A week or so ago Twitter unveiled its latest attempt to transform itself into a viable (aka profitable) business. Naturally, Twitter’s monetisation strategy is built upon advertising. Its latest product has been dubbed ‘Promoted Trends‘, which as the name suggests enables companies to buy their way into Twitter’s trending topics. It follows hot on the heels of Twitter’s ‘Promoted Tweets‘ product, which affords advertisers premium position for branded messages in Twitter’s real time search engine. While neither product seems like an instant silver bullet to me, one thing is clear… Twitter believes that the solution to its cash flow problems lie in real time search.

Why search is smart

Twitter’s decision to pursue profits via real time search is smart for a couple of reasons:

1. Google has proven that contextually relevant search advertising is a booming business model, although whether it translates across to real-time search is questionable
2. Confining advertising products (promoted trends/tweets) within the search engine ensures that users’ Twitter streams aren’t polluted with unwanted advertising. Long time readers will know my strong feelings on the topic (which I labelled Twitter whoring)!

Much respect must go to Twitter for maintaining user experience as a primary goal when building their business model. It’s a philosophy Facebook could learn from, particularly in light of their recent clumsy attempts to build their own real time search product.

Facebook’s Privacy Saga

Like Twitter, Facebook clearly see real-time search as critical to their future. And with over 500 million users, no-one is in a better position to report on the pulse of the planet in real-time. Yet Facebook can’t analyse and aggregate its mountains of data, as most users lock their data (status updates, links etc) behind privacy settings. So while Facebook undoubtedly has the best grasp on what the world is talking about, they can’t aggregate or report on (most of) it.

Facebook is clearly frustrated by this. Indeed, Mark Zuckerberg went as far to claim that “the age of privacy is over“. And in the last few months Facebook actively attempted to rectify this situation by introducing new privacy settings that pushed people towards open profiles.

Many argued they did so deceptively, and I tend to agree after discovering a number of friends maintaining inadvertently open profiles against their will (and knowledge). It’s clear the move to get users to open their profiles was designed for Facebook’s benefit, rather than the users. Thus the Facebook revolt began. The irony of the whole situation is that privacy controls are precisely what put Facebook where it is today.

But will real time search ever be profitable?

That is the question. I personally don’t doubt there are mountains of profits to be made via real time search. Advertisers will always chase ad space when people search for brand names, products and relevant keywords. So Promoted Tweets and Promoted Trends make perfect sense as advertising products.

The problem however is that normal people don’t use Twitter, let alone Twitter’s search engine. Few would even understand the benefits of real time search. It simply isn’t mainstream. Which is what Twitter needs to happen for it to attract real advertising dollars.

So how can Twitter take real time search to the mainstream? Here are my thoughts:

• There’s one sure fire way to take real time search to the masses, and that’s via Google. Google definitely want (and need) to integrate real time information into its search results, as it is a clear weakness. Real time data is returned in Google’s ‘Updates’ search filter, but it isn’t sorted or ranked in any meaningful manner.
• Rather than compete with Google, a battle they’re likely to lose, Twitter should be aiming to partner with Google. Twitter has the real time data, and Google has access to the masses and a proven advertising platform. Furthermore, Twitter is far less of a strategic threat than Facebook, so a partnership that may in fact weaken Facebook’s real time search ambitions is feasible.
• For the partnership to be struck, Twitter needs to bring some major cards to the table. Google won’t jump into bed without reason. Access to its data alone isn’t enough. Google already has that. What they don’t have is a way to rank that real time data, such as PageRank for standard web search. Real time data is simply displayed chronologically, which fails to sort the wheat from the chaff. Indeed, the quality of Google’s real time search is very un-Google like. It’s more reminiscent of Alta-vista…
• With a head start in aggregating and analysing real time data (aka trending topics), Twitter’s best opportunity is to develop the most advanced real time search product on the web. Google has proven that being the best at filtering data is a business model in itself. Twitter must nail real time search before anyone else, and should have a head start on the field. The good news is Twitter seems to be thinking the same thing.
• Finally, with a superior real time search product, Twitter should aim to strike a partnership with Google to make it available via their search engine. Advertising revenue generated via Google’s advertising in real time search results could then be split between the parties.

