According to the study of Harris Poll (conducted on behalf of Lithium Technologies), that addressed more than 2,300 consumers of all generations, more than half of all digital natives (56%) report to cut back or stop the use of social media platforms entirely.
Even more, 75% of the responding Millenials stated that they feel stalked by brands on social platforms. The reason: The eager way brands do target them in their news feed with the ambition to build trust and loyalty with their customers or consumers via social media platforms in the U.S.
So, what does this mean for brands? Do brands have to live according to a transformed version of the former cold call prevention: „Don’t stalk us, we follow you!“? The study suggests that direct targeting on social platforms via advertising might result in losing customers. It would be more effective to engage and to be present on the channels they use frequently. And also if brands might be tempted to leverage the huge purchasing power coming from the modern generations (Millennials and Gen Z make up 50% of the population), brands need to be careful not to waste the potential of social media and really meet their personal expectations. How challenging this might be in the end…
„The promise of social technologies has always been about connecting people, not shouting at them, and the brands that don’t do this risk their very existence.“ Rob Tarkoff, President&CEO, Lithium Technologies.
But how can brands build trust, the study also asked? A question that is also raised in a bi-annual study from Nielsen and might be evaluated in comparison with those results. Obviously, online is their general source of information but their trust in online exceeds that of former generations by far.
While in the Nielsen study, personal „recommendations from people I know“ are leading, Lithium sees „online sites with product reviews“ as the highest form of online trust creation. That websites are definitely not „dead“ can be seen that both studies see websites kind of in the second place. And, whereas Lithium sees „communities of like-minded people“ in the third place (just think about what their main product was…), Nielsen sees editorial content still a very important source.
In terms of service, the Lithium study shows that Millennials contact brands online (79%) and expect a response back within the same day – almost 10% more than Baby Boomers. So, if brands do not actively monitor and engage with the younger generations online, their brand loyalty might go down soon. The best way to interact with Millennials is described in a quote the study also delivers…
„I go on social media to see and know what my friends are doing. I don’t want to see ads clutter my news feed. If I’m interested in a product or service, I know where to look. Social media is a place for us to connect with our friends, not be attacked by advertisements.“ Mallory Benham, Graduate Student (23)
So, what are your learning on targeting Millennials and Gen Z via ads on social media?
They blog from the first row at catwalks. They share cool design gadgets on Instagram. They strike a pose with a selfie in front of 5-star hotels on Pinterest. And, they record „Let’s plays“ for Youtube while testing the latest computer games. The one thing they have in common? They are online influencers. A digital species that challenges and changes the marketing world of models, testimonials and the publishing industry.
According to an annual Nielsen study, it is a common knowledge that people trust most in recommendations of people they know. In the past, marketers put models or celebrities in this „recommendation seat“. It was meant to address two benefits: Brands intended to grasp some of the consumers’ attention by trying to hitch-hike on the wave of VIP awareness and public relevance. And, they used the reach of magazines and the trust those public voices had for the people.
It seems to me that the tables are turning now, and marketers have to rethink their brand extension strategy.
1. Models – the personalization dilemma
When using models, brands couldn’t tell exactly which audience they were addressing. It was a marketers’ and model agent’s best guess which model fits which brand. However, a model does not have a transparent target-group. They are just faces without any open address books or lead list.
Social influencers are their own agents. Their content markets their personality, their personality defines their content, their reach expresses their quality. They have got fans, followers, and friends that everybody (not only when following them) can see. A clear defined and dynamic target-group that is commited to them and engages with them on a regular basis. What they say gets read. What they state is trusted. In fact, their consumer opinion becomes one of the most trusted sources that people believe in – more than traditional ads of any kind.
Just imagine the influence on purchase intent, when an influencer is posting online to a large audience of friends and fans. Social influencers are perceived of their active and growing audiences as „more real“ than models, somehow even as „friends“.
But also the traditional model business is affected by the upcoming influencer trend: Previously interchangeable and relatively anonymous faces are now increasingly becoming personal brands thanks to their personalized Instagram and Snapchat channels and/or (mostly fashion- and beauty related) blogposts. Consequently, numerous models with significant reach are also acting as influencers to their audiences.
