Back Talk: Do Celeb Endorsements Still Have Clout?

May 22, 2012

In 2010, a Deloitte study showed a whopping 82 percent of consumers say their purchasing decisions are “directly influenced” by peer reviews. In an era when marketers are forced to question the cost and value of celebrity endorsements, that’s a powerful number. Celebs ranging from Dan Marino (NutriSystem) and Tiger Woods (American Express, Gatorade, Nike, and more) to Jennifer Hudson (Weight Watchers) and Catherine Zeta-Jones (T-Mobile) have boosted brands with their star power. Yet, more and more, consumers are turning to less-famous faces for facts about brands and their products. The same Deloitte study showed that not only do consumers believe what they read online, they’re eager to share their opinions; 69 percent of those who read reviews share them online with family, friends or colleagues. Enter Klout, a social media analytics company that measures a consumer’s online influence based on data hulled from Facebook, Twitter and the likes. In less than three years, Klout has established more than 100 million profiles. Earlier this month, it announced it serves roughly 1 billion API calls — or third-party data requests — per day, 80 times the amount served in the same period in 2011. While there’s no doubt that celebrities — especially certain celebrities — can influence consumers, for marketers, Klout is a not-so-subtle reminder that the everyman carries, well, plenty of clout. By tracking data like how often one’s links are liked and shared or one’s tweets retweeted, Klout assigns scores ranging from 0 to 100 in terms of Internet influence. Companies like Red Bull have taken notice and are making use of the site’s version of brand pages, called Brand Squads, through which brands can offer influential Klout users perks, or gifts. Influencers who receive perks create an average of 30 pieces of content for said brand. Incidentally, only one person can boast a perfect Klout score of 100: Justin Bieber.

Maybe I’m just blogging out loud, but it seems like — Bieber aside — celebrity endorsements aren’t what they used to be. In the Age of Klout, marketers can — and should — identify who can help build their brands best.

Which prompts the question: In your mind, do celebrity endorsements still carry weight? Would you abandon them altogether for this new alternative?

Please leave a comment in the section below, or join the conversation on Vertical Marketing Network’s Facebook page.

Note: Blogging Out Loud will return on Tuesday, June 5, 2012. Happy Memorial Day.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.

Marketers, Get Ready to Tumblr.

May 15, 2012

Tumblr is home to approximately 55.5 million blogs, which average 16 billion page views a month. Last summer, the little-known micro-blogging platform quietly surpassed WordPress.com — host to blogs for CNN, the NFL and TED, among others — in terms of the number of blogs each site hosts; Possibly more impressive though is the platform’s growth rate: its user-base tripled in the span of one year, causing savvy social media brands such as the Ace Hotel and J.Crew to take notice. But it’s not only brands that are associated with trend-making and a certain youthfulness that have found success on Tumblr. So, too, have brands such as Huggies, IBM, the Economist and NBC Nightly News. Add to this the scores of celebrities (Lady Gaga and Katy Perry) and entertainment (Comedy Central, IFC and Sesame Street) and news brands (ABC World News, CNN Money Tech and NPR) jumping on the Tumblr wagon, and it’s understandable why marketers are falling for Tumblr. Despite this growth, Tumblr has remained opposed to advertising, until last month at Ad Age’s Digital Conference when Tumblr Founder/CEO David Karp mentioned an advertising platform. Perhaps it’s time for Tumblr to grow up even more?

Maybe I’m just blogging out loud, but it seems like a good time for brands to take a tumble. Tumblr mimics the pace of consumer culture in a new way, and it’s time to join the hustle. 

By no means, however, should brands abandon their blogs, Facebook accounts or Twitter feeds. Smart brands use each platform for related, but ultimately different reasons. The brands finding the most success on Tumblr use it to share information in different ways, which are largely visual. Consider this fictitious example using a fictitious brand of laundry soap:

vs.

vs.

