Social media marketing

What might surprise you is how quickly Twitter is growing as the social medium of choice among Fortune 500 companies. According to recent studies like “Fortune 500 and Social Media: A Longitudinal Study of Blogging and Twitter Usage by America’s Largest Companies,” conducted by the University of Massachusetts Dartmouth and Financial Insite, a Seattle-based Research Firm, Twitter is the platform of choice for Fortune 500 social media marketers.

The study examined the 2009 Fortune 500 in an attempt to quantify their adoption of social media tools and technologies, finding that 22% of Fortune 500 companies have a public-facing corporate blog – six percent more than 2008. The study also found that 86% of these blogs link directly to a corporate Twitter account, a 300% increase over 2008. Even more corporations have Twitter accounts, but not all link to them from their blog.

It would appear that Fortune 500 marketers are moving fast to Twitter for engaging with their key audiences. Of course, upon further analysis, you’d find that only 35% of these Twitter accounts are active – described as having been updated within the past 30 days. If I’m reading the study correctly, that means 65% are not being actively used.

While Fortune 500 companies have realized they need to be on Twitter – probably as defense against username squatting – few have truly embraced Twitter as a social channel. 

Of the groups that have engaged most heavily with Twitter, the insurance industry is leading the way, with 13 active Twitter accounts according to the study. Of course there are also companies like Exxon Mobil, the #1 company in the Fortune 500, that have no presence on Twitter.

A separate analysis of Fortune 500 Twitter, “The Global Social Media Check-Up” conducted by Burson-Marstellar, found that 79% of Fortune 100 Global companies are using one of four popular social media platforms, with Twitter leading Facebook, YouTube and corporate blogging as the platform of choice.

65% of Fortune Global 100 companies have active accounts on Twitter, while only 54% have Facebook accounts, 50% have YouTube channels, and 33% have a corporate blog. There is still plenty of room for improvement here.

Why Is Twitter the Preferred Platform?

Nobody knows for sure why Twitter is so popular, but there’s a good chance that it’s because it’s the easiest platform to launch. Companies can have a Twitter account up and running in a couple of hours (or less). There is a lot more work to do to launch a YouTube channel, corporate blog, or Facebook presence. It also takes considerably less resources to manage content production and audience interaction on Twitter than these other platforms. It’s a relatively low-cost and low-maintenance option for getting in the social media game.

Are Fortune 500 companies getting any value out of Twitter though? According to the Burson-Marstellar study, the answer is “yes”. Twitter accounts to the Fortune Global 100 average 1,489 followers. This doesn’t seem like much when you consider the average Facebook fan page for these companies has more than 40,000 fans, but it's progress.

A full copy of the new research report can be downloaded here: http://www.umassd.edu/cmr/studiesresearch.

I've decided to break with the tradition of mystical subterfuge that we creative types like to use to keep our methods secret.  I’m going to come clean about the three easy steps to create successful online video marketing. I know this will likely get me scratched off the list at all the best industry events, but I can no longer hold my tongue in good conscience.

Yea, I know… not much of a secret. The truth is people seem to view online videos as some sort of crazy alternative marketing.  It’s as if there is some secret ingredient that gets sprinkled over the computer while posting that makes it different than something you would see on television. The truth is that it is not the content that is different, but rather how it is consumed. Television is a fairly passive medium and people are more likely to watch something simply because it is in front of them. This is changing thanks to the DVR culture, but it is still largely true. Viewing a video online, however, is a much more deliberate act. People have to want to watch it. And, hopefully, they will pass it on to others so they can watch it. For this to happen it needs to really be engaging. Clearly the intent of all brand marketing is to engage the consumer, but online video needs to be or you won’t have an audience.

This fact makes it all the more absurd that many people believe that successful online videos can be created by anyone with a webcam. Certainly, there have been many such “successful” videos (witness the most viewed Youtube video ever), but this is the exception not the rule, and is rarely true when it comes to brand marketing.  I’m not saying that you need to have a million dollar budget, or hire the top Hollywood director, but you do have to approach it with clear creative intent, even if the end result is unscripted, or “low tech”. The principles that hold true for any successful film or video still apply: good narrative (whether plot or visual) and solid construction. Brands would never air some poorly produced piece with half-baked creative on television, yet they all too often treat their online video offerings as amateur hour.

Your video has to connect with your audience on some level, through humor, compassion, awe, outrage, etc. It has to offer the viewer some intrinsic value that will create an attachment and drive them to become a brand advocate. Once again, this is not a new marketing concept. What is new, is the tremendous advantage online video offers in this endeavor. At its core, a viral video is a social media tool. People love to share things with their friends and online video gives them the tools to go beyond the water cooler chat (did you see that spot on TV last night with the blue thing… hilarious!) to actually presenting your video to a person that trusts them. This is why an online viewing number that is a fraction of the viewers of a spot during a primetime show represents a much bigger win for the brand: the online viewers are active participants. Do it right and those participants become advocates.

