Real Branding Social Media 20080513 Final

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©2008 Real Branding. Confidential. All rights reserved.

Digital Marketing Innovation Series:Social Media for Marketers

Presented by: Mark Silva, Founder and Managing Director

May 13, 2008

http://www.realbranding.com/




©2008 Real Branding. Confidential. All rights reserved. 2 www.realbranding.com

AGENDA

Three takeaways about Social MediaIt’s MessyIt’s HotIt’s Game-Changing



IT’S MESSY



IT’S MESSY

FAILED SESSION TITLE:

THE TWO MOST IMPORTANT LETTERS FOR MARKETERS IN A CONSUMER-IN-CONTROL MARKET:

S & M(AS IN SOCIAL MEDIA)



IT’S MESSY

SOURCE: 2005, Markus Angermeier : Web 2.0 Mindmap


http://kosmar.de/archives/2005/11/11/the-huge-cloud-lens-bubble-map-web20/





HUH? WTF?

IT’S MESSY

Web 2.0 as defined by Wikipedia…A social phenomenon embracing an approach to generating and distributing Web content itself, characterized by open communication, decentralization of authority, freedom to share and re-use, and "the market as a conversation"

Alluding to the version-numbers that commonly designate software upgrades, the phrase "Web 2.0" hints at an improved form of the World Wide Web; suggest that technologies such as weblogs, social bookmarking, wikis, podcasts, RSS feeds (and other forms of many-to-many publishing), social software, Web APIs, Web standards and online Web services imply a significant change in web usage

Unleashing“…a trend in which people use technologies to get the things

they need from each other instead of from companies.”

- Groundswell, Charlene Li & Josh Bernoff, Forrester Research 2008



IT’S MESSY



Bookmarking

Video

Photo

Personalities = Social net/Individual

Tribes = Social Net• Regional; Clubs

Microblog

Mobile

Blog

IT’S MESSY, BUT WE’RE TRYING TO CLEAN UP

SearchAuthoritativeFan/passingRelated adsTiered media

A Social Map identifies key consumers activities and how to engage. The accretive sum of activities influence the key channel activity: Search

“The Website as we know it today is dead You need an armada of activity to reach people where they are.”

Steve Rubel, Edelman 4/22/08



IT’S HOT



IT’S HOTFAST GROWTH; LOW PENETRATION = HOT

Visitor Growth by Category (1/07-1/08)

Cat

egor

y Pe

netr

atio

n (%

of O

nlin

e U

sers

)

Source: comScore “Digital World – State of the Internet’ 3/08



IT’S HOT

GROWING FASTER THAN PORN :

SOURCE: THE ECONOMIST, 4/19/2008



IT’S HOTCONSUMERS LEADING WAY: 58% CAGR in IP TRAFFIC, 2005E-20011E

Source: Cisco Systems, Global IP Traffic Forecast and Methodology; Mobility segment (0.1% of traffic in 2007) not displayed



0

10

20

30

40

50

1 3 5 7 9 11 13 15 17 19 21 23Months (1)

Source: eBay Investor Presentation, RockYou(1) eBay starts Q2 98, PayPal starts Q1’00, Yahoo! starts Q1’95, AOL starts Q1’92, Facebook starts Q4’04, and RockYou Starts Q4’05(2) Facebook data represents active users, which was disclosed on 12/05 and 12/06. Undisclosed active user data is extrapolated by applying an average active user penetration to

global Unique Visitors (per comScore Media Metrix)

(2)

Reg

iste

red

Use

rs (M

M)

Reg

iste

red

Use

rs (M

M)

IT’S HOT

SOURCE: ROCKYOU! WEB2.0 CONFERENCE 4/2008



IT’S HOT101MM visitors +305% Y/Y (67MM+ active users), 20B minutes (4# globally behind Yahoo!, Live , and YouTube), +365 Y/Y; 250K new registrations per day since 1/07; >50% of active users return daily (Facebook 3/08, comScore 1/08)

