Thomas N. Burghttp://socialware.at | Consulting

Listen & Connect

BlogTalk Asia, Jeju 2009

Opinion creation on the Web

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© http://www.benckenstein.com/social-media/interruption-vs-engagement-marketing/

Persuasionto

Influence

If value creation is increasing the proportion of consumers who have brand awareness, positive brand attitudes, and intent to purchase, then we hypothesize that the process of value creation in SN is different than value creation in traditional forms of Advertising. To be clear, let’s illustrate how value creation is calculated in traditional Marketing.

The traditional Marketing model has a rather linear value creation process. Advertising is delivered from the business to consumer (B2C), and a certain proportion of consumers are infl uenced by the message in a way that creates value (most commonly measured as an increase in awareness, positive brand attributes and purchase intent). By increasing these metrics, Sales also increase.

Value Creation Models

Old Model – B2C Value Creation

Diagram: B2C Value Creation

Business Advertising Population Reached (with a proportion infl uenced)

This communication model allows a marketer to count how many people will receive the message, and measure the number of people infl uenced (the value created).

41!"Never Ending Friending Research Summary, April 2007

ClassicCommunication

Diagram: C2C Value Creation & the Momentum Effect

If the message doesn’t stop once communicated to consumer (as in “the momentum effect”), it means we need a new model for measuring value creation that adds in the consumer to consumer component.

B2C + C2C = Value Creation

The momentum effect: The activation of consumers to tell their own personal stories using your brand as the reference point. The momentum effect accounts for over half of the value of social network marketing.

Pass alongcontent

Don’t visit brand custom community, but positively infl uenced.Some pass along to others.

Infl uenced to visit brand community. Some pass along to others.

Impact repeats as pass along continues

The B2C value creation remains a legitimate part of Marketing. SN complements and extends the impact further than traditional marketing could go by activating C2C activities.

In addition to the new model of “B2C + C2C = value creation,” SN becomes part of the product experience, and the value of SN extends to increases in advocacy and loyalty.

Before we discuss the research to empirically test these hypotheses, let’s take a look at the campaigns we measured.

43!"Never Ending Friending Research Summary, April 2007

Each interaction is an impression

B2C2C=MomentumEffect

Image: http://15530.openphoto.net

SocialMedia

B2C->[2C]

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Communicate

Lead

Network

Innovate

Image: http://15530.openphoto.net

Whereto

begin?

CustomerServiceis

theNewPRSteve Rubel, SVP Edelman

Readytotalk

GenerationC

AgeActivity

✴Community

✴Connectedness

✴Collaboration

✴Creativity

Stretching across hours & needsSocial networking medium enriches “real” lifeMore fun. Less boredom. Across emotional attributes and value statements, social networking users consistently report that life with their favorite community is simply better than life without. Three-fourths of respondents reported they’re “never bored” on social networks. Roughly half said their social networking

experiences have helped them have more fun, made life more interesting, or simply added fun to real life. An interesting note: Four out of ten users reported discovering brands and products they “really like” within the realm of social networking.

How much do you agree with each of these statements?Base: SN users age 14-40 (n=2,605), Top 2 box scores (3 point scale 1=do not agree at all, 3=completely agree)

15!"Never Ending Friending Research Summary, April 2007

73% 66%56% 48% 47% 46%45% 40%

— There are just so many things to do on this site...

— The site adds fun to going out...

— With SN, I’ve been having more fun in life in general...

— With SN, I’ve been more plugged into the music scene...

— With SN, I’ve felt more on top of trends and what’s new...

— It makes my life more exciting...

— With SN, I’ve discovered brands and products that I really like...

— I am never bored when using it...

Brands&ProductsSource: Never Ending Friending, 2007

Fox Interactive Media

“Having Puma as a friend is pretty cool. You get some online sales or whatever since they’re kind of expensive. You can see what kind of shoes they have.” — Claire, 18, Chicago

“I don’t want companies to advertise to me. I want them to be my friend.” — Rob, 27, Los Angeles

“Having a brand like Gibson or Nike as a friend would be cool.It’s an allegiance kind of thing.” — Matthew, 25, Chicago

“Show me when the sales are, what your selling, pictures of what you’re selling, pictures of what’s going on. Those would be the most important things, the sales and what you’re selling.” — Cory, 17, Chicago

Commissioned by MySpace, Isobar & Carat — 22

Making meaningful brand connectionsFriending is the next advertisingIn the emerging “Friendonomics” of social networks, users are making meaningful connections with the groups, bands, brands and clubs that create a two-way street of value. As one respondent observed, “Friends don’t waste your time. But they do tell you

stuff you need to know.” Across markets, social networking users consistently expressed their desire for brands and organizations to treat them less like customers…and more like friends.

Friendonomics

It’s going to be fast-paced, bit-sized, and is shifting from broadcast concepts to bi- or even mulitdirectional usage patterns

Future

Conversations

Nokia Report, A Glimpse of the Next Episode, 2008

25% of entertainment (or content) will be created and consumed within peer communites.

WhatdoI

tell

companies?

PREPARECompanies are predicted to spend more on “conversational media” (as word of mouth is sometimes called) than on traditional media by 2012.

Even if it takes a decade longer than that, now is the time to start planning for the changing landscape.

Foundations aren’t built overnight.Dave Balter, WOM Manual 2008

BePartofIt

15 percent of our daily conversations have some product- or service-related content.

Dave Balter, WOM Manual 2008

not what social media communities can do for your brand — but what your brand can do for social media communities? Advertisers need to start with this question and work backward to marketing goals. Providing value to social media communities will be the new cost to distribute marketing messages in the social media OS. , Joe Marchesehttp://blogs.mediapost.com/spin/?p=1049

Clients

OpinionLeader

Peers

Taskforcommunicationpros

Find

Listen

InteractCreatevalue

Measure

How?

Equallevel

Don'tsellExperiment

GiveupControl

Rules

감사합니다Socialware Consulting

Thomas N. Burgtwitter.com/thobu