Digital ThinkingInsights into an evolving online world

Spring 2011

Introduction Doris Juergens

I am confident in asserting that NATIONAL’s client base cuts across all business sectors and all types of organizations: large and small; public and private; for-profit and not-for-profit. The range and scope of the collective businesses of our clients is what makes working at NATIONAL so fascinating. In the same way, social media cuts across all audiences: there is something for everyone, from mass appeal to obscure interests, from the collective good to the good of a select few. And social media can be extremely local or completely regionally agnostic.

Fortunately for our Firm and for our clients, we have a group of extremely engaged and devoted professionals who make social media their business. NATIONAL’s Digital Leadership Team includes members from all of our offices and all of our divisions, including NATIONAL itself, Sonic Boom Creative Media, our digital media agency, and AXON, a specialist healthcare consulting firm.

For this second edition of Digital Thinking, we asked team members to prepare a blog post on a topic of interest to them as it relates to social media. The diversity of subject matter from luxury brands to the regulated environment of pharmaceuticals, is truly a reflection of the limitless possibilities – and challenges – of digital communications. Feel free to contact any one of our DLT members to carry on the conversation, or follow us on Twitter @nationalpr !

Doris Juergens, Partner & Chair, Digital Leadership Team, @juergens

The future of marketing: it’s in the palm of your hand Jennifer Shah

Mobile marketing is more than the latest buzzword. It’s effective and engaging and it’s here to stay. Gartner Research predicts that by 2014, there will be 6.5 billion mobile connections worldwide. For marketers, this presents an amazing opportunity to reach people, drive transactions and enhance loyalty.

But where to begin? First, remember that mobile marketing needs to be integrated into your overall marketing communications strategy, not a distinct activity or ‘‘nice to have” addition. And, it may not be for everyone – yet – depending on your target audience.

For maximum ROI, consider our four Cs of mobile marketing: Customer, Convenience, Context and Cost.

CustomerWho are you targeting, and what are your objectives? Not every organization has an audience glued to their devices. Perhaps you want to enable a mobile workforce or reach small business owners looking to save money on office supplies. Is a mobile application the right tool? For many clients, simple text messages are best to promote time-sensitive and money-saving deals.

ConvenienceThe ability to engage the consumer on the go is the main benefit of mobile marketing. Is your website optimized to be accessed on mobile operating systems? Can relevant information be found quickly and accessed in other applications (such as tapping a phone number to call a store location or highlighting an address to have it mapped from your current location)?

ContextContext is getting a relevant message at the optimal time. Context drives transactions. Location-based services are incredible tools to push messages to customers. Check out McDonald’s recent Foursquare promotion, resulting in a 33% increase in check-ins, or Facebook’s decision to allow businesses to offer coupons through its Places feature.

CostEvery budget can accommodate mobile marketing – it’s not just about splashy mobile applications. Start small with opt-in text messages or an event that offers mobile ticketing. Measure success and expand your mobile marketing portfolio accordingly.

Our advice? Use the four Cs of mobile marketing to evaluate your needs and look at mobile as a key part of your integrated marketing strategy.

Jennifer Shah, Manager, Marketing Communications, Toronto, @jenn_shah

Why we blogBruno Guglielminetti

Pioneer blogger Justin Hall “created” blogging back in 1994, but it wasn’t until 2004 that the blog gained popularity as a public publishing platform.

Today, one in four Fortune 500 companies uses a blog to share its views publicly. A blog serves primarily to position a company with its audiences and provides a channel where it can articulate its corporate vision and its stance on various issues.

Individual bloggers generally have a somewhat different motivation for blogging. Many people start blogging when they feel that the traditional media have failed to represent their viewpoint. Bloggers are passionate about their subject and generally feel that it either isn’t getting enough attention or that the media’s views on the topic don’t align with their own.

These failings are one of the key reasons that experts and people with a keen interest in a given issue feel it is important to express their views through blogs, so that the issue can get the visibility they feel it deserves. Another key reason people blog is for recognition and enhanced self-worth.

For now, more people still read newspapers more than blogs, but bloggers can generally reach their target audience more quickly.

