Tag Archive for: Marketing

The Evolution of the Engagement Economy

Banner Social NetworksTalking about new trends on the social web, marketers always love the point of view when brands are involved. They love to negotiate, as I call it, on the “cost per engagement (cpe)” level. Businesses and their communication suppliers always try to get customers engaged in brands. Some years ago, this was difficult. Now, it seems easy. And this topic becomes even more relevant for future marketing strategies when you think about today’s engagement economy.

The engagement economy nowadays is doing things companies never thought would happen: There are people forwarding brand videos (which generate massive engagement), admitting to be emotionally involved in brands. We’ve got people publicly telling their peers how much they love products, services or companies. And then there are people discussing about products and how they would change these products and services in order to make them more profitable for the manufacturer. This is all happening right up to the point where people are basically saying “I am a brand maniac of…” – fantastic and unbelievable in one go, right?

So, if we take a look back and analyze this trend from a long-term web-strategic point of view, companies need to rethink the future of their web-marketing efforts as the social web transforms the value of processes in sales and marketing.

At an event last week a marketer I know quite well took me aside and asked: “Why are people not as engaged when clicking banners as they are when becoming fans or followers of brands on the social web?” And my first reaction was to give a shrug. But then I realized the huge potential of the thought and I said: “Gimme some days and I will try to blog an answer.”

whyblog_1In my view, a major part of the explanation to this phenomenon lies in the evolutionary process of the engagement economy and their brand commitment when people even want to become social VIPs or brand-vangelists and accept the ads from their favorite brands in their social graphs.

Emotions
The emotional-impact of banner advertising and of “social media engagement” is completely different – on those who ‘follow’ the people that click on traditional advertising (display or affiliate) and on those who become fans or followers.

Somebody who clicks a banner ad is not engaged in any kind of brand emotionality: This person is just interested in the offer or the message that grins in his face saying: “I am nice, ain’t I?!” So, why not take a glance at the offer (especially when coupons or incentives are involved) as it is a short-term sales boost via email or some other traditional online advertising format. The person who is clicking on a fan page wants to know more about the brand values, why people have become fans, who they are. This is someone who wants to give some kind of emotional kick back to the brand and the “engaged brand peers”. And just by becoming a fan, they give the brands more positive rewards than they probably realize – kind of like an ultimate pay back which has never existed in that form or to that extent before.

Action
People who participate in banner advertising come from the passive “lean-back economy”. Some experts are already wondering, if banners are dying. My answer is: No, as banners follow a different purpose than the social web marketing activity! The benefit for traditional online advertising is the click, resulting in the quick consumption of news and information. The engagement economy loves to lean forward and get in the driver seat of the brand communication and discussion. Emotionally motivated by the sweet feeling of competence, this engaged person argues about the good and bad of the brand values. When you look at Nespresso and Starbucks social media activities and other impressive examples on Facebook or Twitter, or you take the latest example of the IKEA Facebook campaign all what companies are doing is throwing some communication crums in. And the fans “crowd together” and pick them up with greedy brand enthusiasm. They give the companies and their peers input and feedback with comments, questions and by sharing the brand content and ideas. The emotions get their pay-off by little brand incentives and keep the wheels of engagement buzz turning.

Time
Think about how much time people spend with a brand when clicking on a banner versus being on a fan page. A banner is meant to save time – as does an offer – just by its intention and nature, as well as the message it carries. Check the offer and then be off as quick as possible. Is this the way a banner works? I think so. Rate this short interaction against the time of a brand experience on a fan page. People listen, learn and participate in the conversation about the brand, and come back to see how the communication proceeds. Not because a banner asks for their time to do so, but as the people want it themselves. The customer is the active part of the brand communication, not the company. The customer pays attention to the brand and donates “engagement time” as the new value or ROI for all brand communication efforts.

And then, why do they stay longer on a fan page? The answer is easy: Their “brand friends” are there. They feel to be in good company and this is what builds comfort, driven by a “warm feeling of friendship, networking and community”. You are not alone, you have something in common just by spending time on the same topic: a brand commitment.

Spot On!
The engagement economy is in charge of brand communication and brand commitment. The company still owns it but they are being managed by engaged brand fans. Now, my question to you: Is this true? What is your experience and your strategy when working with this new engagement economy?

News Update – Best of the Day

daily1How important it is to have a clear cut goal with your social media strategy shows an interesting auto comparison by Jeremiah Owyang. He compares two approaches: Shotgun (Toyota’s Yaris) vs Laser (Ford Fiesta).

Are Twitter an LinkedIn moving closer to each other? Seems like that – the basis is status updates.

