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.
We are pleased to announce the launch of “Social Media Odd-vice from Gus [SMOG],” a new team of experts designed to help YOU and YOUR BUSINESS navigate the complicated world of digital communications.
Are you tired of not knowing how to maximize Twitter to increase ROI? Frustrated with not showing up on your friends’ Facebook feeds? Puzzled over not understanding why putting pictures up on Instagram isn’t resulting in increased sales? Tired of posting to pinterest and just getting porn? Sick of seeing everybody else but you achieve unbelievable success with social media? Fed up with everyone snickering behind your back because they’re all scoring 100 points on messaging while you’re stuck with an embarrassing 57?
In short, are you MAD AS HECK and you’ve had it UP TO HERE and are ready to grab the bull by the horns and hit it out of the park? With SMOG, you can slam that puck into the end zone and it’s all hands on deck for a woo-hoo glass of bubbly on your way to the Jackpot. Yes, with just 15 minutes of your time, you can make up to 1500% more, and all it takes is contacting Gus, who is standing by 23-6.
Still wondering if it’s too good to be true? Well, IT’S NOT!!! Here are some testimonials from REAL PEOPLE just like you, or they were just like you—LOSERS!–before they discovered SMOG and finally discovered the secret to happiness!
J.L., Peoria IL. I was completely in the dark until I discovered SMOG. Believe me, Gus is amazing! Now I’m living in a huge mansion with servants and butlers and I only have to work 1 hour a day! If that!
R.P., Canoga Park CA. OMG, SMOG so works! I had, like, tried everything but nothing worked for me!!!! Now the orders are coming in like crazy!! I’m, like, crazy popular now with the kids!!!! Thank you, thank you Mr. Gus!!!
R.P., Boston MA. My congratulations to Gus and the entire staff of SMOG for changing my life! I was poor, not anymore. Now, my staff handles all the grunt work while I’m on my YACHT in the South Pacific!
J.R., Hong Kong. I’ve never been happier. My financial life is amazing, and I now have the time for love. Gus, will you be “Best Dog” at my wedding?
A.G., Seattle. I thought I was too old, at 14, to really “get” digital communications. But with Gus’s help and the whole SMOG team, I feel like I’m eight again! Thanks, guys!
C.O., Baghdad. We’re doing really well, considering. Gus, do you know how to load a rocket-propelled grenade launcher? And what should I do when the wifi is down?
J.R., Pittsburg. Can I please have my money back? This is my second request.
J.B., Castro Valley CA. I’m couldn’t be pleaseder, and it only took me ten minutes to learn them all with your amazing SMOGAlert!© system which was so easy to use.
* * *
As you can see from these unsolicited testimonials, tens of thousands of satisfied SMOG users are experiencing the BLISS of social media success! Don’t think twice, sign up TODAY and you’ll find yourself rolling in dough! Your money back, guaranteed, if not fully satisfied.
ABOUT OUR FOUNDER, GUS
After graduating from Harvard, M.I.T. and Stanford with degrees in economics, business and veterinary medicine, Gus moved to San Francisco, where he discovered SOCIAL MEDIA and quickly became one of the most sought-after dogs in town. Despite his busy schedule, he started SMOG in his condo. The results have been evident. Gus has won the American Wine Dlog Award for the last 17 years, and his Twitter followers number nearly 4 billion, more than even 1WineDude and the Geiko Lizard. He is the founder of doggiedoodoo.com, the leading canine social networking site in the world, and has been nominated for the Nobel Piss Prize.
“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.
That’s the headline on a little article from Rachel Luxemburg, a “social media strategist” at Adobe, who defines the “So what? test” this way: “Ask yourself, ‘Is this something my fans / friends / followers are truly going to care about or will they shrug and say ‘So what?'”
The “So what? test” is something every blogger understands. Or, this blogger, anyway. I realized early on, when I started blogging more than six years ago, that no one would care about what I wrote, unless I gave them a guarantee of two things: (a) the writing would be as good as I could possibly make it, and (b) I’d change the post five times a week, so that people could look forward to something fresh Monday through Friday.
I knew that you can’t assume people will come to your site unless you offer them a reason to come—and to return on a regular basis. It’s hard work, and I knew that I’d better not even begin, unless I meant to follow up and do what had to be done. After all, I don’t want to do anything unless I can do it really well. That was my approach to karate when I studied it; it included being a professional wine writer and critic for 25 years, during which I deferred to no one; and so by extension I applied that same exacting standard to steveheimoff.com.
From a marketing point of view, the “So what? test” also is important for wineries. As I’ve written many times in the past, having a presence on social media, including blogs, is fine and dandy, but I would argue that my two criteria—good writing and frequent updates—mark the difference between mediocre, ho-hum social media, and social media that attracts eyeballs. People are busy; no one has the time to go to an online site that’s boring, with the same content it had yesterday, and last week, and last month, and—gasp!—last year. But we all know winery sites that are fossilized; they’re the walking dead, zombies that look alive but aren’t.
Rachel, the Adobe strategist, suggests three simple ways a social media site can attract viewers: is “what we’re sharing…actually interesting, useful, or just plain fun?” It doesn’t have to be all three. What’s interesting may not be useful, although what’s useful generally is of interest. And fun need not aspire to any standard higher than simply giving people a few moments of enjoyment. It’s not rocket science, this business of making online content “interesting, useful or just plain fun,” which makes it all the more surprising when you see how many wineries don’t seem capable of doing it.
Well, in fairness, a winery can’t do it, if there’s not somebody at the helm who cares about social media, and has the time and resources to pull it off. Again, not all wineries have such a person, and it’s a pity, because it doesn’t take a tremendous amount of time or effort to do it reasonably well. I think the uppermost thing to keep in mind, for a winery social media person, is to find a “voice” that’s natural, human and communicative. Too often, winery social media is written and managed by public relations people who—for all their positive virtues—aren’t always the best communicators. They tend to take refuge in hyperbole and clichés, thinking that giving a stale old marketing message will engage readers. Unfortunately, that’s not true. Today’s consumer has seen it all, heard it all, and isn’t in the mood for another commercial disguised as a conversation. They want to be engaged as intelligent adults. They have finely tuned B.S. meters that can detect falsity a mile away.
Social media has evolved a lot since I started blogging, but in some fundamental way, it has remained the same—and will continue to. The rules of authenticity, transparency and respect for your readers and viewers still apply.