According to Forrester Research, social media marketing is projected to grow at an annual rate of 34% in 2010, faster than any other form of online marketing. A recent eMarketer study found that the Fortune 500 companies that are not using social media dropped dramatically – from 43% to 9% last year.

However, many marketers, especially at smaller companies or larger, more conservative establishments, are still wrestling with how exactly to use social media to help them meet their marketing goals. To make things even more confusing, although 75% of Fortune 1000 companies have implemented an online social media program for marketing or CRM purposes, at least 50% of those campaigns will fail to produce the results expected, according to Adam Sarner, an analyst with market research firm Gartner.

As marketers start seeing weak or non-existent results, they will either give up on this tactic entirely because it “doesn’t work” or they will start looking for partners to help them navigate through this channel if they haven’t been completely turned off.

If marketers decide to engage a partner, but don’t really understand what social media marketing can and cannot do for them, they can easily fall prey to agencies who claim to be fully Web 2.0 literate, but actually have no idea what the latest trends are, how develop a social media strategy, or how to measure and track results from it. Given that social media and the Web 2.0 landscape is constantly changing, it is essential full-service advertising agencies are either staffed with experts who understand how to integrate social media strategies into clients’ marketing communications plans or who have partners that do. Smart marketing communications vendors will also have developed mechanisms for measuring results from these types of campaigns.

Social media marketing, done correctly, can provide important metrics, such as numbers of new users, unique visits, page views and time spent on the site as well as providing marketing research opportunities such as opinion polling. It can also be used for direct marketing. For example, LinkedIn recently launched “Faceted Search” a new feature that makes it easier for marketers to reach out and engage specific market segments. Twitter’s microblogging service is developing a feature that will link individuals to various brand websites allowing them to contribute to the discussion. Social media features that work to support marketing efforts are constantly evolving.

Marketers searching for social media marketing partners need to choose wisely. I’m sorry to report that there are ad agency sharks who will take advantage of advertising and marketing managers who believe they need to invest in social media marketing because “everyone else is doing it”, but who really don’t understand its role as part of an integrated marketing communications strategy. Marketers who get taken in by these shark types are likely to get less than optimal results.

In addition, marketers sometimes make the mistake of expecting the agency partner to provide all of the content for their social media outlets, or they assign a low-level person at the company to do this. The best content will come from brand stakeholders at the company who know and understand the brand attributes and the principals of creating a strong level of engagement between potential customers and the brand.

The most effective way to employ a marketing communications partner is to have them create the social media marketing strategy based on marketing goals, business challenges and target audiences. Advertising agency partners are best utilized as trusted advisers who work closely with a company’s internal social media manager to provide strategic direction, analyse results and help optimize the programs.

It should also be noted that social media marketing may not work for every brand and target audience. Social media strategies that work well to engage and motivate one group, may be totally ineffective for another. The best marketing approach is always going to be the one that will be most likely to generate the results desired by the marketer. Tactics should be developed based on the marketer’s goals and take into consideration budget, target audience, geotarget, timing etc.

To remain relevant, marketing and advertising agencies need to make an effort to learn and understand when and how to use new media tools effectively and when not to pitch social media as part of an integrated marketing communications plan. They also need to be ready and willing to educate clients and prospective clients on best practices for the medium.

Merrick Towle Communications’ Web 2.0 Marketing team and I have been giving quite a few presentations on Social Media Marketing lately. We have been getting excellent feedback. The need and the interest is definitely out there. If you are a marketer who is interested in learning more about social media and other Web 2.0 marketing strategies, contact me at 301-974-6030 or go to: http://www.merricktowle.com/contact.asp for more information.

By Laureen Peck, Director of New Business Development lpeck@merricktowle.com

There was the time when I was eight or nine, vacationing at our extended family’s lakefront cottage in New Hampshire, when I unexpectedly stepped into a hole while playing in water up to my neck, lost my balance, choked on a mouthful of water, and flailing about, became unable to keep myself afloat. My father, in his customary way, was sitting in a chair on the beach reading a book, seemingly oblivious to the buzz of family activity all around him. But he sensed the danger immediately and dove headlong into the lake, fully clothed, and pulled me to safety. Despite the obvious personal benefit I received from this act, I rank it a distant second.

