Digital Connections

IPA Social: 10 Principles (#IPASocial)

If you're a member of the IPA (Institute of Practitioners in Advertising) then this will probably need no introduction, but if you're from the sports marketing industry or a non-IPA member agency then it might need a touch of background explanation.

In January 2009, the IPA hosted a 44 Club event at the London College of Fashion, entitled "Social Media Futures - The future of advertising and agencies in a networked society."

The event had the potential to be great, and should have been great - unfortunately it wasn't. I blogged about the event and wrote a post which in hindsight I now view as overly harsh, and one that I certainly wouldn't write today.

However, I wasn't the only person who expressed disappointment, with Amelia, John, Robin and Anjali all expressing their views.

To give the IPA massive credit, within 7 days of the event Nigel Gwilliam (Head of Digital at the IPA) was analysing exactly where the IPA went wrong and how the IPA could ultimately deliver what their members wanted.

(I should point out that I wasn't and still am not a member of an IPA member agency, which goes someway to why I feel uncomfortable about my original post.)

Nine months later, Nigel has chaired and facilitated a very passionate & talented group of digital communications experts. This "IPA social" group have collaborated to write 10 principles that clients and agencies should bear in mind when developing Social Media campaigns. However, the group are also keen to point out that these principles are starting points for further discussion and are not cast in stone.

Each of the 10 principles are hosted on individual blogs (listed below), with the IPA acting as hub for the IPA Social Project, and everybody is encouraged to read and discuss the principles... after all social media is basically lots of people having conversations online.

Tuesday 6th October sees the IPA host a follow up event - which will see Mark Earls, Neil Perkin and Amelia Torode presenting their views, with Amelia, Katy Lindemann, Asi Sharabi and John Willshire joining in with a panel discussion.

If you're going along then drop me a tweet and say hello - if you cant make it then have a read of the 10 principles and join in the conversation online.

I was full of expectation nine months ago, and once again I'm full of expectation - but I know that these guys will absolutely nail it and add traction to a great debate.

The 10 Principles

1. People not consumers – Mark Earls
2. Social agenda not business agenda – Le’Nise Brothers
3. Continuous conversation not campaigning – John V Willshire
4. Long term impacts not quick fixes – Faris Yakob
5. Marketing with people not to people – Katy Lindemann
6. Being authentic not persuasive – Neil Perkin
7. Perpetual beta – Jamie Coomber
8. Technology changes, people don’t – Amelia Torode
9. Change will never be this slow again – Graeme Wood
10. Measurement – Asi Sharabi

My problem with Social Media

My problem with Social Media is profit…. there I've said it.

I’d be very grateful if somebody can explain, simply, where the revenue is coming from? I’m struggling to see how Social Media websites and Social Media agencies plan to make money.

This week has seen the granddaddy of social media, Facebook; celebrate its 5th birthday …. Happy Birthday lets have a cake fight!

Seriously, Facebook is great fun, and without doubt will leave its mark on youth culture, digital natives and arguably western society... so well done Facebook.

But for me there is a big "elephant in the room", where is the revenue generation? , actually more specifically, where’s the profit?

The obvious, off the cuff, answer is of course advertising. However advertising alone doesn’t seem to generate enough revenue for Facebook to “wash its face and brush its teeth.”

Judging by some of Mark Zuckerburgs announcements over the past year, he doesn’t seem to think so either. Even going as far to claim that gaining more users and expanding the website is more important than making a profit.

Some sources claim that 2008 would see a negative cash flow of about $150 million (EBITDA minus CapEx). This is summarised rather nicely by E-consultancy. The general consensus amongst experts is that Facebook is struggling to justify a) its increase in headcount and b) how the company is valued at 100 times current revenues.

Late 2008 saw Techcrunch perform an updated analysis of Facebooks figures and come to a similar conclusion, yes Facebook is growing, but so are the costs. Electricity, servers and staff are all outweighing the ad revenue - hence rumours that Facebooks CEO has been in Dubai (where else?) seeking out potential investors.

