What does personalization really mean? You’ll be forgiven if you have absolutely no idea. As trendy catchwords go, “personalization” has become a go-to term for websites and online marketers, laden with all the possibilities of connecting with individual consumers and a departure from the limitations of a one-size-fits-all approach.

Nearly every online marketing vendor touts some form of personalization as the secret sauce for helping to target customers.

It makes sense. The potential of personalized online marketing, when done well, is enormous—and for that reason, it’s a compelling sell. The problem is, it hasn’t been done successfully thus far. And thanks to vendor hype and overpromise, just mention the word “personalization,” and most have learned to greet it with a healthy dose of skepticism.

But personalization isn’t just marketing hype. It’s a complex concept that really can live up to its billing. However, retailers, in tandem with their marketing vendors, must first identify what personalization really means—and what it means to their business and target customers.

Furthermore, when it comes to their websites, mobile sites, apps and CRM platforms, major e-commerce players need to realize that only through a customized combination of multivariate testing, optimization and personalization best practices can they truly begin to reach consumers with personalization that is effective and full of impact. There are no easy answers or instant solutions for creating personalization that works. It’s about evolution rather than revolution.

Defining Personalization

A truly personalized customer experience—what amounts to a custom website for every consumer—has been the Holy Grail of marketing for over a decade. Yet the very concept is conflicted, fragmented and confusing. Ask 10 marketers to define personalization and you’ll get 10 answers. You’ll also find that despite all the hype, the bar has been set low; most of these same marketers are hoping for nothing more than a few product recommendations or more effective targeting.

Even the experts don’t give us a whole lot of direction on personalization. According to Forrester, Web personalization is “creating experiences on websites or through interactive media that are unique to individuals or segments of consumers.” Just about as vague as every other definition.

In reality, every specific piece of information you can gain about your customer—from search information to online behavior and purchases—can be used to create a personalized experience. That means that your approach to personalization can be as simple (using one or two collected insights) or complex (a detailed formula based on multiple insights) as you want it to be.

With the right combination of technology, research and testing, e-commerce businesses can now deliver a personalized online experience that far exceeds anything that can be delivered in store—short of hiring a dedicated personal shopper. With the right personalization strategy and tools, companies can create an online equivalent of a brick-and-mortar store, where anything a consumer might want is located in a single aisle.

Technology Is So Personal

It goes without saying that your marketing team is comprised of geniuses, but a lack of imagination—and technology—may be limiting their vision when it comes to personalization.

Yes, they’ve thought about segmentation, recommendations and retargeting, but these techniques are only a fraction of what technology now allows. New sophisticated real-time automated SaaS solutions empower marketers to create personalized experiences that far exceed what was previously possible. With SaaS solutions working in tandem with strategy and implementation, companies can begin to move toward complex forms of personalization—and achieve online what is already being done offline with propensity modeling and other business analytics.

Really, knowing about low-cost SaaS solutions—and how to use them to take advantage of opportunity—might just be the most significant indicator of marketing genius.

Getting Started with Personalization

Once the right technology is in place, one of the best ways to employ personalization is with a set of “rules” that define parameters. These rules establish conditions for a specific visitor experience; for every insight gleaned, you create a more and more personalized experience.

Of course, rules don’t exist in a vacuum. When defining them, you must take into account known consumer behaviors, including the various stages that shoppers go through when making any kind of purchase and the fact that they may visit your site several times before actually pulling the “buy now” trigger. While this knowledge might seem to complicate your rules in the immediate term, it can be used to your advantage.

Sure, go ahead and create rules for first-time visitors, but you can and should also devise more complicated formulas that incorporate insights and data from previous visits and apply them to future visits. So, for example, retarget repeat visitors based on the last product they searched for during their last visit. This rule path can then be enhanced with complementary content or offerings, whether for discount on the searched product or an up-sell on similar items. It’s personalization that gives customers what they want and shows them that you value them—a must for creating relationships and loyalty online.

Keep in mind, however, that while targeting with rules is effective and often a great place to start, it does have its limitations.

