bursting social media bubbles final final

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Time for Maturity in Social Media Augie Ray Director of Social Media Prudential

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This is my keynote presentation from the 2012 PR & Social Media Summit. My decks are not produced for download but to be presented. With layers and animation, they tend not to stand alone very well as a SlideShare deck rather than presented live with the talking points. Still, I hope you find this deck useful and interesting. Key points: - The time has come for us to throw away the simple concepts (or "bubbles" that we continue to rely upon in marketing PR and social media. - For example, if the consumer is in control, then social media cannot be a marketing medium. The data presented demonstrates why. - Social CAN be a marketing medium, but it's really a marketing medium. Meanwhile, the consumer may be more in control than ever before, but they don't foot the bill in social media, which give brands and social networks power. Neither of the first two bubbles is completely correct--we need to pop both, bring them together, and recognize that social is a medium for value, not messages, and brands need not fear empowered consumers but work mutually with them. - The next bubble to be popped is the insane chase for fans and engagement of any sort. We explore the way Facebook EdgeRank works and why it is useless to collect any fan via any means. Instead, focus on fans that have built-in affinity (or the potential for it.) If you don't have affinity, your content won't appear in fans newsfeeds, and that means you become invisible. - We explore Progressive's fan page for Flo, which looks like a success but all those fans and all that engagement couldn't help protect Progressive from its recent social media reputation event. The lacking ingredient is brand vector--moving consumers closer to the brand and not just collecting engagement for engagement's sake. - The next section of the deck explores the "social media crisis," a term that is thrown around much too loosely, As demonstrated, brands like United, NBC and Bank of America suffered from highly visible social media crises, yet their stock shows no sign of damage. - We need to stop being alarmist and over-selling the "social media crisis." Yes, these are significant events, just like a broken bone is a significant event--but no one calls a broken bone a crisis. As professionals, the time has come to prevent, manage and minimize social media crisis just a a doctor treats a broken bone, without the added hysteria of treating everything like a "crisis." - Lastly, I remind people to get out of the industry bubble every now and then. I use a "mom rule" (but your rule may be a "uncle rule" or "grandma rule"). By using this persona, it helps me to evaluate the things that will rapidly catch on (Pinterest, for example) from those that won't (Google Plus.) If you have questions or feedback, please let me know.

TRANSCRIPT

Page 1: Bursting social media bubbles final final

Time for Maturity in Social Media

Augie RayDirector of Social Media

Prudential

Page 2: Bursting social media bubbles final final

@augieray #prsms

Social Media is aMarketing Medium

TheConsumer

Is InCharge

Page 3: Bursting social media bubbles final final

@augieray #prsms

Social Media is aMarketing Medium

TheConsumer

Is InCharge

Source: 2012 Nielsen Global Trust in Advertising report, 28,000 Internet respondents in 56 countries

Page 4: Bursting social media bubbles final final

@augieray #prsms

Social Media is aMarketing Medium

TheConsumer

Is InCharge

71% watch more time-shifted TV

than they did a year ago and 96% fast forward through

DVR ads.

Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5897 Participants

Page 5: Bursting social media bubbles final final

@augieray #prsms

Social Media is aMarketing Medium

TheConsumer

Is InCharge

Source: 2012 IBM Institute for Business Value Beyond Digital Report

Page 6: Bursting social media bubbles final final

@augieray #prsms

Social Media is aMarketing Medium

TheConsumer

Is InCharge

51% of consumers expect that a “like” will result in marketing

communications from brands...

But 40% do not believe it should result in marketing

communications.

Source: Exact Target, Subscribers, Fans & Followers Study, 2011

Page 7: Bursting social media bubbles final final

@augieray #prsms

Social media is a medium

where value is

exchanged and relationships are created mutually.

Social Media is aMarketing Medium

TheConsumer

Is InCharge

Page 8: Bursting social media bubbles final final

@augieray #prsms

The Value ofFans and Engagement

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@augieray #prsms

More Facebook FansFewer Facebook Fans

Quick Survey: Fewer Facebook Fans More Facebook Fans

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@augieray #prsms

More Facebook FansFewer Facebook Fans

Quick Survey: Less Engagement More Engagement

Page 11: Bursting social media bubbles final final

@augieray #prsms

Look! A Fan Surge!

