Monday 10 June 2013

Retailers' Digital Ad Spending Nears $10 Billion


U.S. retailers, already the heaviest spenders in digital advertising by category, are forecast to increase their spending by another 14% to $9.4 billion this year. By next year, that figure will surpass $10.4 billion, reaching $13.3 billion by 2017.
According to estimates from eMarketer, retailers already account for 22.3% of all digital ad spending, the most of any industry. About two-thirds of their investments are in direct response ads (i.e., those designed to lead to a sale, rather than promote a brand). Direct response formats include search, mobile messaging and classifieds.
Other industries, including financial services, consumer packaged goods and travel, are also forecast to increase their investments in digital advertising over the next five years. Like retailers, firms in the financial services and travel industries are investing the majority of their digital ad dollars in direct-response formats. Consumer packaged good companies, however, are dedicating over half of their digital ad dollars to branding opportunities, such as banner ads and rich media.
Not all industries are increasing their digital ad spend as quickly, however: The healthcare and pharmaceutical industry are only expected to increase their spending by 6.4% this year, less than half the U.S. average of 14%. Consumer electronics and telecom companies are also investing at a slower pace, at 12.5% and 11.1% growth, respectively.


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Sunday 9 June 2013

Gallaga: Complaining on social media doesn’t guarantee a happy customer ending


Somewhere along the line during the rise of social networks like Twitter and Facebook, it became conventional wisdom that if you have a customer support problem, complaining about it online might get you faster results than calling a phone number or sending an email.
Companies including Dell, which has a social media bunker, and the cable company Comcast with its “@ComcastCares” Twitter account, became known as early pioneers in good social media customer support.
Today, it’s become almost routine that companies scour social media services, online forums and blogs looking for complaints and addressing them directly. But taking your complaint online and posting about it publicly doesn’t necessarily mean you’ll walk away a happy customer. I spoke to three Austinites who had vastly different experiences taking their complaints public. Here are their stories.
The pricey data plan
In 2011, Christina Trapolino got a phone call from T-Mobile with an offer to change her data plan to lower her bill on an account she shared with her stepfather. The plan backfired, making her monthly bill go up instead and sending her into a familiar maze of customer support calls to try to resolve the problem.
Trapolino, who now works as director of marketing for Austin’s TravelShark, posted about her woes on Google+, where even at that time she had about 20,000 followers. The lengthy post made the rounds on other social media services and got the company’s attention. She got a response from T-Mobile’s social media team and from a company executive who followed up to make sure her needs were met after reading about Trapolino on Facebook.
“I had never had that experience before,” Trapolino said, “I was impressed with it.” More impressive, she said, was that wireless companies have a reputation for being frustrating. “Social (media) pushed one of those companies into behaving that way. If you call on the phone, you’re not going to get the same experience.” She posted a follow-up about the story’s happy ending but points out the the company never asked her to do so.
Trapolino eventually canceled her T-Mobile service when she moved to Austin, but not because of the customer support. “The coverage where I live wasn’t good. But I recommend them all the time.”
The dishwasher washout
Daniel Helfman, who handles marketing and business development for startups in Austin, thought he did his homework. He and his wife bought a KitchenAid dishwasher after reading a positive review from Consumer Reports. When the dishwasher failed to perform as long as the family of four expected, the Helfmans started a Tumblr blog, “Kitchen Aid Shame” detailing their efforts to get a repair done. It was the first time Helfman had used social media to complain about a product.
The Tumblr only lasted two months, from March to April of this year, and failed to go viral or catch the company’s attention.
“Perhaps if I posted on Facebook, made a YouTube video and interlinked all of them, the reach would have been greater, but honestly I wanted to give the KitchenAid customer service a chance to resolve the issue on their own (which they never did),” Helfman said in an email to the American-Statesman. “In the end, our family needed a working dishwasher, so we just paid the $260 to fix it.”
The highly escalated jackets incident
For an example of social media customer service contact that can go horribly wrong for everyone involved, let’s talk about Ian Fenn, a user experience designer and consultant who splits his time between London and Austin, and an online apparel company called ScotteVest.
In 2011, Fenn purchased his first jacket from the company, which makes stylish, outdoorsy clothing. He loved it. He purchased another jacket and had a problem with it. The company sent a replacement jacket, but Fenn says he had similar issues with clips attached to the jacket falling off.
Nevertheless, Fenn purchased more jackets this year, bringing the number of items to six, and became convinced that a manufacturing defect was causing continued problems with the items. He tweeted. He emailed. He posted photos on the website Flickr. He posted a conciliatory open letter to the CEO from his mother, which said, in part, “If you travel to London do let me know as you would be welcome to visit me for a relaxing visit in the country.” He created a “Storify” detailing his social media interactions with the company. Fenn complained that the company’s offer of $30 to get a jacket repaired was not enough money to get tailor work done in London after accounting for exchange rates.
ScotteVest chief executive and founder Scott Jordan soon got involved directly. Via email, he banned Fenn from purchasing any more products or receiving future customer support. Fenn’s fiancee, Annette Priest, who also works in user design, contacted the company separately about one of the jackets from Austin while Fenn was in London. The company said this raised a red flag, leading Jordan to become even more suspicious. This led to a phone conversation between Jordan and Priest, but the call did not result in lifing the ban on Fenn.
Fenn, who says his job relies on advising companies on the best ways to guide customers, says he was aghast. “I went from being a fan to being a disappointed fan,” Fenn said. “I think he views any product issue as a personal attack. I wasn’t rude. I didn’t swear. I was rather surprised and frustrated.”
Fenn says there’s a British tradition of complaint letters. Previously, he complained on Twitter about public transit in London. First Capital Connect, which handles his local train service, subsequently invited him to the company’s passenger board to discuss its service.
For Jordan, Fenn has become a thorn in his side and one of only three or four customer service incidents the company has had that has escalated to such an extreme since it was founded in 2000. In a video Skype call with the American-Statesman, Jordan was sincere but blunt about the situation.
“It is a very rare occurrence for us, what happened with Ian,” Jordan said. “We do not allow customers to bully us. We have a saying here: The customer is always right except when they are clearly wrong and abusive to our people. It’s just rude, quite frankly.”
Lauren Bourgeau, who works in customer support and social media for ScotteVest, said the messages from Fenn became overwhelming and that while much of the communication was cordial, Fenn eventually began reaching out to her company’s customers through social media to try to bolster his case.
“The person wants to get their way no matter what and act like a child,” Jordan said. “We handled it properly, and I stand by it. … We will not sell to him. He is flagged. No ScotteVest for you!”
One thing Fenn and Jordan agree upon is that the interaction became highly personal for Jordan, whose name is directly associated with the brand. “It’s built upon my reputation, my likeness,” Jordan said. “It’s personal!”
The company recently ranked 86th in a “Social Media 300” list of companies who use social media effectively from the publication Internet Retailer.
Fenn says he’s disappointed and continues to press his case online, recently launching a Tumblr for complaints about ScotteVest.


