Archive for August, 2008

A Wonderful Prank

Not much to do with social media, but a prank that a wine expert pulled on Wine Spectator magazine is priceless. Wanting to expose the Spectator’s wine awards as basically paid advertising, he created a bogus restaurant in Milan, complete with fake website, fake menu, fake wine list and — the social media angle — fake reviews on Chowhound. He even named the restaurant Osteria L’Intrepido — Italian for “fearless restaurant.”

After paying a $250 fee and filling out an application, the bogus restaurant received a Wine Spectator excellence award — even though many of the wines on the list had been rated poorly by the magazine.

Much more in this great Chicago Tribune article.

Dell and Microsoft on Facebook

Dell and Microsoft’s Be a Campus RockStar promotion on Facebook

Earn points toward a One Republic concert on campus by watching sponsored videos, inviting friends and taking other actions. Ends Aug. 31

Stats: 139,000+ monthly active users (per Facebook).

Agency: Mr. Youth

Kohl’s Back to School app on Facebook

Kohl’s Rock Like a Star video contest

429 entries as of Aug 19. (Not sure how many are actually videos – looks like a lot of people took the easy route of submitting a photo and written story instead.)

Agency: Votigo

Casual Male’s Social Network

One of the challenges of analyzing social network marketing is that there is a lot of social network marketing going on. To make it easier for me (and you) to keep up with what marketers are doing, I’m going to start posting links to marketers’ social network sites, campaigns and pages, as well as related articles.

Here’s a start.

Casual Male BoldXL

MediaPost article

Tampax Takes Risks in Social Networking

When someone asks me the secret to success in social media marketing, I often say that the product has to be something that consumers feel passionate about, and more importantly, that they are willing (and excited) to share their passion. I then go on to say, “tampons, for instance, are not something most people feel passionate about.”

So what to make of Procter & Gamble’s willingness to put the Tampax brand out there in the social media space? Tampax has been a willing sponsor of teen girls’ social networking (last year it sponsored a cheerleading-video competition on a site called Takkle.com).

Now, it is sponsoring Stardoll, a virtual world of sorts where girls can dress up cartoon doll avatars and then interact with each other. At Stardoll, Tampax sponsors the MonthlyGiftClub, where members can get gifts based on group milestones. According to Brandweek, some of the gifts might include white virtual clothing for their avatars — a play off of Tampax’s campaign featuring women wearing white clothing.

Here’s where I start to go “ewww” and wonder why girls would join this club. But I checked it out and it’s surprisingly active. The member list runs nearly 3,000 pages (and there are a couple dozen names per page). The guest book runs over 1,000 pages, and the discussion forum is quite active (if you call a lot of “lol” and “thx” posts active). No one’s talking about Tampax or tampons per se, but then again no one’s actively dissing the brand (that I found). Which says something.

Maybe I need to find a new product category to mention when I talk about brands that don’t make sense in a social environment. Anyone have any ideas for me?

More on FIM Revenue Growth

I published an analysis of revenue growth at Fox Interactive Media in eMarketer’s daily newsletter today. You can view it here for a few days until it goes behind the firewall. Essentially, while revenue growth is falling at FIM, US revenue per unique visitor is trending upward, which means that monetization is improving.

Fox Interactive Media Falls Short of $900mm Revenue Mark

News Corp. said today that revenue at Fox Interactive Media rose 23% in its fiscal fourth quarter ending June 2008, to $225 million. That’s up from $183 million in the 2007 fiscal fourth quarter.  Sounds great, except that revenue at FIM grew 55% in the fiscal third quarter and 87% in the fiscal second quarter.

Fox Interactive Media Revenue – Fiscal 2008

  • Fiscal 1Q 2008: $188mm (up 80% y/y)
  • Fiscal 2Q 2008: $233mm (up 87% y/y)
  • Fiscal 3Q 2008:$210 mm (up 55% y/y)
  • Fiscal 4Q 2008: $225mm (up 23% y/y)

Adding it all up, FIM generated revenue of $856 million in fiscal 2008 — off substantially from the $1 billion target News Corp. chief Rupert Murdoch had set this time last year (and down from the $900 million News Corp. had suggested in last quarter’s earnings call).

Moreover, News Corp. indicated guidance of just 30% revenue growth for FIM in fiscal 2009 — which works out to $1.1 billion. Things are definitely slowing down over there.

News Corp. has never said publicly how much MySpace accounts for in FIM’s revenue, but the generally accepted estimate is 80%.

More summary of the earnings call at PaidContent.

MySpace Ad Revenues – What Will News Corp. Say?

News Corp. announces its fiscal yearend earnings tomorrow and I’ll be watching closely for any sign of weakness in MySpace. Last quarter NWS said that MySpace parent company wouldn’t meet its $1 billion revenue target and that led me to revise my social network ad spending forecast downward.

MySpace has been rejiggering its ad sales group, and that’s not always a good sign. TechCrunch reported last week that MySpace was letting as much as 5% of staff go — a move the company characterized as “performance-driven”. Meanwhile, several new execs have been brought in on the marketing side, with more to come.

In other MySpace ad news, today’s WSJ takes a deep dive into MySpace’s Hypertargeting, which lets advertisers target display ads based on information gleaned anonymously from MySpace users’ profiles. (The Journal quoted the social network ad spending forecast I created for eMarketer.) Launched several months ago, the hypertargeting program now offers 1,000 “buckets” (love the terminology — people as plastic) to advertisers.

I have said for some time now that I think hypertargeting makes a lot of sense for social networks like MySpace. As long as the ads don’t get too creepy (i.e., a dating service ad for someone who just changed their profile from “in a relationship” to “single”) then the better the targeting the more likely it is that people will click on the ads. And we all know that social networks need all the clicks they can get.