ogilvy red paper

Upload: sasanka-reddy-chappidi

Post on 07-Apr-2018

255 views

Category:

Documents


1 download

TRANSCRIPT

  • 8/6/2019 Ogilvy Red Paper

    1/29

    Socializethe Enterprise

    John Bell

    The Red Papers:

    Ogilvy &Mather

  • 8/6/2019 Ogilvy Red Paper

    2/29

    Socializethe Enterprise

    John Bell

    The Red Papers:

    Ogilvy &Mather

  • 8/6/2019 Ogilvy Red Paper

    3/29

    The Red Papers:

    Contents

    Introduction

    High octaneglobal growth oword o mouth

    Change withinthe enterprise

    Social mediastrategy now

    Key takeaways

    Reerences

    5

    10

    18

    42

    44

    46

    February 2010, No. 2

  • 8/6/2019 Ogilvy Red Paper

    4/29

    5

    Socialize the Enterprise

    Time or a comprehensivesocial media strategy

    Ater a year o experimentation in social media, the CMO o a global FastMoving Consumer Goods (FMCG) company realized that, once again,his teams latest eort was not working. He was rustrated. This time, hethought, they had cracked it. From the outset, the team looked to existingagency partners and new social media gurus to help them tack the socialmedia programs to their product campaigns. The media companiesoered paid placements in social networks. The advertising creativesdesigned a clever Facebook application, and the public relations teamsuggested reaching out to some bloggers to spread word o mouth. The

    brand team elt they had the tactics to transorm their traditional marketingcampaign into a social media campaign. But, with no real way to measurethe impact o blog posts, Tweets or the limited use o the Facebookapplication, it just seemed like a lot o work to generate modest wordo mouth online. Where was the ROI in that? When the three-monthcampaign came to a close, the CMO was disappointed. He wantedsomething bigger, something that reminded him o mass media.

    The FMCGs social media experiments had let behind a trash heap oexpired initiatives, ignored sites and unattended accounts. All the work andall the money they had poured into social media had not produced muchto brag about. In retrospect, their eorts seemed tentative, unconnectedand perunctory. That, the CMO decided, just wouldnt do. Heading homeon the Friday evening ater his latest social buzz-kill, the CMO didntknow what to do next. Part o him wanted to junk the whole social mediaworld entirely. The results didnt justiy the eort and expense.

    Ater dinner that night, the CMO logged into Facebook, caught up with his

    riends and then started to head over to the Twitter eeds he was ollowing,just like he did every night. He paused, his nger hovering over themouse button, and realized that i social media was this much a part ohis lie, then he couldnt ignore the impact it had on his customers. More-over, he had read the data; he knew that consumers trust and habitswere shiting toward the social landscape. His younger colleagues onthe brand teams were unrelenting boosters o social media, and, to behonest, he was an awully big consumer o it too. Every time he opened

    Introduction

  • 8/6/2019 Ogilvy Red Paper

    5/29

    6

    The Red Papers:

    7

    Socialize the Enterprise

    the trades, he read about how his competitors were knocking the covero the ball with social media. He needed some o those positive headlines.Then the CMO actored in his own boss. The CEO was no ool. He hadlasered in on social media as a big opportunity one they were not yetmaking the most o and the whole C-suite was buzzing about it. Nope.This was not something that could be abandoned.

    But they couldnt keep going the way they were. Sure, most o their socialmedia stabs seemed exciting when they launched, but as ar as he couldtell, they had not made the slightest business impact. Some o them, hethought rueully, were outright ailures. When they bombed, his brand

    teams just retreated into buying more media. As he reviewed the pastyear and a hal o rustration, the CMO realized that in many cases, heand his team had simply ported traditional marketing over to a socialplatorm. His marketing group was lled with smart people; he couldnthave been the only one to see these problems. Yet teams rom all over thevast enterprise were repeating the same mistakes. Obviously, there was nomechanism in place to accrue knowledge and then share best practicesthroughout the organization.

    I they were going to continue and they were they had to do betterthan just checking o the social media box on the corporate to-do list.Budget time wasnt ar o, and he knew hed see plenty o line items orsocial media spending. How, he wondered, could he wrap that up intoa budget he could stand behind? He did not have enough data to knowwhat social eorts were going to work, what they would cost and whatkind o revenue impact they could return. He needed a new approach away to adjust his organization to capitalize on social media while helpinghis brand managers bank some appreciable, measurable success, all without

    stomping on their entrepreneurial drive.

    While this tale is apocryphal, the arc o the story will sound amiliar to anybrand executive. Tactical experimentation in social media blows up orbrands, leading to a spiral o disappointing campaigns and unrequited love.

    Brand marketers eel like jilted dates at the high school dance, convincedthat social media doesnt work, that their brand is immune or, worse, thattheir customers just dont want to talk about them. Hundreds o brandsall across the globe have tested the waters o social media over the pastew years, lurching orward with disjointed social media eints thatoten end in ailure. Peter Kims Master List, an online wiki lled witha ew thousand examples o brands launching blogs, Twitter handles,communities and more, is a monument to the utility o most o thosedisjointed, tactical eorts.

    Social media is not just a new channel or a ew extra degrees in the 360

    approach to marketing and communications. Social media represents aundamental consumer behavioral shit requiring marketers to changehow they market, how they are organized and how they measure success.To succeed via social media and to achieve real business impact, brands andorganizations must adopt a comprehensive strategic approach to integratingthis new discipline.