“When you set your status on LinkedIn you can now tweet it as well, amplifying it to your followers and real-time search services like Twitter Search and Bing. And when you tweet, you can send that message to your LinkedIn connections as well, from any Twitter service or tool.”

LinkedIn Co-founder Reid Hoffman and Twitter Co-founder Biz Stone discuss the great potential of the integration between their companies.

Guerilla Marketing can be quite simple – Money rules the world by Lichtkunst24 for The Zeitgeist Movement

Social Media and Advertising – how to explain an antithesis to C-levels?

social-networks-sepia1Facing the pure intention of social media versus advertising, we have to admit that we are talking about an antithesis – no matter if you can book advertising on a social networks or not. Social Media is conversations while advertising is the monologue from company to customer. And in between lies some undefined (or shall we say unqualified) customer dialogue that we have been through for years of online advertising.

So, how can we explain this type of modern ‘customer engagement setting’ to C-level executives? How can we bring these two anti-poles together? What could have been a better idea than asking to the people that have been through this process of explaining, evaluating and engaging C-levels from both sides – platform owners and brand companies.

Maybe you want to listen to their thoughts…

Blake Chandlee, vice president and commercial director EMEA, Facebook (recorded after the DMEXCO panel ‘social media and advertising’) – sees the biggest challenges in the evolution from their traditional management roles of strategy and investement thinking towards a new business world called ‘social networking’.

Tony Douglas, Innovation Manager, BMW Group – advices to make senior management aware of the potential that social media offers, and knows off the trial-and-error process companies might be going through.

“Firstly you have to get the channels on the agenda that means you have to convince/demonstrate to senior management that the channels are relevant i.e. they are a valuable addition to the marketing communication mix. Just because you have a new channel does not mean you have more budget so you have to prove that this “new” channel is better than some “old” one only then will you get a shift in budget.

Social media and “advertising” are two very odd bed fellows…you cannot do a traditional banner campaign in social media it does not work you need to target and get your context and content right. “Targeting” is also a new science so you have to educate the C-level on what this is. The content is not one size fits all as is often the case with ATL content….here we are talking a mass of niches. However the really tough bit you have to be social now that can be a real challenge. I think it’s fair to say that not many professional marketers have been schooled in how to be social (in marketing). This is new ground for many marketers and brands and like all new stuff it takes time to adapt and learn.

So start early, start small, learn by doing and adapt quickly and if you demonstrate success and a greater return on investment you’ll find those obstacles and challenges will disappear. They are disappearing in the BMW Group.”

Tim Meier, Brand Manager, Bacardi – focuses on the customer dialogue as the main point for his argumentation.

“Generally speaking, it is necessary to enhance top management understanding of social media as a qualitative target group related dialogue communication opportunity. Any figures to measure social media ROI need to be accompanied by the level of qualitative consumer references. In how far are you able to define the GRP level of a positive brand related post from a celebrity/opinion leader? Social Media will certainly emancipate as an equal part of the marketing mix to support future brand campaigns on the image level. Nevertheless you´ll be rewarded with additional coverage if you´re doing a good job and offer a consumer relevant content.”

Spot On!
It would be interesting to get some more views on how we can help making C-levels understand the values of social media quicker, better or more accurate. If we don’t do it, your customers might become the teachers of modern successful customer engagement – but this might be painful for your companies brand. So maybe you and your company are in the same process of evaluating social media and advertising. Wanna share your knowledge with us…

Looking forward to it.

Are contextual social media creatives a good idea?

Today, an agency friend of mine (who is not on Twitter or Facebook) send me a link to a contextual ad campaign she found at the Eyeblaster Creative Zone. The ad is from Vodafone Italy and promoting their 360 degrees campaign. It is an experiment which reminds me of this year’s Volkswagen attempt.

So, what is happening in this campaign?

Interaction 1: Once you click the banner, the ad expands and you can connect to Twitter or Facebook inside the banner…

Social Media Creative 1

Interaction 2: The banner app takes out your surname and creates a nice picture of it by using all your Twitter friend pictures.

Social Media Creative 2

Interaction 3: With a mouse-over, you can see the latest Tweets of a specific followers.

Social Media Creative 3

The final click leads you NOT to your friends account but to the landing page of the Vodafone 360 campaign. That’s it…

Spot On!
Now, we could discuss about the creative idea, or the stickiness value or “clickiness” factor. Or we could talk about the fact of the staying time and branding factor… and who “wins” customers with such banners in the end – apart from amusing them for a while.
When I saw this campaign for the first time I was disappointed as I thought I will be coming straight to the follower’s page – but had to realize that this is a campaign and follows some different purpose. It’s marketing, it’s a campaign and the old commercial approach. No conversation – limited engagement.

