Why Blogs and Social Media are Effective Marketing Tools
Transcript of Why Blogs and Social Media are Effective Marketing Tools
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presents
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Blogs and social media
Marketing for the 21st century
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Case Studies
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Who shouldve had a blog:
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Dell
In 2005, Dell didnt have a blog.But one of their customers did
http://jeremy.zawodny.com/blog/archives/006009.htmlhttp://jeremy.zawodny.com/blog/archives/006009.html -
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Dells customer strikes back
This customer was very upset with Dellscustomer service.
He wrote about his experience on his blog.
So did another blogger, whose post wasso popular, it led to the creation of a newterm for Dell
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Dell Hell in Google
If you search for Dell Hell in Google, thatguys post is the first result.
As a result, Dell got negative presscoverage in the New York Times and WallStreet Journal.
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Dell couldnt fight back
Dell didnt have a blog, so they wereunable to communicate with the angryblogosphere.
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But there was a happy ending. Dell set uptheir own blog.
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Happy ending
In the age of customers empowered byblogs and social media, Dell has leaptfrom worst to first."
Jeff Jarvis, Business Week
First step: Dell dispatched technicians toreach out to complaining bloggers and
solve their problems, earning pleasantlysurprised buzz in return.
http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_277576.htm?chan=top+news_top+news+index_top+storyhttp://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_277576.htm?chan=top+news_top+news+index_top+story -
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Dells new blog
http://direct2dell.com/one2one/default.aspxhttp://direct2dell.com/one2one/default.aspxhttp://direct2dell.com/one2one/default.aspx -
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Measurable results
Dell saw a 27 point decrease in negativeblog posts, from 49 percent at the peakof Dell Hell to the current 22 percent.
Cost would have been hundreds ofmillions for similar ad campaign.
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Michael Dell: "A company this size is notgoing to be about a couple of peoplecoming up with ideas. It's going to be
about millions of people and harnessingthe power of those ideas."
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Apple lost billions
At the hands of bloggers
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May 2007: earlier yesterday technology blogEngadget published what it claimed was aninternal email from Apple that stated the iPhone
launch would be delayed until October and thatthe Leopard operating system would be delayeduntil January 2008.Six minutes after the post, Apple's share valuehad sunk to $103.42, cutting Apple'scompany value by $4bn. - TechCrunch
Applegate
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Applegate
Apple has received formal governmentapproval to sell its much-anticipated
iPhone in the US, just a day after a bogusemail, dubbed "Applegate", wiped $4bnfrom the company's stock market value. -Guardian
http://www.guardian.co.uk/media/2007/may/18/digitalmedia.applehttp://www.guardian.co.uk/media/2007/may/18/digitalmedia.apple -
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Targets not on target
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Target PR Nightmare
A rep from a non-profit concerned withmedia and marketings impact on kidswrites to Target objecting to the ad on the
previous slide.
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Targets unfortunate response
Target: unfortunately we are unable torespond to your inquiry because Target
does not participate with non-traditional
media outlets. This practice is in place toallow us to focus on publications that
reach our core guest.
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uh oh
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= PR nightmare
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Target was publicly slammed for havingquestionable advertising practices andelitist public relations policies.
Story was picked upand repeatedthoughout the blogosphere
Target PR Nightmare
http://www.shapingyouth.org/blog/?p=969http://www.mediabistro.com/unbeige/adsmktg/target_gets_kicked_in_the_crotch_by_nontraditional_media_outlets_75966.asphttp://virtualeconomics.typepad.com/virtualeconomics/2008/01/non-traditional.htmlhttp://gawker.com/5002336/target-to-bloggers-you-dont-matter-in-lifehttp://gawker.com/5002336/target-to-bloggers-you-dont-matter-in-lifehttp://virtualeconomics.typepad.com/virtualeconomics/2008/01/non-traditional.htmlhttp://www.mediabistro.com/unbeige/adsmktg/target_gets_kicked_in_the_crotch_by_nontraditional_media_outlets_75966.asphttp://www.shapingyouth.org/blog/?p=969 -
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Target PR Nightmare
Shaping Youth is a small, grass-rootsorganization - that has a blog.
Target is #33 in the Fortune 50 - with$59 Billion in revenue - but no blog.
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Video takes down the big guys
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Comcast couch guy
From the blog: A Comcast techniciancame to replace a faulty modem. Afterspending an hour on hold with Comcast's
central office, he fell asleep on my couch.I've been in my apartment for three weeksand my internet connection is still non-
functional. This is my tribute to Comcast,their low quality technology and their poorcustomer service.
http://www.snakesonablog.com/2006/06/20/snakes-on-comcast-internet-connection/http://www.snakesonablog.com/2006/06/20/snakes-on-comcast-internet-connection/ -
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Comcast couch guy
Number of views on YouTube: 1,181,809
See the movie
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AOL cancel my account!
