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 been hearing the phrase "Drinking from the fire hose" more often than usual lately. The curious thing is that it's coming from Interactive Media Professionals (including myself), as much as from end users. With the exponential growth of the Internet and its related technologies, we now have access to more information, in more places, in more ways than ever before. Web 2.0, Social Media, Application Software Development, Mobile and related technologies are having a profound impact on Interactive Marketing Strategies. Many agencies are capable at traditional & online media marketing, or they may have strong technical capabilities--but, it is rare to find an agency that has all of these abilities and deep technical resources such as Definition 6.

To follow the fire hose analogy--anyone faced with that situation would get out of the way. The high volume and velocity of incoming data require some type of control and direction to be useful to ourselves, our clients, and our business.  Developers, interactive designers, and marketers are faced with the same questions as consumers--how to manage the onslaught of incoming information. Interactive Ad Agencies are faced with the additional responsibility of creating new tools to distribute information in a clear and meaningful way. These interactive professionals are the firemen holding the hose. 

At the height of the dotcom boom, an old colleague used to remind me that technology is simply a way of doing things. As the old broadcast model of advertising becomes obsolete, and user discovery & social interaction drive engagement, the function of marketing itself must now change to meet these communication challenges. This new model now poses new questions about where marketers should be, how they communicate, and when that interaction will occur.  I still remember the first  7-Eleven convenience store that opened in my neighborhood, and discovering that name comes from its operating hours—--it was a big deal to be open until 11PM! Marketers didn’t create more ads to attract customers from 9-5, they simply changed to meet customers on their own terms.

Integrated interactive marketing campaigns must be open and immersed in the culture to create value and be relevant. Successful marketers are positioned alongside their target market, making use of tactics such as Branded Content and Branded Entertainment to engage the user, enabling them to discover that value on their own, and decide what truly fulfills their needs. This is not an easy task, and creating meaningful user interaction grows out of qualified analysis of users and their interactions. Those of us in Media and Advertising have been exposed to these ideas before, but never before have these been more important to interactive design. Today's consumer has become a partner in the design process, and defines how we approach our interactions with them. Social media tools such as MySpace, Facebook and Twitter provide marketers with a limitless cache of information to help segment, target and engage users as never before— which only highlights the need for efficient processing of data.

Our obligation to clients is to find the relevant information, manage and organize it, and disperse it to potential customers.  To do this, we interpret client requirements and translate those requirements into a meaningful Interactive Experience. We need to collect and analyze enough user data to create strong, branded messages that reach the intended target. In addition, we must combine data with the tools and applications that make it meaningful to those target consumers.

In this new age of discovery, the true Integrated Interactive Agencies are taking the time and effort to find the tools necessary to do the job, or when needed, create them. With information coming constantly from every direction, those who are efficient at organizing, managing, and presenting it will be successful. Otherwise, we're just spraying a fire hose.  If we attempt to do that, consumers will just get out of the way.

And so it begins...

Over the past 15 years we have seen the rise of the digital age.  Well, we’ve seen the rise, fall, and rebirth of digital over that time frame.  Out of the ashes of the dotcom bust came a stronger, smarter marketer.  A marketer that understands the importance of measurement, ROI, brand, and business objective.  Also, out of the ashes came a smarter consumer.  A consumer who suddenly realized they have a voice, and the power to initiate change.  This combination has resulted in interactive marketing going from an afterthought in a CMO’s marketing plan to a focal point.  The web is now the hub of most marketing initiatives.  It is the place where we can create the deepest engagement, measure the most activity, and impact the audience the most by creating true brand experiences and real interaction with the brand. 

So traditional is dead, right?  Wrong.  Traditional mediums continue to be important. I have not thrown my HD flat screen out on the lawn yet.  My IPOD and my radio take turns in my car.  Occasionally, I still even read a magazine.  The real problem for marketers now is this: the interactive medium has gone from the smaller part of the overall mix, to the key driving factor that is the glue that enables a truly integrated experience for the user.  The advertising and marketing world has gone from a push to a pull.  Marketers need agencies who can execute a truly integrated plan by developing real interactive strategy…one message, one brand, many channels, multiple experiences. 
This fact has been the driving force for the recent growth and expansion of Definition 6.  For 13 years, Definition 6 has been creating interactive solutions that deliver measureable results for our clients.  We have taken great strides to build integrated strategies that work with our clients’ entire marketing plans.  And so today we announce the next evolution in Definition 6.