2. Testimonials – the authenticity dilemma
Testimonials need to match brand authenticity and follow the brand message in order to become valuable for marketers. Serious investment in dollars does not allow a testimonial’s mistake. Contracts are long-term and include testimonial involvement not only in all brand campaigns but also in personal PR and marketing engagement during the contracting period.
Money counts for testimonials – as much as monetary rewards do for online influencers. This is definitely true for the fashion and beauty industry, states the „Fashion & Beauty Monitor“ report in partnership with Econsultancy named „The Rise of Influencers„. However, three out of five surveyed influencers believe that the „relevance of brand in relation to own area of expertise „is essential when collaborating with marketers. Influencers are very well aware of their personality as brand that has to be secured and consequently, they do not sell everything just because they are asked to. Of course, this in return means a certain loss of control for marketers when working with powerful influencers. Just to state an example, years ago, I offered MINI a cool opportunity to collaborate with me. I fear the idea never reached the BMW four-cylinder tower – perhaps for fear of losing brand control?
Think about it: How authentic can testimonials be that are selected by brands as of their popularity in sports, fashion and lifestyle? Testimonials sell their media value. On the contrary, engagement with influencers can only work when brands do not act too commercial with them and meet their personal authenticity. Social influencers are personal brands; authentic brands that companies can collaborate with.
3. Publishers – the relevance dilemma
When content from influencers gets more attention (and is trusted more) than content from advertising, relevance becomes a critical tipping point. For years, marketers and PR experts were convinced that „serious“ traditional publishers are more relevant to readers than bloggers or any other form of social media active people. Thus, they invested serious dollars in brand building activities with the publishing industry. Today, these very media houses are approaching influencers to increase their declining media value.
A recent study by Collective Bias shows that content from influencers is viewed for more than 2 minutes (which is 7 times longer than the digital display ad average with a view time of just 19.2 seconds). Plus the relevance of someone’s personal opinion -whether rating, recommendation or review- has become of high value for consumers. Now if content from an influencer is relevant and perceived as being „authentic“ , publishing is facing serious competition in the future.
However, relevance needs to meet relevance both ways. Just putting brand messages into the mouth of online influencers won’t accelerate a brand’s value. In order to become relevant to an influencer and his or her audience, a brand needs to be „love-brand“ in a social influencer’s mind. If not, the influencer will be perceived (and probably also act) like a traditional publishing product without a media-kit.
Solving the dilemma – budget and advertising strategy
The world of testimonials, models and publishing is changing with the rise of influencers.
More and more companies and brands start working with social influencers. I personally doubt that they will completely replace models, testimonials and publishing houses, but the future will tell. However, the world of recommendations will be redefined by a new species.
According to a recent #BrandofMe study, brands invested 1 Bio. USD in 2015 in influencer programs on Instagram only. Influencers earn between 500 and 10.000 USD per Instagram photo or Youtube video – obviously depending on their media reach. Which means that some influencers get paid as much as some publishers for their ad space. A lot of budget that moves away from traditional brand building worlds.
The question is what values more to brands in terms of business impact: tradition or progression. But that question can only be answered when brands understand the power that online influencers can have on and in the sharing economy.
Gambling is a competitive industry just like any other and as with other industries advertising campaigns can be the key to a site’s success. There are many different incentives used by those in this sector to entice in new players and make themselves stand out.
One of the most prolific deals that gambling sites extend to their public is a bonus, whether it’s totally free or comes with a deposit. These work particularly well as it is seen by many as an equivalent to free money to use however they please and works as an excellent incentive.
Another way that sites can get players in the door is by creating a theme that’s on trend. This could be anything from a movie to a character and online casino sites that will be opened in 2016 or those that already exist are using this to its full advantage. This tactic taps into an existing fan base and combines recreational gaming with a concept that players already know they enjoy. Branded slot games are a growing trend because of this, as players see a movie that they enjoy reincarnated and can’t wait to take it for a spin. This also helps the site seem more personable and friendly, especially if they use a mascot.
Being social with players gives another boost to the ranks of a casino. As we all know social media is an excellent way for brands to reach out and be seen by a wider audience. The use of incentives by online casinos also helps when using Facebook, Twitter and Instagram as they can boost posts that offer the best deals.
