Erik Qualman's Blog, page 697

Inc. 500 Companies Seeing Positive Results From SM Use

Inc. 500 Companies using Social Media and ACTUALLY seeing positive results is on the rise. More small businesses need to view the importance of Social Media the same as their larger counterparts.

Interesting to note that Facebook success rates have gone up from 54% to 85% while services like twitter and blogging have gone down.

Overall the importance of Social Media in a Inc. 500 companies business strategy has gone up 16% year over year. These companies will continue to use these conduits for client acquisition and retention as 2011 unfolds.

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Article from eMarketer http://www.emarketer.com/Article.aspx?R=1008211

On stats from Umass Dartmoth Center for Marketing Research

Written by Chris Van Dusen

Chris Van Dusen is a tech enthusiast, remote efficiency specialist and entrepreneur. He is the president of i-FFICIENCY, a consultancy he co-founded to help small businesses and startups leverage new technology in the sales process. Chris is also Director of Business Development and New Media for Rief Media, a full service marketing and communications firm.

chris@riefmedia.com

twitter: @ifficiency

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Published on February 09, 2011 11:02

Groupon Responds to Super Bowl Ad Complaints

Groupon CEO Andrew Mason responded to the backlash on Twitter and Facebook about Groupon's "Tibet" Super Bowl ad via the Groupon Blog:

We take the causes we highlighted extremely seriously – that's why we created this campaign in partnership with many hallmark community organizations, for whom we're raising money at SaveTheMoney.org.

Groupon's roots are in social activism – we actually began as cause-based website called The Point, and we continue to use Groupon to support local causes with our G-Team initiative. In our two short years as a business, we've already raised millions of dollars for national charities like Donors Choose and Kiva.

As Mason points out, Groupon's roots are cause-based, The Point, and is designed to help small and local businesses have a platform to compete against corporations.

Mason further goes on to state that the ads were designed to poke fun at Groupon, not make fun of the people of Tibet.

Christopher Guest was the director of this spot and he is best known for the spoofs "This is Spinal Tap," "Best in Show," and "Waiting for Guffman."

The creators of the ads, Crispin Porter + Bogusk, are known for making waves. The Miami & Colorado based agency was also behind the Whopper Sacrifice campaign for Burger King that gave away, ironically enough, a coupon to people that would "defriend" ten people on Facebook. Facebook removed the campaign in 2009. The controversy surrounding this campaign resulted in 32 million free media impressions.

The question remains, is all PR good PR? Will the controversy around this Tibet ad actually drive Groupon's stated desire: to raise awareness around these causes in the hopes of increasing donations to them?

Greenpeace supports Groupon:

The commercial was part of a Groupon campaign called "Save the Money." Greenpeace is happily participating in the campaign. The truth is that the "Save the Money" campaign and the commercial are really helping us save the whales.

Here's how it works: Groupon is collecting donations from individuals to help Greenpeace save the whales. People can purchase a $15 Groupon to save the whales and when they do, Groupon matches that by giving the person $15 in Groupon credit. It's a great campaign and it's really going to help us in our work.

This is in reference to another Groupon Ad with Cuba Gooding Jr. around saving the whales (below):

Groupon plans to edit the commercials to call-out ways in which people can donate money to SaveTheMoney.org.

Only time will tell if it appeases people like @rohitbhargaya who posted "Groupon seems to have achieved the unique feat of paying $3M to lose customers who previously loved them."

A viewer named Vinod posted on the Groupon blog in response to Mason's explaination:

I know what you were trying to convey, but you had 2 problems.

The ad wasn't very funny to being with. If it made people laugh you wouldn't see all of the negative feedback. It simply lacked the humor necessary to trivialize a topic like Tibet.
The ad didn't explain your intentions enough.

Another reader named Mary posted: "I thought they were great."

Mason's quick response is a step in the right direction (something more companies should do) and if more money is raised as a result of this controversy than perhaps things will end positively for everyone.

By Erik Qualman

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Published on February 08, 2011 08:11

Groupon Super Bowl Ad Backfires

By Erik Qualman

Interesting that a social media company [Groupon] didn't understand the social media backlash it could receive by running a culturally insensitive advertisement during the Super Bowl.

What social media allows for is "word of mouth on digital steroids." If a company does something bad, things can snowball in a hurry. Below are just a few of the reactions to the Groupon Super Bowl Ad on Twitter. @JeremyRSchultz posted "Did Groupon achieve the dubious distinction for spending ad dollars to actually lose customers?"

@rohitbhargaya posted "Groupon seems to have achieved the unique feat of paying $3M to lose customers who previously loved them."

If you didn't see the advertisement (above) it essentially conveys the following: Ad begins in a serious tone describing the hardships facing the people of Tibet, but then it quickly turns light with a guy in a restaurant stating it's okay because he got a great Groupon for Himalaya Restaurant in Chicago so it's good, cheap food for us living in the Western World. Growing up in the Midwest (Detroit) and living in Chicago this is even more offensive to me as I know how kind the people are in the Midwest are.

I believe @Reputationista may have put it best with: "Well. Off to buy a new #Chryser, drinka #Coke, switch to #Verizon, unsubsrive to #Groupon and fire #GoDaddy." To see the top ads from the Super Bowl click here.

Since Google was rumored to have offered $6 billion to purchase Groupon an appropriate question would be "What Would Google Do?" This is the name of Jeff Jarvis' book and my answer would be a good start would be to donate some money toward the cause in Tibet.

As a fan of Groupon I hope they realize their mistake and take the necessary actions to correct it. What do you think?

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Published on February 07, 2011 06:42