SGW Blog

Social Media Budgeting

 

 

A recent report from The Altimeter Group asks the question: "How much should I spend on social media?"

They make three salient points. The first is that the amount you spend on social media depends entirely on what your social media strategy is. All too often, companies use social media to look "current" and feel that they should use lest they be called old fashioned. This is nonsensical. If you are going to use social media, find out enough about it from a pro and determine ways that will be most productive and effective for you to get the needed messages out to the right channels. Social media is also an excellent way to build your brand, in addition to knowing what your customers want and say about you.

The second point is that companies should invest in training their people on how social media can help the company or organization. A little investment here can go a long, long way. Their third point is to make sure you build a firm social media foundation based on a long term strategic approach. Regarding how much you should budget for a social media approach is something with which we can be most helpful. We may be able to even save you money in the long run...if you spend a little more in the short term planning stages.

What’s super about the advertising on this year’s Super Bowl?

 

Every year, I do media interviews on the subject of “Super Bowl Advertising.” This year is no different, except that I have more to talk about than whether the Clydesdales will be back.

For one thing, there is a lot of buzz about whether it’s the Year of the Women or the Year of the Automakers. With the appearance of Kim Kardashian for Skechers and Faith Hill for Teleflora (along with the regulars, Danica Patrick and Jillian Michaels, the Go Daddy Girls…and a new one to boot!), people will see more female celebs in Big Game commercials than ever before. More importantly, the new arrivals have been tested to be “crossover girls”, which means that they appeal to women viewers as well as men. I think it will be a big success and set a new trend for future spots.

As for the car makers, GM is back after two years with renewed vigor and sort of admitting that they were wrong to drop out in the first place. But, with the increased amount of advertising from American auto manufacturers, foreign car advertising will also be at an all time high split between cars made by Asian and German automakers.

As for the rest of the pack, look for the regulars to be back, the first-time appearance of Groupon (in the pre-Game show because they were too late to get into the Game) and the Doritos home-made spots. Lest we not forget, that famous beer advertiser will back as usual, taking advantage of their multi-year category exclusivity contract. As for now, let’s hope the Game lives up to the advertising!

Why hire a Corporate Social Strategist?

The world of social media has grown to the point where business is now dramatically getting into these sites for purposes of building “social commerce”.  Along with the growth is the rise of a new “C” level executive position called the Corporate Social Strategist.  The position is starting to become popular as a result of the fact that so many businesses and corporations have been too slow in getting on board with social media. 

The rise of social commerce gives advertisers new opportunities to anticipate, humanize and personalize the customer experience.  It takes a selective combination of the right social media outlets, key online linkage and blogging to develop the relationship in an effective and efficient manner.

The future of social commerce is clear.  More and more commerce is being promoted online than ever and there appears to be no slowdown in sight.  The main reason is that it is so economical and efficient versus traditional media, especially disciplines like direct response or DM/DR!

I think, however, hiring a Corporate Social Strategist may be a good idea but is perhaps a bit premature and expensive as well.  We have been providing this kind of social commerce planning and a social media “help desk” on a monthly fee basis that is very affordable for most businesses.  Obviously, my answer to the question at the top of this post is “Don’t hire now.  Outsource your social commerce planning and monitoring to keep your costs low while figuring out the right ways to use social media to grow your business.” 

 

 

Social media is not just in the news...it is making the news!

I recently read an article in The Crimson Hexagon which talks about social media in terms of being a newsmaker.  I couldn't agree more with the author's conclusions.  For example who can argue with the following statement?  "Now social media sources like the millions of Tweets posted each day are being mined for the actual news, trends and opinions that are becoming significant social, political and business headlines."  And for today's mid-term elections, more people have gone to social media sites to help get information about the candidates than anywhere else.

So, why is it still taking so long for so many businesses to get on board with social media?  Certainly, the numbers are there; and so, conseguently is are the efficiencies when compared to traditional media.  Some research studies conclude that B2B penetration is still somewhere around the lower 30 percentile level. 

I guess the answer is one of credibility.  Many companies and corporations still don't know how to use social media for commercial purposes, nor do they believe that business people use these sites to do business.  Well, they have to agree that businesses use these sites for valuable information about their industries and the competition.  They have to agree that no where can trend information be made available at low or almost no cost.  And, they have to agree that their competition can find out more about what they are up to without having to resort to industrial espionage.

