Turning Channels: Consumers Choose The Internet

If you're looking for more evidence that social media needs to be part of any communication plan, consider that social media is mainstream for more than 90 percent of all Americans. In fact, according to Forrester Research, four in five Americans use a social media platform at least once a month. More than half gravitate to services like Facebook, Twitter, and MySpace.

The Big Picture, By The Numbers

According to Forrester Research, adults over the age of 34 increased their participation in social networks by more than 60 percent. Older audiences have also adopted social media, with 70 percent of online adults ages 55 and older using social media tools at least once a month (26 percent use social networks and 12 percent create social content). Here are more numbers to reinforce the Forrester survey...

• As reported by USA Today, 250 million people are now members of Facebook, spending 13.9 billion minutes on the social network.

• About 30 million Facebook members already access social networks through mobile devices. ad:tech estimates mobile marketing is expected to grow over $24 billion worldwide in 2013 from $1.8 billion in 2007.

• According to comScore, Twitter users spend 66 percent more dollars on the Internet than non-Twitter users. They invested 300 million minutes on the site in April.

• LinkedIn has more than 365,000 company profiles. More than 12 million small business professionals are members of LinkedIn.

• More than 1 million small businesses and individuals promote their goods and services on MySpace. This is despite its steady decline in usage.

• The fastest-growing segment on the Internet is over 35, representing more purchasing power than any single traditional medium can deliver on its own. Even television is being outpaced by the Internet in terms of time invested, which is why most networks are migrating online.

Digital Media, By The Numbers

According to comScore, 158 million U.S. Internet users watched online video during this month, making it the largest viewing audience to date. More than 21.4 billion videos were viewed.

• 81 percent of the total U.S. Internet audience viewed online video.

• The average online video viewer watched 500 minutes of video, or 8.3 hours.

• 120.3 million viewers watched 8.9 billion videos on YouTube.com (74.1 videos per viewer).

• 48.2 million viewers watched 518.6 million videos on MySpace.com (10.8 videos per viewer).

What It Means For Businesses

Forrester Research has been a long-time proponent of integrated marketing approaches, conducting several studies that indicate traditional media's broken business model and fragmented audiences have disrupted traditional strategies. But beyond typically measured growth trends — numbers of members and time spent online — there are several key trends companies will have to consider as they integrate social media into the mix. Here are five:

• The average person will only follow or support a finite number of products and companies, making the social media program just as important as the product. People do not want constant updates as much as they want added value and original content.

• While the largest services — Facebook, Twitter, and MySpace — are current darlings, several social networks have sparked and then sputtered as policies change, services change, and companies are bought out. The social media space is constantly changing, making long-term strategy more important than short-term tactics.

• The chances that customers will seek out companies, products, or services on social networks is remarkably slim. Agencies and public relations firms that attempt to bill friends and followers as the ultimate measure are short-selling clients as many people join groups or follow companies and promptly ignore them. Measurement doesn't end with a connection.

• Media-Internet convergence means an increased need to consider mobile marketing. With new portable products coming online in the months ahead from Apple and others attempting to follow them, every company ought to be thinking about digital content not based on singular devices (phones, computers, etc.), but based on scalability and portability.

• Companies that engage people online have already seen an average increase in revenue by 18 percent, while those that did not saw a decline in revenue by 6 percent over the last year. Eventually, companies that ignore social media tools will fade away, much like those that didn't adopt the telephone years and years ago.

Getting Closer: Disney Looks For Soft Spots

With more than $25 billion spent on advertising this year, most eyes are on New York as Walt Disney Company’s new research facility will unveil some early findings and suggest online ad formats to about 200 advertisers. The formats, according to The New York Times, represent layouts based on what our brains prefer, whether we click on the ads or not.

The emerging media and advertising research lab was launched in May 2008 under the direction of Prof. Duane Varan, an authority on the future of television and advertising. The lab was developed to better understand the emotional drivers of audience behavior and physiological reactions to advertising.

It will be interesting to learn how Disney data meshes with a report released by comScore last year. Its study, on behalf of Starcom and Tacoda, showed that average click rates on display ads in 2008 were less than 0.1 percent. Starcom research also suggested no correlation between display ad clicks and brand metrics, no connection between measured attitude towards a brand and the number of times an ad for that brand was clicked, and that optimizing for high click rates does not necessarily improve campaign performance.

These are some of the same reasons we've avoided some "click" measurement assignments, whereas compensation is based on clicks. All too often, consumers develop a composite of impressions over time and seek out paths to demand fulfillment that they are most comfortable with. For example, after months of being exposed to movie messages, many customers traveled to local retailers over online outlets or visited online outlets from a path different than a source link.

In The New York Times story, much of the Disney research seems to hinge on google-based eye tracking, stereoscopic camera-based eye tracking and heart rate monitoring. While the lab promises to deliver deeper findings in these areas, it would be even more interesting if the lab eventually compares such models to contextual events.

For instance, we already know that the Coca-Cola brand is strong enough to cause people to prefer it over other sodas, even when its label is placed on competing products. Thus, we'd have to conclude brand reputation may have a dramatic impact on how small of an ad or simplified of a message some brands might get away with over other brands.

Communication doesn't happen in a box. And the brain works in some very mysterious ways.

Sure, we can ask questions (as The New York Times does) whether preroll ads that play before video clips are more effective when paired with banner ads. But will we ever know if the outcomes are different depending on the brand? It's hard to say. Neuro persuasion is still one of the least understood areas in the communication field.

What we do know, however, is that the effectiveness of advertising, marketing, and communication is tied to thousands of variables, including the individual experiences of each person exposed to an advertisement. The science beyond the creative or connection (in the case of social media) is attempting to effectively touch more of a mass audience on a scale of one-to-one as possible.

For example, when customers of a resort began writing personal letters to the owner of the property in response to his direct mail letters, we knew the communication mix was right. At that point, where the coupons landed on the page seemed trivial. Whereas, prior to having the right mix, coupon placement seemed to matter a great deal. Weird, but that's how we're wired.

