Social networking is a prolific tool.  Ya think? It continues to connect us to friends, products, services and information faster than anyone could have ever imagined. While social networking is now a fact of life, it has been been hailed as the holy grail of marketing, or at least one of them.  An interesting byproduct of social networking is the natural emergence of social search.  Yup, social search is just peeking its head, and the implications for businesses, products, and brands could not be more profound.

Your friends tweet, write and update their statuses on various topics. They also read tweets, status updates, blogs and retweets, or share links and other information with their network. And while Google is busy snapping up social search start-ups who include your friends’ content in their search from the broader web, for example if you search for “New York Restaurant” on Google, and your friend has a blog about “New York Restaurants” then your friend’s blog will show up in your search.  Not sure the relevancy or value of this type of search, but like a lion waiting in the bush, I have learned to carefully size up new technologies and their uses, so I am taking a wait and see approach before I go after the game.

Here is another way to look at social search.  Everyone is already doing it, although businesses may or may not be listening. “What’s a hot spot in Barcelona?” one of my facebook friends asked?  Another, “Who know a good Ridgewood area wedding dress tailor?” Yet another, “Can anyone recommend a good pediatric dentist?” And so on…so intra-personal network search is indeed taking something that is alive and well, and with the emergence of sites like FourSquare and facebook Places, social search happens as people eat, shop, and do, yes, as people do.  So how do businesses best leverage this fast moving consumer behavior?  Here are three sure fire ways to get your enterprise going:

1. Understand it’s about integration of your marketing – All of your marketing communications assets must work together, especially the web. Ensure that your web assets speak appropriately to the depth and breadth of your market as well as your products and services.  Note that today, you will need more than a website to compete, in fact if you have a website in the traditional sense, then you have a typewriter.  Your Mar/Com campaigns must engage the tools of the web, including apps, social networking, and location based web services.

2. Your Web Reputation is Your Reputation – So true, so dangerous, so full of opportunity. Understanding what people say about you online, and where they say it is crucial. This is a great opportunity to listen to your market, adjust, and engage.

3. Cultivate Web Brand Ambassadors – There are people who love your brand and who will gladly serve as brand evangelists.  Engage these folks, on and offline to help you grow your business’ influence.

My next post will be on social commerce…stay tuned.

Brands are on the decline in this economy. Even with the recent bounce in stock market, People are choosing value over brand loyalty and where they can get both, they will buy it.  According to the recent results of a comScore study on brand loyalty among consumer goods products, showing a significant decline in consumers’ allegiance to their favorite brands during the past two years, the percentage of shoppers who typically buy the brands they want most has steadily declined across the categories examined. In March 2010, less than 50% of shoppers reported purchasing the brand they want most.

Value is the name of the game in this “New Normal.” “The New Normal” was coined by legendary bond investor Bill Gross, in his June, 2009 outlook, referring to the new economic order in the aftermath of the most recent global economic collapse.

According to McKinsey Quarterly, “We are experiencing not merely another turn of the business cycle, but a restructuring of the economic order.” If you believe that, if indeed there’s a fundamental change in the people shop, then it would prudent for business to at least reflect on the new realities and at best, adjust their marketing plans accordingly.  For the record, I’m in the New Normal camp.

From web 2.0 and Social media, to advertising, public relations…but, let’s snap on the breaks here because I don’t want to drag myself on this post into promotional tools, but stay focused on on the what businesses are facing…

Everyone is doing it…

From Wallmart to Home Depot, retailers are slashing prices. They are doing it and saying in their marcom campaigns. Wachovia, Bank of America have changed their fee structures. Applebees, Red Lobster are pushing value dining options. Wall Street money managers like Edward Jones are working against the grain as well by touting long term approach to the market. So business is getting it right? Right?

Not sure about that, but based on my observations larger enterprises seem to understand the market, and more importantly the culture and psychology of the post crash market.  Yes, there is a post market consumer psychology, and it’s manifested by how they behave.  I am not sure that middle market business got the memo. Far too many businesses are still operating as if it was 2007.  Their prices and service have remained at 2007, but more importantly their expectations are unreasonably set for pre-crash markets. At the same time, their marketing strategies have somehow adjusted themselves to post market crash expectations. The scenario is we’re not going to adjust to market expectations, at the same time we expect spend less to grow our business…catch 22, ain’t it?

