The document discusses the limitations of social media for advertising and branding. It provides five lessons: 1) You do not control your brand on social media. 2) Social media is just a tool. 3) Word of mouth is not a cure-all. 4) Word of mouth is never better than your actual product. 5) Social media is not actually free for companies. It argues that companies need to focus on the customer experience and creating high-quality products in order to generate effective word-of-mouth marketing through social media.

1. The Limitations of
SOCIAL MEDIA

3. The Advertising Anachronism
The Limitations of Social Media
Takeaway Tweets
The Social Framework

4. 01. THE ADVERTISING ANACHRONISM

5. “Once in front of a screen, be it on
a desktop, laptop, or increasingly
a handheld device, we ‘log in’ – not into
a system, but into a community.”

6. “Once in front of a screen, be it on
a desktop, laptop, or increasingly
a handheld device, we ‘log in’ – not into
a system, but into a community.”

8. 02. THE LIMITATIONS OF SOC
IAL MEDIA

17. Lesson 1:
In the Age of Social Media,
You do not Control Your Brand.

20. Lesson 2:
Social Media is Nothing but a Tool.

22. Lesson 3:
Word of Mouth is not a Cure-All.

24. Lesson 4:
Word of Mouth is never better than your Product.

26. Lesson 5:
Social Media Are Anything But Free.

27. SOCIAL BUEDIA IS
M TOOL
ING T A
NOTH

28. Social Media Marketing

29. check
Social Media Marketing

30. check
Social Media Marketing
38 fans 8 followers 182 visits 78 views
1 like 0 retweets no comments no ratings

31. Learn
Plan
Create
Govern

32. 4 Possibilities
Screwed-no-matter-what a-lot-to-talk-about What-to-talk-about Superior user-good
stay away? talk about your product find something think twice,
really? and talk back to talk about and fail fast

33. Screwed-no-matter-what

34. a-lot-to-talk-about

35. What-to-talk-about Eastpak Padded Pak`R
Limited Edition Rock Bag
The Hives

36. Superior user-good

37. Superior user-good

38. THE VALUE OF FANS
IS DEBATABLE

39. Fans & followers are the people formerly
known as a

40. To a brand’s status updates is the new
“Time for a beer (or pee)” moment.

41. How many of your followers are actually
“following” what you share?

42. a
d
v
o
c
a
vs. t
e

44. 233,906 friends sacrificed 1,636 stories shared
375,801 fans 430,922 fans
1,565 followers 10,108 followers
s
people who take opinion
24% of customers of this 46%
brand seriously
people who believe the brand
31% is honest and sincere in its 62%
product explanations

45. 233,906 friends sacrificed 1,636 stories shared
375,801 fans 430,922 fans
1,565 followers 10,108 followers
s
people who take opinion
24% of customers of this 46%
brand seriously
s
Gimmick ze
people who rginali e brand
mabelieve th
31% is honest anrusit !cere in its
td sn 62%
product explanations

46. “How-to movies” and real product demos “How AXE helps to get girls” ads

47. 197,792 fans 484,971 fans
7,417 followers 6,096 followers
people who talk
about this brand
people who will defend
the brand if someone
disparages it

48. 197,792 fans 484,971 fans
7,417 followers 6,096 followers
people who talk
about this brand
Func tionality
beats
fu wily !
people who nn ldefend
the brand if someone
disparages it

49. WOM IS NOT A CURE-ALL

50. The theory of influence
? !
! ...
passive influencer active influencer
= reputation = presence

51. The theory of influence
? !
! ...
passive influencer active influencer
edia
via s ocial m

52. Meet “my possible future bike”

53. Meet “my possible future bike”

54. Whether I’ll buy it largely depends on the bike’s “WOM equity”
“Word-of-mouth equity” is an index
of a brand’s power to generate messages
that influence a consumer’s decision
to purchase.
From “A new way to measure word-of-mouth marketing”, McKinsey

