A recently released report by Marketing Charts titled “State of Inbound Marketing Report” from HubSpot, reveals a growing trend of brands focusing their energy and funding on “inbound” marketing versus “outbound.”  Outbound techniques have long been employed and still constitute the majority of marketing techniques, but that is beginning to change.  Last year’s numbers indicated brands were beginning to rely more on inbound marketing techniques to generate leads; this year the outbound marketing budge­ts contracted further, closing the gap between the two opposing approaches.

What’s the Difference between Inbound and Outbound?

So what exactly constitutes an inbound approach versus an outbound approach?  And what techniques are brands turning to?  Essentially, an outbound approach is that where a marketer pushes his message out to the masses whereas an inbound approach is designed to pull in people who are already looking for your product or service.  HubSpot classified these techniques based on how important they were perceived by the company, and also allowed for multiple responses in order to account for brands that place value in more than one technique.  From their data, we see that popular and time-tested outbound techniques, such as direct mail and telemarketing, contracted 1% and 6% respectively, only generating 10% of leads each.  Trade shows remained flat at 10% importance among respondents, meaning outbound techniques are preferred by less than 1/3 of brands.

Meanwhile, inbound techniques have become increasingly important to brands.  Paid search and AdWords were the only inbound methods that fell in importance, now at 22%.  However, social media, company blogs, and SEO methods have all increased in importance to brands, with social media and SEO methods important to 60% and 59% of companies, respectively.  Company blogs were claimed to be important to 49% of the survey’s respondents.

Follow the Money, Inbound Marketing Budgets on the Rise

But let’s get down to the bottom-line: company budgets.  When asked whether budgets for inbound marketing strategies increased or decreased for the year 2010, 51% of respondents claimed their budget had increased, with an additional 37% claiming it had remained constant.  This means that 88% of American companies have maintained a healthy budget for inbound techniques, such as social media and SEO marketing strategies.  Furthermore, of the companies that claimed to have a lower budget for inbound marketing campaigns, 92% claimed that the economy, not performance, was the reason for the decrease.

Specifically, social media campaigns returned high confidence numbers from brands, with four in 10 companies overall acquiring customers from major social networks.  Businesses are increasingly placing their confidence in inbound marketing strategies, believing social media and SEO to be the two most important channels in gaining leads and bolstering their brand image.

Facebook CEO, Mark Zuckerburg, surprised his almost 500 million man strong user-verse this week by unveiling new features for the social network at the F8 Developer Conference in San Francisco.  Some initial response has been hyperbolic, claiming an end to the Internet as we know it; however, conventional wisdom indicates that major changes to one of the Internet’s most popular Websites will doubtlessly impact our online experience in a dramatic way.  Zuckerburg’s vision is extraordinary and revolutionary; in his keynote, Zuckerburg proposed the Web as a social being, where you, your friends, your brands , and your favorite bands (among other things) are all a part of the experience.  Ultimately, Facebook is attempting to socialize the Web in a much deeper way than any previous vision.

Open Graph to Blur Existing Distinctions between Websites

The main feature of Zuckerburg’s vision includes the “Open Graph.”  The CEO highlighted current issues in connecting Facebook friends to one another through their Yelp or Pandora accounts, leaving many people unconnected precisely when they are sharing informed personal insight.  As a result, Zuckerburg has proposed the Open Graph, blurring the lines of current distinct Websites.

The Open Graph is essentially Facebook’s method for reading tags from other Websites to decipher what information their users are “liking.”  For example, IMDb starting immediately will include “Like” buttons for films, and Facebook will publish your recent favorite film. Likewise, favorite plays on Pandora will be published on your profile. Furthermore, this process will be fluid, allowing for information from a CNN article –  liked on CNN.com and published on Facebook –  to appear when you hover over the News Feed story.  Facebook has paired with major partners – including Microsoft, CNN, and ESPN – ensuring that there will be enough Websites from which users can begin to test these features.