Marketers will find it nearly impossible to manually define rules for expansive websites that have vast and diverse daily traffic. In this case, technology needs to be partnered with sophisticated behavioral targeting through mathematical models that enable you to predict the most compelling content and offers based on known insights and data points about each visitor. This type of model learns and adjusts dynamically over time to optimize visitor experiences with content that yields the highest conversion rate. This approach is also better for the broader range of content (product types, specific brands or destinations) that each individual receives based on unique predictive attributes.

Using Product Recommendations the Right Way

Want to see great personalization in action? Amazon continues to set the gold standard for best practices in personalization. The site has an unparalleled ability to recognize and deftly exploit consumers’ online browsing and buying habits. (Of course, it also has the advantage of customer interactions living entirely online, while most retailers have offline presences that dilute their ability to gather insights.)

Because of Amazon’s clear success, almost every major e-commerce site has taken steps to mimic Amazon’s highly successful interactions with returning customers. (“You were interested in XYZ, so you may enjoy ABC,” etc.)

But that doesn’t mean they’re getting it right. Everything from competing recommendations (you want shoppers to buy more, not different) or recommendations for products that are out of stock to a lack of testing and product reviews means that many recommendation programs are falling flat or, even worse, are counterproductive.

To offer successful personalization through recommendation, focus on the essential elements.  Product recommendations should be placed on category pages, product pages and the shopping cart or basket page, with each page type getting its own recommendation formula and approach. This approach allows for more targeted recommendations and for segmented testing and optimization of recommendations. Recommendation content, placement on the page and the design of a promotion all play a role in the success of recommendations. Segmenting and measuring the conversion impact of every detail (e.g., images, fonts, colors, the number of recommended products, the placement on pages, and the recommendation model used) can help you identify the approach that yields the highest conversion rates for your visitors.

With a program for monitoring and improving recommendations, you improve the shopping experience for each customer—and potentially increase revenue and cart sizes.

Maximizing the Opportunity  

Companies that have already successfully leveraged new SaaS solutions along with optimization and personalization strategies have achieved, on average, a double-digit increase in conversions. And with these programs becoming more common, consumers are going to be expecting a sophisticated level of personalization.

The good news is that with the SaaS-based model, companies can have personalization programs up and running immediately. Add in multichannel data from call centers and stores or branches, and they can create an organization-wide, cross-channel approach to personalization within a quarter.

There is no doubt that, after years of hype and hyperbole, we’ve finally found the holy grail of online marketing: Personalization.

When you think about it, the Darwinian idea of evolution is not a far cry from the way we as marketers adapt and change to new technology. With new ways of selling, new channels for promoting a brand and new ways of engaging customers, we’re constantly evolving to stay ahead of the game. And now in the era of rock-solid online competition, we have to evolve even further and ask ourselves: What does it take to lead the online conversion movement?

When it comes to our online strategies, it’s easier than ever to use data-driven, scientific tools to inform ourselves about what is really making our customers click. Through an iterative process of testing and personalization, your online visitors will begin to unknowingly select the best-performing content for your site. And the weaker content should become extinct with all the other not-so-great content choices that have cycled through your site. But in the end, the strong content survives, and in turn produces a web environment that pays off: better customer experiences and higher conversion rates.

1. Learn from those who are bigger, faster and stronger
When it comes to site optimization, the fittest brands aren’t just surviving—they’re thriving. Leading retailers have realized that the deep analytics and insights gained from testing with online customers is not only improving the efficiency and effectiveness of their e-commerce site, but several other aspects of their businesses as well. By having a better understanding than ever before of who their customers are, how they buy, when they buy and what they buy, businesses are now able to do everything better. For example, they can offer experiences more suited to customer needs and wants, they can cross-sell and upsell in-store, online, on mobile, on tablets, even in social, and they can drive more sales than ever before (which they figured out via constant, but relatively straightforward, changes to these sites).

