How to Monetize Social Media

As someone who provides Social Media Marketing solutions, both on behalf of employing organizations and clients, I am often asked... "OK, I am onboard, but how do you make money from all of this?"

I am a disciple of Inbound Marketing. I believe in this day and age this is a philosophy that works. It's simple in theory; create great content, promote that content via social media, attract qualified leads and convert those leads into customers. Many Marketers out there work in conjunction with sales. I personally have been in positions where the Marketers job ends at garnering qualified leads and passing those leads off to sales to close. But Marketers are often tested by sales... what am I supposed to do with this information. Marketers are often frustrated by sales when they don't jump on such qualified lead data... this is an age old quandry between the two departments and why I contend there must be a happy marriage between the two departments... but that is a story for another day.

Today's story?...
How Marketers can help themselves by helping sales monetize their social media efforts.

Companies are not only getting the word out about their brands using social media such as Facebook and Twitter but are also making money.

Many businesses have not found sites such as Facebook, Twitter and YouTube useful in making money. Building genuine online relationships that are also good for the bottom line is not so easy. There is a lot of trial and error. But while monetizing social media is difficult it is not impossible. There are companies that are getting the word out about their brands using social media and are turning a profit.

Take The New York Jets. The NFL team launched their Ultimate Fan social game in September 2010, which was the first revenue generating Facebook app to be backed by a pro sports team. The application lets football fans do online what they would normally do at home and in stadiums—root for their favorite teams and players, predict game scores, and hold a virtual tailgate party with other fans from across the globe. Ultimate Fan has since lured four major sponsors integrating their brands: MetLife, Motorola, SNY and HotelPlanner.com.

The Jets also communicate regularly on Twitter. They even advertised a Twitter-based contest to win tickets to their 2011 AFC playoff championship game against the Pittsburgh Steelers. The Jets are able to engage with their fans and make them feel like they are part of the team. They are leveraging social medial to capitalize on their fans' passion for the team and their willingness to share that fervor.

Like many companies, your social media efforts have started small and grew organically. To capitalize on those efforts to generate sales and revenues you need to have a team of people dedicated to your social media presence. You also will need a deep understanding of your audience, a creative vision, and a way to measure results in order to execute a successful strategy.

Here are some ways your social media can be monetized…

How to Monetize Social Media: Build Brand Awareness
The first step is to use traditional media or word-of-mouth advertising to drive awareness and traffic to your Twitter, Facebook, and YouTube pages. Unless you already have a recognizable brand like Nike or Apple, your brand needs to develop social media magnetism before you can look to make any money. You also need to create circular momentum across many platforms when designing your social media campaign. By providing multiple channels for users to talk with you, you let customers choose the channel that they are most comfortable with, by doing this you increase the likelihood that they'll connect with your brand in any number of ways.

How to Monetize Social Media: Engage Your Audience
Social media is about having a dialogue. When you have a dialogue with a customer or prospect, the communication is much more fulfilling and much more profitable. The PETCO brand has developed a strong presence in social media. The pet store chain has a YouTube channel, its Facebook page generates a lot of discussions among pet owners, and there's lots of activity on its PETCO Scoop Blog, which has received hundreds of “Likes” and Comments. PETCO's customers are true pet lovers and treat their pets as part of the family. The company tries to keep conversation going by aiming Facebook and Twitter posts so that there's an explicit question to answer, or at least a specific piece of information to which people can react. You have to know your community and know how to take part within that community and through that create great content or conversation that will raise awareness and increase sales.

How to Monetize Social Media: Offer Special Promotions
Dell Computers exemplifies a company that is selling products using social media. Its Twitter page, @DellOutlet, offers discounts exclusively to followers. Dell might tweet 15 percent off any Dell Outlet laptop or desktop with a special coupon code entered at checkout so they'll know which tweet you are seeing. @DellOutlet also points you to a specific web page. There is some interaction in terms of chats with tweeters. @DellOutlet has garnered more than 1.6 million followers and generated more than $2 million in incremental revenues for Dell. Traditionally, Dell would have spent a lot of money running print ads. Today, they can write a 140-character promotion to reach customers.

