Recommended Reading, 1/28/09

Social Media Wins In Marketers’ ’09 Plans

A survey of 196 subscribers to a content marketing newsletter (all right, it’s clearly a biased sample) finds that social media and content marketing will be the big winners in the advertising recession this year. “More than half–56%–of marketing and publishing decision-makers plan to increase their content marketing spending next year.” Only 13% plan to decrease it.

The popular perception of Generation Y or “Millennials” is that they expect the world to beat a path to their door. Not true, says this piece in the Economist. Gen Y members actually have many of the same aspirations and motivations their parents did. The deteriorating economy is forcing them to work harder, but they’re up to the task. And they have multi-tasking and online skills that could benefit businesses in many ways.

If you follow the search world closely, you’ll probably know most of these tips, but there are some hidden gems in there, particularly about the importance of quality content and useful inbound links.

For a given set of pages, PageRank may fluctuate, and rankings do shift as the internet evolves. But in the end, what’s most important is consistently happy users: people who bookmark and share your site, who understand and respect your brand and who can confidently and seamlessly make that purchase.

From Ted Leonsis: Snagfilms is really scaling– we hit 20k affiliate sites that have snagged a virtual movie theatre widget and have reached 100 plus million uniques–since our launch in late July. Check it out and snag a widget today.

This is a great podcast. Paul Dunay speaks with Dan Schawbel the author of the Personal Branding blog as well as the forthcoming book Me 2.0: Build a Powerful Brand to Achieve Career Success. He’s got lots of good advice for building your personal brand online, syndicating yourself and finding new channels to build awareness.

Paul Dunay’s list of C-level executives who use Twitter, including Richard Branson, George Colony, Tim O’Reilly and others. Still too many geeks and not enough mainstream brands here, but it’s coming along.

Todd Van Hoosear sums it up nicely. “Your job isn’t to get people to care about your product. Your job is to make it easy for a potential client to understand how your organization can help solve a problem.” Your Web presence shouldn’t be all about you; it should be all about your visitors.

Paul Dunay has links to some good reading on the question of whether brands should use Twitter, as well as a list of about 70 brands that do. Readers contribute several more.

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The Best of '08

From my weekly newsletter. To subscribe, just fill out the short form to the right.

At this time of year, many publishers and bloggers do one of two things: look ahead at the future or back at the year just ending. Since Joe Pulizzi, Fast Company and iMedia Connection did a great job at social media predictions, I thought I’d rummage through my digital archives and offer my completely unscientific list of what made this year special for me.

Best Social Media Tool - That’s easy. It’s Twitter, the super-simple, deceptively powerful micro-blogging service that has people sharing their lives in 140-character increments. If you still don’t get Twitter, I feel your pain, but anyone who wants to practice marketing in the new media world needs to get with the program. If you need help, I’ll get on the phone with your people and tell them why it’s so important.

Best Social Media Disaster Story — Johnson & Johnson’s well-intentioned Motrin video turned into a PR nightmare thanks to — you guessed it — Twitter. To its credit, J&J earnestly listened, but the marketers’ failure to anticipate negativity and their eagerness to respond too hastily made this a bigger problem than it had to be.

Best New FaceChris Brogan blew out of the pack to become one of the world’s top bloggers thanks to his prodigious output and shrewd self-promotion. He’ll soon hit 30,000 followers on Twitter and the 14,600 subscribers to his blog are a thing of wonder. I don’t know when the guy finds time to sleep. I’m fortunate to work with him on the New Marketing Summit conference and have a chance to learn from his success.

Best BookGroundswell by Josh Bernoff and Charlene Li broke new ground by attempting to apply research and metrics to social media marketing. The book also told some great stories. Conflict of interest prevents me from choosing my own Secrets of Social Media Marketing, but that shouldn’t stop you from buying it!

Best New Software Application — In the ranks of software that tries to bring order to the barely contained chaos that is Twitter, TweetDeck does the best job I’ve seen.

Best Fall to Earth – Forrester reported that corporate enthusiasm for blogging was beginning to wane. That’s not surprising; most big companies do a lousy job of it. Expect retooling and new growth in the new year.

