Despite attracting 1 billion users and thousands of brands and retailers, Facebook has never turned into the online shopping hub some expected. But in its push to ramp up revenue growth, the company has rolled out initiatives to bolster e-commerce and retail marketing efforts as the holiday season gets underway. The most prominent step was Facebook’s launch of a service in September that allows users to buy and send a range of physical gifts to each other directly from the site. Last week, Facebook Gifts was expanded to include hundreds more brands and retailers, including babyGap, Fab, Brookstone, Dean & Deluca, L'Occitane, Lindt and ProFlowers. Facebook last Friday also introduced a new tool that enables online retailers to track purchases by people who have viewed their ads on the social network. The conversion-tracking feature is intended to help convince marketers that advertising on Facebook leads to actual sales. The company is encouraging companies to embrace other marketing and ad options including apps, Facebook Offers and Sponsored Stories to promote special holiday deals and programs. “Our sheer reach with 1 billion people on the platform gives us the opportunity to really broadcast your message to people who may not even be thinking of you,” said Nicolas Franchet, head of e-commerce on Facebook’s global vertical marketing team, hired in April from eBay. One way to do that is through Facebook Offers, which the company launched earlier this year to enable marketers to create promotions that appear in users’ news feeds. “We like [Offers] better than other couponing options because it doesn’t make you leave Facebook as a user,” he said. Among other examples of holiday-related deals Facebook is highlighting: -FedEx created a “Ship to Friends” app, which allows a user to ship a package directly from the company's Facebook page and notify the recipient in their Timeline. -PetSmart asked its nearly 1.5 million fans to vote on Facebook for the top 10 holiday gifts for their pets. Its brand page also provides a gift guide for pet owners. -Samsung’s “America's Smartest Shoppers” app offers a quiz to test "Shopper IQ", shares Black Friday Deals with you and automatically enters you to win daily grand prize product giveaways. On Sunday, Samsung will announce their Black Friday deals to fans on their page. The ability to send branded holiday cards through the social network is a bigger trend this year as well, according to Facebook. The Gap, for instance, launched a promotion this month that allows people to send Facebook and Instagram photos on printed postcards via an app called Postagram. According to Shop.org’s eHoliday survey released in October, more than half (57.5%) of retailers interviewed said they planned to increase their use of Facebook over last year -- the biggest change cited in terms of marketing or retail tactics for the holiday season. Shop.org projects overall holiday e-commerce sales will increase 12% this year to as much as $96 billion, while total seasonal sales will rise 4.1% to $586.1 billion.
Google will soon begin testing the integration of brands like Jamba Juice into a virtual reality mobile game launched in beta. The pilot will test whether the game can lead traffic into physical stores, as well as online. Niantic Project, the back story of the game, integrates with the physical world to run in real-time. Based on geolocation and mapping technology, the free downloadable Android game, Ingress, allows people to participate in the fictional project. Google's Project Glass, eyeglasses that founder Sergey Brin demonstrated at the I/O conference, will likely become an accessory to the game, though there has been no discussions between the two Google groups. Aside from Jamba Juice, Archit Bhargava -- product marketing manager at Niantic Labs, an app development division at Google -- said several brands, such as PopChips, Zipcar, Hint, and Chrome Bags Store have stepped up to begin testing the platform in the near future. Google will integrate a brand's products or physical location into the game. Bhargava describes one option as using QR codes to provide special game codes to players. Similar to the social site Google+, the experimental app launched in beta allows players to invite others to join in. As fiction, the game describes the app as a leaked piece of technology allowing people to use a smartphone camera to view exotic matter and portals around them in the physical world. In reality, it's a free downloadable app from Google Play for Android-running smartphones that will become the marketing platform for brands. Ingress identifies a person's location through GPS and physical structures with Google Map technology. The apps create scatter maps with shiny, glowing objects representing portals that represent real-life physical structures. Users within 40 meters of the real physical structures can interact with the image on the phone. The narrator, P. A. Chapeau, describes the journey through a series of notes and clues pinned to a pegboard, as well as shareable content on Google+, Facebook and Twitter. Ingress is not the Niantic Labs's first game. Earlier this month, the team introduced Field Trip, an Android-based app offering information on nearby locations and deals, which explains the marketing offering through Ingress. Field Trip also relies on GPS and map technology to identify the phone's location and surrounding points of interest. It finds the information without searching for it. Expanding the categories would provide marketers an easy method of serving coupons or deals in many more categories as consumers passed by stores. An opt-in process for users would reduce privacy concerns.
