Is Social Media Marketing the New Direct Marketing

Ron Jacobs
President, Jacobs & Clevenger
Co-Author, Successful Direct Marketing Methods
Sponsor, Ron Jacobs & Bob Stone Multichannel Marketing
Communications Certificate Program, DePaul University

Is Social Media Marketing the New Direct Marketing?

Email? data? direct search?
web?
mail?

A Presentation for

Ron Jacobs
ronjacobs@jacobsclevenger.com

Copyright 2011 Jacobs & Clevenger

Agenda

• The need to redefine Direct Marketing
– Direct Marketing is Interactive, Interactive Marketing is Direct (Stan
Rapp)
• How Direct Marketing and Social Media Marketing overlap
• How Social Media Marketing is creating data
• The importance of establishing Key Performance Indicators
• Explore attribution models for multichannel marketing
communications

http://vimeo.com/10251808

Direct Marketing
How do you define it?


Direct marketing is a form of advertising that reaches its audience without using traditional
formal channels of advertising, such as TV, newspapers or radio. Businesses communicate
straight to the consumer with advertising techniques such as fliers, catalogue distribution,
promotional letters, and street advertising.
Direct Advertising is a sub-discipline and type of marketing. There are two main definitional
characteristics which distinguish it from other types of marketing. The first is that it sends its
message directly to consumers, without the use of intervening commercial communication
media. The second characteristic is the core principle of successful Advertising driving a specific
"call to action." This aspect of direct marketing involves an emphasis on trackable, measurable,
positive responses from consumers (known simply as "response" in the industry) regardless of
medium.
If the advertisement asks the prospect to take a specific action, for instance call a free phone
number or visit a Web site, then the effort is considered to be direct response advertising.
Direct marketing is predominantly used by small to medium-size enterprises with limited
advertising budgets that do not have a well-recognized brand message. A well-executed direct
advertising campaign can offer a positive return on investment as the message is not hidden
with overcomplicated branding. Instead, direct advertising is straight to the point; offers a
product, service, or event; and explains how to get the offered product, service, or event.

Most definitions of Direct Marketing don’t reflect
contemporary usage
• Ron J.’s definition
– Interactive use of advertising media, to stimulate an (immediate)
behavior modification, in such a way that this behavior can be tracked
recorded and analyzed, then stored in a database for future retrieval
and use
• Larry Kimmel’s definition (Pres. DMA)
– The channel agnostic approach to driving maximum customer
satisfaction and optimal marketplace results
• DMA’s definition
– An organized and planned system of contacts
– Using a variety of media
– Seeking to produce a lead or an order
– Developing and maintaining a database
– Measurable in cost and results
– Expandable with confidence

Bob Stone didn’t try to define Direct Marketing, so
much as describe what it does


We can agree on many aspects of what Direct
Marketing should do

• Use of (multiple) channels for communication and response
• Segment customers by demographics, psychographics,
behavior, etc.
• Individually addressable communications
– Focused content, discrete offers, calls to action
• Relevant interactions
– Response, conversion, leads, etc.
• Create sustainable relationships
– Beyond likes, fans, friends and followers
• Capture, analyze and use data
• Measureable and scalable results


So, how is Social Media Marketing different than
Direct?
Direct Marketing Social Media Marketing
• Customers and prospects are • Multiple, individual voices
targeted that choose to engage
• Communications are • Conversational tone
controlled – Not controlled by the brand
• Single, outbound voice • Transparent & searchable
– Across all touchpoints – Users choose touchpoints
• Reflects the personality of • Unique to the personality of
the brand prospects & customers
• Meets business objectives • Meets business objectives
• Measurable & accountable • Measureable & accountable


New thinking, a new lexicon. Not campaigns… curation
Not ads… dialogues. Not awareness & interest… behavior.

