Category Archives: Media

7 Dimensions of Influence in Social Media

“I find that, as a rule, when a thing is a wonder to us it is not because of what we see in it, but because of what others have seen in it. We get almost all our wonders at second hand.”

—Mark Twain

English: Infographic on how Social Media are b...

English: Infographic on how Social Media are being used, and how everything is changed by them. (Photo credit: Wikipedia)

Marketers have mined social media data for “influencers” for years. To identify those people whose favorable tweets and posts can boost your sales, you need to be able to measure the influence of your customers.

A tool like Klout measures the influence of a person, based on popularity and potential reach in social media. But popularity and influence do not necessarily align.

If you plan to buy a tennis racket it is unlikely you follow Oprah’s advice on which brand to pick just because she has a Klout of 92. You’d rather listen to David Ferrer’s advice, Klout 73, for that choice. And still, you might just buy what your friend Carlos, who is a tennis pro, posts in a forum despite he has a Klout of 36.

Klout’s measure of influence is too shallow to give you the insight you need to figure out who influences your customers and how.

These 7 dimensions provide a framework to better understand influence in social media:

  1. Activity: how active a user is in a social networks is the simplest measure of influence. Combined with reach, it provides a basic two-dimensional model.

  2. Maximum reach: Understanding the potential impact of a user post will depend on factors such as number of followers, his recent influence upon them (number of RTs, favorites, lists) and the number of high-influencers among his following. The potential maximum reach of a user translates into what we could call OTSS (Opportunity To be Seen Socially)

  3. Social role: Malcolm Cladwell in The Tipping Point, defined 3 types of roles played by key actors in social epidemics. It maps perfectly into social media roles:

    • Connectors, or people that know who is who and who does what and can reach to them

    • Mavens, or “information specialists”, or people that know the marketplace on their area of expertise and are willing to share what they know.

    • Salespersons or “persuaders”, charismatic persons that makes other want to agree with them

  4. Authority: One of the key principles of persuasion in Cialdini’s work Influence. Authority is not universal, but rather linked to a subject. The authority of an user, can only be asserted as it relates to a subject. Mossberg’s authority in consumer gadgets will influence me in what tablet I choose to buy, but his opinion on a brand of jeans might be irrelevant to me. Oprah’s authority in regards with tennis rackets will not influence you as much as an ATP tennis player recommendation.

  5. Intimacy / affinity: Nielsen says that 26% of people are more likely to pay attention to an ad that has been posted by one of their social network acquaintances. If the tennis pro is my friend, then his chances to influence my buying decision will be higher than those coming from a pro unknown to me. How close you are to a person, and how many things you have in common will increase the likelihood you pay attention.

  6. Context: A given topic, time and place define a context in which the influence of a person can spark. Three examples of the role of context:

    • During the Egyptian revolution, the tweets from Tahrir Square provided live coverage during the protests and raised awareness regarding the protests.

    • A person that suffers a customer care issue with a brand, can see his level of influence multiplied in a topic related to his issue.

    • A person who is actively searching for the best tennis racket in the market, and posts a comparison of his findings in a forum, becomes an authority for a while. Once he’s made his purchase, he won’t maintain his comparison and his influence will diminish. As the web becomes a stream of content, the real-time dimension of influence becomes crucial.

  7. Stickiness of the message. Is the message memorable? The impact of a message will not only be linked to how many times it was displayed and how many people it reached. How effective is the message to trigger action? How effectively is it retained? If it is worth a remark, the same message will reappear in social media and influence new contexts. Sticky stories work in setting trends. Being able to identify them early gives you an edge.

Social Media is a powerful source of insight. For making business decisions in designing and measuring campaigns, in segmenting the market, or in customer care, you need a deeper understanding of influence in social media.

Have you asked yourself, what opportunities you are missing for not dealing with the true influencers to your brand? What advantage would your competitor get by mapping the top influencers in every context? Can you afford it?

 

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Why are Ad Rates still that high for Print Media?

chart-of-the-day-ad-rates

You cannot measure the real views,
You cannot measure or track the response from the viewer,
You cannot make it interactive,
You cannot personalize to a profile, not even to a microsegment,
You cannot do remarketing,
Yet… you, marketers, still pay more for Print Media Ads. Far more.*
Why?