It amazes me that the cultures of these companies and corporations can be so slow to adapt.  E-mail today ranks second to Facebook in written communications.  Over a half billion people have signed up for a Facebook account.  Plus, the fastest growth in signups is coming from people who are 40 and older.  I could go on, but the message I am making here should be pretty clear:  "Get social soon or you may not be invited to the table!"

 

 

 

 

Even the best of plans....

 
I was just about to began my class at Seton Hall's grad school of communications when the phone rang.  It was WCBS-TV's Late News Assignment Editor and it was about 6:45 PM when she called.  She wanted to know if I could go to their studios "right away" to do a segment on the announcement by Frito-Lay that they were eliminating their biodegradable packaging on five of their six SunChips flavors because consumers felt the bag was too "noisy".  I am not kidding.  It seems that what they refer to as their compostable bag which is environmentally friendly actually bothered people because it made so much noise when it was crinkled. 

I told CBS that I could do the segment, but that I had a class to teach and couldn't go to their studios on West 57th Street in time for them to do the taping and get it edited in time for the Late News that night.  When asked if I would be willing to do it from my classroom at 8:00, I naturally said I could.  And, that's what happened!

My class got to see the whole interview and now they think of me as a celebrity!  More importantly, this issue got a lot of attention, especially from a branding standpoint.  It seems some 44,000 folks complained about the noisy bags on Facebook.  The company said it was not the Facebook complaints but the great number of calls, letters and e-mails they received that made them decide to take most of those bags off the market.  You see, even it you are trying to do a good thing for your brand's image if something like the packaging (which has nothing to do with the main benefit of the product) can create tarnishment, you must protect the brand.  The decision was correct and it didn't hurt the company to issue a press release announcing that they will be working on a "quieter bag" to replace the one they have obviously had a lot of problems with from a marketing standpoint.  Amazing story, but true nevertheless.

 

 

The Best and Worst Logos Ever?

A freelance journalist contacted me to talk about logos, specifically not brands. He wanted to know what I thought the three best logos of all time are as well as the worst. Here’s what I told him:

Well, among the best logos of all time would have to be McDonald’s arches, the Mercedes Tri-Star in a Circle, plus Coca-Cola and Apple (with the bite marks). And, does one need to say anything more about the NIKE swosh? For my set of criteria as to what makes a logo stand out, I think the most important criterion would be memorability. If upon seeing the logo once or twice and I can remember it (and what it stands for), it’s a winner in my book. Of course, it should also be relevant, flexible, ageless and simple, but elegant.

Among the top of the worst heap is definitely the logo for Edsel. They did nothing right with that car from the start. The weird-shaped E with the name of the brand tucked more than half way down the letter did absolutely nothing to stand out. Occasionally, they used it without the brand name showing just the “E” with six (hard-to-count ‘em) circles around it. I never understood what the circles were for or why you would take the risk of thinking people would remember the car’s name from just the first letter. There are so many forgettable logos out there that it’s hard to comment on them. I do, however, appreciate it when a company has a not-so-great logo and decides to update it as AT&T did so well. It’s the “ageless” criterion that at times is hard to maintain, yet it has to be done without destroying the basic integrity of the original logo. Maxwell House has also done this well.

How do you think your company’s logo stands up to the criteria contained above?

Dallas is a strong brand, but look out for the double edge!

 

I recently responded to comments from a Dallas Morning News reporter about the double-edged nature of Dallas as a brand and what a branding expert would do to remove the negatives and build the positives.

My experience in trying to brand the state of NJ is somewhat akin to the question about Dallas. No matter what the tourism and commerce people in the state try to do in PR, advertising and social media to improve the image of NJ, it will never happen. How can the state's budgets and efforts overcome the power of "Jersey Shore", "The Sopranos", the NJ Turnpike, "Housewives of NJ", and on and on? The only saving grace is that when the brand image gets so bad, some people will think it has to be better than that or why would so many people continue to live there? At least, Dallas has the Cowboys. Our teams play here but they belong to New York!

The only way I can think of on the positive side and to prevent Dallas from sinking to a low brand image level is to link the city into the State of Texas, the great history of the Old West and The Alamo.

