Creating a social media strategy for a tourism business

Block 2: Social Tourism

This document has been produced by 11 Goals & Associates. It is not complete unless supported by the underlying detailed analyses and oral presentation.

International Master in Hospitality and Tourism Management

January 9th, 2013 Francisco Hernández fran.me

About me SHAMELESS SELF-PROMOTION

Education: Universidad Politécnica de Madrid, UNED,

London Business School, University of Chicago – Fundaciò

“laCaixa” & Fundación Rafael del Pino scholarships.

Firms worked for full-time: Abengoa, McKinsey&Co, ABN

AMRO, Real Madrid C.F.

Entrepreneurship: Crisalia

Social Media & Internet consulting: 11goals.com

Lectures & Speaker in 3 continents: The Wall Street Journal, Universidad Politécnica

de Madrid, London Business School, Cornell University, Politecnico di Milano, CEIBS

(Shanghai), Kungliga Tekniska högskolan, The Business Factory, Asociación J.W.

Fulbright Spain, ESCP Europe, UIMP, and several private companies.

Full profile: linkedin.com/in/franciscohm

Seminar’s agenda

How do I make money in Internet?

(Block 3)

How can I market my business in

Internet? (Blocks 1 and 2)

Block 1: Basics of online marketing (day 1)

Block 2: Social tourism (days 2 & 3)

Block 3: E-Commerce in tourism (day 3)

Block 4: Case presentations (day 4)

Summary of block 1

Online advertising

Affiliate programs

Referral marketing

Email marketing

SEO

Content marketing

Online public relations

Social marketing

Fake marketing

Block 1 presentation

REMINDER

“A child of five would understand this. Send someone to fetch a child of five.”

Groucho Marx

Quote of the block

Agenda

Tourism is social by nature

Web 2.0

Social media advertising

Community Marketing

Building an effective online community

Sending a postcard…

Displaying where we have been…

Our parents

Our children (& ourselves)

Knowing how people live in touristic destinations • 9 out of 10 Egyptians and Tunisians asked

in a poll said they used Facebook to organize protests and spread awareness

Most voted comment at a Foursquare’s tapas bar checkin page

My friend Federico recommending a restaurant after learning I am in the city of Santander

Metropolitan Police in YouTube & Twitter #London2012

http://youtu.be/NfK-e7UArFQ

KLM: App to create personilized luggage tags

Preparing my trip to Venice 1/5: I first met Alejandro at a dinner and we connect as friends in Facebook.

After dinner, I complitely forgot he lived in Venice. So many things in my head, why should I? Life goes on…

Preparing my trip to Venice 2/5: Few weeks later I had to prepare a trip to Venice and I search in the Internet. I “Like” some pages about bridges in Venice.

Of course Alejandro was not top pf my mind. I did not remember he lived in venice!

Preparing my trip to Venice 3/5: Facebook’s algorithm detects my interest in “Venice” and next day Alejandro is showen in my wall.

Preparing my trip to Venice 4/5: Snooping in his wall I discover he talks about “Casa de Uscoli”.

Preparing my trip to Venice 5/5: I looked up Casa de Uscoli in TripAdvisor. My TripAdvisor account is linked to my Facebook account.

96 reviews but only one matters to me, Jesus’…

http://www.tripadvisor.es/Hotel_Review-g187870-d318151-Reviews-Casa_de_Uscoli-Venice_Veneto.html

How do we play?

Offline, Social

5.7 mill. daily users

Source: App Data

Online, Non-Social

“Transactionalization” Online, Social

“Re-Socialization”

The path to social+online

Social Non Social

Online

Offline

Gaming

¿?

¿? SOCIAL

TECHNOLOGIES (Social relevance / real identities)

& INNOVATION

Supermarket Shopping

TV

Electronics Shopping

Travelling

ILLUSTRATIVE EXAMPLES

INFORMATION TECHNOLOGIES

Each segment has its own way and pace to be online and social

Source: 11 Goals & Associates

Inertia in the application of new technologies

Radio as newspaper… TV as radio…

Web 1.0 as newspaper… Web 2.0 as Web 1.0…

It always takes time to adapt to new technologies We expect years developing applications of current and future social technologies

Source: 11 Goals & Associates

Agenda

Tourism is social by nature

Web 2.0

Social media advertising

Community Marketing

Building an effective online community

“Web 2.0 is the network as platform, spanning all connected devices; Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually-updated service that gets better the more people use it, consuming and remixing data from multiple sources, including individual users, while providing their own data and services in a form that allows remixing by others, creating network effects through an "architecture of participation," and going beyond the page metaphor of Web 1.0 to deliver rich user experiences.”

