Goodbye Call Center, Hello People Power – The giffgaff Experiment

By Matthew Lees

giffgaff is a UK-based mobile telephone service provider that runs off the O2 (Telefónica Europe) network. Basically, what it offers is a pre-paid SIM card that you pop into your (unlocked) mobile phone. (European wireless phone service operates on the GSM standard. In the US, many mobile carriers provide “locked” phones which only accept one type – their type — of SIM card. There’s much more flexibility and compatibility across Europe and, indeed, through the rest of the mobile-phone-using world.)

At giffgaff’s Web site (http://www.giffgaff.com), you can order a giffgaff SIM card and add money to (a.k.a. “top-up”) your existing card.

What you can’t do at the site, though, is contact a customer service representative. Not by phone and not by online chat.

giffgaff does provide a single email address for inquiries; automated acknowledgments promise a response within 24 hours. So somebody is handing email support, which is an asynchronous communications channel. But giffgaff does not have agents who provide synchronous support. (I suppose, though, that if you were to show up at giffgaff’s HQ in Slough, England, there’s a pretty good chance they’d help you out in real time. Based on the tone of the language used on the site, they seem an amiable, if borderline mischievous, bunch.)

No Operators Are Standing By
By not having customer support reps awaiting your calls, giffgaff can keep its prices low and its operation streamlined.

Instead, the company provides support nearly exclusively via Web-based self-service and its customer community. giffgaff’s FAQs, question and answer area, and discussion forums are its primary customer service mechanisms.

Within the community, which is running on Lithium Technologies’ Social CRM platform, giffgaff customers answer each others’ questions. Hence giffgaff’s taglines: “Mobile network with a difference” and “We’re people powered.”

It’s Payback Time
All online communities rely on the contributions of a small but essential numbers of dedicated members who answer a large and disproportionate number of questions. These “active contributors” or “super users” are the lifeblood of their communities and an essential part of their communities’ cultures. They typically participate for the personal and professional connections they make, the inside information they may get, the opportunity to learn, the ability to enhance their reputation and “strut their stuff,” and the sheer fun of it.

giffgaff adds another motivation to this list: making money. The more questions you answer, the more “Payback Points” you receive. Payback points (100 points = £1) can either go toward topping up your giffgaff account or be deposited into your bank account as cash.

In fact, there’s more to Payback points than just answering more and more questions. The better your answers are, the more points you receive, too (this is done via Lithium’s “accepted solution” feature). And you can also earn Payback points by acting as a giffgaff evangelist, getting friends to join and promoting the service (e.g., through social sites and networks such as YouTube and Twitter).

A Sustainable Support Model?
It’s a relatively new business and a relatively new community, having only launched in Q3 2009. And it’s still in beta (although this doesn’t mean what it used to; Gmail was ostensibly in beta for about five years). The site is certainly focused and playful. Is it effective, though? It’s too soon to tell. But here are the questions percolating in my mind:

•  How are giffgaff’s group andsocial dynamics different from those communities that don’t have financial incentives? I’d expect that that the giffgaff community wouldn’t put up with much nonsense, as that would get in the way of earning points. But would this lead to a more or less tolerant community and enjoyable community experience?
•  Can giffgaff provide satisfactory support on a long-term basis without a contact center?
•  If so, can this model work in other industries, or are there aspects of giffgaff’s business (e.g., the telecommunications industry, its particular demographics, etc.) that may make it work for them, but not elsewhere?

A quick Web search shows that “giffgaff” is a Scottish word referring to mutual accommodation or mutual giving. Seems like an appropriate name for an ostensibly people-powered network. Kind of a “you scratch my back, I’ll scratch yours” thing. If things at giffgaff go according to plan, the UK could see an awful lot of scratching…

Ricky Gervais (Unintentionally and Eloquently) on Facebook vs. Customer Communities

by Matthew Lees

While driving yesterday to pick up my sister at the airport, I listened to a delightful interview on the radio with Ricky Gervais. He was on the NPR program Fresh Air, talking with David Bianculli — nope, it wasn’t Terry Gross, but veteran TV critic Bianculli is very good, too — about his new animated series on HBO, “The Ricky Gervais Show.”

I’m a fan of Gervais’s, despite the fact that I haven’t watched many episodes of either the US or UK version of “The Office.” (Steve Carell stars in the US version, which is based on the original UK program, created by and starring Gervais.) Through his other shows, his stand-up routines, and his podcasts, you can tell he’s a funny, clever, candid, and amiably self-deprecating guy.

