social media and germany - realising the value

Thank you and intro’

20 minutes

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What do we do?

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We are a specialist beauty media insight company and tell brands

what’s being said about them on social media and in print media.

In terms of print media as you can imagine with over 4,000 brands

active in the market it’s impossible for a marketer to keep track of

them all.

So what we do is collect data on every single beauty brand in

terms of their print advertising and PR activity and give our

customers the whole market.

We took these learns in print and developed our social media

service.

We monitor over 70 million website, globally in 20 languages in real

time.

Our expertise has meant that we have become the UK beauty

industry’s standard for this type of social and print media research.

We have since taken that expertise into Australia, and now

Germany, and working with Melanie we have fortunately already

agreed contracts with 2 major German based beauty companies.


Who do we work with?

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These are some of our bigger UK clients

And this is what one or two clients have kindly said about us


What do they say about us?

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Value

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Thomas Schnitzler asked me if I was in his shoes why would I

invest in social media?


How de we get value?

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How do we get value out of social media and see the return on

investment?

I will answer that and give some example of how successful social

media marketing can be, but I must emphasise that we all have

common challenges, we’re all in this together in that the final

objective is to always sell more products.

So as a start point in answering Thomas’ question, I went out and

asked my colleagues and friends in the beauty business what the

word ‘marketing’ meant to them.


What is marketing?

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It’s the art of selling”….is what Kenneth Green said in answer to

my question.

Michelle Feeney : CEO PZ Cussons Beauty answered by saying

“We ask ourselves that question every day and the answer has

morphed and changed. Right now it’s about understanding who

you need to speak to. Where they are. What they’re interested in.

Creating mechanisms and ways to tell your story. It’s gaining and

keeping fans.

I also asked whether beauty is any different from any other

consumer product when it comes to marketing.

Kenneth said “it’s about touching people intimately. You need to

understand the fulfilment and emotion of the products”.

Blake Hughes the MD at E Arden UK said it’s about “Selling

emotions “ and added that “with fragrance you are selling a mood”.


The Difference

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So how does social media fit into all that?


What’s different?

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I have been talking to my beauty clients about the importance of

social media since early in 2008 and it is only in the last 18 months

in the UK that we have seen so many brands beginning to

embrace it.

However there is no magic about social media and let’s not lose

sight of the end game in that it’s about selling and Michelle

Feeney’s view is that “Social media is just another marketing

platform”

And my view is that the one thing that hasn’t changed as far as

marketing is concerned is that for a message to be more effective it

needs to be delivered from as many platforms as possible. Social

media should be one of those platforms.

Quite simply, online media works better when combined with offline

and offline works better when combined with online.

But one thing that HAS changed is the way that the consumer

buys, they are taking control through the internet now more than

ever.

As you know they can review and exchange information and

thoughts on just about any product and can share those thoughts

across the globe in real time.

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What’s different (magnet)

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As the consumer becomes more media aware they have come to

expect to have a relationship with a brand, and in response

marketing is changing in that it’s about consumer-attract rather

than brand-push and social media is the perfect vehicle for “selling

emotions and touching people intimately”.

But I am sure that you all know this already and I want to tell you

more about what I mean with a real and possibly surprising

example


What’s different VW

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Concluding with the memorable tag line “We pluck the lemons;

you get the plums,” this famous Volkswagen ad from the 60’s

teaches us a lot about social media and teaches me that as beauty

marketers you already know a lot about reaching out to your target

market.

By calling their own car a lemon, VW related to the reader on a

personal level. VW is not a faceless corporation imploring you to

spend more, but a company that has real people rejecting cars for

something as minor as a hair line scratch in the windshield. The ad

relates to the consumer in a direct, personal way, to the point and

with humour.

The ad was a breakthrough in product-to-consumer relations, and

social media is all about customer relations and starts before

you’ve even got a customer.

Let’s dissect that ad a bit more, then talk about fishing.

It relates to the reader on a personal level by talking to them. It

respects their intelligence as real people. It’s understood that

they’ll ‘get it’. It uses humour, it’s personal, it’s direct.

Social media does the same thing. For the word ‘direct’, transpose

‘engage’, and there is no doubt that humour always attracts people

to you and social media is the perfect vehicle with which to do that.

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So what’s new? Nothing really. It’s just the platform from which

you can deliver your message is different, and can potentially

reach the whole world.

When it comes to swaying consumers, nothing beats word of

mouth.

92% of people trust recommendations from friends and family

when making a purchase decision. That’s a great stat if you’re a

friend, but being liked on Facebook isn’t the only way to make

friends.

