FollowFridays 2011 Session 1: Social Media, the most overrated trend in business.

Social Media: the most overrated trend in business

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The Radically Digital Division of Proximity BBDO

Does being radically digital make us digital fundamentalists?

The most overrated trend in business

The most underrated trend in business

The new and improved role of traditional media

Social Media: the most overrated trend in business

My guess is that 9 out of the 10 people who believe in

social media advertising/ROI are those selling this hype to others

John Jackson, quote from his comment on a Fast Company article about Social Media ROI

http://www.fastcompany.com/magazine/157/joe-fernandez-klout-social-media

http://www.fastcompany.com/magazine/157/joe-fernandez-klout-social-media

THE SOCIALLY SMART(ER) COMMERCIAL

“Our study found that 63% of TV commercial impressions were avoided simply by not paying attention to the screen.”

most watched American television broadcast

one of the most watched sporting events in the world

most expensive commercial airtime of the year

$ 120,000/day

+12,000 tweets

Did the Twitter campaign prompt anyone to consider buying an A8 or go to a dealership to test-drive one?

Did the tweets inspire an outpouring of positive brand feelings toward Audi?

Doug Clark, Audi of America's general manager for social media and customer engagement

Today the equation to measure that doesn't exist

How do you gauge the value of a Twitter audience?

http://www.klout.com



Is social media a bit of a black hole?

Social Media: the most underrated trend in business

Google Adwords

Where in the Media Spectrum does social media fit?

TV advertising

& Long TermShort TermMight be RelevantHighly Relevant

ImpressionsConversionsGRPCPA

Short TermHighly Relevant

ConversionsCPA

Long TermMight be RelevantImpressionsGRP

105K users?4,4 million users

25K users?

Social Media

* Belgian figures

"Typical approaches that focus on raw fan counts, or the total number of engagements on a given piece of content, fail to depict the potential and realized scope of social media

brand impressions"

The Power of Like, Co & Facebook, May 2011

To leverage Facebook as a viral platform,you have to understand what makes it tick

slide van viral uit vroegere presentatie met daarin meer en meer en meer

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vaststelling dat het over 1 graad gaat

Social Epidemics*: the Law of the Few

*Malcolm Gladwell: “The Tipping Point”.

Influentials

MILLI!

NS

"""

!!!!!

!!!!!!!

!!!!!!!!!

Only Certain People Can Drive Trends

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vaststelling dat het over 1 graad gaat

Social Epidemics*: the Law of the Few

Duncan Watts, recent research for McKinsey Quarterly & Yahoo! Research

!

!!!!!

!!!!!!!!!

All people can drive trends,but only some will

What we recently stumbled on is that almost nothing spreads. Instead, the vast majority of all adoptions happen

within just one degree of the seed.

Duncan Watts, Principal Research Scientist at Yahoo! Research in McKinsey Quarterly, July 2011

All of these so-called Viral videos benefited from tremendous mass-media coverage. Once you get your video on the front page of Yahoo!,

100 million people see that.

So this is not about viral anymore. This is mass media.

Duncan Watts, Principal Research Scientist at Yahoo! Research in McKinsey Quarterly, July 2011

The Standaard homepage article gave an immediate boost in viewsand as a result reached much more worldwide mainstream media.

1 million

2 million

3 million

4 million

21/09 26/09 10/03

FACEBOOK, A VIRAL PLATFORM

MOST EYE-CATCHING CHANGE

friends of fans fans

friends of fansfriends of fans fans

6.059

1.254.213

# fans

# unique friends / fan

23.000.000

6.059

34 207

784.000.000

1.245.213


ComScore finds a high degree of similaritybetween the tastes of friends.

HOW TO COLLECT FANS (&FRIENDS OF FANS) THE RIGHT WAY?

Two ways to get people to “like” you...

organic marketing efforts

organic

Like Widget“Friend us on FB”

Search

Friend Suggestion

Ads

marketing efforts

Like us first & win...

Share a wall post and get a coupon!

