The travel and hospitality industry is going social with a vengeance to engage and network with travellers. According to a study, Facebook, Twitter, and YouTube are the most popular and effective social media platforms for marketing within the tourism and hospitality industry.
The industry uses these networks to review brands, locations and read user experiences, whilst also responding actively to queries and comments.
According to a research conducted by Mindshift Interactive, the top five hospitality players in the Indian market that are actively involved in the social media space are Club Mahindra, ITC, Taj Hotels, Oberoi Group and Pride Hotels.
Club Mahindra with 51 per cent had the maximum number of conversations, followed by ITC with 21 per cent and Taj Hotels at 17 per cent. Oberoi Group (8 per cent) and Pride Hotels (3 per cent) ranked at the bottom with respect to its presence on Social Media.
The increased dependency on social media by travellers is growing faster than the travel industry itself. India’s travel category garnered the second largest share (42 per cent) of total Internet visitors in Asia, with 17.8 million average monthly unique visitors in the first quarter of 2011. With the digital media ecosystem in India evolving rapidly, the number of Internet users is expected to cross 546 million users by 2016, a report by KPMG said. Continued growth in internet penetration and mobile device access is expected to drive consumption and bring about a 360 degree approach for marketing.
“Brands today are spending almost 20 to 30 per cent of their marketing budgets on digital and these figures are expected to grow with years to come. Hotels present on the social media platforms are beginning to understand their consumer’s better,” said Mr Zafar Rais, CEO of MindShift Interactive.
With over 63,467 fans and an engagement ratio of 14 per cent, Club Mahindra leads the presence on Facebook. Club Mahindra leads the Twitter presence with 7,159 followers and effective engagement.
Oberoi Hotels has over 10, 879 fans on Facebook with an engagement ratio of 3.5 per cent. ITC has over 15,402 fans with an engagement ratio of 2 per cent. Taj Hotels has integrated their campaigns such as “Mélange – Vote for Art” and “Marathon For A Cause” with social media. The Twitter presence of Taj Hotels is as @TajMahalMumbai with 2,444 followers.
THE last advertising agency on Earth. That was the ominous title of a fairly popular video on YouTube some time last year. The film, about what the future of advertising might look like (produced by an ad agency, by the way) took potshots at the traditional ad agency folks who have ignored the powerful impact of social media on consumers and brands.
Understandably alarmist, it in a way represents one school of thought: that social media is completely going to change the way traditional advertising works and that the 30-second TV spot is dead. And then there is the other school of thought which believes that the impact of social media on brands is over-rated and is dismissive of it even. The truth lies somewhere in between. The most awarded integrated campaigns of recent years (Old Spice, Bing to name a couple) have had strong social media components built in. And most of these were created by big, traditional agencies. Marketers and agencies have come to accept social media as an integral part of consumer’s lives and believe that smart use of the medium can create impact.
While a majority of marketers seem to agree on its potential, there are several questions in their minds on the right approach, implementation, monitoring and the talent required to manage the whole process. Investments in this space are yet to see the big numbers (save for certain categories such as autos, airlines, finance and telecom). Internet advertising in India accounts for just 5% of the ad spends with TV still leading the pack. A recent industry report expects internet revenues to go up to Rs 1,478 crore in 2012, a growth rate of 50% on a relatively small base. The air of uncertainty or tentativeness about the medium also stems from lack of clarity on how exactly the medium can help brands.
An IBM ‘Global Chief Marketing Officer’ study done in the fourth quarter of 2011 suggests that most CMOs worldwide, and in India, are “underprepared to manage the impact of key changes in the marketing arena”. Data explosion topped the worldwide list of underpreparedness with 71% of CMOs indicating so. Some 68% of the international CMOs surveyed are not in a position to deal with the rapid developments in social media.
All this means that stake holders in brand strategy and brand building must boost their own digital and technological proficiency. This could include not just being aware of social media basics and trends but knowing which tools to use to suit the brand’s business objectives – be it buzz monitoring, blogs, consumer reviews and so on. A ‘one size fits all’ approach may not work at all – one needs to be clear about the objective of each medium. A Twitter handle may be used to address consumer issues, as a customer service channel by one brand. But another brand in another category may use it to provide information on deals or as pure entertainment. A blogger outreach or a brand blog may make sense for niche categories like high end IT tech or maybe travel, fashion and music. Among the various social media tools available, it appears that a Facebook fan page has fast become de rigueur for most brands, irrespective of a real need. This requirement has now replaced the earlier ‘viral video’.