Definition 6 has acquired Creative Bubble  – A New York Based video design, production, and editing firm.  Creative Bubble is an Emmy Award Winning agency working with some of the best and brightest networks in the entertainment field including Nickelodeon, HBO, ESPN, Showtime, and USA Networks just to name a few.  This acquisition means a several things for Definition 6 and our clients...

First, we now have full in-house video production and editing capabilities, from script to screen.  As the lines between digital and traditional continue to blur, content becomes king.  We now have the ability to 100% in-house develop rich video content, coupled with our digital experience, enables us to develop and execute full integrated marketing campaigns that can be distributed across multiple mediums…Definition 6 has the capability to develop across the three screens that really matter: TV, Internet, and Mobile.  We also now have a fully functioning office in New York, the epicenter for the media world.  Again, with our existing strategy, social media, and analytics practices, we can develop more effective campaigns more efficiently that deliver real, quantifiable impact to the businesses of our clients. 

There will certainly be more news in the coming months from Definition 6.  But we are beginning to see the vision we’ve had for years come to fruition and we are very excited.  Marketing Integration.  Technology Innovation.  Building Brands that Matter.  That’s what Definition 6 has set out to do for our clients.  The game is changing everyday…and we can’t wait to see what tomorrow brings.

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.

In a recent Sales Caffeine email newsletter from Jeffrey Gitomer, there is an article by Michelle Joyce on Making Transactions Memorable.  She had a pleasant experience at the McDonald’s drive thru in Huntersville, North Carolina, and summarized what made the transaction memorable.
 
These three simple steps can be considered website redesign tips to improve user experience at your eCommerce websites and in all your interactive marketing efforts.

1.  Start with a smile and engage your prospect in a friendly manner.  Would you do business with someone you didn’t like?  Well, neither would your prospect.  This guy made me like him – immediately.  When he made that connection, the transaction became enjoyable and personal.  It was all about me, not just my order. 

2.  Offer alternative solutions.  People want choices.   Don't assume that your customer is aware of them.  Uncover their needs and help them make a choice.  McDonald's already mastered the upsell technique with their famous line, “Do you want fries with that?”  What kind of additional features and services can you upsell?  What kind of additional revenue are you leaving on the table at every sale?

3.  End the transaction with something memorable.  When is the last time that a fast food worker told you to “drive safely”?  Usually, it is the perfunctory "thank you” and “have a nice day”; but this guy made me feel like he was genuinely concerned about my personal safety.  What are you saying to your customers that make them remember you personally?

Michelle ends by saying:  The reality is that people are still buying products and services in this economy.  The only question is "Will they buy them from you?"

Definition 6 is an interactive marketing agency that can help you make a connection to your users, whether customers or prospective ones.  We are experts in website development and custom application development.  Even though we are an Atlanta Ad Agency, we have clients across the US that we help differentiate themselves from their competition.

Last week Interactive Marketing Agency Definition 6 launched TwitterINGO, an online game of sorts that leverages Twitter. I won’t go into all the details of how it works in this post, but essentially it’s a free downloadable desktop widget you run in the background while working (or at least trying to work… the game is a bit addictive to watch) as the game is played each Tuesday at 3PM EST. The tweets of all the people you follow stream down the left hand side while you get a 5x5 game board of keywords. When someone you follow posts a tweet containing a term you have on your board the square will highlight and fill in with that person’s tweet.

I am a bit biased of course in thinking the game is cool, I helped create TwitterINGO. The idea came from watching multiple columns of twitstreams in Tweetdeck and thinking how it almost felt like modern-day BINGO card. After a couple of brainstorming sessions we arrived at the current design. It has several premises.

1.       If you use Twitter to really, effectively follow the pulse of news and information that you care about you typically have to follow a fairly large number of people (typically at least in the hundreds and often in excess of that) and learn how to organize those people into groups in addition to creating effective searches for subjects.

2.       Finding the right people to follow who discuss the subjects of interest to you beyond your immediate circle of friends and colleagues takes some time and can be a bit of an art form as you sort through the clutter

3.       One of the real powers of social media is in how we help each other to find great people, pearls of wisdom, diamonds in the rough, etc.