2. Test your theory
Want to know the secrets of the most successful online retailing giants, eBay and Amazon? They test their websites constantly and as they go. Building on initial multivariate testing and website optimization programs that lead to increased site traffic, interaction and sales, those leaders roll out a variety of page and site variants to different customer segments to attain increasingly nuanced results and metrics.

Thanks to a continually evolving understanding of their customers’ behaviors, those powerful brands are able to regularly improve their websites in response to consumer needs and marketplace demands—all without disturbing the customer experience or implementing drastic changes that might compromise revenues.

3. Examine outliers
Online, everyone’s opinion matters—no matter how unexpected or seemingly bizarre an opinion might be. What you think customers want or how you think they should interact with your site just isn’t relevant because they will engage with you online exactly the way they want. That means that you need to start paying careful attention to everything they do. Ultimately, your visitors should design your website based on the choices they make on your pages. Testing will enable you to follow every aspect of their behavior and their interactions with your site, and it’s up to you to take that information into account to create the optimal site experience for your visitor.

Of course, customers don’t necessarily want the same things, and that’s where behavioral targeting and personalization comes in. With personalized web experiences for each customer, your website, mobile, tablet and social sites have the power to speak directly to individual customer needs, wants and interests—no matter how unique—thereby increasing customer loyalty, individual conversion rates and even purchases at checkout.

4. Select the best results, and apply your findings
Thanks to today’s cloud-based technology, you don’t need to wait thousands of years for the winning traits of your site to be revealed. Your testing efforts will begin to reveal data insights in a matter of days or weeks (though the lifespan of a test will vary depending on site traffic, conversion rate and uplift from the default).

Follow the 95% confidence rule when ending a test and identifying a “winner.” Here is the rule in layman’s terms: Based on what you observe in a test, you are 95 percent certain that the alternate or new version is better than the original.

Furthermore, that trait-selection process isn’t a one-off. Your site can be an ever- expanding and evolving centerpiece of your brand with a strategy for “continuous optimization.” Many factors can change how even your most loyal customers use your site, such as holiday seasons, promotions or just a maturing buying life cycle. With continual testing and optimization, you can ensure that your site is always in sync with consumer needs and behaviors.

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Take it from Charles Darwin, the man who has been quoted as saying, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” The success of your e-commerce site isn’t driven by the size or cleverness of your marketing team; it’s driven by your team’s willingness to respond to the demands of customers and adjust accordingly. Only when you evolve will your consumers evolve into loyal, active buyers.

We’re all human. We all make mistakes. However, when your mistake involves social media, it’s not that easy to make amends. Take, for example, the case of the (now) infamous KitchenAid tweet about President Obama’s dead grandmother.

If you somehow missed it, it went a little something like this: During the first presidential debate between President Obama and Mitt Romney, Obama credited his tenacious grandmother who helped raise him and passed away three days before he was elected president.

Moments later, @KitchenAidUSA, the company’s official Twitter account, sent this:

“Obamas gma even knew it was going 2 b bad! She died 3 days b4 he became president.” The insensitive tweet not only went to the company’s 25,000 followers, but also included a hashtag to make it a part of NBC News’ social debate conversation. KitchenAid hastily deleted the tweet, but the damage was done. Even after the head of the KitchenAid brand, Cynthia Soledad, offered an apology, many still expressed outrage and announced boycotts of the brand.

Of course, KitchenAid isn’t the only company who has fallen victim to social media gone bad. There is a plethora of marketing campaigns to choose from that all ended with disastrous results. Here are a couple listed below along with the lessons we can learn from each of them.

Toyota Camry

During last football season’s Superbowl, Toyota launched a major Twitter campaign meant to promote the Camry. Creating a number of Twitter accounts labeled @CamryEffect1 through @CamryEffect9, Toyota intended to engage users by directly tweeting them. However, this had the opposite effect: users accused Toyota of bombarding and spamming them with unsolicited messages. To their credit, Toyota quickly suspended the accounts and issued an apology, but by then it was too late.

Lesson learned: Not only is mass-spamming your social media audience an awful campaign plan, but in order to truly engage your community, tweets should be interesting and engaging. In the case of the Camry, it came across as nothing more than self-serving spam.

