Oneupweb : Expanding On The Facebook Problem

Here’s the deal. Remember yesterday when I said that it seems rather strange that a company that produces absolutely nothing may beat out General Motors with their upcoming IPO? General Motors, a company that has produced some of the most profoundly beautiful vehicles known to man, may have their $18.1 billion IPO beaten by Facebook, an innovator, of that there is no doubt, but not a producer of tangible goods.

Well, first off, it seems as though GM read that blog, because today, it was announced that GM had pulled all of their paid ads from Facebook because “no one clicks on them.” Come to find out, a huge majority of Facebook users barely acknowledge paid ads, let alone click on them.

As marketing space really is Facebook’s claim to fame and their only real, tangible piece of revenue generation, this development begs the question “why in the world is this company worth $100 billion?”

Simple answer, because, right now, people are willing to believe that. Facebook released more stock today, bumping their soon to be available stock number up about 100 million more units. They’re hoping that the market agrees with them when they say that their stock is worth $38-$42 per share. If this be the case, their IPO will raise almost $20 billion.

But, again, Facebook’s lack of an actual product continues to haunt them. The vast majority of their $3.7 billion revenue in 2011 was from advertising. It is no secret that sites like this make the majority of their bank from brands hoping to cash in on all of the eyes that frequent the spot.

There is an inherent danger to this thinking, though.

I could go out, score a couple of deals with some of the interweb’s most popular porn sites and sell ad space. Yeah, I could guarantee that every month, your ad will be in front of millions of pairs of eyes. But, I couldn’t guarantee a single sale. Why? Because when folks type in “One Night In Paris”, they aren’t exactly in the mood to be clicking on an ad for business cards.

True, that is a rather extreme example, but you get my point, yes? It doesn’t matter how big your audience is, what matters is what your audience is doing on a certain site and whether or not it makes sense for you to be there at all. For GM, the answer was obvious. No one wanted to click on an ad for a $30,000 automobile while late night trolling for their ex’s new Facebook page. Makes sense, yeah? Yes, yes it does. So, obvious….or was it?

Does this little realization spell trouble for Facebook? Yes. Will they have to do some damage control? Yes. But does this little realization spell doom for Facebook? No. Why? Well, to answer that question, I, as ever and always, turned to Oneupweb’s Maven of All Things PPC And Facebook, Kate Shapkaroff.

“Because Facebook PPC is a great way to grow your fan base.  It’s low entry engagement to ‘Like’ a company.  The more you grow your fan base, the more opportunities your brand has to engage your adopters.  With this engagement, you can help create brand adorers – people who purchase and/or use your services (if they haven’t already).  More importantly, your adorers can help recruit more adopters, keeping the circle flowing and growing.”

It is no surprise that Ms. Shapkaroff, once again, hits the nail on the head here. Facebook marketing isn’t about selling a $30,000 car by way of a one click PPC ad. Facebook marketing’s value rests within its ability to BUILD UP to that purchase, or, as Kate said, create brand adorers and adopters. If GM were to have some real interaction with its Facebook community, i.e. building up a fan base, having a fun, interactive voice, running a few challenges and/or competitions, maintaining an awesome working contact with current GM owners, building fans, giveaways, events, etc., that would translate into some amazing brand loyalty and word of mouth marketing (both being the holy grail of marketing, by the way). This brand rep building through Facebook would come into play big time the next time any fan of GM’s Facebook page needs to make a car purchase. GM currently has over 387,000 Likes on their page. That means that if they were to utilize Facebook properly, it is completely logical to say that because of their Facebook brand building at least 2 Facebook fans per day were buying a GM vehicle. Completely plausible. By those conservative numbers, only 730 of the more than 387,000 fans would need to buy a GM vehicle to make that statement true. I’d say revenue generated at about $50,000-$60,000 per day (conservatively) is a pretty damn good investment!

See what I’m getting at here? No, PPC ads focused on one click, one sell will not work for most brands on Facebook. But, if you utilize Facebook for what it is, a community wherein your brand can become an integral member of your consumer’s circle of friends, then you will reap the rewards that Facebook has to offer.

