Tag Archive for: Marke

Report says, social networks not used for purchase decisions

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Social networks ‘rule’ our days. Nevertheless, their monetization outlooks may be hit by some news, I came across yesterday. A recent study by Knowledge Networks reveals that only 5% of users enter social networks for guidance on purchase decisions in any of nine product/service categories.

Everybody is talking about ways for companies to promote their services, products and brands. It seems that companies cannot exist anymore if they don’t integrate social media tools (Twitter, Facebook, MySpace, etc.) into their web strategy. And seeing the results of the study this seems to make sense. It shows that 83% of all internet users between 13-45 use social networks (47% regularly).

However, only 5% of the respondents say they are influenced in their purchasing decisions and seek guidance from social networks. Also, only 16% are more likely to purchase products from companies that advertise on social networking sites.

“Our findings show that marketers need to be prudent and people-centric in how they approach social media,” said David Tice, vice president and group account director, Knowledge Networks. “Social media users do not have a strong association between these sites and purchase decisions; they see them as being more about personal connection – so finding ways to embrace that powerful function is key. The fact that they are using social media more now than a year ago is a strong indicator that the influence of these sites and features is here to stay.”

Spot On!
The private aspect and the main intention of “staying connected” with friends and family is still the most important feature of social media. When people log in social networks it seems as if they switch to an atmosphere of privacy – and they don’t want intensive ads to interfere with peer interaction. Although the majority of users believe that ads on social networking sites are a “fair price to pay” in return to use the services for free.

People on social networks need to understand that operating a social network costs money and is not altruism business – and social networks operator should make this clear to their target group. Maybe the social networks should give people the option to either pay for access or accept ads, right from the registration process (or group together like the Social Globe). This might be a way to stop the ‘cost free web’ atmosphere…

PS.
Companies, to my experience, know that it makes definitely sense engaging in social networks. Nevertheless, there is still not enough knowledge and expertise on why, how and in which way to use social networks. Finding the right web strategy and the appropriate approach on how many and which social network activity makes sense, becomes the biggest challenge for them in the future. Rethinking their marketing, PR and sales processes is a must have to make way for an integration of social media into their company strategy. And Dell has proven that social networks are used for purchase decisions…

News Update – Best of the Day

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The difference between Facebook pages and Facebook groups is…? Well, if you still don’t have the proper answer… OK, here is one of the finest explanations by Howard Greenstein that I found on the web for those companies that evaluate on smaller or bigger interaction on Facebook.

Companies still ask what the return for investing in social media is. Beth Perdue summarizes some great suggestions from experts at the New England Xpo for Business at Boston in terms of how marketing mentality is shifting. Definitely an interesting read…

Finding good case studies for social media marketing is not easy. Del Monte Foods has created a great example in just six weeks. Adage focuses a speech by Forrester Research’s Josh Bernoff. Watch it and learn from it…

News Update – Best of the Day

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For top management there is a significant change in how to run a successful company – not only because social media turns the world upside down. On his blog, Gary Hamel, Visiting Professor of Strategic and International Management at the London Business School, gives some insight in a two-day work-shop of top managers and what they think will be essential values for today’s management. Read the 25 challenges for top management in the future in the end of the paragraph, and think about it and how far you are embracing the future with your company…

Social Media seems to becoming the topic for 2009…. and there has been written a lot on social media marketing in the last 12 months. If you have the time, read this great collection of posts. It is a helpful source of social media marketing best practice cases, and will push your business if used properly. Sometimes it is better reading some blogs and leaving the books were they are.

We all know that using social media can be very powerful for our career. For those who have not yet considered working a bit more on a personal blog, social media or Twitter, read this post from Strategic Social Media ‘Candidate 2.0- Using Social Media to Promote your Personal Brand‘ and you will get a interesting and helpful tips. Sure, you don’t want to start using it?

Why Apple could buy Twitter

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This is just some thoughts creeping up my neck…

Based on …
… the development of technology convergence of markets for a full-fledged digital value chain …
… an imaginary 5-year marketing and media reach spending projection …
… knowing that iphone user love Twitter and offer a great target group …

And then the thoughts are going on to …

Nokia A footwear, tyres and shoe company that suddenly builds mobile phones…
Verisign An IT security company that buys a mobile service provider company called Jamba that is selling downloads like ringtones, screensavers and music…
Apple An IT hardware company that moves to a full-fledged digital value chain company doing transaction, communication and information/entertainment via itunes, a search engine and the most powerful real-time news stream…

… resulting in an amazing infra-structure model supported by a popular hand-held. Times and markets are changing…

Concluding in thoughts: OMG, what happens if Twitter can be used only on iphones for free…?

