Wednesday, February 18, 2009

The Digital Tipping Point: The Future of Branding and Social Media



I attended a conference in Sydney yesterday called The Digital Tipping Point: The Future of Branding and Social Media.


That we have reached a digital tipping point is abundantly clear. IBM has already proclaimed that there will be more change in the next 5 years than there has been in the past 50 years, thanks to digital technologies. User time spent on social media increased by 43% in 2008 compared to 2007 (Pew Internet and American Life Project). Facebook has over 220 million members worldwide. Niche interest based networks are rapidly proliferating.

The future of branding and social media, on the other hand, is less clear-cut - or at least, success is not evenly distributed. MySpace, for example, has had much more success in monetising its offer than Facebook. To some extent this is a reflection of the different uses of these sites, Facebook being about connecting with friends and MySpace about discovery and fame.

But, as a rule of thumb, social media are more successful at carrying brand messages if they were designed to do so from the offset. Otherwise, established communities tend to react against the introduction of commercial messages because it feels to users as if the space they have taken ownership of is being invaded by an uninvited third party.

A growing number of emerging sites are both consumer centric and fiercely commercial, leveraging the insight that consumers are happy to use and manipulate brands to their own ends, be it self-expression or getting support for their passions.

Venture capitalist Brian Garrett, MD of Crossout Ventures, pointed out some new players: Social Vibe, Loopd and Flipgloss. While they may not be delivering great numbers yet, in terms of consumer eyeballs, these new models show commercial promise.


With companies placing greater emphasis on meaningful CSR, e.g. Kraft's "Give 6 Meals to People in Need" campaign, Social Vibe helps people get brand sponsorship in suppport of their causes. Brands, such as Colgate, provide artwork which people post to their blogs or social media profiles in support of their cause. The more views the profile gets, the more money Colgate and Social Vibe donate.

Extreme sports social network Loopd lets brands "sponsor" members - through providing branded stickers and discounts. The budding skateboarder feels like a sponsored pro, while brands get free viral marketing and an e-commerce channel.

Flipgloss is an intriguing proposition. Noticing that most glossy magazines don't migrate online very well, the developers set out to create print advertorials specifically for the online space. Instead of using small images and crowding the web page with text, Flipgloss has big muthas of images - looking just as delicious as the cover of Vogue. It then uses overlays (hover your mouse over sections of the image and contextual information appears). By clicking on these overlays, people can access information on where to buy products, or even buy directly. Flipgloss is not just a site, it's a widget which people can post to their own profiles.

It's now much easier to get your brands on to social networks, thanks to Adknowledge, which describes itself as a social applications ad network. Marketers can thereby take advantage of the thousands of applications that have already been developed, such as video applications. HBO, Neutrogena, 3 and Coldplay have already done so.

Adknowledge's President is Brett Brewer, the Co-Founder of MySpace, who knows a thing or two about social media marketing.

Oh, and he predicted that by 2015, the last major metropolitan newspaper will fall.

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