Archive for May 18, 2011

Motivations differ from general population

Luxury marketers take note, according to a February 2011 Affluence Collaborative survey, wealthy internet users connect with brands on social networks for significantly different reasons than the general population. The social networks they use to do so are different, too.

Among the general population, the main reason cited for connecting with brands on social networks was to receive deals and discounts. This result from the Affluence Collaborative survey backs up earlier research from several sources on why consumers follow brands on social sites.

But according to Affluence Collaborative, this was a much lower priority for the wealthy. Their top reasons for following brands were due to a preexisting affinity for and a desire to be kept informed about the brand. The least-cited reason mentioned by all groups surveyed was to be entertained, suggesting that social media marketers still need to provide fans with value, even if it isn’t directly in the form of a coupon or sale.

These findings coincide with earlier research from ExactTarget, which showed that a huge component of liking a brand on Facebook was due not just to an affinity, but as a means of self-expression for others to see. This promotional desire was more pronounced in Facebook users than Twitter followers or email subscribers. Affluents then, in their “love of the brands” they connect with, are largely acting as brand ambassadors.

On the surface, a November 2010 L2 Think Tank survey might appear to contradict these findings. Affluent members of Gen Y (ages 19 to 33) cited promotions and offers as the main reason for engaging with brands on social media. Women were more likely than men to engage with brands in general and to want to receive offers. However, the survey included those who were “projected to earn $100,000 in the next two years”—meaning the respondents were more aspiring than actually affluent. The second biggest motivator was still an affinity for the brand.

Data from the Affluence Collaborative study also reveals that the affluent aren’t using the same social networks as the general population. Facebook was the No. 1 social network used by all groups surveyed, but LinkedIn and Twitter attracted affluent internet users at nearly double the rate of the general population.

Any marketer targeting affluent consumers needs to know not only where to reach that audience, but what appeals to them. For wealthy internet users, connecting with a brand is largely about the brand itself, not gimmicks and offers. Affluents need to see a consistent message that makes following a brand meaningful for self-expression, just like when buying a brand in real life. Watering down the brand in order to gain a large social following may drive away the very people trying to be reached.

Out of nowhere, Business Insider started seeing real referral traffic from LinkedIn last month.The chart below illustrates the spike.

LinkedIn product manager Liz Walker tells us the traffic is coming from a bunch of sources – mostly new products like LinkedIn.com/Today, newsletters, and LinkedIn News.

All of these sources are programmed by LinkedIn populated “inShares,” which are kind of like Facebook “likes” or Twitter “re-tweets.”

Who knew?

Google, by the way, is trying to pull of a similar trick with its +1 button. Larry Page is obsessed with figuring out social. He’s worried about how people are finding content in their Facebook News Feeds and Twitter streams before they ever think to Google search for it. Maybe he should worry about Linkedin, too. Maybe he should just buy LinkedIn.

By Nicholas Carlson

For nearly 20 years, television manufacturers have experienced a rise in ownership of their devices. But according to new data released by The Nielsen Company, television ownership is declining, with 96.7 percent of American households now owning TV sets, down from 98.9 percent.

Nielsen cites two core reasons for the decline of TV ownership. The first is the economic downturn and lack of financial means, which is preventing people from buying digital TVs and antennas. The second key factor in TV ownership decline should be of core interest to marketers: Nielsen suggests that the younger portion of the population who are digital natives and grew up their entire lives with computers have different information consumption habits. Upon graduating college, these digital natives are opting out of buying TVs and are instead using their computers and the internet for entertainment.

It’s possible that the habits of these younger viewers may cause Nielsen to change its definition of a TV household to include internet viewers. This possible change in definition would be a major change for Nielsen as well as advertisers.

Marketing Takeaway

For marketers, television has been a primary marketing channel for many years. While TV ownership has declined, TV is still core to U.S. entertainment today. As a marketer, it will be important to continue to watch the trends of TV ownership over time, especially as advances in licensing allow more traditional TV content to be viewed online.

Additionally, if you are a marketer looking to reach the younger digital native demographic, is it important to consider their shifting information consumption habits. This younger demographic can help to serve as a leading indicator for marketers looking to test new strategies and tactics.

What do you think about this decline in TV ownership?

It’s not every day your organization earns a spot in the Guinness Book of World Records. That’s why I want to give big and much deserved shout-out to our Frito-Lay team. On April 11th, their Facebook kick-off campaign got the most fans on Facebook in a day ever – 1.5 million new Likes in just 24 hours.

