User-generated content. 10 tips for marketers.

Posted on March 5, 2008 by marc meyer

Web 2.0 has empowered online users like never before. Because of this, it has opened up and increased the desire for marketers to tap into this group to unleash the potential to virally market products and services to levels only dreamt of previously. Here are 10 things marketers need to be aware of as they dip their toes in the water.

The Sixth Estate-respect its potential

If the 5th estate is the broadcast media then the 6th estate is anyone with a computer. Think about it, the 6th estate is, at this juncture, online users; every day run of the mill online consumers who can and do, crank out information, opinions and content, without the fear of any type of backlash. They can say virtually anything online and find an audience for it. Marketers can never underestimate the power of the this user. Regardless of their lack of an audience, all it takes is one piece of media that no one has ever seen. So never discount anything or anyone’s potential content or group in marketing your product.

The Marketing upside for user generated content will never be greater, so what are you waiting for?

But within that forum for their opinion, their thoughts, and their comments, lies potential. Marketing potential. The marketing potential of user generated content has never been greater than it currently is. The marketing impact and influence that user-generated content has over people, products, ideas, and decisions has never been more valued and never been more underutilized. User generated content if positioned correctly, can create a viral buzz for anything. The reason for this is that the growth of social networks is growing at a pace that rivals and exceeds the dot com boom of the late 90’s. To be more sucinct, a new blog, it’s been said, is created every second. THAT means, that someone is creating content. A user is creating content that COULD influence others. If a marketer has not immmersed themselves in all things social media driven, now is the time.

Marketers think they know how to position themselves

For marketers, the challenge has always been how to leverage and push their product. One key is to take the leaders, the movers and the shakers of user generated content and have them buy in. Or you position a product or marketing promotion in front of “a group” in which they want to participate, they want to crank out content and they want to share it with their peeps. The marketer can dangle rewards and other incentives to do this, and that can work but… The reward or payoff for the user, is the desire to be noticed, or found, or be recognized for their efforts in creating some viral multi-media based piece of content that “may” take on a life of it’s own. YouTube is a classic example of this.

Marketers should know that all creators of UGC are secretly hoping and looking for their 15 minutes.

Those people who don’t have an audience yet, may be wanting to grow to online stardom levels seen by those who have cultivated their sites over time. Some great examples of this would be The Drudge Report, Shoemoney, Guy Kawasaki, and Seth Godin. All of these folks have a loyal and large following. With the ease that it takes them to crank out a piece on something they may like or dislike or mention casually, they can influence thousands of people, who then can influence thousand of others. Instant traffic and instant credibility to something that previously had nothing. Therein lies the potential that marketers salivate over.

Marketers could theoretically get to these influencers and have them, for a price, (bare in mind that everyone can be bought, don’t be so naiive to think they cant) pitch or promote a product, a service, a sight, or whatever and in turn it will, if it hasnt already happened, have a direct and immediate impact on the audience of that influencer. An indirect example of this is Google adsense ads sprinkled all over sites with high traffic.

Marketers need to be transparent

Within social networks for example, people who blatantly pitch a product can be looked upon has disingenuous, and thus will never be taken seriously. So a marketer needs to immerse themselves within a group and become more of an under the radar type of person who slowly and yet effectively influences the rest of the group. By doing this they gain street cred and legitimacy whenever they speak about anything. Thus, if they tell or mention or post about widget x rocking their world, then the rest of the group may listen. If marketer y comes right out of the blocks and says, “check out this kick ass product,” they’ll never get off the ground.

Marketers need to incent and leverage the group

Traditional online marketers look at social networks in a similar fashion, with the thinking, “I can market right to this captive audience”. And they are right! With some specific niche based social groups numbering in the thousands and within those groups are thousands more, marketers can tap directly into those groups who are possibly waiting or are ripe to be pitched with products, services and offers. If the pitch is right and the timing is perfect, it can be huge. To that end If a marketer can work with and enlist users of THAT group to carry the flag on behalf of a product, if they can get that user to become an evangelist of that product, then they will have hit the mother lode.

