Social media and marketing: Is the honeymoon over?

social mediaIt’s no secret that companies large and small have been putting significant energy into social media marketing and networking in recent years.

It’s happened for a variety of reasons – not least as a defensive strategy to keep from losing out over competitors who might be quicker to adopt social media strategies and leverage them for their business.

And yet …

Now that the businesses have a good half-decade of social media marketing under their belt, it’s pretty safe to say that social tactics aren’t very meaningful sales drivers.

That’s not just me talking.  It’s also Forrester Research, which as far back as 2011 and 2012 concluded this after analyzing the primary sales drivers for e-commerce.  Forrester found that less than 1% was driven by social media.

And in subsequent years, it’s gotten no better.

A case in point:  IBM Smarter Commerce, which tracks sales generated by 500 leading retail sites, has reported that Facebook, LinkedIn, YouTube and Twitter combined represent less than 0.5% of the sales generated on Black Friday in the United States.

Those dismal results aren’t to say that social media doesn’t have its benefits.  Generating “buzz” and building social influence certainly have their place and value.

But considering what some businesses have put into social media in terms of their MarComm resources, a channel that contributes less than 1% of sales revenues seems like a pretty paltry result – and very likely a negative ROI, too.

Going forward, it would seem that more companies should pursue social media marketing less out of a fear of losing out to competitors, and more based on whether it proves itself as an effective marketing tactic for them.

Consider the points listed below.  They’ve been true all along, but they’re becoming even more apparent with the passage of time:

1.  Buying “likes” isn’t worth much beyond the most basic tactical “bragging rights” aspects, because “likes” have little intrinsic value and can’t be tied directly to an increased revenue stream.

2.  A great social media presence doesn’t trump having good products and service; even dynamite social media can’t camouflage shortcomings of this kind for long.

3.  Audiences tend to “discount” the value of content that comes directly from a company.  This means publishing compelling content that clears that hurdle requires more skill and expertise than many companies have been willing to allocate to social media content creation.

Calibrating the way they look at social media is the first step companies can take to establish the correct balance between social media marketing activities and expected results.  Instead of treating social media as the connection with customers, view it as a tool to connect with customers.

It’s really just a new link in the same chain of engagement that successful companies have forged with their customers for decades.  In working with my clients, I’ve seen this scenario play out the same basic way time and again; it matters very little what type of business or markets they serve.

What about you?  Have your social media experiences been similar to this — or different?  I welcome hearing your perspectives.

The world of social media: Facebook here, there and everywhere.

If you think that Facebook has a hammerlock on social media across the world … you’re not off by much.

Facebook NetworkSocial media strategist Vincenzo Cosenza publishes a periodic world map of social networks in which he identifies the social networks that are the most popular in each of the 137 countries he tracks.

His evaluation is facilitated by a combination of website tracking data as aggregated by Alexa and other similar tools.

In viewing how the social media map has changed over time, what we see is that “Facebook blue” now dominates to such a major extent that the world map is looking more and more like a map of the British Empire – with the Spanish and Portuguese Empires thrown in for good measure.

In fact, according to Cosenza’s latest map, Facebook is the dominant social network in no fewer than 130 of the 137 countries being tracked.

That’s ~95% of them.

Not surprisingly considering their large populations, Facebook boasts the most members in the United States, followed by Brazil and then India.  (Brazil overtook India in the rankings in 2012.)

Each year, a few new counties are added to the Facebook column.  Sometimes the shifts are small (Moldova and Latvia are the latest), but this comparison between 2009 and 2014 maps certainly shows the overall trend towards Facebook, including such high-population countries as India, Brazil, Mexico and the Philippines:

 

global map of social media networks

Of course, a few of the non-Facebook countries are home to a big chunk of the world’s population:

  • China is dominated by QZone
  • VKontakte is the social platform of choice in Russia
  • Iran remains closed to Facebook or any other Western social media, although long-dominant Cloob has been replaced by Facenama as the largest social network there.

As for which social networks are vying for the #2 position after Facebook – in most cases, it’s LinkedIn, Badoo and Twitter.