Whenever I go abroad and people learn that I am an American, I always get asked if I know any cowboys! Especially the ones from Texas. People (especially over in Europe) love the image of Texas and the big ranches and the gunslingers! So, my answer would be: "Onward with the past!"

Whither goest technology and marketing?

I was doing some thinking regarding new communications technology and how it may be affecting the marketing heads at agencies and elsewhere.

First of all, not many marketing people know much about technology software; or, for that matter, can't keep up with it if they try. The onslaught of social media sites, widgets, wikis, apps and rapidly changing software has obviously been somewhat overwhelming to marketing people in general. The effect that these new approaches has had on marketing budgets is also enormous. Marketing people, then, have had to approach technology with caution as a result. Certainly, metrics for monitoring and evaluation purposes and how they are derived have to be understood before a marketer will recommend a new tool or medium. The problem is the jury is still out on how effective all the new media is with regard to return-on-investment. Factoring in the lack of knowing the best ways to provide creative executions for some of these programs makes things just as critical. We are only at the early stages of so much untested, untried communications that it is difficult to learn more than one or two at a time in order to gain some insight and personal experience as to how to use them effectively and efficiently.

Most of what I have seen is that the tech guys are more aligned with the Web development groups than with the CMOs. This may not be a good thing in the long run since the marketing "generalists" can often be "out of the loop" on recommendations relating to marketing executions and strategic planning. Right now, if I had to say what the level of penetration technology has made into the world of CMOs, I would say it's more limited to the more popular social media networks and some basic mobile marketing approaches.

But, things will soon change as expenditures in non-traditional media keep growing at a huge rate (currently estimated to be over $2.0 billion. In short, change in this business was never swift…even when it had to be.

Are you really attending a "focus group?"

I never ceased to be amazed by the number of people who hink they know what a focus group is and when it is appropriate to use one. Many times, people will call a meeting of a group of people to "brainstorm." It is really nothing more than a meeting to discuss new ideas, yet they feel impelled to call it a "focus group." Researchers are beginning to be annoyed about the term's losing its original meaning which was to formally screen individuals having something in common for the purposes of creating a focused study to determine a specific result or set of results. Things like getting reactions to ads or websites, marketing promotions and strategies, and to explore new approaches are more common uses of formal focus groups. More importantly, these groups are tightly controlled and modified by professional researchers. The questions are written well in advance of the sessions and go through a formal approval process with the client prior to the actual group. Most of all, the information is private and highly confidential. Here are some occasions when a formal focus group is warranted:

• Generating new-product ideas
• Predicting new-product success
• Determining reasons for decreasing sales  
• Spotting product gaps
• Determining product usage patterns
• Evaluating competition, pricing, advertising & strategy  
• Pinpointing what and how customers/prospects think

Total confidentiality is afforded our clients since the location, moderator, questionnaire design, taping, and screening are all done in-house. There is no opportunity for the group information to “leak” nor is the mere fact that groups are being done known to the outside world.

So, the next time you hear someone calling an ordinary meeting to discuss a single topic called a focus group, be aware that using it in that manner is truly a misnomer.

How the Econonomy Is Affecting Brands

I'm working on a response to a branding/brand-licensing article for the April issue of Royaltie$ (a trade magazine that covers the licensing and intellectual property rights industry). The journalist is interested in the world of brands and branding.  He is focused on the current state of brands in the marketplace, what effects the economy has had on brands and how consumer opinions on brands may shift as the economy recovers. He also wants to cover the rise of private label during the recession.
As a professor who teaches branding at the graduate school level and as someone who runs a branding agency, I definitely have some thoughts on these topics. So here are goes:

1. Many brands are suffering in today’s marketplace either because there are insufficient marketing budgets to keep awareness levels where they need to be or because they represent the types of products or services that do not jibe with a weak economy.

2. Certain brands like Walmart have actually grown in this economy because they saw a brand positioning that was spot on. They talk to the public in terms of “providing excellent value” when people want it more than ever and they leverage their own brand by advertising well-known brands that they can offer at a lower price. Target has followed this lead and seems to be getting stronger as a result according to one of their buyers I spoke with recently.

3. As for private label, these products are price-driven and will always do well in this kind of economy. The question that should be asked is “Will they still be around after an economic recovery?” Some will, but most won’t.

Hope these thoughts help you in your marketing planning.