Richard surmises that businesses want to do more, but do not know how!  He even suggests that the lauded ‘social media experts’ will continue to be hired because corporations need them!

Jeremiah suggests that businesses using social media well are companies that have the ‘right’ culture.

There is some discussion about ROI, and how Dell is measuring the return on social media activity as it translates to the bottom line.

In general, the panel covers some interesting issues confronting businesses looking to adopt social business more, but the headline for me is that business spending in social business is only projected to increase by a single digit amount in 2011.  That is less than 10%…

The Royal Navy have previously launched one of the most innovative digital recruitment campaigns we have yet seen when they launched the iphone app “Engineer Officer Challenge” which was a clever use of game mechanics, social gaming and the iphone platform to help sort the ‘men from the boys’ and find the best and brightest for Officer Training.

The British Army have learned from the success of the Royal Navy when in 2009 they launched the “Start Thinking Soldier” campaign.  This campaign integrates TV, the Internet and gaming in a very unique and engaging way.  The challenge for the organisation was to make the very real world of infantry operations in Afghanistan attractive to a recently graduated, somewhat lazy and skeptical 18 year old.  The British Army believe that by speaking in a language that they would understand (digital and video gaming), that new recruits would take a greater interest in joining the Army.

As part of a wider campaign that needed to attract 15,000 new recruits every year, the results have been impressive.  Since the launch in March 2009 the campaign has generated the following interest:

• 604,038 site visitors,
• 52,336 registrations,
• averaging around 10 minutes per user on the website

With the British Army now reducing its recruitment effort, and looking to make many of these soldiers ‘redundant’ in 2011 to reduce costs, it is unfortunate that such a great campaign is coming to an end.  This is a very real challenge for Defence Forces around the world.  The ‘smoothing’ of the recruiting curve is a very real challenge.  When conflicts break out, and a Defence Force needs to recruit large numbers quickly to build capability, how do you attract the attention of the right people and get them to sign their lives away (literally).

The next challenge facing the British Army is keeping in contact with the people they have had to let go…in readiness for the next conflict.  After many years of training and development, it would make sense for the British Army to refer back to the past members if there is a need for their skills in the near future.  Will we see the rise of the Defence Members Alumni; where digital technology and social networks are actuated to keep the people ‘in touch’?.

It will be intriguing to watch these tactics unfold, as the Australian Defence Force and the Department of Defence in the USA face the very same issues…

Why have movie sales stagnated – bad content, lives too busy, home cinema, or a combination of these factors?

10 years does not see so long, but these numbers reminds us how much the world can shift in that time!

(thanks to Stephanie Fox at iO9 for this great graphic)

Advertising is dead…mostly.

Many business models that are underwritten by advertising are finding it difficult to increase profits and growth (except for online advertising models, like Google, where growth continues).  People are turning away from television and print advertising, because they can, and because they no longer trust the advertisements or ‘bought’ media in general.

Instead, people are turning to other people, and online recommendation from often complete strangers to help them make purchasing decisions.

This post is not about the death of advertising (it just asks that we accept that the model is under siege), it is about the decline of traditional revenue streams in the business of sport.

This summer in Australia, we have played host to the Ashes, a 130 year old tradition, where the National cricket teams of England and Australia play for a trophy known as The Ashes. To date, it looks like the Ashes will be retained by England, as they are poised to take a unassailable 2-1 lead in the series.

There has been a lot written in the Australian press about the Australian team, its leadership and the national selectors, but little has been written about the business model that is Cricket Australia?  In general, the Cricket Australia business model has three main forms of revenue;

1. ticket sales
2. television rights
3. advertising and sponsorship

It is no secret that ticket sales are down across the sport in general (especially in the one day and test versions of the game), with the recent advent of Twenty20 cricket providing a much needed shot in the arm for ticket sales.  The other two revenue lines; television rights and advertising/sponsorship also now appear to be under threat.

Television stations pay a lot of money for the rights to broadcast the matches, and attract advertising revenue in return.  But with advertising in decline, and large corporations not willing to pay hefty advertising fees, television stations are having to negotiate harder on the broadcast rights…and so Cricket Australia is seeing another of its revenue lines under attack.  In addition, sourcing key sponsors for the summer is becoming increasingly difficult.  This year, KFC and Vodafone are the lead sponsors, in what has transcribed in to a very poor summer of cricket advertising (Mumbrella asked the question).  It would be interesting to see any post campaign analysis on the KFC and Vodafone advertising blitz.  We believe the numbers and the return on investment (ROI) would not be flattering for all involved.   The wheels appear to be falling off.

So what is the solution?