Best Viral Marketing Success – Cindy Gordon told just seven people about Universal Orlando’s plans to launch a Harry Potter theme park. Word of mouth spread the story to 350 million others in a matter of a couple of days. David Meerman Scott has the story.

Best New Product – The Apple iPhone 3G became the first true mobile Internet device and sold 3 million units in its first month. Expect plenty of new competition in 2009, which is only going to be good for consumers.Nokia has yet to play its cards.

Best Podcast – In the archives of the MediaBlather program that I do with David Strom, there were too many good interviews to choose just one. Among my favorites of 2008 were Mommycast, Brains on Fire/Fiskars, IDG’s Pat McGovern, Eric Schwartzman, Shel Israel and Brian Halligan of HubSpot. I think the most interesting podcast I listened to all year was Schwartzman’s interview with search-engine optimization expert Russell Wright.

Most Useful Blog Entry – Interactive Insights Group created a superlist of organizations using social media. You can find practically any case study on the Web by starting there. We have yet to hear what Tamar Weinberg has up her sleeve, though! Her 2007 superlist was a thing of beauty.

Best Article on the Media – The International Herald Tribune’s “Web Ushers in Age of Ambient Intimacy” explained the visceral appeal of Twitter and Facebook with admirable clarity. Eric Alterman’s epic examination of the collapse of the newspaper industry in The New Yorker was magnificent in its detail and insight.

Best Just For Fun – The most popular item in my newsletter is the squib about some crazy new Web resource we’ve found. Here are two of my favorites of 2008:

People always celebrate success, but they don’t give enough credit to really creative failure. Thank goodness, then, for The Fail Blog, a photographic tribute to failures big and small. Don’t look at this site in the office. Your colleagues will wonder why you’re laughing so hard. And don’t, under any circumstances, view it while you’re drinking milk, if you know what I mean…

Buddy Greene is the Yo-Yo Ma of the harmonica, and in this amazing clip from a Carnegie Hall concert, he will change forever your impressions of the capability and range of this tiny instrument.

FAQ

I’ve recently conducted a couple of online seminars about social media topics. The Q&A sessions at these events are almost always too short to get to the issues that are on people’s minds. So over the next few issues of this newsletter, I’ll run down a few of the best questions I didn’t get to. For a good, free webcast on this topic, check out the recent event sponsored by Listrak.

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Q: What is the best way to find blogs that are applicable to your business?

A: I have half-day seminars that address this question, but I’ll try to be succinct! First of all, remember that a blog is simply a way to display information.  There is no industry standard definition of a blog, so the only way to identify one is by looking at it.  Even the search engines that specialize in blog search don’t always get it right.

That said, you should start with search.  The blog search tools I use are Google Blog Search, Technorati, IceRocket, Bloglines and Blogpulse. There are others, but I’m less familiar with them. Tip: Use advanced search; it will save you time and better refine your results.

When you find bloggers who look important to you, look in their blogrolls, which are lists of other bloggers that they pay attention to. Blogrolls can usually be found on the home page.  This can save you a lot of time because the bloggers have already done the searching for you.

I also recommend searching social bookmarking sites like Delicious and Reddit. People share and comment upon favorite bookmarked pages there. Very often you’ll find sites on social bookmarking services that don’t show up prominently in search engines.

Q: Can you review the different social media for different communication goals?

A: Chapter 2 of my latest book, Secrets of Social Media Marketing, goes into quite a bit of detail about this, but here’s a synopsis:

Blogs: Easy, fast and flexible. Think of them as a podium. You’re the speaker and you can say your peace and invite commentary. Blogs are good for telling a story, but not very good for interaction or conversation.

Podcasts: These are basically audio blogs. They’re very good for communicating a message but have almost zero interactivity. Podcasts are very popular with busy executives who like the efficiency of being able to learn when they can’t read. They’re basically a one-way medium, however.

Video podcasts: Good for telling a story visually, but people tire of them quickly if the content isn’t compelling. Video podcasts are excellent vehicles for humor or offbeat content. They have almost no interactivity. Think of them as TV commercials that viewers can easily share with each other.

