This scares me: “Calvin Lee, a graphic designer, is a massive tweeter. ‘I really can’t stop,’ he joked. In Twitterland, Lee has become a rock star. ‘I’ve gone through life wondering what my ‘thing’ would be. I believe I’ve found it.’ Lee describes himself as a ‘social media ho. I tweet at least 200 times a day.’ He has been quite successful, amassing nearly 80,000 followers. ‘I was not very popular in high school,’ Lee says, ‘but now I’m like the big jock on campus.’ Lee’s growing influence has won him celebrity-status perks. In addition to a free Virgin Airlines flight to Toronto, brands have reached out to him and provided
- a brand new Audi A8 to test drive for a week
- hundreds of dollars in gift cards
- a pass to a House of Blues VIP event
- a free Samsung Focus smartphone
- flight, hotel and meals to attend an exclusive conference
- eight passes to the VH1 Do Something Awards
“Anybody has a chance to experience life on the other side of the velvet rope. Anyone who is willing to work for it…can have true celebrity status and all the associated perks.”
The writer of all this is Mark W. Schaefer, whom I met while we were both on a recent panel. This quotes are from his new book, “Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence Marketing.”
[I edited the above remarks for brevity.]
I suppose if I were looking for the poster child of what I consider the dark side of social media, it would be this. Not Calvin Lee so much: he seems like a nice, ordinary dude who’s enjoying his cool new freebies. No, it would be Mr. Schaefer, who celebrates Mr. Lee’s “accomplishments” as though they were right up there with achieving something real and lasting and contributory to society, not to mention providing Mr. Lee with an actual living.
I don’t gainsay Mr. Lee having his fun. I understand the world of swag. I don’t think I ever did anything egregious, but heaven knows I’ve had some freebies in my day. However, two points: (a) I never exulted over them, nor considered them my ‘thing,’ and (b) I always understood they were irrelevant from the point of view of making a living. Test-driving an Audi and going to the House of Blues are fun, I suppose, but at the end of the day, I still need a paycheck to pay the bills. So what exactly does “being a tremendous success at social media and having a high Klout score” really mean to a person’s life? Maybe Mr. Lee has found his ‘thing,’ and that’s fine, if by ‘thing’ he means a hobby, like following the San Jose Sharks or collecting Pez containers. Everybody should have a nice, interesting hobby.
But to treat this kind of addiction to social media—especially if it’s fueled by the hope of getting free stuff—as an admirable goal for a young person, is troubling. This is not something I think young people should view as an attractive potential way of making a living or spending one’s time; nor do I think it’s healthy for the larger society. In fact, it can be downright detrimental to making a living. If you work in an office, can you really tweet 200 times a day (not to mention all the other online activities you’re probably engaged in) without your co-workers feeling some resentment that they’re carrying your work load? Wouldn’t your boss object? How would you concentrate on your work, anyway? I don’t know Mr. Lee, but he seems like one of the people I see on the sidewalks of Oakland or San Francisco coming towards me with their heads down, eyes fixed on their smartphones: I’m the one who has to get out of the way to avoid a bodily collision.
I don’t mean to entirely disparage Mr. Schaefer’s thesis that an “epidemic of influence” by a new group of “Citizen Influencers” has the capability of reshaping our society in certain admirable ways. I love it that the street demonstrations in Tahrir Square, tweeted around the world, helped topple an ossified government in Egypt, or that instant “citizen reporting” from disaster zones informs people what’s happening before the mainstream media even knows it. When Occupy Oakland was at its peak, I was in the middle of it, tweeting like mad, and people were thanking me for giving them the news before they got it anyplace else. I love staying in touch with my family and friends online, anytime, anywhere. I’m glad social media is in my life.
But we’re talking about apples and oranges. There is a positive, plus side to Twitter and a side that should concern us all, when it turns into the mindless addiction to constant tweeting with the expectation of “celebrity perks” that, in the end, are worthless from a moral, family and human perspective. Is crashing the “velvet rope” to some kind of faux-“celebrity status” really what Millennials aspire to? If Mr. Lee reads this, I hope you find a “thing” that’s more productive and lastingly satisfying than tweeting 200 times a day. It may mean less swag, but it could lead to a fuller life and a better job, and you might even discover that your neighbors are real people worth knowing.
I asked it six years ago, five years ago, four, three and two years ago, and I’m asking it now. And it’s not just me: That bastion of U.S. capitalism itself, the Wall Street Journal, is asking the same question. Under a five-column headline in last Monday’s Marketplace section, they wondered “What is all that data worth?” (The online version of the article has a slightly different headline.)
