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Web 2.0 – Risk and Reward

November 19, 2008

Posted by: Michael Deichmiller in Online

In this Web 2.0 world that we live in, consumer control is abundant.  Corporations and brands have both suffered and benefited from these risky, yet sometimes rewarding media placements as you’ll see below.

Suffered - In a recent post to CNN’s iReport – a Web 2.0 user generated news sitelet of CNN.com – an erroneous story appeared that claimed Apple CEO, Steve Jobs had suffered a massive heart attack.  During the 12 minutes that the story was posted, before being flagged and removed by other community users, Apple’s shares plummeted approximately 10%. 

Benefited - H&R Block recently ran a multi-platform media campaign, including Web 2.0 properties such as YouTube, Second Life, Twitter and MySpace, which helped them increase awareness for their digital products 43% in 12 months.  Although extremely labor intensive, the digital campaign made up only about 5% of H&R Block’s digital marketing budget, making it extremely efficient.

Although the CNN example is not a true “media” placement, it demonstrates the risk that comes with consumer control.  On the other hand, H&R Block’s successful use of social media helped them to elevate their brand beyond what could have been achieved through more traditional placements.  As in gambling, no risk…no reward. 

A carefully thought-out media recommendation that includes Web 2.0 elements must also include strategies to monitor and minimize the risk associated with this ever-changing, user generated landscape.  Agencies must consider the client’s risk tolerance when recommending these placements and clearly identify the opportunities that will best suit their client’s media and marketing objectives.  Depending on client, product and corporate structure, Web 2.0 placements are going to become more common place and with that, the need for smart, well thought-out, media solutions will continue to grow.