No, no, no… let’s stop these thoughts!

How to write text ads that generate leads

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In school we have learned how to write a summary in 5 sentences max. Isn’t this exactly what we need to create (newsletter) text ads that are meant to generate leads? Let’s see…

The last nine years working with customers on silicon.de, we have seen hundreds of bookings for text ads in our newsletters. In most of the cases these were meant to generate leads as we say. Now sure, leads is a powerful and impactful term ensuring the future of business, sales opportunities and save the job of responsible decision makers in marketing or sales departments.

Lead generation can be seen as collecting addresses (contact generation), profiling customer needs for products and services (interest generation), or using the direct offer for real sales or bargains (lead generation). For this post we make no distinction on the three different categories and just want to focus on the 5 sentences formula.

Headline
The number one…
The one-sentence headline is the door-opener, the eye-catcher, the first impression on your customer and your access to lead opportunities – and revenue in the end. If you fail there, the rest of your text ad will be deleted immediately in front of your customers eyes. An effect we call the ‘Skip this ad’ view…

As customers -hopefully- spend some time reading your headline (remember that this is a gift customers hand over to your business…), you should give them some kind of benefit in return from the start. So my advice is, find successful openings to create a basis for your lead generation idea from the start.

The offer. This must be written in clear words and addressing the customers needs, desires … or purse.
Examples: Get your free paper… Use 25% offer… Profit from money back…
The rhetorical question. All things that appear to be clear to customers but raise attention and/or curiosity. In Twitter days, we realized that people with rhetorical text messages generate big interest. My most-read post ended ‘… future of the business, or business of the future’. Using oxymoron is just fabulous…
Example: Don’t you want to win the lottery? Don’t you think firewalls are necessary? Don’t you think washing hands saves your health?
The advice. The world is full of questions and everyone is eager to get more insight in tools, tactics and trends which leads to even more questions. The more valuable ‘coaching effect’ we offer, the better our reputation becomes – and with that our convergence. ‘How to’ is the answer to those questions… and the reason for the headline of this post.
The ‘buzz verb’. Indicate with the first words what the (potential) customer is intended to do and what your business expectation is. This is a direct approach which is most often used for real lead generation.
Examples: Read now…, Buy now…, Follow up…, Enter data…
The ROI view. Especially in times of recession everybody is looking for better profitability. If there are ‘easy-to-receive’ options, people are open to use those and leave their data with your business.
Examples: Become more productive…, Save money by…, Increase sales with…

Body text
Sentence two to four (max.)…
The body text outlines the benefit and explains the customer how and why using the offer is desirable and makes sense. In my theory this should be done with the following 3 sentences, or optional as main ideas for your body text. Addressing the customer that is already leering to the point-of-sale (POS) …

Problem. Customers who see their responsibility have more urge to get in touch with your offer and business benefit than those who are just tangent to the issue as a tiny part of a (business) system. Target the people you are interested in by describing problems, duties or responsibilities your target group wants to get rid off or find an ease in – and which are on an open plate in public (business) talks.
Examples: How your live can change…, How your sales can benefit…, How your wife is happier…
Opportunity. Use stats or testimonials that your customers can identify with. These should illustrate your problem statement. In case you haven’t invented a complete new product, offer a comparison which puts the benefit in pictures like a metaphor.
Example: People that have used this have lived 3-times longer than…, People that bought this product, saved 25% off their time…
Scenario. The conclusion of the previous explanation, leading to just one intention. Wanting to ‘own’ the product, service, etc…
Example: Seeing these facts, you have the proof why…, Reading this you have not many options… (not ‘no’ option – no teacher mode!)

PS: The body text framework is also a successful structure that works for Google text ads.

Call-To-Action
Last sentence, number five…
Don’t leave the user in the scenario mode. Tell the (potential) customer what he/she needs to do now. Take him/her by the hand and push their eyes with ONE sentence to ONE action point (=URL). No confusion, just conversion!
Example: Click here…, Download now here…, Save now with one click….

Spot On!
Generally speaking: One break per ‘block’ (headline – body text – call-to-action). The shorter the message, the more open customers are to have a glance at it.

PLUS: A text ad is not a branding tool! Mentioning products more than once is useless. Trademark as well as copyright signs have no right to exist in text ads. Please use banners if you are after branding and awareness.

Brevity is the soul of wit. And if you need help, just let me know…

Study: Twitter used as a learning tool – not for ego-boosting

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According to a recent study by the research firm MarketingProfs in early and mid-April, the main intention to use Twitter is learning in more or less real-time, then comes social networking benefit or pushing the ‘digital ego’.

