Time for Maturity in Social Media
Augie RayDirector of Social Media
Prudential
@augieray #prsms
Social Media is aMarketing Medium
TheConsumer
Is InCharge
@augieray #prsms
Social Media is aMarketing Medium
TheConsumer
Is InCharge
Source: 2012 Nielsen Global Trust in Advertising report, 28,000 Internet respondents in 56 countries
@augieray #prsms
Social Media is aMarketing Medium
TheConsumer
Is InCharge
71% watch more time-shifted TV
than they did a year ago and 96% fast forward through
DVR ads.
Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5897 Participants
@augieray #prsms
Social Media is aMarketing Medium
TheConsumer
Is InCharge
Source: 2012 IBM Institute for Business Value Beyond Digital Report
@augieray #prsms
Social Media is aMarketing Medium
TheConsumer
Is InCharge
51% of consumers expect that a “like” will result in marketing
communications from brands...
But 40% do not believe it should result in marketing
communications.
Source: Exact Target, Subscribers, Fans & Followers Study, 2011
@augieray #prsms
Social media is a medium
where value is
exchanged and relationships are created mutually.
Social Media is aMarketing Medium
TheConsumer
Is InCharge
@augieray #prsms
The Value ofFans and Engagement
@augieray #prsms
More Facebook FansFewer Facebook Fans
Quick Survey: Fewer Facebook Fans More Facebook Fans
@augieray #prsms
More Facebook FansFewer Facebook Fans
Quick Survey: Less Engagement More Engagement
@augieray #prsms
Look! A Fan Surge!
10/2266,353
11/19159,577
Ban
k T
ran
sfe
r D
ay
10/20 10/23 10/26 10/29 11/1 11/4 11/7 11/10 11/13 11/16 11/19
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
@augieray #prsms
Adv
ocat
e L
oyal
cus
tom
er
Act
ive
shop
per
B
logg
er/J
ourn
alis
t
O
ccas
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l Cus
tom
er
P
rosp
ect
E
mpl
oyee
Ven
dor
Reg
ulat
or
F
reeb
ie s
eeke
r
Sw
eeps
take
r
Con
test
Hou
nd
C
ompe
titor
Dis
grun
tled
cust
omer
Det
ract
or
A
ctiv
ist
All Fans are Not Created Equal
High Value Fans Low Value Fans
+$ -$
@augieray #prsms
∑ Ue We De = Success
The Simple Facebook Equation
Fans to the power of Affinity
Affinity between user & edge creator
Weight for this edge
Time decay factor for edge
FansA *
@augieray #prsms
Adv
ocat
e L
oyal
cus
tom
er
Act
ive
shop
per
B
logg
er/J
ourn
alis
t
O
ccas
iona
l Cus
tom
er
P
rosp
ect
E
mpl
oyee
Ven
dor
Reg
ulat
or
F
reeb
ie s
eeke
r
Sw
eeps
take
r
Con
test
Hou
nd
C
ompe
titor
Dis
grun
tled
cust
omer
Det
ract
or
A
ctiv
ist
All Sources are Not Created Equal
Earn PayEarn
• Product & Service Experience• What you stand for• How you conduct business
• Product & Service Experience• What you stand for• How you conduct business
@augieray #prsms
∑ Ue We De = Success
The (Slightly Less) Simple Facebook Equation
Fans to the power of Affinity
Affinity between user & edge creator
Weight for this edge
Time decay factor for edge
Brand vector
FansA * * b
@augieray #prsms
Look! Lots of Engagement!
Company #4
Company #3
Company #2
Company #1
0% 20% 40% 60% 80% 100%
Use/Choose/Recommend
Switch
Not use/Drop/Not Want
Total Insurance Conversation Volume by Brand
Percentage of Social Media Conversations by Topic
@augieray #prsms
Progressive’s Fan Success4,501,045 likes 52,530 talking about this∑ Ue We De * =
SuccessFans to the power of Affinity
Weight for this edge
Time decay factor for edge
FansA *Brand vector
b
Affinity between user & edge creator
@augieray #prsms
The winner isn’t the brand with the most fans or engagement.
It’s the brand with the most valuable fans having the most meaningful engagement.
@augieray #prsms
The Disastrous Social Media Crisis
@augieray #prsms
7/6/09: Video posted7/7/09: 150,000 views 7/9/09: 500,000 views 8/09: 5 million views2/11: 10 million views
@augieray #prsms
@augieray #prsms
• Set the record for most-watched television event in US history.
• Earned higher average prime-time audience than the Summer Games in either Beijing or Athens.
• NBC anticipated losing $200 million on the games but instead broke even due to higher-than-expected ratings and ad revenue.
@augieray #prsms
@augieray #prsms
Bank of America reversed the debit card fee!
650,000 new credit union members!
Credit unions earned $4.5B in new deposits!
@augieray #prsms
Six months after fee announcement…
BoA stock up 55%, outperforming DJIA 280%!
Average deposit balances up $25 billion in Q4!
@augieray #prsms
cri·sis noun \ˈkrī-səs\
an unstable or crucial time or state of affairs in which a decisive change is impending;
especially : one with the distinct possibility of a highly undesirable outcome.
@augieray #prsms
The Social Media
IndustryBubble
@augieray #prsms
Social Media Echo Chamber
BlogsTwitterersResearch
NewsAppsFeedsNews
GroupsConferences
@augieray #prsms
The Mom Rule
Would my mom do this?
@augieray #prsms
The Mom Rule
Would my mom know this?
Would my mom act on this?
@augieray #prsms
Keep popping bubbles or
someone will pop them for you.
Keep blowing
bubbles—the
world needs
more
bubbles!
@augieray #prsms
Thank You
Augie Ray@augieray
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