SnapTags vs. QR Codes the ideal 2D Experience

By now most of you have seen or interacted with QR codes in one form or another. Whether it was online, direct mail, etc… QR Codes are becoming a common tool in marketing toolkits.

qr_tattoo

While it is possible to leverage a small portion of a QR code to incorporate brand elements it is not the most aesthetically appealing execution for a brand. Also, QR codes currently require an application or software to read. While Near Field Communication or NFC is evolving it is still not widespread.

Red Urban QR Code

One additional issue is that QR codes are hardcoded upon generation. In order to manage the response destination changes would need to be made on the response side of the campaign such as changing content at the point of delivery or redirects to the desired response destination or use a premium QR management service.

QRCodePolo

As I look to execute campaigns that require enhancing product packaging, point of purchase, etc… I want a solution that is going to drive the maximum engagement potential with a low barrier of activation.

Initially I was an advocate of QR codes. I Provided POV’s on how to leverage the codes to drive engagement with mobile apps, sizzle videos, social destinations, etc…

Now I am looking to SnapTags more and more to drive that level of engagement for brands that I work with. A SnapTag is an aesthetically pleasing execution that provides multiple engagement options with the brand at the center of the experience.

inception

What I like about SnapTags is that the user has multiple options to activate and engage. They can simply text an image or e-mail an image of the SnapTag to drive the text or multimedia response.

inception-snaptag-640

The beauty of the SnapTag is that you are not locked into a single response destination. SnapTags support the ability to change the response as they are served via a database vs. hardcoded into the tag. This means that you can change the destination of the response without messy redirects off of the original response.

This is an ideal benefit if you want to drive different levels of engagement throughout the lifecycle of the tag.

Also, by driving activation via text or e-mail the SnapTag adds a CRM element to the campaign that can then drive a mobile opt-in vs. simply sending a user to a pre-determined location via a QR code.

branded-snaptags

From an analytics perspective instead of just simply tracking # of scans SnapTags offer media performance and consumer behavior tracking as an added benefit. Which is key when mapping back to the original brand objectives.

So when it comes to driving 2D digital activation I am leaning towards the SnapTag execution more and more as it provides a more robust model that is scalable with the campaign.

Follow Tom Edwards @BlackFin360

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Your Brand vs. Product on Facebook

Brands vs. Products on Facebook. This is a question I have been asked about many times. Is it better to have 1 brand location on Facebook or should I have multiple pages some dedicated to product.

While there is not a one size fits all answer I am a strong believer in having a central brand hub and manage product via that location.

The reason being is that if one of my business goals is to acquire likes I want to maximize my earned media potential by consolidating my Likes for my core brand.

A great example of a brand execution that maximizes product likes is the Nike Football Boot Finder.

Nike Boot

Notice in the middle of the page that individual boots are rated on the sub-brand level. and each also has it’s own product specific page to drive further engagement with the product.

boot sub brand

If you click on the sub category you are presented with a product specific page to drive further engagement with the product, additional share options as well as a direct retail call to action.

Nike Boot Detail2

This allows Nike to drive, track and consolidate sub-brand likes while not diluting the core brand.

Also with the upcoming Facebook changes from FBML to iFrames brands will have increased flexibility in how to execute sub-branded experiences by allowing even tighter integration with existing brand sites.

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Influencer Identification, Brand Marketers & the Growing Divide

Advocacy, acceleration of content creation and generating buzz around products and services are always at the top of the list for most brand Go-To-Market strategies.

One consistent goal is to identify and engage key influencers in a specific brand category and work to activate them by peeking their interest into becoming a brand ambassador for your offering. Sounds easy enough right?

The problem is the divide between influencers and brands is very real and more fragmented than you may think. Obviously there are the A-list influencers in each category. Getting a single mention from Guy Kawasaki (@guykawasaki) or a featured article via a TechCrunch or Mashable author are worthy of praise.

guy

But how do you identify RELEVANT influencers? A large number of Influencers have moved past only residing in blogs and are leveraging other social channels. While blogs are still a key component of influencer outreach it is incredibly important to review an influencers comprehensive social footprint in comparison to your target consumer to ensure that you are maximizing your true social reach.

Many tools exist today to identify influencers across categories such as Technorati’s top 100 (Blogs) , Klout (Twitter), Radian6 (Multiple Channels) etc… but additional analysis needs to be conducted prior to executing your outreach program. Generating tool created influencer target lists is only half the battle.

Technorati

When I work with brands I use a combination of tools to craft the ideal influencer target list for my brand category. But before I proceed with any type of outreach there are 2 additional steps that need to be taken.

#1 – It is extremely important to take into consideration the target consumer segments and behavioral characteristics. This is critical as your influencers are only relevant to your consumer target if they are actually relevant to your consumer target!

Sample Personas2 crp

#2 – Not all influencers are created equally. Just because you have a list of 100 potential influencers to target it does not mean that you will get the most reach per channel.

When I review influencers for potential brand impact I take into consideration the following variables:

1 – Ensure my Consumer Segmentation is as detailed as possible including characteristics and perceived personas.

2 – Consolidate sets of traffic & engagement patterns via publicly available sources.