The results of the study revealed that almost…
– 100% of the respondents said they value “getting information in a timely manner” and “I find it exciting to learn new things from people”
– about 80% like to be connected to lots of people.
– 70% answered “I find it gratifying to have people follow me,” and “I want to generate new business.”

The question that divides the Twitterati population is if a large number of followers makes you more respectful, or not. On this statement…
– 39,9% strongly or mildly agree
– 45% strongly or mildly disagree

Seeing the large number of followers as a perception of intelligence was tested with the question “People who have a large number of followers are smarter than those who don’t”…
– 81,7% strongly or mildly disagree
– 5.9% strongly or mildly agree

In the eyes of Evan Williams, CEO of Twitter, the benefits are …

“Twitter lets people know what’s going on about things they care about instantly, as it happens” (…) “In the best cases, Twitter makes people smarter and faster and more efficient.”

And yes, Twitter is turning around the media world if we look at the eMarketers summary ‘Twitter tally’.

Spot On!
But, hold on… One question makes me think about these results of the MarketingProfs study in combination with the authenticity of the answers and the first idea of the micro-blogging tool. The question “I feel bad when I tweet something and nobody responds” was answered as follows…
– 52,7% strongly or mildly disagree
– 24% strongly or mildly agree
– 23,3% neither agree nor disagree
Now, if Twitter is like a mobile phone for text message dialogues, meant to communicate with followers we like and rate, is this communication not going back to being a monologue then? So, are we really sending out some kind of information just for the sake of informing others? Don’t we await an answer if we send a text message with a mobile phone? If we tweet ‘I am in the tube’ or ‘Just got breakfast’, then probably nobody expects anything. But not if people are writing scientific papers of 500-750 words – and then tweet the headline and the link. In my opinion Twitter is moving from a communication tool to some kind of personal branding tool. Otherwise, we might ask: Why do people spend an average of 2¾ hours per day on Twitter (average using time for Twitter according to study!), instead of being productive, picking up the phone or meeting up with clients for lunch or in the bar? This is real communication, and not limited by 140 characters. And if someone has written the scientific paper it is on the web, it’s public, so if people are interested, they will find it. But Twitter spreads the word much faster. And is not this the reason why people love and use Twitter?

News Update – Best of the Day

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Companies still don’t know whether to ignore Twitter or being aware of a Twitterstorm might save the brand’s value. David Sarno and Alana Semuels show good cases why major brands learn they’d better respond quick – focussing on Amazon, Skittles, Domino, Coca-Cola and Hasbro.

How to explain the social web to your parents? Obviously, all of us who engage in the social web world have faced this problem. In May, I have decided to speak at the Webinale on ‘career 3.0 – split between productivity and personal branding’ which will give some insight how successful companies might work with the social web of the future. Jeremiah Owyang did an excellent storyboard explanation on the social web and compares the industry with a ‘Social Reef’.

“…see this space like a reef, a complex ecosystem that has so many variables and changes, each day is different.”

Social Reef: An Industry Perspective

Still thinking on how to behave on Facebook the right way? No worries, here is the answer and a wonderful advice by YourTango and their film ‘Facebook Manners’.

UK: Internet users love browsing social media – less shopping

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A recent study by Hitwise reveales that UK Internet users are spending more time browsing online media than ‘going’ online shopping. In March 2009 9.8% of all UK Internet visits were directed to social networking websites and 8.6% to online retail websites. Compared to 2008, the figures turned around (online retailers 9.7% – social networks 8.2%).

In the passed year, online retailers sawe a downsize in traffic from paid search like sponsored or paid for links on search engines (i.e. like Google, Yahoo!, Live and Ask) – 2009: 8.9% and 2008: 10,1% of visits to online retailers came from a paid search listing.

“The growth of social networking, online video and the continuing popularity of news websites has meant that an increasing proportion of consumer’s online time in the UK has been devoted to online media,” commented Robin Goad, Hitwise’s Director of Research.

The traffic that Facebook, Twitter, MySpace, YouTube and the likes generates for online retailers increased in one year from 5.2% to 7.1%. And social networks now generate 58.3% more traffic than webmail providers (Hotmail, Yahoo! Mail and GoogleMail). The best performing categories in 2009 were Auctions, Fashion and Department Stores.

“Social networks are a relatively small but fast growing source of traffic for online retailers,” commented Goad. “At present, only a minority of retailers pick up a significant amount of traffic from social networks, but many of those that do have seen a positive impact on traffic. For example, fashion retailer ASOS has a strong presence on Facebook and in March received 13.3% of its traffic from the social network. Another example – in a very different market – is online bookseller Abebooks, which currently receives a quarter of all its UK Internet traffic from social networks, more than it gets from search engines.”