Missing Net Intent: Marketers See Myopically

If Brian Morrissey, writing for Adweek, is right, then online communication has a long way to go before it can right the wrongs of its own success. He correctly points out that the Internet is "blessed because it differentiated itself as more measurable than traditional media — and cursed because it has pigeonholed the medium as an engine of direct-response."

The observation comes from a new survey conducted by Forbes. The survey polled 119 senior marketers and was conducted in February and March. The numbers reveal a surprisingly myopic view of the Internet as a tool to generate direct response as opposed to a critical branding component that could eventually help establish customer loyalty.

• 82 percent identified conversations as a leading objective
• 55 percent identified registrations as a leading objective
• 51 percent identified click throughs as a leading objective
• 31 percent identified brand building as a leading objective
• 11 percent identified increasing reach as a leading objective

"On the Web specifically, advertising has moved into more demand fulfillment as opposed to demand creation. That's not really advertising. There's nothing wrong with it." Jim Spanfeller, CEO of Forbes, told Adweek. "Doing search marketing and point-of purchase displays all works, but it's not advertising. It's not about creating demand and improving brand metrics."

Why Most Top Marketers Still Misunderstand The Internet

The Internet is not as myopic as most marketers would have anyone believe. It's multifaceted, with measurement best tied to communication objectives over the medium.

Clicks, registrations, and conversations are certainly a measurable component on the Internet, but utilizing the medium as a direct response vehicle is paramount to creating a self-fulfilling myth. If you use it as a direct response vehicle, then it's likely to be nothing more than a direct response vehicle, with a diminished return on investment over the long term.

The reality is that the Internet can be all of those things listed in the Forbes survey because the Internet is less of a medium than it is a convergence of media — print, radio, television, direct, display, networking, presentation, public relations, communication, word-of-mouth, etc. And the success of any program is directly related to how you develop that program.

Indeed, its versatility as a communication tool is as varied as any communication vehicle offline, which is why so many people struggle to place it within the various communication disciplines that exist — marketing, advertising, public relations, direct response, etc. All the while, it doesn't really "belong" to any of these disciplines because the medium, or collection of media, is clearly integrated.

Sharing New Wisdom: Fr Federico Lombardi SJ

"One of the biggest challenges facing us at present is that of interactivity, and, I would say, of 'positive interactivity'... In recent years the Internet has been for us an important tool that has made it possible for us to deliver content to countless users of all kinds. Now, however, the reality of the situation that is emerging is one in which the great thing is not simply content distribution, but greater and greater interactivity." — Fr Federico Lombardi SJ

While sometimes dismissed by business, government, and nonprofit organizations, the Catholic Communications Network issued a release yesterday that speaks volumes about the viability of new communication. In fact, Fr Lombardi, rather than considering the Internet a means to spread a message across the Internet, suggests something that has long been held true by the best participants.

It's about engagement.

The release includes Fr Lombardi's entire lecture to an audience of media professionals at Allen Hall at the Diocese of Westminster’s seminary and a PDF that outlines dozens of key points. Of note, Fr Lombardi offers how the press office had shown him how there is a need to establish a more organic and constructive dialogue and exchange "between the communications organs of the Holy See and today’s world of social communications — for today’s world is rapidly becoming something vastly different from what it was when my generation first experienced it."

He is exactly right. And while his message may be a message of communicating faith, there is a secondary message that resonates with anyone interested in online communication. One of several standout sections includes the six faces of its abuse. Paraphrased here:

• The face of falsehood, more or less explicit, and often mixed with half-truths.
• The face of pride, of self-referencing and self-centeredness that refuses to listen to other positions.
• The face of oppression and injustice, which denies others the freedom to gather information and give expression.
• The face of debauched sensuality that seeks to use and possess, respecting neither the body nor the image of the other.
• The face of escapism, which seeks refuge in imaginary or virtual worlds, completely subverts the purpose of social media.
• The face of division, which seeks to demolish dialogue, to undermine all efforts at mutual understanding among people.

However, despite the obvious shortcomings, which resemble those long noted by several communicators who employ social media, Fr Lombardi tempers his observations by conveying that new communication requires that we look for those roads [using social media] which will be beneficial for everyone. And, in conclusion, he finds the perfect statement to sum up his thoughts.

"The changes that have taken place in social communications during recent years and decades are obvious to all who have ears to hear and eyes to see." — Fr Federico Lombardi SJ

Shifting Ad Dollars: Reckitt-Benckiser Migration

"We've seen a fundamental shift in consumer consumption and media habits migrating over to digital video. Obviously YouTube started it, but we want to be aligned with professional content. With broadband getting to the scale that it has, the shift has happened. The integration of traditional and digital media is here now." — Marc Fonzetti, media manager and internet specialist for Reckitt-Benckiser

According to AdvertisingAge, Reckitt-Benckiser joins a long line of companies that are increasingly interested in the net. The company plans to shift an estimated $20 million in TV ad dollars to the Web for more than 15 of its brands, including: Lysol, Air Wick, Mucinex, Finish and Clearasil. $20 million is still only a small percentage of its estimated $475 million media purchased, but signals an accelerated migration.

The increasing emphasis on the Internet isn't only about CPM. Its also about market share. The company, which markets everything from Electrasol dishwasher products to French's mustard expects to increase its market share from 30 to 31/32 percent in 2009. Even more striking, Rob De Groot, head of the group's North America and Australia region confirmed what our research for some of our accounts has been saying for some time.

"The start of the recession has been here for the last six months. We haven't seen any recession in our numbers," he said, according to Reuters. "There is no reason to doubt that our innovation-led strategy is not working."

Right. Recessions are elective. Innovation is exempt.

Reckitt-Benckiser has frequently led the U.K. stock gains, including adding 7.6 percent profit after beating analysts’ estimates in February. The real losers in their most recent move might be major TV network Web sites. Reckitt-Benckiser decided to partner with ad-serving video ad networks such as Glam, Tidal TV, YuMe and Brightroll, rather than TV network Web sites, to avoid higher online CPM charges.