    Were our well-intentioned CMO to have approached social media with astrategic eye, he would never have tried pinning it to the back o a traditionalcampaign. Instead, he and his brand team would have put social at theheart o the entire marketing and communications eort. Pundits havebeen evangelizing the power o social media or close to a decade.Consumers get it. The rate o marketplace adoption o social media andword o mouth around the globe is aster than anyone could have predicted.

    Companies, by contrast, have lagged behind their customers, but they arelearning that embracing this platorm is not optional. Whether you are aglobal FMCG, an automobile manuacturer, nancial services company

    or a BB technology leader, no one can aord to hesitate. At the sametime, tactical, unconnected experiments will not vault the brand orward.Integrating social media into the marketing and communications unctionsimplies a deep transormation not just o marketing but customer service,product development, and even the way the enterprise benchmarks success.

    Intro

  • 8/6/2019 Ogilvy Red Paper

    6/29

    8

    The Red Papers:

    9

    Socialize the Enterprise

    This strategic approach begins with learning to generate authentic,positive word o mouth via social media. Follow up with a ocus on long-termgains rather than just short-term campaigns. Dening how to add scaleleads to integration across the other marketing disciplines while commonmeasurement models give the team the data to understand what is workingand what is not, turning every tactical experiment into a strategic moveorward.

    The main qualities o an enterprise-level social media strategy moredirect and open relationships with customers, aster marketplace responseand increased eciency around marketing, customer service and product

    development have proven themselves invaluable to early adopter brandslike Dell, Zappos, Ford, Starbucks and more. But the pace has quickened,and creating a social media brand strategy is a little like designing, buildingand driving a car simultaneously.

    Ultimately, what social media enablesis a new orm o word o mouth

    Intro

  • 8/6/2019 Ogilvy Red Paper

    7/29

    11

    Both social media and the new, empowered consumer are here to stayregardless o whatever platorm is popular today. Social media behaviorsand platorms have enjoyed remarkable growth around the world, mostnotably in Brazil which has seen the astest rate o Twitter adoption.While Facebooks U.S. user base grows older rom twenty-six in 2008 tothirty-three in 2009 Twitters grows younger. Eighteen- to twenty-our-year-olds account or thirty-seven percent o its users, up rom nineteenpercent just a year ago. As it spreads rom the early adopters to a muchbroader base, social media behaviors and platorms are emerging in marketsaround the globe. This is a worldwide trend.

    Ultimately, what social media enables is a new orm o word o mouth.Whether I blog about my love or the new Ford Taurus, become a ano the Lance Armstrong Foundation on Facebook, Tweet a link to Amextickets or the Rolling Stones concert or pass a video o Nick Cave readingrom Bunny Munro to a riend, its all word o mouth.

    Word o mouth trumps most other orms o communication in its inuenceon purchase decisions and opinions. Three years ago, we began to seethe erosion o trust in traditional marketing in avor o a digitally enabledtype o word o mouth. This expanded orm went beyond amily andriends to a new group: strangers with expertise or strangers with experience.These are people who, like ourselves, express themselves online via blogs,orums, Twitter, Facebook and regional social media platorms. Theyinclude other dads who have some experience raising a iteen-year-oldson and can teach me a thing or two, as well as sel-made style mavens whoknow more than any magazine on the racks. When it began, we thoughtthis trend was reserved or mature media markets where consumers hadgrown skeptical o advertising claims. It would take years or young media

    markets like China to ollow suit.

    We were wrong. The Chinese consumers participation in social mediahas exploded. In 2006, there were an equal number o blog readers andwriters about ty-eight percent o the online population whereastoday the number rockets to ninety percent or readers and eighty-onepercent or writers.

    10

    THE RED PAPERS

    High octane global growtho word o mouth

  • 8/6/2019 Ogilvy Red Paper

    8/29

    12

    The Red Papers:

    13

    Socialize the Enterprise

    For the Chinese online consumer, online word o mouth trumps traditionalmedia in inuencing brand perception and purchase decisions. AsThomas Crampton, who heads up Ogilvys 360 Digital Inuence teamacross Asia, explains, Chinas levels o engagement in social media outstripthose o many nations. Distrust o the state sponsored media makes socialmedia based word o mouth campaigns that much more e ective.

    A McKinsey study ound that when asked what would lead someone to buya new moisturizer, sixty-six percent o all Chinese said recommendationsrom riends and amily was vital.

    Participation in Online Conversations in China is Growing Fast:

    Growth o Social Media Use Amongst Online PopulationGlobal Web Index, Trendstream Limited 2009

    Online Word o Mouth Inuences Brand Perception and Purchase

    Decisions in ChinaMillward Brown ACSR, May 2009

    Blog readers

    Blog writers

    Create social network prole

    Manage social network prole

    Visit a riends social network page

    Video watchers

    58

    58

    56

    2006% participating 2007 2008 2009

    85

    62

    49

    79

    89

    71

    63

    64

    75

    56

    90

    81

    70

    72

    82

    89

    33

    25

    24

    24

    21

    17

    16

    15

    Newspapers / Magazines TV

    Onlinecommentby peopleI knowrom theInternet

    Onlinecommentby peopleI dontknow

    OnlineSearch% agree

    It will inuence my

    perception on the brand.

    It has the inormation

    I want to know.

    It is the channel I use oten.

    It is valuable.

    I will recommend it to others.

    It is convincing.

    It is believable.

    It will inuence my nal

    purchase decision.