Think of Tumblr as one part blog host, one part social network. Users manage what’s commonly called a “Tumblog”, and similar to Facebook and Twitter, there’s a feed-like stream of one’s own posts as well as posts from the Tumblogs they follow. Truly, it’s the content that makes one’s Tumblog unique. Successful posts are photo-driven and succinct, and Tumblr makes them easy to repost or share. With Tumblr offering apps for iOS and Android, be sure, people are. Whether that will change should the platform take on adverting remains to be seen. When Facebook and Twitter faced similar challenges, brand building continued to tumble along.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.

Back Talk: Will Web Video Kill TV Ads?

May 8, 2012

Is web video giving television commercials a run for their money? According to new data from Pivotal Research Group, the online-video market earned approximately $1.8 billion in 2011, and half of that involved just two players: Hulu ($300 million) and YouTube ($600 million). EMarketer anticipates the web video market will grow more than 40% annually for the next three years, but translating these numbers for advertising is a little more complicated. According to comScore, Americans watched more than 8.3 billion video ads in March 2012. Hulu led the pack with 1.7 billion video ad views (a 39% increase over last year), followed by Google sites — including YouTube — with 1.2 billion views. Yet some critics are questioning how many of these ads are actually viewed by the consumer. Nielsen estimates 56% of traditional television ads are skipped over using devices such as DVR and 63% of TV ads are outright ignored. Is it safe to assume the same is happening online?

Maybe I’m just blogging out loud, but it seems like with web video there’s more than what meets the eye. Online advertising may or may not be replacing TV, but it certainly is taking things to the new and exciting level.

Which prompts the question: Are TV ads becoming a thing of the past? Are web video ads now a viable form for communicating a brand, or will TV commercials continue to rule the foreseeable future?

Please feel free to leave a comment below, or head to Vertical Marketing Network’s Facebook page to join the conversation.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.

Marketing to and beyond Cinco de Mayo.

May 1, 2012

Here’s a fact worth celebrating: If the U.S. Hispanic population were a stand alone country, it would be among the world’s top 20 economies. Over the last decade, the Hispanic population in the United States has increased 46.3 percent to total more than 50 million, and it’s projected that U.S. Hispanic buying power will total $1.5 trillion by 2015. One in six U.S. adults is Hispanic, and Spanish is the third most-used language on the Internet. According to Nielsen, Hispanic adults are 25% more likely than the average U.S. consumer to follow a brand of on social networking sites; among U.S. social networks, Tumblr has the highest concentration of Hispanic visitors. While the upcoming Cinco de Mayo specifically commemorates Mexico’s role in the early years of the American Civil War, for marketers, it’s a holiday used to target and connect with this powerful demographic. A current partnership between Jose Cuervo, Tabasco and Tyson Foods is but one example of a holiday-specific promotion that will extend beyond May 5. Starting yesterday and running through June 29, consumers can use in-store coupons for discounts on all three brands. The promotion is being supported by Tyson’s Facebook page, where — upon “liking” the brand — users receive coupons and other discounts. One detail that caught our marketing eye: this Thursday, there will be a live-chat session with Tyson’s Deli Meal blogger in which she will offer Cinco de Mayo party tips.

Maybe I’m just blogging out loud, but it seems like marketers need to keep the spirit of Cinco de Mayo going year-round. With the U.S. Hispanic population and its spending power both on the rise, it’s foolish to ever stop the fiesta.

