Archive for December, 2007

The holidays are upon us and even those of us normally glued to our computers will be taking time to be with family and friends. On behalf of everyone here at Pandemic Labs we wanted to thank all of our readers and wish everyone a Merry Christmas and a Happy Holidays.

Merrily,
Brennan & Matt

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StopwatchThis weekend I had my first chance in a long while to see a movie. I arrived at the theater earlier than I had planned. I bought my ticket for “No Country for Old Men” and found myself roaming around the 16-screen multiplex with some time to kill. Naturally, I gravitated towards the arcade games, all corralled neatly into a corner across from the concession counter. I felt a bit out of place, my oldest compatriot among the games being no older than 13, but it wasn’t too long before I found myself seated behind the wheel of an old classic, “Cruisin’ USA.”

So now you’re wondering why you devoted 20 seconds of your valuable time to reading about my excursion to the movie theater. The answer is that I noticed something while playing Cruisin’ USA that had never occurred to me before. That is: the Cruisin’ USA arcade game is a perfect allegory for the race that is social media marketing. Don’t believe me? Read on.

For those of you not familiar with the territory, Arcade racing games are different from the kind of racing games that you have for your (or your kids’) Playstation or Xbox. In household console games, you have already spent all the money to buy them so they allow you to focus on the racing aspect. But an arcade game is dCruisin’ifferent, charging you only seventy five cents to start playing. Now, I realize that not everyone reading this has played a racing arcade game so I’ll break it down really simply. You put your money in, and you start to race. But at the top of the screen is a timer which counts down from, say, 30 seconds. Roughly 30 seconds away on the virtual race course is a checkpoint. If you make it through the checkpoint before the timer runs out then you get an additional 30 seconds to make it to the next checkpoint. So you see, you’re not just trying to get past the finish line before all the other racers, you are trying to complete each piece of the race course before the timer runs out. It doesn’t matter if you are in first place; if you don’t make it past the checkpoint before the timer runs out, you will have to put more quarters in to keep playing.

So how is this like social media marketing?” you ask. As social media marketers, we serve two masters. On one hand, we champion a new marketing zeitgeist, a theory of facilitation and consumer engagement rather than hard sales. But, on the other hand, we have clients who are trying sell their products or services and we must produce results. In order to do our jobs effectively, we need to think of the marketing process more like a Cruisin’ USA race, where we need to first focus on completing each section in time and then worry about winning the race. In reality, each consumer is an individual with many things to do on (and off) the internet. If they give us their attention we have to remember that we have it for only a short amount of time and, like Cruisin’ USA, we have to work hard to get through that checkpoint and keep their attention for a little longer. Let’s use a viral video campaign as an example.

  1. You have just finished producing a great viral video for your new client and you have put it out on the net. But people need to see it. Let’s say you have roughly 10 seconds to get to that first checkpoint where the people actually watch the video. How do you successfully get your consumers (racecars) past that checkpoint? Well, you need a great title, a good description, and great placement so that people want to start the race. As people start to watch it, they will ideally tell their friends about it and those friends will decide to watch it.
  2. So your title and placement was good and you got a bunch of consumers past that first checkpoint. You’ve piqued some peoples’ interest and now you have about 1 minute to get to that next checkpoint. This section of the race is the video itself. It has to be good. It must be compelling, funny, amazing, sexy, cute, or otherwise interesting enough that it holds peoples’ attention. If it’s not, then you’re going to run out of time, the game will be over, and those potential customers will navigate somewhere else. But your video is good, so you make it to that second check point with time to spare and you get another time bonus.
  3. Now you’ve got people interested and gained a couple minutes more of the consumers’ attention. This stage of the race is the website that is referenced at the end of your awesome video. It is a specially crafted landing page that helps bridge the gap between funny video and why the consumer actually needs to buy your product. The page has to do a lot of things and you only have about two minutes to keep racing. But your site is great and you get to that third checkpoint with time left on the clock.
  4. This is the final leg of the race as you head for the finish line. The customer has decided to buy your service or product, or donate to your cause, or sign up, or whatever you want them to do. You have gotten another minute time bonus to work with in order to finish the race. But, of course, the purchase/donation/sign up process on your site is easy and streamlined so your cross the finish line in first place and you have turned that potential customer into a customer. That consumer has chosen to give you their time and you have not abused it. You have won their attention at every stage. You have done your job as a social media marketer.

It truly is amazing how perfect of an allegory the Cruisin’ USA game is for the process that marketers must go through. Everything correlates:

  • You are the player sitting at the wheel, trying to do your best to get consumers to want to race with you.
  • The car is the consumer that you are trying to influence. You want to provide them with engaging marketing so that they want to line up on that starting line with you at the helm.
  • The course (whether easy or difficult) is the natural path towards your product.
  • The random cars and obstacles are distractions threatening to take the attention of the consumer.
  • The other racers are competitors trying to cross the finish line before you do in order to make you lose the game. They are doing all they can to steal your customers, take your market share, or otherwise ruin your perfectly good race.
  • The clock and the checkpoints are the constant reminders that you have to take the process one step at a time.

