1 Good Reason – Social Marketing

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DigiDay On Media- Live Blogging PM

December 9th, 2010 · 1 Comment

Measurement: In Search of the Unified Metric

Sean O’Neal, Vizu- Sean Gelles, Ketchum- Donnie Williams, Horizon Media- Anurag Wadehra, Adchemy- Yaakov Kimelfeld, Media-Vest

What metrics can you look at in a campaign while it’s running?  Many metrics take too long to develop to be useful during a campaign.  One method is to measure online KPI (key performance indicators) for campaigns that are targeted to drive offline activity, like retail. Anurag says to plan an outcome which creates measurements and planning actionable insights which will effect the outcome.  Understanding what you want to have happen and then deciding what to measure so you can see if it’s working.

How do you measure earned media?’

Sean Gelles, measure raw analytics, clicks, video views.  They don’t like sentiment but prefer to determine if a particular mention is toxic or nontoxic for a brand.  Often in PR plans are laid well ahead of time with long lead times.  By following long run campaigns they can score the share of voice and other measurements.

Donnie, says that his clients want a guarantee of a particular ROI on their campaigns.  They can offer an effective CPM or Cost Per Fan to the client.

The end all be all measurement isn’t click through rates?

Anurag- CTR is probably the worst measurement to determine the success of an ad campaign.  The real measure is how good is the on site experience, how many of the visitors covert  are much better.  But conversions isn’t always great, some customers may have bad credit, or place bad orders that will return.  Looking at a single metric is never a good idea.

Yaakov- Some people never click on Ads.  In other words some people are more likely to be hit by lightning than they are to click on ads.

Donnie- 75% of the time we run qualitative metrics for our clients.  With our entertainment clients we have found some of the ads that got the lowest engagement and clicks were the most effective.  Movie ads that had tremendous impact but which people never click upon.

Sean Gelles- earned media provides a richer set of data with comments that you can read and gather a great deal of information and insight.

Are we turning the corner of leading the conversation with  the concept of engagement?

Sean Gelles- certainly in earned media (PR) because the ability to get reports back on comments and interactivity are much stronger.

Donnie- digital is now “getting a seat at the table” when it wasn’t involved in the discussions before.  It used to be TV and newspapers only but now digital is being included in the discussions.

Anurag- measurement has failed because we lack clear standardization.  CTR in PPC is different than CTR in display.  Impressions in display and PPC are different.  What is the unit of measure in social- it’s not yet determined.  The digital world needs to create intuitive metrics that work across ad types and across platforms. (I agree!)

Is Cookie Targeting the Answer to Brand Marketers Needs?

Jason Ewell, Aperture

Brand Managers are complaining that they are losing the internal battle as print dollars are going up for grabs.  They are losing the battle to direct response and shopper marketing in stores.

Despite the growth of digital and it’s perceived ability to be measured, it can’t be measured off line.  So the disconnect is happening in CPG where purchases happen in the store and not online.

Video: Trouble in Paradise?

Corey Kronengold, Digiday- Bill Lederer, Kandar Video- Roland Hamilton, DailyMotion- Karl House, Deca- Mitchell Reichgut, Jun Group

So we saw a great video from Axe, that was on the verge of NSFW.   It talked about washing your dirty balls, and went downhill from there.  They discussed that the client only paid for about 1/4 of all of the views.  The paid premium video placement only kicked off the video and generated 3 to 1 views with a viral share.

If you are creating a video you must have a plan for; owned, paid, and earned media for that distribution in your marketing planning.

There is a new category in video, above User Generated Content but below the Made For TV level.  Semi-professional, pro-sumer generated content.  This could be the as yet to be discovered Quintin Tarantino.

Only 8% of videos are monetized.  But the question is how many of the videos are worth any money?  Most UGC is worthless because it doesn’t have an audience of more than a dozen people.

4 Billion minutes of video are served every month.  2 Billion by YouTube, and 2 Billion by all other sites.  35 hours of video are uploaded every hour- the vast majority of that is UGC which is worthless from a brand advertising perspective.  (Brands are still afraid of advertising on UGC because they don’t know the real topic or tone.  They are afraid of being associated with the topic and getting a black eye.)