Marketers need to realize, it’s a marathon not a sprint

Although a new blog is created every second, a new blog does not grow its base overnight. It, like any social group grows over time. Marketers have the ability to drive traffic using specific and traditional means, but there still needs to be some meat on the bone, once someone arrives to the group and or the blog. And that does not happen quickly. Marketers have to acquire some street cred. They have to be able to establish a presence either under the radar or not. Social users have the ability to fact check more than they ever have and they do, thus the marketer needs to realize that. If they smell a rat, you are done. So stay cool. If the marketer paces themselves, the reward at the end will be recurring and not just a one time deal.

Screwing up is viral too

If you think success is great and viral and exciting; then keep in mind that if you mess up, if you wrong the consumer, then you can expect an equally as strong and viral reaction. With that failure or error in judegment comes a stickiniess and a refusal to forget that can kill a marketing campaign faster than bug spray. What’s more, with a users ability to fact check, they will to see if you have done something in the past that caused someone to post and vent online and complain. They will find it, and when they do, you and your marketing campaign or efforts will fail. You’re done. So in other words, the key to your future success is predicated on your online reputation and past. If you make a promise, you better keep it. If you have a made a promise, you better have kept it.

Know your audience and why they are creating their content

Marketers have to realize that the premise of all user generated content is that you have this person who wants to be seen or heard. You have to ask the questions: Why? What are they trying to get out of it? What is the purpose? Do they want a job? Are they venting? Do they want to be a star? A wannabe journalist? The more you know about your market, your audience and the reasoning behind their actions, the easier it will be to create a plan that will enlist their help, or incorporate their readers or audience into what you are trying to achieve. It may just be that all their user generated content is for entertainment and nothing more. It might be they are doing it, because they can. Which is cool. It’s merely up to you to figure that out.

You will never know as much as them, deal with it and then embrace it

You think you are on top of things, but you have no idea. Unless you have built the social site they are flocking to or you are immersed in their culture, you will never know as much as them and you will never fully know what they are thinking. So never pretend to, if you do they will bust you. Remember that with the user comes a sense of entitlement. Its the new culture. I’m going to get mine and I have a right to it. It may be why they think they should be a star. And you know that all might be well and good but remember, as a marketer the idea is to influence, and push ideas, products and services. It doesn’t mean you have to sleep with them, it just means you need to know that they think they know more than you do. They might and if they do, let them. Just learn, absorb, take it all in and then go get it! Give them what they need and you get to profit from their efforts.

Mobile, Social, and Search. Quick hits.

Posted on February 22, 2008 by marc meyer

In a quest to pare down my already slim posts, I’m going to fire off a couple of quick blurbs for everyone to chew on until the next post:

Aside from Microsoft not backing down in it’s quest to buy Yahoo, AT&T and Yahoo have entered in a multiyear deal to share revenue from advertising on Mobile phones. Yahoo will provide search and display advertising for AT&T customers. I’m shocked that Google did not get there first.
Speaking of Microsoft, the Wall Street Journal just cut a deal with them in which the WSJ’s paid search and contextual advertising services will be provided by Microsoft. Not to sound redundant but, I’m shocked that Google did not get there first…
Social media giants Facebook and Myspace will become application hubs and launch pads for niche based “smaller” social networks. Alot of this is the residual effect of Facebook opening its platform last fall.
Word of Mouth marketing is the new mode of marketing on the cheap. It’s also just as effective as traditional forms of marketing and has much more of a “buzz” factor.
Magazines drive more than 50% of online searches, followed by reading an article in a magazine and lastly by seeing something on TV.
According to Anderson Analytics, 32% of the 1700 marketing executives polled cited “Green Marketing” as an important emerging concept along with it being considered the trendiest marketing buzzword.
The hottest demographic that you need to be marketing too, but are probably ignoring are the hispanic and baby boomers.
According to Informa’s latest report entitled “Mobile Social Networking: Communities and Content on the Move,” the number of mobile social networking users exceeded 50 million, approximately 2.3% of the global mobile user population on December 31st, 2007

M-commerce will work…for Gen Y…for now.

