Consumers lead and business follows

With the exponential growth of social sites and the empowerment of individuals to create their own “15 minutes of fame” in the digital realm it is no wonder that businesses are starting to recognize the potential. Almost a year and a half ago I started writing blogs about this trend and at the time I was continuously puzzled by the lack of enthusiasm by business for this unprecedented opportunity. I thought that this was miraculous. You had your customers in a single place (social site), telling each other what they liked and willing to listen to what others had to say. It seemed like a marketing dream. Well business is finally catching on, if a bit late.

In our office we always knew that when business decided to jump on the band wagon it would be a huge and dramatic shift. Well it is happening and it surpassed even our expectations. Recent industry studies provide some startling, if not exciting, statistics:

• Chief Marketing Officers in Asia and North America rate Social Networks, video and video sharing as their top priorities
• 88% of marketers are currently using Social Media in some capacity
• Over 90% of business owners are using Social Media

This begs the question; why are business owners more likely than marketers to be using social networks and media?

I think the answer to that lies in the nature of social networks and the democratic quality they afford. In social networks the consumer is king and each has a more or less equal voice. Where once tools of marketing were limited to those with skills or money this is no longer true. Anyone can use Facebook (over 200 million members) or YouTube and a camcorder. With these resources available, even small business can create masterful marketing campaigns with modest budgets and ability to reach clients with little concern for normally typical restrictions such as geographic location. Of course managing an effective campaign is always best handled by professionals so kids don’t try this at home, ha ha.

In summary what is known is that business is now catching up with consumers in social networks and media. Because of the ease of use, consumer control and democratic functioning of social networks and media, small to medium business are achieving good success in utilising these resources and this is clearly seen in the industry statistics.

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,

Social Network Marketing: Catch More Flies With Honey

Web 2.0, rich media, social media, social networks what ever you want to call it, IT IS DIFFERENT. In this blog I write tirelessly about the need to largely abandon much of the traditional advertising methods that have been in place for eons and embrace the wonder that is the new medium.

Since the beginning of time advertisers have been positioning their messages "next to" interesting content:

• 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.

1. With an industry as large as the advertising business, it is unlikely that even if it wanted too, it would or could change quickly


2. Old habits are hard to break, and consumers support the old model, even if they don’t consciously want to


3. 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!!!

Always a Bridesmaid, Never a Bride

There is a significant industry built around the idea that if you stand next too, wear the same clothes, drive the same car etc. you will be as magnificent and glamorous as the people in the advertisements. We all know that this acquisition of fabulous attributes through proximity is absurd. So why is it that advertisers continue to push on businesses the concept of placing their advertisement next to interesting content is the preferred, if not only, method available? After all, it is still advertising and no matter how engaging the content is it is placed next too; it is will always be advertising. Would it be better if the advertising was really the interesting bit?In the digital age it is now easy for anyone to develop content and distribute on the internet. So why should businesses settle for "being next to" when they can be the "centre of attention". That is right, everyone can now be a bride and all of us are the better for it. Imagine if all the money that was spent trying to attract your gaze away from the interesting content was spent on making interesting content in the first place.

All of us are sophisticated enough consumers that we would certainly "get it". After all we know that if we want to be a star athlete like our heroes we will need to buy the kit. And if we want to catch the babe we need the car, clothes and cologne.

Prosperity Research is working hard to educate small and medium business' that it is O.K. for them to be the centre of attention. They do not have to be a 2 inch square advertisement at the bottom of the weekly paper. They can create rich media to WOW their customers,

So if you had your choice, would you be advertising or interesting?

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

Marketing going digital, content more interesting than ads, people like themselves, Duh!

In this installment of my data focused blog I again get to point out the obvious. I do this because despite an overwhelming amount of data that never varies in its direction, many are still in denial. And so I continue to beat the drum until everyone gets the beat.

Marketers #1 wish for 2009 is for agencies to get better at digital! Marketers believe that 50% of all budgets will be spent on digital media. Agencies are ill prepared to fill the gap. Prosperity Research has been the thought leader in this area for several years and we continue to marvel at how large agencies continue to stumble. What is worse is the attempt to cut and paste traditional marketing strategies into the digital realm as if it is as easy as that. Digital marketing has a whole different set of rules and the old rules do not apply.

Marketers’ Top 10 Wish List for Agencies of the Future via kwout

Paul Brienza, SVP Laughlin Constable, gets serious brownie points for stating the obvious and completely missing the point altogether. Mr. Brienza first points out that advertisers want to put their ads in the content area of web pages because content is more interesting than advertising and people look at content and avoid advertisements, duh! Secondly, has Mr. Brienza ever thought that maybe instead of making advertising that people don’t enjoy looking at a business could invest in creating content that people do want to look at? Duh again! Prosperity Research has been doing this for years. We never create advertising because we have always known that nobody likes it! Be interesting not advertising!

