Long time collaborator Sean Moffitt – who’s currently busy writing the upcoming book on “Wiki Brands” with Mike Dover – provided a link to an interesting presentation from Nokia yesterday. Much of the focus is on how marketing is now about conversations, not broadcasting messages – advice which, in my opinion, has been taken way to far in the social media space (as I’ve regularly discussed on my blog). But today I wanted to focus on the part of the deck I found most interesting – slides 28-40.
To provide some context, one of the big research projects we’re working on in our Marketing program is called The incredibly shrinking marcom expense line. The basic idea is that by enabling, among other things, ambient intimacy, social media is pointing towards a future where marketers can shrink their marcom costs, while at least maintaining current levels of impact. Facebook fan pages, twitter, online communities, and newer services like Yelp all play a hand in this.
In the Nokia presentation, slide 28 starts out by outlining three different ways to optimize your presence in the ecosystem – SEO, SEM, and SMO (search engine optimization, search engine marketing, and social media optimization). It then quickly points out that less than 30% of this is “bought media” – the SEM part. 70% of engagement comes from the other two – 40% SEO, 30% SMO. The first is what they call “own media”; the second is “earned media”.
I really like this idea of “earned media” – and how it’s distinguished from the paid part of ecosystem presence strategies in particular. As referenced earlier, I disagree with the blanket statement that “earned media” is all about conversations – in my mind, it’s all about earning the right to be within an individual person’s ambient network, which is based on offering them what they want (which may or may not be conversations). But the visual presented on slide 39 – where “bought media” shrinks, and “earned media” dramatically increases in the future – is the right message.
Once people start thinking this way, I believe my explanation of why “nothing is holding social network advertising back” becomes clearer. The conversation about approaches to marketing has long been dominated by a spend-centric point of view (i.e. if you don’t spend much on social media, it must not matter). In this world of “earned media”, marcom spend can indeed be low – and many things have no direct costs associated with them. But, the impact can be great – if you earn the right to make the proper connections.