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12 January 2010

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Julie

Pete, if you ever present this, there's some great video from the show "Better Off Ted," episode Jabberwocky. Hope all is well! Julie

Kees Romkes

You really hit it there, loving the tale and brings me back to where it really comes to in my opinion, social media isn't just another "niche" or perhaps another "bubble to burst", revenue and ROI (or perhaps just some key indicators what your social media leverage should come to) are key in discussing, overviewing and implementing any form of media attention.

Thanks, appreciate sharing (and perhaps using the story, if you don't mind) this amongst my own stakeholders and network :)

Peter Kim

Twitbookblogguru.com!

eaon

heh, very good.

Mark

What is this, 2007? Are we still amused by stories of marketers who ignore ROI?

Yawn

Peter Kim

Actually snarkiness and lame comments were 2007.

Mark

Sorry you're offended, Peter, but the whole thrust of this article is to highlight the ineptitude of a swath of marketers. Who is being snarky?

I generally enjoy your posts, by the way, but sometimes the fruit you swing at hangs a little too low.

Craig Konieczko

Peter, I really like the way this story is told, with both agency and CMO sharing the blame. Too often i have seen the next big social media project treated like a creative campaign, and too often have I seen it fail.

Unfortunately, awards and bonuses are given for quick wins and even splashy, empty victories, as you point out. The incentives are all wrong.

Because no matter what, any time you are going to take a client's or company's cold hard cash and invest it in a marketing or product development program (whether social channels or traditional), ROI matters. Maybe not today, maybe not tomorrow, but somewhere along the line, someone very high up will want to know what came of that $50 or $100K or more she "invested" into that fledgling social program.

Barry Judge, CMO of socially adept Best Buy, stated at the Forrester Consumer Forum late last year in Chicago that social needs to begin with the customer, not the bottom line. And he is right. Social projects need more time to grow organically. And fail along the way without the plug getting pulled.

But marketers do need to show ROI. That's why social projects are just like any other, but need a bit more time to grow. Think of them as strategic, longer term investments with potentially much higher impact. You want some of those investments in any portfolio, right?

How do we reward CMOs and their agencies for these kinds of organic successes over time, and not just recognize big, empty wins?

I'd say a tight focus on tracking and reporting ROI is the only hope for documenting the success of long-term victories. Stick with it, even if the ROI picture isn't all that rosy for a few quarters. If you've set expectations properly, built a true strategy and started with a relatively modest investment as is typical of social, you should be setting yourselves up for a series of big wins. Have heart.

Kabbenbock

I appreciate the elegance of wrapping this new-ish story in one of the world's oldest, The Emperor's New Clothes.

I could see Peter's remix as an indoctrination of social media as trivial, I instead another old story again. Business gains little from doing anything without a plan, complete with goals and metrics. Age, ego and insecurity played pretty realistic roles in this fable causing people to wrongly dismiss their better instincts.

But none of this is new. In their time of novelty, every brash new media: newspapers, radio, TV, and internet display advertising enjoyed a period where people disregarded their experience in favor of something shiny, new and cool - as if rules of gravity had been suspended. For some, the less we understood it, the better and cooler it must be.

So caution is thrown to the wind, and with it the any semblance of goals and metrics that would apply in any other situation, in favor of some abstract ego-candy. That seems a mistake. But we're looking at a system with multiple points of failure. After all, we can learn a lot from taking good measured risks, testing hypotheses and learning from success and failure. No, a deeper compounding problem lies in the failure to observe and leverage the different characteristics inherent in social media that make it work.

While at Forrester, Jeremiah Owyang observed brand advertisers' well-funded fumbles in the social network space (Best and Worst of Social Network Marketing, 2008) though I can't exactly say where he observes the "best" part. It seemed to range more from the dull to the completely tragic. This seemed to result from traditional ad campaign approaches being ported to the social web with little appreciation for the norms, capabilities and characteristics of the new media. He concluded that people contemplating a social network campaign would do well to consider the following questions. Does the campaign provide content that supports the community's goals? Is it designed to be self fueling? Does it encourage people to share and create with each other? Is there an appropriate call to action? And perhaps most different, and most important: does the company participate in the effort in an ongoing basis?

Anything that sounds too good to be true, probably is. Attention markets rapidly self-immunize themselves to novelty, so reverse-engineering your competitor's viral marketing success is unlikely to lead to success for you. Any successful marketing program needs to begin with both the customer and the end in mind. Advertising, social media, and your product itself is just a means to satisfy that customer and that end. In addition to delivering many standard media capabilities, social media provides incredible new capabilities to understand customers and make them confident that you work for them. For most, it's not a 100% substitute for traditional media, but it would be a mistake to fail to appreciate and integrate what it does well into your business.

Priyanka d

Good story adaption from Emperor's new clothes!

Spoppe

One of your longer posts. And I read every word. True brudah true.

Adam Kmiec

Peter

Obviously, I love the post. It's a topic I've been bitching about for months. But, now comes the tough next question. If we all admit that there are snake oil salesmen out there and posers pretending to be gurus...and we probably can all point out several of these people...WHY are we not doing it? Why are people like you, who have both the credibility and following, calling out these jokers? If social is all about adding value and being transparent...then don't we owe it to ourselves the community at large to point out the charlatans?

Adam

Josh Bernoff

Somewhere between the hype and the status quo is goodness.

Finding the goodness is hard. That is a good thing for the Dachises and the Forresters of the world, I think.

Just remember Sturgeon's law.

Reporter: 90% of science fiction is crap.
Theodore Sturgeon (famous science fiction writer): yes, but 90% of *everything* is crap.

90% of social media is crap, too. Doesn't make it not worth doing.

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