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A few weeks ago, the folks at Nintendo dropped by Heather Armstrong's house for a Wii Fit party. Armstrong, who is better known as uber-blogger Dooce, invited 10 of her friends and later blogged the event. An added bonus was that Nintendo gave Dooce 5 Wiis along with 5 Wii Fits, to give away to 5 of her readers.
Here's where it gets interesting.
First, Dooce blogged that she loved the Wii Fit, and that Nintendo
wasn't paying her to blog about the product, or to give 5 sets away to
her reader. She explains that: I get approached to do
things like this all the time, but this is the first time I've done a
give away because this is a product I use, something in my house,
something I'd love to share with you. Nintendo is not paying me to do
this, and just to clear up some confusion, I would never accept money
to post about anything here. That's not how this website works.
Everything you see in my style section is something I have bought with
my own money or is a gift sent to me from one of my readers, a gift I
would have gone out and bought had I known about it beforehand,
something that fits right in with my aesthetic. I work very hard to
make sure that you can trust that what I say here is in no way
influenced by advertisers or corporations who are trying to reach a
bunch of eyeballs. Your eyeballs deserve as much.
She then announced that she would pick the winners at random from among
those that left a comment to that post. The contest would run for 2
days, at which time the comments to the post would be turned off.
When the smoke cleared, 42,232 comments were left for that one post.
Now
I'm trying to wrap my mind around what exactly the ROI is for this idea
of Nintendo's. The 'retail' cost of the 5 sets of Wiis and Wii Fits
they gave Dooce is around $1,800.00. In exchange, they got an product
endorsement from one of the most influential bloggers on the planet,
resulting in 42,000 comments. And the post itself has been linked to by another 40+ blogs,
so there's that extra exposure. And we know that the post was viewed
at least 42,000 times, odds are that it was viewed a minimum of a few
hundred thousand times.
All for a likely actual cost
to Nintendo of around $1,000.00. In exchange, Nintendo got a post from
one of the most popular bloggers on the planet, gushing about its
product. And oh yeah, the 42,000 comments.
Good or bad move for Nintendo?
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Comments
I can't see anything bad about this. I'd say Nintendo hit a home run.
It all has to do with the integrity of the blogger and the explicit disclaimer which lent immediate credibility.
On the other hand, if Nintendo a) had paid her and/or b) she failed to disclaim that fact, then a stain would be on the whole thing and Nintendo would be wiping egg off their face.
It's happened before and we all know the results of such unscrupulous marketing tactics.
This was done the way it ought to be and everyone comes out a winner.
Posted by: Paul Chaney | 07.15.08
Mack,
Good for the brand (Return on Involvement) but only sales data that measures how many of those 42,000 purchased the Nintendo products will we know whether or not it was good for ROI (Return on Investment). I suspect it will produce good returns in both areas.
Posted by: Lewis Green | 07.15.08
I am of the opinion that Nintendo made a good move using Dooce (Heather A.) as a marketing vehicle. According to my partner, Dooce is an honest blogger that is known to speak her mind openly on a variety of topics regardless of comfort / taboo or other peoples opinions. So having her praise the product and connect with Nintendo to do this is a valuable move for them. Her audience knows her review will be honest and who knows what kind of viral word of mouth effect this will have with people recommending the Wii or purchasing it for others.
At the end of the day a $1000.00 investment for Nintendo is probably a rounding error in their overall marketing budget in a given year.
Posted by: Paul Sveda | 07.15.08
Hard to imagine getting that kind of grassroots exposure any other way. Very savvy marketing move. As long as it's clean and above board, with full and honest disclosure...I'd call it brilliant use of advocacy marketing.
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Posted by: Alex Schoenfeldt, | 07.15.08
"Good for the brand (Return on Involvement) but only sales data that measures how many of those 42,000 purchased the Nintendo products will we know whether or not it was good for ROI (Return on Investment). I suspect it will produce good returns in both areas."
Lewis I added some calculations on this post today on my blog:
http://moblogsmoproblems.blogspot.com/2008/07/case-study-dooces-nintendo-wii-giveaway.html
The gist is, the linked site above claims that Nintendo makes $90.00 off each Wii set it sells. Since the cost to Nintendo for the 5 Wiis/Wii Fits is approximately $1,000.00, then Nintendo has to sell 11 Wiis from this promotion, to break even.
If just 1% of those 42,232 comments results in a sold Wii, then Nintendo's ROI for this promotion is 3,700%.
As you said, it sounds like this promotion will be a big winner for Nintendo.