The reason men oppose progress is not that they hate progress, but that they love inertia.
Elbert Hubbard (1856-1915)

Nowadays, would Wanamaker allow not to know which half of his ad money is wasted?**

* According to the chart from Business Insider the Cost-per-mille (CPM) of Newspaper ads is around 10 times the CPM of Desktop/iPad ads —and about 50 times the mobile CPM.
** “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
John Wanamaker (1838-1922)

*** You can write the exact post for traditional TV ad rates Vs. Online Video ad rates.
Can any marketer explain why the insistence of making Wanamaker’s quote remain true 100 years after it was made?

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How does the Future of TV look like?

YouTube localization

YouTube localization (Photo credit: Wikipedia)

Youtube turns 8 in a few days. Just a kid, but mature enough to tell us what the future of TV will look like.

According to eMarketer, in 2012 advertising spending on online video in the US was $2.9bn. A sizable market, but less than 5% of the $65bn spent on TV ads. 

Not too impressive if it were not because online video grew by 47% year on year. At that rate of growth, it would just take 8 years for online video to surpass TV ads spending. Just by the time Youtube would turn 16.

And there are reasons to believe that the 47% growth we saw this year is just accelerating, led by YouTube. Here are 3 reasons why Youtube will drive an even bigger growth:

1. Better ads.

  • Advertisers are increasing their spending.  ”YouTube is [...] home for major brand advertisers.  On YouTube, our top 100 global advertisers spent over 50% more in 2012 than they did in 2011,” they said in their last earnings call.
  • Ads are getting better both for user experience, and for brands. Advertisers like the new TrueView skippable ad format, through which they only pay if viewers watch the ad. 
  • The potential of Google to better targeting ads to user profiles and context is unmatched.

2. Better Content.

  • Growing number of Professional content available: VEVO and Liga BBVA are just two fine examples I love.
  • Perfect platform for amateurs to turn pros with an ad-based business model
  • Youtube could soon enter the paid-for-content subscription model. This hints they could start making deals for live sport events, one of the strongholds of Pay-TV operators.

3. Better Features.

  • HD at 1080p is a reality.
  • Multiscreen is a reality. Same content on mobile, tablets, PC and TV
  • Social is embedded and there are huge potential for “second screen” options that could potentially integrate better with online TV than with traditional TV

Online TV and traditional TV borders will blur. And when they do, Online has all the advantages to win.

 Milestones in Youtube early life:

  • First video uploaded (“Me at the zoo”) in April 2005
  • Google buys Youtube in October 2006
  • 720p launched in December 2008
  • One billion daily views in October 2009
  • 1080p Full HD launched in November 2009
  • 2 billion daily views in May 2010
  • Trueview ads launched in December 2010
  • 3 billion daily views in May 2011
  • 4 billion daily views in January 2012
  • First video to reach 1 billion views: Gangam Style – PSY, December 2012
  • #2 search engine (bigger than Bing, Yahoo, ASK and AOL combined)
  • 800 Million+ monthly unique visitors in January 2013
a-brief-history-of-youtube-infographic-shortymedia
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7 Weapons of Digital Disruption

What makes digital so disrupting? These are the 7 traits of digital that may disrupt your industry. Watch out!

Disruption

Disruption (Photo credit: Tsahi Levent-Levi)

1) Zero marginal cost. Digital assets, software apps and online services have virtually zero marginal cost. That is, the cost of any additional sold unit is close to zero.

Case in point: A physical CD, newspaper, book, brochure, paper form, all of them have a cost per item. Copying an MP3, publishing a blog, distributing an ebook, filling an online form have zero marginal cost. Total costs are roughly the same for 1 download than for a million.

Impact: This is the biggest disruptor. This is the enabler of a paradigm-shift business model: freemium. Your revenue comes from a small percentage of paying customers while you give your product for free to millions of users. Why freemium?

  • Free Advertising. The bigger the customer base the bigger impact of word of mouth.
  • You occupy the market to avoid other players in the field. You create your blue ocean as you disincentive other players to enter a market you already serve for free.
  • You get feedback from more customers. That means better insight into customer needs.

The result is a winner-takes-all approach. The goal with freemium is to dominate your space. You rule your own blue ocean.

2) Infinite flexibility. Software is malleable. Unlike product updates in the physical world, in software/digital products, updates have no major impacts. There is no need to change manufacturing lines. Many digital products provide for nearly invisible updates.

Case in point: Chrome release cycle of a major version every 6 weeks is an example of how easy is to keep the product in constant evolution. Users hardly notice.

