Social Media Success: China video sites critical factor

It is well understood that consumers are viewing a significant amount of video online. It is quickly becoming the CMO's media of choice for online marketing. However, creating a video is not in and of itself sufficient to make it successful. There are many variables that can effect the success of online videos. This post focuses on social media video views based on hosting location and the top sites from data collected between December 2008 and May 2009. The two main locations where consumer uploaded video is hosted are China and US/Europe.

The videos tracked were part of social media campaigns launched by Prosperity Research for a range of clients which include fashion, sports, legal, charities, hospitality and many others. During the period from December 2008 to May 2009 101 videos were released. The majority of the videos were English language videos with Cantonese and Mandarin subtitles. The break down of number of Chinese and US/Europe video hosting sites were about equal at 24 US/Europe and 22 Chinese. After review, sites with negligible views or were closed during the study period were excluded. The remaining sites totaled Chinese (18) and US/Europe (19).

The videos were posted to the sites using the same title and description across all sites. The only differentiating factor was that on Chinese language sites the title and description was translated into Chinese. The views tracked were those recorded by the site. This study makes no claims to the accuracy of view counters on these sites with one exception. The China site www.9mv.com recorded view rates that appeared too exaggerated to be accurate and the site was eliminated from the analysis.

The two comparisons of video views are a comparison of total views during the period on the sites included in the study. The second comparison of views on the top 3 sites from China and US/Europe.

Total views of videos by location:

Top viewed sites for China and US/Europe

Summary:

The results of the analysis provided some surprising information. The expectation was that the US/Europe sites hosting predominately English language videos would receive the majority views. However, the China sites significantly outperformed based on number of views. There was also the expectation that popular China video sites www.youku.com and wwww.tudou.com would have been top performers but they did not make the top 3 spot for China. This first analysis does not provide clear reasons on why China video views outpace those of US/Europe at this point, but the results clearly point to the importance of China video hosting sites as a critical component of a social media campaign.

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

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.

Data Driven: Video 8 :1 over Banner Ads

The data is in from Adtech. 10 billion clicks were counted from across Europe and what early analysts predicted is now being proven true. Banner advertising is on the decline in effectiveness and video is on the rise. Banner advertising CTR has fallen from .4% approximately a year ago to .2% at the end of 2008. Whereas video continues to gain the consumer's attention with an average CTR of 1.7% and climbing. This is 850% better than traditional banner advertising.

The Latest Ad Click Count - eMarketer via kwout

Additionally, video use on commercial websites is quickly approaching 100%. A recent survey of vertical sites showed that, on average, 79% of sites surveyed where using video. 59% had it placed on their home page. A number of factors is motivating this movement. The first is technology. Streaming video no longer places a burden on infrastructure and many SaaS provide hosting often for free. Second is that video is a powerful communication tool. It captivates and engages more effectively than print or still images by engaging several senses at once with the attraction of movement.

Website Video Usage Statistics - How Companies & Sectors Use Website Video - ReelSEO via kwout

It should not come as a big surprise that people enjoy video. We have been captivated by movies for a very long time and most of us were raised by TV. It only stands to reason that it would become our online communication tool of choice.

Social Media: Playing to the strengths of People

It has been long known that different people learn in different ways. In university psychology these "different ways" were called modalities. We all know that some of us prefer to read while others can listen with precision and others prefer waiting for the movie to come out. This is one of the great flexibilities of social media; it can be all of these and more. Additionally, improving the impact of a message can be greatly enhanced by delivering the message in different ways at the same time. Example: mixing pictures and text or video and subtitles. In a recent study a huge increase in viewing time of videos was demonstrated by adding subtitles, mixing video and text.

plymedia-subtitles-online-video-test-results-march-2009.jpg via kwout

When we think about it, most of us know this makes perfect sense. Demonstrating once again, that going back to our psych 101 text books can give insight into the workings of social media. Much can be gained by understanding people. After all Social Media is about "Social". We as an industry do not need to be Psychologists or University professors to figure this out. It usually is no more complex a problem then looking to our friends, family and ourselves to see what they "are doing". Often we will find a discrepancy between what we want to believe people will do and like and what is the real situation. After all we all want to believe that the work we produce is the best. However, in real life, probably only our mother will love it without question and for everyone else the jury is still out. Pragmatics is the success to Social Media. KISS.

Much Success,

Doug

Social Media Monetisation and equivalent media buy

There has been much talk on how to monetise social media marketing techniques. The amount of speculations does seem warranted based on the industry figures associated with social media marketing and the vast amount of money that potentially is up for grabs.