A lot to “Like” about the Changes to Fan Pages

For brands and businesses, it just got a lot easier to gain fans.  Zuckerburg announced that a single line of code will integrate a “Like” option onto Websites, so that one click can ensure an interested customer has connected to the brand via Facebook. Just like the major partners, brands that include this code will make their website, a fan’s News Feed, and their fan page separated by less than three clicks.

There are skeptics who question whether the public desires to be so steeply invested in Facebook, or social networking for that matter, that are unsure of whether these changes to Facebook will indeed succeed.  It is important to keep in mind that Facebook’s 500 million person strong network can certainly find a sizeable group of test subjects.  The future of social networking and the Internet is uncertain; however, it seems there’s consensus to the claim that major changes are in the pipeline.

A new study detailing the likelihood of referrals and purchases from Facebook fans and Twitter followers has revealed, perhaps unsurprisingly so, that fans and followers are a brand’s best friends.  The study explains that 60% of Facebook fans and a whopping 79% of Twitter followers are more likely to recommend a brand or brands after becoming a fan or follower.  Furthermore 51% of Facebook fans and 67% of Twitter followers are more likely to purchase products or services offered by a brand after becoming a fan or follower.

New meaning to “brand loyalty”

Skeptics of the lasting impact or advantage of a brand maintaining its presence on Facebook or Twitter may insert their feet into their mouths now.  The simple act of clicking “become a fan” or “follow” is likely not the sole reason these brand loyalists are recommending or purchasing from a brand.  Still, the regular interaction with and updates from their brand of choice remain influential in their decisions to recommend or purchase.  In some ways, a person’s news feed is the ultimate location to stage a marketing campaign, as updates are mixed between posts from a user’s friends, subliminally asserting that this brand itself is a friend. 

The end of the email era?

If critics still need convincing, they need only look at the frequency with which Facebook users are logging onto the social network.  The raw numbers of daily log-ins were detailed in a previous post, but they, nonetheless, indicate that almost half of Facebook’s user-verse (universe reference, anyone?) logs in each day, most times more than once, ensuring that an update or promotion is not left unnoticed.  Furthermore, a recent article in the Wall Street Journal announced the “End of the Email Era,” positing Facebook messages had replaced emails, citing a study by Prompt Communications.  In the study, 96% of respondents claimed to use Facebook messages as a means of communication, with only 91% of respondents admitting the same for email.

Just like video killed the radio star, Facebook messages have killed the email.   Armed with the knowledge that radio remains a viable means of mass communication, we know that death is not quite as final as the Buggles suggested.  Nonetheless, as medium replaces medium, the broad encompassing tool of email has been edged out in sheer usage by its cousin, the Facebook message.  The question remains over the qualitative differences between these media, as almost certainly deeper conversations and more information can be exchanged via email than Facebook message.  That being said, it is becoming increasingly clear, given the frequency with which the social network is utilized by everyday people and the inherent loyalty of fans and followers, that social networks are and will remain a crucial arena for marketing campaigns.

So we know the postman always knocks twice, and that the USPS will deliver your mail through rain, sleet, or snow, just not on Sundays.  But as snail mail has been replaced by email, email has been increasingly replaced by its cooler cousin: Facebook messages.  As the number of users has exploded, so too have the number of transmissions through Facebook messages.  Which leads to the latest hiccup in the world’s most popular social network.

Last week an undisclosed number of private messages were misdirected by Facebook’s servers to unintended recipients, originally reported by a Wall Street Journal writer who fell victim to the server snafu.  While spreading general confusion, these messages also offered snapshots into the lives of other Facebook members. Messages ranged from teenagers lamenting their sweetheart not asking them to the prom to even death threats.

A Selection of mis-delivered messages:

1.“Until I start hearing some thank yous from you, I will be unable to give you rides home after dance.”

This raises great questions over modern parenthood.  Are today’s adolescents so plugged in their parents need to Facebook them in order to garner a thank you?

2. “The jealousy, the vibes, and what I hold dear to me made this whole weekend hard. The cuddling, truth or dare game, the texting back and forth for long periods of time, and the whispering back and forth for a long time got to me.”