Impact: That enables the Lean Startup. That is the philosophy behind Agile software development. Years ago building software had waterfall processes that resembled manufacturing. You get requirements, you build it, you test it and you release it. Nowadays it is about shipping the product as early as possible and learn from the feedback. Ship a Minimum Viable Product (MVP) good enough to test the concept with real customers. The insights from your customer are fed into the complete product. That can’t be easily replicated in the physical world. Customers today buy digital products that keep improving well after they purchased them. e.g. mobile apps.

3) Infinite connectivity. Everyone is connected now and everything will soon be too.

Case in point: 79% of North Americans are connected to the Internet. The Internet of Things is just beginning to emerge.

Impact: That means, companies have now more data sources to learn from. That means consumers have access to infinite amounts of information. Social networks have become the way to discover, filter and share information. Today, what is remarkable, spreads like a virus. Marketing has not only gone digital, it has gone social. Never was there the potential to reach so many for so little cost. In the old days, the size of your advertisement budget was a barrier of entry to your market. Those barriers are still working, but are more and more permeable.

4) Moore’s law only accelerates the zero marginal cost of heavier and heavier digital assets, such as video. Moore’s law and cloud computing are also decreasing barriers of entry to play digital, by reducing or eliminating the upfront investment in technology infrastructure.

Case in point: This is one of the forces behind Youtube turning into profits. Serving a 1080i video costs today a fraction of what serving a 240p did cost in 2006.

Impact: Startups don’t need a big investment to launch mass market consumer digital products. Dropbox is a case in point, too. Moore’s law is also partially responsible of the rise of Big Data. Now we can Manage infinite data and get fast insights from it. CIOs, CMOs and an emerging Data Science are all about it.

5) Personalization. This is derived from infinite flexibility. Digital products can be personalized to every single customer. This is mass personalization at virtually zero cost, compared to the physical world.

Case in point: Amazon’s amazing recommendation engine, that always gets to your frontpage those items you like.

Impact: Behaviors, friends behaviors, customer profiling, all is recorded and that makes recommendation and ad engines more and more intelligent. AI combined with big data promise personalized products adapted to each customer and context. From market segmentation, to micro segmentation, to a segment of one.

6) Social Media and Crowdsourcing. The self-service model of supermarkets and restaurants, is even simpler in the digital world. Users will fill in their own data, will review products, and will share to their friends. The crowds create and share content with tribes as never before. Social Media is word-of-mouth on steroids.

Case in point: Paper Encyclopedias released Appendixes units to keep up with updates. Wikipedia is updated in real-time. Second screen: Twitter trending topics are often correlated to TV shows.

Impact: Millions of Facebook users not only personalize their experience, but create content and personalize the experience of their friends. Tripadvisor and Amazon are examples of the fundamental role of customer reviews in the decision to buy. Twitter has become the social soundtrack of TV. That means you need to monitor Social Media proactively. You need to get some clarity from the noise. What they say about your brand will not be so easy to influence with a prime-time expensive ad campaign.

7) Mobility and Ubiquity. Mobile takes the Internet and all your digital assets wherever you are. Smartphones capabilities (cameras, sensors, location, customer info) provide an array of possibilities illustrated by the nearly one million apps available in the App Store and Google Play.

Case in point: Maps applications are replacing standalone GPS devices that were only surviving because of the offline maps. With connectivity everywhere, maps in the cloud become more reliable and up-to-date than stored maps.

Impact: Consumers are more informed than ever. People can check online on the store before to help in the buying decision. They can even ask their friend’s opinions in real-time using their phone cameras. Witnesses to major news end events have become first-line reporters.

Media has already been disrupted by digital. It will not be the only industry. Healthcare, education are next. How many weapons of digital disruption are already affecting your business? Do you have a strategy to defend yourself?

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Why Google gives Android for free?

mobile-advertising-forecast
You will find more statistics at Statista

The chart already answers why Google gives Android for free.

Google is set to dominate advertisement, in any digital form.

  • Google dominates online, which it is about to surpass print media as an industry.
  • With Android, Google is set to dominate mobile ads, whatever form it may take, beyond search and display. As eyeballs go to mobile, Google will have an advantage position by controlling the OS.
  • And TV is the next one to disrupt. Youtube might be turning to be profitable by now. The experiments in online video ads are beginning to pay off, as it shows the amount of content agreements Youtube is getting into.

Googe wants to control the underlying technology platform, so that whatever evolution digital ads go, they are at the leading edge. Chrome and Android are the most obvious cases. On2, Widevine acquisitions followed the same rationale.

Google strategy to kill competitors is also getting more and more obvious: Give for free the core value of your competitor.