• Growing at a rate of 2:1 over other internet activity
• Second most trusted source of brand information
• Video growing at 50% year on year
  
• Video based marketing enjoys higher CTR
• Digital budgets grow while print, radio and TVC shrink

If you operate a social media platform (e.g. Facebook or Twitter) the answer may be a bit foggy. But if you are an social media marketing agency the answer is clearer; equivalent media buy!

When discussing the costs and advantage of social media compared to other online strategies it is often about comparing apples to oranges. Social media is about engagement and consumer content, whereas paid search and display ads, SEO and SEM work differently. Making the argument for the benefit of social media can sound a bit esoteric when the bottom line is at stake.

However, if you engage in a results based discussion

• Search engine results
• CTR
• Conversion

then an apple to apple comparison can be made against existing SEO, SEM, paid search and display ad budgets. So sell social media's clear advantage over traditional and familiar online marketing strategies where you can capture existing budget by proving equal or improved results instead of attempting to sell the "unknowns" of social media. Once the sale has been made then the additional value of social media will become immediately clear and evident and will sell itself going forward.

Prosperity Research has activated hundred's of social media campaigns and a summary of the finding shows a cost comparison against paid search and displays ads as:

Social medial campaigns average about US$ .12 per view/ click
Industry rates of .1% CTR for display US$ 1.25 per click
Average cost of key search term in 3-6 space US$ 1.00

In summary, our survey of campaigns based on apple to apple comparison of results show that social media costs can be significantly less than traditional forms of online marketing.

Social Media meets Public Relations

Are you in PR and wonder what Social Media's impact is? Well Douglas White and Simon Taylor shed light on this hyper hyped area from very different backgrounds. Learn what they believe is the factor for success. the Hong Kong PR Network hosted this event February 2009.

Marketing Minute: What is Social Media

Funny that we can find ways to keep talking about the same thing in so many different ways. I revisited some writings I made 3 years ago and pulled out a very familiar message. I then reviewed a blog entry I wrote 2 years ago and found it to be virtually the same. I am now creating v blog entry saying much the same, but this time I am moving. Well I hope you like my good effort. And I hope after 3 years of reading and hearing me talk about it, there is still something fresh and exciting to be found.

Asia to dominate online video market

Recent statistics coming out show Asia, China, South Korea, and Japan, to grow at a significant pace for online video viewing as reported by ReelSEO. These countries, along with Hong Kong and Singapore, enjoy huge Internet penetration rates and access to broadband. Consumers in these countries are showing an enormous appetite for online video as it quickly replaces TV and DVD sales as a primary source on information and entertainment. Keeping pace with this is online marketing spend. It is expected that in 3 years this will exceed 15 billion USD per year demonstrating a 50% increase. Prosperity Research has been anticipating this trend for more than 4 years now by advocating the use of video as a key marketing and communication tool. Now commonly referred to as Social Media it has many advantages over traditional models.

• Video is more compelling and engaging than static text or images
• Video crosses culture and language barriers better than text or still image
• Significant reduction in video production costs makes it competitive
• Effective alternative to TVC
• Affordable for SMB's
  
• Aren't things just better when they move?!

In summary Asia is seeing great resilience in surviving the U.S. based financial crisis and is poised to take the world's marketing solutions to a new level by leading in online video dominance.

Business says video most effective

It is an otherwise gloomy outlook for business with consumers spending less. Both offline and online marketing strategies delivering disappointing results for business. However, there does appear to be a silver lining shining through; video.

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.

Top Tactics for 2009 - eMarketer via kwout

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.

Though most of the statistics are based on U.S. data they are no less credible when applied to global or more specifically Asian markets. Asian online spend is growing at a pace impossible in the sated North American and European markets. It stands to reason that by logical extension, a trend that is siginificant in North America and Europe becomes history making in a market like China.

Data Driven: The Video Decade

Video is the number one growth rate for online marketing budget spend. Dwarfing all other categories with approximately 50% year on year growth forecast. Additionally, video is seen as the most important marketing tool for online retailers in 2009. This is largely due to the 40% increase in retail videos views and it being attributed to overall sales and customer satisfaction

Ad Network Prices Take a Hit - eMarketer via kwout

Retailers Take Note: Video Sells! - eMarketer via kwout

Ad Network Prices Take a Hit - eMarketer via kwout

Data Driven: Small Business Missing Digital Opportunities

SME's are missing out on the greatest marketing opportunity ever made available to them; moving on-line. Traditionally small to medium businesses have relied on expensive marketing solutions such as print and TVC largely because these have been the only channels available to them. However, with on-line being where consumers are these days, why are more business' not taking advantage of on-line opportunities? Here are some basic guidelines for being more effective online.

