BarnRaisers

The Pew Research Center released findings this month about our social media behavior.

The facts and figures are telling, but more telling is the insights they reveal about our character as human beings.

Here are 7 insights into what social media usage reveal about our character.

1. FRIENDS AND FAMILY ARE OUR #1  PRIORITY: The top reason we use social networks is to stay in touch with friends, family members and connect with old friends we have lost touch. Meeting new people or interacting with celebrities are much less relevant than deepening bonds with those who are already important.

2. PEOPLE OF EVERY AGE WANT TO BE INVOLVED: A common misconception about social media is older demographics don’t use it because they’re either not computer savvy or didn’t grow up with social media. Not true. In 2011, we see, for the first time, saturation among the youngest demographic while the oldest (65+) is growing at the fastest rate.

3. ENGAGEMENT IS GOOD: When asked to describe their experiences on social media, positive comments like “good,” “fun,” “interesting” and “great” dominate testimony as this tag cloud visualizes of engagement experience.

4. WOMEN ARE MORE SOCIAL THAN MEN: We known for some time women are the networkers of the species. This is confirmed across social network with the exception of LinkedIn.

5. IT’S TOUGHER TO BE A TEEN: Are people kind or unkind to one another on social networks? When this question is asked, the answer, for the most part the answer is yes but teens navigate a more uncertain social world.

6. TEENS CAN HAVE A DARK SIDE ONLINE:  When teens (12-17) are asked how people behave online, the negatives outweigh the positives. A good number of the descriptors are troubling. If you’re a parent reading this, you should take away social media, like the internet in general, is a different world for teens than adults. Take the time to help your teen through it and tell them you understand what they’re going through.

7. TEENS KNOW WHAT’S RIGHT: When asked how people should behave online, the answers change and a different picture is painted.  Teens, like all of us, know what the right behavior is.

Taken together, these findings show extraordinary growth of social media bringing out a primal part of our character – to look out for one another.

If you don’t know, The Pew Research Center is a nonpartisan “fact tank” that provides information on the issues, attitudes and trends shaping America and the world. It is a charitable trust that gives away its research for free.

To learn more about some of the extraordinary work the Pew Research Center is doing, take a look at this video from Mark Schaefer, marketing/business consultant and a fellow Rutgers MBA faculty member, with Lee Rainie, Director of the Pew Internet and American Life Project.

What do these insights into our social media behavior say to you?

Every business, big or small, turns to social media to save money versus other marketing channels. Since the costs are lower, many then expect the ROI (Return on Investment) to be higher.

The good news is these are realistic expectations. We see this for clients that range from Fortune 100 companies to smaller B2B companies.  But, unless you understand the principles at work and work at them, as with anything worth doing well, it’s probably not going to happen.

Here are 10 life lessons social media taught me about business a building and ROI.

