Andreas Weigend
Social Data Revolution
MS&E 237, Stanford University, Spring 2010

Class 10: Marketing

Date: April 29, 2010
Audio | Video | Transcript
Company: Rocket Fuel Inc , Open-First

What is marketing all about?

- understanding clients' needs
- strategy to use in sales, communication and business development

Evolution of marketing

Recently, marketing has evolved to set place to a new kind of marketing. Below are some differences between those old and new marketing:

Old marketing
New marketing
Create a message for the customer to feel special
The customer create or co-create the message
Companies want to make you believe they have something special for you
Companies help people to make good decision for themselves
1-to-1 marketing without listening and with interrupting
1-to-1 marketing without interrupting and with listening
Technology was the bottleneck (too much data to process)
creativity is the only limit
Pricing: charge as much as you can
Pricing: charge as little as you can
The firm knows its products better than the customer
The customers know the products better than the firm

A few acronyms useful in advertising:
- CPM : cost per mille
- CPC : cost per click
- CPA : cost per action

Role of social media in new marketing methods

Social Marketing by Mark Torrance

Mark Torrance is currently CTO at Rocket Fuel Inc, a company specialized in online display advertising. A complete résumé of Mark Torrance can be found here .

Today, it exists two ways to buy online ads :
1. Ad serving (DoubleClick for example) which consist in placing ads on websites
2. Real time bidding which, given the characteristics of a customer arriving on a website, launch an auction between pre-agreed firms (which bet according to the user's characteristics) and display the ad of the company which won the auction.

What kind of data are we using in the second case? Both behavioral and contextual data.

1. Corporate marketing messages

The most time consuming.
- leverage large and pre-built communities vs. control your own audience
- control the message/keep it positive vs. being inclusive/full breadth of opinion
Social advertising is actually good for companies which have a good product (more people satisfied than unsatisfied)

2. Gaming

Display ads during the game (Xbox platform): is likely to be more and more used.
Or trade real money for virtual goods (Zynga business model)

3. Advertising

Audience is shifting online so do advertising.
Additionally, online advertising is more effective due to:
- contextual analysis: advertising relevant between nearby items
- behavioral analysis: advertising relevant to past user actions

4. Scraping social content

What can marketers tell about me?

5. Direct response ads

Get people to take action immediately
Leverage immediate to context to know what to pitch

6. Paid comments

7. Policies matter

Engage within ads

Open-First essay competition by Ted Shelton

All the information about this competition can be found here .

Alex Point