How Social Media changed advertising

Social media has changed advertising. Advertising has, since its inception, held a dubious position within society. For example, when we watch TV or view a web page we consider it "what pays for the stuff we like". However, there are those of us that buy magazines just for the ads and the Sunday paper is filled with shopping specials. But, by and large, it is what is passed by for more interesting content. I have written a number of blog posts on this topic. I have over the past several years written several blog posts about advertising's diminishing effectiveness with consumers.

Advertising is diminishing in effectiveness largely due to explosive growth of Social Media and Social Networking. Never before have consumers had such control over brands. And consumers do this without constraint. Social Networks allow for free and unhampered communication and connection. How can advertising compete with all that fun stuff flying about?

nielsen-landscape-online-audience-utilities-video-social-media-unique-audience-february-2009.jpg via kwout

Well, Rich Cherecwich of Imedia Connect has an interesting solution; make advertising look less like advertising. This is a good step forward. At Prosperity Research we have avoided the advertising dilemma by been using video based social media marketing strategies with our clients for years. Consumers appear to be very willing to engage with brand messages provided those messages add value to their lives and are interesting. it is all about being relevant.

How about the value of video based social media. Well a recent article from Clickz.com made the generous statement that video was a good bet in a recession -- probably one of the most effective and affordable methods to reach and retain your consumers.

Much success,

Doug

Data Driven: Game Score West 1 China 50

It is early in the game but it appears that China is the clear winner. Whereas in the West only about 1% of Internet users create content, about 50% of Chinese are contributing online. Additionally the type of content contribute by the Chinese is more substantial. Where in the West most use email as the primary tool, Chinese are writing blogs and actively participating in online conversations making them significantly more influential.

What even further skews the score is that the Chinese are currently spending approximately 570 million hours a day online!!! This is very significant since the Western usage of Internet is only making a slow upward growth the China market is just getting started. Opportunities are huge and can only be expressed using phrases like WOW, OMG, and This is SUPER HUGE! Well established companies, like Prosperity Research, stand to do very well due to their proven track record and early in. But clearly this is a big room and the current quantity of service providers is insufficient to fully meet demand.

China Herald: China's internet users are having more fun via kwout

Chinese internet users "huge potential e-commerce market" via kwout

Data Driven: How we spend our daze?

It appears we spend a lot of our time online. And, for better or worse, the data suggests this is not going to change anytime soon. We see online replacing are traditional information and entertainment sources such as TV, newspapers and other print publications. We also see that while we surf the net we also seem to have lots of time for other activities as well. Who exactly came up with the concept of multitasking? And why? Lastly, on a down note, like Yin and Yang with good comes evil. A recent study by Cisco suggests that 90% of all emails are SPAM! The real question is why do these people not use all that effort and resources for good instead of evil!?

Web Overtakes All Media Except TV as News Source via kwout

What’s Competing for Internet Users’ Attention? - eMarketer via kwout

Spam Doubles, Personalized Spam Quadruples in 2008 via kwout

VBlog: 7 Critical concepts every business must know

Straight from my spare room, this is the first in a series of vblogs that define the fundamental change in communication between business and consumers brought about by social spaces on the internet I refer to as the "paradigm shift". There are 7 easy to understand, but critical concepts every business owner must know and understand before taking their brand online or managing their brand online. In this vlog we will work our way through how to successfully integrate your brand into social spaces online, based on some simple rules.

I look forward to your feedback,

Data Driven: Customers on line, but where is business??

A slew of studies have come out just in time for the holidays with predictions about our shopping behaviour. In lieu of the financial crisis, it is not surprsingly many are turning to the internet to save money. What is surprising is that, despite the fact that customers are flooding the internet, business still has a very small foot print there. Additionally, the figures show that those online are increasingly older and monied! Business had better get its game on!

Less than a third of business have a social media presence even though this is the #3 choice for consumers to make brand decisions.

Retailers Turning to Facebook — Social Media Optimization via kwout

Customers turn to online channels to save money on gifts. The value ads up in many ways, from better comparison shopping to saving on gas for driving. And think of your poor nerves, stay home and quietly shop with a glass of holiday cheer.

