Traditionally, marketing has always been thought of as business-to-business (B2B) or business-to-consumer (B2C). With social media in the mix, marketing is no longer so black and white. Marketing messages are getting lost in translation on Facebook, Google Plus and when cut to 140 characters on Twitter. The idea is that all this content has been optimized for consumer engagement, but in reality consumers can’t all be quantified down to statistics. Consumers want to be marketed to as individuals, not based on the general tendencies of their demographic.
 

Consumers are tired of content being fed to them. In turn, they are becoming content creators and user generated content (UGC) is on the rise. All visual platforms allow consumers to create their own product photos and fan videos. Essentially anyone with a cellphone can snap a photo or be a model. Social media and the rise of Instagram, Pinterest, and Snapchat, enables businesses to connect with consumers on the individual level and for consumers to respond. With UGC, consumers are shaping and molding brands. Businesses are able to react and interact with consumers on a personalized level. It’s time to market H2H, human to human.
 

Humanize Your Brand
Away with B2B and B2C marketing, consumers are seeking a more personal connection with a brand on social media. Following a brand is more than expressing what you like, a consumer wants to be informed of the company culture, news, and product releases.

As the ease of information sharing increases, the consumers’ need to know more has also flourished. Companies have realized the way to satisfy consumers’ inquires is to be genuine and simple, qualities people want to see in friends, family, society, and now businesses. Companies are starting to change their social media strategies to a more humanized approach and social commerce is no different. eCommerce sites are jumping on the UGC bandwagon, integrating fan photos onsite with social curated galleries.
 

Social Curated Galleries
Create a social and visual site experience with live galleries filled with original images of real customer showcasing your products. Track these photos by using a unique and creative hashtag for your brand. Emphasize a specific product, event or create a general one for your brand as a whole. Display photos featuring this hashtag on your homepage to drive new product discovery or feature them on product pages for increased conversions.

Allowing your consumers to upload personal product photos will help other shoppers visualize your products in real life. Implementing a social curated gallery will allow consumers to see your products in the hands of people like them and in turn allowing them to relate to the product on a more personal level. This personal connection results in great conversions, social gallery participants have a 23% higher conversion rate than a regular consumer.
 

Increase social reach with Top Influencers
Not only will a social curated gallery humanize your brand, it will also spark incentive for consumers to take product photos and spread awareness via their social media networks. On top of being displayed on your site, the photos will be spread over consumers’ networks like Instagram, Twitter, Facebook, and Pinterest.

Recognize top influencers and trendsetters in featured galleries or take it to another level by turning it into a contest. This recognition will increase brand loyalty and drive consumer engagement. Shoppers that interact with social galleries discover, on average, 5 new products to which they express purchase intent for.

Content creation is an armed race, but every once in awhile, slow down and listen to what your consumers are saying. Use social curated galleries to see which products are trending, what consumers are sharing, and what they want more of.

As a marketer, you carefully craft pieces of content for the web. You research your target audience, include what’s trending, topical keywords and a distribution plan across your social networks and web properties. You’ve even found the optimal time of day to post for each.

But when you click “Publish”…nothing happens.

Native advertising, otherwise known as paid media in the format of news content nestled among other similar stories, has risen as one of the more effective ways to reach consumers in 2014. Though not new, certain questions arise: are consumers really clicking on native advertising vs. traditional advertisements or organic posts on the web? Do they actually trust these ads and are they worth your money? The answer may surprise you.

According to a study done by David Franklyn, law professor at the University of San Francisco, when it comes to what people recognize about labels, people often just skip over them. Respondents to his study “didn’t remember seeing ‘sponsored by’ posts when asked to read a web page and the majority (over 50 percent) also didn’t know what the word ‘sponsored’ actually meant.”

These results augment more preliminary findings from the study which stated that sometimes people don’t understand what the word ”ad” means, and even with disclosure, as much as 35 percent of people when asked to identify the type of content they were viewing, said that it was not an ad.

What this study sheds light on is that we do not have a homogenous group of consumers in terms of knowledge and expectations. People struggle with differentiating paid from unpaid ads. The bottom line? Context matters more than labels.

Furthermore, in terms of wanting to know whether a piece of content was paid media or not, out of the 10,000 surveyed, only 40 percent of consumers wanted more clear and conspicuous differentiation between paid and unpaid content. Sixty percent stated that they don’t care. Said Franklyn, “a growing number of consumers don’t care, and enjoy it. They enjoy the hyper-stimulation that marketers do the work to do – they just want to sift through and enjoy it like People Magazine.”

Other than consumers just plain not caring, why do native ads work so well? According to Jamie Cole, creative director at Red Barn Media Group, in research covering audience reception to native advertising, the material that appeared the least commercial was rated as most credible by readers, and attitude toward the brand and purchase intent increased towards content that mirrored and appeared as news content.

But don’t confuse the word “mirror” with “trick.” According to Dan Greenberg, the CEO of Sharethrough, ”it’s not about tricking people, it’s about delivering content that has value. We believe in the power of meaningful content.” (Besides, tricking people couldland you in hot water.)

Preliminary data from a study his company conducted showed that the language used to disclose native ads has an impact on whether or not a consumer perceives a story as being paid for by a brand. “Disclosure language impacts perception. The words ‘sponsored’ vs. ‘featured’ vs. ‘promoted’ vs. ‘advertisement’ vs. ‘placed by’ vs. ‘in partnership’ vs. ‘suggested’ vs. ‘around the web’ all have different perceptions. Context has a major impact on perception.”

Do you trust native advertising or other paid media content? Why or why not?

BY STACEY MILLER

 

Want to build trust and brand with native ads? Register for our free on-demand webinar with Steve Rubel now!

Information adapted from the FTC’s Workshop on Native Advertising.