Of course, this is a gross simplification of the situation. Indeed, Google may seek to tackle real time search on its own. But Google has shown in the past that they’re not shy in acquiring businesses with a specific technical capability. And if not, there’s always another fairly large search that’s constantly looking for news ways to differentiate itself from Google…

As more and more businesses jump into social media, case studies and success stories are becoming more prevalent. Yet despite the fact that small businesses are often just as entrenched as big business, the little guys are significantly underepresented when it comes to case studies. Today we’re going to fix that. I connected with Ann Nolan of Baby Sitters Directory earlier this year after compiling my list of Aussie businesses on Twitter (yes… it’s severely outdated now!). I was immediately fascinated with how a niche businesses such as hers was using social media. And I recently had the opportunity of talking to her about it, albeit after months of procrastination on my part. It gives a fascinating insight into why and how a small business uses social media.

Firstly, what is Baby Sitters Directory?

Baby Sitter Directory is Australia’s leading babysitter and nanny directory. While living in Queensland in 2006/07 for a year with two young children, far away from family and friends and my usual babysitters, I found no online services that allowed me to easily and cost effectively locate and contact babysitters directly. Hence Baby Sitter Directory was formed and launched in June 2008. It is the most effective way to find a babysitter, and the most social online babysitter and nanny community, connecting parents directly with babysitters and nannies.

Why did you decide social media was appropriate for your business?

Given that the vast majority of Babysitterdirectory’s members are women and given women’s use of social media, it becomes clear why  social media is something we see as  important! In June the “2009 Social Media Study” a US study from BlogHer, iVillage and Compass Partners found women are turning to social media for fun, entertainment and connection.

• Fifty- three per cent of the US female Internet population of 79 million actively participated in some type of social media at least weekly.
• Of the female social media participants, 75% took part in social networking and 55% used blogs.
• Twelve million posted to blogs and 8 million published them.

This is an impressive use of social media. Granted the findings are for the US market but it would not be presumptous to assume that Australian women’s use of social media is on par with their US counterparts.

How do you use social media for your business?

We view it as a medium to deepen our connection with the parenting industry, be it an individual parent, a nanny, a babysitter or a business seeking to connect with parents.

The social media platforms – Blog, Twitter and Facebook – we use tend to compliment each other. Ideally it would be great to engage equally in every social media platform that exists but reality and resources dictate that decisions have to be made about where to invest time and energy.

As Alex Bogusky, Chairman of CP&B said:

“You can’t buy attention anymore. Having a huge budget doesn’t mean anything in social media…. you’ve got to be
willing to play to play…”

Couldn’t have said it better myself.

What considerations should small businesses make before jumping in head first?

There is the aspect of how companies manage the expectations of fans/followers and communicate with them. When people follow you on Twitter or become a fan of your Fanpage on Facebook, I think there is an expectation by many people that they can engage in some dialogue with the company or at the very least the employee of the company.

The danger  is when companies and even ‘celebrities’ create a profile, people follow and try to engage with the company or celebrity and there is a deafening silence. No re-follow, no response to messages.  It’s as if this ‘celebrity’ or company is saying to their follower “Nothing you say is or ever can be of interest to me”. The dilemma  for companies is that if they have a lot of followers replying to every single message, it ends up being time consuming and costly. It will be interesting to see how companies respond to this challenge of balancing followers and fan expectations with communication versus the cold hard fact of resources and allocation of time.

What other practical applications are there for small businesses?

Firstly, there is job search. LinkedIn, Facebook and Social Media are gradually taking over the role of traditional job boards like SEEK and recruitment agencies. Only three years ago if you were looking for work either as a freelancer or consultant or even as a paid employee you would check the main job boards, your contacts of course and recruitment consultants. Now if you are looking to pick up some work or extra projects you tweet your availability. Within minutes you can have followers retweeting your availability and suddenly your whole networked has expanded. Smart recruitment consultants are leveraging this.