55K regional / work-related / collegiate / high school networks (>50% outside of college); Fastest growing demographic is those 25+ years old; 85% market share of 4-year US universities (Facebook 3/08)

14MM+ photos uploaded daily; 6MM+ active users groups on site (Facebook 3/08)

Top non-US active users: UK (8MM+), Canada (7MM+), Turkey, Australia, France, Sweden, Norway, Columbia, and South Africa (Facebook 3/08)

Source: comScore global 1/08, Facebook 3/08, Morgan Stanley Research



Internet + Personal Sources = Most Important Sources Of Information

Source: USC Annenberg School: Digital Future Report 2007

IT’S HOT



IT’S GAME-CHANGING




Source: Google, Yahoo!

iGOOGLE + YAHOO! MOBILE



Wikipedia.org

Alexa Global Traffic Rankings 12/31/05; 3/12/08, Morgan Stanley Research

IT’S GAME-CHANGING2008

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3

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10

1

2

3

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2005

(U.K.)


http://images.google.com/imgres?imgurl=http://bigmarketing.files.wordpress.com/2007/05/logo_facebook.jpg&imgrefurl=http://maurozea.wordpress.com/2007/08/20/facebook-labelled-a-5-billion-waste-of-time/&h=385&w=1024&sz=25&hl=en&start=1&tbnid=EwUmSu_nwj4ZlM:&tbnh=56&tbnw=150&prev=/images%3Fq%3Dfacebook%2Blogo%26svnum%3D10%26hl%3Den%26rls%3DGGLD,GGLD:2005-04,GGLD:en

http://images.google.com/imgres?imgurl=http://images.hi5.com/images/header/logo_hi5.gif&imgrefurl=http://www.hi5.com/friend/displayToolbar.do&h=57&w=79&sz=2&hl=en&start=8&tbnid=ZHjUE5oGC48g4M:&tbnh=53&tbnw=73&prev=/images%3Fq%3Dhi5%2Blogo%26svnum%3D10%26hl%3Den%26rls%3DGGLD,GGLD:2005-04,GGLD:en

http://images.google.com/imgres?imgurl=http://www.wesbos.com/blog/wp-content/uploads/2007/04/myspace.jpg&imgrefurl=http://www.wesbos.com/blog/category/design_resources/&h=675&w=2493&sz=123&hl=en&start=4&tbnid=IU5Jt7M5DZDXUM:&tbnh=41&tbnw=150&prev=/images%3Fq%3Dmyspace%2Blogo%26svnum%3D10%26hl%3Den%26rls%3DGGLD,GGLD:2005-04,GGLD:en


IT’S GAME-CHANGINGNext-Generation Assets: YouTube + Facebook + Skype + PayPal

Users Y/Y Growth Comments

285MM(1) +94%

#3 site in global minutes; 51% of users go to YouTube weekly or more; 50% watch all video to the end; ongoing copyright challenges; 52% of 18-34 year-olds share videos with friends / colleagues often(1,3)

101MM(1) +305%#4 site in global minutes; 67MM+ active users; >50% of active users return daily; 20K application s + 95% of Facebook members have used at least one(1,4)

276MM(2) +61%

$1.67 annualized revenue per registered user (+9% Y/Y) on peer-to-peer network; 1.6B Skype Out minutes (+10% Y/Y); 11.9B Skype-to-Skype minutes (+25% Y/Y)(2)

57MM(2) +16%Payment volume +35% Y/Y; On eBay / off eBay payment volume +17% / +66% Y/Y (to 44% of TPV); Average transaction size of $68.88 (+10% Y/Y)(2)

Source: (1) comScore global 1/08; (2) eBay CQ4, Morgan Stanley Research; (3) YouTube; (4) Facebook



IT’S GAME-CHANGINGIn 5/07, Facebook opened its platform to 3rd-party developers, allowing anyone to create widgets for use on Facebook pages20K applications, 859MM instillations, 34MM usages per day since APIs opened – may be unprecedented ramp (adonomics.com 3/08)

Early to understand that individuals had the ability to innovate faster than it could, while users would govern quality / value as they customized their profiles

