The Social Network - Play by the Rules



Image via Tom Fishburne: Marketoonist

Every brand, big or small is jumping on the social media wagon thinking it to be the solution to all their problems. What they sometimes forget is that it's not the media which holds the key to great branding, it is how they use that media.

This pic depicts a facebook page for a brand (the cartoon is by Tom Fishburne) and brilliantly sums up the problem that brands high on social media face today. Why should I "like" a page and get updates on my feed if the brand had nothing to offer other than talk about how great it is? Wouldn't you hide the feeds or even block a real person like that?

Right from the start of print ads, engaging the consumer was the most viable part of any campaign and it hasn't changed since then. Brands should find a way to promote themselves not just by bragging about benefits but also offer an incentive to the consumer to make sure she interacts with the brand via the facebook page. Remember that the entire web is vying for her attention and each brand is just a click away!

Social media has done much to humanize brands, more than we ever thought possible. So if your brand was a person and his benefits were say like personal attributes, try building a personality people genuinely like.

1. Don't be shy, rude or boastful.
2. Treat your facebook fans like friends.
3. Be accessible.
4. Have a sense of humor.
5. Share. Don't just dump information.

Show Me the Money

Recently I read this great post on Knowledge@Wharton. They ran an interview of Jagmohan Raju and John Zhang, the authors of 'Smart Pricing'. As the book suggests, pricing when done right can contribute to the success of a product like nothing can! Competition-based Pricing and Cost-Plus Pricing are the popular concepts used by FMCGs but there are many more strategies in the marketplace, both online and offline. This led me to think about content-pricing on the web. What is the best way?

Since most web-content is free, websites have to develop new and innovative ways to make money. Hulu.com, the second most viewed video site (Youtube being no.1) is struggling to make money. Few months back, Adage claimed "Hulu is a towering success, just not financially". Its network backers are not happy with all the free episodes being streamed. Although Hulu does have an innovative ad concept where they interact with the viewer. Right at the beginning of the program, viewers are given the option of choosing the ad they would like to see. Good tactics but still not good enough to make profit.

Google doesn't charge the user, it charges the advertiser. Same with webmails, twitter and social networking tools. Twitter figured out its revenue model just a week back.

The New York Times is free online. Why would you "buy" it from a news stand? The Times is not charging us for reading its online content. Instead, its charging the advertisers. You know, the annoying rollovers that pop up just when you are about to read something.

This is another challenge for free web-content providers. How to make money without spoiling the user-experience? The ads got to be unobtrusive but at the same time you want the target audience to see and click on the ad-link. Only then can the website make money. More clicks = more money. That's how most affiliate programs work on the net.

Some of the very premium or very niche news websites tease the reader. The Wall Street Journal for example. You go to their home page, you see some previews, you click on an article you want to read and then they hit you with the following - "To continue reading, subscribe now". You have to subscribe for full-site access.

It's easy for location-based social networks like foursquare and gowalla. They can easily latch on to the local businesses and keep their service free for users. Geo-targeting is an effective marketing tool when it comes to services like hotels, restaurants, concerts, games etc.

Content and concepts may differ but the goal remains unchanged. Making money. Twitter did it best. They played it slow. Only after they had established a dedicated user-base (close to a billion!), they began revamping their revenue model.

Slow and steady - that's the way to go!

Coca Cola - From Santa Claus to Social Media

Advertising plays a larger role in our life than we can ever imagine. Did you know that the image of Santa most people have today is largely based on Coca-Cola advertising?

Before the profiling by Coca-Cola, Santa's appearances ranged from big, small, tall, fat, elf-like, bishop-like, gaunt, strict, spooky...and he wore everything from animal skin to a tan suit. Except for the color of his suit, the jolly old man owes much of his persona to the beverage giant.The traditional red coat has more to do with the imagination of Civil War cartoonist Thomas Nast than with any brand color.

