Here are all of the posts tagged ‘Charlene Li’.
Mobile internet has grown immensely in 2009 and according to the latest TrendsSpotting report it will be at the heart of social media in 2010:
Mobile social media
In the report, David Armano says “mobile becomes a social media lifeline”: on the basis that nearly 70% of organisations ban social networking in the workplace, mobile internet will be a lifeline for addicted workers and what was once a cigarette break could turn into a social media break.
Dan Zarella predicts that with the rise of augmented reality, the border between the web and reality will become increasingly blurred.
As people trust other people online when it comes to forming an opinion about a product or service, the growth of the mobile internet will mean this increasingly occurs at the point of consumption. Imagine you’re in a shop, hesitating between two vacuum cleaners. What do you do? Do you ask the salesman or you check out independent consumer reviews via your mobile?
With the development of geolocation apps, this principle also applies to restaurants, bars, hotels, etc.. You’re travelling to Paris for business, you’ve just finished your meeting in a neighborhood that you’re not familiar with and you’re looking for a restaurant to have lunch? What do you do? Check out the reviews of the local brasseries on your mobile on Yelp, of course.
Social media goes up the agenda of organisations
The good news is that in 2010 companies seem to have plans to invest seriously in social media. According to BizReport, social media is a priority for marketers: more than half of respondents (56.3%) had planned to include social media in their marketing mix.
This is in line with the TrendsSpotting report where many social media players talk about the growing importance of social media for organisations.
According to Charlene Li, “social media will become part of everyday lexicon for business in 2010″ while for Adam Cohen, “Social media gets smarter”: companies will start using social media more strategically.
For Connie Benson, “social media will shift from being experimental to metrics and the loop will be closed so that social media monitoring is necessary and actionable”.
David Armano highlights that as of today, very few organisations have used social media beyond campaigns. He uses Best Buy as a benchmark of a company that has really managed to leverage social media strategically (Robin wrote about Best Buy and social media a few months ago).
David Armano goes further by predicting the mass adoption of social media policies in companies in 2010: specific rules of engagement across different social networks, rules on how employees’ participation in social media.
I agree with David. This year, companies will understand the importance of investing for the long term in social media rather than just on specific campaigns – as Robin put it, “stop campaigning and start committing”.
What was already important for brands in 2009 becomes crucial in 2010: listening to and participating in online conversations as they have a real impact on people’s opinions. Even more so now that Google and Microsoft have incorporated the real-time social web at the core of their search algorithms: Today, when researching a brand, you’ll surely find tweets about it.
Already this year Pepsi has dropped its Super Bowl advertising spend (after 23 consecutive years) to invest in social media in 2010, which implies these predictions may have some weight…
So, here’s the big one, does spending on social media really pay back? A fresh MBA graduate from MIT, Niki Gomez, passing through London and We Are Social on her way to Mumbai, gives her views.
At last, a study quantifies what many of us felt must be true, that social media does translate into increased sales. As Violette mentioned last week, a study by Wetpaint and Charlene Li’s Altimeter Group shows an extremely strong correlation between engaging in different social media and earning higher revenues. The study looks at the engagement of top 100 brands from the 2008 BusinessWeek/Interbrand Best Global Brands report and ranks them from 1 to 127, based on how they use social media channels. It finds that the top brands with their rankings in brackets are:
- Starbucks (127)
- Dell (123)
- eBay (115)
- Google (105)
- Microsoft (103)
- Thomson Reuters (101)
- Nike (100)
- Amazon (88)
- SAP (86)
- Tie – Yahoo!/Intel (85)
The most engaged brands experienced revenue growth in 2008 of 18% whilst the least engaged brands experienced losses of negative 6% over the same period.
Also interesting is that only arguably half of these are internet companies. The study categorizes the brands, a la Malcolm Gladwell, into mavens, those heavily engaging in 7 or more channels, such as Starbucks and Dell; butterflies, such as American Express and Hyundai who engage with seven channels but with less engagement; selectives who engage in six or less but do some on a deep level such as H&M and Philips; wallflowers like BP and McDonalds who engage with six or less but with a light touch. My question was whether social media pays off because of lower marketing spend, as there is a shift from spending on more traditional channels. However it seems, revenues, actual sales are up on previous years, even boom times!