Tim O’Reilly (October 2005)

Source: O’Reilly Radar: http://radar.oreilly.com/2005/10/web-20-compact-definition.html

Definition of web 2.0

Evolution towards web 2.0

“Catalog” (www)

“Search” (Google)

“Social” “Web 2.0” (Facebook)

Social media is a reality, a sound reality

Source: comScore, Bloomberg

In October 2011 (latest comScore’s global report), there were 1,200 million people on social networks, a 82.4% of World’s online population.

In Europe, 28% of navigation time happens on social networks (~7 hours/month).

98% of Spaniards interact with Social Networks.

Digital natives (<25 year-old) spend on SNS 8 times what they spend on email.

Largest IPO in history (Facebook, 2012). Facebook’s market cap (USD 63.8 b) is larger than Ford’s (USD 51.2 b), BBVA’s (USD 53.2 b), Telefonica’s (USD 62.6 b), etc. [Jan 7th, 2013]

Our growing circle of trust From “Me” to “Social”

Miguel

Mom Me Dad

Miguel

Enrique

Gonza

Carmen

Arturo

…

…

…

…

• One of our most valuable assets is the trustworthiness system we are continuously building up during our lives. It helps us to take decisions

• Social media phenomenon succeeded because of this translated into online

Esther

Source: 11 Goals & Associates

How do we use our circle of trust?

We rely on people we know to:

• Get informed.

• Make decisions.

Extract value from the circle

Nourish and extend the circle

We use our experiences to:

• Increase our Goodwill

• Identify ourselves.

• Self-express ourselves.

• Self-realise

• Socialize around an excuse for conversation

Yo

Miguel

Arturo

Esther

Julio …

Enrique

Rafael

Tomás

Mamá Papá

Miquel

26

What’s a social networking service?

Source: http://en.wikipedia.org/wiki/Social_networking_service

SNS: “online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities” (Wikipedia)

There are discrepancies about which services are really a

SNS and which ones are not

~85% of online

population use SNS

Traditional, offline Social Networks EXAMPLE

The first online social network…

Photo: http://www.flickr.com/photos/ajc1/3367295141/

Social networking service: “online service, platform, or site that focuses on building

and reflecting of social networks or social relations

among people, who, for example, share interests

and/or activities” (Wikipedia)

World map of Social Networks June 2009

Source: vincos.it

World map of Social Networks June 2012

Source: vincos.it

The World Facebookised (1000 mill. Active users)

Facebook #1 international social networking website

Friends networking + Brand communities

>1,000 mill. active users Grew concentrically: Ivy

league universities -> universities -> high schools -> open

Open Graph Facebook connect + API Social gaming Great content

segmentation tools Social advertising Moving fast towards

Mobile

International Facebook presence

Source: Social Backers, Facebook Inc, INE

167,6

60,7

60,5

50,5

39,4

33,2

31,4

29,9

25,3

25,0

22,8

20,4

18,6

17,5

17,5

17,3

16,4

13,2

13,1

11,7

EEUU

Brasil

India

Indonesia

México

Reino Unido

Turquía

Filipinas

Francia

Alemania

Italia

Argentina

Canadá

Tailandia

Colombia

España

Japón

Malasia

Taiwan

Australia

54% 7,6%

Users (mill.) | Penetration (%) | 3-month growth (%)

30% 13,1%

5% 17,8%

21% 14,9%

35% 8,4%

53% 9,2%

40% 2,2%

30% 4,3%

39% 4,7%

30% 4,9%

39% 5,1%

49% 5,2%

55% 7,7%

26% 11,7%

39% 2,9%

37% 8,3%

13% 61,0%

50% 5,8%

57% 5,2%

55% 6,7%

XX% X,X% XX,X

OCTOBER ‘12

Motivations for sharing

Source: “The Psycology of Sharing: Why do people share online?”, The New York Times’s Customer Insight Group

