New Media and Wine

Modern Methods of Communicating Directly to Your Customers:

How effective is New Media in terms of recruitment and sales?

Presented by: Paul Mabray, CEO of VinTank

Marc Engel, Partner and Director of Wines Practice, B/R/S Group

Flow

1) Who We Are2) What is ‘New Media’?3) What Does It Mean for Wine?4) Is New Media Effective for Recruitment and

Sales?5) Lessons6) Workshop It

WHO WE ARE

Two guys. Two Opinions.

• 17 year online wine veteran.• Work for the only digital think tank in the

wine industry.• Wrote a tiny little report about wine and

social media called “We are here” and then gave it away for FREE.

Marc EngelPaul Mabray

Two guys. Two Opinions.

• No, I don’t work for Paul• Marketing researcher• Listen to the voice of the consumer (and trade)• Presented “Engaging the U.S. Wine Consumer: A

New Paradigm” at Wine Evolution, January 2007

Paul Mabray Marc Engel

WHAT IS NEW MEDIA?

So what is new media?

WIKIPEDIA DEFINES - New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.

http://en.wikipedia.org/wiki/New_media

http://en.wikipedia.org/wiki/New_media

So what is new media?

New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.

Really?

Old vs New

This…

This… Is new media.

No really

We are witnessing a fundamental shift in communication.

But don’t take our word for it…

If Facebook were a country, it would be the 4th largest country in the world.

Source: TechCrunch 2009 http://www.techcrunch.com/2009/07/15/facebooks-offical-user-count-now-250-million/

Did we say fundamental?

Never in history has humanity been as interconnected as they are today.

Welcome to the Revolution

Source: http://www.flickr.com/photos/mlemos/3522358252/sizes/o/in/set-72157617990467890/

Translation

This ain’t your mamma’s internet.

Evolution

Evolution

Google

Today

66% of Global Internet Population Visit Social Networks. Nielsen

Today


Social networks are the 4th most popular online activity – ahead of personal email and PORN. Nielsen

Today


Social networks are the 4th most popular online activity – ahead of personal email. Nielsen

75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen




71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009

Today

66% of Global Internet Population Visit Social Networks.*

Social networks are the 4th most popular online activity – ahead of personal email.*



75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati

Today






25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman

Today






25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman

Today

Don’t make us estimate

tomorrow.

New media is like the swine flu.

… but why?

Interactive ConnectedFreeFastMeasurable

Because new media is

And it’s not contained

It has jumped out of computers and into our pockets.

People can connect, update, complain or praise – anytime,

anywhere.

Just wait till tomorrow

Just wait till tomorrowTomorrowisTODAY

Sounds scary

“Technology is shifting the power away from the editors, the publishers, the establishment, the media elite. Now it’s people who are in control.”

Rupert Murdoch, Global Media Entrepreneur

We understand.

Most Business People

Your Competition.

Most Business People

76%havenotfoundsocial

networkingsitessuchasFacebook,Twi@erandLinkedIntobehelpfulin

generaDngbusinessleadsorforexpandingtheirbusinessduringthe

lastyear.

86%saytheyhavenotusedsocial

networkingsitestogetbusinessadviceor

informaDon.

61%saytheyusegeneral

searchengineslikeGoogle.

Source: Citibank/GfK Roper survey of 500 small business executives across the U.S., as cited in Research Brief from the Center for New Media Research, 2 Nov. 2009

Imagine

The advantage you could have with yourhead out of the sand.

WHAT DOES NEW MEDIA MEAN FOR WINE?

So what’s in this for wine

Wine & New Media: A Perfect Pair

I’malongtailproduct.

WineNewMedia


I’malongtailproduct.

Ilovelongtails!

WineNewMedia


WordofMouthisthebiggestreasonwhy

peoplebuyme.

WineNewMedia


WordofMouthisthebiggestreasonwhy

peoplebuyme.

OMG!PeopletalkaboutwhattheylikealltheDmeonme.Wine

NewMedia


IconfuseandinDmidate

mostpeople.Wine

NewMedia


I’mnotscared.Peopletrustme.Evenyourmomwilltrust

me.

IconfuseandinDmidate

mostpeople.Wine

NewMedia


I’mquitetheexperience.