    33

    25

    25

    22

    19

    17

    14

    17

    32

    25

    24

    28

    25

    24

    23

    23

    43

    36

    40

    37

    29

    31

    26

    31

    21

    25

    33

    22

    15

    15

    13

    18

    Highoctaneglobal

    growth oword omouth

  • 8/6/2019 Ogilvy Red Paper

    9/29

    14

    The Red Papers:

    15

    Socialize the Enterprise

    In Europe, we see a similar trend. When asked who consumers trustedor the most accurate opinion on a product they were considering,a good contact on a social network came directly ater a close riendand a amily member at the top o the list, well beore a journalist or TVnews reader.

    U.S. Moms that most-coveted gatekeeper o many purchases clearlyvalues the online opinions o her peers well above the advertisements shemay see in traditional media.

    Highoctaneglobal

    growth oword omouth

    Europeans Trust Contacts on Social Networks More Than TraditionalGlobal Web Index, Trendstream Limited 2009

    U.S. Moms Value Online Peer Communications Well Above TraditionalAdvertising or Media: Inormation Ranked by Percent o Moms Indicatingit was Very Valuable2009 Women and Social Media Study, BlogHer, iVillage and Compass Partners

    A amily member

    A close riend

    A good contact on a social network

    A neighbor

    A store assistant

    The author o a blog you read regularly

    A journalist or a national newspaper

    A television news reader

    The main contacts on your microblog

    A well-known celebrity

    Your countrys leader / politicians

    1.50 Friends

    Person to person Ino rom articles Ino rom traditional ads

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    Onlinereviewsromconsumerslike me

    Expertreviewsonline

    Onlineriends

    Onlinearticles

    Magazinearticles

    T V ad s Mag azi neads

    Newspaperads

    Radioads

    Average Trust equals very strong trust

    2.00 2.50 3.00 3.50 4.00

  • 8/6/2019 Ogilvy Red Paper

    10/29

    16

    The Red Papers:

    17

    Socialize the Enterprise

    The growing importance o the opinion o peers both those we knowand those with whom we identiy is a global phenomenon. Brands whohave a lot at stake in emerging markets or growth can no longer shrugo peer reviews as a Western thing. Consumers in China may avororums and portals over blogs and Twitter, but the impact o word omouth online is growing unmistakably. While the state media control maybe one explanation, national marketing crises around tainted milk, leadin paint and other products, as well as a general mistrust rom outlandishmarketing claims has likely accelerated the skepticism.

    As marketers, our job now shits rom top-down message dissemination

    to peer group inuencing. We must strive to help customers, enthusi-asts, ans and other strangers with expertise share their thoughts aboutour products and the topics and ideas that bring us together with them.Rather than trying to control the conversation, we want people to searchin Google and nd the endorsements o our advocates third parties whosay our products are as good as we say they are. Social media and wordo mouth marketing has become a big part o our business. Marketersand investors are banking on the growing power o social media. As keyhurdles rom measurement to organizational to integration are overcome,this use and investment will skyrocket. A recent study sponsored by theWord o Mouth Marketing Association tracks marketers spend on wordo mouth and social media marketing. It ound that we spent almost twobillion dollars last year alone, a number that will increase by ty percentcome 2013. A tremendous return on investment will accrue to those whospend strategically.

    Highoctaneglobal

    growth oword omouth

    The growing importance o the opinion o peers both those we know and those with whom weidentiy is a global phenomenon.

  • 8/6/2019 Ogilvy Red Paper

    11/29

    Socialize the Enterprise

    19

    Strategic use o social media takes eort and change at all levels othe organization. That takes time. Five to ten months will pass beore arigorous approach to social media shows big results. The company shouldbegin by educating teams and adopting best-practice guardrails.

    Actual marketplace programs with results that everyone can evaluate andappreciate ought to ollow soon ater. Even the most aggressive marketerwho wants a program in-market in thirty days needs to know that time

    just like money must be invested or a new approach to take hold. Thereis a lot o marketing muscle-memory to retrain.

    Our FMCG will ace three big changes within the enterprise. They will

    need some silo-smashing collaboration across the whole organization.This goes way beyond 360 marketing and communications teams.Customer service, or at least corporate public relations, should get draggedinto the mix. The product development team must get involved post-hasteas advanced social media strategies lead to co-creation or collaboration withcustomers. That can impact the actual product or service or sale. Thecompany needs to jettison campaign thinking. All o us have to engagewith our customers in a sustained, ongoing eort that will likely transcendnot just the lie o the paid media buy but also the sparkly goodness o thelatest big idea. Lastly, no marketing team can adopt any practice on aithor too long. To make a sound budget or ongoing social media activity,marketers must have a dependable measurement model buttressing theirhigh-perormance strategic approach.

    18

    THE RED PAPERS

    Change within the enterprise

  • 8/6/2019 Ogilvy Red Paper

    12/29

    20

    The Red Papers:

    21

    Socialize the Enterprise

    Collaborating across silos

    When American Express wanted to shake up their approach to marketingat their customers with social media engagement, their rst stop wascustomer service. Beore Amex could earn the right to use social mediato engage customers, they had to oer a social customer care solution.Had they not launched twitter.com/askamex to listen and respond toCardmember questions and concerns, any other social media marketingeort would have died under the weight o customer service trac. Theyneeded to collaborate with customer service to deliver a marketing solution.

    When Dell launched IdeaStorm to solicit customer thoughts on productinnovations, their rst stop was product development. They neededto make sure that the product teams were ready to not just listen tosuggestions but take action on them. By inviting customers to makesuggestions and have some o them be incorporated in products, theyturned these customers into invested advocates. Marketing could nothave accomplished this without breaking down operational barriers withproduct development teams.

