The World’s Greatest Ever Sports Photograph

Ritson versus Social Media

Almuni Reunion 2013

Mark Ritson

Associate Professor

It Started When the Lights Went Out

Literally….

The Tweet Heard Around the World

65,000 followers Average CTR of Twitter link: 0.45% Generous CTR of 2% 1,300 followers opened link Amplification? Re-Tweeted 15,000 times x 208 followers (USA average) – 3m+ x 2% CTR 63,000 followers Reach of 64,500 Oreo’s US market: 80,000,000 people 0.01% of their market

TV audience 108,000,000 million 47% ad viewing (eyes on screen) 50,000,000 million people X 60 seconds Moving parts! 3000 times better

The Usual Reponses

It’s a conversation, dude

The Super User

Integration Effects

SOCIAL MEDIA

Terms of Reference

people brands

communication

research service

Big Numbers

500 million globally 2.1 million Australians 15% adult population active

1 billion + globally 11.5 million Australians 33% adult population active

SOCIAL MEDIA

70,500

Some Smaller Numbers

8,500

9,000

Social MediaIs

Over-Rated

Small Numbers

13,000,000 people will shop at Woolworths this week One in 1 in 3000 of them will engage with them on Facebook

Social Media Defined

Social Media It means communication between people…

65% of Australians Don’t follow any brands

on Twitter

A Precarious Contradiction “I’m not sure if its working” “I want to do more next year”

The Urgent Search for ROI

The Quest for ROI

Chapter 1: The Pissing Contest

2009 Buy friends & followers Not all of them genuine Fake Followers:

Only 28% of the followers of the top 100 are real

6,000

Target, K-Mart, Bunnings, Big W

Chapter 2: A Crude $ Value2010

2 cents 12 cents $1.45 $138.00 $174.17

Chapter 3: The Power of Like2011

Do Facebook likes make you money? Study of 3 brands

Bing Soutwest Starbucks

Conclusion – Yes!

A Lurking Variable

For Example

In The Same Way

Chapter 4: Chaos

The Experts However…

The Experts

Unilever & Coke Early adopters – 24 months ahead Experts at ROI Cross Comparison versus other tools Both continuing with social media But also stepping back A more nuanced approach A more traditional approach

You Knew About these?

Your Best Guess…

16 hours per week8 hours per week

Good News Only - & Often

Social Spend is Small Part of Digital

Social is a Weak Purchase Driver Less than

Outdoor TV Newspaper ads Sampling Er.. Erverything

A Digital Divide

Search versus Social

The Same Imbalance Social gets 1:20 of Australian adspend Social gets equal media coverage

Social generates 1:17 of traffic versus Search Social gets 4x or 58x the media coverage

The Jackdaw Professionshiny, shiny

Paranoid About Being Out of It

The Elevator Experiment

It’s A Very Crowded Elevator

So What? Q: Is social media worthless? A: No

A middle ground

Q: Is social media as valuable and as important as we are being told?

A: No

Rhetoric is Good No-one else is asking these questions Everyone else is doing down traditional media When I do “have a go” at social nobody actually

knocks me down (properly) Its what (good) B Schools should do

And this is the way brand managers are meant to behave

I Come from the Eighties

1988: A Vintage Era The creation of modern brand management The arrival of IMC The importance of media neutrality

The Social Business A separate allocated budget? Clients who want social, but don’t know why? Separate planning tools and models A complete lack of critical thinking The fear to question and to reject

A New Tool, The Usual Process Start with your objectives

Use the same funnel we always have

Look at your positioning The private bank question

Be suspicious of all the tools Ask the hard questions of all of them

Play them off against each other

As We Conclude… Old man out of time The 12th Man

Questions / Comments

Mark.Ritson @markritson

Connections