In the web 2.0 world, you don’t have influence over the consumer for an entire race and don’t have the luxury of driving them around however you please. In web 2.0, the consumer runs the show and you have to work hard, engage them, and earn their attention in many small stages in order to win the game. We all know that consumers aren’t just going to say, “Hey I have 15 free minutes, why do you try to sell me something.” When they stumble across your site, or get your video emailed from their friend, you have a very short time to earn their trust and attention and through the whole process you need to keep on pulling. You need to be racing the clock and the competitors at the same time in order to win the race and end up with a customer. It is not the easiest task, but it can certainly be made easier by visualizing the larger race as a series of stages and focusing on engaging the customer at each and every turn. Or as a wise man once told me, “take care of the little things, and the big things will fall into place.”

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Pandemic Labs co-founder, Matthew Peters, is quoted in an article published yesterday in the Wharton Business School magazine, “Knowledge@Wharton.” The article, entitled “Social Marketing: How Companies Are Generating Value from Customer Input,” discusses numerous aspects of the industry. The article is fantastic in its scope and detail, highlighting some great examples of the power of the use (and misuse) of social media, and discussing its evolution into mainstream marketing campaigns. We will try not to quote too much of the article here because it should be read in its entirety by any who are interested in social media marketing and viral marketing. However, we do want to elaborate on some points with which we strongly agree.

One point which find particularly poignant is from an April 2006 blog post of Charlene Li, vice president and principal analyst at Forrester Research:

“If you’re going to participate as a marketer in the social computing arena, you’ve got to have thick skin and be ready to engage in the messy world of your customers’ opinions. Marketers that have the guts to turn over their brand to the public will in the end win over their customers.”

We have all seen and read about the trepidation felt by marketers at that thought of losing some control over their own brand message. However, as we mentioned in our December 12, 2007 blog post, Are DVRs killing the commercial?, “Advertisers need to move away from a theory of interruption and embrace a theory of facilitation in order to remain successful.” The architecture of the internet has empowered customers with methods of product research and communication, and consumers are becoming decreasingly receptive to the old ways of advertising. Customer loyalty and respect will vastly increase for companies who facilitate the buying experience, rather than just “shouting” their message at as many people as possible. Marketers need to realize that the world where they control absolutely everything just isn’t going to work as well any more.

The article continues by discussing the importance of metrics and trackabilty in the social marketing industry. As Paula Amunátegui Perelló, project manager for new media at Switzerland-based General Motors Europe, says, “traditional metrics won’t do.” Pandemic Labs co-founder, Matthew Peters, is then quoted raising a point about the incorrect way many marketers are viewing social media possibilities.

“People come to us saying, ‘I hear viral video is cool. How do we do it?’ That’s funny, because if a company wanted to do a TV campaign, they wouldn’t walk into [advertising agency] Ogilvy and say, ‘TV is cool. How do we do it?’” The first question companies should ask themselves, says Peters, is, “‘What do I want to accomplish from this form of marketing?’ If you’re a non-profit who wants to drive an unprecedented number of people to a website to raise awareness and money for a cause, then you have a very different goal than a company that wants to strengthen its brand image. The metrics for both would be different.”

Again, we hope that you read the article in its entirety. Pandemic Labs is happy to have been a part of the article and we whole-heartedly agree with GM’s Amunátegui Perelló, when she says, “…social media is no longer a fad. It is a larger evolution of society.”

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Comcast remoteHow great does it feel when you are watching your favorite show and you can fast-forward through the commercials? If youh ave a TiVo or a DVR then you know exactly what I’m talking about. For the average TV watcher, the ability to tap a button and skip four and a half minutes of advertising is just about the greatest invention since the remote control. But, it’s not so great for advertisers, who have to watch helplessly as the efficiency of their advertising dollar decreases with each new DVR installed. The fact of the matter that DVRs such as TiVo or those that come with your digital cable or dish service are becoming more and more popular. Let’s look at some figures:

  • According to an October 27, 2007 report by Nielson, DVR penetration has grown to 20.5% of households.
  • A report released this month from ABI research says, “Almost four out of five TiVo customers and over 82 percent of service provider DVR customers said they skip all or most commercials.”

So if we put those two numbers together we get around 16% of households reporting that they skip “all or most” commercials. So the question now becomes, if advertisers are reaching 16% fewer consumers, are they paying 16% less for their ads? The answer: probably not. I bring this up because I think DVR proliferation is likely to continue in the years to come. When Nielson first began tracking DVR usage in January 2006, they reported DVR penetration at 8% of households. So it’s taken only about 20 months for DVR penetration to more than double. At this rate we could be looking at over one third of all households having DVRs by the end of 2009. This is fantastic news if you make DVRs, but disquieting news if you are continuing to pay the same amount (or even more) for your ad time.

