Friday, November 30, 2012

Behavioral economics and webpage design


Behavioral psychology is being increasingly acknowledged by many disciplines as being relevant for practitioners.  For example, CBS now offers classes in behavioral economics/decision making and behavioral finance.
Specific implications of behavioral psychology on webpage user interface design are summarized below:
1)      Colors matter (see summary of colors and associated emotional reactions here: http://www.webdesignerdepot.com/2010/05/the-psychology-of-web-design/)
2)      People read in ‘Z’ or F shaped eye flow pattern, so make sure most important information is contained and prioritized along this trajectory, especially along the left side of the page.
http://www.useit.com/alertbox/reading_pattern.html
3)      Serial positioning effect and visual hierarchy – Another series of biases related to the importance of the positioning of content (and messages/links you want them to act on) on the page and the recall of the visitor. (http://en.wikipedia.org/wiki/Serial_position_effect)
4)      Social proof – Behaviors can be encouraged by demonstrating that other people have done the same thing.  ‘X of your friends like this’ on facebook is an example of this being used.
5)      The Zeigarnik effect – Research has demonstrated that people get anxious about completing tasks that are only partially finished.  Application of this for website interfaces could result in partitioning a signup process into two parts.  The first part would be very quick and easy, allowing the user to continue on to use the website.  However, the fact that the process was not completed (and they are reminded about this) will make them more likely to complete it at a later point.  It therefore might be useful to partition a desired behavior into two parts to increase overall instances of the behavior being undertaken.
6)      Parabolic discounting – give people free or discounted trial versions of the product, which entices them to sign up, and have significant portions of the charges be applied to them at a later point in the future (which they will discount) – Specifically, charging in installments instead of all at one time.


-zb

Attention economy and control over our newsfeeds


The implications of the ‘newsfeed optimizer’ on social network sites is broad.  Facebook has what is called “Realtime engagement optimization”, which is what determines who and what we see in our newsfeed. 
quote from http://daltoncaldwell.com/understanding-likegate

Facebook newsfeed is an embodiment of our war on noise. We depend on the newsfeed optimizer to protect our limited attention span, and as a consequence, Facebook gets to choose what stories we do and don’t see, just as Google chooses which search results we do and don’t see. Conceptually, this seems very lucrative: Facebook is auctioning off our limited attention span to the highest bidder, as long as the bidder has a candidate newsstory to promote”
Especially as we get so many “friends”, it becomes more like a network of people we’ve met before and facebook becomes the arbitrator of these interactions.”
The term “attention economy” is used to describe the competition for space on our newsfeeds and other similar mediums.  It is interesting that for the time being, online social media users are content to allow Facebook to decide for them who and what to show.  Assuming that there is a correlation between the frequency with which we are shown information on an individual and/or product, and the extent to which we subsequently engage that individual or product, Facebook is influencing who we interact with.  It is conceivable that users could pay have their individual newsfeeds featured more prominently amongst those whose attention they want to attract…  estranged “friends”, romantic interests, potential clients/collaborators, etc.
A major question arises as to how long we will allow facebook and other related sites to be the arbitrator of our newsfeeds and attention?  Granted our activities to be watched are all happening on facebook and related sites, but it seems extreme to assume that Facebook and other social media sites will be allowed to control the entire attention economy to the extent that they do now for long.  Eventually people will want some increased amount of control over who/what they see and how these are determined and there is likely a huge opportunity for a company that could allow users to develop their own.  For the time being, we seem content to allow facebook and others decide for us what is worthy of our attention and what is not. 
-zb

Alternate design for men vs. women


Earlier this semester a number of CBS students met with the founders of “how about we.com”, a dating website that differentiates itself by having its members advertise potential dates they would like to go on rather than just posting a profile.  For example, a user might suggest a date of going for a walk in the park, visiting a specific museum, or getting dim sum in Chinatown. 
Howaboutwe.com also has a second model focusing on the user segment that has successfully met someone.  Rather than deactivating their account, users are invited to upgrade and join the ‘couples’ section of the dating site.   Under the upgraded model, a couple will be emailed once per month with a list of possible dates they can go on that are included in their monthly fee, from which the couple can chose one and pay no further amount.   
The site was started 2.5 years ago by two former school teachers who used to design curriculums for charter schools.  They got 3.5 million in funding in early and later 15 million in a second round.
What is interesting about the site is not only its two pronged approach to the online dating industry (going after both people looking for dates and also successful couples in relationships), but also the dominant demographic on the site: women aged 27 through 40.  Most other sides are predominantly men.  The implications for this were broad in terms of how the site had to alter its layout and design of its webpages to appeal more towards women and the founders commented that they had to alter the layout significantly.

