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Author: Leon Chaddock
I was one of the first to found a social media monitoring/analytics company in 2005. At this time I didn’t even know this is what the industry would end up being named. In fact when I started there was no Twitter or Facebook. I had outsourced to a team of developers and built some blog search technology, the plan was to use advertising as a business model.
I soon started to use this technology to research where I would go on holiday, what to buy, pretty much anything you could think of and it was at this point I realised the immense value in this social media content for businesses, and hence the dawn of Sentiment Metrics.
As I have grown this company from just me, to a dynamic team with offices in the UK and Australia, and over 400 clients through our own internal sales and partner network, it has been interesting to watch what has happened.
A couple of years ago I watched as acquisitions in this space began to kick off. SM2 were sold to Alterian for around $5 million. I had spoken to SM2’s CEO several times at this point, but I am yet to understand the reasons for such a low value sale. This felt very early to me and they isolated one of their biggest partners Meltwater, that soon moved on and left their platform.
Of late we have seen acquisitions of Sysomos and Scout labs for $20-30 million dollars. Most recently as everyone knows Radian6 was acquired by Salesforce for over $300 million, at a multiple of something like 15 times their annual revenue. Which is BIG…
So why is this happening?
Apparently there are now over 300 competitors to Sentiment Metrics, however only a few are enterprise grade, and of those few the majority of these have now been acquired, and for large multiples.
The reason this is happening is simple supply and demand. Enterprise companies are starting to realise the enormous value in the data we collect, and analyse and the value this offers in nearly every area of a business. They need to utilise this intelligence, and they need to do this now. For enterprise companies looking to offer and integrate these capabilities the problem is it takes a large amount of time and a high investment to build out this technology, so there only viable route is through acquisition. As Salesforce CMO Kendall Collins said, it would have taken at least three years for Salesforce to build the technology in-house, when discussing why they acquired Radian6.
I have managed to build up this company without VC and still retain 100% ownership which I am immensely proud of. In fact this is probably one of the reasons Nathan Gilliatt one of the leading commentators in this space now tips us to be one of the next acquisition targets.
So is this the end of the independent Social Media Monitoring Company?
I don’t think so, I think there will be more acquisitions in this space, but I think one or two will break through and become large $500 million companies in their own rights. Are we going to be one of these? I certainly hope so. We have the technology to do this, it’s whether we can scale our sales team to get us there, against the large teams of Saleforce et al. It’s an arms race and it’s getting interesting!
Social media can and should be measured. That was one of the key Barcelona Principles established a group of industry experts in partnership with the Association for Measurement and Evaluation of Communication (AMEC). The principles were set up to underpin measurement and evaluation and received industry-wide consensus.
The Chartered Institute of Public Relations (CIPR), one of AMEC’s Barcelona partners, has written a set of excellent guidelines for measuring social media.
CIPR CEO Jane Wilson explains on PR Week that “measurement should not just be about tracking, or trying to understand how influential any particular commentator or participant is. It is about identifying what conversations the organisation should participate in and understanding how engagement can help an organisation meet its objectives”.
One of the CIPR’s key assertions is organisations need to build on tracking the social space to identify the conversations to participate or start up. Metrics should be analysed to gauge the impact engagement has on business goals, which it defines as ‘outcomes’. Social buzz should be tracked and analysed as they can also be outputs of communications strategies and impact reputation.
From a brand perspective, monitoring and measuring social media is key to our clients who use social platforms to stay engaged with their audience. As we mention in our recent post, the upshot of sustained engagement for Rentokil has been a 146% rise in enquiries to deal with problem nests as a result of its Ukwaspwatch.co.uk social campaign. Proactive consumer engagement through social media has had a measurable & positive impact on their business.
Do you know what the outcomes of your social campaigns have been?
Research from communications agency Radley Yelder has found that many FTSE100 brands have not grasped the potential of social media. Just under 30% had a corporate Facebook page and 54 brands had a Twitter account. However, 22 of these just used the platform to communicate corporate messages.
So why have these brands been holding back? The agency’s head of digital Richard Coope commented: “The survey begs the question as to whether companies are really committed to open and trusted dialogue. The research strongly indicates that there is a level of caution when it comes to social media due to the uncontrollable nature of the medium.”
But, not all leading brands have been so hesitant. Marketing Week has had a look at the ways some companies use social media to listen to the natural conversation about their brand for an insight into their products and services.
It cites the case of one of our clients, Rentokil, which uses our monitoring, measurement and engagement solutions. Social media manager Alicia Holbrook commented: “We can use tracking of social media sites, forums and blogs to get a really good idea of what people are discussing and where pests are becoming a problem – there’s a really big problem with bed bugs at the moment, particularly in New York”.
For Rentokil, listening and participating in the conversation both strengthens customer relationships, and generates enquiries for its pest control services. But there is absolutely no hard sell. One of its most successful social media initiatives has been Ukwaspwatch.co.uk where people can post info on problem wasp nests. And, although it has not used the initiative as an overt sales pitch, enquiries to deal with nests have increased 146%. Our services help Rentokil measure and analyse the positive impact of social campaigns like this.