Whatever be the social media tool, it is important to remember that brands are intruders in that space. Unless we provide content that gives a strong, real reason for consumers to engage with brands in that space, the engagement will be at a superficial level. There are far too many brands (especially on Facebook) which have begun to follow a cookie-cutter approach to conversations with consumers.
Another aspect is the impact on ad agencies, especially those in account management. When specialist media services were hived off, the account management folks slowly began to lose touch with media basics and trends. Now with the increasing use of specialist digital teams there is one more area of brand communication that these guys are likely to be kept out of.
Keeping a pulse on the consumer meant something different just 10 years ago. Thanks to the explosion of data and devices, it takes on a whole new meaning today.
The writer is vice-president, DraftFCB Ulka Bangalore. The views expressed here are personal.
Flagging interest in cricket following India’s elimination from the One-day triangular series in Australia this month is prompting the Indian Premier League (IPL) team owners to leave nothing to chance.
They expect to increase spending on advertising by 10-15% for the new season—which begins on 4 April—compared with the last season, and have also started advertising campaigns by reaching out to fans directly through social media, roadshows and contests involving fans’ participation.
The Mumbai Indians has some of its star players Sachin Tendulkar, Harbhajan Singh and Rohit Sharma reaching out to the team’s 2.5 million fans by doing personalized videos this year. The team is sending fans on the team’s Facebook page 30-second video clips in which each cricketer personally addresses each fan and shares personal information while thanking them for their support. The campaign, called “Players Become Friends”, will be supported by radio and television with the social/digital medium anchoring it.
“The team (Mumbai Indians) has such a fantastic fan base and we wanted to get closer to them and build a one-on-one relationship instead of doing heavy television advertising,” said Piyush Pandey, executive chairman and creative director, South Asia, at Ogilvy and Mather, the agency behind the campaign.
In the third edition of IPL, Mumbai Indians got about Rs.55 crore in sponsorship, and expects that to double this year, according to a person with direct knowledge of the development, who did not want to be identified.
The Delhi Daredevils team is planning something similar to Mumbai Indians, using social media to organize “banter” between fans and cricketers.
“Social media is not cheap,” said Hemant Dua, GMR sports head (marketing). “You either spend a lot of money or use it intelligently. We are trying to integrate both,” he said, adding that the team will spend significantly more on advertising this year.
Rajasthan Royals is teaming up with Empire Spices to take its brand to the “interiors of Rajasthan and Maharashtra” because typically, its campaign tends to focus on more urban audiences, according to chief executive Raghu Iyer. He added that the team will push for more interaction between fans and captain Rahul Dravid through social networking as part of its advertising spend, which will be 10-15% higher this season.
Dravid, who announced his retirement from domestic and international cricket on Friday, will play this IPL season.
On average, each IPL team spends between $1 million and $1.5 million on promotions and brand building, said Reddy, who expects revenue from local sponsorships and tie-ups to increase 10-15%.
According to PricewaterhouseCoopers India, the fourth edition of IPL, in 2011, had advertisement revenue of approximately Rs.1,000 crore. But with India’s cricketing fortunes slumping recently, “teams will look at (additionally) consolidating and connecting with their fan base through promotions”, said Timmy Khandari, executive director and leader entertainment and media at PricewaterhouseCoopers India, while explaining that a shift towards social media is natural.
Chennai Super Kings started a campaign earlier this year through social media to invite fans to name the team mascot. This was done mostly through the team’s Facebook page and on radio. “There is no dramatic change in how we approach the medium,” said Rakesh Singh, joint president (marketing), India Cements Ltd, which owns the team. “But it makes a lot of sense to be active on social networks. We are, for instance, the second most followed team on Twitter after Kolkata Knight Riders.”
Deccan Chargers, too, is taking to roadshows as it tries to connect with a broader base of fans across Visakhapatnam, Orissa and Hyderabad. “Our focus will be on creating a direct connect across our three home grounds,” said Venkat Reddy, chief operating officer, Deccan Chargers.