Relevance Engagement Experience Collaboration

Consumer
Sentiment

Reputation
Like, Friend Curation
Behavior
Emotion Immersion

Brand

Authenticity Transparency Agility Accountability


Curation enables consumers to become collaborators

11


Media Vs Channels
It’s about effectiveness, not efficiency


Channels work together, but play their own roles

Paid • A catalyst to drive engagement
• No longer the foundation of
Media communications, but not dead nor dying

Owned • Channel controlled by a brand
• Takes time to scale, but extends a brand’s
Media presence & relationships

Earned • Customers become the channel
• Builds Word of Mouth, often the result of
Media coordinated owned & paid media


Paid Media


Crispin Porter + Bogusky’s Social Home Page


Owned Media … A Brand Channel


Kogi BBQ… Twitter for traffic building and CRM


Earned Media… Angie’s List


Marketers (and Agencies) need to show accountability
& effectiveness, not just measurement
• Everything has a Key Performance Indicator (KPI), but cross-
channel activity makes measurement and attribution harder
– Relevance
• How marketing adds value to the business
– Alignment
• Proof that marketing is focused on the success of the business, not
the size of its budget
– Rigor
• A fact-based, disciplined approach to strategy and execution
• Without the above, Marketing gets The ROI Question
– This is Finance’s way of asking “Can Marketing be trusted to spend the
company’s money wisely?”


Key Performance Indicators (KPIs) can help measure
everything
1. Business contribution:
Channel reach, revenue contribution (direct and indirect), 1. Business
Return On Investment (or ROMI), category penetration, costs •KPIs distill
contribution
and profitability. analytics
2. Marketing outcomes: data into
Customers, leads, sales, service contacts, conversion, retention, relevant
2. Marketing
winback and response efficiencies. Acquisition cost, Avg. order, information
Avg. profit, Lifetime Value. outcomes
3. Customer satisfaction: •Exclusive
Usability, performance/availability, recommendation behavior. to each
Opinions, attitudes, reasons for defection, brand impact and 3. Customer
churn. satisfaction business
4. Customer behavior :
Profiles, customer orientation (segmentation), usability, • Specific
clickstream and site actions. Bounce rates, conversions, page 4. Customer
views, depth, page & site duration, RFM and transaction behavior •Valuable
behavior.
5. Channel promotion: •Actionable
Attraction efficiency. Referrer efficiency, cost of acquisition and
reach. CPM Vs CPC. Search engine visibility and link building. 5. Channel
Unique visitors, frequency, e-mail marketing results. Channel promotion •Focus on
integration. the 3 – 5
6. Social media: most
Engagement (e.g. # of comments); involvement (e.g. time 6. Social significant
spent); bounce rate; # of reads, comments, & posts; brand Media metrics
affection/aversion; conversions; mention of brand name;
advocacy; viral activity; referrals; recommendations; multiple
moving averages; etc.


Marketing Dashboards. The visual display of metrics.

Marketing
Dashboards
graphically
display KPI’s in
main categories
– Brand
– Product
– Customer
– Channels
– Efficiency
– Organizational
Development
– Macro-
economic
Environment


Social Media
It’s already being by brands to optimize marketing


Businesses are taking social marketing seriously

• The number of photos archived on Flikr.com as of
June 2009
– 13.6 Billion
• The amount of content (Links, news, posts, notes,
photos, etc. shared on FaceBook weekly
– 3.5 Billion
• The number of minutes spent on FaceBook daily
– 16 Billon
• If FaceBook were a country
– It would be the 3rd most populated in the world,
behind China & India
• The number of Articles on Wikipedia
– 16 Million

Businesses are taking social marketing seriously

• The amount of video uploaded to YouTube every
minute
– 24 hours
• The amount of time it would take to view every
video on YouTube
– 1,750 Years
• The number of YouTube videos viewed per day
– 2 Billion
• The average number of tweets on Twitter.com
every day
– 65 Million


The Social Graph… Conversations are occurring around
every category, brand, and the entire buying process

• Where are conversations
taking place?

• Who are the influencers
driving them?

• What is being talked about?
(e.g. Keywords)

• Is the Sentiment positive or
negative?