Moving one step closer to taking on Netflix, video service Vdio just launched in private beta in the United States and the United Kingdom. The secretive start-up is the latest endeavor from Janus Friis -- co-creator of KaZaA, Skype, Joost and Rdio. Aside from its well-known founder, little is known about the new movie streaming service. “We’re in private testing,” said a tight-lipped company spokesman. “More to come soon.” Along with the slogan “A better way to watch TV,” Vdio’s current splash page invites users to “rent or buy movies and TV shows worth tuning in to.” The locked page also highlights a range of movies, from "Ted" to "The Graduate," along with popular TV shows, including "Mad Men" and "The Tudors." Whether the start-up has secured the rights to carry any of this content is unknown. To date, Vdio has reportedly raised $5.6 million, and boasts an all-star management team led by Ian Aaron, formerly president of the TV Guide Television Group. Also well known is the failure of Friis, along with longtime partner Niklas Zennstrom, to get any traction with their last video venture, Joost. Seriously over-hyped, Joost’s downfall was largely attributed to a lack of content partners and quality content. Still -- especially if the content featured on Vdio’s flash page is any indication -- Friis seems to have developed a better appreciation for media partnerships. Having just officially sold Skype to Microsoft, Friis is said to be itching for another opportunity to tackle online video. Netflix’s recent missteps have opened a clear window of opportunity for existing and potential rivals. In fact, Netflix’s woes reportedly contributed to Hulu’s owners’ decision not to sell the company.
Parental concern about online behavioral tracking of teens seems to have surpassed other Web-related privacy and security concerns, including worries about how teens manage their online reputations and whether they are exchanging messages with strangers, according to a new report by the Pew Internet Project and the Berkman Center for Internet & Society at Harvard University. More than eight in 10 parents -- 81% -- say they're concerned about how much information advertisers can learn about the online activity of minors between the ages of 12 and 17, according to the report. By comparison, 72% of parents say they're concerned about their children’s interactions with people they don't know, 69% express concern about how teens manage their online reputations, and 68% say they're worried that their children's online activity will affect their job or educational prospects. The study is based on a survey of around 800 parents of Web users ages 12-17. The poll yielded several notable findings, including that 44% of parents say they have read the privacy policies of the sites their children use. Nearly that same proportion -- 42% -- say they have searched for their children's name online in order to figure out what information already exists about them in cyberspace. The report comes as the Federal Trade Commission is readying new regulations about children's online privacy. The Children's Online Privacy Protection Act broadly bans Web site operators from knowingly collecting personal information from children under 13 without parental consent. The FTC recently proposed new COPPA regulations that would prohibit companies from knowingly using behavioral targeting techniques on children younger than 13. Privacy advocate Jeff Chester says the report sends a message that the FTC should proceed with its proposal. "This poll suggests that there will be serious political and consumer consequences for those that tread on the privacy of youth," says Chester, executive director of the Center for Digital Democracy. Ad companies say that online behavioral targeting doesn't pose a privacy risk because any information collected via tracking isn't "personally identifiable" -- meaning that it doesn't include Web users' names or precise addresses.
