Archive for April, 2013

Tap to call Home on Facebook – marketing prediction

For those of you who have not played with Home yet on an Android it really is pretty cool. It’s like a slide show of screensavers that are made up of your newsfeed. The posts are vibrant, alive and engaging. The ads are another story – no doubt they are sometime annoying. This is especially true (for me) if they are for some time-sucking game that fit into the following catagory: my locker neighbor from high school is spending all his time at working trying to get to the next level, and apparently needs me to be his Cato, or Hutch, or Joe Biden.  I know I am digressing about terrible game ads. But the ads do have a negative impact – right now. They will get better and brands had better pay attention. 

My prediction is that the biggest impact of Facebook’s new Home operating system is that   advertisers will gain an ability to enable immediate action. What is going to happen in the next six months is that home will have a click-to-call feature. 

This click to call integration will allow immediate tracking of sales conversion from Facebook ads and bring data collection into the stratosphere. It will also take away any buying friction that was existent in the old model. Brands can significantly optimize this if they make ads that don’t suck and if they allow user to take action.

My advice start designing ad programs that include click to talk capability and remember that using user-generated content has proven head and shoulders above everything else for driving engagement. This will be true for driving buying actions as well. In the next six or 12 months Home is where the money will be.

The best way to ensure ads on Facebook home and mobile are working is to make them subtle and leverage user generated content. Seeing something your friends are talking about is a lot more powerful than something a sales guy is talking about. So look for click to call soon on home and mobile and think of creative ways to collect user generated content at events, promotions, and sponsorship programs that already exist – that’s how to really drive ROI home.

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Facebook’s 20% rule – a little help from your friend

Many of you may know that Facebook relaxed it’s 20% rule for text on cover photos and posted photos. You can read the new Facebook 20% guidelines and see how they apply to you.

I came across a nifty tool to help you stay within those guidelines and wanted to share it with folks who are designing Facebook marketing programs to make your life a little easier. So follow this link to the Facebook 20% test tool. And enjoy.

Remember the most effective Facebook advertising has three attributes:

1. In the newsfeed

2. Subtle (think product placement)

3. Coming from user’s themselves (user generated content UGC)

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Social media marketing is all about giving (or taking) a shit

What is the ROI of building up fans? I spent a while with two big brands recently – one is in the top three of cruise ship industry, and the other a global exercise clothing brand. The cruise ship company had a $10 million Facebook budget last year to reach a goal of one million Likes (for those of you who failed math that’s $10 a Like!). The sports brand has a huge budget that they have used to expand into Facebook, Twitter, Pinterest and micro sites. Yet they had a rate of engagement on their Facebook page of less than 1%. So what is their ROI?

Back of the envelop numbers for the cruise ship brand suggest that they would have to sell $120,000,000 of cruises to break even on that investment. At an average cost of $4,000 a cruise – (which is probably way too high) they need to sell 30,000 customers. Did their million Facebook fans convert to 30,000 purchases? You’ll have to look in their annual report.

Both are building a fan base, and the athletic brand is building every flavor of the day it can find – with no regard for engaging in the right conversation for them. The conversation that is going to build brand and sell product. That’s the key – what is your brands right conversation platform and why? 

My award for using social media optimally goes to Charmin – yes the toilet paper company.

They picked the right conversation to be having which is going to build brand and sell toilet paper. They built a social app called sit or squat that shows you any where you are the closest toilet and it’s cleanliness. Then after you use that nearby outhouse you can rate it for cleanliness. That’s a brand that knows how to have a conversation and get an ROI from social media, no buts about it!

social app for toilets

Sit or Squat – Charmin’s Social App Wants to Know

What is your strategy to have th wright conversation which drives sales and builds brand?

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How much spend is in Facebook Mobile Marketing?

Yesterday, dwinQ’s Mike Kelley reviewed Facebook’s new Home solution for Android. I don’t have Home but you may and the first question most people ask is “What’s is it?” In a word it is the News Feed always-on. It makes your lock screen and start screens all about your Facebook News Feed. It also makes it easier to connect and communicate with friends on your device without leaving Facebook. Let’s ee if this aligns with how people are using Facebook today: 

Facebook Mobile marketing

Facebook usage on mobile devices


commScore estimates that Facebook consumes 22% of all mobile minutes. App analytics firm Flurry estimates that 18% of all mobile time is spent on Facebook. SO it’s easy to say that 20% of your time on your smart phone is used by Facebook. That volume aslo has a lot of frequency –  an IDC report indicates that smartphone users check Facebook 13.8 times per day. Not surprisingly, IDC also estimates that Facebook has pulled within 4% of Google for mobile display advertising revenue. (Does this make FB a good stock to  buy? I think so I owns a lot of shares.). We know directly from Facebook that News Feed placement is eight times more effective in user conversion than its other ad products.

Now we have the “rest of the story.” Users spend their time in the News Feed. The News Feed is becoming a valuable advertising channel. Facebook is changing the News Feed and making it persistent on mobile in order to drive more ad revenue.

Are People Persuaded by Facebook Ad Impressions

“Sponsored messages in your feed are changing your behavior—they’re getting you and your friends to buy certain products instead of others, and that’s happening despite the fact that you’re not clicking, and even if you think you’re ignoring the ads. This isn’t conjecture. It’s science. It’s based on a remarkable set of in-depth studies that Facebook has conducted to show whether and how its users respond to ads on the site… the findings show that people react to ads on Facebook in the same way they respond to ads on television.”

Facebook marketing effect on mobile devices

Image Courtesy of Action-Reaction Blog

I quoted this segment of a recent Slate article at length because it tells the story. When radio and television first emerged, it wasn’t clear how the new media of their day would make money. We now have decades of data that confirms how these passive advertising media influence audiences to take action. A similar data set is now emerging for Facebook. A recent study by Datalogix confirmed that 70 percent of 60 Facebook ad campaigns tracked had a 3x or better ROI and 50% rang up 5x.

Getting into the News Feed

The data shows that Facebook News Feed impressions drive consumer shopping behavior. The obvious question is: how can you get into the News Feed? Through Facebook you can now sponsor posts to your fans, sponsor posts to custom audiences and drive News Feed impressions. Beware that a recent Nielsen study showed that 33% of viewers held negative views of ads on Facebook so they have to be subtle. You must use this strategy judiciously and learn fro other industries like movies and TV where product placement has been uber-successful for companies like Apple.

Advertising in the newsfeed product placement

Advertising in the newsfeed

Another approach is more natural and leverages friend-to-friend marketing. At sponsored events you can facilitate consumers creating story posts of their onsite experiences that carry a brand message with the photo, check-in, game score or other interaction. These posts go to their timeline and show up (with your brand embedded) in their friends’ News Feeds. This is an entirely new way to drive greater ROI on your event investment to influence consumer behavior beyond the attendees. How are you leveraging Facebook’s emerging ad model?

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