Six Social Currency Dimensions

Building Social Currency Study

The concept of social currency is often discussed in the brand and advertising world – campaigns are tasked with creating social currency for their brands.  By inserting brand names into the cultural conversation brands generate “emotional engagement” with consumers.  The question then becomes: what constitutes an emotionally engaging experience?  A recent Social Currency Study by Vivaldi Partners discusses why brands need to build and nurture social currency.  Here are a few intriguing lessons.

• Advocates trump followers – Dunkin Donuts has 80% fewer Facebook and Twitter followers than Starbucks.  Game over?  Hardly.  Dunkin Donuts fans are 35% more likely to recommend the brand, according to the Social Currency Study.  Dunkin Donuts promotions are built around turning real people into online celebrities and then endorsers; ultimately brand advocates.
• Context matters – A product that is consumed socially may have a natural advantage towards enabling social currency.  What is important to a consumer is the bonding or “social context” during consumption.
• Not every brand should be social -  Mass market brands that are positioned based on functional superiority, such as Gillette, aren’t likely to see much upside in social currency.  Loyal respondents gave the brand a 96% for good quality and reliability.  So what more is there to say?

The point, Erich Joachimsthaler, Founder and CEO of Vivaldi Partners, tries to make is that the study is not about social media or marketing tactics; it’s much bigger.  It’s about how customers relate to one another in the context of brands and, in turn, how those brands, companies, products and people relate to customers.

College Students Head Back to School

College Back-to-School Spending Rises

In a recent survey conducted by Alloy Media + Marketing and Harris Interactive, year-over-year back-to-school spending by students is projected to increase by 13 percent.  The report is part of Alloy’s 10th annual “College Explorer” survey, which analyzes the spending habits of college students.

The report found that students were not only spending on mandatory back-to-school purchases (books, room, board and tuition) which are increasing, but also technology, gaming and beauty products.  Overall, 3 percent more per month on discretionary purchases compared to last year, or $69 billion in total spend.

Making the Connection with Mom

The Mom Connection

Moms buy everything from diapers to desks, lipstick to laptops and moisturizers to mini-vans.  With an annual spending of over $2 trillion, just about every brand has recognized the buying power they possess.  To effectively reach this lucrative demographic it is essential that marketers address the four key emotional drivers that motivate moms to make consumer decisions.

Marketers who speak to moms with a message that is relevant, valuable and in a language they understand will capture this advantageous buying power.  Perhaps most important are timing and placement – what good is the right message in the wrong place?

IAB Long-Tail Alliance publishers on Capitol Hill

Earlier this week, it was my pleasure to represent Apparel Media Group at the Interactive Advertising Bureau’s 2nd annual Long Tail Alliance DC Fly-in.  Over the course of the two day program, dozens of small content publishers and interactive ad networks participated in interactive panels on topics ranging from direct selling into brands to malware control and lobbied members of congress and the senate on behalf of more than 375 companies responsible for selling  over 86% of online advertising in the United States.

I had the opportunity to discuss key issues around consumer privacy and the collection of information online, interactive ad targeting, and industry regulation with five members congress and their legislative staffers.  In these discussions, it was clear that Members of Congress both on and outside of the House Committee on Energy and Commerce are concerned with the well-being of small businesses that depend on the ability to sell targeted interactive advertising to provide jobs for their employees and valuable content to their audiences.

Shout-outs to Google DC office staffers for hosting a heck of a dinner and to Tara at Venable for an awesome job chaperoning our group!

[Update - 6/24:  WSJ - To stem privacy abuses, industry groups will track web trackers]

[Update - 6/21:  NPR - Lawmakers try to introduce new bill]

[Update - 6/20:  Politico -  Website owners lobby against bill]

DEWmocracy Project

Mountain Dew Crowd Sources Media Planning

Mountain Dew is once again tapping the collective intelligence of it’s most passionate consumers.  The DEWmocracy project, now in its second iteration, kicked off last year with the brand asking 4,000 of its most loyal fans to help in creating three new Mountain Dew flavors.  Participants were first split up into groups to campaign for their favorite flavor followed by a series of nationwide events to drum up support for their particular drink.  This time, agencies were asked to pitch their creative ideas to the three groups, who in turn got to vote where the adverts would run and on which platforms.

