The Danger of Relying on Facebook

The Danger of Relying on Facebook

Last Tuesday, the world freaked out because of a glitch in the internet.

Specifically Facebook’s parent company Meta, and most of their affiliated social and internet related sites and features became inoperable starting around 10am eastern time.

I am actually writing this on Tuesday March 5th, two hours later and it’s still down on laptops, but currently working on my phone via the app.

The ramifications for the ordinary, everyday user is just an inconvenience.  I can live without Facebook, Instagram, Threads even though I post daily, it’s not like a primary source of marketing or making money for me personally.

However, for others, this kind of thing is costly.  Imagine not being able to do business because people could not reach you.  It will be interesting to see if there will be an estimate of the millions of dollars lost due to the Meta platforms being down for a few hours.  Considering the size of Facebook alone, I imagine over a billion dollars in lost revenue.  

I pulled some numbers from the website, The Social Sheperd that say there are over 3 Billion monthly Facebook users world-wide. 2 Billion people are on Facebook daily.  In the United States, over half the population has a Facebook account and 7 out of 10 Americans who use the internet are on Facebook too.   I have a couple of coworkers that fall into the category of internet users but not on Facebook.

From a business standpoint, I had a client a few years ago that lost at least a weeks worth of revenue what Facebook decided to shut down his business account.  He was spending $20,000 a month just on Facebook ads and getting a 4 to 1 return.  Fortunately he was able to scramble and rebrand his business and build it up again with money he had saved up, but many business people that place such a heavy emphasis on marketing platforms they can’t control are stuck when that platform fails like Facebook did

My advice has always been to create your own spot on the web, something you own.  Your own website, not just a social media page.  I know it’s tempting to just rely on the easy way but if it’s also a lazy way, you could be sunk.

One more success story to share with you, and this is about an HVAC company that has been around for 10 years without a website or social media.  I met with the owner recently because he is looking to invite WOWO radio listeners to become his customers.  I asked him the secret to his successful growth over the past decade without the usual online presence and it came down to having good relationships with a few key people in town that have kept him and his company busy.  The good old fashioned trusted word of mouth that you earn when you run your business right.

Now in order to invite our listeners to become his customers, he’s going to invest in a basic website which we can direct listeners to and will give his company credibility to those that don’t know him yet.

What about you?  Are you needing some guidance and help on how to market your business?  Contact me and let’s talk.

Digital Discrepancies

Digital Discrepancies

I was born in the 1900’s.

I heard that line last month when comedian Nate Bargatze was hosting Saturday Night Live. Of course I didn’t watch it live on Saturday night, I saw it a few days later because we have YouTubeTV as our streaming service and my wife was catching up on some of her favorite shows.

Back in the 1900’s, (I’m talking about the century, not the decade) we saw a change in advertising targeting options mostly with the growth of cable TV that happened in the 1980’s and 1990’s and what that brought us as consumers was hundreds of TV viewing channel options instead of just the local broadcast TV signals.

Baby Boomers like my wife and I, Gen X and even Millennials like my kids are different from the current Gen Z in terms of media and entertainment experiences and choices.  Social Media giant Facebook is on the cusp of being 20 years old, and that was a game changer.  Media was not just one way from them to us.  With Social Media, we all got the opportunity to have a voice online and share our thoughts and media beyond what the traditional media companies were offering.

A dozen years ago, I took a break from radio and worked for a couple of web based companies.  Targeting to the “right people” was the sales pitch for these new digital advertising options which was pretty cool we thought.  I mean if you could only send your ads to the people who are most likely to respond… that was a game changer too.

However, there are a few flaws with that kind of thinking because it ignores Human Behavior.   I’ll dig more into that in the future but the basics are that we don’t just respond to targeted ads when they are presented to us, there has to be a need on our part to spend our money, or something stronger than a targeted ad that has created the desire within us.

There is a real problem with highly targeted ad placement, in that the controls for the systems that spit out those ads are not very reliable. Some of us are overserved ads for things we might want to buy is one flaw.  Another is getting served ads AFTER we made the purchase because the algorithms haven’t been created to address that flaw.

MarketingCharts.com released a report that says:

Only 15% of US advertisers are very confident in their ability to see all creative running across all channels, and even fewer (13%) are very confident in their ability to tie creative performance back to campaign ROI, according to a survey  commissioned by Claravine and conducted by Advertiser Perceptions.