Vincent Ferrari wanted to cancel his AOLaccount. It took him 21 minutes offrustration to succeed. At one point the
AOL rep asked 30 year old Ferrari tospeak to his dad.
Unfortunately for AOL, Ferrari recorded
the conversation and published it onYouTube.
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AOL cancel my account!
Video covered on MSNBC and elsewhere
Number of views on YouTube: 218,391
See the movie
http://www.msnbc.msn.com/id/13447232/http://www.youtube.com/watch?v=xmpDSBAh6RYhttp://www.youtube.com/watch?v=xmpDSBAh6RYhttp://www.msnbc.msn.com/id/13447232/ -
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Blogs and social media have a
serious impact
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Why blog?Visualization of the blogosphere
Because youare already
there.
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And you have no control
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Todays leading brand
Source: Millward Browns Brandz
http://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdfhttp://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2007-RankingReport.pdf -
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Nature of advantage is shifting
Decades and billions on
marketing, branding andadvertising
$0 on ads
The big boys: Coke,P&G
Google
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The corporate website is becomi
http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/ -
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Irrelevant Corporate Website
But were tired of the corporate website and allits happy marketing speak, stock photos ofsmart looking dudes or minority women crowded
around the computer raving about your product,the positive press release, the happy customertestimonials, the row of executive portraits, thedonations your corporate made to disaster relief,
the one-sided view never ends. JeremiahOwyang, Sr. Analyst at Forrester Research:
Social Computing
http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/http://www.web-strategist.com/blog/2007/08/27/pursuing-the-web-strategy-mission-as-a-forrester-analyst/ -
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The new corporate website
Websites are created with customers
Unfiltered customer testimonials willappear
Content will have both negative andpositive views about your products
Your website will be a CommunityResource
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Outcome
Customers will make your site the firstplace to go for information, trust willincrease, you may be able to build better
products and services with real-timecustomer feedback, and most importantly,youll be a community resource that will
help you meet your customer needsfaster.
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Web Strategy: How to evolve your irrele
http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/http://www.web-strategist.com/blog/2007/05/29/web-strategy-how-to-evolve-your-irrelevant-corporate-website/ -
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What is social media?
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Sites considered social media:
Blogs
Message boards
Forums
Social networks(MySpace orFacebook)
Video sharing (YouTube)
Picture sharing(Photobucket)
Podcasts
Vidcasts Wikis
Groups
Virtual words orcommunities (Secondlife)
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Examples
http://friendfeed.com/http://twitter.com/http://facebook.com/http://stumbleupon.com/http://digg.com/http://del.icio.us/ -
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Common traits:
Editable
Participative
Connect people
Th bl h i d bli i i
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The blogosphere is doubling in sizeevery 6 months
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Growth of the blogosphere
It is now over 60 times bigger than it was 3 yearsago
On average, a new weblog is created everysecond of every day
19.4 million bloggers (55%) are still posting 3months after their blogs are created
Technorati tracks about 1.2 Million new blog
posts each day, about 50,000 per hour 34% of large corporations currently have a blogsolution, 70% plan one by the end of the year
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To blog or not to blog?The answer, simply
enough, is to blog. Nobetter opportunity exists
to engage in an opendialog and exchange ofideas with customers and
potential customers.Bob Lutz, Vice Chairman, General
Motors
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"If you blog, you exist."
- Shai Agassi, former
Board Member, SAP
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What is a blog?
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Portmanteau of
weblog
Written in
chronological order
Displayed in
reversechronologicalorder
A verb
From Wikipedia entry for Bloghttp://en.wikipedia.org/wiki/Blog
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Blog Characteristics
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RSS Feeds
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Trackbacks
Tells other blogsyou linked tothem, and thenan excerpt of yourpost appears with
a link back toyour blog in thecommentssection of theirpost that youlinked to
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Pingbacks
You get anotification thatother bloggerslinked to yourblog, and an
excerpt of theirpost appears onyour blog with alink to their blog(opposite oftrackbacks)
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Example of pingback
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Comments
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Pings
Blogs set up to ping send an automaticmessage to tens or hundreds of blogdirectories, telling them you just publishedsomething new.
This not only spreads your blog further,but Google is known to follow these blogdirectories, and it helps Google pick up onnew blogs quickly.
