Why Social + Mobile = Shopping

July 27, 2010

What happens when you take two hot growth areas—Social Networks and Mobile–and combine them with good old fashioned shopping? You get a phenomenon people are just now beginning to understand: the convergence of Social, Mobile & Shopping—let’s call it SMS for short. 

SMS - Social, Mobile & Shopping

 

What’s the SMS convergence? It’s the increasing ability of shoppers to use social networks to inform their shopping experience, access information about products, and broadcast their product experiences – all in real time via their mobile phone. 

Let’s look at the trends in Social Media and Mobile that are powering this convergence. 

Social Media Trends

  • Social networking penetration is increasing.  Facebook now has over 500 million users, growing its user base by +69% from 2009 to 2010.
  • Consumers are spending more time with social networking.  In the past 3 years, the average time spent has risen from 2 to 6 hours per week.
  • Social networks are mass.  There are now more people aged 50+ using social networks than people <50. They’re not just for students anymore—anyone can be reached thru social networks.

Facebook: Social Networking Growth

 

Mobile Trends

  • Penetration is growing. Within 10 years, there will be as many mobile phones in use as there are people on the planet.
  • Smartphones are taking over.  Smartphones are growing disproportionately fast. It’s projected that by the end of 2011, more people in the U.S. will use Smartphones than standard cell phones.
  • Usage is becoming more sophisticated.  With more Smartphones, come more apps. The average Smartphone user has 22 apps versus only 10 for regular cell phones.

Smartphone Penetration (image from Nielsen Wire)

 

How Social Networks & Mobile Intersect

The stats above probably confirmed what you already knew: Social Networking and Mobile are high growth areas. What you may not have realized is this: Social networking and Mobile are increasingly intertwined. Specifically, social networking apps are: 

  • #1 on the iPhone
  • #1 on the Blackberry
  • #2 on Android phones

It’s easy to see where this is all going. Social networking on Mobile is going to get bigger, more sophisticated and more enabled over the next few years. And this has some interesting implications for shopping. 

Social Networks & Mobile

 

Enter Shopping – A Social and Information Driven Activity

Social networks and Mobile are ideally suited for shopping. Why? 

First, shopping is a social experience.  People love to shop, but they really love to shop with other people. Unfortunately, this isn’t always possible. Enter Social Networking on Mobile. 

Second, shopping is about finding the right product at the right price.  This requires information. Consumers can access the opinions of their friends and acquaintances as they shop. And they can get real time access to valuable information—pricing, quality, etc.– about products and services. 

Third, people love to share their experiences with products and services.  Going forward, consumers will be able to broadcast their own shopping experiences via mobile, to both friends and others, and in close to real time. Had a bad experience with the service desk? Consumers will tell everyone they know—before they leave the store. 

Social Media & Shopping: Users Share Experiences

 

5 Actions for Marketers

The SMS convergence has numerous implications for Marketing organizations. Here are 5 to think about: 

  1. Brands must be open and transparent to win in this environment.  As I wrote in a previous post,  consumers are becoming more knowledgeable about your product and your company. The merging of Social and Mobile only accelerates this trend. Brands cannot afford to hide.
  2. Brands have an opportunity to improve their consumers shopping experience. Brands can now create apps and content that make their target consumers’ shopping experience better. Better could mean simpler, easier, more social, or any other improvement that’s relevant to their shopper.
  3. Brands must invest in creating Social CRM capabilities. Jeremiah Owyang has written extensively about the need for Marketing organizations to create social CRM capabilities. That is, to create a function to listen and engage with consumers in authentic dialogue about your brand.
  4. Brands can drive Social Shopping.  Making the buying process part of a social event is increasingly feasible. Disney recently created a Facebook app which enabled friends to buy movie tickets for the same movie. This is a great example of social shopping.
  5. Brands should experiment with shopping based App advertising.  The advent of Apple’s iAd system opens up a whole new advertising platform. This will create all kinds of new opportunities to advertise to consumers in context relevant ways. Imagine your target consumer walking into a store, snapping a photo of the UPC of your competitors’ product via a shopping app to learn more. Is this a place you might want to advertise?

SMS – Now or Later ?

