Evolucion o Revolucion

Social Media and Marketing:EVOLUTIONor

REVOLUTION ?

Media Landscape

Source: Internet Advertising Bureau, 2004Source: Darwin Day Conference, by Google

Marketing has changed more…..

Product proliferation and availability means more choice for the buyer……..

Source: Strike up the Brands. McKinsey & Company, December 2003Source: Darwin Day Conference, Google

1. Product Proliferation

Today, media is fragmented• 13,500 radio stations(4,400 in 1960)• 17,300 magazine titles(8,400 in 1960)• 82.4 TV channels per home(5.7 in 1960)

And the Web:• Millions of sites• Billions of pages

Source: “Left Brain Marketing,” Forrester Research (April 2004); “The Vanishing Mass Market,” BusinessWeek (July 2004)Source: Darwin Day Conference, Google

2. Media Proliferation

• Video games• Email• XBox LIVE• Websites• IM• Search

• Radio• DVD• Ring Tones• TV• Blogs• Magazines

• Satellite Radio• TiVo (Starhub PVR)• Video On-Demand• Newspapers• Podcasting• Cell Phone

3. Access Proliferation

Source: Darwin Day Conference, Google

Old Media

Mass Media Niche Media

Rea

ch

New Media

Mass Media Niche Media

Rea

ch

Digitization of Media

Source: Darwin Day Conference, Google

A radical change has occurred in theWorld of advertising and marketing

“ ”

Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf

Consumers are not listening anymore

Interruptive marketing has seen it’s day

Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf

The Audience is creating

Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf

The Audience is selecting

Time Shift technology

Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf

The Audience is changing

Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf

As a result“We are immune to advertising. Just forget it. ”

“You want us to pay? We want you to pay attention. ”

“ The Internet became a place where people could talk to other people without constraint. Without filters or censorship or official sanction — and perhaps most significantly, without advertising ”

“Don't talk to us as if you've forgotten how to speak. Don't make us feel small. Remind us to be larger. Get a little of that human touch. ”

Cluetrain Manifesto

Source: http://www.cluetrain.com

Media Scales

Source: http://darmano.typepad.com/logic_emotion/files/logic_emotion.ppt

Consumers control the online environment so brands need to think about facilitating user-created actions, not just user-generated content." Unlike newspapers and TV where the advertisers are

speaking at consumers, the Internet allows for more back and forth interaction.

Source: http://china.seekingalpha.com/article/30979

“”

The Consumer

The birth of Generation C

Control

Content

Communicate

Creativity

Channel

Creative Class

Community

Connected

Co-Creators

Cash

Consumer 2.0Conversation

Consumer Today

Source: http://darmano.typepad.com/logic_emotion/files/logic_emotion.ppt

Buys ticketsonline

Checks scoresLooks for

information about Nascar

games

Reads up on new cd releases

Reads his friend’s postings

Gets the latest updates on

favorite teams

Downloads Songs

Music Sites

Sports Sites

Blog Sites

Movie Sites

Gaming Sites

Google.com

Searches for “what’s cool”

Consumer Touch Points

Source: Darwin Day Conference, Google

Social Media 1.0

1979

Usenet

1998 -2004

BlogsPodcast

Wikis

1995

1st Social Networking Site Clasmates.com

1984

Listservs

1988

IRC

1971

Email

Social Media’s Timeline

1991

Personal Web SitesDiscussion GroupsChat

2005 and beyond>>Web 2.0 apps andUser-generated contenttake over

Source: http://www.prworks.ca/wp-content/socialmedia.ppt

Growth of social media

Social media describes the online technologies and practices that people use to share opinions, insights, experiences, and perspectives with each other (Wikipedia 2007)

What is social media?

They share one or more characteristics

Connectedness

Getting from me to them

I post on blogs and BBS because I can express myself to millions of people at once. I like the rush, and I feel empowered.

“”

Source: http://china.seekingalpha.com/article/30979

I believe the bloggers and their ideas. They are my friends and will tell me the truth, unlike

advertisements.

“”

Source: http://china.seekingalpha.com/article/30979

Digital experiences

Design CentredContent Focus

INTERACTIVITY

Marketers>Experience>Conversation>Relationship>Affinity

Source: http://www.darmano.typepad.com

The “satisfaction effect”

Source: http://www.churchofthecustomer.com

The EvolutionBROADCAST

“We tell you”

Passive readers/audience

Newspaper

Magazines

TV

$$$

Big media buys for display advertising

Examples: The New York Times, CNN

Publisher/broadcaster

Source: www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.pdf

INTERACTIVE“Tell us what you think of what we tell you”

Passive readers/audience

Newspaper

Magazines

Web Video

$Big media buys for display advertising in heavily trafficked site

Forums

Comments

RatingsSmaller, targeted media buys for contextual advertising in less trafficked parts of the site

The Evolution

Examples: nytimes.com, cnn.com

Publisher/broadcaster

$$$$$$

Source: www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.pdf

The EvolutionSocial Media“Tell each other”

Passive readers/audience

$$$

Smaller, targeted media buys for contextual advertising

Examples: Wikipedia, Slashdot, Ohmynews

$$$

Revenue Share

Pay

for l

ess

$

Source: www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.pdf

Co-creators

Collaborative Publications

Engagement is all about making it relevant to the consumer.“ ”James Speros, Chief marketing officer, Ernst & Young

People read particular magazines because of the life stages and events which currently involve them: from teenager to golfer, from

having a baby to coping with retirement.

“”Source: Henley Centre, Delivering Engagement 2004

The editorial/reader relationship is a one-to-one conversation, and in time it creates a bond of trust, of belief, expectation and empathy. It is through the quality of this relationship that an aperture or opening to the reader’s mind and heart is created, through which we advertisers can establish communication.

“

”Advertiser with Readers’ Digest

Attention Engagement

The new paradigm

Different levels of engagement

IdentificationMost basic level of engagement

Having sense of shared values and common experience,

Belonging

People who are passionate enough to devote lot of timeand/ or money

Commitment

Source: The Henley Centre/ Redwood 2003

I Believe TRUST

FAITH

ME

Summary a) Media Landscape:

- Advertising Environment

- Marketing Environment

- Long Tail

b) The Consumer:

- Generation C

- Consumer Today

- Consumer Touch Points

c) Social Media:

- Timeline

- Social Media Trend

- Social Media

- Word of Mouth

- Digital Experiences

d) Engagement

- Trust

Area of Research

MethodologySocial Media

Content Analysis Discourse Analysis Interviews Case Study

Why am I interested?

Hype Understanding, turning it to a power tool Future of Advertising

Research Questions (1)  How can the effectiveness of the advertising budget in traditional media be held accountable?  (2)  What tools can be developed to assess the expenditure of monies in the new digital media?  (3)  How can the effectiveness of internet creative messages be evaluated empirically?  (4)  What elements are necessary for online media planning to be successful?   (5)  How can interactive and traditional advertising agencies get together to do better work in the future?  (6)  How can the outcomes of traditional consumer behavior research be applied in the new digital world?  (7)  What non-traditional methodologies might be useful in addressing the concerns of the new digital world?

Thank YouThis is a standalone presentation!

This is social media!