Archive for October, 2007

Recommendations from Consumers Most Trusted

Wednesday, October 31st, 2007

Nielsen’s Online Global Consumer Study again shows that word of mouth- recommendations from other consumers is the number one influencer prior to purchase.

  • 78% Recommendations from consumers
  • 63% Newspapers
  • 61% Consumer opinons posted online
  • 60% Brand websites 
  • 56% TV
  • 56% magazines
  • 54% Radio
  • 49% Brand sponsorships
  • 49% Email I signed up for
  • 34% Search engine ads
  • 26% Online banner ads
  • 18% Text ad on mobile phones

 ”The recommendation of someone else remains the most trusted source of information when consumers decide which products and services to buy,” said David McCallum, the global managing director for Nielsen’s Customized Research Services.  “Given that nothing travels faster than bad news – with estimates that reports of bad experiences outnumber good service reports by as many as 5:1 – the importance of responsive, high quality customer service is yet again highlighted.”

And it once again higlights the pressing need for online reputation management.  Those customer comments and reviews are available in search and will influence others.

Although this study is aimed at advertisers, it holds some lessons for PR too. It clearly shows that the conversation is influenicng others far more than advertising is. Word of mouth has always been the ‘holy grail.’ But now that we have people talking to each other online the sphere of influence has expanded exponentially.

Small wonder then that the most popular sessions at the PRSA conference were those dealing with PR, social media and engaging in the online conversation. 

Social media and online reputation management will continue to be hot PR issues in 2008. 

I’ll be speaking at the Advanced PR Tech workshops in NYC or San Francisco.  Come and learn the social media ropes from some of the best minds in the field.

 



Social Networking: Tips for Reputation Management

Monday, October 29th, 2007

Two recent articles on MarketWatch cover the growing concern about personal reputation management when you participate in social networking sites like Facebook. 

Once the favored hang out for college kids, Facebook has grown in popularity with young (and the not so young) business professionals. So much so that Microsoft has bought 1.6% of Facebook for $240 million, valuing the social-networking firm at $15 billion.

“Social networking is having more of your self out there at a professional level. It’s drawing that line between what’s professional and what’s personal,” said Charlene Li, an analyst with Forrester Research.
Andrea Coombes offers these tips for staying safe on social networks:
  • Look for tools that allow you to restrict access to your profile.
  • Limit the degree to which you associate your online profile with work
  • Don’t alert people that you’re leaving town
  • Be careful about whom you agree to “friend”
  • Think twice about what you’re posting
  • On Facebook, every time you join a network, adjust your privacy settings to ensure you don’t reveal all to everyone in that network
And the problem can arise from other forms of social media too. New York City marketing executive, Stephanie Fierman discovered that an anonymous blogger had posted ‘disparaging and inaccurate’ content about her online.
It’s troublihng says Fierman that what’s said and written about individuals — even anonymous and inaccurate comments — can impact how someone’s perceived and judged by others, including potential clients, employers, and employees.
The first issue of my new PRoactive Report covers online reputation management in depth – for companies and individuals.  There is no charge for this first issue.  It will be released at the Bulldog Reporter Advanced PR Tech event in New York November 16th.
If you’d like a copy send me an email.



Dell Goes From Zero to Hero

Thursday, October 25th, 2007

In 2005 Jeff Jarvis unleashed a storm of blog criticism on Dell and created the Dell Hell debacle.  In a recent article in Business Week he writes that Dell has embraced the online conversation and leaped from ‘worst to first.’  

Has it made a difference, asks Jarvis and the answer is a resounding yes. 

By Dell’s measure, negative blog posts about it have dropped from 49% to 22%. And the Dell Hell posts on my blog, which used to come up high on a Google search for the company, are now relegated to second-page search-engine Siberia.

“That change in perception just doesn’t happen with a press release,” says Dell blogger Lionel Menchaca.

And the opportunities created by the conversation go far beyond dousing fires, says Jarvis. Dell’s customers now make product suggestions and warn of problems.  They help fellow customers fix them.  In fact, customers share their knowledge in so many ways that Dell’s team says the challenge is to manage that knowledge and spread it.

If you are not listening to the conversation and engaging with your customers online yet make it top your list for 2008.

 

 

   



Social Media Drives Traffic to Leisure Retail Sites

Wednesday, October 24th, 2007

Interesting figures from the recent comScore study – social media aficionados are more likely to frequent leisure retail websites.

