Seybold Scientific

An Analytical Approach to Marketing Online.

117 troubled banks, highest level since 2003

WASHINGTON (AP) — The number of troubled U.S. banks leaped to the highest level in about five years and bank profits plunged by 86 percent in the second quarter, as slumps in the housing and credit markets continued. Federal Deposit Insurance Corp. data released Tuesday show 117 banks and thrifts were considered to be in trouble in the second quarter, up from 90 in the prior quarter and the biggest tally since mid-2003.

The FDIC also said that federally-insured banks and savings institutions earned $5 billion in the April-June period, down from $36.8 billion a year earlier. The roughly 8,500 banks and thrifts also set aside a record $50.2 billion to cover losses from soured mortgages and other loans in the second quarter.


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Published: August 26, 2008
By: Ajay Shah

This article is filed under:
Business | Business Start up | Conversational Media

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Jamaica’s Bolt breaks 200 mark, gets sprint double

BEIJING (AP)—Usain Bolt of Jamaica broke the world record by winning the 200 meters in 19.30 seconds Wednesday night, becoming the first man since Carl Lewis in 1984 to sweep the 100 and 200 gold medals at an Olympics.

Bolt is the first man ever to break the world marks in both sprints at an Olympics. Not even Lewis or Jesse Owens managed that.

Showing what he can do when he runs at full speed all the way through the finish—something he hadn’t done yet in the Beijing Games—Bolt eclipsed the old record of 19.32 seconds set by Michael Johnson in Atlanta in 1996.

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Published: August 20, 2008
By: Ajay Shah

This article is filed under:
Conversational Media

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Where did this financial turbulence come from?

How the subprime debacle got started and where it might end up. The most recent iteration of America’s economic system has its roots in a small meeting in Bretton Woods, NH, in 1944. The hope – and assumption – that developed during that meeting was that out of the victory of World War II, a single global trade and economic supremacy (potentially a nation state) would emerge, ending fascism and all other “isms”. In this meeting, there was an assent to certain financial dynamics, particularly an assent to the gold standard.

Fast forward to August, 1971. Facing many new economic hardships, the emergence of credible international technical and industrial competition, and unprecedented capital calls on the U.S. Treasury, the United Stated decided to supplant its previously established economic ground rules. Today, we have forgotten what happened in 1971.

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Published: August 18, 2008
By: Ajay Shah

This article is filed under:
Business | Conversational Media

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H&R Block Social Media Programs Success

Who would ever think that a financial services company would be innovative about marketing? Paula Drum is vice president of marketing for H&R Block. In this podcast, she explains how programs using Twitter, Second Life and other onlines venues have had impressive success. As Drum tells Jennifer Jones, one of their great surprises was how much human capital they had to spend to make the programs work. She advises all marketers to truly understand just how much personnel commitment it takes to implement such extensive programs.

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Published: June 30, 2008
By: George Seybold

This article is filed under:
Conversational Media | Uncategorized

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Using New Media to Tell the Story

I’ve had the opportunity of late to work with some C-Level executives who seek to employ new media tactics to gain awareness of their products and services. Being an advocate for new media venues. I tend to lean in this direction anyway, but some of these folks are pushing into this venue like a category 5 hurricane.

The reference to a hurricane is deliberate because they effort their way into the space and do not care if they are relevant or if their target audience exists within the community they are aggressing or not.

Contextual Relevance
Communities are formed online by those of like mind. They exist to provide information, validation and entertainment. When businesses begin “efforting” to create a place for themselves in communities, where they are not a natural fit, then they are irrelevant. The product or service lacks relevance in the context of the conversation.

Here’s a scenario. A company makes ear buds targeted a teen demograpghic.. They have a great new product and they are preparing a launch. They decide it is so exciting that they are going to use lots of new media venues to create awareness. The IT department because of their personal exposure recommend Digg, YouTube, Joost.tv, Facebook, iTunes, Second Life, etc,

Immediately the marketing manager takes off like an unstoppable train creating video and audio and articles about this wonderful new technology. The efforting continues as they are actively deployed online. The traffic doesn’t come.