Qantas Airlines

Last year, Qantas faced huge backlash over a very poorly timed Twitter competition, inviting followers to win a pair of first class pajamas by tweeting their idea of a luxury experience. The promotion was arguably already in poor taste given the global economic downturn, but was also acutely insensitive given that at the time of the contest, the airline’s labor relations was at a standoff with the unions representing its pilots, engineers, baggage handlers and caterers. Qantas had grounded their entire domestic and international fleet, leaving thousands of passengers stranded. The competition turned into an opportunity for angry customers to share their gripes and jokes at the company’s expense.

Lesson Learned: Timing is everything.

Durex South Africa

Durex caused quite a controversy when they sent out this terrible tweet in South Africa: “Why did God give men penises? So they’d have at least one way to shut a woman up. #DurexJoke” The tweet certainly made an impression with tweeters, bloggers, and mainstream media picking up the story with the sole intent of trashing the brand. Durex later issued an apology of the offensive, misogynist tweet which was apparently sent out by their PR company.

Lesson Learned: Just because you have a hashtag joke does not mean anything goes, and sex does NOT always sell.

Now, for a couple examples of social media done right:

Canlis

A couple years ago, Canlis, a restaurant in Seattle widely regarded as the best in the city, celebrated its 60th birthday, and to mark the occasion, it ran a Facebook and Twitter contest where the winners were able to dine at 1950’s prices. From a restaurant where the average entree can set you back over $60, that’s a pretty good deal. Brothers (and founders) Mark and Brian Canlis personally signed 50 restaurant menus from 1950 and hid them around the Greater Seattle area daily for the 50 days leading up the Canlis’ 60th birthday. The “scavenger hunt” started anew every day, as the restaurant posts a clue to the menu’s whereabouts, via their Twitter and Facebook accounts. The first person to unravel the clue and find the hidden menu won the dinner.

This was a genius social media marketing campaign and I love the creativity that went into it. The contest duration was long enough to give it lasting interest and participation, it encouraged repeat visitors to their social media sites, the prize was worth playing for, and there were MANY winners.

Proctor & Gamble

We all know the infamous ‘Old Spice’ viral video campaign by now (which earned itself over 43 million views on YouTube), but what you may not have heard of is the follow up to the video. Proctor and Gamble’s brand agency, Wieden + Kennedy, put Isaiah Mustafa on the Web and invited fans to use Twitter, Facebook and other social media outlets to pose questions that he quickly answered. The questions poured in–even celebrities asked a few–and Mustafa responded in more than 180 Web videos shot quickly over a few days. The real-time effort was the first of its kind, but it won’t be the last.

QuestionPro

Lastly, let’s take a look at a social media campaign going on right now that you can take part in: QuestionPro, a provider of online survey software, is currently running a contest on their Facebook page, asking users to ‘burn their comment cards’. The idea behind the contest is that the era of paper feedback is dead, and that hospitality needs to move to a more digital solution, such as QR codes, digital feedback surveys, and iPad and tablet based research tools.

This campaign works for a few reasons — it’s funny without being offensive, it relates to their product strongly enough to send a message but without going overboard, and most importantly, it’s easy to enter. Yes, there are lots of examples of super-innovative contests that attract plenty of attention, but there are even more examples of innovative contests that flop because they are too complicated for the user.

Head over to the contest page to check it out.

According to HubSpot, ninety three percent of adults on the Internet are on Facebook, yet only 1% of a brand’s Facebook fans will ever make their way to the company’s main website. Many blame their low conversion rates on Facebook: “Facebook ads don’t work.” “I have a ton of likes but it doesn’t mean anything because I’m not making money.” “I keep posting things but I’m not getting many views.” Few, however, look to their own efforts for answers. And even fewer put a strategy in place to convert this highly active audience into highly engaged website visitors.