Invite friends toget benefits.

Leave your credentials for a

wallpaper...

Like-gates

Invite Friends

Exclusive Content

Coupons

This begs the question, how much efforts are consumers willing to exert in order to get something in return?

Alex Bernstein, managing partner at North Social

http://www.northsocial.com/

http://www.northsocial.com/

Two typical consequences

Your virtual fan base resembles or differs from your actual fan base

Your brand new fans are staying or leaving you.

like-gate

like widget

Two typical consequences

UNDERSTANDING HOW SUCCESSFUL POSTS ARE CREATED

Remember this slide?

Luckily for me, Facebook created Edge Rank

Every post that gets published to the Wall receives a quality score, called Edge Rank.

Edgerank = ∑ affinitye weight e time decay e

e=1 n

x x

It’s a little bit about math...

affinity of an edge

is higher

1) for fans who

frequently interact

with your updates

2) for interactions

by friends who are

fans as well

every type of edge has a specific weight:

1) on the creation side: some types of posts are

worth more2) on the interaction side: a comment is worth more

than a like or a share

the time decay is

higher

1) if an edge is

recent enough

2) in comparison

with the previous edge

an edge is an interaction with your wall post: a like, a

comment, a share as well as the post itself

5 tips & tricks to create better posts


Use content types that are more heavily weighted

Questions Videos Pictures Wall PostsShares

Comment Like


Request explicitly for feedback & interaction

Photo Tags

+Questions


Time your posts to garner the greatest response.Use the Facebook Conversational Calendar via http://www.facebook.com/business/pages/

http://www.facebook.com/business/pages/

http://www.facebook.com/business/pages/


Analyze your page statistics and focus your efforts on the best scoring tools, demographics, times of day etc.


Use Tools to help you understand what’s behind it all

Facebook.com/Insights gives basic insights

PageLever has detailed statistics Vitrue has an extended analytics suite

EdgeRank.com tells you your edgerank

WHERE DO MY FANS CONSUME MY CONTENT?

It helps to understand what people do on Facebook

25%

10%

17%

21%

27% NewsfeedOther

Apps

Profiles

Photos

Good news? Think Again.

1 day 3 days2 days 5 days4 days 7 days6 days

10%

20%

1 post/day, 7 days a week only reaches 21% of your fan base!


21%

27% Newsfeed

Profiles

Photos

Remember this slide?

Depending on your posts’ Edge Score, it ends up...It used to be “simple”...

Top NewsMost Recent

Depending on your posts’ Edge Score, it ends up...

Ticker Top StoriesRecent Stories

... since two weeks there’s an extra threshold

Every light has its shadow...

newsfeedimpressions

commentslikes

10%

20%

-20%

-10%

-30%

“spammy content”

is being punished

good posts are rewarded with attention

FOCUS ON INTERACTIONS VIA OPEN GRAPH APPS

“Like” has been synonym for “am a fan”but its exact meaning has been more diverse...

I 10 years of Techno

I Volvo C30

I Porsche Panamera

I Levi’s 501 Jeans

I Chocolate Crumble

means

means

means

means

means

I

I

I

I

I

10 years of Techno

a Volvo C30

a Porsche Panamera

a Levi’s 501 Jeans

a chocolate crumble

will visit

drive

dream of

want to buy

just ate

Diverse meanings for one verb...

I 10 years of Techno

I Volvo C30

I Porsche Panamera

I Levi’s 501 Jeans

I Chocolate Crumble

means

means

means

means

means

I

I

I

I

I

will visit

drive

dream of

want to buy

just ate

Guess what... It is possible

10 years of Techno

a Volvo C30

a Porsche Panamera

a Levi’s 501 Jeans

a chocolate crumble

want one

have one

website

Where to use the custom verbs...


buy

testdrive

webapps

want one

have one

website

compare

request info


buy

testdrive

webapps facebook apps

want one

have one

website

Users grant immediate permissions to share on their behalf

“Add to Timeline” adds basic timeline sharing permissions

The typical “Allow” button can (optionally!) extend permissions

Users grant immediate permissions to share on their behalf

The result? A timeline update.