“What’s most important with Facebook PPC is to determine what you would like your fan base to ultimately do – purchase more, remain loyal adorers, etc.  You can amass a fair amount of fans to your page, but what good does that do you if you don’t engage them and keep happy?” asks Kate. Very true. Facebook’s worth is in the fact that it has the capability to place your brand in your consumer’s comfort zone and create a mouthpiece for your brand through that consumer. There is unlimited potential on Facebook for a brand, but only if you utilize it correctly, and that begins with engagement. And that’s what’s worth $100 billion.

Categories: News, Pay-Per-Click, Search Marketing, Social Media, Social Networking
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Oneupweb : IPO Madness!

Well, it is almost time for Facebook to launch its IPO (Initial Public Offering). Folks are waiting with baited breath, hoping for a cash cow to be realized, especially since this company has just topped the $100 billion mark in worth. People are saying that this IPO could be between $14 and $18 billion, depending on who you’re reading or talking to. But, alas for Facebook, that $18 billion is still well short of the largest IPO to ever occur.

In the spirit of the continuing IPO madness, I decided to do a little research and compile a list of the biggest IPOs to date, just to give Mr. Zuckerberg, an ardent reader of this blog, no doubt, an idea of where his IPO needs to land to claim #1!

#10: HCA Holdings – IPO raised $4.4 billion in 2011. HCA is the parent company of Hospital Corp. of America’s network of hospitals.

#9: Conoco – IPO raised $4.4 billion in 1998.  Conoco, previously owned by DuPont, controls a chunk of the world’s oil and gas industry.

#8: The Blackstone Group – IPO raised $4.8 billion in 2007. Blackstone is a private equity firm investing in the likes of Sea World, The Weather Channel, Michaels Stores, Extended Stay America, Spirit Group (PUBS! YAY!), Houghton Mifflin, Columbia House, Charter Communications, Universal Orlando, Sirius, Six Flags, and many more.

#7: CIT Group – IPO raised $4.9 billion in 2002. CIT is a commercial finance company.

#6: KKR Private Equity Investors – IPO raised $5.1 billion in 2006. KKR is an investment firm listing clients like BMG Music, Del Monte Foods, Dollar General, Go Daddy, The Nielsen Company,  Sealy and many more.

#5: United Parcel Service (UPS) – IPO raised $5.5 billion in 1999. UPS is….well, if you don’t know, there’s something wrong with you.

#4: Kraft Foods – IPO raised $8.7 billion in 2001. Kraft is a mainstay in the world’s food industry.

#3: AT&T Wireless – IPO raised $10.6 billion in 2000. AT&T Wireless is the wireless arm of the telecommunications giant.

#2: General Motors – IPO raised $18.1 billion in 2010. General Motors makes cars or something, I’m not sure. *Sarcasm*

#1: VISA – IPO raised $19.65 billion in 2008. VISA is a debt accumulating company….credit card company…..whatever.

So, there you have it! The top 10 IPOs to date. Seem strange that a company that doesn’t really produce anything is on the verge of beating out GM’s IPO? Well, it should. I understand that Facebook is a massive marketing engine full of endless potential, but is that enough to push it up over the top here and bump one of the $4 billion wannabes off of this list? Who knows, we shall see soon!

Meanwhile, I’ll take my non-$100 billion self to Firefly and grab an Old Fashioned. That’s how we do, here at Oneupweb!

Categories: News, Social Media
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Oneupweb : Taking A Crack At JP Morgan’s Whale

OK ladies and gents. Today, I have set up a unique challenge for myself. I will be slightly deviating from the usual path of knowledge and awesomeness that is prevalent here at StraightUpSearch.

We’re all in business and, right now, the biggest news in business is Voldemort, The London Whale, JP Morgan and a staggering (yet not so staggering) loss of $2 billion (with the possibility of another $1 billion on top of that if the market doesn’t swing JP’s way).