Pingomatic.com is an example of apinging service.
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Tags
Good for searchengines; gives themmore info on what the
post is about Good forTechnoratiblog directory
Good for finer
categorization ofposts
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Social Bookmarks
Make it easy forpeople to submitposts to bookmark
directories This helps spread theword, and if enoughpeople vote for your
blog, you can get tonsof traffic
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Its a new media world that really returns
us to old Main Street ethics. A shopkeeperwithin the town builds great relationshipswith his/her community members. Theresan intrinsic understanding that they needthe community as much if not more so thanthe community needs the shop. And so theshopkeeper works hard for the community,
and treats it well.- The Participation Ethos
http://www.livingstonbuzz.com/blog/2007/09/16/the-participation-ethos/http://www.livingstonbuzz.com/blog/2007/09/16/the-participation-ethos/ -
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Isnt it a waste of time?
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Other wastes of time:
Airplanes are interesting toys but of no militaryvalue. Marechal Ferdinand Foch
The wireless music box has no imaginable
commercial value. Who would pay for amessage sent to nobody in particular? DavidSarnoffs associates in response to his urgingsfor investment in the radio in the 1920s.
Who the hell wants to hear actors talk? --H.M. Harry Warner,Warner Brothers, 1927.
http://en.wikipedia.org/wiki/Ferdinand_Fochhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/Harry_Warnerhttp://en.wikipedia.org/wiki/Warner_Bros.http://en.wikipedia.org/wiki/Warner_Bros.http://en.wikipedia.org/wiki/Harry_Warnerhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/David_Sarnoffhttp://en.wikipedia.org/wiki/Ferdinand_Fochhttp://en.wikipedia.org/wiki/Ferdinand_Fochhttp://en.wikipedia.org/wiki/Ferdinand_Foch -
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Benefits: General
Low cost and fast to set up
Transparent and authentic
Information is always up-to-date
Blogging is innovative = you areinnovative
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Benefits: Reach
Get the right information to the rightpeople at the right time.
Broad reach via RSS and email
subscriptions
Opening a new marketing channel forproducts and services
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Benefits: Financial
Test out ideas on the blog beforedevelopment
Forrester research: savings from customer
insights
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Benefits: Search Engines
Search engines like: Sites that publish fresh content
Sites with inbound links
Keywords
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Benefits: Thought Leadership
Position you and your company as thoughtleaders in competitive markets
Establish a true, credible voice in the
marketplace
Tim Ferris launchedThe 4 Hour Workweek to New York Times
bestseller list through blogging
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Benefits: Branding
Strengthen and promote your brand
Give your company a human face
Forrester research: increased brandvisibility
Forrester research: reduced impact fromnegative user-generated content, andincreased sales efficiency
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Benefits: PR
Free and controlled news desk
Damage control!
Rapid response tool
Create buzz - give small hints abt. newproducts, generate press interest
Announce conferences/events
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Benefits: Customer Relations
Customer queries answered leading toreduced customer service or technicalsupport calls
Enhance customer loyalty
Build sense of community
Turn customers into your sales force
Reach an active, passionate consumerbase
Reach people on their own terms
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Benefits: Lead Generation
Better communication with prospects
Leverage existing customer base tospread your message
Increased enquiries generated
A living white paper
Word of Mouth - 80% of online userstrust the opinion of a friend oracquaintance more than any otherpossible web source
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Benefits: Intelligence
GM's Fastlane Blogs Bob Lutz, says hereceives better consumer intelligence fromreading the comments on his blog than
those from traditional market researchchannels, like surveys and focus groups.
Quickly and easily poll your customers
Get feedback Build better products from 2-way
conversation
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When blogs came to the
rescue
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Johnson&Johnson sues Red Cross overuse of Red Cross!
J&J uses their blog to take the dialogue
beyond the standard corporate PR, andcommunicates on their blog.
vs.
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The result? A large number of commentsand stories generally providing broadsupport for J&J's point of view. While there
are negative comments, the blog achievedwhat no other crisis communication'svehicle would have delivered.
vs.
GM l d i i l di
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GM leader in social media
GM launched blog in 2005 Fastlane
Written by Vice Chairman
200 years: GM expanding social mediastrategy to include GMNext
Isnt that a waste of time?
GM t SM
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GM says yes to SM
Forrester compared the results of GMsFastlane blog to those of a focus group,and since a focus group costs about
$15,000 a month, which works out to$180,000 each year, GM has achievedsimilar results via their blog, and saved
itself $180,000 in cash per year.
GM t SM
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GM is trying to engage their customers on .