About halfway through the NPR interview, Gervais gives his take on making big-budget shows that aim for mass appeal versus smaller shows that may find only a relatively small, but more interested and passionate audience. He says:

“But, I think I’d rather do stuff that makes a big connection with a few people than a small connection with loads. I’d rather this be a few people’s favorite show, than, you know, millions and millions of people’s 10th favorite show. Because what’s the point otherwise?”

There you have, in a nutshell, the essential difference between a Facebook community and a branded customer community.

Big Connections with a Few vs. Small Connections with “Loads”

You can potentially and relatively easily build up a Facebook fan base that’s much larger than your own branded customer community. With just a single click, people can “Become a Fan” of your organization (or TV show); there couldn’t be a much lower barrier to entry. And marketers tend to love volume.

But the strength of these “Fan” connections isn’t particularly great. Most fans probably never return to the organization’s Facebook page again, and the conversations in the Discussions area tend to be superficial.

In a community that you sponsor and manage, though, you’re building much closer relationships, with stronger connections to your organization and the products and services you offer. (You’re also enabling stronger connections between community members, too.) You members are discussing topics and issues of interest and concern; they’re asking questions and giving answers; and they’re bringing up problems and providing solutions.

Strong and Weak Ties

Network theorists and sociologists call these different types of connections strong ties and weak ties.

(Contrary to how Gervais phrases it, though, there are indeed benefits to weak ties. There is indeed an answer to his rhetorical question “…what’s the point otherwise?”, as good things certainly can come out of being the 10th favorite show of millions and millions of people, especially if you’re an advertiser or an actor, writer, or producer on the show.)

But the main point that Gervais encapsulates is that it’s not always about reaching the most people you can. Big connections (i.e., strong ties) can be more meaningful than small connections, at least to some people and organizations. Marketers (and others in your organization) love deep relationships with people, too.

Your social media strategy should ideally include programs that leverage what both strong- and weak-tie connections have to offer.

Of course, you may not want to base your entire strategy on Gervais’s musings. He’s also the man who said (via David Brent, his Office persona), “If at first you don’t succeed, remove all evidence that you tried.”

——–

For Further Reading
A lot of interesting and useful information is available on the types and degrees of online social connections. Some is academic in nature and some discusses real-world ramifications and practical aspects of these connections. Here are a few sites with good stuff on ties…
•  Karrie Karahalios: Strong and Weak Ties in Social Media, by David Weinberger (March 3, 2010)
•  40 Years On: The History & Evolution of Social Media, by Jenny Ambrozek (November 4, 2009)
•  Weak Ties Build Strong Networks, by Adrian Scholes (May 21, 2009)
•  Design Your Own Custom Ties on Zazzle

Walking out the Door with the Twitter Password: A Few Words on Social Media Maturity

by Matthew Lees

Mathematical Maturity
My high school calculus teacher often talked about “mathematical maturity.” It became a phrase we dreaded hearing, because, when he used it – usually in the negative (i.e., that someone wasn’t being mathematically mature) – it meant that person had tackled a math problem like an amateur; that they weren’t using all the information or tools at their disposal; that they were doing things the way a child would. Ouch.

But if you demonstrated your mathematical maturity, it meant you didn’t complain if a problem was particularly knotty; that you pulled different techniques out of your mathematical toolkit; and that you took things seriously.

Who’s Got the Twitter Password?
In three unrelated instances over the past few weeks, I heard three different people pose more or less the same question: “If the person at your company who manages your Twitter and Facebook accounts leaves the company, what do you do if they forgot to tell you the passwords?”

If you’re the one tasked with setting things straight, you’re definitely facing a challenge. Who wants to track down and call up a former colleague to recover a password? Sure, most people would be helpful (if, in fact, they actually remember the passwords). But there’s also the possibility for ex-employees to cause mischief.

The real problem, though, arose before the employee left the firm. The organizations in the scenario above never should have let it get to this point.

So why did it happen?

Largely, I think, because we’re still in the early stages of the social media phenomenon, and things are still being done on an ad hoc basis. Many organizations are seemingly OK with people setting up Twitter, Facebook, YouTube, and other accounts on their own. And they’re not thinking through the ramifications.

Social Media Maturity
To me, social media maturity means having the systems, processes, resources, and organizational mindset to get the most out of what social media has to offer. It means thinking things through and being prepared for different eventualities. More specifically, it means:

1. Knowing your business goals – There’s a lot already written about business goals and determining ROI (including several posts on this blog, including this one), so I won’t delve into it here, other than to say this should be the starting point in any social media or online community initiative.