And this is where journalists and influential bloggers cross paths: both provide information and both want to attract attention in their area of interest. In this context, an influential blogger’s keystrokes are just important as those of a journalist. What they both represent is public opinion.

Bruno Guglielminetti, Manager, Digital Communications, Montreal, @Guglielminetti

Bloggers and journalists: toward a single profession? Claude Arsenault

By now, we are all aware of the dramatic shift occurring in the media world. Newsrooms are shrinking, revenues are decreasing, readership is declining. Most people agree that the Web in general and online news outlets in particular have been a major factor in this shift. A recent survey conducted by PRWeek in collaboration with CNW Telbec shows that journalists have seen their workload increase over the past year to include online reporting and social media presence.

On the other hand, bloggers are becoming more and more influential. Their reach and exposure have increased exponentially – not to mention their credibility.

But the word “blogger” remains hard to define: Online journalists or citizen reporters? Amateurs or professionals? Credible news sources or rumour mills?

Although both blogs and traditional outlets are now considered media by most standards, and even though more and more journalists also take on the role of bloggers, can we go as far as to assume that bloggers and journalists are blending into a single profession?

I think not. Why? There is significant difference between both groups: most bloggers don’t have to write about a topic that was assigned to them – in fact, they don’t even have to write at all. Their personal interest can therefore become a greater driver than public interest. Bloggers and journalists also use different sources: while bloggers rely heavily on social networks and online sources, journalists turn more frequently to offline sources.

The media world is undoubtedly evolving, and more people are seeing their opinion published and respected. But in a fast-paced environment like the Web, care must be taken to establish the credibility of authors before giving them our trust, and that is especially true for public relations practitioners who must engage with bloggers for professional purposes.

Claude Arsenault, Consultant, Montreal, @cl_arsenault

The new black: luxury brands embrace digital Jeffrey Spivock

The world’s most famous luxury brands share similar origins – a forward-thinking entrepreneur had a keen insight into a unique need and created an innovative solution for a premium price. Coco Chanel created clothes for women who sought to shed their corsets. Christian Dior sensed the hunger of post-war women for a sleek New Look. Louis Vuitton gave the first generation of globe-trotters stylish luggage solutions.

Today, luxury retailers continue to set the benchmark for discriminating shoppers, including high-calibre design, differentiated retail experiences and concierge-like service. Oddly, they lag in digital marketing as a fundamental part of the customer experience. This despite high net-worth individuals (HNWI) being among the first to embrace new technologies, given their higher disposable income.

It seems there’s a fear that “luxury” cannot be delivered in a digital format, which simply isn’t the case. Consider Net-a-porter.com, for example, which became a $600 million company in less than five years by making luxury accessible and delivering its products to your front door.

Digital marketing isn’t just about the transaction, but enhancing and adding value to the customer experience. When customers seek information about a brand – whether via their laptop, tablet or mobile device – the online experience becomes a critical touchpoint in the purchase decision.

A recent study found that 71% of Canadians visited a store website for shopping information, and 52% visited a store website before they visited that store to make the purchase. Through exclusive online offers, targeted email messages, mobile personalized messages, video testimonials and other techniques, luxury retailers can embrace their HWNI audience and stay true to their brand.

As more consumers embrace digital as a way of life, retailers need to step up their game and embrace it. A simple website or a lone Facebook page does not honour the entrepreneurial spirit of the founders. Truly integrated digital marketing enables a brand to glean further customer insights, provide more personalized service and deliver both meaningful and unique benefits. What could be more luxurious than that?

Jeffrey Spivock, Senior Consultant, Toronto, @JeffRetail

Digital ideation: sourcing great ideas from your fans Mark van Tol

Crowdsourcing is one of those new digital words on everybody’s lips. It’s become hugely popular because it is cost-effective, engages your target audience and can provide a brand with a much needed breath of fresh air.

Crowdsourcing is really the “outsourcing” of ideation to the general public or a specific invested community. When successful, a crowd sourcing campaign can create buzz, viral content, and positive media coverage – all for a relatively small investment.

So when should companies consider stepping in the fray?

