Facebook starts Sponsored Stories – New ad model

Facebook starts a new advertising format that focuses on the “check-ins” and “likes” of Facebook users, and thus their friends. The new commercial product uses the traditional business or product recommendations that can be seen in other ad formats of the company.

Facebook calls the new advertising model Sponsored Stories (watch the descriptive video). It gives marketers the option to identify activities that members to target those peoples’ friends. The Facebook News Feed becomes the driver of the acitivity. Companies and brands can feature these activities via check-ins, custom applications and page posts (i.e. discount offers) in a column on the right members’ friends.

Sponsored Stories highlight the actions of friends while giving advertisers no control over messages. So, it is not a straight forward promotion but all advertising may be considered by viewers as company or product recommendations. However, it is not the companies that know where the advertsing goes but the users with their activities.

Compared to Twitter and their Promoted Tweets this is a new approach. Promoted Tweets focusses specific tweets tied to keywords which gives advertisers full control over their commercial messages. Facebook Sponsored Stories are following a bidding system. Slots are on a per-impression and per-click basis.

Spot On!
In my eyes, this is aclever approach to use the activities of Facebook users to generate revenue. The only question stays if the users want to have their face and name used for commercial formats of this kind. What if a user doens’t want to be “used” for commercial purposes of brands? It suggest that users need to have the option to turn this commercial feature off. And I can imagine that some will be saying “And where is my rev share?”

What comes up to your mind when you think about it? Join the conversation…

Study – Listening to Social Media? Brands: Not really…!

Sometimes the marketing scenary sounds unreal and bizarr… and still so realistic. Marketing budgets for Social Media and digital marketing increase but marketers admit that they don’t really listen to the conversations, and 70% don’t even have a deeper understanding of what is happening around their brands on the social web. This is the outcome of the latest study by Alterian called “How Engaged Is Your Brand?”. The survey asked 1,500 marketers, agencies, marketing services providers (MSP), and systems integrators (SI) between October to December 2010.

The study reports that 75% of marketers expect their Social Media and digital marketing budgets to grow. However, almost one-third of the responding marketers (31.4%) state that they have little or no understanding about social media conversations around their brands. Interestingly enough most of the marketers don’t even track and measure Social Media conversations properly. 38.6% say they just use a few ad-hoc tools to do so.

It seems to be a service or agency business in the eyes of marketing departments: 44% of agencies reply they report regularly to their client management about Social Media conversations, compared to 27% of marketers. If marketers see their brand at risk, 57% are taking action, 13% haven’t taken action and even 7% are seeing major issues, but have no plan how to react. 22,7% don’t see their brand at risk.

The study highlights also some other important content web-business strategy questions. In terms of email management it becomes clear that personalization is a key topic where marketers improve their tactics. Alterian focusses their questions on segmentation (which is one of their main services) and finds that 43% deliver specific email to each audience. Nevertheless, only 13% deliver emails on individual customer level engagement in real-time depths. The websites still lack attention in terms of personalization. Just 11% of marketers make a website experience a personalized visit. 55% still concentrate on pushing campaigns to generate website activity, and 34% use their company website as a corporate brochure.

Obviously, most marketers have anylytical limitations – be it because they don’t know how to connect analytics and campaign strategy (28%) or as they have basic analytical skills (29%). Other problems are often based on the gap between marketing and IT. Marketers quoted as reasons implementation issues (21%), budget (17%), prioritization (15%), and marketing tool selection (13%).

Spot On!
The marketing industry continues their way from mass communication to work towards a true personalized engagement with customers. Social Media is in the centre of attention at the moment. Clients get more influence on brands and how they interact with them. Social Media should always be seen in the context of all business and brand acitivies, although many brands at the moment seem to loose the focus on all their marketing activities. However, it appears to me that companies and brands forget about the importance of the website and how it might effect a purchase decision. Personalization is only happening on a low level but Alterian is already seeing a new age called “individualization”.

News Update – Best of the Day

How should websites be build in order to serve the needs of clients? Just like cars “easy to use and satisfying”, says the latest J.D. Power and Associates 2011 Manufacturer website study. Their evaluation research based on more than 10,200 new-vehicle shoppers came to the conclusion that Honda’s website offers the best “fit and finish.”

The simultaneous use of mobile and TV is reaching new dimensions. A recent study of 8,384 U.S. residents age 13-64 by Nielsen and Yahoo shows that 86% of mobile users are “searching and working” with their mobiles while watching TV.