This past Monday I interviewed veteran Journalist, author, and cultural commentator TaRessa Stoval, managing editor of The Defenders Online. We talked about the changing face of the media and the medium and what that means to how we consumer, use, and interact with media.

You can listen to show by clicking here.

Many thanks to TaRessa for being on the show!

Writing a new post on “The New Normal.” Coming at you soon…

As technology continues to grow and the internet becomes a more common platform for business (believe it or not, many businesses still haven’t harnessed the internet), the amount of money spent on online ads has become, as you can imagine, fairly substantial. Although online advertising can be a more efficient way to target certain demographics than traditional media outlets, this does not always lead to greater results. According to a new study from MIT Sloan School of Management, the same search, and other technology, that has enabled advertisers to target particular audiences, such as men between 25 and 35 who work on Mac computers, is also creating greater online competition for the same audience, thus reducing profitability of advertising on any targeted web site.

If you think about it, this all makes all the sense in the world. And it isn’t enough that many online advertisers have only themselves to blame for fragmenting their own markets by hopping from one sexy technology or site to another, but now there is evidence that there is a finite amount of scree-estate available to compete for the attention of the viewer.

MarketingVox data suggest that the study’s findings take on greater relevance as vertical and hyper vertical ad networks continue to grow. Adify’s Vertical Gauge for Q3, brand advertising CPMs for various verticals continue to rebound from early 2009. Also, food CPMs are up 91% from last quarter and Real Estate CPMs are up 17%. As far as vertical brand advertising, both automotive and healthy living and lifestyle verticals contracted substantially.

Clearly this article suggests to advertisers and consumers alike that targeted ad dollars don’t necessarily create more efficacy or revenue, in fact, evidence, in this case, shows more targeted ad dollars are less profitable. It is critical that advertisers note the importance of integrated marketing strategies in their marketing communications campaigns…more to come.

So it’s been about fouryears since facebook redefined networking (MySpace fans, I do recognize that your site came first, but I’m on a roll here) and since, the world has come to see things just a bit differently. So here are some thoughts on what we have and have not learned about the new world.

1. Rush to fools gold – believe it or not, people still believe that you can get rich through social networking. This is Fools Gold 2.0. Yup, this is reminiscent of what happened with “the internet” about 15 years ago. The fact is, social networking takes time and work…one other thing, it’s not free. The medium may be free, but the work is not.
2. Who you tweeting to? – “I can get someone right out of college to do this stuff,” one of my current clients said to me when I was pitching his firm. “Certainly, you can.” I replied, “But will this person have the strategic background to build your network because if your network is not relevant, then there’s no reason to do this. Oh, and how are you going to keep your network interested in your firm.” Guess what? We got the account and the client is happy
3. Protect Your Brand – We now know that we need to protect our brands, products, and services on social networking sites. So it’s important that we secure these accounts even if we don’t intend to use them.
4. Your Network is Key – Building your relevant network takes time, but once it’s build it will serve you well, but only if you keep your network engaged. Are you measuring network growth? Are you measuring engagement? What are you doing for your network?
5. Social networking is the tip of the iceberg – It’s about integrating all the tools that the web offers and doing it well. Social networking is not a silo, it’s not an activity, and it must be a key part of your overall marketing communications strategy. And if it’s not, you’re probably dropping marketing bombs.

More to come.

I started my career working for legendary stock picker and investor Mario Gabelli. In my brief stint at Gabelli’s Rye, N.Y.-based firm, I learned much that has stuck with me to this day, including the basics of value investing. Value investing is about kicking the tires, doing your research from the ground up, and carefully evaluating a company and its stock based on its intrinsic value… before you pony up one dime for shares.

Value investing also looks at businesses in their totality and, just as importantly, over the long term. No flipping stocks, no short-term trades; value investors are overwhelmingly in it for the long run.

The era of managing quarter to quarter is over. If you’re in business, surely you’re in it for the long term, right? So your business, including your marketing approach, ought to reflect that reality. No one doubts Gabelli’s success, just as we all love to hear from Warren Buffet, the renowned value investor, pontificate about his latest corporate conquest. Both Buffet and Gabelli run their businesses the same way they invest: with an eye on value and for long-term success.What can we learn from these legendary investors about marketing and promotion? Here are four suggestions to include in your marketing plans that will deliver real value for your business:

Kick the Tires: Do your homework on marketing, including media. Not all media are created equal relative to your products, services, customers, and geographic service area. Take time to review all options before investing a medium. And because media companies are recognizing that we are in the age of engagement, many are providing advertisers with more venues to reach customers. They may include websites, networking opportunities, and direct mail, in addition to its core business offers. So do your homework on media and negotiate a good deal.