2. Clearly defining roles and responsibilities – It’s essential to set expectations and know who’s responsible for what (including passwords).

3. Creating sensible and effective processes – Here’s where the organizations above really dropped the ball. IT departments know how to set up new network and email accounts when an employee is hired, and they know what to do when someone leaves. They also know how to manage network access, and how to recover and/or reset passwords as warranted. You should have similar procedures in place for all social sites.

Don’t Forget Consultants and Agencies
Everyone on your team and in your project sphere should walk the social media walk. So if you work with consulting firms, agencies, and others on your social media programs, you’ll want to be confident that they’re not going to walk out the door with any passwords, either. Make sure they bring and display a high degree of social media maturity, too.

Do you know who’s got your organization’s Twitter password?

Notes from the Online Community Unconference East 2010

© 2010 Forum One Communications

By Matthew Lees

This week’s snow storm in New York City only marginally hampered this week’s Online Community Unconference East 2010 (OCUE10), a one-day event run by Forum One Communications. With a nod to local commuters, the program ended an hour early, although quite a few attendees were stuck in New York for the night due to rail and air cancellations. The snow kept some people at home, particularly those coming from more distant locations — it was disappointing, though understandable and, in hindsight, wise — that the Impact Interactions team didn’t venture north — but attendance overall was good. Not quite the 200 online community strategists, practitioners, vendors, and consultants that were originally expected that, but not too far off that number.

It was a good event, though not as strong as previous ones, despite the improved facilitation. Unconferences follow an Open Space-like methodology more frequently used, it seems, on the West coast than on the East. Attendees run the sessions themselves, selecting topics based something of interest, whether they’re expert in that subject or just want to talk about it and think others will, too. It’s a bit of organized chaos in which one of the underlying philosophical tenets is that you’re responsible for your own experience.

The Unconference’s theme was “Moving Forward, Together.” That’s a worthy and appropriate objective. Forum One did set the stage for us to think about our personal and professional goals, the direction of the industry, and ways of taking action and moving things forward, well, together. This is easier said than done, though, even for a group of inherently collaborative-minded souls. While I admittedly sucked the air out of a planning session intent on industry-wide adoption of social business metrics, the efforts are well intentioned. Making things happen will be a challenge, but with some sustained work and outreach to other concerned organizations, such initiatives could potentially gain some traction.

But my main frustration was that the sessions, which sometimes stay on topic and sometimes don’t, largely didn’t. Perhaps that’s part of the point of the format, to go wherever the discussions take you. But if I attend a session on, say, B2B revenue streams, I’d like to really dig into that topic. Tangents can be the norm, however. It also can take a while, sometimes 20 to 30 minutes of a one-hour session, for people to get on the same page regarding terminology. It’s not that the digressions are irrelevant or that the conversations are uninteresting; they’re usually not. It’s just that, more often than not, we didn’t get into the real substance I’m really looking for.

That said, it’s always good to see old friends, make new ones, and discuss things we’re all passionate about. Here are some observations:

• Job Changes and Hiring. In recent months I’ve seen more than a few community and social media professionals change jobs, sometimes due to layoffs, sometimes due to taking advantage of a new opportunity. At the OCUE 2010 I learned of even more. And a few people mentioned that their organizations were hiring. This is good news for the industry (although perhaps small solace for the many who are still looking for jobs).

• Business Value. It’s pretty clear that the exploratory phase is over for online communities. More and more organizations are all but requiring bottom line results, or at least a solid plan to get there. If you’re a vendor, agency, or consulting group that can speak to helping an organization achieve quantifiable, attributable ROI success, you’ll have a leg (or two) up the competition.

• Community Strategy: Beyond Your Site. Bill Johnston, Forum One’s Chief Community Officer and the Unconference’s host, summed this up nicely, saying “Most companies are trying to pull together a more holistic strategy.” A lot of attendees talked to this point, and how they’re trying to consolidate and streamline their community and social media strategies. If your organization is running one or more online communities, that’s one or more customer-facing touchpoints. But you’re likely involved with Twitter, LinkedIn, other social sites, and perhaps some independent communities as well. Fractured strategy translates into a poor customer experience, diminished brand identity, and limited business results.

