WalesCymru.com

If you’re on Facebook you’ll have noticed some Twitter inspired design changes which have not gone down well the users. In fact as many as nine out of ten don’t like the changes; which suggests Facebook have either not considered their users views, or worse have not understood what benefit their users gain from the site. Yesterday I commented on Alan Davies’, “How can I help you?” and attempted to answer the question, “How should the technology provider and the business club work together”. Today I’ve responded to an email on feature changes planned at Xing - one of the two online business networks I’ve joined. It was then I noticed a theme developing, which appears to be, “What is the purpose of the online (business) network?”

Below are my thoughts on Xing changes, which are an attempt to answer this question:

Online Business Networks are …

• a business contacts management tool (Except most of my contacts are not on these networks. A web resource that provides single sign-on and access to all my business contacts would be very useful, regardless of which site they’re on)
• a business knowledge resource (If an exchange of knowledge is the main function of Groups; where’s the knowledge centre?)
• a collaboration tool (But it’s open - so where does the confidential work actually take place?)
• a business events planning / management resource (but most business events I attend are absent from these sites)
• a networking resource for local businesses (E.g. many Xing users have a strong European (German) connection, which is great if you’re a German business man/women. But what about everyone else? Should these sites develop a stronger Sector and Regional focus, perhaps by working with established local Business Clubs?)
• a networking platform (In which case, should they offer white label applications to local networking groups?)

The online network providers who get this right will become the platform of choice. At this stage this battle is far from won by any of the established players.

Recently Alan Davies - a fellow social networker and webmaster for Junction 31, Cultural Enterprise and Cymro.Org - considered the question “How can I help you?”; or more precisely, “How should the technology provider and business club work together?”

In my view the role of the technology provider is (in theory) easy - deliver the platform that supports the nature and form of the network. However, as more feature rich low cost systems become available, the real ‘value add’ is not in the technology but in ‘hand holding’, partnerships and collaborations.

If you’re a business network and are wondering how to approach digital networking, my advice is you won’t go far wrong by asking your technology provider “how they can help you”, and going with the ones that display a real understanding your business requirements.

As the technology provider, “How can I help you?” is by running the ‘digital network’ for the business club, while the club provides the members and the raison d’être.

SPONSORED LINK

Business clubs exist to support their members through formal and informal networking around a social environment. Unless you understand why the members join and where they gain value, you can’t provide the digital networks they require. This is where a specialist social media supplier, like 41 Days, come in (41 Days is the technology business behind WalesCyrmu.com and back world class social media applications with vast business experience). 41 Days are happy to answer the question, “How can I help you?”

I’m sure everyone knows of Google Maps and the amazing satellite views they provide of the world we live in. In fact just this week it seems Google’s images of the sea have helped rediscover a 1000 year old sea trap off the Welsh coast; but have Google gone a step too far with their launch today of Street View?

If you don’t know, Street View is exactly that, a 360-degree photographic record of 22,369 miles of British roads. While being impressive, this is a fraction of the UK’s 213,750 miles (342,000 km) of paved roads, so although the venture is to be applauded it is also slightly disappointing that the service (which is now live) features views of only 25 UK cities. However, for those cities featured (and thankfully Cardiff is one of them), we now have brilliant street images which overlay Google Maps, giving you street names and property numbers to accompany images of the road, payment, front gardens and buildings on either side.

As with all Google developments the service is easy to use and is linked from the standard Google Maps. Once you’ve chosen your location (using the search), you enter Street View and navigate around using the arrows, direction wheel and zoom.

Here is Albany Road according to Street View; although you should be advised that these pictures were taken on a Tuesday during our wash-out summer of 2008 so don’t show us at our best. That said, if you ignore that fact several of the main shops of now closed, this is still a pretty good view what where I live and is definitely one for the digital family album.