Television advertisement is a medium that never grows old and many gambling sites now rely on creating an eye-catching advert. This can be a little trickier than advertising online however as there are governing bodies that must review these adverts.
The need to drive traffic to a site is felt by every business on the internet and these are just a few ways that gambling sites manage this flow. They still rely on basic advertising principles but they are tailored to the market.
Many companies find that their people, processes and products lack digital maturiy, digital capabilities and digital innovation. Now, a recent study by MIT Sloan Management Review and Deloitte Digital finds that most employees (and not only GenY!) are not happy how their companies understand and leverage digital transformation. They want to work for the digitally mature management teams and leaders.
The report called „Strategy, Not Technology, Drives Digital Transformation“ surveyed over 4,800 business executives across 27 industries and 129 countries. The main finding is that the opportunity to digitally transform and to turn a business into a digital business depends largely on a digital strategy enabled by leaders who understand to create a culture that is open to change and reinvent an organization.
The study also makes clear that digital maturity of brands is based on the talents that companies can safe and hire these days. Over 75% of the digital mature companies agree or strongly agree that their organizations provide the necessary skills to capitalize on digital trends. Against those stand the immature companies where only 15% say that their organizations have a clear and coherent digital strategy.
Companies that are not yet digitally developed and advanced tend to focus on operations and what technology can do for them in an operational, tactical way. However, digitally advanced companies leverage their products always evaluating the digital transformation view in their strategic approch.
Interestingly enough, the study proves the agile way of doing bsiness and inventing products in the future. Those compannies that are igitally maturing organizations are more open to taking risks than the laggards. Over 50% of those laggards fear the risk as a major shortcoming. Embracing failure as a „prerequisite of success“ seems to become the new standard if companies want o be innovative and fast in driving digital transformation.
Not surprisingly, the maturing organizations are nearly twice as likely as less digitally mature entities to have a single person or group leading digital transformation process. The fluency of these leading digital companies is highly appreciated by employees – but it is not based on technology. Translating the capabilities of technology into value creation is much more challenging for companies but delivering the value that digital transformation needs. And leaders seem to (90%) understand the technology according to their employees.
The main message of the study for us was that leaders (70%) encourage their employees to innovate with digital technologies. Now, the study does not tell the readers how the managers are empowering their employees, in which way they provide motivation or technological ways to do so (which as we know ist he masterclass that most managers have not visited yet), and how much they have succeeded with their approach. In the last years, we have learned that most companies are exactly on that spot blank. Defining the ambition, delivering creative concepts, leveraging the sustainability of the concept, and finding the right processes was often the biggest effort in our projects for companies.
In many posts have we written about the relevance of influencer marketing and how it differs from the value of brand advocates. Today, many marketing organizations and brands have understood the power of influencer marketing and dedicate a significant amount of their budget to them. And there are good reason for it which we can see from one of the latest infographics in the market provided by the guys from The Shelf.
Shoppers trust in influencers and use them as their third-most-consulted consumer decision information source. Although brand and retail sites are still in the lead as an information source. Blogs already come in right after them, even ranking higher than well-trusted social networks like Facebook, YouTube, Pinterest, Twitter and Instagram.
Years ago, we have made clear that the 3 Rs of the social consumer will be leading the decision making process in the future: ratings, reviews and recommendations. The infographic is another proof for our thesis those days. These days, influencer are more trusted than brand content where recommendations have got the biggest power with 92% of consumers trusting in those. Reviews have become the second most trusted source (70%). People also try to stay on top of thought leaderwith blog content that is consulted by 47%.
Although the opportunities are there, only two out of three marketers (65%) invest in influencer marketing so far. and every second company separates their budgets for sponsored social content from other budgets (52%). Still, the amount of investment is not „nickles and dimes“ anymore for brands and companies. Every fourth company already spends over $500,000 already.
Why influencers play an important role inside your content strategy is obvious. They can explain products from various subjective and objective angles. They can play an important role in your community management when negative input needs tob e turned into positive arguments. They can have a big impact in your content production strategy in having an external view on your business and relevance in the market, and thus become your „search-engine-optimizers“. And, they will play a significant role in your sales approach if you take your time to think about it (or maybe talk to us if you don’t have an answer).
Have a look at the infographic and decide yourself if and how you would like to use influencer marketing in the future.
