Facebook doesn’t know– for sure– how to monetize. In the article by Gokul Rajaram– Facebook’s Advertising Product Director – He admits Facebook is a mid-funnel (marketing funnel) Play. (re: Marketing funnel – I’m defining as Awareness, Consideration, Intent, Purchase, Loyalty, Advocacy and Referral — and then repeat for higher customer lifetime values.)
I think the answer is a combination of social media & game mechanics.
Perhaps the reason they are struggling is the same reason most platforms struggle. They do the same thing and expect different results. Through time businesses have tried to figure out how to get customer’s attention. It may have started with standing in the townhall pitching one’s wares to using the “box” or TV to blast messages to using ad networks like Google – to get in front of the eyeballs. At least Google can track through to purchases, but it can’t give you individual Social CRM Data.
It seems to me – and I could be wrong- that these are all the same type of interaction. They are broadcasting to the masses, making it difficult for businesses to know who heard, who cared and who acted upon the shouting.
And I wonder, why would you limit yourself to being a mid-funnel play when you could be a low, mid and end funnel play? I don’t think its conscious – that platforms are choosing to be a in only part of the funnel. They just know what they do and do what they do. I’ve long been one to take a different tactic in my career. I like knowing about the whole spectrum of business and perhaps because I’ve spent time in positions that serve different parts of the funnel, I have a different point of view about how this could work.
Its a long time coming – re understanding how social media supports business goals… When I first got involved in social media I “got it” from a visceral point of view. It made sense to me- being that I’m a very collaborative person and if customers and businesses are talking to each other – only good could come from it.
From all my ROI modelling – and because we have entered the 3rd WAVE of social media- meaning that the pragmatists want to know the business value or ROI. They are saying, “Show me the money!” So what does it take? I think it takes a combo of social media and game mechanics. Game mechanics – something I’ve been fascinated with and spent a great deal of time with lately – is really designing systems and processes that “make” people want to do the things you want them to do. Having been a manager for years in companies- there’s always that issue of motivating the behaviors you want. Its also true of customers.
Why do I think the magic mix is social + gaming mechanics? — It requires social because it takes the brand ambassadors to do the work (1 to millions vs the marketing department trying to send out the message) — AND it takes gaming mechanics to get people interested and keep interacting… We are experiencing social network fatigue… and without the gaming aspect… people are jus too tired to keep going… or their attention gets diverted by the next shinny object… or “offer”
I’ve been working with an app that is the full spectrum – upper funnel, mid funnel, lower funnel & drives loyalty, referral & starts the funnel again. If a company can take all their marketing initiatives – and drive them through a process and app like this, they can obtain an ongoing social marketing ROI…
What’s your sense? or Cents?
For More info on my Work:
Ebook: Social Media ROI Myths and Truths
Social Media ROI YouTube Videos:
Video 1: Building the Business Case for Social Media,
Video 2: ROI of Social Media,
Video 3: How Social Media Benefits the Whole Company
White Papers: Social Media ROI
Book on Monetizing Facebook:
Like My Stuff – How to Monetize Your Facebook Fans With Social Commerce & A Facebook Store
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