One specific piece of learning the founders had in the design of the entire site was the extreme increase in signups if they could decrease their sign-up time below a specific threshold.  They learned to design the site more more simply, as more sophisticated signup interfaces received lower conversion rates.   Something as basic as putting an‘upgrade’ prompt on more pages (rather than just the user’s home page) increased upgrades  significantly.  This argues strongly for designing sites as simply possible and for reducing initial sign up processes to as short of a time period as possible.
-zb

The A/B Test: Inside the Technology That’s Changing the Rules of Businessv

Source: http://www.wired.com/business/2012/04/ff_abtesting/

A/B tests have been done in engineering companies for a while and are becoming popular inside companies such as Google. The goal of A/B test is to “ understand the impact of some change in the website UI, underlying algorithm, or marketing campaign for example, on users or customers”.This article gives examples how Obama campaign team used A/B test to better customize their website in order to increase subscription and donations.
 The new-media team already knew that their greatest challenge was turning the site’s visitors into subscribers—scoring an email address so that a drumbeat of campaign emails might eventually convert them into donors. Their visit would start with a splash page—a luminous turquoise photo of Obama and a bright red “Sign Up” button. But too few people clicked the button. Under Siroker’s tutelage, the team approached the problem with a new precision. They broke the page into its component parts and prepared a handful of alternatives for each. For the button, an A/B test of three new word choices—”Learn More,” “Join Us Now,” and “Sign Up Now”—revealed that “Learn More” garnered 18.6 percent more signups per visitor than the default of “Sign Up.” Similarly, a black-and-white photo of the Obama family outperformed the default turquoise image by 13.1 percent. Using both the family image and “Learn More,” signups increased by a thundering 40 percent.
The result is surprising and illuminating. This kind of experiments give these digital company a chance to utilize their marketing strategy in a very low cost. It also arise the attention about how far the reality might be from our assumption. Some examples are given in this article.
Most shocking of all to Obama’s team was just how poorly their instincts served them during the test. Almost unanimously, staffers expected that a video of Obama speaking at a rally would handily outperform any still photo. But in fact the video fared 30.3 percent worse than even the turquoise image. Had the team listened to instinct—if it had kept “Sign Up” as the button text and swapped out the photo for the video—the sign-up rate would have slipped to 70 percent of the baseline.
Although this kind of experiments are very hard to realize for offline marketing, it might be a trend in utilize digital marketing strategies. As concluded in the article:
What this means goes way beyond just a nimbler approach to site design. By subjecting all these decisions to the rule of data, A/B tends to shift the whole operating philosophy—even the power structure—of companies that adopt it. A/B is revolutionizing the way that firms develop websites and, in the process, rewriting some of the fundamental rules of business.

Advertising Opportunities in digital magazines



With the increasing number of the tablet devises on sold, almost all the magazine publishers have started to come up with app of their own magazines. This digital publishing has allows the publisher not only capture and retain the readers who would otherwise only choose to read the article online but also creates an opportunities for the advertisers who can come up with specific ads for the ad campaign. 

For example, these ad campaigns can target the reader based on their location. So, when you open you magazine, say Time, you will see the advertisement from the store what are nearest you and what is on sale. When it comes to the political elections, the readers would be able to see the ad from the candidate who lives in their areas.

Do More Facebook Friends Mean More Stress?



