social media for premium brands

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Date 8/6/2010 Social Media for premium brands

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We know social media is increasingly important but .....Who’s using it, what exactly is it and what’s its use for brands?What are the most commonly used forms of social media?Best and worst social media practices.Premium brands and social media.

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Page 1: Social Media For Premium Brands

Date 8/6/2010

Social Media for premium brands

Page 2: Social Media For Premium Brands

Social media and premium brands

• We know social media is increasingly important but .....

• Who’s using it, what exactly is it and what’s its use for brands?

• What are the most commonly used forms of social media?

• Best and worst social media practices

• Premium brands and social media

• Some insight into premium spirit brands in social media

Page 3: Social Media For Premium Brands

The Online Audience – UK Households

Millions

% o

f U

K H

ouse

hold

s

6.5 7.8 10.3 12.5 12.5 14.0 14.2

26%31%

41%

50% 50%56% 57% 60%

2000 2001 2002 2003 2004 2005 2006 2007

15.4

Source: Continental Research Autumn Internet Report 2007

65%70%

2008 2009

18.316

Page 4: Social Media For Premium Brands

The Online Audience – UK Households

• 18.3 million households in the UK (70 per cent) had Internet access in 2009. (National Statistics Omnibus Survey)

• In 2009, 37.4 million adults (76 per cent of the UK adult population) accessed the Internet(National Statistics Omnibus Survey)

• 44% Internet users are going online more that once a day, up from 37% the previous year

• Internet users are spending more time online than they do listening to the radio and reading newspapers and magazines

Page 5: Social Media For Premium Brands

The Online Audience – Social Media users• 25% of all British adults use Networking sites (Facebook, Bebo, etc)

• 21% of all British adults watch and share video clips online

(YouTube, etc)

• 20% of all British adults share photos online (Flickr, etc)

• 18% of all British adults use instant message services

• 8% of all British adults read blogs

• 4% of all British adults write blogs

Core profile:Aged 15 to 34yrs old

Even split male/female* Source: TGI

*some specific activities tend to skew towards male: e.g. uploading/watching video

Page 6: Social Media For Premium Brands

Social Media, what is it?

• Social Media is the product of Web 2.0 (2nd generation websites)

• Social Media is content produced by users that utilise publishing techniques that initiate ongoing dialogue with the online community.

• Examples of social media:• Networking sites

(Facebook, Myspace, Bebo, Linkedin)• Blogs (Digg, Mashable)• Forums• Microblogs (Twitter)• File sharing sites (YouTube, Flickr)

• Social media allows users to initiate a conversation and, contribute information, share opinions, ideas, experiences, anecdotes and criticisms.

• Social media also allows businesses to accelerate the exposure of a brand, competition, campaign or event, by creating channels of communication that enable users to interact and contribute content and as a result increase exposure.

Page 7: Social Media For Premium Brands

The Social Media landscape

Social Media

Blogs & publications

File Sharing

Personalised

Forums

Social Networks

Microblogs

Virtual Worlds

Social Games

Page 8: Social Media For Premium Brands

Social Media hierarchy

Level of engagement

Spectator(passive reader

of content)

Contributor(participate to

online content: e.g. comment

on blogs)

Creator(creates content:

e.g. Blog)

Leve

l of c

reat

ivity

Page 9: Social Media For Premium Brands

Social Media & your brand • Social Media is rapidly moving to the centre of

brand owner communications thinking and shaping community based approaches to new product development e.g. P&G’s tremor panel

• The CEO of Coca Cola , Muhtar Kent, recently told an investor meeting that ....“we were too internally focused and not focused enough on the changes taking place with our consumers”...the corollary being a greater commitment to Social Media

• Social Media finally facilitates the oft-talked about ideal of putting the

consumer at the heart of the brand; Social Media now facilitates this but clearly requires a move away from ‘push messaging’ into more inclusive content shared openly...

• ...and by integrating brand & social media thinking you can start to unlock one of the channels of advocacy....

Page 10: Social Media For Premium Brands

Where to start with Social Media; the brand is the message...