Bill Lederer talks about Redken taking $2oMM out of TV advertising and spending it in online video.  Bill believes that it is the first of major CPG companies to make a major move from TV to online.  The interesting thing was that they claimed they demanded and got a $2 CPM (cost per thousand) for the video showings online.

Bill, the main problem for online video is scale, there isn’t enough quality content which people are viewing to allow large advertisers to move significant amounts of money into online video.

Roland, ad formats preroll, stand alone, video included in a display ad like a banner.  Some of the video displays are reported in analytics as display ads.  Video isn’t a display ad, no more than TV was radio with pictures.  The ad industry needs to create analytics and reports and sales and purchasing mechanisms which don’t exist today to support online video advertising.

Bill mentions that the online video market will sell $1B in ads for 2010, which makes it a real market.

Closing Keynote: Placing their Bets for 2011

Greg Coleman, Huffington Post- Dan Rubin, Publicis Modem- Patrick Benson, Deutsch- Dr. Augustine Fou, Omnicom- Tom Hespos, Underscore Marketing

What are people saying about social?

You have scale today but the open question is quality.

There is very much confusion in social. What is it and where does it belong in the organization.  Some companies are asking the question, does social belong to Marketing or another group in the company.

You need to start by listening and determine what people are saying.

The difference that social causes is that it turns brands into content companies.  They aren’t ready for that, and don’t know how to do it.  It takes an infrastructure that many brands don’t have.  Second there needs to be both a paid media and earned media component to any good social media program.

Over 50% of meetings at the C-Level include Corporate Communications  which has changed a from 0% a few years ago.  This is all due to social media.

Companies often feel that they are conservative organizations so they don’t want to get involved in social media because it’s so new.

Greg relates the story of a meeting with a very major bank.  The CMO said we see that Huff Po is very involved with social media, but we’re a conservative organization.  We don’t want to get involved with this new social media stuff.  Greg then yells at him, “I’m paying your salary because you went broke!  You can’t say you’re conservative when you gambled and your company went belly up a year ago! People are talking about you every day online and if you don’t get involved you can’t do anything about it unless you get involved with it.” (what a wonderful opportunity)

It is clear that negative comments make a major difference.  Especially when you are honest with people when you make a mistake.  When you embrace it, be authentic and be honest with the consumer it can pay in a big way.

Two key words to use in guiding involvement- permission and relevance.

Greg talks about a conference when he was told at a social media conference that they would tell the audience to not Tweet or blog during the conference.  He said, “are you crazy?  If you tell them not to do that, they’ll only do it more!”

Q: Why with TV is demand down, volume up, and pricing up?

One reason is that people are more conservative in the recession.  Another reason with the recession is that viewership is also up with more people staying home and watching more TV.

Some clients are negotiating flat CPMs across all platforms, online, broadcast and cable.  Where typically online video is costing more than broadcast TV.

One issue is that online advertising (any type) is not generating in store traffic in a predictable way.  With TV and Radio you can predict with a specific spend in dollars you will get a specific lift of in store traffic.

Reach, frequency and GRP’s model on the web is broken today.  And if the TV advertisers come to digital with the dollars they are used to spending with TV, the digital marketplace is unprepared.

If you believe the audience view figures for TV people would need to come home and watch 2 hours every night and 8 hours per day on Sat and Sun to match the numbers for the average viewer.  Ad agencies all know this is B.S. and we don’t believe it.

In 2011, clients are looking to protect their market share.  This leads them to digital for two formats, search and display ads.  You can’t do only one type of ad.  Both are required to make an effective campaign.

Display advertising is still suffering from lack of convincing metrics so some people still don’t believe it’s effectiveness.  But most major clients understand that a good plan has both types.

Digital used to be the last line in the budget and it would get cut first.  That phase has ended, clients now feel that digital advertising is essential and will not any longer delete it from the budget.

“Whole Funnel Thinking” – the idea that various forms of advertising are much better and more effective in different phases of the purchase funnel.

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