The solution may not be simple, and it may take some years to rectify, but there are baby steps that could be taken.  There is no doubt, that social media and digital marketing are changing the way industries and brands interact with and influence people.  More than simply having a nice website with a re-run of the television commercials, can Cricket Australia turn to digital channels to help turn around the sinking ship?  Some simple ideas might include;

• pick the team – one website where all players (all state players) statistics, profiles and details are displayed, allowing people to interact and select their Australian team before each test series/match,
• become the coach – other sports use this well, where people are allowed to pick their Australian team, and manage it online, and the team with the greatest success (judged by averages throughout the summer), are rewarded,
• sponsor a player - where organisations (or individuals) can sponsor an individual player for the season in an online auction system, and donate a portion of these funds to a nominated charity?,
• join the team – could a campaign similar to the Tourism Queensland campaign be a success, where a blogger or photographer is selected to spend the series with the Australian team, and tell their story online from inside the Australian cricket team.

These are just four simple ideas that could be explored by Cricket Australia to bring the sport back to the grass roots, and generate additional interest and revenue for the organisation.

Well, these trends highlight for use where the opportunity lies for organisations (and individuals)…and how this can be translated into great ideas online!

Trendwatching, recently released their findings and thinking on what the trends in 2011 will be.

Not surprisingly, they predict that social networking will continue to morph and evolve into other areas of our lives. We can expect more group buying and location based deals, (think foursquare and facebook places, but integrated with location based offers available for a limited amount of time).   Trendwatching have spoken for some time about the status symbols that will define who we are,and how people will share this status with more people to demonstrate their own ‘personal brand’ and preferences.  This will see more consumers broadcasting, compiling, commenting, sharing and recommending content, products, purchases, and experiences to both their friends and wider audiences. Understandably (we are seeing more and more of this) is that people will offer unsolicited opinions to their online friends about places they visited, restaurants they ate at or products they purchased. In 2011, everyone’s going to be a critic. Also we can expect more status symbols, like luxury goods, shaping our buying patterns. We all want to be perceived as special.

Most interesting for us was what Trendwatching refer to as owner-lessness, where people will choose not to buy, instead they will start to rent and share products and services instead. Better for the wallet, better for the environment.

In summary – the 11 trends they see as emerging in 2011 are;

1. Random Acts fo Kindness (RAOK) – not just free, but caring!,
2. URBANOMICS – think local, act global…cater for global citizens,
3. Made for China – products and services for emerging markets,
4. Online status symbols – feel part of a community, and show it!,
5. Wellthy – not just about money, but how good you feel,
6. Socialites – word of mouth…even moreso,
7. Pricing pandemonium – group buys and flash sales everywhere,
8. Emerging generosity - India and China will give more back to the world,
9. Planned spontaneity - mobile will drive meet ups of like people,
10. Eco-superior -my product is better for the environment than yours!,
11. Owner-lessness – rent, don’t own..

Other trends that are expected to emerge more strongly in 2011 include the notion of retailers and stores offering products, to extend their offering into advice and learning.  Clever stores will look to engage more deeply with customers, and become more involved in their lives.  As an example, lululemon stores offer free yoga on Thursday and Sunday mornings around Australia…and this translates directly into consumer loyalty and word of mouth (not to mention free foot traffic).  As a result of the GFC, we will see people be more thrifty, and considered in making purchasing decisions.  This may see increased pressure on margins for retailers and people start to understand and take interest ins ‘how much’ a product or service really costs.  In line with this, is the interest in “grow your own” – not just grow your own food or flowers, but also people building their own products after sourcing the inputs themselves….direct from the factory.

No matter which way you lok at the emerging trends, it is clear the last few years have impacted greatly on people psyche, and their buying/decisions patterns. Organisations that are thriving in this period, are those that are using some old world practices (like free yoga), but using the internet and social technology to help spread the word, and convert the interest to sales.  There is no doubt that technology that makes people feel special, and involves them in the purchasing process is going to be imperative for retailers and brands that look to be more profitable and successful.

What do you think are likely to be the biggest consumer trends in 2011?

We were wrong.

There were several pearls of wisdom that Andrew shared, that were a fresh perspective on what Groupon is, and what he wants it to become. In many ways, this vision is best illustrated, when Andrew responds to Charlie’s question “so what next” with a laconic “we want to make self-driving cars, I don’t know how we are going to do it, but we sure are interested in doing it”.

And that’s the point…Andrew Mason and Groupon have a BIG vision. They want to change the world. You say “yeah I have heard it all before with Microsoft, Google, Apple…blah blah, change the world blah”. but this is the thing; those companies are actually changing the world.

