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Marketing in the Age of
    Social Media



                   By: Ariel Vinizki
Last year,    spent just 33% of
  their $678M U.S. advertising
budget on ads with TV networks
  and other traditional media.
#1 Advertiser in Advertising Age‟s
2009 The Creativity Awards Report
''We're not in the business of keeping the media companies alive. We're
  in the business of connecting with consumers.''
                  - Trevor Edwards, V.P. Global Brand & Category Management, Nike
Marketing is getting increasingly complex.
Traditional media‟s share of the pie is decreasing.
“Advertising simply doesn't work as
well as it used to ... the old tools are
becoming more expensive and less
effective.” – Seth Godin
CLUTTER
SELECTION
FRAGMENTATION
“In 1965, 80% of 18-49 year olds in the US could
be reached by three 60 second spots. In 2002,
it required 117 prime-time commercials to do
the same.”
    - Jim Stengel, Global Marketing Officer, P&G
TUNING OUT
TUNING OUT
• 60% of consumers describe themselves
               as “a person who tries to resist or avoid
               being exposed to marketing and ads."
             • >2/3 of consumers said they would be
               interested in products that let them
               “block, skip, or opt out of being exposed to
               ads."
             • 54% say they "avoid buying products that
               overwhelm me with marketing and
               advertising."




Source: Yankelovich
“I don't watch TV live period anymore. It's all recorded
and watched whenever I get around to it lol I don't have
the time to watch shows when they are on. And if for
some crazy reason my DVR decides not to record
something it was supposed to(it has happened before)
I'll just go to the network website and watch it. Or I'll find
a bit torrent. I think it's pretty cool I can download
movies to my Xbox and the such... but I haven't actually
done it yet. I still like to go to block buster and check out
their selection. It gives me a chance to get out of the
house :-P”
      - By acarzt on Apr 8, 2009, hothardware.com
Internet usage is growing at a torrid pace.
• 75% of North Americans use the internet.
• Almost 2 billion users worldwide.
“Gaming, once the domain of
kids and a small group of core
fans, is now more mainstream
than ever … the evolution of
gaming consoles into
multimedia devices has
changed consumption habits of
traditional media such as TV,
movie and Internet content,”
- Bradley Raczka, Marketing Manager,
                      Nielsen Games
Gaming is mainstream!
Online poker is multi-billion dollars
AIDA Advertising Model



Attention   Interest   Desire   Action
Attention




More ads +
More brands +
Less receptiveness +
More non-commercial options +
Tools to avoid =
Attention being the scarce resource
And even if your ad does break
   through and get seen…
Despite an ever-expanding array of
advertising platforms and
sources, consumers around the
world still place their highest
levels of trust in other consumers,
according to a recent
global Nielsen Internet survey.
So people hate brands?
… Not Exactly:
             • an overwhelming majority of consumers
               (76%) welcomed brand advertising on
               social networks
Razorfish    • nearly 40% of reported having “friended”
Digital        a brand on Facebook and/or MySpace
             • 26% have followed a brand on Twitter
Brand
             • The myth of marketing-free social
Experience     spaces is … a myth
Studies      • The “dialogue” between brands and
               consumers is not only frequent, but also
               welcome
• Explosion in information is resulting
  in an information overload.
• Abundant supply is driving the value
  of most information to zero.
• Captive audience gone
   – once waited for weather or sports
     scores … now have it in real time.
• The only scarce resource is attention.
• We listen to „friends‟ as to what to pay
  attention to.
• Friends know us better than any
  algorithm.
• Crowd-sourcing your message?
• Now 3rd largest video viewing
  site on the web (behind
  YouTube and Hulu)
• 217 million streams in Oct/09
• Amount of time web users
  spend viewing videos on social
  networking sites went up 98%
  this year (source: Nielsen)
Social media are online
           applications, platforms
           and media which aim to
           facilitate interaction,
           collaboration and the
           sharing of content.
Source: Universal McCann, Social Media Tracker
What is Social Media Marketing?

