I like companies with “Play” in the name.  I also like companies that have started to crack the micro-payment model in the US.  Playdom just announced a funding round that raised $43M while Playfish made off with $275M from EA.  This amounts to some interesting validation of the Social-Causal Game / Micro-Payment Space.  Details are sketchy but it looks like these guys are pulling in $40M to $60M a year in micro-payments fueled by their Facebook and MySpace games such as Mob Wars and Social Life.

We’ve seen excitement with this kind of thing before — remember the Beenz and Flooz craze?  But this is different.  This is a new low risk / high engagement way for consumers to pay for casual games — and soon other things too.  Why ask the consumer to pay $20 once up front for a game or service while you could ask them for $1.00 at a time 5 times a day for everyday they use the game/service.  Expect this new payment method to be proven and profected in the game space then move into consul and handheld games, online video, social networking, news, and maybe to TV.

There are a couple factors at play that make the micro-payment model compelling to producers and consumers.  But two overlooked factors are environmental trends and the decline in consumerism.  The next generation may feel completely comfortable with sending a $1 virtual rose bouquet on V-day rather than spending $40 of on handful of flowers that were cut from the ground to whither and die just for that special someone.

1,000,000 Fans and Counting

A corny gimmick and some free publicity can get you a million or so Facebook Fans fast.  For proof check out the “If 1M people join, girlfriend will let me turn house into pirate ship” group to see how it is done.  This appears to be just grass roots craziness that caught on like virtual wild fire over the last couple days.  It’s hard to tell how the sparks were started but the content is pure geekdom gold (for those non-geeks, Pirates is a geek meme that is only rivaled by Ninjas).  They are trying to capitalize on the success of the site through a CafePress store where they might make a couple bucks.  But the effort doesn’t appear to be motivated by commercial gains.

Which is unlike the effort we saw a couple months ago from TGI Fridays.  Their Woody Fan Page promised a free hamburger for all if the fan page topped over 500,000 fans.  This promotion was also heavily featured on TV.  It’s a great idea that has to be executed very very carefully.  For a primer on what can go wrong just read through Woody’s Fan Page discussion board (link).  Here’s an example of damage control:

Woody Damage Control

Thoughts:

• I’m a huge fan of leveraging communications to build an audience that you can communicate to directly.  What was once your Email capture strategy is now your Social Network Fan base creation strategy.  The bigger your base the more effective the communication.  So look to include links to your Social Networking site in your mass communications.
• Using a gimmick to quickly build your base is a good idea if executed correctly.  But gathering the fans is just the first step.  You need a solid communication plan that nurtures that fan base.  And expect to dedicate resources to it.  But what better way to send a direct personal communication to million consumers!
• WARNING:  Think twice before setting up a persona as the face of your brand.  TGIF’s use of Woody is extremely dangerous.  As you can see for his post he is speaking “to the people at TGIF” — he is not speaking on behave of the company.  What happens when he gets arrested for indecent exposure?  And how does TGIF use this base three years from now when they want to do an entirely different campaign.

Wendy's Real Time Site

There are some interesting campaigns based around the voice of the consumer.  We first saw this with Skittles and now with Wendy’s.

The idea is to pull together user generated content that is popping up on Twitter, YouTube, Flickr, etc. onto the Wendy’s web site.  The display is a random cascade of user generated posts, pictures, and videos.  It seems to me that there is a potentially engaging concept here but I haven’t seen an execution that lives up to the concept.

It’s interesting to see how we could have gotten here by looking at the history of interactive marketing.  We first mimicked traditional mediums by broadcasting a unidirectional message.  Then over the last 3 years or so we all started to delve into multidirectional conversations with the consumer.  Now it appears the pendulum has swung all the way to unidirectional but the message is coming from the consumer.    I’m not sure that this is anything more than a gimmick but like I said, maybe there is something worth looking into.