Why?
These communities do not want to be marketed to. They can sniff out insincerity and they will shun that which is not in context.

All is not lost.
New media can be used effectively to promote your product. It simply needs to be above board and in context.

In Digg
Submitting a great product within Digg is fine, but playing the popularity game by notifying all your friends to “Digg it up” is not. Diggers do not like those who will game the system and they will penalize these efforts. Let your product gain ground based on its own merits.

In Facebook and MySpace and ..
Social Networks are great for staying in touch with people. Advertising on these platforms has not been all that successful primarily because the ad units are not placed in context to the subject matter of the page. Think about it this way, if you created a page in MySpace for the product and then sought to “friend” as many people as you could find would you get much response. Look at it form the reverse angle. Would you want to be the friend of an ear bud?

YouTube and Joost.tv and ..
Creating a commercial spot for these venues is expensive. Repurposing a commercial that will be aired on TV for these venues is cheap. If your commercial is “buzz worthy”, by the way you don’t get to decide if it is, but if it is buzz worthy then it will become viral on its own and be distributed beyond your imagination.

Twitter and Pownce and …
It has become very common to announce a new blog post or media spot posted online. One announcement is fine in that you are announcing to your friends so they can go learn more about you. More than one tweet is not acceptable so be respectful of the sheer volume of info these folks are consuming.

Enough on venues, I’ll close on context.
When a consumer is seeking the ear buds or your product, whatever that might be, they will likely begin their search for information within a search engine. Immediately after a product launch the likelihood you will have natural positioning within the search engines is nil. So advertising on the engines is your next best bet. You will get immediate positioning and it offers a means of getting found in context to an active search.

But what about joining the conversation? Well the reality is that you can successfully use the new media spaces to continue telling your story. Use the tools in parallel and allow entry at any singular point. This may look like [search ad > landing page > YouTube video > web site > transaction]. The key is to be visible (search engines), be on point (landing page > YouTube video > web site) and finally make it easy to transact with you. Use new media to tell the story .. perhaps I could have said it all with this one line.

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Published: May 3, 2008
By: George Seybold

This article is filed under:
Blogs | Conversational Media | Integrated Marketing | Search Marketing

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Will Social Networks Kill Search?

A provocative headline and somewhat less provocative article in Popular Mechanics argues that social networking will kill search “as we know it.”

Here’s the relevant kernel of the article:

In fact, as we each carve out our individual niche on the Web, the logic of search may well flip inside out. Since we are essentially meta-tagging ourselves through our social networking memberships, shopping habits and surfing addictions, it’s conceivable that the information could attempt to find us—the old concept of push media, but in a far more refined way. As new content enters the Web, it could tumble through the various filters that you set up around your identity and then show up on your home-page news feed, or in your in box, or pop up on a ticker that follows you around as you browse from page to page.

I made a version of this argument myself in early 2007. My question was: Would we use search as extensively if other tools (e.g., feeds, personal start pages) help us discover information more efficiently?

Comparing Google and Facebook today, one could argue that Facebook (other than its “communication” tools for some) hasn’t really become indispensable. If you’re younger than 27 you might have a different view. But it’s still mostly about some form of entertainment, broadly defined. Google and search more generally, by contrast, is about getting things done as well as entertainment. Search is used billions of times every month for a range of purposes.

Now Facebook could add web search (as most other networks have) and Microsoft, its partner, would probably like that very much. And Facebook could grow and evolve into something more indispensable. If I were Sheryl Sandberg, the former Google VP who’s now COO and effectively running Facebook, I would look at making it into a version of My Yahoo or iGoogle. Accordingly, there are ways to make Facebook quite a bit more “useful” than it is today, in my opinion.

And while it’s very true that word-of-mouth has moved online and people care very much about what their friends and other contacts think about things, those “recommendations” are not a substitute for search. Indeed, I recently spoke the other day to one of the founders of Socialight, an internet and mobile-social network. One of the interesting things the company has discovered through experience is that people don’t just care about their networks’ recommendations. It turns out — and this is common sense — that expert and top-down editorial content matter equally and in some cases more than what their friends may think.