More than 95 percent of heavy social networkers visited retail sites in August, compared to 80 percent of the total U.S. Internet audience. And they have a particularly high tendency to visit the more leisure-oriented retail categories: entertainment (music, books and movies) fashion (apparel, jewellery/luxury goods/accessories) and retail technology (consumer electronics, computer software and hardware) “People typically enjoy sharing their experiences with these products, whether it’s to talk about their new iPhone or the pair of designer jeans they just bought,” says comScore Chairman, Gian Fulgoni.“People typically enjoy sharing their experiences with these products, whether it’s to talk about their new iPhone or the pair of designer jeans they just bought,” says comScore Chairman, Gian Fulgoni.What type of sites are top of their list?  Apparel.  The top ten sites were all fashion and apparel sites oriented to young adults.

“People typically enjoy sharing their experiences with these products, whether it’s to talk about their new iPhone or the pair of designer jeans they just bought,” says comScore Chairman, Gian Fulgoni.What type of sites are top of their list?  Apparel.  The top ten sites were all fashion and apparel sites oriented to young adults.Lesson to be learned: If you have a product that appeals to the young adult, use the social networking and content sharing venues to attract visitors.  Look into providing social media tools and creating a social networking and content sharing environment on your own site.



Companies Need to Learn to Compete in a Transparent World

Tuesday, October 23rd, 2007

So says a new study from Deloite and Touche.

“Enabled by new information technologies, consumers have real-time access to information, insight and analysis, giving them an unprecedented arsenal to help make purchase decisions. At the same time, these technologies provide a voice and a venue for anyone with something to say, allowing individuals to shape reputations of consumer companies and their products.”

Consumers are turning to online reviews in large numbers, and those reviews are having a considerable impact on purchase decisions -

  • 62 percent of consumers read consumer-written product reviews on the Internet,
  • 8 in 10 say their purchase decisions have been directly influenced by the reviews, either influencing them to buy a different product than the one they had originally been thinking about purchasing, or confirming the original purchase intention
  • Reputation and word of mouth – both factors that are greatly influenced by online reviews – are the key factors that influence consumers’ decisions to purchase a new product or brand
  • While the percentages were slightly higher for the younger generations, all age groups are reading and acting on online reviews at significant rates

I spent the weekend reviewing the entries in the community and virtual worlds category for the Society for New Communication Research Awards. (I am a Senior Fellow there.)  Some companies have taken this idea of online word of mouth to heart and are really getting it right.  The results will be announced at the SNCR symposium in Boston in December.

Have you got a social media strategy for 2008?

 

 



RSS Strategy Webinar

Monday, October 22nd, 2007

If you’re still in the dark about RSS – how it can improve search results, online visibility and get your news out online – I’m doing a one hour free webinar tomorrow at 10 am Pacific and 1pm Eastern.

Email Mary Anderson for an invite.  You can reach her at mary at press-feed dot com (apologies for writing it this way but we have to circumvent the email spammers)  You can also call her on 626 793 4911



Does Social Media Marketing Really work?

Saturday, October 20th, 2007

Yes, if it’s done right says Forrester Research. However, it’s not done right too often finds a recent report from Jupiter Research.

Forrester recently announced the finalists and winners of their Groundswell social media marketing awards. Good to see Dell in the company transformation category.

Details of the winning campaigns are in this post.

On the other hand Jupiter Research’s report called Bringing the Message to the Masses says that viral marketing is not as effective as marketers might like think it is. In fact only 15 percent of viral marketing efforts of the past year actually succeeded in getting consumers to spread positive word of mouth.
 
Don Pepper, c0-author of the upcoming book Rules to Break and Laws to Follow, says he was not surprised by this finding. “One of the conclusions we have reached after taking a close look at the mechanics of social networks and customers connecting with other customers is that it is a lot harder to generate positive word-of-mouth among consumers than most marketers believe.”

Emily Riley, author of the Jupiter report, commented that marketers often miss the concept underlying viral marketing. “A lot of times they’re using this method with the goal of launching a new product, and therefore they’re trying to measure sales, not brand awareness.”

The report predicts that 47 percent of viral marketers will start blogs, and 41 percent will drive traffic to microsites within the next year in an attempt to take control back out of the hands of the consumers.

Her advice: viral marketers should use social tools such as widgets and video to bring their message to existing centers of communication, as well as segment groups by age and influence, aligning their tactics accordingly.

“This is still a very exciting time for viral marketing,” says Riley. “There will continue to be mishaps, but if done properly, the results can be substantial.”