Unrequited love and intrigue has never seemed quite so titillating as when it’s delivered through a Facebook message, where you can simultaneously poke the object of your affection.

And finally,

3. “I took my stuff off don’t want to ruin your life for you. So you can continue to cheat on facebook I don’t care anymore. I have asked you please not to do things but you keep on and on. So you are listed as married but that is because my status is gone. Too bad everything had to end over a f*****’ website. Wow that was worth it to you I guess.”

The age of question of who gets to keep the circle of friends has only gotten messier in the digital age, wherein, it appears, all record of a relationship must be cleansed from that “f*****’ website.” The question remains whether a post-marriage restraining order will mandate these two be defriended.

How About We…

Go gallery hopping in Chelsea this Thursday.  Attack the crossword in a quiet café.  Take a walk across the Brooklyn Bridge.  Go skin-diving in the Maldives.

Finally, an online dating site dedicated to, in the words of UrbanDaddy, finding “like-minded hedonists.”  Flipping the online dating scene on its head, new matchmaker “How About We…” lets you first propose a date, then find someone to ask out who is mutually interested in that activity.

Previous online dating platforms have matched users by interests or “chemistry;” this new model aims to find people who enjoy doing the same things when out and about in New York City.  To get a sense of your style, the site presents you with a series of sample dates, to which you can respond with interest or skip over.  Based on your reaction to these samples, the site will try and show you dates proposed by other users that may be of interest, as well as allow you to post your own dates.

Even if you don’t find a love connection, you can at least find someone with which to enjoy even the quirkiest of habits…from weekend-long Chinese checkers tournaments to blindfolded knife-throwing lessons.

The site will officially launch in mid-March, but if you sign up now during the beta phase they’ll give you 3 months of free dating.  Check it out at www.howaboutwe.com

Luxury Brands and Social Media: an Oxymoron?

Luxury brands are moving away from small targeted social networks, according to Mashable columnist Samir Balwani.  Balwani lays out the three main obstacles for luxury brands in social media:

1. Luxury = exclusive.  Social media = inclusive. The loyalties of each lie in almost polar opposite ideologies.

2. Luxury brands uphold a hesitancy toward all things experimental.  They are classic and timeless, not fans of following new fads.

3. New ventures = expensive invoices. Luxury brands put high priority on aesthetics.  Aesthetically pleasing applications or web pages for social media can often rack up the bills.

For these reasons, it has been tough for web users to find an agreeable juxtaposition of social and luxury.  But with Facebook recently reaching the ranking of #2 most popular website in America, along with a slew of other encouraging statistics enumerated in a previous post, it seems that brands can no longer ignore a growing market of online socialites.  Add another attractive element to the mix—a study recently released by Unity Marketing, claiming that nearly 80% of “affluent luxury consumers” belong to a social network—and the social media presence becomes almost essential.

Are we all asking to get robbed?  That’s what the guys behind PleaseRobMe.com are telling us, with their new website dedicated to a Twitter reel showing anyone who recently left their homes and then notified the public via location-sharing networks, such as Foursquare, Buzzd, Gowalla, all of which have been profiled in this blog.  Really it’s about time someone highlighted the dangers of sites like Foursquare and Google Buzz; when you break it down, it really does seem ridiculous to tell the entire world when you leave your home and to publicly list your address.  The site itself is overall quite primitive—all their “inside scoop” comes from a simple Twitter search that anyone could perform on their own computer in about 0.4 seconds.

Okay, so maybe these guys are exaggerating a bit, making it sound like we might as well put out a welcome mat and greet burglars with a tray of freshly baked cookies.  But they do make a very good point about how oblivious most users are to the privacy risks that come with being so connected.  And now that they’ve done that, and in the process garnered a whole lot of buzz, they want to dedicate the website to a foundation for online privacy awareness.

What does it all mean?

One reading of this development is as follows: privacy concerns are taken far too lightly by members and participants of these social networks.  People share too much information too frequently and are compromising their safety.  Conversely, one could argue that the size of these networks has grown faster than imagined, creating a wealth of information that is now being sifted through and sorted out, allowing for a disciplined thief to digitally case someone’s place.  If members start to post less information they will be protecting themselves, but they’ll also be providing marketers less information to assemble a profile from.  In the meantime let’s not forget the major precautions one can take to protect their home and belongings…like locking the door.

