Monday, 21 June 2010
Social Media December 2007 to June 2010
Well, the 2007 year is wrapping up and the final numbers are coming in. These are the all important numbers which demonstrate online behaviour in general and more specifically the consumer spending habits during the peak holiday period.
It is unanimous that Social Network Marketing continues to dominate the press and the pocketbook of consumers. With word of mouth becoming the new cred over traditional corporate spokespersons the individual reigns supreme. Prosperity Research continues to advance natural techniques to understand the behavioural mechanisms that guide Social Network models. There is little need for big media buy or fancy gimicks in the new democratic space on the internet. The old addage of "talk is cheap" has an all new meaning.
Tuesday, 6 October 2009
SMN, Business and consumers see things very differently
Mike Sachoff wrote in WebProNews
Not only do consumers want brands to be active participants in this SMN but they, in repeated surveys, have stated that they have greater confidence in brand messages received in SMN then any other source than family and friends. Given this it becomes particularly odd that business still shows such reluctance.
Thomas Crampton
So what is it that is keeping business away from SMN? Well there are a number of reasons but the one that seems to come up most frequent is "we are afraid of what people will say about us". Ms. Ochman recently wrote what she found to be the
BL Ochman, reposted in socialmediatoday, wrote
The reaction of business to avoid SMN has both logic and contradiction in it. The logic would suggest that by putting yourself in SMN then you open yourself up to comment. This only stands to reason. However, the contradiction is that consumers will and are discussing brands in SMN regardless of whether business is there or not.
If you consider the old adage "the opposite of love is not hate it is indifference" then the only thing worse than having consumers saying bad things about your brand is having them saying nothing at all.
My personal belief, after having talked to many clients about this concern of theirs, is that it is not based on fear but denial and lack of understanding. I say denial because there is the illusion that if business sticks to traditional marketing strategies then somehow they will go unnoticed in SMN. This is not the case at all. The only result of this is that brands miss the opportunity to know what is being said of them and to actively choose how to respond. So it begs the question for business; what would be considered worse? To find out consumers are speaking ill of your brand or that they are saying nothing at all?
Much success,
Doug
Saturday, 9 May 2009
Social Sites: A whimper or a YELL!


YouTube, Facebook and Twitter. All are in the press these days and if they are not part of our lives yet they probably soon will be. So how do they fare when judged against "what makes a successful social site"? Let's have a read:
Social sites have been around for some time now. And in that time I have had a chance to observe some fairly standard activity that either leads to success or obscurity for social sites. Keeping things simple, there are 3 phases that a social site needs to survive and there are 3 groups of people that will help to make or break it.
Phases:
- Fad and Frenzy -- everybody jumps on board. Vampire bites and hours of endless surfing with no real point or reason. This is a very important phase for a social site.
- Get Real -- Rapid fall off of people as they realise that they are completely wasting their time on what seems to be a senseless and all consuming past time. Use and tools need to get sophisticated to retain interest.
- Strong and Stable -- Innovation leads to value. People recognise useful tools and ability to make time work for them and not take time from them.
- Time wasters -- These are usually the first on an application and the last to leave. With hours of endless time to waste, they are usually the ones that push the next group off because of persistent annoying behaviour.
- Convince me -- These are the people that tentatively join after a bit of coaxing but do not get caught up in the craziness and drop off quickly. However, these are the core group that will return if the app makes it to the 3rd phase.
- Innovators -- These are the people that see the future. They transcend the silliness and ego that drives social sites in the first two phases and can recognise the long term potential. They develop the apps that turn a "waste time" app into a valuable tool.
Three very well know social media apps are YouTube, Facebook and the up and coming Twitter. Each of these represents various stages of the 3 phases.
YouTube (no success yet) was the most promising. With its explosive launch and unique offering – VIDEO, YouTube set the world ablaze with imagination. YouTube provided us with a new world of choices, new ways to share and hours of good fun. YouTube enjoyed one of the most explosive Fad phases of any social media application to date. However, since that time they have not been able to transition to the Strong and Stable phase. YouTube has not come up with a solid business model that provides long term profitability. My comment to my clients is that YouTube is a good platform for them to host their videos free of charge. But it is lacking as a good marketing tool and their poor search capability and overwhelming amount of content makes it almost impossible to use with out additional help outside YouTube. Without the deep pockets of Google supporting YouTube they most likely would not be able to continue. The cost of supporting their services is too prohibitive without a legitimate revenue model.
Facebook, despite the occasional bad press, is a poster child for success. It grew at meteoric speed and then faced intense pressure to retain viewers. Exhausted by vampire bites and inane gifts, the “convince me” group started to leave in droves. What made Facebook greatly successful is that the Innovators were able to see long term value in the deep connections that Facebook allowed. This ability to manage connections whether they are friends, events, social media or virtually any other had huge value. Facebook matured into a good personal management systems. With its attention to small business and organisations, it opened itself up to limitless content creation. The ability for individuals to filter and minimise unwanted communications makes it very attractive. It is almost impossible to eliminate spam from your email, but with Facebook you only see what you want.
Twitter is the up and coming new Social App. The hype is huge and people are logging on and jumping off in droves. However, the innovators have clearly identified Twitter as possessing great potential. The question is will Twitter successfully make it through the final Strong and Stable phase? I am betting it will.
Tuesday, 28 April 2009
How Social Media changed advertising
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
Monday, 20 April 2009
Social Media slams Banner Ads 2 to 1