Scoble

2 – Map Target Demographics & Age indexing against my consumer segments
3 – Categorize and review social channel penetration and impact per channel as well as review how integrated their individual channels are.
4 – If available brand partner history

Once all data has been collected I score each set of variables based on a proprietary influencer index that I created. I will review as much data as possible around each influencer… Monthly uniques, demographic indexing tied to my consumer segments then I run numerous calculations on factors such as Dan Zarrella’s Retweetability Metric (# Tweets per day /# of RT’s per day)/Followers as well as analysis of Facebook reach, YouTube subscribers, video views and more.

dan-zarellas-retweetability-metric

Each data element receives a 1-3 weighted ranking based on Primary, Secondary & Ancillary influencer target status and all scores are then averaged to gauge an influencers potential brand impact rating.

What I find is that there are many tools that will get you 80% of the way there in terms of identifying relevant influencers. There are many tools that are channel specific and provide valuable data. In order to find the individuals that are truly relevant to your potential target audience it is important to venture that last 20% in order to truly maximize your program for success.

Regarding the outreach portion it is extremely important to be respectful in your approach. Take the time and show an interest in the topics they are passionate about and incent them in a way that will definitely encourage them to engage and be reciprocal in your praise. Facebook’s upcoming change that will allow brands to take more control of responding as a brand can further increase the bond between influencers and the brand. Aggregate relevant posts, provide links back and respond to their requests in a timely manner. Treat influencers as you would like to be treated and it will go a long way.

I have found these steps to be an extremely valuable framework to executing a successful influencer identification and outreach program.

 

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Augmented Reality a Reality for Brands

What do you think of when you hear the term Augmented Reality? Do you flash back to Tom Cruise in Minority Report? Or more recently Tony Stark in Iron Man 2 manipulating 3D objects? The prevailing thought until recently has been more style over substance. Some brand teams consider it is a nice gimmick to garner press but not a core element of an integrated strategy. But as you will see, A/R is becoming a key driver for brands that are looking to drive acquisition & engagement.

Minority Report

Iron Man 2

Augmented Reality can be a great addition to an integrated strategy as either an acquisition tool or engagement vehicle that enhances a consumers experience with the brand. With the rapid acceleration of smartphone capabilities the ability to provide relevance to a consumer and enhance their interaction with your brand across multiple channels is now reality. A/R will also be how we will interact digital information in the future.

Now the how…. Augmented Reality is simply when the real world is “augmented” by computer data.

A simple example happens on Sundays in the NFL. The Yellow line that we have now come to depend on when looking at yards to go for a first down is a great execution of AR. Simply applying a digital overaly with the real action.

Digital Line

What do I need? How and where does it work? Who is using it?

Depending on the type of execution there are a variety of ways to execute a program. The executions that most are familiar with were tied to A/R markers called glyphs.

marker

But A/R does not depend as much on the cryptic markers as it once did. The trend is moving towards markerless executions where everyday objects such as a dollar bill can initiate an immersive experience that further enhances a users experience with the brand.

AR BK

The other trend as I referenced above is tied to digital overlays that essentially enhance the environment around you. More and more executions are leveraging mobile devices as the viewer of digitized content.

Layar AR

There are multiple executions on the how. From mobile, online, point of purchase, print, TV and out of home.  Here are a few examples by medium.

Mobile: The biggest leap in recent years has been around mobile executions of A/R. With 50 million smart phone users in the US and the number quickly rising, the hardware can now support robust A/R executions. Your phone essentially becomes the lens by which you digitally enhance the world around you. With the recent executions by Yelp with Monocle & Wimbeltons use of Layar brands are looking to digitally tag the world around them and offer a new perspective on the world around them.

Yelp

Online: The initial executions were highly driven by markers. Now with markerless executions everyday objects such as a can of pringles can create a compelling reason to engage with a brand beyond the clutter.

A compelling acquisition execution was created by Pringles via an A/R advergame that was tied to the recent World Cup. Users used the Pringles can as a controller to interact with the game.

pringles

The next example by the United States Postal Service shows an execution that provides actual utility for users. The Virtual Box execution allows the USPS to create an engaging experience that provides value by digitally representing “will it fit?”

virtual-box-simulator-1

Olympus provides a great example of incorporating A/R via multiple channels that tie to an online experience. Markers in the shape of a new product were placed in targeted print locations. The user then had the option to get a virtual hands on tour of the new product. Again another example of an engaging experience that ties back to tangible value for the brand.

Olympus

Point of Purchase: One of the most innovative usages of A/R in store is the LEGO digital box. If you happen to live near a LEGO store you can use the kiosk to digitally see what your LEGO will look like when fully assembled. This is driven by markers on the package and combined with heavily branded kiosk to create a satisfying retail experience.

Lego

Television: XBOX – One example of A/R providing relevance in the home is with Microsofts upcoming release of the KINECT. The ability to interact directly with gestures to control digital data such as navigation, initiation of content as well as digitizing yourself will prove to be a gateway to mainstream application of digital interaction on a recurring basis.

Kinect

As we continue the trend of advancing hardware and further incorporating digital elements into our lives for everyday activities it will be interesting to see how campaigns are redefined to take advantage of the next great frontier in advertising.

