Yesterday, we conducted a webinar on peeer-to-peer sharing. In the webinar we discussed:
1) Peer-to-Peer advertising (Digital) vs. Traditional advertising
2) The importance of peer-to-peer sharing via social media
3) Industry examples
a. Procter & Gamble
Some of the highlights:
Traditional marketing is TV, radio, and print (newspapers, magazines). For the most part, traditional marketing is a forced type of
marketing. Users of these mediums are looking for passive interaction. Personally, when I watch TV, I am there at the end of a long day, desiring to relax and shut my mind off for a few minutes. Basically, I’m there to read, listen, or watch. In comparison, the objective of an advertisement is to get people to take action.
There is a contradiction of roles. People use TV, radio, and print to relax, while advertisements want people to take action.
The advertisements interrupt the viewer’s focus. If anything, it is an annoyance more than anything else. As a result of this, the average conversion rate, or rate at which people take action from traditional marketing is 1-2%.
Peer-to-Peer Sharing – Digital Marketing:
Digital marketing is about creating and fostering relationships with people. Digital marketing is connected through its relationships with people within their sphere of influence. MavenSocial is able to track social media influencers through our dashboard analyics.
There are two types of Influencers:
1) Mass Connectors: create a number of impressions about brands and services in social networks, like Twitter and Facebook.
2) Mass Mavens: create and share content about products and services in other social channels such as YouTube, blogs, forums, o ratings and review sites.
These two types of people combine influence, trust, relevance, and scale to create powerful advocacy.
The influencers provide a high Return on Investment (ROI) because they produce Social Lift, or free traffic to a campaign. With MavenSocial, we are able to track social media influencer’s shares with their peers, allowing us to better understand who are the campaign’s (or more importantly BRAND’S) social media influencer.
Procter & Gamble: Old Spice campaign
Procter & Gamble has received a lot of press coverage over their $10 billion annual add budget, but with the introduction of digital marketing, P & G is announced that they will be laying off 1,600 staffers. When asked about digital marketing, CEO, Robert
MacDonald told Wall Street analysts that he would have to “moderate” his ad budget because Facebook and Google can be “more efficient” than traditional media. MacDonald then went on the say that “in the digital space, with things like Facebook and Google and others we find that the Return on Investment of the advertising, when properly designed, when the big idea is there, can be much more efficient.
For the Old Spice campaign, P & G expected 3-5% growth for Old Spice body wash, but actually experienced 38% growth. Old Spice could not meet demand for their product, thus shelved remained un-stocked. The overall campaign results saw Old Spice saw their brand channel #1 on YouTube, and the #2 most subscribed to. There was also 3,000% growth to their Twitter account, and close to 300% growth in traffic on oldspice.com!
Nike Digital Sport:
Nike Digital Sport is a new division of Nike, whose goal is to develop devices and technologies that allow users to track their personal statistics. An example of their latest product release is Nike+ running sensor. There are now 5 million runners that log on to Nike to check their performance. This is all part of Nike’s plan to adapt their marketing strategy towards digital marketing. Their bottom line goal is to build an online community to connect and engage consumers.
Nike’s shift to digital marketing is the biggest change since the creation of “Just Do It” or since a graphic design student at Portland University created the Swoosh!
Overall, Digital marketing is quickly over-taking traditional marketing as the best way for brand’s to create awareness, engagement, and see proven ROI on their marketing campaigns.
For the webinar presentation, check out the links below!