But when it comes to true competition, it’s really just Facebook and then … all the rest.

Online user reviews: People trust their own motives for posting … but not others’.

user reviewsOne of the most important uses of the web today is for people to seek out user reviews of products and services before they buy.

Research shows that people place a high value on these user reviews, and they are more likely to influence purchase decisions than brand advertising and other forms of promotion.

The famous 90-9-1 rule — of every 100 people, 1 creates content, 9 respond to created content and 90 simply are just lurkers — may no longer be accurate.  But even if the rule still holds, that still means quite a few people are engaging in the practice of posting customer reviews and comments.

For most people who post reviews, their reasons for doing so are positive, if the results from a recent YouGov survey of U.S. consumers are any guide.  The research was conducted in November 2014 among American respondents age 18 or older.

When asked why they post consumer reviews online, the survey respondents cited the following reasons:

  • To help other people make better purchase decisions: ~62% cited as a reason why they post
  • It’s polite to leave feedback: ~35% of respondents cited
  • It’s a way to share a positive experience: ~27%
  • To make sure good vendors get more business: ~25%
  • To warn others about a bad experience: ~13%
  • To expose bad vendors: ~12%

Interestingly, the older the age of reviewers, the more likely it is that they upload reviews for the reasons listed above:  Respondents age 55 or older cited all but one of the six reasons in greater percentages than the average for all age groups.

What about the flip side of the equation?  Do those who post feel that others are posting reviews for the same reason?

thumbs up and downThat’s where the picture gets a bit murkier.  It appears that those who post do so for positive reasons … but they don’t necessarily think others are posting for similarly positive purposes.

In fact, about two-thirds of the survey respondents felt that some reviews are written by people who haven’t actually purchased the product or service.

A large portion — 80% — think that businesses write positive online review about themselves.

And nearly 70% believe that businesses post negative feedback about competitors’ products.

So it’s interesting:  People see themselves participating in online ratings and reviews for the right reasons, yet they suspect that other posters may not be playing fairly — or maybe even gaming the system.

It’s an indication that while user reviews are welcomed in practice, there are also nagging doubts about the veracity of what people are reading.

Still, surveys find that many consumers cast those doubts to the side, and continue to read user reviews and be influenced by them.

B-to-B Buyers: Who’s Engaging with What Content?

Different Types of ContentIn my work with manufacturing companies and other B-to-B firms, I’m often asked what type of informational content is the most worthwhile and valuable from a marketing standpoint and for attracting and converting customers.

The question is relevant for most companies because there are limits on marketing resources (both time and dollars), while the methods companies can use to communicate with their target audiences are far more extensive and varied than they were in the not-too-distant past.

The answer to the question about the best information content is always one of “degree” … because the most valuable piece of content for any single prospect or customer is the one that sparks him or her to buy.

And that one piece of critical content could be one of many things.

Helpfully, we now have a new survey that can help with a bit more quantification.  The research, which was conducted by content marketing firm Eccolo Media, surveyed technical buyers (engineers, managers and directors).

It’s a relatively small sample (fewer than 200 respondents), but the directional results are worth consideration.  I also think that the results can be applied to other B-to-B buyer types as well.

One finding that came as a bit of a surprise to me was that most buyers read just two to five pieces of content before making their decisions.

What kind of content do they consult most often?  Here’s what these respondents reported:

  • Product brochures and data sheets: ~57% consult this type of content
  • E-mail communiqués: ~52% consult
  • White papers: ~52%
  • Competitive vendor worksheets: ~42%
  • Case studies/success stories: ~42%
  • Technical guides: ~35%
  • Custom magazines/publications: ~35%
  • Video content: ~35%
  • Social media content: ~34%
  • Webinars: ~34% 

As for which of these types of content are considered the most worthwhile and influential to buyers, the ranking is somewhat different:

  • Product brochures and data sheets: ~39% rate as highly influential content (top five resources)
  • White papers: ~33%
  • Case studies/success stories: ~31%
  • Technical guides: ~23%
  • Competitive vendor worksheets: ~22%
  • Videos:  ~17%
  • E-mail communiqués: ~15% 
  • Social media content:  ~14%
  • Custom magazines/publications:  ~14%

The Eccolo Media report draws this conclusion from its research:

“Marketers have been good at producing large volumes of content, but not quality content and not the right type of content … The more content we produce, the more likely it is to fail.”

