Marketing in Today’s Open & Social World

Mark Suster

YPO – January 2013

@msuster

Ex software developer (‘91)

BuildOnline (’99)

Koral / Salesforce.com (’05)

VC at GRP Partners (‘07)

Both Sides Of The Table

The Marketing Landscape Changes Very Quickly These Days.

Offline

• TV• Print• Radio

Pre Web

Online

• Display• Email• SEO• SEM

95 - 2007

Social

• FB Ads• FB Likes• Twitter• FB Timeline

08 - Now

Mobile, Video, Images

• Pre-roll• Overlays• Brand Integration• CPI

10 - Now

Who Knows?

Future

What IS Clear Pace of change will accelerate

All marketing is becoming digital or being supported by digital measurement

You need to be metrics driven & test a lot

You need to monitor emerging trends & experiment (saying it’s for the younger generation is no longer an excuse)

A Quick Primer on Social Networks

In the 80’s there were already “social networks” but they weren’t open.

In the 90’s AOL bridged the gap between pre-Internet & Internet with a Walled Garden

Web 1.0 made it easier to have personal pages on “the web” (e.g. not AOL). But publishing was one way

Web 2.0 was born: 2-way communications and easier to publish multimedia

Blogging Photos Video

Facebook won the war for broad-based social networking in 2008 & has since gone mainstream.

Twitter is really a totally different paradigm. Twitter makes things

“open” Asymmetric Public Limited characters;

thus Link-sharing

platform

Twitter is a much more pervasive business tool than people comprehend

Marketing channel News reader Instant messaging Data mine Customer service

Dept

And we all know that social is going mobile

All of the major networks are battling for primacy of your time.

Open, Media Centric

Business Networking

Broad Based Networks

Wants to be your “second screen” TV

Our unique online persona / next generation email address

Digital resume Industry

networking Sales & marketing

tool

Your portal to the web

Communications, entertainment

Longer-term: payments

Quick View of the Future

1. We’re going from a Social Graph to an Interest Graph.

Who You Know What You Like

2. From Closed to Open DataTimeline Your Friends See

“Open Graph” & Tweets That Anybody Can See

3. From Web to MobileWeb Browsers Mobile Apps

Location aware Personal device Bottom end of sales funnel Smaller form factor

4. From Text to Images to Video

Yesterday - Texting

Tomorrow - Video

Today – Image Sharing

What will this all mean:• for you? • for marketing?

The First Version of Online Marketing Was Buying Banner Ads – sold like print as CPMs

Banner

Skyscraper

But People Don’t Pay Attention to the Banners

Banner

Skyscraper

99% of User Attention

Jakob Neilsen eye-tracking has confirmed this:click through rates (CTR) = 0.08%

Next Came “Sponsored Search” – 80+% of All Internet Advertising $

1. Intent-Based Ads

2. Organic Result

Search Term

With any monetizable search term Google becomes a pretty hostile place for users & expensive for

advertisers

1. Intent-Based Ads

2. Organic Results

3. Google Comparis

on Shopping

Monetizable Search

Term

The Power of Google is Precisely That They Drove Such a High Percentage of Most Sites’

Traffic

1999

Banner AdsPlacement

Deals

Direct Traffic75%

15%

10%

2005Banner AdsPlacement

Deals

Direct Traffic

Organic Search

Paid Search

30%

20%

30%

7.5%7.5%

2005Banner AdsPlacement

Deals

Direct Traffic

Organic Search

Paid Search

30%

20%

30%

7.5%7.5%

But Google Became Vulnerable to Social Networking & Why You Need to Pay Attention

to Social

2013Banner AdsPlacement

Deals

Direct Traffic

Organic Search

Paid Search

20%

15%

20%

5%5%

Social +30%

And Then It All Changes Again ;-)• Mobile• Video

Mobile form factor makes ads harder. Plus it’s a phone. Easy to imagine the most effective ad unit.

Tiny Banner Click to Call

In video the ad unit is also pretty obvious: Videos. Although shorter in format than TV

Pre-

Rol

l

Video

Brand integration (aka product placements) is also performing well. Example: Style Hauls

Blair Fowler Elle Fowler

750,000 views

Making Social Media Actionable

Blogging is the foundation. It helps build a direct relationship with your audience. Build “point of

view” marketing

Twitter is where your customers go to amplify word of mouth feedback

“American Airlines #Sucks”

“#EpicFail at BestBuy today. No customer support

“You’ve got to go see #Argo – best film of the year”

The information is not anonymous. You can find out your influencers & conversions and build programs around them.

$94.09direct purchases

$97.09downstreampurchases

2downstreamshares

14downstreamclicks

19clicks

$78.12direct purchases

9clicks

$19.78direct purchases

5clicks

$18.41direct purchases

7clicks

$57.50direct purchases

$331.22downstreampurchases

6downstreamshares

58downstreamclicks

15clicks

$74.21direct purchases

1downstreamshare

7downstreamclicks

11clicks

$65.02direct purchases

7clicks

Twitter can be also be used to drive audience to your blog to grow your influence with your key constituencies

It’s about winning “share of mind”

Blogs can be used to inform customers about your products and drive traffic to your website / products

Your Website

Blogs & Websites improve inbound traffic to your website by giving you more content to be searched

Your Website

Your blog & website can drive traffic to Facebook where you can build “fans” and engage with

customers

Your Website

And of course Your blog, website & Facebook help you add more Twitter followers.

Your Website

Which is how a guy like me with no staff to support him gets

Your Website

86,000 Followers

300,000 - 600,000

Monthly Page Views

90+% of GRP’s

Inbound Traffic

12,600 Fans

And if I Could do it With No Staff, Imagine What Your Company Could Do

Just get over your stereotype that social media is about telling

people what you had for lunch

Marketing in Today’s Open & Social World

Mark Suster

YPO – January 2013

@msuster