Bart Muskala

Bart Muskala

But will it end up reaching a user’s friends? Similar to post updates...

Graph Rank

There is also a multiplier on top of GraphRank that is applied to users that are interested in same interests, near the same location, both fans of the brand etc.

+

There is a quality score for apps, called Graph Rank.

Depending on an app’s Graph Score, actions ends up...

Ticker Top StoriesRecent Stories

The distribution of updates...

Most impressions are consumed in the ticker, generating most traffic.

EXTEND YOUR REACH VIA THE AD SYSTEM

The types of ads

Jan Algoed likes this like

Social Ads

like

Jan Algoed “

“ likes this

like

Sponsored Stories

Jan Algoed likes this

like

RECENT POST

comment

“Expandable Ad Unit”Ads

5 tips & tricks for more effective ads

Make sure to opt for “social” ads over normal ads.


Jan Algoed likes this likelike

average CTR: 0,1% average CTR: 0,36%

average interaction: 0,05%

average interaction: 0,37%

Use user’s content to boost sponsored stories’ CTR


Wildfire’s Storyteller App requests for feedback and generates Sponsored Stories

Boost from 3,3% to 17% conversion rate

Make sure to target friends of fans.Remark: this is standard behavior when choosing for Sponsored Stories.


Analyze your ads’ statistics and focus your efforts on the best scoring formats, messages, demographics etc.


Use tools to get the best out of your ads

Alchemy by Techlightenment allows for easy AB-testing


Volvo Opendeurdagen Banner Ad Test

!

The initial setup...

Jan Algoed is attending Volvo Opendeurdagen 2011

Volvo Opendeurdagen 2011!

The social work-around

Volvo Opendeurdagen Banner Ad Test

A target audience of 1.254.213 Facebook users

Short Term Ad Performance expressed in Incidences

7.523.802impressions

1.010new fans

0,03%avg CTR

2.356clicks fans

Long Term Ad Performance expressed in GRPs

GRP = frequency x % reach

Jan Algoed is attending Volvo Opendeurdagen 2011

11,8 15%x = 177

11,8 39,7%x = 468

Total GRP’s 645

1,55 !Cost/GRP

7,5 million impressions reaching almost 640.000 unique Facebook users!

Long Term Ad Performance expressed in GRPs

Marketing is going to become a much more science-driven activity

The new and improved role of traditional media

We went from a monologue to a dialogue. Mass media will continue to play a role. But its role has changed.

John Hayes, Chief Marketing Officer American Express

To truly engage customers for whom “push” advertising is increasingly

irrelevant, companies must do more outside the confines of the

traditional marketing organization

McKinsey, “We’re all marketers now”

The old consumer decision journey

many brands

fewer brands

final choice

BUY

Today’s consumer decision journey

considerevaluate

enjoy

BONDadvocate

The Loyalty Loop

BUY

DIABOLO MODEL

earned

paid

owned

real

acted

interaction

WE TALK

YOU TALK

impressions

expressions

media

users usage

usagemessageinsights

metrics

Marketing is going to become a much more science-driven activity

Turning to so-called influentials, will make it very hard to actually know or measure what your communication efforts do for your brand

Turning to so-called influentials,

will make it very hard to actually

know or measure what your

communication efforts do for your

brand

The number of fans is only of importance if your content is successful in inviting consumers to interact

Turning to so-called influentials,

will make it very hard to actually

know or measure what your

communication efforts do for your

brand

The number of fans is only of importance if your content is successful in inviting consumers to interact

Traditional media still have an important role to play. Creativity an even more important one.

Social media strategy for suits

COME AND SEE NEXT WEEK

FollowFridays 2011 Session 1: Social Media, the most overrated trend in business.

Business

Transcript of FollowFridays 2011 Session 1: Social Media, the most overrated trend in business.