Businesses looking to make inroads online could learn a great deal from the social networking employed by the Barack Obama campaign for President of the United States. Ever since he took on Hilary Clinton and won in a stunning upset once thought impossible by political pundits, Obama and his team (including 24-year-old Facebook co-founder Chris Hughes) have used social networking and online marketing techniques to mobilize their forces, get donations and spread the word about the candidate and his message.

In January, Obama set a record for donations in one month by raising a total of $32 million dollars, $28 million of which was raised online. From these $28 million in online contributions, 90% were under $100, with over 250,000 contributors (source). In February, Obama didn’t attend one single fundraiser and still managed to raise $55 million online.

How did the Obama team do it? Here are several key elements to the social networking aspect of the campaign.

The website. Obama’s official website (www.barackobama.com) has a strong social networking element. The site is filled with ways for supporters to share information and learn about speeches and gatherings in their area. After spending just a few minutes on the website, it is easy to see that it was created by professionals who understand the importance of interactivity and a strong user interface. With every piece of content comes the opportunity to make a donation.

The tools. The Obama website gives users a lot of options for customization. The site provides tools for supporters to hold their own meetings and fundraisers – setting the guidelines to help run the events, but allowing each individual to determine how much money they wish to ask for and the style of the event.

The email campaigns. At organized Obama events, supporters are only asked for an email address, not a donation. Those who sign up to be on the official Obama for President mailing list receive smart, highly coordinated emails several times a week. These emails are geo-targeted on many occasions to alert the individual about upcoming events in their area. The emails also have a personal feel, sporting a relaxed style of writing and are often penned by the candidate, his chiefs of staff or even his wife Michele.

Facebook, MySpace and Twitter. No politician has run for office during the heyday of the major social networking sites, but Obama really has no fear when it comes to using these entities to further his cause. Check into Facebook and you will find the official Obama group and thousands of like-minded groups. Get over to Twitter and you can follow every move the candidate makes as he crisscrosses the country. Even MySpace is filled with efforts to spread the word among voters who are likely taking part in their first election. The campaign understands the limited resources of young Americans, and asks for only small donations on these sites.

The access. Unlike his competitor John McCain, Barack Obama has been an active part of his online campaigns. He writes his own emails and creates exclusive videos just for his online supporters. The result is an immediacy and personal nature to his campaign that few candidates will ever match.

Whether or not Obama wins the presidency in November, he and his outstanding online marketing team have changed the way politicians reach out to the American public and generate funds for their campaign. By knowing the ins and outs of the most current, most popular forms of online marketing, he has set an example not only for future candidates, but businesses that want to target customers with pinpoint accuracy and build their brand online via email, website and social marketing techniques.

 

by Ryan Peddycord on October 15, 2008

I typically ask them “What’s your answer to that question?” Most try to give me percentages of this or that type of marketing that they are trying.

My answer to the question is: “Why would you want to balance them at all? Is that wise?”

In 2005 a Harris Interactive Poll and a survey by the Public Relations Society of America asked a total of 10,000 people (5,000 Consumers,2,500 Fortune 1000 business people, 2,500 Congressional staffers) this question: Is Traditional Marketing Still Valid? 80% said “Yes” “It still works because people still view them.”

Let me be clear that I’m defining Traditional Marketing as Print Mediums of all types, Newspapers, Magazines, Billboards, as well as TV & Radio spots and all various types of mailers, flyer’s, Door Hangers, etc. It has been suggested that Traditional Marketing does have some advantages such as:

1. Best way to spread your message locally?
2. Best way to spread your message within a small targeted group?
3. Works Best For Local Retail Offers!!!
4. One Time Local Events/Sales!!
5. Uses a Physical Reminder (Card/Flyer,etc)
6. Reaches Prospects Not Web Connected

To me the most important advantage is #6. Why? Since 2005 Traditional Marketing has declined! To see why, look at these statistics:

• 72% 0f the American population owns or has access to computers connected to the Internet (Jan 2009)
• 28% of the world population has Internet access, but increasing by 10% per year [Jan 2008]
• Internet is the preferred medium to receive/find product info at work/employers [office products catalogs]and second preferred at home to a majority of Americans…..Since 2007
• Americans spend 14 hours per week watching TV- Jan 2009 {Nielsen Ratings}
• Americans spend 14 hours per week online (Google Stats) Jan 2009
• 11 research firms predicted that online ad spending will grow by 12-19% in 2009
• According to a AMA Flash Poll- May 2009- 72% of marketers : “their online marketing budgets will rise or remain the same during the recession”

Online or Internet Marketing has 3 Vital Advantages:

1. It’s less costly- a large CPA firm did a cost analysis that showed the typical 1,000 piece traditional marketing campaign cost its clients a $1,450 capital outlay plus the use of from 128 to 184 man hours to produce; an email campaign had no capital outlay and used only 32 man hours to produce. So, $1,450 + up to 184 man-hours vs. $0 + 32 man-hours- seems like a no brainer to me!