And now I am asking myself where the benefit in such creative campaigns is – for the user and the advertising company.

What do you think?

PS: If you want to test the interactive banner, please visit the Eyeblaster Creative Zone.

News Update – Best of the Day

daily1Do you know how many Tweets we have for now worldwide? 5 billion (in the form of a reply to another user)! Caroline McCarthy (CNET) wrote about a company called Gigatweet that has been measuring the service for some time now… and sometiomes you ask yourself: Do we really have to waste the bandwidth by sending out so many Tweets?

SMB’s are quicker adopting social media, a study by Internet2Go, an Opus Research advisory service, and MerchantCircle finds. The main findings for me are…

– 45% have a presence or profiles on Facebook and Twitter to promote their businesses
– 79% have annual marketing budgets of less than $5,000 with the 44% spending “less than $1,000” annually on advertising and marketing
– 75% said they monitor online reviews of their business

Fantastic commercials – men are so simply but ey… we are clever, aren’t we… Well done, Jim Beam!

Dean Donaldson: Future Trends in Digital Marketing

For some years now, we have an annual meet-and-greet trend show for digital marketing in Germany. Some years it was called OMD (Online Marketing Duesseldorf), and now we have the DMEXCO. And every year, I find somebody at the conference where I think, this person is the perfect presenter or speaker (and not just all talk).

This year I had the chance to listen to and to speak with Dean Donaldson, digital strategist at Eyeblaster. Just listen carefully about the future trends of digital marketing, and don’t tell me that this man doesn’t have the talent to get somebody engaged in a discussion (or a vision).

In his 5-minutes outlook he shares his thoughts about banners on a PC (“…this is so long gone…”), about mobile phone (“…that are no longer phones…”), about bill-boards (“… that are talking to you…”) and, and, and…

And he sees the moral challenges and privacy one of the hardest things to tackle for the future …and for the internet of things.

Interested to hear what you think about his view and his thoughts…

News Update – Best of the Day

daily1Although this sounds unbelievable… New study (online poll amongst 271 US CMO’s by ME&L Worldwide and PRWeek – Marketers ignore social media feedback. The findings…
– 70% of marketers have never made change to their products and marketing campaigns based on consumer feedback on social media sites
– 39% are not convinced of social media
– 43% admit lack of knowledge

To find the benefits of Twitter is not easy. Every company has to evaluate Twitter for their own purpose (company messages, products and service). Nevertheless, this Forbes article gives 21 tips on how to use Twitter for business.

As usual – funny commercial for the day by bud.tv…

News Update – Best of the Day

daily1Is business becoming web-business? At least you have to plan holistically to make your company departments understand why it will become social, thinks Jeremiah Owyang. And I completely do agree with these thoughts…

With the rise of social media the world is thinking about the future of advertising. And some companies are right in the middle of starting the new era – the knowledge blog @ Wharton (University of Pennsylvania) tells us more about The Future of Advertising Project.

Ford has recently published their social media strategy, … and obviously one of their tactics (not mentioned in the presentation) is to get viral buzz with their TV spots. OK, here you have it…

Ford – King Kong from Julien Vanhoenacker on Vimeo.

News Update – Best of the Day

daily1This is the news of the day! Facebook is cash-flow positive, has 300 users and their target -as Blake Chandlee, Vice President at Facebook, told me in a call today is- the 1 bio user barrier and that they don’t have plans to go public inthe near future. See Techcrunch for news and comments…

Have you ever thought about how to integrate video into your social media strategies? Heinz ketchup is probably one of the best case-studies that you should make yourself familiar with.

The success of most commercial TV spots depends on the creative element of exaggeration – have a laugh at this Toyota one. Especially, the funny male strategic movement in the end…

News Update – Best of the Day

daily1When managers talk to executives about social media the main question is always: Will the executives see the value for relationship- and brand-building. A new whitepaper called “Social Media: Embracing the Opportunities, Averting the Risks” says: Yes, they do!
And if your executives still don’t know why they should implement social media guidelines, Brian Solis has some good arguments for you.

Case studies on employer branding and how to leverage it with social media is hard to find. Brett Minchington, Chairman/CEO of Employer Brand International (EBI), interviews Kerry Noone (Marketing Communications Manager, Sodexo) about how their social media strategy is building a stronger employer brand at Sodexo. Listen carefully…

Sometimes old TV spots turn out to the best…

PS: Find new books in my The Strategy Web bookstore. Just updated today…!