SMS, like most changes, isn’t happening overnight. So, there’s always a tendency to say “it’s not big, let’s wait to see where it goes…” But the trends are clear and CMO’s need to pay special attention. 

It would be wrong to suddenly shift huge amounts of your Marketing budget into a largely unproven set of opportunities. Yet, the most prudent CMO’s will invest in a measured approach to learning what works and what doesn’t, and ultimately learn how to win in this nascent but increasingly important space. 

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What Drives Branded Integration Success?

February 1, 2010

From my January 19th guest post on Joe Pulizzi’s blog  Junta42:

Instead of using your own content marketing to surround and reinforce your brand, what if you put someone else’s TV program content around it instead ? Branded Integrations, done right, use TV program content to drive your brand. The problem, though, is that most Branded Integrations come about by happenstance and not by use of proven tools and techniques. Here’s how to successfully use Branded Integrations as part of your Content Marketing portfolio.

Branded Integration – A Short History

Branded Integration has a long history, arguably as old as publishing itself.  The Lifesavers brand was integrated into the 1932 Groucho Marx movie “Horsefeathers,” and Spielberg’s “E.T.” featured the first paid candy integration: Reese’s Pieces. National Geographic had a starring role in the 1946 movie “It’s A Wonderful Life.”

Reese's Pieces in "E.T." -- the first candy branded integration.

Procter & Gamble and Unilever sponsored soap operas continued the trend. More recently, companies have taken branded integrations even further with video games and even programs designed around TV commercial characters (Geico Cavemen).

Given this long history, it should come as no surprise that Branded Integration is big business: PQ Media estimated 2006 product placement spending at $3.1B.

Is This A Good Idea ?

Being big and being good aren’t always the same thing. Does Branded Integration really work? Certainly, the large spending would lead you to think so. However, the usual process for developing branded entertainment – haphazard and creative driven — often leaves something to be desired. A branded entertainment company executive once explained the process something like this:

“The studio sends us a script. We break it down. We look for our clients demographics and then we tell our client this movie is available with this actor, with this director, with this producer, do you want it?”

Is this really the way companies should be deciding to spend $3.1B a year?

Beyond the :30 spot: Executing Branded Integrations

Beyond the :30 spot: Marketers need criteria for executing branded integrations

What Really Drives Branded Integration Results?

There are four keys to making Branded Integration work as Content Marketing for your brand:

1.  Choose the Right TV Shows – The best way to get high brand recall and brand opinion shift from your Branded Integration is to pick a show that fits with your brand and has high scores historically for Branded Integrations. Predictive models which isolate the factors most impacting brand recall, opinion shift, and fit with brand generally show that over 50% of the models’ variation are driven by TV show selection. Fortunately for Marketers, there are now syndicated panels which measure TV program Branded Integration effectiveness – so you can know a program’s track record ahead of time.

2. Design the Most Impactful Integration – Having selected the right genre and program for your integration, don’t just rely on the network and agency to tell you what the integration will look like. You need to negotiate for what really works. And what works, based on predictive modeling, is the following:

  • Involve Your Brand Longer – The duration of the integration makes a big difference; longer is better
  • Visualize Your Brand Icon – Don’t accept just an audio appearance; your brand needs to be visualized
  • Have Your Product Touched or Worn – It’s key to have characters physically interact with your product
  • Connect Your Brand to a Main Character – Physical interaction is good, but interaction with the main star is even better

These factors have been proven through research to be the most important creative factors in determining brand integration recall and positive brand opinion shift. Make sure that your execution includes them.

3.  Advertise Your Brand During the Program – This seems obvious but is often overlooked. Nielsen IAG research shows that ads aired during a program with the same brand integration generally score better for recall, branding and likeability than the same ads aired outside the Branded Integration program. Said simply, there really is “synergy” between your Branded Integration and your ad in the same program.

4.  Execute Branded Integrations in Multiple Shows in a Season – Continuity is key. If possible, negotiate for a series based branded integration, instead of an episode. Why? Having a Branded Integration in previous episodes of the same series raises brand recall and brand opinion by about 1% per previous episode — for example, take Subway’s series integration in NBC’s “Chuck.”

Subway's integration in NBC's "Chuck" not only increased sales, but saved the series.

