Dropping March Madness Paywall Pays Off Big for CBS

CBS has turned one of the premier multi-day sports events into a destination purchase for Internet advertisers.

The NCAA men’s basketball tournament, which tips off later this week, has brought in millions in online ad sales. Ad Age reports that CBS has sold out its online inventory for $37 million, a number 20 percent higher than last year.

The appeal for advertisers is March Madness On Demand, the web service which allows users to watch the NCAA Tournament games of their choice livestreamed on CBSSports.com. Last year, 7.5 million viewers watched online up 7 percent year over year and CBS expects that number to continue to grow. Key to increasing views is the decision to allow the content to be distributed via multiple channels including Yahoo Sports and Facebook.

All 64 games of the tournament can be watched free online, a gamble which has paid off for CBS. Removing the paywalls and other restrictions to online viewing while maximizing distribution has paid off big. CBS has seen online ad revenues grow from $4 million in 2006 to this year’s $37 million total.

CBS is almost synonymous with the Tourney having held exclusive rights since 1982 and is currently in the middle of a 11-year rights deal with the NCAA for the Tourney, with 3 years remaining. According to WPP-owned Kantar Media, CBS’s online March Madness revenue totaled 5 percent of the overall $600 million plus ad revenue pie last year, up from 3.5 percent the year before and expected to edge even higher this year.

“This is extraordinarily similar to selling TV and that’s a good thing,” Rich Calacci, Senior VP-Advertising Sales CBSSports.com told Ad Age.

In collaboration with AT&T, CBS has another revenue stream coming from mobile this year, charging $9.99 for its March Madness iPhone app which will allow viewing on phones. But, according the Apple’s rankings, that isn’t turning off buyers. March Madness is the No. 2 paid iPhone sports app.

The sponsors CBS is picking up are quality sponsorships too, including Coke, Kraft Foods, AT&T and newcomer Capitol One.

According to Ad Age, CBS CEO Leslie Moonves called March Madness On Demand “a great new source of revenue” for his network.

Dropping March Madness Paywall Pays Off Big for CBS

CBS has turned one of the premier multi-day sports events into a destination purchase for Internet advertisers.

The NCAA men’s basketball tournament, which tips off later this week, has brought in millions in online ad sales. Ad Age reports that CBS has sold out its online inventory for $37 million, a number 20 percent higher than last year.

The appeal for advertisers is March Madness On Demand, the web service which allows users to watch the NCAA Tournament games of their choice livestreamed on CBSSports.com. Last year, 7.5 million viewers watched online up 7 percent year over year and CBS expects that number to continue to grow. Key to increasing views is the decision to allow the content to be distributed via multiple channels including Yahoo Sports and Facebook.

All 64 games of the tournament can be watched free online, a gamble which has paid off for CBS. Removing the paywalls and other restrictions to online viewing while maximizing distribution has paid off big. CBS has seen online ad revenues grow from $4 million in 2006 to this year’s $37 million total.

CBS is almost synonymous with the Tourney having held exclusive rights since 1982 and is currently in the middle of a 11-year rights deal with the NCAA for the Tourney, with 3 years remaining. According to WPP-owned Kantar Media, CBS’s online March Madness revenue totaled 5 percent of the overall $600 million plus ad revenue pie last year, up from 3.5 percent the year before and expected to edge even higher this year.

“This is extraordinarily similar to selling TV and that’s a good thing,” Rich Calacci, Senior VP-Advertising Sales CBSSports.com told Ad Age.

In collaboration with AT&T, CBS has another revenue stream coming from mobile this year, charging $9.99 for its March Madness iPhone app which will allow viewing on phones. But, according the Apple’s rankings, that isn’t turning off buyers. March Madness is the No. 2 paid iPhone sports app.

The sponsors CBS is picking up are quality sponsorships too, including Coke, Kraft Foods, AT&T and newcomer Capitol One.

According to Ad Age, CBS CEO Leslie Moonves called March Madness On Demand “a great new source of revenue” for his network.

MediaTrust Sets the Pace with NASCAR Success

There are few online to offline success stories. Often they are limited to large brands who are either part of the technology industry or whose consumer base are early adopters to technology trends. Which is why when Media Trust, ranked as the 9^th fastest growing company by Inc Magazine, joined forces with a little known driver outside of NASCAR circles named Joe Nemechek no one expected quick success. The results surprised everyone. I sat down with Peter Bordes, CEO of MediaTrust, to discuss that success.

How did the deal come together with Global Media Minds, Joe Nemechek, and NASCAR?

