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123945779-Welcome-To-The-Fifth-Estate.Pdf 5th estate title:beyond dancing title 5/12/11 3:08 PM Page i Welcome TO THE 5th estate title:beyond dancing title 5/12/11 3:08 PM Page ii 5th estate title:beyond dancing title 5/12/11 3:08 PM Page iii Welcome TO THE How to Create and Sustain a Winning Social Media Strategy GEOFF LIVINGSTON Introduction by Adam Ostrow Washington • Baltimore Advance Review Copy Copyright © 2011 Geoff Livingston All rights reserved. No part of this book may be used or reproduced in any form whatsoever without written permission except in the case of brief quotations embodied in critical reviews and articles. Bartleby Press 8600 Foundry Street Savage Mill Box 2043 Savage, MD 20763 800-953-9929 www.BartlebythePublisher.com ISBN: 978-0910155-86-1 Library of Congress Control Number: 2011929516 Printed in the United States of America To my daughter, Soleil Maya Livingston, born on October 29, 2010 Contents Acknowledgements ix IntroductIon by Adam Ostrow 1 chApter one 7 chApter two 31 chApter three 55 chApter Four 79 chApter FIve 109 chApter sIx 135 chApter seven by Kami Huyse 161 AFterword 185 endnotes 189 Acknowledgements s always a special hat tip to my publisher, Jeremy Kay. AThank you for believing in me. Thank you Jennifer Goode Stevens, Bill Sledzik and Tom Livingston (yes, Dad) for editing. My business partner Kami Huyse, who drafted the chapter on measurement, deserves special gratitude. When in doubt, trust a subject matter expert! Adam Ostrow also made an invaluable contribution in writing the excellent introduction to Welcome to the Fifth Estate! Ike Pigott is a great friend and actually named the book after reading some draft material on my blog. What better way to celebrate the Fifth Estate then to heed its commentary—and reward it. My beautiful wife, Caitlin Livingston, was 4-9 months ix x Welcome to the Fifth Estate pregnant during the writing of this book. She, too, believed in me, and wouldn’t let me quit, even when I hit a wall. Finally, I am indebted to you, all of my friends, fans and followers who support me online. This book would not be possible without you. I hope you enjoy it. Introduction by Adam Ostrow y the end of 2009, fifty-eight percent of Americans Bwere watching TV and using the Internet simulta- neously. Among those that were doing so, the average consumer was spending 3 hours and 30 minutes each month engaged with both mediums at the same time.1 While that’s one quantitative way to look at an obvious trend in shifting media consumption habits that many have observed anecdotally for some time, here’s another: At some point within the next decade, there will be between 15-50 billion devices on our planet that are in some way connected to the Internet.2 At the time of this writing, that trend is probably showing itself most visibly in the living room with smartphones and 1 2 Welcome to the Fifth Estate tablets, or at the local cafe or in the car with the increasingly distracted people in our lives firing away texts and e-mails instead of focusing on (gasp!) real world conversation. But the trend is only at the beginning. The innovations we’ve seen in the last few years—from the rise of social media, to the increasing ubiquity of smartphones, to advances in wireless bandwidth—have set the stage for dramatic changes to take place in our culture, our media and the role of the corporation. With everything from cars to kitchens about to get con- nected to the Internet, a new way of thinking is required. The Like Economy It took the Facebook “Like” button just 8 months to find itself embedded on more than 2 million websites and applica- tions.3 While on one hand that helps solidify Facebook as the most dominant social network by a significant margin—and builds it a much bigger moat than leading networks before it— on the other it creates an important new reality for businesses. There’s a battle for mindshare on Facebook, and much of it is now being fought on content and e-commerce sites, where Likes equate to links in user’s news feeds that create exposure for brands. Similarly, within the walls of Facebook, Likes equate to popularity for the pages of businesses large and small. Already, we’re seeing this data applied to what to- date has been the largest source of traffic for most businesses: search. In October, 2010, Facebook and Microsoft rolled out an integration of Likes within Bing’s search results that gives preference to links that have been “liked” by your friends. Likes are starting to show up in other areas too. A number ©2011 Geoff Livingston www.welcometothefifthestate.com Promotion Within Your Community 3 of startups are allowing users to “check in” to television shows from their smartphones and tablets, and