I am not sure if it is traditional ad agencies or companies at fault but if companies think the answer to declining effectiveness of advertising on TV, radio and in TV is to social networking site advertising they will be in for a rude awakeing. Check out this blog posting on American Apparels activities and results and questions their ROI.

Social networking is not about another form of interput marketing. It is about community or sharing. It is about participating and engaging. It is not a one-way communication channel.

Now compare that to what Kettle Chips Inc, Wiggly Wrigglers, Lego, Dell and a host of others have done to engage and build rapport with their communities.

The problem is most ad agencies are driven by an inside-out focus. Teams of extremely clever, creative people focus on how best to get peoples attention. They know all the best techniques and practice it to a high art. Social networking is an outside-in approach. It is scary as it says we do not know what our customers are really thinking. Let's ask them and then respond. It is a cultural shift of massive proportions. For the traditional agency and client. Does it still involve adland creative people? Sure but NOT as the starting point.

Take Kettle Chips. They got many thousands of new product ideas from their customers. They could have also asked for some packaging design ideas and ad ideas. Think of it like a massive online Focus Group. Then have the 'professionals' work up the designs and the outreach (ads, DM etc) programmes. Kettle also have to ket their R&D people actually prototype the new flavours and then get them to the point they can manufacture them. Give credit to those customers who's ideas they were but take those ideas to the next level. Share the project at every step of the way so the community is involved. Seek their feedback and comments. Create a massive online buzz that can take advantage of WOM marketing. There are still all sorts of creative opportunities for community engagement. Why not a 'cook off' with two or more competing flavours? Invite customers to participate. Why not a road tour around major retailers to get tasting feedback on the 'peoples choice'? This would be a great outreach programme to non-customers as part of a 'try before you buy' campaign. Why not get the ad agency people to come up with a couple of packaging designs and have them do 'town hall meetings' to pitch their ideas?

The Grocery Manufacturers Association (GMA) of the USA has awarded Kettle Foods, Inc. one of the two 2008 Awards for Innovation and Creativity.

Kettle Foods, Inc. won the award for its annual “People’s Choice” campaign.  The campaign, which is almost totally run online, combines consumer interaction, PR and R&D into one program. According to the press reports the company has had than 11,000 new business leads, more than 7,000 new flavour suggestions, and 75,000 unique Web site visits all for a low cost investment.

As Kettle Inc they say on their web site…

“…In 2005 we realized that some of the best ideas out there came from our fans and we turned over product development to our loyal "chippoisseurs." The People's Choice campaign was born and we welcomed aboard the first winning flavors, Spicy Thai™ and Cheddar Beer™. The program has continued ever since, bringing new taste adventures to our loyal flavanatics….”

In the UK they are currently running a BBQ Chef competition. Again this is a community outreach programme. Helping the company connect with its customer base.