Social networks: These are great places to listen to ongoing conversations and to gain insight on customers and markets. You can also use them to pose general questions about you market. Don’t be too specific, though; social networks are public forums. Popular topics can yield insight into new product possibilities.

Private Communities (for example, Communispace and Passenger): These are next-generation focus groups. Usually run by firms that specialize in community management, the members are hand-selected, carefully nurtured and often bound by confidentiality agreements. Private communities are a great way to get advice from a lot of perspectives in a hurry. The downside: high cost

Microblogs (for example, Twitter and a host of others): Very fast, targeted and responsive, they’re a great way to ask questions and get quick answers or to promote a timely idea or service. Interactivity is excellent, but content is limited to short messages and it’s difficult to integrate multimedia.

Virtual worlds (for example, Second Life and others): These venues may be good for real-time events, but the software is still too clunky for most people to use. Virtual worlds fare best with techie audiences. They’re unique in that you can observe group dynamics, such as facial expressions and body language. They’re also good for events with a strong visual component.

Q: We run a lodging resort and saw negative comments someone had posted about their experience here on their blog. How do you turn a negative blogger into a positive blogger?

A: The tactics that work in the physical world also work online: invite feedback, listen, confirm what you heard and offer some kind of relief or explanation.  In 80% to 90% of these situations, the naysayers can be neutralized or even turned into advocates with these tactics.  Since bloggers can’t see their audience, they tend to write in strong terms, sort of like shouting into the wilderness.  Once you personalize the interaction, they usually back down.  Start by commenting on the blog and also by sending a private e-mail.  It may even be worth picking up the phone.  The more you humanize the interaction, the quicker you’ll bring them around.

Recommended Reading, 11/18/08

This 49-minute podcast from iMediaConnection’s Brand Summit interested me not so much for the marketing case study (although it’s a very good example of viral marketing) as for the honest description of the barriers these two Kraft brand managers confronted in selling their word-of-mouth marketing campaign. You won’t often hear corporate marketers speak so frankly about internal politics.

Adam and Tyler had to repeatedly sell the concept of giving up control over the message to skeptical colleagues, corporate lawyers and top management. Even after the campaign had successfully concluded, they still faced opposition. In some cases, they dealt with it by simply ignoring it or telling people what they wanted to hear. There’s also a good account around minute 40 of how they entered the blogosphere to engage with online critics when the guidance from management and legal was to remain silent. Here’s a link to a written interview, but you’ll get a fuller story from the podcast.

Josh Bernoff has a nice wrap-up of the blog/Twitter/Facebook storm that erupted this past weekend over J&J’s ill-considered “Motrin Moms” ad. The company could have avoided the whole mess by testing the ad with a group of moms, who are some of the most active online networkers. Such a simple way to avoid embarrassment and the cost would have been minimal. Now J&J’s smarting from the whole experience. McNeiil’s VP of marketing has the mea culpa here.

The credit company is experimenting with a Facebook community that offers small business owners a way to connect with each other and to get business management advice from Visa. More than 21,000 members have joined and the repeat-visit rate is twice the industry norm.

Here’s a novel promotion for the forthcoming movie “The Day the Earth Stood Still.” 20th Century Fox is creating a global participation campaign that enables people to vote on what they would save if the earth truly stood still. From the press release:

Earth’s Vital List, which launches today, poses the question, If the earth was under attack what would you save? Consumers are asked to build a “Vital List” of 12 items (people, places or things) they would save on “the day the earth stands still.” Vital lists can be shared with friends encouraging feedback and votes on which items are truly vital. The world’s most vital items will be tabulated on a global microsite. The site also provides visitors with a view on how items are being ranked around the globe.

I recently criticized corporate bloggers for spewing happy talk while the financial world melted down. So it was nice to see this profile of Marcy Shinder, VP of brand marketing and stategy for American Express OPEN. Amex responded quickly to the Wall Street crisis with a series of articles and multimedia messages aimed at small-to-medium businesses and outlining what the crisis means to them as well as steps they can take to survive the downturn.