Posted on January 28, 2008 by marc meyer

In the next 12 to 18 months analysts predict that m-commerce revenues will reach a half a billion dollars. Pairing that with almost 300 million wireless customers, “someone” is going to be buying something through their wireless device. The question is who is that person? Is it the Baby boomer? No, they are just becoming comfortable with their computers and shopping online. Is it the Gen X’ers? No not yet, although they will follow pretty quickly as soon as the cool and the perceptive ease of use factors rises to a palatable level.

The answer my friend lies in your Gen Y users. The 15-29 users who just so happen to be your biggest social network users as well. This is, by no means coincidental. It makes complete sense on a lot of levels but here it is in its simplest terms. This generation is so technologically saavy that buying “things” using their mobile phones is nothing more than another viable option for spending money, communicating with their friends and being in the NOW. It’s just another way to simplify their overly simplified “Me generation” entitled lives. It is a mere blip on the landscape that is their socialized technified world.

Not to sound bitter, and if I do it’s only because this generation can embrace a new technology so easily and so seamlessley that the projections for what kind of money might be generated might be underestimating the puchasing power of this group. The only way the numbers get pushed down is by overestimating the mobile purchasing power of a 15-19 year old who might not have a credit card to complete the transaction.

Gen Y users have 2 things working in their favor as well. 1) they account for almost a 100% ownership of cell phones and 2) have a purchasing power of almost $200 billion. Add to this the fact that this group has no problem accessing the mobile web with relative ease, and couple it with their comfort level in regards to their expectation that mobile web sites meet their demands, and you have volatile mixture of a captive audience ready to buy with expendable cash.

In the next 12-24 months, marketers, consumers and advertisers will need to look to Gen Y to call the shots in regards to usage numbers, trends, and expectations. As soon as Gen X and the Boomers see how well it works for Gen Y. Look for M-commerce to explode. Look no further than Japan for a classic example, where in the last year e-tailers rang up almost $10 billion in revenue from M-commerce sales.

Global search revenue will reach $60 billion by 2011

Posted on January 23, 2008 by marc meyer

As if Google and company did not make enough money, by years end, global search revenue will reach $30.5 billion according to a recent JPMorgan report which hinted that investors still should view the web as a good “buy” or investment.

Contrary to the dot com bust of the early 2000’s, 2007 was actually a very good year for internet companies. In fact, due to the rising world GDP, according to the report, internet companies with a global reach would continue to enjoy a healthy profit due to the broad and seamless appearance of a global marketplace. Conversely, the US GDP growth has slowed in recent years.

By 2011, look for search revenues to exceed $60 billion according to the report. A lot of this groth will be tied into paid search as a global marketing vehicle. The growth will also be attributed to keyword price inflation and increased web usage. Tied to this will be an increase in the user experience and increase in click-through rates for all sites.

Death of The Library and rise of the Kindle.

Posted on January 18, 2008 by marc meyer

Unless libraries can tailor everything that they do and stand for towards the digital universe, their days as a wellspring of knowledge and information are numbered. After reading an article titled, “The Impatience of the Google Generation” in wich the author and the responses essentially come to the conclusion that the current generation and younger generations for that matter, are essentially impatient when it comes to how quickly they can find and receive information, I can only assume that the last place that they would want to go is a place where their information was in a hard bound book!

