May08
20
The Lesser Of Two Social Media Consulting Evils
I call myself a Web 2.0 expert. I run a company, Cerebra, which exists to make money helping our clients understand and where necessary utilise Web 2.0 technologies and trends.
As niche as we are, we’re not alone. We have global and local competitors. In South Africa, we have two kinds of competitors - those that started as social media agencies or companies from day one (Younique, Longtail, would be examples) and then companies that have existed for some time in either the digital sphere or general marketing, advertising or branding spaces that have adapted their focus to align with the ever-increasing need for social media services and products (AtPlay, a division of Saatchi, is the quintessential example).
An interesting conversation is arising locally around the concerns some have over the integrity, sustainability and quality of some of the latter types of companies (into which category Cerebra fits snugly) because by and large the minds behind them are, quite frankly, inexperienced and underexposed to ‘real business’.
Marc Ashton, who I cannot tell you much about because the ‘About’ link on his blog ‘404’s me is a majority shareholder of Rival - a company that caters ‘For all your Corporate Wellness, Industrial Research, Publishing, Branding and Design needs’, recently posted his thoughts on the matter in an article titled The Lame Concept of Social Networking for Business. He asserts the following:
I am so tired of seeing bloggers and “web entrepreneurs” going on about how “Social Networking” can revolutionise your business and can bring you mountains of business. Put bluntly – it can’t…
I’ve said it before and I will say it again – you guys that want to plug yourselves as Marketing or Web 2.0 experts – go and work in a real bricks and mortar business before you starting trying to pass yourselves off as industry experts. Find out what it is like to manage a budget and actually be held accountable.
Marc feels pretty strongly that a) there is no value for social networking in business and b) the majority of so called Web 2.0 experts in South Africa have no real business experience to speak of. I’ve asked Marc to name some names, but he has as yet omitted that minor detail.
Simon Dingle, respected IT journalist and radio presenter, published a stern warning on his blog recently against the ‘Web 2.0 Brigade’, who according to him can be identified by the fact that they only “want to talk about deployment, and they ignore the strategy discussion”.
Both bloggers have very valid points and do allude to the fact that here are some companies (a minority) who are doing a decent job in the Web 2.0 consulting space, and to be frank I don’t think either of them are talking about Cerebra (that is negatively), but without naming names their respective arguments lack conviction. If we, as the Web 2.0 brigade (and I’m quite happy to be lumped in that category), are missing the point we need to know exactly how so that we can address it, and improve. I don’t think any of us are genuinely trying to swindle business out of money, but that obviously doesn’t mean we always get it right.
As much of my time that is spent with corporate clients is also spent with online or digital agencies, advertising or branding agencies and marketing consultants explaining the dynamics of Web 2.0. Many of these people go one to use these insights - my IP - in their own consulting initiatives. I have no problem with that, a simple Google search does the same job!
But here’s where it gets interesting for me - I think I see the evolving Web and it’s impact on business from a unique perspective BECAUSE of the fact that I have very little corporate or big business experience to speak of. I’ve never worked in an Ogilvy or an FCB. I’m really just an ordinary guy - and as I keep saying in presentation and consultations, I think Web 2.0 is significant because of it’s impact on ordinary guys and girls. Part of my strength is that I haven’t been conditioned into that big business mindset. I speak another language - an arguably naive but painfully honest one, that I believe reflects the sentiments of many consumers.
Jeremiah Owyang, one of the world’s leading thinkers in the social media space, contrasts the posts of Marc and Simon in his recent post, Before You Hire Those Social Media Services in which he points out that “there are more and more advertising, interactive firms, search engine marketing firms that are starting to offer social media services, but be warned: before you buy, do your homework and check out if they are walking the talk.”
On one hand it appears (at least according to Marc and Simon) that we have fly-by-nighters punting strategic interventions but lacking real business experience, and on the other hand we have (at least according to Jeremiah) established companies who grew up as agencies or consultancies now offering social media services as sideline offering or a fleeting trend without a deep understanding of what it’s all about.
