Networked Brands

Personal CPM meet The Influentials

2009-01-16T13:28:00.007-05:00

Former Forrester Analyst and social media visionary Charlene Li has added fuel to a topical flame dubbed the “Personal CPM.” She hypothesizes that marketers will bid for access to personal social networking profiles with greater reach and influence among their peers. Inherent in this discussion is whether these individuals share in the windfall of this influence. I will be participating in a panel on the topic at this month’s OMMA Social in San Francisco so I thought I’d put a few ideas out there and see if I can crowdsource an analysis.

First, this is not a new topic, it has been tackled by other industries and wrestled by other thought leaders under different monikers and in alternate contexts. Social Media shares DNA with sister discipline Word of Mouth. As a former Board Member of the Word of Mouth Marketing Association (WOMMA) and student of the burgeoning Social Media industry, I’ve witnessed both industries obsess over “influencer methodologies.” From this debate, messiahs have been created, definitive tomes written and disciples deputized. Two dominant “religions” seem to have risen from the fertile influencer landscape even before the context of social networking evolved the conversation: The Influentials vs. The Everyday Evangelists. Malcolm Gladwell’s breakthrough work The Tipping Point was the Old Testament to Charlene Li’s New Testament Groundswell. His research located those "maven" consumers, the cool kids, who’s fashion, music and consumerism were the seeds of all trends. Tipping Point gave rise to a legion of “cool hunters” that splintered into a more scientific approach outlined in Keller/Berry’s book The Influentials, with a descriptor that says it all “One American in Ten tells the other Nine how to vote, where to eat and what to buy.”

The Everyday Evangelists argue that the search for alphas, mavens, sneezers and the like is a fools pursuit. Companies like Bzz Agent have led this splinter faction, assembling legions of hand-raising, would be evangelists to try stuff, talk about the stuff that they like, and report on the conversations. They make no claims that these people are screened for influence, size of network, or persuasive personality traits. They have, however, placed a line in the sand around the idea of a CPC, or cost per conversation. Based on some nifty math and established media metrics they’ve established a de facto standard of $.50 per conversation. In a performance based world, would you give two quarters for a conversation about your brand?

These models of course were conceived BF (Before Facebook). If Google established the common practices and pricing models of performance advertising, I argue Facebook will be the battleground of the Personal CPM holy war. On one side, marketers await, anxious to “buy” social influence at the human being and personal profile level. Lining up against them will be the privacy zealots and marketing skeptics, defending the sanctity of our profiles and the actions within our social networks. Somewhere in the middle will be consumers with a growing sense of their marketability and looking for a little something, you know, for effort.

Mark Zuckerberg once called Facebook “Word of Mouth on Steroids” and his Beacon advertising program planted the philosophical seeds for the idea of tapping purchase influence within social networks. Beacon may have lost the battle but Facebook will win the war. Out of the ashes has risen three new weapons of mass influence: Social Ads, Pages and Connect.

How can advertisers tap into the social graph and "Personal CPM" to have greater impact in Social Networks? Should they? I'd love any thoughts.

Next post I'll be be tackling "CPF- What is a Fan worth?"

The Social Brand Road Map

2008-11-10T13:16:00.007-05:00

Published in MediaPost's Marketing Daily on November 7th, 2008

Social Networks are a legitimate worldwide phenomenon. Global user numbers have exceeded all reasonable expectations. And yet, even the largest networks have reported difficulty monetizing this enormous base. Why? We’re seeing two things. First, “traditional” advertising in social networks is inefficient at best and obtrusive at worst. Second, brands are still, by and large, in the slow lane of the social networking superhighway.

Social is the new Green
It seems “going social” or doing “the social thing” needs an inflection point in the way that “going green” got its lightning rod in the form of Al Gore. First, companies had to accept that “going green” wasn’t a campaign, and that “green-washing” posers would get called out ultimately harming the perception of their brand. The creation of an authentic Green Brand requires a top to bottom, honest-to-goodness, paradigm and business model shift. When customers stood up and demanded the products and services they purchase come from green companies, the revolution truly began and it is one of the most powerful forces in marketing today.

Socializing with Customers
Recommending an anti-social brand strategy would be as silly as espousing an anti-green marketing approach. Yet, many companies firm footing on the sidelines of the social movement is putting out a less than social vibe and raising the question, “why aren’t you here.” A recent study by Cone points out, Sixty percent of Americans use social media, and of those, 59 percent interact with companies on social media Web sites. One in four interacts more than once per week. According to the study, Americans who use social media believe:
• Companies should use social networks to solve my problems (43%)
• Companies should solicit feedback on their products and services (41%)
• Companies should develop new ways for consumers to interact with their brand (37%)

Looking in the mirror
So what is going to be the tipping point for brands to “socialize” themselves? Let’s first examine the end state of what we’re calling “Social Brands” and what you’d see when you check your look in the mirror.