Transparency
Increases chances of reaching youngerbuyers
Profit? Increase of 2.6% in salescompared with January last year.
GM says yes to SM
http://www.socialmediaexplorer.com/2008/02/04/word-of-mouth-driven-by-others/http://www.socialmediaexplorer.com/2008/02/04/word-of-mouth-driven-by-others/ -
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It aint all rosy
P bl ith i l di
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Problems with social media
Time
Compliance issues
Untrustworthy member data
50% of blogs abandoned within 90 days
Loss in workplace productivity
Hard to measure success Need for openness
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G i i F d
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Growing pains: Ford
Ford recently releasedtheir first social media release.
Fords lawyers did a very unsocial thing
and stopped some of their most exuberantfans from printing up a fan calendar withphotos of their own Ford cars in it.
G i i F d
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The folks at BMC (Black Mustang Club) automotive forum wantedto put together a calendar featuring members cars, and print itthrough CafePress. Photos were submitted, the layout was set,and CafePress notifies the site admin that pictures of Ford carscannot be printed. Not just Ford logos, not just Mustang logos, the
car -as a whole- is a Ford trademark and its image cant bereproduced without permission. So even though Ford has a lineupof enthusiasts who want to show off their Ford cars, the company isbent on alienating them. Them being some of the most loyalowners and future buyers that they have. Or rather, that they had,
because many have decided that they will not be doing businesswith Ford again if this matter isnt resolved. (From BoingBoing -read more there)
Growing pains: Ford
http://www.boingboing.net/2008/01/13/ford-car-owners-are.htmlhttp://www.boingboing.net/2008/01/13/ford-car-owners-are.htmlhttp://www.boingboing.net/2008/01/13/ford-car-owners-are.html -
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Ford pulled the spark-plug right outtatheir hearts. Todd Defren
http://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.htmlhttp://www.pr-squared.com/2008/01/the_unbearable_idiocy_of_brand.html -
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How do I social?
Ho to social
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How to social
Have a personality
Dont be afraid of failure
Pick the right social media for youraudience
Make friends
Add value to the community
Dont self-promote
How to social (cont)
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How to social (cont)
Be accurate
Be transparent
Be patient
Increase your linkability
Make tagging and bookmarking easy
Help your content travel
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Social Media Trends
Fatigue
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Fatigue
The average amount of time each userspends on social networking sites hasfallen by 14% over the last four months
(ComScore)
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Fads
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Fads
MySpace > Facebook > Twitter >Friendfeed > ?
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Microblogging/Lifestreams
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Whos on twitter
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Who s on twitter
Carnival Cruise lines Intel Software
Adaptive Path
PodTech Network
Hillary Clinton
Barack Obama
Ways to use twitter
http://twitter.com/CarnivalCruisehttp://twitter.com/IntelSoftwarehttp://twitter.com/AdaptivePathhttp://twitter.com/podtechhttp://twitter.com/hillaryclintonhttp://twitter.com/BarackObamahttp://twitter.com/BarackObamahttp://twitter.com/BarackObamahttp://twitter.com/BarackObamahttp://twitter.com/hillaryclintonhttp://twitter.com/podtechhttp://twitter.com/podtechhttp://twitter.com/AdaptivePathhttp://twitter.com/IntelSoftwarehttp://twitter.com/CarnivalCruise -
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Ways to use twitter
Personal Branding Get feedback
Hire people
Direct traffic Read news
Network
Company intranet
Notify your customers Event updates
Find prospects
Provide live coverage Set up meetings
Support your social
media strategy getvotes for articles, etc.
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Reputation Management
What happens when you googleyour name?
The web is the network
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The web is the network
To end off, I suggest you watch this videoon what the new web is all about it isabout us, and we are creating it.
The Machine is Us/ing Us
http://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_ghttp://youtube.com/watch?v=NLlGopyXT_g -
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"To find something comparable, you
have to go back 500 years to theprinting press, the birth of massmedia...Technology is shifting power
away from the editors, the publishers,the establishment, the media elite.Now it's the people who are taking
control." Rupert Murdoch, quoted inWired, July 2006.
About illuminea
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About illuminea
illuminea provides online marketing services,including website and blog design, developmentand strategy; and social media strategydevelopment and consulting services.
illuminea also gives courses on the subject ofblogging and social media, and other marketingtopics.
Learn more on illuminea.com and read ourblog at illuminea.com/blog.
Th k !
http://illuminea.com/http://illuminea.com/bloghttp://illuminea.com/bloghttp://illuminea.com/bloghttp://illuminea.com/ -
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Thank you!
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