Metrics expert Mark Ghuneim suggests that we still have a long way to go in evolving our thinking about viral video metrics beyond view counts. Marketers are beginning to think more holistically about how to measure success. Quoting:

According to a recent FEED Company study, some 70% of ad-agency and media-buying executives plan to increase budgets for viral video marketing in 2009. In addition, 72% of ad-agency executives and media buyers say their clients are “interested” or “very interested” in using viral video as an integral part of their marketing campaigns….

“Favoriting,” commenting, linking to, embedding, social network amplification and other action all constitute a level of user attention that must somehow be accounted for and given appropriate value.

In addition, a marketing executive would also want to know how users were discovering their video, as well as how quickly the view counts were growing. The velocity of consumption and adoption is an important indicator as well as factors beyond the standard impression and stream data. For example, are bloggers talking about the video? Are users micro-blogging about the video?

With an average member earning about $110,000 a year and more than $100 million in investment capital in the bank, you’d think LinkedIn would be sitting pretty. Yet the company is laying off about 36 people. Smart move. Don’t let VC love make you fat and happy.

Om Malik has little nice to say about Jerry Yang’s stewardship of Yahoo. Yang now basically admits he should have sold to Microsoft when he had the chance and the collapse of a partnership with Google is particularly painful. With the economy now in the tank, what’s next?

BusinessWeek is all breathless about the energy that social networks brought to election day, and there are some good stories/examples here. However, listen to NPR’s story on turnout levels for a more sobering view. Turnout was good for the US, but we still lag far behind other democracies.

Privacy advocates may blanch, but I think this is a totally cool way to mine patterns from search behavior that contributes to the common good. What an innovative idea!

Interesting Reading, 11/13/08

Traditional Media Hit Harder Than In Past Recessions

It used to be that three mainstream media channels – newspapers, radio and magazines – reliably predicted the economy’s decline into a recession and its recovery. That all changed about three years ago. Newspapers and magazines fell while the economy was rising and show no sign of anticipating a recovery. The results, writes Erik Sass:

While softening ad revenue anticipated the two previous economic downturns by about a year, in the most recent case, the slowdown for magazines, newspapers and radio began about three years before. In addition, the declines have already proven to be steeper in this pre-recession period than at the height of the previous ones. This suggests that all three traditional media, suffering from both secular and macroeconomic trends, are poised to suffer unprecedented losses in the economic downturn that is now unfolding.

Magazine Ad Pages Drop, Holiday Season Looks Grim

OMG, these numbers are terrible. At least we’re all in this together. Quoting:

On Oct. 28, the Conference Board announced that its consumer confidence index had plummeted to an all-time low of about 38 out of 100, a drop of over one-third from its level of 61.4 in September. The expectations index–which evaluates consumer sentiment about the future–went even lower, dropping from 61.5 to 35.5. Lynn Franco, director of the Conference Board’s research center, said the decline in the confidence index was “the lowest reading on record” since the index began tracking consumer attitudes in 1985

Macy’s said it will eliminate all magazine advertising in the first half of 2009, although its holiday marketing budget is still largely intact. Subsequently, The New York Times reported that Neiman’s specialty retail segment–including Neiman Marcus Stores and Bergdorf Goodman–saw sales tumble 27.6% in October, while Nordstrom is down 15.7%, and Target fell 4.8%.

Online Retailers Tightening Belts

Here’s one explanation for the story above. Quoting:

  • In a Shop.org holiday survey, 30% of online retail marketers said they were trimming marketing budgets, while 16% said they were reducing promotional spending.
  • 45% of retailers said their budgets for free-shipping promotions were either significantly or somewhat higher compared to last year.
  • Forrester projects sales this holiday season will grow at the slowest rate ever, 12% vs. 21% a year ago.
  • 45% of online consumers plan to buy less overall this holiday due to uncertainty about the economy, up from 20% in 2007.
  • A full 21% of consumers plan to shop primarily or entirely online this season, up from 19% last year. And 24% of total dollars spent this season are expected to be spent online, compared with 22% last year.