For the second straight year, Houston was ranked as the nation’s most “mobile shopping savvy” city, according to a study by the Interactive Advertising Bureau. Runner-up was Seattle-Tacoma, moving up from No. 10 in 2011, with San Francisco, Los Angeles and New York rounding out the top five. Breaking into the top 10 this year was Boston at No. 9. The results are drawn from a biannual survey of over 20,000 consumers conducted in June about their media behaviors and influences. The trade group’s Mobile Center of Excellence based the rankings on four criteria: ownership of a mobile device (primarily smartphones or tablets), propensity to be influenced by mobile coupons, owning a mobile retail app, and owning a social media app. For each data point, the IAB created an index for each DMA relative to the U.S. national average. It then combined them into a single metric, weighting device ownership most heavily. “Determining which cities are more receptive to mobile can be a critical component in driving successful campaigns that reach audiences in the palms of their hands,” said Pam Goodfellow, consumer insights director, Prosper Mobile Insights, which partnered with the IAB on the study. -More than 80% of smartphone owners have accessed retailer sites or apps on their device -68% of Americans owned a smart mobile device (smartphone, tablet, or eReader) in 2012, up from 57% in 2011 -Nearly half of U.S. consumers say they have a QR code (barcode) reader app on their mobile device -Smartphone shoppers are evenly split by gender and tend to be younger than desktop-based retail shoppers -Over half of smartphone owners, and nearly 30 percent of tablet owners, have used their devices in a store in the past three months
Interpublic Group said today it sold the remaining investment it had in Facebook for $95 million. Last year, it sold half of its investment in the social network for a pre-tax profit of $132 million.While the proceeds of the sale of the second half of the stake indicate the decline in the value of Facebook stock since its public offering earlier this year, IPG did extremely well. Its initial 2006 investment was priced at $2.5 million, plus a commitment to purchase $10 million in ads on the network on behalf of clients.Commenting on the sale, IPG CEO Michael Roth stated: “The value of the investment we made in Facebook in 2006 has increased significantly during the last six years. We decided to sell our remaining shares in Facebook as our investment was no longer strategic in nature.”The company is waging a court battle with Ray Volpe, a former account executive at IPG, over the rights to profits on the company’s Facebook Investment. Volpe sued this summer in New York State Supreme Court, arguing that he is entitled to the entire profit. Volpe contends that Roth agreed to a deal via email that gave Volpe and Howard Draft, now executive chairman of Draftfcb, rights to all profits on the block of Facebook shares that IPG bought in 2006.Volpe said IPG agreed to the deal because he and Draft agreed to personally guarantee that advertisers would buy the required $10 million in Facebook ads. IPG has denied it ever agreed to such a deal and has asked the court to dismiss the case. There has been no ruling so far.Separately, Interpublic announced that its board of directors has authorized an increase in its existing share repurchase program from $300 million to $400 million. As of September 30, 2012, $151 million had been used under the authorization. The share repurchase program has no expiration date. “We view this as another opportunity to enhance shareholder value reflecting the confidence we have in our company,” Roth said of the additional buyback authorization.
Social media is a marketing conundrum similar in some ways to the dot-com bubble of 2000, when there were a multitude of possibilities for investors and advertisers in the marketplace -- but like the Pets.com sock puppet, there also was little bite behind the bark. Can social media move the needle for brands? Or is this new frontier destined to remain an online coupon service offering discounts, deals, sweepstakes and giveaways that essentially buy "likes" from consumers? A recent study by the research firm Chadwick Martin Bailey found that a significant 41% of social media users are persuaded to "like" a brand because of discounts and special offers. The brands that fare best in the social media sphere are entertainment-related, especially movies and TV series -- which account for 48% of social media users, according to a May 2012 study by Performics, a performance marketing company. Products that are not so sexy, like package goods and appliances, were liked by only 10% of respondents in the Performics study. These studies reflect the reality that in social media, historically, brands have rapidly grown their fan base by offering discounts and deals. This path, however, has resulted in companies cultivating followers that do not align with their core customer base -- rather, they are bargain shoppers that are highly inclined to jump to another brand for a better deal. A perfect example of the perils of relying on daily deals rather than on building a loyal fan base is the the social media sock-puppet Groupon, which is dying a slow death thanks to its dependence on attracting one-time discount hunters. So where does that leave the ten-percenters, the bread-and-butter clients who ask us for social media solutions but don't have the inherent brand charisma or dynamics to create a dedicated and motivated fan club? While true followers for these brands are harder to find, they are beginning to be created via rich, contextually relevant content -- not coupons. We are just now starting to see this trend turn as brands more effectively cultivate an "advocate base." It's possible that during this transition brands may see a loss of "fans" while things shake out. To encourage this evolution, brands need to be careful about how they manage deals/discounts/coupons. It's an easy trap to fall into when we as marketers are pushed so hard to prove an ROI associated with our online efforts. Here are five key considerations to keep in mind when planning a social media campaign for clients: 1. Don't continue the habit of an exclusive diet of discounts/coupons -- gradually wean consumers off the drug. 2. Consider how your “fan” base matches up against your customer base. If there are identifiable differences, work to cross-pollinate. Create content to get fans to become committed customers/advocates (via higher-value associations) and get customers/advocates to become fans (to engage socially). 