When details of the global financial crisis overtook the headlines in mid-September, consumers and brands began assessing their position in the economy and strategizing for the downturn. Retailers have reacted by announcing plans to offer deep discounts for the holidays, from high-end to mass-merchandise. Some have rolled out deals in advance of Black Friday. With reports of more and better deals from retailers and a bleak economic outlook for consumers, it would be natural to assume that consumers are hungry to take advantage of opportunities to save money. But will consumers tighten their belts so much that even deep discounts won’t get them spending?
Websites focusing on coupons and rewards historically prove to be popular places for consumers to learn about and share information on current discounts, but consumers didn’t rush to coupon sites in the weeks immediately following initial news of the economic fallout. In fact, traffic to coupon and rewards sites trends downward through much of October. As Black Friday nears, consumers are taking an increased interest in coupons and deals, shown by the graph below. Traffic to coupon sites is trending upward sharply in the first two weeks of November. The graph shows that nearly 21 million unique consumers visited a coupon or deal site during the week ending November 9.
While we don’t know what this means for retailer’s bottom lines and Q4 earnings, we do know that a growing number of consumers are online educating themselves about discounts and deals as the holidays approach.
Tags: black friday, coupons, discounts, online retail, sales
Several of my recent Buzz Tracker projects have included a close look at viral marketing or viral word-of-mouth and I’ve taken a specific interest in learning how word-of-mouth gets started and eventually reaches a viral level. Some brands fear viral word-of-mouth, like when a video of a Burger King employee taking a bath in the restaurant’s sink appeared on YouTube in August 2008 and quickly earned over a hundred thousand views. Despite any attempts at damage control by the brand, the video is still on YouTube and will remain there for the viewing public to see, even long after buzz about the incident subsides.
In contrast, an excellent example of a brand using viral word-of-mouth to their advantage is Louis Vuitton, the luxury baggage designer. A series of videos created by the brand with a focus on core values and the tagline “Where will life take you?” appeared on YouTube in early 2008 and has received several hundred-thousand views. Many consider the initiative a success, not only because consumers continue to watch the videos and pass them along to others, but also because revenue for the brand grew 14% in the first six months of 2008.
For every brand that successfully launches a viral marketing campaign, there are brands that are leery of entering the space and brands that try but fail. I have seen campaigns that I personally think are creative and interesting, but generate very little buzz and a disappointing number of hits. On the other hand, there is a long list of successful campaigns, but what specifically makes these campaigns reach a viral level? How and why do consumers first learn of these videos and what makes them want to pass along links and discuss them with others?
Many of the answers to these questions aren’t clear cut or “one size fits all”; however, brands that may feel overwhelmed should know that there are a few basics that should be at the core of a viral marketing initiative. While certainly not a comprehensive list, here are a few thought starters. First, the video should be highly relevant to issues or events that are key to the brand, such as a product launch or damage control for a high-profile issue or crisis. Second, the video needs to be sincere and authentic to the brand and what it represents. Third, remember that a video can have a long shelf life online; the face or brand image represented in the video needs to stand the test of time and be in line with the long term brand strategy. Brands should also keep in mind that if they fail to take the plunge into viral marketing, they may be left behind while competitors use CGM2 to their advantage.
Tags: online video, viral marketing, word of mouth
BusinessWeek recently revisited a cover story from the May 2, 2005 issue titled “Blogs Will Change Your Business.” The updated article looks closely at the predictions it made in 2005 about the impact of blogging on business and tells us what they got right and wrong. In 2005, the magazine predicted that mainstream media would “take over vast commercial stretches of the blogosphere.” We know they missed that one, with influential sites like Engadget and Techcrunch earning millions of readers. The magazine also failed to predict the emergence of other social media, such as Facebook, LinkedIn and Twitter, and the voice that social media would give both consumers and corporate employees.
Unlike in 2005, now both consumers and employees are networking online, often with each other. Corporate blogs are no longer just for executives and many executive blogs are viewed only as corporate PR. Consumers continue to voice their opinion about the products, brands and services they use, but now businesses have the ability to listen closely. In the end, the updated article is re-titled “Social Media Will Change Your Business,” but the new article is lighter on predictions. Perhaps this is a sign that even the experts are unsure what the future holds for the impact of social media on business.
Tags: cgm, social media