This really does leave modern business in a twinge, doesn’t it. Because if I know anything at all for sure I know that companies are at the very least concerned and sometimes intimidated by the hype around Web 2.0.
The answer, I believe, lies somewhere in the middle. If one is going to offer social media services, one needs to have a deep and broad understanding of the technological, commercial and societal implications of the trend. These companies also, I believe, have an inherent responsibility to strip away hype - not add to it. I can say this for sure in support of Marc and Simon - beware the social media consultant who adds to the hype - there is more than enough hype to go around already. And if they move their business into implementation it is imperative, as it has become for us at Cerebra through some tough learning, failures and plenty of school fees, to hire the right talent to bring those necessary expertise to the table.
Last thoughts - this is still very much a new and emerging field. Web 2.0 as a term is a tender 3 years old. We need trail blazers and innovators, but they need to take responsibility for what they preach and how they implement it. That said, I’ve met very few, if any, marketing or HR managers in big companies that are willing to hand over significant amounts of cash for anything, never mind obscure social media stuff, without asking the right questions first. I may have never managed a huge corporate budget Marc, but they do every day 
Solid article Mike - I think you’ve raised this issue at the perfect time.
I too (as you know) ‘lump’ myself in the Web 2.0 category. My experience is perhaps different however in that I was once one of ‘those’ marketers who for 5 years ran an international brand and had large budgets to spend.
That was a few years ago and if I were in that position today I would most definitely be exploring the social media space - what an opportunity to get direct, honest brand feedback. What a boon to forecasting, ad planning, customer service etc. That being said the elements of ‘newness’ and measureability would be of concern.
As you rightly say Web 2.0 as a term is only 3 years old (probably younger in SA) has our medium perhaps made us impatient? I’m of the firm belief that I’ll carry on chatting, consulting and sharing and one day SM will be allocated a bigger slice of the pie. The more we brag about success stories and tweak and modify ideas and campaigns (the beauty of the online medium) the more we learn and the more weight SM will hold.
Consider that a few years back online banner ads were revolutionary….we’ve come a long way and customers responses and habits are changing - I do believe that intelligent marketers will lead the way in changing with them.
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Fortunately, as you point out, there really are good choices out there globally for companies looking for strategic as well as tactical/executional help. I’ll spread some love with a few individuals and a firm I’d definitely recommend (and I’ll refrain from tooting my own horn:)). There are specialist firms like Voce who are clearly doing it right. And there are individuals like Jake McKee, Marshall Kirkpatrick, and Joshua Porter who have helped dozens and dozens of companies with their particular needs.
As social media can mean many things, “social media consulting” covers a wide and varied swath, and I think part of the vendor selection stage necessitates figuring out exactly what it is you’re looking for, or what kind of problem you’re trying to solve.
Great post. I think in the near future as social media proves social media in more of the main stream eye, there will be no argument of whether it ‘works’ or not and then simply they effective and those who work from hype will be seperated, but that is like any business. Any b 2 b relationship should be carefully researched and thought out.
I on the other hand ran strategy and client services for The White House, then the top creative agency in the country. I was with Y&R. I also ran huge ad budgets for Nissan and Ford, and been consulting for more than a decade
I am not concerned by fly-by-nites let them fly by.
But as a baby boomer and with grey hair to prove it and the ability to talk to those people with the budgets.
Its really not about the technology its about an amazing set of tools that will make a real genuine contribution to corporate bottom lines, whether enabling staff or engaging customers.
I am very very excited about this stuff.
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You are so spot on with your commentary here. And as Walter Pike writes, it’s the bottomline that matters. And social media, with the right strategy execution, does add to the bottomline. Thanks for this.
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This kind of discussion interests me a lot. I think part of the problem is that marketing people often try to appear smarter than they really are. If you boil it down, marketing is actually pretty simple… which is maybe why so many people pursue it.
Marketing is, at its core, about initiating and maintaining profitable relationships. If you believe that, then social media / Web 2.0 has a fairly important role to play. Additionally, you don’t need to be a corporate veteran to do it right - you just have to be good at understanding relationships.