To grow and nourish our relationships

Self-fulfillment

To define ourselves to others

To get the word out about causes

or brands

To bring valuable and entertaining content to others

5 key motives for sharing

Most popular Facebook pages

Source: Page Data http://pagedata.appdata.com/pages/leaderboard

# fans # fans January 2013

Most popular Facebook apps

Source: App Data http://www.appdata.com/leaderboard/apps

January 2013

Tencent - QZone China’s largest social networking service(s)

~600 mill. users Part of Tencent Holdings, a

diversified Chinese Internet company which became popular thanks to QQ messenger.

Unlike Microsoft, Tencent was able to turn a messenger tool into a successful, real social networking website.

Tencent is the third (after Google and Amazon) largest Internet company in the World by Market capitalization (USD 42 bill.)

Revenues (2011): ~3 bill. /yr (less than 15% from advertising)

Twitter #1 Microblogging site

It is more a microblogging tool rather than a social networking site.

>500 mill. users Works better for 1-to-

many communication

Real activity in SNS. Facebook rules.

Source: comScore

Facebook world’s time share: •75% (SNS)

•14% (Internet)

Google Plus Latest SNS by the Google factory

>500 mill. Users (but moderate usage per user)

Great usability and systems. Great Circles and Hangouts

features. Deeply integrated with other

Google services However: there is already a

predominant social networking site and it is hard for people to spend time in changing to another social networking site. People tend to use one service, and is reluctant to change unless there is a huge difference between services, which is not the case.

Sina Weibo #1 social microblogging website in China

Launched in 2009 >370 mill. Users Huge engagement, 30th

website in the World by traffic (Alexa)

Celebrity accounts

Mixi #1 social networking website in Japan

~25 mill. Users 30% from mobile Revenues: mostly

advertisement

Gree The most profitable social company in Japan

Yoshikazu Tanaka

Founded in 2004 by Yoshikazu Tanaka Gaming Social Networking website, and

specially mobile. 98% users from mobile. Most of revenue coming from virtual

goods.

CyWorld #1 Social Networking website in South Korea

~20 mill. Users. Owned by SK main telecom company. Pioneers in virtual currency: Dotori. ~80% revenues from virtual goods. Failed to enter in the US and Europe.

What is a social graph?

Social graph: “the global mapping of everybody and how they're related” (Wikipedia)

Source: http://en.wikipedia.org/wiki/Social_graph , http://en.wikipedia.org/wiki/Sociogram

Sociograms: “graphic representation of social links that a person has” (Wikipedia)

A Facebook’s sociogram example

Source: Facebook Inc. Paul Butler

Sociogram by Networks (Top 250 friends)

Source: Touch Graph

Another Facebook example

Facebook API, Open graph

Source: https://developers.facebook.com/docs/opengraph/

• Facebook offers the ability to access to the user’s social graph if she gave access to us.

• Brands should understand the graph’s possibilities and should work out ways to build social way of promoting their brands.

• Examples:

• Spotify

• Netflix

• NYT

…and the first social graph

Social graph: “the global mapping of

everybody and how they're related”

(Wikipedia)

Web 2.0 is not only SNS: Social Media Ecosystem

Source: Luma Partners

Nobody owns the ecosystem

5 attitudes regarding the social media ecosystem

Ignore

Source: 11 Goals & Associates

Minimum presence (most brands)

Combat Copy

Complement [Hi-Tech]

[Content]

Pasive Reactive Proactive

In Social Media, the medium is the people

Audience

Social Ecosystem

• Message • Image • Video • Emotion • Poll • …

Real impact

Community Marketing/Management:

Audience knowledge:

•Experience

•Analytics (Tests)

Social Ecosystem knowledge

A powerful presence in SNS helps Obama to…

…without intermediaries, faster, and to a broader audience

Movilize

Defend

Strike

Inform

Know

Agenda

Tourism is social by nature

Web 2.0

Social media advertising

Community Marketing

Building an effective online community

Facebook ads format

o Picture o Text o Social

Create a Facebook Ad: Segmenting

o Facebook allows to find your target group based on demographics and interest.

o Example: 1,860 women liking Real Madrid C.F, engaged, living less than 50 miles from Madrid and speaking Spanish.

