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.

1. How to organize and integrate your marketing operation to create a cohesive message
2. How to identify early in the process if you are achieving your goals
3. How to optimize your branding efforts and align them with your sales organization

• RedBull Connect – This site gives users access to information and articles from several Red Bull websites. This is a nice repository for everything related to red Bull without smacking users in the face with its advertising.  Consumers can comment, post, and interact with others without being forced to buy a Red Bull while, at the same time, red Bull always being part of the equation.

• Citysearch – The Facebook Connect portion of this is minimal; this is a good example of utilizing FB Connect to grab user information without implementing it for advertising.  The site personalizes your location when you connect with FB and automatically creates your personal profile and connects you with other Facebook friends on Citysearch - allowing you to share restaurant and other local recommendations via your Facebook feed.

• Pandora – Pandora uses less of a full-blown Facebook Connect microsite, and more of an application, but it is still a nice use of Facebook technology. The application can be used to share songs or a station with your Facebook friends.

In the last few years, there's been a lot of talk about moving beyond the 30 second commercial. This is more than just a commentary on format. It is really speaking to the way people consume media and the best way to leverage that consumption to get your brand’s message out. Web and mobile are providing a greater percentage of viewer’s video content, and that trend is increasing. But even though they are viewing their content on a different screen, they are still looking for an entertaining and engaging video experience.

The most successful commercial campaigns have always been the ones that entertain, whether humorous, touching, or visually stimulating. As the viewer’s lives become more media saturated, their desire to be entertained becomes more acute. This is why an old concept has resurrected, albeit in an updated form. Branded entertainment was the norm in the early days of television and it’s time has come again. Rather than trying to make commercials entertaining enough to capture consumers’ attention, why not create entertaining programming that promotes your brand. Branded entertainment, when done correctly, is a very effective way to get your brand noticed. Not only will you be putting your brand in front of your customers, you will actually enlist them in spreading the word. The challenge is to create something consumers will associate with your brand in a positive way that will not feel like merely an extended commercial.

For less than what it might cost to create a traditional commercial campaign and buy the media time, you can have a short film or series produced, put it on the web, and get millions of eyes on it. A series has an advantage over a single spot in that it can grab viewers and become a destination, allowing secondary branding opportunities. As with any advertising, there are many failed attempts at this. In order to be successful, you can't throw up just any old thing and hope it sticks. On the web, content is king, and consumers are becoming increasingly discriminating about what they will watch and pass to others. They may have switched screens, but they are looking for the same level of content they are used to seeing on television. There is a lot of competition for people’s attention but right now well produced and entertaining content is hard to come by. Now is the time to take advantage of the void. Produce a great show and users will find you. The most common mistake is thinking that something for web use does not need the attention you might give to something that will be shown on TV. Because the cost of getting something up on the web is cheap (relative to traditional media) many old-guard agencies tend to not put enough money into production. They fall back on old patterns that tie budget to the cost of the media. It is important to put the proper resources into creating your property.

And even though I have spoken mostly about web and mobile as fast growing platforms, that doesn’t mean it is time to abandon the television. Some of the lessons we are learning in the digital realm can be applied to traditional TV. More and more shows are using embedded sponsorship. And the numbers of channels available in specific markets make the prospect of producing a branded show an economic reality. The world of entertainment is changing quickly, with new options and possibilities opening up every day.

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.

MarketingSherpa released its 2009 eCommerce Benchmark Survey and reminds us that we should be gearing up for what is projected to be an improved holiday season: up 9% over 2008.  Nearly 1,500 eCommerce marketers rated tactics for improving website conversions.

1.  Perpetual shopping carts

These take many different forms:  from a simple note that there’s a product sitting in the cart to dynamic overlays showing images of the product, price, and estimated shipping costs.  The perpetual shopping cart keeps the purchase in the mind of the customer; that psychological anchor helps guide them back to the purchase.

2.  Website search

Consumer research suggests that almost 50% of shoppers prefer internal search over traditional menu options.  This number naturally rises when they have a specific product or brand in mind. 

The first priority is to test your internal search regularly to ensure that it works effectively. Second, examine the different business factors that can be used to optimize internal search results.  Some marketers use a ‘last in-first out’ method to move inventory, while others use their analytics and database systems to sort products by profit margin.  The choices are as broad as your technology and creativity.

3.  Enhanced display

Consumers are enthusiastic about getting multiple, varied photos of a product.   People want to know as much as they can about a product, and even static images can help.  Showing videos how to use products or explaining complex features can bring products to life for the user.

