Building trust even when you don’t need it: Social Media Marketing

von | Apr 17, 2008 | Ad News, Blog, Digital Culture, Digital Marketing, Marketing, Social Media Marketing

Seth Godin, godfather of good quotes, recently wrote this:

The best time to look for a job next year is right now. The best time to plan for a sale in three years is right now. The mistake so many marketers make is that they conjoin the urgency of making another sale with the timing to earn the right to make that sale. In other words, you must build trust before you need it. Building trust right when you want to make a sale is just too late.

Publishing your ideas… in books, or on a blog, or in little twits on Twitter… and doing it with patience, over time, is the best way I can think of to lay a foundation for whatever it is you hope to do next.

This is why, in my opinion, Social Media Marketing cannot simply be viewed as another tactical discipline within marketing – or even advertising, as many companies might currently think about it. You shouldn’t just do Social Media Marketing as a one-off, as part of a campaign („we’ll have som TV commercials, some online banners, and, let’s see, some social media activities“).

It needs to be a strategic, long term goal to engage in Social Media activities, to build relations with the target audience, and to build trust for those moments, when you (urgently) need to activate your greatest brand/product fans…

Social Media in the 90s

von | Apr 14, 2008 | Blog, Digital Culture, Marketing Trends, Social Media Marketing

Courtesy of one of my colleagues who sent this around today: Social Media always existed in one or the other form. Sometimes the means of communication were a little complicated or indirect, but there was no excuse for not having been able to communicate the way you can today.

Well, I am still happy to have the tools of today, even though I sometimes feel like they can turn me into an adult ADD…

Linktip: the worst social media campaigns of 2007

von | Apr 7, 2008 | Ad News, Blog, Digital Marketing, Marketing, Online Advertising, Social Media Marketing

Over at the One Degree blog, there is a coverage of a panel from the SXSW interactive festival, during which the panelists were asked to vote on the worst social media campaigns in 2007. Amongst the panelists were bloggers like Jeff Jarvis and Steve Hall. I have to admit, I didn’t hear about all of these campaigns, but some of the bigger blunders (Walmart, Coke/Mentos and Sony) I did hear about, of course. I wonder what will be next for this year? You would assume, that (we) marketers learn…

Do social networks need advertising?

von | Feb 10, 2008 | Blog, Digital Marketing, Marketing, Online Advertising, Social Media Marketing

Mitch Joel pointed me to a business week article about advertising in social networks. In the same post he also links to a blogpost claiming social media sites need advertising.

In short: time spent on social networks is declining, for whatever reason – one could of course be increased advertising on these platforms. So this could be a problem for advertisers in the near future. Secondly: social networks need advertising, the same way media has always been ad supported.

But it’s not only the fact that user numbers are going down, ads on social networks are also less effective than on regular websites:

Many of the people who hang out on MySpace, Facebook, and other sites pay little to no attention to the ads because they’re more interested in kibitzing with their friends. Social networks have some of the lowest response rates on the Web, advertisers and ad placement firms say. Marketers say as few as 4 in 10,000 people who see their ads on social networking sites click on them, compared with 20 in 10,000 across the Web.

The solution to this is new targeting mechanisms, to serve users more relevant messages.

Last fall, both rolled out programs allowing marketers to pitch products to people in hundreds of categories of interest, such as fashion and sports. News Corp. President Peter Chernin said on Feb. 4 that response rates on MySpace improved as much as 300%.

Could be a solution. But at the end of the day, this whole approach still tries to use old answers to new problems. How about taking an approach that looks beyond plain advertising? How about introducing branded widgets, services, or exclusive whatevers to these platforms, so that brands can provide an added value to the interaction between users?

I am thinking of such things as the Red Bull Rosham Bull Challenge in facebook, which is a game that two users can play against each other. Or even just plain and simple things like the fact that you can sponsor digital gifts in facebook. There still is lots of potential for these kind of approaches.

Oh, and from a business model perspective: I don’t think social networks need advertising support. At least not to the extent that their business models are in danger if there is no proper ad solution in place.

Think about the German platform Xing.com. There you have a choice of paying a monthly premium for additional services – one of which is the fact that you don’t get to see any ads.

There could also be other models, like changing the business model slightly and starting e-commerce around certain product groups (i.e. certain information-based, digital products or even real products).

These problems are not really new. But what this whole discussion shows, is simply the fact that social networks have, all of a sudden, exposed the need for new marketing approaches much clearer than any of the previous developments on the web.