influence

Recommendations From Friends Are Most Influential but TV Still Ranks Highly

source: http://www.marketingcharts.com/wp/television/data-dive-us-tv-ad-spend-and-influence-22524/

Nielsen-Most-Influential-Forms-of-Advertising-Sept2013So why do advertisers keep pouring money into TV, even amidst the rise of everything digital, and even as audience numbers plateau? If the preponderance of research is to be trusted, TV is among the most influential and most favored advertising media – if not the most highly rated. Following is a select list of studies touting TV advertising’s influence (most confined to the US), in reverse chronological order.

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Tuesday, October 15th, 2013 news No Comments

Why Google Is The Grinch Who Stole Your Business

Source: http://www.businessinsider.com/the-grinch-who-stole-your-business-2011-12


Google Sign

It’s that time of year when we all reflect on the past, search our souls and determine what we want for the next year. I’ve been reflecting on what it means to work with a company that controls so much of the market, provides such a broad set of capabilities and delivers such a large percentage of monthly revenues to publishers. Of course, I’m thinking of Google and what their dominance in the ad market means for a publisher’s future and its ability to remain relevant to marketers.

What do we know about Google? They are this great company that gives consumers some of the best digital products available on the Web: search, email, maps, Android, apps and more. This has catapulted Google to the rank of second most valuable brand, behind only Apple, according to Millward Brown. This seems to be great for consumers, but what about the businesses who are now reliant on Google for search and display revenue, advertising technology and various business applications like Google docs, Android OS, Chrome, etc.?

Many of the businesses I meet with hold Google in high regard because of the products they represent and the amount of revenue they provide. However, these businesses are equally concerned about Google’s consumer stranglehold, their influence over the ad ecosystem and their focus on automation, all of which lessens the publishers’ worth in the value chain as a whole. Google’s market dominance stretches well beyond search, which in itself is obviously enormous. This expansive dominance should be alarming for every marketing-related business, including publishers, advertisers and agency and marketing services technologies.  Here are a few stats on Google by category that will likely frighten even the largest of these businesses:

  • 65.38% Share of Search, Oct-11 Hitwise
  • 44.1% Share of Ad revenue, Oct-11 PCMag
  • 43.8% Share for Video, Oct-11 Comsccore
  • 30.03% Share for Travel, Oct-11 Comscore
  • 22.38% Share for Automotive, Oct-11 Comscore
  • 18.69% Share for Shopping, Oct-11 Comscore
  • 16.29% Share for Health, Oct-11 Comscore

If these stats weren’t enough to dampen your holiday spirit, Google now is even prioritizing their own products above the paid search listings on their search engine. This creates a major conflict for the advertisers that have made Google what it is today and may force those clients to pay even more if their advertising is to remain competitive in this new bidding landscape. Google clearly is leveraging its position of power with consumers to launch new products and ensure their own success. The latest example of this is the promotion of their Chrome browser on the Google homepage. As you can see from the chart below, Chrome is rocketing to the position of #1 browser, a rank it is projected to achieve by June 2012.

Google is now a major threat to every business in the publishing and advertising marketplace. In the short term, while they may appear to be a superior partner that provides revenue and marketing innovation, I believe that over the long term they are eroding the value of each and every business in the media sales and publishing value chain. And, worst of all, they are charging heavily for the privilege. I’d estimate that for every dollar spent by an advertiser in the media buying process, Google captures upwards of 25% in tolls (via their various ad services, DFA, Invite, DFP, AdX, Motif, Admeld, etc.), thereby minimizing revenue and profits for publishers and other vendors along the way

So as you reflect on 2011 and consider whom you want to partner with in 2012, give some thought to the short versus the long term. What is your value proposition to clients? And who do you ultimately want to run your business … the Grinch or You?

Have a great holiday and Happy New Year!