Spot On!
Is this showing a trend that people are willing to buy products in social networks? In the UK, it sounds possible. It could be the next step. We all know that the easy purchase process is a winner – for companies and customers. Thinking of the future of social networks, companies should consider engaging with customers much more on social networks while also integrating ‘light’ e-commerce opportunities in their Facebook Fan pages or in their company profiles at XING. Or at least indicate and lead the way for customers to some good offers or marketing activities. And re-thinking efforts on big spendings for paid search is definitely something that needs to be thought about…

B2B Study: Marketers Strategies and Spendings for 2009

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A recent study from Marketing Profs and Forrester Research amongst 300,000 marketing executives and other management professionals, conducted in late 2008, offers insight in the latest b2b marketing strategies, budgets, tactics and attitudes.

The key findings are that marketers have three deeper needs for the future: measuring effectiveness becomes increasingly important (i.e. webinars and search provide great tactical benefit), understanding customers deepest needs and wishes, plus exploring and learning from best practices for daily business implementation is crucial.

The report makes clear that top marketing business decision makers are relying much more on digital marketing tactics. With a high percentage of respondents saying that their company web site (91%) and email activities (81%) are the top media used for their tactics. Still, it is interesting to see that a lot of marketers work with traditional tactics like public relation (72%) and tradeshows/conferences (70%) as very important lead generation tools.

With the increasing importance of web 2.0 and social media platforms and tools for customers, companies are changing their media mix from ‘[more costly] traditional media and toward [less costly] new tactics’. Nevertheless, the marketers knowledge on tactics for the new social media platforms is still in an ‘infancy’ status.

In average, the budgets are still spend in an ‘old-school’ manner with tradeshows/conferences (20%) and TV advertising (18%) leading the marketing mix spending, followed by inside sale/telemarketing (16%) and print advertising (13%) – the leading field only interrupted by one digital marketing activity: direct mail (14%).

Spot On!
The report reflects in some way the economic crisis when the executive summary is talking of reducing spending and focusing efforts on a narrower segment of their target markets. Meaning… the so called ‘watering can’ marketing strategy is vanishing and marketing strategy will be focused much more on the digital ‘1-to-1’ as well as ‘1-to-many’ approach. The real (or potential) customers, their environment and the people influencing them has reached the marketers mind – so social media is not too far away for them to understand, and offers great opportunity to learn much more needs and wishes.

Report: Marketers web-strategy not listening to SMB needs

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The latest report from Bredin Business Information (BBI) finds that SMB’s will not become customers with the common marketing strategies: Marketers are going online while small and medium-size companies are still living the offline world of direct mail and tradeshows.

The two surveys by BBI, conducted in late January and February, combine the findings of 50 leading marketers and 741 SMBs. While marketers were asked about their outreach and research efforts for 2009, the SMBs had to give some insight about their online and offline media preferences, top business issues and brand ratings. The findings show that both sides don’t go and-in-hand to reach their targets.

The marketers world
What marketers know…
SMBs rely less on traditional marketing tactics but that’s one of the top ways they like to receive product and service information.
What marketers do…
Marketers’ spending will increase spending on every online tactic (especially microsites and resource centers, social networking and webinars) but decrease budgets in direct mail, print advertising and trade shows – only PR and telemarketing will increase.

The SMB world
What SMBs rely on offline…
– 43,6% newspaper and magazine articles
– 43,5% direct mail (including letters, postcards and catalogs)
– 32% radio/TV ads
– 27,4% phone calls
What SMBs rely on online…
– 72% online referrals (friends and peers) most popular information source on products and services
– 57% search engine marketing
– 44,5% educational websites
What SMBs favorite in social media…
– 19.7% Facebook
– 15,6% LinkedIn
– 11,3% Twitter

“Marketers are clearly reacting to the difficult economy by using offline tactics much more selectively. They are also moving online aggressively, to reach SMBs efficiently and learn how to get the most from new media opportunities. (…) However, our survey of SMBs indicates that business owners are not nearly as enthusiastic about many online formats for business purposes – such as social networking – as marketers are.” said BBI CEO Stu Richards

Spot On!
The high percentage of marketers more focused on winning new customers than keeping current ones surprises… : 48% balancing their acquisition and retention efforts, 32% concentrating more on acquisition and 20% focusing more on retention. In my experience it is easier keeping clients and trying to meet their needs. Marketers should try to face the difference between customers who really ‘live and communicate the web’, and those that don’t. Going online will be the future, sure, but step-by-step with training the customers the benefits of receiving the information online. Today in some industry sectors, marketers can still put into question the high priority of moving online (3,5 on a scale of 5) and slowing down offline tactics (2,6 on a scale of 5) if the target group is not ready for listening online.