David Gillespie has been burning the midnight oil producing this epic 260 slide presentation, which covers a lot of ground, including his thoughts about the ‘Intention Economy’, in an incredibly compelling way. As you’ll see from the opening slides, it has a particular resonance for us here at We Are Social. Over to him:

As I’ve mentioned before, measuring the ROI of social media on a campaign level is pretty tricky and as Sandrine pointed out a couple of weeks ago, companies may need to take a long term view in order to fully reap the benefits of social media.

However, in theory, working out the ROI of a social media programme is easy (assuming you’re measuring it over a long enough time period), as Olivier Blanchard shows us in this presentation:

Of course, there’s a lot more more to it in practice (even without resorting to econometrics, which is of course why our consultancy services may come in handy):

• In step 3 (slides 44-46), you should also consider measuring other things like:
  • Customer retention/loyalty (to understand why this is important, have a read of Chris Stephenson’s overview or his entire paper on the subject)
  • Net Promoter Score (see Paul Marsden’s study around NPS and how advocacy drives growth)
  • Brand equity (Andrew Sharp sharp gives a good overview of why you should be thinking about this).
• In steps 6 & 7 (slides 54-55) it’s possible there will be a significant lag between your efforts in social media and their potential effects so try to take this into account when looking for them

Social Media is a conversation. That seems to be one thing that we all agree on

Last week, Nathan, Sandrine, Leila, Simon, Seb and I went along to the launch of IPA Social, where Neil Perkin presented their 10 conversation starters:

You can read all 10 in full here (which I highly recommend doing):

1. Mark Earls – People not consumers
2. Le’Nise Brothers – Social agenda not business agenda
3. John Willshire – Continuous conversation not campaigning
4. Faris Yakob – Long term impacts not quick fixes
5. Katy Lindemann – Marketing with people not to people
6. Neil Perkin – Being authentic not persuasive
7. Jamie Coomber – Perpetual beta
8. Amelia Torode – Technology changes, people don’t
9. Graeme Wood – Change will never be this slow again
10. Asi Sharabi – Measure and evaluate

As the IPA’s President, Rory Sutherland says:

At a time when the population of Facebook is now greater than all but three countries in the world, and when BT is delivering customer service via twitter, this is an area which forces us to question many of our ingrained assumptions about advertising, brands and intangible value.

and from Mark Earls’ scene setting essay:

For all the excitement today around the Twitters and Facebooks, the tougher problems for the advertising industry to get to grips with are all rooted in the way social media – the stuff that connects humans with other humans – changes the game for our clients and society at large.

IPA Social is an admirable initiative, one which we’ll continue to participate in, and their 10 principles are an excellent overview of how brands need to come to terms with social media, representing the thinking of some the greatest minds in modern advertising (all of whom are good friends of ours). The launch event was also a great evening, focused on starting conversations rather than presenting a revealed truth.

However, it still was very focused on traditional ‘advertising’, with a large proportion of time spent hearing about VCCP’s Compare the Meerkat campaign. We split out into groups towards the end of the event and in the group I led, we discussed whether campaigns like Compare the Meerkat are really social media campaigns. Although the campaign has rich presences in social media, we’re weren’t sure that was a factor in it’s success. We felt it was the strength of the creative idea and the media spend at work here – and the fact that Oasis’ Rubberduckzilla has substantially more fans than Aleksandr the Meerkat on Facebook, despite no attempts to engage with social media helps re-enforce this point. It was felt that real social media campaigns are ones where the conversation itself drives the success of the campaign (like our This is Now campaign for Ford).

I also couldn’t miss joining in the discussion about which types of agency were best suited for social media. The point I made was as follows. Over the last ten years digital agencies stole a march on above the line agencies by building bigger, better and more motivated specialist teams. This let them innovate faster and develop a critical mass of best practise that accelerated the skills gap between them and their above-the-line competitors. Specialist social media agencies will do the same to digital and other agencies. To use We Are Social as an example, who else has a team of twenty experienced practitioners, entirely focused on innovative, creative and effective social media marketing and communications? Each day and each new hire widens the gap between us and those in pursuit.

Overall, I left feeling comforted that the specialist agencies’ lead in social media was safe for some time to come…

Another great presentation from Paul Isakson…

Hot on the heels of Wave 4 of Universal McCann’s Social Media Tracker, Forrester have just published their third annual Social Technographics Profile.

The exact stats vary, of course, but both studies confirm the overall trend of higher numbers of internet users spending an increasing amount of time in social media environments. The Forrester blog mainly comments on the landscape in North America, however Forrester’s Rebecca Jennings has a separate report looking at Europe. She notes in this excerpt:

Online European usage of social networks such as Facebook and Bebo has grown significantly — around 30% now engage with social networks regularly, up from 18% last year. Overall, more than 60% of online Europeans now engage with social media on a regular basis.

The Wave 4 Social Media Tracker report shows an increase in most types of social media activity, as the graphic excerpt below indicates:

The rapid growth in some types of activity has slowed as many markets reach saturation point, though there’s no specific stats for microblogging, or of bulletin board usage, which is heavy in many Asian markets.

Apparently we’re all uploading fewer video clips, though looking at the country spotlights, this seems to be based on a decline in the UK, Germany and Korea – emphasising how important it is to  consider local market differences when developing a social media engagement strategy.

However I’m not convinced this is a long term trend: as video-capable devices and mobile internet usage proliferates, it’s becoming easier to upload, not less (the quality of these uploads is another matter). Could it be the case that some respondents under-reported their uploading habits? What do you think about these stats?

Our friend John V Willshire has been developing the analogy that “if advertising is a firework, social media is a bonfire”. We think it’s a good one, and very useful for simply explaining the difference between advertising and social media.

And for our non-UK readers, you can find out more about Bonfire Night here.

Update: As a counter argument, read Asi Sharabi’s On bonfires and that.

Is Social Media a fad or the biggest shift since the Industrial Revolution?

From Socialnomics, where there are references for all of the stats used in the video.