Brands
Solicit customers
Sell to cold prospects
Seek satisfaction
Talk about themselves
Retain customers
Incentivize frequent purchase
All business, all the time
Do well
Advertise
Send mass email
Target demos
9-5

Social Brands
Make friends
Network with happy customers to meet prospects
Strive for passion
Listen more than talk
Engage fans
Reward engagement
Make time for play time
Do good
Invite
Message friends and fans
Seek shared interests
Leave the front porch light on

If we can all agree we’d like to get on the road to a more social brand, then we can start focusing on the route to get there. It reminds me of the positioning statement my former agency Arnold created for VW over a decade ago. “On the road of life, there are passengers and drivers. Drivers Wanted.” The brilliance was the absence of choice that it created. Who in their right mind would raise their hand and say “Yeah, I’m more the passenger type, just along for the ride.” Even if that was true in reality, there’s a part of us all that wants to be the driver in life.

And as with any road-trip, it’s about the journey, not the destination. Becoming a Social Brand takes commitment and flexibility. It will require a curiosity and open-mindedness usually reserved for our life’s passions, not our work endeavors.

Social Brand Signposts
Here’s a few signposts along the road to a more social brand.
• Facebook Page
• MySpace Group
• Twitter
• Blog
• Online community of brand fans
• Online listening community
• Engagement rewards
• Social application
• Social advertising
• iPhone/Mobile application

You’ve made these stops and you want explore the more exotic locales on the social map? OK, but let’s make sure you’ve really socialized with the 200+ million people in Facebook and MySpace before building that remote island in Second Life. As with real friendships, it’s about going deep not wide.

A look down the road
Imagine the state in which your brand moves from the periphery of a “social” network and into the middle of your own brand network. Your Social Ads recruit Fans to your Pages, Groups and Apps. Those Fans seamlessly migrate into a community where they share their opinions, grab tools to evangelize on your brand’s behalf and receive recognition for their engagement. Each activity is broadcasted to friends through tools like Facebook Connect. Open Social has enabled your Fans to follow your applications between multiple social networks and mobile devices. Your blog posts and tweets get synced with messages to that same, constantly growing, ever-green network of friends and fans announcing the arrival of your Social Brand.

The destination is in sight. Check the map. Get on the road and enjoy the ride.

Brand Networks Moves Into New Space

2008-09-29T18:20:00.005-04:00

Brand Networks is excited to expand into new space in the South End of Boston. We've included some photos of our new international world headquarters at 580 Harrison Ave. Reach us at our new offices at (617) 275-7050.

Brand Networks Launches TRAKclips

2008-09-17T13:35:00.003-04:00

We're proud to announce the launch of TRAKclips in Facebook, now an exclusive reward for users of MonsterTRAK's Job Search Agent application. Powered by our Tokns platform, TRAKclips is a first of its kind viral video widget featuring career-related movie clips from popular films like Superbad, Talladega Nights, Jerry Maguire, and more. Users earn Tokns for engagement within the Job Search Agent application, unlocking additional clips within the player which can be viewed, sent to friends, and displayed on users' profiles.

TRAKclips is available exclusively through Job Search Agent - check it out here.

Utility is the New Super Poke

2008-04-16T19:27:00.000-04:00

People are dropping boredom killing apps on facebook like bad habits. Wait, they are bad habits. Productivity killers. Time thiefs. Just plain silly. So what's happening, is it the death of the app? As a company that's part of the facebook economy, we hope not. In fact, we're seeing the opposite trend. Brands have seen the dust settle and they're jumping in. Not as advertisers but as developers. and they're not interested in poking, or biting, or taking a never-ending quiz, they're focused on utility.

Alley Insider published this post recently, highlighting ten apps that "don't suck." We're pleased that one of our apps, Monster's Job Search Agent was highlighted. Not sucking has never felt so good for us or our clients. As the author points out, the applications should be judged on their true utility to users, not just their install base.

What do you think makes a good application? What questions do you ask yourself before clicking the "Install this Application" button?

Are Social Ads the New Swoosh?

2008-01-03T14:52:00.000-05:00

Just as the Beacon fire has died down, Wired has re-ignited the spark on Facebook's Social Ads feature.