Then there’s the question of monetization. While social networks offer a range of interesting advertising opportunities for brands and others, they turn out, so far, to be relatively inefficient monetization engines — unlike search. There’s also a question of their efficacy as advertising vehicles at all. People love social networks but they may not be paying very much attention to the ads on them.

Without question, search will need to grow and change, and it is. Social media is having a big influence on the internet in general but also search. Google has aggressively embraced community and social media across a range of properties (e.g., Maps, Reader, iGoogle, YouTube, Calendar, OpenSocial) and itself in the process of transforming into a giant network of sorts.

Clearly we can say that search and social media are influencing one another as both evolve from where they are today. But will social networking “kill” search? I wouldn’t bet on it.

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Published: April 30, 2008
By: George Seybold

This article is filed under:
Conversational Media | Social Networking | Word-of-mouth

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Social Circuit: Intel Embraces Blog Culture

If you think of the universe of technology—and for that matter-social media, Intel seems to be constantly at the center of it. The devices we use, what we see on them, the companies that provide them, almost completely depend upon Intel for the processing power needed to make it work.

I spent some time with Paul Otellini, who became Intel CEO, after moving up the ranks for 30 years, and with Ken Kaplan, one of Intel’s most passionate social media enthusiasts.

This clip will give you some idea of how Intel is using social media internally and at least a hint of where Otellini thinks it will go during his daughter’s lifetime.

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Published: March 21, 2008
By: George Seybold

This article is filed under:
Blogs | Conversational Media | Social Networking | Web 2.0

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A Twist on the Traditional Magazine Model

8020’s publications are filled entirely with content generated by online readers. But will people pay for it?

Weary of his job as an urban planner for the city of Portland, Ore., Sloan Schang dreamed of making a living as a writer. How, exactly, he wasn’t sure. But he quit his job, sold his house and, with the proceeds, some savings and his girlfriend, set off on a trip that took him to Asia, Europe and across much of the United States. Today, not two years later, Schang, 32, is a published travel writer with a busy schedule of decently paid freelance gigs. “It’s worked out well. I don’t really plan to go back to urban planning,” he says.

A decade ago Schang’s transition almost certainly would have been more difficult. But there are more opportunities than ever for aspiring writers to get published. Schang credits his breaking into the travel writing business to 8020 Publishing, a San Francisco-based magazine publisher with a unique twist on the conventional model: its paper pages are filled entirely with content submitted by readers through its Web site.

The Internet, of course, has given citizen-journalists, amateur artists and Wikipedia warriors a virtually limitless platform for exposure. It has also roiled the traditional magazine business, which in recent years has seen circulation and ad revenue drop as more readers shift their preference for media consumption from paper to pixels. But 8020 may have found a way to take advantage of the move to online. Funded by CNET.com founder Halsey Minor, the company, which was started in June 2006, is pinning its future on actual newsstand sales of content that originates online. “Magazines are great at inspiration, whereas the Web is really good at data. But people tend to think only in terms of the Web versus print magazines,” says Paul Cloutier, chief executive of 8020. “We say they can come together to become an even better magazine.”

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Published: March 13, 2008
By: George Seybold

This article is filed under:
Business | Business Start up | Convergence | Conversational Media | Word-of-mouth

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Facebook Triage - Declining CPM

Social networks have flooded the market with inventory, pushing down ad rates based on CPM, according to one Microsoft executive.

Dean Carignan, Microsoft’s director of ad business strategy in the entertainment and device division, made that disclosure during a panel discussion today at the McGraw-Hill Media Summit in New York City.

After the panel discussion, “Advertising Next: Social Networks, User Generated Video….”, I approached Carignan and asked him to elaborate.

He said the pricing decline doesn’t apply to specific verticials, such as automotive, financial services, and news.

However, he acknowledged that social networks (Facebook included) have increased online inventory by about 15 percent this year.