2. Better Proof Of Reach - How do you know if someone actually received and read your flyer or mailer or ad in any publication. You have to take it with some blind faith unless you’re running some type of coupon required special. But even then you can only count those who brought the coupon to you, not how many actually viewed the coupon or your ad. Internet marketing provides powerful web analytics, traffic tracking programs, real time conversion statistics and you can make real time changes to your campaign to improve it immediately. You’ll know who came to your website and what they viewed, how long and the list goes on.

3. Conversion Rate – Traditional Marketing- General Audience Target; If you’re looking for potential new customers a 1-2% prospect response is typical; a 5-7% current customer response rate is the norm. But with Internet Marketing your prospect/customer comes to you, customers know what they want and are more likely to be ready to buy!

The typical conversion rate is higher, as much as 20%.

Another item to consider are the current generations of buyers.

• The Millennials/Gen-Y’s (born 1980- 2000) are 75 million strong!
• The Gen-Xer’s (born 1964-1979) have about 51 million members
• The Baby Boomers generation (born 1946-1964) are 112 million potential buyers

Please note: Gen Y & X: are only reached consistently through electronic/Internet media marketing. Why? They do not respond to print media as a whole. They are always connected to computers, blackberry’s, TV’s and using the texting world on their cell phones. [Now you know why the Boston Globe and the NY Times are up for sale and a Seattle newspaper stopped printing & now only produces an internet version of it's paper]

• Plus the Boomers are retiring and their buying power dropping

So to sum this all up, I see there are 6 reasons why Internet Marketing is more effective:

Internet Marketing is More Measurable

A-Brand Awareness is easier to develop & measure based upon website visits/conversions,etc.
B-You’ll see what you’re paying for- $ vs. result
C-Traditional Marketing requires lots of trust, did your audience really get it and respond? How do you know?
D-Your ROI is easily determined using real facts and details

Internet Marketers Make Strategic Decisions Based on (Real Time)Facts

A-You can get detailed analytics in Real Time.
B-You’ll know how people found your website
C-You’ll know what they do once they are on your site?
D-You’ll know what people respond to?
E-You’ll know what led to your conversations/sales!
F-You can make changes anytime to increase effectiveness!

Internet Marketing Is Better at Reaching Your Target Audience

A-Traditional Marketing can only target based upon a TV station’s, Radio station’s or Magazine’s assumed demographics.
B-Internet Marketing can target small audience groups such as by Zip Code, State, Age, Gender,etc.
C- You’ll know your targeted advertising spend!

Internet Marketing is a Constant Source

A-Traditional marketing has a finite shelf life (30 second commercials play & go, print ads get thrown away,etc.)
B-Internet Marketing has a permanent online presence and a good SEO/Web hosting company can provide that for you. Finding the right SEO however is critical to your websites visibility!
C-Prospects/customers can view your information anytime!
D-Search Engines will bring new customers to you who are looking for your product or service. But again effective SEO techniques are a must!
E-Searchers are more predisposed to buy when they find you.

Internet Marketing Provides Better Word-of-Mouth

A-Word of Mouth we all know provides the most likely conversions
B-Social Media Marketing (FaceBook, LinkedIn, Twitter, etc) can provide evangelists of your company or product and can speak virally throughout the world wide web!
C-Word of mouth advertising is a more trusted source of leads than Traditional Ads

Internet Marketing = More Conversions

A-Campaign details can be studied
B- You’ll know what’s working & what’s not quickly
C- You have less guessing so you can emphasize what’s working and eliminate what’s not working and always be improving your campaign!
D- You can test new ideas immediately and get instant feedback!

So as you can see the bottom line about Internet Marketing is it’s:

1-More Efficient & Effective
2- More Flexible (adjust on the fly)
3- Much Less Expensive
4-Providing Real Time Analytics
5- Giving You Return On Investment Details Immediately

About the Author

Walt Morey
Core Business Solutions
727-647-8242
Accredited Associate of the Institute for Independent Business
Walt Morey’s Blog