The Dachis Group might make social media analytics software for brands, but that doesn’t mean its CEO is too hot on social media advertising.
“You wouldn’t put an ad in the middle of a phone conversation, so why do you think it is going to be effective in social media, which is another place where people communicate,” says Jeff Dachis, CEO and founder of Dachis Group. “Spend your money talking to people; social media is a place to engage, not advertise.”
Check out the video below for more of Dachis’ insights into social media spending, big data and the future of advertising.
Of course, Dachis knows a thing or two about what brands can do in the digital age. He’s best known for being the co-founder and former CEO of the famed digital agency Razorfish. The Dachis Group is his latest venture, and it now brings him over to the Big Data side of the fence. The firm’s proprietary software launched last year and it provides big data insights, social media listening, and marketing consultancy for brands.
Dachis is on a mission to convince brands to use their social media budgets to build engagement, and focus on creating brand advocates instead of spending on social media advertising. “In the future, brands are going to get built out in the voice of the customer,” says Dachis. “We find that 1/100th of a brand’s audience makes up 30% of its earned brand amplification,”
For Dachis, the evolution from being the creative to becoming the Big Data advocate was an inevitable one. However, he says the creative factor won’t be completely replaced by analytics. “Creative strategy, as opposed to being the lead will be increasingly informed by big data,” he says. Even the apparent creative genius behind real-time marketing will be based on data analysis. “To really build brands in the future, marketers are really going to have to listen to what people are actually saying.”