Category: marketing

  • The downside of social media marketing

    The downside of social media marketing

    Until last Sunday, Facebook was working well for jeweller Victoria Buckley; the page for her store in Sydney’s upmarket Strand Arcade was generating sales and had a rapidly growing fan base from around the world.

    One of the key parts of her marketing campaigns are porcelain dolls made by the Canadian designer Marina Bychkova. Her classic doll Ophelia features in the window displays, on posters in the store and on the shop’s Facebook page.

    Ophelia is a little bit different to most dolls in that she’s naked and anatomically correct — she has nipples.

    Last weekend Victoria received six warnings from Facebook about “inappropriate content” on her page. There was no indication of which images or text broke the rules or what would happen to her page if she took no action.

    “The frustrating thing is I can’t pinpoint which images” says Victoria, who goes on to point out that over the year she’s used Ophelia in her marketing, including two large banners in the busy shopping precinct, she’s received no complaints.

    “It’s all a bit arbitrary”, says Victoria “it only takes one anonymous person to click on the flag content button and there’s a problem”. Earlier this year her Flickr account was set to restricted because of Ophelia’s nudity.

    To avoid problems, Victoria has blacked out any potentially inappropriate parts of Ophelia on the store’s Facebook profile and started a “Save Ophelia- exquisite doll censored by Facebook” group until she can resolve the issue.

    But here lies another problem; she can’t find a way to contact Facebook. “It’s become an increasingly important part of the business” Victoria says of the Facebook page and “I just don’t know what’s going to happen to the site”.

    Right now Victoria has no idea what is going to happen to her business’s profile. As she can’t talk to Facebook, she’s uncertain of the page’s future.

    This uncertainty illustrates an overlooked issue with social media sites. All these services are proprietary, run by private organizations to their own rules and business objectives.

    In many ways, they are like private mall owners. They are perfectly entitled to dictate what merchants and customers can do on their premises. If you don’t like it, you have no recourse but to take your business elsewhere.

    As consequence these sites have a great deal of control over your online business, a lesson that’s been hard learned by many eBay and PayPal dependent Internet retailers.

    A good example of what can go wrong are the Geocities websites. Ten years ago Geocities was a popular free hosting site used by many micro businesses and hobbyists. Just over a year ago the now parent company Yahoo! shut them down and all the data on them has been lost.

    By relying another company’s Internet platform, you are effectively making them a partner in your business. That’s great while things go well, but you have to remember their business objectives and moral values are different to yours.

    This is why a business website is essential; your traffic and all your intellectual property is too important to sit on another businesses’ website with all the risks that go along with that.

    The lesson is that while using Facebook, Twitter and other Internet services are an important part of the business marketing mix, your business needs the security of its own website and all your marketing channels, both online and offline, should point to it.

    Fortunately Victoria’s across that, she’s pointing her Facebook fans to her website telling them, “You can join my independent mailing list at this link, in case they get really stupid and close this group.”

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  • Twitter is like CB radio and this isn’t a bad thing

    kids radioLast week’s Las Vegas Consumer Electronics Show illustrates the Hype Cycle we discussed just before the Christmas break. If there’s one thing for sure, we can say tablet computers, 3D televisions and Google phone are racing to see which will be the first to the “peak of inflated expectations”.

    Funnily, we’ve been here before with mobile phones, tablet PCs and 3D entertainment so it will be interesting to see where these are in 18 months or so.

    While it’s entertaining looking at the new gadgets, the interesting action is happening on the other side of the peak where real uses for technology and gizmos are found after the hype moves on to something newer and prettier. When the bored fashionistas move on from a product that’s no longer the newest and shiniest we see if something is genuinely useful or just a pointless fad.

    Of all the predictions we can make for 2010 one good bet is social networking is approaching, if not past, the fashionable peak of the hype cycle. Particularly Twitter which we’ve seen pronounced dead by various writers over the break.

    My favourite comment was from an weekend newspaper entertainment columnist stating the Twitter hype was driven by “Boring Old Farts Suddenly Discovering Technology” and the whole thing is now dead because an MTV host declared she was over Twitter. The Luddites are crowing that Twitter, Facebook, LinkedIn and the entire Internet thingummybob can join CB radios in history’s discount bin of overhyped technology.

    Citizens Band radio is a good lesson of what happens as a product moves through the hype cycle. In the mid 1970s peak, songs were being written about it and the media was awash with spookily similar stories of how CB radio was ushering in a new era of participatory democracy. Within a couple of years, the hype had passed and those who had a use for it, such as truckies, farmers and service people, got on with their work without the kids and newbies hogging their radio channels.

    Exactly that process is happening now with the various online networking tools. The naysayers will crow they were right all along about a fad for boring old farts while unknown to them entrepreneurs will be figuring out ways to make money from these tools and smart businesses will be using them to stay ahead of their slower competitors.

    As well as the trendies moving on, the social media snake oil sellers who’ve traded on the social media hype over the last two years will also move on to the Next Big Thing or go back to selling multi level marketing schemes. The honest consultants and genuine experts who survive the shakeout will be able to genuinely add value and help their clients achieve more with the tools.

