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  1. FUTURELAB Don’t Try This At Home Or actually.....please do!

  2. FUTURELAB Welcome What is this talk about Who am I Who are We Why are we here? A new age of media The death of advertising The Digital trap A new model Relevance Engagement Reputation Finale (Organisation) (Segmentation) Conclusions

  3. FUTURELAB FUTURELAB A Personal Introduction Athens Berlin Brussels Bucharest Chicago Hamburg Helsinki Iasi Kiev London Melbourne Miami Milton Keynes Moscow Prague Shanghai The Hague Valencia

  4. FUTURELAB “Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.” For more information about this proposal, please contact Stefan Kolle, Partner E: sko@futurelab.net M: +32 (473) 888 996 Futurelab International Hoornzeelstraat 24 3080 Tervuren Belgium T: +32 2 7338332 F: +32 2 7065772 E: info@futurelab.net We are business strategist with a passion for customers, innovation and profit We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation 12/11/2011 4

  5. FUTURELAB Thought leadership Recognition + 10,000 articles 75-100k regular readers • • + 3.15.000 views + 10,000 followers Regular speaking & media appearances We do more than consult, we want to right what is wrong Opinionated – a desire to make a difference – unafraid to take the high road

  6. FUTURELAB Why are we here? So, you‟re going to tell us we need a social media strategy, right?

  7. FUTURELAB (cc) Lynette Webb, 2006

  8. FUTURELAB The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2

  9. FUTURELAB Flashback 2006: I Am The Media

  10. FUTURELAB Media responded by fragmenting Media Responded by....fragmenting

  11. FUTURELAB And there are all these new tools of engagement “The workers should appropriate the means of production”

  12. FUTURELAB And engagement goes deep ... very deep 84% of Germans under 30 would rather give up their car or partner than live without internet or mobile telephone. Source: Bitkom study via Onlinekosten.de – March 2, 2009 72% of British male gamers would avoid having sex for a chance to try their hands on a brand new PS3-game. Source: PS3 Price Compare study, via Itproportal, March 3, 2009

  13. FUTURELAB Facebook expects its largest user base to come from India in the near future Facebook's user count in India jumped 85% to 34 million as of June this year over the 18 million last year, as per Comscore. The Economic times India 08/11/2011 Sure – but all of this is not relevant for India, right?

  14. Awareness, penetration, average number of networks Aware of at least one network Member of at least one network Average number of networks one is member of 98% 73% 1,9 86% 34% 1,8 75% 44%* 3,4 95% 76% 2,1 98% 88% 3,9 97% 86% 3,1 96% 67% 1,5 Emerging markets Brazil and India show the highest awareness and penetration of social networks. * The 44% share of social networkers in China is low compared to other countries. This might be due to the fact that some large Chinese networks (eg RenRen) were not included in this survey.

  15. Daily log on to social media 60% 63% 58% 67% 82% 76% 61% N Europe = 5613 / F = If member of social network(s)

  16. Following brands | Europe in perspective Europe has the lowest share of brand fans, 51%. Compare India: 70% follows a brand. 60% 9,3 Brand followers 51% 12,2 Average no. of brands followed 57% 20,2 62% 7,9 70% 15,6 55% 19,6 55% 8,3 N Europe = 5613 / F = If member of social network(s)

  17. FUTURELAB Great – so now start advertising to them, right? Ah, well, if you must call it spam....

  18. FUTURELAB 76% of consumers don‟t believe that companies tell the truth in advertisements Yankelowich,2006

  19. FUTURELAB Advertising Myths 1. Frequency is mostly not a driver for action 2. There is no golden rule about OTS

  20. FUTURELAB Advertising is a tax you pay for unremarkable thinking Robert Stephens, CEO, the Geek Squad

  21. FUTURELAB

  22. FUTURELAB Image: (c) Adambooth The Core Issue People who live near train lines adjust to the noise. They do the same with advertising. FUTURELAB

  23. FUTURELAB

  24. FUTURELAB FUTURELAB Talking about what YOU want to say Interrupting me Treating me like any other 35-45 year old male