Thoughts:

• The Wendy’s and Skittles execution lack a purpose.  I get it but why would I get engaged.  And what is the connection to the product?
• There is potential here.  Especially around the idea that you can reward your brand’s fan base by showcasing their posts.  Hence enticing them to post more.  But this can also quickly backfire as mischief makers start learn how to game the system.
• An execution of this nature needs a purpose.  It may work better if linked to a cause or movement.  Combining your brand with a cause ,such as Breast Cancer Awareness, than wrapping that into a platform for consumers to share with each other will build engagement much better than these stand alone concepts.

How do you think this concept can be executed in a meaningful integrated campaign?

ClickZ has some great background on a campaign Rubbermaid did through SocNet site BigTent (link to article).

The campaign focused on remodeling a Mommy Blogger’s kitchen using Rubbermaid products.  The big take away for me is the goal set for this campaign — the expectations were 250 coupon downloads and 500 links into the Mommy Blogger’s posts on Rubbermaid.  Those goals where exceeded by almost 1000 coupon downloads and 2500 backlinks.

I’ve dabbled in measuring SocNet campaigns by the number of coupons downloaded and still haven’t cracked it.  The numbers always seem too low to justify the campaign — but the numbers I’ve seen are in line with Rubbermaid’s campaign.  Which tells me my expectations are too high AND coupon downloads are not a great measure of the campaign’s success.

There has been a lot of discussion about measuring SocNet campaigns and just as we have seen with display ads I assume the debate will never be conclusively concluded.  Call me old school but I want definitive measures that show a connection to sales and justify the spend to management.  I doubt that 1000 coupon’s justified this campaign spend — so our quest for a meaningful measurement continues.

Thoughts on meaningful measures:

• Can we measure the amount of “brand buzz” over time.  So we benchmark the amount of SocNet chatter before, during, and after the campaign and set an index level of chatter we want to maintain.
• Can we drive consumers into the store from a SocNet campaign?  First, it’s a mistake to think of campaigns in terms of their tactics.  We don’t have “SocNet campaigns”.  We have Consumer Activation campaigns that use SocNet as one tactic.  To drive consumers we need to have surround sound campaigns that are amplified through SocNet.

Check out this great video chock full of SocNet facts.  The big idea I took away from this video was the concept that your Brand has to be invited to the party.  To me that is the big shift we marketers need to embrace.  Note that it’s not the Brand’s party!  Your brand has to be invited to the party by the consumer.  The party is happening on Facebook, on Twitter, on the iPhone, on MySpace, and soon on your TV.

Yes, traditional and online display advertising is not dead.  But it now must be considered as a part of a holistic whole that adds up to a highly engaged consumer.  The era of the big budgets going to TV and Print while non-traditional, PR, and Promotions followed behind nibbling on the left overs is over.  The era of a combined communications plan that leverages all of the available tools to surround the consumer is here.  And those tools need to be used to get your brand invited to the party.

Thought’s on how to get your brand invited:

• Add real value:  The folks that keep getting invited party after party add value to the overall experience.  The funny guy, the guy that can mix drinks, and guy that brings the ladies, all get invited time and time again.  Same thing with brands — add real value and you’ll be invited.
• Be a brand that your target consumer would want to be associated with:  Just like a real party, to get invited you’re going to need to  fit in.  For a brand that means you have to define a strong DNA that your target consumer can identify with.  If your brand has a wishy-washy nondescript DNA then don’t expect to be invited — the brands that scream their DNA loud and clear will get in the door.
• Listen and Add to the Conversation:  To get into the party and stay involved you need a communication strategy that keeps the conversation going.  Stop thinking “Campaigns” and start thinking “Ongoing Dialog”.  A “Campaign” to me suggests a hit and run approach that can leave your audience wondering “what was that and what comes next”. An ongoing dialog makes your Brand the life of the party — that old friend that keeps everyone engaged.  For a great example of this follow Dunkin Donuts.