Published on February 18, 2009
First, the bad news.
According to a recent study by ! the Association of National Advertisers: 77% of marketers are reducing their advertising budgets Source: http://www.ana.net/news/content/1622 (Feb. 10, 2009)
Where are the cuts? o Departmental travel and expenses (87%) o Ad campaign media budgets (77%) o Ad campaign production (72%) o Agency costs and expenses (68%) o New project launches (58%)
The real bad news?
Those who stop advertising: o Lose money, especially in the long term o See a 20-30% drop in sales over 2 years o Rebound slower after the recession Source: “Marketing in a Recession: 10 Things to Remember,” Adweek, Feb. 2, 2009
“This is not the time to cut advertising. It is well documented that brands ! that increase advertising during a recession ! can improve market share at lower cost than during good economic times.” — Professor John A. Quelch Harvard Business School
The moral? Social media is not ! a replacement ! for paid advertising.
Ready for some quot; good news?
“Tight budgets will ! prod businesses to do ! what all the preaching and prodding won’t.” — Lisa Hoffmann, NewMediaLisa.com
75% of marketing executives predict advertisers will move more than a quarter of media time and spending away from traditional channels over 5 years.
Where’s the money going?
A recent survey of marketers’ quot; priorities for 2009 included: o Social media (68%) o E-mail marketing (60%) o Blogs (56%) o Online video (51%) o Microsites (43%) Source: Junta42 e-mail survey, December 2009
So what is social media? Social media is any tool that lets you share information and network with others.
So what is social media? • Blogging • Chat Rooms • Micro-blogging • Podcasts • Social networks • Virtual worlds • Video sharing • Wikis • Photo sharing • Applications
How are marketers using social media?
Social marketing is a mix of: o Public relations o Advertising o Content strategy o Search Engine Optimization (SEO) o Web development
One approach: Encourage the conversation
In just ﬁve weeks, Little Debbie’s ! 100 Calorie Snack outreach sparked: o 98 posts on 71 blogs o More than 5,000 reader comments o 830 new followers on Twitter
HP’s “31 Days of the Dragon” o Gave laptops to 31 bloggers o Laptops then given away to readers o 84% increase in HDX Dragon sales o 10% increase in overall PC sales Source: The Viral Garden, Sept. 29, 2008
Another approach: Join the conversation
Who’s on Twitter? o Starbucks o Ford o Whole Foods o Southwest o GM o Dunkin Donuts o Dell o Honda o Kodak o Zappos o Comcast o Red Cross o Little Debbie o H&R Block o Rubbermaid o Hertz o Home Depot o Nationwide
In December 2008, quot; Dell estimated it had made quot; $1 million in sales thanks to Twitter.
Twitter helps companies be: o Proactive with customer service o Efﬁcient with their PR o Useful to their customers
And yes, Blogging is still important. Perhaps more than ever.
A corporate blog offers you: o A hub for all your social efforts o A place to explain your side of the story o An incredibly stronger search presence o An open forum with your customers
Yet another approach: Start the conversation
4 million views on YouTube
7 million views, multiple remixes on YouTube
Saying you want to create a ! viral video! is like saying you want to write a best-selling book
A successful ‘viral’ needs: Something totally new o Lots of money and time o Lots of guts o Lots of luck o A strong distribution plan o
What else is out there? o Facebook pages, apps and causes o Branded apps for iPhones, Android, etc. o Alternate reality games o Interactive online video o Oh, and blogging. That’s still important.
Who should be doing quot; social media for companies?
Consultants? Pros: o Short-term commitment o Usually focused on training Cons: o Little accountability o Can have a cookie-cutter approach o Often overstate experience
PR agencies? Pros: o Long experience with outreach, ! crisis management and conversation-starting Cons: o Still addicted to press releases o Larger agencies too bureaucratic o Don’t empower clients to get involved
Buzz agencies? Pros: o Savvy with new media and metrics o Hungry for work, clients and case studies Cons: o Little accountability and track record o Often repackage same tools o Limited resources for bigger projects
Internal PR staff? Pros: o Close understanding of the corporate culture o Access to many parts of the company Cons: o Close understanding of the corporate culture o Few resources for design and development
Ad agencies? Pros: o Good design, interactive and writing skills o Understand complementary role of paid media Cons: o Too often think of social media in terms of campaigns or publicity stunts, not long-term communication
There’s no right answer, except to ﬁnd a partner you trust. And then get out there and do some incredible things.
Thanks for your time. email@example.com Twitter.com/griner TheSocialPath.com
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