  25. FUTURELAB FUTURELAB BRANDS HAVE TO STOP BEING NOISE Communication-wise

  26. FUTURELAB Digital as the ANSWER TO EVERYTHING?

  27. FUTURELAB Insert friend movie 2011- onwards? Can I be your friend? The new paradigm FUTURELAB

  28. FUTURELAB The Sad Reality Many digital marketing herd activities just don‟t cut it either ... FUTURELAB

  29. FUTURELAB Different Channel, Same Problem 78% of consumers consider in-stream advertising as “intrusive”. Half of viewers stop watching an online video once they encounter an in-stream ad. Source: Burstmedia, January 2008 29% of consumers leave a website that appears to be cluttered with advertising. Source: Burstmedia, December 2008 BANNER/AD BLINDNESS Only 13% of UK consumers pay attention to ads on social networking sites. NEW !! TWITTER SPAM Source: Ebay Advertising, March 2009

  30. FUTURELAB Different Channel, Same Problem Reality Check What does this mean for the business??? “If I tell my Facebook friends about your brand, it’s not because I like your brand, but because I like my friends.” Mike Arauz

  31. FUTURELAB Pick your disease New technology, same old mistakes

  32. FUTURELAB People dont want to “socialise” with a brand What do they want? Facilitate their actual needs and desires Provide value; not noise

  33. FUTURELAB Consumers expect something for a “like” Expect access to exclusive content, events or sales 58% Expect discounts or promotions through Facebook 58% EaxctTarget reports that more than six in 10 (63%) Facebook users who “like” a Expect to receive updates about the co. to the newsfeed 47% brand or product on Facebook expect Expect the company to post updates, photos or videos to … something in return. Results from “The 39% Meaning of Like” indicate that a leading Expect to share with friends, family and/or coworkers 38% 58% of Facebook likers expect both Expect the name of co. to show up on my profile access to exclusive content, events or 37% sales, and discounts or promotions Do not expect anything to happen 37% through Facebook. Only 37% do not Expect the co. to send more relevant … expect anything to happen. 36% Expect to interact with page owner (e.g., brand, person) 28% Expect the co. to access data in my public profile 27% Expect the co. to contact me through other channels 24% The Social Media Data Stacks

  34. FUTURELAB But they don‟t expect to be spammed! What Constitutes Permission to Market on Facebook? % of respondents, July 2011 Source: ExactTarget You click a Facebook Like button placed by the company elsewhere on the web The ExactTarget survey found that the highest percentage of respondents, a rather 10% 42% 48% low 15%, “always” expected a marketing initiative after liking a company at its You like a Facebook page source, but that dropped to comment/photo/article posted by a company on Facebook 9% 41% 50% 10% for a click on a “Like” button elsewhere on the web. You go to a company Facebook page and like the company Only 9% always expect marketing after 15% 46% 39% logging a reaction to Facebook content. Always Sometimes Never The Social Media Data Stacks

  35. FUTURELAB So, here’s what NOT to try at home Some worst practice examples old and new

  36. FUTURELAB The Pen Is Mightier Than the Lock Soon after the release of the so-called unbreakable new lock, someone described on a bikeforum how he managed to open it with an ordinary ballpoint pen. Though it waited for what some might say was too long, the company decided to recall all the new and unbreakable locks and replace them . We are accelerating the delivery of the new disc cylinder locks and we will communicate directly with our distributors, dealers and consumers within the coming days. The world just got tougher and so did our locks. - Kryptonite Image damage for trying to ignore – a multiple of that Results: Estimated cost for free products exchange: $ 10 million.

  37. FUTURELAB Lesson Learned? Listen!

  38. FUTURELAB Motrin “hell hath no fury like a mommyblogger scorned” Motrin experienced first hand the power of social media when it released a TV campaign that blamed carrying babies in a pouch for backpains, as a strategy to sell pain killers. After a while, the entire campaign was hijacked by social media active mothers who found it offensive. Motrin responded by taking down the ad, without engaging in conversation which only added to the buzz. Communispace found that the more emotional responses were about the firestorm and how Johnson & Johnson had responded, not about the actual ad. Results: Motrin pulled the ad, apologized. (perhaps prematurely,– consider the following numbers: Percent of internet users who visit twitter at the time = 0.1% Days that the ad went widely ignored for = 45 Mommies' youtube videos exposure = less than a 30s cable ad Peak number of tweets/hour = 300 Estimated % of negative tweets = 35%

