The World According to Mark

Here's more evidence that this is Mark Zuckerberg's world and we are all just living in it. Facebook is essentially giving privacy advocates and members of Congress the finger by insisting it will continue sharing user home addresses and cell-phone numbers with third-party developers. Users will be given the opportunity to opt-out of the sharing but many remain unhappy.

If this is Planet Zuckerberg, online performance marketers are pleased to be its inhabitants. Facebook is the dominant force in social networking. It has changed the digital game making social media a necessary performance channel, one that when properly leveraged can significantly increase leads and improve ROI. Social media is driven by information sharing. The Facebook Like feature has revolutionized brand building and buyer awareness. If people were truly wary of sharing information, Facebook would be inconsequential.

The privacy debate is an old one. For privacy advocates and politicians looking to garner favor with constituents, it is a hard argument to win - especially when advocacy groups like the ACLU and Electronic Frontier Foundation, not to mention Washington politicians, have Facebook accounts.

Does Social Media Spark Social Change?

Social media is fundamentally changing the way people communicate and conduct their everyday lives. The political uprisings in Tunisia and Egypt are extreme reflections of this phenomenon.

From a marketing perspective, the situations in both regions amount to an earned media success story. Earned media refers to positive press garnered through free promotional initiatives – second-by-second tweets, Facebook posts and YouTube videos highlighting the mass injustices being perpetrated on the people. Social traffic driven by Twitter followers, Facebook messaging, or viral YouTube plays cannot be bought or scheduled. The results of an earned social media campaign must be organic online and offline.

Digital companies utilize social networks as virtually zero-cost user engagement tools that increase traffic, brand awareness and engagement. If these networks can be trusted to deliver highly measurable revenue for small to large scale businesses globally, why is it hard to fathom that, if properly leveraged, social media could politically unify and engage society?

There are varying opinions among regional experts, bloggers and mainstream journalists trying to quantify social media’s role in sparking each uprising. It would be irresponsible to christen Twitter as the next revolutionary hope. But to reject the notion that Twitter and Facebook effectively united and rapidly motivated Tunisians and Egyptians to act - with little else invested but a desire for change - is to deny the powerful far-reaching engagement potential of social media.

Social Less Than Super

It is the Monday after the Super Bowl. One city is thrilled, one city is miserable and a bunch of cities in between had no emotional stake in it whatsoever unless you consider the office pool to be such an investment. On Super Bowl Sunday, the main attraction is the game itself but it is also that special day when advertisers pull out all the stops to score a brand awareness touchdown. Last night, those stops included social media. Audi sought to drive results, pun very much intended, by incorporating a Twitter hashtag at the end of its minute-long commercial. YouTube and Facebook continued their practice of having users vote for their favorite ads. Call it the Super Engagement Bowl! But now it's time for some Monday Morning Quarterbacking courtesy of a new study from ForeSee Results.

The report found that only 5% of people visiting retail sites were directed there by social networks. Instead, search and email marketing initiatives were more likely to drive relevant user traffic to these sites. This illustrates a point this blog has made on several occasions. Social media is only as good as the performance marketing expertise behind it. A pretty Facebook wall, a fun Twitter feed or a video-filled You Tube account may make you think you are an active social media maven but these alone will do nothing for your bottom line. Success for a social media campaign should not be reaction-based. Success must be results-based.

It's too early to tell if Audi will profit from its hashtag ad or if the winning Facebook and YouTube spots will realize a significant sales boost. In the meantime, here's a little analogy marketers should keep top of mind. In every football game, a coach will make a call that will have fans cheering wildly or pulling their hair out. But if the play call manages to produce the desired result, a score or better still a win, it achieved the ultimate goal. To quote Lombardi - the coach and perhaps Tom Brady's favorite play - 'Winning isn't everything - it's the only thing.' When only 5% of Internet users are effectively leveraging social media, winning seems further away than many of us would care to admit.

Are You Targeting a Loss?