Source: http://blogs.cio.com/facebook/17598/when-worlds-collide-do-more-facebook-friends-mean-more-stress


   After reading the article,” When Worlds Collide: Do More Facebook Friends Mean More Stress?”, I have to admit that I agree with the author, Kristin Burnham.  I am a person who uses Facebook every day.  So, the issue from the article does matter to me.  It’s obvious that people usually judge a person by his or her Facebook page.  Thus, I try to manage my persona as not only friendly but also professional toward others.  For example, I do not post any content which can be aggressive to others or content regarding anything that could be easily misunderstood, such as politics, religion, or sensitive gender issues.  In addition, I always try to be polite and friendly to all of my friends on Facebook, even though, as the article says, this can sometimes be stressful.  

   I also believe these trends can impact the decisions that companies make about their marketing strategies.  These days, companies invest a lot of resources on their social media accounts, not to mention Facebook pages, to build an impressive brand image.  The more popular their Facebook pages are, the more careful companies should be in what they present, because there are an increasing number of people who judge a company by its Facebook page.  In addition, there are important and complicated online issues for a company to handle such as harassment, rumors and bullying. Therefore, companies need to make an effort to manage their social media accounts by using new methods they did not have to consider in the past. To be specific, some examples I recommend would be to make precise online guidelines for their marketers, and to build online risk management systems. 

Black Friday: Walmart vs Amazon and the future of retail

Interesting article on Slate by Farhad Manjoo, a pretty divisive "authority" on digital matters:  http://www.slate.com/articles/technology/technology/2012/11/amazon_wal_mart_why_the_e_commerce_giant_beats_the_big_box_retailer.html

The author tried to replace his XBox on Black Friday and failed miserably, highlighting some reasons why he says Walmart is facing increasing disadvantage vs. ecommerce players like Amazon.  He focuses on logistics and people.  Anyone following Walmart's recent performance knows there's some truth to that.

However, his points on where Walmart is headed, bridging online with brick and mortar, are certainly fascinating when we look at this convergence that has been a bit slower than most expected:
In particular, Wal-Mart has stores. By making its 4,000 physical locations more friendly to smartphones and more plugged-in to the Web, Wal-Mart is planning to do amazing things, including letting you order something and get it delivered that same day from your local store; pick up your online order in a store on the day you order it (a feature that’s already available); and pay for your in-store purchases on your smartphone, skipping the checkout lines entirely. "We are uniquely positioned to give customers anytime, anywhere access to Wal-Mart by combining the smartphone, online, and the physical stores," Duke told me. "Ultimately, that will give us an edge over any competitor."

This is all food for thought - if Walmart can make the above happen they can ride a new wave for many years.  Longer term, though, online seems to be where it's at.

The comments btw are hilarious - they slay him for substantiating anything by using Black Friday as an example.  

Five questions to ask to make mobile data work for your business

Today’s consumers are spending increasingly more time on mobile devices to look for information, consume it and then share it with their social circles. The important thing to grasp is that the data associated with this kind of 24/7 mobile engagement has become the new currency for understanding how and when to reach consumers. It’s like gold to marketers, and many brands have begun to align their marketing priorities to make mobile a primary channel within which to engage customers. The challenge is though, that marketers need to harness mobile data more effectively to create more relevant experiences through these highly personalized devices.

In this mobile-first world, marketers and brands need simple and seamless ways to measure, understand and analyze consumer activity on mobile. As mobile advertising, both search and display have hit a tipping point. Much like the online world, ad networks, ad exchanges and other ad serving companies have tried to establish a gradient for measuring consumer activity and developing new and innovative ways to reach consumers. However, with the emergence of social on mobile, mobile commerce and m-payments, there is an added level of complexity that gets introduced into the mix. To date, there has not been a way to measure and connect ‘true’ consumer activity across website, mobile browser, mobile messaging (email, SMS, MMS) and application usage. As mobile usage continues to grow at unprecedented rates, so does the divergence in what constitutes the right standard for mobile activity measurement. Alok Kapur, from Experian, has listed five things to keep in mind as one focus on leveraging mobile data:

1. What does mobile data means for your business? Outline the right metrics for what constitutes consumer engagement in the context of your business.
2. How will changes in the marketplace change the metrics and associated data that matter to you? Consumer usage on mobile is evolving at an extremely rapid pace and it is imperative to keep up with how consumers are re-aligning their engagement via this medium.
3. Is there a data and analytics lead for the business? Having a dedicated person or team who are contextualizing the data for your business is important to drive the right focus.
4. Do you have the same general data metrics in place as your partners and vendors? This drives a common set of measures for everyone to drive their business.
5. Are you trying to over engineer your mobile data metrics? There is nothing known as perfect data and it is important to focus on the right methods and approach versus perfect data.

