Believing The Hype: In Defense Of Social Media Marketing

 

Earlier this week, Mediapost came out with an article entitled "Social Media Fails to Manifest As Marketing Medium, Report Likens Twitter To TiVo: More Hype Than Reality". According to analysts from Knowledge Networks, "social media is having a profound impact on the way people connect with each other, but that it's not becoming a very meaningful way for people to connect with brands, or advertising promoting brands." While I understand where they're coming from, I have to say that I disagree heartily with many of the assumptions and statements made in the article, for the following reasons:

1.) Knowledge Networks separates word of mouth advertising and social media. I find this to be a serious error, because most interactions in social media consist of word of mouth. Main example: crowdsourcing. People looking for any product— a restaurant, tax accountant, hotel, even a pair of shoes—often crowdsource on Twitter, Facebook, and Tumblr. Last week, I was trying to decide between Jet Blue and Virgin America for an upcoming flight to Los Angeles. I polled my Twitter followers, and received an overwhelming response that Virgin was the right choice (including a response tweet from Virgin America itself). Largely because of this, I ended up choosing Virgin. If that's not a powerful example of word-of-mouth, I don’t know what is.

2.) It seems to me that Knowledge Networks is looking at social media marketing as an end-all and be-all solution-- in a sense, giving in to the hype that they claim is the problem. I think it’s the wrong attitude. Having a presence in social media isn't about shouting at your target audience to "buy! buy! buy!". It's about being there for the consumers who want to reach you in the environment where they feel most comfortable—like having another webpage. If someone is looking for you on Facebook or Twitter and you’re not there, it’s a huge opportunity loss.

3.) I also take issue with the notion that because Twitter is used by the “coastal digerati”, it some how loses value as a markting tool. Sure, Twitter may not be used by a lot of suburban late adopters, but that doesn’t mean it isn’t really valuable. In fact, there are entire brands who are desperate to reach the elusive upscale, tech-heavy, urban consumer who spends a lot of time on Twitter. As I’ve said many times before, social media is not one-size-fits-all. Brands need to consider whether or not their audience is using these tools extensively enough to merit an investment—just like any other medium.

4.) I think that, overall, this is a correct statement: " Twitter is less a way to directly reach customers, and more a way to reach passionate voices who may influence perceptions of your brand." The problem with the way that this statement is phrased is that I feel that Knowledge Networks' analysts are discounting the immense value of those passionate, brand perception-affecting users.

Social Media is a fairly new phenomenon, and as such, it's going to take a while for everyone to understand how exactly marketing is going to fit in as part of the equation. However, I find it to be short-sighted and premature to wholly discount social media as a marketing tool so early on in the game.

Hyatt's New Twitter Concierge

On Monday, Hyatt's CEO announced their new Twitter strategy - a concierge-Twitter service @HyattConcierge. As of the time of writing this blog post, they have 1,211 followers (including me). 

So what's this service about? Just think of an online concierge at your service 24/7 ready to answer your travel questions and requests before, during, and after your stay. You can ask for restaurant recommendations near the hotel, schedule a massage appointment, and more.

I think it's a spectacular idea. A hotel concierge listening and actively helping its guests (and even potential guests). It's more convenient to just send a tweet (via a mobile device, app, or the web) than to pick up the phone and dial an 800 number. And you can also view the @HyattConcierge public timeline to see if your questions have already been answered, or if you need ideas.

Other hotels that have a Twitter account to tweet everything from room renovations to responses to customer inquiries to rate specials include Marriott (@MarriottIntl), Tablet Hotels (@TabletHotels), DoubleTree (@doubletreehtls). What makes Hyatt Hotels Twitter account stand out amongst other hotel chains' Twitter accounts is the understanding of the use of different Twitter accounts. There are several Hyatt Hotels Twitter accounts - one on a specific chain location, one on Careers, and one for their Concierge. As what our Social Media Manager, Kate Miltner, has pointed out in last week's BDI roundtable, your Twitter account can't be a one size fits all. People may tune out, or even feel spammed. If your business is a large company, you need to create a different Twitter account for each type of product you have. For example, one for PR, Customer Support, News Releases, etc. 

Read more about Hyatt and their Twitter: http://content.usatoday.com/communities/hotelcheckin/post/2009/05/66927973/1

Seniors Getting Down with Facebook?

So is Social Networking maturing?

Abbey Klaassen and Beth Snyder Bulik write in their Ad Age Article (http://tinyurl.com/c7e347): “While social networking used to be the domain of the under-30 crowd, its use among older adults is skyrocketing. As of January 2009, more than 50% of Facebook users and 44% of MySpace users in the U.S. were over 35 years old, according to ComScore estimates. The single biggest age demographic in the U.S. on both Facebook and MySpace is between 35 and 44. Indeed, Facebook says its fastest-growing demo is 55-plus.”

I'm hearing the question more and more these days. Isn’t Facebook just for the young kids?

Well, everything comes of age, including myself. Now even I am on the cusp of the ripe old age of 37, which puts me in that 35+ category when I fill in online forms, and perhaps more importantly when I sign up for the rec basketball league at the NYSC. And of course right smack in the middle of this facebook question.