10/2266,353

11/19159,577

Ban

k T

ran

sfe

r D

ay

10/20 10/23 10/26 10/29 11/1 11/4 11/7 11/10 11/13 11/16 11/19

170,000

160,000

150,000

140,000

130,000

120,000

110,000

100,000

90,000

80,000

70,000

Page 12: Bursting social media bubbles final final

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Adv

ocat

e L

oyal

cus

tom

er

Act

ive

shop

per

B

logg

er/J

ourn

alis

t

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ccas

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l Cus

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P

rosp

ect

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mpl

oyee

Ven

dor

Reg

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or

F

reeb

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eeke

r

Sw

eeps

take

r

Con

test

Hou

nd

C

ompe

titor

Dis

grun

tled

cust

omer

Det

ract

or

A

ctiv

ist

All Fans are Not Created Equal

High Value Fans Low Value Fans

+$ -$

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∑ Ue We De = Success

The Simple Facebook Equation

Fans to the power of Affinity

Affinity between user & edge creator

Weight for this edge

Time decay factor for edge

FansA *

Page 14: Bursting social media bubbles final final

@augieray #prsms

Adv

ocat

e L

oyal

cus

tom

er

Act

ive

shop

per

B

logg

er/J

ourn

alis

t

O

ccas

iona

l Cus

tom

er

P

rosp

ect

E

mpl

oyee

Ven

dor

Reg

ulat

or

F

reeb

ie s

eeke

r

Sw

eeps

take

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Con

test

Hou

nd

C

ompe

titor

Dis

grun

tled

cust

omer

Det

ract

or

A

ctiv

ist

All Sources are Not Created Equal

Earn PayEarn

• Product & Service Experience• What you stand for• How you conduct business

• Product & Service Experience• What you stand for• How you conduct business

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∑ Ue We De = Success

The (Slightly Less) Simple Facebook Equation

Fans to the power of Affinity

Affinity between user & edge creator

Weight for this edge

Time decay factor for edge

Brand vector

FansA * * b

Page 16: Bursting social media bubbles final final

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Look! Lots of Engagement!

Company #4

Company #3

Company #2

Company #1

0% 20% 40% 60% 80% 100%

Use/Choose/Recommend

Switch

Not use/Drop/Not Want

Total Insurance Conversation Volume by Brand

Percentage of Social Media Conversations by Topic

Page 17: Bursting social media bubbles final final

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Progressive’s Fan Success4,501,045 likes 52,530 talking about this∑ Ue We De * =

SuccessFans to the power of Affinity

Weight for this edge

Time decay factor for edge

FansA *Brand vector

b

Affinity between user & edge creator

Page 18: Bursting social media bubbles final final

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The winner isn’t the brand with the most fans or engagement.

It’s the brand with the most valuable fans having the most meaningful engagement.

Page 19: Bursting social media bubbles final final

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The Disastrous Social Media Crisis

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7/6/09: Video posted7/7/09: 150,000 views 7/9/09: 500,000 views 8/09: 5 million views2/11: 10 million views

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@augieray #prsms

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• Set the record for most-watched television event in US history.

• Earned higher average prime-time audience than the Summer Games in either Beijing or Athens.

• NBC anticipated losing $200 million on the games but instead broke even due to higher-than-expected ratings and ad revenue.

Page 23: Bursting social media bubbles final final

@augieray #prsms

Page 24: Bursting social media bubbles final final

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Bank of America reversed the debit card fee!

650,000 new credit union members!

Credit unions earned $4.5B in new deposits!

Page 25: Bursting social media bubbles final final

@augieray #prsms

Six months after fee announcement…

BoA stock up 55%, outperforming DJIA 280%!

Average deposit balances up $25 billion in Q4!

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cri·sis noun \ˈkrī-səs\

an unstable or crucial time or state of affairs in which a decisive change is impending;

especially : one with the distinct possibility of a highly undesirable outcome.

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The Social Media

IndustryBubble

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Social Media Echo Chamber

BlogsTwitterersResearch

NewsAppsFeedsNews

GroupsConferences

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The Mom Rule

Would my mom do this?

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The Mom Rule

Would my mom know this?

Would my mom act on this?

Page 31: Bursting social media bubbles final final

@augieray #prsms

Keep popping bubbles or

someone will pop them for you.

Keep blowing

bubbles—the

world needs

more

bubbles!

Page 32: Bursting social media bubbles final final

@augieray #prsms

Thank You

Augie Ray@augieray