Interestingly enough for marketers is the fact that they do search on their mobiles for stuff they watch on TV, so the extension from TV to mobile is already happening.

PS: Nevertheless, another study from earlier this week by SideReel tells us that TV viewers don’t share their viewing behavior online.

The more I watch football today, the more I get the impression that there are too many “wimps and divers”, and fake fouls. This commercial picks this up nicely and advices to play rugby instead…

Infographic – The history of Social Networks

Have you ever thought of the first elements that platform offered in terms of Social Media? Did you know what was the first development that today is one of the features that makes Facebook and Co. as successful as they are? This virtual infographic gives us a 30-year backlook with some (probably unknown) background information on platforms like Usenet, AIM and Friendster amoung others.

I had forgotten that the first email was sent out in 1971, I remember TheGlobe.com which nearly killed our network bandwith in 1997 at work, and I learned that the MySpace code was developed in just 10 days…

The creation was done by OnlineSchools.org. Enjoy, remember and learn…!

What were your first experiences with Social Media? Do you really bring email in context with Social Media anymore? Let us know what you think about the past of Social Media.

Hey parents! Kids cannot swim and tie shoelaces but use tech tools…?

It definitely was something I can confirm for me. I learned my basics like brushing my teeth, riding a bike without training wheels before I got access to technology. No surprise, Artari became popular when I had already finished my elementary school. Then computer technology exploded, also in my life…

Now, a poll by AVG of 2,200 mothers with children between 2 and 5 who have Internet access states their kids knew how to play video games (58%) than knew how to ride a bike (43%). Kids were able to open a Web browser (25%) than swim unaided (20%). An important gender divide could obviously not be found: Girls (59%) and boys (58%) ranked nearly equal in their tech skills at playing computer games. I was surprised to hear that French kids age 2-5 can use a computer mouse but only 67% of US kids.

Obviously there is a change in the lives and development of our kids which parents should be aware of. The results of the poll demonstate that younger mothers seem to be putting more effort on technology. Or do kids just draw their wrong conclusions from our extensive use of tech tools? Children with mothers age 35 or older tend to be better at most life skills (i.e. writing their own name). Younger kids with mothers 34 or under show higher skills in tech abilities.

In my eyes as a father it was quite estonishing to hear that 19% of kids knew how to play with a smartphone app but most of the children cannot tie their own shoelaces (9%) or make breakfast. Our big son was unlucky (the iPhone came out too late for him). He had to learn the show thing first. I will definitely assure that my little son learns to make breakfast first so that we can sleep longer at weekends. Just joking… ;-)

Spot On!
The study is part of AVG’s efforts to show how important early tech education is for children. The question is wether we need to have that proof or if kids just learn and copy how their parents behave and thus put more effort in the tech skills. In October last year, AVG released their first insights. They spotted that many babies have online Facebook and other profiles by the time they are six months old.

Now, what can you say about your kids? Would you say these findings apply to your kids as well? How is your emphasis on handling and learning new technology?

Evolution by Revolution – a phrase or a case?

Yesterday, I came across a good post by Adam Singer that inspired me (as well as his comment to my comment) to finally explore a bit on the phrase: “evolution by revolution”. I don’t know whether this phrase is new, or invented by me but I would love to claim it as my invention. And as Google did not have any results on the phrase for me, I herewith put my trademark behind the phrase – maybe to make a case… “evolution by revolution”.

The phrase is one of these thesis I use for educational courses to discuss and leverage a modern social web world approach with C-level management teams in Europe. I have used it in many seminar or webinars when I was talking about the change management challenges that the Social Web, Social Networks and Social Media bring to live these days.

In the past of human kind, revolutions were often a way for the lower class or segments/departments in an organization to state their case. For them, the challenge to be heard, to get access to the higher education, to have enough food or to benefit from any other kind of wellness or upper (business) lifestyle was often only accessable by a revolution. Revolutions cost money. Revolutions are tough. Revolutions sometimes make sacrifices. Revolutions change habits, perspectives and … business objectives. And revolutions always happened publicly – via newspapers, magazines or even flyers in the streets.

Today revolutions spread faster. In our social web world today, the traditional print media opportunities are added (or replaced?) by new media formats that every individual can use to state their case. And sometimes it “pisses people off” as Adam would have put it. But it makes the case of the unhappy, unsatisfied and underdogs. Suddenly, somebody writes something that is not mainstream, not the evolution strategy of the leadership but becomes the new revolutionary fruits of growth for the management if these people listen, communicate and collaborate, if they pay attention – whether it be the clients, the partners or even employees that start the revolution.