This model is the exclusive property of Polestar Communications & isnot to be used without their permission

Page 11: Social Media For Premium Brands

Examples of the most commonly used Social Media channels

Page 12: Social Media For Premium Brands

Social Media examples – Networking sites• Networking sites: Networking sites focus on building online

communities of people who share interests/activities, or who are interested in exploring the interests and activities of others.

• Networking sites provide a variety of ways for users to interact, such as e-mail and instant messaging services.

• The main types of Networking sites are those which contain professional & personal category divisions (London, IBM Network), means to connect with friends and a recommendation system linked to trust.

Page 13: Social Media For Premium Brands

Social Media examples – Networking sites• Facebook - www.facebook.com

• Facebook is the largest Social Networking site in the world

• Members have their own pages which can be tailored via applications from the site mechanic

• Users can connect with each other via the invite function or friend referral system

• Number of UK Facebook users – 19,000,000

• 28% of the UK population are on Facebook

• UK user base growth over 12 months – 65%

Page 14: Social Media For Premium Brands

Social Media examples - Blogs• Blogs: A website maintained by an individual or group with regular

entries of commentary, descriptions of events, and content including imagery or video.

• Blogs can be used internally to enhance the communication and culture in a corporation or externally for marketing, branding or public relations purposes.

• The success of a blog depends on how often it is commented on and read. Users can choose to follow authors by subscribing to their blogs. This is done via an RSS subscription feed, where users are notified whenever a new article is published.

Page 15: Social Media For Premium Brands

Social Media examples - Blogs

• Mashable – www.mashable.com

• Mashable is one of the world's largest and most trusted social media blog sites

• Content focused on social media networks, technology updates and digital news

• Users can comment on content and contribute their own articles

• 1 ,734,000 Twitter followers

• 321, 000 RSS subscribers

Page 16: Social Media For Premium Brands

Social Media examples - Blogs• Digg (www.digg.com) has

excelled in creating an environment where the community contributes and as a result, drives the content. Users contribute constantly to the site by submitting news stories, articles and blog entries.

• The Digg community votes on the articles submitted, with the most popular stories rising to the top.

• Unique visitors per day - 13,383

• Hits per month – 2,527, 056

Page 17: Social Media For Premium Brands

Social Media examples - Forums• Forums: Online discussion tool that allows users to create or

comment on subject matter that is posted on an online bulletin board.

• Forums are an effective way of generating ongoing conversation however content must be kept consistent and fresh for the forum to maintain its users dialogue.

• Forums are maintained and controlled by moderators, who have the ability to delete posts and remove users if content produced is deemed to be unsuitable. This can be a deterrent for some businesses, as a dedicated resource is needed to moderate the forum.

Page 18: Social Media For Premium Brands

Social Media examples - Forums• inthemix -

www.inthemix.com.au/forums

• Content: Discussions based around dance music culture, music, events, technology and lifestyle

• One of the worlds most popular music forums

• Threads – 252,000

• Posts – 6,065,056

• Members – 100,000 +

• Moderators – 94

Page 19: Social Media For Premium Brands

Social Media examples – Microblog

• Microblog: A form of multimedia blogging that allows users to send brief text updates or micromedia such as photos or audio clips to a website

• A microblog differs from a traditional blog in that it is typically smaller in actual size and aggregate file size. A single entry could consist of a single sentence or fragment or an image or a brief, ten second video.

• Users microblog about topics that can range from the simple, such as “just had a haircut" to the more relevant topical subjects and business updates

Page 20: Social Media For Premium Brands

Social Media examples – Microblog• Twitter stats

• Registered Tweeters: 5,000,000

• Average Tweets per day: 20,000

• Popular Tweeters: Stephen Fry, Perez Hilton, Jamie Oliver

• Users have their own accounts and can choose to follow or be followed by other members, and kept aware of their updates.

• The more followers you have, the more information you are transferring, and as a result creating more exposure.

• Businesses use Twitter as channel for posting news updates and communicating with users.

Page 21: Social Media For Premium Brands

Social Media examples – File sharing

• File sharing: A website that allows users to upload, view, share and comment on files.

• Files can include imagery, graphics, video and music.

• Users utilise these sites to share files with friends and other users, while companies use file sharing sites to provide collateral that is associated with a particular campaign or product.

• Some file sharing sites are seen to be unlawful as they allow users to download and share pirated content.