The whole thing happened very rapidly. In NASCAR there has been a contraction in the amount of sponsorship money available for drivers due to the economy. GMM approached us literally weeks before the racing season started with the idea. We decided to take on the challenge as a case study with the goal of creating a different way of packaging various elements of online marketing within the world of NASCAR racing. GMM had all these parts for Joe in place that weren’t really being leveraged:  a late 90’s style website, a Twitter account that was sort of being used, and a Facebook account that was only partially up to date. Nothing was really integrated together. So we ripped it apart and put it together in the short timeframe we had. What you see now is just version one of our concept, there are two or three more evolutions yet to come.

How has the response been?

I have to say the attention we’ve gotten so far with this project is phenomenal.  We built the Media Trust brand leveraging social media but I don’t think you really understand the concept of engagement until you get behind the wheel of a social campaign with someone that is a celebrity. We first looked at Joe Nemechek’s personal site and his official site NEMCO Motorsports but decided that we should start from scratch with FrontRowJoe.com.

So we started with the fundamentals putting all the pieces together, setting up tracking to measure sign-ups and clicks, integrating Twitter and Facebook, getting Joe to personally buy into using the social platforms more methodically. Joe began posting regularly and the following grew quickly from about a thousand to just under five thousand users in Facebook and took the Twitter from in the hundreds to just under three thousand.

It’s groundbreaking because none of the other NASCAR drivers, to my knowledge, are remotely leveraging social media the way we did. Our efforts actually brought in two sponsors.  One of these is England’s Stove Works, which is not necessarily a typical sponsor. We were able to drive a half a million dollars in sponsorship revenue. For having put everything together in three weeks we’ve been enormously successful.

It’s kind of allowing Joe to be real spokesperson. Instead of the drivers just wearing the logos he can actually talk to the audience and react.

Exactly!  When we began working on the campaign we spoke with other companies who had sponsored NASCAR drivers and they all said, “We love NASCAR but we just could never figure out what our return was from it.” I talked to the CEO of Liberty Medical and he’s like “I love what you guys are doing!” And he even sent me a picture of his car and was like, “We love NASCAR, we’d love to sponsor it, I just couldn’t figure out how to make sense of it.”  Because what is my logo on the car worth?

But if you can have the driver talking about Liberty Medical its like  now he’s off and running. When the driver is talking about the brand you need the mechanisms in place to be able to really connect with the fan base. Not just through some static website but through interactive mediums like Facebook and Twitter. It’s amazing how quickly you’ll see people coming to that brand and transacting.

That’s how it was with England Stove Works. We drove half a million dollars worth of transactions initiated by our efforts with FrontRowJoe! In a way Joe became a super affiliate. That success with this experiment can certainly be replicated.

Quite an experiment; it seems to have out reached its goals. What were Joe’s team and GMM initially hoping for from this?

We really had no idea. This was a complete and total shot in the dark but it was better than nothing. Joe’s agency had been working with us on other projects and knew that we were able to look at the broad online universe and take a holistic new approach to the channel. It was either that or nothing so what have we got to loose in trying something new?  Let’s leverage Joe’s passion for the fans and history  as a driver and see if we can possibly generate revenue online. Let’s experiment and find out, we have nothing to lose, we have a willing driver, we have a great agency and a group of people to work plus if this model works it can be replicated within the NASCAR industry.

I’d say this has gone metric wise way past anything we could possibly imagine.  What’s great is that the season’s not even over yet and we’re definitely going to have a phenomenal case study.

How did you track the affiliate and social media ROI?

Everything was built in a dynamic environment so we could look at the results daily and start tweaking the campaign as we went. First there was the car itself which had no sponsors, so we thought “Let’s make Joe his own sponsor and put FrontRowJoe.com all over the car.” That would drive fans to a website designed purely with marketing in mind. We started to track metrics to optimize: how many people were coming in, from where were they engaging, what were they signing up for, the newsletter, what products were they clicking on.

Using Google Analytics we measured which channel, Twitter or Facebook, was stronger giving us a very clear picture of our efforts right down to the Tweet. We could see which Tweets and posts in Facebook worked, what type of call actions we used  in the posts did not. It’s been a very effective mechanism for allowing us to adjust as we go.

For the affiliate side, to track offers, we used our own proprietary affiliate tracking technology.  It’s really very interesting, prior to working with Joe, I didn’t realize how many affiliates are NASCAR fans. It’s huge!