The views expressed here reflect the views of the author alone, and do not necessarily reflect the views of 24/7 Real Media, its affiliates, subsidiaries or its parent company, WPP plc

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Tuesday, December 27th, 2011 news No Comments

John Bell, Managing Director, Oglivy 360

Source: http://blog.compete.com/2011/11/14/digital-cmo-series-john-bell-managing-director-oglivy-360/

“Even Social Media needs brand management.”

At the 2011 Digital CMO Summit, John Bell, Managing Director at Ogilvy 360 shared his thought provoking presentation – Overcoming the CMO’s Dilemma. John discussed a number of key questions and challenges that CMO’s are facing as brands begin to move from experimentation into operationalizing” social media.  It’s not as simple as senior marketing executives finally “getting it.” CMOs and their immediate teams are faced with some organizational issues, capability gaps, and the unforeseen consequences of embracing social media marketing and communications. Below are the 7 big challenges that must be overcome in order to reap the largest business value from social media:

1. Challenge: The Curse of the Channel Mindset

Solution: Plan around owned, earned and paid ‘engagement’
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2. Challenge: Understanding what to value

Solution: Adopt a new model that values behavior
____________________________________________________________

3. Challenge: Uncontrolled growth

Solution: Social Brand Management
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4. Challenge: What do I do with my Web site

Solution: Develop a content strategy
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5. Challenge: Assigning the right roles

Solution: Form a “center for excellence”
____________________________________________________________

6. Challenge: Building knowledge and capacity

Solution: Train, train, train
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7. Challenge: How else does social media drive value?

Solution: Develop a social business strategy
____________________________________________________________

Hear from John as he discusses the 7 big challenges and more on the CMO’s Dilemma on the Compete YouTube Channel.

About John: John Bell, managing director at Ogilvy, developed and leads 360° Digital Influence, the world’s largest, award-winning network of social media strategists, with team members in more than 27 countries. Bell and his team have designed integrated social media strategy and programs for B2B and B2C businesses as diverse as Unilever, American Express, Dupont, LG, and Lenovo. Bell has also received recognition for his enterprise social media strategy for The Ford Motor Company.


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Thursday, November 17th, 2011 news No Comments

Stop paying Kim Kardashian $10,000 per tweet – She’s NOT Influential if no one re-tweets

Source:  AdAge.com

Yahoo Scientist Questions ROI of Kardashian’s Sponsored TweetsDuncan Watts Explains His Model for Predicting Value of Influencers on Twitter

Ad Age Digital Conference

NEW YORK (AdAge.com) — Stop paying Kim Kardashian $10,000 per tweet. That’s the recommendation based on the work of Yahoo’s principal research scientist Duncan Watts, who presented his findings at Advertising Age’s DigitalConference.

“If you recruit enough people who, on average, influence just one other person, you could get a much better return on investment if you aggregated them and altogether paid them a tenth of what Kardashian gets.”

But in looking at influencers, Mr. Watts found that it’s incredibly hard to predict who will be a major factor on Twitter, a conclusion that runs counter to the prevailing wisdom of social epidemics popularized by the book “The Tipping Point.” While he acknowledges there are certain personalities such as Kim Kardashian who can potentially trigger a larger cascade of re-tweets given her large amount of “followers” (“Tipping Point” enthusiasts call her a connector), close studies of social platforms reveal that influence is spread more efficiently and more reliably when done through many-to-many connections, rather than through a few highly connected individuals.

“Most of them will send tweets, and no one else re-tweets,” Mr. Watts said. “A lot of times, not that many people are listening on Twitter.”

More supporting details here: http://www.marketingcharts.com/direct/celeb-twitter-followers-have-low-authority-13297

Celeb Twitter Followers Have Low Authority

While celebrities have high numbers of Twitter followers, those followers usually have minimal reach and influence, according to social media consulting firm Sysomos.