Resource: http://www.experian.com/blogs/marketing-forward/2012/11/13/hw-five-questions-to-ask-to-make-mobile-data-work-for-your-business/

YOU can be a Trend Setter in 2013

source: http://socialmediatoday.com/rohitbhargava/1038626/how-spot-trend-7-social-media-trends-matter-2013

For those of us who don't have the time to stay in touch with changes in the Social space every waking minute of every day (because we have day jobs, because we are doing stuff related to life/school/work ALL the time, because the darn thing moves too fast and is too complicated, etc.) below is a cheat sheet courtesy of the article sourced above, on what we can expect in 2013. Here's your shot at being IN with the IT crowd!


7 Social Media Trends That Matter In 2013 (Sneak Peek)

  1. Shoptimization – The growing suite of technology, apps and business practices designed to make shopping quicker, easier and more convenient. (Examples - SliceDashlaneGoodRx,ShopSavvyWish Want WearKey RingRent the RunwayMacy’s in-store GPS)
  2. Partnership Publishing – Sitting between traditional publishing and self publishing is this “DIT – Do-it-together” model that pairs aspiring authors with publishing experts on an independent or boutique basis. (Examples - Paper Lantern LitNet MindsThe Domino Project,  andLayerGloss).
  3. Human Banking – In the works for some time, this trend of financial institutions finally using more human language and simplifying their offerings is set to take off in 2013. (Examples - Ally BankMint, and FoundersCard)
  4. MeFunding – Crowdfunding gets personal as individuals turn to this model to raise money for everything from life changing trips to paying for health costs after tragic accidents. (Examples - GoFundMeindiegogo and GiveForward)
  5. Hyper-Local Commerce – The money follows this hyper-local trend as tools emerge to instantly create ecommerce sites and apps help you keep money in your community. (Examples - GoodzerSears LocalPopulariseFundrise, and Shopify).
  6. FriendSourced Travel – Your friends are your greatest source of inspiration for planning travel, and a suite of apps and new travel services are making it easier to make your travel more personal than ever. (Examples - airbnbVayabletrippy,  Dine with the Dutch, and Tripbirds).
  7. Degree-Free Learning – The eLearning trend starts to take shape as more than a way to learn about hobbies – and begins to finally present itself as a viable alternative to a college education for some. (Examples - creativeLIVEInc. AdvisorJack Welch eMBAUnCollegeE[nstitute]and Soundslice

I for one am very much looking forward to #1, #6, & #7--starting September 2013, post MBA program commencement of course.

For those who are more socially inclined, can you think of any trends this list is missing?

Mobile Marketing Loyalty Programs

The Forbes article describes the proliferation of mobile devices and the need for marketers to create successful mobile marketing strategies, particularly around loyalty programs.

A couple facts from the article:
Mobile advertising is up 132% in the first half of 2012; mobile browsing is expected to overtake desktop engagement by 2014. 
- Only 19% of retailers have an e-commerce mobile app

Loyalty communications have more than 3 times the open and engagement rates than traditional communications; when combined with mobile devices the loyalty programs and mobile marketing efforts allow retailers to target its customers more directly and frequently.  By tailoring mobile communications to loyalty program clients, a retailer can create timely and relevant promotions and advertisements based on geography, etc.  

The article sites Valpak's app as a good example: "the service, which recently integrated with Apple Passbook, allows customers to download and store coupons which they can redeem directly from their phones. The app’s location-based technology alerts customers when they are physically near a merchant where they can use a coupon."
Source: http://www.forbes.com/sites/ericsavitz/2012/11/28/mobile-marketing-how-to-generate-loyalty-on-the-go/

Alex Elawadi

The Anti-Social CMO

source: http://www.forbes.com/sites/markfidelman/2012/11/29/the-top-20-social-cmos-of-the-fortune-100-visuals/

This article brings to the fore the issue of the growing gap between technological progress/global connectedness and CMO (Chief Marketing Officers) participation. The article shows pretty astoundingly that MOST Fortune 100 CMOs do NOT have active facebook/twitter/linked-in accounts/friends/followers, even though the rest of the world (aka normal people) seems to be moving full force into the realm of social media. 