Laird Towle was in his late forties the day he had that talk with me, only a year or two older than I am now. He had enjoyed a distinguished 25+ year career as a physicist, working first in private industry, then for the government. In his most recent assignments, however, he was being asked to work on projects that conflicted with his moral compass. The resulting duress became such that, even with only a couple more years to work before earning a pension, he walked away.

Genealogy had been Laird’s hobby for many years. While studying our family’s lineage back to Scotland and England, he identified a need within the field and took the opportunity to start a specialized book publishing company. While he and my mother had been running this business part-time out of our home for a few years, now they were “betting the farm” on turning it into a successful enterprise.

I moved out of the house within the year. The business grew, slowly. My parents were able to make ends meet. As sales grew, my older sister joined the family business and, after a few years, I started working there as well, first part-time, then full. In the end, I gave five years of service before turning onto a new path that has led me to where I am today. My father sold the business a few years ago, but not before he had built it into one of the nation’s leading publishers within its field; having successfully transformed the business from its original direct mail-based sales model of the 1970’s and 80’s into a largely web-based model of the 2000’s.

Courage. Conviction. Perseverance. Sacrifice.

These are all lessons that have unfolded in various ways over the decades of my life. I can tie each to that fateful father-son talk. Courage to turn away from safety, security, and comfort; to pursue something that is right, not just convenient. Conviction to believe in oneself and one’s principles, not based on brash exuberance or conceit, but on prudent investigation and introspection. Perseverance in the face of adversity; remaining balanced in the face of turmoil and uncertainty; maintaining optimism no matter how great the challenges, and making the decisions and taking the actions necessary to bring about the sought outcome. Sacrifice of short-term reward and benefit in favor of a greater good, a whole life better lived. These are some of the lessons I’ve learned from my father; lessons that make each day something far more than just another day at the office; lessons that inform my world view, impact what I value, and significantly influence the reward I find in life.

By Glenn Towle, Partner & COO gtowle@merricktowle.com

The V at CityVista: Best Print Ad Campaign, Lease-Up
The V at CityVista: Best Brochure, Lease-Up
909 at Capitol Yards: Best Public Website, Lease-Up
The Monterey: Best Internet Ads
Allegro: Best Outreach Marketing
Jericho: Best Direct Mail, Lease-Up
Park Place: Best Single Property Campaign, Lease-Up (Honorable Mention, 2nd place)
The Monterey: Best Outreach Marketing (Honorable Mention)
The Monterey: Best Brochure, Lease-Up (Honorable Mention)
Allegro: Brochure, Lease-Up (Honorable Mention)
Merrick Towle Communications: Best Associate Member Outreach Marketing (Honorable Mention)

We at MTC have always been about results and not awards, but it sure feels nice to win a few along the way.

As an agency that specialized in real estate, we were highly effective at developing media solutions that met our clients’ needs. As with most niche categories, the industry dictated the media – in our case, primarily traditional real estate search publications and Internet Listing Sites (ILSs). The media plan just kind of wrote itself. However, with the current state of the economy and implosion of the real estate industry, it’s no longer “business as usual.” A complex purchase decision has become even more difficult, and the process has grown, longer and less linear. These changes in our target consumer’s mindset and behavior, as well as the agency’s pursuit of new business categories like education, energy and health care, have required us to re-evaluate not just our marketing process as an agency, but also the way we approach media planning and buying.

Once focused primarily on tactics and execution, we have shifted our perspective to concentrate on strategy. The evolution in how we approach our clients’ business led us to rethink how we view ourselves as a department, and “media” just didn’t seem to fully capture the depth and breadth of the role we play, not just in the agency but in the overall advertising process. We build relationships between consumers and brands. It’s about connecting, interacting and influencing. Simply, it’s about engagement, and the new Merrick Towle Engagement Department is fluent in all forms – from traditional awareness vehicles that ignite the conversation to digital and social platforms. We create an experience for the consumer and allow them to engage in dialogue with the brand, leading to the creation of brand advocates and ultimately, increased sales for our clients. We develop plans that are designed not only to deliver on the client’s goals, but also to provide value to the consumer when and where it will have the most impact. We don’t buy ads – we build relationships.