1. A BLOG CAN BE AS EFFECTIVE AS A WEBSITE (BUT COSTS LESS).  A website is essential for digital presence and branding. But did you know 95% of people never read more that 5 pages or visit for longer than 5 minutes? You may not need to build a website when a blog can do just as well. This website for BarnRaisers, an online marketing and social media solutions company, is a blog build on sweat equity. It’s been effective for lead generation. It’s helped secure new business and, best of all, it’s been our learning tool for WordPress, the website platform we use for all our clients, including an e-commerce brand with over 100 SKU’s. Plus, the frequency of blog postings steadily increased our search rank. Could we build a traditional website? Yes. Would we? Why.
2. BY SHINING A LIGHT ON OTHERS, YOU ATTRACT ATTENTION TO YOURSELF:  It takes times to build an audience in social media, but less time if you acknowledge others.  For example, comment on others’ blogs and establish “links” that improve SEO; Re-Tweet the Tweets of those you admire and they are more likely to follow and Re-Tweet you.  The overall effect is you are seen as a person “in the know” and distinguish yourself as a giver in a world of takers.
3. YOUR SOCIAL VOICE IS YOUR  VALUE PROPOSITION: A Value Proposition is a summary statement of why a consumer should buy a product or service from you. It is used to target customers who benefit most for what you are offering and appeal to their strongest decision-making drivers.  Companies pay the price when they veer off course and lose sight of their Value Proposition.  I could substitute the words, Social Voice, for Value Proposition in any of these sentences because it’s the same thing.
4. PEOPLE LIKE TO DO BUSINESS WITH PEOPLE THEY KNOW: A simple truth about business and branding is familiarity is a big advantage.  It creates trust and minimizes risk.  Social media gives people the opportunity to know you, often before you even meet. Aren’t you more likely to open up to someone whose blog you’ve read or participated in a LinkedIn discussion? Isn’t it easier to have a conversation? The ROI of familiarity is it accelerates the buying cycle.
5. CONSISTENT COMMUNICATIONS ARE BETTER THAN AN OCCASIONAL FLASH OF BRILLIANCE: Good content and frequent publishing are two important social media requirements.  You won’t get anywhere without them.  You can obsess all your want about what you write but you won’t make progress if you’re not publishing frequently.
6. SOCIAL MEDIA ELIMINATES THE MIDDLEMAN:  Higher ROI’s occurs in social media because there are many low-cost widgets, apps and measurement tools, made for marketing purposes, that do the work of services that have traditionally cost a lot more.  For example, we are doing a sweepstakes for a terrific product, TortillaLand fresh, uncooked tortillas, from Circle Foods in San Diego.  TortillaLand tortillas cook in 60 seconds and taste like they were just made for you in a restaurant.  The brand is running a sweepstakes on Facebook, Win 3 iPads – 1 for you, 2 for friends, using the Wildfire app.  The prize costs more than all the marketing expenses combined.
7. SOCIAL NETWORKS HAVE THEIR OWN PERSONALITIES, JUST LIKE THE PEOPLE WHO USE THEM: I can tell you about 6 businesses that have great results with Facebook and 6 businesses in the same category that have great results with Twitter.  What’s the difference? The people who do the posting. Some have a gift with 140 characters. Some like to post with a little show and tell. What’s the lesson? Find what works for you and stick with it.
8. YOU’RE COMPANY IS NOT IN THE PRODUCT OR SERVICES BUSINESS; IT”S IN THE RELATIONSHIP BUSINESS: “The purpose of a business is to create and keep a customer,” said Peter Drucker.  Pretty sound thinking because every company is in the customer satisfaction and relationship business. When you think about your company in these terms, social media has a role as a listening and engagement tool.
9. YOU START A GLOBAL BUSINESS THE MOMENT YOU BEGIN: Social media attracts consumers from all over the world.  This may or may not be a priority but think about this.  For brands that do want to go global, it used to take years. Now, it happens the moment you begin.
10. SOME OF THE MOST INSPIRING CASE STUDIES ARE BUSINESSES THAT TURN TO SOCIAL MEDIA AS THEIR LAST RESORT: This blog lists a good number of social media case studies.  We’ve written 67 Case Studies that Prove Social Media ROI and 34 Case Studies that Prove Social Media ROI.  We’ve found when the chip are down and no other marketing resources are available, social media has been the turning point.  Joe Sorge of Burger Joint, AJ Bombers, with no resources for traditional marketing, used Twitter as his customer service department.  It became a distinguishing feature of the restaurant and sales increased +60%within a year. When Mari Luangrath of Foiled Cupcakes opened for business, she could make the cupcakes on time but the website developer couldn’t deliver the website. With no Plan B, she launched her business on Facebook and Twitter instead and exceeded her business forecast by +600%. Today, 95% of her customers still come for these two social networks.

All of these lessons taught me only by jumping in and doing do you see results to inspire others. What do these lessons about social media and business building teach you?

90% of all purchase decisions begin on the internet.  75% of us shop online before we buy offline.

$33.3 billion is invested in Google Ads every year to help influence those decisions.  It’s where Google makes 97% of its revenue.

TechCrunch recently published the 20 most expensive categories for Google keywords.  The infographic below shows the numbers.  If we group them, they reveal some surprising insights into our real wants and needs.  And what marketers pay for that knowledge.  Here’s the infographic followed by some insights into what they reveal about us.

Here’s what the 20 most expensive Google AdWord categories reveal about our wants and needs.

GROUP #1 (1-3):  WE WANT A BRIGHT FUTURE (45.8%/$49.2 CPC)

The biggest and most expensive group by far centers around our need for a brighter tomorrow and the belief we can have it if we invest in the things that matter most – our home, possessions and ourselves – today.  It accounts for almost half of all Google Adwords and businesses pay almost $50.o0 just for a click.

• INSURANCE: 24,0% of total/$54.91 average CPC (cost per clic
• LOANS (Student, home, etc.): 12.8%/$44.12 CPC
• MORTGAGE: 9.0%/$47,12 CPC_

GROUP #2 (3-6): WE WANT TO BE PROTECTED FROM SITUATIONS WE CAN”T CONTROL 9.8%

What we have is worth protecting.  Situations beyond our control risk taking it away, and we need the resources and people who can protect us.