For the New England Stove sponsorship we set up a tracking mechanism on their website. When a user came from NASCAR  a special discount or offer would trigger so we could see what the effect of the traffic that we were sending out was.

How are the offers on Front Row Joe picked?

At first it was fairly blind. We just looked at the demographics, the geographics, the “demo-geos”,  and where the races were held. We guessed the categories that would be popular, like DirectTV and offers from Force Factor because that was primarily more the “demo-geo” of Middle America. As the clicks came in we started to find out there were more females interacting with Joe and with NASCAR drivers than there were males which was something that none of us would have expected.  So what we are now doing is looking at the data of who is signing up into the database and which offers are getting interacted with.  Currently all the optimization is being done by hand but we’ll start applying technology to it.

So now that you’ve had this success what do you hope to replicate from the lessons you’ve learned?

What we want to do is really turn Front Row Joe into an actual brand. Not only for Joe, himself, but for NASCAR. The website will be completely rebuilt to focus on providing unique content from each race for the fans with content from the pits, from the front row with the drivers and will also provide visitors a much deeper integration with social media sharing features.  There have actually been other drivers that are interested in taking part after having seen this. Everyone is pretty astounded by the success, especially considering Joe has crashed and burned in every race but yet you’re still getting this incredible traction with the sponsors and the fans.

Once someone has gained some affinity with the fans it doesn’t necessarily matter if they’ve placed in the winner’s circle because they’ve built up this relationship over the years.

Exactly!  You know Angel, I’ve got a pretty big following within online marketing industry but I’ve never been able to generate the kind of response with my personal Tweets as I’ve seen Joe generate with NASCAR fans. The speed and responsiveness from those fans is just phenomenal! People are coming up to Joe in the pits and saying, “I saw your Tweet, “it’s faster than a tweeting bullet” that was great!”

My background is in mass media. Mass media and mass marketing is changing forever to “me media” and “me marketing” and I think this is a great demonstration of that.  And relationship is the point because consumers are getting so smart they can tell if someone has an  authentic social presence or not. We have tons of people coming on the site and saying, “Joe, is this really Joe?”

Which is why it’s important to have Joe excited and fully involved for this to work. You have to have the authenticity of the voice of these guys and this is what we’ve done with just one of them. The success certainly can be replicated.

Still, you have to be a little careful not to bastardize this because there is a lot of responsibility that comes along with engaging fans.  Social media is unregulated and if marketing agencies get a hold of a medium for the wrong reasons it can totally ruin this channel  just as quickly as it ruined other channels. I think there’s a big responsibility that comes along with this as we start seeing power of harnessing social media. Done right it can create a lot of value for the fans.

Virtual goods insanity: I’ll buy that for $330,000

While there’s a ton of hype about micropayments and their role in virtual goods, many economic trends don’t really sink in until there’s a high-profile success story that people can dream about. It doesn’t matter that less than 10% make any serious money, since it’s easier to buy the dream of riches than to face the reality of the statistics.

The real money in virtual goods isn’t found in the iPhone App Store, it’s in social network games and virtual worlds. While I’ve personally seen 20,000 limited edition items sell out on Mafia Wars in one day, that’s just a tiny spec in the new digital economy of digital goods.

Want an idea of what that tiny spec was worth?  The math goes like this: 20,000 items at 42 points/credits each. 42 rewards points costs $10 (source in game marketplace), so 20,000 x 10 = $200,000 retail value in one day. While that item may have been special and not everyone pays cash or PayPal directly for the points; it’s a very suggestive revenue statement – virtual goods are serious business.

But before the bandwagon starts cheering that virtual goods gold rush, I respectfully submit that this is the same trend expanding from virtual worlds to games and has been building momentum for a decade.

Let’s consider some virtual goods economies where there are indeed several high profile success stories to dream about. Forbes discusses the topic, but I’ll point out some highlights with my thoughts. The first goes back to 2004 and is all about an ROI of nearly 400% and a cash outlay of $26,500, but keep dreaming as there huge sums of money to be made in virtual goods:

• Do you seek rare virtual animals or cater to those who do? Then Amethera Treasure Island should peak your interest. This business in virtual world Entropia costs $26,500, but returns ~$100,000 per year.
• Do you want the own the latest hotspot asteroid? Then Club Neverdie in Entropia is your type of business. Purchased for $100,000 in real money in 2005, the nightclub, shopping mall, and sport stadium based on an asteroid is estimated to be worth $1 million.
• If asteroids are too low class for you and you’d rather cater to the luxury minded types? Keep your eye on Crystal Palace Space Station in Entropia which Forbes reports was sold for $330,000 in hopes of charging the wealthy crowd fees to visit and experience the latest in space station luxury.