Digital World

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5 Steps to Branded Social Relevance

The 60’s were known as the creative age in terms of advertising. Since the mid 90’s we are now in the digital age and it shows no signs of slowing down. Working in digital over the past decade means the one constant has been change. Technologies advance, new tactics are defined, the next shiny object that transforms how we communicate is introduced.  Yet during this explosion into a digital society certain behavioral elements remain the same. People have an inherent desire to share, look to others for recommendations on products & services and have a desire to consume products and services that are relevant to them.

robot

Fast forward to today and the latest iteration of digital is social media. It’s on the minds of senior level executives to the most jr. brand manager. All looking for the right combination to amplify the reach of the brand, drive acquisition, strengthen brand relevance, activate influencers both domestically and internationally, integrating with CRM & e-commerce solutions, encouraging engagement and ultimately hoping to influence purchase.

socialmedialandscape

Creating a truly engaging experience is not a given. For the sake of this conversation assume a solid awareness campaign is planned to drive acquisition. As I have discussed in previous posts the “build it” and they will come only works if you are Apple nowadays. For most brands it is imperative to leverage multiple vehicles to drive awareness as well as rock solid consumer insights.

iphonegens

5 Steps to social relevance

The Big IdeaOne of the THE most talented creative director I have ever worked with recently boiled the big idea down to being able to explain it with one sentence. Then the supporting tactics immediately begin to surface. This is also one of the key points to consider when evaluating the fragmented landscape of where the ideas come from?

social stuff

Should the idea come from our PR firm? Social agency? Traditional Agency? Digital Agency? In my experience the idea should support the overarching brand objectives & the medium.

It is one thing to develop an elegant strategy that maximizes appropriate vehicles based on insight but until you are able to overlay a compelling idea that meets brand objectives while providing both utility and relevance for your audience you are rolling out tactics that may not ever reach their full potential.

the big idea

It is important to spend the time developing creative concepts that are supported by a digital framework that maximizes each strategic brand pillar. With social now residing in multiple parts of an organization, having an underlying theme tying all of the tactics together into a cohesive package that drives relevance and engagement is the most difficult element of social relevance.

Utility – To put it simply the big idea needs to support enabling a basic need. We as consumers all have needs. A need to connect, a need to uncover information, a need to help me accomplish a goal. In order for us to interact with your brand an inherent benefit needs to be provided to the user.

An ideal example is the simple utility associated with the Hallmark Social Calendar Facebook application. For those of you not familiar with the application it recently gained 4 million users over the course of a week by meeting and enhancing individuals desires to stay connected with their friends.
hallmark1

With a combination of basic utility and offline reminders, users are constantly driven to engage with the application. Sometimes the simplest tasks like aggregating your friends birthdays and events can lead to quick adoption.

Relevance – Take just a moment and think about your own behavior. What are the apps you use the most? Of everything installed on your iPhone, Android, BlackBerry…. What do you actually use? Most of you would say some combination of the following: Facebook, Twitter, Google, Banking App, News, etc…

The common thread to each of these is personal relevance. “I” want to connect with my networks, “I” want to be able to find the latest headlines or search for directions to the restaurant I will be at later in the day. The point is apps that provide relevant content or opportunities to engage are ultimately rewarded with adoption.

relevance

Looking at Hallmark once again the basis of the application is tied directly to users desire to stay current with events and it provides relevance to the user and that translates into engagement.

Incentive – Attention all brand marketers… Attention… People Like Free Stuff. Yes I know it is hard to believe but in order to entice users to engage it is always helpful to offer a tangible reward for engagement.

fb creds

My preference is to incent users with rewards that are digital yet have application beyond my branded experience. One of the best examples is Hallmark’s recent usage of Facebook credits. This was one of the first applications that was a non-gaming app that adopted the soon to be default Facebook currency (Zynga fully on board) to entice users to engage with branded properties

Integration – Integration is key to driving relevance. Consider how to incorporate cross-platform vehicles to provide further points of integration that impact the user while offline. Whether it is tied to offline SMS messaging, mobile application, e-mail campaign, etc… the key is to think beyond the application and how other channels can further enhance engagement.

Social networking and internet concept crossword

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10 Benefits of Social Crowdsourcing

As your social strategy evolves from driving awareness via consumer/liquid networks (Facebook, Twitter, etc…) and basic community elements you may be asking what’s next? How can I continue to drive engagement and provide enough utility to keep the attention on your brand. What can I do to influence advocacy. What about ideation? How can I continue to formalize feedback channels and how do I continue to provide a structured form of support that ultimately leads to cost deflection savings and other benefits beyond simple engagement?

My recommendation would be a branded crowdsourcing solution. Okay… so what does that mean and how is it different? Social Crowdsourcing solutions provide a structured approach to accomplishing multiple goals by leveraging individuals engaged with your brand where ultimately the best ideas and content prevail. In essence it enables a structured 360 degree feedback loop. When executed as part of a cohesive social strategy crowdsourcing solutions can provide value beyond simple engagement.

10 Benefits of Social CrowdSourcing:

1 ) Advocacy & Brand Loyalty – How better to influence behavior than by empowering an individual to directly impact a product, improve the overall customer experience, or deliver feedback within an organization on how to improve an internal process. When an individual truly feels as though they are making a difference there is a stronger connection with the brand or organization. An example is with Starbucks MyStarBucksIdea implementation. Users have the ability to directly influence product as well as the customer experience. Ask for a splash stick the next time you are in Starbucks. That nifty green stick with the decorative end is a direct result of crowdsourcing.