Their program was a perfect example of how to effectively leverage a number of platforms across the digital ecosystem to build engagement. It included, among other components, a sponsored FarmVille in-game tie-in, a replica of the Frito-Lay Flavor Kitchen created in Times Square so people could see in-person the all-natural ingredients that go into the new Fritos flavors, a sweepstakes on the Frito Facebook page, and the launch of a series of online cooking webisodes.

In that mix you’ve got earned, you’ve got paid, you’ve got gaming, you’ve got live experience, you’ve got giveaway, and you’ve got video. It’s a great example of an integrated approach to consumer engagement, but it’s also an interesting example of moving from impressions to connections: leveraging all of the platforms at hand to drive toward connected experiences and participating in conversations on topics that matter to consumers, like the all natural ingredients Fritos are made with.

By B. Bonin Bough

Consumers are increasingly tapping into their online social networks of friends, fans, and followers to discover, discuss and purchase goods and services, according to analysis from trendwatching.com. The consumer trend analysis firm calls this trend the “F-Factor,” with the “F” standing for friends, fans and followers.

Sources Become Trusted

As a result of social networking and other online communication technologies, consumers can now use trusted sources they know to obtain information about products and brands, rather than rely on third-party advertising or perform extensive first-hand research.

trendwatching.com advises that consumers have always relied on word-of-mouth advice from friends, relatives and associates, but modern technology is greatly accelerating its development as a major influencer of purchase decisions.

Facebook Dominates F-Factor

The F-Factor is currently dominated by Facebook, according to trendwatching.com, as April 2011 Facebook data indicates 500 million active users spend more than 700 billion minutes a month on the site and every month, more than 250 million people engage with Facebook across more than 2.5 million external websites.

In addition, 2010 Facebook data shows the average user clicks the “Like” button nine times each month and February 2011 Ad Age/Ipsos data shows three-quarters of Facebook users have liked a brand.

Consumers ‘F-Discover’ Best of the Best

trendwatching.com has broken down five key ways the F-Factor influences consumer purchase decisions. The first, “F-Discovery,” involves consumer desire to own or experience the best of the best and their desire for serendipity, excitement, interaction and community. People are curious and interested in what their friends and contacts think, do, eat, read, listen to, drive in, travel to and buy, because often this will be similar to how they want to think, act and buy.

Thus consumers are embracing communities, tools and apps that allow them to dive into and discover selections from friends, fans, followers, and so on.

Consumers Want ‘F-Rated’ Products

While consumers sometimes enjoy finding the best of the best through discovery, they are increasingly able to access personalized recommendations and reviews on something they know they want to purchase. In fact, trendwatching.com expects more and more sites will automatically serve up friends’ recommendations, ratings and reviews next to goods and services that people are researching.

‘F-Feedback’ Makes Recommendations Personal

Anonymous reviews aren’t always what consumers need or want; they can lack relevance and context, and consumers with many options sometimes just want an unambiguous, or finite opinion. F-Feedback involves consumers actively disclosing their purchasing intentions and reaching out to their friends and contacts for personalized feedback.

trendwatching.com further advises that with more and more consumers increasingly viewing their online reputation as something to enhance as well as just protect, the quality of answers on Q&A services is rapidly improving.

‘F-Together’ Makes Shopping Social

While group-buying platforms such as Groupon are revolutionizing local, consumers usually don’t actually know the other members of the group that they’re buying with. So, while consumers get to leverage the power of the web to benefit from better deals, the actual shopping experience frequently lacks the F-Factor. Consumers, of course, have strong incentives to share certain purchases, especially for F-Factor-friendly experiences such as buying event tickets where consumers can now automatically invite friends to a concert or movie right after purchasing a ticket.

‘F-Me’ Individualizes the F-Factor’

trendwatching.com refers to the trend of personalized products and services based on the activities and output of one’s social network as “F-Me.” This includes services that turn a user’s Facebook page into a daily newspaper and a user’s Twitter feed into a published journal.

Look for ‘Twinsumers’ and ‘Social-lites’

Both of these types of online consumers were identified by trendwatching.com in December 2010 as critical to spreading positive word-of-mouth recommendations. Twin-sumers are consumers with similar consumer patterns, likes and dislikes, and who are hence valuable sources for recommendations on what to buy and experience; while social-lites are consumers who consistently broadcast information to a wide range of associates online.

Source: Marketing Charts