Many team strategists believe advertising on national television is too expensive and lacks the kind of focus that can be achieved through print, outdoor and social media.
But social media spending will supplement other forms of advertising and not replace them, according to analysts. “Social media will be an additional spend over and above the usual promotional activities. It is an engagement medium and can’t be a replacement for other mediums,” said Jehil Thakkar, executive director, media and entertainment, at consulting firm KPMG India Pvt. Ltd.
- DLF IPL 2012 Schedule and Fixture (amarnaik.wordpress.com)
The problem with social media is that it is powered by thousands of small companies, which may or may not have sound financial backing. Many companies with good finances come up with dud apps or gobble up small companies and then shut them down.
One of the latest to shut down is AOL‘s Brizzly, a Twitter web client. Brizzly held a lot of promise, but never really took off. Though Brizzly was like a breath of fresh air when it was launched, there wasn’t much development to retain customers’ interest.
Google’s attempt to bridge scholarly articles and social media, Knol, also bit the dust. Knol never really picked up after the initial excitement surrounding its launch. Intellectual products like Knol don’t seem to figure in Google’s list of priorities, as Google itself said in its email announcing Knol’s closure: “As part of Google’s prioritisation of product efforts, we will be retiring Knol.”
The Knol ‘closure’ announcement page had a note which said: “Knol will be discontinued as a service, but we’ve worked with Solvitor and Crowd Favorite to create Annotum, an open-source platform based upon WordPress that allows you to continue authoring and publishing scholarly articles.” This could mean that Google has nothing to do with Annotum, other than “working with” others to create it and helping Knol users migrate to Annotum.
This comes after the closure of another Google product – Wave. Again, though Wave had created lot of interest, people really did not understand how to use it.
Both the closures were from big cos. But Brizzly, founded in 2009, was acquired by AOL in 2010. And in 2012, it was curtains for the app. Sometimes, it makes you wonder whether the biggies have any plans at all when they acquire small cos. Brizzly is just one sad example.
- Google retires Knol (philbradley.typepad.com)
IT major Infosys Executive Co-Chairman Krish Gopalakrishnan today said government should impose regulations to check media players like Google, Yahoo and Facebook from hosting objectionable contents on their websites.
“The government should regulate social media websites from hosting objectionable contents. It is vital to establish jurisdiction over citizens’ data for security reasons,” he said at the Knowledge Summit organised by All India Management Association here.
Gopalakrishnan noted that this was a global problem and it was being dealt differently by different countries. “The European Union is trying to set up its own guidelines, while the US is doing it in its own style,” he said.
He said social media had become powerful in terms of opinion making and publishing positive and negative stories. “Sometimes, deliberately or by mistake, such stories could be twisted to create needless problems,” he added.
Facebook, Google, Yahoo India and Microsoft have been accused of hosting anti-religious or anti-social contents on their websites.
The controversy over monitoring social networking websites arose after Telecom Minister Kapil Sibal had asked them to ‘screen’ their contents.
“Organisations should not ignore social media and social identity. We recommend that organisations ascertain how they currently use internal and external social media in both official and unofficial ways, and look for dissonance between identity and access management practices and identity needs, opportunities and risks of social media,” Gartner vice-president for research Andrew Walls said in a report.
“Organisations need to turn their attention to the impact of social media on identity and access management,” Gartner has also recommended organisations to ascertain how their employees use internal and external social media in “both official and unofficial ways,” instead of blocking access to such websites.
The report also expressed the hope that only less than 30 percent of large organisations will block their employees access to social media sites by 2014, compared to 50 percent in 2010.
According to Gartner, collection of identity data by public social media “on a massive scale,” enables improvements in “the production of identity intelligence.”
“This pushes identity and access management programmes to discover user profiles accessed by staff and to maintain capabilities for accessing external services in order to harvest identity data,” he said/
Such identity intelligence can be leveraged for identity and access management of employees, says the report. Gartner has also identified significant impact of social media on identity and access management.
“Employees who participate in online social media continually make judgements about the degree of trust they should place in the platforms and in other participants, and they adjust content, structure and vocabulary to match their risk assessments,” it said.