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Federated Media’s CM Summit 2011: ChasNote Round Up

My favorite stats, quotes and comments from this year’s Conversational Marketing Summit.

Starcom Mediavest Group CEO Laura Desmond talked of the migration of ad dollars from analog to digital media. Two years ago her clients spent 85% of their budgets on traditional outlets, 15% digital. Now digital’s share of investment is twice that.

Digital makes us realize brand and DR aren't distinct silos

She also wants to pull the plug on market mix modeling. As audiences began to spend more time with digital media at the expense of traditional, analog content, the modeling tools overlooked the change, which slowed the migration of ad dollars to digital. On winning the Microsoft business: Our companies shared a strategic view that Microsoft must pivot from being a “marketer of ads to a marketer of experiences.”

American Express VP for Business Apps Management Robert Ciccone shared research showing that 44% of small businesses are using social media to acquire new customers. Given how many SMBs depend on local customers, I was surprised that only 2% say they’re using Foursquare.

Tumblr founder David Karp shared his company’s very impressive numbers. Last year the site did 250 million pageviews, now they’re doing that many each day. The marketer case studies didn’t knock my socks off — they’ve got some work to do here.

Tumblr audience traffic stats

Founder and CEO of GetJar Ilja Laurs says the app industry will be as large as the entire music industry in 3 years.

App industry will be as large as music industry in 3 years

Twitter CRO Adam Bain announced that Twitter will launch its self-service ad-buying platform this year. They’re hoping that will grow their roster of advertisers from the 600 they have today to Facebook or Google levels. Sounds like brands are ready and willing:

CMOs ask How Twitter not Why Twitter

Blackberry’s had a rough patch in recent years, but VP Brian Wallace shared impressive numbers on their social media performance: They have 15 million fans in Facebook, who are collectively connected to 400 million of Facebook’s 600 million members.

Yahoo’s Chief Product Officer Blake Irving demo’d Livestand. It’s a new model in which publishers need to think like digital marketers, he said.

Some other quotes I enjoyed:

Color CEO

Shlain on digital shabat

Will.i.am on Obama

Only losers will pay for sex or advertising

People Who Click On Banners Aren't Your Best Customers

New research commissioned by Starcom, Comscore and Tacoda finds that optmizing for clicks likely means optimizing away from building brand with your best customers.

SMG Logo

“CHICAGO – Media agency Starcom USA, behavioral targeting network Tacoda, and digital consumer insight company comScore collaborated on a research study whose results call into question click-through rates as a primary source of accountability for Internet display advertising aimed at brand-building. Called ‘Natural Born Clickers,’ the study reveals that a very small group of consumers who are not representative of the total U.S. online population is accountable for the vast majority of display ad click-through behavior.”

The power clickers have less desirable demographics:

“The study illustrates that heavy clickers represent just 6% of the online population yet account for 50% of all display ad clicks. While many online media companies use click-through rate as an ad negotiation currency, the study shows that heavy clickers are not representative of the general public. In fact, heavy clickers skew towards Internet users between the ages of 25-44 and households with an income under $40,000. Heavy clickers behave very differently online than the typical Internet user, and while they spend four times more time online than non-clickers, their spending does not proportionately reflect this very heavy Internet usage. Heavy clickers are also relatively more likely to visit auctions, gambling, and career services sites –- a markedly different surfing pattern than non-clickers.”

And there’s no correlation between clicks and brand metrics.

“Further preliminary Starcom data suggests no correlation between display ad clicks and brand metrics, and show no connection between measured attitude towards a brand and the number of times an ad for that brand was clicked. The research presentation suggests that when digital campaigns have a branding objective, optimizing for high click rates does not necessarily improve campaign performance.”

Sez Erin Hunter, EVP at Comscore:

“‘While the click can continue to be a relevant metric for direct response advertising campaigns, this study demonstrates that click performance is the wrong measure for the effectiveness of brand-building campaigns,” said Erin Hunter, executive vice president at comScore. “For many campaigns, the branding effect of the ads is what’s really important and generating clicks is more of an ancillary benefit. Ultimately, judging a campaign’s effectiveness by clicks can be detrimental because it overlooks the importance of branding while simultaneously drawing conclusions from a sub-set of people who may not be representative of the target audience.””

Nintendo Taps Pioneer Woman For Wii Contest

Ree’s Confessions of a Pioneer Woman is among several hip-young-women sites included in a conversational marketing campaign for Nintendo’s Wii. This week she replaced her “Give This Picture A Caption” contest with a “Share An Embarrassing Moment and Win a Wii” contest. She posted the contest today at 3pm Pacific; as I write this, 5pm Pacific, her readers have submitted 1357 embarrassing stories. (UPDATE 2/8: By 9pm yesterday when she closed the contest, 2992 stories had been entered.) Ree’s readers want their Wiis!

Pioneer Woman Wii Contest

Size Still Matters: WSJ and Starcom Provide New Evidence

Waiting for the crew at Farley’s to brew up a cup of tea this afternoon, I flipped through the print edition of AdWeek for the first time in about a decade, and two stories caught my attention, both reminders that size still matters in publishing.

AdWeek Logo

First, Starcom USA Unveils New Print Accountability Tool: The agency “has been doing bigger deal in print but with fewer magazines” in order to get a better read on the performance of campaigns, creative messages and publications. If other agencies are doing the same, it means the financial pain across the print-publishing landscape will be felt more acutely at niche magazines.

Second, Will a Free WSJ.com Pay Off for Murdoch?:

“‘Because of the their model,’ said Jeff Lanctot, svp, global media at Avenue A/Razorfish, ‘they are a smaller property.’ That by nature, can sell only so many ads. Consider that Yahoo Finance generated 470 million page views in October, versus 11 million for WSJ.com, per comScore. ‘They could instantly become a more attractive property’ if the site goes free, Lanctot added.”

Niche publications are great for advertisers in terms of targeting and audience composition, but without scale to go along with quality small publishers may not get a seat at the table.