• Are Keywords be used in
dialogues, topics, headlines,
copy?


Online data begins to unlock the riddle of prospects &
customers

• Social monitoring merges with Web analytics
– Alterian, Omniture, Coremetrics/IBM, Webtrends
• Technology like Hadoop makes it easy for companies to tap
unlimited data
– E.g. New York Times making its archives public
– Twitter archived by Library of Congress
– Facebook Cassandra, Amazon Dynamo, Google BigTable
• Dashboards and data visualization tools make it easy to
understand
• Balancing privacy and personalization


Combining social/online data and offline data is a
key to micro-targeting

Offline Data
Social Graph •Income
•Targeting friends •Presence of children
Micro-Targeting
•Extending reach •Targeted lists of people for
Social Data •Social Affinity
•Home Ownership
postal and/or email programs
•Purchase Behavior
•Social Site Affiliation •Serve display media to only
•Lifestyles people you want
•Interests and brand affinities
•Much more •Use customer insight to tailor
•Occupation
messaging and media plan
•Education
•Location
•Reviews

29

Facebook is creating and capturing large amounts of
data
Facebook has 500 50% of active Average user
million active users users log on every creates 90 pieces of
day content monthly

550,000
Facebook applications
70% of users engage with apps


Google’s data mining benefits their advertisers

Google has 145 million 79 million US Google data mines all
unique US visitors Gmail Accounts search and Gmail as a
1 billion searches daily resource for advertisers

96% of Googles profit
is the result of
ad revenue


Rapleaf, data mining the social space
Rapleaf Data Mines Quick Facts
• Who – demographics • Data on 900+ million records
• Where – footprint online • 400+ million consumers
• What – affinities, interests
• 60+ billion friend connections
• With Whom – friend connections

Rapleaf Process

Inputs: Social Returns: In the form:
Searches: Used for:
• Emails • Social network • Aggregate report
• Targeting,
• Name and memberships • Individual data segmentation
Address • Demographics appends
• Identifying
• Facebook Fan • Occupation • Instant API influencers
page • Social graph • Optimizing
• Twitter • Influence resources
followers • And 35+ more
• And more • Social CRM32
sites


Marketers can target ads based on social data
today

Target:
-Existing fans/followers
-Friends of current fans/followers
-Existing & prospective customers YOUR AD
-Friends of prospects HERE
-Fans/followers of competitors
-Custom created segments
-Leverage metadata to facilitate sharing

YOUR AD
HERE

33

Bringing Social Media Marketing to life
Alterian Buzz Bowl


Alterian’s
Social
Engagement
Index

2011
Super Bowl
TV Ads

www.alterian-social-media.com/

Alterian’s
Social
Sentiment
Engagement
Index

2011
Super Bowl
TV Ads

www.alterian-social-media.com/


How much is a tweet, a fan or a follower worth?
Cost Per Social Impression

Copyright 2011 Jacobs & Clevenger www.alterian-social-media.com/

Ads effect Mobile as well, which is growing faster
than predicted

• Mobile searches related to Chrysler, a Super Bowl advertiser,
were 102 times higher after the ad was televised
– Desktop searches for Chrysler increased only 48 times
• For GoDaddy.com, another Super Bowl advertiser, mobile
searches for the brand were 315 times higher than usual
– Desktop searches were only 38 times higher
• There are 200 million plus YouTube mobile playbacks per day
• 78% of smartphone users shop on their device


Conclusions

• Direct Marketing, like all marketing, is effected by social
media marketing
• Social Media Marketing is creating even more marketing data
• To prove marketing effectiveness, use a few KPI’s aligned with
organizational goals, which have indisputable rigor
• Customer engagement is attributable to customer experience
– Relevancy is both earned and bought
– It’s not Push or Pull… It’s Push and Pull!!!
• “If you don’t like change, you’re going to like irrelevance even
less.”


Questions & Answers

Questions?


ronjacobs@jacobsclevenger.com


Is Social Media Marketing the New Direct Marketing

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