Major Ad Firms Will Struggle In Social Media

A recent WSJ article titled Social Media Draws a Crowd addressed the surge in social media advertising dollars and how traditional ad agencies are racing to get a piece of the action.

The push to form a more formidable presence in social-media advertising is being fueled by the increasing number of marketers who are eager to figure out how they can use sites such as Facebook Inc., which has almost 500 million users, and Twitter, with more than 120 million registered users, as a marketing weapon.

"Social media is now part of all our clients' plans; we can't not be in this space," says Matt Seiler, chief executive of Universal McCann.

Ad spending on social networks world-wide is expected to rise 14% this year to $2.5 billion, according to research firm eMarketer. Although social media represents only a fraction of the $55 billion online-ad market, it is one of the fastest-growing segments.

Some corporations have taken a hands-on role in crafting their efforts: PepsiCo Inc.'s Gatorade, for example, recently created its "Mission Control Center," which is set up like a broadcast-television control room and is charged with monitoring the sports drink around the clock across social-media networks.

Marketing is changing quickly but large firms will unlikely be very proficient at addressing the opportunity of new media. Its too decentralized and fluid. As I pointed out in a previous post titled, "The Days of Mass Everything Are Over":

In his book, "The Chaos Scenario", Bob Garfield, writer for Advertising Age magazine and co-host of NPR’s On the Media program, forecasts the disintegration of mass media and advertising structures that have dominated commerce for hundreds of years. Garfield astutely warns that all formerly top-down institutions cannot dictate to consumers with advertising through mass media as before, but must retool, restructure and reengineer their business models enbracing new digital tools and forging better relationships with customers—no longer seeing people as eyeballs or votes, but as REAL stakeholders in their enterprise.

Watch the video. Its really good.

The Chaos Scenario from Greg Stielstra on Vimeo.

Wireless Technology Meets Assisted Living - BeClose

I had the chance to visit with Dr. Mark Hanson late last week. He was part of the team that founded BeClose; their tag line is "Where Distance Disappears". I love that and you'll soon understand why. Mark received his doctorate in electrical engineering at the University of Virginia (U.Va.) where he researched wireless health technology with John Lach in the Integrated Networked Embedded Real-Time Technologies In Applications (INERTIA) group. He's an evangelist, along with his BeClose associates, for the coming wireless revolution.

BeClose is a breakthrough remote home monitoring system that allows you to be closely connected to your parents and loved ones as they age in the comfort of their own home. The solution is yet another example of how practical wireless applications are entering the marketplace: applications that solve real and pressing problems.

Increasingly we will see these mobile monitoring devices impact our world, and BeClose is an example of the beginning of that trend. The Internet is evolving to the embedded space. Intel Vice President Doug Davis cites the IDC prediction of 15 billion intelligent, connected devices by the year 2015, that is how big its going to get. Leveraging the power of Internet connectivity to a limitless variety of embedded devices, many communicating machine-to-machine without human intervention, has more far-reaching implications than most can imagine.

Health care, including wellness and fitness, will increasingly be affected by these technology trends. Check out BeClose CEO Liddy Manson, as she shares the details behind BeClose on this video.

Michael Bruno Acquires Star Trac

Consolidation in the fitness and wellness equipment business continues as Star Trac, a global leader in the commercial fitness industry, announced today that Michael Bruno and Star Trac signed an agreement whereby Bruno will purchase the controlling interest in Star Trac’s parent company. This will strengthen the company’s ability to provide the product innovation, quality, reliability and customer service that have been the Star Trac brand legacy since 1988. The parties expect to close within two business days. Financial terms of the acquisition have not been disclosed.

Bruno, a highly respected fitness industry veteran for more than 20 years, also has holdings that include Stairmaster based in Vancouver, Washington and Land America, a manufacturing firm in China that builds high-end consumer and commercial fitness equipment. His reorganization plan for Star Trac focuses on company continuity and aggressive streamlining.

“Our activities will create the foundation for the company to experience strong growth and profitability,” Bruno said. “This reorganization provides the resources for a strong balance sheet and positions Star Trac for long-term success.”

Star Trac is already recognized as a technology leader in the fitness industry, offering the very best in high performance cardiovascular and strength training equipment. The stability created by this reorganization allows the company to continue providing customers with market leading innovation and high quality service, directed by a strong management team led by President and COO Mike Leveque, a 17 year Star Trac veteran.

“Becoming a part of Bruno’s growing family of fitness companies is a tremendous opportunity for Star Trac,” Leveque said. “His other companies and Star Trac share a strong belief in serving customer needs, and Bruno is committed to supporting the ongoing product innovation investments that are critical for Star Trac to maintain its global leadership position.”

Star Trac will maintain its deep commitment to innovation and customer service. With the consolidation of U.S. operations to one Southern California location, the company will improve efficiencies and communication that will allow them to better serve their customers as a stronger company emerges.

Test For Longevity Genes Coming Soon

By analyzing the DNA of the world's oldest people, Boston University scientists said Thursday they have discovered a genetic signature of longevity. 

The researchers, who studied more than 1,000 people over the age of 100, identified a set of 150 unique genetic markers that, taken together, are linked to extreme longevity.

The researchers said they had no plans to patent the technique nor profit from it. Instead, they expect to make a free test kit available on the Internet later this month to foster longevity research.

The test might reveal more than some people would like to know, the BU scientists warned. Genetic testing often reveals tantalizing but incomplete information, and it's sometimes difficult to know how to respond. People with genes for extreme longevity could face a series of difficult decisions about their careers, retirement savings, insurance coverage, medical treatments and marriages in old age.

"I don't think people are ready for this from a social point of view," said BU geriatrician Thomas Perls, the other lead researcher. "But I don't think that will stop companies from trying to market this."

See this video from the Wall Street Journal as Stefanie Ilgenfritz discusses the discovery of a new genetic signature for human longevity which could lead to a test that reveals who is likely to live to a ripe old age.

Social Influence Marketing Trends

More great content from Shiv. 5 simple rules to follow for your social influence marketing efforts:

1. Let customers do more for you

2. Harness influencer dynamics

3. Make your brand more human

4. Create new business out of hidden assets

5. Take your digital experience on the road with location aware applications

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Social Trends - June 2010

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