The Digitalists

New Perspectives on New Media

Archive for February 19th, 2009

‘What I Really Want to Do Is Consult …’

Posted by Greg on February 19, 2009

Businessweek’s B.L. Ochman (via Henry Copeland) makes a good point about all of the people trying to cash in on the social media boom:

Search the bios of Robert Scoble’s 56,838 Twitter followers using Tweepsearch (www.tweepsearch.com), an index of the bios of Twitter users, and you’ll find:

  • 4,273 Internet marketers
  • 1,652 social media marketers
  • 513 social media consultants
  • 272 social media strategists
  • 180 social media experts
  • 98 social media gurus
  • 58 Internet marketing gurus

How many of them have actually created a successful campaign for clients using social media tools? I bet you’d be hard-pressed to find half a dozen with real track records.

Pretty funny. I’m fairly confident that many of the various innovations that fall under the “social media” umbrella will end up transforming the way companies interact with their customers. But who gets rich off that transformation is a completely separate question.

I do, however, disagree with Ochman on one of her other supposed social-media myths: Read the rest of this entry »

Posted in Uncategorized | 2 Comments »

Investing In Digital: The Benefits Exist Even in a Recession

Posted by Dan Sachar on February 19, 2009

I wrote earlier that this Great Recession is an opportunity for marketers and even agencies themselves to invest in digital and to begin to transform their marketing efforts to become more cost-effective and targeted. Adage today features a perfect example: Marriott Hotels (despite otherwise poor results) generated over $2 million in bookings via their mobile site. And Marriott isn’t alone:

Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year. But revenue from mobile bookings in January was headed upward fairly quickly, the hotel chain told Ad Age.

Meanwhile, Omni Hotels’ mobile site has grown 85% in the past six months, and Hilton’s mobile channel has generated a 22% return on investment for the brand. Those kinds of numbers are bright spots in a tough time for hoteliers — and they show that even in recession, companies are willing to invest in and experiment with new media when the ROI is clear(emphasis mine).

To be fair, this is essentially an e-commerce play, where the transaction can occur online and the effects of ROI are measurable. But, then why not shift more marketing dollars online to complete the circle and measure the ROI from the first dollar spent through the last? That’s exactly what is starting to happen, according to Chris LaRose who direct’s Hilton’s website strategy:

“Where we’re seeing in general is a shift to … digital across the board. The rate of return that we’re seeing in online campaigns is much more favorable than what we’ve seen historically in print,”

Can’t say it much more clearly than that.

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