As digital marketers embark on a new year of monetizing the social space to drive results for advertisers and clients, it is more important than ever to keep your targeting practices on course. If 2010 was about the unprecedented power of Facebook, 2011 looks to be about leveraging all things local. But in an increasingly fragmented online market, local may not always include your neck of the woods. For instance, Groupon subscribers living in Brooklyn also receive offers for the other four New York boroughs. Given the couponing site’s high level of success, this may not seem like that big of a deal especially in a major metropolitan city. However, online performance marketers incorporating such subscription-based offers into their client campaigns rely on optimized, precise audience targeting to maximize ROI. They need customers to drive the deal. And if the customers can’t be found, well, fill in the blanks.

I was recently emailed a Groupon offer for a Staten Island lounge – get $40 worth of drinks and eats for $20. That would be appealing if I lived on Staten Island. By emailing me this promotion, Groupon did the lounge a major disservice. I’m one less person making a commitment to patronize this establishment. That’s not costing me anything but for the lounge, which is already losing 50% of its potential profitability by leveraging Groupon, my lack of interest is a big blow.

Performance marketers should stress the importance of precise localized targeting with new and existing clients.  There is no question that Groupon has been and should continue to be successful. Still, the Staten Island lounge would have been wise to utilize performance-based experts familiar with maximizing social and local reach. After all, it’s about driving results for your business model and not for one healthy enough to reject Google.

If Your Business is Going Social, Remember to Socialize Your Staff

It’s no secret that small and large businesses alike are determined to incorporate social media into their 2011 growth strategies. Yes, Facebook will lead the way but location-based network Foursquare gained steam in 2010. The premise of Foursquare is that Internet users check-in - either at home, work or via a mobile device - to retail shops, movies and restaurants for present and future discounts. Businesses benefit by driving visits to their websites and physical locations. Social media campaigns generate buzz among potential customers. But what about creating buzz among employees?

My friends and I recently hung out at a lounge, one that was offering a Foursquare promotion involving patrons getting free chocolate covered strawberries. Free is good. When our server approached our table, we informed her of the promotion.

“What’s Foursquare? I never heard of it.” The server’s words blew my mind. Clearly confused, she turned to her manager, who confirmed the promotion. Moments later, the pro bono fruit arrived.

I suppose this could be considered a check-in success story. The people prevailed. Yay democracy! And yet, this could have been a major fail for the bar. In the case of the strawberries, the Foursquare offer undoubtedly helped solidify an already loyal client base. But if we were new to the lounge, the server’s naiveté might have seemed less endearing and more incompetent. In order for these types of online to offline social media campaigns to be successful, employees of these businesses must be kept in the know. That goes for any corporate model.

Leveraging social media can drive results for business. However, it can also drive prospective customers away if they sense your internal structure could use some social ripening.

Performance Getting its Groupon

Though they were ultimately unsuccessful, Google’s attempted purchase of Internet couponing success story Groupon clearly indicates that the Search Engine is strategically positioning itself as more of a Local Search force.  Prior to making their six billion dollar Groupon offer, Google sought to effectively leverage the local market via Google Places, a revamping of its Local Business Center and Place Pages. The goal of Google Places was to simplify advertising and better target local consumers. With Groupon, Google hoped to heighten engagement and consumer intent to act for local businesses with a proven, successful model. It made sense for Google. But in hindsight, did the offer ever really make sense for Groupon?

Groupon's ability to drive local growth is about more than Search. Customer acquisition for companies also helped deliver profitable results for local businesses en route to making Groupon a couponing giant. Google had the right idea going after Groupon, seeking to leverage the site as a Search and Lead Generation asset attracting performance marketers, consumers and companies alike. But by confidently walking away from six billion, Groupon is making a bold statement to those same marketers, customers and corporations – We’ve been driving results without Google and will continue to do so. It may be the perfect time for those in performance to get their Groupon.