PETCO is yet another example. The company provided a promo code to their customers for $40 in free shipping. The person who shared their code with the most people won a $500 PETCO gift card. About 40% of the sales that resulted from this promotional push came from new consumers. The desire to save a few bucks drove loyal PETCO customers to connect with the larger pet owner community and spread the word about the store via social media.

How to Monetize Social Media: Use Media Advertising
Many companies have used display advertising (banners) and contextual advertising such as Google AdWords. Many bloggers use Google Adsense to make money. There are plugins to help; you make money from clicks. There are also ad networks that you can join that pool several advertisers. You get a code and banner ads rotate from their network. This is an item that you will want to include in your advertising rate sheet. Major advertisers who buy display ads are finally beginning to figure out how to reach audiences through social networks, and have begun to shift significant dollars into Facebook.

Instead of a typical banner ad, consider offering a microsite, which would be equivalent to a paid supplement. For example, you could devote one page (a link on your website) specifically to an advertiser's products and services. Or you can become an affiliate. With affiliate marketing you get paid to refer people to another business.

Consider combining rich media advertising with display advertising. Video advertising and promotional material can be quickly and easily streamed to your social community. Another consideration is charging for sponsorship on a monthly, quarterly, or annual basis. Of course, attention needs to be paid between balancing the delivery of the rich media advertising against the comfort level of your customer base.

How to Monetize Social Media: Brand Within Applications
The best way to use apps is to create something that is functional such as a calculator, entertaining such as a game, or provides some sort of social connection such as an app just for your community. Your app can be fee based or you can give it away to build a relationship with customers. A number of well-known company brands use mobile apps to interact with their loyal customers, including Target, Coca-Cola, Nike and Gucci.

The fashion designer touts a luxury lifestyle application that is a quintessential example of branded mobile marketing. Through "Gucci Connect" users were able use their mobile devices, such as iPhone or iPad, for virtual access of a Milan fashion show, watch live runway and behind the scenes video coupled with live chat between virtual guests through Facebook and Twitter. Exclusive also to iPhone app subscribers are interactive games. The "Gucci Live" section features a music channel. Subscribers stay "in the know" with a calendar of upcoming brand events and feature articles. The Gucci "Little Black Book" provides recommendations to the hottest restaurants, nightclubs, and hotels in various cities throughout the world.

How to Monetize Social Media: Set Up Shop on Facebook
Facebook fan pages are another way to generate sales and enthusiasm especially if you have loyal fans that follow your updates. You can list your products on your Facebook page for fans to easily share with their own friends and essentially allow your product offerings to go viral.

Businesses are increasingly selling their goods on Facebook. There are various e-commerce solutions available. One is 8thBridge which is helping companies like 1-800-Flowers and HuateLook sell from Facebook. A special deal 8thBridge ran for the designer brands retailer HauteLook along with fashion designer Diane von Furstenberg generated more than $100,000 in sales in one day, 40 percent of which came from new customers. Users were given a $10 coupon for every new member that they brought in. Using 8thBridge, 1-800-Flowers is drawing people into buying flowers and other gifts for friends and family while they are already thinking about them on Facebook.

Payvment is another storefront option that provides online stores for companies to sell on Facebook. It has a network of more than 60,000 merchants using its self-serve technology. Payvment generally serves smaller clients while 8thBridge caters to small- and medium-sized businesses. According to a study released by Forrester Research, Facebook is more suitable for small retailers, niche products, or steeply discounted items. Most of the benefit that big retailers get from Facebook is branding their company but not actual purchases, Forrester further reports. Moreover, some products are inherently social such as books, DVDs, and event tickets, which have been successful because they are easy to buy and sell online.