In total, the advertisers surveyed – all of whom spend at least $50 million on digital advertising each year – estimate that the wrong creative is served to the wrong consumer about one-quarter (25%) of the time. That includes a majority (56%) who believe the wrong ad creative is served at least 20% of the time, and about one-sixth (17%) who estimate that it’s served to the wrong consumer at least 40% of the time.

Advertisers believe that their ROI would increase by an average of 29% if they were able to serve ad creative to the right consumer every time.

Now, I’m not at all against digital advertising, I just believe it’s not as complicated as some will have you believe.

Instead of targeting individuals, you need to go back to targeting known audience groups.  You can do this with social media and other digital advertising but it’s what really what advertising was all about back in the 1900’s.

When mass media like radio, print, TV, heck even Cable TV were the choices business had, they used the characteristics of the media channels audience as the determining factor for where to spend their advertising money.

Going back to my knowledge and expertise in tracking digital targeted ads, I know that when you dig deep enough, all the data becomes less and less reliable.

I challenge you to think like a person, a consumer, a person that could be your customer and the habits and characteristics they have, and then create ad campaigns that speak to them with a relevant message on a form of media that they are likely to use.

If you’re in the Fort Wayne Indiana area, I can help you walk thru this process in person.  Contact me, Scott@ScLoHo.net and we can set up a time to help you avoid all of these Digital Dispensaries and actually grow for the future.

 

Getting Linked

Getting Linked

Among the one-liners of business success, there’s one that I’ve noticed has been critical and it has to do with connections.

I’m going to focus on LinkedIn, but first here’s the one-liner:

“It’s not who you know, but who knows you that determines your success”

This is why I highly recommend using the power of social media to build a network.

In the 1990’s as a young advertising sales guy in Detroit, I was tasked with making cold calls to find businesses to advertise. It wasn’t fun and I actually quit.  Since I was not from the area, I had only a few connections and none were business owners.  Armed with a phone book and a car, well that was about it.  There was no social media in the 1990’s. MySpace launched in 2003 and Facebook after that.

But did you know that LinkedIn also launched way back then, in the early 2000’s?

LinkedIn used to be thought of as a place to find a job.  You’d fill out your employment history and it sort of functioned as an online CV or resume.

It has become much more than that.

LinkedIn promotes itself as a social network for professionals for professional connecting which is pretty much true.  I also recall the debates over who to connect with.

“Should I only Link to those people I know?”

Well, that is a good start and some of you haven’t even done that.

Please do that first.  Then it’s time to really grow your network.

Anyone that you are connected to has connections and while LinkedIn will tell you whom you share connections with, it will also show you something called 2nd degree connections.

These 2nd degree connections are where the real potential value is, I’ve discovered.

It’s the Kevin Bacon Effect.  The Kevin Bacon Effect was a fun gun to play to see who was connected to whom and how many people you had to go thru to connect to Kevin.  Look it up if you care.

Before I was preparing this article, I had no idea how many 1st degree connections I had. Just glancing at my profile, says 500+ which seems like a lot.  But when I dug deeper, I saw I have over 3,000 first degree connections!

Here’s the fun part, and I’m going to scale it down using a low number of connections.

100.

If I had just 100 connections, and each of my 100 connections had 100 connections, that means in theory I have 10,000 second degree connections.

Move that number up to 400 and do the math and that adds up to 160,000 connections.

Of course there are a lot of variables but according to LinkedIn, the average number of 1st degree connections is between 500 and 999 for active LinkedIn Profile users.  When I looked at my co-workers, I saw most having less than 500 which means they are missing out.

What are they missing out on?  And what are you missing if you aren’t active on LinkedIn?

When I am doing research on a company or a potential contact, LinkedIn is one of the top 5 searches I do.   My role with my radio station includes looking for potential candidates to hire for positions that may open up.  I also do some research on companies that might be a good fit as an advertising partner.  Besides the 1st degree connections, I can also reach out to 2nd degree connections.  And I do this free.

Yes, I don’t pay a dime for my LinkedIn account, and I usually don’t advise people to get a paid account either.  If you instead build your contacts and connections, you will grow it over time and it will become a valuable resource.

Finally here’s the added benefit that has been happening a lot, and that is people reaching out to me.  Every single week.  Some just want to connect for networking but others are seeking me out because they want to consider buying what I have to sell them.

Would you like people contacting you like that?  What are you waiting for?  Get Linked!

