Insightful articles, opinion and commentary about mobile and web.

It’s time to listen to your customers and learn to relate to them on their level.

No prizes for guessing that 2009 is shaping up to be an ugly time for marketing and PR. Australia may technically avoid a recession, but everyone is behaving like we’re in the middle of one, with budgets being slashed and projects put on hold across nearly all industries.

There is a lot of evidence showing that this is the time to increase marketing spend, not reduce it. As the Harvard Business Review stated earlier this year:

“It is well documented that brands that increase (marketing) during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”

OK, hands up, all those whose marketing budgets have been boosted for the coming year. Um, yes, I thought so – the reality is that the standard business reaction is to ignore the above-mentioned evidence, scream ‘Fire!’ and head for the exits when business indicators head south.

Low cost impact

Well the good news is that tough times present a great opportunity for marketers and PR executives to provide cost-effective solutions and, if overall spend is down, at least you can gain budget spend from the evil empire, aka the advertising guys.

Alan Parker who I recently interviewed in a HotHouse podcast, is a digital PR executive whose most recent Australian role was head of technology and digital for Burston-Marsteller Australia  says that:

“the rise of digital and social media bring plenty of new PR and marketing opportunities, all at a much lower cost than big TV ad campaigns.”

He says that the growing influence of the Web on business is leading more and more marketers and PR executives into the digital sphere, although he argues that, particularly in Australia, “The C-suite are still the people you need to convince” in order to win budget approval for digital projects.

A recent study among chief marketing officers (CMOs) by the Epsilon research group revealed that although 65% of CMOs acknowledged that global and local recessions would dent their budgets, digital marketing was seen as a bright spot. Social computing (word of mouth, social networking sites, viral advertising, blogging, etc.) was the most popular emerging channel, with 42% of marketing executives expressing interest in adding it to their marketing mix over the next year.

As US Web 2.0 PR expert Todd Defren writes:

“The agencies that survive the coming crapfest will be actively helping their own clients realize the benefits of socializing through the recession.”

However, Alan Parker warns that it’s not as easy as just “whacking out a press release online”. Although he acknowledges that there is still a place for the press release, the humble PR release has evolved, with the ability to add video (or even consist only of video), or a product demonstration with tags and links to more information.

In the digital arena, PR companies need to change their orientation to aim at markets, not clients, he says. “You need to match your client’s needs with what your audience is looking for.”

Before starting to talk to customers online, it’s important to “open your ears and hear what people are saying about your company,” Parker says. Some simple ways to do this are to search for mentions of your company on Technorati and setting up Google Alerts.

There is no shortcut to getting this information; it is something that will take time and continual effort, “It requires dedication, it requires effort,” according to Parker.

Once you have listened and learned, it is then time to start the conversation, through things such as corporate blogging, engaging with bloggers in your topic area and using networking devices such as Twitter and Facebook.

Untapped area

PR agencies are still hesitant about using social media tools such as blogging. Recent US and British research highlighted on the Deep Jive Interests blog, showed that while most PR executives believe blogging is effective for sharing information quickly and broadly (UK 70%, US 80%), and has a role in influencing public opinion and decision making (UK 60%, US 70%), most PR companies don’t have a blogging policy (UK 82%, US 88%), and few of them blog for their own company or clients (UK36%, US 37%).

UK-based Copywriter and blogger Matt Ambrose writes that, “Many PR firms are still nervous about jumping into blogging headfirst, preferring to wait for others to test the water and then watch to see if they sink or swim.

“PR’s methodology shares some characteristics with that of the advertising world. Their tactics for influencing mindsets have generally been a one-way, top-down approach. In a world where everybody now has the means to share their opinions and experiences with millions of online consumers this approach now seems antiquated. PR, like advertising, needs to learn how to listen to what people are saying and to be able to have their client’s voice.”

Ambrose argues that “Successful PR in the online world is about more than just generating buzz with a virtual store in Second Life. To get info-hungry consumers to listen to your client’s message you now need to trade in the currency of transparency and value. By utilising podcasts, wikis, blogs and RSS feeds, PR agencies have the means to communicate in a more open format, and in a manner which will allow their client’s voice to be heard in the online conversation.”

Todd Defren, meanwhile, points out that, ironically “the distinct lack of editorial professionalism in the blogosphere” has “forced PR agencies to increase the genuine professionalism of their outreach – indiscriminate e-mail blasts are on the wane.”

He warns that:

“Consumers are ever more resistant to marketing messages that use the old “one-to-many” approach but are often enthused about marketing programs that are useful, empowering and inclusive.” Meanwhile, “Web 2.0 technologies have made participation more fun, accessible, instantaneous, trackable.”

He says the critical factor to remember about social media is that “it is not only helping brands spread the word; it also helps the brand to shore up support among its current customers. “

Long-haul thinking

Social media is about building relationships, not jumping in and jumping out of conversations. “Don’t think campaign – think long term for social media initiatives,” Alan Parker says.

He adds that because social media is still in its infancy in Australia, there is plenty of opportunity for companies who haven’t yet climbed on the bandwagon. “We are at the point in Australia where the C-suiters are starting to recognise the importance of the online world.”

As technology develops and features such as high-definition video become more widely used in Australia, corporate social media use will really take off. Are you ready for take-off?

Simon van Wyk talks to Alan Parker, Manager Technology-Digital for Burston-Marsteller in Australia, whose technology clients include HP, Sega and LG. Before that, Alan developed and led the 360 Digital Influence offering for Oglivy PR Australia.

Alan outlines the emergence of social media as a serious force for Australian corporates and says it’s not too late to get on the digital bandwagon.

