Social Advertising: what is it, who is doing it and why does it work? - Microsoft Ciao's Alexander...
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Social Advertising:What is it,
Who is doing itAnd why does it work?
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"History has shown that whenever companies, no matter how great, get priced above 50 to 60 times earnings, buyer beware.”
Wall Street Journal, October 2007
Partying Like It’s 1999
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“The original thing I wanted to do was make [the world wide web] a collaborative medium, a place where we [could] all meet and read and write”
Tim Berners-Lee
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The New Internet
ECONOMYOwnershipPossessionPropertyShopping
SOCIETYFriendsRelationshipsCommunityEconomy
The internet has changed from an ECONOMY into a whole SOCIETY.
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Internet = Economy: 1994 - 2005
• Brands are unapproachable, unknowable machines that provide goods and services
• Consumers are faceless nobodies that provide brands with money
• Advertising is a NOVELTY that produces a high CTR and is perceived as EFFECTIVE
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Internet = Society: 2005 - tbc
• Brands need to be like people – they have to provide a social experience
• Consumers have the power to strengthen or weaken a brand
• Standard advertising is a NUISANCE that produces minimal interaction and is perceived as USELESS
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The Decline Of Standard Display
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How to Solve The Problem
Display Advertising?Create a facebook page?
The Social Break-Up81% of US users have either “unliked” a company or removed a their posts from their News Feed.
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Advertising in the Social Era
• Don’t intrude on people’s social time• Earn people’s attention• Handle people with respect and give them
something fun to do.• Engage people
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NMA, April 2011
“… real social commerce … is about ratings and reviews, recommendations and referrals” Ilana Fox
Social media campaigns can be fun, but are they worth anything?Paul Kitcatt
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HP Case Study, Ciao UK
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mattygrovesUser Name: mattygrovesReviews: 156Circles of Trust: 204Pro’s•Excellent history of detailedreviews.•Confident about setting up•Very articulate manner on the phone.•Enthused at the idea of being HP reviewer•Happy to be filmed at home
HP Case Study, Ciao UK hishyenessUser Name: Hishyeness Reviews: 202Circles of Trust: 229Pro’s•Excellent history of detailed, positive reviews.•History of tech reviews.•Extremely articulate manner on the phone•Confirmed confidence of setting printer up.•Happy to be filmed at home
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“68% of respondents believe it’s important that a product has good reviews from other consumers” newmediaage
March 2011
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BEFORE• Big companies, big broadcasters, big banks• High open rates on email marketing• High CPMs on all media
NOW
• Consumer empowerment• Shift control to users in exchange for reach
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“…in the past, brands were always this untouched entity that provided you a service, brands are now people that have feelings, and care about your feelings and you can either be their friend or not be their friend.” Mike Germano, Founder of Carrot Creative
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Alexander MillerHead of Advertising Ciao UK
Ciao Commerce DivisionMicrosoft Deutschland GmbH
16 Dufours Place London
Ciao on the Internet:http://ciao.co.uk
http://www.ciao-group.comhttp://twitter.com/ciao_uk
http://www.facebook.com/ciaouk
Thank you!