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Big news came from Chief Executive Mark Zuckerberg announcing Facebook Ads -- an ad system for businesses to present Facebook users with targeted ads in a social context, that encourages customers to share marketing messages with friends.
Zuckerberg told marketers at ad:tech New York yesterday day that "Pushing your message out to people is no longer good enough."
It's the social context that gives the messages impact because it encourages customers to share marketing messages with friends. It's the referral from someone you trust that makes the difference.
Twelve major advertisers plan to use the system initially, including Blockbuster, CBS, Chase, The Coca-Cola Co., Saturn, Sony Pictures, The New York Times Co., and Verizon.
Building on the theme of conversation with customers and prospects, a distinguished panel moderated by Stuart Elliot, advertising columnist of the New York Times, explored the development of social networking for building brands in the digital age.
Panelists -- including Executive VP of the Nielsen Company Susan Whiting, President of Integrated Media at NBC Universal Beth Comstock, and Co-CEO of Ogilvy and Mather Carla Hendra -- sounded a common theme that the elements that make digital marketing so powerful for strenthening brands are: engagement, interactivity and advocacy.
"We know our viewers and customers so well," Beth Comstock said, "that we know what they want before they know what they want. . . we just have to make sure to be polite about it."
In a nutshell, that may be the problem for Facebook and other social media ad vehicles: backlash from a what is perceived by most as an invasion of privacy.
Do you think this is the future of marketing?
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Comments
This all seems reasonable on the face of it but it seems like it could back fire.
If you intrude on the conversation with ads, what effect will that have? What does it mean to be polite in this context?
It will be interesting to see.
Posted by: Neil Anuskiewicz | 11.07.07
"We know our viewers and customers so well," Beth Comstock said, "that we know what they want before they know what they want. . . we just have to make sure to be polite about it." And this is why advertising and marketing, whether push or pull, struggle. Comstock's arrogance is laughable. Instead of believing she can predict what we want or need, Comstock should take a few moments of everyday to listen. Then maybe she will be able to deliver to our wants and needs.
Posted by: Lewis Green | 11.07.07
Roy, Facebook is a company using a data-driven approach (in this case targeted advertising based on accumulation and analysis of online behavior) to attempt to make money.
The future of marketing? Absolutely. We're entering a new data driven era where sophisticated analytical tools are driving more relevant interactions.
Posted by: Paul Barsch | 11.07.07
I definitely think this is the future of marketing. The more people who are involved in social media marketing the more they realize that this is what the world of marketing will embrace.
Posted by: jennifer jones | 11.07.07
Sorry if I did not say the leading marketers understand now more than every the importance of listening to customers.
Lewis: I did not mean to imply that Beth Comstock is not listening. In fact, although I did not say it in my short quote, she is investing big dollars at content producers NBC and iVillage to listen as never before to what customers want and need.
Posted by: Roy Young | 11.07.07
Roy, good post. Here's my take:
I’ve read the announcement about Facebook’s Social Ads. What are you thinking Mark Z? Did you ask your audience what they think about this? I know you asked your advertisers because they’re desperate to get real value out of the money they’re spending. (Full disclosure: Crimson posts ads on Facebook). I know you asked yourself how you can get more advertising revenue from your asset of 52 million members. But something is missing in this logic, and that’s value to the member.
I’d like to help address the question of: “Why would a member willingly help promote an advertiser?”.
Well I can think of four reasons, and I recommend that the advertisers who want to take advantage of social ads design their ads around these concepts:
1) Compensate members who forward ads. For example, “Earn Facebook points”,
2) Share the ad to help my friend. For example, “Here’s a job listing I thought you’d like”,
3) Share the ad to entertain. For example, “This is really funny, watch this”,
4) Share the ad to do some social good. For example, “Visit www.freerice.com and donate rice to the needy”.
To make this work, you have to provide value to your users. I sincerely hope that is a key part of Facebook's plan.
Posted by: Glenn Gow | 11.08.07