  39. FUTURELAB Gap logo redesign Gap Inc, puts forth a logo redesign, but is met with severe backlash from passionate fans, critics, and media on social media channels. There were thousands of comments, logo redesign websites, Twitter spoof accounts (over 4000 followers) and even Facebook accounts setup to lead this branding revolt and over 626 results in Google News on “Gap Logo” from mainstream press. Results: Gap reverted to the original logo

  40. FUTURELAB Lesson Learned? But dont go crazy

  41. FUTURELAB GoDaddy CEO kills Elephant, loses customers After Bob Parsons (GoDaddy‟s CEO) posted a video of himself shooting an elephant in Zimbabwe and then tweeted to brag about it, GoDaddy competitor Namecheap offered to donate $1 for every customer who transferred their accounts over, raising over $20.000. for Save the Elephants, a conservation group. PETA and other organizations also denounced the move and encouraged customers to stop doing business with GoDaddy Results: Besides the media backlash, GoDaddy found themselves bleeding customers as competitors jumped at the opportunity, offering discounted transfer fees and also vouching to donate money to animal welfare organization for every new account.

  42. FUTURELAB Milk Fail The Milk Board and their agency, San Francisco-based Goodby, Silverstein & Partners, launched a new social media campaign, a tongue-in-cheek look at how drinking “milk can help reduce the symptoms” of premenstrual syndrome. The campaign, however was targeted at men, and a micro-site, with the URL “everythingidoiswrong.org,” was set up and labeled for men as “your home for PMS management.” The site was launched around two weeks ago and originally scheduled to be live through the end of August. The site‟s content included lists of “apologies” that men could use with women with PMS symptoms. Results: After just a few days, the Milk Board found themselves in the middle of a firestorm of criticism on Twitter, Facebook, and the blogosphere as women rose up . Even FunnyorDie came up with a vicious parody ripping the campaign. In the end Goodby and the Milk Board took the site down after 12 days and redirected the original URL to a site titled “Got Discussion” where they tried to undo the damage done.

  43. FUTURELAB Kenneth Cole #cairo hijack In a self-promotional tweet that hijacked the world sensitive #cairo tag during the revolution, Kenneth Cole promotes their own spring lineup. Immediately, someone setup a fake KC account (@KennethColePR), which posted ironic tweets such as “People from New Orleans are flooding into Kenneth Cole stores” As a sidenote, the tweet in question was signed –KC, meaning it was sent off by the designer himself. Results: KC later apologized via Twitter and Facebook but not before severe SM Backlash

  44. FUTURELAB Lesson Learned? Understand the sensitivities of your audience

  45. FUTURELAB Pantene‟s Cause Marketing backfires A cause marketing style campaign was launched in the Philippines, asking women to get join a Facebook page called “I Commit to Change“. Once the members joined the independent ‟cause‟ Pantene unleashed its branding campaign, promoting their latest products as the agent of change. Feeling duped, the women responded via social media, posting blogs in which they expressed their discontent at the ruse. In all of their actions in the Facebook page including the notes they said that it was a movement committing for change. There was not a single mention that it is connected to any commercial product or brand. – Blogger on the ICTC campaign Results: thousands of angry key influencers in the core audience

  46. FUTURELAB Habitat The stylish furniture maker Habitat jumped on the Twitter bandwagon in a big way but was exposed for spamming. Its self-promoting tweets that included popular trending topics to attract attention. And if including a hashtag# for a popular HBO drama like "True Blood" wasn't enough, the company actually took advantage of the misfortunes of others by including "Mousavi" and the "Iran Election" on tweet updates as well. Results: Retaliating against this form of 'parasite marketing,' the Twitterverse struck back by exposing the practice to Twitter's SPAM department.

  47. FUTURELAB Lesson Learned? Dont lie and cheat

  48. FUTURELAB So, is it all over now? Are we dancing on the deck?

  49. FUTURELAB You can be the answer, not the problem Re-intermediation Curation Audience Involvement Audience Management • • • • • On the contrary It‟s only just begun!

  50. FUTURELAB Customer Advocacy : Your compass to action About relevance, engagement and reputation