Albany Road, Street View (Woolworths), Summer 2008

48 Albany Road, Street View (Thomas Ford), Summer 2008

60 Albany Road, Street View (Coffee#1), Summer 2008

Privacy Concerns

While this development is truly an amazing undertaking and should be welcomed as a great public service, it seems not everyone agrees. Concerns have been expressed that this level of photographic detail represents an invasion of our privacy and has even been challenged in US courts. One Pennsylvania couple, Aaron and Christine Boring, accused Google of privacy violation, negligence, unjust enrichment and trespassing for showing their home in the Street View feature.  Although the case was lost the challenge generated massive worldwide media coverage and begs the question, if you really want privacy was this the right way to go about getting it.

To respond to these concerns Street View now features technology that automatically blurs both faces and licence plates; although it is still possible to establish that the wrong car was parked outside your house on a particular day last summer. Although Google did not seek permission from the communities covered, or get prior consent of those who appear in the images (which is required by International law where images are used for commercial purposes); Street View was not ruled as unlawful by the Information Commission when given the chance to do so and means the service has now gone live.

25 UK Cities on Street View

The UK Cities currently available on Street View are: Aberdeen, Belfast, Birmingham, Bradford, Bristol, Cambridge, Cardiff, Coventry, Derby, Dundee, Edinburgh, Glasgow, Leeds, Liverpool, London, Oxford, Manchester, Newcastle, Norwich, Nottingham, Scunthorpe, Sheffield, Southampton, Swansea and York.

While it may be another year or more before the rest of the UK is covered, for those who live in these “Street Viewed” cities, or plan to visit, you can now dispense with the SatNav and instead use your iPhone to access detailed maps, with precise directions and photographic images of the street you’re looking for. That must be better for everyone, and is especially helpful the businesses who are still here and in desperate need of extra publicity.

So now we know, Windows7 will be sold and supported socially.

Here’s the job ad.

Job Description

The Windows Social Media team has an exciting opportunity for a passionate Online Marketing Manager to research, coordinate, project manage and implement social media marketing initiatives as part of the Windows7 launch team.

The ideal person will be immersed in what it means to “live life online” through channels such as; Twitter, Facebook, YouTube, etc. This team member will stay up to date on latest social media developments, consumer behaviors and trends, identify current and future opportunities and develop business case, marketing plans and proposals for implementing social media solutions within Windows consumer marketing. This person is a strong collaborator and team player that can function in a cross group, ambiguous environment.

We are looking for a senior social media guru to provide leadership among cross functional teams and build out scaleable marketing programs which will significantly impact both consumer preference and business results for the Windows business. This team member will use social media technologies to listen, engage with, and intersect consumers in the online and offline space. As part of this marketing manager role on the Windows 7 consumer marketing team this person will participate a cross discipline v-team and develop and execute programs in alignment with the marketing strategy.

Key components

• Capture the consumer’s imagination and spark desire for Windows7
• Drive engagement with Windows consumers through social media channels
• Drive preference for the Windows brand
• Spark positive recommendations for Windows7 [reminds me of the bonuses paid to sub-prime mortgage brokers]
  
• Strong collaborator with the ability to persuade
• Responsible for identifying and managing highest ROI efforts

The Windows team is looking for someone who is experienced and confident enough to take risks and deal with uncertainty while exhibiting caution when warranted.

This person will use excellent presentation skills to regularly report to the executive team and evangelize Windows7 social media programs to other Microsoft marketing teams, becoming a Subject Matter Expert (SME) [so that’s what a SME is!] in this digital domain.

Position Requirements

• 5-7 years online marketing experience with a strong focus on Web 2.0 technologies
• Must be an enthusiastic and avid social media junky
• Ability to generate ideas and work within minimal guidance
• A track record of excellent results supported by data driven metrics
• Strong communication and interpersonal skills
• Solid project management skills
• BA/BS required. MBA preferred

If you’re interested apply by email to alibun@microsoft.com

A recent study by Forrester Research found that over half of global marketers will increase their spend on social media in 2010.  Of those who knew their marketing budget, 75% said they were planning to spend upwards of $100,000 on social media marketing. Where spend was already planned this would be on social networks, blogs and user-generated content.