Consumers want brands to have a ‘human face’ and don’t want corporate participation to mean a loss of community – they don’t want social media to turn into marketplace. Rentokil shows that if the tone of social conversations is right, a brand can not only improve engagement, but add to the bottom line.
This sounded ominous.
Over the past week, Qantas has faced a social media backlash over the appearance of private pilot and A-lister John Travolta in its new air safety video. According to Pop Eater, the airline’s cabin crew were highly critical of the campaign and described the video as ‘tacky’ and ‘corny’.
We’ve run a quick analysis of the social discussion to evaluate how the story developed and gauge sentiment towards Qantas in the context of the video.
First up, the channel breakdown shows us where the discussion has been.
And, how the story has spread across different social platforms.
There were no surprises that Twitter captured the conversation and we were able to drill down to the topic cloud for microblogs.
There were two stand-out phrases. ‘John Travolta angers’ based on tweets and reweets of ‘John Travolta Angers Qantas Employees With In-Flight Video Appearance’, mostly by celebrity and movie gossip sites. Social media relates to tweets warning of a ‘storm’.
The news hit the forums mid-week and the most influential site was airport.yuku.com which mentioned that staff had ‘taken to anonymous posts online to discuss their dislike of the Travolta video’ with some calls for Qantas pilot de Crespigny to replace him. It also mentioned staff members felt demeaned by Travolta calling them the team, not cabin crew.
In terms of sentiment, the standout negative comments (11.4%) regarding staff reaction have been discussed. Wider comments claimed that the video was a bit ‘misleading’
But, an analysis of the positive comments (13.8%) has showed that while some crew were upset by the video, on balance the story had little impact on public perception of the airline’s safety. For example, responses to a piece on the Huffington Post included: ‘What is the noise all about? This is a very good safety video. There’s no difference between it and the many ones I have seen, well, except that it begins with a celebrity whom the Qantas crews are jealous of’.
If a crisis breaks and a story goes viral, any brand or PR agency needs to mitigate the situation. Fast. And remember, there are four helpful rules: monitor the discussion, listen & communicate, participate in the conversation and then follow up.
There have been a couple of recent examples of brands and PR agencies scoring spectacular own goals when it comes to engaging (read alienating) influential bloggers. A few weeks ago, fashion retailer Inditex found itself in the middle of an online spat over images of bloggers used by its outside designers for t-shirts sold by the chain. It missed a golden social media opportunity to run a design campaign with the bloggers onside.
But as always, some brands are innovating on social engagement and it’s always useful to look at positive examples. Saab recently hired expert blogger Steven Wabe to join its social media strategy team. Director of marketing Mårten Wahlstedt explained: “Engaging with customers through interactive channels and social media such as Facebook and YouTube is of the utmost importance for us. Social media play a major role in the Saab marketing mix, which is why we are keen to strengthen our expertise in this area.”
Brand innovation on blog content is one of the freshest digital trends according to Mashable. It cites the example of fashion label Tory Burch who hired Honor Brodie as editor in chief, a company first, to run its blog and help transform the brand. Brodie, who was editor at InStyle magazine, explains that the label’s website is now a place “where content and commerce work together in a very twenty-first century way.”
Meanwhile, Gaby Dolceamore has just won an online competition to join Levi’s social media team where she will build relationships with the digital community: “Having a network of bloggers and affiliates to represent all aspects of the brand could help it seem more attainable and attractive to personal tastes.”
Influencer outreach has been an integral part of Dell’s recent Trade Secrets campaign to promote its new business laptop the Vostro V130. Check out Neville Hobson’s interview with Dell’s Laura Thomas on the campaign run on the Dell SMB Facebook page and #tradesecrets.
Is blogger engagement important to your social strategy and do you know who’s influential in your industry? Research is key and we can help in providing metrics and human analysis to enable you to make an informed decision on who your influencers are on any social platform.
Months of speculation continue as to whether Google is planning to launch a stand-alone social network. Two words have been whizzing around the web – Google Circles – and there have been a couple of false alarms in the past week, including buzz that Google would launch its platform at South by South West (SXSW), the music, film and interactive festival in Austin, Texas. It didn’t.
At the weekend, O’Reilly Media founder Tim O’Reilly tweeted: ‘I’ve seen Google Circles, and it looks awesome.’ This has since been removed with O’Reilly stating it was “It’s not a product, per se, and it’s not a new social network. Just some research-y thinking about how you could better manage social data.”
Little has come from Google which has simply maintained it’s working on products that will be more social. The Next Web thinks it ‘has deployed ‘smoke and mirrors’, remaining quiet at a time when speculation is rife but is quietly moving all of the necessary parts of its service into place’. The website points to one of the moves by Google to delete private Google Profiles on 31 July.
The latest word is Goggle will launch its Circles platform on 11 May at the Google I/O conference in San Francisco. Will Google ever square its social media circle and come up with an innovative, distinctive network, that’s an improvement on Facebook? It’s still anyone’s guess what will happen. But the rumours continue.