While the previous examples showcase the money made in virtual real estate and experiences, others are putting the sweat and blood into other ways to earn money:

• Skilled artist or just a collector? Consider dropping north of $11,000 on an Anatomically Correct Virtual Skeleton available only in virtual world Second Life. I’ve met virtual clothing designers who reported that they earned smaller, but respectable monthly incomes selling clothes in Second Life as well.
• White collar criminal or just a hacker? A hacker in Second Life stole the real equivalent of $10,000 when he hacked into Second Life’s stock exchange.

Back in 1999 I remember users of The Palace creating and selling props on eBay. These props could be used by in-world avatars to dress up and show your personal style. Many people made and exchanged virtual goods for free, but even then, people bought, sold, and even stole the virtual good props.

Virtual goods not only are hot, they’ve been hot since 1999, been breaking bank accounts since 2004, and are now becoming a significant factor in reshaping the way we think about making money online. More is happening in this space, so stay tuned.

What do Luke Skywalker and Affiliate Marketers have in Common?

As a Star Wars fan, when I am faced with a difficult task, I ask myself, “What would Luke Skywalker do?” And this morning. I asked myself that question and it got me to thinking that Luke Skywalker would make a great affiliate marketer. Here’s why:

More: continued here

How to Build an Affiliate Datafeed Site Series from an Affiliate

There are many ways to build an affiliate datafeed site and there are paid tools that make it super easy. However, if you have some coding skills and want to build a datafeed site from scratch – for free – this series is for you.

More: continued here

Last Gasp for MySpace?

These days, any discussion of social media usually refers to the “big three” – Facebook, Twitter, and YouTube. MySpace, the social network that started it all, is conspicuously absent from the list.

The decline of MySpace resembles the first-to-market stumbles of such giants as AOL and Yahoo! Just being first isn’t good enough when technology advances at rates beyond the speed of light.

But apparently, MySpace isn’t ready to throw in the towel. In what is being widely regarded as a re-launch, MySpace announced this week that a new version of the site is in the works and will be implemented in stages over the next several months.

The direction MySpace is taking seems a little like back to the future: the network will re-trench and focus on its core strength of entertainment – music, videos, and celebrities. As MySpace co-president Jason Hirschhorn said, “It goes back to discovery and self-expression. That’s where we came from and where MySpace really made its mark…”

A work in progress, MySpace has already dumped such random things as classifieds, horoscopes, job boards, and weather. Instead, the network will employ information from its users to “recommend movie trailers, recently released songs and video games.”

Ironically, MySpace does lead in at least one area: the company recently announced that MySpace Mobile is the most popular social application for the Android smartphone. MySpace was also the first social network to be included in Microsoft’s new Outlook Social Connector, which adds social networking to the Outlook email application.

These victories notwithstanding, the larger question looms: Can MySpace regain any sort of leadership position in the social media world? Right now, all the statistics say no. MySpace claims to have over 100 million users worldwide, but Facebook has over 400 million active users. In February, about 111 million people in the U.S. visited Facebook, a 95 percent increase from a year ago, while MySpace had about 67 million visitors, a 5 percent decrease, according to ComScore. eMarketer projects over $450 million of ad spending with Facebook this year – a 26 percent increase – while MySpace will likely drop 23 percent to about $360 million. Even worse, the ad deal MySpace has with Google is scheduled to expire in August 2010.

If MySpace is to survive, the more likely scenario is that it becomes a niche player in the entertainment world rather than a major social networking site. But that online market is also crowded. Maybe this re-orientation would make it of interest to online marketers involved in the music and movie business, but still, MySpace risks becoming just another entertainment site.

Jon Miller, Chief Digital Officer for News Corp., the owner of MySpace, tells the Los Angeles Times, “We need to be a platform for self-expression that is clearly differentiated from the competition.” But you have to wonder – given the success of Facebook, the growth of Twitter, and the video creativity demonstrated on YouTube – is it even possible for MySpace to get noticed?

User Awarness Key to Privacy with Location Apps

Television advertising is often seen as a measure of mainstream acceptance online technology. It is clear that location based mobile applications have arrived after Foursquare’s  20 second commercial run on the Bravo network. Foursquare, an app where users share their location with friends through a “check-in”, is one of a sudden glut of location apps and the first to advertise on a large television network. Others have made use of this technology for a number of reasons, including allowing business such as Starbucks to target consumers with coupons. All the attention has made users are all too eager to provide their whereabouts when asked, leading to privacy concerns.

