Open Brands: How Social Media Is Pushing Radical Transparency on Brand Management

Speaker · Keynote · LinkShare Symposium West · San Francisco, CA · 28 January 2010

Social media and radical transparency in brand management: who controls a brand, FTC endorsement guidelines, company social media policy, measuring return, and case studies including The North Face and drugstore.com.

Part of Earthsite

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OPEN BRANDS How Social Media is Pushing Radical Transparency in Brand Management JoeyShepp.com
LINKSHARE SYMPOSIUM WEST Keynote Session January 28th, 2009
ABOUT THE PRESENTER Joey Shepp • Principal at Earthsite New Media for Sustainable Brands • Professional Speaker on the topics of New Media and Sustainable Business. • More at http://www.JoeyShepp.com
SO, WHO CONTROLS A BRAND?
YESTERDAY Brand Managers
TODAY Community
WHAT DO PEOPLE TRUST? • 25% trust advertising • 56% trust media editorial • 81% trust word of mouth Source: Ross Dawson, 2009 http://bit.ly/Dtn7S
FOUR OUT OF FIVE NEW MEDIA USERS interact with companies and brands online source
WOMEN RULE THE SOCIAL WEB Gender Balance In Major Social Networks
POWER SHIFT
SOCIAL MEDIA IS A DISRUPTIVE TECHNOLOGY Old School New School Top Down Bottom Up Closed Open Advertisement Conversation Print Media Digital Media One to Many Many to Many Privacy Transparency
AN OPEN WORLD Open Culture Open Government Open Software Open Brands
FULL DISCLOSURE What you need to know as a Brand Manager
UPDATED FTC ENDORSEMENT GUIDELINES • Revisions to 30 year old guides • Section 5 of the FTC Act, which broadly prohibits"unfair and deceptive acts or practices in commerce". • Guides don't have the force of law, they don't carry penalties. However, FTC could place a lawsuit against company which could result in nes. • Medium doesn't matter as long as it's a form of marketing ie) Twitter, Facebook, blogs, email • It calls for disclosures of brand ambassadors (who’s paid to represent your brand) fi • Company should have a policy for how they manage social media
AFFILIATE MARKETING • Are you getting a commission? Disclose it. • Is broad disclosure fi fi suf cient? Shouldn't have to look for it. Should be easy to nd.
DISCLOSURE COMPLIANCE
BOTTOM LINE • Does the audience understand relationship between publisher and the advertiser? • If it's not clear from the context, publisher should disclose connection to the advertiser. • Transparency is key!
SOCIAL MEDIA POLICY
SOCIAL MEDIA POLICY BEST PRACTICES • Should function as an informal guide, in which there is room for interpretation and discussion with employees • Actively train and educate employees • Assign the role of Community Manager which employees can go to if they don’t know what to do • Make it available to the public
KEEP IT SIMPLE "The more restrictions that you place on employees, the less room you give them to be a real asset to your online reputation." "The bene ts of having your employees engaging in social media far outweigh the dangers of them saying something that they shouldn't," fi Andy Beal, Author of the book Radically Transparent.
ZAPPOS SOCIAL MEDIA POLICY "Be real and use your best judgment."
INTEL SOCIAL MEDIA GUIDELINES • Be transparent. • Be judicious. • Write what you know. • Perception is reality. • It's a conversation. • Are you adding value? • Your Responsibility • Create some excitement. • Be a Leader. • Did you screw up? • If it gives you pause, pause.
AIRFORCE Blog Assessment
MORE SOCIAL MEDIA POLICIES SocialMediaGovernance.com
DISCLOSURE AS OPPORTUNITY
BENEFITS OF BEING OPEN • Build trusting customers • Avoid FTC Lawsuits • Engage your employees/customers • Innovation from customer feedback • Quicker response to concerns • Call out competitors
MEASURING SOCIAL MEDIA
COMMON PROBLEMS WITH SOCIAL MEDIA • Experimental • Not Budgeted For • Dif cult to Measure fi • Low Performance (?)
WHO MEASURES ROI ANYWAY?
CHIEF MARKETING OFFICERS REPORT ROI ON SOCIAL MEDIA
WHAT’S YOUR GOAL? • Sales • Lead generation • Registrations • Conversion • Referrals • Reduced sale cycles • Links (Traf c) • Votes • Reduction in costs and fi processes • Decrease in customer issues
2009 SOCIAL MEDIA METRICS 89% of CMOs tracked the impact of social media by traf c, page views, and the size of their social graph or communities. fi Source: Brian Solas, Mashable
2010 FORECAST IN SOCIAL MEDIA METRICS • 333% surge in tracking revenue • 174% escalation in monitoring conversions • 150% increase in measuring average order value Source: Brian Solas, Mashable
SOCIAL MEDIA METRICS APPROACH • Focus on Interactions • Target In uencers • Measure Before and After • Accumulate Social fl Capital
NEW MEASUREMENTS Advertisement Conversation Paid Per View Free / Sharing Page View Social Action One Time Accumulates
ROI CAN BE MEASURED Dell’s global reach on Twitter has resulted in more than $6.5 million in revenue
CASE STUDIES Opening up to Social Media
THE NORTH FACE Social Media Case Study
NORTH FACE FEB. 2009 • Nonexistent social media strategy was an utter- op for the brand • Communicated every-so-often • Rarely responded to fans/followers, • 8627 Facebook Fans and 1087 Twitter Followers • Led to blog article: 'Social Media fl Smackdown: Mtn Hardwear vs. The North Face
NORTH FACE TODAY 12 months later • 150,000 Facebook Fans • 10,000 Twitter Followers What did they do?
FACEBOOK PAGE Small Changes, Big Results • Changed landing page strategy, FBML blocks • Encouraged Athletes to post • Huge Growth in Fans
TWITTER PAGE Dedicated Strategy • Content Manager • 3-5 posts per day • Not repeating Facebook Content
NEVERSTOPEXPLORING.COM Leveraging In uencers • Branded Content fl • Athlete Contributors
PLANETEXPLORE.COM Branded Community
NORTH FACE ON SOCIAL MEDIA • To qualify as social media the experience must: • Allow users to share, participate, connect or contribute in a way that facilitates conversation or contributes to shared content.
DRUGSTORE.COM Social Media Case Study
KEEP IT SIMPLE March Madness • Multiple polls going • Different links to different landing pages • No cohesive agent bringing them all together • 700 total votes • Failure in ROI, but success in learning lesson.
FACEBOOK PAGE
DEAL OF THE WEEK Facebook Page • Weekly Deal offering • Mimic and Test
BELIEF IN SOCIAL MEDIA • Panel/Internal Teams: Marketing, Customer Care, Legal, HR, Merchandising, Creative, and Finance • It's not just for Marketing: Customer Care use • Strategy: Proactive, reactive, and adaptive
MOONFRUIT
CAMPAIGN RESULTS • 200 blogs and articles written • 500,000 tweets, 3000+ images, and 500+ videos • New subscriptions increased by 20% during the summer
GO FURTHER Resources
FOLLOW ME ON @joeyshepp @earthsite @openbrands
TWEET YOUR QUESTIONS @JoeyShepp YOUR QUESTION #LSW2010
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