EXAMPLE

Create a Facebook Ad: Ad auction

o Similar auction system like Google’s, but one can choose CPM or CPC (in our notation PPI or PPC)

EXAMPLE

Contextual Vs Social Advertising

Focus on “Keywords”. Unknown user. Active user: He know what he wants because he is searching for it or mentioning it in his emails. “one time” user. PPI RECOMMENDED FOR: •“Direct response” from customers who have explicitly expressed a need (“Close the sale, message in the right moment, at the right time.”).

Focus on “Target Segment”. Known user: We know who he is and what he likes. Passive user. “continuously contacted/relationship” user. PPI/PPC RECOMEMNED FOR: •“Direct response” from customers who have NOT explicitly expressed a need (“Activate a subjacent need.”). •“First contact” with potential customers of slow-selling products (“Establish a productive relationship.”). •“Brand image” campaigns.

So far Google Ads have proven to be more profitable. Facebook

platform still fine-tuning.

Agenda

Tourism is social by nature

Web 2.0

Social media advertising

Community Marketing

Building an effective online community

World’s best brands according to Interbrand

Source: “Best Global Brands 2012”, Interbrand

World’s best brands according to me

Source: Me 61

Customers trust each other, not the brand!

Source: Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews, by Molecular Inc.

76% of American consumers believe companies don’t tell the truth in advertising -Yankelovich (2005) 60% have a much more negative opinion of marketing & advertising than a few years ago - Yankelovich (2004) 78% say consumer recommendations are the most credible form of advertising - Nielsen (2007) 83% say online evaluations and reviews influence their purchasing decisions - Opinion Research Corporation (2008) 84% trust user reviews more than critics’ reviews - MarketingSherpa (2007) Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers - Edelman Trust Barometer (2006, 2007)

What form of advertising do consumers trust?

Source: Nielsen, Global Trust in advertising and Brand Messages, Abril 2012

92%

70%

58%

58%

50%

47%

47%

47%

47%

46%

42%

41%

40%

40%

36%

36%

33%

33%

29%

Recommendations from people I know

Consumer opinions posted online

Editorial content such as newspaper articles

Branded Websites

Emails I signed up for

Ads on TV

Brand sponsorships

Ads in magazines

Billboards and other outdoor advertising

Ads in newspapers

Ads on radio

Ads before movies

TV program product placements

Ads served in search engine results

Online video ads

Ads on social networks

Online banner ads

Display ads on mobile devices

Text ads on mobile phones

“Recommendations from people I know” is, by far, the most trusted form of marketing

However, “Ads on social networks” not really trusted

28.000 Internet users in 56 countries

“Marketing is dead” Harvard Business Review – 9 Aug 2012

Source: http://blogs.hbr.org/cs/2012/08/marketing_is_dead.html

Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize they're operating within a dead paradigm. But they are. The evidence is clear.

Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of-mouth or customer reviews.

Actually, we already know in great detail what the new model of marketing will look like. It's already in place in a number of organizations. Here are its critical pieces: Restore community marketing Find your customer influencers Help them build social capital Get your customer advocates involved in the solution you provide.

Most read article in Aug 2012

Community Marketing used to be this…

Picture: http://es.wikipedia.org/wiki/Archivo:Ultramarinos-.jpg

3-SLIDE SUMMARY

…that in order to get scale was denaturalized by this… 3-SLIDE SUMMARY

…until this came along and allowed scale and direct contact simultaneously

3-SLIDE SUMMARY

Web 2.0 and Community Marketing in football

Source: OJD (2011), Alexa.com, Facebook Inc. Twitter Inc.