The controversy is grounded in two critical issues. The first is whether users fully understand the implications of becoming a "Fan" or downloading a brand's application. It seems pretty clear that users aren't aware that committing these actions essentially authorizes brands to use their likeness and corresponding inferred endorsement in Social Ads for the brand. As a board member of the Word of Mouth Marketing Association I believe strongly in the necessity for proper disclosure of marketing initiatives. I'd like to see facebook proactively engage in an campaign to educate its users each time it initiates sweeping changes like Beacon and Social Ads. With proper education and disclosure, the second issue still shines like a Beacon...what's in it for the user?

One post in the Wired article correctly points out that some/many users might just like getting their face featured in ads from brands they like. Which led me to the question I pose to readers: "Are Social Ads the new Swoosh?" There was a time that in order to prove I associated myself with all the coolness that is Nike, I had to go buy something with a big, red swoosh. Branding myself with this logo put me in the club in the same way driving a BMW makes me part of that culture. So for today's facebook users, the bar is set lower than pulling out one's wallet to join the fan club of a brand, is that so wrong? I argue it is not, so long as the user knows exactly what they're getting into by clicking the "become a fan" button or "add this application" tab.

In fact, I think this is the perfect representation of the new social equation forming between customers and brands. People are now demanding Return on Engagement and progressive brands are getting out in front of that. There's a reason why Burger King acquired one million friends on Myspace. They leverage their media buy with Fox and offered free viewing of 24 on their sponsored profile to "friends." It's no different than VW offering a free iPod for everyone who bought a New Beetle a few years ago (a promotion I helped orchestrate), except there is no purchase requirement. The only requirement is opening up a communication channel with the brand. So what are a million friends worth to a brand? Quite a bit I would contend.

The net/net is that brands need to stop thinking about one tactic (like social ads) within specific social networking sites, and start thinking about a comprehensive social networking strategy that starts with asking some hard questions. Does our brand have "swoosh" value (social currency) to our customers. Are our customers eager to brand themselves as "friends" or "fans?" If the answer is "no" to either of these, what value can we bring to the equation that might tip the scales? How can we recruit and maintain a robust fan/friend network? How do we apply the logic of CRM to FRM (fan relationship management)? Tough questions all, but if you believe as I do that Networking is the new Marketing, then they must be answered.

We're not in Niketown anymore.

Facebook Group Petitions over Privacy Concerns

2007-11-21T10:44:00.000-05:00

As predicted, a small group of privacy advocates have created a Petition, demanding Facebook reconsider the privacy controls and protocols related to their Beacon application.

With just over 500 members signing the petition thus far, it seems as though this movement won't catch fire the way the the mini-feed news did last year. You'll recall the companies quick response to community privacy concerns, with Zuckerberg's opening line in a blog post "we really messed this one up."

We'll keep tracking this group and other flare-ups with the community. On the whole however, it seems most Facebookers are OK with sharing their purchase decisions with friends. Stay tuned.

The Word on WOM - Ramblings from WOMMA Summit Vegas

2007-11-14T11:59:00.001-05:00

The convergence of Social Networking and WOM is finally upon us. It did indeed take the forethought of Mr. Zuckerberg to shed light on this inflection point. But make no mistake, the 450 marketers gathered here in Vegas are waking this morning to a new era, a new paradigm and a new understanding that social media is where it is at. Brands are poised and enabled to enter the conversation like never before. A breakfast this morning was dedicated to the art and science of Influencer marketing. I'm not a big fan of the "influencer" label- but the discipline of firing up your "brand lovers" is core to my vision for Brand Networks. I'm bullish that this is the future of marketing (or I probably wouldn't have quit my job to pursue it), my only question is whether that future is now.

I might even classify the tone of the first speakers Ed Keller (keller-fay) and Peter Waldheim (womma) as revolutionary. Traditional advertising was served notice. Coming from that business, I curiously await the advertising industry's response to the gauntlet laid down here today and by the champions of social media in the blogosphere and traditional media.

The game is on (or so the head of marketing for Microsofts Halo 3 has pronounced). I'll post interesting tidbits throughout the next two days here from the front-lines of the revolution.

Facebook embraces the power of WOM, now what?

2007-11-07T19:35:00.000-05:00

Beacon shines the light on your purchases

Beacon is to online shopping as a branded bag is to mall shopping, only better. Not only does Beacon allow people to shout “I bought something at the Gap,” it broadcasts their specific purchase to friends and directs them to the retailer’s door to follow suit. There’s a saying in teen marketing circles that defines the conflict between individualism and the need to fit in: “I’m an individual, just like everyone else.” For a certain personality/ consumer type, this unadulterated celebration of consumerism will be adopted, revered and evangelized.