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!

‘Great Divide’ Separates Small Biz, Online Consumers 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: Social Media A Must Do!

A continuous show of force for the value of digital marketing and especially Social Media. This is NOT ppc or banner ads! This is true social network marketing. That is, interacting at a peer to peer level with content sharing and interaction between business and customers that looks, feels and is the same as when two customers interact in social spaces. The audience of one is now! Being able to understand what this means is critical to business' success in the digital space.

Social Media Presence - Why You Need One — Social Media Optimization via kwout

I now spend more time watching videos on my tv than watching terestrial tv on my tv.

Google Trounces Web Video Competitors With 5 Billion Views via kwout

Even brick and mortar stores are finding a space in the digital frontier.

Social Media and Retail — Social Media Optimization via kwout

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!!!

Data Driven: Stocks down, video up, online ad spend up, social sites up

As the financial crisis worsens more and more businesses are turning to online advertising for better ROI. They are especially finding the use of video and social networks to be the most beneficial. Print media is taking a hit and TVC is losing ground. The budget tightening requires more precise targeting, higher conversion and visible metrics that traditional marketing channels do not provide.

Online Video Ads Are a Good Bet in a Recession - ClickZ via kwout

Internet Ad Revenue Up 15.2% in First Half of 2008 via kwout

Consumers Await on Social Networks - 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

More Money More Ideas More Communication

The latest data just in. Not surprising the statistics continue to show an overwhelming level of confidence in the internet as the surest way to reach an audience as measured by ad spend. But what is most interesting is that businesses originally reluctant to move into social media are not finding an expanded way to utilise them. B2B on the social network scene is hotting up. The last bit of data is the line up of highest volume blog sites. Blogs are an important and flexible way to get your message out.

Web Video Ad Spend to Grow Worldwide - eMarketer via kwout

Social Networks Get Down to Business - eMarketer via kwout

Top 10 Blog and Personal Websites - July 2008 via kwout

Burst: Changing Communication Forever

Information bombardment! If information was water we'd all be taking a shower under Niagara Falls every day! If we read, watched and listened to everything that passed in front of us in a day it would probably take a full year just to get through it. The result is consumers filter what comes in and are selective of how they get it? What can business do? Start by understanding the problem and then do something different: Burst!




Handling information

-- Selection what you take in: 30 people talking in a room and you can't hear a thing, but someone says your name and your ears prick up
-- Medium of choice: We all have our favourite ways of getting information, from water cooler gossip to podcasts

Selection

Tools with which we receive information continue to improve and consumers naturally find ways to manage this information. From simple spam filters on mail programs to personalalised aggregated feeds, the modern consumer is finding ways to process information so that only relevant, high quality and desirable content reaches them. Delivering interesting content creates a loyal audience. Spam gets dumped.

Medium

Different people process information differently. Some people are visual, others are better listeners and some just need to do things themselves. There are many factors at play into why different people receive, manage and take in information differently. Such things as biology, education, availability, economics and culture all play a role in this, but the truth is this will not change. Deliver content in a way that consumers prefer and they will keep coming back.

Solution

Selection and Medium where the motivation for Prosperity Research Ltd to create a new process/product; the Burst. We understand that people will naturally select information that is relevant to them and they will choose to receive it in a manner that is convenient. Therefore, the most effective communication strategy fully optimises a message across a range of communication mediums and ensures the message engages, enhances and entertains your consumer.

The Burst

Prosperity Research Ltd. has gone beyond marginally effective banner advertisement and paid placement with a proven way to effectively and honestly present content in the Social Network spaces controlled by consumers. By creating a concise message in video, blog, forum, bookmarking and other formats that creates a reticulated multi-channel release of information tailored to a wide range of consumer preferences we can maximise consumer response and satisfaction.

Prosperity Research Ltd.specialises in content created for the consumer controlled Social Network space which requires treatment different from other communication mediums and each online channel has its own special requirements. Recommended:

-- Keep it short
-- Keep it relevant
-- No advertising
-- Make it easy to find
-- Keep it honest
-- Be polite
-- Less is more


The end game we are all playing is to get our message seen by consumers and have that translate into revenue. It is the old adage made anew; give the customer what they want!

Online Activity Dominates Our Lives

8 video myths debunked - iMediaConnection.com via kwout

Just 10 Sites, Apps Averaged at least 500MM UK Online Minutes per Month via kwout

A new online game in China every 10 days; 79.5 million Internet users via kwout