4.       It can be really hard to identify the holes in your Following (you often don’t realize that you aren’t following certain subjects that interest you as well as you could be).

With this in mind we created TwitterINGO. With over 100 keywords “baked in” to the cards (all of them relating to popular and highly relevant subjects in the areas of interactive marketing, technology, media and advertising, application development, and social media), plus 20 current “terms of the week” on trending subjects sent out at the beginning of each weekly game, your card populates with a randomized selection of 24 of those terms, the middle square is free of course. Then you can simply sit back, have some fun and see what happens.

If you follow only a handful of people you will invariably become quickly disappointed as you realize none or few of your squares are populating. This can be a quick hint that you aren’t yet following the global conversations on tech and interactive or current events very well. On the other hand, if you follow a few hundred people who do talk about these subjects you’ll likely have a very different experience. I found myself fascinated watching my squares fill in (and unfortunately being less productive than I should be). It was amazing to see who I follow that randomly starting giving me the keywords I needed as I sought to get a row, column or diagonal completed to win. Every 5-10 minutes I’d get a square. First I got my “SharePoint” square filled by SharePoint Samurai @Gannotti. Then my “Brand” square filled by a post from @TobyDiva. Then Sun Microsystem’s Social Media guru @Sumaya posted a tweet with the term “open source”. I was off to a great start and saw another 4-5 squares fill in. And I came close to winning. But as I looked at what terms I needed to win (without cheating), I stared at the empty square with the word “Linux” in it. Why was nobody that I follow mentioning the word Linux? Hmmmm… there it was. A hole in how and who I Follow. I realized that I follow a lot of people on a lot of subjects but perhaps only a few that talk about Linux. To quickly rectify this I searched on the term Linux on Twitter and looked to see who the major contributors were and began following them. It was too late for me to win TwitterINGO this week, but it helped me do a better job of following that rather important part of the global technology conversation. The same can be said of many other terms I saw on my card that sat empty, I set out to see who was talking about the terms and found some really great people to start following.

While the game itself was rather fun, the real value was in seeing how it could help me. Plus I could then go look at the Leaderboard to see who the major Tweet Contributors were and who won and who they are following. The game is helping me to be a better user of social media to benefit my professional and personal interests and awareness. And I found a few extremely interesting people who played the game and won, people I’d never met before but that I certainly follow now. That's a game worth playing.

In recent years it seems as if E-Mail marketing has fallen by the wayside in light of emerging technologies and trends. Time and time again statistics have supported the profitability and legitimacy of E-Mail marketing, so it’s important to take a step back and see how E-Mail marketing is or more importantly isn’t, affecting your company.
Here are three questions to ask yourself or your marketing team in order to answer the bottom line; do we need to invest or reinvest in E-Mail marketing?

1) Have you forgotten about the basics?

In this new Web 2.0 world marketers are constantly scrambling to keep up with the latest trends, throwing money at anything deemed “cool,” “trendy,” or “popular.” At first glance new social outlets and advertising mediums may seem appealing, but sites such as YouTube, Twitter, Facebook, and Myspace have short track records in terms of performance and viewership capabilities. These mediums aren’t poor investments by any means, but more often than not companies are blinded by the popularity of new social sites and forget about the basics of interactive marketing; E-Mail marketing. 
In one Forrester survey E-Mail more than 80% of businesses surveys achieved a significant return on investment - double that of most other marketing initiatives. I highly doubt any current social media site can boast 80% ROI satisfaction for use of their advertising and marketing platforms.

There’s a reason social media and Web 2.0 technology is called the “frontier” of internet exploration; IT’S UNKNOWN TERRITORY. If you’re hoping to catch the wave early and become one of the first settlers on the new frontier, be prepared to sacrifice quite a bit of blood, sweat, and treasure. A word of warning though for those looking to brave these mysterious, ever-changing virtual landscapes;  by the time you and other businesses jump on the bandwagon, the consumer has most likely started getting off to ride the new model bandwagon – the one that has three axels instead of two.

BOTTOM LINE: Like my great grand pappy use to say, sometimes the best things in life are the simplest things; E-Mail marketing may not be as flashy as a MySpace page, but 9/10 it will dole out a much larger reward upon investment.