It's long past time for advertising agencies and communication-related firms to consider the obvious. Convergence is accelerating at a increasingly rapid pace. In fact, from our independent research, there is virtually no one under age of 30 that distinguishes media from social media or broadcast from online digital. Besides that, traditional broadcast doesn't reach mobile.

All this means that 2009 is shaping up to be exactly what we said it might be. Except, this is the year of communication in three months, not 12.

Failing Grade: Eric Clemons On Advertising

Eric Clemons, professor of operations and information management at The Wharton School of the University of Pennsylvania, drew some fire with his argument that the Internet shatters all forms of advertising. Enough so that he updated his post in an attempt to quell the criticism (or perhaps fan the flames) on TechCrunch, telling people how to properly frame their rebuts, ridiculing them for how they chose to comment, and warning them that he was right one time back in 1989.

As much as the Clemons post provides an excellent example of how someone allowed a message to manage them as opposed to managing their message, it might be useful to explore his argument. And, in doing so, demonstrate why his message failed.

Clemons Argument 1: People don’t trust ads. There is vast literature to support this. Is it all wrong?

As evidence, Clemons offers Dan Ariely's book, Predictably Irrational, which he says concludes that messages attributed to a commercial source have much lower credibility and impact on the perception of product quality than the same message attributed to a rating service. The argument fails, however, because effective advertising accounts for irrational behavior. Enough so that we consider it Rule 7 in The Real Nine Rules of Advertising.

But more importantly, it fails because messages do not take place in isolation. Clemons relies on Ariely's comparative model, which neglects that messages reach people from a variety of sources. It's more likely that a person who sees three advertisements AND a rating service confirmation is likely to be more impacted by that message than a message found only on a rating service. Why? Because the ad message is a promise, and the rating service is a confirmation of delivery on that promise.

He also backed up his argument citing Forrester Research's study that found 16 percent of consumers don't trust corporate blogs. Ironically, that study was flawed because it neglected to take into account that people don't trust blogs much like they don't trust hammers. People trust specific sources, not mediums or objects or industries. You can see the same phenomenon in banking today: people don't trust the financial industry, except for their own banks.

Clemons Argument 2: People don’t want ads. Again, there is a vast literature to support this.

Is there? Contrary to the self-validating statement Clemons without a source, there are some studies that suggest commercial interruptions can actually improve the television viewing experience.

More importantly, newer evidence suggests that while 60 percent of DVR users and 90 percent of TiVo users specifically skip through commercials "some of the time," Integrated Media Measurement found that 35 percent of people who have a DVR watched prime time programming online, where they could not fast-forward commercials. Hulu viewership grew 42 percent last month alone, obviously unhindered by advertising embedded in the programs.

Ergo, people want more choices. Online, the best models remain clear. There is a segment of the population that is willing to pay for commercial-free content, and a segment that is willing to watch commercials in order to enjoy that content for free. The only downside to this model is that offering commercial-free content for those willing to pay for uninterrupted programming reduces the the number of impressions for advertisers. However, it's becoming increasingly clear that CPM decisions are often overrated as they are only a small part of communication measurement.

Clemons Argument 3: People don’t need ads. There is a vast amount of trusted content on the net.

After admitting there is no literature to cite, Clemons asks individuals to think about how they form opinions of a product, from online ads or online reviews.

However, Clemons neglects that most online advertising isn't designed to form opinion. Banner ads, featuring a company name and logo only, do not shape opinion. By design, it can only do two things — build familiarity or lead people to a site where the opinion may be shaped. In other words, Clemons has asked an erroneous question in order to lead people to a suspect conclusion. He didn't need to.

Banner advertising rates are falling as click-through rates tend to be less than one percent. However, the challenge isn't the advertising, it's the execution. As long as online banner advertisements are designed to look like wallpaper, I think it's fair to assume that they will have about the same impact — a little less than one percent might say "Huh, nice wallpaper."

Clemons Truth 1: You cannot ridicule everything you do not like off the net.

One of the most striking comments proposed by Clemons was in his update that challenged people to construct better arguments. "You cannot ridicule everything you do not like off the net," Clemons said.

What struck me about his comment was that he might have considered it prior to writing a piece that aims to do exactly that. He attempted to ridicule online advertising, which he does not like, off the net. And then, even more perplexing, didn't anticipate that a largely unsupported opinion piece might be met with the "like" ridicule, which seems to demonstrate that he really doesn't understand the net at all, let alone advertising. (To be clear: the observation is not meant to diminish his credentials, but rather highlight the flaws in his approach.)

While some of the challenges to online advertising presented are notable, the problem — "the car won't go" — cannot be proclaimed to be the "car" when you haven't bothered to check the gas gauge. And in those cases, the problem is temporary.

As traditional mediums continue to shrink and converge, it stands to reason that online advertising will continue to grow in ways that most people have yet to imagine, especially mobile advertising and interactive proximity advertising. So, in other words, it's not advertising that fails right now. It's ineffective advertising that fails right now.

As an interesting side note to conclude upon, Jason Falls recently asked "Would advertising offend you?" if his blog, social media explorer (SME), began to accept paid advertising. While most people offered up it wouldn't bother them any more than his Alltop or AdAge Power150 badges, which are non-paid ads, Falls correctly points out the obvious: "I don’t make money from my blog. I make money because of it."

Therefore, it might be safe to conclude that the blog IS the ad. Everything else, from being sourced or cited to network participation or paid/unpaid ads (like a widget), attracts people to it. And while I don't know how long people spend on SME, I do know they spend 3-5 minutes visiting this one because we don't demand informed debate, but deliver it with hope for the future.

Treading On Headlines: Newspapers Sink

“In 2009 and 2010, all the two-newspaper markets will become one-newspaper markets, and you will start to see one-newspaper markets become no-newspaper markets,” said Mike Simonton, a senior director at Fitch Ratings, who analyzes the industry, to The New York Times.