0FFLINE (CIRCULATION)

Marca: 244.456 /day Diario As: 198.758/day Real Madrid: ~0

WEB 1.0 (DAILY REACH %)

WEB 2.0 (FANS/FOLLOWERS)

Facebook/Twitter (mill.) Marca: 0,65/0,91 Diario As: 0,28/0,41 Real Madrid: 31,8/6,8

MD: 95.907 /day Sport: 91.753/day FC Barcelona: ~0

Facebook/Twitter (mill.) MD: 0,18/0,64 Sport: 0,23/0,22 FC Barcelona: 35,3/12,4

Web 2.0 allow football clubs –better than ever before- to be in touch directly with their fanbase

The value of Community Marketing

Real Madrid: estimated equivalent advertising value of its Facebook

page: EUR 30 mill./month (Apr 2011)

Source: IAB Spain, Ontwice, http://www.slideshare.net/IAB_Spain/liga-de-ftbol-profesional-en-redes-sociales

Agenda

Tourism is social by nature

Web 2.0

Social media advertising

Community Marketing

Building an effective online community

Do we need a [great] brand to create a [great] online community?

Failure

Online community

Brand

Success

Strong

Weak or non-existent

No

Common interest

Source: 11 Goals & Associates

Do we need brand’s leadership to create a great online community?

Source: PageData.com y AllFacebook.com

No

Facebook engagement ranking 14 Nov 2011

Facebook fans ranking 27 Nov 2011

Motivated leaders

From a person to the online community

People Community Online community

Common interest Online

•An online community is a group of people that interact and communicate online around a topic of interest. Internet allows those interactions to be real-time, effective, and free (as in free speech).

•Due to members being scattered around the world, most of those communities would not be possible if online means did not exist. Many of those communities go directly to being an online community without being previously an offline community.

•More and more communities are shifting online, with or without the brand’s leadership.

“Robust communities are built not on brand reputation but on a deep

understanding of members’ lives.”

The most important learning about managing [online] communities

Source: “Getting Brand Communities Right”, Harvard Business Review, April 2009.

Community segmentation

Soccer Club

Former visitors

Potential visitors

Tourist industry

Country citizens

@1

@2

Other gov entities

Employees

Country’s tourism board

ILLUSTRATIVE EXAMPLES

Source: 11 Goals & Associates

Football fans

Team Supporters

General public Interests?

Motivations? Roles?

Interests and role of each subgrup within the community

Subgroup Interests Rol

1 …

… …

2 …

… …

3 …

… …

… …

… …

Source: 11 Goals & Associates

Key question: Does it make sense as a system? How can the brand close any gap in the system?

Community member roles

Full description: http://www.fullcirc.com/community/memberroles.htm

•Core participants

•Readers/Lurkers

•Dominators

•Linkers, weavers and pollinators

•Flamers

•Actors and Characters

•Energy Creatures

•Defenders

•Needlers

•Newbies or NewBees

•PollyAnnas

•Spammers

• "Black and White" Folks

• "Shades of Grey" Folks

•Untouchable Elders

Figure out your community roles

EXAMPLE

Women rule on Social Networks Subtitle

Source: comScore, Inside Facebook

Some studies indicate that women are able to socialize better in social networks like

Facebook. Women are able to maintain more relationships

online, interact more, and when they share a content, it is on

average more popular than if the content was shared by a man.

Preferred by brands Most frequent type

Source: “Getting Brand Communities Right”, Harvard Business Review, Abril 2009, 11 Goals & Associates

Examples

Description

“Pools” “Web” “Hub”

• People have strong associations with a shared activity or goal, or shared values, and loose associations with one another.

• Apple enthusiasts. • Political party

members.

• People have strong one-to-one relationships with others who have similar or complementary needs.

• Cancer patients and relatives.

• Apple enthusiasts (too)

• People have strong connections to a central figure and weaker associations with one another.

• Oprah Winfrey. • Hannah Montana. • Apple enthusiasts (too)

RRSS

Three forms of Community Affiliation

Building up an coherent social media community

MARKETING SOCIAL & GENERAL

SERVICES FOR COMMUNITY MANAGEMENT

ORGANIZATION INTERNAL & EXTERNAL

STRATEGY ONLINE & SOCIAL MEDIA

ANALYTICS (SOCIAL BALANCED SCORECARD)

COMMUNITY ENGINEERING SOCIAL MKT

Source: 11 Goals & Associates

• The “community engineering” stages are key to build a truly brand community on social networks and to achieve a high level of social capital.

• Without a good community engineering (and social capital) campaigns simply do not work. • Currently most brands think of social media as another ad place, and get easily disappointed

because they did not work enough the community before beginning to extract value from it.