Avoid Marketing Bombs: Without a marketing plan, you’re dropping marketing bombs and wasting your hard-earned money. Recently, a CEO of a $500-million firm that sells telecommunications equipment said of his marketing: “Yeah, we got that idea, we tried it, and it didn’t work.” When I asked him about the context of that particular tactic within an overall campaign and why it did not work, he replied, “What campaign?” A tactical approach to marketing is far less effective than a strategic one, so invest in and employ market-driven strategy. Then measure your strategy in its entirety; don’t simply examine one tactic, no matter how important.

Know that People Buy From People: Bring your business out of the office. Target trade shows that have a close affinity to your firm. Investing in trade shows goes far beyond having a nice booth. It’s a great chance to network with other businesses, each a potential client. Trade shows allow you to measure yourself against the competition.

In addition, invest in opportunities to make personal connections, such as the simple act of taking potential clients to dinner. It may sound clichéd, but it’s the blocking and tackling that allows you to move down the field with consistency, and not the 60-yard “Hail Mary.” Very often, personal connections win more business than 9-to-5 sales tactics.

Do Good, Do Well: In the 1980s, American Express developed a unique campaign for their customers to help restore the Statue of Liberty. A penny for each use of the American Express card and $1 for each new card were donated to the Statue of Liberty Restoration campaign. In four months, $2 million was raised and, more importantly to American Express, its transaction activity increased by 28 percent. So integrating social causes into your marketing strategy will surely allow you to “do good”—while doing well.

PLAN FOR THE LONG RUN: The above are value-based tactics that should be included in your overall marketing plans. Don’t rely on one approach. Delivering value through marketing is ensuring that you integrate your tactics with business-driven strategy. So, if you agree with me that we’re in a new era of customer engagement, you’ll give your marketing plan a second look. If you don’t have a plan, build one around adding value to your business. And remember, that plan must deliver value to your market not just for now, but for the long run.

Here’s a brief interview with FIOS1 about social networking.

Last Wednesday’s train ride to DC was bumpier than usual, it breezed through the Philadelphia 30th Street Station when I decided to call my friend and journalist/writer/managing editor of TheDefendersonline.com and all around gal TaRess Stoval.  We chatted about my morning status update on facebook to which she replied, and then she asked me about my trip to the Capital. I told her I was basically heading there in search of business. I told her that I will also to talk to anyone who will listen to me yap about how build their social networking strategy through content distribution (as part of a larger marketing communications plan of course).  “Yeah, content is the new currency,” TaRessa hollered into my ear piece.  “You know what, that’s the title of my next blog, I’m stealing that..yeah, that’s right content is the new currency,” I replied.  So, now that I’ve given proper props, I’m taking it a step further, content and content distribution is the new currency. Here are three simple, but key thoughts…

Websites Are About As Obsolete Typewriters

Businesses put up websites, people engage in social networking. The Huffington Post, NPR, and some writers like Nick Kristof (who at the time of the writing of this piece has 118,937 fans) of the New York Times, deliver content on their websites, but engage readers on other sites by distributing the same content that’s on their website to other sites like facebook to reach readers, and listeners that would have otherwise would have never visited their website proper.  So clearly, creating content isn’t good enough, strategic distribution is vital.

Relevant Content Engages, And Invites

Businesses of all sizes must recognize that the social networking sites have done the work of aggregation, and now it is their responsibility to work with the golden opportunity in front of them. Frankly, no one cares that you have a website, people care about what they care about, so your business’ relevancy is about them, not you. Why should they join your group or fan your business? What will they get? Prestige? Coupons? Offers? Special content that no one else gets?  Insider scoops? Invitations to special events? Whatever it is, it must be relevant and frequent.  The frequency is important because it shows your network that YOU are engaged with them as well, which adds significantly to your online reputation.