Conversely, groups are surely being formed right now in Facebook to lobby against Beacon. Facebook purists will revolt against this level of commercialism in their community. A percentage of Facebook users will adjust their settings to avoid this feature. There will be backlash, like there was against mini-feed, on the grounds of privacy. A smaller percentage still will leave Facebook in protest, seeking the next “pure” social networking experience. I predict that like the battle over mini-feed, the uproar will silence over the coming weeks, and the two camps will adjust to the bright light of Beacon shining on our purchase decisions.
From a marketer perspective, adopting Beacon needs to be weighed carefully. A prompt at checkout to broadcast a purchase on Facebook is a big deal. For brands with a customer demographic wider than the Facebook sweet spot, this has the potential of being a disconnect at best, a nuisance at worst. It is like asking all you customers to present their college ID at check out. For pure play youth/teen marketers it is a no-brainer. But if I’m Travelocity, catering to the Alaska cruise crowd as much as the Spring Break set, doesn't facebook have more to gain than the brand?
Lastly, what’s in it for the user beyond the inherent surge of pride in broadcasting you have bought the latest Puma’s at Zappos? If engagement with a brand is a dial, this action is moving towards eleven.

Ads Just Got Smarter and More Personal

This is the least interesting part of the announcement for me. Ho hum, a new ad format with better targeting. What makes this move provocative is that brands now have the permission to use my photo and inferred endorsement to sell my friends the same product or service I just bought. There are so many potential issues here, not the least of which, it is creepy. A landslide of users will oppose being used as a shill for a brand in which they have a passive interest. Sure I get it for an iPhone purchase, but do I want friends to know I just bought new Haynes undies at the Sears?
Again, the value proposition is skewed to the advertiser. Where’s the value for the user. Where’s the “thank you” for selling out for this product? Where’s the effort to locate true advocates vs. any indifferent shopper. There are plenty of companies to which I’ll lend my credibility, if recognized accordingly. Little something for the effort…?

“Sponsored Groups” are Liberated. Free at last!

Today is one of the few days I’m happy not being a facebook sales-guy. Having to explain to clients that their $300,000 “sponsored group” is now obsolete will not be fun. And oh, by the way, other brands, bands, and politicians can create something called a “Page” with oddly similar functionality for free. As someone who has been railing for a year now that these “Sponsored Groups” and “Sponsored Profiles” should be free, it’s a very satisfying day. What marketer in their right mind would build a “community” on a platform that goes dark when the very expensive media meter hits zero? This is a fabulous move for everyone. Brands will build these beachheads and test the waters. Most will realize they’re not as popular as they’d hoped, and will need to plug the media meter to drive traffic and find “fans.” Win, win.

Without saying so, Facebook is admitting that these “Sponsored Groups” were overpriced and under-delivered for most of their advertisers that are not Apple or Victoria's Secret. They are not alone, Myspace needs visit the same confessional and purge itself of the sin of selling “added value” masked as community.

Speaking of Myspace, doesn’t this move make Facebook considerably more Myspacey. The rush is on for everyone to create a page in Facebook. Location alone will not ensure traffic, and it certainly will not magically create brand “fans.”

What’s a marketer to do?

For all those marketers not ready to dump huge sums of advertising dollars into an advertising adverse community, choosing an approach has been daunting. Many recognized the promise of applications and before they had the chance to fully engage it has become clear that applications are just one powerful tactic of a comprehensive strategy now required to enter the social networking game. If Google's “Open Social” announcement taught us anything, it is that we need to think broader than building just a Facebook strategy. We also need to be nimble enough to take full advantage when the game changes again. And it will.

The common denominator here is enabling your “fans,” evangelists, and/or brand lovers, to do some heavy lifting for you. Some of us who have toiled in the Word of Mouth Marketing industry have been helping brands “enter the conversation” for quite some time, so we thank Mr. Zuckerberg for shining a Beacon on the strategy. WOMMA's conference next week just became an even hotter ticket.

Online or offline, referral from trusted friends builds business and sales. So welcome to the next 100 years indeed, because that fundamental truth will not change.

Another common thread is the need to establish a "return on engagement” strategy. It is poor form to treat your best customers like pack mules for your messages without recognizing and rewarding the effort with a carrot or two. The single most powerful question in human decision making has to be: “What’s in it for me?” Brands that get that get this equation right will succeed in attracting and growing their own “brand networks” and social networks will simply become social utility again, just as founders of Friendster, Myspace and Facebook all intended in the first place.