In all actuality, this $2 billion loss is less than one percent of JP Morgan’s investment asset fund of $350 billion. And that $350 billion? That’s only 1/6 of the company’s total asset value. Good freaking lord that company is a monster. This monster is set to post something like an $18 billion profit for the year, so, let us not feel too bad for them, shall we?

After hearing this ridiculousness, I began to wonder about the flip-side of that coin……who just made $2 billion?? Aha! Now the game is afoot!

AND I’VE SOLVED IT!!!

Who made $2 billion? The tooth fairy, Santa Clause, Davey Jones, Mickey Rooney and other completely imaginary characters. Why do I say that? Because, as I suspected, the $2 billion doesn’t seem to have ever existed! THIS little factoid runs rampant throughout our financial system and, frankly, as well as pissing me off, it scares the hell out of me! Our financial system, with all of its inflated volume and figures, is a trumped up LIE.

Market to market loss. That’s what it’s known as. That’s where this $2 billion was lost. In market to market trading.

Let me give you an example of what I am speaking of here. This example is quite possibly the best that I have ever heard or seen as far as breaking down the formulas.

You have just purchased a Toblerone for $1. You run into one of your friends. He is starving. He offers to buy your Toblerone for $10, but he doesn’t have $10, so he gives you an OFFICIAL note that basically says “here’s $10 that I will pay someday.” You gladly accept, having just multiplied your investment 10 fold! But, OH NO! Now YOU are starving! So, you beg to have the Toblerone back, you offer $50! Your friend accepts, and you write out a pledge to pay $50. This little back and forth continues until you get to $100,000. Now, at this point, your little two person market has valued this Toblerone at $100,000, a sum of money that you both have, as one of you holds a note promising to pay $100,000 and the other holds the Toblerone, valued at $100,000.

But, alas, all good things must come to an end (not true, what is true is that all STUPID things must come to an end). Reality hits and suddenly a third party values your Toblerone at $1. You both have just lost $99,999. A huge loss, but not an actual loss, because no real money was ever involved in the transactions.

Looking at JP’s loss through the lenses applied by way of this little scenario brings a thing or two to light, yeah? First, it appears as though I was practicing Master Degree level high finance when I was on my elementary school playground. Secondly, how can these people not see that Monopoly money isn’t real money? And third, the investors over at JP are suffering some very real stress over this fake $2 billion scandal.

Isn’t it funny how this non-loss, concocted within the minds of Wall Street bigs (overvaluing the hell out of things), is having some very real world  consequences? Already, JP’s 30 year serving CIO has bitten the dust. There are rumors that more heads will roll and for what? Fake money? Dollars that never existed in the first place? Valuing a product that was clearly worth very little at more than it ever could hope to be worth? Idiocy, lunacy, unbelievable. Brings to mind the military’s $15,000 toilet seats and $30,000 hammers, doesn’t it? Except……our government actually gave people real money for that malarkey……amazing.

Promises. This business world is full of promises. Day in and day out you hear promises. Promises aren’t worth anything. They’re dead air, worthless paper. Action is what creates true wealth, in business or otherwise. The completion of a task, the taking of an action. All day long, people can promise and write goals on paper and give them to you “to take to the bank.” But, when it comes time to actually cash those promises in, will your market come crashing down around you as folks laugh in your face at the perceived value you placed upon such a worthless promise?

Kind of makes you think, doesn’t it? Does JP Morgan have any real money? Or is it all tied up in the promises that they make?

At Oneupweb, we don’t do promises. Here, you find actions, not promises; results, not guarantees. There’s no market to market here. It’s all real world and its all about our clients.

Categories: News
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Oneupweb : 10 Things You May Have Missed!

This week has been a doozy! Avengers rocked, Netflix added some sweet content to their offerings (personal excitement, I love my Netflix!) and I had some killer nosh at Giovanni’s! And oh yeah! Life was good online as well.

In the spirit of Friday, I will continue StraightUpSearch’s little tradition of offering you some bits of awesome for your upcoming trek into the weekend. So, here are 10 pretty awesome things that you may have missed this past week! Enjoy!