How to Monetize Social Media: Use as a Retention Tool
Companies don't always need to use social media as a sales tool or to acquire news customers, they can use it as a customer retention tool. If someone likes or follows your business, it's because they're interested in hearing from you on some regular basis. It's important that you have a routine schedule for your blogs, tweets, and postings. Keeping your fans and followers up to date on what's new and happening with your business or industry will keep them engaged with you and keep your brand top-of-mind.

What have you done to monetize your social media marketing efforts?


By Jennifer Pricci
www.jenniferpricci.com
jennifer@jenniferpricci.com

Inbound Marketing vs. Outbound Marketing Infographic

Why Is It Important to Evaluate Your Competition?

As simple as it sounds, competition is the key to short-term success, while innovation is the key to long-term success.

To succeed in today's marketplace, you must differentiate from the status quo by offering products or services that are more innovative or competitive in terms of quality, image or price.

It is important to seek information about your competitors and use to innovate. By doing so you will be able to:

• Evaluate your own performance against others
• Identify and exploit competitors weaknesses
• Address competitor strengths
• Get new ideas
• Identify new prospects
• Improve sales forecasting

• Stay strategic

There are also other benefits, which are arguably more important, but difficult to measure. Competitor intelligence helps you to:

• Reduce complacency and improve discipline within your own business
• Foster an acceptance of continuous change
• Respect that other suppliers have satisfied customers and reasons for it
• Create a recognition that the business must continually seek to improve

Here are some key questions you may want to begin with when analyzing your competition:

Who are your competitors?  There’s a little more to this question than meets the eye. You may find that you compete with different suppliers in the different product/service areas or markets in which you operate.

What do they offer?  Find out what makes up their entire product range or service portfolio. Of course you are more interested in the products and services that you compete with, but remember that they are making decisions about resource allocations to their entire portfolio.

What is their pricing policy?  Customers will usually consider carefully the price of your products or services in relation to your competitors. It isn’t always good to have a lower price. For example, if your price is lower, is your quality or are your costs also lower? If the price of your products and services is higher than other suppliers, are you providing additional customer benefits? Do customers recognize and value these benefits?

Who are their customers?  Consider the different types of customer groups that your competitors are supplying.

How do they promote themselves?  How are they attracting new customers? How active is their marketing activity? What does their marketing mix consist of?

How financially secure are they?   Company accounts can provide much useful information, and enable you to make direct comparisons.

What are their strengths and weaknesses?  You have potentially collected a lot of information about your competitors. Listing their strengths and weaknesses is a good way to summarize this information in a meaningful and usable form. Perform a SWOT analysis on yourself and your competitors. See: How to Conduct a SWOT Analysis

What is their business strategy?   If you understand your competitors, you will be able to predict what decision they are likely to make in a given set of circumstances. This insight is extremely valuable to you.

From all the information you have obtained, you can build a picture of the key characteristics of your main competitors that will enable you to make intelligent deductions about their overall business strategy. From their you can enhance your own offerings that are more innovative or competitive in terms of quality, image or price ultimately gaining marketshare.

Why Musicians Should Consider Google Plus For Online Music Marketing

Marketing music online isn’t an easy job these days. There are many places to be and a gazillion tools to use. With all the learning and managing required your head can start spinning pretty quickly and your precious time can evaporate quicker than Windex on sun-drenched windshield. But I think Google Plus might just help us with that.


At first thought Google+ looked like another take it or leave it ploy by Google to grab some attention away from the Facebooks and Twitters of the world. But after reading Chris Brogan’s Google Plus 50 post, I have changed my mind.

He goes through and points out how Google+ – along with some of the new features like Circles (more on that below) – will bring all of their stand alone tools like Picasa, Gchat, Gmail, etc together for a one stop social party. Which got even more weight a day later when Google announces is will rebrand Picasa and Blogger.

Add that to fact 400,000+ Android phones are being activate per day it doesn’t take a rocket scientist to see Google might have something here that is useful for music promotion.