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WTF, Internet? Celebrities don’t need their own apps (and neither do you)


I’ve said it many times: I love Instagram. I also love hip-hop. So you would think, naturally, this means the day I started following Snoop on Instagram would have been a red-letter day!
Well, it was – for a little while. Back then, Snoop was posting photos of his wake-n-baking, red carpet-attending, studio sesh-filled, Oregon Ducks-supporting lifestyle. I was amused, and I approved.

But then, a dark day descended in the form of the Snoopify app. In case you were unaware, Snoop has his own app. Honestly, I sort of like it: Who doesn’t want to deck themselves out like so:

snoopify example
Magical. Just magical.
Don’t lie. I know you do. You all do.
Unfortunately, however, the app includes an option to share these images to Instagram. That’s where the problem comes in: Snoop really, really likes Instagram. He also really, really likes self-promotion. Thus every time I open up Instagram, there they are: A damn hoard of Snoop’s Snoopified photos.
Snoop, you are ruining my feed. Just ruining it.

He is unfortunately not alone – there are far, far too many official celebrity apps. There exists a Chris Brown app for the four people that don’t hate that guy (yet), and a Britney Spears app, dubbed It’s Britney!. T-Pain’s I am T-Pain app (let’s all just appreciate that naming scheme for a moment) is a thing that is real and exists. There is – I shit you not – an official Reba McEntire app so you can keep up on her Twitter, blog, concerts, etc. All things Reba, all the time. What a world!
Why do celebrities think they need their own standalone apps? Why can’t you just use apps like the rest of us? Is that not good enough for you?

You do not need that much Chris Brown in your life, weirdo.
Think about it: Say you’re interested in the previously mentioned Chris Brown app (I hate you, we’re no longer friends). The app makes sure you know when he posts to his Tumblr, Instagram, YouTube, Twitter. So then you natively get your Chris Brown info here … but you also probably follow him on those sites. But the second you open those apps up, you’re once again greeted by the same stuff you already saw.

That is just excessive Chris Brown, plain and simple. You do not need that much Chris Brown in your life, weirdo.

What’s really terrifying about all this is what it could lead to. Yes, reader, I’m about to make a Slippery Slope argument (shout out to all my fellow high school debaters who identified, groaned, and yelled “logical fallacy!” at that). Hop on this Slip ‘N Slide and away we go!

snoopify
It’s time to chill on the Snoopify.
Right now, it’s celebrities who think they deserve these apps … but pretty soon, it’s going to be everyone. Social media has turned us into these narcissistic, hyper-connected, self-obsessed, faux celebrities. People rattle off how many retweets they got, how many people like their Facebook status, how many Instagram followers they have as proof of popularity. Social currency isn’t just a fun term – it’s a real thing that can get you stuff. Stuff and money!

So once this happens, not only will we have social apps in which we follow and engage with our friends, we’ll also each have our own apps that loop in all the content we’re creating with our various social apps, and then there will – naturally – be apps so that people can collect and browse all of their friends’ apps, which, as a reminder, contain previously mentioned social-app activity.
Apps!

The only solution I can see is to cut everybody down a notch, and that means I’m starting with Snoop. You’re outta my Instagram feed. Social media should be all about moderation, and this is pure gluttony. 
I’m sorry it had to come to this, but I’m trying to save the world from itself here, one horrible social app at a time. We all need to check ourselves before we wreck ourselves.


Read more: http://www.digitaltrends.com/social-media/wtf-internet-celebrity-apps-are-going-to-ruin-this-good-thing-we-go-going-on/#ixzz2ViUM6Wwg


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