By Donna Hodge, Director of Engagement dhodge@merricktowle.com

As was stated in the August 3^rd post:

“I couldn’t ever imagine selecting the ‘generoCITY‘ program over two months free rent unless the dollar values made the spending program a winner by a large margin. If it is designed as an even value proposition, which it likely is, I don’t understand the usefulness. It seems purely like a marketing gimic to stand out – not that there is anything wrong with that.”

So is it a value proposition or a gimmick to stand out?

The strategy for this type of program comes from CMO Jamie Gorski. She believes that there are two ways to provide discounts to the consumer.

You can go straight for the “money off” approach of TWO MONTHS RENT FREE! This certainly grabs the attention of the target. But it discounts the value of the brand. (And certainly doesn’t stand out in an economy where everyone is offering money off…)

or

You can showcase a brand’s “added value features” and then discount them for the user.

• For V Apartments the generoCITY campaign highlighted all the great retail in the area and then gave a coupon to them. This gives added value to the consumer, highlights amenities of the project and doesn’t discount the value of the brand.
• MTC did the same thing for Ms. Gorski in Chicago a few years ago by highlighting all the hotel-services at a property and giving them to residents at a discount.

At the end of the day most people choose discounted rent. But at least they’ve been drawn in by the products added-value and not the premise of a de-valued product.

Click to see the full CityVista case study

Allegro Apartments Situation

Allegro Apartments needed to build awareness and traffic to propel it toward its grand opening. Merrick Towle Communications created a dynamic apartment website as the primary marketing vehicle since there wasn’t any product to see until opening.

The Target

Primary – 25-35 year old urban yuppies. Lawyers, lobbyists, politicos, movers and shakers.

Consumer Insight

“There’s more than one way to get ahead in this city. Working hard is important, but working the scene is what it’s all about. It’s way more fun to meet people at a club at 2am than to go to those boring networking events. And those work hard, play harder types are the ones that really make things happen. I want to live in a place that’s central to the scene. I don’t want to live in one of those stuffy downtown apartments. Give me a place that has a cool vibe to it. One that will not only be convenient to everything but that will up my image.”

Marketing Challenge

People feel that they shouldn’t be spending money on luxuries like expensive apartments. But they really, really want to. So we have to make the building so awesome that they want to spend money.

The Marketing Strategy

Utilize club marketing tactics to build buzz and community energy around Allegro Apartments. Make the target audience…

Think: Wow, that apartment looks like a club.
Feel: It’d make me look so cool to live in a community like Allegro.
Do: I am going to go and see this place for myself.

With the goal of getting our apartment’s promotional materials into the bars and clubs our audience frequents, we developed a drink mix promotion. Merrick Towle decided to partner with On Tap Magazine because of their extensive relationships with the very establishments we wanted to target. Click here for blog post outlining this partnership. We also worked with Sawmill Marketing Public Relations to get the word out to our target. Click here for blog post outlining Merrick Towle’s PR and Social media strategy.

See you at Desire

The ultimate apartment grand opening gala celebration sponsored by On Tap Magazine and Grey Goose Vodka (link to other blog post about the partnership).

• Outreach to the hottest restaurants and bars in DC
• Judging panel of local celebrities and socialites
• Reveal winning drink at Desire
• Winning “Allegrotini” served and promoted at local restaurants and bars
• The DJ: A longtime and prominent staple of the DC DJ community spun at Eighteenth Street Lounge and the Kennedy Center who performed with Thievery Corporation

The hype machine

• Over 3,000 coasters distributed to participating restaurants
• Social media engagement by On Tap and Allegro Apartments
• Limited print media in On Tap and rental publications
• Banner ads, listings and a custom-designed landing page

1,000 RSVPs can’t be wrong

• Traffic to apartment website increased by 75%
• DC power players, politicians and celebs attended the event
• PR coverage in over 200 media outlets

The power of numbers

• 20% of 297 units occupied one month after grand opening
• Coaster distribution results in over 350 website visitors (over 10% conversion)
• Community bloggers and industry greats such as NBC drive 35% of web traffic
• PR outreach leads to increased search rankings on Google – over 1,500 listings
• Website peaks at 1400 unique visitors per week then stabilizes at a constant 1,000

Art Director: John Sexton
Copywriter: Michael Getzlaff
Digital Art Director: Danny Bae
Account Team: Erin Riggins and Michael Hammerstrom
Media Director: Donna Hodge
Account Planner: Amy Weedon
Public Relations Partner: Sawmill Public Relations
Developer: Metro Properties Inc.
Management Company: Kettler

The Goal: Get business owners and c-suite decision makers in New York, Boston and Chicago to switch energy providers.