Advertisers need to quickly realize that the “golden age” of TV advertising is coming to an end. I am not saying that TV isn’t still the dominant advertising format, but I think we are seeing evolutions in technology that are indicators of a coming shift. DVR proliferation will continue and that means fewer and fewer consumers will be seeing your really expensive spot during the first break of “Grey’s Anatomy.” In addition, the internet is becoming an increasingly popular source for entertainment, with nearly 60% of all internet users saying they watch online video, and new formats such as the webisode just now beginning to get off the ground.

I think it’s fair to say that we are headed for a world where the TV and the computer are no longer two separate devices, merely two functions of a single machine. With computer monitors looking more like televisions, and the interface of your Comcast digital cable looking more like an operating system, we are already moving towards that reality. Think about it, you can already get your TV, cable internet, and phone piped in over one wire…is my vision really that much of a stretch? If an advertiser hopes to remain ahead of the game, it is not enough for that advertiser to simply acknowledge the coming changes. Smart advertisers will begin to act on these changes, leaving those who refuse to utilize these new tools in the dust. Online video, social media, viral games, destination websites, even virtual worlds all present marketers and advertisers with ways to not only advertise to consumers, but to engage them. Advertisers need to move away from a theory of interruption and embrace a theory of facilitation in order to remain successful. Luckily for advertisers, the tools are already here and new ones are evolving all the time.

What remains clear is that companies and brands cannot afford to sit idle while the ROI of their TV ad dollars dwindles. An unwillingness to leave their comfort zone is not an acceptable reason for your marketing agency to refuse to add social media elements to your integrated marketing efforts. Once again, I am not claiming that these new online marketing services are replacing more traditional marketing formats, but they are absolutely a necessary element to an overall marketing strategy for any company that wants to engage their customers directly. Moving outside the box is the best way to see the world for what it is, and to those skeptics that are afraid to take a risk I say: you can’t surf on the back of a wave.

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My New Understanding of an Old Adage

Recently, Viral Marketing has seen some bad press. From the Jupiter Research report to the LA Times’ recent lambasting of Dan Ackerman Greenberg’s article, bad press seems to be an inevitable companion to this nascent marketing style. I have been ruminating on and reading reactions to Greenberg’s post since the original article on November 22 and concluded that, even though I disagree with some of his ethical decisions, my assessment of Greenberg’s post is less critical than most.

I would like to say that the reactions to Greenberg’s post were spread evenly across a wide spectrum of opinion. If I did say that however, I’d be an outright liar and the only purpose of my lie would be to set this post squarely in the middle of said spectrum. That would be a nice confirmation of my sanity and perspective, wouldn’t it? Even though about 400 of the 469 comments on his article were very negative, including one particularly harsh comment from TechCrunch Editor Michael Arrington, I’m going to go out on a limb and praise Greenberg for his efforts. Now before you unsubscribe, stop reading and otherwise write this post off completely, hear me out. I promise I won’t argue that he’s a good person.

Let me just say that even in my experience tracking successful viral campaigns, I’ve never seen anything permeate the online community faster than negative news. More specifically, I’ve noticed that news travels particularly fast when it’s perceived by the tech community as a direct threat to free-will and the transparency of online information. Regardless of the “don’t feed the trolls” meme that probably should have been the thrust of most of the comments on Greenberg’s article, I think Greenberg is sitting high and dry behind his one-page “corporate website” with a huge grin. Regrettably, I’m willing to bet it’s the kind of grin you only wear on those rare occasions where your most vocal enemies unknowingly fuel your success.

Hopefully I’m way off-base, but due to the robustness of his suggestions and the lack of content on his information-gathering website, I would bet the farm that Greenberg not only expected this reaction, but that he crafted, courted and planned for it. Moreover, and here’s the point of the whole post so tune in, I believe GreThe Long Tailenberg read “The Long Tail” and executed Chris Anderson’s secondary lessons therein to perfection to drive his business.

For those of you who haven’t read or aren’t familiar with the lessons in The Long Tail, please read the following four sentence book report: The old ideas regarding the size of a viable market are wrong now that the internet has changed the cost of accessing markets in general. Now it’s possible, and in many cases advisable, to sell to many micro-markets in aggregate that, in a brick-in-mortar world, wouldn’t have been accessible en mass but, thanks to the internet, now are. Secondarily, utilizing the vast reach of the internet to magnify one, previously minuscule, target market large enough to support your business, can be a successful tactic. Also, Amazon was a visionary and overall solid business idea.