Here is the part of the Chris’s post that really perked my interest:


“How long before we see our first Hangout live music “jam?” That’s one record button away from being supercool. And one “name your price” Google Checkout tweak away from being instant micro content for sale.”

How cool would that be? Monetized (or not) push button live shows – with all the promotion tools included – at your finger tips. Almost makes sites like Ustream and StageIt sound complicated.

Circles
CDBaby also recognized the potential of the Google+ Circles feature in a post.  They bring up a great point:


Basically, you can put your friends into different categories and communicate with each of them separately. For most users, circles would probably include “family,” “close friends,” “acquaintances,” “work associates,” etc. But for musicians, this function could have some added benefits if account holders are allowed to create circles for in-town fans, fellow musicians, booking contacts, studio owners, journalists and bloggers, etc.


That will be pretty slick. How many times do you want to share links, vids or chit chat with other artists about music marketing on various social networks but don’t because you don’t want to share that conversation with your fans and vice-versa?

Being able to segment conversations means you may not have to have two Twitter accounts or multiple fanpages to log in and out of.

The Tip of The Iceberg
And really that is the tip of the iceberg. I can’t get in to try out Google+ at the moment to really poke and prod but you can bet I will be in there playing around the minute I get a chance. Stay tuned In the meantime, go check out Google+ for yourself. And I strongly encourage you to go and read Chris Brogan’s Google Plus 50 post and check out the conversation going on in the comments because he goes into way more depth than I have time or first hand knowledge to here.

Oh and as a side note, Google getting bigger and better is kind of freaky. Hell, between my email, my reader, my phone, etc, the conspiracy theorist in me knows they have a crap load of my information. But [fingers crossed] hopefully it is much ado about nothing and I can reap some time saving and fan finding benefits of pretty innovative thinking on their part.

What about you? Do you know something I don’t? Will you use Google Plus?



By Jennifer Pricci

Online Audience Development for Content Owners

It is true when they say content is king. But "relevant" content is key to success. All publishers need to make sure they have the right content for the right people in their audience.

How is the online content consumed?

A pull strategy (bringing people to your online content) requires SEO / SEM or display advertising to acquire the audience. This can be expensive.

A push strategy (delivering content to the people) is likely going to be key in getting cost-effective results and ROI. The best way to do this is delivering relevant content in a timely manner via email. In this case content is targeted to individuals based on their preferences and behavior.

Here are some more on some /pull techniques:

• Search engine optimization and search engine marketing
  Seems obvious, but how many publishers do this? If you publish media in a given space, the huge number of topics that your publication or Web site covers makes SEO/SEM a totally different challenge.
• Co-registration
  This is easier said than done for publishers that sell advertising, but basically the idea is that anytime someone signs up for an e-newsletter subscription on another Web site that's topically related to your Web site, you negotiate a relationship whereby your newsletter subscription is offered as another checkbox on that other Web site's e-newsletter sign-up form. Not surprisingly, Marketing Sherpa uses this tactic on a lot of marketing vendor sites. One advantage: They have a paid content model, so there's no conflict of interest. I'd like to see an example of an ad-supported publisher doing this with suppliers in their space.
• Landing page optimization
  I know most publishers aren't using this technique. The idea is that the very design and layout of the sign-up page (for our purposes, called the landing page, the place where the moment of truth occurs, when readers decide whether or not to opt in to your site, newsletter, magazine, advertiser white paper, etc.) greatly influences the number of readers who "convert" or complete the form. By testing different versions of the page, you can increase conversion by up to several hundred percent.
• Tracking/Analytics
  This is the adroit use of Web analytics programs to give you feedback on metrics that are meaningful to publishers. How many people subscribed to which e-newsletter products, and which were the most effective sources of traffic, both internally and externally? If you're doing paid search, which keyword groups yielded the best ROI? Which should be scrapped? Anyone doing paid search without tying it to some ROI metric is throwing their money down the drain.

Do you have a system for determining the relevancy of your content?




By Jennifer Pricci