 

Own Your Space

Own Your Space

Here we are in the summer of 2022 and due to some recent business meetings I’ve had, I need to give you a piece of advice that I’ve said repeatedly over the years.

Own Your Space.

Not just any space, but your space online.

This applies to you as a person and if you have a business.

A dozen years ago, I was showing college students how I created my own personal brand, the ScLoHo brand with a couple of blogs that I updated every single day.

Then 11 years ago, my friend Kevin challenged me to create my own space, not for the ScLoHo brand, for me, Scott Howard.

And so I did.  It took a few months but I invested in my own website instead of using the free blogger sites from Google.  This is that website I created in 2011.

It looks much different than the first version.  The domain name, ScottHoward.me, was selected because the dot com version of my name was already taken.  So while the layout and design have evolved over the years, this website has been consistently been the Space I Own.

Recently I’ve seen business start-ups that don’t have their own website, they are relying on socials.  You don’t have a real business, you’ve got a hobby.  Until you spend a few hundred bucks, buy a domain and create a simple landing page, at the bare minimum, you aren’t real.

Not in today’s world at least.  Look, you don’t even have to use it to run your business, but if your own website doesn’t exist, neither does your business as legit.

I’m not into building websites anymore, but I can connect you with the people I trust.  Believe me, I want you to succeed, and there are always a few exceptions to most any rule, but do yourself a favor and get Your Own Space now, for your business and also for your own personal branding.

Are You Missing?

Are You Missing?

A decade ago, I took a break from working in radio to work full-time for a website development firm that had some cutting edge technology back in 2011.

My job was to find companies that needed website upgrades and introduce them to our platform so we could bring them into what was then the current version of the internet age.

A new website could cost $20,000 for a simple landing page up to well over 100 grand for an eCommerce site.

These days, you can hire a professional to build you nearly anything you need for under $50,000.  I have a few connections that I trust to do the work for a tenth of that, depending on what your needs are.

Yet, I am amazed at the number of businesses that are missing online.

What do I mean by missing?

Well first off, I should be able to find you with a simple Google Search for your business name.

Google tries to be your friend by providing businesses with free listings so that when I am looking for you, I can find you.

And by find, I mean find your website, your location including directions, your phone number and whatever else would be appropriate.

Yet there are still too many businesses that seem to be ignoring the internet because they don’t show up when I Google them.

Similar circumstances with Facebook.  Too many of you don’t exist.

Now I’m not a tech wizard nor am I a web designer, or even an expert in Search Engine Optimization anymore.  Consider me your average potential customer who is just looking to connect with you or one of your competitors because I have a question that requires your expertise.   Or maybe I have money to spend right now and I just need to connect with you and give you my money in exchange for the product or service you provide.

But you are missing when I ask my phone to find you, or my laptop to send me to your website.

To me, I find this shocking, that a business is still invisible online.

This violates one of the very basics of marketing.  You need to be able to be found.

Stop ignoring this and either pay someone or do it yourself, but create a way for people like me to find you online.

Also, if you have not updated your website, or updated your social media this year, (or longer)… do it.  Our whole world has gone through numerous changes since the pandemic began over 18 months ago and I’m sure your business has too.  Update your hours, and other policies we need to know and want to know.  Even if it’s back to business as usual, tell us that too.

One more tip and this is for you as an individual:

Don’t be missing online personally.  You don’t have to create your own website like I did years ago, but you might want to.  At the very least, get on social media.  Create a LinkedIn profile, Go ahead and  get on Facebook.  Those two are the most important for adults who want to be found.

Sure, you can also use Twitter, Instagram, Snapchat and others but don’t ignore Facebook and LinkedIn because those are the two primary social media channels still for grown-ups.

Are you missing?

If you are, what are you missing?

And are you going to do something about it?

P.S.

Everything you just read I wrote on Sunday 10/3/21 and used as the script for this weeks podcast.

Then the next day, Monday 10/4/21 Facebook.com goes down.  I mean for several hours, you cannot connect to Facebook and some of their other holdings like Instagram.  Does this mean that you should NOT use Facebook?

No, it just means you should not use Facebook exclusively.  As I am writing this on Monday afternoon and Facebook is still down, I have full confidence in Facebook coming back online.  This is just an unfortunate hiccup that will cost them some money in lost revenue.  However, for the businesses that only rely on Facebook or Instagram to be found online, this will have a much more serious impact.

Go back and read what I wrote in its entirety and then do it.