Content Comes in Many Forms

Let’s not forget that Youtube is the world’s largest search engine, so utilizing video can be highly accretive to SEO and SEM. So integrating video, blogs, news articles and other forms of content, as long as it’s relevant, is the way to go.  Again, we’re vying to keep our network engaged through content.

Now, I am going to publish this piece, email it to my network, and share it with my facebook friends…because, content is the new currency!

Here’s a link to article about social networking in The Record by Joan Verdon. The article is also referenced below…

When North Jersey’s largest shopping mall, Westfield Garden State Plaza, was looking for a new way to connect with consumers, it turned to two marketing tools becoming increasingly popular with retailers — a Facebook fan site and a Twitter account.

For the past 10 days, the Paramus shopping center’s representatives have been posting news about sales and deals on the Facebook page, and sending out instant messages via Twitter.com about celebrity sightings and restaurant specials. Mall enthusiasts have been signing up as Facebook fans at the rate of about 100 per day. As of Monday at 10 a.m., the site had 1,067 fans.

“Social media is shifting the way we communicate with our customers,” said Lisa Herrmann, the mall’s marketing director. The Facebook site and Twitter account “allow us to send out information that is significant to our shoppers with real-time updates in a fun and engaging way,” she said. The mall plans to expand its offerings with fashion tips and shopping suggestions from style experts, and video clips of celebrity appearances at the mall.

The use of Facebook pages and fan sites has surged among retailers over the past year. A study released by Hamilton-based interactive marketing agency Rosetta in January found that 59 percent of the top 100 retailers had Facebook fan pages, and that the number of such sites doubled during the second half of 2008.

National department store chain Macy’s debuted a fan site in late June and already has more than 11,000 fans.

The return on investment for retail social networking sites has yet to be quantified, but the investment needed is minimal, although some sites have spent money for features such as interactive contests. Computer company Dell Inc. last month boosted the business credibility of social networks by announcing that it had made more than $3 million in sales through links to one of its Twitter accounts.

Marketing executives caution that malls and other retailers should have a clearly defined marketing strategy in mind before they jump on the Facebook and Twitter bandwagons.

“We haven’t surveyed retailers to see if they’re getting the ROI [return on investment],” said Adam Cohen, head of the social media practice for Rosetta. “But frankly, to set up a Twitter account and a Facebook page is not that expensive.”

The value of such networking lies in allowing retailers “to connect with their consumers in a different way,” Cohen said. The sites let companies build relationships and a sense of community with their customers, he said.

Retailers, Cohen said, need to dedicate time and effort to truly interact with online fans. “Otherwise, I think a lot of companies are going to be disappointed. Or they’re going to be measuring the buzz by how often someone comments on their page. They’re going to have a hard time being able to really attribute that to any quantifiable increase in sales,” he said.

“It’s very powerful if you do it right,” said Abe Kasbo, chief executive officer of Verasoni, a Little Falls marketing firm that has seen its social networking projects increase tenfold over the past year. “You can stay in constant touch literally on a daily basis with your clients and customers,” he said. “But the big caveat is you have to have a strategy and you have to do it right.”

The biggest mistake, Kasbo said, is launching a site and not maintaining it with frequent postings and relevant information. “It has to be relevant to the customer or they’re not going to hang out with you” online, Kasbo said.

Another potential pitfall with Facebook fan pages is any fan is free to post comments about the retailer’s news alerts, and those comments may be negative. The Plaza site has generated very little discussion thus far, and all of that has been positive. But some retailers have seen their sites hijacked by disgruntled shoppers or even their own employees.

On most sites, however, the Facebook fans live up to their name. The Target site, for example, gets daily postings by people proclaiming their love for the Minnesota-based retailer.

Westfield Garden State Plaza got a running start on building the fan base by launching it the week “Harry Potter” movie star Tom Felton (“Draco Malfoy”) appeared at the mall. His appearance drew 2,000 fans of the film series, and the mall used the event to promote its Facebook site.

The no-Sunday-shopping blue laws of Paramus and Bergen County don’t apply to shopping tweets and Facebook updates. Herrmann said the Plaza’s Facebook and Twitter followers can expect to get news alerts even on Sundays. This past Sunday, Plaza fans online at 6:21 a.m. could learn that the Tourneau store at the mall was offering a free pair of TAG Heuer sunglasses with any purchase of a TAG Heuer watch.

E-mail: verdon@northjersey.com