WineNewMedia


…andIseekmasteryandcontrol.


WineNewMedia


…!!!

…andIseekmasteryandcontrol.

NewMedia


Wine

Look who’s talking

Source: www.cruvee.com

http://www.cruvee.com


The Dominance of Twitter

Where they’re talking…

OnBlogsOnForumsOnMicroblogs

Source: www.cruvee.com



Wine Blogs

• 250,000 products produced annually

• About 30,000 reviewed by ‘professional’ reviewers

• There are over 1000 dedicated wine blogs

Wine Blogs

Collectively wine bloggers represent an audience much larger than the winespectator.com.

Wine Industry Noise

40+50+200+

Wine Industry Noise

40+ – Wine Social Networks

50+ – Wine iPhone Apps

200+ – Wine Portals

Wine, where should you play?

Wine Social Networks

Fishing where the fish are.

Wine Social Networks

Fishing where the fish are.

86,000+ Users

1,000,000 Tasting Notes

50,000+ Users

32,000+ Tasting Notes

Customers Recommend Brands

Change

“No longer is it enough to make and sell wine and then expect the world to beat a path to your door. (Well, unless you’re Lafite in China, that is.) Today, sellers have to reach out to their customers, and they have to do so in ways that may be unfamiliar and even uncomfortable for them.”

–Steve Heimoff, blogger and writer, Wine Enthusiast

It’s a crazy Wine World


Insane Regulations


Insane Regulations

An incredibly complex product


Insane Regulations

An incredibly complex product

Distribution has all but ended as a viable sales

channel for small wineries.Rob McMillan

IS NEW MEDIA EFFECTIVE?

Is new media effective?

3,279,102 friends 620,359 friends

1,043,850 friends 218,172 friends

1,824 videos uploaded

Channel Views: 20,024,491

330 videos uploaded

Channel Views: 2,221,268

151,206 followers 4, 848 Followers

Is new media effective?

$360 million

$639 million

Why yes, it is.

$360 million

$639 million

Overall funds raised during the 2008 campaign.

Obama’s Online Fundraising

• $150million(sha@eredpreviousrecordof$65m)

• 632,000donors(totalwas3.1million)

• AveragedonaDon<$100(Plouffe)

Hyper Speed

After Palin disparaged Obama’s past work as a community organizer, he raised $10M within 24 hours, most of it online.

The Obama Network

MyBO.comfacebook

twitter

Social networks

Widgets

Barack TV

Outreach

Mobile

Email

MyBO.com

• 2 million profiles created• 35,000 volunteer

groups• 400,000 blog posts• 200,000 offline events

Mobile Obama

New Media is extremely effective for branding, marketing and public relations…

Why?

1) Informative2) Inclusive3) Entertaining4) Engaging5) Democratizing

Hulu

“Consumer behavior is one of the hardest things to change. The gap between the existing and the new has to be so materially better that it shocks you into behavior change.”--Jason Killer, CEO of Hulu

Hulu

• 380MM videos (up 150% in 6 months).

• 2.6% market share of all video.

• Resurrecting old media properties, bring to whole new generation.

It’s powerful, ask Domino’s

Listening - Customer Service

Chris Brogan – President of New Marketing Labs



October,2009…Mywebsitewentdown.ThemomentInoDcedit,ItweetedtoRackspace,myhost.(Yes,IpingedTwi@erbeforelookinganywhereelse).Isaid,“Dear@rackspace–mysiteis

down.Pleasehelp.”



Guesshowlongittookforthemtorespond.



FourMinutes.



I’mfullysoldonwhoI’dchooseifIneeded

mission‐cri5calsupportforaheavytrafficsite.I’duse

Rackspacecloud.

Zappos

Will it Blend?

• A small company, no marketing budget - CEO Tom Dickson blends objects in their blender and video tapes it.

• Marbles, golf balls, hockey pucks

• 3.8 million views

• 5x increase in sales (home and commercial)

#flymeto

• Give away iPhones, flights for tweeting their company’s name

• 90x increase in Twitter followers in one week

• Web traffic up 600%

• 100% increase in signups, still sustaining growth

• Bolstered by coverage in the media (BBC, about.com, Mashable)

Cost: $13,500

IS NEW MEDIA EFFECTIVE IN THE WINE INDUSTRY?