Back in the 1920s many people thought of Coca-Cola as a drink meant for warm weather. With the 1922 slogan "Thirst Knows No Season," followed with a campaign connecting Santa Claus with the beverage, the company tried to remind people that Coca-Cola was a great choice in any season. Thus started the association of Claus and Coke.

An Excerpt From the Coca-Cola Website:

"Archie Lee, the D'Arcy Advertising Agency executive working with The Coca-Cola Company, wanted the next campaign to show a wholesome Santa as both realistic and symbolic. In 1931, The Coca-Cola Company commissioned Michigan-born illustrator Haddon Sundblom to develop advertising images using Santa Claus --- showing Santa himself, not a man dressed as Santa. For inspiration, Sundblom turned to Clement Clark Moore's 1822 poem "A Visit From St. Nicholas" (commonly called "'Twas the Night Before Christmas"). Moore's description of St. Nick led to an image of Santa that was warm, friendly, pleasantly plump and human. For the next 33 years, Sundblom painted portraits of Santa that helped to create the modern image of Santa ---an interpretation that today lives on in the minds of people of all ages, all over the world."

More recently, as part of the "Open Happiness" campaign Coca-Cola Company is sending three bloggers to 206 countries on Jan 1, 2010 to find out what makes people happy and then blog, tweet, upload videos and generally create a social media buzz around it for one whole year! Consumers will get to vote, suggest and complain as with any social media campaign. - [via psfk]

From redefining an icon to digging deep into the latest trend, the Coca-Cola Company is all about branding and maybe a secret formula or two. Given the composition and benefit of the product in question, that is the way to go!

Focus Group vs. Facebook

According to Nielsen NetView, users are spending more and more time on Facebook. The study suggests that the average US user spends more than 4.5 hours a month on Facebook, beating competitors like AOL, Google, Yahoo and Micrsoft hollow. This obviously explains why everything from the Lexus Convertible to a no-calorie Sweetener is nowadays advertised on the said site.

But Splenda Mist has gone one step further by doing away with focus groups altogether. Yes, the dreaded panel of freebie-lured opinionators is slowly on its way out. Because Facebook offers various advantages.

1. Basic information about the target group is already available.

2. According to Adage, "Facebook offered us the opportunity not only to advertise with a brand message and a product message but also the opportunity to solicit feedback and to have our target raise their hand and say, 'I want to sample this product,'" said Ivy Brown, group product director-Splenda. Which probably explains why Splenda gave away more than 16,000 samples in two weeks when it had hoped to distribute 10,000 samples in 12 weeks.

3. Feedback is interactive and sometimes, in real-time.

4. Reach is easily extended to the friends of the target who signs up for a sample or becomes a fan of the product. The fact that he or she has sampled or joined a fan-base immediately shows up on the news-feed of their Facebook homepage.

But what is in it for Facebook in terms of revenue? Makes sense only if it does this for lots and lots of brands. One niche player like Splenda Mist is not going to bring in the moolah.

Advertising Budget in a Slow Economy

Click on image to enlarge

As the cartoon by Tom Fishburne suggests, this is exactly what some premium brands are doing or thinking of doing. My advice: DONT! In times of economic downturn, the last thing you want to do is lose your premium advantage. Instead,

1. Focus on your core brand value and maintain it.

2. Try and avoid advertising budget cuts as much as possible. When the economy revives as we all know it will, you think it will do your brand any good if you had zero consumer contact during the slowdown.? Naah! I didn't think so.

3. No need to get all sappy. Just maintain brand loyalty through presence in multi-media. Nobody likes to be patronized, right?

4. This maybe a good time to go digital. Saves you money, expands your reach. According to Advertising Age, Procter & Gamble slashed U.S. ad buys 18% in the first quarter but more than doubled digital spending. "Our media strategy is pretty simple: Follow the consumer," said Marc Pritchard, global marketing officer. "And the consumer is becoming more and more engaged in the digital world."