One thing the research clearlyshows is that companies need to spend more effort in collecting and publishing customer case examples and success stories, because those appear to have a disproportionately higher degree of influence over potential buyers — if only they are available to consult.

More broadly, the types of content that are of greater value to buyers tend to be the ones that require more time and effort to prepare.  The adage that “success is 20% inspiration and 80% perspiration” appears to apply to marketing content development as well.

More summary findings from Eccolo Media’s 2015 B2B Technology Content Survey Report can be accessed here.

What are your thoughts as to the relative merits of different types of content?  Whether you’re a B-to-B marketer or a B-to-B buyer, please share your thoughts with other readers here.

The 2015 Marketing Buzz-Meter Kicks into Gear

We’re only a few weeks into 2015, and already the marketing buzz-meter is operating at full force.

amplificationThe latest marketing buzz phrases are always interesting because, while they surely relate to trends and tactics that are taking on greater importance, they can also be short-hand references that “everyone” uses but “no one” really understands.

Consider one popular buzz-phrase example from 2014:  “Big Data.”

I don’t think I’ve heard the same definition of what “big data” is from any two people.  Yet it’s a term that was bandied about throughout the entire year.

No doubt, “big data” will continue to be a popular buzz phrase in 2015 as well.  But you can be sure it’ll be joined by a number of others.  As Natasha Smith, editor of Direct Marketing News magazine reports, get ready to hear many of mentions of these buzz terms as well this year:

Dark Social:

This references online content, information or traffic that’s hard to measure because it occurs in messaging apps, chat and e-mail communications.  Purportedly first coined by Atlantic magazine, it’s a term whose very name conjures up all sorts of mysterious and vaguely sinister connotations about behaviors that are at work below the surface – thereby making it an irresistible phrase for some people to use.

Viewability:

This term is becoming increasingly popular due to people’s concerns that much of what makes up “viewed” online content turns out to be hardly that.  For instance, there’s a difference between a simple video impression (merely an open) and a “viewable” one (opened and staying open for at least a few seconds).

More than likely, over the coming year the Interactive Advertising Bureau and other “great experts” will be debating over what actually constitutes a “viewable” impression.  All the while, you can be sure that marketers will be referencing the term with abandon.

Attention Metrics:

Dovetailing “viewability” is the idea that traditional online marketing metrics such as unique visitors, clickthroughs, and page views are too shallow in that they don’t really measure the true consumption of content.

Enter the buzz term “attention metrics.”  No doubt, marketers will be all over this one in 2015 as they focus more on the time and attention people are spending with content, not merely the fact that some form of engagement happened.

The Internet of Things:

This term started appearing on the radar screen in 2014 but is really coming into its own now.  It even has its own Wikipedia page entry.  While the commercialization of data-collecting devices such as wearable sensors and sensors embedded in appliances and other electronics is an undeniably significant development, this term has to be one of the most pretentious-sounding phrases ever coined.

… Which makes it an irresistible entry in the buzz-meter lexicon, of course.

Conscious Capitalism:

Rounding out the 2015 list – at least for now – is a buzz phrase that captures the essence of what every socially aware marketer wishes his or her company to be.  “Conscious capitalism” refers to companies and brands that are purportedly socially responsible and “in sync” with the needs of the community and the world.

This is considered important because so much survey research shows that people respond positively to companies that “do well by doing good.”

what's all the buzz aboutExpect many people to embrace this approach – and the accompanying buzz phrase – because it sounds so perfect.

[Never mind that things often come crashing down to earth if and when consumers are asked to pay more for the “socially responsible” products and services, or to make unpleasant or unexpected adjustments to their routine in the event.]