Secondly, there is sourcing information and referrals. Twitter has become a de-facto search engine and with the recent announcement by Google that its results will now integrate Twitter data, the reach has rapidly increased. People using social media to put out good quality, relevant and informative messages have more likelihood of visibility in search results for relevant keywords. And for companies, and even independent bloggers looking to build or expand their brand, this can only be a good thing.

____________________

Ann Nolan is founder of Baby Sitter Directory, an online community connecting parents directly with babysitters and nannies. Baby Sitter Directory hosts the Australian Nanny Network – a social networking community for nannies and babysitters.  She is also founder of a new concept website – Generous Party, due to be launched in January 2010. You can follow Ann on Twitter here.

By now most Aussies will have caught wind of Vegemite’s new product launch, which coincided with the AFL Grand Final over the weekend. The product name, which was handpicked from over 40,000 crowdsourced entries, was infamously announced as “iSnack 2.0″. Strange, and perhaps even a little lame, but cause for a groundswell of mass brand trolling and hysteria? I wouldn’t have thought so. But universal condemnation is indeed what eventuated with the emergence of Twitter hashtags, forum threads and a blog dedicated to messages of brand vitriol. Ignoring general consumer sentiment (which can’t be held to account), what disappointed me about the affair was the conduct of many within the marketing industry, who actively fuelled the public slander. Don’t they realise they’re shitting in their own woods…?!?

Image Source – Purpleslog

If you asked 100 marketers working within social media what their biggest challenge was, it’s likely that most would list overcoming management fear in their top three. Quite simply, most marketers are scared stiff of the type of reaction that Kraft and the Vegemite brand has been exposed to over the past couple of days. So they choose to maintain the status quo because it’s the safer option. After all, it’s highly unlikely they’ll get fired for dabbling in social media. But if something went wrong…

As social media marketers we constantly bemoan this attitude. We complain about ‘archaic’ corporate adoption rates, particularly in Australia where we tend to lag a few years behind the rest of the world. We criticise the continued reliance on ‘heritage’ media when consumers are clearly shifting their attention online. Yet we then go and load a double barrel shotgun and aim it at squarely at our foot by aggressively promoting the vegefail meme.

Image Source – fireflythegreat

The Vegemite saga has played out on the most public of stages. Aside from mainstream media coverage, the story has also hit marketing media staples Mumbrella, AdNews and B&T. The question is – just how many more marketing professionals will now bury their head in the sand as a result? After all, if this is how they treat one of Australia’s favourite brands, how can we expect them to treat everyone else?

My Twitter stream is almost exclusively the domain of marketers. And for the past two days there has been one constant – vegefail. Indeed, it seemed as if many were rejoicing in the brand’s perceived failure. And for what? The sake of a cheap laugh. Or the feeling of some level of artificial superiority. “Look everyone. Look how dumb Kraft are… idiots. Anyone got a stone?”

Let’s be clear. There is absolutely nothing intelligent about basking is someone else’s perceived failure. It’s rarely even funny. I guess I’ve probably passed on a fail meme at some point, and I’ve certainly criticised the odd brand, but it’s never been a sport. Which is what the vegefail saga represented by the end. And front and centre of the lynch mob were the very marketers who constantly criticise brands for social media inaction.

Here’s something to ponder – next time you’re having problems convincing a client that social media IS in fact a smart idea, consider whether it was worth contributing to a brand demolition that became national news. You may well have helped hundreds of marketing managers justify their conservative views towards social media.

My monthly post over at SEO Scoop has just been published, in which I pose the question of whether Twitter is causing the death of the inbound link. It follows on from a post Darren Rowse published recently that pondered whether inbound links were in fact becoming an endangered species. My theory on the matter is simple. It’s Twitter. Linking behaviour has simply transferred across to a more convenient medium (ie. Twitter). As an aside, I also consider the SEO implications given that Google ignores links from Twitter?

