Marketers seek novel ways to reach consumers as Internet sites surge
The surge in social networking on the Internet has transformed the way marketers are approaching their targets as more people are spending more time online at such websites as Facebook and others.
The number of minutes U.S. Internet users spent on social-networking sites has increased 83% this year compared with 2008, according to market research company AC Nielsen. Facebook (FB) alone registered almost 14 billion minutes in April on a global level.
In Puerto Rico, an already popular Facebook has skyrocketed higher in the past year. In March 2008, FB registered 264,764 users on its San Juan network. A year later, the network reported 1,014,642 users, which represents a staggering 283% year-to-year increase.
“Although this number doesn’t represent the total number of FB users in Puerto Rico, it certainly indicates this phenomenon’s rapid growth,” said Rafael Arteaga, director of the Chat interactive division at the Arteaga & Arteaga ad agency.
Despite the staggering numbers, most brands still have no presence on popular social networks.
Chat is leading the way in this field as it specializes in developing branded applications on social networks aimed at helping steer brands such as 20th Century Fox, Baskin-Robbins, Coca-Cola, Ferrero, FirstBank, L’Bel, Malta Polar, MCS, Mini Cooper and Nestlé to engage emotionally with virtual communities while strengthening their social-media presence.
“The shift to social networking online, at this stage, represents mostly an opportunity to achieve a deeper connection with consumers who are more difficult to reach in other social environments. Chat was reinvented upon this premise two years ago,” Arteaga said.
In fact, FB has shown great potential over the past three years as a viral tool able to create social experiences that effectively integrate a brand not only into consumers’ lives, but also into their network of FB friends.
“We are the only local agency currently developing branded applications, the main objective of which is to turn a user into a brand ambassador,” Arteaga said.
A brand ambassador, the ad executive explained, is someone who will deliver the brand’s message to his or her Facebook friends at no extra cost to the brand.
How do branded applications work?
Escape Tropical con Baskin-Robbins (Tropical escape with Baskin-Robbins) is one of the most recent promotional applications launched by Chat two weeks ago to support the launch of the ice-cream chain’s new tropical shakes.
The concept is a virtual contest where the user who accumulates the most points wins a cruise on Royal Caribbean’s Adventure of the Seas.
Every time consumers make a purchase at a Baskin-Robbins store, they will be given a coupon with a code number. They must first add the Baskin-Robbins application to their FB account and then enter the code. For each code entered, consumers will win 50 points. Consumers may obtain an additional 10 points with each digital milkshake they send to their network of Facebook friends through the application.
“This allows the brand to reach more people,” Arteaga explained.
The results? “Outstanding. In just one week, 8,000 people have added the application to their FB accounts to participate in the contest; 1,345 coupon codes were entered into the application.
“An average user spends around five minutes on Facebook. This means participants are spending around five minutes interacting with the brand, which represents 10 times the time spent watching a traditional TV spot,” Arteaga explained.
Users have an average of 120 friends in their FB network. So, every time a user sends a digital milkshake to his/her FB friends to obtain more points, the brand message is spreading virally among FB users in an incredibly short period.
“In just one week, users have sent more than 36,000 digital shakes to their FB friends, generating close to half a million viral messages supporting the brand,” Arteaga explained, highlighting how these electronic campaigns can really put brands in the spotlight.
The investment to achieve such brand-exposure results in just one week is very modest compared with the norm in traditional media, he said.
“This particular campaign ranges from $15,000 to $17,000, mostly to cover the expenses involved in producing the application,” said Arteaga, adding that such costs depend on how complicated the application is.
“We are starting to see clients increasingly moving budgets from traditional media to social networks due to the fact that investment is modest compared with traditional media and results can be measured in real time,” he said.
For Arteaga & Arteaga, such campaigns have proven to be an innovative venue to attract new clients to its portfolio.
“In the late 1990s, leading brands had to have an effective presence on the Internet by having a website because this equaled innovation. In 2009, to be perceived as an innovative brand it is mandatory to have a presence on Facebook and other social networks,” Arteaga concluded.
Ref. Caribbean Business PR