LinkedIn Looks For Fresh Revenue in Research

LinkedIn, the global social network with 30 million professionals across 150 industries, has unveiled plans to open up its global network to test market research as a potential new revenue model.

The announcement demonstrates attempts by key social networks to generate revenue within social media outside of simple advertising or sponsorship. One thing is for sure, the surveys should be highly targetable due to the transparency and trustworthy nature of the site, as well as its ability to select groups according to specialised sectors, including experience, seniority and geography.

Trials have been taking place for six months and already have a participation rate of up to 20%, suggesting LinkedIn could take a strong hold in the market against its competitors.

http://adage.com/digital/article?article_id=132003

- Sam

50% of Social Media Campaigns Fail

I think that we can all relate to the fact that there is a Facebook craze going on with our clients right now. The link below refers to new research from Gartner coming out next week that highlights the failure rate for social media campaigns by Fortune 1000 companies.

http://news.cnet.com/8301-13577_3-10058509-36.html

If you haven't seen the main goals of social media campaigns which Ali Little has been presenting within the Wave 3 decks, please ask him for them. The article touches on the need for a 'mutual purpose' where the community is benefitting from the marketing activity as well as the client. This is part of the overall list which we have been presenting and a simple requirement that is often overlooked.

Please check with Gartner to get this research when it is released and use it as fodder for properly guiding your clients' budgets.

Report on Social Network Marketing

Check out this interesting report by the Chartered Institute of Marketing (CIM) which provides a detailed analysis on social network marketing on Facebook and MySpace in the UK.
It specifically looks at engagement marketing techniques used by brands and suggests brands need to work much harder to engage their public than just looking for users to become a 'fan' of the brand.

The report is free after inputting your details.

http://www.socialnetworkmarketinguk.com/

- Sam

New Research from the EIAA Shows Increased Online Ad Spend due to Reduction in Offline Spend

81% of European advertisers claim that their allocated online ad spend has grown in 2008. 82% of them said they were funding the increase by downsizing their TV or direct marketing budgets according to a European Interactive Advertising Association survey.

38% of advertisers also now regard online as essential compared to 17% in 2006. 77% of those questioned found online advertising to have a positive impact on the perception of their brand as well as overall brand awareness (68%).

Online spend is increasingly being focused in three key areas. Display remains the dominant format taking 38% of spend, up 9% from 2006, while search and affiliate advertising are experiencing rapid growth, up 35% and 25% respectively since 2006.

http://www.brandrepublic.com/Digital/News/846120/marketers-raiding-offline-budgets-online-spend/?DCMP=EMC-Digital-Bulletin

http://eiaa.net/news/eiaa-articles-details.asp?id=173&lang=1

- Antonia Lim

6 Degrees of Separation now 3

In a new study released by O2, they have stated that people are more connected than ever before. In surveying three age groups (18-25, 35-45, 55+) they found that the average user is connected by three degrees within a 'shared interest or social group'. The study went on to state the people normally are part of three main groups: family, friendship, and work.

Here is a link to the press release:

http://www.o2.com/media/press_releases/latest_pr_14276.asp

The three different groups outlined above highlight what we are currently telling our clients around the fact that 'online schizophrenia' can exist within current users. Work colleagues are asking to be part of your Facebook profile, friends are asking to join your LinkedIn profile, there is a blurring of these three groups. Additionally, there are things that you are comfortable showing your friends that you wouldn't be comfortable showing your work colleagues or family. Therefore, there is a threat of social networks and tools for being 'watered down' versions of one's self rather than what one would normally want to post, comment, or upload.

There are existing companies that are looking to help with this problem. One to check out it MOLI (http://www.moli.com/). While it is doubtful that people will abandon the MySpace's and Facebook's of the world for this network, the concept is important. The ability to manage one profile across your three social groups is important and could lead to an evolution in how the big social networks allow you to display data (rather than the basic 'limited profile' view on Facebook).

Take this trend into consideration when building campaigns. What are you asking the individual to do within the social network? How can we supplement their experience to help them manage these different social groups. Is the time of day indicative of the social group that they most represent?

Go forth and test,

Rick

New Research Suggests Mobile Advertising Lifts Brand Metrics and Purchase Intent

Dynamic Logic recently announced the aggregate results of mobile branding research studies which compared people exposed to the mobile campaigns to those not exposed, suggesting that mobile advertising can be an effective medium for raising brand metrics throughout the purchase funnel.

An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these campaigns generally cut through and grab users' attention. Average increases in Brand Favourability and Purchase Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change consumers' attitudes towards a brand and to drive intent to purchase.

Mobile Advertising Impact on Brand Metrics:

Significant Metric Positive Impact (Delta % of respondents)
Mobile ad awareness 23.9%
Message association 12.2
Aided brand awareness 6.9
Brand favourability 5.4
Purchase intent 4.7

Source: Dynamic Logic AdIndex, July 2008 (Delta is % of respondents positively impacted by mobile ad exposure. Initial study considered small sample size)
N.B.: These findings are based on 21 mobile ad campaigns across a variety of industries. (Alcohol, Automotive, Consumer Electronics, CPG, Entertainment, Financial Services, Retail, Telecomm, Travel) The averages could significantly change as the number of campaigns increases, so any comparison made to them is directional.

The report posits that part of the reason for these positive increases may be a result of the newness of the medium. People may be intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen and is located in a less cluttered environment compared to the Internet.

Michelle Eule, Managing Director of Dynamic Logic, says "... As we do more studies, we continue to build these initial averages into a normative database that can be used for a more granular look into the mobile data... (the) same way our... database is used for online performance benchmarking and planning."

Kevin Arrix, Senior Vice President, Digital Sales, MTVN Networks, notes that "These averages clearly demonstrate to marketers that mobile is an increasingly powerful medium for communicating ad messages and engaging with today's consumer... Having initial averages to compare a campaign's performance against can serve as a guideline to what's working and what's not in these early stages of the medium."

For more information, please visit Dynamic Logic.

'Typical Day' Search Usage: U.S. data

http://www.pewinternet.org/pdfs/PIP_Search_Aug08.pdf

The Pew Internet and American Life Study just released their lastest study (see link above). It is focused on how users interact with search engines in a 'typical day'. As consolidated by Rob Garner, here are some of the top level findings below. While this is U.S. based data, I feel that these are interesting areas for us to explore in the types of people engaged with our search campaigns.

The sample group consisted of 2,251 adults, ages 18 and older, surveyed between April 8 and May 11, 2008. The big question in the survey was, "Did you happen to [use an online search engine] yesterday, or not?" -- and yielded 1,553 who said "yes."

- Since 2002, the number of Internet users who search at least once a day has risen from approximately one-third, to almost half, or 49%.

- Overall, the amount of daily search users grew 69% between 2002 and 2008.

- While coming in a close second to email in this study, search beat out other daily Internet activities such as reading the news (39%), checking the weather (30%), researching a hobby (29%), surfing for fun (28%), and visiting a social networking site (13%).

- Daily searchers are more likely to be "socially upscale" and college educated, with an income of $50,000 or more per year.- Searchers with incomes of $75,000 or more were the most active daily searchers (62%), followed by $50,000-$75,000 level, at 56%.

- Internet users with broadband connections were much more likely to search than those with dial-up at home (58% vs. 26%).- Users between the ages of 18-29 and 30-49 were higher-than-average daily searchers (55% and 54% respectively). Of searchers 65 and older, only 27% were daily search users.

- Data dating back to 2002 suggests that men who use the Internet have been more active daily search users.

- Men are generally more aware of the differences between paid and natural search. The study found that men say they have searched more frequently, and are more confident in their search abilities.