• ATTORNEY: 3.6%/$47.07
• CREDIT: 3.2%
• LAWYER: 3.0%

GROUP 3 (7):  WE WANT TO GIVE BACK (2.5%)

Others are in need more than ourselves.  We want to help them if and when we can.

• DONATE: 2.5%

GROUP 4 (8-15): WE WANT TO INCREASE OUR PRODUCTIVITY (10.8%)

Technology and tools help us accomplish more.  We want to know about them, use them and have them help bring us closer to the goal of feeling fulfilled in our work.

• DEGREE: 2.2%
• HOSTING: 2.2%
• CLAIM: 1.4%
• CONFERENCE CALL: 1.0%
• TRADING: 1.o%
• SOFTWARE: 1.0%
• TRANSFER: 1.0%
• GAS/ELECTRICITY: 1.0%

GROUP 5 (16-20): WE WANT TO CORRECT SERIOUS SHORTCOMING (5%)

If our frailties take us off course or down the wrong path, we want to make amends and come out stronger.

• RECOVERY: 1.0%
• CLASSES: 1.0%
• REHAB: 1.0%
• TREATMENT: 1.0%
• CORD BLOOD: 1.0%

Taken as a whole, these reveal not greed, status-consciousness or everybody is out for themselves; It shows what we really want is fulfillment, security, productivity and to make amends if we get off course.

These are what the insights from the most expensive Google AdWord categories reveal to me. What do they reveal to you?

Sometimes, the best person to tell your story is someone else.  At a recent PRSA (Public Relations Society of America) speaking engagement, a reporter, Maggie Caldwell, from the Greenwich Post just outside New York was in the audience. 

She wrote this story about my journey from adland into social media marketing.  Thank you Maggie. 

_______________________________________________________________________

By Maggie Caldwell, Hersam Acorn Newspapers

Small business owners of the world take note: If you are a Twitter contrarian or Facebook foe, you are likely diluting your business’s potential by ignoring a major customer base.

So says Rob Petersen, founding partner and president of Barnraisers, a Wilton-based online marketing solutions company that builds brands primarily using social media. A veteran ad man who has been at the front lines of the changing advertising field, Mr. Petersen discussed trends, tactics and best practices in social media before a group of PR professionals and small business owners at the Hyatt Regency in Old Greenwich last month. The luncheon was sponsored by the Public Relations Society of America’s Westchester/Fairfield chapter.

“Social media is a different kind of marketing channel. It is based on a conversation, not a monologue,” Mr. Petersen said. “People access the Internet so much more. The capability to access your friends for recommendations, rather than listening to an ad is just the way you do it now.”

The Internet has changed consumer behavior, he explained, citing statistics that 90% of purchasing decisions now begin on the Internet, 75% of consumers shop online before they buy at the store, and 85% of consumers look for independent reviews.

“Consumers are now in control,” he said.

Mr. Petersen’s own foray into the world of social media came after he saw ad sales plummet as the recession set in in 2008. He says he is no “techno geek” but started blogging for his own company about trends in advertising. He later taught himself how to use Facebook, Twitter and other social media programs.

“I did it because I was scared,” he said. “I had clients and then the worst recession since the Great Depression happened.”

Through the experience of keeping a blog, Mr. Petersen became a self-taught expert on social media. It changed his whole course of thinking about advertising as he began to recognize the potential of this new platform. He noted that the way people buy products, which had been the same for decades, was shifting. He saw that once consumers bought a product, they wanted to share it, leading to purchase reviews.

His blog on its own became such a success, Rutgers University offered Mr. Petersen a job teaching classes on social media and digital branding. The university is now one of the first to offer a social-media specific MBA program.

“Traditional marketing strategy boiled down to one thing: Shout it out!” Mr. Petersen said. “If you want to grow, shout it louder. Now it’s changed… People don’t buy the way they used to. Now let’s listen to what people are saying.”

At his Web site, barnraisersllc.com, Mr. Petersen lists a number of case studies about companies successfully using social media to their benefit.

“Social media is the difference between launching with many millions of dollars, versus many millions of fans,” Mr. Petersen said paraphrasing Chris Bruzzo, vice president brand, content and online at Starbucks, which launched a highly successful social media program called “My Starbucks Idea,” where consumers invent and then vote on new drink offerings at the coffee chain giant.

Trust factor

One of the major components of social media is that it imbues the consumer with a sense of trust, Mr. Petersen said. He cited the case of Foiled Cupcakes, a company launched by a Chicago woman who started baking in her home kitchen and selling her cupcakes for delivery online. The business has no storefront and relies almost entirely on social media to get the word out about her services.