Listen to the Alan Parker podcast here.

 

 Interview with Alan Parker [25:53m]: Play Now | Play in Popup | Download

Microsoft has added a “standards [in]compatibility list” to Internet Explorer 8. The purpose of the list will be such that when a user visits one of the sites IE8 will automatically switch to “IE7 compatibility mode” (or something to that effect) to render the page. Frequently noted is that “microsoft.com” itself is on the incompatibility list.

Also in Internet Explorer-related news, an exceptionally large list of frequently visited news sites in Norway have begun to display notices to IE6 users that they should upgrade to a newer browser, some even suggesting alternatives to Internet Explorer altogether.

It’s a common refrain from nearly everyone I speak to in business: If I can collect so much data via my website, how come I can’t see the ROI on my digital investment? The fact is, you can – it’s just not as straightforward as we’d all like.

Forrester Research has been doing a lot of work in this area. Forrester analyst Charlene Li, co-author of the book Groundswell: Winning in a world transformed by social technologies, has produced a couple of reports showing how companies can apply a three step process to measure return on investment (ROI) for their corporate blog. She writes:

“What’s the best way to measure the effectiveness of a blog? It starts with the goal of the blog. I strongly suggest that companies start with the goal, develop metrics that measure the attainment of that goal, and find ways to assign value to those metrics.

“Just as there isn’t a standard ROI for a Web site, there’s no standard for a blog. It depends on what the goal of the blog is and also how much investment the company (and the blogger) puts into it.”
To answer the argument that companies should set up a corporate blog just because they know it is the best way to start conversations with customers, Li says, “At the core of my bleeding heart pumps the soul of a pragmatist. Sure, I buy into all of the positive, feel good reasons to have a blog. But when your manager asks why the company has a blog versus spending more time and resources on XYZ initiatives, it sure would be helpful to be able to show a spreadsheet of those blogging benefits in dollars and cents.”

An example of the three step process (reproduced from her blog) is below:

For more on measuring return on digital investment and the three other hottest digital media topics today, download the podcast of my interview with Personal Life Media founder Susan Bratton.

In my recent interview with Internet marketing maven and connector Susan Bratton, she said most experts agree that search engine optimisation (SEO) people make the best social marketers, because, as Susan describes, they have a sense of “who am I talking to, and how do I elicit a response? What’s a tag that people will jump on?”

That got me thinking: what are the qualities that make for effective social marketing? Social media consultant Tamar Weinberg discussed this topic on her blog recently and revealed the results of extensive interviews with several prominent figures in the industry asking them what traits define a good social media marketer. Here are some of the highlights:

• The ability to hold or facilitate a conversation where listening and learning take the majority of the attention
• A genuine curiosity and deep interest in social media that pervades one’s day to day life.
• A sense of humour (!)
• A unique blend of networking skills (relationships), traditional PR skills (building goodwill), marketing skills (giving customers what they want), and customer service (delivering resolutions to issues)
• Understanding what makes a story viral, or what are the qualities that make it sticky or interesting
• Someone who is fundamentally oriented towards listening first, and only then offering contributions that move the conversation forward… help businesses grow by genuinely and authentically helping customers. It’s not about any of the tools.
• Playfulness, focus, curiosity, perseverance, people orientation
• Someone who can start a conversation that people want to participate in.
• A passion for info and sharing info on the topics and subjects they find interesting/ are passionate

What do you think? Who do you know who is good at social marketing? What sets them apart?
For more on social marketing and the three other hottest digital media topics today, download the podcast of my interview with Personal Life Media founder Susan Bratton.

The experts agree: Listening to your customers and engaging them on their level is essential if you want to succeed in today’s marketplace.

On the Internet, anyone can become a media mogul. Unlike traditional media, the set-up costs are practically zero. Of course, gaining an audience is another matter entirely. You need to have something worthwhile to say, say it in an interesting and articulate way and know how to gain attention.

As a result, hardly any new media publishers are making serious money. The exceptions, such as The Huffington Post in the US and Crikey in Australia, have been started by refugees from traditional media. The splintering of audiences caused by the Internet makes it difficult to consolidate eyeballs, and therefore revenue.

However, this media fragmentation has led to the rise of thousands of niche publishers who bring their own personal brand of information to their specific audience.

When it comes to chronicling the development of the Internet, one of the most widely-connected independent publishers is Susan Bratton, whose Personal Life Media ‘empire’ features the weekly podcast “DishyMix: Juicy Interviews with Famous Internet and Media People”.

Susan was a founding member and vice-chairman of the Internet Advertising Bureau and launched online advertising products for companies such as AOL and Excite before starting Personal Life Media. As a result, she has met many of the big thinkers in online marketing and advertising, and she has combined her address book with her engaging interview style to produce content-rich interviews with scores of Internet entrepreneurs, CEOs and executives. DishyMix provides a great helicopter view of new media, where it’s come from, and importantly, where it’s heading.

Though the interviews cover a broad spectrum of new media, most coalesce around four interconnecting themes. Here’s a summary of the latest thinking around those themes, as espoused by DishyMix guests:

read more

Simon van Wyk talks to San Francisco-based Susan Bratton, one of the most widely-connected people in the digital space, whose weekly podcast “DishyMix: Juicy Interviews with Famous Internet and Media People” showcases the biggest thinkers in online marketing and advertising.

DishyMix provides a great helicopter view of new media, where it’s come from, and importantly, where it’s heading. Susan encapsulates for HotHouse listeners the accumulated wisdom gleaned from nearly 100 DishyMix interviews.

Listen to the Susan Bratton podcast here.

 

 Standard Podcast [31:42m]: Play Now | Play in Popup | Download