Typically, users turn to these applications to:

• Conquer boredom: Apps like Foursquare allow people to communicate with others in the same location. Rain delay at a sports event? Connected users can complain about the high cost of snacks and uncomfortable seating. Stranded at an airport? It’s easy to hook up with others in the same predicament.
• Gain recognition: Many of these apps recognize frequent contributors or participants by recognizing their “achievements”. For example, Foursquare users can earn badges for different check-ins.
• Explore: Let’s not forget, location aware apps help users find local businesses, hotels, restaurants, and other places of interest. In addition to the entertainment value, these applications really help people find what they need.

Privacy

As popular and helpful as location aware apps can be, there is a huge risk when they are used. Broadcasting your whereabouts opens the door to a host of privacy related issues that many people don’t even think about when they fire up these applications:

Big Brother

Tracking, of course, is an inherent part of such technology. Use of which could be leveraged for surveillance purposes. As Carnegie Mellon University Professor Lorrie F. Cranor, who conducted several studies about privacy issues and location-sharing technologies, stated in her testimony to Congress:

“Due to the way cellular technology works, for example, the widespread use of cell phones enables round-the-clock surveillance of citizens. It is important that the storage of individual location data be minimized and protections be put in place to limit when it can be disclosed to the government.”

Cyber Stalking

Cyber stalking was made popular when social networking was making its climb. With location aware services, cyber stalking can be taken to a whole new level. Broadcasts can be used not only to follow victims, but gather information about their likes, interests, hobbies, and anything else that can be useful in their pursuits.

Exposed Irresponsibility

Just as GPS devices have been used to track an employee’s movements while on the clock, location aware services can show an employee, or spouse, to be somewhere other than where they should be. An employee who calls in sick can be exposed when a location aware broadcast shows them to be at the ballpark.

Please Rob Me

When a user broadcasts their home address for the world to see, a few of these people will catch on that when the user checks-in somewhere else, they are not at home. Criminals who understand how this works can easily pick targets where they can be assured that the resident is not at home. Making this even easier are sites like pleaserobme.com that lists Foursquare users that have checked-in somewhere other than their home address.

A matter of trust

When it comes to trust, technology works in reverse. While most businesses spend years trying to establish a brand and consumer trust, people genuinely throw all of their trust into a new technology. It isn’t until the dangers are exposed that they begin to question the faith they have put into it. This can be seen in how people have reacted to Internet technologies over the years.

At first, the Internet was considered a reliable resource. “I read it on the Internet,” was a mantra that was soon mocked as people began to realize that not everything that was published online was factual, or safe. When social media came along, people had no qualms about posting the most intimate details of their lives for others to see. That is, until employers started browsing these sites to get a better glimpse into personal lives of their prospective employees. Now, young adults are growing less trustworthy of posting everything to social media sites.

As time goes by, people will grow to become hesitant before allowing their exact location to be broadcast for everyone to see. As that trust factor diminishes, location aware apps will begin to adapt to the culture of their users. It is the hopes of many application developers that the industry self-regulates since there is growing talk of the need to create standards and regulations to govern these applications. However, until that time comes, users need to take responsibility.

Some things to consider when using location aware applications are:

• Know how the apps you use collect and use your information.
• Look for clear opt-in/opt-out procedures. If they don’t exist, don’t use the app.
• Know the app store’s certification policy. Does the store check the integrity of the app and how it handles data or do they just allow any app created in their store?
• Know where data collected by the app migrates to. It is one thing to collect your information, but what the company does with it after they have it is another story.

What do Luke Skywalker and Affiliate Marketers have in Common?

As a Star Wars fan, when I am faced with a difficult task, I ask myself, “What would Luke Skywalker do?” And this morning. I asked myself that question and it got me to thinking that Luke Skywalker would make a great affiliate marketer. Here’s why:

How to Build an Affiliate Datafeed Site Series from an Affiliate

There are many ways to build an affiliate datafeed site and there are paid tools that make it super easy. However, if you have some coding skills and want to build a datafeed site from scratch – for free – this series is for you.