There are specific factors that do distinguish online video from a televised spot: no length requirements, resolution and audio playback quality, trafficking to specific market, ease of deployment, etc. But do not let those differences cloud the fact that at it still needs to be approached with the same level of detail and planning as any on-air piece. Just because it is simple and inexpensive to get your video on the web, don’t treat like a second class marketing strategy. It has massive potential to influence your customers.

If I haven't convinced you yet that you should spend some marketing time and money by focusing on the Hispanic population, let me try again.  Media Post has several great articles on the subject.  Here is another one by Diana A. Terry-Azíos called "Brand Loyal, Yet Unbranded".

As a general rule, Hispanics are more brand loyal than other groups.  They are less risky with their purchases and stick to brands that have provided good quality products.  However, when many of them move to the U.S., they are likely not going to find their familiar brands here.  So they have to start shopping and they have tons of choices to choose from in the U.S.

Another issue is that they are not as compelled to buy "Made in USA" as other U.S. citizens nor will they be compelled to buy products endorsed by people they don't know.  If Hispanics don't know who Michael Jordan is, then he isn't going to help Hanes sell more underwear to them.  And Brett Favre isn't going to help sell more Wrangler jeans to them.

Here are some key points to marketing to the U.S. Hispanic population.

- You have to prove that your product is of good (or the best) quality.  Hispanics will often spend a little more if they are getting the best quality.
- Start a marketing campaign that will speak directly to Hispanics, perhaps with Hispanic stars, but definitely with Spanish content (and not just English content translated directly to Spanish).  Your marketing campaign needs to address quality, convenience and emotion.  But also keep in mind that the growing young Hispanic consumer considers himself/herself as Latino AND American.
- Use multiple touch points to stay in contact with Hispanic consumers. For example, studies have shown that Hispanics are more likely to respond to text messages than other groups.

For more Key points, see the article I am referencing.

Oh, and by the way, here are some interesting facts about the growing Hispanic population.

45.5 million -- The estimated Hispanic population of the United States as of July 1, 2007, making people of Hispanic origin the nation’s largest ethnic or race minority. Hispanics constituted 15% of the nation’s total population. In addition, there are approximately 3.9 million residents of Puerto Rico.

About 1 of every two people added to the nation’s population between July 1, 2006, and July 1, 2007, was Hispanic. There were 1.4 million Hispanics added to the population during the period.

3.3% increase in the Hispanic population between July 1, 2006, and July 1, 2007, making Hispanics the fastest-growing minority group.

Want more?  Here are some interesting facts.

So what are you waiting for?  The growing Hispanic population is waiting for you to give them a good reason to buy your products and to tell their friends just how good you are.  As word spreads through their community, your profits should start growing at a faster and faster pace.

We can help you.  We are an Atlanta interactive advertising agency.
 
Definition 6 is an interactive media agency that creates marketing initiatives that engage people.  We capture and analyze relevant metrics from web analytics, email marketing, online media, and social media campaigns to continue to test and refine marketing plans.  We’d like to help you meet the challenge of addressing the new expectations of consumers.

1. SalesView:

I have seen several articles recently about how Dell made $3 million using Twitter (How Dell Generated $3 million in Sales Using Twitter, Social Media ROI: Dell's $3m on Twitter and Four Better Examples).  Interestingly enough, the articles stress that having the $3 million in sales is not the most important thing that Dell is doing, but rather a good result to a much bigger strategy.  The important thing Dell is doing is customer communications.  They are actually listening to their customers.  They listen for their complaints and listen for their ideas and then they interact with their customers by replying to them.  Customers love it when a company responds to them.  By building a constantly growing base of customers, Dell is earning more respect.  So it is no wonder that when they started posting promotions on Twitter they generated a lot of sales.

It is important to note that even though Dell was able measure a hard ROI of sales that came directly from Twitter, there is a more difficult measure called "soft" ROI that no doubt led to the hard ROI.  The soft ROI is measured in things like fewer support personel required to take phone calls, the value of an online community that openly discusses a company's products or services, and the value of forums where people can search for answers rather than waiting on hold for a customer rep on the phone.  I think if you can build the soft ROI's, then the hard ROI's will be easy to create.