Pinching Pennies Online for the Holidays - eMarketer via kwout

Video is becoming the clear choice for information and entertainment. But the myth that it is an exclusive domain of the very young continues to get debunked. The fastest growing segment on online video viewers is the choice 35 - 54 age bracket. These are the people with the real money! Well, except me that is.

Online Video Streaming Reels in Women, Older Adults via kwout

Data Driven: Social Networks Saves Business Big Money

Finances are tough for everyone. In lieu of this there are additional drivers for business to move to digital advertising solutions. Additionally, something we all knew is that Mom's are on the go all the time to take care of the rest of us and they are using the internet to make their, an our, lives better.

Thanks mom,

Saving $100,000 A Month With Social Media — Social Media Optimization via kwout

Marketing to Moms - eMarketer via kwout

Older, Affluent and Online! Marketing dollars fast behind

It is of little surprise that older and affluent individuals are taking full advantage of the ease and convenience of online everything. They tend to be better educated, well informed and value comfort and convenience a premium. It ain't just for teenagers anymore. Marketers are having to radically review their perception of how the the rich get their information. Thick glossy magazines maybe a "past" time rather than a "pass" time.

Affluent Americans Spend Most on Home, Apparel, Travel via kwout

npd-boomers-social-networking-visits-friends-september-2008.jpg via kwout

Video Ad Spend: Building to Steep Growth - eMarketer via kwout

From Print to Pixels or How Facebook Saved the Rainforest

How did Facebook save the rain forest?

Remember the idea of the paperless office? The technology that was supposed to transform the modern office into a ecologically friendly “green” office actually increased paper consumption by 40%, ouch! And like the office, print media continues to be the mainstay for most marketing campaigns, thereby creating a vast amount of waste that is difficult at times to justify. It appears our addiction to print is insatiable; or is it? A revolution is taking place that seems to be doing what no government, corporate or ecological initiatives could accomplish: Make our world paperless and green! What is driving this revolution? Simply, it is Social Networks.

“Facebook Saves the World”

The introduction of Social Networks has created unprecedented numbers of interpersonal connections and communications. People chat around the globe with strangers they now call friends. Social Networks are not a digitized form of old paper processes. Social Networks are not a virtual extension of their real world counterparts. They are their own creation and exist unto themselves. The methods of communicating, sharing and saving information are not based on paper driven models. This is the key to their success. Since Social Networks were created in the virtual world they do not have real world requirements to survive and flourish. It is this distinction that is bringing the printer to a stand still!

So what to do without paper?

Not surprisingly people seem to get on just fine without a big trail of paper. And not surprisingly, most businesses don’t seem to make the transition well. This is especially evident in their approach to advertising and marketing. The biggest mistake that businesses make, often under the advisement of advertising agencies, is to cut and paste their traditional “paper” model of advertising into Social Networks. It usually is about as subtle as a stripper in church and about as welcome. So what to do?

Suggestions:

• Recognise the new space and design your content accordingly
• Create content that people want to engage, share and interact with
• Remember that what you have to say is probably the least important part of the conversation
• Social Networks have very fluid boundaries. Create your content to evolve, move and change

Well, maybe Facebook did not save the rainforest. At least not yet, but in my humble opinion Social Networks are the first real progress made towards cutting back on paper consumption for communication. And that is undeniably a good thing.

CIO Guest Blog: Disappearing Technology

At Prosperity Research and SO-U.TV, we believe it is all about YOU! Whether you own or represent a business or agency we provide services to, or are a viewer and consumer of our content, we want YOU to find US interesting.

To that goal, we have developed a simple Technology Strategy: we want to make your computer disappear!Well, not exactly disappear, but our goal is to place our content and deploy our products in a manner that is so interesting to our audience that our technology solutions virtually fade into the background.

Likewise, for our clients, our goal is to provide near term results with long term value. We do this by developing and placing interesting content where consumers are already looking for information. Our model is all about the consumer and what they find interesting.