Page 22: Social Media For Premium Brands

Social Media examples – File sharing

• YouTube – www.youtube.com/PolestarComms

• YouTube is a site that allows users to play, upload, share, vote and comment on AV material

• YouTube can provide businesses with applications that allow them to create their own channels with videos that are associated with their campaigns or products.

Page 23: Social Media For Premium Brands

Social Media examples – File sharing• Total number of YouTube videos -

over 120,000,000

• Number of videos uploaded per day - about 200,000

• Time required to see all the videos - over 600 years

• Number of videos watched daily - over 100,000,000

• Amount of content uploaded every minute - 13 hours

• Number of accounts on YouTube - over 300,000,000

Page 24: Social Media For Premium Brands

Mobile Social Media• Through the introduction of 3G

mobiles, the UK has seen consumers embrace the Social Media functionality of the new technology; especially that of the iPhone.

• 54.8% of all iPhone users access social networking sites. (comscore)

• The good news for your brand is that mobile users of social media sites are likely to consume two or three times as much digital content as their un-social 3G mobile counterparts.(ABI report forecast, 2008)

Page 25: Social Media For Premium Brands

Mobile Social Media – iPhone apps• The iPhone has also given brands

the ability to deliver more value to consumers through the development of apps (applications)

• The aim of apps is to provide the consumer with a utility that is entertaining, simple, and buzz-worthy.

• Since July 2008, 500 million iPhone apps have been downloaded, with an average of 1 million downloads per day.(comscore)

• So, how does your brand ensure that the target audience is discovering and sharing these apps?

Page 26: Social Media For Premium Brands

Social Media best & worst practices

Page 27: Social Media For Premium Brands

Social Media best practices1. Evaluate the way your brand engages with the audience

• The introduction of Social Media has given consumers more opportunity to interact with brands - so it’s essential that you deliver content that engages your target audience.

• This can be achieved through the creation of brand stories.

• Brand stories provide an emotional proposition that allow brands to connect with their audience, encouraging contributions and positive feedback.

• The use advocates in brand stories can also enhance your reach and offer users a person they can relate to.

• Brand stories should invite your audience to contribute and share content – ask them how they ‘feel’ about the proposition.

Page 28: Social Media For Premium Brands

Social Media best practices• Kleenex Let it out campaign

• Kleenex created a story called Let It Out, which focused on creating an emotional connection between consumers and the brand.

• Let It Out had a proposition focused on inviting users to break free from inhibitions and emotions , so Kleenex developed a social media mechanic that invited users to contribute content that was associated with the key messaging.

• Visitors could leave photos or videos for others to view while voting for their favourite entries.

• More than 50 percent of users thought the space gave a positive impression of the brand and 38 percent thought it contained interesting and relevant content.

• Users added that the space was easy to use and a good way of advertising Kleenex.

Page 29: Social Media For Premium Brands

Social Media best practices• Kleenex Let it out campaign:

http://www.kleenex.co.uk/Let-It-Out/Default.aspx

Page 30: Social Media For Premium Brands

Social Media best practices2. Use of social media to engage requires two things.

Trust. And trust.

• Understand and analyse your target audience before communicating.

• Assess your openness to a one-to-one dialogue with the target audience and be honest.

• Accept losing some control - some users may not agree with what you have to say and will certainly have an opinion on it.

• Assess your levels of acceptance to criticism – opinion and debate is good, but you shouldn’t produce content that alienates, or worse, insults your audience.

• Be open to creativity and provide content that is engaging, valuable and referable.

Page 31: Social Media For Premium Brands

Social Media best practices

• Jan Moir’s Daily Mail opinion piece on the death of Stephen Gately is an example of a brand not properly understanding its audience.

• The article caused offence to the majority of readers, and the backlash resulted in the retraction of advertising space, an apology from the editor, and the loss of brand equity for The Daily Mail: http://www.guardian.co.uk/media/2009/oct/23/jan-moir-stephen-gately-apology

Page 32: Social Media For Premium Brands

Social Media best practices3. Allow your consumers to actively take part and contribute.

• Having people contribute is more likely to improve your engagement and reputation.

• Ensure that published contributions create a dialogue, not a monologue – invite users to comment on topics and content.