Just Another Manic Cyber Monday

It's Cyber Monday, the online shopping cousin of Black Friday. Historically, this is a day when Internet retailers pull out all the online sale stops to engage consumers to act. But more than any year in recent memory, the day after Thanksgiving seemed to have the same goal. Online holiday shopping powered by social media check-ins and blowout price reductions seems to have fared well this Black Friday. So why the fuss over Cyber Monday? Considering the propensity for heavy shopping traffic to effectively shut down websites, the answer ironically might be a more reliable customer experience.
Let's take in-store check-ins for instance. In order for these types of online to offline social media campaigns to be successful, employees of participating retailers must be kept in the know. The Gap recently launched a social media campaign offering free jeans to the first 10,000 people to check-in at Facebook Places. According to some shoppers, several Gap employees were completely unaware of the free jeans promotion. Though a full scale revolt was prevented, those customers that did not score swag were displeased. Needless to say, this is the not the kind of brand awareness businesses are looking to generate especially around the holidays. For online shoppers, check-ins could generate coupon codes or increase sale offerings. The incentives are optimized and tested within the website. This provides customers with cost assurance, alleviates stress and makes for a more merry and bright shopping experience. Though I doubt The Gap will be offering free pants anytime soon.

That Movie about that Facebook Guy

This weekend, The Social Network opened in theaters nationwide. You would have to be living under a rock not to know its Aaron Sorkin’s take on Mark Zuckerberg’s rise to Facebook power. Apparently, the Zuckerberg “character” comes off as a bit of a manipulative meanie . He double crosses his friends, actual human friends, and business partners to keep Facebook his baby. Whatever. Let’s face facts – the movie is gonna make a bejillion dollars.

I don’t have a Facebook account so I’m not Zuckerberg’s friend. I doubt I’ll fork over the $10 to see the film. Those two statements put me in smack dab in the public minority. In fact when I first heard a Facebook movie was in the works, I was tempted to place myself under house arrest. But love him or loathe him, (I’m rather apathetic to him myself) Zuckerberg tapped into something huge. The term “game-changer” is often frivolously tossed around in marketing circles. Facebook has been that in spades.

Indeed, it seems like social media is everywhere. Those of us in the performance marketing game understand its usefulness better than most to leverage audience engagement and enhance brand worth. While it’s true that Facebook has undergone its share of drama this year in lieu of privacy issues and “Open Graph” features, it is still a juggernaut that has helped drive campaign results.  And now it’s driving movie profit results. Good for Hoodie, though I’m sure he’s not going to “Like” his new cinematic fame.

Don’t Do Social for Social’s Sake

Using social media in a marketing campaign for the sake of using social media is about as nonsensical as many Facebook wall posts. Ineffective implementation of social is a growing and problematic trend among traditional and digital marketers. However, recent findings released by Econsultancy.com may put a stop to the social madness.

According to the Econsultancy.com report, paid search eats up the bulk of online lead generation spend. Online lead generation makes up nearly half of B2C sales. What does this have to do with social media? Nothing and everything. It’s about refocusing social media to effectively engage audiences.

Incorporating social into an online lead generation campaign or any performance marketing initiative can leverage consumer interest and be a great branding tool. But having a Facebook or Twitter page to promote your products and services is worthless without utilizing performance marketing expertise to drive conversions and results through those social networks. Social media can benefit your paid search and online lead generation campaigns in the short-term and long-term as long as you are using them for engagement’s sake.

Themes of Legal Tech

Recurring themes of Legal Tech West, held last week in Los Angeles, were privacy, risk management and demands for cost efficiency. Sound familiar? It turns out that online marketing trends are mirroring the needs of the legal sector, perhaps more than initially thought.

Privacy, Security Breaches and Accountability was the title of the Opening Day Keynote Address delivered by David Lazarus, Business Columnist with the Los Angeles Times. I was not in attendance to hear the speech though I can surmise it at least touched on the rise of social media and its impact on promoting and protecting the reputations of law firms both domestically and abroad. The speech preview posted on the Legal Tech website stated his intention to discuss whether or not traditional business best practices are enough in dealing with these issues.  I’m sure Mr. Lazarus gave an informative, thought-provoking speech. However, I believe the message might have resonated even more had it been delivered by an expert in Online Reputation Management (ORM).

Legal Tech New York will not commence until late January 2011. It is widely and rightfully regarded as the most important law-based technology event of the year. As the digital landscape continually changes and improves across all genres, Legal Tech should leverage the knowledge and experience of ORM marketers for its East Coast Convention. Obviously, the overriding focus of Legal Tech should remain law-specific but increasing the number of panel discussions centering on social media, search and ORM would stress to law firms the importance of implementing digital strategies into their marketing plan.