Upon learning these statistics, we did a little—actually, a lot—of digging to find out who/what is actually to blame for these disproportionately low conversion rates. We know, after all, that Facebook users are a highly active and engaged audience. So, why aren’t brands able to capitalize on that? It simply can’t be Facebook’s fault…

Below are the 10 most common reasons brands aren’t getting enough love from Facebook users, along with recommendations for better using the tools at their disposal. (In order to determine which methods work best, try them out and then test each one using the same online testing methods you use to measure your brand website’s effectiveness.)

1. Failure to Get Past the First Step

Most fans won’t ever come back to a brand’s page unless they feel they have good reason to. This is not totally different from how they interact with their friends’ pages when you think about it. Unless the new friend has great content to go back to, there’s not much of a reason to go directly to their page very often, if at all.

What does this mean for marketers? It means they’ve got to use that first “viewing” wisely, offering immediate and easy ways to engage visitors further upfront:

• Email list
• Blog subscription
• Gift download

Test: The various methods listed above to determine which ones actually have a positive impact on conversion rates.

2. Poor Text and Visuals

A successful Facebook page must have concise, engaging text that’s relevant to both the brand and the fans’ interests. Overly long, humdrum copy will fail to capture fans’ attention. Crisp, eye-catching, hi-resolution visuals (photos, videos, illustrations) that clearly speak to those things visitors like about the brand in the first place, will draw them in for more.

Test: Copy length and content; image quality and subject matter.

3. Stagnant Page Content

If fans stop by more than once only to find the same old Facebook page, they might assume the page is outdated—or worse, abandoned. It’s important for marketers to give fans new ways to connect and advance their relationship with the brand or product being promoted. Keep to a consistent schedule with fresh content and ever-improving offers, using the results from the testing mentioned above.

Test: Update frequency.

4. Inconsistent or Sloppy Branding

If there’s no stylistic connection between a company’s Facebook page and its main website, visitors may not trust that the page is legit. Brands often spend a disproportionate amount of time, money and effort on website branding efforts, in comparison to the relative pittance reserved for complementary Facebook efforts. Keep branding consistent across all channels, so that visitors know exactly where they’re going and whom they’re dealing with.

Test: logo variations, cover photo options, and other brand elements.

5. Confused Calls-to-Action

Once fans arrive at a brand’s Facebook page, they should have a clear idea of what to do and what’s available to them. Offers and calls-to-action should be prominently displayed, and any associated instructions should be easy to follow. Be aware, however, that Facebook has guidelines concerning calls-to-actions, offers and anything else resembling blatant advertising on company pages, so it’s important to make sure you’re current on usage guidelines.

Test: Calls-to-Action and offer variations—in terms of design style, content, placement, and ease-of-use, to see which combos bring the most fans.

6. Too Many Clicks

People are impatient—especially on the Internet—and want immediate gratification. If visitors have to jump through too many hoops or fill out too many forms in order to get what they want, they’re likely to click away. Make sure the desired destination can be reached in the fewest amount of clicks possible. Also, if there are forms to fill out, keep them short and simple.

Test: length of forms, number of required fields, number of clicks necessary to get to target content.

7. Mystery Visitors

One of the most important aspects of Facebook marketing is finding out who’s using it to access the company website. Anything in a fan’s Facebook profile—age, gender, location, name, relationship status, “Likes,” and more—can be captured, depending on the level of authorization granted by that fan. With the right tools, marketers can compile user profiles using that authorized data as well as previous site behaviors, to get a better sense of the users they’re reaching on Facebook. Those profiles can then be tested to see what offers, content and/or experiences are most effective in attracting fans, “Likes”, website traffic or any other relevant conversion metric—as well as applied to other marketing efforts.

8. Preconceived Notions

As excited as marketers may get about shiny new objects—especially social media objects—they‘re often reluctant to spend money on developing new efforts for them. Dipping your toes in too slowly, however, can be ineffective. Once you’ve decided to “do” Facebook, you may as well do it right. Step out of your comfort zone and try new efforts for specific customer segments. An even crazier idea—consider developing Facebook-specific campaigns rather than repurposing ones created with a different platform in mind.