2 ) Structured Feedback (Recommendations/Reviews) – Going beyond a Forum… Social Crowdsourcing is a structured feedback channel. You have the ability to quickly identify feedback that is relevant to your audience and also has a direct influence on your products and services. A good example is with Dell’s Idea Storm. Dell leverages Idea Storm for the purpose of collecting feedback as well as point #5 below which is support.

3 ) Ideation – The old adage 2 heads are better than 1 comes to mind on this point. How about 2,000 vs. 20. By leveraging the power of the social crowd you gain an economy of scale in terms of your brainstorming output. This is applicable in almost every business setting from an agency that is looking to find the best idea for a campaign pitch to a Fortune 500 company looking for new ideas to innovate and maintain relevance. Social Crowdsourcing solutions enable the collaboration to occur. An example is Best Buy’s IdeaX.

4 ) UGC (Content/Contests) – User Generated Contests have been a staple of social strategy. With Social Crowdsourcing solutions you have the ability to facilitate this type of interaction. If you select the right platform (Not all Social Crowdsourcing platforms are created equally. I will be following up with a post on criteria to consider when selecting a Social Crowdsourcing solution) you should select a platform that is flexible enough to support multiple types of initiatives and campaigns while providing centralized access to the data. Both Men’s Health with their Belly Off promotion and HGTV with Rate my Space leveraged Social Crowdsourcing solutions

5 ) Support – When it comes to support we outlined the Dell example above. Other points to consider are decreased e-mail & phone support costs, faster response rates and resolution of issues, decreased escalation, increased satisfaction and decreased customer complaints. This is where tangible value can be gained for an organization beyond simple engagement. In a similar manner to how call deflection is a goal to gain efficiency social crowdsourcing can enable a similar benefit.

6 ) Reducing Product Quality Defects – What company does not want to decrease quality defects. You can leverage social crowdsourcing solutions to quickly identify issues and have a direct channel to address product corrections.

7 ) Decreasing R&D Expense – Leverage the power of social production to decrease your own R&D expense. Again leverage the combined knowledge and loyalty of your customers to help shorten the product development lifecycle.

8 ) Decreasing Time to Market – You can decrease time to market by launching targeted social crowdsourcing campaigns that serve as focus groups and ultimately drive product improvement and expand your reach in terms of testers.

9 ) Customer Service – In a similar manner of leveraging Twitter for brand monitoring it is important to understand the potential of using the structure of social crowdsourcing to directly engage with end users to drive resolution of issues and ultimately increase customer satisfaction.

10 ) Social + CRM – With structured interaction comes the ability to align user interaction and product feedback to your CRM strategy. The ability to create social profiles, create campaigns specific to feedback or rounds of ideation and ultimately gauge social interaction with actual customers is critical to driving value back to the business. A great example comes to us via Microsoft & Neighborhood America. Microsoft Public Sector On Demand this implementation leverages the power of a robust Social Crowdsourcing platform while showcasing integration with Microsoft Dynamics.

In my next post we will discuss points to consider when selecting a Social Crowdsourcing Solution.

Social Commitment

In order to truly capitalize on B2C social strategy it is important to understand that social is a channel to facilitate collaboration and is a part of the overall organizational marketing strategy. However it is not the only element of your overall marketing strategy. But this channel probably moreso than any other marketing exercise requires a longer term investment to truly recognize the value of the approach.

Obviously social solutions can be leveraged for short term spikes, take-overs and quick blips on the brand awareness radar. But to truly maximize the value of social organizations need to advance on the social continuum towards cohesive social strategies and have a solid understanding of the goals associated with the interaction. Brand Awareness, monitoring, customer support, transactions, etc…

This sounds simple enough but there are many factors and behavioral elements that will need to be put to the test to properly execute. Depending on the level of social commitment from the organization a number of factors need to be considered and questions asked. What is the purpose of our usage of consumer networks (Twitter, Facebook). If you think about it for a moment is it to drive awareness? Drive some type of direct response? or some other objective. You should not have a Facebook fan page for the sake of having one. You need to be where your prospective targets are and I am a strong advocate of the usage of consumer networks but not as the primary hub of the strategy.

So you say not to make consumer networks your primary but “I have tried my own community but we did not get the traffic lift we thought we would get”. My first response to this is to review the marketing strategy tied to growing membership. A common mistake I see is the “If we build it they will come”. The expectation that members will magically appear and participate in your branded communities is reserved for a very small group of brands. For everyone else it takes a committed effort to drive fresh, relevant content, dedicated resources, reaching into existing target users and ultimately traditional marketing to drive interaction. You can have the best technology in the world but if you do not have a true plan for driving interaction the branded effort is destined to fail.

Once the plan has been defined, resources assigned and marketing underway it is important that the brand ultimately own some semblance of a branded experience. Be it a portal aggregating relevant content, community or crowdsourcing. The reason for this is that consumer networks rise and fall in popularity and there will always be the next big thing but your brand will remain.