Do you have any other examples of marketing buzz terms that you think are poised for stardom (or notoriety) in 2015?  Please share your thoughts with other readers here.

It’s Official: Cyber Monday 2014 was the Biggest e-Commerce Day in U.S. History

Cyber Monday ShoppingIn the days following Black Friday this year, we heard reports that consumer purchase volumes at stores were down more than 10% compared to 2013.

A number of explanations for the decline were given, among them the notion that Black Friday sales are less of a draw this year, since merchandise sales now begin before Thanksgiving and tend to run the entire month of December.

But some observers speculated as to whether soft Black Friday revenue figures presage an equally soft holiday shopping season overall.

Well … now that we have sales figures from Cyber Monday (the Monday following Black Friday weekend), I think it’s safe to say that any concerns about a tepid holiday buying season are unfounded.

Custora E-Commerce Pulse, a customer relationship management firm which tracked more than 100 million online shoppers and over $40 billion in e-commerce revenue over the full Thanksgiving Holiday weekend, has just reported that Cyber Monday e-commerce revenues were up over 15% compared with Cyber Monday 2013.

That makes Cyber Monday 2014 the single biggest day in U.S. online shopping ever in history.

Other days of the Thanksgiving weekend also showed robust gains in online shopping:  Black Friday online sales were up ~21% over 2013, and online shopping on Thanksgiving Day itself were up nearly 18% over Thanksgiving Day in 2013.

The strong growth was fueled by mobile shopping, e-mail marketing, plus online product searches on Google and other search engines.

In particular, mobile shopping accounted for ~22% of orders on Cyber Monday, significantly higher than the ~16% of orders recorded last year.

On Black Friday itself, mobile shopping accounted for around 30% of all orders — yet another dramatic increase over 2013 when mobile shopping account for just shy of 23% of orders.

This year’s Cyber Monday stats put the lie to the notion that e-mail marketing is losing its luster.  In fact, e-mail marketing drove nearly one in four online shopping orders, outstripping natural search (at ~19% of all orders) and paid search (~16% of orders).

Much ado about (practically) nothing: Social media and Cyber Monday.
Much ado about (practically) nothing: Social media and Cyber Monday.

And guess which channels weren’t a meaningful part of the holiday shopping experience this year?

If you guessed social media … you’re absolutely correct.

Taken together, Facebook, Twitter, Pinterest and Instagram accounted for only about 1.5% of online e-commerce orders on Cyber Monday.  (For the weekend as a whole, it was only slightly better at ~1.7%.)

This year’s statistics just add more confirmation of several truisms about online consumer marketing:

  • Targeted e-mail still works the best.
  • Online search is important.
  • Social media is like Lucy and the football.

A Bombshell Forrester Finding? Brands are Wasting Time and Money on Facebook and Twitter

Forrester logo

This past week, marketing research firm Forrester published a new analytical report titled “Social Relationship Strategies that Work.”

The bottom-line conclusion of this report is that brand marketers are generally wasting their time and money focusing on social platforms that don’t provide either the extensive reach or the proper context for valuable interactions with customers and prospects.

In particular, Forrester’s research has determined that Facebook and Twitter posts from top brands are reaching only about 2% of their followers.

Engagement is far worse than even that:  A miniscule 0.07% of followers are actually interacting with those posts.

Much has been made of Facebook’s recent decision to reduce free-traffic posts on newsfeeds in favor of promoted (paid) posts.  But Forrester’s figures suggest that the lack of engagement on social platforms is about far more than just the reduction in non-promoted posts.

Nate Elliott Forrester
Nate Elliott

Nate Elliott, a Forrester vice president and principal analyst, believes that brand managers need to make major changes in how they’re going about marketing in the social sphere.  He notes:

“It’s clear that Facebook and Twitter don’t offer the relationships that marketing leaders crave.  Yet most brands still use these sites as the centerpiece of their social efforts, thereby wasting significant financial, technological and human resources on social networks that don’t deliver value.”

