Social Media Marketing Is A Dying Business Model

Social Media Marketing Is A Dying Business Model
SHARE
THIS



At the 2013 National Radio Conference radio’s Jules Lund told the audience how to make content go viral on social media in order to build a tribe or following for a brand.

In the few weeks that followed Lund’s talk – it became entirely redundant, because Facebook killed Edgerank – the algorithm used to prioritise Facebook posts relevant to the user.

“Not only can Facebook detect viral content, but it can block it,” Lund told the 2014 National Radio Conference on Friday.

Following the demise of EdgeRank, the organic reach of every single brand page dropped to an average of 2%. “So if you had 100 fans, Facebook would only deliver your content to two of them,” said Lund.

At this year’s conference, Lund asked: ‘How does a brand reach consumers via social media?’ “Write a cheque,” he said.

“This is the business model we should have seen coming,” he said. Many businesses were relishing in the fact they could reach thousands and millions of fans for free. But Lund quipped: “The first hit was for free – now little junkies, you’ve gotta cough up.”

Jules Lund presenting at the 2014 National Radio Conference in Melbourne.

Jules Lund presenting at the 2014 National Radio Conference in Melbourne.

To explain the change in the social media marketing model, Lund used this analogy: “Imagine Channel Nine spending millions to create The Block. They then spend millions in marketing, which works, because millions of people are watching. But then imagine that the TV screen introduces a pay wall – so that the only way content reaches the audience is if Channel Nine pay that screen a shit load of cash. Then imagine how much money that screen would make from all of Channel Nine’s content. Now imagine the money that screen would make charging every channel in every country in the world. People paying shitloads to reach their own audience.”

Lund made the argument that every single brand page on Facebook is its own channel. “There are 21 million of them and it’s growing one million a month – all of them are paying to reach their own audience,” explained Lund. It’s a development by Facebook that Lund admitted is “fucking genius”.

Unlike a few years back when sharing pics, clips and articles was quite labour intensive, now everyone has smartphones and can post at the tap of a button. People are only collecting more friends and liking more pages, so as many as 15,000 potential stories can appear at any time they log in. As a result, competition in the newsfeed is increasing

Lund believes the only way around the monetisation of social media as a marketing tool is by buying reach. “It’s a trend that isn’t going away anytime soon,” he says. Twitter does a similar thing with promoted posts on its self-serve ad platform and the platform is working toward making user timelines more relevant which will encourage brands to pay for reach.

And many other social platforms, which were previously ad-free are now – or soon to become – monetised. These social platforms are able to deliver incredibly targeted advertising because of the access of big data, which is made easily accessible because of the information stored in an individual’s smart phone.

Lund calls big data “the gold rush of the 21st Century” but he insists consumers can make this work for them too. He said: “If I don’t have to sit through hundreds of tampon ads while watching The Bachelor, then that’s good. My smart TV will know I’m sitting there and will advertise to me locally because of the information it receives from my phone. I might get an ad for a nachos pizza at my favourite take away joint around the corner.”

Lund referenced a quote from his colleague, Clive Dickens, the outgoing director of digital and innovation at Southern Cross Austereo, who happened to be in the audience at the conference. Dickens had previously said: “Those who want to remain anonymous will simply have to write a cheque, so life will be more expensive for them. For those who can get over the creep-factor, they’ll have a more enriched content experience.”

In order to bring it back to ROI on social media as a marketing tool, Lund said he isn’t certain about how to achieve this. He said: “Using social to drag people to your site is a dying strategy.” He believes the best way for a brand to gain reach is by brands and influencers teaming up to promote a campaign.

“Traditionally, influencers were celebrities but in the digital world, it can be anyone with a fan base,” said Lund. The likely audience of a branded post will see it a mile away “and not give a shit,” he added.

Lund referred to a recent documentary he had watched called Generation Like and used the example of Tyler Oakley, a member of Generation Like as an example of a digital influencer. Oakley uses his presence on YouTube (his 5.5 million subscribers) to promote products and gets paid by brands to do so.

Lund believes brands partnering with influencers will be the future of social media marketing, because the influencers themselves are users of that particular brand. “There is no better endorsement than products you’ve already bought.”

Please login with linkedin to comment

Advertising Standards Bureau Job Lynx Men's Health Men’s Health Man Online ads Radio ReefReels Social Media Sony Music

Latest News

Voting For B&T’s 30 Under 30 People’s Choice Awards Is Now Open!
  • Media

Voting For B&T’s 30 Under 30 People’s Choice Awards Is Now Open!

The entries for B&T‘s 2021 30 Under 30 Awards have, tragically, closed for another year. Now though (drumroll please), you can vote for our People’s Choice award! In the time-honoured tradition of award shows across the globe, we’re handing over voting power to you, the people. Use it wisely. The People’s Choice award is exactly what […]

Taboola To Give $500,000 In Free Advertising To Women-Owned Businesses As Part Of International Women’s Day
  • Media

Taboola To Give $500,000 In Free Advertising To Women-Owned Businesses As Part Of International Women’s Day

Taboola, a global leader in powering recommendations for the open web, helping people discover things they may like, today announced the launch of #RecommendHER, a new global initiative to run during March 2021, that will provide $500,000 of free advertising on its network to women-owned businesses. This initiative empowers women-owned businesses to make a larger […]

BWS & M&C Saatchi Celebrate Mardi Gras With Store Makeovers & Drag Queen Deliveries
  • Campaigns

BWS & M&C Saatchi Celebrate Mardi Gras With Store Makeovers & Drag Queen Deliveries

This Mardi Gras weekend, BWS celebrated by bringing the glitz and glamour with store makeovers and drag queen drinks deliveries. Together, BWS and M&C Saatchi brought this project to fruition in three of the retailer’s Sydney stores near the Sydney Mardi Gras precinct – BWS Paddington South Dowling Street, BWS Paddington Oxford street and BWS […]