He is not alone in his assessment. Time magazine recently listed what it believes are the 10 most endangered newspapers in America, including: The Philadelphia Daily News, The Minneapolis Star Tribune, The Miami Herald, The Detroit News, The Boston Globe, The San Francisco Chronicle, The Chicago Sun-Times, The New York Daily News, The Fort Worth Star-Telegram, and The Cleveland Plain Dealer. The article also suggests eight of the 50 largest papers could be gone in the next 18 months. (Hat tip: Thomas Mitchell, editor of the Las Vegas Review-Journal, who has been posting a series called "Information wants to be free, reporters want to be paid" for some time.)

There is a rub too. According to a Nielsen Online report for the Newspaper Association of America, average monthly unique audience figures for newspaper Web sites grew by nearly 7.3 million in 2008 to 67.3 million visitors, an increase of 12.1 percent over 2007. Monthly unique visitors during the fourth quarter of 2008 averaged 68.2 million, an 8.6 percent increase over the same period a year ago (62.8 million).

So the reality is that newspapers are more popular than ever, but the business model is broken. It doesn't have to be, but it is because daily publishers operated in denial for almost a decade. Most of them, including the Orlando Sentinel, noted steep circulation declines as early as 2003. From our data, virtually all newspaper circulation graphs look similar if not the same.

The Solution Is Symbiotic Content Over Duplication

There are many reasons newspapers are failing, but the one we'll touch on today is the most obvious. When publications migrated online, they duplicated the content in entirety and then added more features to the online asset than the print publication could ever hope to support.

While this might have proved to be a successful model, dailies made the mistake of considering the online asset an entirely new revenue stream (thereby denying print advertisers the benefit of the online circulation as well). Had the advertisers been allowed to migrate online for free, dailies might have survived with a single revenue stream.

But instead of having one product, dailies created two. And in doing so, they became their own competition, with the better product only fetching mere pennies on the dollar in terms of advertising revenue. Another solution might have been to follow other models proven successful on the Web.

Instead of duplicating content, newspapers could have considered creating a more symbiotic model, with the print and online versions of the publication carrying similar but modified content. For example, the printed daily could have included the in depth coverage (the kind that kept newspapers competitive with broadcast over the last few decades), while the online versions could have summarized, editorialized, or provided actual supporting documentation (such as letters, court filings, etc.) for the print version.

Doing so would have driven print subscribers online and some online readers to subscribe. While there are many different degrees of differentiation for such a model, the basics are the same. There are plenty of companies that have already proven premium content still pays the rent. Sometimes, it even pays more than an annual subscription to a daily newspaper.

Not All Dailies Will Die, But News May Never Be The Same

If there is a bright side to the blight facing newspapers, it might be that the long-term future seems more promising than short term. Eventually, one can hope that the public will grow weary of increasingly yellow journalism (biased opinion masquerading as objective fact) and return to objectivity as once envisioned by Walter Lippmann.

This doesn't mean that I believe people will pay for objective reporting as it exists today, but I do think objectivity will eventually recapture its audience, assuming tomorrow's dailies will resist the urge to tamper with the term as today's dailies have done. (Not everyone wants to have their opinions validated. Some people still value the truth.)

Of course, once these publications have an audience, advertisers will follow. In fact, they'll be even more likely to follow as soon as marketers finally learn that circulation isn't the best measure. It hasn't been for some time.

Marketing Mobile: CW Multimedia

Almost two years, Harris Interactive, a full-service market research firm, presented a complimentary webinar that suggested mobile advertising was particularly adept at strengthening the bond between the brand and the consumer, communicating messages, and changing behavior.

It had good reason to. Although not part of the webinar, two days prior, Idol Gives Back had nearly broken records, raising more than $60 million for poor children in Africa and the United States. At $60 million, Idol Gives Back was just $1 million shy of the Jerry Lewis MDA Telethon.

In Louisville, Ky., that same program became a defining moment for the owners and employees of CW Multimedia. Several members of the team were watching American Idol when they recognized a new direction for their multimedia company. Mobile marketing was their future.

"We had already been kicking around the mobile marketing for several months," says Mike Willis, national sales director. "But the volume of text messages that came in that night really put a light under things."

The Kentucky Derby Provides The Test For Text

One year later, the Kentucky Derby Festival allowed festival fans to send text messages from their cell phones at selected events. The initial promotion, a simple Text-2-Win contest, asked fans to text “THUNDER” to a designated number to win VIP seats. More than 2,000 text messages were received in a couple hours.

CW Multimedia quickly modified the next event to include Text-2-Screen, allowing fans during concerts to text messages to a JumboTron screen at the venue. By October, Churchill Downs had teamed with Pepsi, allowing participants to purchase Pepsi products with instructions on how they could win six clubhouse tickets for the 2009 Kentucky Derby using their phones.

Toby Keith Presents Some Of The Possibilities

"One of our newest partners is country singer Toby Keith, whose fans can opt-in to his mobile fan club and receive updates, special offers, pre ticket sales, and all sorts of things," says Willis. "His fans also use Text-2-Screen at his concerts. You know, when we were growing up, we'd hold up lighters at concerts. Kids today are texting messages to the screen, adding themselves into the show."

Since adding the Mobile Fan Club, Keith has had more than 50,000 fans opt in to receive special offers, alerts, wallpapers, ring tones, and exclusive invitations. In addition, CW Multimedia tracks all activity, including text response via its own database software system. It tracks, in real time, information sent from the fan's phone, allowing some offers — such as a private meet and greet — to be sent to a specific area code or designated group within the database.

The benefit to fans? Imagine your favorite singer inviting you back stage after the show. Exactly.

The Future Of the Internet Is Predicted To Be Mobile

Last year, there were more than 250 million cell phone subscribers in the U.S., which represents about 82 percent of the population. By 2020, the Pew Internet & American Life Project projects that mobile devices will be “the primary connection tool to the Internet for most people in the world.”

"Mobile devices already represent more eyeballs than television sets or desktops," says Willis. "What a better way to connect to your audience or community no matter where they are, at any time … the first two things people look for before they head out the door are their wallets and phones."

