I was interviewed by ThinkTech Hawaii in the middle of October this year and actually just recently saw that it was posted online. You can view it on the site here or you can see on Tudou below (better for China based readers).

The interview serves as a good introduction to IWOM, net culture in China and a bit on CIC. After viewing it, my mom and dad said that they (finally) understand what I am doing.

If you like this, you could also check out my being interviewed by the ubiquitous Tom Doctoroff here.

Those who analyze youth and the Internet often distinguish between online and offline life. In this issue of IWOM watch, we see that this distinction is becoming less and less clear.

For example, Tencent’s Q baby forum recognizes that the relationships that develop in online communities often extend to offline by offering on the ground events to support its latest Super Q Baby campaign. Parents who have gotten to know each other online can finally meet offline.

Micat, an application that allows netizens to easily upload videos and pics taken with their phones lowers the barrier for netizens to turn their lives into a media.

Finally, Starbucks recent “A Sunny Day” “subway series” of videos rides high on the buzz that is generated through discussions and the uploading of the subway videos onto leading video sites.

In truth, young netizens don’t really make a distinction between online and offline: the Internet is simply a natural part of life. The savvy marketers and application developers who recognize this, and even more, who contribute to the blurring of these worlds, will see greater success in reaching and engaging Chinese youth.

An excerpt from IWOM watch about the Q Baby activity is below.

Summary
Tencent recently launched a Super Q Baby campaign in which parents can upload their baby's photos and netizens will vote for them for prizes. This campaign is very hot these days with many netizens, especially parents to participate in it.

In some cities, Tencent also cooperates with active parenting communities such as wawayaya.net to organize offline gatherings for this campaign.

Sample Quote
是什么形式呀？我一定参加！
What kind of activity? I will definitely participate. (link)
我也给我们瑶报个名，回去准备一下照片
Vote for my baby first, then prepare the photos. (link)
报个名先，看看时间再决定能不能参加吧！尽量去喽！！
Sign up first. I need to check the time. Try my best!! (link)

Westmama, a parenting community even launched a special column for Super Q baby campaign where netizens share photos of their babies. The discussion is very hot these days and a lot of community members participate in the conversations.

CIC View
Parenting is one of the hottest online community category we track, and one of the characteristics of these forums is for parents to show off and promote their babies. These passionate parents can be a tipping point to help the brand’s campaign take off.

Another interesting fact is that parents love taking part in offline gathering to meet their online friends and see each other’s baby.

Brands who try to be attached to the online parenting community, leveraging these 2 facts are a “must have”.

Below is a screen shot of the index for the full IWOM watch report

Other CIC IWOM Watch related posts that may be of interest:
-See another post about the blurring line between online and offline lives here
-CIC Watch Half-Year Review released (download the full report)
-CIC watch: "You" - Time's Person of the Year - also lives in China (download the full report)

On December 11th, CIC celebrated its 3rd birthday with an IWOM gathering that included all team members as well as our friends and family members. It's hard to believe that we have been doing IWOM research and consulting now since 2004.

Lucy, our marketing manager, planned the evening with great input from the team. In all my years 10 years of attending "corporate" parties in China (and 2 years in Japan), I must say that this was the most exciting, well thought out, and best executed event I have ever attended.

The evening included:
* employees signing our new tshirts,
* a viewing of my rock band's performance in Japan c. 1993 (I think this will establish that Kaiser has no competition from me as the only true musician among the digirati in China)
* a performance of "What's So Funny About Peace, Love and Understanding" by me (my Wang Fei covers were too rusty)
* our tech team self produced, rockin' video of recent tools developed
* my surprisingly brief (I can be long winded) intro to CIC's history, including pics of our "SOHO" and "BOHO" (big office home office)
* a touching overview of the company's growth in slides with lots of pics by Lucy
* an overview of Violet's time in CIC; she actually has been with me since 2003, even before there was an official CIC
* amazing performances by Clash (he is Ray Charles reincarnated), Robin (Pavarotti reincarnated?), Kevin (I never knew he could be so funny) and Frank (tech team has a new voice)

I am sure there is something I am forgetting as there was so much compelling content. Violet has a nice wrap up in Chinese here.

All in all, it was a magnificent evening that made me truly proud to be apart of CIC. It is a great beginning as we move towards an exciting 2008.

Last week, in Brandweek, Forrester's Peter Kim wrote a nice overview of "brand monitoring". See the article here.

He suggests that to succeed in IWOM today:

...you need to listen and measure before getting involved. Sticking your head in the sand isn't an option; neither is operating in 24/7 knee-jerk reaction mode to every piece of CGM related to your brand. Brand monitoring can help marketers measure and make sense of CGM by delivering aggregated cost- and labor-intensive consumer insights.

Many of the points he covers echo what we found in our IWOM summit in China with senior executives.

Peter previously put together an overview of the brand monitoring market in the West here and an later a vendor list that included international vendors such as CIC here.

If any of this interests you, you should also check out Nathan Gilliat's Net-Savvy Executive for regular updates on this space. He has personally interviewed companies all over the world in order to put together his Guide to Social Media Analysis, which includes CIC.