Another brand which regularly participates in Cinco de Mayo is Dannon, which will be distributing coupons and free samples this weekend at the Unified Grocers Cinco de Mayo festival in Los Angeles. With more than 100,000 people expected to attend, the festival proves a great opportunity for the yogurt brand to engage with the Hispanic audience. “The truly successful brands with Hispanic consumers are the ones that have ongoing activities that support the community,” explains Vertical Marketing Network Senior Account Director Nicco Mouleart. “They’re at festivals, they’re in stores, they talk to the consumer in their language.” Meanwhile, the Tyson campaign is smart to be Internet and social media-savvy. In 2009, 24 million Hispanics were online; that number is projected to jump to 39 million by 2014. Studies also show U.S. Hispanics are quicker than most to adopt mobile technology. The average Hispanic mobile user spends more than 20 hours per week on social networking sites, then there’s the typical smartphone uses of texting, making phone calls and surfing the web. Another study from the Pew Research Center’s Internet & American Life Project found both African-Americans and Latinos are more likely than whites to use Twitter, the booming real-time social network that boasts more than 140 million active users. With the entertainment category their top-ranking interest, it makes sense that entertainment often aids Hispanic promotional campaigns. “Entertainment is a huge passion for Hispanic consumers,” says Mouleart. “Unified Grocers understands that, which is why their event has been successful for so many years.

“The key is to having an ongoing relationship.”

Let’s market en español.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.



Back Talk: Is Location-Based Social On Your Radar?

April 24, 2012

Location, location, location. Pew Research now estimates 66% of online adults use social networking, and increasingly they’re using GPS technology to share their location online; 14% of online adults automatically share their location on Facebook and Twitter posts. And Foursquare currently counts more than 20 million active users. At Ad Age’s six-annual Digital Conference last week, we saw beverage powerhouse AB InBev tap the little-known social planning startup Wendr for a partnership on a mobile app called “Buds for Budweiser”, which will help users find friends to hang out with in bars serving Budweiser. Then, using Foursquare, users can alert other friends to their location and earn free drinks and discounts. Another location-based app making waves since SXSW is Sonar, which helps users connect not just to friends, but to friends of friends, by allowing users to filter the social networking information of nearby “strangers” to discover shared friends and common interests. The app is available for iOS, and a beta for Android was launched earlier this year.

Maybe I’m just blogging out loud, but it seems like location-based social allows brands be in multiple profitable places at once. But how do to we navigate the road map?

Which prompts the question: Is location-based social on your marketing radar? How do you intend to use it in your personal and professional life?

Please feel free to leave a comment below, or head to Vertical Marketing Network’s Facebook page to join the conversation.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.

5 Reasons Coupons Still Matter.

April 17, 2012

Coupon talk, for marketers, boils down to distribution and redemption, product trial, continuity and loading. So it’s encouraging that despite coupon distribution stagnating in recent years, coupon redemption has skyrocketed. In 2011, 3.5 billion coupons were redeemed in the United States. According to a recent report from Inmar, 2011 coupon redemption rates were up 6.1% from the previous year; since 2006, coupon redemption has increased 34.6%. Another study from Coupons.org claims 2011 saw a 63% surge in coupon use. Internet access and smartphone use are partly responsible, but so is the changing face of the coupon clipper. Coupons.org found that households earning $100,000 or more are twice as likely to use coupons as households earning less than $35,000. Similarly, college graduates are more likely to use coupons than high-school dropouts. Statistics such as these make a strong argument for the role smartphone technology and mobile apps play in coupon distribution. But the ways coupons reach consumers sans smartphone have increased, as well. FSIs are still the leading method of coupon distribution, but in terms of redemption, Inmar found FSIs account for 43.9% of coupons redeemed. In-store coupons and electronic checkout are making waves, and so is the consumer’s ability to print deals from home.

Maybe I’m just blogging out loud, but it seems that while discounts will forever change, with coupons “the deal” remains the same: everybody loves a bargain, no matter how it’s delivered. 

With that, here are 5 reasons coupons still matter:

1. Saving face — Along with the aforementioned shift in the demographics of coupon clippers comes with another realization: thriftiness is no longer taboo. “Because of the current economic situation, consumers have to be smarter when they’re shopping,” says Vertical Marketing Network Senior Account Director Nicco Mouleart. “Part of that is looking for deals, and taking advantage of deals that are available.”