CW Multimedia isn't the only one who thinks so. As the only company contracted with every carrier in the U.S., it has hosted mobile marketing promotions for Wal-Mart Stores Inc., Unilever, The Walt Disney Co., Universal Studios, TNA Entertainment LLC, and the NCAA. Even more remarkable, most of these promotions have been held in the last six months.

"We used to include several multimedia services, but the demand for mobile in the last six months has convinced us to specialize," says Willis. "Even our Web site services is focused on integrating other promotions or adding sites specifically for mobile phones. We're able to build in almost anything ... streaming video, live events, and database collection."

Highlights Of What Is Possible And On The Horizon

• Employee text message databases to help fill shifts and coordinate
• Pairing club cards with consumer databases to message customers on site
• Mobile coupons with text or bar codes that can be scanned from the phone
• GPS technology to identify and message select consumers based on proximity
• Send friends or customers for customized voice messages from celebrities
• Send friends or customers prepaid ringtones as gifts or for any other reason

Trending Generations: Pew Research Center

The Pew Internet and American Life Project, an independent public opinion survey research project that studies attitudes toward the press, politics and public policy issues, posted the results of its Generations Online in 2009 last week. The comparative study evaluates data between 2005 and 2008.

In keeping pace with Harris Interactive's poll in 2007 and the Universal McCann study in 2008, Internet users range from the very young to the young at heart. Right on. The Internet is for everybody.

The Internet Has Become Multigenerational

• 24 percent of adult Internet users are ages 55+ (Boomers, S.G. and G.I. Gen)
• 22 percent of adult Internet users are ages 45-54 (Younger Boomers)
• 23 percent of adult Internet users are ages 33-44 (Gen X)
• 30 percent of adult Internet users are ages 18-32 (Gen Y)

The largest increase among a singular age demographic were Internet users ages 70-75. While only 26 percent of this group participated online in 2005, 45 percent participated in 2008. Participation among ages 75+ also increased from 17 to 27 percent. Ages 60-64 increased from 55 percent to 62 percent.

Other Key Findings Online From 2005 to 2008

• Ages 18-32 are more likely to use social networks, seek entertainment, read blogs, and create content
• Ages 33-64 are more likely shop online, perform tasks (banking), visit government sites, and research products
• Ages 65+ are most likely to research products, obtain health information, visit government sites, and use e-mail

A quick evaluation of the general differences reveals that younger Internet users are increasingly active and much more likely to engage content creators and become content creators. In fact, it is interesting to note that despite calls by Wired that blogs were dead, Internet users ages 12-38 are more likely to create and read blogs than ever before.

But why does any of that matter? So what?

After scanning several dozen blogs, it seems few people drew conclusions beyond the Pew data. But then I remembered a post penned in December called Generation "Why". As Valeria Maltoni pointed out then, the context is changing. And with it, so are the conversations.

Marketers may even be making a mistake. While most are attempting to become increasingly targeted, Internet demographics are becoming increasing diverse. And that might mean marketers will have to learn how to balance targeted content with inclusive conversations that touch multiple publics. How do you do that? It begins with listening.

Thinking Global: Branding Local

For all the talk of a shrinking world, Nigel Hollis, chief global analyst at the market research firm Millward Brown and author of The Global Brand, has noticed a shift in the other direction.

"There are some underlying decisions people make when they decide to go global," Hollis told the International Herald Tribune. "One is that the world will become more and more homogeneous. That is just not happening. There's a lot of evidence that despite the spread of globalization we still live in a very localized world."

While the article recognizes some global campaigns, especially consumer electronics such as Apple's silhouetted dancers introducing iPods, can work; most brands, from food to personal-care products, make small adaptations in order to capture local appeal. In fact, even the on Web, communities tend to develop over time, creating a feeling of proximity that is based less on geographies and more on topics of interest.

Some companies seem to be catching up on the localization curve on the Web, even if they don't call it that. For example, Adweek noted that among the hundreds of journalists at the Consumer Electronics Show in Las Vegas, popular bloggers were being tapped by large companies with the hope of capitalizing on these localities. (Seth Godin might call them tribes.)

Prevailing thought, as reiterated by Chas Edwards, chief revenue officer at Federated Media Publishing, is that companies need to give up on the notion of control over their brands. The concept is not new. Companies never had control. And, when you step back and think about it, Hollis is saying something very similar — global branding is customized and localized.

Of course it is. As Phil Dusenberry, chairman of BBDO Worldwide, noted years ago: “Brand is the relationship between a product and its customer.” And that means branding, like all communication, works best when communicators and copywriters think in terms of reaching, or writing to, one person at a time. There is nothing more local than that.

Defining Communication: Real-Time Over Social

If anyone needs more evidence that 2009 will be the Year of Communication, consider the upcoming 'Real-Time Communications Conference' will lead with a keynote presentation about embracing social media and online community building by Pfizer Vice President Ray Kerins.


Following Kerins will be a panel discussion moderated by Sarah Milstein, author, Twitter and the Micro-Messaging Revolution. The panel will include: Paul Gennaro, senior vice president & chief communications officer, AECOM Technology Corp and David Sacks, founder and CEO, Yammer, Dave Armon, president, PR Newswire, and Morgan Johnston, Corporate Communications manager, JetBlue. There are also two roundtable sessions.

The conference will be held on Jan. 14 at the Graduate Center of The City University of New York, but portions of it will be broadcast live via a PR Newswire/MultiVu Webcast. So what's on the agenda for business besides positioning "social media" as a subset of real-time communications?

• Case studies of leading organizations that embrace real-time communications.
• Real-time communications to build communities with customers and prospects.
• Analysis of leading organizations on how they can manage and defend brand reputation.
• Maintaining core values and principles while maximizing flexibility for unforeseen events.
• Integrating crisis communication when challenged by real-time events online.
• An overview of the tools and technologies that today's communicators need to know.