While a detailed definition of “Web 2.0” is often debated, most would agree that one key component is the fact that netizens are now empowered to “talk back” to the media.
In this issue of IWOM watch, we see an example of this in consumers letting detergent brand OMO know that its TVC broke social mores when the child actor in the TVC failed to apologize appropriately. We saw similar complaints against KFC, McDonald, and S-VW advertisements last year.

Consumers also “talk back” by contributing content for brand marketing campaigns (sometimes solicited, see Google China and Intel China campaigns on Tudou; sometimes unsolicited, see recent Apple fan’s TVC).

What is encouraging from what we see in all of this is that brands are not only listening to netizens through Web 2.0 platforms, they are reacting accordingly.

IWOM made OMO change its TVC?

Sample Quote
更让人气愤的是，他们都没有去道歉，反而是那样的理直气壮、全不在乎！这一广告设计，既违背了作人的基本道德原则，对儿童的危害更是严重深远！(Link)
It made me more angry that they don’t apologize at all and feel it is normal. They don’t care about these who they hurt. The ad design breaches moral principles and harms kids education.
今天早上，儿子一起看《乐乐园》时，惊喜的发现：这则广告已经加上“对不起”了！ (Link)
This morning, when watching Happy Kids with my son, I was pleasantly surprised that "sorry" was added in the TVC.

Summary
Recently, OMO released a new TVC. In the TVC, a child spilled some dirty liquid on other’s clothes. Then he just say OMO can clean that without apologizing.

The TVC has been criticized by many netizens since they thought the TVC will influence children to not say sorry to others when they make a mistake. They also said the TVC lacks moral principles.

A few weeks later, OMO revised the TVC by adding "sorry." Netizens who found the change appreciated such reaction.

CIC View
Since October 2006, we reported many cases about the IWOM impact on brand, such as KFC’s Cyberspace Woes Continue, McDonalds cancelled Yang Chenling, Starbucks out of Forbidden City.

IWOM is the content including text and multimedia related to companies, products or services shared by netizens, including brands and consumers, via online community platforms such as BBS (online message boards), blogs and video sites.

Through IWOM, consumers have more power to drive brand and influence the traditional media. In the end, Brands cannot control this "consumer" media. Thus, facing to such “IWOM driven power”, brands need to recognize IWOM in terms of paying more attention to monitor online conversation in a more systematic way.

In addition, since IWOM is more driven by consumers, brands need to consider more seriously toward consumers’ comments and respond quickly. Such reaction will be regarded as sincere efforts to listen to consumers.

Below is a screen shot of the index for the full IWOM watch report

(click image to enlarge)

Other CIC IWOM Watch related posts that may be of interest:
CIC Watch Half-Year Review released (download the full report)
CIC watch: "You" - Time's Person of the Year - also lives in China (download the full report)

As part of our recent IWOM summit activity, over the course of about 4 weeks in October and November, I had the opportunity to meet with 15 marketing communications directors, managers and CxO's from some of the most important and innovative companies in China, many of whom are from the Fortune 500 and are our clients and partners.

The purpose of the meetings was to provide an update on our experience and understanding of IWOM in China as well as to receive ideas and feedback from our clients and partners on their experiences. The IWOM summit is part of our IWOM roundtable series of events we hold several times a year (see our IWOM expert panel event from April this year here).

Background for IWOM's positioning

* There's a huge noise of advertising messages, especially in big cities like Shanghai (video screens in taxi's, advertising on escalator handrails to name a few)--WOM and IWOM are messages which can stand out from the noise
* IWOM is more credible (see here)
* IWOM is being recognized by the market research industry as a key source of consumer insight (see Nielsen and TNS purchase of Buzzmetrics and Cymfony here and here).
* IWOM is becoming a key part of the communications industry (see the growing trend of IWOM managers in PR/communication jobs here)

IWOM for Marketing Communications

Like McKinsey, we encourage clients to view IWOM from a top-down, strategic standpoint as IWOM impacts many different aspects of marketing communications. In short, IWOM is:
* Product feedback: see our IWOM whitepapers here and here
* Reputation monitor: see Dell Processor Gate here and Ford Focus oil pump recall here
* "Public" Relations (i.e. relating to the public, which is now the media): see in depth explanation of efluencer relationships here)
* Marketing: see Pepsi Creative Challenge here

Highlights of our learnings

* IWOM is shifting from a "nice to have" to a "must have": This is true for most of the clients and partners we met with. After working with us for one year, one of our clients has established a head count for an IWOM manager for 2008. Another one of our clients is using our services for PR, research and development as well as a key component of their marketing strategy for 6-8 brands next year.

* Still not sure who owns IWOM: those in the west are familiar with this issue (see here). In China, everyone is fighting for it, but it seems as if digital marketing/agencies have the edge over PR, advertising and market research.

* Systematic measurement wanted, but how to fit into existing KPI's?: All want effective measurement of IWOM marketing programs, but getting beyond simple measures like page views/unique visitors and looking at more "quality" metrics like engagement is still a challenge.