Their findings conclude that it is not how many social media channels you use, but how deep that engagement is: so being social pays, but it’s the quality rather than quantity of these conversations that seems to triumph yet again. So, please think before you tweet… a good piece of advice for brands and individuals alike.
Twitter is on every lips at the moment: tales of towering growth battle with news of celebs twittering the night away while the rest of the world learns about worldwide events on their Tweetdeck.
So it’s not a very big surprise that the latest marketing campaigns all use Twitter: yesterday Andrew McCormick of Revolution Magazine mentioned the creative WB Harry Potter Twitter campaign, while US TV show Dollhouse has decided to promote the release of the series on DVD with “Twitter-enriched banners”.
It’s no wonder that entertainment brands are particularly active (and successful) on this front. Entertainment is by essence a very social activity, a powerful way to identify and connect with your peers. So when your key-target happens to be Gen Y or early-adopters who are more than likely to be thirsty for any kind of additional experience then the path is wide open to experiment with all sorts of social media tools and engage with followers. Interestingly enough they’re called fans and not customers.
TV shows and bands have been very active on that front, leading the community activation with Twitter character profiles, blogs, forums, online and offline games including ARGs (only last week fans of Muse managed to get the band’s ARG to the sixth most popular trends on Twitter). And when expectations are not met, the backlash can be pretty strong, with rumours claiming that Brüno is facing a box-office drowning due to calamitous Twitter reviews (Update: also see what effect Twitter had on Inglourious Basterds).
Social media activation by the entertainment industry acts as a magnifying glass of what’s happening elsewhere: there are lots of other brands out there, they don’t necessarily connect with their customers by creating a convoluted ARG but they engage daily with their customers, just as we do for Skype.
Charlene Li has just released her ENGAGEMENTdb report which analyses the engagement of company in social media and correlates it to financial performance. Some of the findings are very interesting, especially when analysing the scores by industry. Of course there are some justified reservations (Patricio Robles has voiced most of them). However what I would like to keep from this report is that no matter what solution is chosen, companies have to find the mix of social media that works for them.
Best pratices and reports can give an idea of what’s happening out there, set benchmarks and reassure shareholders, but in the end customers are out there, waiting to be talked to in a human way which will both improve their customer experience and with which they can identify (and not simply for financial reasons). So go out there and try it, you’ll see social media is not that scary
You’re going to be bombarded with lots of buzzwords in this post – don’t be put off. By the end, you’ll have a vision of the future of the web you never thought possible. Let’s start with Alisa Leonard-Hansen‘s presentation explaining portable social graphs:
They gives us a glimpse of what the next few years will bring in terms of the whole web becoming social. To quote Charlene Li:
in the future, social networks will be like air. They will be anywhere and everywhere we need and want them to be
We’ve already implemented Facebook Connect, allowing you to use your Facebook identity to log-on and post comments and for your Facebook friends to get told about those comments in their news feeds (when Gawker Media did this, user registrations were up by 45% and comments up by 16% compared to the previous week).
To really begin to see the potential for yourself, have a look at how The Insider is using it, JC Penney’s recent Beware of the Doghouse campaign or the early efforts from Vimeo, Brightkite and Eventbrite.
Our friend Faris, who’s in London this week from NYC (we hope to catch up for a beer), has written a review of Groundswell, which I’ve also been reading. He makes a point which could have been taken from our “why we do it” page:
Man is a naturally gregarious animal. It is the very essence of human beings: doing things together defines us. It’s why we have such large frontal lobes: modelling human behaviour in groups is recursive and quite amazingly complicated. I have to consider how what I do affects you and how that affects her and how that affects you and I, and so on, ad infinitum, a mise en abyme of cause and effect endlessly reflecting back on each other. It’s why we have language: it allows us to more effectively act in groups.
In a nutshell: we are social. Faris continues:
you need to know about this stuff. It’s not going to go away and it is going to affect your business. The very nature of advertising is changing in response to an audience that can create and propagate ideas.
We couldn’t agree more. It’s probably too late to order it from Amazon in time for Christmas, but in the meantime check out Charlene Li, one of the co-authors, who recently gave a talk at Google covering the topics in the book. It’s 45 mins long, but worthwhile watching, so get your favourite festive beverage and settle down to watch:
More importantly, as Faris says: “get out there and start being social” yourself.