Definition 6 is an Atlanta ad agency and has extensive experience in building and designing eCommerce websites.  We can improve your Search Engine Optimization.  We are experts in Google Search technology and can implement search at your site.  We can also help you with your interactive advertising campaigns and targeted email marketing.  Do you need a mobile advertising strategy?  We can help!

According to recent studies and surveys over 50% of all smartphone traffic in the U.S. now comes from iPhones (AdMob Mobile Metrics, March 2009). And it’s growing. Other platforms are starting to catch on, but Apple truly succeeded in building and proliferating a means for people to have a vastly improved mobile web experience. Add to that a rabid user-base and the result is that iPhone’s Safari browser now starts showing up more and more on the overall analytics reports when companies review what browsers are accessing their sites. As an avid iPhone user myself since the first version I’ve been amazed at how I could navigate sites on this platform despite site designs that still required extensive zooming in and out and scrolling back and forth. I was so enamored that Apple designed UI mechanisms to help accommodate sites not designed for mobile that for a while I was simply excited to be able to use them at all. But slowly some sites began creating better mobile versions to make navigation even easier on the iPhone and other browsers. Now I grow greatly annoyed when I try to access a web site from my phone and find myself staring at a microscopic version of the homepage which makes it difficult to even find the buried link that says “Contact Us” just so I can find their address or phone number to get directions and a map while I’m out and about. Or even worse, the site is built in Flash with no HTML version and for whatever divine reason Apple has still not decided to support Flash on the iPhone. So the site is essentially useless on my phone and in some cases looks uglier than a Nip/Tuck season finale. I found it funny when I tried looking at the web sites of some of our competitors, some large digital agencies, and found they had sites built in Flash which are rendered useless on my device.

Numerous solutions exist for creating mobile presentation layers for even the most complex and transactional web sites to handle every different mobile device under the sun. We’ve helped many of our customers do exactly that. But there wasn’t a simple, fast and inexpensive way for a large majority of companies who just have a typical web site with typical CMS needs managed by a small number of people to easily publish and manage simple mobile site versions. With all this in mind, Definition 6 worked to build some simple scripts, toolsets and templates that integrate directly into a Content Management System enabling re-purposing of content by a non-technical marketing manager to easily deploy a site that looks great in an iPhone Safari browser. It leverages iPhone navigation mechanisms, and helps you to offer mobile users with the experience they desire and the information they likely need while mobile which is often quite different than what they want when they are sitting in front of a laptop or desktop computer. We’ve also packaged it all up in a simple series of offerings to make this an easy decision for our current and future customers so they can cost effectively begin to meet the needs of a growing market. If you don’t have an iPhone you can test to see what your site looks like using an iPhone simulator which we have posted at http://www.definition6.com/our-services/mobile.aspx and if you do have an iPhone just visit www.definition6.com now on your device to see an example.

In the coming weeks and months we’ll also be releasing the same kind of CMS plug-ins and templates for other mobile browsers as add-ons to these tools. But we thought we’d start with the one that represented the most traffic. For a quick and simple way to manage mobile sites in a CMS we think this new toolset makes great sense for a large number of businesses.

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 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.

The easy place to start is by analyzing your current position in the social landscape - and chances are, someone's already talking about you online. Take a look at what's being said, and analyze the impact of those conversations.

You also need to understand your motivation for using social media. Rather than taking an ‘everyone is doing it' approach, you'll need to clearly define your goals and outline what you believe social media will help your organization achieve.  All social tools are not created equal, and some work better than others depending on the desired outcomes and target audiences. There are numerous inexpensive tools that can help you create a launching pad for a social media presence that will, over time, be effective.

I was recently reading an article on Marketing Sherpa which was discussing their latest email marketing summit.  The article had a number of great insights on steps companies can take to improve their email programs.

The article served as reminder of how easy it is to become engulfed in the day to day or routine of your email program and how important it is to take a step back and examine the program as a whole.  Taking the time, even if it is quarterly or annually, to ensure that the email communications you are sending are both relevant and timely to your customer is imperative. 
Let’s take a look at a company within the retail industry; company A.  For years they have sent weekly emails to their customer list.  The weekly email is always composed of three offers.  Open rates are varied within a certain range, but are not showing any improvement as the program matures.  One cause of this lack of progress may be that the company has never taken a step back to evaluate who they are communicating to, why their consumer wants to hear from the company and how often this consumer would like to hear from them.   By answering these 3 fairly simple questions the company can begin to make program improvements.
1. Who are you communicating to?

