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Marketing in the era of Social MediaΠανεπιστήμιο ΠειραιάBusiness Week 2011

Christos LatosManaging DirectorOgilvyOne Worldwide, Athens

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“In 2010, the smartest brands realized that the model is not 360, it's 365.

This means thinking editorially, reacting in real time and engaging in reciprocal conversations with ‘people’ (previously known as ‘consumers’) to distribute content that feels generous, useful and personalized.

As Contagious has always said, the best brands are those that see themselves as networks which can connect like-minded people around shared interests and causes.”

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visit Twitter each month75 million

50 million Tweets each day

SOURCE: Twitter Blog, "Measuring Tweets," February 22, 2010 and comScore

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of online users globally have createda social network profile58%

500 million on Facebook alone

SOURCE: Universal McCann Social Media Tracker and Facebook

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Greeks on Facebook

3.288.000

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Social Media Revolution

Video case study

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It’s a fundamental shift in the way we behaveand communicate.

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Evolution of a MegaphoneA short history of advertising up to the era of Social Media

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In the beginning of advertising…

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The first “marketer” used a megaphone to advertise his goods!

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…a few “consumers” gathered to listen. But the marketer needed more “reach”.

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Then posters covered the streets…

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…and outdoor advertising created more reach. But it wasn’t enough.

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Newspapers and magazines informed the world.

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By placing ads in print, the marketer reached even more. Again and again…

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Then radio came along. A medium, that could reach, inform and entertain more.

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So the marketer interrupted shows with radio spots. Again and again and again…

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Technology then brought us the most powerful medium of them all. Television.

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So more shows were interrupted by more TV commercials, again and again...

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Until one day…

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…a wonderful machine was placed in the hands of the consumer.

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It was simple. The first thing the marketer did, was to place banner ads online.

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Until a “second” day… People started talking back!

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…and other people listened…

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…and talked to each other, about things they were interested in and engaged with.

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Why brands should be active in Social Media?

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The goal

• To create an online community that will bring together people with common interests.

• Feed them with relevant and useful content.

• Trigger conversations around the brand.

• Bring consumers closer to the brand and make them brand ambassadors.

• Become more Social…

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Social Currency

• Research company “Vivaldi Partners” says that brands need to build and nurture a social currency.

• Social currency is defined as the extend to which people share the brand or information about the brand as part of their everyday social lives.

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Impact of Social Currency on brand performance

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How much is a Facebook Fan really worth?

• Social Media tech company Syncapse conducted a quantitative research by using an online panel of 4,000 fans of 20 of the top brands on Facebook.

• Including Nokia, BlackBerry, Victoria’s Secret, Adidas, Nike, Coca-Cola, Starbucks and McDonald’s.

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Deriving fan value

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How much is a Facebook Fan really worth?

• Product spending – FB fans spend on average $71.84 more than non-fans over two-year period.

• Loyalty – FB fans are 28% more likely to continue using a brand than non-fans.

• Tendency to recommend – 68% of fans are “very likely” to recommend a product to family and friends (as opposed to 28% of non-fans).

• Brand affinity – 81% of fans feel a connection to the brand (versus 39% of non-fans)

• Together these attributes roll into a sophisticated formula which yields an average annualized value of $136.38 per fan.

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Product spending: Fans vs non Fans

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Case studies

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Old Spice

Video case study

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KLM Surprise

Video case study

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Lacta - loveinaction.gr

Video case study

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So what can a marketer do, in an age when the consumers do all the talking?

?

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The Evolution of a Megaphone in the era of Social Media

Shout Listen Provide

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"When you are close to who you're talking to, there's no need to shout."

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Thank you!Christos.Latos@ogilvy.com