Definition 6 is an interactive marketing agency that can help companies start with the basics to build up a strong and powerful customer base using social media and then help to start generating hard ROI's.  We can help you with your long term strategy rather than just focusing on getting a company Twitter account up and running.  Just having the account is not going to help you generate revenue or customer loyalty.  It is how you use that account that will accomplish those.

1. Website analytics - If your initiative includes the enhancement or redesign of a website, start the project with an examination of your existing analytics data. If you don't have any, stop reading this and go get it. Figure out what will be important to you later. It may be as simple as traffic volume, visit duration, cost per ad spend or conversion rates. But you may find a need to collect custom data as well. Almost every analytics package out there has that capability.
2. External data - In this context, external data is performance data obtained through your CRM package or 3rd party sources. Call center volumes or in-store data would fall into this category. You need an adequate way to access it and you need historical references.
3. Email marketing - If your initiative includes modifications to email marketing programs, make sure your provider is collecting meaningful data on open and click-through rates. And make sure you'll have access to historical data to create a trending analysis.

In my continuing research into marketing to the Hispanic consumer, I'm finding great articles from MediaPost that provide good information on why and how to reach this particular audience.  So here is an article by Joseph Kutchera (Why Does Google Send U.S. Hispanics To Foreign Web Sites?) that talks about what Google is doing with search results for the Spanish speaking community and how you can apply similar ideas to your marketing campaigns.

The first thing he points out is that if you search in Google using Spanish words, 50% or more of your responses are going to be for sites outside of the U.S. borders.  So why does this happen and why do marketers miss this target audience?  Kutchera provides the answer.  "Google and other search engines index sites globally while we marketers, agencies and media sellers work within the economic and political borders of the U.S."  When people search using Spanish words and terms, Google is going to return sites that have Spanish content on them.  Does your website have Spanish content?  If you do, you may still be missing out on this audience for a few different reasons.  Kutchera points out the following.  1) Your Spanish site may not be optimized for Search Engine Optimization (SEO) like your English site.  2) Many Spanish speaking Hispanics like to go to sites of their country of origin. 3) Spanish language markets are more likely to spend time on their content, making it more relevant than someone from an English language market who is updating a Spanish language website. 4) U.S. advertisers have been slow to move budgets toward online marketing and therefore not providing the resources necessary to provide the content that is necessary.

So what can you do to reach the Hispanic population:

- Purchase non-U.S. targeted inventory on your search buys along with your U.S. targeted inventory.
- Reach out to Hispanic country-of-origin web sites through ad networks.
- Apply behavioral, contextual, and language targeting to further segment and understand your Hispanic audience.

As a Senior Consultant at Definition 6, an interactive marketing agency with expertise in Web Search Engine Optimization and Search Marketing Consulting, I'm seeing lots of evidence for companies to shift some marketing dollars to specifically target Hispanics in the U.S.  This growing population is getting online at a very fast pace.  There are millions and millions of them out there that could be buying your products or services if they could find you.  Are you willing to let them go to your competitors?  We can help you target them.  We can help you get ahead of the curve.
 

I just got a call from a strategic business partner, and as an Interactive Advertising Agency we stay up to speed on most things in the marketplace, and he was calling me from a break at a conference for his company.  As he said hello, I congratulated him on their company raising another round of VC dollars.  He said "Wow, how did you know that?!"  I told him simple; Twitter!  I was a follower of his company's partner account and at the same time they told the company they tweeted about it.  Interactive communications is so fast, that in less than 5 minutes the word was out!  Now this is a great story because they are an eMail marketing partner of ours, he is a long time friend and the news was good.  We talked about what the investment meant to his company and our partnership, we discussed how online ad agency business was continuing to see good growth this year and that 2010 was going to be a great year, and hung up smiling.

Now what if the news had been bad?  What if they had a meeting that was altering the relationship with partners and it was negative?  And someone had tweeted about it? I suspect our call wouldn't have been the same. 

Let's talk about your online interactive marketing and message management.  Do you have a twitter monitoring policy?  Do you have an account?  Do you follow your partners, customers, employees, competitors?  I do, you should too. Website Development is a very small part of being digital, search engine optimization is only a part as is eMail or even PPC. The big parts are listening, monitoring, and watching the ecosystem and being informed as quickly as possible to make decisions as rapidly as possible.  So next time you are with your Interactive Ad Agency, ask them what they know and when they learned it.  You will be amazed at how fast Digital has become.

At our Interactive Ad Agency we continually help our clients make good decisions regarding their online media usage. Social Media, eMail Marketing, PPC/Paid Search, Search Engine Optimization, Display, Mobile and Video are just the headers of the variety of options available to us. But recently Twitter has been owning the headlines.

David Martin, vice president, primary research, Nielsen Online, wrote in a blog post: "People are signing up in droves, and Twitter's unique audience is up over 100% in March."