* How to manage China's complex and somewhat "managed" IWOM landscape: We would be very naive to say that seeding or fake messages and astroturfing does not exist in China. Also, we have seen the nasty extortion that can occur in mainstream media (i.e. if you advertise with us, you will see less negative coverage) extend to IWOM media (especially since most IWOM communities are owned by commercial entities). The scope of the IWOM manager role should include dealing with such unpleasantries in addition to the core of the role (understanding and building relationships with online communities).

The most recent McKinsey Quarterly (requires free registration) has a short but sweet article about how marketers can use IWOM. IWOM is so complex and can impact so many different aspects of marketing communications that they suggest taking a systematic, top down approach to understanding how best to leverage it. Thinking about China, for example, Starbucks was probably more concerned earlier this year with the Public Relations impact of IWOM when the blogosphere was a-buzz about how its store should be removed from the Forbidden City. More recently, however, with the debut of its "A Sunny Day" subway video series, they may be more interested in how IWOM is amplifying its “Advertising.”

We actually use a similar framework for our clients that we have developed specifically for the China market. This is something we shared with top marketing executives in our recent IWOM summit meetings. Although it differs some from McKinsey’s, its usefulness helps reduce confusion. Without the understanding that can come about from such frameworks, as the McKinsey article suggests, marketers may let a thousand flowers bloom for IWOM which very well cause a loss of focus on what is most important and helpful.

(Click to enlarge the image below)

I am very proud and happy to announce that CIC has received a round of strategic investment. Since our start 3 years ago, we have seen substantial interest from investors in our technology, methodology and team. Choosing the right investors has taken considerable effort and patience, not unlike choosing a partner for marriage. I must admit that we have been rather picky in choosing our partner, but this investor team is very smart and we are honored to be working with them.

The team is led by Marc van der Chijs, co-founder of Tudou (the investment has NO relationship to Tudou). Individuals in the group have experience in Internet Word of Mouth (IWOM) industry in the West, raising capital in China, taking Chinese companies IPO, Chinese online gaming as well as experience in more traditional industries within China. Marc in particular has been an incredible mentor and help to me, well before our formal relationship was confirmed. I feel so fortunate to find an investor that is so honest, ethical and all in all a “top shelf guy” (as we say in America).

CIC has experienced phenomenal growth in the last 3 years and we see no signs of this letting up. We started providing IWOM research and consulting well before anyone in China really knew what that was, and as the marketing communications industry wakes up to IWOM”s impact and importance, we expect our growth to continue. We are fortunate to have ongoing strategic relationships with the most innovative and interesting companies in the world, some lasting 3 years. Contributing to the success of companies like Pepsi, Nike, and many others which I cannot name publicly, has taught us so much. We strive to be the best in pioneering the IWOM industry in China by working with the best. Having this investment and support will help us keep ahead of the game and accelerate our growth and development even more.

When I was growing up in the US in the 1970’s, my friends and I would listen to the radio, waiting for the DJ to announce the chance for listeners to be the “10th caller” to win a new record by the coolest new band. I would then rush to the phone to frantically punch in the phone number (I swear I can type phone numbers faster than anyone, even faster than speed dial!). Such tactics by brands on one of the most powerful shared media at the time, radio, created buzz among my network of friends.

In China, we see a similar tactic updated for the medium of BBS in “grabbing the floor,” where forum administrators or others will incentivize comments by offering gifts or privilege to those who write the 100th comment or the 1000th comment etc.

Clearly, I am in different times and different countries, but it is interesting to see the parallels of opportunities for brands to leverage the preferred media of youth. As brands look to BBS and more and more to social networks like Facebook and Zhanzuo, it should be noted that there are existing practices to be learned from.

“Grab Floor” – popular netizen initiated campaign model

Sample Quote
刘翔的生日是7月13日，所以如果谁是713楼，1713，2713，3713 ......后三位是713的，格式正确，我们将送出银币100个
Liu Xiang’s birthday is July 13th, so those who occupy the floor number of conversation including 713 such as the 713th floor, 1713th floor…… We will send 100 silver coins of virtual currency.

Summary
“Grab the Floor” (占楼) is an essential component of community net culture in China. It refers to “occupying” a specific “floor” in a BBS conversation with a comment (i.e. to be the No.88 or No. 188 comment within a conversation). The person originating the thread may incentivize commenters with gifts (i.e. virtual currency) or privilege to occupy a specific floor number (i.e. whoever writes the 100th or 1000th comment will get a gift) which can lead to massive participation. (see here and here for example). Also, see above example which drove over 52,000 comments and 110,000 page views for one conversation about Liu Xiang.

CIC View
This innovative netizen campaign model provides actionable implication for brands to plan their interactive event. (i.e. brands could use this model to give away their limited edition rewards like Liu Xiang signed shoes. Such tactics are used by netizens themselves to successfully create buzz, they are more likely to be accepted and successful if used by brands in specific campaigns or other for other online activities.

Below is a screen shot of the index for the full IWOM watch report

(click image to enlarge)

Other CIC IWOM Watch related posts that may be of interest:
CIC Watch Half-Year Review released (download the full report)
CIC watch: "You" - Time's Person of the Year - also lives in China (download the full report)