The wisdom of the masses
Online advertising Social media are becoming the favorites of media buyers in the USA.
Online advertising Social media are becoming the favorites of media buyers in the USA.
A new advertising strategy is spreading in the USA: quantity is no longer the be-all and end-all. Quality is increasingly in demand. "Engagement" is the mantra of the new digital world, i.e. no longer necessarily how many consumers see an advertising message, but how closely a customer engages with it. And what better medium for this than the Internet, especially networking sites such as MySpace and Facebook, blogs and video sites such as YouTube, where endless user-generated content can be seen. These sites, where users come into contact with each other and contribute content themselves, are summarized by the industry under the term "social media". According to a report by the US industry service eMarketer, 70 percent of all teenagers and 37 percent of American adults used social networking sites at least once a month last year. Where there is media usage, marketers are not staying away: according to a survey by research company Advertiser Perceptions, 76 percent of all advertising companies surveyed intend to spend more money on online advertising this year, while 78 percent said they would spend less or the same amount on television advertising as a year ago.
In contrast, advertisers spent a total of 920 million dollars on networking sites last year, an increase of 163 percent. "The maturing of interactive channels and the simultaneous development of technical possibilities is leading to a customer-centric future, with interactive technologies influencing all marketing tools", according to a report on the subject by the market research institute Forrester.
The biggest problem, however, is that there are no uniform standards for measuring "engagement". Furthermore, it is a fact that "people use these networking sites because they are interested in other people and not in a product," says Shelby Saville, Director at Spark Communications, the digital media agency of the advertising purchasing company Starcom MediaVest. However, no marketer can ignore the new medium, especially those who want to appeal to a young audience. It is therefore important to "set a clear goal and disclose what you want to achieve with it". Experience has shown that company representatives who keep their identity secret, pretend to be consumers in online forums and praise their product to the skies, end up being exposed and mercilessly ridiculed.
There is no shortage of campaigns, as all major marketers, from Microsoft to Budweiser beer, are taking advantage of the new opportunities. The campaigns range from simple MySpace posting boards, where fans of the Toyota Yaris, for example, can express their love for the car, to sophisticated collaborations. Two years ago, for example, Burger King was one of the first companies in this field to sponsor downloads of the Fox series "24" and was thus able to be sure of the commitment of young Jack Bauer fans. One unsuccessful example of the use of social media is a Wal-Mart campaign on Facebook, where the focus was on the advertising messages but no space was created for users to interact.
Networking sites are particularly attractive because of their authenticity. Many young consumers tend to recommend products or content that they find cool to their friends online. According to a study by the market research company Nielsen, 78% of consumers trust a recommendation from a friend, compared to a meagre 26% who follow the advice of an online advertisement, for example.
To stand out in the maze of advertising messages, small and medium-sized companies in particular use social media creatively. Canadian shoe manufacturer Fluevog, for example, decided not only to set up a MySpace page for its products, but also to involve its customers in one of its media buying decisions. As part of the "Vog Populi" online campaign, the company asked its fans on the company website to choose between three different art and music magazines to decide by majority vote which of the three papers Fluevog should end up advertising in. "Our customers are known for their loyalty to our brand, and we want them to feel that we value their feedback," says Fluevog Marketing Director Stephen Bailey. The proportion of ads selected by clients for the final chosen paper, "Juxtapoz", accounted for ten percent of Fluevog's annual media buying budget for 2007.
Brad Adgate, Research Director at the media research institute Horizon Media in New York, says this is the first time he has heard of such an unusual campaign, but immediately likes the idea: "This falls under the label of the wisdom of crowds," he says. "Consumer-generated content and consumer participation is a hot trend in other areas, so why not in media buying too?"
Gerti Schön, New York
Rapid growthUS advertising expenditure for social networking
2006-2011 and growth in percent
2006 $ 350 million
2007 $ 920 million (163 %)
2008 $ 1.56 billion (70 %)
2009 $ 2.02 billion (29 %)
2010 $ 2.4 billion (19 %)
2011 $ 2.7 billion (13 %)
Source: eMarketer
Annotation:
The table includes social networking sites such as MySpace and networking offerings from portals such as Google and MSN, but not content sites with networking features such as YouTube.