I think where the ubiquitous ‘Web 2.0 Consultant’ often gets it wrong is that they don’t understand the basics of conducting relationships. Things like consistency, authenticity, taking feedback, communication, keeping track, keeping your promises - all things at the heart of good marketing - fall by the wayside.
These are not complicated skills, and certainly don’t require 10 years experience at a prominent agency to acquire.
It certainly helps if you have a good understanding of business, but it’s not as critical to a successful marketing campaign as a great understanding of conducting relationships.
So, Mike, I reckon that your kind of business (and mine, for that matter) will continue to flourish despite negativity about the Web 2.0 stuff… as long as clients correctly understand the context, within marketing, of what you’re offering.
I think it boils down to: do you want to hear from customers, and interact with people who are potential buyers?
Many companies scoff at social media marketing, but they also have lousy customer service and don’t want to hear anything except “how can I buy your product?”
The difference between old marketing and new marketing is vast. Social media marketing is just one aspect that has to be mastered. Corporate culture must also change radically.
You are right that strategy is important, but corporate attitude comes first. If you see customers as victims and suckers, objects to exploit and take money from, then no Web 2.0 application can save your business.
Thanks for your comments guys.
I think Fred is spot on - marketing is, and always should be, uncomplicated and focused on simple, measurable and profitable action. Social media consulting is largely about reaching an evolving market with new tools. It’s that simple. If the tool doesn’t fit, don’t use it
If there’s no place to leverage social media, don’t. Let us not, as social media consultants, try and flog horses that are way beyond defibrelation.
Mike, I think you hit the nail on the head. I too was pondering a reply to Marc and Simon and even though I’m not 100% into Social Media fulltime (yet) I do feel that no company with a big budget just goes around handing out wads of cash because some kid in their 20’s knows a little something about this Web 2.0 wave.
At the end of the day, you can’t bullsh!t a bullsh!ter. If you are going to pitch Social Media, you going to have some real world experience in it, which Cerebra, Younique and the likes seem to have.
Creating Facebook groups and twitter accounts definitely doesn’t count.
It counts if those accounts result in increased web site traffic and sales for the client. This I have done.
Top article Mike….
You have my other reply in the mailbox
Good post Mike - and good points.
I think a lot of what was said in my particular article was looked over by new media consultants because they took immediate offense to my cautionary warning against their nature of business. This put them on the back-foot and the only take-away for them was, “this dude thinks we suck.” When really they could have extracted some constructive advise from the article.
I did, after all, concede that many of them do offer value, but that what they offer must be placed in the context of the business as a whole. As such I personally recommend dealing with companies who get the bigger picture - and business experience is a huge bonus (but I didn’t list experience as an imperative, just a preference).
Myself and Marc’s articles were also markedly different and I don’t believe they can be bundled together in the conversation without mentioning the nuances.
Don’t make the mistake, however, of believing that businesses are astute enough to weed out the chancers. I deal with many businesses on a monthly basis writing case studies about deployments, studying the pros and cons and what they have managed to achieve using technology - and I repeatedly see businesses getting ripped off. Most of the larger enterprises do their homework and derive value, but many are too trusting of the consultants they engage with, and honestly wouldn’t know what to look for in assessing competency.
Fortunately this is changing and businesses are now run tightly out of necessity; they can ill afford to waste money on technology and skills that miss the mark or that they don’t need. This is forcing better research into what they are trying to achieve.
I have much more to say on the topic and will post a follow-up article soon. If anything, I’m glad to have raised backs, because that was my intention, even if the message has been misconstrued - and I am in no way suggesting that you have done so Mike, although I believe I have to clarify some of what I meant more explicitly.
Keep up the good work that is seemingly underway at Cerebra. I look forward to meeting with you and furthering this discussion.
“businesses are now run tightly out of necessity; they can ill afford to waste money on technology and skills that miss the mark or that they don’t need. This is forcing better research into what they are trying to achieve.”