How do we make friends? We have common views and

experiences, we share ideas and thoughts, we are like-minded. A

conversation over coffee can range from fishing to shopping to

holiday to the weather, in the time it takes to say cappuccino. We

like fishing but we like other things as well and social media allows

us to eaves drop in on all of that.

We listen to a friend because we are aligned. We like their

personality and we listen to their recommendation because we

trust them.

A brand is never going to be a true friend, how can it be? However

it can create a personality but beware, consumers are savvy and

their antennae is on the alert for when that conversation moves

from a friendly chat to ‘buy this’.

However a brand can have a personality and a consumer will

identify with that personality and will want to get aligned in some

way. They may even buy it, like it, and tell someone else.


The Audience

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Let’s look at some top line stats for Germany


Who’s out there? Germany

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With 83% of Germans using the internet and over 30% of the

population using Facebook there is no doubt that the web is widely

used in this country.

In fact, 67 million people, in Germany are now using the internet

and 25 million people are on Facebook, and we can look at that in

more detail now.


Who’s out there? Germany (Facebook)

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Facebook is a good indicator as to the health of the German

appetite for social media, even though it’s notable that Facebook

does not dominate the German market quite in the way it does as

in so many others countries.

But the interesting point for beauty is that the profile, highlighted in

red, is skewed towards the typical beauty consumer.


Who’s out there? (Likes)

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And for beauty brands the good news is that 80% of all Facebook

users, not just Germany, prefer to get in touch with a brand

through this social site.

Nielsen’s latest Global Online Consumer Survey of over 25,000

Internet consumers, from 50 countries, endorses what I said earlier

and tells us that recommendations from personal acquaintances,

or opinions posted by consumers online are now the most trusted

forms of advertising.

But I do say that it does not have to be all about Facebook and I’ll

come onto that later.


Who’s out there? Germany

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If we look at German social media users as opposed to general

internet users it is estimated that the usage will increase from 32

million people this year to just under 40 million in 2017 which

means that nearly 50% of the population will then be interacting in

some way with a social media site.

And to help us there is a great deal of information from which we

can understand how consumers use social media.


Who’s out there? USA women

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There is no doubt that the USA is ahead of the world with social

media usage so it’s worth looking at some numbers and see how

they might relate to the core beauty target market of women,

because the learnings from the USA do have relevance for the

European market

Please note that this is all products and not just beauty.

55% of daily active social media mums said they made their

purchase because of a recommendation from a personal review or

blog

78% of women in the US use the Internet for product information

before making a purchase

92% pass along information about deals, promotions or things

they’ve found, to others


Who’s out there? UK Beauty

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Those number from the US were for all products not just beauty

but the number of people interacting with beauty brands online in

the UK is now at 15 million and you can see how just one brand,

Clinique, can generate a huge number of conversations in just one

week. This is based on a top line search we undertook of any site

globally using the English language.


Online v Social

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At this point I would like to step back from the numbers and make a

clear differentiation about social media


What does social mean?

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Social media is the ‘catch all’ phrase for Twitter, Facebook,

Pinterest and so on, but also is used, incorrectly, to include the

bloggers, e-zines, the.com publications as well as all the other

news sites.

Incorrectly because the latter are not really social sites in the true

sense. They’re news sites and media platforms. They’re not

‘social’ media in that the audience doesn’t engage in the same way

that they do with a social site.

We prefer to differentiate and call that group ‘online’ or ‘digital’


What does social mean?

.

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Online is news and social is relationships.

Both can work for a marketer equally well, however online is easier

to get to grips with and social requires more subtlety. I have said

this before but my question to the request “Join my baked beans

Facebook page” is still “Why?”

The power of online is that it provides plenty of platforms.

However because they are fundamentally news sites there is still a

strong element of push culture around the message, therefore a

marketer should not necessarily expect the results to be radically

better than offline.

Conversely, the attract culture around social is hugely powerful

because social is about making friends, recommendations.

Remember the real value online can unlock is the power of

recommendation - consumer / blogger recommendation is more

powerful than many expensive advertising campaigns

It’s a balance, as so much in life is, and marketers do sometimes

struggle to get the balance right, but that is beginning to change.

However we do recognise that many CEO’s underlying concerns

still stem from the fear of viral negative conversations.

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When social started that was a valid fear, because in most cases if

someone was bothered to go online and post a review it was very

often negative. That has all changed

What’s also changing is that many more UK beauty brands are

putting more and more effort into online as well as social.