With Twitter and Facebook being such spectacular duds when it comes to social platforms, what does Forrester recommend that brand marketers do instead?

One option is to develop proprietary “branded communities” where fans can hang out in zones where brands can be their own traffic cops, instead of relying on a giant social platform to do the work (or not do the work) for them.

e-mailEven better is to return to greater reliance on an old standby tactic: e-mail marketing.

If this seems like “back to the future,” Forrester’s Elliott reminds us how e-mail can work quite elegantly as the centerpiece of a brand’s social marketing effort:

“Your e-mails get delivered more than 90% of the time, while your Facebook posts get delivered 2% of the time — and no one’s looking over your shoulder telling you what you can and can’t say in your e-mails.  If you have to choose between adding a subscriber to your e-mail list and gaining a new Facebook fan, go for e-mail every time.”

I can’t say that I disagree with Nate Elliott’s position.

Now it’s time to hear from the rest of you marketing professionals.  How successful have you been in building engagement on social platforms like Twitter, Facebook and LinkedIn?  Have your efforts in social paid off as well as in your e-mail marketing initiatives?  Let us know.

America’s Smallest Businesses Get Hands-On with Digital Marketing

DIYAs more MarComm activities increasingly migrate to the web and to social media platforms, small businesses are increasingly taking a DIY approach in their marketing programs.

That’s the major takeaway from a survey of nearly 2,600 small business owners conducted by Insight By Design for Webs, a subsidiary of Vistaprint.

For purposes of the study, small businesses were defined as those having 10 or fewer employees.  The results of the field survey, which was conducted in the spring of 2014, were published in Vistaprint’s 2014 Digital Usage Study.

vistaprint-logoTwo-thirds of the small business respondents reported that they are actively using digital products to market their businesses.  Of those who have websites for their business, nearly 60% of them created their own websites using DIY tools.

An even larger proportion — 80% — act as their own webmasters.

Small businesses consider customer acquisition and generating new customer leads as the most important reasons for maintaining a web presence.

In the social media realm, Facebook is the most popular platform for promoting small businesses — so said nearly 90% of the survey respondents who are active in social media marketing.

Facebook is viewed as not only a vehicle for building brand awareness and acquiring new customers, but also for building a network of followers and engaging with them over time.

The survey’s respondents reported that all of the other major social platforms lag far behind Facebook in importance:

  • Facebook: ~88% consider it to be a highly important social media channel for their business
  • LinkedIn: ~39%
  • Twitter: ~31%
  • Google+: ~22%
  • Pinterest: ~20%
  • YouTube: ~17%

In line with its perceived importance as a marketing channel, about two-thirds of businesses that have Facebook business profiles are also engaged with paid advertising campaigns on the social platform — or are considering doing so.

No question, small businesses have concluded that social media marketing is the best way for them to create brand awareness and expand their reach in a very low-cost yet effective manner.  So don’t look for any slowdown in the adoption of social strategies going forward.

Tom Goodwin Sounds Off: Five Big Myths about Advertising Today

Tom Goodwin
Tom Goodwin

It’s so common to hear weighty pronouncements about the changing world of advertising and how the ground is shifting under the discipline.

It seems that we get one of these “new horizons” commentaries about every other week or so.

That’s why it’s refreshing to hear a few countervailing voices among the breathless babble. These are the voices of reason that move past the hyperbole and provide some sober grounding.

One such person is former advertising industry exec Jeremy Bullmore. His recent commentary on the “big data” craze is a good case in point — and well-worth reading.

Another industry specialist whose comments are always worth noting is Tom Goodwin, head of Tomorrow Innovation, a digital marketing consultancy. He’s identified five big myths about today’s advertising environment which need “calling out,” as he puts it.

What are Goodwin’s myths? They’re shown below, along with Goodwin’s “quasi-contrarian” views about them.

“TV is dead.

Nope. More people are watching television than ever before — and that’s looking at just the mature USA and UK markets.  Goodwin contends that TV advertising has never been more valuable — and most commercials are viewed rather than skipped over.  But they’re viewed on many kinds of devices, of course.