Marketing Executives Networking Group Survey Finds Social Media Practices Still in Infancy Stages

A survey last month and found that 67% of respondents consider themselves beginners at using social media for marketing purposes. Additionally, more than 87% of respondents are not regularly measuring the ROI of their social media marketing efforts. “

Metrics expert Mark Ghuneim suggests that we still have a long way to go in evolving our thinking about viral video metrics beyond view counts. Marketers are beginning to think more holistically about how to measure success. Quoting:

According to a recent FEED Company study, some 70% of ad-agency and media-buying executives plan to increase budgets for viral video marketing in 2009. In addition, 72% of ad-agency executives and media buyers say their clients are “interested” or “very interested” in using viral video as an integral part of their marketing campaigns.

“Favoriting,” commenting, linking to, embedding, social network amplification and other action all constitute a level of user attention that must somehow be accounted for and given appropriate value.

In addition, a marketing executive would also want to know how users were discovering their video, as well as how quickly the view counts were growing. The velocity of consumption and adoption is an important indicator as well as factors beyond the standard impression and stream data. For example, are bloggers talking about the video? Are users micro-blogging about the video?

BusinessWeek is all breathless about the energy that social networks brought to election day, and there are some good stories/examples here. However, also listen to NPR’s story on turnout levels for a more sobering view. Turnout was good for the US, but we still lag far behind other democracies.

Top Five Ways to Piss off a Blogger

Google Aims To Predict Flu Outbreaks

Privacy advocates may blanch, but I think this is a totally cool way to mine patterns from search behavior that contributes to the common good. What an innovative idea!

With an average member earning about $110,000 a year and more than $100 million in investment capital in the bank, you’d think LinkedIn would be sitting pretty. Yet the company is laying off about 36 people. Smart move. Don’t let VC love make you fat and happy.

Om Malik has little nice to say about Jerry Yang’s stewardship of Yahoo. Yang now basically admits he should have sold to Microsoft when he had the chance and the collapse of a partnership with Google is particularly painful. With the economy now in the tank, what’s next?

An Online Video Strategy That Hits The Mark

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I just returned from my second trip to Toronto in the last two months and was again impressed with the Web-savviness of the Canadian audience. Did you know, for example,that Canadians are the world’s most active users of Facebook? Or that Canadians spend, on average, two morehours per week viewing online video than their counterparts south of the border?

And don’t give me that “Of course! It’s cold up there!” cliché. Canadian homes are wired and its businesses are doing some very innovative things to reach those web-savvy customers.

Take FutureShop. Canada’s largest consumer electronics retailer is using online community not only to learn more about its customers, but to help sell products and support customers. It has built an online advisory and customer support service that is like nothing I’ve ever seen.

“Ask an Expert” is formulated on a high-touch model in which sales associates are taught to be valued customeradvisers. The company has come up with a strategy to duplicate that real-world experience online. The screen shot shows “Aaron,” one of the video avatars who guides customers.

Since mid-2007, visitors to Future Shop’s website have been greeted by a video image of a sales associate who offers to help guide their experience. Customers can ask any question of the avatar (he’ll even dance for you) and get results from a growing database of advice contributed by sales associates and customers. Future Shop created the video front-end itself and bound it to a community portal from Lithium Technologies.

“We’re trying to blur the lines between the offline and online experience,” says Robert Pearson, Future Shop’s director of e-commerce. “Our goal is to become the largest technology community in Canada.”

Future Shop is well on its way to that objective. In less than a year, the site has signed up 50,000 members, which would be equivalent to about 450,000 members in the much larger U.S. market. But the community isn’t just a discussion forum. Future Shop co-developed a ranking system with Lithium that lets customers provide feedback on each other and on the quality of information offered up by sales associates. Customer contributors can earn discounts and status in the community. The most helpful sales associates can earn cash.

Next up: Facebook-like functionality that gives contributors their own personal spaces and ties sales associate profiles to store locations. Success is measured by a survey of customer affinity with the brand. It’s still too early to draw measurable conclusions, but all the trends are pointing in the right direction. “We’re getting about 250,000 visitors a day out of a population of 33 million,” Pearson says. “That’s many more than come into a store. We actually see people walking in with printouts and asking for specific experts they’ve met online.”