The research highlighted that money being allocated to social media typically comes at the expense of other budgets, with the biggest proportion of respondents (35%) identifying the source as their corporate marketing coffers; while 24% said that it would come from the advertising budget.

The report includes recommendations for marketers. Here are some repeated for my blog readers:

• If you are a marketer interested in social media, use these stats to get management support and a realistic budget, then concentrate on measuring the results of your efforts to prove they work.

• If you are a web consultant, this is a growth area. To become successful, concentrate on developing expertise in implementation, management, moderation, or measurement of social media efforts; that’s where the need appears to be.

• If you are a technology vendor, case studies with proof of value will be far more effective than features, functions, and technology claims. If you can offer a consultative sale and hand-holding service, you’ll be a lot more likely to win clients and thrive in this space.

Forrester surveyed 145 global interactive marketers at business-to-business and business-to-consumer companies employing 250-plus staff. While we’re still not sure if the SME sector have as yet identified the benefits; for large companies and global brands the message is simple, and has been summarised by Forrester’s Jeremiah Owyang as simply that “Social Media Playtime Is Over”.

A March 2009 Nielsen report, Global Faces and Networked Places (PDF), on the growth of Social Networks (Member Communities) and what this means for advertisers has confirmed some widely accepted truths, namely:

• Social Network are a worldwide phenomenon (used by 67% of the online population)
• Facebook was the big winner in 2008 (time spend on Facebook up 566% on the previous year)
• We spent more time on Social Networks in 2008 than in 2007 (up 118% in the UK)
• UK users now spend one in every six minutes on Social Networks (that’s 17.4% of our surfing time)
• The demographics of member communities is changing, as more older users join and younger users leave (50+ up 4%, 0-17 down 9%)

While the popularity of social networks is obvious, the way to use these effectively as advertising platforms is not. This is because users of social networks have a greater sense of ownership around content and are less inclined to accept ‘look at me’ advertising (38% considered advertising on social networking sites to be an intrusion compared to 29% the year before).

When it comes to advertising (or more precisely earnings potential), not all networks are equal. MySpace, despite having a smaller global reach, generated around $US1 billion in ad revenue in 2008 compared to estimated earnings for Facebook of just $US300 million. The principal reason for this is that MySpace is viewed as more of a niche player, with its focus on entertainment and video content, and is therefore a more effective platform for targeting teenagers and young adults. For this reason, more companies run more campaigns on MySpace, than on Facebook.

UK Advertising Campaigns on Social Networks

What should advertisers do?

Social networks and advertisers have compatible interests. The networks need advertisers to monetise their audience; while the advertisers need to be on these networks if they want to engage their customers, this is after-all where they’re spending a greater part of their time. If social network advertising is be effective, Advertisers need to work closely with the network providers. They need to design campaigns that meet the values and expectations of the community and engage the members in a conversation, rather than pushing a marketing message. The ad units themselves must to tailored to suit the community and not simply ‘resized to fit’. Both the advertisers and the campaign should add value to the users, or risk being flamed by the community. And above all, the message within the advertising should be authentic and the campaign true to the values of both the community and the advertiser. If advertisers achieve this match, their social network campaigns stand a good chance of being successful; although, as the Nielsen report also points out, “the magic formula, to overcome the attraction of ad free personal space while at the same time effectively monetising online’s most heavily used sector, hasn’t yet been found”.

Remember a few weeks back when Media Wales reported widespread disdain towards the Cardiff Hoteliers who charged ‘a bit extra’ for their rooms during the Wales - England Six Nations game that was held on Valentines Weekend?