Test: Campaign effectiveness in terms of user receptivity by various demographics—age, location, interests—to gauge interest from potential untapped markets.

9. Ineffective Plugin Use

If Facebook plugins aren’t integrated into the main company site, a great deal of potential traffic—and revenue—is being lost. Plugin tools turn consumers into brand advocates, making it easy to share site information with Facebook friends. Some examples of plugins are:

• “Like” button: lets visitors share main site pages back to their Facebook profile with one click.
• “Like” box: enables visitors to “Like” the company’s Facebook page and directly view its stream from the brand site.
• Recommendations: gives personalized suggestions for pages on the main site visitors might like, based on what other people are sharing.
• Comment box: allows comments on any site content, such as a webpage, article, or photo. The visitor can share their comment on Facebook by posting it to their wall and their friends’ streams.

Test: Plugin types and the effectiveness of each for meeting your program goals.

10. Sticking to Stand-alone Metrics

Getting just one side of the story isn’t enough. Marketing programs need to be set up so that Facebook stats and user profiles are fully integrated with all other online and offline shopping channel information to create rich, detailed, and fully comprehensive user profiles. Profile reports should be updated on a regular basis, so the most recent user information is always available.

With the proper attention to detail and willingness to dedicate the same energy to Facebook efforts as they do to other initiatives, online marketers will no doubt find that their 1% conversion rate is something they can control. And that it’s not Facebook’s fault their customers aren’t more engaged.

Although the average online shopping cart abandonment rate is a staggering 65 percent, incomplete purchases are largely credited to controllable issues: high shipping prices presented too late in the game, a long or confusing checkout process, not enough payment options, too many requests for customer information, etc. Sealing the deal comes down to being able to provide a great deal of information in as few clicks as possible.

Like many things in marketing, the solution lies in listening: listening to your customers, that is. And if you listen carefully enough, they have likely told (or showed) you why—and when—they are leaving without completing the sale.

Think about it: how do things like the existence of hidden shipping costs, lack of early shipping cost estimates, out of stock items and lengthy registration forms affect your overall conversions? Would reduced or free shipping increase the number of conversions? Are you telling visitors upfront when items are out of stock, or are you waiting to spring that on them when they go to checkout? Are they forced to leave the shopping cart to read your return policy when it strikes them that, “I’m not sure whether Aunt Susie is a size 4 or a 6 — I wonder if she’ll be able to return this?” The list of variables that create a good (or bad) checkout experience goes on and on.

According to Forrester Research, the top six reasons for abandoning a cart before making a purchase are:

1. Shipping and handling costs are too high (55%!)
2. Wasn’t ready to purchase the product
3. Wanted to compare prices on other sites
4. Product prices higher than they were willing to pay
5. Wanted to save products to the cart for lower comparison
6. Shipping costs were listed too late in the checkout process

Consumers are openly fickle, and telling. They want to make sure they are getting the best deal and experience possible, and it’s up to you to give it to them. To achieve this, here are some tried and true do’s and don’ts when it comes to your cart:

1. Ditch hidden shipping costs and fees. Be honest about what the cost is upfront; consumers appreciate integrity.

2. Offer free shipping promotions. Whether it’s via an offer, a time frame (act now!) or “buy a certain amount, get free shipping,” showing customers you know shipping fees are a pain point for them is an easy win. After all, by throwing them a bone with shipping fees, you’re sure to make up for those costs in additional sales and Average Order Values.

3. Make registration simple. Make sure your registration process is easy to get through, perhaps even with a progress indicator—lengthy or confusing forms cause frustration. Frustration causes visitors to wander.

4. Leave room for virtual lay-a-way. A “save for later” button, though doesn’t lend to the immediate sale, can be great for those who are in browse – not buy – mode. Consumers who can easily log back in to retrieve their item and buy it will convert faster than those who have to start over.

5. Make it safe and secure. While online shopping has become a very credible way to receive goods and services, many websites still display a “security logo” during the checkout process to ensure visitors that they are using a trusted site for their online purchases.