Future Shop isn’t using video to be cool. It’s using video to reinforce an in-store experience that is essential to its business strategy. It has also bound its customers to the company in a way that is rewarding for both parties. The company is now owned by Best Buy, so I wouldn’t be surprised to see a similar capability showing up on a retail website near you.

Report: Half of online adults, 85% of online kids to use social nets by 2011

eMarketer says that 37% of online adults use social networks at least once a month and that the figure will grow to nearly 50% by 2011. Among teens, usage is already well over half and will near 85% by 2011. Social nets clearly offer value that conventional news and information sites don’t.

Allan Cattier, Director of the Academic Technology Group at Emory University gave a mind-blowing statistic in his presentation to the Communintelligence Executing Social Media conference in Atlanta last month. He said Emory had surveyed its freshman class and found that more than 80% of the students log on to Facebook 18 or more times a day. Imagine how our institutions will be shaped by this trend in coming years. He also showed a compelling video called “A Vision of Students Today” created by Michael Wesch in collaboration with 200 students at Kansas State University. See below.

Why most viral video is stupid

Bulldog Reporter‘s Daily Dog has an exceptionally thoughtful and well-informed article on the viral video craze that lambastes marketers for trying to add in viral buzz after a campaign has already been created. Author Andrew Foote’s point is that anything that doesn’t look genuine will be savaged by the community – and rightly so. He cites some excellent examples. If you’re a marketer trying to get a handle on the viral phenomenon, read it.

Why there'll be no social media bubble

South by Southwest is my seventh social media conference in about a year (the others were Syndicate, Gnomedex, BlogHer, Podcast Academy and New Communications Forums in Boston and Las Vegas) and I’m again impressed with one thing: the lack of interest in financial rewards or profit motives on the part of the participants.

That fact was driven home to me again this evening, in a panel session called “Production Companies 2.0: Taking Online Video to the Next Level,” which featured some of the early winners in video blogging. In contrast to the industry panels of a decade ago, which were all about creating huge new brands and reaping rich rewards for the founders, this session focused on issues of artistic control, voice, independence and freedom from the pressure of commercial interests.

Ryanne Hodson of RyanIsHungry.com spoke about the importance of not signing away control over content to investors, while Andrew Baron of Rocketboom boasted about new features on his site that enhance social networking features and make it more useful to viewers. “The vast majority of our discussions about Rocketboom are about how to make it better for the audience,” he said.

Where money was discussed, it was always in the context of how video bloggers could manage to make a living from their craft. Rock-star blogger Robert Scoble actually drew oohs and ahs from the audience for mentioning that he had signed a sponsorship deal for his video blog totaling $300,000. A decade ago, such a small amount would have prompted snickers.

As a veteran of forward-looking industry conferences going back more than 20 years, I find this spirit remarkable – and refreshing. Ten years ago, the tony Internet industry confabs attracted swarms of bankers and venture capitalists looking for the next billion-dollar company. Entrepreneurs who played the game successfully at the time were rewarded with billion-dollar payouts. In contrast, Jason Calacanis, arguably the most successful social media entrepreneur to date, sold out to AOL for $25 million. That’s nothing to sniff at, but it’s a far cry from the payouts awarded to the founders of Yahoo, Lycos and Broadcast.com.

Last September, I wrote a column in BtoB magazine (the original doesn’t appear t be online since BtoB revamped its website) arguing against the probability of a social media bubble. “Bubbles need air supply in the form of venture capital and inflated expectations for investors. They also need a payoff. Almost none exists in this market,” I wrote at the time. I still hold firm to that position. Perhaps the big money is still waiting on the sidelines for a viable business model to emerge, but I think they’ll be waiting a very long time. The Internet bubble of the late 90s was driven by investors’ misguided assumptions that the Internet was a channel for big media and big brands to emerge.

In fact, the opposite is true. Social media is fulfilling the Internet’s promise to make it possible for millions of small communities to form around very specific areas of interest. People now have the tools to share and comment upon information that’s compelling to very small groups – and to do it at almost no cost. Political super-blogger Glenn Reynolds calls this phenomenon An Army of Davids and the terminology is apt. The Internet is all about specificity, not generality. It just took us a decade to realize that.