Lewis Green, L and G Business Solutions; Francois Gossieaux, Emergence Marketing; and Valeria Maltoni, Conversation Agent (to some extent); have all expressed concerns that the social media expert crowd might be disconnecting themselves from business.

We also mentioned the trend several times last year, first following up on some comments made by Ted McConnell, general manager-interactive marketing and innovation at Procter & Gamble Co., and again in response to the overemphasis of conversations even knowing that neither might be popular. Right. For all the fun of following what is hot and what is not, businesses are moving right along without those who profess to know.

Does that mean businesses will make mistakes? You bet they will. But even if the tone of the new Wells Fargo-Wachovia blog (hat tip: Shel Holtz) seems a bit off, the social media crowd might have to accept that most customers don't care what comes first or last as long as companies move in the right direction.

Understanding ROI: U.S. Vets

While many social media experts and communicators tend to think "sales" anytime someone mentions return on investment (ROI), serving as a state commissioner for Nevada Volunteers (formerly Nevada Commission for National & Community Service, Inc.), provides a different perspective. Return on investment doesn't always mean profit margins; it means outcomes.

U.S. Vets On Veterans Day

U.S. Vets, one of several AmeriCorps-supported programs administered by this commission in Nevada, provides safe, sober, clinically supported housing and employment assistance to help rehabilitate homeless veterans. Here in Nevada, U.S. Vets helps more than 750 veterans transition from being homeless to self-sufficient every year.

They accomplish this by initiating contact with homeless veterans; providing a needs assessment; relocating them to transitionary housing, offering legal services, life skills, family support, job training, and full-time employment. I've spoken with and interviewed many graduates of the U.S. Vets over the last six years I've served as a commissioner.

From Nevada's perspective, every dollar the state invests is matched with the equivalent of about $10 in federal funding, one of the highest returns on investment for any non-profit organization in the state. Amazingly, although it would be enough, U.S. Vets is not the only AmeriCorps program to benefit.

Outcomes from various programs include: the reforestation and the reduction of fire hazards across hundreds of acres near rural communities, educational assistance to hundreds of at-risk students who increased their proficiency by two grade levels, and delivering thousands of residents medical case management and badly needed food. There's more, but the point is significant. ROI is about outcomes.

ROI is about a plumber who visited my home a few years ago. As he was passing back and forth from his van to my sink, he noticed President Bush on television and smiled.

"I know a lot of people who don't like him, but I do because he supports AmeriCorps," he said. "Without AmeriCorps, I would still be homeless, but now I have a full-time job and am graduating to move into my own apartment next week."

As you might expect, we talked for some time as he shared how he came to be homeless and how U.S. Vets helped him restart his life. I shared with him how AmeriCorps occasionally becomes a political football, but how it's also one of the most efficient bipartisan programs in the country. Originally, AmeriCorps was brought into existence by President Bill Clinton and later saved by President Bush through his Call To Service (and now highlighted on President-Elect Obama's transitional Web site. Why? Because of individual success stories just like this.

My Son On Veterans Day

His story also reminds me of something else today. The people who serve as AmeriCorps volunteers all over our country are inspiring Americans because they demonstrate how Americans do not have to be "forced to be generous" as I heard one politician recently claim. On the contrary, they only need to be engaged.

Today, my son became engaged after learning about the Adopt A Soldier, Sailor, Airman or Marine program organized by Soldiers' Angels. For the next six months, he will write a serviceman or servicewoman stationed abroad, sending a card or letter each week and care packages once or twice a month. It might not seem like much, but it's an important self-chosen step for a 9-year-old to take in developing what may one day become a legacy of service, inspired by our veterans and servicemen and women. And that too is ROI.

For our veterans, thank you and bless you.

Talking About Social Media: Solutions Stars Video

Geoff Livingston released a sneak peak of NetworkSolutions' upcoming Solutions Stars Video, a 45-minute video that compiles an overview of social media for small businesses from the viewpoint of several pros across nine different topics:

• Building Web Presence
• The Social Opportunity
• Start with Listening
• Strategy Drives Outreach
• You Need Social Networks
• To Blog or Not to Blog
• Visibility Through Search
• Rising Above the Noise
• Time Demands

The video will be released online at 1 p.m. this Wednesday, Oct. 29. It will also be available on Facebook and Yahoo Events, and includes a chat session with some participants.

The sneak peak includes sound bites from Brian Solis, Rohit Bhargava, Tim Ferriss, Steve Hall, Toby Bloomberg, Ryan Anderson, Darren Rowse, David Alston, Mari Smith, Liz Strauss, and Paul Chaney.

Teaching Social Media: A Near Dead Deck

Social media is one of those subjects where the life span of a single deck is three months if you're lucky. So, I'm retiring the deck I've used (and updated several times) at the University of Nevada, Las Vegas.

Since it was never intended for slideshare with 62 slides serving as the back drop of a 3-hour open conversation-driven class, I've had to break it up in several smaller parts to share it there. You can find all four here or read the content description each part:

Social Media For Communication Strategy, Part 1 (20 slides)

The first 20 slides provide an overview of social media mass, with an emphasis on the fact that more than 90 percent of adults are online and there is virtually no demographic difference between online people and offline people. Nowadays, there are only people, many of which are passively engaged in social media whether they know it or not.

Social Media For Communication Strategy, Part 2 (8 slides)

The next eight slides emphasize how the adoption of social media among businesses is accelerating in every industry; how convergence is playing an important role in driving increased Internet usage; how print continues to be impacted by the Internet; and a quick comparison of an Internet footprint left by a static Web site and consistently updated blog.

Social Media For Communication Strategy, Part 3 (18 slides)

The next set touches on analytics, with an emphasis that analytics are useful but not the end all in tracking or determining success in business. For businesses, intent remains the most defining factor in determining ROI. These slides also include some very basic blog orientation content and general theory about citizen journalism.

Social Media For Communication Strategy, Part 4 (16 slides)

For businesses, I generally propose they employ their intent specific blog as their home base before moving into social networks. The last batch plainly provides a social network overview, with an emphasis on the idea that people move through social networks much like they move through various physical social spaces in their daily lives — from the home to the coffee house to their job, etc.