Their voice might be found on all kinds of platforms, in a tiny revolutionary statement in a blog post, a comment in a LinkedIn group (think about the impact for B2B business) or in a Facebook fanpage. Think about it! No! Think about it! Rest…

Some companies put all their PR & marketing budgets in the effciency of search marketing but then forget about the power of blog posts, and what it could do to them. They don’t think of it as negative cases. Think positive! Think ahead! Think about how to leverage the power of social options!

Spot On!
This modern world of communication is all about humans – the past, the present and the future. Evolution follows every revolution (…in my eyes). Consumer or end user buzz for positive and negative business impact always starts an evolution whilst being embraced as revolution first. It changes the mindset. And evolutions can be positive and negative. It needs to be seen as a turn around opportunity, as a business review option, and as a way to think ahead to prevent revolutions.

“Evolution by Revolution” is a (business) challenge – not a phrase! C-level management should forget that… That’s my case!

What’s yours on this topic…?

News Update – Best of the Day

The latest market outlook by Deloitte predicts that in 2011 social networks are likely to surpass one billion unique members and may deliver over 2 trillion advertisements. Although this sounds impressive, it is modest compared to other media, the CPM remains low and the market share remains at only 1% of the global online ad spend. The per member annual advertising revenue is approximately $4 which implies total 2011 advertising revenues of about $5 billion.

Will the publishing industry see a revival of print again? Everybody says social media is challening the print publishing industry. All of a sudden, the Content Marketing Institute has launched a media that is in some way a spin-off of the modern social web development, Chief Content Officer. The circulation is 20,000 marketers, with additional digital distribution. Yes, obviously there is a “digital spin” off as well…

Nike signed a big sponsoring agreement with the national football association of France (FFF). After years with Adidas, France signed a contract with Nike for their national football dress. And then they did this fantastic commercial with reference to my most admired work and poem from “Cyrano de Bergerac”, ending with the famous words “J’ai touche!”. Let’s wait and see what the French team will touch us in EURO 2012…

PS: At Starbucks mobile payment becomes reality. At least in the US where you can swipe your phone in front of a scanner that is checking your Starbucks account.

Active Social Medians more community focussed

Did we not always think that social media geeks and freaks are lonely. Thus having a need and reason to blog and be active on social media groups and communities: better living virtual versus embracing people in real life?! One of the most recent study “The Social Side of the Internet” by the Pew Internet and American Life Project states that active internet users are more likely to be involved in community building, no matter if on political and religious topics.

80% of internet users participate in groups. And non-internet users? Only 56%! Social Medians show an even higher rate with 82% of social network users being active and 85% of Twitter users are group members. And there are reasons for it which absolutely make sense. For the majority of internet users who participate in groups the internet is an important communication tool. That’s were they can address their issues, will be heard and helped them in connecting to groups of their needs and desires. Almost 50% found that the internet was useful for raising money, organizing activities and recruiting new members.

The research director at Pew Internet and co-author of the report Kristen Purcell mentioned that respondents were excited about the impact to the actions they had on society. The chart below illustrates that 53% of respondents felt that the internet played a major part government official election.

Facebook still leading for group communication (asuming this is taken from a consumer perspective). Probably more from a B2B perspective, Twitter gets 12%. Still famous texting! 74% said they keep in contact via texting with members. No surprise for me was that internet users tend to be more engaging and active within their group compared to those who attend meetings, donate money and volunteer their time.

News Update – Best of the Day

Do bank customers want ads in their checking accounts? Whether or not we like it, banks think about ways for new monetization opportunities but also try to strengthen loyalty programs of other companies. The big alignment of the industry and the end of the plastic loyalty card? Banks just ad links to the last transaction and you get the voucher for some benefit at the next check-in.

Apple released some numbers that every iPhone user has approximately 60 apps on their device which sums up in 10 Billion app downloads from their store. It took Apple 31 month compared to 67 month to sell the same amount of iTunes songs.

In their latest commercial, MINI battles vs. five-ton monster truck. Can a monster truck jump really clear the whole MINI family becomes the question? And just watch the feelings and what happens to those who watch the challenge. Can love be described better?

How Cisco’s SocialMiner helps improve the conversation with customers (a John Hernandez interview)

One-on-one interview with John Hernandez

John Hernandez is General Manager of the Customer Collaboration Business Unit (CCBU) at Cisco, which provides contact center and interactive voice applications to enterprises and service providers. In this capacity he oversees product and market development, and is closely involved in the business with the Cisco sales force and partners.