Dominos Pizza Tests World’s 1st Social Media Affiliate Widget

What do you get when you combine the world’s love for pizza, social media and affiliate marketing? Saw this in the news yesterday and thought it was a brilliant use of affiliate marketing for the masses. The Dominos ‘Social Affiliate Tool’ is available through the Affiliate Window affiliate network and

More: continued here

Dominos Pizza Tests World’s 1st Social Media Affiliate Widget

What do you get when you combine the world’s love for pizza, social media and affiliate marketing? Saw this in the news yesterday and thought it was a brilliant use of affiliate marketing for the masses. The Dominos ‘Social Affiliate Tool’ is available through the Affiliate Window affiliate network and

Affiliates: 8 Reasons Why Your Hard Work Isn’t Paying Off

Gosh darn it’s frustrating isn’t it? You’ve been working soooo hard on your affiliate sites, often staying up till 2am on a work night to try and make your big break into affiliate marketing or push your affiliate business on to new heights. Here’s my top ten reasons why those hours spent

More: continued here

Angel Djambazov Special Guest on Affiliate Marketing Insider

Angel will be sharing his insights into the affiliate marketing industry… Hear what he has to say about affiliate program management, the fight against the advertising tax and the future of our industry.

More: continued here

Affiliates: 8 Reasons Why Your Hard Work Isn’t Paying Off

Gosh darn it’s frustrating isn’t it? You’ve been working soooo hard on your affiliate sites, often staying up till 2am on a work night to try and make your big break into affiliate marketing or push your affiliate business on to new heights. Here’s my top ten reasons why those hours spent

Foursquare Offers Up User Data with Check-in Analytics

A world in which customers walk through the door of a business and get a coupon especially crafted for them is much closer, thanks to Foursquare.

The application, which has become the dominant player in the world of mobile, geo-specific check-ins, has unveiled a set of analytics for businesses which will put a name and a face to loyal customers.

The dashboard, which is still in alpha, is debuting for 30 select customers before a bigger roll-out. The dashboard gives businesses a look at who is checking in, breaks them down by when they come in, gender, and number of visits. Businesses will also be able to see which platform customers are using to share their status.  If your visitors are heavy into Twitter or Facebook, you can follow them there. Other types of information tracked includes: total check-ins, unique visitors, male-to-female ratio, and top visitors.

Writes Zachary Wilson of Fast Company,

“With priceless data like this, it’s easy to imagine a blow-up in participating venues coming soon. More businesses means more users, more users means more businesses, and suddenly Foursquare is the Facebook of check-ins.”

Foursquare plans to add additional real-time information for business users, including weather updates. Potentially, this dashboard could be used by large chain businesses (like a Wal-Mart or Starbucks) from a central location with a view of all of their outlets in real time.

“We’ve been talking with quite a few [large corporations] who are excited about the potential for this,” said Tristan Walker, Business Development at Foursquare, in an interview with Mashable. “Once we can add purchase information on top of check-ins things can get pretty interesting.”

This valuable information helps Foursquare give itself even more distance ahead of competitors like Gowalla, and the addition of a newly designed iPhone app will give FourSquare an additional bump in users.

As the dashboard and analytics are tweaked, based on the alpha tests, plans are to introduce the service to the 1,000 or so registered businesses currently running specials on Foursquare.

Angel Djambazov Special Guest on Affiliate Marketing Insider

Angel will be sharing his insights into the affiliate marketing industry… Hear what he has to say about affiliate program management, the fight against the advertising tax and the future of our industry.

Do Marketers Understand Social Media?

Ever get the feeling that marketers don’t really understand social media – or at least don’t effectively utilize it?

That’s the premise of Steve Rubel’s article on Forbes.com, and he makes an important observation worthy of discussion. Rubel is a well-known member of the digerati who is Director of Insights for Edelman Digital, the digital division of the world’s largest independent PR firm.

Rubel says marketers are making a massive shift to Facebook, Twitter, and YouTube, sometimes to the exclusion of mentioning their own corporate websites. He wonders whether the corporate URL is a dying breed.

But Rubel sees the potential for this strategy to backfire. He says consumers could “perceive corporate real estate on Facebook as a lame attempt to appear cool and hip.” “Many brands are just using their Twitter and Facebook presences to spew out updates, without any thought to how consumers will benefit by essentially opting in,” says Rubel. And most important, he says, “very few businesses treat social networks as personal, conversational spaces. Hardly any feature real employees. And a scant few aim to advance shared interests.”

I think Steve Rubel has given voice to something the big traditional marketers are missing – something savvy online marketers surely understand: social media is not just another channel for ads. As I mentioned in my post about Twitter going commercial, ads on Facebook and Twitter need to be a good fit with those platforms for them to be viewed as authentic.