Understanding your audience is paramount. Without this your campaign will never blossom. You want your crowdsourcing program to build brand loyalty and ultimately drive purchase decision. The more engaged participants are, the better the ideas will be.

For example, Chiquita’s Banana’s recent sticker design contest invited consumers to visit Eat a Chiquita.com and asked them to design their own personalized stamp on the classic sticker. Winning designs will be featured on millions of peels. It’s a fun and unique contest, using video and other tools to facilitate sharing.

The “My Starbucks Idea” is another example of crowdsourcing done well. The initiative is aimed at retaining customer loyalty for the coffee giant by giving fans an avenue to share their ideas for making Starbucks better. Everyone votes on the ideas and the best ones are implemented by the company.

As these examples demonstrate, digital marketing can be a great way to engage your fans in your brand. Keep in mind that the right incentive is not always money – it can be a unique experience, a job, or recognition. It’s important to align the incentive with your “ask”. The more you demand from your community, the greater the incentive should be.

Crowdsourcing develops a connection between organizations and their audiences. By asking for direct input from your fans and followers, it not only leads to great ideas but also a sense of ownership and possession of your brand, which engenders true customer loyalty and audience engagement.

Mark van Tol, Consultant, Toronto, @mvt

Digital marketing in a social world Carolyn Ray

Over the last five years, Facebook, Twitter and other digital marketing tools have dramatically and permanently altered the way businesses interact with customers. Never have we had so many new and exciting opportunities to engage with diverse audiences.

But are Canadian organizations embracing digital marketing in a big way, or are we still waiting for the light to go on? Recently, I attended the Canadian Marketing Association’s Digital Day in Toronto. With speakers from Molson, HP, Ivanhoe Cambridge and others integrating digital marketing as part of their overall marketing communications strategy, it’s clear that digital marketing tools such as Facebook, blogs, micro-blogging and email campaigns are no longer optional.

Fuelled by the recession, businesses are migrating from traditional vehicles to Facebook, search-engine advertising and email campaigns. In Ipsos Reid’s annual Digital Marketing study, 66% of senior management are very interested in digital marketing, an increase of 10%.

In North America, 70% of marketers use search-engine marketing (SEM) and search-engine optimization (SEO), up from 56% just two years ago. With 89% of consumers using search, SEM/SEO is fundamental. Social marketing sites, such as Facebook, have increased significantly, with 52% usage (from 35% in 2009). However, despite the increase in micro-blogging and high consumer awareness of Twitter, only 8% of Canadians use Twitter.

Looking into 2011, savvy marketers should consider integrating mobile and video into their marketing communications strategy. Hailed as the next frontier, mobile goes far beyond applications and includes location based services, badges, SMS contests, mobile advertising, couponing and Bluetooth notifications. With its ability to stimulate viral movements, online video marketing is an engaging way to create preference and affinity.

As marketing communications professionals, we have an incredible opportunity to use digital tools to drive dialogue and influence choice, and help brands become more relevant to their target consumer in an increasingly connected and social world.

Carolyn Ray, Vice President, Marketing Communications, Toronto, @dialoguedivaray

Getting noticed in a cluttered media environmentNadia Paquet

Even with the growing popularity of social media, the so-called traditional media are still an essential news source with a decisive influence on public opinion. Last year, daily newspapers in Canada sold over 4.1 million copies every day. Many people still see newspapers as more credible than their instant-access web counterparts.

But the traditional media are adapting to the new digital reality by changing the way they do things. They are offering new avenues for distributing content, as evidenced by their websites and journalists’ blogs.

How do you stand out in this environment of information overload and beleaguered journalists?

A recent survey commissioned by anInconvenientPRtruth.com made an alarming finding: 78% of news releases emailed to journalists – to the tune of more than 1.7 billion annually – are considered irrelevant.

Today, it’s no longer enough to put a release on the newswire and follow it up with a generic call. Greater effort is required up front since, more than ever, communication is a two-way street. Regardless of the media outlet, it’s important to be relevant and serve the needs of its audience.

You can make the most of the information overload in newsrooms by ensuring your content is carefully adapted and of the highest quality. In this context, journalists appreciate your customized suggestions since they stand out from the rest and satisfy their needs.