Check out ‘Has Twitter killed the inbound link?‘

If you’ve been reading this blog for a while you’ll know I’m prone to the occasional rant. And one of my more frequent musings is the conservatism of Australian businesses towards social media. But rather than cracking that old chestnut open again, today I’m going to tell a happy tale of social media excellence. Because we can’t always be grumpy can we? It’s a story of an Australian organisation applying social media to their industry in a killer manner. And would you believe it… it’s a footy club! Yes. A footy club. While the industry is often portrayed as neanderthal like, the Essendon Football Club is putting most Aussie businesses to shame in their application of social technologies. No wonder I love them so much…

It’s clear that the Essendon Football Club has a strong committment to the web as a marketing channel. Indeed, they are the only club in the AFL to maintain a stand alone site beyond the AFL’s official hub, thereby sacrificing financial compensation from the AFL. But by maintaining complete control over their web presence, they have been able to innovate at a higher level than any other club. And as it turns out, they’re innovating at a superior level to most Australian businesses. Let’s take a look at how they’re applying social technologies to their industry:

Twitter

The Essendon Football club’s use of Twitter is impressive. While other businesses fumble for practical uses, Essendon obviously recognise the strengths of Twitter and tailor their usage accordingly. And with almost 3,000 followers, the punters seem to agree. Three particular uses of Twitter have impressed me:

• Breaking News: Rather than utilising Twitter as a broadcast channel to distribute news, Essendon FC uses the immediate nature of Twitter to break it. Indeed, the club’s Twitter feed was used to break one of the biggest stories of the year – the shock recruitment of their new CEO from rival club Hawthorn. Mainstream media later reported the news, citing the Twitter feed as the news source. The club also used Twitter to break the news that star player Jobe Watson would make his comeback from injury.



• Live event coverage: Twitter and sports are a match made in heaven, particularly when a game isn’t covered on free-to-air television. Live Tweeting provides an alternative form of coverage for fans who are unable to attend/watch the game. The Essendon Twitter account is used on gameday to give blow by blow descriptions of how the game is unfolding.



• Player profiles: The club also seems to be strongly involved in establishing a player presence on Twitter, which is a brilliant move. AFL players are idolised across the country, and Twitter allows fans to ‘connect’ with their heroes, opening a small window of insight into their everyday life. Sports hero gazing holds just as much appeal as celebrity gazing, as illustrated by the popular accounts held by Lance Armstrong & Shaquille O’Neal. Jobe Watson and Angus Monfries are the two Essendon players currently on Twitter, with the club actively promoting a rivalry between the two over who can attract the most followers.

Live player chat

Aside from Twitter, Essendon also utilises a custom built live chat service on its’ own web site dedicated to live match coverage. The most recent match coverage can be viewed here with around 300 entries from supporters. The master stroke of the internal live chat service is that each week a different player participates in the chat session with fans during the match, providing their thoughts and commentary on the game.

It’s worth noting that the players participating are not fringe players or outcasts. In most cases the players are regular first team players who are injured or suspended including Andrew Welsh, Adam McPhee and Angus Monfries. I believe captain Matthew Lloyd has also hosted a session. Much like Twitter, the initiative is clearly aimed at bringing fans closer to their heroes. And while the player’s participation and interaction with fans is very much limited, it is the perception that fans can connect with players that creates value. Given players match day committments (even injured players), it’s unlikely a higher level of engagement during the game can be realistically achieved.

Blogs and open commenting

A club blog has been established as part of Essendon’s web infrastructure, although as an internally built tool, it lacks the functionality of WordPress blog. Most contributions come from the coaching staff and players themselves, albeit at a rate of about 1-3 posts a month. The posts provide some level of insight into the inner-sanctum of the club, discussing issues such as finals prospects, the challenge of interstate travel and dealing with long-term injuries.