55. How to measure WOM equity?
close/trusted relevant
large/dispersed irrelevant
network content
volume x impact = WOM equity
sender source
influential experience
not influential hearsay

56. In the case of “my possible future bike”
close/trusted relevant
large/dispersed irrelevant
network content
volume x impact = WOM equity
sender source
influential experience
not influential hearsay

57. The importance of “managing” WOM Equity
The incremental gain from outperforming
competitors with superior TV ads is relatively small.
That’s because all companies actively manage
their traditional marketing activities.
With so few companies actively managing WOM,
the potential upside is exponentially bigger.
From “A new way to measure word-of-mouth marketing”, McKinsey

58. How can a brand impact its WOM equity score?
Generate Intentional WOM Stimulate Consequential WOM Focus on Experiential WOM
the event, site, game or contest the pass-on effects of a “cool” real experiences generate
that hopefully generates WOM campaign can generate WOM the most successful WOM

59. Why “experiential WOM” beats any other form of WOM
Marketers tend to build campaigns around emotional
positioning, yet consumers actually tend to talk
— and generate buzz — about functional messages.
From “A new way to measure word-of-mouth marketing”, McKinsey

60. WOM IS NEVER BETUER
T
THAN YOUR P ROD CT

61. Volvo’s C30 really is a “green” car.
slide?
remember this

62. Volvo’s C30 really is a “green” car.
slide?
remember this
so is this Fiat

68. The Kano Model
satisfaction excitement
performance
need not need
fulfilled fulfilled
basic
dissatisfaction

69. p erfect
It’s about your product, stupid!
To turn customers into an effective marketing vehicle,
companies need to outperform on product and
service attributes that have intrinsic WOM potential.
From “A new way to measure word-of-mouth marketing”, McKinsey

70. e
How to give your customers a better experience?
the sam pply
es a
categori

71. Meet the bank “that doesn’t suck”
Screwed-no-matter-what

72. a-lot-to-talk-about

73. What-to-talk-about

74. What-to-talk-about

75. What-to-talk-about

76. What-to-talk-about

77. What-to-talk-about

78. SOCIAL MEDIA ARE
ANYTHING BUT FREE

79. 3 Ways of Investing in Social Media
Investment in Culture Investment in Good Ideas Investment in Data

83. “My mom has zero buzz, but
when she says something, I listen”.
Tony Hsieh, CEO Zappos.

84. Albion’s Oven, 2-4 Boundary Street, Shoreditch,London

87. Craig W.
! Mayor of Berkeley Station
! Loves to travel,has the jetsetter badge,
as well as the gym rat badge

91. BART has simply given its customers a better experience.
19% rode BART because of a
43% had recommended 4sq recommendation
a destination near BART
38% were having “more fun” 17% connected with friends
14% rode BART more
23% earned frequent rider badge because of their interaction
with 4sq

92. 02. THE SOCIAL FRAMEWORK

93. the time
watchin once spent
g
has been television
toward a redirected
ctivities
are more that
about
engagin
g

94. iOS Social Games are as Prime Time as Prime Time Television

95. We are t
raining
our brai
to pay a ns
ttention
to the cr
ap

97. Try, fail, learn, adapt, learn, try,
learn, adapt, succeed.

98. 04. TAKEAWAY-TWEETS

99. @AdNerds AdNerds
If you think apps are not suited for your company,
you’re suffering from theory-induced blindness
http://amzn.to/923R0L #FollowFridays
@AdNerds AdNerds
See your company as an information-based service.
Get to know your customers, offer a better experience
http://amzn.to/bXSLix #FollowFridays
@AdNerds AdNerds
You have to overdeliver in order to generate WOM!
http://bit.ly/a8KUvV #FollowFridays
@AdNerds AdNerds
Branding today is a whole different game: you need to
make sure you’re backing it up in the market place
http://bit.ly/bFPxkR #FollowFridays
@AdNerds AdNerds
Experiential WOM beats Consequential WOM!
http://bit.ly/a8KUvV #FollowFridays

100. http://www.adnerds.be

101. thanks you!