If you’ve ever seen Newsnight’s Jeremy Paxman interview a politician then you’ll know that sometimes it can be hard to get a straight forward ‘yes’ or ‘no’ answer. Now the tables have been turned. The coalition is asking the public to vote in the referendum on the Alternative Vote (AV) on 5 May. Both the yes camp and no camp have launched their campaigns so it’s a good time to take a quick look at how the discussion in social media has been developing over the past seven days.
First up, where’s the discussion been?
Figure 1: Channel breakdown for the AV discussion- 18/2 to 25/2
Looking at the channel breakdown, it’s no surprise that Twitter has captured the conversation. The forums have also been buzzing and the most influential social source has been Amazon’s politics forum.
And, what’s everyone been talking about?
Figure 2: Topic cloud for the AV discussion- 18/2 to 25/2
The political stakes for David Cameron and Nick Clegg are high as the Prime Minister leads the no campaign and the Deputy PM leads the yes camp. We’ve drilled down from the topic cloud to gauge the sentiment around the two party leaders in the context of AV question. In terms of negative mentions, the cost of the referendum has been one of the key comment threads.
‘… If we hadn’t had to have Nick Clegg’s referendum on AV we would not have to spend at least £250m’. (Tweet by Charlotte Vere 24/2)
‘… David Cameron says AV is the wrong system. Well why did you introduce a referendum on it then? Wasting money and time’. (Tweet by HouseofTwits 18/2)
Almost 10% of mentions of Nick Clegg were negative compared with 4% for David Cameron.
Facebook and Twitter have also been two of the stand-out topics. Campaigners have been using the hashtags #no2av (3422 tweets) and #yes2av (3315 tweets) to mobilise supporters. The immediacy of Twitter has also been used to counter opposing arguments – in 140-characters.
In the long run, how influential do you think social media will be on the outcome of a referendum which, according to the latest polls, is too close to call?
Fashion retail giant Inditex, which lists Zara among its global chains, recently found itself in the middle of an online spat with bloggers over the use of images used by its outside designers for t-shirts in its stores. The designers used pictures posted by fashion and style bloggers for a series of t-shirts, which have now been withdrawn.
It was a spectacular PR own goal by alienating bloggers who are extremely influential in the fashion world and are often taken on as brand ambassadors, advisers, even designers, for an industry when tomorrow is out of date. Inditex missed a golden social media opportunity to run a design campaign with the bloggers on side. Michèle K, who runs a Swiss fashion blog, said that she would have been happy to give permission for her image to be used.
The retail chain is getting some of its social strategy right. At the beginning of the month, figures from famecount.com placed Zara fourth among the top ten brands on fan engagement.
But, just not this time.
Anyone with a Gmail account will probably have noticed the permalink to Spam recipes in their spam folders. On the menu today – Spam Fajitas – serves 8, add extra salsa if desired.
But, do people still eat Spam? The answer is a resolute yes and the retro brand has just hit the social media headlines with a new campaign to build on its loyal following, who have already set up a string of unofficial fan clubs. Spam is looking to build on its fanbase with the launch of a new social strategy to engage both younger consumers, and those over 55 who increasingly using social networks.
It is using its heritage to strengthen its consumer base. Future Foundation editorial director James Murphy points out that this can give food and drink brands the edge over say, technology brands, in offering consumers a ‘sense of warmth and security’ in tough economic conditions.
Insight backed up by our recent analysis of consumer motivations and brand loyalty around different tea brands. For example, Tetley created a nostalgic buzz in social with the return of the Tetley Teafolk: Gaffer, Sydney et al. It also used the characters to engage with consumers on Twitter and Facebook: ‘@tetley_teafolk Hi Sydney, just enjoying a decaf green tea, would you like one to??’
The strategies of both brands are good examples of how to use social media to build brand awareness and a revitalised fanbase from nostalgic roots.
In a landmark move, the Office of Fair Trading (OFT) is taking action on bloggers and tweeters who endorse a brand without declaring they’ve been paid for it.
The Guardian has reported that the watchdog last month started a case against PR firm Handpicked Media, which runs a commercial blogging network, for apparently paying bloggers for positive brand comment. Consumers should be told about any paid-for endorsements.
The eWord blog explained OFT could: “Prohibit any future promotion that does not clearly identify, in a manner prominently displayed with the editorial content such that it would be unavoidable to the average consumer, that the promotion has been paid for or otherwise remunerated.”
Celebrities in the US can make big bucks from paid-for tweets which are tagged with ‘ad’ or ‘spon’. According to Marketing Week, celebs there can pocket over £30,000 per month.
The social marketing trend is picking up speed here as well. Range Rover has been recruiting celebrities to tweet about its new Evoque 4×4, including Daisy Lowe, as part of its ‘Pulse of the City’ campaign. Interestingly, Charlie Trumpess last month tweeted: ‘Range Rover uses 40 celebrity “trendsetters” to tweet about its new Evoque 4X4. Soon this sort of blurry activity will be covered by the ASA’.
There haven’t been any rules here, but that’s all about to change. If your brand or agency wants to use celebrities for social marketing – it will have to be transparent.