• Don’t Initiate a dialogue/conversation and not follow up – always maintain communication.

• The use of advocates and expert contributions can vastly improve the reputation of the brand.

Page 33: Social Media For Premium Brands

Social Media best practices• The Royal Opera House invited

users to contribute to the plot of an opera on its #youropera Twitter page through Royal Opera House blog.

• The Twitter Opera" will join 140-character Twitter messages into a libretto set to familiar opera tunes and new music.

• Through contributions, The Royal Opera House not only offered more value to it’s loyal followers, but also created a channel for those who are unfamiliar with the opera to engage with the brand.

Page 34: Social Media For Premium Brands

Social Media best practices

4. Assign a resource to maintain and contribute to a regular stream of communication to your users – people won’t talk about it if there is nothing to talk about

• Define a topic (strategy) that will stimulate dialogue

• Ensure that your communication isn’t too ‘marketing and pushy’

5. Ensure that relevant success metrics are established prior to the implementation (e.g. volume of followers, volume of streaming, links, etc.)

6. Always integrate all of the Social Media platforms into your Social Media strategy e.g. Mobile is vital today, and will increasingly become, the major platform for Social Media

Page 35: Social Media For Premium Brands

Social Media worst practices

• Coke Zero built a blog containing a fake author and fake blog entries dating back to June 2005. Users found out due to the unconvincing content, and that the domain was registered in August 2005. http://www.adrants.com/2006/01/coke-lies-misleads-with-fake-zero.php

1. Never blatantly lie or manipulate the target audience with fake content – you’ll be found out sooner or later, and at the detriment of your brand.

Page 36: Social Media For Premium Brands

Social Media worst practices

• If you have intentions to promote a campaign or product, it’s wise to take time to understand the community you are trying to engage with.

• Social networking, news and file sharing sites all have Terms of Service guidelines, but the community of users will have guidelines for behaviour that can only be understood by observing and participating.

2. Failing to observe Social Media formal and unwritten community rules

• Ignoring these guidelines risks the threat of expulsion by moderators and alienation by the community.

Page 37: Social Media For Premium Brands

Social Media worst practices3. It’s all about convergence. There is seldom a case for

Social Media as your only form of communication

• Social Media is an excellent method for promoting campaigns and products, however it must not be used as the sole communication channel for your brand.

• The majority of Social Media activity concerning a brand usually stems from a media execution displayed outside an online environment - so it’s important to understand that while consumers generate buzz through Social Media sites, most of the time this buzz has been influenced through another channel e.g. Cadbury’s Dairy Milk

• Therefore, in order to get the most engagement with your brand, integrate your Social Media plan with traditional media, and offer your consumers something to talk about.

Page 38: Social Media For Premium Brands

Social Media and luxury brands

Page 39: Social Media For Premium Brands

Firstly, affluent consumers are on-line in increasing numbers

But ....

- Luxury brands hesitant to harness new marketing technique

- Concerns over maintaining exclusivity in social media

Page 40: Social Media For Premium Brands

Gucci believe accessibility in social media will build brand desire and have over 400k fans

Page 41: Social Media For Premium Brands

Estee Lauder have used social media to promote their in-store makeovers

http://www.facebook.com/EsteeLauder

Estee Lauder used social media to makea connection to current, new and couldbe/would be customers by offering freemakeovers and photo shoots atits department-store cosmetics stalls.

The photos from the shoots could thenposted on the customers social mediaprofile.

The Estee Lauder event sought to changeyounger consumers’ perceptions of thebrand by creating an “experience” (theconcept that most luxury brands arebased on)

Page 42: Social Media For Premium Brands

Jimmy Choo have used social media to create excitement

Jimmy Choo – catchachoo

http://www.jimmychoo.com/Choonews/THE-JIMMY-CHOO-TRAINERHUNT/stry/catchachoo

The Jimmy Choo Trainer Hunt in Londoninvites people to “follow” a pair ofdesigner trainers as they “make theirstylish journey around London through

theFourSquare mapping location targetapp.

Checking in at the coolest, hippestPlaces around town – from the SaatchiGallery to Shoreditch House – the trainerswill update you on their whereabouts inReal time. And if they check into a venuenear you, you can catch them to keepthem”.