Celebrity Followers Offer More Quantity than Quality
Celebrities seem to have large amounts of followers with low Twitter authority levels (see “About the Data” for more information on how authority levels are determined). Of five celebrities examined, the average follower of President Barack Obama had the highest authority rating on a scale of 0 to 10, 2.4. The most common authority score among Obama’s roughly 4.2 million followers is 1, held by 20%.

sysomos-twitter-celeb-june-2010.jpg

Interestingly, the celebrity whose fans had the second-highest authority score of 2.1, pop singer Lady Gaga, had the second-lowest following of about 4.5 million. The most common authority score of followers of all celebrities except Obama was 0.

Actor Ashton Kutcher had the highest number of followers (about 5.1 million), and the third-highest average authority score (1.8). Pop singer Britney Spears had the lowest average follower authority score (1.3) and second-highest number of followers (about 4.8 million).

Celebrities seem to have large amounts of followers with low Twitter authority levels. This could be because they attract everyone from all walks of life. Some people may only be on Twitter to see what their favorite stars have to tweet about. In addition, most celebrity followers tracked by Sysomos had few followers themselves, pushing down their authority scores.

Social Media Heavyweight Followers Have Most Authority
Social media heavyweights, private citizens who have made a name for themselves on Twitter, had the fewest followers but the highest average authority scores for their followers. Following the pattern seen with celebrity tweeters, the social media heavyweight with the fewest followers, Jason Falls (27,195), had the highest average follower authority score (4.8).

sysomos-twitter-heavyweights-june-2010.jpg

Conversely, the two social media heavyweights with the most followers, Chris Brogan (139,693) and Jeremiah Owyang (64,775), tied for the lowest average follower authority score of 4. The most common authority score for all social media heavyweight followers was either 4 or 5.

Online Media Beats Traditional Media
On the whole, the five news/media sources tracked by Sysomos show more variety among their scores than the celebrities or social media heavyweights. However, online media sources attracted fewer followers with higher average authority scores than traditional media sources.

sysomos-twitter-newsmedia-june-2010.jpg

Online media source Read Write Web, with about 1 million followers, had an average follower authority score of 3, which was also its most common follower authority score (19%). This tied online media source Mashable in average authority score, most common authority score and percentage of followers with the most common authority score. Mashable has more followers with about 2 million.

Online media source Tech Crunch ties traditional media source Time.com with an average follower authority of 2.4 and most common follower authority score of 2, at virtually the same percentage. However, Time.com has significantly more total followers (2.1 million) than Tech Crunch (1.4 million).

Traditional media source New York Times has the highest total number of followers (about 2.5 million) and lowest average authority score (2.2). It also has by far the lowest most common authority score of 0 (22%). Not surprisingly, sources that specialize in social media attract users that are more active on Twitter.

Facebook Fans More Valuable Customers
While there is variation in the value of different types of Twitter followers, on the whole Facebook fans of a brand provide more value as customers than non-fans, according to a new study from digital consulting firm Syncapse Corp.

The average value a Facebook fan provides a brand is $136.38, but it can swing to $270.77 in the best case or go down to $0 in the worst. This value is based on Syncapse analysis of five factors per fan: product spending, brand loyalty, propensity to recommend, brand affinity and earned media value.

On average, a Facebook fan participates with a brand 10 times a year and will make one recommendation. Value can differ significantly by individual brand. For example, in the case of Coca- Cola, the best case for fan value reaches $316.78 but is $137.84 for an average fan. In the worse case scenario, a fan is worth $0.

About the Data: Using its social media monitoring and analytics platform, Sysomos looked at the authority rankings of five celebrities, five social media heavyweights and five media organizations. Rankings were based on the kind of Twitter users following these celebrities, social media heavyweights and media organizations. Each Twitter user is assigned an authority ranking between 0 to 10 – with 10 signifying someone with very high reach and influence. This authority ranking is based on the number of followers, following, updates, retweets and several similar measures used by Sysomos.

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Tuesday, May 4th, 2010 analytics 1 Comment

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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