The Strategy Web spoke with him about the launch and benefits of their new customer care product SocialMiner.

What were Cisco’s most successful social medias tactics in the last 2 years? How did Cisco came across the new solution SocialMiner? Why is social media monitoring so important from a strategic point of view for businesses?

Cisco is very active in social media. Our employees were some of the earliest adopters of Myspace, Twitter, Facebook, YouTube, and other social sites. We have tens of thousands of active social media users in our company, as well as a robust and vibrant corporate presence on the social web.

Social media monitoring can become a key strategic advantage for businesses. From a contact center perspective, social media could be treated as “just another channel” in a multichannel approach. However, the public nature of social media, along with the sheer volume of social media postings, makes social media as much a business intelligence tool as a new way to engage with customers. Cisco believes that proactive social media customer care will have a transformative impact on how companies engage and serve their customers.

The concept of the SocialMiner product came from our observation of the changing communication habits and Internet usage of consumers. As consumers have adopted social media channels for their individual communications on an ever-increasing basis over the past couple years, it is only natural that they would consider interacting with a business via social media. This concept of social impacting customer relationships is a very active topic within the emerging “Social CRM” community.

Is SocialMiner just a Customer Service product? Bearing in mind that social conversations on the web affects the whole business…

Cisco SocialMiner is an engagement product, not a “listening product.” SocialMiner is designed to scale the quality and quantity of social media interactions performed by a business. SocialMiner can be used for a variety of business functions such as Support or Sales, but we believe the customers that derive the most value from social media will also use these engagements to drive business process change. For example, an organization could use SocialMiner as a source of business intelligence to provide real-time customer appreciation or criticism of a product or service (or of a competitors’ product/service). Social media can direct their business strategy. Cisco believes that companies that learn from social media will become closer to meeting their customers’ expectations and this will drive overall business success.

Which three benefits do business users have using SocialMiner compared to other tools in the market (Radian6, Alterian, etc.)

1. Cisco SocialMiner is complementary to brand monitoring dashboard solutions. It is designed to support scaling social media by leveraging the best practices from contact center type operational models: Queuing, Service Level Metrics (Average Speed of Answer), and productivity metrics for users. By contrast, many of the brand monitoring dashboards have pieces of workflow capability, but these capabilities are either relatively limited or recently introduced functions.

2. Cisco SocialMiner is a component of the Cisco contact center portfolio which currently includes an installed base of over 10,000 customers. SocialMiner is packaged, priced, and delivered along with Cisco Unified Contact Center Express and Cisco Unified Contact Center Enterprise solutions, and therefore it supports the same installation, deployment, serviceability, and user experience as these other Cisco collaboration solutions.

3. Cisco SocialMiner is a very easy to install and operate software appliance. It runs on premise or in a customer controlled data-center hosting facility and offers unlimited capture capability. Cisco SocialMiner is an API-first product with 100% of functionality available via REST API’s and all user interface delivered as OpenSocial gadgets with documented source that can be modified by Cisco channel or customers. This model supports the preferred consumption model of most enterprise organizations along with a broad customization capability.

Can it be used as a stand-alone product or only in combination with other Cisco products for customer service? Do you have any case studies of success?

Cisco SocialMiner can be used as a stand-alone solution. We have several case studies that illustrate SocialMiner’s success. Zone Labs is one of them. The small wellness company was looking to accelerate revenues & grow 1000% in next 3 years, implemented Cisco SocialMiner to increase customer engagement, customer satisfaction and sales. Zone Labs started developing social communities on their own website as well as Facebook, Twitter and other social media outlets. They used Cisco SocialMiner to route and queue contacts to experts within their organization.

Using SocialMiner, experts were able to proactively answer health and wellness questions via Twitter, providing encouragement to consumers on the Zone Diet, customer service and expert advice on questions such as vitamins and healthy recipes. Zone Labs saw improved agent productivity by automating capturing and responding to social media posts (currently estimated at ~10x). They gained greater customer satisfaction & brand mind-share from faster first inquiry resolution on the web, and were able to compete on comparable scale with larger companies. Their social media activity reduced their customer acquisition cost and created a larger funnel with more leads, that were converted more easily and more quickly than before.

Within 4 months of using SocialMiner, Zone Labs saw tremendous results:
- Web site transactions up 189%
- Revenue up 203%
- 202% increase in total visitors to www.zonediet.com

Thank you for your time, John. And by the way: I like your commercial for the product…

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