A natural opposition to the longer term value is how marketing is portrayed and executed on a daily basis. When you think about the nature of traditional marketing it is very campaign based driving one buzz push to the next with constant reinvention along the way. With Social it is almost the opposite. The goal is to build momentum and attain critical mass to drive towards creating a sustainable interaction. This in turn enables a solid foundation of social data that maps back to organzational goals to drive the next steps of gaining value.

Regardless of how you leverage social it is important to fully recognize the importance of defining goals and creating a comprehensive strategy. As I stated in my last post the true value from social comes from the information that is created and how you are then able to capitalize on it. But in order to reach this point of organizational enlightenment you must have a commitment to social. It is not a campaign it is a long term channel of direct interaction.

Dark Marketing

One of my hobbies is reviewing emerging trends around marketing and social media (Doesn’t that sound like fun?!?)  One such trend is Dark Marketing. No, this is not Darth Vader marketing his favorite life-support system or vacation spot… Hoth anyone??? This approach caught my attention as it is fascinating to me the lengths that certain brands will go to gain traction with potential influencers.

Dark Marketing (Defined in Wired recently) is discreetly sponsored online and real world entertainment intended to reach hipster audiences that would ordinarily shun corporate shilling.

This style of marketing is more “covert” in its approach. And with current and pending regulation around how products such as tobacco, alcohol and even fast food is presented to target markets this style of marketing is being deployed with more regularity than ever before.

The ultimate end goal is to reach an influencing audience without necessarily directly engaging the brand with the prospective targets. Instead the brands are almost non-existent but they are funding events through creating a sense of elite “insider” or “personal” events. During the events brand team representatives would engage with crowds by loudly ordering the products and then casually engaging in conversation about the products. Or a softer approach of casually conversing about a product or using a product that leads to a pitch in a very casual social setting.

Companies like Sony, Ford and McDonalds are actively deploying Dark Marketing campaigns. Sony recently executed operation “fake tourist” where they planted users of one of their camera products in a prime location and asked them to engage with people to take their picture which would lead to a pseudo-pitch around the product.

McDonalds is not a company that you would normally associate with a Dark Marketing campaign. Normally it is here is our food, here are the toys for your kids and by the way we have a great dollar menu… (great, now I am hungry)… is now sponsoring an alternate-reality game called The Lost Ring and it is nearly devoid of golden arches. This is an interesting approach as this ties McDonald’s sponsorship of the Olympics into a hip virtual-reality crossover between Lost and The Blair Witch project in an attempt to reach global youth in a very viral manner.

One thing remains very clear. The time of shotgun marketing has passed and the user is king when it comes to messaging. But one inherent truth still remains that people are social beings and their will almost always be someone who will have influence within a group. The only thing that has changed is that their defenses have gotten better and marketers have to adapt with innovative strategies that the end user ultimately wants to hear.

 

OMMA & Social Networking

I recently attended the OMMA Global marketing conference in Hollywood, California. Some of the top talent from the marketing industry was there recently to discuss the current state of online marketing, media and advertising. The Event featured a number of session tracks that each followed a specific category (e.g. media, advertising, etc..) as well as an expo that featured a wide array of organizations from social networking providers to Perez Hilton.

The focus of this two day event was to discuss the latest trends and technology that can enable marketers to excel in the ever-changing media landscape. Hot topics were how to apply social networking solutions into campaigns as well as a strong emphasis on monetization of widgets.

Some very interesting data was shared during the sessions such as in 2008 the rate of consumer adoption of social networking to internet users has reached 43.5%. Meaning 43.5% of users are involved with some type of social network. The issue for marketers though is that only 5.7% of marketing spend is being applied to reach these consumers through their social networks. With consumer adoption continuing to rise it is only a matter of time before the marketing spend around social networking solutions will begin to close the gap.

The #1 reason for the difference in % is an inherent lack of standard metric consistency. The old guard of methodology based on CTR (Click-Through-Rate) is not working for defining value around Social solutions. Focus on Social Analytics means that a big step has been taken in providing consistency by focusing not on CTR but on the actual commuinty data by providing in-depth analysis of the latest trends that lead to successfully defining ROI on a given campaign initiative.

Another interesting topic that was discussed was that there is a lot of channel confusion. Meaning a number of marketers do not fully understand how to deploy social media solutions. There are a number of options. White label & SaaS Social Networking platforms, User generated content specific applications, etc… my recommendation is to find a solution that provides an integrated platform with a flexible UI that allows for flexibility to deploy the applications that are relevant for your clients needs but one that also has a strong reporting engine as consistent metrics are the key to defining a successful campaign. Also, depending on your client you may want to position a solution that scales to meet the potential demand.

Finally, one of the other hot topics of discussion around marketing and social networking was the concern around communication control. There is uncertainty about how to manage brand messages when deploying social media solutions. As Rob Howard has stated before, conversations matter. Your customers are going to talk about you whether you have a social networking presence or not. There are ways to control communication such as positioning moderated blogs instead of more collaborative applications where the organization is controlling more of the publishing and the user has less control over the brand. But ultimately we have found that transparency can be a very good thing for businesses as it can reveal a face to the brand that might otherwise miss the crucial connection with end users who are in even more control of the messages that they receive.