Two new studies of social behavior over everyone’s favorite social networking site were released this week, detailing the nature and extent of sharing links and information on the network.  The network, which grew from 250 million users to 400 million in only the last six months, was the subject of criticism once again this week as users debated the merits of the facelift the site received.

Sharing is caring on the social network

One study, an update on Facebook’s statistics page, indicates that users are moving away from using their statuses to really tell friends “what’s on their minds.”  Instead, people are using Facebook more often to share links, news articles, songs, YouTube videos, and the like.  And they’re doing it a lot.  Five billions links shared a week in the whole of the Facebook network – a staggering figure – averages to 12 shared pieces a week per user.  Facebook also revealed that 175 million people log in to the network each day, meaning just shy of half of all Facebook account holders are checking their friends’s links daily.  This trend points to a great importance on the part of fan pages of businesses to take an active role in the conversation by sharing as frequently as possible.  Sharing content other than promotional status updates has amazing potential to be commented on or liked by other users, thus reposting the article in their news feeds and keeping the fan page in the public eye.  Fandom increased dramatically as well as the number of fan pages doubled in the same time, fuel largely by new pages

for local, small- and mid-sized businesses.

The Facebook Gazette

Facebook called on its users at the end of January to share more news links with friends through their account, a move aimed at undermining the attraction of Twitter and RSS feeds to web surfers looking for quick itemized news updates.  As a result, Facebook has surpassed Google News as the dominant driver of traffic to news sites, currently beating it handedly by sending a 350 people to every news article Google News sends 1 to.

What do these numbers boil down to?

Ultimately these numbers indicate a growing legitimacy of Facebook.  This is not something that happened over night, nor has Facebook replaced the newspaper, but Facebook is nonetheless consistently adapting and evolving and incorporating new features that the community ends up adopting and utilizing with great frequency.  So maybe we shouldn’t complain about the new face of the social network just yet…it appears they know what they’re doing.

At the start of the new decade, many are questioning what lies ahead for social media networking sites.  Twitter remains the target of skeptics who point to stagnant membership and mock the micro-blogging mecca. Simultaneously, tweeters and commentators have come to the site’s defense, alleging Twitter is here to stay.

Skeptics point to mediocre 2009 in numbers

While the latest social media network reported a small bump in membership in December, its end of the year numbers were a staggering 24% less than June 2009.  Ironically, while Twitter was featured more and more frequently in cable news broadcasts – and stood at the center of the Iran election coverage in June – the network hemorrhaged members.  Twitter’s growth problem has thus become a billion dollar question: how can the social network grow? Some analysts are pointing to the immeasurability of new Twitter members, as an increasing proportion of members are tweeting from mobile devices and via apps, which were not captured in the statistics.  Others claim Twitter has not yet reached a critical mass, like Facebook already has, encouraging potential members to join to keep track of everyone else they know.

Twitter makes sharing information simple

Yet, Twitter remains extremely popular and has been put to great use recently in light of the earthquake in Haiti, as tweeters are sharing thoughts, needs, websites for charity, and prayers through the social network.  New York Times media reporter, David Carr, remains optimistic about the future of Twitter.  In his article titled “Why Twitter Will Endure,” Carr argues that Twitter allows for the consumption of a massive array of information.  Yes, people tweet about their choice of cereal, but they are also sharing news articles, videos, blogs, and discussion boards where responses are not limited to 140 characters or less. As Steven Johnson, another journalist and technology commentator for TIME, observes, “the history of the Internet suggests that there have been cool Web sites that go in and out of fashion and then there have been open standards that become plumbing. Twitter is looking more and more like plumbing, and plumbing is eternal.”

In case you didn’t know, we’re in tough economic times.  These economic conditions have drastically cut budgets across the nation and world, leaving meager allowances for marketing and advertising in its wake.