Gary Vay-ner-chuck

• 850,000 followers on Twitter

• Nearly 90,000 viewers per day of his vlog, Wine Library TV

• Million dollar book deal• NYTimes, Amazon.com bestseller

• $80 million retail, half on Internet

Murphy-Goode

Pinotblogger

Josh Hermsmeyer wanted to start a winery.

Participated in online forums, including eRobertParker• But found them

hierarchical

Now, nearly 5,000 Twitter followers• Up 3x since May

Over 1200 mailing list names

New Media to Drive Offline Sales

Free membership in a lower-tier ‘club’No purchase commitmentsExclusive content online• Recipes• Pairing tools• Special e-commerce offers

Purchase offline‘Proven’ by surveys with these ‘club’ members

Marketing is not the same…

It’s about building brand awareness and connection, which should allow for the opportunity for sales.

As sales.

Facebook for personal connections

Fans on FB come to the winery to buy wine

Already have a direct relationship with people at the winery who blog

and are on FB

Facebook for personal connections

Fans on FB come to the winery to buy wine

Already have a direct relationship with people at the winery who blog

and are on FB

Josh & Ryan, pourers in the tasting room

Tony the winemaker

Kent, the chef

Old new media, more effective

Ad on FB offering 10% discount• Nearly 300,000 impressions (times displayed)• 90 clicks to the website

• 0 sales

• Targeted email more effective• FB-only 25% off promotion in honor of the winemaker and

her husband’s 25th anniversary

• 0 sales• Then emailed to mailing list…nearly $15,000 in sales

than new new media.

Old new media, more effective

Ad on FB offering 10% discount• Nearly 300,000 impressions (times displayed)• 90 clicks to the website

• 0 sales

Targeted email more effective• FB-only 25% off promotion in honor of the winemaker and

her husband’s 25th anniversary

• 0 sales• Then emailed to mailing list…nearly $15,000 in sales

than new new media.

Uncertainty about Facebook

• “But I don’t think it affects the bottom line”• “Not the driving force behind sales, but a great

information tool”• “Still trying to figure out how to measure its

impact”

Uncertainty About Twitter

• “Hard to track and measure”• “Not sure what to make of it yet. Is it a fad or is it

a useful tool?”• “Losing its edge”

LESSONS

New Media is NOT a silver bullet

“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”



“YOU NEED TO HAVE YOUR WINES RATED

BY WINE BLOGGERS.”



“YOU NEED to

BLOG.”“YOU NEED TO HAVE YOUR WINES RATED




“YOU NEED to

BLOG.”“YOU NEED TO HAVE YOUR WINES RATED


WHAT IS THE TRUTH?

Your brand will benefit from a good social media strategy that is PART of your overall digital strategy.

PICK the social network where YOUR type of customers are engaging. Do activities that yield the HIGHEST ROI for your efforts.

What new media will give to you

• Exposure

• Likelihood to be recommended

• Customer acquisition

• Extended customer life time value (LTV)

• Measurement

• Unparalleled access

Content is King

From customer relationship management to customer-managed relationships

MESSAGE MUST BE RELEVANT

Business is Personal

The Godfather was wrong

Integrate the Old & New

New media is just 1 (one, uno, eins, un, ichi, 일) communication channel.

Integrate the Old & New

New media is just 1 (one, uno, eins, un, ichi, 일) communication channel.

Publicity initially gained online may eventually get reinforced by traditional media.

E-marketing, website, employee relations, community release, PR.

Be Patient

Don’t expect immediate sales payoff, but you can expect uptake in discussions.

Again, brand building is not the same as sales.

Set clear goals

Finding trends and tracking them back to their point of origin is the key to measuring ROI.

• Number of referrers on your e-commerce site (assuming you can track this data) from your website or Twitter

• Number of coupons used that were given away in a Facebook campaign to start calculating which sales stemmed from your social media campaigns

• Hash tags on Twitter, redirects in links• Use bit.ly

Take aways

1) Listen2) Be Authentic3) Be Transparent4) Engage5) Care

New Media and Wine

Business

Transcript of New Media and Wine