• Organizational Issues. This one will be with us for a long time. Organizational dynamics play a major role in the success (or not) of community and social initiatives. They’re also a contributor to the many tales of woe that attendees talked about. People were looking for ways of breaking down silos, clarifying ownership, ending turf wars, undoing inappropriate and/or ineffective structure, and getting more buy-in from colleagues and the executive suite. (One of my favorite quotes was from a Microsoft community manager who said, referencing collaboration among his company’s business units, “Any coordination between these groups happens accidentally.” That’s too bad, but, sad to say, not uncommon.)

Look for the next Forum One Unconference in Mountain View, CA on June 9, 2010. It’s doubtful they’ll have to worry about snow…

It’s Not About You: Where Organizations Miss the Boat on Social Media

By Matthew Lees

Way back when (in the 80’s, perhaps?) I remember watching a stand-up comedian do a funny and perceptive routine on how magazine titles had changed over the years to reflect important changes in society. I’m paraphrasing — the old memory chips aren’t as good as they used to be — but here’s the gist:

Early on, there was a magazine called “Life.” It was pretty much about everything.

Later, someone came up with a magazine didn’t have such high aspirations, but still looked to include a large portion of what life is about. It was called “People.”

Apparently that wasn’t specific enough. So a new magazine hit the market: “Us.” It wasn’t about all people. Just some people. Not those people, of course. Us people.

Guess what! Even that was too broad. Who wants to know about Us? That still covers too much ground. Much better to focus on what’s really important. So what do we get? The magazine “Self.”

What’s next? Maybe they’ll just sell mirrors in the shape of magazines, so you can just stare at your own reflection.

There are times it seems the social Web is going down a similar path, where it’s all about “You.” What You’re doing. Who You know. Who knows You. What You sell. (And many of the times where it’s ostensibly not about You, it really is. Kind of like the old joke about the egotist, “So enough about me. How do you like my tie?”)

But what I’m really talking about here is organizations, not individuals. It’s You, the company, not You the person, who’s largely missing the boat on social media.

OK, I admit (happily) that it’s not really all about You out there. This is demonstrated by the organizations that support their own online communities, and engage on social networks in transparent, conversational, collaborative ways. And, yes, it’s appropriate for some things to indeed be about You: customers and prospective customers do want to know about Your businesses, how Your products and services can help them, and how and why You’re the best in the business; and members want to know about Your associations, and how You are helping those You’re supposed to help.

But social technologies sure make it easy to make it about You.

Yet the organizations that successfully leverage social media are the ones that don’t go this route. They’re the ones that make it about Them. Who’s Them? They’re your customers (or users, members, subscribers, readers, business partners, employees, or whatever audience is relevant and whatever terminology you prefer).

So how do you make it about Them? Here are some thoughts:

• Take Their Viewpoints and Ideas into Account. Crowdsourcing is a great way to make it about Them. Today’s technologies make it relatively easy to run a crowdsourcing program that gives Them a place not only to give you their ideas for making your business better, but also to vote on and rank each others’ ideas. The outcome is that the best and most feasible ideas bubble to the top, ready for you to take the actions that are most important to Them.

• Support What They Care About. Hard as it may seem to believe, They are interested in more than just your company, your products, and your services. So don’t just talk about your stuff; add some value related to the other things they care about. You can do this by blogging about trends you see in your industry, sponsoring an online community where They can to talk with, connect with, and learn from each other, and tweeting fast-breaking information that’s timely and relevant to what’s important to Them.

• Make Them the Center of Attention. I remember an interesting networking tip. It suggested that you bring other people with you to networking events. In particular, bring someone who is looking for something new, such as a new job or new business. When the two of you are there, don’t talk about yourself. Act almost as if you’re your friend’s agent. Introduce her to other people, highlight what she’s good at; turn conversations towards her. You’ll be seen as a connector, and as someone who goes out of his way to help others. So your own networking stock will rise, not by blowing your own horn, but by making someone else look good. Extending this to social media means retweeting good stuff your followers say, spotlighting your customers on your Web site, asking them to share their stories on your blogs, and helping them “strut their stuff” (as Patty Seybold would say) on your online community.

The promise of social media is that, when we’re all engaged and communicating with each other, all boats rise. You are part of that equation, but so are They.

How are you making it about Them?

Having an Impact

By Matthew Lees

I must admit that I’ve always liked the word “impact.” In just two short syllables it conveys significance and manages to be somewhat onomatopoetic. It both sounds like, and makes you think that, something important is happening.

Even when it’s used to describe something unpleasant, such as an automobile collision, the word brings an air of style. It’s much more refined than “crash,” and much more serious than fender-bender. (I’m speaking only of the noun; the adjective drops down more than a few levels in my book. While I’m fortunate, for example, never to have had an impacted molar, it doesn’t sound like a particularly delightful experience.)