    Social media will drag the whole enterprise into play. Resisting thispressure is utile. Finding ways to work together easily across businessunctions will improve the value o social media to the business, increasingcollaboration and market responsiveness. Businesses can start byestablishing a ederation o people rom across all disciplines who want orneed to apply social media to their discipline. Call it a working group, callit a committee, call it whatever is acceptable and meaningul, but makesure these people come together to establish best practice principles orusing social media and that they share openly the lessons theyve learned.

    Its no big mystery that the best application o social media inside theenterprise starts with some basic social activity.

    Beyond the campaign

    Brands across the Unilever, P&G, Campbells, Pepsi and Coca Colaportolios have actively engaged in social media experiments over the pastew years. Many learned that they need to push against built-in pressuresor short-term thinking and planning. How can you motivate a brandmanager who has an average lie expectancy on a particular brand oeighteen months to think about developing a two-, three-, ve- or eventen-year relationship with customers?

    Short-term campaigns oten leave a disparate collection o Facebook

    or YouTube pages out on the social web many o them abandonedonce the campaign was over. These may have served some short-termgoal (or not), but they create conusion and negative eelings amongstconsumers who expect to see brands living up to their side o the socialnetwork contract. Generally, brand exploration in social media is a goodthing. It builds condence and expertise within the organization. Butwithout a strategic ramework, it can lead to less than best-practice useo social media. Companies must curtail the English-garden growth osocial network beachheads in avor o strategically guided experiments.Its a business truism, but its worth repeating: the consumer must comerst even beore our ninety-day needs or launching product variationX. Brands must apply some order to this chaos without squelching theentrepreneurial drive that got them doing something in social media inthe rst place.

    Changewithin theenterprise

  • 8/6/2019 Ogilvy Red Paper

    13/29

    22

    The Red Papers:

    23

    Socialize the Enterprise

    Responsible budgeting

    What do we budget next year? Think about this routine question.I the most eective use o social media is a sustained eort beyond anyone campaign, involving more than the marketing and communicationsteams, then the current method o measuring success campaignmetrics is insucient. These measurements cannot assess the impacto an ongoing social media eort and do nothing to calculate return oninvestment. Without those two key pieces o data, how can you have aninormed view o what to budget next year? An evolutionary approachwont get you there. Unlike media-driven campaigns where a marketer can

    dial up or remix the spend to get dierent (hopeully better) results, a socialmedia program requires new metrics to move budgeting beyond guesswork.

    Measurement o social media is changing how we measure business

    Brands cannot wait or the social media equivalent o the Gross RatingPoint (GRP) to land in their laps. It is nally possible to measure theperormance o social media programs, and the newest perormancemodels will likely change how we all measure the impact o our marketingand communications and customer service eorts in the uture. No, wedont have new standards in place yet. Any marketer who holds out untilthat is delivered to them on a silver platter will nd hersel o the back othe pack. Many major marketers today are exploring two new perormancemetrics or social media while guring out how to integrate them into their

    brand dashboards: the Net Promoter Score (NPS) and value metrics orsocial key perormance indicators.

    The NPS is a proprietary model or benchmarking the health o a businessbased upon some version o the simple question, would you recommendus? There are billions o brand mentions every day online and ofinewhich can be classied, given some context, as positive, neutral ornegative, but brand marketers want to activate and increase positive wordo mouth about their product. The NPS measures that positive word omouth. Brands that engage with social media will need to adopt someorm o an NPS metric being as it indicates actual consumer sentiment.Rather than rely on inchoate brand mentions, measures like the NPSassess a behavior, and a highly desired behavior at that. What good aregross impressions compared to knowing who is recommending yourproduct and how to reach them?

    Whats next? How about the value o a Facebook riend? The value o aword-o-mouth mention? Or the value o my social graph? Each o these

    metrics which seem intuitively valuable will nd some orm o simpleand plausible measurement within the next two years. I you add to thatthe compound eect o owned, earned and paid media, then marketerswill have a new way to assign value to their market-acing activities.

    Changewithin theenterprise

  • 8/6/2019 Ogilvy Red Paper

    14/29

    24

    The Red Papers:

    25

    Socialize the Enterprise

    As our apo cryphal CMO learned the hard (and expensive) way,experimentation in social media is not enough. It leads to a sel-deeatingseries o disappointments as brands try to hit the jackpot o a runawaycampaign or replicate the seductive power o a viral video. Only acompany-wide strategic approach that puts social media at the centero brand strategy, accrues useul learning and applies meaningul newmeasurement tools will produce the kind o results marketers need andconsumers want. A strategic social media approach will orce change, tobe sure, but it will also reorient the enterprise to ace the most signicantchange in the selling environment that any o us will see in our lietimes.Strategic ocuses show brand teams the way to meet their short-term

    campaign needs while building an enduring connection with consumers.CMOs will get a program that directly and measurably aects sales targetsand brand equity. CEOs will see that the organization is embracingchange. And customers will see a brand that is committed to them or thelong haul, not just selling that new avor or ormula.

    Brands must do three things to develop a comprehensive strategicapproach to social media. Start by dening the social brand just howcan (and should) you participate in social media in a way that is authentic?Not every company should put their 1,666 blogging employees in anaggregator like Microsot. Not every brand should enlist women to tellmen how they can score like Axe does via Facebook.

    Beyond dening their social nature, brands must look inside and breakdown the silo walls that shelter one department rom another, preparingteam members or collaboration and learning. An enterprise changeramework can speed adoption o best practices and organizationalrameworks, and establishing an engagement playbook will ensure that

    brands get the biggest impact rom their marketing and communications.

