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I found an interesting quote in Adage's article "7 Things You Need To Know About Social TV Right Now".He said:
"Social TV could not be heating up more, because engagement is really starting to map to currency. The networks that "get it," are using the social graph to measure the effectiveness of their marketing spend, for real-time audience research to understand the demographics of their viewers, to be smarter about how production dollars are spent and what content will resonate. And especially to demonstrate to advertisers the value of the network off the network."
Interesting to read the understanding mr. Ghuneim has on the power of Social Media. What he really is talking about is transforming in an Open Business. In this article I elaborated why Social TV is the foundation and set of enablers for an Open Business.
Social Media can be used for the purpose of Engagement, Insights, Co-innovation and Change. By opening up the organization and its processes for these purposes, TV networks become more competitive, relevant through refined differentiation and more sustainable and efficient. Read the "Why Social TV = Open Business" article for the explenations on the four purposes.
Matches with Mr. Ghuneim
Below the quote by mr. Ghuneim is splitted up and matched with the open business aspects.
The networks that "get it," are using the social graph to measure the effectiveness of their marketing spend -> Engagement and Change.
for real-time audience research to understand the demographics of their viewers -> Insights and possibly Co-innovation to fully make use of external stakeholders.
to be smarter about how production dollars are spent and what content will resonate -> Change, Insights and Co-Innovation to fully make use of external stakeholders.
And especially to demonstrate to advertisers the value of the network off the network -> Insights and Engagement.
Data driven marketing organization
According to McKinsey's article "We're all marketers now", Marketing is the customer engagement engine for the other departments. It's an important center within the new data driven organization. Marketing is going to become a much more science-driven activity and Social Media data is key in this. Generating rich customer insights, always central to effective marketing efforts, is more challenging and important in today’s environment. Companies must listen constantly to consumers across all touch points, analyze and deduce patterns from their behavior, and respond quickly to signs of changing needs.
But here is the challenge and focus of the Change aspect in open business, the organization needs to adapt to this new wealth of real-time data to benefit from it, to be in the window of opportunity. In this article I elaborated that the state of social media intelligence is mainly tactical and limited in scope. In order to use intelligence for a broader scope (i.e. supply and value chains), the organizational pillars (people, techs and processes) need to be enhanced.
The father of business consultancy Drucker once said "Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business."
Social media data and technologies tackle both. They inform, enable and support marketing and co-innovation, by truely putting the customer at the center of the business. On the other hand, it creates a more efficient and effective organizational infrastructure, lowering all sorts of costs in the different departments.
TV networks become the platform where viewers create their own experience, through collaboration. Open business transformation is defined by the conditions of the organization, its business model, core competences and target audiences and data is key.
To use some of Ghuneim's words: The networks that "get it" transform in Open Businesses.