2. Strength in numbers — Direct mail, electronic checkout, electronic shelf, handout, in-ad, in-pack, instant redeemable… The list goes on and on as to ways to connect to the consumer in-person. Add online and mobile access, and you get a sense that the possibilities are endless.

3. The online rise — 3.5 billion coupons were redeemed in the United States last year, up 6.1% from 2010. Since before the recession, online coupon use has increased by 360%.

4. Food still delivers – While coupons distributed for non-food items (186 billion) outnumber those for food items (approximately 125 billion), coupons for food see more redemption. FSIs are the leading distribution method for both categories.

5. “Click” is the new “clip” — In 2011, one in five smartphone users used mobile coupons — more than twice the percentage from the previous year.

While shifting demographics and more methods for delivery — both online and off — help keep coupons relevant to consumers, marketers will be challenged to create exciting and enticing promotions.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.

Back Talk: Is Instagram the Mobile Tipping Point?

April 10, 2012

Facebook’s announcement yesterday to buy Instagram for $1 billion is as good of an indicator as any of the future of mobile marketing. The deal comes on the heels of a busy week for the photo-sharing mobile app. Last week saw the release of Instagram for Android, and within 12 hours of that release, one million new users were snap happy. An estimated 30 million iPhone users already have the app, and CNET reports these users take and upload more than 5 million photos a day. These photos are displayed in a kind of visual Twitter feed, and Instagram users can link their accounts to Facebook and Twitter for easy sharing. But unlike Pinterest, the other photo-driven social network making serious waves, Instagram’s action is completely mobile; at its current growth rate, it’s poised to be the first formidable mobile-only social network. What Facebook has in store remains to be seen. Still, savvy brands and marketers are using the storytelling tool to engage consumers. Notably, Starbucks and Red Bull have tapped Instagram to share brand information and, in the case of Red Bull, even inspiration. General Electric recently ran a contest to find the company’s next “Instagrapher”. The prize: a trip to Wales to snap shots of an aviation facility. There were nearly 4,000 submissions. Even President Obama has an Instagram account.

Maybe I’m just blogging out loud, but it seems like photos are fast becoming the easiest way to socially engage. A picture used to be worth a thousand words. Now, it’s worth a thousand mobile followers.

Which begs the question: Is the shift from social media marketing to social mobile marketing coming on faster with the adoption of Instagram? So far, have any brands using Instagram caught your eye? How will you incorporate Instagram into your social routine?

Please feel free to comment below, or join the conversation on Vertical Marketing Network’s Facebook page.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.

What Does Social Media Mean for Marketers Now?

April 3, 2012

“Tossing up a Facebook page is not a social strategy.”
– Beverly Macy, renowned social media expert

Beverly Macy is a widely sought after speaker on the topic of real-time social media. She is the CEO of Gravity Summit, LLC, a leading social media advisory firm, and she teaches executive marketing courses for the UCLA Business and Management Extension Program. In addition, she is the author of The Power of Real-Time Social Media Marketing and a frequent contributor to The Huffington Post. Blogging Out Loud talked to Macy last week about the dawn of social media and what it means for marketers now.

You teach social media — a fairly new communication platform — for UCLA Extension. How did your course come to be?

In 2001, I began teaching at the Extension, and it was in 2006 that I saw a shift in our client base. I had a client ask me to research blogging and podcasting for them, and it really opened my eyes because there was a lot going on. For instance, Mayo Clinic had a podcast on iTunes. That was really revolutionary in 2005-6. In Aug. 2007, we launched one of the first social media marketing courses on a college campus at UCLA Extension. It focused on MySpace, blogging and podcasting, and a little about YouTube. We really knew something was happening because on a Saturday in August we had 75 people show up at 7:30 a.m. It was a tipping point. From there, obviously history took its course.

Who should take a course in social media?