5. Brush-up on SEO (Search Engine Optimization) and SMO (Social Media Optimization). These are the advertising tools which will rule the coming years.

6. While buying media, this is the time to take advantage of the low cost of entry and increase your share of voice across categories.

The points mentioned above are not new to many as is evident from the fact that brands like P&G did not slash their advertising budget even during the Great Depression. According to TNS Media Intelligence (via Media Post), U.S. media spending declined 14.2% in Q1, mainly because of automobile brands. But companies like GE, Sprint, Johnson & Johnson and Verizon increased their media spend during the same period! Apart from financial gain, these companies will be perceived as stable and consistent, both desirable qualities for any brand. Don't you think?

Quality Matters

Image Credit: Starbucks Blog

Click on image to enlarge

In my earlier posts I had mentioned the importance of copy in ads and the increasing influence of social media. Imagine my surprise when I read that my favorite coffee brand is making ample use of both in their latest marketing efforts to combat the launch of McCafe.

Take the above ads for example. According to New York Times, "Starbucks is putting up new advertising posters in six major cities. To further spread its message, it is trying to harness the power of online social networking sites by challenging people to hunt for the posters on Tuesday and be the first to post a photo of one using Twitter." I am told that there are many more social media initiatives lead by copy-filled ads in the pipeline.

McDonald’s advertising campaign is reportedly worth more than $100 million in television, print, radio, billboard and web ads with a launch strategy of "all coffee's the same, so you might as well buy the cheap stuff." This is where Starbucks is stepping in with facts about their quality, which I should add is way superior. The new Starbucks campaign is telling a story with a generous helping of words and they are recruiting you and me to spread it online. Old-time copy heavy advertising coupled with today's viral marketing can be a formidable marketing mix.

We should be happy because:

1. Both Starbucks and McDonald's are doling out the big bucks for their marketing endeavor. That's gotta be good for the economy, right?

2. Their respective ad agencies can now breathe easy.

3. Competition will eventually lead to better products at a better price.

Happy Java-ing!

Social Media - What are the rules?

Image Credit: Fred Cavazza
Source: http://www.flickr.com/photos/fredcavazza/2564571564/

Click on image to enlarge

On March 1 2009, Skittles gave up their corporate website and replaced it with user-generated content from social websites like Twitter, Facebook, Flickr and You Tube. The result: more than 600,000 fans on facebook, zillions of blog posts and in short, a frenzy amongst netizens or as I call them, "the web-connected". People who are constantly in touch with the virtual world. Just type in skittles social media on Google and you will be bombarded with information on the campaign. The approach is detailed out with screen shots and charts, the pros and cons are discussed in excruciating details and the campaign is praised and shot down in equal measure.

The Result:

Brand Presence - Unprecedented. Check out any of the blogs that come up on your google search. The world "skittles" have more mention than the financial crisis, says one post.

Numbers - Short term sales are likely to be impacted but like in all fads, long-term gains are debatable.

Drawback - Lack of monitoring has resulted in brand abuse in some cases and irrelevant references to the brand in others.

The last point is not very desirable, right? Social Media when used randomly can prove to be fatal for a brand because you don't pay for it so you can't monitor it. It is unearned brand talk and like most things "unearned", quite "uncontrollable" as well.

Television channels seem to have a somewhat handle on the problem. For e.g., when you watch a news program on CNN, they give you the opportunity to blog, email, twitter or facebook it. Then they screen the comments in real-time and only the relevant ones show up on your TV. I prefer the lack of abusive or inane content. Also, if you want the audiences' point of view on a particular subject, opinion polling is a cakewalk. No phone calls, no jammed lines. Just the touch of a button on the screen of your phone or computer.

As with all emerging media, there are no set rules yet and the applications are mind-boggling but instead of dumping the conventional media altogether, it makes sense to use both. Every brand has its unique personality. After all, it wouldn't be very nice if all your facebook page had was comments from other people. You want to say stuff about yourself too!