Application Company Installs (% Active Users)Super Wall RockYou! 28MM (8%)

Top Friends Slide 26MM (7%)

FunWall Slide 25MM (9%)

SuperPoke! Slide 21MM (2%)

Movies Flixster 20MM (3%)

Likeness RockYou! 16MM (2%)

Video Facebook 16MM(1)

Hug Me RockYou! 13MM (2%)

iLike iLike 12MM (3%)

Quizzes N/A(2) 12MM (1%)

Source: (1) Active user data unavailable; (2) E. Diep / J. Winterhalter; Source: admonmics.com 3/12/08

TOP FACEBOOK APPLICATIONS




Custom size pop-up w/ additional info appears upon mouse rollover on relevant quiz choice

646x90 banner clicks through to advertiser’s website

Text link clicks through to advertiser’s website

Application Integration: Custom Advertiser Quiz


News Feed

Mini-News Feed on Profile pages

Profile box

Notifications

Email Message

An advertiser’s custom Likeness quiz virally spreads through the a social network platform’s communication channels.

0.01% CTR for banner alone

65x better

0.65% CTR with integration



Applications can be skinned or branded with prominent placement for an advertiser with additional opportunities for sweepstakes, contests, streaming video units, and other custom programs.


Application Sponsorship





WHY FACEBOOK OVER MYSPACE?Facebook offers a social network that is both standardized + self-controlled / flexible – a highly personalized first-stop portal for online connectivity – users can program their pages with growing number of drag-and-drop applications (aka widgets)Users like the ability to express themselves + connect with friends in a protected environment where they know / trust people in their network + don’t feel exploited / spammed y intrusive ads

Source: MySpace, Facebook




Source: Facebook; C. Messina on flickr

SOCIAL MEDIA – ‘PRESENCE’ VIA MOBILE 24x7



IT’S GAME-CHANGINGBUILDING ON THE NEW LOYALTY FUNNEL—NEW ROI



IT’S GAME-CHANGINGFACEBOOK ADS



APPENDIX: MORE CONVINCING STATS THAT I DIDN’T HAVE TIME TO PRESENT



THE MOMENTUM EFFECT

How to create brand value in the Web 2.0 social networking space?Over 70% brand value is the result of consumer-to-consumer communication*The momentum effect contrasts direct exposure (B2C) to brand imagery, advertising, or indirect, second-hand exposure through another consumer (C2C)

Why?Positive impact of seeing a brand within one’s social networkConsumers react when given the opportunity to share their own story using the brand as a symbol and reference pointCommunity members become highly engaged and focused on content they create, modify, or personalize



WHAT BRANDS CAN SUCCEED?

Brands who are already experimenting with involving users’ voicesCompanies who can move fastCompanies who are open



HOW TO APPROACH THE SOCIAL MEDIA OPPORTUNITY?

Visit Drop in where your consumers are

Homestead Don’t over-stay your welcome

Rent Be part of pre-existing communities, e.g.. Community Connect

Host Utilize Ning, Pluck, etc to host an environment

Contract It Out Liveworld, Communispace

Build Yourself DIY

Monitor Google Blog Search, Buzz Metrics, Nielsen & Analyze

Visit, homestead, rent, host, contract, or DIY?



WHAT IS SOCIAL NETWORKING?

Social networking as defined by eMarketer…A site whose main purpose is to enable people to connect with others by creating personal profiles, describing their interests and sharing content

Social networking as defined by Wikipedia…Social media is an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words and pictures. Social media can take many different forms

Craft a unique identity, have a circle of friends, communicate, share

Social networking as defined by eMarketer…A site whose main purpose is to enable people to connect with others by creating personal profiles, describing their interests and sharing content

Social networking as defined by Wikipedia…Social media is an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words and pictures. Social media can take many different forms

