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What people use social media for

Steve Smith's picture

People's uses of social media help disrupt the producer/consumer relationship.

What do I mean? That through social media, the consumer/consumer relationship becomes even more important than it once was, even more important than the relationship people have with brands. Sure, people were talking about brands before social media, but through it, people have access to a much larger number of people and the advice they give.

Performics recently released findings from a study they conducted with ROI Research Inc. “S-Net (The Impact of Social)”. It shows that among regular users of social media:

  • 59% use social networks to compare prices
  • 56% do so to talk about sales or specials
  • 50% use social networks to give advice about products/services, companies or brands on social networking sites
  • The same percentage use social networking to get advice

The challenge for brands is to become part of the conversation.

Find the Performics press release here.

Tech Tuesday 12-7-11

Scott Thompson's picture

The big news this week in media is obviously the last issue of the News Of The World published last weekend. Perhaps not entirely unforseeable, but definitely a surprise. The wider impact of recent events on the planned bid for BSkyB will become clearer tomorrow.

While the withdrawal of advertisers from the weekends' edition of the newspaper no doubt played a large part in the decision, whether or not social media played a part in brands' decisions is harder to judge.

But with our weekly focus on the news in digital media and technology, our attention turns to some very interesting developments that have been happening in online video – or more accurately, online video on Facebook. Channel 4 are planning to stream T4 content on Facebook, exclusively to people who have "liked" the T4 page. Meanwhile, Channel 5 plan to use Facebook voting in the next series of Big Brother, with payments being made for voting using the Facebook Credits payment system (at a price yet to be announced.)

Perhaps taking things a step further, BBC Worldwide have started offering remastered episodes of Doctor Who for streaming through Facebook, with Facebook Credits again as the payment system. (Similar to an experiment by Time Warner which we mentioned in March.) A selection of nine stories will be available (one featuring each of the first ten doctors, with the exception of Paul McGann's eighth doctor, who only appeared in a single TV film.)

Meanwhile, Google's apparent reaction to Facebook's growth with the launch of "Google+" last week has taken much of the tech world's attention this week. While a growing number of preview invitations have been sent out (with a recent estimate at ten million), the role that it will play for advertisers is so far unclear. Reports are out that brand pages coming in the next couple of week, while the Google +1 button appears to be proliferating on major websites.

The week also brought news of Google's plans for an online+TV measurement panel coming to light. In partnership with Kantar research, Google aims to establish a panel of 3,000 people by the end of the year, with data and analysis offered to the industry by 2012. This panel will aim to address the complex issues of accurately measuring behaviour across TV and online media with a single-source measurement- something currently very difficult to do in the UK.

This project follows some projects with the GfK Media Efficiency Panel in the UK and Germany to track the efficiency of media spend across different media, based on measuring campaign reach alongside purchase behaviour. Particularly interesting is the possibility of feeding data from the combined panel into the IPA Touchpoints study. Although BARB have similar plans for a single-source, unified TV + PC measurement system, Google's ambitions to bring cross-media measurement sooner looks likely to both provide valuable audience data, as well as create some disruption in the way TV audience viewing is measured.

Finally, the long awaited announcement from Spotify of a US launch finally arrived... kind of. Although this is the first confirmation from the site that there are concrete plans for a launch, at the time of writing there is still no news about when the site will launch in the US, or whether the proposition will be the same as the European service (ie. a combination of ad-funded and subscription based service.)

How does the new Instant Preview Tool affect Paid Search?

Google’s latest major addition to the Search Engine Results Page (SERP) is the Instant Preview Tool (IPT); an unassuming magnifying glass next to the search results, which could drastically impact the future performance of paid search campaigns.

What is the Instant Preview Tool, and what does it look like?

When a user arrives at the SERP, a magnifying glass now appears alongside the Headline of the results. Once the user clicks the magnifying glass, a preview of the relevant website landing page will appear.

As the feature appears automatically and cannot be opted out of, advertisers will have to learn to utilise it correctly and optimise its potential impact. The function was initially available on natural results only, but having trialled the IPT from late 2010, Google added it as a permanent fixture to paid search ads on the 25th of April this year.

Why have Google Introduced this Feature?

Undoubtedly the reason that Google have introduced this function, as with many of their recent changes, is to improve the user experience. By giving users visibility of the landing page prior to clicking on the link, users can carry out top-level research without leaving the results page, therefore creating a more efficient search experience. The sceptical view of Google’s IPT is that the drive behind the new tool is founded in a bid to make Natural and Paid Search results look more similar, and therefore increase click-throughs and revenues.

What are the Implications of the IPT?

For the Searcher

The full potential of the IPT has yet to be seen but as more users begin to make use of the tool, there is likely to be a significant change in search habits going forward.

From a user’s perspective, they will be able to check at a glance how relevant the website is to their needs and gauge whether the landing page fulfils the promise of the ad displayed. This should result in the user finding what they need more quickly and effectively.

Potential Problems for the Searcher

There are some potential downsides to the new tool; the size of the preview displayed is limited by space on the SERP, which means that users may not be able to judge accurately whether the content is relevant and as a result could still click on an irrelevant link. Another potential issue is that the IPT doesn’t display automatically, so users have to click on the magnifying glass to activate the preview, which, as it is positioned next to the ad headline, may lead inexperienced users to think that it is a link to the site and discourage them from clicking on it.

For the Advertiser

The full effect for the advertiser is unknown due to insufficient data around whether visitors have previewed the web page before clicking through. In the interim, any potential changes in Click Through Rate (CTR) without this insight are likely to be attributed to other factors. The main benefit for advertisers will be apparent when users become savvier with the IPT, as then clicks that are generated through paid search activity are likely to be pre-qualified, as the user will have already approved the landing page content before visiting. In effect, as Advertisers, we are getting ‘free clicks’ when the IPT is used. This is particularly useful when CPCs can be as high as £20 in competitive industries.