In my role as an analyst and consultant, I use the word as part of the phrase “business impact,” to refer to the organizational benefits of online communities, social media, and social technologies. I’m not the only person who gravitates toward this term, of course but I have used it regularly and consistently over the years, much preferring it to the abbreviation “ROI” to help organizations focus on the bottom line. (While ROI is a perfectly valid and often necessary term, it tends to carry a bit of baggage.)

So when I first heard the name of Mike Rowland’s company, Impact Interactions, my ears perked up. I liked the sound of it from the get-go. It tersely and alliteratively says, “Let’s make a difference in the way you connect with others.” But there’s a large and vital difference between having an effective company name…and having an effective company. After getting to know Mike over the past few years, after having hearing him speak at conferences and other events, and after seeing him work to move the industry forward in a thoughtful, collaborative way, I quite resonate with his approach and his perspective. The company name fits.

I wouldn’t have taken this on otherwise. So it’s a great pleasure to have this opportunity to interact with you in this space. It’s a great responsibility, as well, to provide something of differentiated value amidst the depth and diversity of experience, knowledge, and opinions that pervade the blogosphere.

In the coming weeks and months, I’ll be writing about my observations on the interactions between people and technology, between business needs and customer goals, and between best practices and less effective methods, all as they relate to online communities and social media. I hope you’ll interact with me along the way – discussions are certainly more fun for participants and readers than monologues – supporting or questioning what you read here. That way, we can have an impact on each other.

~ Matthew

Welcome to our Special Guest Blogger Matthew Lees

I grew up watching television shows where each week there was a “Special Guest Star” on an episode each week. These guests provided a little extra to the show and usually were cool celebrities. Think of all the villains on Batman for example or the Brat Pack on “Vegas” or the vacationers on Fantasy Island…or for those of you a little younger, the guests on the Simpsons.

Following that idea, I’d like to introduce our Special Guest Blogger, independent analyst Matthew Lees.

Matthew is a well respected analyst in the Social Media and Online Community World (see his bio here). He is the author of reports through the Patricia Seybold Group such as:

1. Selecting An Online Community Platform
2. Best Practices In Crowdsourcing
3. Analyst Report: Lithium’s Social CRM Suite

After reading his research and reviews of his findings, I thought Matthew truly understood how to make social media technology work in an enterprise organization. So, like all good social media practitioners I followed him on Twitter (@mlees) and his blog. Matthew and I first met in person at one of Forum One’s Online Community Unconferences. We’d been reading each other’s blogs and reports and discovered that we come to the industry with the same high level focus… using these tools to improve business results. While Matthew focuses on the technology and its impact, we focus on the process and the users. Together, we cover the issues that all enterprises need to succeed in their social media projects.

We decided in late December over a crab cake lunch here in Maryland, that we should find a way to collaborate together. Our idea is to inform, educate, and drive the best practices we’ve developed to a broader audience with this blog and our twitter accounts. Matthew will be posting here over the next few months both independently and collaboratively with our team members.

If you have a suggested issue of topic for us to cover, please contact us by adding a comment on this entry or by using our contact form.

So, with that said welcome Matthew!

Mike Rowland, President

Social Media – The Global Story

The world is adopting social media at higher and higher levels according to a recent Neilsen Report.  According to the research by Neilsen, global time spent on social media sites increased by 82% in December 2009 when compared with December 2008. Pretty large increase especially if you look into the footnotes and understand that this research is based upon only U.S., U.K., Australia, Brazil, Japan, Switzerland, Germany, France, Spain and Italy. No China, no India, no Russia, nor are there any Nordic countries listed.

But this growth coincides with what we’re seeing here at Impact Interactions. We’ve helped develop and launch multiple communities in countries such as China, Russia, Italy, France, Germany, Brazil, Argentina, Mexico, Poland, and elsewhere over the past several years. And while clients are still interested in their communities in the U.S. their focus is shifting. We are seeing more interest in companies asking us to help them launch communities and social media plans in countries ranging from Japan to Russia to Brazil to Mexico.

The growth in third party applications such as Twitter and Facebook have helped companies to understand the potential reach of the medium, but it is the local language social networks like StudiVZ (German) which have helped in-country marketing teams decide that they must be engaged with their customers using social tools. So even as Facebook moves past these local social media/networks, the smart marketer understands that it’s not the tool so much as it’s the growth that matters in deciding whether social media is a good tactic in a particular market.