OK, so yes libraries have computers that are tied not only to their volumes of hardbound books but also to search as it relates to the internet. But riddle me this: Why would I go to a library and search for a book when I could log onto a computer and find the same information? Says the 18-24 old student. I know it’s deeper than that, but lets put ourselves in the place of someone in college or younger. A) every college student, or a good portion of them now have their own laptop. So now they “walk” around with access to any and all information/research that they will ever need. Bogus wikis notwithstanding. and B) They are so accustomed to getting information readily, that going to a library defeats the purpose of library research per se.

Of course, they can still go to the “quiet” library to get work done. And there are still certain things that a library provides or possesses that a student still might need or utilize, but…the thinking is,”It’s all here on the internet”!

Generation “C” (content) has no use for a library. In fact I would venture to guess that funding on local, state and federal levels for libraries is constantly slashed in favor of more digital type programs or programs that lawmakers feel have more importance.

Having said that, here is one more thing for you to chew on. The Amazon Kindle is an electronic book device launched in the US by Amazon.com this past November. It uses an electronic paper display, reads the proprietary Kindle (AZW) format, and downloads content over Amazon Whispernet, which uses the Sprint EVDO network. This means that the Kindle can be used without the need for a computer. Whispernet is accessible through Kindle without any fee. On the release day, the Kindle Store had more than 88,000 digital titles available for download. Amazon’s first offering of the Kindle sold out in five and a half hours.It retails for $399.

Think about it. People still want to read but they want it condensed and more than just portable. So does this mean that the Dust jacket will go the way of the Jewel Case and album art? If the latest advances in media, music and entertainment are any indication, it appears that that will be the case.

7 Social Media/Tech Trends to look for in 2008

Posted on January 9, 2008 by marc meyer

By now I’m sure everyone is accutely aware of the social networking/media phenomenon that has transformed everyone’s old school web experience into a transparent user generated virtual world. Look for that to evolve even more in the coming months and year(s) The more that social media works its way into the fabric of our everyday lives, look for more far reaching and useful applications that hopefully have more significant value and meaning then posting pics of the drunkfest you went to over the weekend

So having said that, the first term to wrap your arms around in the new year is:

User Generated Content– Look for this to be dumbed down(see simplified) even more, to the extent that eventually everyone will have a web bio/resume/personal page devoted to who they are, what they are about, and all the gritty little details of their life. Almost like a web based drivers license. Our lives will be even more transparent than they already are, thanks to the tools that social networks will be providing.

Quest for Cool-The demographic of 12-24 year olds will push itself into more social relevence than it has at any other time in the history of pop culture. Because of the ease in which content can be pushed out to the masses, this demo, which otherwise would normally go through these years unnoticed, now can grab the status, the fame, recognition, and justification for social relevence that now accompany social networks. The quest for Me branding has never been more prevalent.

Individualistic Saturation– One of the offshoots of this “20 megs of stardom” instead of 15 minutes of fame, will be that we as a digital society will grow weary of tired content, quickly. In other words, as quickly as someone can rocket to digital stardom, they can, equally as fast, fall back to earth and fade into “Bolivian”-to quote Mike Tyson. This can be attributed to our homgenization of all things related to media. We need our content quick and to the point; and the minute we think it’s bogging us down, has grown tiresome, or has ceased to be entertaining, we are off to find the next great big thing.–>See William Hung.

The Age of Reinvention and Redefinition-With so many ways in which one can create alt-personas, we will hurdle faster towards an age in which there is the digital persona, the off-line persona and the “real-you”. What social media has done has given us a completely new set of “friends” that one can hang with and thus, this is the pack that people will be running with when they are online. Because of the intense focus of all things media driven, this will lead to people who will extend and break the boundaries and barriers of social acceptance. This will ultimately cause us as a society to redefine the terms,”social acceptance, social values, social morals, and social ettiquite.