The “data” they’re referring to comes from “companies [that] traffic in information and use big-data analytic tools to find ways to generate revenue.” If that sounds familiar, it’s because it’s been the underlying theme of every conversation about the revenue-generating possibilities of using social media.
We know beyond a doubt that the metrics of social media use are huge. Everybody is Facebooking, tweeting, Instagramming, pinning and so on. They’re liking and following and retweeting each other like crazy. For this reason, wine companies feel, with “the fierce urgency of now,” that they have to get onboard, before the train leaves the station. And indeed, as I’ve argued for many years, wineries should board that train. As I’ve suggested to anyone who’s ever asked (and quite a few who haven’t), winery personnel should engage in social media to the extent they feel capable of doing it.
But what I’ve wondered since Day One is what all these metrics, which are easy enough to obtain, mean. Reach, followers, friends, engagement, acquisitions, referrals, hits, unique visitors, bounce rates, click-through rates, conversions and all other ways to track activity—companies, including wineries, are pursuing them with a vengeance. Yet “The problem is that no one really knows what all that information is worth,” says the Wall Street Journal article.
Such data is called an “intangible asset” because, unlike real estate, durable equipment and money in the bank, it has no objective value. This is not to suggest that data is valueless. As the article explains, data has value because “it allows [companies] to tailor their products and marketing to consumer preferences.” For wineries, though, what does this mean? It’s not at all clear that counting your Twitter followers, or measuring your online engagement rate, suggests anything at all in terms of strategy. “The squishy world of intangibles,” writes the Wall Street Journal, means that “Data is worthless if you don’t know how to use it to make money.”
That statement is patently true on its face. But there’s a more fundamental question: What if social media data, in and of itself, is incapable of being used to make money? Even if real-time data gives you some true insight into your (potential) customer’s online behavior, “Information on individual users loses value over time as they move or their tastes change,” making data “a perishable commodity.” Data looks real and solid enough: after all, what can seem more representative of reality than numbers on a page or screen?
But as we all know, statistics can be slippery or, to use the Journal’s word, “squishy.” I used to get in trouble with some of social media’s adherents by asking them how they “knew” that engaging in social media made money. The answer always was a form of “We can’t prove it, but we somehow believe it.” Occasionally, someone would cite a winery that was doing social media bigtime and whose sales were rising. But even if the connection between doing social media and selling cases could be established directly (which it couldn’t), I always wondered if the winery’s success had legs—if it could be replicated over time, because, after all, any winery can have a good quarter, but wind up on the butcher’s block.
Lest any of this be interpreted to suggest that I don’t think social media has value, or that every winery shouldn’t be exploring it, let me go on the record: If you’re a wine company, you should be doing social media. Period. End of story. What I am saying—or, really, asking—is the same question I’ve posed since 2008: What is all that data worth? If you don’t like the question don’t blame me, blame the Wall Street Journal’s headline writers for coming up with it in the business paper of record.
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“Wines delivered to your door” has been the business theme of direct-to-consumer entrepreneurs since as long as I can remember.
I used to be a member of one of these subscription services, back in the early 1980s. I can’t remember the name (I’m sure someone out there will remind me), but they sold German wines that “arrived at your door” on a monthly basis. I didn’t continue, because I eventually reached the point where I preferred shopping for wine myself, in a store, especially if I could taste it or see a recommendation—and that is the point of this post.
There’s now another “delivered to your door” service, Club W, and while I wish them well, I don’t see how they overcome the challenges that led to failure of almost every one of these ventures.
They all promise the ease and convenience of having pre-selected wines that arrive at your door once a month. They all say the wines are “curated” by experts or, in this case, actually produced for Club W “by noteworthy winemakers who develop their ‘juice’ for Club W exclusively.” And they all make claims that they offer lower prices [even with shipping?] than traditional outlets.
That may well be true in Club W’s case. The claim that their “exclusive” winemakers “have great talent but may lack access to capital enough to get their wines made and into the market” certainly rings true. That is a common challenge for winemakers, especially younger ones, who may have access to interesting grapes, and are making interesting wines, but have no realistic way of getting them to far-flung customers.
What are those wines? I went to Club W’s website and tried it out. They ask you to answer a couple of (kind of silly) questions, and then, after you give them an email, Facebook or Twitter account, they “recommend” appropriate wines. For me, they suggested three brands I’ve never heard of: a Wonderful Wine Co. red blend from Paso Robles, a Black Market Cabernet-Petit Verdot blend from Livermore, and Casa de Lila Airén, a white wine from Spain. Beyond these three wines, there are others on the website I could buy. They all have attractive labels, and I wish I could go to a tasting and try them out, because at $13 a bottle, that’s pretty affordable. There’s also a “Curator’s Choice” menu for wines costing $14 and up.