• Internet forums• Message boards• Weblogs• Wikis• Podcasts

• Pictures• Video• Blogs• Picture-sharing• Vlogs

• Wall-postings • Instant Messaging• Music-sharing• Crowdsourcing• Voice Over IP



THE BBC! - @ www.bbc.com + Facebook + YouTube

Source: BBC



SOCIAL NETWORK FACTS

27.4m US internet users age 3 and older use social networking sites at least once a month12% of all time spent online by US internet users is on MySpace (2006)Since 2000

• Internet Increased 50%• TV Increased only 6%

Facebook: 64 million active users• Since going to the public in September 2006, its rank went from 60 to rank 6 in web traffic

Social media applications will attract over 1b broadband users within 5 yearsSocial network members tend to be younger and more engagedSocial network and widget usage

• 18-24 43% social network 43% widgets• 25-34 35% social network 25% widgets



WHO’S USING SOCIAL NETWORKING SITES?

Who has a profile?Audience size: 120MM2 out of 3 Americans

Who’s doing what?12- to 17-year-olds 260 min/month Viewed 808 pages

35- to 54-year-olds 179 min/month Viewed 560 pages

Source:http://www.emarketer.com/Article.aspx?1004636&src=article1_newsltr, Ad Age reported in October 2006


http://www.emarketer.com/Article.aspx?1004636&src=article1_newsltr


REFERENCES

Strategy Analytics, The people’s revolution: Implications of Web 2.0 and social media applications press release, December 12 2007eMarketer, Social Media Future Bright, Challenging, December 2007eMarketer, MySpace is America’s Favorite Internet Time Waster, February 2007Veronis Suhler Stevenson Study, September 2006Alexa InternetStrategy Analytics, The people’s revolution: Implications of Web 2.0 and social media applications, November 2007AdnomicscomScore Widget Metrix press release, June 2007Dynamic Logic SurveyJupiterResearch, Travel Widgets, March 2008eMarketer, Widgets Come to Online Advertising, October 2007JupiterResearcheMarketer, What Can Widgets Do?, February 2009JupiterResearch, Travel Widgets, March 2008eMarketer, Widgets Come to Online Advertising, October 2007



Building Viral Engagement

User

3. Indirect friends => focus on messaging• Focus on messaging to invite/notification receivers to drive more friends invites• Deliver increasing AND simply understood value to app w/ every friend invited (Zombies)

1. New users => build clean flows • New users absolutely key to viral engagement (vs returning user)• Focus on linear, one-action flows to maximize activation for new users• Forget registration

2. Direct friends => deliver clear value prop

• Provide clear value proposition to new user for inviting friend network (Likeness)• Ensure invitation is first/second step of new user flow to maximize viral value of user (Superlatives vs Superlatives)

4. Interested parties => allow universal use• Enable simple tools (comments, ratings, answers) that allow interaction w/o requiring full engagement w/ application (My Questions)

Direct Friends

Indirect Friends

Interested Parties




BEST PRACTICES-APPLICATION DEVELOPMENT

Frictionless: simple, less is moreAudience: on Facebook for their friendsCommunication: integrate into the viral channelsEngagement: hook users to return regularlyBusiness model: design with monetization in mindObjective: establish goals and success metricsObvious: make each page’s purpose clearKeep working: develop, test, repeat

Some rules of thumb from Context Optional



Lead Generation and Direct Response Leverage affiliate network providers at first (best offers w/ best payouts)

Affinity LabsMyOfferPalNeverblue AdsCommission Junction

Vet opportunities based on demographic mix of the application/siteSuccessful lead gen/direct response campaigns on social media include:

Mobile offers (SendMe)Dating (True, Match, SinglesNet)Education (UPheonix)

Given unlimited funding for lead gen, effective way to fill remnant inventory at higher CPMs

Actively research performance via discussion boards and directoriesBe prepared to process multiple lead gen offers to maximize performanceLead generation campaigns may burn through quickly; active management

and tracking is required

BEST PRACTICES-APPLICATION DEVELOPMENT



CONTACT INFORMATION

THANK YOU!

MARK SILVAFounder & Managing [email protected] ext 304- owww.marksilva.comwww.twitter.com/marksilva

Thanks to all the Real Branding team for helping me in pulling this off.