3. Develop a comprehensive content strategy that blends channels. For example, what do you do in response to a “like”? Keep in mind that consumers see a “like” as a request to engage -- with you and other customers -- and they are willing to engage in other channels beyond social. They are not simply saying they approve of your content. 4. Improve social engagement with content that reflects customer ideals. Recent research from advertising research firm PhaseOne Communications indicates that the most socially successful brands deliver consistent messaging that taps into shared traits between them and the consumer. This strategic approach in guiding more effective content is referred to as a “me statement.” This statement conveys an idealized self image that the brand represents and that consumers wants to be associated with. For example, a working mother may grab takeout for her family multiple nights a week, but the idealized image she will associate with online is her love of gourmet dining. This is something she is willing to publicly acknowledge, follow and share -- keys to successful online engagement. 5. Consider how to get more value out of social by using it as a research and/or customer service channel. Getting an ROI on social efforts isn’t limited to converting sales. The good news: trends point to social media as a viable marketing tool with long-term prospects. After all, the sock-puppet notwithstanding, if it wasn't for the dot-com bubble we wouldn't have the digital evolution that has established business success stories like Amazon and Google and also is helping to reshape -- and digitize -- Madison Avenue.
The gradual customization of the TV viewing process is nothing new. Choice has always been a factor of television ever since the earliest days, when we could opt for favorite programs on the limited number of channels available.When channels began to proliferate, and the VCR debuted, the notion of taping and watching later or buying movies to build one’s own library became commonplace to consumers.Fast-forward through the DVD era, which brought the growth of the series box-set market, the advent of the DVR and the growth of VOD. More complexity, but at least viewing was still tethered to the TV screen — however it was done.Today, that isn’t the case. Devices like the iPad, Kindle Fire and smartphones have made it possible to watch video wherever and whenever. How we understand viewing behaviors has to evolve, too.Beyond understanding what proportion of viewing is tied to the broadcast schedule versus some kind of time-shifted or on-demand viewing (which can form the building blocks for some kind of segmentation), we need to understand how different means of viewing relate to each other (DVR vs. Tablet for example). And the behavioral aspects such viewing suggests.After all, from a behavioral standpoint, one of the most significant factors to arise from a landscape in which the options to view at any time (or when it is possible to view), is the resurrection of appointment viewing. Only this time, the appointment isn’t determined by the broadcast schedule but personal preference.Before the DVR took hold and while VOD was still finding its feet, many in the business were coming to accept the demise of appointment viewing. The reasons were many, but key was audience fragmentation caused by the proliferation of channels and lifestyle changes within the family dynamic.Now, though, there is much to suggest that the ability to control when a program is viewed provides the opportunity to watch with one’s partner, children and friends.With different devices and social settings pertaining to time-shifted and on-demand viewing in all forms, we inevitably see different behaviors emerging. Each needs to be understood in isolation and in relation to each other. We could think of them as follows:• Private indulgence – a person’s favorite program (not necessarily watched by others in the household) and viewed intheir own TV time. Which devices predominate here? • Paired viewing – co-viewing with one other as a shared activity. Ranging from simply relaxing after the kids have gone to bed through a stay-at-home date night to viewing with a friend (sports perhaps?), the make up and motivation of the pairing creates a different setting for marketers. • Time with kids – this may be as much about time spent with children as it is about the actual program choice as far as an adult is concerned. • Harvesting - beyond playing catch-up for programs just missed, this is when people choose to watch several episodes of the same series back-to-back from DVR, VOD, Netflix, Online or whatever other source is available to them. This is session viewing, or binge viewing and is a knowing indulgence. • Mobile viewing – using either a tablet or a phone, there are also circumstances when these devices will be used to watch preferred programs. This may be when traveling or otherwise out of the home (commuting), or it could simply be for clips to catch up quickly. There are more scenarios in which time-shifting takes place and each will impact engagement with programming and advertising. Many of those factors will have little to do with the content and more to do with the device chosen, the setting and who people view with.