Ten points to Simon for touching on what I am pushing toward
This is laughable. Social media marketing is not expensive, and many tools are free.
I have consulted with businesses and news organizations on social media. They have succeeded in establishing more personal relationships with customers and prospects. They have seen sales increase, customer loyalty strengthened, and marketing research into needs and desires expanded.
If a company merely wants to bombard customers with slick ads and arrogant promotions, that push product without creating an altruistic relationship and conversation, they’re doing Business As Usual, which leads to Business As Over.
There are charlatans and overpriced services everywhere.
But to act like social media marketing is vaporware, irrelevant, or “not our way of doing things” is quite naive.
A Very good article in my opinion.
I guess the founder of Facebook does not count as a player in the Web 2.0 sphere.
Anyone who has not read the books - The New Rules of Marketing & PR - How to use News Releases, Blogs, Podcasting, viral marketing & online Media to reach buyers directly by David Meerman Scott and the book The Tipping Point by Malcolm Gladwell cannot really comment about the Web 2.0’s potential.
Read these two in combination. The Tipping Point is not a PR book, yet full of lessons. They certainly complement each other.
The New Rules is a worthwhile read. I mentioned it in one of my newsletters and on my blog – within an hour I got an e-mail from the author – thanking me – that is quick and there are lots of leverage techniques to be learned from him.
@Deon - Yes, you are so correct. I highly recommend THE NEW RULES book, and I also received a reply, a blog comment, from David Meerman Scott the same day that I posted a brief review of his book.
Either you want to make a quick buck, and jeopardize future sales and customer loyalty…or you want to actually meet known needs of people and form mutually beneficial conversations with them, causing satisfied customers to become voluntary evangelists of your products and firm.
One-way broadcast propaganda is dying fast. Customers consider peer recommendations and uncompensated opinions far more credible than corporate PR and advertising.
You don’t invade a socnet and try to push product.
You join a social networking site, and engage in dialogue with the members. You provide insights, tips, helpful information, education, inspiration, in an authoritative and entertaining manner. You contribute expertise, in a regular guy fashion, while delivering expertise and perhaps some historical anecdotes.
This is the new way to market products, by being the “go to guy” in your field.
It doesn’t have to cost much, nor does it require a lot of time. But you need experienced social media veterans to guide you and keep you on track with changing trends and netiquette.
Twittering links, occasionally, to your corporate blog or ecommerce site, for a good reason, in a contextual manner, not only drives traffic to the sites, but generates great SERP power.
Mmany agencies sell Facebook, MySpace, Social Networks, and other “Social Media” projects without having expertise in house, or even having a clear idea of how to charge or what to measure. Way too many companies think hiring social media experts means hiring 22 year olds with Facebook accounts.
I disagree with the notion that Marc Ashton makes that there could be those that have plugged themselves in as Web 2.0 preachers without having been practioners. Yes there are plenty out there who fall into that category and those are the marketers out there who preach “Do as I say” not as I never did… and people bite on it every time.
But used correctly, Social Nets can and do revolutionize things and do bring loads of business. If they didn’t, we wouldn’t be having this conversation.
I have experience as the founder of one of Australia’s biggest agencies http://www.hothouse.com.au and currently as a start-up publisher at http://www.ourpatch.com.au
Traditional agencies - no matter what the PR says, want to keep making TV commercials. They approach the web like they approach any other medium. They want to spend the clients money in as simple manner as possible. That’s why they talk about web 2 and social marketing but when it comes to doing they run a few banner ads on Facebook and My Space and tell the client the social marketing strategy is under control. If they are really lucky they get to seed the TVC on YouTube. Social marketing - job done!
The real issues of leveraging social marketing are way more complicated. The tools are also not for everyone as you point out, however many companies who could benefit don’t because they hire a traditional agency with an interactive department (aka banner and microsite builders). I agree that the average web 2.0 agency is a little naive. Tagging a blog onto the website and building a Facebook group is not a solution for most marketing problems.
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