“The value is in trust, engagement and timely responses,” Mr. Petersen said. The company created a blog and set up Facebook and Twitter accounts and created its own community of followers.

“People like to do business with people they know,” he said. “Social media offers more than a phone number or e-mail address… it gives a face to a product.”

Another company that ran a hugely successful campaign online was Blendtec, a manufacturer of industrial blenders that was looking to expand from the B2B (business-to-business) market to reaching everyday consumers.

The company launched a video series entitled “Will it blend?” in which the company’s founder, Tom Dickson, blends all sorts of household items, from golf balls to stuffed animals to glow sticks. Two videos of him blending an iPhone and an iPad received more than 10 million views each on YouTube.

“Blendtec had a product that you had to see in action to understand how good it is, and he found a medium for it,” said Mr. Petersen. “This was a campaign that probably cost less than $20,000 and in turn, the company’s sales increased by 700%.”

Social media budget

After going over some case studies, Mr. Petersen said it might behoove business owners who are either Internet shy, or too busy, to create a social media budget.

“At the end of the day, it is a time equation,” he said. “When you bring someone on, you have to ask how much time do you require to do this, and what is the compensation.”

In looking for the right “social media marketer,” as he termed the profession, Mr. Petersen advised people to seek out a person who will embrace the business, who has an interest in what they are promoting, and who has a proven track record that they can amplify the message.

He said it takes time to draw people to a new Web site or Blog, but there are proven methods to grow an audience online. These include searching for other people who are writing on a topic that has to do with the business and commenting on their site, or inviting them to view your own.

“Use the social networks to say ‘I have a blog out,’” Mr. Petersen said.

The worst mistake someone entering the world of social media could make, however, is to build an audience and then just stop Tweeting, Blogging, or interacting.

“People will wonder what happened,” he said. “You must make a dedication to this. At least three to six months to start.”

The Wall Street Journal reported last week, in looking at the glass as half full or half empty, most of us see the economy as half empty.

Is it time for a Social Media Stimulus Plan?   Here are the facts why.

CONSUMERS AREN”T SPENDING AND BRAND LOYALTY HAS ERODED

• 59% of consumer still rate the economy as “poor;” 73% describe their sentiments as pessimistic
• Under $50K, 79% of consumers are cutting back on spending
• Between $50K-$100K, 73% are cutting back
• Over $100K, 66% are cutting back
• Less than 50% now buy “the brand I want most” when they shop
• 42% cite “unemployment/job security” as a primary concern followed by “rising prices” at 33%

ONLINE SPENDING IS GROWING FASTER THAN OFFLINE

• 8.1% of retail sales now occur online – double what is was 7 years ago
• Online sales are growing +80% faster than offline sales
• 60% of consumers say the internet is more important in making buying decisions; up +56% from a year ago
• Sales at all major retailers, even brick and mortar companies, are growing online:  Amazon (+19%), Apple (+25%), Best Buy (+7%), Home Depot (+3%), Lowe’s (+5%), Macy (+4%), Sears (+6%), Staples (+5%), Wal-Mart (+3%)

PEOPLE WHO USE SOCIAL MEDIA SPEND MORE MONEY AND TIME ONLINE

• Facebook and Twitter users spend 1.5X more time online than average internet users
• People who spend time on Facebook and Twitter spend 2X more money online than people who don’t use these networks
• Heavy online buyers spent $592 on average in Q1 2010
• More people are spending more time on Facebook; it accounts for 8.0% of the time consumers are online
• 23% of Twitter users use the service for retail purposes
• Cost per thousand impressions on social media are $0.55 versus $2.55 for paid online advertising

COMPANIES WHO USE SOCIAL MEDIA INCREASE THEIR PROFILES AND SALES

• 97% of companies report a blog improves their search ranking
• 55% say a blog increases site visitations
• 45% have gotten revenue from their blog
• 36% of companies see an increase in positive perceptions fom their blog
• Companies from Dell, Best Buy, Procter & Gamble, Starbucks, Blendtec and AJ Bombers now have great social media case studies, particularly in the area of innovation, customer service and sales

Sources: comScore, U.S. Department of Commerce, Nielsen, Harris Interactive

A rising tide lifts all boats.  If spending continues to move online and people who use social media spend more, shouldn’t our administration take a hard look at the segment likely to lift us out of a bad economy the fastest; the one with the greatest likelihood to impact positive change?

Our administration has the experience too.  Let’s not forget, when Barrack Obama was campaigning, he used social media and it raised 87% of the funds he put to work to help get elected.

Wouldn’t you like to see the glass as half full again?