This is problematic for numerous reasons, but I'll just state the big one: How will CMOs manage what they don't understand? WIth the majority of CMOs having never interfaced in the social space, how will they understand & approve/make decisions on the digital marketing strategies & tactics being employed by the digital marketers who sit on their own teams?

To be fair, this problem might not be so much about the willingness of CMOs to accept social media, as it is about the generational gap between Boomers (current c-suite) and Gen X/Y/Z'ers (more so Y and Z then X). Whereas Boomers grew up under the norms of achieving work-life balance and separating their personal lives from the world, Millenials today are living with an uber-connected-always-on-integrated-work-life-social mindset.

What does this all mean? That likely, as the current C-Suite steps down over time, the issue of social media/digital adoption will correct itself. In the meantime, if you're a CMO and not getting down with social, at least start taking some classes/reading articles about this stuff so that you don't lose touch with reality (or more importantly reality doesn't loses touch with you) over time...

New Social Media Marketing Co. raises $1.7bn in London

I wonder how many players will survive in that space. There seems to be many peers growing and raising assets at the moment. A large wave of consolidation might be on the way in the coming years...
http://techcrunch.com/2012/11/30/london-based-social-media-marketing-platform-footfall123-raises-1-7m-series-a-backers-include-samos-venrex/

Tell me it ain't so ... brand impressions take over baby names !

Source:   Apple-branded babies on the rise

 This seems to be a scary trend which I hope doesn't continue.   Names centered around the Apple phenomenon are on the rise.    "Apple" for girls rose 15%, Mac for boys rose 12% and Siri jumped up by 15%.    While I can understand the need for using trendy terms for businesses, social media campaigns and other marketing modes / channels, do we need to extend the branding to our kids?

I know some folks might argue that these are perfectly plausible names or have been around long before these terms (especially Siri came into the forefront).   That being said the source for baby names isn't just smartphone and all things "i"<Something>...

Other sources of inspiration range from the latest and greatest books -- "50 Shades of Grey", events -- "London Olympics", Presidential Elections -- <POTUS names are on the rise>. [ Source: Babycenter List of Names ] 

What does this mean for brands?   Well for one thing they carry more influence than ever.   A well thought out brand name, approach, marketing can leave an everlasting (multiple generations) impression.


 

Social Media to Plan a Party!

http://www.nytimes.com/2012/11/29/fashion/andy-russell-bets-on-social-media-to-reinvent-night-life.html?ref=fashion

This is an interesting article on the investor who is involved with Host Committee (www.hostcommittee.com).  I read this article today but have received emails from the company even though I am not signed up.  They have developed a party planning company that allows users to submit a party  concept they will find the space and your only job is to fill it up.  This article claims it is a great new product for nightclubs and other venues to use their space before opening to the public, therefore generating additional revenue.  Sounds like a great concept!

Social Media on the Rise in Retailing

This is an interesting bit of information posted in Womens Wear Daily (WWD) this morning.  It shows that retailers are using social media more and more with the main focus being Facebook but a large push has been implemented with Pinterest.  These platforms are obviously working for companies to be able to get to their core customers and engage them in sharing brand messages and products.  Check out the statistics below -


Social Media on the Rise in Retail Marketing Strategy: Survey

SOCIAL MEDIA STRATEGY: According to a BDO USA survey conducted in September and October, 86 percent of retail chief marketing officers have included social media in their marketing strategies, compared with just four percent of retailers back in 2007. While Facebook was the focus of 99 percent of those who responded, one in five said they were marketing on Pinterest this holiday season. In addition, on the mobile front, 29 percent said the top priority were flash sales and daily deals, while 23 percent said the focus was on text messages. Another 20 percent said they were focused on mobile coupons. Many retail respondents also said they were rolling out new forms of mobile engagement, including in-store GPS and apps that provide product reviews.