Riley offers these best practices:

  1. Give them content worth forwarding – make it useful, informative or fun
  2. Make it really easy to share the content – use forward to a friend or bookmark icons
  3. Target the right demographic – surprisingly 45 – 54 year olds pass on viral messages 3 times more than 18 – 24 year olds
  4. Consider partnering with a company that specializes in viral marketing messages
  5. Attach your viral message to a blog or microsite
  6. Seed influential blogs with your message – but be open and transparent
  7. Make sure you give blog readers a way to sign up for your newsletter – provide a direct link in your signature line


  

 

  



Ad Revenue Moving to the Net Affects Newspaper Earnings

Friday, October 19th, 2007

The Wall St Journal reported yesterday that the continuing slump for newspaper advertising drove Gannett Co.’s third-quarter earnings down 11%.  The move to the Internet for news and information is credtied as a major contributing factor in the newspaper income woes.

That is likely to spell more bad news for the newspaper industry, which has seen readers and advertising dollars siphoned away to the Internet, says WSJ.

Newspaper publishers have struggled as advertisers shift spending online, following readers who get their news from Internet sites, writes the Maryland Daily Record.

One example is the announcement from Intel this week that they would increase their online co-op ad spend to 35% of their $300 million annual budget. And as it is for co-op ads this means brands like Toshiba, Sony, Lenovo and HP will be affected too.

Is your news content visible online?  Is coverage in online news sites a part of your PR strategy?

The Advanced PR Technology workshops in NYC and San Francisco will give you the tools you need to take advantage of this trend.



The Need for Online Reputation Management is Growing

Tuesday, October 16th, 2007

Businesses need to become more proactive about managing their reputation online as the risks of operating on the web are on the increase, according to research from Gartner. They predict that by the end of 2010 threats to damage a corporate reputation by ensuring that routine online search requests will return negative or even libellous results will have become routine.

Monitoring mentions of your name and your brands is the first step in keeping tabs on your online reputation.  And it does not only apply to corporations, it can affect indviduals as well.

One of the major players in this field is Nielsen. Best known for its TV ratings Nielsen also tracks online statistics.  Known as Nielsen/NetRatings this service bought BuzzMetrics a while ago.  Now they are combining these two services into Nielsen Online.  While the two entities will retain their separate branding, their metrics will now be given to clients side-by-side and provide deeper demographic data on blogosphere buzz—consumer-generated media around a product or service.  Mentions of your brand in consumer generated media is becoming more and more important as companies work social media into their PR strategy.

A new player in the online reputation monitoring field is Brandseye from the UK. What sets it apart is the ablity to evaluate mentions, score the credibility of the site and the author, suggest what action to take and correlate all the data into a ‘brand score’ that can be tracked against competitors’ scores.  Definitely a step up from some of  the online clipping services available.

Having someone write a critical or slanderous blog post is one thing.  Having it show up at number one on your name in Google is another.  And it will stay there for the duration unless you do something to shift it off that page.

If you have some nasty results lurking in Google take swift action. The solution to these search results lies in the way you create and syndicate content online. 


 



Global Attitudes Study From Pew

Wednesday, October 10th, 2007

The new 47-Nation Global Attitudes Survey is now available from the Pew Research Center.

David Brain, President & CEO Edelman Europe has an overivew and key findings in his blog sixtysecondview.

The survey of more than 45,000 people finds that they are concerned about inequality, threats to their culture, threats to the environment and threats posed by immigration.  In nearly every country surveyed, people worry about losing their traditional culture and national identities, and they feel their way of life needs protection against foreign influences.

When it comes to news and information online news sources are steadily gaining in popularity in the West and parts of Asia but draw only a tiny audience in Africa or Latin America.  Newspaper readership is declining in every country aorun the world.

In the United States the proportion of the public that turns to newspapers for news fell from 61% in 2002 to 47% today. The drop in the U.S. is matched by a 14-point drop in neighboring Canada and in South Korea, and is exceeded by larger declines in Turkey (-20 points), Indonesia (-18), Tanzania (-18), Bolivia (-17) and the Czech Republic (-15).

The computer and internet revolutions are slowly changing the way the world gets its news – using the internet as a source for news is generally most widespread in the West and in the emerging democracies of Eastern Europe. While still lagging far behind traditional media as a news source, the internet is steadily gaining ground, particularly in the West and the more developed countries of Asia and Eastern Europe.

The proportion of Americans who get their news online has increased by double-digit margins.

Just one more reason to make sure your company news gets found in the news search engines and is syndicated online in an RSS feed.