Posts Tagged ‘advertising

09
Apr
10

“People don’t trust big companies, they trust their friends”

This quote comes from Jim Farley, Group VP of Marketing at Ford, who this year moved 25% of his marketing budget out of traditional media and into digital marketing and social media.  According to Jim, when new products like the Ford Fiesta are pivotal to company growth,  “the company must rely on others to tell the story.”  That’s Jim’s company up in the left and his constituents on the right.  Who would you trust?  For Ann Handley’s full interview with Jim, go to  http://ow.ly/1n3g9O

In a related move,  Pepsi, for the first time in 23 years, did not have commercials on the Super Bowl. Instead, the company is spending $20 million on a social media campaign called, The Pepsi Refresh Project, where users give ideas to Pepsi for ways to refresh their communities.

Maybe these moves reflect the facts that:

  • 90% of all purchase decisions begin online
  • 75% of people shop online before they buy offline
  • 85% are looking for an independent review
  • They have an average of 130 friends on Facebook; an average of 127 followers on Twitter
  • Positive perceptions of a company increase by 36% if there’s a blog on their website
  • 14% of people trust advertising
  • Only 18% of TV ad campaign ever generate a positive return on investment

I think Pepsi’s Super Bowl commercials are some of the most iconic advertising, ever, and believe their effectiveness was probably much greater than average.  I was sorry and sad to see them exit the Super Bowl, altogether.

But, for those 86% who don’t trust advertising, now they hear about Pepsi from who they do trust, their friends.

04
Apr
10

The Goldilocks Rule

I’m seeing a business principle take shape in social media called the “Goldilocks Rule.”

What happens is a business starts using a number of social networks (Twitter, Facebook, etc.). Maybe they use video or an app too. Pretty soon, one social networks starts working better than all the others. It’s the one that’s “just right” because it:

  • Attracts more people (fans, followers, viewers)
  • Increases sales most directly

While it’s not apparent at the outset what social network it will be, it is apparent, once it starts to happen, it’s the one that best reflects the uniqueness of the brand. Let’s look at a few examples.

1. BLENDTEC (BLENDERS):  On YouTube, the blending of an iPhone has been watched by 8,002,192 viewers. Videos of CEO Tom Dickson blending golf balls and hockey pucks have over 1,000,000 viewers each. By contrast, Blendtec has 17,145 fans on Facebook and 2,266 followers on Twitter. For a product whose benefit needs to be seen to be believed, videos and YouTube are the medium for the message.  For an investment of around $1,000, company sales increased +500%. And they still grow in direct proportion to YouTube viewership.

2. AJ BOMBERS (RESTAURANTS): Ask owner, Joe Sorge, what took his Milwaukee burger joint from $12,000/week to $17,000/week in sales and he’ll tell you Twitter, a video from Chris Brogan and great burgers. Numbers support this because the video on YouTube has 3,047 viewers and AJ Bomber’s Twitter page, which Joe uses like a virtual host, has 3,107 followers.  By contrast, AJ Bomber’s Facebook page has 1,028 fans.  Maybe that’s why Joe now has a book called #Twitterworks (http://twitterworks.tv) to go with the great food.

Both Tom and Joe’s videos are in previous blog.

3. COLGATE (CONSUMER GOODS):  We put social media into Colgate’s marketing mix by creating a social media app for their promotions and events so friends could share Colgate news with  friends. We put the app on their web site. It gives greater details on specific promotions and events and allows for sharing on over 20 social networks. We find 80% of response comes from Facebook. We also find the response rate is 4X industry norms and people spend 3X more time on the app than the web site. Since the average Facebook users has 130 friends, that’s a lot of people and involvement.

Facebook proved to be the best vehicles for conversations about Colgate brands. All of us like to talk about brands. Did you know we talk about brands on average a dozen times a day?  Now, social media makes it easier for those conversations to occur and for us to learn from them.

So that’s the “Goldilocks Rule.” We see it for brands we observe. Do you see in your industry or brand?

25
Mar
10

7 social media tips to build brands

The U.S. Small Business Administration is giving social media workshops at UCONN campuses this March and April.

52% of people in the U.S. work at businesses with 20 people or less.  Small businesses have led the country out of every recession.  Many believe, including comScore, social media will be a big asset this time around.

Since I’m one of them, I’m grateful to contribute along with Mike Rogers of Brainloaf,  http://www.brainloaf.com and other small business owners (featured below) that have used social media successfully.  Here are 7 social media tips to build brands.