    Creating your social media strategy

  • 8/6/2019 Ogilvy Red Paper

    15/29

    26

    The Red Papers:

    27

    Socialize the Enterprise

    Dening the social brand

    You spent millions deining your brand, and millions morecommunicating that to the world. You built complex marketing andcommunications programs that speak consistently across channels. Youmay have even aligned your call centers to that brand positioning. The 360approach to brand stewardship is standard operating procedure these days.

    But what about the social identity o a brand? Is social just a ew moreclicks around the 360 wheel? Is it just another way to describe thebig idea? Brands must choose the role they want to play in social

    media and what they will do there, not simply what they want to say.Dening the social brand means deciding how you will behave in thesocial web, what voice you will use and how deeply you will participatewith your customers.

    There is more than one way to be social. Does every brand need to jumpinto a daily two-way conversation with people to demonstrate that theyget it and to serve their customers? What makes it okay or Starbucks toinvite customers to co-create via My Starbucks Idea may not work orMcDonalds. Fords Fiesta Movement may be right or them but not orLouis Vuitton. Brands have long been described as personalities. Now thatmetaphor means more than ever. Brands must think and choose wiselyabout what is a natural personality to portray.

    Creating yoursocial media

    strategy

  • 8/6/2019 Ogilvy Red Paper

    16/29

    28

    The Red Papers:

    29

    Socialize the Enterprise

    Brands can choose to:

    Humanize themselves through their people and their stories

    Demonstrate openness by inviting customer opinion, whether it be avorableor unavorable

    Be o use to their customers in some new way

    Delight customers via innovative entertainment

    Steward customer communities or eedback and to trigger word o mouth

    Extend customer care via social tools that are more immediate and answerquestions publicly

    Deliver relevant content via the social web to the places their customers arealready congregating

    Each o these is a legitimate way to act socially. Each can be an extensiono the authentic brand personality. Some brands are enablers trying to helptheir customers achieve something. Some brands deliver un. Some eelmore exclusive. How should your brand behave in social media? Like therelentless helper, Zappos, known or their riendly, even quirky, customerservice? Or are you more like Campbells Soup, providing a virtual kitchenor women to share their recipes and experience with other women?

    Fords enduring brand position has always been the democratizationo technology. Ater all, they pioneered mass production, making theautomobile available to many. The 2010 Ford Taurus embodies that same

    spirit by placing technology once limited to the luxury brands into a caror the masses. As Ford dives deeper into social media, their democraticheritage guides their choices. They embrace the voice and experience otheir customer by aggregating blog and Twitter mentions, images andvideos rom owners and prospective owners, projecting the mood o atown hall rather than a corporate lobby.

    Axe has little interest in democracy. Instead, it wants to give you a leg up.Axe is that wingman who will help you score with the ladies. That comesacross in their advertising as well as the apps that ll their Facebook page.

    Axe has chosen to be the enabler who, with a twinkle in his eye and a smileon his ace, has decided that your un is his mission.

    Creating yoursocial media

    strategy

  • 8/6/2019 Ogilvy Red Paper

    17/29

    30

    The Red Papers:

    31

    Socialize the Enterprise

    These brands rooted their social brand in their larger brand position.While this connection makes sense, brands may also nd that they havepermission to behave a little dierently in social media. Very oten abrands social sel can be more inormal or even riendly, even i that isnot key to the core brand personality. I you operate within a regulatedindustry like pharmaceuticals, nancial or alcohol, you will need to addressthe requirements o those regulations as that may aect how your socialbrand maniests itsel. An alcoholic beverage company, or example, mightneed to embrace a social voice and message around the responsible use othe product, thereby earning the right to engage in deeper discussions.Hold a workshop with your brand and social media enthusiasts. Peter

    Friedman rom the social media community company LiveWorld likes to callthis the socialization o the brand. Ask yoursel some simple questions:

    I you met your brand at a party, how would you describe it?

    What voice should your brand speak in?

    From within your company, who would be a good archetype or that voice?

    Is your brand more likely to engage in conversation or help others do the same?

    I you could invite your customers over, what would you do together?

    What social causes do you care about?

    Some o these questions seem hokey. Give yoursel and your team a littleroom to explore and the reedom to be corny. Suspend your disbelie andcheck the hierarchy at the door so that you and your team uncover the

    natural position or your brand. There is no one path to socializing yourbrand, and your discussions may show you that you are not ready to jumpinto direct conversations with your customers via social media, preerringinstead to help them share amongst themselves. Perhaps it is not y ourbrands job to entertain your customers but rather to be useul to them in anew way (like an iPhone app, or instance).

    Once you have a denition or your brands social sel, your strategicchoices will become clearer.

    Building your enterprise change playbook

    Social media is not just or marketers or communications experts. Manybrands are nding that social media can inorm or even change basicbusiness processes across the enterprise, rom customer service to productdevelopment. Thats a lot to take on at once, and a strategic approach willstart you in a ew distinct places like training and organization. This willintroduce change at a level that impacts the business immediately. Youdont have to set out to transorm your enterprise to gain advantages romsocial media, but once you have enjoyed the rewards, youll look back andnd yoursel transormed.

    Creating yoursocial media

    strategy

    You dont have to set out to transorm your enterpriseto gain advantages rom social media, but once youhave enjoyed the rewards, youll look back and ndyoursel transormed.

  • 8/6/2019 Ogilvy Red Paper

    18/29

    32

    The Red Papers:

    33

    Socialize the Enterprise

    Social Enterprise Change Playbook For large organizations to reap theull benets o social media in their business, they need three eorts:

    TrainingA training program to build capacity rom with the organization.Social media cannot be completely outsourced, and team membersacross disciplines rom marketing to customer care to legal needtraining. An accreditation program ensures true expertise, and a patho continuous learning keeps teams sharp on the next new thing.