Brands are certainly using Facebook for their benefit, Compare the Meerkat (explained rather succinctly here) and Top Shop stand out as two brands using Social Media very well, but these campaigns aren’t delivering revenue for Facebook, Twitter etc.

The second element that I can’t get my head around is how Social Media agencies (or digital agencies offering Social Media) are planning to profitably charge clients. This was touched upon at the recent IPA Social Media Futures event, and has been stuck in my head since. I’d certainly be interested to hear how the social media agencies (We Are Social) plan to move this forward.

Ongoing management of Social Media seems to be something that clients can deliver more cost effectively and efficiently in house. If it was to fit anywhere then my initial thoughts are that it would come under the PR Agency’s remit. I’m curious to hear how digital agencies can profitably operate an ongoing social media service.

Over time I’m sure that things will become clearer and Social Media will gravitate towards it rightful owner, in the meantime if there is anybody who wishes to expand or enlighten me then please … help.

The IPA: Social Media Futures (Follow Up)

Earlier this week I blogged about the IPA's Monday night 44 club event  Social Media Futures - The future of advertising and agencies in a networked society."

I wasn't the only one, several other attendees and bloggers expressed their views, some via Twitter and some on their own blogs; Amelia Torode, We are Social, John V Willshire and Anjali Ramachandran.

And you know what..... the IPA sat up, read the blogs and within a week called a meeting.

Today the IPA had coffee with seven of us, listened, took our points on board and promised to actively move things forward.

Its early days, but its genuine and I take my hat off to the IPA for not hiding but listening and collaborating with the group.

Nigel and The IPA deserve congratulating for addressing this, many other industry bodies would have chosen to bury their heads and ignore the chatter - the IPA didn't.

More as and when ...

44 Club: Social Media - A Missed Opportunity By The IPA

Promised myself that I wouldn't blog about this - but after reading some tweets, I changed my mind!

Last night, full of excitement and expectation, I attended an IPA (Institute of Practitioners in Advertising) 44 Club event, "The future of advertising in a networked society.”

Held at the rather youthful London College of Fashion and in front of a packed and expectant audience containing some of London's finest.

Publicised as:

"There’s a revolution in the air that’s transforming society. It’s social networking and it’s empowering the consumer. Agencies must get to grips with this changing marketplace over the next decade or they could face growth of only 1.2% per year by 2016. This is according to the second future of advertising report to be published by the IPA and the Future Foundation. To find out more come along to the next 44 Club, chaired by Moray MacLennan, Chief Executive of M&C Saatchi Worldwide on Monday 19th January, where all will be revealed.

Guest speakers include:
• John Willshire, Head of Innovation, PHD Media
• Russell Davies, Founder, Open Intelligence Agency, and Campaign columnist
• Cheryl Calverley, Senior Brand Manager, Unilever
• Nigel Gwilliam, Communities Senior Manager, IPA"

The excitement and energy ended there I'm afraid.

The IPA announced that Russell Davies, the crowd puller, was unable to attend, and couple of traditional marketers (certainly from the "don't get it" side of the industry) were introduced.

I’m not going to name but they proceeded to suck the life from an expectant audience, whilst explaining how to bludgeon an online audience to death with one way brand advertising messages. Referring to the social media community as “gossips” and “editors"

The audience were pretty much subjected to 50 mins of death by ppt, as the IPA plugged their latest 60 page publication entitled "Social Media Futures" - priced at £63.75.

.... And this is where the IPA demonstrated that they hadn’t quite grasped the concept of social media - surely this should be available free for sharing? I hope that somebody will buy and swiftly post it on slideshare.net, although I suspect that more useful documents are freely available on slideshare.

To be fair the Q&A session with the panel was more enjoyable, although cut short before it got going and leaving the audience rather flat.

Hats off to Cheryl Calverley at Unilever (The Client), and John Willshire from the panel who both added some passion and energy to the event.

Opportunity missed by the IPA I'm afraid, not a patch on the IAB events.