7 Opportunities for Brand Socialization

Socialize or be marginalized—this is the choice brands must make, and it is also the change that advertising and marketing companies, as brand promoters, must undergo.

The rise of social networks and media has transformed brands from 'capitalist' to 'socialist.' The degree of brand socialization will be a key indicator of brand vitality. Socialize or be marginalized—this is the choice brands must make, and it is also the change that advertising and marketing companies, as brand promoters, must undergo.

Destroying an old world often gives birth to a new one. For those aspiring to become the new elite of advertising and communication in the new world, consider the following opportunities:

First, become a parasitic brand marketing company attached to social media and networks. Companies like Buddy Media, Vitrue Media, and Context Optional, which have recently gained favor from capital and brands, are such new elites. They are built on Facebook (including Twitter), with core businesses helping brands manage social media and experiment with social marketing and commerce. In October last year, Buddy Media completed a $23 million third round of financing. Such companies expand with Facebook's growth and gain explosive growth opportunities as brand investments in Facebook multiply year over year. Facebook has not only enabled super social games like Zynga but also nurtured a batch of rapidly rising social marketing companies. Similarly, Tencent, Renren, and Sina Weibo can also serve as 'rich mines' for such parasitic companies.

Second, become a symbiotic partner of social media. IPG, one of the world's top four advertising groups, was slower than WPP and Publicis in the search era, so in 2006 it bet on Facebook. It invested no more than $5 million and fully assisted in the development of Facebook's advertising system and the promotion of brand clients. Over the years, this has not only narrowed the gap with the top three competitors in the new field of digital marketing and brought considerable business revenue, but also yielded substantial investment returns—its Facebook stock valuation has exceeded $300 million. Establishing an equity symbiotic relationship beyond simple ad placement and content marketing is one of the growth strategies that large advertising groups can consider.

Third, become a 'Taobao brand' factory. 'Taobao brands' refer to original brands built on the internet. They are called 'Taobao brands' because Taobao once dominated the e-commerce field, and many original B2C brands on the internet also rose from Taobao, such as Maibaobao, Green Box, and Osa. For industries with low brand concentration, or traditional brands that need to customize new products for the internet-savvy younger generation, new marketing companies with rich brand operation experience, social network and internet promotion experience, and technical development capabilities have a huge opportunity to become 'Taobao brand' factories. In today's social wave, with numerous group-buying and large B2C platforms already scaled, the entire internet can be e-commerce. Thus, marketing companies can transform into owners or shareholders of 'Taobao brands.' If building a traditional brand may take at least 3-5 years, then a 'Taobao brand' infused with social and e-commerce genes can be established in just 6-9 months.

Fourth, become the operational driver of social e-commerce. If you lack the resources and capabilities to own a 'Taobao brand,' you can also consider helping traditional brands with e-commerce promotion, or even building social e-commerce capabilities. Social e-commerce includes seamlessly integrating e-commerce into social media and network platforms, as well as using social methods to organize traffic on e-commerce platforms and establish customer loyalty programs. Vancl's 'Fanke Daren' is such an attempt.

Fifth, become an operator for the production and distribution of social videos. In layman's terms, this is 'micro-film' operation. 'Micro-films' differ from viral videos and extended TVCs; they combine the self-propagation of viral videos with the high production quality of TVCs, while skillfully integrating brand and product appeals into a good story. Moreover, the theme must reflect the brand's core values, influence viewers' emotions, and help build an emotional bond between the brand and the audience. Typical works in recent years include Chevrolet Cruze's 'Old Boys' and JEEP's 'No Story, No Life.' 'Micro-films' provide the advertising industry with a new creative space and business opportunity. Beyond micro-films, brand-exclusive web premieres and exclusive dramas represent even greater opportunities.

Sixth, become a platform for managing brand social fans, data monitoring, and statistical analysis. Klout, which has attracted capital attention, is a service provider that measures the influence of brand fans on Twitter, LinkedIn, and Facebook. It is said that this platform can manage fans in tiers, tailor brand experiences, and develop corresponding loyalty programs and targeted marketing activities.

Seventh, become a gold digger on open internet platforms. Openness is the inevitable path to internet socialization. The degree of openness of mainstream platforms also determines the overall socialization of the internet; openness will form several major interconnected galaxies with high internal socialization. Building advertising and marketing systems within these galaxies is also a brand-new business opportunity. Tencent's Q+ and QQ Connect will nurture a batch of service companies that leverage this for marketing.

Each of the aforementioned fields is sufficient to generate 3-5 companies worth over 1 billion yuan. These opportunity seekers have already emerged in the United States, but in China, they seem to have received little attention, and at least no particularly powerful players have participated. When entrepreneurs are focusing on social network gold rush opportunities, don't forget that the industry chain supporting the gold diggers might just be the overlooked gold mine.