  1. Strategy trumps technology: A business strategy and social media strategy are the same thing.  In using Twitter, Facebook, YouTube, apps etc., ask yourself how these amplify the business strategy and increase customer engagement and trust in your brand?
  2. Set measurements and expectations first: Don’t believe anyone who says you can’t measure social media.  You can know more about buying behaviors on the internet (e.g. where customers come from, how long they spend with you, what they do and where they go) than in your store.  Plus Google Analytics and bit.ly links are free.  If you’re not convinced, David Berkowitz has a great presentation on 100 measurements at: http://bit.ly/pmadb
  3. Social media takes time: Small business owners, understandably, have lots of priorities.  Manage what you can handle.  Customers come first.  Social media is going to be around for a while.
  4. Live with the ups and downs: What you want is a following and fans.  It doesn’t happen overnight.  It doesn’t happen the way you thought it would, but, stick with it, and it does happen.  Enjoy the journey.
  5. Not all social networks are equal: In every case I’ve seen, some social networks do better than others depending on the unique nature of every business.  For AJ Bombers, a burger joint, it was Twitter, acting as a virtual host, and a video from Chris Brogan.  For a utilitarian product like Blendtec blenders, it was unconventional product demos from Founder/CEO, Tom Dickson.  You can learn from their experiences below and expect it will happen for you.
  6. Have your online house in order: If you follow tips 1-5, you will experience increased traffic.  It will go to your web site, the most important asset in any social media program.  There’s an old saying:  Nothing kills a bad product faster than good advertising.  Today, nothing kills a good social media program faster than a bad web site.
  7. Believe in your product: Joe Sorge, owner of AJ Bombers, who now has a book, #Twitterworks (http://twitterworks.tv),   spoke in a video call from Milwaukee.  Joe says his Twitter page, AJBombers, has increased weekly sales +25%.  What was most important to his success?  “If I didn’t believe AJ Bombers made the best cheeseburger on the planet, social media wouldn’t have accomplished a thing.”

If you’re in the area, the next workshop is April 27th at UCONN in Stamford from 6pm to 9 pm.  Details will be at:  http://bit.ly/bW22Ml

03
Mar
10

Case study: social media brings out advocates and ROI

I’ve had clients tell me they’re from Missouri – you know, the “show me” state.  I must  work with people who’ve spent some time there because I hear the phrase, “show me,” a lot.

Here’s a recent experience of ours we’re glad to have done for a worthwhile cause.  It shows us social media:

  • Works
  • Works even better when it’s integrated into the marketing mix
  • Is highly accountable
  • Builds brands

But that’s our opinion.  What does this case study show you?

SOCIAL MEDIA BRINGS OUT ADVOCATES AND ROI FOR COLGATE/STARLIGHT FOUNDATION

SITUATION: Every February, Colgate Palmolive helps the Starlight Foundation, an organization dedicated to improving life for terminally ill children.  They donate a Wii Fun Center every day to a deserving children’s hospital.  Consumers vote at the Colgate website for their favorite children’s hospital to be recipients.

Awareness occurs through radio, major magazines, online advertising, PR and events, with the challenge to increase outreach, voting and participation every year.

SOLUTION: In 2010, social media is integrated in the marketing mix.  A social media “app” is developed for the voting at http://colgate.com/showthelove.  Through the “app,” consumers are able to: 1) Locate their favorite children’s hospital,  2) see who the daily winners are and 3) encourage their friends on social networks and relevant blogs to get involved.  Recommendations are delivered with a branded “Show the Love” digital mnemonic (visual in the center above).

RESULTS: Social media outperforms outreach expectations, shows significant return on investment and plays an integral part in the program.

  • 20% of consumers who vote also share on their social networks and blogs.  For perspective, typical response rates for promotions on consumer packaged goods brands are less than 5%
  • They are on the social media “app” 3X longer than the web site
  • 25% of total traffic comes from social media; mostly from Facebook
  • Total social media impressions compare favorably to mass media because the average Facebook user has 130 friends
  • Text analysis shows learning and offers direction for next year’s efforts
  • Lead acquisition occurs and a database is built; it’s now an activation source for future brand building programs

The investment in social media, relative to total program costs, is a small, single-digit percentage.   It delivers double-digit results.

16
Jan
10

“People don’t trust big companies, they do trust their friends”

This quote comes from Jim Farley, Group VP of Marketing at Ford, who this year moved 25% of his marketing budget out of traditional media and into digital marketing and social media.  According to Jim, when new products like the Ford Fiesta are pivotal to company growth,  “the company must rely on others to tell the story.”  That’s Jim’s company on the left and his constituents on the right.  Who would you believe?  For Ann Handley’s full interview with Jim, go to  http://ow.ly/1n3g9O

In a related move,  Pepsi, for the first time in 23 years, will not have any commercials in the Super Bowl. Instead, the company is spending $20 million on a social media campaign called, The Pepsi Refresh Project, where users give ideas to Pepsi for ways to refresh their communities.

It’s a coincidence there are so many numbers in the 20’s in the first two paragraph, but there’s nothing coincidental about the facts that:

  • 90% of all purchase decisions begin online
  • 75% of people shop online before they buy offline
  • 85% are looking for an independent review
  • They have an average of 130 friends on Facebook; an average of 127 followers on Twitter (again, just a coincidence the number are so close) I think 🙂
  • Positive perceptions of a company increase by 36% if there’s a blog on their website
  • 14% of people trust advertising
  • Only 18% of TV ad campaign ever generate a positive return on investment and Pepsi spent over 142,000,000 on Super Bowl ads over the last decade

Now I think Pepsi’s Super Bowl commercials are some of the most iconic advertising, ever, and believe their effectiveness was probably much greater than average.  I’m sorry and sad to see them exit the Super Bowl, altogether.

But, for those 86% who don’t trust advertising, now they’ll hear about Pepsi from who they do trust, their friends.

Remember that Google Trends chart 2 posts down on Jan. 4 (see below).  Well, do you think the year is off to an interesting start?  Would you agree with these companies decisions?




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