Subway's integration in NBC's "Chuck" not only increased sales, but saved the series.

Where Should Marketers Focus ?

Adding Branded Integrations to your content marketing portfolio provides another way to drive engagement with your brand (for more on content marketing, see “Build Your Brand with Content Marketing”). But, don’t just walk blindly into it. Choose the right programs, design the integration for greatest impact, advertise during the program and deliver integrations consistently for maximum impact.

So the next time your Agency calls with their next “BIG” branded integration idea, do your brand a favor. Ask the tough questions: Why is this the right show? How will the execution optimize impact? What’s the proposal for integrating my ads? Is this part of a longer deal? Most importantly, negotiate from a position of strength: use historical data and learnings about what really drives Branded Integration success to add another powerful element to your Content Marketing mix.

 

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What’s Wrong with Word of Mouth Marketing

August 17, 2009

It’s common knowledge that word of mouth (WOM) by people you know is the most effective advertising. Research corroborates this:

Word of Mouth -- High Impact But Low Spending: Why ?
Word of Mouth — High Impact But Low Spending: Why ?

Yet, most Marketing organizations don’t behave as if it’s very important. According to PQ Media, 2008 WOM spending was $1.7B, +10% over the previous year. Estimated U.S. Marketing spending ranges from ~$500B all the way up to $1 trillion; WOM represents only 2-4% of total spend. So, why the impact vs. spending disparity ?  The answer, I think, is two-fold:

  • Word of mouth remains a black box for most Marketers — it’s really hard to figure out and even harder to do well.
  • It hasn’t been easily scalable–either within a persons social network or beyond.

Word of Mouth vs. Viral Marketing

Some people differentiate between WOM and viral. WOM is described as one to few, viral as one to many; as well, viral includes sharing and resharing–usually via the web. I think this distinction is largely false as WOM can become viral–e.g. the recent United Airlines guitar video (4.9M views).

Word Of Mouth Marketing
Word Of Mouth Marketing

WOM should build your brand. The mainstream media love to report on highly creative viral videos–e.g. the T-Mobile sing-a-long in Trafalgar Square, etc. These videos do generate incredible amounts of viewing, but are they really building the brand ? Do they engage consumers to better understand how and why the brand is better than alternatives ?

Word Of Mouth — More Scalable in Two Directions

WOM is changing as the web enables two simultaneous phenomenon:

  • Vertical Scalability – The web continues to enable new ways for consumers to share information  both within their social circle and beyond. Sharing opinions and ideas through blogs, Twitter, YouTube, Social Networking sites, etc. has vastly increased the scalability of WOM, as one person can now reach most people within their social network instantly and of course, people well beyond.
  • Horizontal Scalability — The rise of social networks and OpenID, Facebook Connect and similar services will enable personal network portability. This means that friends and families–and their opinions–will be able to flow with consumers as they traverse the web and interact with products and services. So, WOM from your social network will now become available in places it wasn’t before.

Basic Elements of Word of Mouth

Given the rising importance of WOM, how can you harness this powerful opportunity for your brand ?

1) Define Who’s Talking – Within your brand users, there’s almost always a group of 10-15% of users who are “amplifiers.” These consumers have unusually large social networks and form part of their self-identity from sharing new information with friends and family. Similarly, there are important non-users who need to be identified as well — bloggers, heavy Twitter users, etc. who can disproportionately impact your brand.

2) Define What They’re Talking About — Amplifiers don’t just randomly talk about your brand. In fact, they tend not to talk about your core mainstream messaging. Why ? Because everyone already knows about it; they get no psychic reward because there’s nothing new. They tend to talk about and share things that are important to them and also new and surprising about your brand–positively or negatively. Conduct research among amplifiers to understand the main themes they are talking about.

3) Determine Which Mediums They’re Using – Where are amplifiers talking about or sharing your brand ? Off-line in casual conversations ? On-line via Facebook ? Understanding which mediums amplifiers are using to talk about your brand gives you insight into how to facilitate or enable these conversations. Do research to find out.

4) Understand What Receivers Are Doing Next — Understanding receivers is just as important as understanding amplifiers. Without a receiver there’s no WOM. Most important is to understand what receivers do after hearing a theme. Do they visit the store ? Search on line ? Visit the web site ? Consult another friend ? Share via Twitter ?