It appears that social networking applied to business is about to truly enter the mainstream in terms of marketing budget allocations as the consumers have spoken and shown that they are interested in this style of collaboration. The challenge for the marketers is to develop engaging campaigns that compliment the daily activities of users. One thing is for certain though it is going to be a fun ride!

How Much??? Really?!?

How much do we spend in the US on advertising? Well in 2007 we spent 283 billion dollars. Yes 283 billion. 

That may sound like a lot but this level of growth 0.7% versus 2006 puts advertising’s share of the 2007 GDP (2%) at it’s lowest level since the recession year of 1982. 

Even with an uncertain market advertising spend is projecting a 3% growth in 2008 fueled by the Summer Olympics and the Presidential Elections. Being interested in online spending I am very interested in the 2008 projections.

Below is breakdown of the 2008 projections. The data was based on a December 2007 report from Universal McCann’s Robert J. Coen as presented in the December 31st issue of Advertising Age.

  1. Direct Mail – $63B
  2. Broadcast TV – $48B
  3. Newspaper – $42B
  4. Cable TV Networks – $21B
  5. Radio – $18B
  6. Yellow Pages – $14B
  7. Consumer Magazine – $14B
  8. Internet – $12B
  9. All Other – $58B 

What may be surprising is the fact that online spending ranks 8th. Being in the industry our natural assumption is that online spending is in the top 3. With that said though this segment over the past few years has had double digit growth and is projected at a 16.5% increase from 2007. The next closest in terms of growth will be spend on Cable TV at a 6% increase.

The flip side is the reduction in spend on traditional mediums such as newspaper which is actually seeing a decrease of -1.8% of spend as compared to 2007 and Radio which is only seeing a 0.2% increase.

With the recent trends in online spending continuing to increase. The success of Google’s AdWords system and now with Microsoft commiting to a marketing focus now is the time to focus attention on the medium. 

This translates to very good news for online solutions and providers as well. Especially around social media based solutions. The need for social interaction with customers and users has now fully proliferated traditional business and the marketing dollars are now being fully allocated to deploying collaborative solutions as part of their integrated marketing strategy. I see this trend continuing into the near future.

SMS & Marketing

SMS based marketing is definitely on the rise. Why is that? Well for starters think about this. There are 6 billion people on the planet. There are over 3 billion cell phones in circulation. That is equivalent to 2.5 times more cell phones than internet connections!!! That will definitely qualify as a potential market for advertisers.

How many of you have received a text based ad, more importantly did you respond? In the month of September alone 4.7 milllion people in the US responded to an SMS ad. That may seem a bit surprising. I know I was surprised to read that data. The trend is definitely on the upward swing as well. Response rates have steadily risen since May from 4.3 million to 4.7 million in September.

So if 4.7 million people responded, imagine the increasing number of text based ads. Currently a majority of the ads are from the mobile operators centered around their mobile phone service (Downloads, News, Entertainment, etc..) I expect to see an increase of advertisers focus on this medium. Especially with a generation of individuals who rely heavily on this style of communication.

So do not be surprised if you begin to feel that familiar buzz of your phone when you receive a text message and you look and there is some form of advertisement. Be prepared for more messages from your favorite or not so favorite advertisers are coming to a mobile device near you.

 

Teaching & Learning

January 2008 will be 5 years for me as an adjunct faculty member of Wayland Baptist University. Initially I taught courses such as Principles of Marketing, Market Promotion, Consumer Behavior and Global Marketing on campus. Now I am a member of the Virtual Campus focusing mainly on distance education around Principles of Marketing and Human Resources Management. Each Semester (4 semesters a year) I get two new groups of students and begin the process of introducing them to the various concepts and provide insight into the latest marketing theory.

After interacting with thousands of students from across the globe I wanted to take a moment and reflect on the impact that this profession has had on me. In many ways teaching a course really enables you to emerse yourself in the content. When you are a student your main responsibility is to comprehend the information that is presented to you. When you are on the other side of the desk not only do you need to comprehend the information, but you also need to be able to apply the concepts to real world scenarios that are relevant to your students to truly enhance the learning experience.

What I have found over the years is that students want the information presented to them to be relevant to their lives in some way. So this makes my job even easier as marketing impacts everyone on a daily basis. It would be very difficult to go through a day without some type of message either directly or indirectly trying to capture your attention. Radio, Television, Print, Online… no matter where you go you are constantly being reminded about various brands trying to maintain their position or gain market share against competitors. 

Many of my students own businesses and this allows them to have a better understanding of how they can reach their target audiences and understand the many facets of their envrionment (Political, Technical, Competition, etc…)

I am very grateful for the experiences and the interact with all of my students. Thank you all.

20,000 Points

It is finally official. I have reached the 20,000K gamerscore mark!!! I have expressed in the past that I am an avid gamer and I enjoy the work that we do with various gaming studios such as Electronic Arts.

One thing about me is that I am very competitive and focused on results. I like to set goals and subsequently achieve them. This coincides very well with the Xbox 360 achievement system as you get a very measurable ROI metric out of your gaming experience.

