The Future Marketing Benefits of Near-Field Communication

I went to a new media discussion panel last week, and among bringing up some very interesting topics relevant to my studies, they tossed around some terms I wasn't completely familiar with. I jotted them down and just now went back to learn more about Near Field Communication and QR Code.

I think Near Field Communication has the greatest possibility for web 3.0 marketing of anything I've seen recently. Now, I'm no expert in how this all works, but stay with me. From what I've read Near Field Communication is a capability of smartphones that allows them to communicate with each other when they are brought into close proximity of one another. Right now, this distance is at no more than a few centimeters, and writing this now I recall seeing a couple commercials for smartphones with this ability.

I see this as the first step in a huge new development for our mobile devices. Apps like "Google Wallet" are already making it possible to place your phone near a credit-card scanner and pay for things without the use of cash or card. While this sounds crazy awesome, I worry about the security risks this poses to one's funds when, via Near Field Communication, someone could potentially access your Google Wallet account just by being close to you and mildly tech-savvy.

But anyway, on to marketing. What I think would be interesting is that as the distance these fields are capable of reaching increase, couldn't nearby stores and shopping areas send a friendly promo to your phone, or the email account you check on your phone, when you become close enough to the physical place of exchange? You see the ad, something catches your eye, and behold, a handy map that shows it is just a short distance to the shop in question, and you have a few minutes to spare. I find that shopping online offers me a great deal of chances to doubt my purchase or abandon my cart. When I'm holding something in my hands that I want, I'm much more likely to cave and buy it. Sure, this whole new marketing scheme has the potential to be extremely annoying and invasive, but I predict that someday soon, someone or some company will figure it out. Web 3.0 is all about mobile devices and being able to do all that we can from a computer from our phones. Why not use them to bring online shopping back to the real world?

MySpace: The Next Big Thing?

We all remember MySpace, that ultra-customizable web application that was a great place to host your garage band. The general opinion of MySpace today isn't exactly favorable. I know that for my generation, it usually elicits laughter and complete dismissal when someone brings it up, MySpace was SO eight years ago. People my age were young teenagers around that time, so we naturally associate our unhappy MySpace pages with boy bands, middle school drama, and puberty.

What we will admit, however, is that MySpace definitely had an edge over Facebook for a couple years there. It was officially launched in early 2004, when Facebook was still a university-based network. I know that I didn't get a Facebook account until 2007, but MySpace was already on the decline by then. Overuse of banner ads slowed down navigation of the site, and everything just became too cluttered, especially when the novelty of customizing your page wore off. Facebook's streamlined approach was just more attractive to the online population.

What matters now is that MySpace is attempting to make an unprecedented comeback in social media. MySpace will continue to be entertainment-oriented, they say. They know that a large portion of its loyal visitors stuck with it as a way to discover and listen to free music. Taking a note from Facebook's success, the site has been completely redesigned. It's simpler, more attractive, and extremely conducive to mobile devices. Looking at examples of the new layout, social media savvy people will notice it appears to be the ultimate combination of  Pinterest, Tumblr, and Facebook. Could this be a winning combination? Instead of being an internet slave like me, who manages accounts on each of the sites mentioned above, would MySpace be the ultimate convenience where I can post everything in one place?

MySpace has enlisted the help of actor/pop artist Justin Timberlake to promote the revival of the site. (Lest we forget Justin Timberlake played a starring role in The Social Network. Irony?) Can MySpace overcome its dismissive reputation? Will JT & co. be able to convince the world to join up with YET ANOTHER social media platform, where of course gathering information and marketing segmentation of its users is the bottom line? Googling "MySpace comeback" produces dozens of news articles on the subject, but the tone does not seem supportive. "Justin Timberlake tries to bring MySpace back" and "Justin Timberlake's MySpace Comeback Destined For Failure" are two of the top results. Well, I guess only time will tell! If millions of people return to their forgotten accounts with new inspiration,  less-than-stellar reviews from traditional news sources won't mean much.