Page 43: Social Media For Premium Brands

Prada have used e-bay style auctions to create on-line excitement

In-touch with how people live:Held a chic ebay-style auction on their website to auction

off their sample piecesWay of artificially driving up price and collectability of

Prada ‘artefacts’

Page 44: Social Media For Premium Brands

Conversely Mercedes have created a by invitation only club to re-enforce exclusivity

Page 45: Social Media For Premium Brands

And Burberry have deliberately limited social activity to nurture existing customers

http://artofthetrench.com/

Burberrys own social networking site thatcreate an experience targeted at itstrenchcoat customers

Customers can create a profile andupload images of themselves wearingthe Burberry trench, and comment andconnect with other users.

Burberry didn’t neglect its Facebookcommunity, but its is simply givingcustomers another outlet

The brand still uses its Facebook channel(1.1 million fans), however launching this community refines the audience from thelarger social networks and targets themore niche customers who arepassionate about the brand

Page 46: Social Media For Premium Brands

Social media for luxury brands

• Affluent consumers are heavy users of social media

• Brands can use the area to drive awareness, participation and desire amongst a broad consumer base

• Or it can be more limited to nurturing core consumers and creating loyal advocates

Page 47: Social Media For Premium Brands

Insights into a luxury sector’s use of social media

Premium Spirits

Page 48: Social Media For Premium Brands

Insight into premium spirits in social media

• Far from being unaccountable, a huge amount of real time insight can be accessed

• The following charts show examples of insights into what’s happening in social media for The Macallan & Grey Goose - The volume of on-line brand conversations and where they

are happening- The nature of comments made and key subjects of

conversation- Key social sites and influential individuals

• This tracking can be applied both to plan and track the effect of social media programmes

Page 49: Social Media For Premium Brands

The Macallan online word of mouth: UK / 2010

Sentiment towards the brand is largely favourable , with only 8% of comments being negative

Positive: 127 comments = 8%Neutral: 1,328 comments = 79%Negative: 307 comments = 13%

Forums have most mentions for The Macallan with some of the most popular threads shown below...

The Macallan was mentioned 722 times during 2010 on global sites

Jan-10 Feb-10 Mar-10 Apr-10 May-100

100

200

300

400

500

600

700

800News Blogs Forums Twitter

Twitter

News

Blogs

Forums

0 50 100 150 200 250 300 350 4000% 20% 40% 60% 80% 100%

Neg-ativeNeutral

• RE: Good whiskey?• RE: Whiskey lovers I need help.• Re: Rum vs. Whiskey• Re: Any whiskey drinkers here?

Recommendations?• Re: Whiskey Drinkers.• RE: Official Scotch Thread• RE: SMOOTH Whiskey.. • RE: The Whiskey Diaries: Scotland in

Taiwan• RE: Whiskey tips please!!• RE: Scotch Jam: The Macallan 12 year• Re: Taiwanese whiskey beats the Scots

own• Re: Weekend OT: scotch and whisky• RE: Favourite brands of rum vodka

whiskey and tequila• RE: Favourite alcohol?• RE: What are you drinking?

Page 50: Social Media For Premium Brands

The Macallan blog posts and news stories: WW/2010Most of the news stories to mentions The Macallan are about record-breaking auction sales, with competitive mixology events also showing up in the news

Compared to Grey Goose, and vodka in general, a higher proportion of blog posts to mention the Macallan are written by and for connoisseurs of Whiskey.

This is highlighted by the names of the blogs to mention the brand in 2010, some of which are shown in the chart below

Top Blog Sources and Word Cloud from Blog Post Titles

Word Cloud from global News Headlines

whiskyparty.netwhiskyintelligence.com/

luxurylaunches.comrecenteats.blogspot.com

elitechoice.orgcarolineoncrack.com

pursuitist.comthebottlereport.com

drinkhacker.comeiling.blogspot.com

whiskymerchants.blogspot.comintoxicologist.wordpress.com

outofaces.comspiritsnotebook.blogspot.com

thedizzyfizz.wordpress.comcoconutgrovegrapevine.blogspot.com

0 5 10 15 20 25

• First Ever Ultimate Cocktail Challenge Announces Winners and Shakes Up the Spirits World!