In our experience leading a social media workshop in Innsbruck, Austria at the prestigious Management Center of Innsbruck it was clear that our non-US audience were more engaged on local language social media tools including blogs and social networks than on the U.S. offerings. (In fact, it was there that I learned more about StudiVZ and other offerings.)

That doesn’t mean that non-U.S. members are not on Facebook, Twitter, or LinkedIn. But it does mean that for the savvy global marketer the research and identification of which sites or applications to use is a bit more difficult. While the strategy remains the same, each Internet culture requires a clear focus on localized tactics. That means a cookie cutter approach using the same tools like Twitter, Facebook, or other application across multiple markets will not deliver the results you desire.

Watch the growth, it’s here to stay. But also look for the smaller sites that can deliever more value to your organization when using social media globally. As the old adage goes “All marketing is local.” The same applies to social media.

-Mike Rowland, President

Men vs. Women in Social Media

In surfing through the web on my routine social media update, I stumbled upon a study done by www.royal.pingdom.com that brought up an interesting question, “What is the ratio of males to females participating in online social networks?” When I initially saw the title of this study I thought, “Of course, it’s got to be females” which was a correct assumption, but what I found equally as intriguing were the individual site’s results.

The survey conducted through data from Google Ad Planner(US Data Only), tracked 19 of the most popular social networking site’s demographic behavior. The study showed that 16 of the 19 sites were female dominated in terms of number of users. Sites tested in the survey included popular social networks like Twitter, Facebook, MySpace and LinkedIn, as well as social new sites like Digg, Slashdot and Reddit.

An interesting point taken from these results was that the only 3 male dominated sites were social news sites where users post and rate news threads based on their likings. Slashdot, Reddit and Digg attracted a male user group of 82%, 66% and 59% respectively. This says something about the ways in which males and females utilize social media. An appropriate quote I found from professor Russell-Bennet of Queensland University of Technology states, “It seemed women wanted to express themselves, while men enjoyed the thrill of social competition.” This proves to be true with men taking on a more competitive role in sites that involve ranking and user scores, where more females want to interact and connect with others.

Although these findings don’t prove to be particularly surprising, I found them quite informative and insightful in to the world of social media marketing. Be sure to take these findings in to consideration when developing a marketing strategy targeted towards one gender! What are your thoughts and opinions on this?

-Ben Crutchley, Manager of Client Services

Super Bowl of Advertising

Super Bowl XLVI is now less than a month away and sports fans across the world will be tuning in to see what team will raise the Lombardi trophy this season. In recent years, the games have been filled with exciting story lines and each had their fair share of excitement. Super Bowl XLII in 2008 featured the undefeated New England Patriots and Cinderella story New York Giants and drew a Super Bowl record 97.5 million viewers and trails only the M*A*S*H series finale as the largest telecast of all time. If you are like me, you are probably wondering what the M*A*S*H series is, not to mention how they managed 105 million viewers in 1983.

If recent history is any indication to the number of viewers that will be tuned in for this year’s Super Bowl, corporate advertisers and sponsors should be as ecstatic as Mel Kiper Jr. on draft day. The unforgettable commercials that million dollar 30 second Super Bowl spots have given us over the years are priceless right? Maybe not so this year. According to a recent New York Times article, the rates have decreased for a 30 second commercial during Super Bowl XLVI. Economic downturn and a rising trend amongst corporate advertisers to buckle down spending have lead to the decrease in 2010. Each 30 second slot in Super Bowl XLVI has been sold for $2.5 to $2.8 million.

Super Bowl ad giants FedEx, General Motors and Pepsi announced they will be absent from the commercial lineup this season. Pepsi has elected instead to launch a social marketing campaign, “Pepsi Refresh,” a program that rewards the best consumer ideas with grants up to $250,000 each. For a fraction the cost of one Super Bowl ad, companies like Pepsi can extend their reach using social media tools, but the appropriate plan, strategy and team needs to be in place to support marketing efforts. Unfortunately for Pepsi, the “Pepsi Refresh” program opened with major problems with security and privacy settings for its users. Pepsi’s flawed launch will undoubtedly damage their brand image and discourage consumers from participating in future efforts online. Companies are diving into social media campaigns head first without any understanding of how outreach relates to core business goals, or if they can achieve them. Only time will tell if companies like Pepsi will continue to launch social media marketing campaigns without the proper resources in place.

Eric Willey
Manager of Client Services