Andrew Mason and Groupon have a very simple vision, with a focus on the tactical execution to achieve this vision. Their tactical execution is what we see as consumers; Groupon, the group buying coupon site. But behind Groupon, there is so much more, as we learnt in this interview. When Andrew explains the motivation for Groupon, which is really about helping ‘Mom and Pop’ businesses market themselves and experience success, the broader business model starts to make sense.  Andrew talks about helping consumers get out and experience their local area, and their local shops, and discover the great products and experiences that can be provided by their own local businesses.  This really is a beautiful and simple vision.

At the centre of this vision is the ‘hyperlocal’ thinking of connecting communities and helping communities to thrive.  Mason reminds us also, that his idea is really not so unique, but what is unique are the market conditions, and tools available to help a business idea like Groupon explode (and it has exploded, now officially the fastest growing business in history – signing up 3 million subscribers per week).  The market conditions where communities matter, and corporations have become the greedy evil guy…tools like twitter, facebook and smartphones have all come together to produce the perfect storm…and Groupon is the shelter from this storm.

So, if this idea really is so simple, then why didn’t any of us think of it?  The answer to this probably lies in our intuition and connectedness with the meme’s and sentiment that exist in our local markets and local communities.  Those people who are the closest to this ‘vibe’ are the most likely to generate the great ideas.  Then there is the execution; and Andrew talks candidly about focus and not trying to do too much (hint hint).

To demonstrate the power and resilience of Groupon’s vision and their commitment to this cause, you only need to take a minute to understand why they declined the $6bn offer that Google made last month.  Mason says they are only interested in deals that take them to the place where they want to go; and that is where the world is a better place through connected communities where everyone who can provide a great local experience thrives and prospers.

Sounds simple?

(we cannot embed the video – so watch the interview here)

Google claims that AdExchange delivers publishers an average revenue that is on average 130% higher than selling their inventory into an online ad network.

Matthias Kunze, director of publisher monetisation for Google in Japan and Asia Pacific, recently told Mumbrella: “We are pretty excited about launching this in Australia. It’s one of the most advanced markets in the world along with the US and the UK, but online display advertising is still a very complicated process. It’s very difficult to buy an online campaign.

“So some advertisers either do not bother at all or do not publish as many ads as they might.”

Despite the concerns about privacy and some complications around ‘auto-refreshed’ ads in the Australian landscape, this is still a move into a direction that business in Australia should welcome.  With some understanding, this allows organisations to plan their digital ad spend and placement a little more closely.  For too long, this ‘art’ has been left up to agencies and brokers.  Whilst the ‘practitioners’ (agencies and brokers) may continue to conduct the campaigns, organisations will have a more transparent view of ad placement, pricing and effect.

The film attempts to understand the essence of influence, what makes a person influential.

Written and Directed by Paul Rojanathara and Davis Johnson, the film is a snapshot of New York influential creatives (advertising, design, fashion and entertainment) who are shaping today’s pop culture, and is a unique approach to film making which combines the documentary style and the online experience.

Influencers is a short documentary that explores what it means to be an influencer and how trends and creativity become contagious today in music, fashion and entertainment.

The film attempts to understand the essence of influence, what makes a person influential without taking a statistical or metric approach.

Written and Directed by Paul Rojanathara and Davis Johnson, the film is a Polaroid snapshot of New York influential creatives (advertising, design, fashion and entertainment) who are shaping today’s pop culture.

INFLUENCERS FULL VERSION from R+I creative on Vimeo.

• brand development
• digital marketing strategy
• design and development, and
• measurement and management

The team at buzzle believes that digital is the most effective way to reach out and engage with people, attract their attention, involve them in your business and capture their imagination.

We believe people are tired of being talked at by one-way campaigns, and that that people want to be involved, and want to be part of great ideas that they can share and interact with.

Our campaigns are intended to attract the attention of customers and capture their imaginations through ideas that inspire and involve.

We do believe that people do talk to other people, and that a small number of the right people can change the world and make amazing things happen.

Our interest is in helping organisations do this online, by creating ideas and campaigns that generate buzz.

Our focus will be on emerging and ambitious organisations that recognise that digital is more effective, and understand that people are people before they are customers.

With over 10 years experience in digital, working with financial services, management consultancies, construction, digital publishing, real estate and events management, our core team have a broad hands-on experience in all areas of the digital mix.  By working with the best in the business across specialist areas such as multimedia, brand development and design, we work efficiently by only using the resources we need to get results. Regardless of the industry, we know one thing is true.

People talk…to other people.

We look forward to talking to you…