Legal Goes Social

An increasing number of plaintiff law firms are leveraging social networking to cultivate their client base with highly targeted campaigns and profitable results. Firms are creating websites, blogs and news sites highlighting a practice specialty, marketing initiatives that are attracting visitors and prospective clients. For example, Parker Waichman Alonso LLP has created three websites, bigspills.com, oilspillclaims.com and oil-rig-explosions.com, to attract potential clients to the firm. The strategy is driving results. More than 1000 people have filled out contact forms and close to a dozen law suits have been filed. The firm’s approach is intriguing; a balancing act between utilizing social reach and exploiting a catastrophe. The latter of the two speaks to the need of law firms to invest in Search and Online Reputation Management (ORM).

Law firms like Parker Waichman Alonso may be tempted to implement Search and ORM within their internal marketing structure citing the success of Parker’s website launches. Regardless of their size or ranking, law firms must not take their reach or reputation for granted. Outsourcing Search and ORM to knowledgeable performance marketers can provide firms with a cost-efficient, fully optimized keyword research program designed to maximize marketing spend and drive relevant traffic to their site. Implementing a robust ORM system will provide firms with continuously improved monitoring of and protection from negative user posts. It will also enhance positioning of positive and negative results on the first page of major search engines, generate online buzz through blogs and reviews and offer better communications management of social media sites.

Performance marketers attending LegalTech West on June 23rd and 24th should take this opportunity to promote their valuable services to law firms. By outlining the value proposition of Search and ORM and their clear results-driving benefits, the legal community should have little objection.

Privacy Moves Beyond Facebook

It has finally happened – privacy now transcends Facebook. Potential congressional legislation spearheaded by Virginia Democrat, Representative Rick Boucher, would require ad networks to obtain user consent to track their third party activity by way of an opt-in option.  Ad agencies are understandably miffed by Boucher’s proposal fearing it will stifle their ability to market brands and services in what has always been a free-flowing Internet.

The Interactive Advertising Bureau (IAB) is also up in arms over the proposed legislation, especially the section that calls for consumer consent when agencies collect information via cookies, IP addresses or unique user names. On the flipside, consumer groups fear the legislation does not go far enough instituting protections. In this curious game of privacy 'He said, she said', one must ask why this is a relevant political hot potato.

Rick Boucher uses Twitter. He is on Facebook. How can someone clearly trying to benefit from social media, so-called privacy infringing social media, be so hell bent on passing this type of bill? Welcome to campaign season. Representative Boucher is facing a serious challenge to his seat. Positioning himself as a champion of the people could serve him well in his campaign. Considering Facebook came out of its privacy battle relatively unscathed, Boucher's fight could help him without adversely impacting the digital landscape.

Interactive should take a collective deep breath. In a world where people routinely divulge their location via mass tweet or subscribe to mobile applications trading personal info for a great deal on designer shoes, Boucher's bill - pass or no pass - will go a long way toward eventually killing itself.

Can Startups De-FaceBook?

Some call themselves social operating sites or people platforms. Others stick to the widely accepted social media and/or social networking nomenclature. You say tomato, Steve Jobs says apple. Regardless of classification, newbies to social like Pip.io, Diaspora and OneSocialWeb are pitching their sites as untainted alternatives to Mark Zuckerberg’s privacy invading juggernaut, FaceBook. The ire over FaceBook’s controversial Open Graph application and its “Like” tool has spawned QuitFaceBookDay.com, a campaign calling for users to cancel their accounts on May 31st. Be that as it may, if people are so up in arms over FaceBook, why are these new sites struggling to get off the ground? Why have only 13,000 of FaceBook’s 400 million members vowed to sever ties with the social network?

I think the inconvenient truth of the matter is that for all their complaining, users are experiencing a crisis of conscience and a struggle for identity. FaceBook initially marketed itself as a place for friends. Those friends created the rules of the game. Users started marketing themselves, their interests, their industries, their affiliations. It should not be called invasion of privacy if you’re doing the striptease. And stripteases get noticed.

