January 2007 Lawlor Focus
Online Marketing in 2007
Time magazine's selection of You (as in, "the engaged citizens of a new digital democracy") as the 2006 Person of the Year had experts wondering what 2007 will hold for social networks, blogs, and other user-generated content forums. Here are a few of their predictions.
- Social networks will go mobile. Noting that last year already saw a mobile broadcast video breakthrough as World Cup games were streamed to European cell phones, the analysts at eMarketer think mobile TV will soon support user-generated content, as well. Rebecca Lieb of ClickZ Nework agrees: "Do expect more social media applications on mobile platforms."
- Advertising on social networks will continue to grow. eMarketer expects worldwide ad spending on online social networks to double in 2007, to around $1 billion. The relevancy and personalization of search engine advertising has provided the model, says Bill Gossman of Revenue Science. "Search has shown us that, for the benefit of access to relevant content, consumers are willing to get relevant advertising. Over the course of the next year, consumers will demand this bargain for all digital media consumed."
- User-generated content will become ubiquitous. More companies and organizations will add social networking and user-generated tools onto their intranet sites, predicts Clark Kokich of Avenue A Razorfish. As social features appear on more than just traditional social networking sites, "they will be a given," says Danah Boyd, a social media researcher at Yahoo!.
- User-generated content will boost the influence of word of mouth. A new study by Compete Research provides evidence that consumer comments within social media can influence purchasing decisions, and Forrester Research has found that three times more consumers trust recommendations from peers than advertising. So Pete Blackshaw of Nielsen BuzzMetrics expects to see more brand web sites acting as "word-of-mouth amplifiers" that empower feedback loops for positive buzz.
- User-generated content will force marketers to listen and learn. It's no longer the case that the medium is the message, according to Jaap Favier of Forrester Research—consumers call the shots now, so the response is the message. Tessa Wegert of Enlighten notes that because "consumer-generated media, brand democratization, and citizen marketing turned the Internet user into the marketer" last year, marketers will by necessity become "more comfortable with giving up some of their power to their customers, knowing they'll likely get more loyalty and word-of-mouth sales as a result."
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What do these trends mean for colleges and universities? Just like any other organization, an institution of higher education needs to engage its various constituents how, when, and where they want to be reached. Social networks have carved out online space especially for prospective students and alumni, and all indications are that these users will come to expect their own space on college web sites, too. So schools should consider dedicating areas on their web sites for prospective students, alumni and friends to post their own thoughts.
But remember, letting your constituents "talk" is only half of the formula—you must also listen to them. For prospective students and alumni to feel your brand is relevant and connected to them, you will need to capitalize on the dialogue they have about you and with you. This means monitoring and acting on their feedback, whether directly, such as responding to their posts, or indirectly, such as analyzing the terms they enter in your site's search feature to determine how you can improve their experience on your site. Now that "the engaged citizens of a new digital democracy" feel empowered, take advantage of what they tell you to build elements of your brand from the bottom up.
In the News: Statistics on Teenage Social Networking
Reuters and the Associated Press both covered the release of a new study by the Pew Internet & American Life Project, "Social Networking Websites and Teens: An Overview." Analysts Amanda Lenhart and Mary Madden found that 55 percent of American online users aged 12-17 use social networking sites like MySpace and Facebook and/or have created a personal profile online. Forty-eight percent of them visit a social networking site daily to do things like manage their existing friendships and make new friends. Lenhart will be speaking on this topic and more at the Lawlor Institute symposium, "Integrated Marketing: Leveraging the Web and New Media for Strategic Advantage," on June 13, 2007, in Minneapolis.
Did You Know?
According to the "E-Expectations Class of 2007" survey of college-bound high school juniors, a real-time financial aid estimator is the number one feature prospective students would like to see offered at your web site. Eighty-eight percent of respondents indicated they would complete a financial aid estimator form if given the opportunity.
Source: Noel-Levitz
Is your school effectively communicating with prospective students and alumni via online channels? To find out more about interactive marketing, or to have The Lawlor Group conduct an audit of your institution's communications plan, please contact us by e-mailing tlg@thelawlorgroup.com or calling 1-800-972-4345.
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