Nonetheless, expectations for 2010 remain optimistic.  In a new study released yesterday, StrongMail reveals nine out of ten business executives plan to maintain or increase their marketing budgets.  Execs aren’t thinking conventionally for the new decade either, instead the survey’s respondents indicated they were open to marketing strategies that utilize the Internet and maximize their dollar.  Next year, 69 and 59 percent of business executives anticipate increasing their email and social media marketing, respectively. Another 42 percent claimed they expect to spend more on search engine initiatives, such as SEO and PPC.  The survey’s results indicate a migration to internet marketing tactics, as advertising and direct mailing initiatives are expected by less than 30 percent of execs.

Furthermore, the study showed a desire among business executives to combine the tested and proven tactics of emailing potential customers with social media.  Execs did not, however, demonstrate uniform confidence about how they would go about implementing such strategies in the upcoming year.  Instead, one out of five executives claimed they had no idea where to begin.  With more businesses seeking to establish an online presence in hopes of finding cheaper alternatives to conventional advertising, it is certain that social media marketing and search engine initiatives will play integral roles in the year 2010.

Social media as a marketing strategy has made so many advancements in the past 12 months that it is hard to keep track.  The online marketing space has redefined how companies brand themselves, communicate with customers, and allocate marketing dollars.  Obviously the economy is pushing businesses towards more cost effective and measurable marketing. 

I have said it before, but transparency is the new norm…the old days of companies hiding behind their “big brand” are over.  Companies that are engaging in social media are committing to real customer interaction and showing who they really are as a brand and as a team.  Here are three ways that social media is changing the face of marketing and branding.

Fusion Between Marketing, Advertising, and Customer Relations

The most successful social media campaigns combine all online and offline marketing efforts and truly engage the audience.  The companies that use these strategies effectively are fully committed and spend considerable time on these initiatives.  Once a campaign gains momentum and is tied into all marketing efforts, the social platforms (i.e. Facebook Fan Page, Twitter, LinkedIn, etc.) become real communication tools.  The communication can then range from providing FREE information and valuable content (i.e. blogs) to promotions special offerings.  More importantly the platforms become customer relationship management tools.

Branding

I like to be careful about how we define “branding” as it applies to marketing and advertising.  Sometimes branding can be thought of as that marketing strategy with an indefinable ROI.  Actually, it is of course much more important.  These days it doesn’t take just good advertisng or PR to brand your company.  Many businesses now start with the social web first and think about investing in advertising and PR later.  They do this for a few reasons. First, advertising and PR cost money and budgets are tight.  Second, usually their customers are in fact online and engaged in social media so that is where they can get in front of them quickly and easily.  Third, it is targeted and can be measurable (but we’ll talk about that more in a minute.

Once a business begins social media they should engage everyone in the company to contribute.  A company’s brand shouldn’t be just a recognizable logo or fancy advertising…it should be about the team of people driving the business.  In the end, the success or failure will depend on the management and the team.  We are seeing executives come out from behind the curtain and engage the social communities.  And guess what, customers love it!  If the President of Ritz Carlton is a regular blogger and uses Twitter, that should tell us something.

Cost Effective – Targeted – Measurable

Just like any other marketing strategy, Internet marketing and social media should be designed to support a company’s business goals.  Online marketing channels like SEO and social media are not only complimentary to one another but show a true long term committment to business growth.  Strategies like this are more in line with business development than “marketing” really.  One of the main attractions of course to online marketing (whereas many used to be skeptical) is its economic value.  The days of expensive print ads and $20K per month on PR are over for most companies.  Now, every penny needs to be accounted for and advertising needs to show a direct return. 

One of the key ways that Internet marketing and social media are more cost effective is because it is targeted.  The traditional media model is design for you to spend a lot of money and hope you hit your target audience.  If you are not getting in front of your customers, either change vendors or spend more…that’s about it.  With social media marketing, an effective campaign starts first with defining the audience.  There are many great social media tools out there to help plan and manage campaigns, track results, etc.  The bottom line though with measuring results should be in the analytics.  All social media efforts should tie in with the company website and gradually build traffic and conversions.