tigho is forcery, nyc, real estate, advertising, tech

Really interesting Page Level Social Metrics from SEOmoz... and a little bit of Seth Godin.

Marketers have built a temple that needs to be torn down. Demographics have defined the target consumer for more than half a century — poorly. Now, with emerging interest graphs from social networks, behavioral data from search outlets and lifecycle forecasting, we have much better ways of targeting potential customers.

The rise of mass-produced consumer goods also brought the rise of mass-market advertising. In the 1950s and 1960s, the goal of television was to aggregate the most possible eyeballs for advertisers. In order to convince consumers that an advertising message was relevant to them, consumers had to buy the idea that they were just like everyone else.

Marketers created that buy-in by bucketing people into generations. When you lump 78 million people into one group called “Baby Boomers,” it’s much easier to sell them stuff, especially when consumers accepted their generational classification.

But now, that entire system has broken down. The year that someone was born will not tell you how likely he is to buy your product.

Fragmentation is now the norm because the pace of change is accelerating. Generations have been getting smaller because there are fewer unifying characteristics of young people today than ever before:

With the recent rise of the social web, people self-select into groups so small, so fragmented, and so temporal, that no overarching top-down approach could be successful at driving marketing performance.

Marketers have responded by adding more demographic information to the mix, but even that is a losing battle. I worked with one client who was introducing a technology product, and had identified a target market of “connected consumers.” Connected consumers were 34-55, had a household income over $120k, and read technology publications regularly. This target market represented 14 million consumers.

They were targeting 14 million consumers to sell 50,000 units — that means they were hoping for 3.5 sales for every 1,000 people with whom they connected through their marketing.

What if, instead, you could get 500 sales from every 1,000 people you marketed to?

It’s possible through psychographic profiling. Psychographics look at the mental model of the consumer in the context of a customer lifecycle. Amazon.com has long been a leader in this space, through innovations like “recommended products” and “users like me also bought.” Its algorithms have learned to predict its users, and what they are interested in. And now, there are a number of tools that any business can use to leverage psychographics.

Here’s how a psychographic profile might look different from a traditional marketing profile target for a childcare provider:

Psychographics provide much more useful information about users. There are multiple data sources making this possible today. Social profile data, behavioral data and customer lifecycle data can now finally be leveraged to contact people who are ready to buy.

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Social Profile Data

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Profile data from social networks consist of all the fields users grant permission for brands to use on their behalf. Most things that users track on social networks can be leveraged to create a closer relationship with a customer. Fields like relationship status, alma mater, interests and occupation can all be managed through social profile data management tools.

Social profile data is the critical cornerstone of psychographic insights. The level of nuance and insight provided by social data, when compared to standard demographics, is the difference between performing surgery with a scalpel or a butter knife. Previously unimaginable questions are now routine:

• Are customers who kayak more likely to buy water shoes than those who canoe?
• Who is more likely to spend over $100 on an order: Seattle Seahawks fans or Seattle Mariners fans?
• Are your customers more likely to purchase when they move across the state or across the country?

In addition, companies such as GraphEffect are measuring purchase intent by doing semantic analysis on Facebook status updates. This type of qualitative analysis can move users into specific marketing funnels from their very first online experience with your brand.

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Behavioral Data

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Retargeting advertising messages is gaining popularity among marketers, but its very success has jeopardized its effectiveness. Ads that follow users around the web have been implemented — usually poorly. Every ad network quickly incorporated the ability to place cookies in users’ browsers, and display specific ads to them any time they visit a site that’s part of their networks.

The next generation of ad targeting will focus more on telling the customer a story over time, based on specific behavior triggers. That means ad networks and clickstream data aggregators will work together to trigger when a customer moves forward in a mental model toward a purchase event.

Site content and product recommendations will also be informed by clickstream analysis. Companies such as RichRelevance, Certona, Baynote and Monetate all offer the ability to personalize information to specific visitors based on their behavior. Leveraging those alongside a payload of social profile data can turbocharge those services from the first moment a new user visits a site.

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Customer Lifecycle Data

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Social profile data can also be used to predict customer lifecycle. Imagine knowing not only if a customer has children, but the exact ages of those children. In addition, key indicator purchases, like buying diapers for the first time, indicate a customer entering a new lifecycle. Other key indicators, like shipping address changes, first purchases of furniture, or first purchases of substantially higher-value goods can all indicate the start of a new customer mentality and behavior pattern.

These patterns are predictable, so you know the future behavior of high school seniors by looking at the current behavior of college freshmen. By using demographics alone, all high school graduates would be marketed to identically. Using psychographics, we know who is likely to be interested in specific product or content recommendations at a specific time — such as when they actually start their first day of college.

This vision is starting to gain traction among serious marketers. At the 2009 Internet Strategy Forum, Xerox’s VP of Interactive Marketing, Duane Schulz, said that a 1% clickthrough rate was a huge failure — even though it is 10 times the industry average. In his mind, a successful campaign would never waste 99% of its impressions. Using psychographic data, you don’t have to waste any impressions.

We have seen a similar upheaval in marketing before. In the 1960s, marketers who embraced the power of television, broad-based insights into psychology and demographic data created world-class brands and billions of dollars in value. At that time, if you didn’t advertise on TV, you lost. Today’s new tools offer a similar choice: Build a deep understanding of your customer, or risk irrelevance.

Waiting for a Google Plus invite? Google is rolling out the service in waves and you can expect it to become a ubiquitous social option in the coming months. We have been playing with the service since getting invites yesterday and there are a lot of things to like about Google's new social initiative.

Unlike Google's last big invite-only rollout of a social initiative - Google Wave - users will not be confounded on just what the heck you are supposed to with the service when signing up for the first time. From Friendster, Friendfeed, MySpace and Facebook, users are familiar with how a social platform is theoretically supposed to look. At its core level, Plus is not that much different. Yet, there is so much more. How do you get started with Google Plus? Let's break down the nuts and bolts.