Leveraging the internet as a
platform to drive engagement in
order to achieve branding and
marketing communication goals.
“It's impossible to draw a line
  between social media and
  traditional media - it's all
  one.”

 “Whether content is created
 by the Pros or the Joes it all
 has influence, even if it's
 small.” – Steve Rubel
"I just watched a plane crash into the hudson riv [sic]
   in manhattan.” - Jim Hanrahan, aka Manolantern
“To find something comparable, you have to go
back 500 years to the printing press, the birth of
mass media … 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, in Wired, July 2006
4 Media Revolutions Prior to the Internet:




       Printing Press                         Telegraph/Telephone




Recorded Media – Photos, Sound, Video   Broadcast Media – Radio, Television
“The moment our generation is living through is the
   largest increase in expressive capability in
   human history.” – Clay Shirky
Your brand story is no longer linear.




Source: Advertising Age November 9, 2009
Socialism Redefined -
Wikipedia, Flickr, and Twitter
aren't just revolutions in
online social media. They're
the vanguard of a cultural
movement.
Stop Interrupting!
Start Igniting!
In a million channel world,
 brands whose consumers tell
 the best stories, win.
Give People A Reason To Click
So how do all these changes in the
 landscape impact advertising?
Time Out! Before we talk advertising...
   Start by making a great product.
A great product is the best advertising.
         Make better products.
It‟s Not (So Much) What You Say.
   It‟s What You Do (and Other
    People Then Say About It).
The Volume and Quality of Your
  Earned Media Will Be Directly
 Proportional to the Impact and
Quality of Your Product and Ideas.
Entertain Me
Give Me A Unique Experience
Give Me Utility
Meaning Beyond Money
Meaning Beyond Money
Connect Me With Others
“Your brand is no stronger than your
reputation – and will increasingly
depend on what comes up when you
are Googled.” - Allan Jenkins, Global
Communications Consultant
“The skillful use of Twitter, Google, the
         internet and Facebook won‟t make a
         weak brand strong.” – Al Ries


Source: Advertising Age November 9, 2009
Transparency and Truth
Crawl, Walk, Run
Lessons For Marketers
“The campaign was not successful
simply because it got a lot of
people out to vote. It was
successful because it got a lot of
people getting others to vote.”
    - Jalali Hartman, Yovia.com CEO
It Starts With the Product

• Barak Obama does
  represent Change
  – Race
  – Age
  – Experience
  – Biography
  – Regional
Clarity of Purpose
• Determined their positioning and defined the
  brand clearly and consistently.
Identify Neglected Customers

            • Expanded the electorate.
            • Who is the competition
              forgetting to speak to?
            • How does your offer
              speak to them?
Build Communities
Help Others Evangelize For You
• Build communities.
• Give people a sense of ownership in the brand.
• Provide the raw materials that people can
  then use to create their own content to share.
Give Up A Little Control
• Have a policy and some control over offensive
  and illegal material … BUT …
• Don‟t worry so much about unauthorized use …
  allow mash-ups and audience participation.
• Don‟t censor „negative‟ comments.
Reward Me. Entertain Me.
• What do I get out of being
  a fan on Facebook , for
  following your Tweets, or
  giving you my email/
  mobile?
Put On A Spectacle
    • Attract interest by creating
      an experience worth paying
      attention to.
Get Key Influencers Endorsing You
          • Not necessarily a celebrity –
            it could be an influential blog.
          • Don‟t pay for it.
Get Media On Your Side
        … But Don‟t Rely On Them
• Give them access and align your needs.
  – Including your critics.
• Build a direct relationship with your audience.
Mass Media Still Matters

        • Despite brilliant use of
          web/mobile, Obama still
          spent the most on paid
          media … by far.
        • Mass media pushed
          people to the hub
          (www.barackobama.com).
Be Transparent
• Address criticism head-on.
• Don‟t censor critics – empower supporters.
It‟s A Permanent Campaign

        • It‟s not a sprint.
          It‟s a marathon.
        • Don‟t launch and move on.
        • Campaigns are on-going
          dialogues.
        • „Kaizen‟
        • Build a community, keep
          fostering it and leverage it.
Measure The Right Things
• What is the real objective?
• How will you determine success or failure?
Obama = Community Organizer.
Marketing In The Age Of Social Media