How do we do this? Without divulging too many secrets :-] I can tell you we have integrated a combination of proprietary technology with open source and licensed tools, and by using many free consumer spaces on the internet. In addition, our multilingual and highly talented back office staff can do things on the internet I never imagined possible!

Although we are happy if you join in the tens of thousands of video views we serve per month at our recently upgraded website, http://www.so-u.tv/, we are equally happy if you were one of the 50,000+ viewers who watched us on YouTube last month. Because, “It’s not me, it’s you”, to paraphrase an old saying.

In closing, although my wife often threatens to make my computer “disappear”, it is unlikely our computers will go away any time soon. They may get lost in a sea of blackberries, ipod’s, 3G phones and some other yet to be invented apparatus but disappear? Not likely. Wherever you are, however, you can bet SO-U.TV will be there too.

Now, where are my glasses?

Push to Pull: the Art of Attraction

If the 80's and 90's were the ME generation then the 21st century definitely welcomed in the YOU generation. The Internet brought interaction and individual participation into the advertising mix in ways never before imagined. And with this came a change in the way businesses needed to communicate to their consumers.

Traditional advertising centered around a one way dialog expounding the virtues and benefits of a product. The mechanics of traditional advertising did not allow for consumer content and response. The explosion of the Internet and Social Networks made consumer comments ubiquitous and instant and the age of Engagement Marketing was born. With this came a new set of communication dynamics that turned marketing on its head.

The carrot or the stick?

It used to be said that you “drove” consumers to your website. With over 15 billion web pages published and more every day it is unlikely that a consumer spoiled for choice will be “driven” anywhere they don’t want to go. Pull then becomes the necessary action. By creating content that is engaging and relevant to the consumer a relationship of mutual benefit is created.

So what is the new formula for success?

Simply put, make sure it is all about your consumers. As a business you are only relevant if you add value to their lives. It is necessary for you to clearly communicate your understanding of their needs and lifestyle.

Follow these simple guidelines:

- Don't start with what you want to say, think about what people want to hear.
- Place the emphasis on your customers, they already know you are selling something.
- Listen! When your customers ask a question take note and respond.
- Sell the lifestyle not the product.

In any relationship each person needs to give 50%. However, when you are trying to reach and retain customers you need to give more. Every one knows basic party etiquette. Talking only about yourself is a bore.

Internet in Asia Population Statistics and B2B goes Social

This weeks data blog highlights the immense opportunity in Asia for Internet anything. Asia has approximately 56% of the worlds population and 39% of the Internet users. It is the fast growing rate of Internet usage and the hottest and most promising economy. Hong Kong has the highest penetration rate in Asia matching South Korea at about 70%. Hong Kong is not on this chart because its total population is less than 8 million.

Asia Internet Usage Stats and Population Statistics via kwout

B2B is the big spend. Social Networks are not just for consumers. Businesses are flocking to this format as a flexible way to engage in commerce. Without the same constraints as traditional vertical business sites, exchanging information becomes easier and more engaging.

B2B International Marketing Budgets Growing via kwout

Businesses are pouring on the spend. Below are the biggest corporate spenders of online ad dollars. This spend represents old school type online advertising of banner and paid search. This is a gold mine for Social Media proponents as the advantages of Interesting over Advertising creates a overwhelming argument for business to radically change the way they position themselves online.

comscore-online-display-advertisers-june-2008.jpg via kwout

Online is becoming the clear winner

I get enjoyment browsing through the hundreds, if not thousands, of feeds I recieve each week. There are always a couple of gems in the lot that validate all the hard work my colleagues and I are doing. It is difficult being ahead of the crowd. If you are so far ahead it can look like you are all alone, ha ha. But with a steady flow of data showing that people are catching up, soon this lonely feeling will be but a memory.

More than Half of US Adults Text, Blog, Otherwise Use Social Media via kwout

mri-ad-medium-preference-segmentation.jpg via kwout

Buzz Canuck: The Three Horse Media Race... via kwout

Vive la Revolution!