Well, it seems the Welsh public are not slow to catch on, and have also realised when a major sporting event comes to town, demand increases and you can charge high prices for essential services. But surely this is getting ridiculous.

BBC One Show on 2010 Ryder Cup Private Rentals

Can we really justify charging £12,000 to rent an ordinary 4 bedroom family house for 2 weeks in October that is 20 miles away from the Celtic Manor, or £10,000 for a 3 bedroom terraced house in Newport?

If the take-up on the latest Ryder Cup Accommodation website to offer private rental deals to overseas visitors is anything to go by, then it seems many enterprising owners think you can.

Personally I’d have hoped we’d have all learnt that in credit crunch Wales, greed is not good; but it seems not everyone agrees. Maybe I’m just not entrepreneurial enough.

If any property owner reading this is interested, you can advertise your own Ryder Cup Accommodation on WalesCymru for FREE. Simply sign-up and create your listing, add a description and up to ten photos, and make sure you tag your entry with the keywords “2010 Ryder Cup Accommodation”. And if anyone rents, your 2010 holiday could be somewhere very exotic and paid for by your family home.

NB.  All Hotels in close proximity to the Celtic Manor Resort are already fully booked for the week during the Ryder Cup, so don’t bother asking!

I recently read a Social Media Academy posting that claims to provide the formulae your Finance Director would use to calculate your company’s Return on Investment from Social Media Marketing, and here it is:

CM / IC = SM-ROI

Contribution Margin (CM) in currency generated from externally referred customers over Interaction Cost (IC) in currency for human interaction and other cost to manage and engage in the ecosystem = Social Media ROI (SM-ROI)

In essence this is simply ‘money earned’ (increased revenue from leads and referrals) divided by ‘costs’, so hardly rocket science; however I’ve a feeling this does not take everything into account.

This formula assumes increased sales is your only goal. There are in fact many other sources of value that can be derived from engaging with your customers.  Here are some more suggested by Darrin Fleming in his response to the Social Media Today article:

• Revenue Enhancing Benefits:
  • Shorter time to market for new offerings – you can perform real-time market research to understand the needs of the market, and launch quicker
  • More revenue from new offerings – having that real-time pulse on the market you can better meet the needs of your target customers and sell your new offerings to more companies/people
  • More revenue from existing customers (and less customer attrition) – by maintaining an ongoing dialogue with your customers you will be better able to address issues earlier and more apt to retain them and hopefully grow your share of their spend
• Cost Reducing Benefits:
  • Lower cost of marketing campaigns – by redirecting efforts away from expensive media such as print
  • Lower cost to gain market insight – you might be able to reduce costly and time-consuming quantitative primary research through social media research (very dependent on your target market and level of precision needed)
  • Lower cost to provide support – reduce the need for costly call centres by allowing support team to interact both with each other as well as with customers
  • Lower cost of travel – with your team able to interact both real-time and asynchronously with each other and with the market, you can lower the necessity or at least frequency of face-to-face meetings (don’t take this to mean that I am advocating the elimination of face-to-face meetings – they are critically important in many circumstances, just reduce the need for travel to non-critical meetings)
• Other Strategic or Intangible Benefits (not measurable but still important):
  • Better customer satisfaction - by maintaining an ongoing dialogue with your customers you will be better able to address issues earlier
  • Better brand management – monitor real-time what is being said about your brand and manage the dialogue appropriately
  • Better decision making – gain access to information that previously would have been difficult and/or impossible to gather
  • Better employee satisfaction – allowing everyone to engage in the dialogue is fun

Obviously all of these activities involve costs, but these should be compared to traditional approaches that deliver the same results. And here I suggest you’ll find the social media costs are likely to be lower.

While you might not win the argument that 5 hours a day on Facebook is time well spent; at least you can now confidently engage your MD and  FD in a discussion on the benefits social media delivers to your organisation. Who knows, if you’re conviencing they may even approve this time and give you a social media marketing budget to spend - let’s all hope so.