The Challenge: Companies are just plain skittish about switching energy providers. Pepco Energy Services was coming into markets with established players and a fraction of the competition’s budget.

The Opportunity: Business leaders were growing increasingly dissatisfied with their fluctuating energy costs.

The Campaign: We challenged the competition by placing our messages where they were advertising in direct response media. We strategically placed 60-second radio spots plus print and banner ads with fiery orange graphs showing the jagged line of rising energy costs, juxtaposed against the horizontal line representing Pepco Energy Services’ steady prices during the same time. The universal campaign was suitable for multiple regions, the flexibility of the campaign accounted for a variety of strong messages to stay fresh and the strength of message ensured targets took action.

A summary of the media used:

Radio: 60-second spots and news/traffic/weather sponsorships on News/Talk and Adult Contemporary formatted stations; National Public Radio sponsorships.

Internet Media: Major market newspaper sites, Geo-targeted business sites and Executive magazine sites.

Out-of-home: Billboards along high traffic commuter routes in major metropolitan areas.

The Response: Commercial users responded and made a change – to Pepco Energy Services which led to an 83% revenue increase over the same time period the previous year.

by Donna Hodge, Media Director, dhodge@merricktowle.com

We knew the ideal Allegro Apartment residents were young urban hipsters who worked hard and played equally hard, so we crafted a creative strategy that would appeal to their passion for the nightlife and developed a plan that would utilize the area’s vibrant club scene to reach them. With the goal of getting our apartment’s promotional materials into the bars and clubs our audience frequents, we developed a drink mix promotion. We invited several major media vendors to submit a proposal to help promote the contest and the upcoming grand opening event. Ultimately Merrick Towle decided to partner with On Tap Magazine, not because of their circulation figures, but because of their extensive relationships with the very establishments we wanted to target. From distributing Allegro Apartment’s promotional items, securing high-profile drink sponsor Grey Goose, to arranging for one of the District’s hottest DJs to provide entertainment, On Tap allowed us to create one of the most talked about, top-rated events the apartment industry has ever witnessed. And once the party was over, the work didn’t stop. On Tap drove post-event traffic to the Allegro website via their own digital and social media tools through their website, email blasts to their distribution lists and Facebook fan page. All of the publicity generated from the Allegro grand opening and the popularity of the winning Velvet Allegro cocktail has resulted in continued promotion of the drink in area bars a month later. Merrick Towle just received word: some of the establishments plan to feature the drink the rest of the summer!

To see videos and photos from this event visit the press room page of the Allegro Apartments website.

Our blog post about how this successful campaign was executed and the results it garnered can be found by clicking here.

by Donna Hodge, Media Director, dhodge@merricktowle.com

With the recent transformation in technology, there has been a shift in the consumer mindset and how they interact with both traditional and emerging media – and in turn, how they interact with advertisers. The Internet, and in particular, social media, has given rise to consumer empowerment. We’re connecting with each other in ways we never had before, sharing experiences and offering opinions and advice in real time. While we in the advertising industry have always given lip service to the old adage “consumer is king,” it has never been truer.

This recent trend toward consumer engagement and the growing importance of social media in the marketing equation got us thinking: with this shift in the fundamental way consumers engage with media, we must in turn shift the way we approach media planning at Merrick Towle Communications. It’s no longer about reaching the masses with a message once and hoping they actually (1) see or hear your message and (2) take some sort of action. The very nature and intensity of the engagement needs to determine when and where we enter the conversation. We must become smarter and more creative in how we choose to engage that consumer in conversation, as well as in when we initiate that interaction through media planning.

by Donna Hodge, Media Director, dhodge@merricktowle.com