DDB Marks International Women’s Day By Recreating Iconic Phyllis Robinson Speech
  • Media

DDB Marks International Women’s Day By Recreating Iconic Phyllis Robinson Speech

In honor of International Women’s Day, DDB has recreated Phyllis Robinson’s, the agency’s first female copywriter, most iconic speech using the voices of women from around the world. Dubbed the first lady of Madison Avenue’s creative revolution, Phyllis was a foundation employee of Doyle Dane Bernbach back in 1949. She was a pioneer known for […]

Sunday TV Wrap: Ultimate Tag Premieres To Play Chasey With The Competition
  • Media

Sunday TV Wrap: Ultimate Tag Premieres To Play Chasey With The Competition

Sunday evening saw the premiere of Seven’s new game show Ultimate Tag which, as you might expect from the title, is an elite game of tag where every day Australians try to outrun ‘pro-taggers’ in a range of different obstacle courses. Ultimate Tag secured 447,000 viewers, cementing it as the eighth most-watched TV of the night. […]

Sportsbet Goes In-House For Latest Lunacy
  • Campaigns

Sportsbet Goes In-House For Latest Lunacy

Sportsbet has unveiled its latest campaign featuring the Elite Average Games and the ever-popular Aussie larrikin Gary Flynn, the Wheelie Bin Sprint champion. Developed by Sportsbet’s in-house team, in collaboration with production partner Palomina, the latest campaign features 6 x new sporting events and locations and is the second iteration of Sportsbet’s Elite Average Games […]

Double J Shares The Fifty Game-Changing Women Of Australian Music For International Women’s Day
  • Media

Double J Shares The Fifty Game-Changing Women Of Australian Music For International Women’s Day

For International Women’s Day, Double J has released their list of the fifty game-changing women and gender-diverse artists in Australian music. The list includes artists like Biftek, Courtney Barnett, Jess Mauboy, Julia Jacklin, Julia Stone, Kasey Chambers, Kylie Minogue, Meg Mac, Missy Higgins, Olivia Newton-John, Thelma Plum, and Tkay Maidza. To celebrate the list, which shares the […]

Samantha Armytage To Leave Sunrise
  • Media

Samantha Armytage To Leave Sunrise

Armytage, co-host of Seven’s morning show Sunrise, has announced her intention to depart the role, which she has held since 2013. According to a press release from Seven, the decision comes with the network’s “full support”, with new projects announced at a later stage. Armytage said, “the time has come for the sun to set on […]

Foxtel Doubles-Down On Women’s Sport For International Women’s Day
  • Media

Foxtel Doubles-Down On Women’s Sport For International Women’s Day

The Foxtel Group today marked International Women’s Day with a series of new initiatives to increase the visibility and accessibility of women’s sport on Foxtel and Kayo and through the Foxtel magazine. Foxtel Group chief content and commercial officer Amanda Laing said: “As Australia’s largest and most experienced producer and broadcaster of elite sports, we […]

UN Women Australia Ask ‘When Will She’ll Be Right?’ In New Campaign, Via The Monkeys
  • Advertising

UN Women Australia Ask ‘When Will She’ll Be Right?’ In New Campaign, Via The Monkeys

To rally the country to get behind the UN’s goal of achieving equality for women globally by 2030, UN Women Australia has unleashed ‘When Will She’ll Be Right?’, a powerful campaign that focuses the spotlight on gender inequality in Australia. Created by The Monkeys, part of Accenture Interactive, the campaign hijacks our popular saying, “She’ll […]

WPP AUNZ Women Talk International Women’s Day
  • Media

WPP AUNZ Women Talk International Women’s Day

WPP AUNZ has a long-term commitment to welcoming and supporting diversity and inclusion across all its teams. It says it cannot truly deliver upon our commitment to providing the very best solutions to our clients without ourselves being reflective of the wide-ranging variety of individuals that make up the rich cultures of the countries we […]

by B&T Magazine

B&T Magazine
Digital News Sites Up 8% YOY, With SMH Retaining Top Spot
  • Media

Digital News Sites Up 8% YOY, With SMH Retaining Top Spot

Latest emma figures show news brands continue their digital growth trajectory with an eight per cent increase for the 12 months to December 2020. The latest release of emma (Enhanced Media Metrics Australia) for the 12 months to 30 December 2020 shows an eight per cent increase in digital readership compared to the same period […]

Xandr Shares Comprehensive Approach To Identity
  • Marketing

Xandr Shares Comprehensive Approach To Identity

Xandr today shared insight into its multi-faceted approach to identity solutions, to facilitate high-value transactions for buyers and sellers following the deprecation of third-party cookies and device IDs.

When It Comes To Brand Building, Less Isn’t Always More
  • Opinion

When It Comes To Brand Building, Less Isn’t Always More

In this guest post, Hulsbosch’s creative director Marcel Wijnen, casts his design eye over what truly makes a brand and says it’s all about being true and essential… To do simple – and to be original – is a truly tough task. Not impossible, but not easy. Naturally, we can get lost in ‘striving for simplicity’ […]

Opinion

by B&T Magazine

B&T Magazine
South Australian Supermarket Chain Foodland Launches ‘Mighty’ New Campaign, Via KWP!
  • Advertising

South Australian Supermarket Chain Foodland Launches ‘Mighty’ New Campaign, Via KWP!

South Australia’s largest independent supermarket chain, Foodland – with its unforgettable jingle “Foodland, the mighty South Aussies, yeah” – will launch a new campaign on 7th March. The campaign coincides with the chain’s $251m expansion program to open twenty-five new stores, revamp fourty-seven and create 2,500 new jobs over the next five years. Agency KWP! […]