2) Are you putting your data to good use?

For those already utilizing E-Mail marketing it’s important to take a step back and review your E-Mail marketing process. Do you simply click “send” every two weeks to blast your newsletter or promotion? One of the foremost reasons E-Mail campaigns fail or plateau revolve around the marketers lack of interaction, understanding, diligence, or experience analyzing and applying the data generated by their E-Mail campaign.  E-Mail is light years ahead of almost every other advertising medium in terms of accountability and tracking, the question is whether you’re leveraging this unique capability or not. With the ability to instantly review the results of your efforts, it’s important to analyze the outcome through multiple lenses rather than just a couple such as “E-Mails opened,” “conversions,” or “bounced rates.”

As a rule of thumb every time you receive the results of an E-Mail blast you should be changing at least ONE aspect of your next E-Mail strategy or design. It’s entirely possible to deploy E-Mail blasts without acknowledging the data and still receive a good response and return. As a marketer you need to apply the data you receive in order to run a GREAT campaign. Just because you’re running a “good” campaign with minimal effort doesn’t change the fact that in reality you’re really running a poor to mediocre campaign.
The most effective E-Mail marketing is an evolutionary process consisting of hours, and hours, and hours (and hours) of data compilation, review, and reform. If you or your marketing team takes performs no action other than clicking “send,” odds are you’re missing out on the true strength of E-Mail marketing; quick, intuitive, statistically supported campaign adaptation.  

BOTTOM LINE: We don’t live in a static world; neither should your E-Mail marketing.  

 3) Are you maximizing your dollar during the recession?

Marketing departments across the world have been laying off employees in droves. Even higher level management today is looking for any way possible to show their superiors that they add value to the company. What would your superiors say if they saw you could not only boost revenue but cut costs at the same time?
Marketing budgets have shrank, but thankfully E-Mail marketing prices have stayed relatively the same – cost efficient. Of all the advertising mediums both virtual and physical, E-Mail marketing is among the most cost effective with the privilege of being able to boast one of the highest ROI’s. A single print ad can cost thousands upon thousands after the cost of graphic design and ad-space. Instead of paying $10,000-$25,000+ for one month of magazine advertising, you can run a four month e-mail campaign which normally entails better audiences, conversion rates, and accountability. If you find the costs of traditional advertising to be exorbitant, it may be time to dust off the E-Mail marketing proposal and take another look.

BOTTOM LINE: As the great Benjamin Franklin once said, “A penny saved is a penny earned.”

So ask yourself:

1) Would it be beneficial to scale back on costly new-age technology investments in order to temporarily invest in more dependable marketing initiatives?

2) Would it be beneficial to engage in an E-Mail marketing discovery phase to see if you’ve truly been interacting with your campaigns and applying the data you find?

3) Would it be beneficial to divert your limited budget to more cost effective (and often times profitable) marketing venture such as E-Marketing?

 

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.

In 2009, more data will be generated by individuals than in the entire previous history of mankind.  

Andreas Weigend explains how/why at http://blogs.harvardbusiness.org/now-new-next/2009/05/the-social-data-revolution.html.  There have been two “data revolutions” in the way consumer data is solicited and collected.

Initially, successful companies gained power by collecting, aggregating, and analyzing the customer data they collected.  But, most companies didn’t fully utilize all the data collected.

Then, companies like Amazon.com realized that users often trusted recommendations by other users more than promotional materials.  Users started to actively contribute explicit data, such as, information about themselves, their friends, or about the items they purchased.  Amazon leveraged this new knowledge to help customers with their purchasing decisions.


Successful firms encourage and reward users who contribute honest data.  Netflix allows users to contribute ratings for movies that they have seen; the incentive to contribute accurate data is to get better recommendations for new movies.  Customers are starting to interact with each other. Knowing that they are not alone has shifted the balance of power from companies back to consumers.


Why spend time on hold with a customer service representative if we can just Google see if someone else has already solved the same problem?  An online user community was likely to be more helpful than a representative employed by the company.


Bottom line:  The online world is beginning to be ruled by the expectations of the users.  Companies that want to stay relevant have no choice but to accept the ideas of the consumer revolution as swiftly as possible and address the higher expectations for customer relationships.

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.