Instagram is the rockstar kid on the social media street these days… at least among the younger generations GenY and GenZ as far as we can argue from our latest advice and studies we are seeing all over the world. And when users have shared over 30 billion photos on one platform that tells a trend.
Now, many marketers wonder wether they should invest in Instagram to create new content, how often they shall share something, and in which way to present their brand to their target group. Salesforce offers some interesting advice with an infographic called „Say cheese!“.
Salesforce thinks that posting quality photos on a regular basis is one of the key tactics.
Regular? Well, find the „balance between over-saturation and falling to the wayside“. Understood? No? Maybe try not to put yourself in the focus of your brand and company name in pictures all the time.
Quality? Whatever that means as it stays in some way undefined. Maybe they mean types of photos more than quality of photos. Their advice is to use previews of upcoming products or events, and employees.
Style? „Write clear and engaging descriptions that reflect and enforce your brand’s message“. However, the question remains what engaging descriptions are. The answer we think would be to include questions in descriptions: Ask, ask, ask.
Our main advice would be to reach out to those Instagram users that are sharing content that engages already others that might be in your brand customer range. And somehow the secret sauce is: Re-post, re-share and comment. Don’t always think about many own accounts on Instagram. Just make sure „you don’t look like a robot.“
Some years ago and in many seminars, we make clear that the 3Rs of social consumers will revolutionize the sales world: ratings, reviews and recommendations. However, the question arises what make people recommend brands and services? What is their intrinsic motivation or human driver that makes them push out more positive comments around a brand.
A recent infographic by Social Media Link pulled together the most important findings of a study that surveyed 24.000 social media consumers. Still, the best customer experience that leverages recommendations is „a positive experience with the brand“ (93%) and „receiving a free product or sample“ (79%). On the other hand, a poor customer experiences motivates sharing, too. 71% stated „a negative experience with a brand“ makes them write a review as well.
The survey respondents also mentioned that they are more likely to trust a product recommendation on Facebook than any other social network (71%), followed by Instagram with only 38%.
Not surprisingly, Facebook and retailer websites ist he place to discover new brands and services (53%). However, for purchasing the retailer becomes more important and after purchasing a product people use predominantly Facebook to share their buy (54%) – again Instagram comes in second place.
Now, when you think you just need to give a free product to someone, it makes them write a review or recommendation, you might be wrong. Although, 88% trust friends’ and family members’ reviews when these write about their give free product in exchange, the bloggers only come in at 78%. BUT: Is payment included in exchange for the review, trust-level goes down – especially at bloggers to 48%. Still, the best way ist o have apersonal story which is authentic, not animated and personal.
A recent report from G2 Crowd, based on the reviews of 1,700 CRM professional users, shows that Salesforce and Microsoft Dynamics are the leading two customer relationship management (CRM) systems. This is the finding of a report that has checked the 27 highest rated systems by customers.
The report grouped tools together based on two main deliveries a) overall customer satisfaction (average scores by users) and b) market presence (market share, vendor size, and social impact). The report defined the CRM systems as software systems that provide salesforce automation features (account, contact and opportunity management), marketing automation tools (lead and campaign management), customer support options (knowledge management and support case), and a unifying database.
In the CRM „leader“ category finished Salesforce and Microsoft Dynamics. Both tools showed substantial scale and were rated relatively highly. Salesforce was rated significantly better by 9 out of 10 users: reviewers gave Salesforce 4 or 5 stars. Furthermore, 84% stated they would recommend the product to peers and 88% thought the CRM tool is headed in the right direction.
However, Microsoft Dynamic’s impact on the market in the top tier is predominantly depending to its large market share. Only 60% of Microsoft Dynamics users rated the product 4 or 5 stars. Still, 64% would recommend the tool to their peers and 60% think the CRM system is headed in the right direction.
Another study by Salesforce.com shows that customers experince CRM systems to boost customer experience. However, data quality and predictive analytics could still do better in performance conversion. Nevertheless, the battle in the CRM tool business is on. Microsoft just bundled their product offering to challenge Salesforce. Although aggressive pricing might change proples‘ minds, Salesforce.com has the benefit there exist hundreds of AppExchange partners, like Marketo, Eloqua, LinkedIn and others. While Microsoft also has its‘ partners, Salesforce.com’s still offers the enterprise app cloud development platform that shows more opportunities.