While the blog component of the site is perhaps underutilised, it is the blog-like commenting function on all news items that adds a real level of audience engagement to the site. It is not uncommon for match reports to attract 100+ comments from passionate fans (including myself). The open and unfiltered fan commentary has built a vibrant community that reflects the true pulse of the punters. Fans aggregate each week to rejoice in victories over arch rivals, and to bemoan dismal losses against lowly ranked opponents. Admirably, the club is brave enough to allow the most ardent of trolls to post incessant drivel week after week in the knowledge that others will jump in to defend the club/players/coach.

As a result of the unbiased commentary, the Essendon FC match report is now one of my first stops after a game. I come back to the site regularly with the specific intent of reading fan commentary. I’m keenly interested in seeing how others have perceived the team’s performance, as well as contributing my own thoughts. By simply allowing open fan discussion, they have made me a far more engaged and loyal user of their web site.

Video

Bomber TV is Essendon’s subscription based online video service, to which Bomber fans can subscribe for a cost of $10 per year. All the standard content is there that you’d expect from a footy club including game highlights and press conferences. However, the club produces a raft of unique video based content to ensure fans get value for their money (all $10 of it). The wide range of video content includes:

• Panel Shows: Two panel shows are produced each week with the involvement of Essendon’s assistant coaches. One show analyses the performance of the team in their most recent match, and the other previews the game for the upcoming weekend.



• Interviews: Player interviews are a staple of Bomber TV with club legends and current players giving insights into their careers and lives.



• Behind the scenes footage: Fans are given a taste of the inner workings of the club with footage from club functions, training sessions, interstate trips, sponsors events & more.

User comments are also open for video content, although far less utilised than the comments function for the general news.

Social network

The fifth bow to Essendon’s social media armory is a niche social network for Bombers supporters called ‘The Hangar’. It operates in the manner of a very simplified version of Facebook. Fans can create their own profile page and connect with other Bomber fans. In theory the concept is solid. Football fans have a common interest and offline social clubs thrive. Indeed, I’d appreciate being able to meet more Essendon fans as sometimes my regular group of friends can’t make it to the game. However, the execution of the social network is poor (but I’ll give them a break… they can’t get everything right).

The greatest problem for The Hangar is that it is extremely difficult to actually connect with other fans. The only way to search for people is by surname (which is a very cumbersome listing process rather than a keyword search). But what if I don’t know who I’m searching for? Isn’t the point of social networks to connect with new people? So how do I know who to connect with? I’d much rather run a search based on interests or geography (perhaps we could hitch a ride to the game together). It seems other people encounter the same problem, because I have only ever received 2 friendship requests from fellow fans. Even when I do connect with others, there is little scope for real interaction. We can leave comments on each other’s walls, but that’s about it. No email or alternative form of communication exist.

Despite its limitations, The Hangar has seems to have thousands of members (as demonstrated when searching by surname). So the concept has some potential. However, until it is more functional, it is unlikely to be utilised to its full potential.

Mobile

While not strictly a social initiative, Essendon’s mobile site is further evidence that the club is committed to innovating in emerging channels. The mobile site allows me to access key pieces of club information including game results and reviews, club news, the ladder, a fixture & more. The mobile interface is greatly simplified to allow convenient browsing from my iPhone.

Australian businesses – watch & learn!

There’s no question that sporting clubs have a head start over most businesses when it comes to applying social tools & technologies. The sheer passion of the average sports fan means that they are for more likely to be drawn to social technologies the club creates. Most businesses simply can’t replicate that level of passion or interest.

However, it is still up to the club to devise smart tactics for each channel to engage fans. And it is here that Essendon excels. While many businesses approach social tools with a traditional marketing mindset, Essendon has identified the strengths of each channel (social network adise) and delivered an experience that creates true value for fans.

Now… there’s no question that my judgment in the matter may be biased based on my affinity with Essendon Football Club, but I can’t think of an Australian organisation doing a better job of implementing social technologies. If you can, feel free to drop their name in the comments…