    OrganizationOrganizational modeling tells us how to structure the organiza-tion including jobs and responsibilities as well as how toproductively engage outside partners such as agencies.

    ActionEach discipline needs its own social media action program that tellsthem how they can apply social to their market-acing activity.

    Customer service

    Internal communications

    Marketing and communications engagement

    Training: Social media cannot be outsourced at least, not completely.Nor can it be learned through books. This is one discipline that requireshands-on experience and nonstop training. Ogilvy, or example, hasdeveloped a complete training program delivered both live and online.Our belt system allows marketing and communications sta to work theirway up to black belt abilities in our social media dojo. Intel has adopted adierent approach, using an accreditation program or their sta.By taking digital university-level courses, sta can acquire knowledgeand status within the organization. To transorm your current stayou will need to develop a training program that ts your sta. Someorganizations such as the Word o Mouth Marketing Association oer

    basic training which is a critical starting point, and social media training isbeing introduced into marketing and communications programs at majoruniversities. Nevertheless, brand organizations should expect to developtheir own higher-level training that is mapped to what their marketersreally need.

    Whatever approach your organization adopts, active, ongoing educationis mandatory in a social media-ocused organization. This world changesquickly, and the change is driven by your consumers. Being behind thecurve shows them disrespect.

    Creating yoursocial media

    strategy

    This world changes quickly, and the change isdriven by your consumer. Being behind the curveshows them disrespect.

  • 8/6/2019 Ogilvy Red Paper

    19/29

    34

    The Red Papers:

    35

    Socialize the Enterprise

    Organization:Social media doesnt belong to marketing, public relationsor customer relations. It doesnt sit neatly within any o the existingdiscipline silos, and creating a new, distinct organization runs contrary tothe integrated nature o social media. Instead, brands are creating centerso excellence, pulling people rom all disciplines to orm an internalederation. Its mission: to dene and socialize best practices, while sharingand integrating this knowledge throughout the organization. Intel,

    American Express and others have adopted this model, sidestepping thequestion o who owns social media? and creating a more responsiveculture. The work coming rom your social media center o excellence willaccelerate the integration o the communications and marketing teams

    and will spread rom there. Even i your organization has competitivemarketing and communications silos today, they will all be one unit sittingshoulder-to-shoulder in the uture.

    Once youve committed to building a center o excellence, you need togure out whom to invite. Its key to have most disciplines attending marketing, communications, customer care and product development.Its just as important to identiy the enthusiasts or social media and inviteas many o them as makes sense. These olks may not be the most senior,but their natural interest and aptitude will propel the group orward. Theycan be productive word-o-mouth ambassadors or social media within theorganization. Embrace them.

    Who will do the actual work within the brand, and how will you determinewhat must be done internally, with consultants or via your agencypartners? How can you determine which key positions to hire beorethe actual revenue impact o those positions is revealed? In answer tothose questions, most companies grossly underestimate or overestimate

    what they need to have an eective social media program, especially inthe beginning. Many settle or hiring that one social media person andthen wonder why their business is not magically transormed. Still othersassume that industry leaders like Dell have a legion o social media-specicpeople and unless you get that legion, no progress can be made.

    The truth is somewhere in between. Managing customer care in the socialweb is resource-intensive. I you are trying to manage the conversation

    calendar o your Facebook page and content publishing elsewhere inyour social web, you may nd that you can centralize all o that with asingle, very busy person. But that is only one key platorm. Just the livecoverage on Twitter alone can require two or three team members. Theorganizational task is to identiy the least number o resources you needinternally, augmenting those olks with your agency partners. Time willtell where and when you need to sta up.

    I you chose well, your agency has a lot o experience bringing socialmedia to bear or dierent brands. They can help you develop your socialbrand position and assist with changing how you work. They can also

    serve as a useul lter or the re hose o new technologies and solutionsspringing up in the marketplace every day.

    1 Conversation calendar is a term used by Facebook sales reps to describe the daily andweekly rhythm o updates to your brand Facebook pages to keep your ollowers engaged.

    Creating yoursocial media

    strategy

  • 8/6/2019 Ogilvy Red Paper

    20/29

  • 8/6/2019 Ogilvy Red Paper

    21/29

    38

    The Red Papers:

    39

    Socialize the Enterprise

    Owned, Earned and Paid Media:A brand has the choice o how it will useits own Web presence and content. While this owned media oersthe ultimate in control, it lacks the benets o two-way dialogue withconsumers. From your web site to your Twitter account, owned mediacan be used more conversationally than the press releases, white papersand videos you may have pumped out a ew years ago. Today, ownedmedia should be shareable and ndable. Embed your owned mediawith web standards or distributing and bookmarking (e.g. Share This),and create all content with search results in mind. Search remainsembarrassingly underutilized or most brands. While conventional searchengine optimization experts abound, search intent modeling a process

    advanced by our SEO experts Global Strategies International turnssearch into a powerul social tool. Search intent modeling allows us tolisten to what consumers are talking about in relation to our brands whilepaying attention to how they are searching. Using the language that ourcustomers are using is the key to creating highly relevant owned mediathat rises to the top in all types o search.

    The new earned media is word o mouth. When we engage a new set oinuencers in a way that causes them to pass something along, commenton or participate in some way, we have earned word o mouth thehighest value currency in the marketing world. When we pay attention tosocial media participants and understand what they value, we may gainmore than their attention; we may obtain their advocacy. There are billionso brand mentions every day via word o mouth, but thats not the sameas social attention. Oten, people are willing to say relevant, honest thingsabout your brand i you just ask them nicely. To succeed in earned media,brands need to know how to earn that attention.