But today I was sent a great article from MediaPost about an online / microblogging / SMS option to reach the masses that might not be the techno elite, but make up the mainstay of consumer America. More spending power and more of the participants in creating UGC for all our social media sites. The company is called Predicto and it is very focused on the celebrity world, think People, US, The View, TMZ, etc. http://www.predicto.com/

Between October and December 2008, Twitter had approximately 812,000 unique SMS users, but Predicto Mobile interacted with more than 2.3 million unique users. "We have a mainstream audience, which can help us grow faster," Kathein said. "Our members aren't necessarily the early adopters. Our customer base isn't made up of heavy iPhone users."  The full article can be found at http://bit.ly/M1QQy

I think this a great example of how Interactive Marketing is very niche and how you shouldn't fall in love with one channel, because your users might be better served with another channel.

Social Media Strategy is one of the most interesting things we do here at Definition 6, Atlanta Interactive Agency.  The rise of Web 2.0 Applications as commonplace within our daily lives has made Socail Media mainstream.  Sometimes we are asked how can we use social medai to improve search engine optimization and other times we are asked how can make social media fit into an integrated online marketing plan.  But it is a daily topic of conversation and I've found a really good report from destinationCRM.com that talks about a 5 year forecast for social media. The key points from the author, Jessica Tsai citing Jeremiah Owyang, are:

The report breaks down the past, present, and future state of the social Web into five overlapping eras:

1. The era of social relationships: Beginning in the mid-1990s, people signed up for online profiles and connected with their friends to share information.
2. The era of social functionality: As it exists today, social networking is more than just a platform for "friending," but one that can support a broader array of what Owyang calls "social interactive applications." However, identities are essentially disconnected silos within individual sites.
3. The era of social colonization: By late 2009, technologies such as OpenID and Facebook Connect will begin to break down the barriers of social networks and allow individuals to integrate their social connections as part of their online experience, blurring the lines between networks and traditional sites.
4. The era of social context: In 2010, sites will begin to recognize personal identities and social relationships to deliver customized online experiences. Social networks will become the "base of operation for everyone's online experiences."
5. The era of social commerce: In approximately two years, social networks will be more powerful than corporate Web sites and CRM systems, as individual identities and relationships are built on this platform. Brands will serve community interests and grow based on community advocacy as users continue to drive innovation in this direction.

So if we are doing a good job of being Interactive Marketing Strategists to help prepare our clients for the "era of social context" and upgrading our customer's sites to incorporate OpenID and Facebook Connect today. This will help them meet their customers where they are and with what they are doing online today.  I'll talk more about being ready for your customer in some future posts.

Lately I've been reading articles related to the Hispanic consumers.  I think most of us have read or heard about how the Hispanic population is growing so much in the U.S.  It seems to me companies that have products or services to sell should be paying more attention to this and shifting some (or a lot) of their marketing efforts toward the Hispanic consumer.

In an article on MediaPost by Jose Villa (http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=98883#comments), he talks about a very good reason to shift some focus to the Hispanic community.  Put plainly, they may be in better shape after the recession than any other ethnic sector.  In his article, he points out that unlike the previous recession, most consumers will not be able to go back to their old spending habits because they won't be able to get the same credit that they received before.  And we all know how our society loved to spend money on credit.  In the article, this is referred to as the "deleveraged consumer".  The Hispanic community, on the other hand, typically stayed away from spending on credit.  So when the economy recovers, they'll be more likely to continue their same spending habits they had before the recession while others will have to learn to cut back on their excessive spending.  Their lack of debt means that "the Hispanic market represents a beacon of opportunity as a truly deleveraged consumer" according to Jose.

I really like the idea of spending some marketing focus on the Hispanic community because I think there are a lot of potential buyers in that group that are untapped.  The three top ideas I can think of would be:

1. update your websites to offer a spanish version.  Although many of today's Hispanics that are online speak both English and Spanish, it is a welcoming gesture to let them choose their language of choice.  But don't forget to update imagery and styles of the Spanish website and not just the text (Jose has another article that addresses that: http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=103345)

2. allow your users to decide which language to receive their emails in.  You'll want to be sure you have proper tracking tools in place so that you can see how well your Spanish emails work and compare that to your English emails.

3. advertise in places where Hispanics spend more of their time.  In a previous blog post I discuss what some of those websites are.

Definition 6 is an interactive marketing agency that can help you analyze and plan a course of action to market to this untapped group.  As an application development company and online marketing company we can also implement your web applications and email marketing campaigns as well as provide analytics of both.  So take advantage now and don't leave out this important ethnic group.