Archive for October, 2007
Trusting word of mouth in Asia
Oct31
Posted By Charlie Pownall

B-M has released a new survey indicating that ‘e-fluentials’ (active and involved individuals who make up around 15% of internet users) in the US are increasingly concerned that hired third parties are leaving biased opinions on consumer web sites.

As opinion leaders, e-fluentials shape many others’ perceptions of brands and products, so their concerns over diminishing trust in the online environment might be considered a harbinger of things to come.

On the surface, such a theory goes against the grain of received wisdom - after all, the internet is super-charging world-of-mouth, that most trusted and impactful of all forms of communication according to multiple surveys (see here, for example), and online consumer opinions are regularly rated as more reliable than other types of marketing, notably advertising of almost any description.

A combination of factors may be eroding this trust, from the open access models adopted by MySpace and other social networks that have made them manna to paedophiles to knowledge that marketers are pulling all sorts of tricks to gain people’s attention, some of them below the belt.

Yet, according to a recent Nielsen survey, this scepticism has yet to reach Asia, with users in seven Asian markets most likely to trust recommendations from consumers, notably Hong Kong, Taiwan, Indonesia, India, South Korea and the Philippines.

The study also suggests that Asians (especially South Koreans and Taiwanese) also place a high level of trust on consumer-generated content such as blogs - despite the persistant popularity of bulletin boards, where users are often anonymous and which account for higher levels of traffic than blogs.

One reason for this may be Asians’ respect for authority, a common cultural trait across the region, another could be distrust of print and broadcast media in many markets, which is seen as little more than government propaganda.

Yet another might be the comparatively high levels of security and privacy provided by homegrown social networks such as Cyworld and Mixi, where users can communicate safe in the knowledge that they won’t be pestered by unwanted intruders.

All the more reason for high levels of transparency and authenticity when planning online PR and word of mouth programs in the region.


Twittering not just for fun
Oct24
Posted By Felix Leander

Interesting post on GigaOM about the L.A. Fire Department using Twitter (microblogging tool) to send updates on the fires path in California. Apparently the traditional media cannot keep up and users are demanding that information be available much faster. The post also mentions Google Maps mashups being created to track the fires.

I think Alistair Croll sumarizes it best: “In this era of personalization and mobility, it’s great to see an online community putting the latest tools to work. This combination of portable devices, mashups, and real-time status updates gives us a warning system for the masses.”


A Follow-up to Radiohead
Oct23
Posted By Felix Leander

Earlier this month Erin wrote a post about Radiohead and the fact that the band let their fans decide how much they each would pay for the new album (downloaded directly from the Radiohead website). Talk about putting a lot (almost all) your trust in the hands of the consumer.

So will Radiohead be playing on the next street corner to make up for their democratized album? Highly unlikely – so far the band has sold 1.2 million albums at $8 each ($9.6 million in one week); mind you there is no middleman involved here either. Not too shabby!

Have a look at threadless – this company has placed complete trust in their community as well. Basic and brief overview: artists submit t-shirt designs, community votes, only winning designs are printed – thus usually insuring that all inventory is moved. Obviously there are incentives for both the designers and community – threadless sure has the pulse of its people.

These are definitely two great examples of embracing your fans, trusting them, and creating a relationship that is deeper than most.


Consumers trust online reviews. Of course they do.
Oct12
Posted By Erin Byrne

E-marketer reported on a study conducted by the Deloitte Consumer Product Group that indicated that consumers are accessing and trust consumer-generated product reviews. The data is very convincing, indicating that 99% of respondents find consumer-generated reviews somewhat or very credible. However, only 62% read consumer-generated reviews.  I find it surprising that that 99% find the information credible but only 62% actually access in the information, but either way 62% is a big number. The eMarketer article states, “More than eight in 10 respondents in the Deloitte study who read consumer reviews said that the reviews had affected their buying intentions: either they became more determined to buy the product or they changed their minds and bought a different product altogether.”

As if we needed more proof, this is yet another demonstration of the big stick that consumers now carry, and further proof that marketers need to participate in online conversations with consumers.  Knowing that online reviews are influencing other consumers makes them a critical source of marketing data.  Talk about immediate and actionable feedback. Marketers need to track online feedback, and have a great opportunity to use it to facilitate real-time branding and even impact product development and potentially business operations. CPG companies have it pretty good being able to get this feedback.  I wish we had a system like this for agencies!


Orale YouTube
Oct12
Posted By Felix Leander

YouTube continues to localize its presence throughout Latin America, yesterday YouTube Mexico was launched. One of the more famous videos coming out of Mexico on YouTube was Edgar, so it was only appropriate from him to welcome Youtube to Mexico. Several copycats have popped up such as BuscaTube, notice logo; it was only really a matter of time before YouTube would come in. I wonder what Latin American country will be next: Chile, Argentina?

The launch of YouTube Mexico definitely opens more advertising / promotional opportunities for marketers - I wonder what company will be the first to use it and how. At the moment I can only see a English Smirnoff promotion (US IP address).


Lessons in Trust from Radiohead
Oct1
Posted By Erin Byrne

If you are a Radiohead fan (who among us isn’t?) you have probably heard by now that they are releasing a new album on October 10th.  It can be ordered online only at the Radiohead Web site, and is delivered either via download or a beautifully packaged disc-box.  So what?  Bands offer pre-orders on their Web sites all the time.  This situation is different because Radiohead has set the price to purchase the album via download to “up to you.”  That’s right - it’s up to you.  The band has not set a price for the download, choosing to leave it to fans to determine the value to them individually.

I won’t get into Radiohead’s point of view on the music industry, as I don’t even know enough to be dangerous.  What I do know, however, is what a great representation of trust this is.  We talk to clients about the need to trust their brands, trust their messages, and trust their consumers due to how influential consumer-generated media is in today’s digital communications landscape. Companies need to trust that they can participate in social media, and that their reputation will protect them when needed.  Radiohead clearly trusts their fans, moreso than the industry executives who should be there to protect them.  I hope this works out for Radiohead because it will make a great case study as to how good things can happen when you are courageous enough to trust those that matter most.

And, if you are a Radiohead fanatic like I am, take a look at the song list and listen to some clips. Can’t wait for the 10th!


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