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Marketing In The Age Of Social Media

  • 1. Marketing in the Age of Social Media By: Ariel Vinizki
  • 2. Last year, spent just 33% of their $678M U.S. advertising budget on ads with TV networks and other traditional media.
  • 3. #1 Advertiser in Advertising Age‟s 2009 The Creativity Awards Report
  • 4. ''We're not in the business of keeping the media companies alive. We're in the business of connecting with consumers.'' - Trevor Edwards, V.P. Global Brand & Category Management, Nike
  • 5. Marketing is getting increasingly complex.
  • 6. Traditional media‟s share of the pie is decreasing.
  • 7. “Advertising simply doesn't work as well as it used to ... the old tools are becoming more expensive and less effective.” – Seth Godin
  • 11. “In 1965, 80% of 18-49 year olds in the US could be reached by three 60 second spots. In 2002, it required 117 prime-time commercials to do the same.” - Jim Stengel, Global Marketing Officer, P&G
  • 14. • 60% of consumers describe themselves as “a person who tries to resist or avoid being exposed to marketing and ads." • >2/3 of consumers said they would be interested in products that let them “block, skip, or opt out of being exposed to ads." • 54% say they "avoid buying products that overwhelm me with marketing and advertising." Source: Yankelovich
  • 15. “I don't watch TV live period anymore. It's all recorded and watched whenever I get around to it lol I don't have the time to watch shows when they are on. And if for some crazy reason my DVR decides not to record something it was supposed to(it has happened before) I'll just go to the network website and watch it. Or I'll find a bit torrent. I think it's pretty cool I can download movies to my Xbox and the such... but I haven't actually done it yet. I still like to go to block buster and check out their selection. It gives me a chance to get out of the house :-P” - By acarzt on Apr 8, 2009, hothardware.com
  • 16. Internet usage is growing at a torrid pace. • 75% of North Americans use the internet. • Almost 2 billion users worldwide.
  • 17.
  • 18. “Gaming, once the domain of kids and a small group of core fans, is now more mainstream than ever … the evolution of gaming consoles into multimedia devices has changed consumption habits of traditional media such as TV, movie and Internet content,” - Bradley Raczka, Marketing Manager, Nielsen Games
  • 20. Online poker is multi-billion dollars
  • 21. AIDA Advertising Model Attention Interest Desire Action
  • 22. Attention More ads + More brands + Less receptiveness + More non-commercial options + Tools to avoid = Attention being the scarce resource
  • 23. And even if your ad does break through and get seen…
  • 24. Despite an ever-expanding array of advertising platforms and sources, consumers around the world still place their highest levels of trust in other consumers, according to a recent global Nielsen Internet survey.
  • 25.
  • 26. So people hate brands?
  • 27. … Not Exactly: • an overwhelming majority of consumers (76%) welcomed brand advertising on social networks Razorfish • nearly 40% of reported having “friended” Digital a brand on Facebook and/or MySpace • 26% have followed a brand on Twitter Brand • The myth of marketing-free social Experience spaces is … a myth Studies • The “dialogue” between brands and consumers is not only frequent, but also welcome
  • 28. • Explosion in information is resulting in an information overload. • Abundant supply is driving the value of most information to zero. • Captive audience gone – once waited for weather or sports scores … now have it in real time. • The only scarce resource is attention. • We listen to „friends‟ as to what to pay attention to. • Friends know us better than any algorithm. • Crowd-sourcing your message?
  • 29. • Now 3rd largest video viewing site on the web (behind YouTube and Hulu) • 217 million streams in Oct/09 • Amount of time web users spend viewing videos on social networking sites went up 98% this year (source: Nielsen)
  • 30.
  • 31. Social media are online applications, platforms and media which aim to facilitate interaction, collaboration and the sharing of content. Source: Universal McCann, Social Media Tracker
  • 32.
  • 33.
  • 34.