In addition, the traditional media must focus on depth and analysis to remain competitive. Let’s give them content they can use to put the news into perspective.

More than ever, public relations specialists need to be relevant by providing their clients with a personalized media strategy adapted to each media outlet and a credible, available spokesperson who understands this reality, regardless of the platform.

Nadia Paquet, Manager, Media Strategy, Montréal, @nadiapaquet

Rx to communicate: the e-patient will see you nowMario Nacinovich

Across the multidisciplinary fields of healthcare, social media is thriving and facilitating understanding through the availability of health information sources, dynamic communication tools and two-way ongoing symmetrical conversations. Nowhere is there a greater need to meet the demand for increased communication and trust than between patient and healthcare practitioners and patient and healthcare brands.

Pew Research recently reported that 60% of people search for the health experiences of “someone like me.” E-patients are using social media to gain other patients’ perspectives on decision-making and beyond. With blogs, Facebook communities and daily tweets of health status or information, social media in healthcare is changing the very practice of medicine.

While there are concerns across many healthcare systems regarding legal and privacy issues, the social media conversation is proving difficult to regulate. E-patients are finding new ways to seek diagnostic support with healthcare professionals. And in some countries, branded and unbranded product education and promotions from marketers in the pharmaceutical, biotech, medical device and diagnostics industries are driving the online conversation.

Physicians themselves are embracing social media and trusting online education and patient-support resources. Tactics like brand-sponsored patient communities (such as PKU.com and the HER Story Community), non-brand sponsored communities (such as dLIfe and Patients Like Me) and exclusive healthcare professional communities (DocCheck, Medscape Physician Connect and Sermo) are changing the landscape.

Bottom line: social media is empowering patients to seek solutions and this, in part, is improving connections with healthcare providers online and off. While we are witnessing dynamic evolution within many healthcare systems around the globe with the diagnosis and treatment of various illnesses or medical conditions, the touchpoints and channels that are being advanced online are helping provide a holistic approach to addressing unmet patient needs and communicating with patients on their terms.

From physician practices to pharmaceutical companies, we must now consider how best to connect with patients and facilitate an unparalleled and ongoing engagement.

Mario Nacinovich, Managing Director, AXON, New York, @nacinovich

Pharma goes social Elisabeth Mozel-Jury

For many industries, social media have become a standard element integrated into their product and company marketing plans. The pharmaceutical industry, however, has lagged behind, dissuaded by both the real and perceived barriers posed by the industry’s stringent regulatory environment. However, with 70% of online Canadians accessing – and discussing – health information online, the time for keeping our head in the sand is over.

The reality is that even if you, as a company, are not driving online content about your brands, the general public likely is. Patients are sharing the specifics of their treatments, symptoms and progress online. Regular monitoring can help marketers understand the concerns of patients as well as the misinformation that is online. All of this helps inform a comprehensive marketing strategy both on and offline.

Once you have the lay of the online world, the question becomes how and when to start involving social media proactively in your plans. Recently the Pharmaceutical Advertising Advisory Board and Advertising Standards Canada opened the door for those who want to take the plunge and start engaging online. In a nutshell, their stance is that it is possible to create sites or pages that allow user-generated content (UGC) but it is important to note that any online activity related to pharmaceuticals is considered advertising.

Beyond ensuring that a branded or disease-specific campaign aligns with Health Canada’s imperatives, any initiative must also be monitored regularly to ensure that any UGC, such as comments, photo or video uploads, or forum posts do not move the site into non-compliance. As the owner of the site or page, your organization maintains responsibility for the content, even when it isn’t yours – and must remove any content that falls outside of what is allowable. Having disclaimers on the site, or tools in place to allow vetting of UGC before it is posted can help maintain a compliant site.

Our advice for pharmaceutical companies? Make the move to social media, and when you do, be sure to navigate the regulations and understand how to reach your audience effectively.

Elisabeth Mozel-Jury, Senior Consultant, Toronto, @LizMo

Garbage in, garbage out: the perils of unexamined social media monitoring and measurementCasian Moscovici

No less an authority than Wikipedia informs us that Garbage In, Garbage Out (GIGO) is a phrase that was popular in the early days of computing, but applies even more today, when powerful computers can spew out mountains of erroneous and irrelevant information in a short time.