I’ll tell you who does take it: individuals interested in personal branding. If you don’t have a digital presence, you’re not going to be heard. Also, product marketing managers. Who I wish took the class are chief marketing officers. I think there’s a huge gap between the line manager who’s getting educated and the people who control the money. They don’t even know what it means to “tweet.” I’m on a mission to educate the corporate office; the people who are making the decisions are not as educated as they need to be. My class launched 5 years ago, and now people are finally saying: “Maybe we should learn more about Tumblr.” Tossing up a Facebook page is not a social strategy.

What do you see is the biggest challenge facing social media users in marketing, and why?

There are two challenges. One is that the openness of social is often appalling to most companies. The idea that their consumer can talk back and have an opinion is intimidating, until they realize they can be guiding the conversation. That conversation is happening whether you’re in it or not.

The second is the ROI. How do we prove to the CEO that social has any value? How do they know if they are getting a bang for their buck? We’re beginning to have tools for measurement, because there’s a lot of great information out there, but there’s not a simple metric. The reason advertising works is people agree on the metrics. In social, we can prove it, but we all have to agree on those metrics. There are serious people thinking about analytics, which gives the industry hope.

How do you manage your digital life?

There’s certainly profile fatigue, from a productivity standpoint. The concept of engagement is about community in the beginning. Then, it becomes: “Now what?” There are management tools like HootSuite and Tweetdeck for tracking and monitoring, but who’s going to help us figure the prediction? This is the next job of the McKinseys and Forresters of the world. They’re going to give us processes the enterprise can agree on. In the meantime, I stay current the “old-school” way, by going out there and checking into Facebook and Twitter, LinkedIn and Pinterest streams.

I think the concept of location-based check-in will be fascinating — seeing where it goes. The exciting thing for the marketer is the data that sits underneath location-based social. How we get at the data and provide insight is the key. Managers want the “so-what.”

What do you want your students to take away from your course?

I’m not the person who says here are 5 tips for Facebook. I’m the person who says this is why you need to care. [Social media] is more strategic.

Businesses are realizing that social is sort of this new nervous system.

My social media class is not available online and I did that on purpose. I think there is huge value in being there in-person. I haven’t bought a newspaper or magazine in 5 years. I look at them digitally. All my new books are online, but I have hard copy books and I value hard copy books. I think television is going to go through a metamorphoses, and that Social TV is something to keep our eye on. The medium of broadcast is not finished by a long shot. I still rely on TV for information. I watch the local news, even though I can check the weather online. I also think radio and audio can be very relevant. And, of course, mobile is a new frontier. The way we consume information is increasing.

I do believe marketers should understand that social is one part of an integrated marketing plan. Don’t throw everything else away — make social complimentary.

“5 Questions For” is an occasional feature in which Blogging Out Loud interviews influential industry leaders on current and future marketing trends.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo: Marshall Stanton

Back Talk: How Do You Organize Your Digital Life?

March 27, 2012

Pew Research estimates two-thirds of U.S. adults online use social media, and marketers are an especially dedicated group; 93% of marketers use social media for business purposes. Facebook is really the tip of the iceberg. As of this post, the social media juggernaut counts more than 845 million active users. Add to that LinkedIn (over 150 million), Twitter (over 350 million) and YouTube (the second largest search engine in the world), and you get a better sense of the density of our daily digital diets. With newer social media darlings such as Instagram and Pinterest vying for our attention and micro-blogging on the rise, both consumers and marketers alike need to be organized. But how? RSS feeds are one way. And there are a slew of apps such as HootSuite and websites such as Flickr aimed at helping users streamline everything for status updates to vacation photos. But even those tools can overwhelm if not used properly.

Maybe I’m just blogging out loud, but it seems that there’s no time like spring to clean up your online act. An organized digital life is always in-season, and it’s key to personal and professional success.

Which promotes the question: With the abundance of options to engage online, how do you pick and choose? Do you organize your professional digital life?

