I've been hopscotching Europe this week, seeing clients and colleagues in London and Istanbul — but my thoughts have been in Los Angeles, where in a couple of weeks I'll be giving a speech called "Taking Social Media From Cool To Critical" at the 2012 Forrester Marketing Leadership Forum.
I chose that topic because it’s a concern I hear almost every day — and sure enough, I heard it from several clients on my travels this week. "We’ve put time and resources into social media marketing, because it seemed like we had to, but . . . it’s just not having much of a business impact." By comparison, four or five years into the era of search marketing, most companies were making a killing from their SEM programs. The same goes for email marketing. But here we are four or five years into the era of social media marketing — and for many companies, social media is still a curiosity, a sideshow that attracts lots of interest but adds little value. It's still cool, but at most firms, it's just not a critical part of the marketing plan.
I think the main reason marketers still struggle to make social pay is simple: They overestimate social media as a marketing tool. Let me be clear: I'm not bashing social's value for marketing; social media can have an enormous impact on the success of your marketing programs, as we’ve seen time and time again. The point I'm making is that it can’t create that success all on its own. You need to use it as merely one tool in your marketing tool kit.
The following is a guest post by Senior Research Associate James McDavid:
When tweets from Katie Price (aka Jordan, a British glamour model) talking about the recently released Chinese GDP figures and the potential effects of large-scale quantitative easing on the liquidity of the bond markets began appearing in my Twitter stream early this week I was a little surprised. Not entirely shocked (I "accidentally" read her autobiography and she’s undoubtedly a smart cookie and a successful businesswoman) but certainly a little confused. Had her account been hacked, had she decided that what the UK really needed was a new Iron Lady and that she was up for it? A few tweets later all was revealed when Katie tweeted a picture of herself holding a chocolate bar as part of the Snickers campaign, "You’re not you when you’re hungry."
Our London-based Interactive Marketing Research Associate James McDavid chimes in with this great tale of how listening to and embracing your fans in social media can create powerful word-of-mouth marketing:
As every dance music aficionado knows, Miami is the place to be every March as it hosts the Winter Music Conference (WMC), an event that brings together leading lights from the industry to party, share records, and make fun of Paris Hilton. So when Dutch airline KLM announced they'd be launching a new route between Amsterdam and Miami at the end of March 2011, a couple of Dutch DJs tweeted KLM to see if the airline could move the flight forward a week to coincide with the WMC. The DJs claimed that they could fill a flight from Amsterdam to Miami solely with revelers and ravers. KLM, seeing a great opportunity to show off their social savvy, offered the DJs a challenge — if they could get 150 people to register in seven days, then KLM would move the inaugural flight forward — and, as a bonus, let the DJs spin some records in the cabin.
The Groundswell is now global. Social media has entered the mainstream in every single market Forrester regularly surveys — and in most of those markets, social media use is at 75% or higher. Australian, Japanese and Italian online users all show stronger adoption of social media than Americans do – and Chinese, Dutch and Swedish users have nearly pulled level with the Americans. And in 2010 Facebook reported that more than 70% of its active users were outside the US, while Twitter said more than 60% of its accounts come from outside the US.
The simple fact is that if your company has a social media program, that program is global — whether you want it to be or not. And this isn’t just a nuisance or a language issue. Failing to recognize the global nature of your social programs means you might be telling foreign users about products that aren’t available in their countries (for instance, Toyota UK reached more than 100 million people with a fantastic blogger outreach program for its iQ model; but it turns out that more than 95% of those people live in countries where the iQ isn’t for sale). Or you may be advertising discounts and promotions to which many users don’t have access (for instance, while Amazon’s Facebook page promoted a special price of $89 for the Kindle last November, a Kindle cost almost twice as much in the UK — and wasn’t available at all in most other markets). If you work in a regulated industry like financial services or pharmaceuticals, you risk running afoul of government regulators.
As some of you might know, I'm quite an active twitterer. Earlier this month, there was a lot of discussion on Twitter about how unique we all were. Why? Because only a very small percentage of people actually tweet regularly. Forrester's Technographics® data shows that only 11% of US online consumers tweet monthly, while more than 84% say that they never tweet.
So who are these “tweeps,” and why are they so attractive to marketers? As one would assume, people who tweet monthly or more display many characteristics of early adopters: They are more educated, more likely to own a smartphone, more likely to be male, and more likely to have a higher income.
What really makes them unique, and at the same time very interesting for marketers, are their attitudes:
I've always loved examples of the crossover between online and offline influence; my 2009 report The Analog Groundswell contains some of my favorite examples of that overlap. Our new London-based Interactive Marketing Research Associate James McDavid is here with the story of how Smirnoff brought social media into the real world -- and how it had a bit of fun in the process:
The weekend of November 27th saw the culmination of a multinational marketing campaign by Smirnoff that showed the extent to which a clear, well-executed social media strategy is able to drive engagement with a brand across multiple regions and interactive channels.