The growth trend of the digital marketing show dmexco is impressive and continues to write a promising (hi)story.
Visitors: 31.900 – increase by 16% compared to 2013
Exhibitors: 807 – means over 65 exhibitors more than 2013
Speakers: 470 – as of various stages with new start-up village and work labs
This year I wanted to wait some days before I am writing my little review to see what really stayed in my mind, and what people were talking about after the event. This is what stayed in the brains of my friends – maybe it should reach you.
1. „dmexco is like the Lumascape brought to life.“
#Quote in Breaking Down Silos for Brands Panel
Damian Burns, Director of Global Strategic Partnerships, Google
2. „Nerd is the new black“
Brad Rencher, SVP & General Manager Digital Marketing, Adobe
3. „Online is the new offline.“
Quote by Joko Winterscheidt, TV-Moderator
4. „The play is to work out the first against the second screen.“
Quote in „Addressable TV – A Marketers‘ Dream Panel“
Jim Clayton, Executive Vice President, HE New Business Division, LG Electronics
5. „The digital revolution is over, we are now in the digital evolution.“
Quote in Digital Revenue optimization 2.0 Panel
Sital Banerjee, Global Head of Media, Philips
6. „The brand in many ways need to take the back-seat. It can’t be all about the product if you move into the content section.“
Quote in „The Content Summit“
Jimmy Maymann, CEO, Huffington Post
7. „@ft presence at #DMexco so big they don’t even have a stand! They are on every phone and tablet! @dmexco @ftbized“
Quote from #FT rep/via Oliver Matthews
The three main takeaways from the event for me were…
a) Trend: dmexco stages are challenging global TV stages.
b) Topics: TV goes mobile. Digital is leading corporate strategy.
c) Town: Cologne needs more taxi drivers and/or UBER subscribers.
Really looking forward to moderate the next dmexco, 16th and 17th of September 2015.
Marketing automation tools are making their ways into the business world, not only for large enterprises but also for small companies some solutions have proven to be promising, and not only since IBM bought Silverpop. However, which tools are the right ones for your business? At least we get some advice now from TrustRadius‚ „Buyer’s Guide to Marketing Automation Software“. They did a report based on 400 in-depth reviews by authenticated end-users of marketing automation products combined with the results of more than 10,000 comparisons performed on the TrustRadius‘ website.
The report looked at software solutions that include various demand generation capabilities like email campaign management, landing pages,or even lead scoring. However, the analysis out those providers which just offer one aspect of marketing automation (i.e. only lead scoring). In their focus were those tools that „help to automate and scale repetitive marketing tasks and the analysis of those efforts.“
These were the findings they came up with…
Small Businesses (Up to 50 employees)
Small companies gave quite positive and high ratings with at least a 4 out of 5 (average was 4.3 out of 5 – better than the average in the midsize and enterprise companies). Then TrustRadius ranked the products via two factors: a) average user rating and b) how does the product serve the business segment (determined by the number of comparisons made by organizations of that size).
The leading 3 solutions were HubSpot (4.8, 69% of comparisons by small businesses), Act-On (4.7, 53%), plus Infusionsoft (4.3, 96%). Other solutions like Marketo, Pardot, Eloqua, and Silverpop also got good ratings. Still, they ranked lower as they had a smaller proportion of small business comparisons.
SMB Businesses (From 51 to 500 employees)
The average rating in the midsize company category was 3.9 out of 5. The report shows that a higher demand goes alongside bigger companies and more complex requirements for marketing automation tools. Here, the trusted vendors are Marketo (4.2, 60% midsize category) and Pardot (4.0, 58%). Act-On, Eloqua, and HubSpot also got positive ratings.
Enterprise Businesses (500+ employees)
The average rating for enterprise marketing automation products was 3.8 out of 5. Eloqua showed up to be the top marketing automation software for enterprise companies (4.4, 59% enterprise focus). Act-On, HubSpot, Marketo, and Pardot also performed well according to users, but they had a smaller proportion of comparisons from enterprise customers.
Tell us about your findings. Which tools do you use and what has proven to be successful for you? All insights can help other companies make faster decisions.