, CPA, $, # Daily to weekly

• Sale: RPA, CPA, $, # Real-time to weekly

• Advocacy: RPA, CPA, $, # Real-time to weekly

*Net positive voice is defined as positive – negative mentions

Rethinking the idea of

value: reputation as the new currency to

achieve great ideas

People: shareholders of the value of an idea

• As seen before, the waypeople demonstrate theiraddiction to an idea isexpressed throughconversations & positive share of voice

• Main objective for an idea-maker: managing, increasing and improving reputationaround its idea

”As Obama says, we are the

ones we’ve been waiting for

(…). In other words, we need

fewer old leaders, and more

love”

David Weinberger

A methodology to make an

idea worth it in the era of social media

”The purpose of a business is to create a customer”

Peter Drucker

“the purpose of a business is to

serve a customer who

creates customers" (Razorfish VP Shiv Singh)

Ogilvy Big Ideal

• Transform an ideainto an ideal– Dynamic approach– Focus on a specific

society need

• A way to includepeople’s attention to your message– Because it may

feed their daily life– Because they can

take part to thisideal

« Simply stated, a Big Ideal is a

universal, enduring theme that a brand stands for. It’s the emotional center. And

we have found that the best way to locate

this emotional center is to start with a deep understanding of what your brand

is really great at – your brand’s best self

– and then to connect this to an important cultural truth or trend that is

going on in society. This is a place whereyou will fi nd energy and passion »

Brian Fetherstonhaugh. Chairman & Chief

Executive Officer OgilvyOne Worldwide

Step 1: listening

• Using Social Media free tools to start listening to online conversations– Identification of key words or equations of key-words

that people are using• Google ad word tools• Experience blogsearch

– Set up of alerts– Dive into the deep web in niche communities

(specialized networks of blogs like TumlbR etc.)• If you have some money, try professional tools

like:– Trendy buzz– eCairn– Radian6…but it’s another story

Step 2: Big Ideal your idea

• Try to check which society needs could befilled thanks to your idea– SWOT analysis based on your step 1

– Brainstorming on what your ideal really is

• Try to transform your Big Ideal into an idealplatform:– Key pillars

• Which ideas could achieve your pillars (services, products, design, signature…)

Step 3: Structure your story (360°Digital Influence Model)

Passive Passive

listeninglistening(= (= getget the the

relevant relevant

information information

dependingdepending on on

youryour fieldfield))

Engagement Engagement

programmes programmes

towardstowards keykey--

influencersinfluencers

(= a (= a

significantsignificant

story in story in whichwhich

youryour keykey

opinion opinion

leaders leaders cancan

increaseincrease & &

improveimprove the the

reputationreputation of of

youryour ideaidea))

Active Active listeninglistening (= (= prepareprepare youryour

organisation to organisation to respondrespond to to

conversations to conversations to transformtransform

opportunitiesopportunities intointo value & value &

threatsthreats intointo control)control)

CampagneCampagne

ExperienceExperience

Social Social platformplatform

(= a place in (= a place in whichwhich youyou cancan drive drive youryour publics & host publics & host

theirtheir conversations & conversations & ownown ideasideas))

CampagneCampagne

ExperienceExperience

CampagneCampagne

ExperienceExperience

CampagneCampagne

ExperienceExperience

WordWord--ofof--MouthMouth acceleratorsaccelerators

Perrier: oops, Dita did it again

Step 4: frequently measure & optimize through dashboards

• Dashboards in orderto track share of voice, positive coverage & potentialopportunities

• A way to keep an history of yourreputation and to manage the nextsteps

It’s your turn

• Next session: – A recommendation for one of the 2 following

cases• Context analysis

• Conviction

• Strategic approach

• Tactics

• Metrics

# 1 Arteest

• How to make Arteest the #1 fashionplatform at a worldwide level?

# 2 Architurn

• How to seduce a wider audience to makeArchiturn profitable?