Using Facebook pages and Twitter accounts, Smirnoff asked fans and followers in 14 cities (such as London, Rio, Miami and Bangalore) what made the nightlife in their city unique -- and then wrapped all the best elements from each city into shipping containers and delivered them to other host cities. Smirnoff posted a steady stream of Facebook status updates asking fans to say which city they’d like to exchange with. The company also made videos showing the shipping containers being filled -- as well as videos of the parties to celebrate the crates' departures -- and posted them to its YouTube channel. Once the crates arrived, Smirnoff threw the parties in its new locations, with its fans and attendees generating even more content and sharing it online.
Are you interested in business intelligence, wonder about the future of the analytics market or have a question on advanced analytics technologies?
Then join the Forrester analysts Rob Karel, Boris Evelson, Clay Richardson, Gene Leganza, Noel Yuhanna, Leslie Owens, Suresh Vittal, William Frascarelli, David Frankland, Joe Stanhope, Zach Hofer-Shall, Henry Peyret and myself for an interactive TweetJam on Twitter about the state of advanced analytics on Wednesday, December 15th, 2010 from 12:00 p.m. – 1:00 p.m. EDT (18:00 – 19:00 CET) using the Twitter hashtag #dmjam. We’ll share the results of our recent research on the analytics market space and discuss how it will change with new technologies entering the scene and maturing over time.
Business intelligence is the fastest growing software market today as companies are driving business results based on deeper insights and better planning, and advanced analytics is the spearhead of BI technologies that can untap new dimensions of business performance. But what exactly is ‘advanced’ analytics, what technologies are available and how to efficiently use them?
Much more detailed information can be found in the blog of Forrester analyst James Kobielus who will lead us through the discussion during the TweetJam. Above you see an overview graphic listing the different elements of advanced analytics today, taken from his blog.
Here are some of the questions we want to debate during our TweetJam discussion:
What exactly is and isn’t advanced analytics?
What are the chief business applications of advanced analytics?
Something amazing has happened to social media in the past couple of years: Overall adoption of social technologies has effectively reached saturation. We're now at the point where more than 80% of US online users engage with social media - and although there's been some hand-wringing over the fact social media adoption has plateaued at that level, let's keep things in perspective: 80% engage with social media! That's as many people as own a DVD player or use SMS.
This kind of scale gives marketers the potential to generate reach through social media. Sure, it's a new and unfamiliar kind of reach for many marketers - rather than just shouting uniform messages at millions of people, they must engage directly with their audiences and then hope those audiences turn around and talk to and influence millions more users. But as we've proven, this new model of reach can also provide the same kind of massive scale that the old reach models did: Just a tiny handful of Mass Connectors will create 256 billion influence impressions in the US this year.
On September 15th between 11am-12pm EDT Forrester held an interactive TweetJam on the future of cloud computing including Forrester analysts Jennifer Belissent, Mike Cansfield, Pascal Matzke, Stefan Ried, Peter O’Neill , myself and many other experts and interested participants. Using the hashtag #cloudjam (use this tag to search for the results in Twitter), we asked a variety of questions.
We had a great turnout, with more than 400 tweets (at last count) from over 40 unique Tweeter’s. A high level overview of the key words and topics that were mentioned during the TweetJam is visualized in the attached graphic using the ManyEyes data visualization tool.
Below you will find a short summary of some key takeaways and quotes from the TweetJam:
1. What really is cloud computing? Let’s get rid of 'cloud washing!'
Have questions about cloud computing and the top challenges and opportunities it presents to vendors and users? Then join us for an interactive Tweet Jam on Twitter about the future of cloud computing on Wednesday, September 15th, 2010 from 11:00 a.m. – 12:00 p.m. EDT (17:00 – 18:00 CEST) using the Twitter hashtag #cloudjam. Joining me (@hkisker) will be my analyst colleagues Mike Cansfield (@mikecansfield), Pascal Matzke (@pascalmatzke), Thomas Mendel (@drthomasmendel), and Stefan Ried (@stefanried). We’ll share the results of our recent research on the long term future of cloud computing and discuss how it will change the way tech vendors engage with customers.
Looking through the current industry hype around the cloud, Forrester believes cloud computing is a sustainable, long-term IT paradigm. Underpinned by both technology and economic disruptions, we think the cloud will fundamentally change the way technology providers engage with business customers and individual users. However, many customers are suffering from "cloud confusion" as vendors' marketing stretches cloud across a wide variety of capabilities.
To help, we recently developed a new taxonomy of the cloud computing markets (see graphic) to give vendors and customers clear definitions and labels for cloud capabilities. With this segmentation in hand, cloud vendors and users can better discuss the challenges and benefits of cloud computing today and in the future.