At the ironically named, AdAge Digital Conference in NY recently, Sheryl Sandberg, COO of Facebook told the audience that older generations are some of the most rapidly growing segments of Facebook and a common question she fields at events is, "how can I get my kids to be my friend on Facebook?" (You can review our Tweets from Ad Age Conf. twitter.com/FlightpathNY with #aadigi)

Fortunately, when I got started on Facebook, my son became my very first friend. But I had to hoodwink him into it by telling him my boss made me get into facebook because I needed to know it for work. I’ve since been friended by a few of his buddies (we all talk a little friendly trash) but I can recall the comment from his girlfriend at the time: "How could you friend your DAD!?#$%."

And I have to admit, when I first got on Facebook and I friended my son, I thought I was very hip. Then more and more “friends” came streaming in. As my dear friend and colleague Ryan Kitson wrote in his blog post To Friend or Not to Friend (http://tinyurl.com/cddo4d), sometimes it's hard to determine who is and isn’t a “friend.”

And then I got to wondering about who my own friends are on Facebook. My HS “friends” are definitely on Facebook. My younger family is there and active, my parents are not there yet (at least I don't think they are), and then there is my hoops crew. Only a few of them are on Facebook.

 

The over 35 Hastings-on-Husdon hoops group is a little social network of its own and we recently got to play hoops in Madison Square Garden to celebrate one of our member’s 50th birthday! Now that I think of it, the invitation for this party unlike most of the others I’ve received lately didn't come out on Facebook. Nor have the pictures been posted on Facebook to my knowledge….yet. Don't get me wrong, guys, I'm not calling you all seniors!

I’ve heard 40 is the new 20, so that means I can look forward to lots more hoops and lots more Facebook. And next year when we play at the Garden we’ll have to send the invite and post the pictures on Facebook.

How BofA Courted Their Way onto My iPhone

 

The very thought of seeing advertising on our mobile devices is scary and feels completely intrusive. Last week I was sitting at work being productive and one of those menu guys walked through the entire office making sure to put one menu on each desk. Out of the corner of my eye I saw him getting closer and closer until the moment came when he placed a tri-fold menu right next to my keyboard. Now at this point I was thinking, how the heck did this guy get in here? Then it occurred to me, I will never eat at this guy’s restaurant. 

When brands or companies try to forcefully engage consumers they are destined for failure. For some reason advertisers think that because they can be in the face of consumers that somehow through the magic of “digital” they will be hypnotized into purchasing. Google revolutionized the click through model by at least placing ads that relate to something you might be interested in. Maybe one of those ads might actually be what you were trying to find and it allows online retailers to compete for business. 

So how can advertisers get into the mobile space without being intrusive? In the mobile space utility is key. Whether you’re waiting in front of the dressing room at H&M playing Coldplay’s TapTap Revenge or trying to find the address of the closest public bathroom using Sit or Squat (sponsored by Charmin), advertisers are starting to find new opportunities for engagement within our daily lives. 

The New York Times has a wonderful mobile app for the iPhone that allows you to customize the categories of the news you like and for all of us who commute on the subway each morning, news content is saved locally to the phone for offline reading. The catch is that there is a small adverting space toward the bottom of the screen. The space is small and actually not intrusive when you are reading. In the print industry we have been accustomed to using this commercially funded model for the past 200 years. 

Now there is a new kid on the block that is starting to understand how to capture an audience in the mobile space. As the banking world’s image is faltering, Bank of America is beginning to gain customer loyalty through its investment into mobile banking. They are beginning to understand that just being seen is not enough to win customer loyalty, but by providing utility you can become an integral tool in the daily life of consumers. 

BofA was one of the first banks to enter the mobile space when it launched its mobile banking website in 2007. According to a recent article in Adage entitled, “Consumer Control Brings Brand Loyalty to Bank of America”, BofA was also the first to launch a banking app for the iPhone, which is still the most downloaded banking app to date. Understanding the shift toward mobile productivity BofA also developed a similar mobile banking app for the Google G1. Approximately 8% - 10% of BofA’s mobile baking users are new to the bank, suggesting that the ability to bank mobily was an influencing factor is their decision. 

The BofA iPhone app  allows customers to access their account information, transfer funds, pay bills, and the most useful in my opinion is the ATM locator. The UI is very clean and uncluttered, which is refreshing since the design of most financial websites seems to be lacking in general. All of these banking tools without the hassle of standing in line at the bank! This application is honestly very helpful and it’s reassuring to know that I have all that control with me when I am away from my computer. BofA has finally realized that if they can provide a useful user experience, that feeling will in the end help promote a positive perception of the brand. We all know that the positive user experience does not happen while you are actually standing in line at the bank. 

Bank of America has begun to reinforce its brand image not through the use of traditional advertising (though they have promoted their mobile apps through TV commercials), but by positioning themselves as a tool in the daily life of consumers. The BofA banking app has earned itself a front-page spot on my iPhone, so each time I look at my home screen I see that shiny red BofA icon staring back at me. Unlike the menu guy who just waltzed into the office uninvited, Bank of America has opted for the wine and dine route. I hope this shift in mobile advertising is not just a trend. To all you brands and advertisers out there, if you would like to get onto my phone please do not email, or jump out at me, just make yourself useful.