And this is what I want to talk to you about in a practical way

based on what is happening in the UK now.

Now today the UK beauty business is still concentrating on product

placement, PR, albeit on a digital media platform but from the

same publication, for example Vogue.com rather than Vogue on

the news stand, and of course the .com version has the benefit of

a different demographic profile.

There has been a definite positive change within the UK beauty

industry in terms of embracing digital and I would say that even

this year digital is a the top of the agenda as opposed to last year.

That’s all good and if it sells more product that’s even better, but

budgets are important and you will still want to understand the

ROI.


Start small think BIG

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My advice is to start small and concentrate on the areas that you

can control and measure the return on, for instance the reaching

out to the bloggers and the online publications.

Get your PR teams to be pro active.

The reverse of that is reactive and there are hundreds of online

conversations going on around your brands as we speak now, and

they can of course be monitored and acted upon.

However, my advice is that the place to start is with the online

magazines and bloggers. Digital-only launches, bloggers-only

dinners and tea parties and events, are increasing and all work

well.

Those PRs who have honed their skills with offline are seeing the

rewards as they transfer those skills to online.

Again whilst talking to Kenneth Green over a coffee he said to me

that their worry was that social media had changed the way brands

should market themselves and asked what advice I could give.

My answer was simple. I said “Kenneth you are a master at

communicating with people, it’s one of the many things you are

well known for. You already know how to communicate your brand

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story to the consumer, so just do what you are doing now”.

In fact you are all masters at doing that but be aware that some of

the ground rules are changing. The Blogging community is

increasingly influential and as individuals they are also increasingly

commercial with some bloggers charging up to 1,000 Euro per day.

But without doubt Bloggers provide both a highly effective

marketing platform as well as an immediate way to reach out to

consumers in a trusted, third party way.

Conversely, Bloggers have been described as a ‘movable feast’

with some Bloggers appearing and then disappearing making it

hard for marketers to keep up to date as to who they should be

engaging with.

And then there are also some bloggers whose only real interest is

in obtaining free samples.

But there is plenty of data such as a Blogger Leaderboard and

other metrics to help you target the most relevant and influential

brand ambassadors.

However Germany is behind the curve for social media and that is

good news and a great advantage.

It’s good news because you can start in a place that’s taken the

UK beauty brands two or three years to get to. I would suggest

that with potentially 50% of Germans predicted to be engaging

with social media the fuse is lit and the timing is right to really push

your brands.

Also there is value in first mover advantage over the competition -

alternatively those that are too slow to adapt (and more importantly

learn) could be left behind by more pro-active competitors…

and on that note let’s take a top down look at some UK success

stories.


Case Histories

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The ROI

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I want to talk you through just a few case histories to show you

how other brands have realised the value of social media and

online.

And whilst the first example is not actually a beauty product, it is

aimed at women and their quest for beauty, however we might

want to define that elusive term.


The ROI - Sales

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With no above the line advertising and no marketing apart from

Facebook and Twitter, Malcolm Bell the inventor of the slimming

fashion product ’Hotpants’ took his company, Zaggora, a start-up

from a turnover of zero to £10 million in one year.

He gave 2,000 product samples away through Facebook,

encouraged ‘Likes’ and sent out over 3,000 Twitter messages in a

3 month period.

His basic ‘Hotpant’ sold for 57 Euro and he sold over 200,000 pairs

in year one. Zaggora now spend about £50k a month on a cost

per click strategy and are turning over £30 million a year after just

three years with a much broader product portfolio.

Well, we all deal in beauty and that’s what I expect you want to

hear about, so in preparation for today we researched our client

base and asked how importantly they rated online and social

media as part of their overall media mix and I want to emphasise

that last point.

As part of their OVERALL marketing mix.

So before I take you through the beauty case histories I wanted

you to see the results of our own research.


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The ROI - Importance

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In every case we had a 5 apart from one 4 and this what they said:

Social media is a 4 for us. It would be a 5 except that Europe is so

far behind the UK and US in terms of leveraging social media in

PR terms that we have to fight to get approval to use it - especially

with the super-luxury heritage brands. At the moment our French

colleagues see it as something that needs to be "tamed" and

controlled through carefully orchestrated social media PR

campaigns that are so complicated, no one understands them and

the personality of the message is invariably lost in translation!

I will now take you through our 5 case histories.

Because of confidentiality you will understand it is not possible to

get into detailed brand specifics, apart from the next one, so the

others are some real but neutralised examples of how online has

been successful.