  • Google Apps against Microsoft Office
  • Chrome and Chrome OS, to make the OS irrelevant, as all apps run in the browser.
  • Android against Apple iOS

Digital advertisement, powered by Google, is one of the biggest enablers of the Digital Renaissance. Google enables both publishers and advertisers of any size to benefit from online advertisement. They are one of the biggest ‘patrons of the arts’ for the long tail.

Highlight data points in the chart:
Mobile ads market in US is $4 bn in 2012. Facebook managed to get $339m, even if they just started mobile ads this year.

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How does Disruption look like in Print Media

Not because you already anticipated it, it’s less of a dramatic picture. The chart from Statista shows the result of how technology reinvents industries.

In 2004, Google’s $3Bn business seemed nothing compared to a $70Bn industry. Only eight years later, Google is bigger than the entire Print Media business in US.

A single company — let’s call it the disruptor— is worth more than the entire industry it disrupts, in less than a decade!

Though it is the company that gets more attacks from the newspaper and magazine industry, Google was not the only one driving the change.

  • Some years ago when you wanted to sell a car or a house, there was one obvious place to advertise: Newspapers. Nowadays you would only think of eBay, Craigslist or Carlist.
  • Bloggers were the first to grab readers from traditional media, though Google Adsense dollars helped here.
  • Then came the big social media boom with Facebook and Twitter attracting eyeballs from other media.
  • And finally, also contributing to the decline in offline revenue, Print Media has gone online, though they have not been too enthusiastic about exchanging “paper ads dollars by online cents.”

Print and online magazine advertising spending in the U.S. from 2010 to 2016
You will find more statistics at Statista

After disruption, is the resulting market smaller or bigger?
U.S. Print Media went from a $72bn peak in 2006 to $42bn in 2011. Where has all that money gone? Online, right?

According to GroupM, online ad revenue in US in 2011 was $34.5Bn (*). You make the numbers and that means that the size of Print Media + Online combined add to $76Bn. Around same market size as in 2006.

Roughly, you could conclude the combined market of “disrupted + disrupting” has not de-materialized the industry.

Jobs: A collateral damage of disruption?
The most visible effect in jobs is the change in skills and preparation. New jobs online require more preparation than those in the old industry. And for sure they need different skills.

Disruption due to new technologies often creates inflation in preparation. The lowest rank worker in the new industry will require far more preparation than in the previous one. E.g. Less skilled jobs like printing operation or distribution are replaced by technology. If you are a junior journalist you are now in the lower ranks, in the sense that the jobs less skilled than yours are all replaced by technology. You need much more preparation to be a journalist than to be a guy in the distribution chain.

On the other hand, a system like Adsense enables a bigger crowd to benefit from advertising. Now if you are a junior journalist you can join the Long Tail of  bloggers and be self-employed. Online ads, combined with indie publishing, are the foundation of the Digital Renaissance we live in.

How does print media respond to that?
Sadly enough, we have the example of France, where print media lobbies politicians to tax the innovator, in order to protect the status quo and delay the inevitable. As RIAA already demonstrated in the music industry, trying to stop change with lawsuits is not the best way to deal with disruption.

* Google makes 95% of revenues from Ads and U.S. represents 46% of their worldwide business. As Google reportedly has 44% market share in U.S. online ads, numbers are consistent.
Global online advertisement spending in 2011
You will find more statistics at Statista

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Google TV should turn into Chrome TV


Chrome has revolutionized web browsing. It has evolved the web in 3 years more than in the previous 10. ChromeOS, though, has failed to challenge the PC and laptop status quo, in part because it was conceived before the iPad era, in part because you resist to have a machine that is almost useless when offline.

But the area Chrome would revolutionize is the TV, and this is where Google opted for the Android-based Google TV. A mistake.

The TV and the Web are made to each other, and a ChromeTV would have much more impact in the TV industry than what Google TV might have. Why?
- A Web browser is something that any TV-set manufacturer would integrate without the legal issues of a platform like GoogleTV, owned by Google and tied to potential content rights and other patent issues.
- HTML5 and CSS3 provide a superb framework to develop compelling apps for big screens like TVs.
- The TV-set is “fixed” by nature. If it is connected, it will always be connected, unlike a laptop or tablet. Therefore you can live with just a browser on it. No need for a proper proprietary OS.
- The Web also on the TV? What else can Google dream that would better fit their search and ads business model?

Happy 3rd anniversary Google Chrome!!!