It wasn’t lost on anyone in the crowd that Microsoft made a $240 million equity stake in social network Facebook late last year.

“In most environments, the ads showing up have no context. People talking to people [isn't] relevant to one product category,” he said.

He and other mentioned growing interest in “cul de sacs” on social networks focus on special interests such as consumer electronics or travel.

When asked about Facebook, he offered a quick: “No comment.”

Now that they’ve tapped out their inventory how do they stop their investment potential from bleeding out. Note though that I am not fool enough to think they are sucking air - yet. 

 

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Published: March 12, 2008
By: George Seybold

This article is filed under:
Advertising | Business | Conversational Media | Media Buying

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A List of Objections, Replies and Concessions Regarding Social Media and Tools

1. I suffer from information overload already.

Possible replies:

Information is just nice to have unless it is actionable - that is the problem with email. If you are like me then email comes in, it’s scanned for task items, categorized in some manner and filed. In social media the feed is just there - searchable when needed, but current and living. There is no need for a constantly connected feed.

The right tools for you will feel helpful in time, not like a burden. Experiment for awhile with new tools and stick with the ones that deliver you the most high-quality information, whether those tools are high-quantity or not.

Check out tools like AideRSS and FeedHub - just two examples of services aiming to improve the signal to noise ratio.

Times change and so do information paradigms. Get used to it. The amount of information you had access to 3 years ago was infinitely more than people at any other point in history and we’re in the middle of another huge leap right now.

Concession:

If you think consuming all this new information is a challenge, wait until you try to find the time to make sense of it!

2. So much of what’s discussed online is meaningless. These forms of communication are shallow and make us dumber. We have real work to do!

Possible replies:

Much of it is not meaningless, but if you feel overwhelmed with meaninglessness - try subscribing to a search for keywords in a particular service and using that as your starting point for engagement.

Having a presence and starting a conversation is rarely a bad thing - bring quality conversation to a space and you’ll find others ready to engage.

Personal information can be very useful in understanding the context of more explicitly useful information.

If learning how the market feels about your organization, engaging with your customers and driving traffic to your web work - all very realistic goals for social media engagement - aren’t work, then I don’t know what is. Even in the short term, strategic engagement with online social media will have a clear work pay-off.

Concession:

The signal to noise ratio will be easier to maximize if you can find an experienced guide to learn from. Just jumping into social media and new tools on your own will not necessarily lead to a meaningful experience. It could, but it will take longer. Noise is noise, but relevant noise is gold.

3. I don’t have the time to contribute and moderate, it looks like it takes a lot of time and energy.

Possible replies:

If you aren’t going to eat that lunch of yours, I’d be happy to, thanks.

With practice, familiarity and technology fine-tuned with a little experience you’ll find the time required will decrease.

You might consider this time spent on marketing or communication with existing customer base - perhaps there’s something else in that department that isn’t working well and could be replaced with online work.

Concession:

Doing anything well does take time and energy. You’ve obviously been thinking about this stuff a lot, it is important - and it’s going to take time and energy.

4. Our customers don’t use this stuff, the learning curve limits its usefulness to geeks.

Possible replies:

You might be surprised to learn how many of your customers do already use these new tools. Even more will do so in the future.

The best designed tools are designed like good games - you can get small rewards right away and then learn more advanced skills to win bigger rewards. Among online services that are intended for general audiences, only poorly designed ones are too geeky.

Many of these tools provide value vastly disproportionate to the literal number of people they reach. These are like high-value focus groups where you’ll gather information and preparation to engage with the rest of the world.

Try asking someone near you to give you an in-person demonstration of one of these tools. You’ll find it much easier to learn once you’ve seen the right paths taken to show what it can do.

5. Communicators [bloggers, tweeters] are so fickle, better to stay unengaged than risk random brand damage. We don’t want hostile comments left about us on any forum we’ve legitimized.

Possible replies:

If you need to, you can require that any comments left on your own site be approved before they appear. This slows down the conversation but if it makes conversation possible for you then do it.