- Brand information found on social sites is the #2 most trusted source of brand information, second only to family and friends.
- Social sites are growing at a rate of 2:1 over all other internet areas making them the most active areas of consumer to consumer (C2C) conversations.
Brand Mentions Preferred over Ads - eMarketer via kwout
Industry information has been pouring in for more than a year showing a significant decrease in the effectiveness of banner ads and traditional forms of marketing. Additionally we are all very aware of falling printed advertising value as more and more people use the internet as their primary source of information and entertainment. What this means is that marketers must shift their traditional perceptions of advertising and marketing and adjust to a new set of rules that govern digital marketing.
- Social Spaces are powerful arenas for consumer opinion and they are democratic
- Generally, people do not like advertising and especially don't seem to like it in social spaces
- Consumers are sophisticated and trust each other more than businesses for brand recommendation
- Consumers have the ability to filter out unwanted noise; advertising is the first to get filtered
Sunday, 12 April 2009
Was Jesus the first Social Network Marketer?

- Relevance -- keep the message relevant to your audience
- Consistency -- keep the message consistent so as not to dilute it or create confusion
- Sharing -- make sure that your message is packaged so that it is easy for people to share
- Seeding -- put the message out in as many relevant places as possible to ensure it will be seen or heard
Friday, 20 February 2009
Marketing Minute: Business needs Social Media
Tuesday, 17 February 2009
Marketing Minute: What is Social Media
Friday, 6 February 2009
Business says video most effective
A recent interview with Schwab's Mike Naughton, VP of media and central marketing has put a focus on the effectiveness of video showing a 20% increase in consumer response over nonvideo online campaigns (banner) as reported by emarketer.
"We noticed that consumer interaction with video ads [in the “Talk to Chuck” online campaign, which ran from September to December 2008] was 20% higher than it was with nonvideo creative."
These results are being repeated with great predictabiltiy. Therefore it is no surprise that business is positioning their marketing strategy around these impressive statistics.
A study by Reardon Smith Whitaker and recently releaseed in emarketer shows clearly that online is a priority for advertisers and marketers, but in a consistent trend, banner advertisment (nonvideo) has fallen significantly out of favour.
PermissionTV also conducted a survey of advertisers to gauge the “tactics on which US marketers plan to focus their online marketing budget in 2009”, with the top response being video.
- 66.8% of marketers suggested that video would be their among their priorities for 2009,
- versus 22.8% for banner advertising.
Thursday, 22 January 2009
Data Driven: Small Business Missing Digital Opportunities
1 -- Don't spend too much on the website. Most business' believe that the website represents their entire online presence. When in fact, for the majority of business it is only a sign like the one hanging outside your shop. Its purpose is to get people's attention. And like the sign outside your shop, without additional marketing, only the people that walk by will see it. Therefore, spend enough to make your point, but remember, for most business' it is only a "virtual" sign and little more.
2 -- Spend your on-line marketing dollar wisely
Paid search - This can be very effective in getting traffic to your site, but it is usually the most costly form and has low conversion (e.g. sales). If you have specialised services or can absorb the costs this may be a useful tool. Key points: paid search means every time someone clicks on your ad you pay! So don't tell your friends to "check you out" because every time they click it comes out of your pocket.