In many cases, I’ve back linked specific slides to source material on this blog and elsewhere (if it was not already linked in an originating post). It might provide some additional insight into the verbal portion of my presentations.

Sure, this might be a little more nuts and bolts than my usual posts. But there are a few people out there that might appreciate a peek into social media beyond the bubble and from the ground. Enjoy.

Next year, I might even make it more slideshare friendly.

Teaching Social Media: The Friday After BlogWorld

It will be interesting to see what impact, if any, BlogWorldExpo on Sept. 20-21 will have on my Social Media for Communication Strategy class, sponsored by the University of Nevada, Las Vegas and Las Vegas Chamber of Commerce, on Friday, Sept 26.

Much like last year, it will likely depend on the speakers. After all, social media sometimes comes across as being an inch deep and a mile wide even though it really is a mile deep within the context of strategic communication.

Right on. The long tail of social media need not wag the company dog.

When put in the right context, the value of social media for the public and private sector is easy enough to understand. When it is not, I cannot blame decision makers for being skeptical about the satire that is all too often presented as fact. Applied without the Kool Aid, social media tends to look more like this ...

Five Critical Facts About Social Media That Businesses Need To Know.

• Social media reaches more people and shapes more opinion than all other paid and unpaid media combined.

• The online population represents 90 percent of all adults, with online demographics in lock step with offline demographics by age, gender, ethnicity, income, and education.

• Active participation is not an accurate measure because content consumers outnumber content creators in the United States by 4-to-1.

• While there seem to be many rules in social media, the only one that seems to stand the test of time is authenticity, which makes sense because that concept in communication predates social media.

• Social media analytics are always interesting, useful, and insightful. Yet, none of them means anything.

Five Critical Trends That Are Shaping Social Media Today.

• Social media is trending toward mobility at an exponential rate, especially as Apple continues to push mobile technology forward.

• The bar on quality original content will continue to be raised as entertainment producers and magazine publishers turn their attention online with the hope of salvaging advertising revenue.

• The modern concept between citizen journalism and professional journalism will continue to evaporate, with some citizen journalists employing social media as their entry into the profession.

• Companies will come to terms with social media, but will continue to struggle with the difference between being responsive and intrusive.

• Tactics to expand online reach will eventually be redefined to include a mix of organic traffic, long tail search terms, and message-specific ads on sites that already capture organic traffic and key word searches.

In other words, I suppose any impact to my class will be directly tied to how deep BlogWorldExpo speakers can delve into such topics.

If these speakers do, I’ll anticipate some pretty heady questions. And if they do not (and I’ll know because I’ll be there), then the deepest questions on the Friday after will likely be “what is social media?” and "what if a someone disagrees with me?"

Sharing 100 Rules: So You Can Write Your Own

Did you ever wonder if the people who write 10 rules about anything ever bother to read the 10 rules about everything else?

1. Ten Commandments for Facebook.
2. Ten Rules of Twitter.
3. Ten Rules for Profitable Blog Startups.
4. Ten Great Netiquette Rules for Social Networking.
5. Ten Rules for Driving Traffic Using Forums.
6. Ten Rules of Internet Marketing.
7. Ten Rules of Web Site Design.
8. Ten Rules for Designing Social Networks.
9. Ten Rules for Responsible Blogging.
10. Ten Rules of Good Blog Writing.

Diminishing Returns: Magazine Publishers Market Online

With advertising continuing its trend toward straightforward communication, it’s no surprise magazines are looking to promote their product — advertising — with a simple straightforward message: “They make people want to buy things."

The Gawker, emphasizing that magazine ad pages are down more than seven percent, presents some tongue-in-cheek logic behind a campaign that appears mostly on the Internet. The Gawker also pulls our favorite sentence from the article that offers an explanation:

” The goal is to show that advertising in magazines encourages consumers to consider buying products — a phenomenon known as purchase intent — and stimulates them to go online to shop or to learn more about items they might want to buy.”

Wow! The logic is nothing new. Magazine publishers have been pushing this message — that print advertisements drive online searches, Web site visits, and word of mouth (among other things) — for some time but public relations and direct marketing wasn’t preventing the decline. Why not? Target audience.

The vast majority of print ad purchasers are at agencies. Yet, media buyers are much more likely to consume content online. But that has little to do with the real challenge that magazine publishers are facing today.

Most magazine publishers have spent so many years promoting cost per impression; it will require significant effort to reverse the most pervasive magazine marketing sales message in history. In fact, they have to retool their message to be more like the small publications they used to browbeat based on numbers provided by the Audit Bureau of Circulations because Internet content beats them in free content, niche consumers, and numbers. Is there anything left?

Yes, and no.

It seems to me that the only thing that magazine publishers can hope to do is refine their niche, improve quality content, and provide some or all of their content online while still retaining some semblance of differential between the print publication and online content. Impossible? Not really.

Entertainment Weekly seems to be doing a reasonable job at differentiating its online and print content. But Time seems slightly more challenged. Dwell, which is one young print publication I do enjoy receiving in the mail, not so well.

But more importantly, they might do a better job bundling print and online space. After all, if magazines have something right, it’s this: most advertisements are starting to have a singular mission — drive the consumer to the Web site where every inch of content is controlled by the company.

That’s something to think about. And so is the logic behind a marketing campaign that makes consumer look unhappy with their magazine-influenced purchases.

Catching New Fans: Rob Thomas

When you visit the Web site of screenwriter and producer Rob Thomas, his work is divided into sections: Books, Film, Television, Music, and Personal Info. But one more category remains on the top of a site that hasn’t been updated since one of his projects received the green light for season two — and that would be Veronica Mars.

By all accounts, Thomas seems as dedicated to Veronica Mars as the fans are to him. I know the fans are, because every few weeks they send me an update on their activities to grow a show that was prematurely cancelled after its third season.