5) Test and Qualify WOM Stimuli — If we know who is sharing, what they’re talking about, in which channels, and what receivers are doing after the conversation, then what ? Using WOM themes, develop a range of stimuli — e.g. customer experience “moments of truth,” white paper/special user content, tips/how-to’s, personalized web micro-sites, etc. to help drive accelerated word of mouth. Run a small test versus control. Did you get more people to talk or share your stimuli ? What did listeners do afterwards ? Did you build your brand equities ? Increase consideration and purchase of your brand ? Which stimuli worked best ?

WOM is hard work. Like most Marketing, it starts with really understanding your consumer. But the consumer understanding work is not well understood. And WOM is even harder to drive in a systematic and disciplined way. As WOM becomes more important, it becomes increasingly important for Marketing organizations to increase their WOM capabilities and most have a long way to go. What’s your Marketing organizations WOM IQ ?

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6 Steps for Turning Digital Chaos into Brand Equity

July 23, 2009

From my July 21 guest post on Branding Strategy Insider:

The marketing landscape is increasingly chaotic and getting more so. The old world of command and control marketing messaging is dead. And marketers are woefully unprepared to deal with this new reality. In a recent survey, over 70% of CMO’s surveyed said they feel ill-equipped to manage their brands in this new digital environment.

The explosion in new media channels, and the increasing ease with which consumers can react to, create content about, and generally discuss brands is challenging even the best marketers. How do you manage your brand in such a chaotic consumer empowered world ? How do you ensure that consumers understand your brand equity and that you drive a single minded understanding of your brand promise ?

Explosion of Media Channels

Media channels — paid and otherwise — are increasing exponentially. YouTube, Facebook, Twitter, webinars, forums, reviews, etc. are only the beginning. Everyday brings new options. Who had ever heard of Stumble Upon a year ago ? Consumers ability to access these new channels, engage with other consumers, and talk back to companies has radically changed how Marketing organizations need to behave. And it’s going to get worse before it gets better. The Social Map below by Brian Solis shows how many different options there are–and the pace of change is fast.

The Increasingly Chaotic Digital Landscape (courtesy of Brian Solis)

The Increasingly Chaotic Digital Landscape (courtesy of Brian Solis)

6 Steps for Turning Digital Chaos into Brand Equity

Here are 6 steps you can take to ensure your brand effectively engages consumers with your brand promise in this increasingly complex and chaotic environment:

  1. Be Different, Special and Better — Let’s start with a basic truth. Your brand equity is what consumers think it is–not what you think it is. Unfortunately, too many brands have brand equities that are identical to competitors. So, the starting point is to have a brand promise, and delivery of it, that is truly differentiated–a basic truth too often ignored in today’s frenzied world of media and digital innovation.
  2. Know Your Target’s Media Habits — Consumers consume media content differently. Know your targets media habits–traditional and new, and don’t be seduced by the latest media innovation if your target isn’t participating. Map their usage. Then, listen to the communities that are conversing about your brand, understand their priorities and beliefs, and identify respected opinion leaders.
  3. Measure Marketing Contact Point Impact — Understand not just what your target is doing, but the impact of different contact points.  Quantifying the relative impact of contact points provides a data-based framework for deciding where to focus your limited resources. Word of mouth has always been important, and digital is making it even more so. Thus, it’s critical to identify your categories “amplifiers” who drive it.
  4. Equip Your Organization to Deliver the Brand Promise — Knowing your brands key contact points, you can then map organizational ownership to each of these. Many “old line” functions are being impacted by new media–e.g. PR, Customer Service, etc. Ensure that they — not just Marketing — really understand your brand promise, what it means, and how to deliver it.
  5. Organize your Team to Engage Key Media Channels / Amplifiers — Establish teams to engage with consumers across your most important digital channels. Equip them with the talent and skills to publish, respond, and engage–whatever is required to focus the discussion on your key brand equities.
  6. Create Value-Added Content — Consumers want more from brands than just a restatement of the brand promise. They want relevant and creative content that surrounds and supports it. Sometimes, they even want to create it. Do your homework to understand what kind of content your consumer wants, whether and how they can contribute, and how it can support and reinforce your brand promise.