Red Bull Does It Right

Our first project of the semester requires us to analyze the marketing strategies a company uses through its use of applications such as social media, web promotions through videos or emails, and any other specific marketing tools that particular company has employed. Our group is studying Red Bull, and boy do they have a real flair for engaging their customers.

Red Bull is the fifth most-liked company on Facebook, with over 32 million fans. Visit their page, and you'll see something interesting. Not only do they promote new products such as the new Blue, Silver, and Red canned drinks, but the overwhelming majority of the plentiful pictures posted are of people doing extreme sports, with the Red Bull logo just barely visible on the athlete's helmet or gear. Red Bull has become more than a brand: it's a lifestyle. The partier, the extreme athlete, and any combination thereof, they all follow the Red Bull lifestyle. Sure, most people probably use Red Bull as a convenient caffeine source to get through another boring day of school or work, but that is not the image that they have successfully associated with their name. Red Bull is about youth, fun, and excitement. And who doesn't want a little more of those in their life, especially when they come in a can?

Red Bull teams up with bands, celebrities, and athletes to better reach their target markets. They work internationally, nearly half of the Facebook posts are in a language other than English. It's silly to think that all 32 million of those fans are English-speakers, and seeing these perplexing posts only reinforces to the audience how Red Bull so is much more than an energy drink.

I'm not a Red Bull drinker, personally. But that didn't stop me from wishing that I did while combing through the pictures and videos available through their Facebook and Twitter pages. The association has been made in my brain that drinking Red Bull makes you inherently more awesome. If that's not effective marketing, I don't know what is. Red Bull maintains visibility in the media by sponsoring all types of sport events, from the record-breaking Stratos freefall to breakdancing competitions, to musical events across the globe. Spending money to give an aspiring breakdancer their chance at fame is PR work and advertising all in one. When it comes to marketing, on and offline, Red Bull does it right.

How Much is a Facebook Fan Worth?

In our textbook, "Internet Marketing: Integrating Online & Offline Strategies" by Roberts and Zahay (third edition), there is a very interesting pie chart that proclaims to show "the estimated value of a Facebook fan." Of course Facebook fans have value, social media is a proven vehicle for successful marketing, but I wondered how Syncapse Corp could possibly draw these specific monetary conclusions. Unfortunately, Syncapse Corp does not let you simply view their files on the subject, so I'll have to use outside sources which have drawn significantly different conclusions on the same topic. 

According to a study conducted by social media agency SocialCode, they have concluded that the average Facebook fan is worth only $10. That seems much more reasonable to me. I myself am a fan of many companies, film/television studios, and projects on Facebook, but I cannot claim to have spent anywhere near $136.38 supporting any of them, except perhaps one or two involving my strongest interests that exist independent of a single Facebook fan page. 

But SocialCode's study was pretty thorough: "Looking at more than 5 million Facebook ads placed by over 50 clients (spanning verticals, but mostly in consumer packaged goods, auto and finance) from between May and September of this year, the study looked at the cost of acquiring new fans, and what it took to get them to perform a desired action." http://adage.com/article/digital/study-facebook-fan-worth-10-average-brands/231128/

The $10 comes from "assuming the constant cost-per-click of $1," says the top of the article. Is a click really worth $1? To many companies claiming their slice of the Facebook pie, yes it is. And the fact that Facebook fans are 291% more likely to engage with the brand than non-fans seems like a pretty solid venture. I, however, am still skeptical about the truth worth of a "click." Our book defines CPC as the cost of the ad, divided by the audience, times one thousand. CPC is an analytic tool that any marketer with access to their company’s insight information can see and interpret. I suppose that ultimately, a fair share of those clicks will lead to a purchase, and then that Facebook fan has significant monetary worth. But $10, let alone $136.38? I think I need to take a look at the Google analytics section for some of these online marketing campaigns.