Consumer Engagement, Word-of-Mouth Advocacy & Increasing Brand Loyalty: Study Reveals the Social Media Objectives Trinity

Posted on October 8, 2009 in Ecommerce, Online Branding, Social Media Marketing

While it should come as no surprise to anyone by now that many companies are embracing the use of social media as part of their overall marketing plan, a recent study reveals that brands are more likely to implement the use of social media now than ever before. The use of Facebook and Twitter by brands and merchants is at an all-time high, and customer reviews rank as the number one driving force for both consumer engagement and sales.

Community and Social Media Study

This survey of US web retailers was conducted by the e-tailing group and PowerReviews in August and September of 2009 for their “Community and Social Media Study.” Those surveyed were asked to answer questions about how they have adopted social media, and what they were trying to accomplish or what problems they were trying to solve using social media tools. The study surveyed 117 companies in total, a group which included multi-channel retailers (44%), brands & manufacturers (26%), pure-play retailers (12%), catalogers (9%), and suppliers/agencies (9%).

Social Media Tools

According to the survey, Facebook holds the top position for the most users, with 86% of online retailers currently using Facebook Fan Pages, and 10% planning to begin sometime in the 12 months. Twitter came in second, with 65% currently using and 19% planning to over the next year. Other social media tools and current usage are Customer Reviews (55%), Blogs (55%) and Viral Videos (50%).

Social Media Implementation

Brand and Merchant Objectives for Using Social Media

Brands and merchants listed their objectives in order of priority (apart from increasing sales). The following three, the “social media trinity”, came in at the top:

  1. greater customer engagement (39%)
  2. mobilizing advocates to drive “word of mouth” (30%)
  3. increasing brand loyalty (21%)

Social Media Objectives Chart

Social Media Concerns

The top three concerns the survey respondents had in relation to social media were:

  1. brand degradation fear – “people can trash my products in front of a large audience” (49%)
  2. competence fear – “I am using outdated marketing/merchandising techniques” (34%)
  3. competitive fear – “customer might leave my site to find a more socially-engaging site” (26%)

Social Media Concerns Chart

Implications & What’s Next

Lauren Freedman, President of the e-tailing group, states, “The integration of community and social networking within e-commerce has reached critical mass and as such is now a benchmark that we will be tracking annually. Customer engagement has become a metric to be reckoned with, where failing to engage consumers via community and social media will have brand and bottom-line implications. All merchants must test and understand how to effectively deploy it for their brands to retain customers, encourage sales, and avoid abandonment to competitors who’ve better embraced its marketing potential.”

In summary, these days, consumer engagement should be considered a marketing objective rather then simply a strategy, right along with sales. It will become increasingly important as more companies continue to engage their customers via social media in the future.


Viral Video Ad Mid-Year 2009 Round-Up

Posted on July 10, 2009 in Online Branding, Social Media Marketing

Half a Year of Viral Video Ads in 2009

It is July, and 2009 is already more than half-way over. Here is a list of viral video ads of note for the first part of the year. My pick for most innovative product promotional video was released by Microsoft/XBox last month, and it features their new Project Natal. Director Steven Spielberg was equally impressed with this product, saying that “This is a pivotal moment that will carry with it a wave of change, the ripples of which will reach far beyond video games.” Agency credit goes to World Famous:


The gaming industry continues to infiltrate other product lines, with popular characters making their way into mainstream commercials. Here’s a video released by Mountain Dew and Blizzard Entertainment® last month that uses characters from World of Warcaft. The commercial, which is currently running, promotes two new Mountain Dew flavors, Game Fuel® Citrus Cherry and Game Fuel® Wild Fruit:

Choose Your Side for Mountain Dew by BBDO

My honorable mention for most crowd-pleasing video goes to Taco Bell, and features Snowball the dancing cockatoo. This ad promotes Taco Bell’s new smoothie drink, the Fruitista Freeze. Viewers can forward this video to their friends telling them that they have been Colada’d, Taco Bell’s much-friendlier version of the Rick Roll:


The following is a list of other popular viral videos that have made their way to our computer screens this year:

Most Valuable Puppets featuring Kobe, LeBron and Lil’ Dez, for Nike by Wieden & Kennedy
T-Mobile Dance promoting Life’s for Sharing, filmed in Liverpool Street Station, by Saatchi & Saatchi, MediaCom
Ken Block’s Gymkana Two Project for DC Shoes, guest appearance from DC team rider, Rob Dyrdek, by Mad Media
Audrina Partridge Teriyaki Bikini Burger for Karl’s Junior, by Mendelsohn Zien
Test Drive Bras for Alton Towers Resort and Ultimo, produced in-house
Eyebrow Dance for Cadbury by Fallon