In fact, authenticity may be the real issue here. Rubel’s observations point to the fact that some big marketers may be viewing social media in an entirely wrong context. Their quick fix answer is to muscle their way into Facebook, Twitter, and YouTube – but once they get there, they have no clue what to do. Think of it as a bully on the basketball court who has no shooting skill. He may be able to take the ball away from the other kids, but he’ll have a heck of a time scoring a basket.

I’m reminded of a time when marketers wanted to convert their messages to another medium called direct marketing. It was a sometimes painful transition: The marketers had to speak in a different voice that put the emphasis on “you” instead of “me.” That’s not easy when you have a corporate ego. Marketers had to learn that direct marketing was at its heart a correspondence relationship. The promotional approach had to be engaging. Copy had to be loaded with benefits, not just features. There had to be a compelling offer. And marketers had to have a strong call to action and numerous response paths – they’d get nowhere without asking for the order and providing specific ways to respond.

In the same way, marketers can’t just stumble blindly into social media. They need to learn the same kind of lesson they were forced to learn when they embraced direct marketing.

Social media is a different animal. Marketers have to engage in a two-way dialogue with consumers to make it work, and they have to be willing to expose themselves to possible negative feedback and open criticism. They have to budget and staff for social media. They need people whose responsibility includes engaging, responding to, and following up with consumers.

All of this takes a commitment to using social media on its own terms. If you want to play on someone’s field, you have to use their ball. Sorry, but social media doesn’t fit into that comfortable little box called traditional marketing. When you look at the way some marketers are approaching social media, you have to wonder if they will ever understand its potential.

Free Webinar w/ Rosalind Gardner: SUPER Affiliate Strategies for Sustainable Businesses

SUPER Affiliate Strategies for Sustainable Businesses. Developing the right mind-set for long-term successSite-building strategies Less work, more reward – how to choose the best offers. How to build mountains of free traffic…

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Top 10 Must See Interactive Sessions at SXSW 2010

Believe it or not there is more to SXSW than the parties. Although from chatter on Twitter it’s often hard to tell. With SXSW kicking off this week I’m sure most of you have planned which parties to attend but maybe haven’t looked at the session schedule quite yet. So before you get lost in the lines to the film screenings, bars, celebrity signings, and hoping food joints like the Magnolia Café or the Iron Works, here are my picks for the Top 10 must see interactive sessions at SXSW 2010:

Smackdown: Consumers Privacy vs. Advertiser Revenue
Time: Friday March 12, 2PM
Hashtag: #smackdownprivacyrevenuet

The panel premise that the FTC could ban all forms of tracking consumer web activity is a nice but alarmist hook. Still, it is true that the FTC is being more aggressive in policing online activity and the assembled panelists should provide advertisers some clear insights into compliance issues.

Panelists include:

• Alan Chapell, President, Chapell & Associates
• Alison Pepper, Director of Public Policy, Interactive Advertising Bureau (IAB)
• Jordan Mitchell, Vice President of Data Intelligence, Rubicon Project
• Ingrid Sanders, Director AdAdvisor,  TARGUSinfo

Crime Scene: Digital Identity Theft
Time: Friday March 12, 3:30PM
Hashtag: #digitalidtheft

The theft of digital identity is often easier and sometimes more damaging than identity theft offline. As social media mixes more with ecommerce this will become a larger problem. Learning methods to make that ID more secure is valuable information. Hopefully Bill has the sense to not make it too pitchy.

Panelists include:

• Bill Morrow, Chairman & CEO, CSIdentity
• Aaron Strout, CMO,  Powered.com

Eight Ways to Deal with Bastards
Time: Friday March 12, 5PM
Hashtag: #8waysdealbastards

As the saying goes, no one ever has a good day in customer service. This is especially true when, let’s face it, some of your customers  are inevitably  bastards. This session offers a few copeing mechanisms.

Panelists include:

• Bryan Mason, Founder, Small Batch Inc / Typekit
• Jason Shellen. CEO & Founder,  Thing Labs
• Lori McLeese, Chief People Officer,  Room to Read
• Karen Walrond, Founder, Chookooloonks Media

Big Brother in Your Brain: Neuroscience & Marketing
Time: Saturday March 13, 11AM
Hashtag: #bigbrotherinyourbrain

I’m a science geek, so when you mention the word “neuroscience” in a panel about marketing I’m ready to jack in. The concept of using MRIs to analyze brain activity when exposed to different marketing stimuli is very interesting. So is the brewing battle of math (analytics) vs. creativity; somehow I don’t see the two concepts as being mutually exclusive. All the makings of a great session!

