Being a consumer advocate I am intrigued by the concept of advertising methodologies for social networks. I think there is grand opportunity to engage consumers more effectively within social networks.
Sales Happen with Good Conversations
Why do I think the opportunity is significant? Sales happen as the result of good conversations. And good conversation happen when you are an organic or invited part of them, not when you interrupt them.
So, then I think the answer to my next question is obvious. Do I think the advertising methodologies are the same (i.e., affiliates, display, search, etc.)? Certainly not and this goes to my ultimate question.
Does Social Network Advertising Scale?
Scaling Social Network Advertising
I guess my first reaction is frustratingly–No.
Sure, I can put up Facebook flyers and get a few clicks, or SmartHippo may refine the data I get from advertisers, and Mint may give me incremental incentives; but, nothing that inspires a lead generation platform company. Generally, I need to be a part of conversations within the network to ultimately be successful. Being a part of the conversation certainly yields me a higher conversion factor. Unfortunately, propagating good conversation does not intuitively scale.
As an individual advertiser, solving this problem is relatively easy. You simply need to release it beyond the confines of the marketing department. Your employees are already plugged into these communities. Let them have meaningful, lead generating conversations about their work.
But, how do you create a compelling advertising network or lead generation business plan out of this?
Lead Generation for Social Networks
Here are a few of the opportunities:
- Provide content
Most lead generation and advertising firms are loaded with content and content factories. Unfortunately, social networks and the groups that form within them are very typically starved for anything beyond idle, randomly valuable chatter. However, every community organizer knows the value of one or two respected members that provide well thought out, engaging, and relevant content. Be transparent and sponsor one or more of those roles.
- Provide interactive advertising games
Increasingly, with platforms like Facebook, simple, fun, and collaborative games are the rage. Sponsor or design one for your company and then release it to the wild. See Facebook Food Fight.
- Provide useful widgets
This is a great opportunity to sponsor functionality that many community organizers within a social network don’t have the capability to commission. And the big benefit is that it becomes an attractor for the community and the advertiser to get visitor loyalty and return. See Facebook Mortgage Calculator.
- Provide experts
Experts are the crown jewel of any community or social network. You ability to provide or sponsor that consensus, evolved, or sponsored expert into the conversation is again a community builder and traffic generator.
Now Scale Your Process
The key to gaining consumer inquiries from social networks is stop interrupting their conversations with your traditional methods and start building these communities to source you quality lead generating traffic.
Generate the leads from the sponsored traffic. If you become a trusted, valuable contributor to the network you will become the default provider of your service to community.
Tags: advertising, lead generation, social networks, social media, facebook, smarthippo, mint
Silence,
It sounds so easy but why is it so difficult to start? I guess I could almost answer that. It seems like uncharted waters, because I will be honest, I don’t fool around with that stuff. Am I too old?
IF you had a to pick one place to start where would that be?
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The building of community is key for any social network to have value, and fostering that community has a myriad of issues. Providing people simply the ability to vote on rates or play games is not enough to build a valuable community or to foster lead generation. There are vast existing social graphs on the internet that can be scaled to benefit the consumer and the lender.
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Duran,
If you are a loan officer I always suggest a combination of LinkedIN and Facebook.
LinkedIN gives you a professional and public profile, much like the loan officer pages of old. This gives you a platform to quickly document your credentials and build trust, and Google likes LinkedIN.
Then Facebook. This allows you to create a more personable profile and collaborate within a variety of communities. I like this because it is square in the middle of the new market demographic–smart young people getting ready to start families and buy homes.
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ConsumerControl,
I feel like I was in a drive by shooting. I think your comment was a general objection to my premise, but you left nothing valuable behind???
And your use of “social graph,” a mathematical term for the more common and understandable “network” pegs your attempt to be an “expert.”
I think you missed the point. I was not trying to figure out how to scale a community or social networks. I am pondering how to scale advertising and lead generation within existing social “graphs.”
Do you have any stray bullets, I mean comments on that?
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Boys, Boys, Boys common. It’s been some time since I’ve left my mark on the site but here goes. I agree with Do-Good. As more and more consumers regardless of the vertical get older a meaner, leaner, younger consumer becomes our target. This younger generation RELISHES social networking and rumors, pictures, music and even advertising flashes across the net in micro-seconds (Techie term, – makes me an expert – LOL). The days of clubbing baby seals on the mortgage side is long gone. You MUST foster relationships and social networking is one way to do this. Long term thinking and consistency will prevail. Watch what the big banks are doing. They are reaching out to their client base with print, email, etc. to foster those relationships. Forrester research shows that these big banks get the majority of their clients from referrals and past business, don’t you think they will stay in touch with them via social N’s in the very near future? Anyways, that’s all folks.
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Holy smokes! Look who has emerged.
Social networks get me business. Why wouldn’t it work for mortgage. Advertisers and lead generation companies that are not thinking about this are making opportunity for those who are.
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Bill as always good to hear from you, miss being relevant. I will pay attention from here on out my friend.
LG
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Silence,
I think we are on the same page. I wasn’t trying to do a drive by and by all means I meant no offense to your post.
My comment was simply to the point that creating a new community for one to discuss financial issues is going to have its issues getting off the ground. Bill had a quote in a recent blog post of his to this point (BTW, I agree with Bill, there is great opportunity). I just simply believe that virtual “food fighting” isn’t going to harvest more leads. Then again I could be completely wrong.
I think providing the network with the ability to rant or rave (see. Zuzzid [http://www.zuzzid.co.uk/]) and also empowering the mortgage experts with a voice (maybe something like Yahoo! Answers) would be a good start.
As far as social graphs, I think that can be interpreted many ways. This is a new frontier and I don’t think any of us can claim to be experts. I certainly don’t. But I am more than willing to stick my foot in the fire to learn.
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ConsumerControl,
Don’t worry about offending me. Just trying to get the debate sharp. In fact, I just read Steve Ruebel (PR guy from Edelman) that debates Facebook is a bubble. Maybe it is–remember Friendster? So maybe the skeptics are right.
I also agree with you that food fight does not create mortgage leads, but it does encourage community activity and participation. That makes repeat eyeballs. And name brand foods are getting there names in that foray of food flinging. Maybe some one should write a whack-a-mortgage-broker Facebook app?
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