Finally, this viral video gets my vote for most artistic and creative, and it just happens to have been filmed in Evision Worldwide’s hometown city of Chicago. By Diageo Ireland, this ad was shot by award winning Director Chris Palmer and written by Dave Henderson and Richard Denney. The commercial was filmed over five days from an actual Chicago train. Overall, the film crew remained on the train for 50 hours in temperatures that were often below freezing. The train ran every day on the usual schedule, and rode at exact speeds to match the pace of the song. Each lyric had to happen at exactly the right moment for film capture. The actors stayed outside for as long as ten hours per day, also in freezing temperatures, and often in costumes that were not weather appropriate.

The song, “All Together Now” was written by Lennon & McCartney. Originally recorded by the Beatles in 1967 and released in 1969, it is performed here by The Hours. The band wanted to keep the recording as organic as possible. They recorded in their hotel room using basic equipment, and some of the percussion was even made in unusual ways, such as banging a fire extinguisher against a metal heater:


 


Connecting with Moms Online: Shopping, Blogging and Networking

Posted on May 28, 2009 in Ecommerce, Online Branding, Social Media Marketing

Meet the Power Moms

Nielsen Online published a study this month on the online surfing and shopping habits of today’s moms. Defined as women between the ages of 25 and 54 with at least one child, these so-called Power Moms represent 19.2% of the online population. Why does Nielsen call this group the Power Moms? Because, due to their participation in social networking sites and the hundreds of blogs that cater to them, these women are proving to be increasingly influential in the world of online retail.

Nielsen divides their Power Moms into two categories: the Established Moms and the Newbie Moms. Between these two groups, there is significant difference in how they spend their time online. Established Moms, or those between the ages of 40 and 50 with three or more children at home, tend to be heavy online shoppers. Their number one destination of choice on the web is Shopzilla, and they are 92% more likely to visit this site than the average user. Target and Wal-Mart come in at number two and number three.

“Established Moms gravitate to online shopping destinations where they are likely to be receptive to
highly relevant promotions to allow her to indulge herself while saving on her family’s needs,” said
Jessica Hogue, research director, Nielsen Online. “However, marketers shouldn’t rule out the rising
prominence of social networking sites among this cohort, which is one of the fastest growing
demographics on Facebook.”

Newbie Moms, or moms between the ages of 25 and 34 with one or two children at home, include social networking sites among their most visited. Newbie Moms are 85% more likely to visit Facebook, and are more than twice as likely to visit Blogger than the average user.

“For Newbie Moms social networking is literally woven into their day-to-day existence,” said Ms. Hogue. “Newbie Moms use the Internet to gather information about everything from nursery décor to choosing the right pediatrician. As they navigate caring for a newborn, returning to work or managing a growing household, the Internet acts as a lifeline to answer worrisome middle-of-the-night questions and to build community. Many Newbie Moms today blog about their experiences and use social networks as an efficient way to quickly broadcast their latest pictures and family updates.”

Power Moms Web Sites of Choice

Although Power Moms aged 39 to 54 are currently only 23% more likely than the average web user to participate in social networks, according to Facebook Insight, women between 40 and 50 years of age are their fastest growing demographic. So, the social network participation gap between the Established Moms and the Newbie Moms is getting narrower.

Nielsen Online has its own Power Mom blogger segment, which consists of over 10,000 mom-oriented blogs. Conversations about the economy and saving money make up over 12% of the total messages posted in March and April of 2009, up from eight percent in 2008. The online coupon revolution can probably be credited to the Power Mom bloggers and social networkers. Reviews and recommendations also make up a big part of online conversations.

“Mom bloggers review everything from beauty products to cars to inkjets, enabling marketers
unparalleled reach to their target consumers. In an increasingly connected world, moms seek the
wisdom of their online counterparts as trusted advisors,” said Ms. Hogue.

Here is a short video montage of what some of the moms in the Nielsen study had to say about the role that the Internet plays in their daily lives: Power Moms Video.