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Create Your Circles

Imagine the ability to break down Facebook into its various constituent parts and keep them separate from each other as opposed to one giant feed. That is what Google has done with Plus. There is one main stream where all your friends updates show up then the option to see updates from only certain groups like "Work," "Friends" or "Family." This is the essence of Circles.

From the initial interface, you will see four buttons - Home, Photos, Profile and Circles.

The first thing you are going to want to do is set up your circles. Click on the tab and it will bring you to a interface where all of your contacts in Gmail (not just Gmail addresses, but all of your contacts) are listed in a panel on top of the screen. Below is a panel that has your various circles. To add a contact to a circle, drag from the top of the list to the appropriate group. Contacts can be added to multiple circles.

One of the initial problems I had from the circles interface was that I added a couple of "Friends" into my "Work" circle and could not figure out how to get them out. You can do this from the user streams by hovering over the person's name and hovering over "Add to circles" and clicking the appropriate boxes. Yet, from the circles interface, that was not readily apparent. To take people out of a circle, hover above the circle, grab their icon and drag it back into the people plane.

One of the great differentiators between Twitter and Facebook is the "unbalanced" or "balanced" follow. Facebook was initially a two-way follow paradigm - I friend you, you friend me and we see each other's updates. This has been changed with the ability to "like" groups, brands and pages without them following you back. Twitter has always been a one-way follow - I follow you and you do not necessarily have to follow me back.

This line has been blurred in circles. If a person is in your contacts, they can be added to a circle and will get a notification that has happend (but not what circle they have actually been added to). There is also a "follow" circle. Just like Twitter, you can follow people and see their updates without them having to follow you back. As your circles evolve this could allow to track different interests, like Twitter lists.

The Stream and "Bumping"

Once you have set up your circles, go back to the Home screen to see the results. Below the profile picture you will see the choices of stream. You can view your entire stream at once (à la Facebook) or by particular circle.

There are two other options below your circles - Incoming and Notifications. Clicking incoming will bring you to messages that have been sent by people outside of your circles. Notifications will show you when people in your circles have commented on something you have posted, or something you have commented on.

Below the circles and notifications there is a tab dubbed "Sparks." More on that below.

One of the killer features of Gmail, or any Google product, is Chat. It has made its way into Plus and sits in the familiar left-hand, bottom-right portion of the screen that it is found in Gmail. Users with a lot of Circle and Chat contacts will like the ability to enable chat for particular groups. Want to surface friends and family but not acquaintances? Plus will let you do that.

If you are using Plus in a Chrome browser, desktop notifications do not pop up when someone sends you a message like it would in Gmail.

Posting a status update in Plus is not like sending a Tweet or updating Facebook. The core functions of an update are present - photos, links, video and location - but when you hit "share" it doesn't automatically post your message to everybody in your circles. You have the option to decide which circles your update is posted to, from individual groups to all circles, to extended circles, or just a single person.

An interesting feature in the user stream is that conversations will surface back to the top of the feed when subsequent comments are made on a thread. This, according to Google developer Jean-Baptiste Queru, is called "bumping." Google Buzz has this same capability and it was also a feature of FriendFeed.

Photos

Photos in Plus are relatively self-explanatory. Users can update photos from their computers or from their phones, see photos that people in their circles have uploaded. With the Android app, there is a way to upload any photo that you take with your phone straight to Plus, an interesting if slightly disconcerting feature.

When you add a photo, it will prompt you to create an album. Once that album is created it will ask which of your circles you would like to share it with. This is a prime differentiator from Facebook where all of your photos are visible to all of your friends by default (you can change who can view certain photos in Facebook preferences). You can also pick an individual to share photos with instead of an entire circle.

Photo uploading is easy within Plus. Just like adding a picture or an attachment to a Gmail document, you can drag-and-drop from your desktop or click the on the upload button and browse your computer for pictures.

Users can also add photos by posting them in status updates or by uploading them through the Profile tab.

Profile

If you use any Google products and have a Google account, you have a Google Profile. Profiles are unknown to most of the Internet because, until now, it was relatively useless to anyone but Google.

Your Google Profile is now the hub of you Plus experience, the backbone that everything else is built upon. There are six tabs in your profile page - posts, about, photos, videos, +1s and Buzz.

A significant change to your profile page is that there is now a location where your +1s live. Until now, when you clicked +1 on content on the Web, nothing happened. The information was sent to Google and integrated into some type of esoteric search algorithm. Users can now see what people have +1ed through their Google Profile. Unlike the Facebook share/like/recommend buttons, it does not go straight into your stream but rather to the profile page.

Sparks and Hangouts

Hangouts is a new feature rolled out with Plus. Essentially it is an area where your circles or a select group of friends can video chat all on one screen. To start a Hangout, go to the "Welcome" button in the home tab. It will prompt you to start a hangout and invite individuals or entire circles. Up to 10 people can be in a hangout at once and it will be seen in that circle or users' stream.

Sparks is the part of Plus where you can find content on the Web that you are interested in. In the "Field Trial" version of Plus, it looks like Sparks is a randomized version of content and news generated through Google News. Sparks can be a dashboard for things you are interested in on the Web. When you do a search in Sparks, it will predict what you are searching for with a drop down menu (like old Google search, not quite like Google Instant). You can pin particular topics you search for to the Sparks dashboard for quick access.

You can share articles found in Sparks with a share button on the bottom of every article that surfaces in a search. Like everything else in Plus, it can be shared with a specific person, circle, group of circles or the general public.

For more information, check the videos that Google made explaining Plus and all of its aspects -- Circles, Hangouts and Sparks.