Reactive, Proactive or Engaging ?

It’s natural to feel that some of your Marketing communications are reactive and some are proactive. But engaging your target audience over time in an intelligent dialogue that drives your brand promise is key:

  • Lead with your brand promise in new and creative ways. Engage with consumers to interpret it based on their values and needs.
  • Give consumers a voice about your brand and brand promise by enabling feedback, comments and user generated content.
  • Guide consumers back to your brand promise, even when they have a negative experience or point of view. Ask “how could we do better?”
  • Use value-added content that surrounds and supports your brand promise to make it easier to engage consumers.

The key point is this: focus your limited resources. Focus on the most impactful, highest consumption media channels. Focus on building relevant, value-added content to surround and support your brand promise. And then focus your organization on engaging with your consumers across the key media channels in a conversation that continues to reinforce, develop and deepen your brand promise. Why ? So that when consumers think of your brand, they think of one thing — how you’re different, better and more special than the other guys.

What is your brand doing to turn digital chaos into brand equity ?

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How the Future Social Web will Transform Marketing

June 29, 2009

In a recent white paper titled “The Future of The Social Web,” Forrester’s Jeremiah Owyang predicts the social web will  morph through 5 different stages over the next 5 years, wreaking havoc on the way brands market. In his summary, Owyang states:

“Today’s social experience is disjointed because consumers have separate identities in each social network they visit. A simple set of technologies that enable a portable identity will soon empower consumers to bring their identities with them — transforming marketing, eCommerce, CRM, and advertising. IDs are just the beginning of this transformation, in which the Web will evolve step by step from separate social sites into a shared social experience. Consumers will rely on their peers as they make online decisions, whether or not brands choose to participate. Socially connected consumers will strengthen communities and shift power away from brands and CRM systems; eventually this will result in empowered communities defining the next generation of products.”

Portable Social Networks

Consumers will still use Facebook, MySpace, LinkedIn and such, as they do today. What’s different is that OpenID, Facebook Connect, and similar capabilities will enable consumers to traverse the web, and have their networks flow with them.

The Future Social Web -- Transforming Brand Marketing ?

The Future Social Web -- Transforming Brand Marketing ?

The implications of this are potentially profound, given that ~50% of consumers now belong to at least one social network. And even more important, these “portable” social networks will bring data and knowledge that is more trusted than the content delivered via traditional marketing contact points.

Changes Due To Social Network Portability

Owyang points to a number of important changes which will be driven by portability:

  • Social networks such as Facebook and LinkedIn will aggregate member activities and preferences and sell or leverage this data with brands
  • Consumers, using OpenID or Facebook Connect, will be able to expose all or portions of their personal and network information to the web sites they visit
  • Web sites will be able to use the personal information enabled by OpenID or Facebook Connect to personalize consumers web experiences
  • Consumers will visit web sites and know to what extent the site has been frequented by their community, what their community thinks of the site, product or service, etc.
  • Social communities will feed data and insights about web sites, brand experiences, product and services, etc. to members on an as wanted basis.
  • Search results will account for user preferences, habits, as well as the users social network preferences

My interpretation: Social communities will play an increasingly important, and perhaps even dominant role, in the future. Brand Marketers are going to have to rethink how they organize and market their brands.  This is because the future social web will make “portable” the opinions, insights and knowledge of friends — which all research shows is much more trusted than virtually any other information source–as consumers travel the web and interact with brands, products and services.

Implications for Marketing

  • Social Network Segmentation — Segmentation will potentially move from traditional demographic, usage, or needs based schemes to social networks. Not necessarily the group of friends an individual belongs to, but the aggregated set of individuals that tend to be like them based on habits, practices and preferences.
  • Focus on “Amplifiers” – Influencers will become more important because they will be omnipresent. Word of mouth theory posits that 10-15% of any population are “amplifiers”–consumers with unusually large social networks who also are on the leading edge of sharing new information. These amplifiers will become portable and follow their non-amplifier friends and inform them as they travel the web. The future social web will enable marketers to identify these amplifiers and develop programs to interact with and influence them.
  • Personalized User Generated Content – Consumers will be able to see what their social network — either their immediate network or people like them — think of a given store, product or service, wherever they go on the web. Thus, user generated content will become more personalized–and more impactful. Marketing organizations will need to develop new tools to influence and monitor this new content.
  • User Experience Personalization — Consumers will come to your website, along with a wealth of information about themselves and their network. Brands can use this data to personalize the experience, recommend products, etc. Brands which fail to take advantage of this opportunity will be at a disadvantage.