They are based on real data analysed from real campaigns and

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show how you can amplify a message and reach a greater

audience than a static offline publication can with a fixed audience


The ROI - one reaches many

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The Jean Paul Gaultier On The Docks launch in September

delivered an impressive reach on twitter of 518,000 impressions

from the 100 or so tweets made just on the one launch night.

They combined online with offline for the overall campaign and that

tweeted message has alone reached potentially half a million

people, not all will have been based in the UK, and the other offline

activity will have added many times to that number.


The ROI - global

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Just one Tweet from a magazine editor, made at this UK launch

event, was re-Tweeted, and this amplification created 29,0000

impressions which were then followed in 5 other countries in one

night.


The ROI - Impressions

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The brand Twitter handles for this event, which launched a

skincare product, (on the left of the chart) was retweeted 679 times

and made over 3.5 million impressions in total.

The Hashtag (the results are on the right hand chart) is important

to get right because it helps consumers identify with a product, and

in this instance just the one Hashtag at the top where we’ve

changed the name to ‘confidential’, made 2.7 million impressions

Now just for clarification, an impression is a measure of the

number of times an item is displayed, whether it is clicked on or

not. Each time an item displays it is counted as one impression.

It has been said that this of course is no different to TV ratings or

magazine circulations. We know the numbers but can never really

know whether the message was seen.

However with social, the very fact that a Tweet has been re

tweeted is clear evidence that the message has been seen.

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This is part of the analysis we ran from this brand’s launch.

It’s another skincare product, but was the first ever digital -only

launch for the brand.

Just online titles and bloggers were invited, again this brand’s

identity has been withheld, but it is the purple one you can see

highlighted in red.

Amongst other things we looked at whether it was the bloggers or

publications that posted the most coverage, and in this instance it

was the online titles.

It is quite clear that the activity took share of voice away from their

competing brands across the activity period, July and August 2013,

and that was one of the key KPIs on which the success of the

campaign was measured.

In fact they increased their share by over 500%, as you will see on

the next chart, and that we know had a direct impact on sales uplift

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The ROI – before and after

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This is the result of the share of voice analysis which showed that

post-launch the brand’s share of the online voice increased to 62%

up by over, as I mentioned, 500%


The ROI – brand values

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And finally this post-campaign conclusion for a cosmetic could just

have easily been derived from an offline campaign as well as an

online one.

We have included this to show that it is possible to understand how

an online campaign worked in the same way that you do now with

traditional media.

In this case one of the objectives for the launch was the positioning

of key messages and product attributes, and the need to see

whether the media and the celebrity played them back, which in

general they did not.


Thought

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The question is not if, but how….

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We are coming to the end of the presentation and I hope that I

have put these thoughts into your mind.

Our advice is to be clear on what you want to achieve and the

recommendation is to plan and devise, as a first step to

demonstrate value, an online product placement PR strategy.

The basis of that could be to simply start by listening


…by listening to what they say

to what’s being talked about around your brand

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.


…like this?

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The idea is to make social media work for you rather than make

you do more work, or there is a danger of analysis paralysis

So it’s not like this….


….no. There is a more structured way

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Measurable and actionable analysis of campaign activity is key

and needs of course to be based on clear objectives agreed from

the outset, which could be impressions, influencers, key messages

or even monetary value so…..


The value AVE

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…lastly, where a Euro value is required, results can be measured

against costs.

Advertising value equivalents, that is what was the value of the

online coverage worth had it been paid for advertising, can also be

applied. Not to Twitter, but certainly to many publications and an

increasing number of bloggers.

In this instance you can see that Online for this campaign

performed better than offline and for a hard pressed Financial

Director that is a tangible KPI.

I hope that this has all been helpful and to summarise…


Conclusion

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Summary thoughts

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Thomas asked me to talk about the value of social media, if I was

in your shoes why would I invest in social media?

In conclusion, what I hope I have shown today is that the basis of

the decision to invest in social media is essentially no different than

the decision to invest in any media activity.

It is not a sliver bullet, but it is measurable and delivers a huge

audience, and is relevant, and is aligned to the way the consumer

wants to engage with and buy into brands today.

My point of view is that social media is the perfect vehicle to get

alongside your consumer, build a brand’s equity through personal

recommendation, and really develop a consumer-attract strategy

as opposed to a blunt brand-push culture.

For German brands social media is still slightly behind the curve,

but it’s building fast and that’s your advantage.

You are in the perfect position to benefit from the hindsight of

others, you are at a start point that’s taken them 2 to 3 years to get

to.

So include it within you marketing mix, and accelerate sales even

faster as your economy continues to grow.

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Danke

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