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Social Media Kicks
  Traditional Advertising
                  Dr. Augustine Fou
                  http://linkedin.com/in/augustinefou
                  Marketing Science Consulting Group, Inc.


March 29, 2012.                                              1
Paid Advertising
                    A                            B C                 D      EF     G




            A. Display ads   C. Rich media ads           E. Email blast   G. Email blast
            B. Email blast   D. Television integration   F. Display ads




       … is over when it’s turned off
March 29, 2012.                                                                            2
Doing social media doesn’t mean…




           … sticking display ads on Facebook
March 29, 2012.                                 3
Users trust peers most,




3/26/2012
            … and trust ads least.   4
Venues come and go
         friendster


                      facebook (red)
                      vs
         myspace      myspace (blue)




         facebook



March 29, 2012.                        5
Social Actions Are Free
     Paid Advertising                            Social Actions
                  10k Impressions                 People telling people can lead to
                                                  the same 1 action for FREE


                    0.001% click-
                         rate
                                                            Share, recommend,
                                                            comment, rate, etc.


                      1 action (go to website)                1 action (go to website)



   … and more effective (comes from a friend)
March 29, 2012.                                                                          6
Social Actions are longer lasting
    One-way Media                                     Two-way Media
                                                                       Search

                                                                       Social

                                                                       Blogs
    “it’s over after it’s aired”                                       Forums
      Even Superbowl ads stimulate only fleeting
      recall – of the top 100 daily Google searches                    Reviews
      how many were related to Superbowl ads?:
       • Feb 1: 20 of 100
       • Feb 2: 6 of 100                                “it’s archived and can be
       • Feb 3: 1 of 100                                searched or mined later”
       • Feb 4: ZERO of 100 (forgotten by day 4)



March 29, 2012.                                                                     7
Continuous customer insights
built right in
         Starbucks – ideation


         Netflix – market research


         JetBlue – amplification
March 29, 2012.                      8
Social Actions Grow in Value
                  Create   Wikipedia

                  Curate   Digg (social news)

                  Review   Amazon

                  Share    Facebook

March 29, 2012.                                 9
So what?
  From social media to stimulating social actions

      Instead of thinking of social media as just another
      way to target customers with ads, what if marketers
      focused on giving people a reason to like, rate, review
      and share (social actions) with their friends?


    Social Media                   Social Actions
                     Is “digital” your philosophy?
March 29, 2012.                                                 10
Dr. Augustine Fou – Chief Digital Strategist
    Dr. Augustine Fou is Chief Digital Strategist of
    Marketing Science Consulting Group, Inc., a company
    he founded over 11 years ago. He is an industry-
    recognized thought leader in digital strategy,
    search and social media marketing and former
    Group Chief Digital Officer of Omnicom's Healthcare
    Consultancy Group.

    Dr. Fou is also an Adjunct Professor at NYU in the
    School for Continuing and Professional Studies and at
    Rutgers University at the Center for Management
    Development, where he teaches courses on digital
    strategy, social media marketing to executives. He is a
    frequent panelist, moderator, and keynote speaker.

    Dr. Fou completed his PhD at MIT at the age of 23. He
    started his career with McKinsey & Company. He
    writes a monthly column on Integrated Marketing for
    ClickZ.com, and can be found on Twitter.com @acfou.


March 29, 2012.                                               acfou@mktsci.com   11

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Social Media Marketing Done Right by Augustine Fou

  • 1. Social Media Kicks Traditional Advertising Dr. Augustine Fou http://linkedin.com/in/augustinefou Marketing Science Consulting Group, Inc. March 29, 2012. 1
  • 2. Paid Advertising A B C D EF G A. Display ads C. Rich media ads E. Email blast G. Email blast B. Email blast D. Television integration F. Display ads … is over when it’s turned off March 29, 2012. 2
  • 3. Doing social media doesn’t mean… … sticking display ads on Facebook March 29, 2012. 3
  • 4. Users trust peers most, 3/26/2012 … and trust ads least. 4
  • 5. Venues come and go friendster facebook (red) vs myspace myspace (blue) facebook March 29, 2012. 5
  • 6. Social Actions Are Free Paid Advertising Social Actions 10k Impressions People telling people can lead to the same 1 action for FREE 0.001% click- rate Share, recommend, comment, rate, etc. 1 action (go to website) 1 action (go to website) … and more effective (comes from a friend) March 29, 2012. 6
  • 7. Social Actions are longer lasting One-way Media Two-way Media Search Social Blogs “it’s over after it’s aired” Forums Even Superbowl ads stimulate only fleeting recall – of the top 100 daily Google searches Reviews how many were related to Superbowl ads?: • Feb 1: 20 of 100 • Feb 2: 6 of 100 “it’s archived and can be • Feb 3: 1 of 100 searched or mined later” • Feb 4: ZERO of 100 (forgotten by day 4) March 29, 2012. 7
  • 8. Continuous customer insights built right in Starbucks – ideation Netflix – market research JetBlue – amplification March 29, 2012. 8
  • 9. Social Actions Grow in Value Create Wikipedia Curate Digg (social news) Review Amazon Share Facebook March 29, 2012. 9
  • 10. So what? From social media to stimulating social actions Instead of thinking of social media as just another way to target customers with ads, what if marketers focused on giving people a reason to like, rate, review and share (social actions) with their friends? Social Media Social Actions Is “digital” your philosophy? March 29, 2012. 10
  • 11. Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is Chief Digital Strategist of Marketing Science Consulting Group, Inc., a company he founded over 11 years ago. He is an industry- recognized thought leader in digital strategy, search and social media marketing and former Group Chief Digital Officer of Omnicom's Healthcare Consultancy Group. Dr. Fou is also an Adjunct Professor at NYU in the School for Continuing and Professional Studies and at Rutgers University at the Center for Management Development, where he teaches courses on digital strategy, social media marketing to executives. He is a frequent panelist, moderator, and keynote speaker. Dr. Fou completed his PhD at MIT at the age of 23. He started his career with McKinsey & Company. He writes a monthly column on Integrated Marketing for ClickZ.com, and can be found on Twitter.com @acfou. March 29, 2012. acfou@mktsci.com 11