There are far fewer people who will take the time to say hostile things, even on the Internet, than you might imagine.

Engage - you’ll be appreciated more for it. People are going to say what they are going to say - you can either let any criticism go unanswered or you can be the bigger person/brand for responding well.

Conversations are going to happen online, better to be engaged than to have it happening behind your back.

It’s ok, no one believes that anyone is perfect anymore. Swing for the fences sometimes - you might strike out, but sometimes you’ll hit a home run.

Even if you’re not responding publicly, you should watch closely so you know what people are saying. Maybe you don’t have a blog, but subscribe to a blog search feed or alert for your company’s name. Maybe none of your people are on Twitter - you can subscribe to a feed for a search via Terraminds.

Concessions:

Some of the critical things that get said about you online might not warrant a response. Just decide which ones do and file the rest away somewhere.

Communicating in this different context is very new and challenging for traditionally trained business people. Good luck.

6. Traditional media and audiences are still bigger, we’ll do new stuff when they do.

Possible replies:

They already are, from blogging to online video to social networks to mobile to micro-blogging - big, established brands are already doing all of it. They may be experimenting, but they will bringing all their market dominance into the most useful social media sectors as soon as it suits them. Will that be too late for you? It might be.

Traditional media audiences are also more passive - online audiences can engage with, rebroadcast and otherwise amplify your communication efforts.

Concessions:

That’s true and fair, if you think your business can thrive while taking that attitude towards a period of intense social and economic change then you just rock on with your bad self. I’ll be taking my love of innovation to the employer down the street.

7. Upper management won’t support it/dedicate resources for it.

Possible replies:

A lot of technology adoption has for some time had to happen despite this reality. People adopt new tools on their own at work, without permission. They discover powerful ways to solve their problems and then they share them horizontally.

Compared to other expenses, meaningful engagement with new online technology does not have huge costs.

Concessions:

Meaningful engagement with new technology does require some expenditure of time, energy and money. If you’re not willing to do this then you’ll be unlikely to see big benefits.

8. These startups can’t offer meaningful security, they may not even be around in a year - I’ll wait until Google or our enterprise software vendor starts offering this kind of functionality.

Possible replies:

The skills you build and the connections you make will remain with you, though. This is a paradigm shift underway more than it is about any particular tool.

Chose your tools carefully - expect data export as an option so you can back up or switch services whenever you need to. This isn’
t widespread yet, but the best tools allow it.

Concessions:

You do need to be careful, but if you do so intelligen

tly then the benefits can really outweigh the risks. It is very possible that any one of these services might shutter in a year or two, but you’ll get a lot out of them in the meantime and hopefully won’t lose access to your data if that happens.

9. There are so many tools that are similar, I can’t tell where to invest my time so I don’t use any of it at all.

Possible replies:

A little experimentation goes a long way.

Try asking people in your field who have some experience what tools they are using.

Try searching for keywords related to your work in various sites. You’ll find out that way which sites are best suited for you.

Concessions:

It’s true, it can be very confusing and very few people are able to keep up with all the new services that are launching. Don’t worry about it, just do your best.

10. That stuff’s fine for sexy brands, but we sell [insert boring B2B brand] and are known for stability more than chasing the flavor-of-the-month. We’re doing just fine with the tools we’ve got, thanks.

Possible replies:

Some of these things, RSS and Wikis for example, aren’t passing social fads - they are emerging best practices and the state of the art.

ROI is very hard to measure, but try allocating a little energy over time to experiment and see what kind of results you get. From connections between people and projects, to search-friendly inbound links, to early access to important information - the benefits of engaging in new social media go on and on.

Conclusion

Finally, remember that social media is about people and their impact on your brand and your impact on their lives. If you are relevant, add value, and have an open and honest conversation with your customer, then you will reap the rewards. And that, my friend, is ROI.

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About This Post
Published: February 7, 2008
By: George Seybold

This article is filed under:
Blogs | Conversational Media | Forum | Social | Social Networking | Web 2.0 | Wiki | Word-of-mouth

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