The Power Mom 50

Out of the 10,000 blogs monitored by Nielsen, they have identified what they call the Power Mom 50. These are blogs that Nielsen has recognized as the most influential in the mom-oriented blogosphere. The Power Mom 50 is determined by the number of blog posts, comments and incoming links, as tracked by Nielsen Buzzmetrics. Other metrics include the number of Twitter followers and ratings. The Power Mom 50 is further sub-divided into groups that include:

  • Savvy Spenders (sharing coupons and savings tips)
  • Mom Approved (ratings and review sites)
  • Queen Bee (tips on parenting, decor, etc.)
  • Mamastes (green living, yoga, etc.)
  • Tech Moms (technology news and information)
  • CEO Moms (working women)

The final group is called the Power Pack, or, what Nielsen refers to as the “Momfluentials”. These moms don’t fit into just one of the above-mentioned groups. Momfluentials have a huge following and a powerful online voice. The complete list of blogs and social networking sites included in the Power Mom 50 can be found here: Nielsen’s Power Mom 50.

Why all the fuss about the Power Moms? According to the Marketing to Moms Coalition, moms control 85% of household spending, and are worth more than $2 trillion to U.S. brands. The U.S. Department of Labor reports that 78% of mothers work, and the coalition study has determined that full-time working mothers use technology at the highest rates. Furthermore, moms are spending an average of three hours per day online, as opposed to their children’s average of two hours per day.

“Mothers, now more than ever, are using technology like video, blogs and wireless devices to multi-task through their busy days,” says Maria Bailey of BSM Media, industry expert and author of the book, Mom 3.0: Marketing with Today’s Mothers by Leveraging New Media & Technology. “2009 stands to produce a record number of tech-savvy mothers bridging devices together to create everyday solutions.”

Ecommerce for beauty products, household goods and food is projected to grow to $12 billion by 2011. Effectively connecting with Power Moms is essential for any company interested in endearing their products to this very vocal, brand-conscious and brand-loyal group of online shoppers.


Is Your Marketing Department/Agency Robbing You (Banner) Blind?

Posted on March 18, 2009 in Online Branding, Website Design & Usability

banner-blindnessLet’s start with the basics.

What is banner blindness?

This term comes from a 1998 study that was called, “Banner Blindness: Web Searchers Often Miss Obvious Links,” by Jan Panero Benway and David M. Lane. The gist of the study: People almost never look at anything on the web that looks like an advertisement.

Here are some other factors that make banner ads a tough sell in our offices:

Ad-Blocking Software
There are some really sophisticated ad blocking softwares out there. These prevent ad delivery, thus preventing your from reaching your target audience.

Graphics-Off Surfers
A lot of browsers actually disable animation, which can be distracting and annoying to users. Reality check: All the money you spent on designing a flashy banner animation is entirely wasted on this segment of your target market.

Failure to Load
Ads often fail to display, even on high-speed internet. This can be blamed on lethargic ad servers that are not always working at peak performance. I personally have experienced this a lot with the Yahoo home page banners. Remember: the more complex you make your ads, the slower they are. A few extra seconds means that I have already moved on to the content I was looking for. Sorry, you lose.

Outdated Flash Players
Not everyone has loaded up the latest flash player version. We all know people that just never get around to updating their computer. Case in point: The population using Internet Explorer 6… when do you think they last updated their computer?

Placement Disasters
This is the scariest and often the most hilarious way a banner campaign can fail. Here are 2 of my favorite examples:

  • There was a banner ad running under a German curse word dictionary. It read: “Travel to Friendly Germany This Summer!” Hilarious.
  • A banner ad for an ethnic matchmaking website was running right under a news expose on a gruesome “Honor Killing” that took place in the same community. Pretty dark.

Lose Friends and Alienate People
Elaborating on the point above…don’t overdo it. And don’t push your brand in places where your ads will annoy people. Brand exhaustion can set in if your banners are splashed everywhere. Banners can become like those pesky TV commercials you are forced to watch during your favorite TV show live.

Why do marketing agencies push for banner ads?

Answer: Ignorance or unwillingness to embrace the truth. Or a willingness to make money running campaigns that don’t pay off for the client.

Propping up your marketing mountain on banner ad matchsticks is going to have disastrous consequences. Before you start thinking about getting into a banner ad program, you need to be certain that the rest of your marketing program is in ship-shape. If you are in the market to build your brand, make sure that first you have the basics covered:

  • Great-looking, intuitive and usable website
  • Solid pay per click campaign with contained CPCs and excellent landing pages
  • Integrated offline and online messaging

Then you go and water the plants, diet and exercise, do community service….THEN start with banner ads.

Listen to the Godfather of Web Usability, Jakob Nielsen, who says: “…companies continue to be clueless about the Internet and waste their budgets on banner ads that don’t work.” The next time an agency tries to force a banner campaign on you, ask yourself…What would Jakob do?