Gaming is a lot like marketing in that you select a specific vertical that you want to target. For example, I like to focus on sports and retro titles. Then I formulate a plan based on the market segment that I have selected. I review the achievements that are available with each game prior to playing to predetermine ratios around potential time spent on pursuit of the goal vs. actualization of the achievement and then move towards the execution phase of the plan. Once the plan is put into motion it is very easy to then determine success of the strategy. And it is just a lot of fun to have the achievement pop-up on my screen once I have earned the achievement.

So is a 20K gamerscore required to be a good marketer? Not at all… All it shows is that you spend a lot of time looking at a screen. Speaking of which I have to thank my wife and children for allowing me the “small” amounts of time that I spend on…. market research. I also would like to thank the guys at EA for giving me the hookup on the best EA titles.

Thanks again! On to 30K!!!

$44 Billion Really?

I just flew in from Denver and boy are my arms tired… Seriously though, I enjoyed attending the 2007 Microsoft Worldwide Partner Conference last week. I was even quoted in the Denver Post about being a Microsoft partner. It is always interesting to get an inside look at Microsoft as I have been consulting with this organization for the past 8 years. It has been intriging to watch the transformation from a decentralized, maverick organization to one that is applying more traditional business controls such as a focus around procurement, to their ability to quickly adapt in an ever-changing marketplace.

What really impressed me is the partner ecosystem that Microsoft has been able to develop. With 10,000+ attendees at this conference representing 120 countries it is no wonder that 96% of it’s $44 billion in revenue 2006 came from Partners. With their ability to not only provide outstanding software products, Microsoft really focuses on establishing platforms that can be extended, defining industry standards and ensuring interoperability with their offerings. This makes it very easy for organizations to partner with them.

It was very evident that many start-up organizations can benefit from niche offerings around Microsoft products as they are very open to partnering with early adopters. The focus on partners is a key element to their continued success. As I stated before in Software + Services there will always be the customer segment that lives in the now and is focused on the best solution that meets their needs today vs. the trendy offering of tomorrow.

Here at Telligent we have deep roots with Microsoft from Rob Howards time with the ASP.NET team, to 2 Regional Directors, multiple MVP’s and a focus on Microsoft technologies in our products such as Community Server. We look forward to continuing to build out our own partner ecosystem. We focus on providing software platforms that can be extended vs. single applications as well. So why wouldn’t we follow in the footsteps of Microsoft. $44 billion can’t be wrong.

Is That a Kwik-E Mart???

7-11 just did something that is pretty innovative from a marketing standpoint. They have transformed a dozen stores into Kwik-E-Marts from The Simpsons in an effort to promote the upcoming Simpson’s movie. I really like this campaign as it is a great example of reverse product placement and by the buzz and lines at the store I went to today it seems to be working.

KrustyO’s, Squishees, Buzz cola and the ever famous pink Homer Simpson donuts are just a few of the products that you can now pick up and take home with you and as they state have “absolutely no nutritional value”. For those of you wondering, Duff beer did not make the product cut for this promotion.

The ability of 7-11 to “laugh at itself” is very key in this promotion. “The idea of actually changing the stores into Kwik-E-Marts was over the top but a natural” stated one of the execs at 7-11‘s agency. “It shows they get the joke”. You would not think decorating a store to look like a cartoon would be that effective, but they are definitely reaching a new audience as I saw people in the store today that you normally would not see going to a 7-11 for a specific purpose.

It is funny that I get this excited around a campaign, but as an instructor of marketing and a marketing professional, it is great to see creative application of marketing strategy and the ability of a proven brand to embrace something that is “different” in order to garner additional attention. Plus it is just a lot of fun.

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Where Are We?

In our mini-van, yes I know I just lost major street-cred by referencing the fact that my wife and I do in-fact own a min-van, but it’s a fully loaded mini-van thank you very much!!! We have built-in navigation and DVD systems for the kids.

Now instead of actually paying attention to where I am going, I am mindlessly following the directions given to me by the authoritative female voice and glowing maps. As my brain wanders, thinking about parenting, profitability and ROI analysis, Xbox 360 gaming and what’s for dinner, I realize that if we suddenly lost power to the nav system I would have no idea how to find where I am going.

Thinking about this and the High-Tech industry in general and reading Geoffrey Moore’s Crossing the Chasm I began to think about the importance of not only understanding where you are going but more importantly how are you going to get there.

We at Telligent are at a crossroads. We are almost upon the transition from the Innovators and Early Adopters to the pragmatic Early Majority in terms of product adoption. Marketers are good at identifying fads and even better at exploiting trends. We are currently in the middle of a major trend which is the collaborative boom of Web 2.0 solutions. And Telligent is definitely on the forefront of providing the needs to those Innovators and Early Adopters. With success implementing solutions and providing Community Server to organizations such as: Disney, MSNBC, Dell, Microsoft, Electronic Arts, Intel, Mazda, Honda, Adidas, Lego, etc… We have laid the foundation to successfully cross over to the upcoming Early Majority.

But the Early Majority requires different messaging and they are less concerned with the technology and more concerned with ease of use, support and referrals from others in the Early Majority. This is one of the key areas where High-Tech companies fail. They see the growth in sales between Innovators and Early Adopters and they ramp up their teams and expect big revenue numbers to continue to spike, what they do not count on is the potential marketing pitfall that occurs between the Early Adopters and the Early Majority.

