My presentation from NXNEi June 18, 2011 where I looked at the bubble marketers have created around social media.

1. Marketers as speculators NXNEi June 18, 2011 V2.1_

2. Scott Suthren @cuthbertsteel Director, Digital Strategy at Publicis Modem Toronto_

3. It is the arrogance of every age to believe that yesterday was calm. Tom Peters, 1997_

4. Pepsi Refresh Fiesta Movement

5. Financial action that does not promise safety of the investment_ Source: Wikipedia Flickr: respres

6. Speculation can also cause prices to deviate from their intrinsic value if speculators trade on misinformation, or if they are just plain wrong. This creates a positive feedback loop in which prices rise dramatically above the underlying value or worth of the items. This is known as an economic bubble_ Source: Wikipedia

7. Cost is greater than value_

8. Let’s establish what value is_ Flickr: iriskh

9. Two types of value: financial and functional Flickr: boklm

10. 1. Understanding_ Flickr: MrB-MMX

11. 2. Effectiveness_ Flickr: marfis75

12. 3. Integration_ Flickr: temari 09

13. What happened?_ Flickr: Veronique Debord

14. Faced with many new touchpoints_ Flickr: niezwyciezony

15. Faced with many new consumer behaviours_ Flickr: hanspoldoja

16. Tools and tech without the language to properly describe it We were without the language to describe it_ Flickr: sammy0716

17. In our rush to get there we focused on the wrong value_ Flickr: RageshVasudevan

18. Forrester and others adding simplified directives_ Flickr: Guerrilla Futures

19. Statements that made claims rather than clarify_ Flickr: Tim & Selena Middleton

20. “How can you squander even one more day not taking advantage of the greatest shifts of our generation? How dare you settle for less when the world has made it so easy for you to be remarkable?” Seth Godin_

21. “A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” Scott Cook_

22. “The difference between PR and social media is that PR is about positioning, and social media is about becoming, being and improving.” Chris Brogan_

23. “CRM is dead, long live social CRM” Graham Hill_

24. Social Media marketing is about brands acting, well, social. Which means they need to show up to the party with a nice bottle of wine, if that’s what the party calls for. They need to come ready to have a dialog, and add value to the event. John Battelle_

25. “You can’t tiptoe into social media. You have to jump into the pool. People have a natural fear of it. But the scary part is not being there. Your customer is already there.” Dave Saunders_

26. “We’re living at a time when attention is the new currency. Those who insert themselves into as many channels as possible look set to capture the most value.” Pete Cashmore_

27. We were faced with something we could barely control_ Flickr: jutta @ flickr

28. We defaulted to old habits to backfill engagement_ Flickr: khawkins04

29. We created really good incentive distribution networks_ Flickr: urbanwoochuck

30. We created really good call center extensions_ Flickr: emma.maria

31. Not surprisingly, we created a market_ Flickr: Borya

32. Unfortunately, we created an expectation and comprehension gap_ Flickr: *pascal*

33. “I don’t know what to do, but I know I have to be there”_ Flickr: emdot

34. Value = functional

35. Cost is greater than value_

36. A bubble_ Flickr: rhettmaxwell

37. What have we wrought?_ Flickr: hans s

38. Where was the burden of proof? Where did the burden of proof lie?_ Flickr: bazylek100

39. Framing problem Framing problem_ Flickr: Leonski

40. Functional fixedness_ Flickr: hmboo

41. We now have real challenges as a result of the speculation_ Flickr: US Army Africa

42. 1. Confusion around 1:1 and the bottom of the funnel_ Flickr: Ybidau

43. 2. True engagement numbers are low in relative terms_ Flickr: B Rosen

44. 3. Mainstream penetration numbers are unreliable_ Flickr: Shiny Things

45. 4. No standard measurement makes it hard to quantify value_ Flickr: MarcinWichary

46. 5. Commercialism turned community into ‘what’s in it for me?’_ Flickr: MiranRijavec

47. 6. Genuine identities are difficult to identify_ Flickr: Rosemary

49. 8. Not a dialog, but a negotiation_ Flickr: TheeErin

50. 9. Relationships are asynchronous_ Flickr: Loop_oh

51. 10. Challenges planning and representing a dynamic ecosystem_ Flickr: aaron13251

52. 11. Erratic continuity of the individual consumer_ Flickr: flattop341

53. 12. Source vs motivation disconnect_ Flickr: it290

54. 13. Paid vs earned vs owned_ Flickr: it290

55. 14. Timescale expectations_ Flickr: aaron13251

56. If you build it, they probably wont come. If you build it, they probably won’t come unless…_ Flickr: Joelk75

57. So now what?_ Flickr: Zemlinki!

58. Cost is greater than value To increase value, we need to close the comprehension gap_

59. 1. Get out of the echo chamber_ Flickr: wetwebwork

60. Cut the cable, you are not a representative sample_ Flickr: Nick J Webb

61. Stop reading Forrester, eMarketer, etc_ Flickr: Paul (dex)

62. Read Confederacy of Dunces by John Kennedy Toole_ Flickr: ToddMurray

63. Read The Power of Myth by Joseph Campbell_ Flickr: ToddMurray

64. Reframe the situation yourself_ Flickr: Nate Steiner

65. 2. Correct the functional fixedness_ Flickr: David Blaine

66. 1. We build social marketplaces where the currency is attention_

67. 2. We negotiate with consumers to find favourable terms_

68. 3. We establish an asynchronous contract for that value exchange_

69. 4. Social has an acquisition role in CRM_

70. 5. This marketplace may not show a return on investment in the near term and may fail_

71. 6. We hedge our engagement and penetration numbers conservatively_

72. 7. Gen Y and millenials are misrepresented as tech savvy_

73. 8. Planning it is a wicked problem; benchmarks, stats and best practices have limited value_

74. 9. Social is light touch_

75. 10. For most brands true communities are out of reach, for now_

76. Terms for FB: .4% - post engagement 1:1 - post impressions to like count ratio 80% - wall views 20% - promotion entrants 2.5% - promotion entrants who share 135 – avg number of fans 1 – amplification rings in network 3% - organic unlike rate_

77. Thank you. @cuthbertsteel blog.cuthbertsteel.com_