Display and banner ads -- These are not as costly as paid search but have a lower effectiveness rate. Estimates put click through on display ads at about .04% with a much lower actual conversion (sales) rate. So what may appear to be a better deal based on impressions and cost per click usually ends up costing more per client However, display ads allow you to put a little piece of you on a web page. That is, unlike paid search which is only text based, display allows you to use pictures too (cool!)
Social network and video -- This is early days for this form of marketing, but case studies from Prosperity Research suggest that is is more effective than paid search and display on several dimensions; sustainability and cost per click. Video based social network marketing that utilises high quality video and word of mouth techniques has show to result in cost per click about 1/4 the cost of paid search and produce long term search engine results without additional spend.
When exploring your online strategy it is best to always determine what you goals are. Your budget and desire to engage your customer will help you prepare a plan that fits your needs. There is no one perfect solution to get customers storming your doors. Different customers respond to different methods of marketing. So keep it simple and remember the Internet is inherently free so if someone is trying to sell you something, make sure you are getting your monies worth!
Tuesday, 30 December 2008
VBlog: 7 Critical concepts every business must know
I look forward to your feedback,
Monday, 15 December 2008
Data Driven: People don't like advertisting??!!
So what can be done? Prosperity Research has been for years pioneering an alternative approach to promoting brands online. We believe it is just as easy to be interesting as be advertising. And, if you believe this study . . . well then people will like you.
Wednesday, 10 December 2008
Facebook: Old and dear friends

Wednesday, 3 December 2008
Data Driven: Everything in its place!
Research continues to confirm this. We see more and more persons of all socio-economic backgrounds moving online to find their information and entertainment. It is necessary to understand the unique dynamics of this space before launching in. This is a space driven by communication at a peer to peer level. This is engagement marketing, not distraction marketing. Businesses that understand this will be successful. Those that don't may find themselves without clear understanding why their most brilliant advertising strategies fail to garner attention.
Points to take away:
- The place for business to be is social networks
- The place for advertising is NOT social networks
Hitwise Intelligence - Heather Dougherty - US: Traffic to Web-only retailers increases on Thanksgiving and Black Friday via kwout
Tuesday, 18 November 2008
Aspirational Marketing: Naughty or Nice

Wednesday, 12 November 2008
Social Media Marketing is hard!

- It is hard work. Yes it is, there are no shortcuts to social marketing. It is about making friends the old fashioned like in the real world. Engage in meaningful conversations, be interested in the ideas of others, be consistent and available.
- Honesty not advertising. Any attempt to pass off advertising or to come across as insincere will result in immediate and long term repercussions
- It takes time. Like in the real world, building up a network of friends takes time and commitment. There are no short cuts to building long term relationships
So in the long run the lesson is simple. To truly participate in Social Spaces you must remember that you are engaging people on the individual level not on mass.
Wednesday, 29 October 2008
Financial Crisis: Your loss my gain!