The Early Majority is a very important segment during the product adoption life-cycle. If you catch the wave between Early Adopters to the Early Majority this is where true success starts to materialize.

What we are seeing from organizations is that the Early Adopters were looking for an edge on the competition and now they have found a way to leverage collaborative solutions and engrain them into their marketing strategy. Now the Early Majority is taking note of the trend and patiently waiting to see what best practices arise.

The one thing to keep in mind in all of this is that it is not always the best product that gets selected by the Early Majority, it is normally the products that can market themselves in such a way and are continuous in their innovation that they speak directly to the needs of the Early Majority and are not as disruptive as the competition that they in turn cash in with market share. We at Telligent have the premier collaborative solution in Community Server. The next step is ensuring that we speak to the Early Majority and let them know exactly why it is the best. The rest will take care of itself.

Viral Marketing & SMO

Viral Marketing is now one of the most powerful ways to market online. The key to viral success comes down to interruption vs. invitation. Traditional media such as television has the potential to reach hundreds of millions but the message may not resonate or be clearly discerned by the prospective target audience due to the “noise” and passive positioning associated with this type of delivery. The beauty of viral messaging is that it has a much better chance to get the users attention as the message is either coming from a trusted source, a recommendation, or meets the search criteria defined by the user.  Also, this type of message is available on-demand which gives the user ultimate control over when and where consumption occurs.

One viral aspect that is getting a lot of attention is online video. If you are reading this you have more than likely viewed a user created video on YouTube or some other site and you are not alone.  Online video is beginning to garner more attention from average viewers with 4% of people over the age of 18 watching videos daily and another 14% watching at least once a week. Research shows more organizations will be shifting marketing dollars to producing and positioning online videos. The reason for the shift is that video ads show a propensity to generate higher ad interaction and longer ad viewing (2/3 of the way through on average) this in turn leads to higher click-through rates.

So as an organization you may be thinking about focusing on online video or maybe you are looking to tie into user generated content and incorporate your advertising. If so, you need to focus on a few key factors. As with any type of marketing activity consistency is the key. Ensure that you are intrinsically linked to your brand, your video should require online interactivity and it needs to have synergy with offline marketing material. The other key factor revolves around the concept of Social Media Optimization or SMO.

SMO is the process of optimizing your online media presence by becoming more visible through searches within online communities and community web sites. The concept of SMO is to increase the chances of your video being distributed more widely through community search engines. This is very important as this is the key driver for this type of viral strategy.

As you consider your viral strategy it may become clear that you need a solid community presence associated with your brand. This is where branded community offerings can be applicable. Integrated platform (Blogs, Forums, File, Photo Galleries, Video & Podcast support, RSS) that streamline the positioning of an online community. Let me know if we can assist you with your community or viral marketing needs. We would be more than happy to assist. Feel free to contact me with questions at tedwards@blackfin360.com

Why Telligent

One of the more frequent questions I get is why Telligent? I joined the Telligent team about a year and half ago. Previously I was a co-founder of a Professional Services firm that focuses on custom application development and works extensively with Microsoft. I was the VP of Sales & Marketing, a member of the Board of Directors and had equity in the organization. So why leave for Telligent? Two words, Vision and Collaboration. When I met with Rob Howard, Jason AlexanderScott Dockendorf and remotely with Scott Watermasysk one thing became very clear, this was a team that has the vision and domain knowledge to do something truly unique.

When you first meet Rob Howard one of the first things you will notice is the passion that he has for Telligent and Community Server. If you ever happen to catch him at a conference, or via webex demonstrating Community Server you will immediately recognize that Rob truly is a thought leader in terms of understanding the application of business intelligence, specifically around collaborative software and online community. More than that though, Rob understands the concept of the blue ocean. Mainly, don’t compete over minor scraps in the red ocean of over saturated products and competition, look for the blue ocean and ensure that the focus of the organization is to build something that provides value but may not be completely mainstream just yet. This is where the collaboration reference comes into play.

One of the big shifts over the past few years is the emergence of Web 2.0. Web 2.0 focuses on collaboration. From an organizational standpoint this trend is really gaining traction with traditional businesses. The move from traditional marketing to a more viral approach has accelerated the emergence of strategy aimed at bottom up marketing, whereas the end consumer either B2B or B2C has direct impact on the direction of marketing strategy for an organization. This was very key for me as it provided an opportunity to guide the marketing direction of a product that was still in the early adopter phase of the product lifecycle. The ability to ride the wave of collaboration combined with the vision and drive of the Telligent team were an easy sell for me. Over the past year we have made significant penetration into a number of great accounts, Disney, Conde Nast, MSNBC, Intel, Dell and Electronic Arts to name a few. What is really exciting is that enterprise level organizations are truly just scratching the surface of what is possible in terms of Web 2.0 marketing strategy and software solutions. This means that Telligent and Community Server will continue to be in very high demand.

This year has already started with a bang and with the release of Community Server 2007 which is the best Community Server release to date it just keeps getting better. The roadmap is defined and we are looking to do some very special things in upcoming releases. Look for the announcement of some very large initiatives that are in the works and will be launching later this year, one is just mind boggling and definitely affirm that Community Server can scale to meet the needs of almost any organization.

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