The EIAV Phenomenon– The Everyone is a Videographer phenomenon has changed the landscape of acceptable video content. What used to be taboo now has it’s own portal. What used to be objectionable is now made into a low budget high grossing movie released on 120 screens nationwide. Everyone is capable of filming anything and uploading it to social sites worldwide in a matter of minutes. This cottage industry will continue to boom as it is now easier for someone to film something and upload it versus writing about it. This has also led to the drive for fame through one doing something so mundane as filming oneself doing absolutely nothing.

MOSO- Mobile Social-Look for the boom of social networks tied to mobile networks. As it has slowly started to happen, watch for the big players to rapidly start to crank out more user friendly interfaces and applications on mobile devices that will converge with high speed networks, resulting in keeping social media freaks engaged with their social networks at all times. An advertisers dream, this will further solidify the mobile device as the most important devleopment since..well the internet!

Search Explodes– As Google continues to swallow up all aspects of what drives the user expereince online, look for search to become more integrated into how one conducts or initiates any type of online endeavor. What has happened and will continue to happen is that the re-emergance of the portal will become relevant again. As we get closer to the launch of the “G-phone”, be prepared for a massive push towards a mobile-social-search environment that will redefine portability and world wide exposure to all things global.

I said 7 but one more merits mentioning:

S-Commerce– As social networks continue to expand and grow at exponential rates, look for their to be more creative ways for users and advertisers to push products that are niche like in their importance and acceptance to the users. I have written about this before, so for reference, look to Lemonade.com

There is certainly more to discuss in the coming months but, for now lets work off of these 7 and see what else is under the hood. Is there a glaring omission here? Please feel free to contribute your thoughts. Certainly, we should not igonore how we as a digital culture need to address the oil shortage, creating a more eco-friendly environment, homelessness, world hunger, genocide, corrupt politicians and Britney Spears, but for now we will continue to focus on the biggest sea change in the online world since the advent of… well the internet.

Cyber Monday Results, How Big Was It?

Posted on November 27, 2007 by marc meyer

So, perhaps Cyber Monday is more myth than Black Friday is reality. Is Cyber Monday really this rockem-sockem day where we all come in and the first thing we want to do on monday morning is hit the “sales” offered online? I say that because I just don’t think it’s nearly as big for online retailers as Black Friday is for traditional retailers in the malls.

The stats bear this out. Though the numbers have improved from year to year, this would make sense since the possibility of a computer in the home has risen to a level that rivals the washer and dryer. It’s not the first big spike in traffic or sales for the holiday season, nor the last. It’s actually not even close to the biggest of the year. Here’s the proof in the pudding. ComScore Networks showed only a slight 9% increase in sales yesterday from the previous Tuesday, which was in actuality, the real start of the holiday retail season. Why you ask? Merely because sales had spiked 55%. Thats right, 55%.

Likewise, Nielsen//NetRatings said Cyber Monday traffic from people shopping at work rose 18% from the week before. But that’s far below the 39% week-over-week spike on Black Friday from home shoppers. In fact, it’s even below the 25% at-work jump in traffic on the Saturday following Black friday. And you thought most people didn’t work on the weekends? night.

As we stated earler, the Cyber Monday numbers each sucessive year should grow as access to pc’s grows. Thus this year, Cyber Monday once again saw the highest unique audience of any day so far this holiday season with 29.5 million unique visits to Nielsen//NetRatings Holiday eShopping Index, according to the metrics firm.

Sixteen million of those visits came from the workplace, Neilsen//NetRatings said. That’s up 7 percent over last year. Of that, eBay, Amazon and Wal-Mart again took the top three spots, drawing 5.6 million, 4.2 million and 2.5 million unique visitors, respectively. The top shopping search engine was Shopzilla.com with 959,000 unique visitors. Customer spending on Cyber Monday totaled $608 million, up 26 percent versus the same day last year, according to ComScore. That number is not etched in stone since it does not take into context all e-tailers.

So the point is, though Cyber Monday has a cool moniker the fact of the matter is that it merely is just one of the more busy online shopping days of the year. In the grand scheme of things it’s merely another active day of online shopping.