6. Test everything. A/B and multivariate testing will help you immediately pinpoint your trouble areas, rather than playing guessing games. And based on the data gathered in testing, you can optimize your checkout process to reflect the most popular combination of variables. For example, if testing reveals that last-minute or lengthy registration forms are a primary issue, you may decide to replace those with auto-filled forms for return visitors; let new users login with their social media accounts instead of filling out a new form, or simply provide guest checkouts.

With consistently greater demand for online shopping, comes greater opportunity. Putting customers at the heart of any online content and user experience decisions is crucial for not only surpassing revenue and conversion goals, but also to sustain lasting consumer relationships. Your online shopping cart is the moment of truth: is it ready?

This is the era of Social Media.  With over a billion consumers offering opinions, sentiments, and insights online, Social Media has in a few short years eclipsed many traditional forms of expression in terms of volume and importance.  As a result, the professional world is abuzz with discussion of this new form of communication and interaction, concentrating on its positive, even revolutionary aspects.  However, there is still a lot of discussion by an alarmingly large group of pundits that Social Media lacks clear ROI.  In my view since Social Media generates ROI more directly and with higher velocity than other forms of marketing.  It’s the era of Social Media for a reason!

Media planning and buying is an area in which we see this Social Media-led advantage in bold-relief.  In the traditional model, advertisers and media buyers make and execute buying decisions and then wait for the results to come in.  It’s often hit or miss and mid-course correction is impossible.  Nuanced feedback is virtually non-existent and when insights are generated they are delivered after-the-fact.  Billions of dollars and thousands of people-hours are expended with little result to show.  Of course, there are effective media buys but they are rarely driven purely by empirical or predictive data.  While hits occur, the ratio of hits to misses is sub-optimal, a bitter pill to swallow in turbulent economic times.

Not so when media planning and buying is informed by Social Media.  When it is, you benefit from immediate ROI and take the guess-work out of your decision-making.  This is true for three core reasons:

• Social Media provides real-time and contextual data
• This real-time data, when deciphered and interpreted, allows you to make data-driven decisions
• Social Media is underpinned by technology which allows for speed; meaning you can measure and react with no delay

When these are combined with a team that is ready to hone and adapt quickly, media planning and buying can be taken to the next level.

A few examples are in order here.

Leveraging the social nature of TV

In the traditional model, a media buyer contracts to purchase spots based on imperfect knowledge of audience attitudes.  The spots run and the buyer gets feedback three months later, well outside the window of possible action.  With social media, you get feedback instantaneously whether on content, messaging or the theme of your ad; you learn what is resonating with the audience of a given TV program minutes after it airs!  With that insight you can make changes on the fly and either avert disaster or further enhance an already-popular campaign. An engaged TV audience with spot on messaging gets more happy consumers, and is a profitable win-win that pays for itself quickly.

Optimizing media choices

In the traditional model, smaller companies with new and disruptive products and services are often locked-out of media buys because they lack the incumbents’ financial muscle.  With information and insights derived from Social Media, these companies can find alternate and more effective channels to disseminate their messages in real-time and with high-fidelity to audience attitudes and behavior.  Social media democratizes the playing field for small and medium companies for whom attention and exposure is priceless, and again generating an immediate ROI.

Perfecting product placement

In the traditional model, a media buyer spends valuable dollars to place an advertiser’s product in a media outlet.  The decision about which outlet is made often with a gut decision based on limited information and the resulting uptake, or lack thereof, cannot be measured with precision.  It’s a shot in the dark, which not only costs dearly but forecloses on other opportunities.  With socially-informed buying, a buyer can test the potential reception of products in real-time and make data-driven decisions accordingly.  This process leads to finding the most relevant audience and most relevant outlet, driving immediate ROI and allowing an advertiser to avail the best opportunity available.

In today’s world of media and marketing in general, ROI is not a luxury it’s a must.  By informing your decision process and actions with the data from Social Media, you can guarantee the most you’re your marketing spend and in do so immediately generate what we call an IROI.