Corey Weiner Presentation

How social media is re-writing the advertising rules of engagement

Online Video Advertising and Social Games:

Agenda

• Social Media Makes History– The breadth and depth of this phenomenon

– Telling facts and figures

• History Repeated– How brands reacted the last time around

– Striking similarities

• Special Effects – How social media is affecting online advertising

– What’s working and what isn’t

– Analysis of strategies and tactics

• Where We’re Going– A look into crystal ball

Social Media Makes History

Social media is the most meaningful cultural change

since the advent of the Web.

Lady Gaga, Justin Bieber, and Britney Spears have more Twitter followers than Sweden, Israel, Greece, Chile,

North Korea, and Australia have citizens.

Source: Socialnomics

Source: AdAge

Social media accounts for one out of every six minutes spent online in the US.

If Facebook were a country, it would be the world’s third largest.

Source: Socialnomics

48 hours of video are uploaded to YouTube every 60 seconds.

8

Source: YouTube

Flickr hosts over 5 billion images.

9

Source: YouTube

There are 1.5 million real farmers in the world, and over 80 million FarmVille farmers.

Source: AllFacebook.com, June 2011

The social media phenomenon is changing our lives in more ways

than we might realize.

Personal communications

News and journalism

Entertainment

Sports

Dating

Politics

Job hunting & hiring

It’s even helped topple a few governments.

280 million views

History Repeated

Advertisers react to new media in predicable ways.

At first, the Web was eerily similar to 1950s television.

The Early Web

Brands as publishers“Sticky content”Few real metrics

Now, we see much of the same behavior around social media.

Today’s Version

Home pages moved to social networksA rush to go ‘viral’

A quest for ‘likes’ and sharesLittle sense of the value

But, there are benefits.

New tools and capabilities

2-way communications

Earned media

Let’s have a look at some of most common tactics advertisers are using.

Special Effects

How advertisers are using social media.

In spite of all the potential, and all the years of learning, the vast majority

online advertising is still interruptive.

Ad banners

Mastheads

Pre-roll

Road blocks

And there is potential for so much more.

Old Spice “The Man Your Man Could Smell Like”

38,099,220 views

Nike “Escribe El Futuro Version Completa”

26,335,995 views

Kia Soul“Hamsters”

16,140,386 views

The viral dream

Perception

• Discovered• Organic reaction• Friend-to-friend

Reality

• Promoted• Planned strategy• Mass medium• Significant budgets

The viral dream

The lesson: social advertising is not a hit-driven business.

Success comes from careful strategic planning, powerful

creative, and significant budget.

Here are some everyday things advertisers are doing to connect with users in social networks.

Tying tweets to status updates

Using Facebook tile ads

Special offers and coupons

Content, tools, and apps

Video distribution

There are other, more sophisticated ways to reach

these users.

Social games

Source: Facebook

Social games

53% of Facebook users play social games (19% say they’re addicted).

Source: Facebook

Social games

290 million users play social games each month - a 30% increase over 2010.

Source: Jun Group

Social games

The average social gameris a 27-year-old woman.

Source: ISG

Social games

20% of these users have paid cash for virtual goods.

Virtual currency and virtual goods are key components of successful social advertising.

Americans are expected to spend over $2.1 billion this year on

virtual goods.

Source: Inside Virtual Goods Report

Spending on virtual goods has increased 245% since 2007.

Source: In-Stat

Total global spending on virtual goods is estimated to be more than $7.3 billion.

This is expected to increase to more than $14 billion by 2014.

Source: In-Stat

• Non-interruptive• Integrated with the experience• Beneficial for user, publisher, and advertise

Social advertising takes place across multiple screens.

Currently, more than 1.2 million smartphones are sold every day.

This is a 60% increase over 2010.

Source: In-Stat

Over 70% of the world’s population now owns a mobile phone.

Source: Sybase, Inc.

Over 85% of new mobile devices are able to access the Web.

Source: Gartner 2011

By 2013, mobile video will consume 66% of total mobile data usage.

Source: eMarketer

US mobile ad spending will grow from $790 million in 2010 to over

$4 billion in 2015.

Source: BIA/Kelsey, June 2011

• Shareable• Utility• Customizable• Geographic targeting/tracking• Brand in your hand at key moments

Mobile programs have limitations, but they also offer unique advantages.

Looking Ahead

The rules are simple:

People dislike advertising, and they are increasingly empowered to avoid it.

Advertising, therefore, must meet consumers on their terms.

To be effective, social advertising must:

Entice rather than interrupt

Deliver valueEntertainEnableInformReward

Be relevant

Advertisers who understand this will reap the benefits.

Click-through rates for non-interruptive videos are 106% higher

than standard pre-roll video.

Lift in ad recall is 209% higher.

There is a 32% increase in likelihood to purchase the product.

Source: VivaKi

Completion rates for 30-second pre-roll videos average 64%, with an average click-through rate of 1%.

Source: YuMe

Completion rates for opt-in videos average 70% - 80%.

This is for videos up to 3 minutes-long.

Click-through rates average 5% - 7%.

Source: Jun Group

PreviousPrevious

Age Breakdown Gender Breakdown

1.9MM video views

5.8%+ of users went on to download recipes after the videos played

1.8%+ of users chose to view more videos

1.2%+ of users clicked through to Facebook

0.9%+ of users replayed the videos

9.7% post video interaction rate

Advertisers can, and should, demand more accountability than ever before!

• Pinpoint targeting - Age, gender, geography, habits/prefs.• Real time data & optimization• 100% transparency• Meaningful goals and metrics

And, finally, a few predictions.

Virtual currency will “game-ify” premium publishers and networks

Traditional media will become “socialized”• Hybrid online/offline campaigns• 2nd and 3rd screens

Blurred lines between mobile and desktops

Users will exert more and more control Brands will demand (and receive) greater insight and accountability than ever before

Corey Weiner212.537.0138

corey@jungroup.com

Thank You!