Thursday, November 29, 2012

100 Fascinating Social Media Statistics and Figures From 2012

http://www.huffingtonpost.com/brian-honigman/100-fascinating-social-me_b_2185281.html 

I came across this article on the Huffington Post which summarizes the 100 most fascinating social media statistics from 2012, and thought I'd share a few that I thought were noteworthy in my opinion:

  1. Barack Obama's victory Facebook page was the most liked photo on Facebook with over 4 million likes.
  2. Monthly active Facebook users now total nearly 850 million
  3. Brazil publishes the most number of posts out of all Facebook countries.
  4. 250 million photos are uploaded to Facebook every day.
  5. There are 175 million tweets sent from Twitter every day.
  6. Barack Obama's victory tweet was the most retweeted ever with over 800K retweets.
  7. Top 3 countries on Twitter are: USA, Brazil, and Japan
  8. There are 575 likes and 81 comments on by Instagram users every second.
  9. In August 2012, Instagram hit 80 million users and counting.
  10. The Google +1 button is used 5 billion times per day.
While some of these are not news to anyone, I'm always intrigued by how powerful social media has been in politics partly because I studied political science in college, spent most of my life in Washington, DC, and it has been a part of my life for a long time. This new media is powerful for politicians, who historically were forced to use more traditional forms like newspapers, television, and town hall meetings to get their message out there. And now, with Internet availability and mobile usage rising, it can be argued that politicians are expanding their reach and tapping new audiences. 

What's even more interesting is how receptive people are at consuming and spreading political-related news and information through their own social media accounts. I guess for me, I prefer to keep my political views and opinions to myself and my close friends and family. Others, it seems, like to share it with everybody...and sometimes like to share it a little too often. My guess though that now that the U.S. election is over, political-related updates will subside as the news and coverage declines.

Finnish Startup Aims To Turn Content Into Storefront

The Finnish startup Kiosked has just unveiled its novel new approach to marketing which it has been working on for several years.  The company has developed a method of making videos and pictures more interactive through affiliate links and e-commerce promotions.  For example, if you're watching an online video and like the shirt that someone is wearing in it, Kiosked's service will allow you to click a link within the video to take you someplace to buy that shirt.

After receiving $5.75 million in funding from Rovio (of Angry Birds fame) earlier this year, they have started by embedding their links in videos that Rovio has produced to sell Angry Birds jumpsuits (you can't make this stuff up). 

This could be an effective way to advertise - while most people would not be likely to click on these advertisements, those that do should be more likely than average to convert into sales.  The risk is that if these links are too intrusive, they may bother consumers enough that there is backlash.  One thing is for sure - as digital advertising evolves, more and more companies are taking innovative approaches like this to do a better job matching up companies with the people who want to buy their products. 

Facebook declaring war on Apple?

In an article on scientific american ("Facebook uses posters to push employees to switch to Android") pictures of  "war posters" are being pasted across their offices.

"After it was reported in August that Facebook employees were being "nudged, cajoled, and even ordered to give up their iPhones for Android devices," the social networking giant appears to be stepping up its campaign. Posters encouraging employees to "switch today" have begun appearing on the walls at the company's Mountain View, Calif., headquarters, according to a TechCrunch report."

The push is to encourage the Facebook employees to practice what they preach and make an effort to improve the inferior Android app. The irony of using the oldest form of marketing to "cajole" employees that work in the most cutting edge of marketing platforms is a bit ironic. 

I hope that they get their act together quickly since recent data showing 68.1% market share for Android and rising!