Frank Cooper, chief engagement officer at PepsiCo said, “By maintaining an open dialog with our consumer through an intense, year-long collaborative project, we’ve offered them an opportunity to leave their imprint on a brand they truly love and have solidified an even stronger relationship with fans who matter most.”

Tweeter

Twitter Unveils Plans to Draw Money From Ads

Twitter unveiled a plan Tuesday to use advertising to turn its massive popularity into cash.  “Promoted Tweets” will allow businesses and organizations to highlight their 140 character or less messages to a wider group of users.  Under a system reminiscent of Google’s advertising formats, businesses will be able to buy ads that appear in Twitter’s search results.  Brands including Starbucks, Best Buy, Red Bull, Sony Pictures and Virgin America will be the first customers to experiment with ”Promoted Tweets”.

Now that the ad platform has been revealed and Twitter is focused on making money, the question is this:  will users engage with or reject Twitter ads?

Email Counting T-Shirt

T-Shirt Let’s You Know When “You’ve Got Mail”

You probably don’t have enough reminders that you’re always a little behind, right?  Well Chris and his wife Madeline decided to make one more for themselves:  A t-shirt that lights up when you have new emails.  It even tells you the number in your inbox!

Personally, I hope they don’t start requiring this at work!

US Internet Users More Likely to Buy

Social Fans More Likely to Purchase

If a business doesn’t have a presence on social media platforms such as Twitter and Facebook they risk being seen as “out of touch” while missing out on valuable word of mouth and even sales.  Ina recent study by market research firm Chadwick Martin Bailey and iModerate not only are Facebook fans and Twitter followers apt to recommend brands they follow to others, they are also more likely to make a purchase from those brands.

While 60% of Facebook users and 79% of Twitter users are more likely to recommend a brand after becoming a friend or fan, over half of Facebook users and 67% of Twitterers are more likely to purchase from brands they latch on to.

“Companies not actively engaging are missing a huge opportunity and are saying something to consumers – intentionally or unintentionally – about how willing they are to engage on consumers’ terms,” according to Josh Mendelsohn, VP at Chadwick Martin Bailey.  Today’s consumers expect that a business will have a digital presence and the perception is that those that don’t are out of touch or are not interested in the demographic that frequents Facebook and Twitter.

Andre Nader and Jared Golden at SxSW

Chill 3.0 atop Fogo de Chao at SxSW

On Saturday at the Entrepreneur’s Lounge, aka Chill 3.0, Nader with Build a Sign and Golden, AMG’s CEO. The two contemplate if beers could send data from bottle to bottle when tapped together, like the BUMP iPhone app.  Next year at SxSW you two?

Frank Cooper, Chief Consumer Engagement Officer, PepsiCo

Pepsi Pushes Social Graphs to Help Consumers Build Identity and Brand Loyalty 

Frank Cooper, Senior Vice President and Chief Consumer Engagement Officer at PepsiCo Americas Beverages, believes the approach markers have been taken for the last 75 years is no longer relevant.  Today brands need to add value to our lives.  “We remain in the middle of a brand marketing crisis,” Cooper says.

Marketers need to create what Cooper calls ‘identity value’.  The current brand marketing model is broken but Cooper and other forward-thinking marketers think it can be fixed and even become more relevant than ever.  The trick is for marketers to go the extra mile to be sure their brands are servicing consumers in a relevant manner.  Marketers should focus on how digital technology allows consumers to relate to brands in ways historically not possible.  The goal is to discover opportunities to add value to the lives of consumers’.  “As marketers, we need to create meaningful experiences for consumers, not just sponsor content,” Cooper states.