    So a product or technology passing the peak of the hype cycle is an excellent opportunity to use it do great things for your business without the fashionistas and snake oil merchants distracting you. Don’t be afraid to experiment just because the PR machines and fashion victims have moved on.

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  • How marketing and business are interwined

    Entrepreneur magazine discusses changing your definition of marketing. Dan Kennedy has some good examples of businesses that have used tools such as membership and market positioning to grow, but I’m not sure they can be treated as marketing.

    All of the examples; Starbucks, Disney, Florida timeshares, barbers and gourmet pizza shops illustrate some great business models which is exactly what they are; ways of doing business that engage the customer and sell a better product.

    The marketing aspect is simply telling the story of why the business is better, unique or why it does something so well.

    One of the problems with marketing is it’s often about telling porkies, not about describing the product or why the business is unique. This type of marketing fails when the customer finds they’ve been sucked in.

    In the past, big brands have been able to get around this by using mass media to shout it louder and stronger on the idea that if you repeat the lie often enough, people will believe it.

    Marketing is part of your business DNA, you have to tell your story to get business. The key is to be telling a true story based on your product’s strengths.

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  • How the net is changing business

    We often talk about how the internet is changing marketing and distribution, but we often overlook just how fundamental the basic ways we do business are changing.

    Internet tools like social networks and the web itself are forcing us to be more honest, open and ethical.

    This occurred to me during the annual Cannes Lions International Advertising Festival a few weeks ago, where I was fortunate to go along and see how the advertising sector is dealing with challenges to their clients’ traditional marketing channels while a global financial downturn hits business.

    Microsoft CEO Steve Ballmer put the worst case scenario of the world economy resetting to lower debt levels with marketing spend declining faster than GDP, as newspapers and magazines vanish at the same time consumers tighten belts.

    Perhaps it was to be expected that Google CEO Eric Schmidt had the opposite view that Americans were too wedded to their credit cards to do anything else but spend.

    The marketing bosses of Proctor & Gamble, Kraft and McDonalds had a very different outlook to either of the CEOs. They saw online advertising growing, while print and broadcast spending stays static – the most quoted statistic was the net occupies 20% of consumer’s time while only 7% of budgets are allocated to internet marketing.

    A splash of cold water was from Kofi Annan and Bob Geldof who launched the “tck tck tck”, Time for Climate Justice campaign to get real results from the UN Copenhagen Convention in December. Their speeches were compelling and a reminder that some things are bigger than how much you spend online.

    Back in the online world, Twitter co-founder Biz Stone gave an entertaining talk on how Twitter came about and some of the possibilities for making money from the service (charging for richer data) but the best social media talk was from Kevin Eyres, LinkedIn’s Managing Director for Europe.

    Kevin’s key point is a business’s social media profile is just as much from what employees say on Twitter, Facebook and MySpace, as it is of customer’s comments and the efforts of the marketing team.

    This is spot on and shows just how broad the risks and opportunities are for managers and entrepreneurs.

    Modern management has to be honest and consistent – the days of hollow mission statements and empty commitments to customer service and equal opportunity are over.

    If you don’t hold by your principles then your customers, staff and suppliers will rat you out to the wider world. If you do hold by them you’ll gain respect and true followers.

    The final thing from the Cannes Festival was just how innovative and creative the world advertising industry is. While the prize winners were impressive there were many clever entries that changed the way you’ll look at marketing.

    Luckily, most of them are online at the Cannes Lions website, so have a look at the speakers and get some inspiration from the entrants. Don’t copy them though as you’ll probably be dobbed in on Twitter.

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  • Cannes Lions: Day Two

    Cannes Lions entryDay two of Cannes Lions continued the theme of  dealing with new channels with a big focus on digital and Internet possiblilites.

    One old channel using new technologies is the movies.

    The future of Cinema with SAWA was an entertaining session that showed how movie theatres are going to bring together various technologies to enhance the audience’s experience.

    These new experiences offer great opportunities for producers, studios and marketers and while naturally the audience were more interested in the marketing angles, it’s clear that everyone involved in movies will be focussed on how they can make these features work for them.

    Jimmy Mayman from Go Viral showed some of the successes in viral marketing, including T-Mobile’s Dance and Sing clips.

    I have to admit I was left cold by these examples. I’m not contrived flash mobbing events are even truly viral marketing as such.

    Monday’s highlight was one of Twitter’s founders, Biz Stone, discussing the future of Twitter to a full auditorium.

    The big news from the session was how Biz hopes to have a revenue based on advanced API functions for commercial users.

    This is an innovative twist on the “freemium” business model. Where individual users are subsidised by the sale of aggregated data to businesses.

    It will be interesting to see how Biz and his team deal with the inevitable privacy concerns that will be raised.

    While the session was promoted as a tweet-up, it was limited by the lousy Wi-Fi access in the venue. In fact it’s surprising how little a role Twitter’s playing in the event given how it’s being used at Australian events like the Future Summit and CeBIT.

    Wi-Fi problems illustrate just how event organisers are struggling with the demands of a modern market. It’s a theme we’re going to see continue.

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