Star Power and Social Media

A friend of mine who is a lawyer in NYC recently complained to me that he had to work on an endorsement contract between popular reality TV stars and one of his clients. Based on the business his client was in and the reputation or perception the reality stars in question, he could not understand why his client was willing to fork over so much in terms of compensation and other “perks” to the TV stars.  His client pointed out that the reality stars had millions of followers on their social media pages and that hiring them was a natural way for him to reach that market.  Makes sense given the article below by Jacqui Moore, VP of Production at MTV Networks.
A week or so ago I attended a screening of Silver Linings Playbook, followed by a Q&A with the film’s director, David O Russell and leading male Bradley Cooper (sporting long scruffy hair, a backwards baseball cap and carrying a soda the size of which I thought Mayor Bloomberg had banned in the state of New York … but anyway, I digress).
David O Russell mentioned that Jennifer Lawrence had been cast as the leading female after auditioning for him via Skype. Although this was a new way of casting for Russell, it’s not the first time that video calls have been used to assist  when casting features. Abbie Cornish and Emma Roberts were cast in movies after their Skype auditions with Madonna and Wes Craven respectively, and I’m sure there are many more that I’m not aware of. But beyond utilizing technology to connect people who can’t physically be in the same place at the same time, the Internet – and in particular social media, is proving furtive ground for those making casting decisions.
Rumor has it that Peter Berg’s decision to cast Rihanna in Battleship may have been influenced by her having almost 27 million Twitter followers. This could also have been a consideration when Oprah Winfrey interviewed Rihanna on Oprah’s Next Chapter. The program was OWN’s second highest rated broadcast ever and won its slot in the coveted female demographic across ad-supported cable. Women engage more with social media than men, so this result may be more than co-incidence.
You only need to look at the success of Sean Comb’s (aka P.Diddy) endorsement deal with Diageo to see how much of an influence social media can have on a product’s success. P.Diddy (whose Twitter handle is @iamdiddy) has over 9 million Twitter followers. Last year sales of Ciroc vodka reached 13.5 million bottles, a staggering 250% increase since Diddy signed with the brand in 2007. Not only sweet nectar for Diageo, but sweet music for Combs who takes 50% of the drink’s profit. So with these numbers alone, one would assume that all you have to do is to cast someone with a large social media presence and ‘abracadabra’ you’re on to a winner. Wrong!
A HP Labs Research project (Influence and Passivity In Social Media, 2010) showed that the correlation between popularity and influence is weaker than expected. This, along with the insights that I gained from attending a recent Digital Hollywood conference, got me thinking about my professional experience in this area. Some with successful outcomes, some not so much. So, if you are thinking of harvesting the power of social media to bring more viewers to your show, here are three tips that I’d like to share:
1. Have A Complete Social Media Strategy. Tweets and Status Updates are Ephemeral. There are over 340 million tweets a day and the average Twitter user follows more than 100 people. So this, in combination with the fact that only a few tweets are visible on a screen at a time, means your strategy needs to involve getting the celebrity to tweet regularly- perhaps even several times a day. Seemingly not a day goes by in @iamdiddy world that doesn’t involve a visual or verbal mention of Ciroc, or one of Comb’s other ventures.  If you don’t have a strategy beyond getting the celeb to tweet a few times before show day, then you’ll quickly discover that your casting decision will bomb. Trust me, I’ve learned the hard way.
2. Be Smart In Your Messaging. Encourage Engagement and Offer a Value Proposition. Social Media users are savvy – they know when they’re being sold to, and while Millennials may not mind, the same is not true for other populations. HP Research Labs’ study notes that individuals need to actively engage with your content in order for your message to cut through the noise. 71% of tweets are simply ignored, so your celeb needs to know how to drive engagement. A simple ‘go watch my movie’ or ‘Ciroc is the best vodka on the planet’ is generally not going to cut it. More importantly it’s unlikely to get re-tweeted. However, ‘RT now for a chance to win VIP Access to the Ciroc After-party’ may just do the trick. Through creating a value proposition, and answering the ever present “what’s in it for me?’’ question, your message may well have a chance of being passed along, which could result in another butt being placed on your movie theater’s seat … or a few more dollars in Diddy’s pocket.
3. Beware of Celebrities Who Lack Credibility. Two words … Donald Trump. It’s perhaps best to avoid the celebs that are on a self-fulfilling prophecy … and there are a few out there. Be warned, a large following does not necessarily mean a large fan base. The followers may be nothing more than spectators – the type of person who slows down to gawp while driving past a motor vehicle pile up.
For the record, I follow both @iamdiddy and @realDonaldTrump. I’ve never bought a bottle of Ciroc (or even tasted it) and have no interest in seeing President Obama’s birth certificate. Oh, and I’ve tagged so many celebs in this post that the readership should theoretically go off the scale. However, I suspect the reality may be very different … keep watching, I’ll keep you posted.