Goodwin’s take: “TV is here to stay … [but] the notion of ‘television’ generates false boundaries to what’s possible with video advertising when [people] consume video in so many new ways.”

“Consumers want conversations with brands.” 

Ignore ButtonNo they don’t, Goodwin contends: “The conversations I most often see are those of disgruntled customers, given the microphone to complain that Twitter provides. It strikes me overwhelmingly, with remarkably few exceptions, that for most brands, people want an outcome or resolution or perhaps information — and not a conversation.”

“Brands must create good content.” 

Goodwin acknowledges that content delivered by brands needs to be inherently valuable. But it’s more complicated than just that:  “Branded content is not meritocratic — you can’t say any one piece of content is ‘better’ than another. Perhaps the best real test of content is when it’s served, how, and who it reaches and the value it provides.”

“Advertising is about storytelling.”

Goodwin contends that advertising people are buying their own hype with this whopper. “Let’s not delude ourselves that advertising is not about selling stuff,” he emphasizes.

“Advertising dollars should correlate with consumers’ time spent with media.”

Goodwin claims that advertising industry players feel a compulsion to “be where the people are,” under the assumption that people will engage with advertising in similar ways whether they’re online or offline, on a mobile device or a desktop, and so on.

Because of this thinking, media spend projections looking into the future “bear no resemblance” to what’s working or not working — or how it’s even possible to spend that much money advertising in the channels like mobile.

How have these myths of Goodwin’s taken hold in the first place? Is it because talking about them seems so much more interesting and important than contending that advertising is continuing on a more familiar trajectory?

Goodwin thinks this may be part of it. Certainly, he acknowledges that times are changing dramatically in advertising — as they have been for some time.  But he makes a plea for more wisdom and nuance:

“While nobody gets famous (or a promotion) saying things are complex or largely unchanged … it’s closer to the truth.”

Personally, having spent a quarter century years in the marketing communications field, I feel that Tom Goodwin has raised some very interesting and valid points.

Where do you come down on them?  Do you agree or disagree with the five “myths” Goodwin has identified in modern advertising?  Leave a comment and share your thoughts for the benefit of other readers.

Does Social Media Buzz Actually Win Elections?

social media politicsWes Green, one of the faithful readers of the Nones Notes Blog, posed a question as part of a comment on my recent post about the disconnect Gallup has observed between social media marketing promise and reality.

Wes’ question asked to what degree social media activity actually decides U.S. elections.

In other words, is social media “buzz” enabling campaigns to win elections that would have been won by a different candidate otherwise?

If you look at the sheer volume of YouTube posts, Facebook pages and sharing of breaking news on Twitter that’s being pushed out there by political campaigns, surely they must think that these social platforms are having an impact.

But what about a more scientific look into it?  I searched around for answers and found one such analysis.

Shortly before NM Incite, a social media intelligence joint venture of Nielsen and McKinsey, was shut down in 2013, it had looked at precisely these dynamics through the prism of the U.S. federal election campaigns of 2010 and 2012.

Here are two important pieces of data NM Incite uncovered:

  • Observation #1: In three out of four election campaigns, the candidate who was the most frequently mentioned on social media was the one who ultimately won the election.
  • Observation #2: The share of online “buzz” for each winning candidate was higher than the share of votes the winner actually won.

These two observations raise the next question: Is there a “causal” relation between social media presence and positive results on election night?  These findings don’t tell us that.

Instead, it may be that winning candidates are doing a better job at more than merely social media to win their races.  Their campaigns are just better organized and more adept at hitting on all cylinders.

Here’s one other finding from NM Incite’s evaluation that suggests that social may be an ornamentation and not the tree:  States with higher levels of voter turnout tend to be the ones with lower levels of online buzz about their candidates.

So there’s little evidence to suggest that social media buzz is generating higher voter participation.

I’d say we need more research on this topic. It’s a rapidly changing environment, no doubt.  An analysis that dates back to 2010 and 2012 is like a lifetime in online political campaigning.  Has anyone come across any newer research?