menu

Deconstructing Social Currency

Deconstructing Social Currency
Advertising

How do brands create valuable social currency?

Paloma M. Vazquez
  • 27 april 2010

The concept of social currency is often discussed in the brand and advertising world – campaigns are tasked with creating social currency  for their brands, as a means of inserting them into the cultural conversation and theoretically generating more sustainable awareness than that generated by a standard TV commercial or promotional driver. While the need for a brand to develop  “emotional engagement” with consumers is broadly recognized as key to long-term viability – the question of how, and what constitutes a positive “emotionally engaging experience” – is  more nebulous.

Vivaldi Partners CEO Erich Joachimsthaler has co-authored a study on social currency – here defined as the extent to which people share the brand or information about a brand as part of their everyday social lives, or at home. Given recent findings that about 78% of consumers trust recommendations from others – vs. from brands – the study aims to help brands find new, more effective ways of engaging consumers. Vivaldi dimensionalizes social media by proposing six key levers of varying importance, and provides case studies on how particular brands have succeeded (or not) in generating social currency by delivering on some of these key levers. Case study brands include Toyota, Clinique, Burger King, Amazon, Apple and Google, amongst others. You might be surprised by who the study found to be successful with particular campaigns (i.e., Clinique) vs. who wasn’t (Burger King).

Some key insights from Vivaldi’s study include:

  • Social currency is a means, not an end – what matters in meaningful social currency: generating buzz or conversation does not equal success, if the buzz doesn’t add to your brand’s value, nor translate into business results
  • The relative importance of the six social currency dimensions (identity, affiliation, conversation, information, advocacy and utility) depends on a number of factors: the stage of brand development, the nature of the market of either consumers or customers, the category and industry, and others
  • Context matters. Specifically, the nature and context in which a brand is consumed/used. For example, a product that is consumed socially (i.e., beer, alcohol) may have a natural advantage towards enabling social currency, vs. a personal care brand. That said, an advantage doesn’t always equal success.

Vivaldi has made the full report available to readers via a dedicated site, or directly here.

[via: Vivaldi Partners]

Advertising
Trending

PSFK's Workplace Vision: Leave The Busywork To The Bots

Ai
Syndicated Yesterday

In Popular Games, The Recurring Theme Is Exploration

The much-hyped sci-fi sandbox game proved to be as massive as expected, while Pokémon Go continued to prove inescapable

Design Yesterday

The Best In Wearable Tech From The Rio Olympics

PSFK rounds out the Rio Games with our picks for the best gadgets and devices used to track performance

Trending

Get PSFK's Latest Report: Future of Retail: Technology Primer

See All
Advertising Yesterday

This Cookbook Is Inspired By Brad Pitt’s On-Screen Eating Habits

Learn how to whip up meals and snacks pulled straight from the actor's fictional universe

USA Yesterday

Tour The US National Parks From The Comfort Of Your Home

Google's new 360-degree video feature lets people take a trip to Alaska, Utah or Hawaii and see these marvels of nature up close

Augmented & Virtual Reality Yesterday

VR Training For Active Shooter Preparedness

SurviVR is an immersive environment to teach civilians how to protect themselves in dangerous situations

Cities Yesterday

Redesigned London Tube Map Aims To Get People Walking

The updated display illustrates approximately how many steps it takes to walk between stations for a healthier commute

Experiential Marketing Yesterday

Nike Creates An Immersive Pop-Up Fitness Experience In London

The Unlimited You space gave athletes a chance to push their limits farther than ever before

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

PSFK Op-Ed august 23, 2016

Modern Workplace Culture: No More Fat Cats Or Kissing Ass

Samar Birwadker, CEO & Co-Founder of Good & Co, on designing shared organizational values to optimize employee happiness and success

PSFK Labs Yesterday

The 10 Steps To Discover, Hire, Develop Your Next Leader

PSFK's Future of Work report outlines key steps in the employee development path to empower next-gen leaders

Automotive Yesterday

Uber Now Lets Commuters Pay With Pretax Dollars

The prepaid cards are a partnership with WageWorks, letting uberPool users save up to 40% on their trip

Home Yesterday

Philips Hue Adds Motion Sensor To Control Lights Automatically

The wireless device lets users interact with their environment without needing to press a switch

Home Yesterday

Beacon Device Takes The Pain Out Of Navigating A New Airbnb

Ping provides new guests with a guided tour of the house or apartment through a simple tap of their phone

Arts & Culture Yesterday

Shelf Makes Its Contents Appear To Hover In Midair

The design uses metal tubes to create an optical illusion when viewed from the front

Arts & Culture Yesterday

Interactive Ceiling Responds To People Walking Underneath

The installation features built-in sensors that cause the undulating surface to morph and react to passersby

INSIGHTS COVERAGE

Rio Olympics
Innovation Coverage From The Rio Games
READ NOW

Fashion Yesterday

Declutter And Recycle All Of Your Unwanted Stuff

A new app will help catalogue your possessions and give them away as donations when you no longer want them

Advertising Yesterday

Tokyo Concept Store Disguised As A Parking Garage

The retail and cafe project is designed as a hidden treasure for urban explorers

No search results found.