Wednesday, November 28, 2012

How Much Facebook Might Make Through Gifts

Source: http://bits.blogs.nytimes.com/2012/11/28/how-much-facebook-might-make-through-gifts/

This is an interesting article by the NY Times, as they try and estimate how much revenue Facebook makes by their users giving gifts to each other through Facebook.  They say that Facebook has 168 million users in the U.S. and the average person giving a gift through Facebook spends $25.  So if 5 percent of U.S. users give a gift, that's about $200 million.  If Facebook gets a 15 percent cut of that it will be about $30 million in revenue for Facebook, which is a negligible portion of their projected total revenue of $5 billion.

The article then goes on to talk about how none of the big digital companies do a great job of capitalizing on gift giving.  Amazon doesn't have a great way to figure out what to buy for whom.  Apple allows gift giving to friends (provided you live in the same country).  So this is a huge area for Facebook to capitalize on, as not only is there significant room for growth but Facebook is uniquely positioned to capitalize on it.  They know when everyone's birthdays are and people blatantly post what they are interested in.

This article really got me thinking how it is crazy that none of the big web companies have done a very good job of taking advantage of gift giving.  So many people now shop online, so why not make it easier to suggest what someone might be interested in and allow them to buy it on the spot  Plus, it's a great way for people to advertise what they want.  This year I came across the fact that Amazon allows you to create a Wish List to let people know what you want (basically it is just a registry).  So far this is proving extremely helpful for us to make it easy for my mother in-law to not only know what we want for the holidays, but to also make sure she actually purchases the correct thing since she isn't too tech savvy (you'd be shocked how hard it is for her to type the correct book title into Amazon).  But despite having this functionality, Amazon doesn't really advertise it and you have to know that someone created a wish list.  It will be interesting to see if Facebook finally cracks the gift giving code, or if maybe some new company comes up with a strategy and swoops in.

Is Facebook in trouble?


Recently some organizations have asked for employees facebook login information during the interview process so they can be monitored for any unethical behavior.  Is it just me, or does this seem like a complete invasion of privacy and is intrusive?

It  makes me wonder if this is a major problem for facebook and will lead to more niche social providers that "corporate america' isn't as familiar with.   For me personaly,  I have posted less over the last couple of years and am not any where near as engaged on facebook as I once was when I knew it was just my college buddies seeing everything.  

I think there is an opportunity for communities to emerge that are only for certain groups.  Google is doing this currently.  With more a of a marketing push, I would not be surprised if more people makes the switch. And facebook will almost become a linkedin.

New Skills for Marketers: CBS teaching those skills?


The digital age is here and requires a new set skill set from marketing professionals.  People that are in charge of PR, brand management, campaign management etc. need to be able to interact with the digital customer and attract them because it is no longer just about having a better product or smooth value prop.  These marketers need to understand psychology, mathematics  sociology, anthropology and game design.   They need to be data junkies.  With the ability to collect and analyze data to make smart decisions.  They need to understand generation V customers that are more comfortable transacting digitaly than in person.
Is the Columbia Marketing department teaching us students these skills to thrive in the new world?  Should the marketing curriculum be overhauled to focus on the digital world?
What do you think?

Ben & Jerry's Wants Instagram Fans to 'Capture Euphoria'




Ben & Jerry's is well known for its passionate customer base, and now social media is enabling the company to personally engage with their active fan base.  Instagram has become a popular vehicle for the firm to connect with its customers in a new, innovative way.  The company currently has over 120,000 Instagram followers who now "like" their photos almost 5000 times per day. This active customer engagement has led Ben & Jerry's to launch a new global program known as “Capture Euphoria”. The idea of “euphoria” stems from the launch of Ben and Jerry’s 35 years ago, when the founders described their customer experience as “euphoric”. The “Capture Euphoria” program asks fans to tag their photos with “#captureeuphoria”.  The photos with this hashtag will be then selected for use in ads in local neighborhoods.  This contest is a way for Ben & Jerry to express their gratitude towards their passionate fans by sharing their online photos in their “off-line communities”.   

I have heard of many Instagram hashtag promotions and contests; however, “Capture Euphoria” is truly taking it to a new level by turning this online social media platform engagement into a public display of fan celebration.  I believe this creative contest will translate into further customer loyalty and support.