Now, any and all of these might be wonderful wines. Or they might not. The problem is, even thought they’re just $13 a bottle, I don’t want to buy a pig in a poke: A wine I’m not familiar with. Under their “Tastemakers” dropdown menu they have the names and pictures of folks I guess are some of their winemakers: a fine-looking bunch of men and women, young and appealing. There’s also a cool recipes link. That’s all good.
So I have mixed feelings. A lot of thought obviously has gone into Club W. The website is really nice. But I just don’t see how they get around the fact that you can’t taste the wines before you buy, or even see what the critics have said, since they’re club exclusives and have never been professionally reviewed. (I do make an exception for winery wine clubs: people join them because they know and trust those wines, so even if they haven’t had the latest vintage, they possess plenty of prior evidence that they’re much more likely to enjoy the wine than not.)
Finally, although this isn’t Club W’s fault, I hate the way the Wall Street Journal portrayed Club W; their headline reads “Club W Raises $9.5 Million To Appeal to Wine Lovers, Not Snobs.” Can we please get over this “snobs vs. everybody else” nonsense? I mean, does Lettie Teague write for the “Snobs” in the WSJ? I have news for you: All wine writers write for the people who read them; all wineries produce wine for the people who buy them. There are indeed snobs in the world of wine, as there are in other arenas, but they are the exception to the rule, and to toss the word “snob” around so much is really misleading to young people, who may end up thinking that wine isn’t for them because they’re not snobs and don’t like being around snobs.
Instead, why can’t we talk about beginners, amateur wine lovers and experts? The experts aren’t “snobs,” they just have a lot of experience, nor are the beginners “idiots” because they have little experience. Some “beginners” will be “experts” someday; will that make them “snobs”? So really, anyone (writer, blogger, winery, ad agency) who throws around the snob word so insouciantly is just indulging in lazy language that moreover insults a significant number of wine lovers.
And then there are new wine companies targeting everybody: I got this blast email from one of them just this morming: I omit the winery’s name: “We here at ___ have created a wine that will capture thegrowing new generation of social media savvy, adventurous, health consciouswine drinkers as well as the seasoned, more experienced ones.” Talk about something for everyone! Beginners, Millennials, twitterers, greenies and granola munchers, Baby Boomers, old folks, and snobs. Sic semper, market segmentation!
Mark Gordon is senior digital communications manager for La Crema Winery. He oversees all digital media outreach for the company’s various brands, including social media, blogs, and web development and design. He’s also my colleague. I interviewed the 46-year old recently in Healdsburg and began with a tough question.
SH: Aren’t you too old to really “get” social media?
MG: I’ve been involved in the web since its infancy. What you tend to find after a while is what goes around comes around. Something that’s being touted as new and innovative is something most likely that’s been done before. A case in point would be Facebook. It’s AOL done right–an evolution of that. And I bring a varied background. I cut my teeth in journalism, back when cutting-and-pasting was actually cutting and pasting things! So having a good foundation in writing, wordsmithing and knowing the basics of journalism helps on digital, because it all comes out in storytelling.
On a scale of 1 to 10, how important is social media to a winery?
I’d say that social media is probably an eight. But marketing yourself digitally is a ten. By that, I mean social media is a tactic, but there are other tactics out there as well. The key is in finding the right blend that resonates with whom you’re trying to attract as a consumer.
What social media channels do you work with?
All the usual social media suspects: Facebook, Twitter, Instagram, Pinterest. That’s where we play the most, as far as social’s concerned. All those channels are designed to drive people towards our own properties, particularly those that have blogs, where we can tell more long-form storytelling and deliver more meaningful messages. Pulling that circle out a little wider, I’d say then you talk about sites where link-sharing is important: StumbleUpon, or reddit, or some of the “food porn” sharing sites, like foodgawker. And then another circle is getting relationships going on with other influential publishers, so your message can be carried outside your sphere of influence.
One year, MySpace is big; the next, no one uses it. How do you stay on top of social media’s fast evolution?
Agility. As a digital strategist, the important thing is to look in your crystal ball and see where you think things are trending. I mean, Facebook is the textbook example of a channel where the strategies have changed due to the fact that Facebook now is essentially a pay-to-play entity. Knowing that, and being able to see ahead of that last year, we decided to pivot towards more authentic storytelling.
What is the role of wine bloggers?
Wine bloggers are in the mix. They can be influencers, people who can help carry a message on behalf of a brand. For us, one of the most important things for wine bloggers is obviously that earned hit.
What does that mean?
“Earned media” means a blogger writes about one of our brands in a manner in which they’re not paid for their work. So we get them samples, or it happens completely organically that they review one of our wines, and that’s a super-valuable thing for us as a company to have those impressions out there on the web.