As a result of increased IPT use we should see lower CTRs on generic searches (resulting in lower costs) but higher CTRs on Branded keywords, from pre-qualified visitors, hopefully leading to increased conversion rates (from sales or other actions). This potential effect would be good news for competitive performance clients.

Potential Problems for Advertisers

In industries with low Cost Per Clicks (CPCs) and those with alternative challenges, there is a potential downside. A large online retailer may welcome as many visitors to a website as possible (assuming CPCs were low), as the potential returns from a customer browsing a product range with the potential to convert into a sale would off-set the cost of the clicks.

Additional Issues

Many of the challenges that advertisers could face sit within the SEO ‘best practice’ guidelines. A flash-heavy landing page, for instance, may result in the IPT displaying a blank preview, which will undoubtedly deter many visitors. Optimised meta tags are important, as without them Google will automatically select the passage of text which it feels is most relevant to the search query, which may not always be the ideal message to persuade a user to visit a website.

Final Thoughts and Conclusions

While the IPT has so far not had a huge uptake among users, Google is constantly evolving paid results to more closely resemble natural listings by including snippets, sitelinks and similar formatting. As a result, when users become savvier to these changes, the IPT is likely to be a contributing factor in improving the user relationship with paid search ads.

For all advertisers, those with tight performance-related targets and those wishing to drive brand awareness; the aim is to further increase relevancy to make sure that the right person clicks through on their ads. Therefore, making sure the ad copy and landing pages are up to date and relevant is even more important than before because even if an advertiser’s product is relevant to the user’s search, if this isn’t apparent from the preview, they simply won’t click your ad.

Tech Tuesday 5-7-11

Scott Thompson's picture

BARB announce rollout of web viewing meter. Following a trial project which ended in May this year, TV measurement body BARB will be rolling out a web TV viewing meter in 100 BARB panel homes during the second half of this year. BARB then plans to extend it to up to 1,100 homes during 2012, with around 2,500 people participating in the combined measurement process in a staged approach, to ensure that the existing quality of TV audience measurement and reporting is not compromised.

The announcement has been welcomed by the IPA, with Research Director Lynne Robinson calling it a significant step for the television industry.

In the online world of advertising, although Amazon has been selling ads for some time, they have been limited to ads on its own sites (such as Amazon itself and IMDB.) But news this week is that Amazon is partnering with the Triggit DSP.

Interestingly, the Wall Street Journal's "AllThingsD" carries the headline is that Amazon is creating an ad network– which perhaps undervalues the key differences between ad exchanges and ad networks; the technology of a DSP gives Amazon much clearer understanding of the value of its data and how it is being used. I've written here before about the value of Amazon's customer database, and I would expect to see this being just the first step by Amazon towards making the most of this locked-away value beyond on-site suggestions.

In a blog post, Twitter has announced that it has hit the milestone of 200 million tweets per day. As seems to be traditional when big numbers are announced, Twitter provide some real-world equivalents to help visualise what that means (along with some nice graphics and the top trending topics);

For perspective, every day, the world writes the equivalent of a 10 million-page book in Tweets or 8,163 copies of Leo Tolstoy’s War and Peace. Reading this much text would take more than 31 years and stacking this many copies of War and Peace would reach the height of about 1,470 feet, nearly the ground-to-roof height of Taiwan’s Taipei 101, the second tallest building in the world.

Meanwhile, the company is facing more serious issues, as it is under investigation by the FTC for its business practices, apparently due to the way it is dealing with developers of 3rd party applications. This follows some interesting movements, as Ubermedia (a company that owns a number of Twitter clients) looked set to take advantage of Twitters "open" platform and potentially build their own business around users' end experience (for example, by selling their own advertising into users' Twitter streams, bypassing Twitters ad model.) This culminated when Twitter bought Tweedeck for $40 million- apparently in a defensive move against Ubermedia.

Another Twitter partnership is looking like it might be on shaky ground as its search deal with Google has expired. Google's "realtime" search has quietly disappeared, as the deal with Twitter to include Twitter results apparently expired on July 2nd. Although there is no official news on what Google plan to replace it with, it seems likely that it will involve the recently announced "Google+" social 'project'- perhaps tying users' own social connections to make more relevant Tweets appear in search listings? I'm sure we will see soon…

On the mobile side of things, a large patent portfolio has been up for auction in the US, where Google put forward a $4 billion bid… and lost. A consortium of six companies (Apple, Microsoft, RIM, EMC, Ericsson and Sony) won the auction of 6,000 Nortel patents and patent applications with a $4.5 billion bid. The auction (and partnerships) highlights the complexity of the mobile marketplace; the value of the smartphone market goes beyond simply selling handsets; patents on hardware and software are creating complicated deals between platform owners, and the value of patents alone can be more profitable than selling handsets- recent analysis at Asymco.com indicate that Microsoft make more money from Android than Windows Mobile.

Some interesting things have been happening in the world of mobile games– specifically with what must be one of the biggest mobile games ever; Angry Birds. Developer Rovio have already been learning interesting lessons about the mobile applications platform – apparently making over £600,000 a month from the free, ad-supported Android version (which followed the paid-for iPhone edition.) In a deal with Barnes and Noble announced this week, Angry Birds on the Nook e-reader platform will now include a location-based feature; play the game in a Barnes & Noble store, and gamers will get a free Mighty Eagle bonus…

If you don't know what the Mighty Eagle is, then you probably aren't one of the 75 million people who are spending 200 million minutes a day playing the game.) But you could always wait for Angry Birds the movie, which is apparently going to become a reality soon.

The mind boggles…