  • 35. What is Social Media Marketing? Leveraging the internet as a platform to drive engagement in order to achieve branding and marketing communication goals.
  • 36. “It's impossible to draw a line between social media and traditional media - it's all one.” “Whether content is created by the Pros or the Joes it all has influence, even if it's small.” – Steve Rubel
  • 37. "I just watched a plane crash into the hudson riv [sic] in manhattan.” - Jim Hanrahan, aka Manolantern
  • 38. “To find something comparable, you have to go back 500 years to the printing press, the birth of mass media … 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, in Wired, July 2006
  • 39. 4 Media Revolutions Prior to the Internet: Printing Press Telegraph/Telephone Recorded Media – Photos, Sound, Video Broadcast Media – Radio, Television
  • 40.
  • 41. “The moment our generation is living through is the largest increase in expressive capability in human history.” – Clay Shirky
  • 42. Your brand story is no longer linear. Source: Advertising Age November 9, 2009
  • 43. Socialism Redefined - Wikipedia, Flickr, and Twitter aren't just revolutions in online social media. They're the vanguard of a cultural movement.
  • 44.
  • 47. In a million channel world, brands whose consumers tell the best stories, win.
  • 48. Give People A Reason To Click
  • 49. So how do all these changes in the landscape impact advertising?
  • 50. Time Out! Before we talk advertising... Start by making a great product. A great product is the best advertising. Make better products.
  • 51.
  • 52.
  • 53. It‟s Not (So Much) What You Say. It‟s What You Do (and Other People Then Say About It).
  • 54. The Volume and Quality of Your Earned Media Will Be Directly Proportional to the Impact and Quality of Your Product and Ideas.
  • 56. Give Me A Unique Experience
  • 60. Connect Me With Others
  • 61. “Your brand is no stronger than your reputation – and will increasingly depend on what comes up when you are Googled.” - Allan Jenkins, Global Communications Consultant
  • 62. “The skillful use of Twitter, Google, the internet and Facebook won‟t make a weak brand strong.” – Al Ries Source: Advertising Age November 9, 2009
  • 66. “The campaign was not successful simply because it got a lot of people out to vote. It was successful because it got a lot of people getting others to vote.” - Jalali Hartman, Yovia.com CEO
  • 67. It Starts With the Product • Barak Obama does represent Change – Race – Age – Experience – Biography – Regional
  • 68. Clarity of Purpose • Determined their positioning and defined the brand clearly and consistently.
  • 69. Identify Neglected Customers • Expanded the electorate. • Who is the competition forgetting to speak to? • How does your offer speak to them?
  • 71. Help Others Evangelize For You • Build communities. • Give people a sense of ownership in the brand. • Provide the raw materials that people can then use to create their own content to share.
  • 72. Give Up A Little Control • Have a policy and some control over offensive and illegal material … BUT … • Don‟t worry so much about unauthorized use … allow mash-ups and audience participation. • Don‟t censor „negative‟ comments.
  • 73. Reward Me. Entertain Me. • What do I get out of being a fan on Facebook , for following your Tweets, or giving you my email/ mobile?
  • 74. Put On A Spectacle • Attract interest by creating an experience worth paying attention to.
  • 75. Get Key Influencers Endorsing You • Not necessarily a celebrity – it could be an influential blog. • Don‟t pay for it.
  • 76. Get Media On Your Side … But Don‟t Rely On Them • Give them access and align your needs. – Including your critics. • Build a direct relationship with your audience.
  • 77. Mass Media Still Matters • Despite brilliant use of web/mobile, Obama still spent the most on paid media … by far. • Mass media pushed people to the hub (www.barackobama.com).
  • 78. Be Transparent • Address criticism head-on. • Don‟t censor critics – empower supporters.
  • 79. It‟s A Permanent Campaign • It‟s not a sprint. It‟s a marathon. • Don‟t launch and move on. • Campaigns are on-going dialogues. • „Kaizen‟ • Build a community, keep fostering it and leverage it.
  • 80. Measure The Right Things • What is the real objective? • How will you determine success or failure?
  • 81. Obama = Community Organizer.