• Scotch brand eyes bigger pie of Indian liquor market• Father's Day Gifts At WalkersUS.com Are Distinctive

Delicious And Only A Mouse Click Away• Foreign liquor bullish about prospects in Punjab• Luxury Institute Announces Toast of the Town in

Prestigious Wine and Spirits Category• Macallan 50th anniversary whiskey sells for record

£11,750• Carbon dating catching whisky cheats

Sample of news headlines

Page 51: Social Media For Premium Brands

Grey Goose vodka online word of mouth: UK / 2010

Sentiment towards the brand is largely favourable , with only 10% of comments being negative

Positive: 128 comments = 24%Neutral: 356 comments = 66%Negative: 57 comments = 10%

Twitter has more mentions than any other platform and some typical tweets are shown below...

Grey Goose vodka has been mentioned 541 times during 2010

Jan-10 Feb-10 Mar-10 Apr-10 May-100

100

200

300

400

500

600News Blogs Forums Twitter

Forums

Blogs

News

Twitter

0 50 100 150 200 250 3000% 20% 40% 60% 80% 100%

Neg-ativeNeutral

Page 52: Social Media For Premium Brands

DJKey

Fuda_Guy

kerrylouisexxx

BeautyAndDirt

jo_elvin

rukcooray

Suraj_Sharma

bennicky

MTVMusicUK

londoneating

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Grey Goose top Twitterers: UK / 2010

http://twitter.com/djkeyFollowers: 15,057Authority: 8 /10Location: Blackpool, United KingdomWebsite: www.DJKey.com

Bio: DJ Key - DJ at the Legendary Tower Lounge and Brannigans Blackpool! Music Submissions? Please @ me.

http://twitter.com/kerrylouisexxx Followers: 16,192Authority: 9 /10Location: LA & UKWebsite:http://www.pleasekerrylouise.com

Bio: The only OFFICIAL Twitter of Pornstar Kerry Louise. Best New Starlet 2010 SHAFTA AWARD!

http://twitter.com/fuda_guyFollowers: 2,052Authority: 7 /10Location: East LondonWebsite: http://www.fudaguy.com

Bio: Rapper/ Songwriter. Grime Artist and member of the infamous Ruff Sqwad!

The chart to the right shows the top 10 UK Twitter users to mention Grey Goose, ranked by the number of followers they have. The top 3 include a ‘legendary’ DJ, an ‘infamous’ rapper and an award winning adult film star. The word cloud within the chart shows the words most often associated with Grey Goose within tweets (with vodka removed)DJ Key

Page 53: Social Media For Premium Brands

Grey Goose blog posts and news stories: UK / 2010Most of the news stories and blog posts to mention Grey Goose vodka are related to celebrities and their drinking habits:

• The Grey Goose RAAD pre-Oscars party accounted for the largest number of blog posts

• The Grey Goose cocktails served at the Asprey pre-BAFTA party accounted for largest number of news stories

• The Grey Goose dressing-room-vodka requested by rappers as part of their riders was the most-discussed forum discussions to make mention of the brand

Word Cloud from Blog Post Titles

Word Cloud from UK News Headlines

• Bacardi digital marketer leaves for TBWA Paris Orange British Academy Film Awards 2010

• Rihanna Treats Tipsy Entourage• Asprey / Orange British Academy Film Awards 2010• Grace Bay Resorts Sets New Fully-Inclusive Standard in Turks and

Caicos • DeVito/Verdi Captures 10 Nominations in National Retail Federation's

Annual Advertising Competition• Hot J.Lo warms up for Oscars

Sample of news headlines and blog posts

Page 54: Social Media For Premium Brands

Growing brands through social media

• We can precisely plan social media strategies for each brand- Key social spaces- Most vociferous and influential sources- Understanding key subjects of chatter

• We can track and develop activity- Impact of activity, relationship of W.o.M with sales- Fuelling conversation amongst key influencers- Crowdsourcing: using to identify and use an advocates panel- Refining propositions and activities

Page 55: Social Media For Premium Brands

Contact details...

• Nick Brauer: [email protected]

• Ollie Joyce: [email protected]