There are a few tips to know when looking at the financial crisis and how to exploit it for your own gain:
- Everyone is more scared than you
- Most businesses over react
- Customers are desperate for confidence and reassurance
So how can you turn this to your advantage? The solution is surprisingly simple and can strengthen your short and long term position.
Everyone is more scared than you
It is true. Remember your survival is based on your ability to keep your cool and think and act smart. Don’t cut off your arm to save your finger. Make decisions that continue to keep the most profitable segments of your business vital. Additionally, you must not neglect any area of your business. Provide a strong showing of confidence for your customers.
Most businesses over react
Businesses in difficult time usually have one response or actually three that look very similar; freeze, cut and fire. Because pulling away when all your competitors are doing likewise only creates a greater gap of opportunity to be filled, and since bigger businesses are often less capable of manoeuvring deftly, smaller more flexible companies often have an advantage in filling this opportunity gap.
This is the time to strategically review your marketing approach and utilise channels that reach your consumers at the level that most touches them and provides verifiable metrics of success. That is why we have seen an immense surge in Social Network Marketing amongst smart companies recently. It touches consumers at their level, is cost effective and provides measurements of success.
Customers are desperate for confidence and reassurance
In troubled times we need reassurance. This is evident in the amount of activity of CGC in social sites. Average people are talking to each other, sharing thoughts, ideas, solutions and comfort. What is also noticeable, is that business is not sharing in these conversations. Instead, in a display of ignorance or insensitivity they continue to advertise, thereby missing the opportunity to connect in a meaningful way with consumers about issues that are relevant to them.
In summary, it is quite simple on how to gain reward in the financial crisis. You must simply ask yourself what support you would want in difficult times and that is probably what your customers want too.
Monday, 20 October 2008
Data Driven: What Men, Rich Women and China Love
Men, Sex and the Internet
Unremarkably, Break Media reported that men prefer sex to most anything else. That is not terribly remarkable, but they also reported that for the first time men spend more time online than watching TV -- that is remarkable!
Women love shopping . . . online
Another unremarkable set of data reported by the New York Times shows that women love to shop. Wow, that is a show stopper. What is remarkable is that affluent women love to shop online. The urban myth has always been that ladies who lunch prefer to do their shopping in person. Whereas it is very important to see and be seen, who wants to be seen squeezing your size 8 bum into a size 6 pair of jeans? Some secrets are better left to the privacy of home I guess.
China loves the Internet
Unremarkable is that online ad/ marketing budgets are gaining an increasingly larger percentage of total spend. Even in these uncertain economic times, digital budgets are increasing because they have a a more accurately measured ROI. What is remarkable is that China is exploding!!! A 40% year on year increase in online budget spend tops anything imaginable. Go China go!!!
Sunday, 19 October 2008
Social Network Marketing: Catch More Flies With Honey

- Read the newspaper for the news, the ads are little boxes next to the news
- Watch TV for the shows, the advertisements are for snacks and toilet breaks
- Surf the web, the advertisements are the banners around the interesting content, and banner ads served all around them
- Videos on the internet now have advertisements tagged to the front and back of them
After all this time you would think that someone could have come up with something a bit more clever. But the reality is, since the beginning of time the same method of serving up advertising has changed very little. And not surprising people's views on advertising have changed even less.
If people don't like advertising and people do like engaging content (e.g. news, tv shows, web pages, and videos) why is it an impossible leap for advertisers to just start creating interesting content and say "forget it" to advertising.
Well the truth is most likely of three sources.
- With an industry as large as the advertising business, it is unlikely that even if it wanted too, it would or could change quickly
- Old habits are hard to break, and consumers support the old model, even if they don’t consciously want to
- Well, I can't think of anymore
Thank goodness for Social Networks. With the creation of Social Networks each individual now has the same ability to influence as big business has traditionally had. Collectively, individuals on the internet can now make or break a brand by their input. Now content created by individuals is viewed more often than professionally produced content making the internet a truely democratic forum.
So, like in any true democracy, you need to vote for what you like and against what you don't. Therefore, if you like content vote by clicking on it. And if you don't like advertising -- don't click on it!!!
Wednesday, 8 October 2008
7 Things You Must Know about Social Marketing
Paradigm shift is how I have referred to the unparalleled increase in influence of Social Network spaces on most all aspects of our lives. In this blog I have written about the 7 required shifts that businesses need to make to survive the move from real world to digital. I will continue to articulate and refine these shifts because they are at the core to business’ success in the digital world. To survive business must move from:
1. Advertising to Interesting
2. Me to You
3. Side to Centre
4. Viral to Social
5. Video to Burst
6. Push to Pull
7. Print to Pixel
Taking these on board is not as easy as reading this blog. Steering clear of the many pitfalls that line the path to change is not easy. Very few "Social Marketing" companies actually do social marketing. What they do is attempt to cut and paste old school methods into the new world and we all suffer badly for their ignorance. Good luck on your journey.