Blogs, tweets, forum postings and shared videos and pictures are certainly not exempt from the GIGO disease. Loaded with rants, spam, lies and advertising disguised as information, social media postings cannot be collected, analyzed or acted upon without an examination of their origin, provenance and content.

Such examination requires hard work and healthy skepticism from analysts, researchers, brand managers, communications staff and anyone else interested in social media conversations. We can’t leave quality control to Google or the social media aggregation tools and services we employ to provide content for our monitoring and analyses. Our clients and colleagues depend on our expertise and judgment.

Monitoring consumer brands is especially problematic. At least 80% of social media postings and conversations about most brands consist of mass-produced invitations to purchase the product. Automated filters are helpful but still leave behind far too much unwanted and irrelevant material to take at face value. Commercial blogs, tweets and postings are so cleverly disguised as information or normal conversation, it is virtually impossible for even the most sophisticated algorithms to filter out all the spam.

What can we do about this deluge of garbage that overwhelms filters and makes a mockery of the pretty charts and tables generated by our well-meaning but oblivious tools? There are two approaches.

One is to use monitoring tools and services that index selected social media sources which have been vetted for relevance and authenticity. The other is to manually select a sample of relevant and legitimate posts, tweets and conversations for analysis and reporting.

The choice, of course, depends on many variables, but whatever approach is selected, to report monitoring and analysis results based on unexamined and poorly filtered data is neither honest nor accurate. We must provide reports based on legitimate sources and authentic conversations to properly understand and measure the social media presence, reputation, penetration and influence of our organizations, brands and campaigns.

Casian Moscovici, Vice President, Research, Toronto

Tweeting your way to a liquid stockPeter Block

For many small to mid-sized companies, getting attention is always a challenge. The historical reliance on analysts and the media does not work when there are fewer sell-side analysts (Ernst & Young estimated a drop of more than 80 per cent over the last decade) and reporters.

Social media can address that void, but many companies have a degree of trepidation when the subject is raised. It is either seen as a considerable investment of additional time and effort or a significant disclosure risk that is best avoided. So let’s discuss what an “integrated investor relations” program can do for your company.

Investor relations (IR) is a two-way flow of information between a public company and the investment community. Social media allows users to disseminate information using highly accessible and scalable publishing techniques. “Integrating” them can be done by:

• PostingyourinvestorpresentationonSlideShare

• UploadinganycorporatevideostoYouTube• Joiningrelevantindustrydiscussiongroups

on LinkedIn • Invitinginvestorstosubmitwrittenquestions

in advance of your next quarterly conference call via your website. Answer the questions on the call and post the transcript

• CreatingandkeepingcurrentaWikipediapage dedicated to your company

• UsingTwittertopushcorporateannouncements and send links to relevant industry developments

While social media is more than the one-way pushing of information, any IR program already responds to inquiries and engages in discussions with its investors. Just as the concern about disclosing non-public material information at a conference does not prevent companies from attending, similar concerns should not bar the use of tools to reach those interested in your company.

A good IR program informs investors about the company, enhancing liquidity and improving the efficiency of the market. A recent University of Michigan study found that dissemination of news via Twitter was associated with lower bid/ask spreads, particularly for smaller companies with few analysts covering them.

Social media need not be intimidating, excessively time consuming or a risk of violating securities rules. Rather, it can help keep a disparate group of investors informed and engaged about what is taking place at your company, allowing them to make better investment decisions.

Peter Block, Vice President, Financial Communications, Toronto, @PeterBlock

For 35 years, NATIONAL Public Relations has

helped Canada’s leading organizations reach

their business goals with bold thinking that drives

innovative communications solutions. And for over

15 years, Sonic Boom Creative Media has helped

clients understand, embrace and optimize the

massive potential of the digital world. Together

we have the strategic, creative, technological and

subject matter expertise to help you seize the

potential of the digital landscape.

Contact us: digital@national.ca twitter.com/nationalpr