Owyang is quite bullish in predicting all this will happen in the next 4-5 years. Personally, this feels a bit aggressive. But, there’s no doubt that if the world above materializes, even in 10 years, marketing will be a far different place than today with far reaching implications for how brands market themselves. The time is now to begin thinking through the implications of social network “portability” and how the Marketing organization of the future should be designed in response.


Publishing — The Future of Marketing ?

June 16, 2009
There’s a move afoot that suggests Marketing is morphing into Publishing. In a recent webinar by Joe Pulizzi, a thought leader for content marketing, and founder of  Junta42, Pulizzi advocates the creation of a “publications” function as a central part of any web 2.0 marketing organization. By publishing, I don’t mean just a magazine or newsletter, on-line or off, but rather a full-fledged ability to engage customers in content which surrounds and supports a core value proposition. Is this the future of Marketing ?
Is Marketing Becoming More Like Publishing ?

Is Marketing Becoming More Like Publishing ?

White papers have been around forever and are a staple of B2B marketing. Magazine and newsletters are nothing new either. But, the role of publishing and content in the marketing mix came into tighter focus in 2001 with the publication of “The Cluetrain Manifesto: The End of Business As Usual,” a sometimes over-the-top, but provocative treatise on how the web will (and has) enabled “conversational” marketing and the end of the “command and control” marketing hierarchy which reigned supreme for decades. The idea, fairly original at the time, logically suggests that marketing communications will become more complex, organic and conversational going forward.

This means that content will become more important–whether created internally or by users. Wikipedia defines publishing as “the process of production and dissemination of literature or information – the activity of making information available for public view.”  So, is Marketing becoming more like publishing ? Well, yes and no. By the traditional definition above, Marketing already is publishing. But the explosion of new media channels, information, user generated content, etc. all of which are being enabled by web 2.0, are taking content marketing to another level entirely. And this has major implications for the Marketing mix and organization.

4 Basic Content Questions

  1. Customer Needs — It’s so basic, it should hardly need stating. Content Marketing starts with your customers needs and your value proposition. There’s a tendency to rush out and begin development of content without asking basic questions like: what, if any, kind of content does my customer want ? How does content support my core value proposition ? How will it engage my customers and better meet their needs ? How will it differentiate my brand versus competition ? Answering these questions is key to deciding if a content strategy is right for your brand.
  2. Build vs. Buy – Content can be sourced internally or externally. Huge amounts of content already exist and the CMO needs to ask the tough questions: do we have any business getting into the business of creating content ? Can we really do this better than what’s out there today ? Are we better off simply buying or partnering to acquire the needed content ? What’s the role of user generated content ? Let’s face it–we’re an invention culture and need to be open to the idea that perhaps there really are others–even our customers–who could do this better.
  3. Channels – What are the most impactful Marketing contact points in our category ? Which channels–RSS feeds, blogs, news release, e-newsletter, Twitter, Facebook, etc. should we be using to communicate our content ? Are different channels required for different content ? How will they be integrated ?
  4. Organizational Structure and Processes — A new organization structure is needed for content marketing. Who creates new content ? Is it the old publishing group, or some new expanded function ? Content marketing demands new processes as well. Who approves ? When content drives organic exchanges between customers and the company, what legal and regulatory processes need to be in place to safeguard the company?

There is no doubt that Marketing IS becoming more like publishing. There are greater opportunities than ever before to develop content which envelops your core value proposition and enhances and differentiates your product or service versus competition. There are more channels to disseminate this content. And, new organizational structures and processes are required to manage this content in an integrated and impactful manner. If this is the future of Marketing, it’s one that offers Marketers greater degrees of freedom to win in the marketplace than ever before.


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