Please add a comment below, or visit Vertical Marketing Network’s Facebook page to join the conversation.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: Stock photo

Mad Men and Wonder Women.

March 20, 2012

Once receptionists, today’s women work 55% of advertising jobs.

Women today earn 60% of college degrees, and they are the backbone of the U.S. labor force. As the critically acclaimed Mad Men begins its fifth season Sunday on AMC, we are reminded of the changes in the advertising industry and work style — from the heyday of fictional Don Draper and his counterparts at Sterling Cooper Draper Pryce, to today, when women comprise 55% of advertising industry jobs. Education and politics have played a role in making this happen, but so have scores of trailblazing women. Those of us who “remember when” are preparing for an all-too-familiar and bittersweet trip down memory lane. The style, glamour and swagger portrayed on Mad Men was typical in the 1960s. So was the dangling cigarettes and free-pouring booze! Yes, Mad Men accurately portrays it all, including the sometimes-demeaning treatment of women in the workplace. The ’60s were not an easy time for women who wanted to be part of what appeared to be the creative and exciting world of advertising. I found myself there, armed with dual degrees in advertising and journalism. I had top grades, creative awards, a portfolio of samples, an optimistic attitude and a fierce desire to succeed. But I quickly discovered that because I’m a woman, getting a copywriting job was going to be hard, maybe impossible. In those days, HR could actually say you weren’t going to get a job because they “only hire men.” Or this: “Your credentials are outstanding, but you might get married, or worse, pregnant, and leave us.” When I did finally get hired, it was with the caveat that I write copy while also acting as a receptionist (a la early Peggy Olsen). I’m proud of the fact that I greeted visitors for only a few months before one of my commercials was produced, and I was moved from the front desk to the creative department. I had arrived. Or, had I? I encountered the same treatment, frustration and challenges as Peggy. That’s the bad news. The good news is I lived to tell the story, and I have enjoyed a wonderful career in advertising and promotional marketing — as a copywriter, creative director, trend watcher, ideation facilitator, Executive Vice President and, of course, as Executive Director of Insights at Vertical Marketing Network.

Maybe I’m just blogging out loud, but it seems like the roles of women have come a long way in the world of advertising and marketing. Mad Men may be fictional, but plenty of real-life Wonder Women helped change the creative landscape.

Yes, the 1960s were a mad world, especially for women. That’s changed, thanks to the talent, perseverance and dedication of many smart, savvy and strong leaders, like Mary Wells Lawrence, the first woman to establish her own advertising and marketing agency (Wells Rich Greene), and Charlotte Beers, the first woman CEO of Ogilvy & Mather. Then there’s Shelly Lazarus, the current chairman of Ogilvy & Mather who’s credited with the signing of multi-million dollar deals with American Express and IBM. She was named one of the Most Powerful Women in the World in 2011. Thank goodness for trailblazers like Carol H. Williams, who began her career as a creative at Leo Burnett; she is now president and CEO of one of the largest independent ad agencies in the country and is considered a titan in the world of advertising. From the world of marketing, we’d be foolish not to acknowledge Estee Lauder, whose empire was created by understanding women and their needs, and by using the promotional technique of sampling to build her business. There were and continue to be many other amazing and successful women, such as: Lauren Hobart, former CMO for sparkling brands at PepsiCo; Maureen Sullivan, senior vice president of brand and marketing partnerships at AOL; Kathy O’Brien, vice president of personal care marketing for Unilever, North America; and Beth Waxman Arteta, CMO at JWT, NY.

Armed with education, ingenuity, intuition, earning and spending power, and the incredible reach of social media, women everywhere are having their say and making a difference in the business world. While Mad Men provides us with an entertaining glimpse into the advertising and marketing days of the past, women involved in the business today are a better barometer of where the community is headed tomorrow.

– Betsy Berman, guest blogger

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: Stock photo

Follow

Get every new post delivered to your Inbox.

Join 64 other followers