    Social Inuencer Relationship Management (Social IRM) is the processo managing social relationships well and encouraging people to be vocalabout a product, service, brand or topic. Unlike Customer RelationshipManagement (CRM), Social IRM does not try to measure the value ospecic social behaviors. Yes, its nice to know how many emails it takes orsomeone to click through, but that is not the goal o Social IRM. SocialIRM is personal, high-touch customer interaction that presumes youvalue advocacy as much as you do customer revenue. In the near uture,Social IRM will connect inuencer and customer databases to each other,managing them or maximum advocacy and revenue.

    To add scale to our eorts we need to use paid advertising in a new way.We can grow online word o mouth via the careul use o advertising.

    A hallmark o large word-o-mouth activity is dispersion or the degreeto which a lot o p eople are talking rather than a vocal core group.

    Advertising used well can drive more people into the conversation and getthem talking. Imagine advertising units that eature blog posts, Tweetsor other social content getting delivered through ecient ad channels.Now the advertising progresses beyond traditional display as it helpscreate a brand network or a relevant conversation. With new uses or paidadvertising, we have added scale and not let our social media programplod along unsupported.

    Putting social at the center o a program drove millions o people to beheard at the 2009 United Nations Climate Change Conerence. OgilvysHopenhagen campaign, launched just three months beore the start o theconerence, aimed to galvanize a mass outpouring o public sentiment,a global and peaceul uprising demanding a serious eort to conrontclimate change. By aligning earned, owned and paid media, we delivereda strategic plan or social media ar bigger than any one tactic. We hosteda worldwide social media movement that became a beacon or the climatechange conversation. We built a social brand that mattered, earningthe ocused attention o six million people, and we did it in 90 days.Hopenhagen showed the world the power o social media.

    Brand Communities:Every brand can support some type o community.Every town has its own character as does every internet community.Victorias Secret Pink, or example, has over two million ans on Facebookwho may nd themselves interacting with each other and not just the brand.

    Every brand should know what its communities are or where the potentialor community lies. I Campbells Soup can oster community andthey can then many brands have the potential. You may nd, asMakers Mark did, that loyalists will take pride in their community andmembership in ambassador programs. As you engage inuencers toshare word o mouth, oster a place or vocal loyalists as well as a deeperrelationship among them and your brand. Brand communities serve as anew orm o CRM one that is built and managed across the social web.

    Creating yoursocial media

    strategy

  • 8/6/2019 Ogilvy Red Paper

    22/29

    40

    The Red Papers:

    41

    Socialize the Enterprise

    Measurement: Going all in with strategic social media does not precludelearning through experimentation and iteration. Anyone who portrayssocial media as a highly predictable universe with power laws like theaverage click-through rate on a display ad is just delusional. Brands willsucceed by trying lots o things. You need a reliable measurement modelto know i you are winning or losing on any given day.

    Every brand can decide which key perormance indicators they will ollowtoday while we all wait or Facebook to get around to oating a value ora an. Our approach, Conversation Impact, is a simple model or brandmarketers to report reach, brand preerence and action based upon readily

    trackable metrics. There are other tools emerging, but no matter which youchoose, be sure it measures conversion metrics like click-throughs, emailsignups and an acquisition as well as the volume o your positive wordo mouth online. Whether you use Conversation Impact or some othermodel, use it consistently. Doing so allows your center o excellence to trydierent tactics knowing they will be able to gauge what is eective.

    Conversation Impact: Measure Engagement > Action

    Awareness

    Unique monthly visits owned and earned media

    Sentiment index o onlineconversation

    (% positive % negative),

    # / pts change

    Sales

    Time on site,# / % change

    Share o positivevoice in category

    Registration

    Volume o onlineconversation

    Relative net promoterscore (NPS) in category

    WOM networkaction

    Blog/Twitter-basedaction

    Messagepull-through

    Preerence Action

    Creating yoursocial media

    strategy

  • 8/6/2019 Ogilvy Red Paper

    23/29

    42

    The Red Papers:

    43

    Socialize the Enterprise

    Simon Clit, ormer CMO o Unilever, said o that companys progressin social media, We may be ahead o our competitors, but were mostdenitely behind consumers. While many marketers are just trying tocatch up to consumers, we must take action to meet our customers wherethey have already told us they want to go. Social media is not a ad. It isan enduring change, and it represents a new discipline or marketers tolearn. Taking it seriously demands some crucial decisions. Enterprisesmust choose how to train best practices, organize themselves to adaptquickly and measure perormance and ROI. Some marketers will continueto experiment tactically with no means or understanding real results, butthe experimentation and evangelist-led tactics that got us this ar will not

    be enough to reap the true benets o a social world. Marketers who applya strategic approach across the enterprise will not only create the mosteective social media-based programs possible today, they will be settingup their organization to meet consumers where they want to go next.

    The ultimate promise o the social brand comes when a person openlyspeculates about a product or a service to buy and their peers lean orwardto tell them enthusiastically about their experience. As brands change theirapproach to connecting with their customers, they will nd that all o theircommunications and marketing eorts will be more eective. Instead ooutspending their rivals and buying customers or their products, brandswill earn peoples attention, their advocacy and, ultimately, their business.

    Social media strategy now

    We may be ahead o our competitors, but were mostdenitely behind consumers.