Baaaa-da-da-da

Acapella, it’s a wonderful thing! You may all remember the One Man dude (he did all sorts of One Man things utilizing his impressive voice range). Well, now there’s the Star Wars Theme guy. This is actually pretty damn good. Check it out! Also…..he does a billion other themes, including my favorites: Friends and Bill Nye The Science Guy (Bill! Bill! Bill! Bill! HAAA!).

HRH On The Eights (<– That title, that title right there? That title is BRILLIANT!)

It’s dry, it’s fantastic and the Prince says “hell.” I have always been a huge fan of His Royal Highness (hence the HRH) Charles, Prince of Wales (the title every heir to throne holds, by the way, British royal trivia there). And now, I’m even more so. Watch this video of the Prince delivering a weather forecast on a local Scottish BBC channel, a stop he made to celebrate the station’s 60th year and the Queen’s Diamond Jubilee. Watch it all the way through, he cracks wise a couple of times. Good stuff, this!

Harvard, Call Me Maybe?

It takes a man’s man to play baseball. It’s only the greatest sport on the planet. Check out these Harvard men’s men as they alleviate some boredom on the road in a most peculiar way.

A Mad Man’s Advice….To 16 Year Old Girls

Jon Hamm is freaking awesome. Mad Men is one of my absolute favorite shows. Here, Mr. Hamm dishes out some grand advice, based upon years of experience. Every kid should watch this.

Zuck’s Hoodie

Seems that a bunch of folks on The Street (Wall Street) don’t think Mark Zuckerberg is showing much respect showing up with a hoodie to these all important investor meetings, IPO gatherings, etc. Hmm. I’m going to go ahead and side with Mr. Mark on this one. He’s about to make you whiny bitches filthy rich. You’re not about to make him filthy rich, he already is! So, know your role and shut your mouth.

Besides, if Michael Moore’s peeps aren’t offended and if billionaires Mary Kate and Ashley can do it daily as well, then my “shut up” statement is confirmed. Also, if you guys were able to move around a bit more comfortably, maaaaaay-bee we wouldn’t be in the mess that we’re in right now, am I right JP Morgan Chase? You feel me? Yeah, you feel me.

James Blunt Finds Heaven To Be Grey

Death rumors abound on the internet these days. Seems like every day some celebrity is dead, only to come back to life by way of their chosen social medium. One of the most recent victims of this death hoax is James Blunt. After discovering he was dead, Blunt Tweeted to the world the following words: “Not sure if this rumor is true or not, but if so, I can report that the afterlife looks remarkably like London.” HA!

Farewell Maurice

As many of you will already know, children’s author and epic awesome monger Maurice Sendak passed away this week. In honor of him, I give you these words from him in response to an interviewer encouraging him to share a story about a fan encounter.

“A boy sent me a charming card with a little drawing. I loved it. I answer all my children’s letters – sometimes very hastily – but this one I lingered over. I sent him a postcard and I drew a picture of a Wild Thing on it. I wrote ‘Dear Jim, I loved your card.’ Then I got a letter back from his mother, and she said ‘Jim loved your card so much he ate it.’ That, to me, was one of the highest compliments I’ve ever received. He didn’t care that it was an original drawing or anything. He saw it, he loved it, he ate it.”

Facebook Highlights, For A Fee

For $2, some dude in New Zealand could have had his status highlighted by Facebook. But, alas, he thought it was a scam, imagine that? Turns out, Facebook actually is running a test to see if people will be receptive to such a thing. There are certainly some marketing implication inherent here, if one can get around the safeguards that have no doubt been put into place.

Camp India!

As the weather begins to warm and the summer months begin to draw close, many folks are turning their minds to vacation! A forum that has caught my eye recently highlights the 50 best camping options in India. I’m severely intrigued. While living in Guatemala, I stayed in a rustic ecolodge out in the middle of the northern Guatemalan jungle, amongst jaguars, crocs and monkeys! As we fell asleep, howler monkeys were in the midst of claiming their tree for the night. Completely amazing experience. Perhaps India offers a once in a lifetime trek somewhere in this 50 camping option highlight…..

