Comments on: Is Facebook the New “Word of Mouth” Marketing? http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/ Marketing Answers for IT Tue, 24 Nov 2009 10:20:12 +0000 http://wordpress.org/?v=wordpress-mu-1.0 by: Frank http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-734 Wed, 28 Nov 2007 18:47:18 +0000 http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-734 Amy, I think word of mouth or social networking is most effective when the referral source has a reason to recommend the product. Sure, we all like to be the source of a good recommendation our friends and colleagues will appreciate but when a company actively rewards those that refer them business it's a whole new ball game. Such a word-of-mouth strategy is heavily practiced by companies like DirectTV, Charter and others that offer cash rewards for referring new customers. We have done similar word of mouth campaigns for an industrial supply portal which I manage and have earned a number of new advertisers. Amy,

I think word of mouth or social networking is most effective when the referral source has a reason to recommend the product. Sure, we all like to be the source of a good recommendation our friends and colleagues will appreciate but when a company actively rewards those that refer them business it’s a whole new ball game. Such a word-of-mouth strategy is heavily practiced by companies like DirectTV, Charter and others that offer cash rewards for referring new customers. We have done similar word of mouth campaigns for an industrial supply portal which I manage and have earned a number of new advertisers.

]]> by: Amy Morrow http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-730 Tue, 20 Nov 2007 20:52:59 +0000 http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-730 Glenn - thank you for your post and insight. I think you bring up a good point and I agree with the four reasons you lay out. However, I think there is another reason members would promote an advertiser and it simply has to do with what products or companies are seen as trendy or popular right now. For instance, if you do a search for RedBull you will find various groups such as "Addicted to Redbull, Redbull Vodka Lover, Lost without Redbull, etc." Within the core of The Facebook demographic it is percieved as "cool" to drink Redbull which is why all these Redbull groups have a lot of members. With the core Facebook demographic it is all about being "in" and keeping up with newest, hottest products on the market and I think companies that understand that about this demographic will have a lot to gain from being on this site. Glenn - thank you for your post and insight. I think you bring up a good point and I agree with the four reasons you lay out. However, I think there is another reason members would promote an advertiser and it simply has to do with what products or companies are seen as trendy or popular right now. For instance, if you do a search for RedBull you will find various groups such as “Addicted to Redbull, Redbull Vodka Lover, Lost without Redbull, etc.” Within the core of The Facebook demographic it is percieved as “cool” to drink Redbull which is why all these Redbull groups have a lot of members. With the core Facebook demographic it is all about being “in” and keeping up with newest, hottest products on the market and I think companies that understand that about this demographic will have a lot to gain from being on this site.

]]> by: Glenn Gow http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-728 Tue, 20 Nov 2007 04:20:26 +0000 http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-728 I’ve read the announcement about Facebook’s Social Ads and thought "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. I’ve read the announcement about Facebook’s Social Ads and thought “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.

]]> by: Douglas Karr http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-725 Mon, 19 Nov 2007 23:08:09 +0000 http://myeducatedguess.blogs.techtarget.com/2007/11/19/is-facebook-the-new-%e2%80%9cword-of-mouth%e2%80%9d-marketing/#comment-725 Boy, I hope not! I find Facebook unmanageable... it's an application that allows your network to spam you with junk application and garbage invitations. I turned off notifications in it a few weeks ago and every time I log in I have thousands of events and stupid application invites waiting for me. It's ridiculous. Boy, I hope not! I find Facebook unmanageable… it’s an application that allows your network to spam you with junk application and garbage invitations. I turned off notifications in it a few weeks ago and every time I log in I have thousands of events and stupid application invites waiting for me. It’s ridiculous.

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