This year at the Digital CMO Summit an impressive line-up of speakers is set to take the stage. The agenda features presentations from Arianna Huffington, now of AOL, and leaders from Twitter, Jetsetter, Skype, Sprint, Verizon, Yahoo, ESPN and GroupM.
The theme for this year’s event “The Connection Project” will uncover new and exciting ways brands and their agency and media partners are connecting disparate data to uncover new insights, inform more effective marketing programs, and make stronger connections with consumers.
Below (Digital CMO Summit speaker) John Bell, Managing Director, Ogilvy shares a sneak peek into his session on the CMO’s Dilemma and some of the challenses CMO’s are facing.
What is the CMO’s Social Media Dilemma in 2011?
In a Nielsen Global Online Survey in 2009, the two top trusted sources for product recommendations were people I know (90%) and consumer opinions posted online (70%). Social media is expanding the reach of peer influence and has a greater impact on purchase decision than paid or traditional earned media alone.
This is a new form of ‘earned media’ and driving marketing organizations to re-think budgets, how they are organized, how they work with other disciplines, and what they must budget for their activity in social media.
CMOs will spend 6 percent of their marketing budgets on social media promotions in 2011. That will triple to 18 percent over next five years according to the Fuqua School of Business & AMA 2011 study. We are no longer talking about pet projects or single-market experiments. Global CMOs are trying to pivot from a series of unconnected experiments to actually operationalizing social media across the enterprise (see the Enterprise Social Media path).
7 Big Challenges
It’s not as simple as senior marketing executives finally “getting it.” CMOs and their immediate teams are faced with some organizational issues, capability gaps, and the unforeseen consequences of embracing social media marketing and communications.
They face 7 challenges which they must overcome to reap the biggest business value out of their use of social media. A McKinsey study from 2010 revealed that of the brands using social media in one way or another 20% of them were reaping 80% of the business value. That leaves a lot of business leaders scratching their head wondering if all this effort is really worth it.
Three of these challenges include:
The curse of the channel mindset – social media is not a simple new channel, and planning around that will not deliver the value you need. Chalk this up to one of those unintended consequences, but social media begs for us to plan around an integrated model that combines owned, earned, and paid media in a single effort to drive engagement (time spent + positive interactions), advocacy, and conversion. Simply put, that is not what our marcom machinery was set up to do. Talk about re-engineering!
Are we winning or are we losing – forget about ad equivalencies, forget about a single number that describes the value of a fan (for now), forget about some magic “social GRP.” We can measure the impact of social media-based programs now. It just takes work and a commitment to integrate with and even change your current measurement models. Suddenly, what seemed like the simple adoption of a Facebook strategy is challenging all of the proxy metrics we use for most everything.
Why does the employee soccer club have a branded Facebook page? – social network experiments have sprung up around the company and around the world. A proper audit on Facebook pages, alone, will reveal unconnected pages, groups and community pages all under the brand name. this leaves the consumer confused. It also reveals that there remains a purpose to good social brand management and that governance must be applied to protect the brand experience and value.
Kristen Renda serves as Marketing Manager for Compete. Since joining the company in 2008, she has been fully immersed in all aspects of Compete’s marketing programs; developing and executing both online and offline campaigns. Most notably, she plans and manages all company events including the annual Digital CMO Summit.