  • 8/6/2019 Ogilvy Red Paper

    24/29

    44

    The Red Papers:

    45

    Socialize the Enterprise

    Social media represents a undamental consumer behavioral shitthat is here to stay

    Success comes rom creating an enterprise-level social media strategy

    Brands will enjoy direct and open relationships with customers, astermarketplace response and increased marketing, customer service andproduct development eciency

    Social media is a new orm o word o mouth which is growingremarkably quickly throughout the world

    Enterprises must embrace internal change while setting up a newengagement strategy

    Reorganizing for social media Collaborate across silos Think beyond the campaign Rethink budgeting with new social media metrics Creating a social media engagement strategy

    Dene the social brand Build an enterprise change playbook

    Training Organization Apply the social media engagement ramework Active listening Owned, earned and paid media Brand communities

    Measurement

    Set up the organization to progress in step with consumers, meetingthem where they want to go next rather than playing catch-up

    Key takeaways

  • 8/6/2019 Ogilvy Red Paper

    25/29

    47

    Socialize the Enterprise

    The Red Papers

    beingpeterkim.com

    blog.ogilvypr.com/conversation-impact-social-media-measurement-model-by-ogilvy-360-digital-inluence/

    community.campbellkitchen.com/category/Forums/400000001

    globalstrategies.com

    Global Web Index, Trendstream Limited 2009

    makersmark.com

    Millward Brown ACSR, May 2009

    netpromoter.com

    pewinternet.org/Reports/2009/17-Twitter-and-Status-Updating-Fall-2009.aspx?r=1

    sharethis.com

    Simon Clit speaking at Ad Ages Digital Conerence April 2009

    The Word-o-Mouth Marketing Forecast 2009-2013, WOMMA 2009

    Women and Social Media Study, BlogHer, iVillage and CompassPartners, 2009

    womma.org

    Reerences

  • 8/6/2019 Ogilvy Red Paper

    26/29

    48

    The Red Papers:

    49

    Socialize the Enterprise

    John Bell

    Johns job is to take the latest in digital innovations and apply it to ourbusiness and our clients business. Call it applied innovation.

    He heads up the global 360 Digital Inuence team Ogilvys globaldigital practice designed to manage brands in an era when anyone can bean inuencer and we are all inuenced in new ways. It connects our brand-building PR expertise with a word-o-mouth marketing discipline. Thisteam o Digital Inuence strategists integrates the power o social media social networks, blogs and Web 2.0 applications with digital marketing

    to produce measureable results. John has developed strategy and executedaward-winning programs or clients including Ford. Lenovo, Unilever, Inteland American Express.

    The rst wave o innovation was Interactive Television (iTV) in 1990. Johnheaded up the Visual Design Studio at Downtown Digital a joint venturebetween Viacom and AT&T to create the most uturistic vision o interactivetelevision anyone could imagine. He created programming or kids andgamers, and ully interactive applications or Paramount Studios andEntertainment Tonight. This model o set-top-box-delivered interactivityremains a vision or all iTV innovation.

    John created the rst interactive advertisement or American Express duringthat iTV trial. He went on to orm Media Circus Interactive Advertisingin New York during the 1990s, designing award-winning CD-ROMsincluding the rst interactive advertisement on Launch, then a CD-ROMzine, or Sony. John also created the rst I-Spy CD-ROM or Scholastic,extending the brand into the electronic space and pushing the limits o

    what an interactive experience could be. At the same time, the Internetwas exploding. He designed and built complicated transaction sites orGateway Computers and wild experiments like MTVs Web service thatconnected stringers all across the country reporting on the music scenein their community. (Sound a bit like blogging? It should, and the yearwas 1995.) Discovery Channel was one o the rst media properties toreally experiment with the web. John was brought in to transorm a singleweb site into a network o 14 web properties known as Discovery.com.

    About the author

  • 8/6/2019 Ogilvy Red Paper

    27/29

    50

    The Red Papers:

    51

    Socialize the Enterprise

    They had live, online expeditions rom the eld. Reporters posted real-timestories, audio and video rom Australia where they were in search o giantspiders, and rom the bottom o the ocean where they explored the Titanicwreckage or the rst time. John designed and built online experiencesor TLC, Animal Planet, Discovery Kids, Discovery Health and TravelChannel, not to mention a host o digital TV network and global sites.

    His experience creating an online adventure service or kids with DiscoveryKids inspired him to join a startup called HiFusion committed to build-ing a unique school-to-home internet service or the K- community. Butit was a pivotal year or internet-based business. HiFusion sold

    the company to Sylvan Ventures and moved on to the next adventure.For John, that next adventure was Ogilvy.

    John graduated rom the University o Pennsylvania with a Bachelor oArts in European history and spent a lot o time at the Annenberg Schoolo Communications.

    John serves on the board as past president o the Word o Mouth MarketingAssociation (WOMMA) and is a proessor at Johns Hopkins Universitywhere he teaches graduate courses in Digital Inuence.

    His blog is The Digital Infuence Mapping Project: johnbell.typepad.com

    His Twitter name isjbell.

    Aboutthe

    author

  • 8/6/2019 Ogilvy Red Paper

    28/29

    WriterJohn Bell

    EditorJeremy Katz

    Creative directorGabe Usadel

    Art directorAlex Fuller

    IllustratorAllie Armstrong

    TypeaceJ Baskerville

    Design485 Brand D esign, Ogilvy Chicago

    February 2010Issue 2

    The Red Papers are published by

    Ogilvy & Mather

    No article may be reproduced ortransmitted in any orm without thewritten permission o the publisher.

    Copyright 2010Ogilvy & Mather

    Edition :5,350

    Colophon

    52

    The Red Papers

  • 8/6/2019 Ogilvy Red Paper

    29/29