How is Social Media organized in your company?

Source: Altimeter Group

Myths and realities about managing communities

Source: “Getting Brand Communities Right”, Harvard Business Review, April 2009.

1. A brand community is a marketing Strategy.

2. A brand community exists to serve the business.

3. Build the brand, and the community will follow

4. Brand communities should be lovefests for faithful brand advocates.

5. Opinion leaders build strong communities.

6. Online social networks are the key to a community strategy.

7. Successful brand communities are tightly managed and controlled.

Myth

1. A brand community is a business strategy.

2. A brand community exists to serve the people in it.

3. Engineer the community, and the brand will be strong.

4. Smart companies embrace the conflicts that make communities thrive.

5. Communities are strongest when everyone plays a role.

6. Online networks are just one tool, not a community strategy.

7. Of and by the people, communities defy managerial control.

Reality

SUMMARY

• ….

• …..

• ….

• ….

• ….

• ….

• ….

• ….

• ….

SHORT TERM

MEDIUM TERM

LONG TERM

Priorities when developing the community

More Fans More

Engagement

Revenues + keep fans and

engagement

Source: 11 Goals & Associates

Today’s main takeaways

¶ Tourism is a social activity by nature. Social media just changed the way that is expressed.

¶ Online Social Tourism sometimes happens through highly complex processes that involve several tech services.

¶ Internet de-socialized some human activities. But now Social Technologies are re-socializing them. It is a general trend observed in many human activities.

¶ When a new technology is introduced, it always takes years to discover models and formats to extract value from it. Innovation is frequently slow, and so it is the adoption of Social Technologies by companies.

¶ Web 2.0 is all about people participating in projects, contents, etc.

¶ Web 2.0 is a sound reality. No doubt about that. Hope you are not still thinking whether it makes sense or not!

¶ The huge importance of social media is due to the fact that SNS were able to translate online (and make it more efficient and powerful) one of the World’s most important human activities: socializing; managing and using our circle of trust.

¶ Facebook is Worldwide leader in usage and technology. The World is still leaning towards Facebook in many countries where it is not yet the leading SNS. Only China and Russia seem to stay away from Facebook’s rule, the second one due to its blocking.

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Today’s main takeaways

¶ Web 2.0 is not only Social Networking websites. There are other categories like social blogging, microblogging, video, gaming, etc.

¶ In our opinion, the existence of an Social Graph that resembles a person’s real social life is what distinguishes an actual SNS from a Social Medium.

¶ There are also a ton of complementary services to SNS and other Web 2.0 tools. We call it the “Social Media Ecosystem”.

¶ It is interesting to observe and understand the 5 attitudes companies generally adopt regarding the Social Media Ecosystem. The best attitude is “to Complement it”, but few companies are mature enough to understand that. However bad experiences are helping a lot to let them understand.

¶ In Social Media, the medium is the people. Interesting little fact to have top of our minds…

¶ Social media advertising is intrinsically different from other type of ads like contextual advertising. They complement each other rather than compete. They should be used for different goals.

¶ People trust in people more than in brands. In the last years even more due to the never-ending roll of corporate scandals and the crisis.

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Today’s main takeaways

¶ Some Marketers (even “traditional” ones) believe that “Marketing is dead”, at least in its current form. They believe brands should turn their eyes into the “Community Marketing”

¶ “Community Marketing” is actually the oldest form of marketing. However brands had to leave it because of scale.

¶ Social technologies have proven useful for brands with the mission of applying “Community Marketing” while keeping their size. E.g.: Football clubs.

¶ Building an effective online brand community is an important business tool for many companies. However it is a very difficult one to achieve because it is a long term goal and the final impact in the P&L account is not easily measured.

¶ It is a frequent mistake to believe that having a good brand makes it easier to have a good online community.

¶ In order to build your own successful online community it is important to understand in depth your underlying community: how your members affiliate, what are their key roles within the community, how do they benefit from being a member, etc.

¶ Online communities take time: first hire fans, then engage them (almost immediately after hiring them), and finally try to monetize them in the least possible frictional way.

Page 3 of 3

Thanks

Francisco Hernández francisco_hernandez@11goals.com

www.11goals.com