• It is timely that on the eve of one of the most famous revolutions ever I write about the greatest revolution ever; the democratisation of the internet. Vive la Revolution! We now live in an age where the individual voice speaks with the same volume as big business and government. I refer to this as the “Me to You” change in communication enable by the internet’s ability to create instant and sustainable dialogue across geography and time. In my Bastille Day analogy, “Me” is represented by the French monarchy that was oblivious, and uninterested, in the screams of discontent coming from the masses, or “You”. However, even though the rich and pampered were not listening, the power of “world of mouth” spread the message throughout Paris’s disenfranchised and all the “You’s” came together to overthrow the ruling order.
  
  Gloriously, we see that now happening again. User generated content and activities on Social spaces have higher traffic and exert greater influence than on big business branded sites. The influence of the individual is clear. So in this age of revolution how can big business protect their proverbial heads?
  
  Simply put, listen and engage.
  
• Create content that is interesting and valuable to your consumers
• Do not assume your content is interesting just because it is big and flashy
• Want and appreciate feedback from your consumers
• Be glad that they add, share and contribute to your message
• Respond to their contribution, answer questions, give them more of what they want, change what they do not like
• Be there for the long haul – no hit and run techniques. Your investment should be to build lasting relationships over time by being consistent

If You Don’t Know The Answer, Ask Yourself

When you go to buy a new toy or plan a holiday where do you go for trusted advice? Well if you are like most people you spend some time on line doing some research, but you most likely ask a friend for recommendations. If this is the case, you are in good company.

A Neilson study showed that the top 3 sources for getting recommendations are:

78% from other consumers (friends)
63% newspaper articles
61% from consumers online they don’t know

The least trusted methods are:

34% search engine ads
26% banner ads on websites
18% text messages on mobile phones

So why are internet marketers continuing to push search engines, banner ads and text messages? The answer is simple, they will sell what they know, and not necessarily what is best. For too long, advertisers have delivered messages in one direction. Imagine trying to ask your TV a question?

Well, the internet is a social/ democratic medium. It is the first time in the history of mankind that everyone can contribute, comment and share ideas as a collective whole. When it is possible to have immediate access to personal endorsements or criticisms why look at advertisement?

We learn very early that advertising exists for 2 reasons:

1 it pays for the free stuff we get to watch
2 businesses have to convince us to buy stuff

So if you are a business and are wondering how to reach your online consumers, ask your self a simple question “what would I do”?

Advertising and marketing will be with us for a long time, but hopefully, online marketers will wake up and realise that the virtual world is a very different place.

The Giant Is Awake!

If there was any doubt where and when the next major boom in online activity was going to be, there clearly is none now. Asia in general has always had a reputation as being technologically advanced and this reputation is well deserved.

This year Asia will expand to over half of a billion internet users and China will surpass North American for the number of internet users. This will make China the world leader for internet penetration.

500 Million Internet Users in Asia-Pacific - eMarketer via kwout

There have been a number of factors that have facilitated China's leapfrog over North America as the highest rate of internet penetration and greater degree of acceptance in daily life. These are both economic and political in nature.

1. Economic rise of the middle class in China has greatly accelerated the internet culture. New money buys new things. A sudden rise in disposable income allows for purchases of goods that only a short time ago where not available or affordable. Whereas the West has been spoiled for choice for a long time and therefore people wait to "trade up" their appliances. The Chinese are buying for the first time, and they are buying cutting edge and embracing it fully.

2. Freedom of communication and sharing of ideas. The internet and mobile devices have provided modern Chinese a level of freedom in sharing ideas and communicating with others that has long been taken for granted in the west.

3. Weak infrastructure actually facilitates the growth of internet and mobile communication. Wireless commications -- mobile phones -- can be quickly installed at a relatively low cost compared to dedicated land lines. Therefore a in country that rapidly demands modern conveniences; a mobile phone is more likely to be available than a wired phone in the home. As an extension to this, Internet cafe's have gained strong cultural and social promenance by providing services that may not yet be available otherwise.

With 80% of Chinese internet users stating that it is an important part of their daily lives we can be asured that the rise of consumerism in China will quickly overshadow Western Countries. What is most interesting to watch is how this is approached. China is not the West and any attempt to treat it as such will most likely meet with disapointing outcomes.