Image: Pardot (Creative Commons)

It’s always fascinating for us at AutoUSA to learn about the trends in the market, the changes in customer behaviors and the challenges faced by our dealers. This year’s annual survey results highlighted an evolving marketplace, where customer behavior is changing and forcing dealers to examine their processes, and their positioning in the market.

According to the results from AutoUSA’s annual Internet Marketing survey, the following were chosen as the three biggest challenges that Internet departments are facing:

1) Not Enough Leads (26% of respondents chose this as a major challenge)

Dealers don’t seem to be getting the hoped-for volume of leads they want or expect from their websites. This is interesting because two years ago, “keeping up with lead volume” was the number one challenge. In spite of increased spending on websites and SEO/SEM, and increased traffic, it seems dealers are failing to convert visitors into leads.

To me there’s a simple explanation for this. Consumer expectations and behavior have changed in the last two years. Today’s customers want to be in control of the car-buying process, while many dealers also want control of the process. As a result, dealers and dealer website vendors are saying “It’s all about the lead, give me the lead,” while their customers are saying “It’s all about the information, give me the information.” So when a customer visits a website and is bombarded with chat pop-ups, lead forms and can’t find the information they are looking for (such as price or payment information), they are going to leave the website and find the information somewhere else.

This trend isn’t going to change. Dealers must adapt and give customers the information they want, otherwise they risk losing them to a competitor. Remember, a customer visits only 1.8 dealerships on average before making a vehicle purchase. That tells me today’s consumer has already done the majority of their research online before heading out to their top two dealership choices.

Dealers that focus on the customer’s website experience – making it user-friendly, full of helpful content, and making it convenient for the customer to walk themselves through the process – are more likely to draw customers in than websites that are designed solely as a virtual brochure or to get the customer’s information. Conversion tools that are useful to customers, including trade-in calculators, showroom-visit incentives, and payment quoting tools give customers a compelling reason, or even a reward, to submit their information.

Instead of battling for control, dealers should be helping customers with their search for information. Chances are, those who help the most will be one of the 1.8 dealerships visited.

2) Not Enough Staff (20% of respondents chose this as a major challenge)

Staffing issues tend to be a perpetual challenge year after year, according to our surveys. Whether it’s not enough staff, the quality of staff, staff turnover or staff not following processes – it’s clear that many dealers believe that finding, training and keeping the right staff is a never-ending challenge.

But is it really the staff that’s the problem, or is it that many dealerships haven’t changed their sales model to reflect the state of the market? It’s well accepted that nearly 90% of car buyers start their search online. They, like the majority of us, are used to transacting business regularly online, whether it’s buying books, music, electronics, shopping for homes or travel. The Internet is a common tool, but many stores still treat it as a stand-alone department. We continue to see progressive, successful dealerships with high volumes in Internet sales adopt a model where every salesperson is also equipped to handle Internet inquiries so they can scale to serve more “leads”.

3) Quality of Staff (19% of respondents chose this as a major challenge)

As a young sales manager, I was taught by my GM that a salesperson’s failure (and their subsequent departure from our dealership) was my fault. You hire a skill set, train the desired behaviors, and manage execution of the processes so that you have the best-quality staff possible.

There are many new hires who do not receive enough training and are not held accountable when they don’t follow processes. If quality of staff is your greatest challenge, take ownership of that and improve the quality of your staff, and consequently the customer experience, by providing training and expecting excellence.

Salespeople can be trained to follow Internet processes; it’s no different than training them how to take phone calls or how to deal with customers in person, just a different method of communication.

Other major challenges cited in the survey were as follows:

4) Staff does not consistently adhere to written processes (18%)
5) Marketing budget not large enough to accomplish objectives (18%)
6) Keeping up with lead volume (17%)
7) Lack of staff accountability (16%)
8) Lack of management buy-in (16%)
9) Lack of staff training (15%)
10) High staff turnover (9%)

What is your Internet department’s greatest challenge? How have you dealt with some of these challenges?

POSTED BY Josh Vajda

The study, published Monday by the Direct Marketing Association, an industry group, was authored by John Deighton and Peter Johnson, a Harvard Business School professor and a Columbia University adjunct professor. It counted some 650 companies working in the personal data business.

The survey is part of an offensive strategy by the DMA, amid growing consumer unease about privacy online. “We’re seeing more attacks, more questions about the use of data-driven marketing than ever before,” said DMA vice president Rachel Thomas.

Taking a page from lobbyists for other industries, such as petroleum, DMA officials said they hoped that demonstrating the economic value of data would make policymakers think twice about pushing laws that clamp down on the industry.“If public policy decision makers muck around in this area, we really really believe they will do it at their own peril – and at the peril of the growth of the US economy,” said DMA CEO Linda Woolley.

The study tallied the value of the data market, including revenue generated from online ads themselves, from email subscriber targeting, and what publishers make from selling information to brokers.

It examined both online and offline direct marketing. Traditional offline marketing, provided by direct mail companies, was about a $93.6 billion dollar industry in 2012, the study said. The digital data industry includes firms that place tracking “cookies” on websites, companies that help target ads through an email address users provide to news organizations, and Web giants that track users’ purchases and searches to serve up targeted ads.

Increasingly, offline and online worlds are blurring: Direct mail companies buy demographic information from digital data brokers; Twitter and Facebook offer user data to television broadcasters. There are also newer forms of digital advertising, including mobile, which so far accounts for less than two percent of the market, the researchers found.

All these activities may be subject to more regulation in the near future. Hearings on data brokers and consumer data mining have been held in both houses of Congress over the last year. Nine major data brokers, some of which work with advertisers, are the target of a U.S. Federal Trade Commission probe whose results will be published later this year.