Panelists include:

• Roger Dooley, VP Digital Marketing,  Hobsons
• Gary Koepke, Co-Founder, Modernista!
• Eric Kogelschatz, Co-Founder, shark&minnow
• Dr. A.K. Pradeep, President/ CEO, NeuroFocus
• Dr. Danielle Stolzenberg, PHD, University of Virginia

Sleeping Giants: Digital Awakens TV and Media
Time: Saturday March 13, 5PM
Hashtag: #designemergingmedia

Giants always follow the money. Or the beanstalk. Digital has now proved that  there is money to be made online, that it is sustainable, and can draw large clients; therefore, it should be no surprise that the giants of traditional media are paying attention. Sponsored by Razorfish, who should know a thing or two about the whims of giants, the session will take on fundamental impact digital will have for advertisers and marketers.

Panelists include:

• Domenic Venuto, Managing Director of Client Solutions, Razorfish
• Andrew Pimentel, Director of Account Planning, Razorfish

Selling Subculture Without Selling Out
Time: Sunday March 14, 12:30PM
Hashtag: #sellingsubculture

Having worked with Jones Soda online marketing efforts for nearly four years I know full well how difficult it is to balance the need to post large sales numbers with the imperative to protect the brand/consumer relationship. This session provides some guidelines on how to hit those numbers without selling out.

Panelists include:

• Richard Nash, Founder, Cursor
• Raymond Leon Roker, Founder, URB Magazine
• Molly Crabapple, Founder, Dr. Sketchy’s Anti-Art School
• Jeff Newelt, Comics Editor, SMITH Magazine
• Gala Darling, Founder, iCiNG

Online Advertising: Losing the Race to the Bottom
Time: Sunday March 14, 3:30PM
Hashtag: #racetothebottom

We spend a lot of time in this industry thinking about “how” and “where” to advertise. The concepts of building real relationships with publishers, making sure the advertising is doesn’t take away from the content, and respectfully dealing with the audience are all topics that are usually just paid lip service. Glad to see this session challenging us to change the way we think.

Panelists include:

• Jim Coudal, Principal, Coudal Partners
• John Gruber, Founder, Daring Fireball

Open Science: Create, Collaborate, Communicate
Time: Monday March 15, 9:30AM
Hashtag: #openscience

Ok, I will admit this made the Top 10 because, well, as I stated earlier I’m a science geek. Ever since I interviewed Scott Maxwell for Gnomedex two years ago I’ve been fascinated about social media’s ability to pry open the doors of previously sequestered industries. It will be nice to see what progress NASA and others have made since then.

Panelists include:

• Ariel Waldman, Founder, Spacehack.org
• Dr. Kirsten Sanford, Ph.D, This Week in Science
• Jessy Cowan-Sharp, Collaborative Web Technology Developer, NASA Ames Research Center
• Natalie Villalobos, Community Manager, Google
• Tantek Çelik, Computer Scientist,  Microformats.org

Web Series 2.0: Big Campaigns on Digital Dollars
Time: Monday March 15, 11AM
Hashtag: #bigcampaigndigitaldollars

Big campaigns don’t always require big dollars. In the social space it is about smart engagement. Smart advertisers are turning to producers and content creators to help maximize their budgets. This is the perfect panel to find out how.

Panelists include:

• Melissa Fallon, VP of Television and Emerging Media, Davie Brown Entertainment
• Chris Hanada, Co-Founder, Retrofit Films
• Milo Ventimiglia, Co-Founder, DiVide Pictures
• Wilson Cleveland, SVP & Director, CJP Digital Media
• Andrew Hampp, Reporter, Advertising Age

Will Kiva Kill Your Nonprofit? Donations 2.0
Time: Tuesday March 16, 11AM
Hashtag: #kivakillnonprofit

New fundraising models are changing the ways donors can interact with nonprofits. Kiva, of course, is one  a leading example of success from  such a model. While I don’t feel that the Kiva model will hurt the majority of nonprofits, I do feel that they will need to adapt to new methods of outreach to successfully maintain their donor base.

Panelists include:

• Skylar Woodward, Designer/Lender, Kiva
• Ruth-Anne Renaud, VP of Women’s Philanthropy & Interactive Marketing, Opportunity International
• Milo Sybrant, Online Fundraising Manager, Amnesty International USA
• Michael Cervino, Vice President, Beaconfire Consulting
• Katie Bisbee, Executive Director, DonorsChoose.org

Hope you get back to your hotel in one piece and you enjoy the sessions at SXSW 2010.