This question is key to any successful email program.  It allows you to begin the process of segmentation at a base level.  Many times this data is a part of the enrollment process or may come from your CRM; some examples: is the customer a man or a woman, what is their age range, what are their interests (related to your products), do they purchase for themselves or for others, are purchases based on events (birthdays, anniversaries, etc), there are multitudes of questions you can ask which will help you to learn more about your customer. 

2. Why does the consumer want to hear from you?

Different customers are looking for different experiences with your brand.  Some may only want promotional communications – they only want to transact with your brand.  Other customers may be less interested in promotions and more interested in related lifestyle information.   Creating these differing communications and allowing recipients to choose which message they receive empowers the user and should improve both the short and long term stats of your program.

3. How often does the consumer want to hear from you?

How many lists is your customer signed up for?  How many emails are they receiving daily?  One way to ensure that you are not the list they unsubscribe from due to irrelevant and untimely communications is to give them the option.  Ask the consumer how often they would like to receive communications from you. This puts them in control.  When they receive a message from you, whether it is weekly, daily or monthly they have asked for that email and expect it.

By tackling the three issues above you can make great strides in your email program.  The main takeaways here are to know as much as you can about your customer – tailor your communications based on this information and to put the in control – allow them to “opt-in” not only to being on your list, but also to the frequency and types of communications they will receive.

Project Manager, Lisa Seals, shared a great case study with us that she found on the Marketing Professionals site.  The study talks about how the Days Inn chain uses mobile text marketing as opposed to mass email marketing and rich media advertising to communicate with guests, build loyalty, increase revenue and provide value-add services.  The article boasts text marketing as “customer service 2.0” for the hospitality industry.  Here are a few key items Lisa shared with our Client Services team…

1. Building the opt-in list.  The campaign began by generating awareness for the new texting program - front-desk associates ask guests at check-in whether they'd like to participate.  Special contests are set in place driving people to text (and opt-) in order to win a weekend getaway.  The program was promoted through elevator notices, keycard holders, and other key collateral.

2. Engaging the opt-ins.  The chain implemented a marketing plan of text messages which consisted of general promotions, hotel-specific promotions, and customized messages based on guests’ specific needs.

3. Lessons Learned.  The chain used a double opt-in program to attract only those guests who were truly interested – guests were reassured that their information would not be shared.  The time of day for messaging was considered for nationwide messages and messages were managed on frequency depending on a guest's length of stay.

Days Inn had a 22% increase in room upgrades and substantial increases in website traffic through their text marketing campaign.  There was even an increase in the use of hotel amenities with a 15-20% increase in reward program signups – not to mention the immeasurable increase in brand awareness.
 

Definition 6 Client Manager, Ira Gross, discovered an enlightening article in the Wall Street Journal around the impact of implementing overnight sends for email marketing newsletters.  The article mentions that companies who execute marketing programs in concert with their customers pay cycle are yielding better returns than performing promotions without paying attention to that cycle.  A few items worth mentioning from the article:

1. People buy bigger ticket items closer to payday
2. People spend less at the end of the month
3. Aligning promotions and offerings to pay cycles yeilds stronger sales

Given the current economic situation, firms need to understand their customers cash on hand and run appropriate promotions.  If you are running tartgeted email marketing campaigns, this article is definitely worth checking out.

An interactive advertising agency is in business to help its customers make more money at a lower cost than they did yesterday!  This meshes nicely with a Peter Drucker thought: "Because it is the purpose to create a customer, any business enterprise has two-and only two-basic functions: marketing and innovation." So if those of us in Interactive Marketing buy into this mindset, we are are at the epicenter of business. We are innovative marketers.

Let me give an example of what I mean. Let's say you come to your agency with the problem of losing sales leads when your customers come into contact with your retail partners floor sales staff. You have tried training programs, spiff, even eMail marketing Newsletters to stay top of mind with your partners. Unfortunately, they still often dislodge your customer from buying your brand and direct them to another brand. (you should confirm that you don't have a pricing or quality problem) How should you expect your Interactive advertising agency to solve this problem?

Some agencies will give you a better PPC plan, others will try on-line coupons, some might even talk about lifestyle content around your product via eNewsletters, but this is more of the same. An innovative partner will start with the simple question: "Why isn't your customer loyalty to your brand when the get to the store?" so they will solve the problem; "How to make our customers loyal before reaching the sales person". This is where innovation comes from, asking the root cause questions and not simply slapping tactic against the wall and hoping for results.