What about paid wine bloggers?
We call it “influencer outreach.” It’s identifying folks who resonate with our core consumer, and finding ways to work with them. In some cases, it may be something where we pay them as essentially a journalist for hire, to not only write stories on our behalf on their blog, but through other channels. If they have a big following on Pinterest, maybe we do something with them. If they’re influential on Facebook, maybe we ask them to post on our behalf.
Is that all transparent?
It is transparent. The Federal Trade Commission now requires any sort of paid content marketing to be disclosed. So all the folks we work with disclose that.
La Crema just launched, with your help, Virtual Vintner last Monday. What is that?
Virtual Vintner is a crowd-sourcing platform where we’re tasking members of our community and people who are enthusiastic about wine and winemaking techniques to help us craft, from grape to glass, the next La Crema wine. We start off with the decision that will set the course for this adventure, which is whether you want to make a Pinot Noir or a Chardonnay. And from there, it becomes a choose-your-adventure style program. At each step of the journey, we’re not only asking folks to make decisions, we’re giving them the tools they need to make a decision that resonates best with what their personal tastes are, and educating them on the process of winemaking.
How long does the contest last?
We don’t consider it a “contest.” There are contest elements within it, but it truly is an interactive journey. Within that map of different elements—the varietal, the region, the vineyard, the barrels and so forth–we’ll ask people to make a series of choices.
Will there be winners?
Over the various stages, every time you vote, you’re entered in a sweepstakes, and the winner of that particular sweepstakes will come out to Sonoma County for a one-on-one at La Crema, to meet with winemaker Elizabeth Grant-Douglas, maybe get to do some barrel sampling.
So they get a nice vacation!
They get a nice vacation, yeah. And there will be other “contests” as well. Once we get the wine into barrel, Virtual Vintner will have a flavor-describing contest, where participants will have this ability to assume what the tasting profile on that wine might be. They’ll write up a series of tasting notes, and whoever comes closest to what our expert panel determines the flavors to be, will win another prize.
How can people learn more about Virtual Vintner?
The headline on yesterday’s Wall Street Journal article on social media says social media has “fail[ed] to live up to early marketing hype.” True enough, but the situation is even graver than that innocuous header implies. Readers will encounter a litany of social media ills so extensive that the article reads more like the autopsy report of a particularly horrendous car crash than a dry little analysis on the front page of the “Marketplace” section.
Here are the sad bullet points:
– “Social media are not the powerful and persuasive marketing force many companies hoped they would be,” says Gallup, whose report on this topic the Journal got an advance copy of.
– More than three-fifths (62%) of consumers Gallup polled say social media has “no influence at all” on what they buy. Ouch.
– Gallup: “Consumers are highly adept at tuning out brand-related Facebook and Twitter content.” (What, you thought you were the only one who manages to ignore them? So does everyone else!)
– Then there’s Nielsen, which reports that “global consumers trusted ads on television, print, billboards and movie trailers more than social-media ads.” Considering the skepticism with which consumers see all forms of advertising, this means the level of trust in social media ads is less than zero.
– Brand advertising on Facebook is increasingly unsuccessful. “Brands reached [only] 6.5% of their fans with Facebook posts in March , down from 16%” a year earlier.
– Small companies, including family-owned wineries, are frustrated with the results of Facebook ads. “[T]he return is really disappointing,” one restaurateur said. “Unless you spend to boost a post, you only reach 300 to 400 people.”
– The dislike social media users have of anything that smells like advertising or marketing has reached new heights and seems irreversible. More than 90% of social users say they use social media simply “to connect with friends and family.”
– As for piling up fans, “friends,” “followers” and the like, which has been the Holy Grail for companies, “Researchers [now] say many fans are fake, or automated.” One researcher found it cost him 42 cents to buy 700 retweets.
Statistics and anecdotes like these won’t be enough to seal social media’s coffin permanently, nor should we be overly quick to criticize social media for what it cannot do. As an ardent social media user myself, I’d hate to be without it: it has changed my life, and for the better.
But there can no longer be any doubt that social media (as I wrote six, five, four, three and two years ago, and again last year) is not, and cannot be, the alpha and omega of brand marketing strategies. That’s not what social was created for; it’s not what social users want; and the only reason why anyone continues to believe in the marketing value of social media is because a cadre of social media consultants insists (still!) that it works to sell stuff.
If I was a winery, would I be doing social media? You betcha. But I’d be careful to avoid any hint of puffy-fluffy PR, which turns people off. To sell wine, you need to do it the old-fashioned way: shoe leather, personal relationships and—yes!—scores, which still count.