Social Networking for Baby Boomers - eMarketer via kwout

I will not rail much on this one. I wrote about this in last weeks blog and simply put, people are interested in themselves and their own issues. Products and services are only interesting to individuals if they meet their needs. So if you want to reach your customer base you need to switch your communcation style from ME to YOU.

Web Ink Now: Nobody cares about your products and services (except you) via kwout

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

From Viral to Social

In this blog I discuss the difference between viral and Social Network Marketing and why, depending on your goals, viral is still something best left to your doctor and not your Advertising agency.

"Viral -- not a living organism, it can only reproduce by infecting its hosts and contaminating its genetic code"

The term viral has been useful in describing a type of marketing effect that results from personal sharing of social media. The process is simple; one person shares it with two people, those two shared it with two more and so forth thereby creating an explosive rate of growth in a short time frame. Pre-Internet this effect would not have been easy or even possible. Can you imagine trying to throw magazine ads at 20 of your closest friends and then have them throw them 20 more at their friends and so on? Limitations of non-digital media prevented this "viral" phenomena from occurring.

Viral was a great boom for marketing gurus for a number of reasons:

1. Lower production value seems to work best translating into lower cost
2. Customers provided the momentum further reducing costs
3. Placement of content on consumer generated spaces or Social Networks greatly reduced costs normally associated with media buys.

Despite these strong upsides, as one might expect from a virus it is not all good. Translated into marketing terms the negatives of Viral marketing can be largely described as:

1. Low brand control
2. Brand message limited
3. Customer relationship loyalty low

Viral has become a very popular tool in the modern marketeers arsenal and an occasion benefit to brands. So what are the options to preserve the good and minimise the downsides. The recommended is Social Marketing.

"Social -- pertaining to, devoted to, or characterized by friendly companionship or relations"

Social marketing uses the same forces that Viral marketing uses; word of mouth and grass roots energy. However unlike its viral counterpart the focus is more on connecting with consumers and less upon eyeballs.

Social Network Marketing, at its core, is about creating interesting content that incorporates a strong message and exercises strong brand control. Strong brand control does not mean "advertising" it only means that the content should reflect the brands personality or DNA so that consumers can see a clear link between the two (content and brand) and benefit from the association.

Social Network Marketing is usually more targeted in its content so as to appeal to particular demographic as opposed to the more risky alternative of trying to appeal to every ones taste. This could result in fewer views but it significantly increases the likelihood that the people watching are appreciating, understanding and developing loyalty. One of the significant standout features of Social media done well is that it engenders ownership and connectedness to the content. Whereas viral tends to be expendable and transitory.

Social

1. Exercises strong brand control
2. Is interesting and relevant
3. Designed for a targeted population but maybe interesting to many
4. Develops audience and loyalty through relevance
5. Utilises word of mouth to gain momentum
6. Benefits from lower production cost which provide a grass roots look and feel


Everything evolves and it is time to move past the concept of viral as the optimal achievement. More sophisticated analysis shows that it is better to have 100,000 views by potential customers and 1,000,000 views by random persons unlikely to benefit. A move away from a pure viral approach is a benefit for both consumers and brands.

Consumers benefit from receiving quality, relevant content that enhances their lives and brands benefit by being able to stay true to their core message.

As more and more content is generated, consumers will become increasingly selective in their viewing habits. Occasionally choosing the frivolous, but more often selecting the familiar.

From Advertising to Interesting

When I see articles like the one displayed here questioning the vitality of Social Networks as a viable marketing channel I laugh. And not just a giggle either, it is a full on belly laugh – all the way to the bank. Social networks are “social” places. Traditional advertising and cut and paste print advertising does not work and has no place in them. Attempting to use these methods to reach consumers is on par with placing a square peg in a round hole. The term Behavioural Targeting gives me another giggle. Huge amounts on money, brain power and industry effort is put into this exercise. It is the real world equivalent of a dog chasing a car or a moth drawn to a flame. But being the moth is never the same as being the flame. So behavioural targeting will always be a less effective strategy than being the flame or being interesting.

Has social media lost its luster? - iMediaConnection.com via kwout

Changing from Advertising to interesting is the only way to fully reach your consumer market in Social Network spaces. Move your content from the side of the page, banner ads, to rich and engaging content in the middle of the page. Not only is it inline with what people expect to see in Social Network spaces but, unlike banner ads, its placement is free. What does this mean? Simply become a content provider that interacts with consumers as they would with each other and do it honestly.

Some easy steps to becoming interesting

• Think of yourself as a personality not a product
• Create content that engages consumers (e.g. ask a question)
• Follow up – one time placement is not much different than spam
• Is it something you would send to your friends?
• Evolve over time, that is reveal more and different aspects of yourself
• Value the relationships you build with consumers

How do you make behavioural targeting work for you? Behavioural targeting is a good predictor of what people want. Rather than using it to place banner ads, use it as a predictive tool to place content they want where they want to see it. Offer more not less to the relationship and it will pay dividends.