Will social media boom in a bust economy?
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17-Oct-2014 -
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With marketing budgets being slashed and remaining funds shifting online, how can businesses make the most of social media?
Transcript of Will social media boom in a bust economy?
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 "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’ "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.
• Blogging
• Micro-blogging
• Social networks
• Video sharing
• Photo sharing
• Chat Rooms
• Podcasts
• Virtual worlds
• Wikis
• Applications
So what is social media?
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 Southwest
o Dell
o Zappos
o Little Debbie
o Hertz
o Ford
o GM
o Honda
o Comcast
o H&R Block
o Home Depot
o Whole Foods
o Dunkin Donuts
o Kodak
o Red Cross
o Rubbermaid
o Nationwide
In December 2008, "Dell estimated it had made "$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: o Something totally new o Lots of money and time o Lots of guts o Lots of luck o A strong distribution plan
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 "social media for companies?
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
Consultants?
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
PR 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
Buzz agencies?
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
Internal PR staff?
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
Ad agencies?
There’s no right answer, except to find a partner you trust.
And then get out there and do some incredible things.