Posted by: mack collier | 07.15.08
I agree that this is shaping up well for Nintendo, but the ROI is, as you obviously realize, difficult to calculate.
This is likely but one of many exposures a person has to a Wii promotion or positive WOM about it. Would it have been successful but for all the others?
Or, if a person is persuaded to think positively about the Wii because of this but waits to buy, does this particular promotion get some weight in the final purchase decision when he goes out to buy a Wii for Christmas after seeing a commercial?
It should, but it's a lot more work to measure that way.
Posted by: Cam Beck | 07.15.08
"This is likely but one of many exposures a person has to a Wii promotion or positive WOM about it. Would it have been successful but for all the others?
Or, if a person is persuaded to think positively about the Wii because of this but waits to buy, does this particular promotion get some weight in the final purchase decision when he goes out to buy a Wii for Christmas after seeing a commercial?
It should, but it's a lot more work to measure that way."
One other thing, IMO perhaps the most important thing, to consider.
Are moms that read Dooce going to be more likely to want to buy a Wii, because they see that Dooce loves the product?
I think the answer to that is pretty obvious. THAT is the real home run from this, the positive endorsement that Nintendo got from argubly the most popular mommy blogger on the planet.
Posted by: mack collier | 07.15.08
Hey Cam, I have not seen you 'round this neighborhood in a while. Welcome back. Or maybe I just have not seen your posts lately.
Posted by: Neil Anuskiewicz | 07.15.08
Bad, bad move for Nintendo.
They should just go back to mass interruption ads like everyone else. They’re totally ruining it for everyone by trying to start a conversation. Who do they think they are?
[A fake comment by Xbox and PlayStation marketers :)]
Posted by: Bill Gammell | 07.15.08
Having 42,000 people lining up outside your door hoping for "free stuff" isn't what I'd call a home run. It's what happens when a high ticket priced item aimed at teens is offered by a sweepstakes site "for free."
What percent of this group reads Dooce? Probably few. How many are going to convert if they're not one of the 5-in-42000 chosen -- that wouldn't convert anyway? I don't know, but I wouldn't hang my hat on a sizable number.
This feels like the "if we can get just one person out of a hundred in China to buy a Coke every day..." mentality.
"Free stuff available online" doesn't collect quality leads and doesn't qualify as much involvement.
But Dooce talking up a product in a genuine, authentic and not-for-profit way, on the other hand, is good.
Posted by: Stephen Denny | 07.16.08
I have some comments about the story:
Mack calculation about a potential return are amazing, but there sill be no prove that those sales come from this activity. On the other side 1.000 usd investment is worth anyway just because of the publicity it delivered. Another potential issue is about the method of the selection of the winners. Don't you believe that between the 42.000 responders there will be some discontent and some suspect about the winners? Maybe yes.
Even this is a good move, it seems to me not complete. I would have added a 10% off on the Wii price to all the people that may prove to have commented on the blog or provide them with a coupon with the same discount or for a free trial in a store chain via mail, after having collected their data. This may have added additional metrics to the operation.
Posted by: gianandrea facchini | 07.17.08
Gianandrea: how about giving the 42K people the opportunity to host parties of their own, if they can deliver a certain number of people and then pick the top 100 -- or have competing "parties" networked to play and compete against each other?
Don't get me wrong, it's wonderful that Dooce loved the product and she isn't under and obligation to "package" the party -- as a matter of fact, that would begin to look a bit staged, wouldn't it? -- but Nintendo could create real dialog and engagement with this idea.
Not a criticism at all -- just another nudge along the path. That's what social networks do!
Posted by: Stephen Denny | 07.17.08
Mack, IMHO it was a smart move on Nintendo's part. For a very small investment, 42,000+ people engaged with their product. Let's not forget that those commenters hoping to win the Wii fit talked about it to their network too. And as evidenced by my comment the conversations are continuing to happen. :-)
Posted by: Karen Swim | 07.18.08
And let's not forget that Wii availability is still limited. What good is that kind of traffic when you can't get the product readily?
Posted by: Eni | 07.18.08
A great move by Nintendo. To Denny, regarding the number who will buy it who otherwise might not - there's no way to know. But, I think it's reasonable to assume that some people who might have thought about buying a Wii but hadn't yet, entered the contest then, when they did not win, went out and bought one. Like a lottery, the whole concept of a contest gets users thinking about themselves winning and playing with the Wii. And, as any marketer can tell you, if the consumer associates themselves with your product, that is an important step in the buying process. Huge win at virtually no cost. Plus, we're commenting on it here, so even more positive publicity for Nintendo.
Posted by: Barry Graubart | 07.21.08