To cut this rambling post to a very fine point: Greenberg harnessed the predictable online reaction to his viable (if arguably unethical) viral marketing strategies article as a way to instantly market his services directly to the executives who think this kind of success-at-all-costs marketing is a desirable quality. In short, in 2,400 words or less and zero capital investment, Greenberg spoke directly to his key buyers who, thanks to the immensity of the internet, probably number in the hundreds or thousands. I wouldn’t be surprised if the kid increases his company’s revenue tenfold by the end of the year from this one article (how much revenue would you expect a web-based company with no real website to have anyway?). If my predictions regarding his success are true, I’d be hard pressed to think of a more efficient use of marketing dollars in the past year.

While I disagree with some of the individual suggestions, my hat is off to the high-level strategy that Greenberg crafted and executed. It’s not too often that you can promote your business so effectively and make the general internet community look sheepishly naive at the same time. That said, I think this whole escapade and ‘The Long Tail’ provide a useful lesson that many marketers (including some of my colleagues) will refuse to learn due to their desire to be seen as nice (notice I didn’t write “desire to be nice”). The fact of the matter is, bad press creates a unique and powerful level of buzz and, if applied correctly, can be a fantastic marketing tool. It would seem to me that with appropriate viral campaign planning and a library card, the old adage can still hold true and bad press can simultaneously be great press.

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Ritz-Carlton is synonymous with luxury, and they like it that way. Unfortunately for them, it is also synonymous with stiff, stuffy, old rich people…and they don’t like that. But Ritz-Carlton is setting out to change that with an ambitious integrated media campaign that includes–you guessed it–a series of online videos. Now, the Ritz-Carlton isn’t exactly the first company you’d expect to adopt a high impact social media campaign at a time when many old-school sticklers still feel that viral marketing is just now breaking out of its experimental phase. But the Ritz is doing just that and it seems to me like they’re doing it right.

Ritz LogoEarly next year, Ritz-Carlton will release a series of three short web films showing young, wealthy people enjoying themselves at the Ritz in ways that will help break down the stereotypes of the Ritz as being old and formal, while at the same time reinforcing that the Ritz is at the top of the game in both service and luxury. The films will be presented on the company’s website, but Ritz will use a bevy of tools to promote them. According to the Wall Street Journal, trailers will be posted on sites such as YouTube and Yahoo and there will be film screenings in cities like New York and L.A. At this point I can’t help but be reminded of the BMW Films: Shorts films, internet distribution, featuring a product in an unexpected way, and mainstream media promotion as a catalyst for the online viral process. The Ritz films are supposed to be entertaining, with small plots and young actors showcasing the ‘new side’ of the Ritz.

The interesting thing is that the powers that be at Ritz-Carlton feel that there is a risk of alienating the hotel’s older, traditional customer base. But, I think that concern is ridiculous (hence the title of this post!) Supposedly, the average age of a Ritz guest is about 46. According to the PEW Internet & American Life Project, only about 50% of people that age watch online video. I would venture to say that older (than 46) patrons are the one’s that the Ritz is most worried about offending, but in reality, the older a hotel patron is, the less likely they are to watch online video, so it is not very likely to have a negative effect.

In reality, I suppose it is not quite correct to refer to this move by the Ritz as viral marketing. The films are supposed to range from 4-10 minutes in length and that puts them at the long end of videos that go viral. Depending on who you talk to, viral videos should be no longer than thirty seconds to three minutes. The subject matter of the films is also a concern. They are not exactly supposed to be laugh-out-loud funny, action-packed, or mind-bendingly amazing (for plot synopses, see the 11/30/2007 WSJ article by Tamara Audi). My final concern is that Ritz-Carlton seems to be neglecting the potential power of a more comprehensive use of the social media universe. Sure, they are planning on using a couple big video sites to seed trailers, but they need to think of the viral catalyst they could leverage if they were to seed the trailers (or even specially cut, “exclusive sneak peak” trailers) among 20-30 influential travel bloggers, forums and travel websites. With just a little more effort on their part and help from viral marketing specialists they could micro-target the trailers in order to reach a critical mass of buzz faster and help drive potential guests to their website.

But enough of my commentary. The fact of the matter is that these films represent an online media element in a larger, integrated-media marketing campaign. And that is exactly how companies need to start thinking. With the promotion the Ritz has lined up, the shorts should draw a lot of traffic to the Ritz website (which will hopefully have tailored landing pages for the younger crowd). Additionally, the use of social media outlets for the trailers will allow for potentially explosive viral spread. With proper execution, some micro-targeting, strategic seeding and tracking, and monitoring of the blogosphere, Ritz should be able to execute a very successful social media campaign that generates a lot of buzz and a lot of new business.

Sources:

  • Tamara Audi, “Ritz-Carlton Web Films Play Down Its Ritzy Image,” Wall Street Journal, 11/30/07
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