share their viewing experience with friends. One of those services —Clicker— scored a partnership with Facebook that allows them to make recommendations for what to watch, based both on your own viewing and Liking history, as well as data gleaned from your friend’s activities and conversations on the social network. The growing ubiquity of location services like Foursquare (and Facebook, with its Places product) has similar implica- tions to the Like button. As of this writing, Foursquare is said to be working on a recommendation engine that suggests venues based on your prior check-ins and places that your friends like. Every Company Needs a Content Strategy The new realities of the Like economy have only fur- ther increased the pressure on corporations to become content producers and gain mindshare within the social media ecosystem. While several years ago this meant blogs – or at least gaining influence with bloggers – today it means reaching consumers in their medium of choice (and choices are abound) with compelling content of your own. That’s why you see not just media companies like The Wall Street Journal and MTV embracing a service like Foursquare, but also retail brands like Gap and Radio Shack. Itis why you see the already clichéd Old Spice campaign being emu- lated (albeit with considerably less success) by companies like Cisco. And it’s why you see TV networks experimenting with entertainment “check-in” services and offering prizes ©2011 Geoff Livingston www.welcometothefifthestate.com 4 Welcome to the Fifth Estate for watching content and broadcasting about it, even though business models are still nascent to non-existent in the space. That said, the proliferation of media and entertainment options has created a whole new set of challenges. Organiza- tions need to be structured such that it doesn’t take seven levels of approvals to post a tweet (a reality at a multi-billion dollar corporation I won’t name here). Social media policies need to be crafted to keep employees nimble yet on message, but still not bigger than the brand they represent. And “influencer” needs to be redefined, looking within each medium—and within individual segments of that medium—to identify the most important people to reach. Advertising’s Evolving Role Some might think that advertising has no place in this environment, with everything from the 30 second TV spot to the banner ad being displaced by so-called earned media. In reality, the opposite is true. Because of the wealth of data and personalization options being developed, along with increased connectivity and a digital identity that follows us across platforms and devices, unprecedented opportunities for precision messaging will emerge for marketers. Early examples are abound. Twitter’s business model went from punchline to promising in a matter of months, with “promoted tweets” showing us what a cost per engagement (a retweet, a reply, or a click) model of advertising might look like. Facebook has demonstrated the power of friends’ sugges- tions, with ads accompanied by “likes,” as well as moved into payments and the lucrative world of virtual goods that many brands are now clamoring to get inside of. On the mobile ©2011 Geoff Livingston www.welcometothefifthestate.com Promotion Within Your Community 5 front, GPS-equipped smartphones are enabling unprecedented location targeting options in advertising, helping fuel one of the quickest creations of wealth in history with the ascent of Groupon. It goes much further, however. With TV and radio (through advances in wireless technology) becoming Inter- net connected, visual and audio advertising will move from a purely push model to both push and pull. For example, that means ads on television that behave more like ads on the web, with interactivity that lets you download content, make a pur- chase or share something with a friend. On radio, it means being able to sync your music or talk shows from your car to your mobile to your desktop, with advertising made much more precise based on your location and listening habits. The Fifth Estate What’s implied in all of this is that in the years to come, the multitude of choices for content and entertainment con- sumption will only continue to increase. Much like the advent of blogs and social media that turned the print publishing world upside down in the first decade of this century, Internet connected television and radio will provide consumers with virtually unlimited options in the second and create hundreds if not thousands of new media outlets. What’s so interesting about this shift is that much of the groundwork has already been laid and much of what’s to come is simply an extension of what’s already been built.
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