Companies, large and small, caught on to the power of social networking and influencing in marketing their products and services. The place for friends changed into the home for honchos. FaceBook traditionalists, if they could really be called such, may hate the thought of sharing face time with big business but that’s the price of innovation.

I’m sure many FaceBook users are tempted to test the social waters, whether or not they completely opt to jump from Zuckerberg’s ship. But the reality is FaceBook successfully separated itself from the pack by continuously improving its model, not settling on one formula or aspect of social networking to survive. For social newbies to truly compete with FaceBook, they would be wise to forego an independent strategy. They should outsource digital performance marketing expertise to draw from what Zuckerberg has mastered and invest in innovation, improved analytics and optimization to drive results far greater than 13,000.

Making a Good Overall Impression on Facebook

We’ve all heard the old adage, “You never get a second chance to make a first impression.” Now, before you panic, this blog post will not regress into a litany of clichés. And you have Facebook and Nielson to thank for that. In a study examining the reach and effectiveness of Facebook impressions, Nielson determined that users of the social networking site were more prone to notice ads and purchase brands if they featured earned media and social advocacy. Alas, good impressions that incorporate positive word of mouth win out.

Nielson’s research involved analyzing three forms of Facebook impressions: Homepage ads, Social impressions and Organic impressions. Essentially, Nielson was evaluating the strength of paid and earned media, the former referring to advertising publicity and the latter alluding to publicity gained through favorable opinion. A “Become a Fan” ad created solely to engage the user with a brand is a homepage ad, an example of paid media. A “Become a Fan” ad that also lists the names of other fans in the user’s friend network is a social impression, a blending of earned and paid media. Lastly, an organic impression is a promotional tool that appears on a page belonging to the user’s friend. This impression announces that the friend is a fan of a brand, a type of earned media.

Nielson concluded that social advocacy in Facebook ads doubled awareness among users. More importantly, it resulted in a 4x increase in buyer intent. The lead generation significance in the wake of these findings is palpable. Performance marketers should incorporate the Nielson study into their CPM pitch. The message to advertisers shouldn’t be about making a good first impression. The message should focus on making three – creating a compelling home page to foster organic impressions, stressing the importance of social impressions by investing in paid media and giving due consideration to each impression category for premium campaign effectiveness.

Tweeting for Cha-Ching

Twitter has announced its intention to enter the world of advertising, posting ad tweets to searches. When word broke, a collective tweet of horror emanated from Twitter’s vast online networking space. But are the alarm bells unwarranted? If there was a tweet for the word yes, this would be the perfect time to make that little blue birdie sing.
Twitter’s simple, non-invasive advertising plan goes like this – brands with websites on Twitter or those interested in developing such an online presence will be able to purchase what Twitter’s calling Promoted Tweets about their products; the goal being top placement on search engines. In actuality, Twitter has been an unofficial advertising medium for some time. Unlike those informal ads, Promoted Tweets will be obvious enough to get noticed but understated enough to ward off mass user hysteria.
Twitter’s marketing model seems like a well-executed no-brainer but if you read between the lines, you’ll grasp its underlying significant message – Twitter needs loot. And their mechanism for generating profit should prove fruitful for both the social media giant and advertising brands, especially if the latter are wise enough to acquire Promoted Tweets on trending topic searches.
Promoted Tweets, as currently constituted, is a PPC system, charging companies for every 1000 people who view a tweet. So how does this news positively affect performance marketing? Perhaps the question should be posed as follows – How can savvy marketers effectively incorporate Promoted Tweets into their marketing spend? Our agency needs to strike while the ad tweeting is hot to help advertisers recognize precisely when potential customers are seeking information on desire products or services, thus, enabling them to get the highest return on their marketing spend.

Managing social media amid real-time search results

Along with the rise in the importance of social media is the rise in the need to manage your social media presence on search engines. Google has recently begun to include listing from the likes of twitter and facebook in their SERPs, and our Director of Search Marketing, Adam Riff penned a great article on the topic for DMNews that can be found here.
Look for more great thought leadership in the coming days from the Mediawhiz team