Wall Street Journal, Yo!

Wondering what life is like here at Oneupweb? Check out our Wall Street Journal documentary! It’s a sexy watch, to be sure.

Categories: Uncategorized
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Oneupweb : Old School Marketing

So we’ve all had a chance to grow accustomed to Google’s Freshness updates (even though they continue to roll out, I’m talking about the major ones, circa early 2012). I have had occasion to be elbow deep in these changes as of late and it seems to me that a familiar pattern has arisen.

Prepare yourself, for I will now reveal the secret to The Google’s updates of late, and all of those yet to come.

Ready?

Here it is:

Old school marketing.

That’s right. Google is forcing the morons who have turned digital “marketing” into a  link farming, bot grabbing, emotionless, userless, user hating paradise into actually working for a living.

Within this old “marketing” world, the only thing that mattered was position #1 on the SERPs. No one cared if the copy was just 237 different variations of a keyword or if their title tag was a seven mile long listing of gibberish and services. No one cared about the user, because digital marketing was search engine marketing and search engines can’t tell the difference between good copy, legit sites and that other tripe.

Well, thanks to Google, now they can. And they’re getting much better at it.

What does this mean for the world of digital marketing? It means that the same idiots that were putting out the above listed crap now need to put out actual marketing materials. And as for the rest us? Well, it’s time to dust off “Confessions of an Advertising Man” and get back to some old school marketing!

Why? I’ll tell you why!

- Because actual people will be landing on your web properties, even the properties that you don’t want people landing on.

- Because Google has Google Voice and, whether they’ll admit it or not, that service is allowing them to teach their bots how to speak in a natural way, thus allowing Google to become very copy savvy.

- Because the #1 position on the SERPs doesn’t mean a damn thing if your bounce rate is 100% after half a second.

- Because Google’s Freshness updates mean that, in many cases, there needs to be some buzz or recent activity around a brand for it to really matter at all.

- Because whatever Google does, Bing will try to do better.

- Because social is a firmly integrated mainstay in search across the board.

- And because a real live user spends money. A Google bot does not.

These reasons and more are proof positive that old school marketing is making a comeback in a very real way.

What do I mean by “old school marketing“? Glad you asked! It just so happens to be the very reason that I am in this field today!

Old school marketing is simple! You’re presented with a brand. That brand either does have, or does not yet have, a voice. If it does, you learn it and you live it. If it does not, you create it. From there, you establish a presence within your industry. You craft an image, you surround that image with emotion and necessity. You convince your target audience that they can not live without your brand and that any other brand is simply settling for less than the ultimate. That image involves art, copy, medium and campaign. Once that is established, you send your brand out into the world. Its success or failure rests with you. If your target audience gets it, buys it and loves it, you succeed. If your target audience hears and sees the message but decides that they can live without it, you fail. Back to the drawing board. Do it again.

That, in a very tight nutshell, is old school marketing. That is what Google is leading the charge into, forcing all of us savvy marketers back into the Mad Men state of mind. And we will all be better for it! As will our brands.

I can hear some of the grumblings now. Google is still just a search engine employing the use of bots to find keywords, your mind mutters.

But, really, is it?

This new search engine realm is not like that of old. The malarkey that some were able to sell to the engines before will not be bought nowadays because those engines are not the search mechanisms of times gone by. They are gaining in intelligence and they are looking out for the user. They are ranking the relevant pages, the well crafted pages, the overwhelmingly awesome pages, the pages that users want to see! How do they know this? Because the users comment, they share, they update, they spread these pages around. Will a user spread around some piece of garbage aimed at “marketing to the search engines”? No, they won’t.

Old school marketing. It’s time to put passion back into this marketing world! It’s time to live and breathe our brands, once again! It’s time to actually care about a brand’s performance with their target audience, not just their ranking within some ancient algorithm that is set to disappear at any time. It’s time to take our brands and make them irresistible. Oneupweb has done this all along, has your marketing house?

Categories: Advertising, Design & Usability, Google Series, News, Search Engines, Search Marketing, Social Media
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