Sure, fan outcry from cancelled television shows has become commonplace, with everyone from Moonlight to October Road giving it their best shot. But there is one thing unique about Veronica Mars fans. They remain optimistic realists — people who accept that Veronica Mars is unlikely to return to television, but may one day see a second life with a Veronica Mars movie.

The secret to their continued success? They have several small but memorable programs in place. I was introduced to one of them last March when they asked me to “try watching three or four episodes” and see if I wanted to watch the rest of the season.

Although the question was padded, because I was already watching season three via iTunes, I gave season one a shot. Four busy months later: my family couldn’t watch three or four shows. They had to watch them all.

They are now waiting for me to order season two from Amazon.com, which will be right after I send the “loan it forward” DVD set to its next destination this week. It’s headed cross country to a blogger who might appreciate the high touch approach to consumer marketing if not the show on its own merit.

If he watches a few episodes into disc two, he might become another fan and then “loan it forward” again. After all, there is something smart about the writing in this enduring series as the primary story arches develop. Coincidently, I felt the same way about season three. The set-up doesn’t seem as strong as the middle, but it eventually becomes vital to the underlining story.

Is it working? Considering one of the fans recently presented actor Jason Dohring (he portrayed Logan) with a scrapbook full of fan letters and artwork and the fact that Veronica Mars is still being positively mentioned in the press again and again, they seem to be doing something right. And in some ways, perhaps, better than anyone else.

Sure, our friends and Jericho fans are still sending nuts, but the Veronica Mars campaign continually captures more fans and friendly media attention without the hazard of having already had its second chance.

But more importantly, after watching two seasons of Veronica Mars, I’m won over with the logic that it just feels like big screen material. Provided Rob Thomas is in the driver’s seat and some of the cast continues to show an interest before they get too old to play their parts, it really could work as an alternative to the consistently typical summer blockbusters that tend to grace the screen.

Nothing But Net: TheWB.com

A little more than two years ago, Warner Bros. Television Group (WBTVG) announced it would make hundreds of movies and television shows available for purchase over the Internet. They’ve come a long way since then.

Today, WBTVG announced digital distribution deals with Dailymotion, Joost, Sling Media, TiVo and Veoh. It already has a channel on AOL and a surprisingly dynamic Facebook application, with a trailer that ends “the next great network will not be televised.”

“The launch of TheWB.com [beta] represents a natural progression of the Warner Bros. Television Group’s digital strategy and complements our core business, which is based upon episodic storytelling, first-class distribution and providing value to partners through advertising in a premium environment,” said Bruce Rosenblum, president of WBTVG.

The move also solidifies the continued shift toward total broadcast-Internet convergence, especially since Warner Bros. will be adding original short form content. Currently, the WB beta site is offering full episodes of All Of Us, Blue Water High, Buffy the Vampire Slayer, Dangerous, Friends, Gilmore Girls, One Tree Hill, Smallville, The OC, and Veronica Mars.

What will be especially interesting is if the new site might even provide viewers another opportunity to resurrect some shows that did not perform well according to Nielsen ratings. Several had developed strong Internet fan bases, including Veronica Mars, Moonlight, and Supernatural.

Moonlight fans found out their show was cancelled in May while Veronica Mars fans are still working hard to see their favorite detective move from the small screen to the big screen. (Supernatural has at least one more season left on The CW; we hope many more.) According to fans, all of these shows have a following that is not well represented by Nielsen.

For WBTVG, the move toward an all-digital network might also provide marketers and advertisers with more options than investing exclusively in their own original content to reach an audience that is already outpacing traditional media. The primary advantage for WBTVG over other networks seems to be that they are unencumbered by any attachments to traditional media. For them, it’s simply full steam ahead.

Talking Turkey: Andrew Cohen VS. Public Relations

The Buzz Bin is abuzz, providing a snapshot of the "kertuffle" over the CBS analyst Andrew Cohen’s remarks about the Public Relations Society of America (PRSA), which was prompted by former presidential press secretary Scott McClellan's new book.

Excerpt from McClellan’s book:

So I stood at the White House briefing room podium in front of the glare of the klieg lights for the better part of two weeks and publicly exonerated two of the senior-most aides in the White House: Karl Rove and Scooter Libby.

There was one problem. It was not true.

Except from PRSA about the book:

In the wake of the recently published book by former presidential press secretary Scott McClellan, PRSA is calling for government reform and challenging the 2008 presidential candidates to adopt a communications policy engaging principles like those in the PRSA Member Code of Ethics.

Excerpt from Cohen about public relations:

Show me a PR person who is "accurate" and "truthful," and I'll show you a PR person who is unemployed.

The reason companies or governments hire oodles of PR people is because PR people are trained to be slickly untruthful or half-truthful. Misinformation and disinformation are the coin of the realm, and it has nothing to do with being a Democrat or a Republican.

Excerpt from Robert French, which mirrors much of the industry reaction:

You know, I see this latest example of PR bashing (from a news network that feeds off of media relations) to be just another in a long line of foolish, ignorant (and a bit arrogant) people. Even funnier, regarding this happening on CBS - of all places, it was their network that recently wanted to farm out some of their coverage to CNN and not do it themselves.

Except from PRSA’s rebuttal:

Regarding your commentary on today’s CBS Sunday Morning, the Board of Directors of the Public Relations Society finds it imperative to affirm the professionalism of public relations practitioners and to take exception with what we regard as a misguided opinion.

Except from Cohen’s rebuttal after the flack:

I am now the target of a public-relations effort to ridicule my effort, my points, my character and integrity. I expected nothing less. I mean, when you make fun of people whose job it is to burnish public images you’ve got to expect they are going to, well, burnish their own public images at the expense of your own. I am not taking it personally.

My take, part one:

Every year, I share two points to public relations professionals that might apply.

1. As a public relations professional, your reputation stays with you, not the company, organization, or government entity that asks you to lie. So, basically, don’t do it.

2. As a public relations professional, you cannot control what other people say; only how you react to what they say.

My take, part two:

I think we just witnessed a mainstream media version of a blog drama among eagles. How very quaint.