User-Generated Content What Happens When People Have the Power? Paul Verna Senior Analyst, Digital Media & Entertainment |...
User-Generated Content <ul><li>What Happens When People Have the  Power ?  </li></ul>|  June 30, 2010 <ul><li>Who we are <...
|  June 30, 2010 eMarketer Sees and Analyzes Information from Multiple Sources
|  June 30, 2010 eMarketer Sees and Analyzes Information from Multiple Sources 30,000-foot view
What is user-generated content? <ul><li>? </li></ul>|  June 30, 2010 User-generated content  (UGC), also known as Consumer...
What is user-generated content? |  June 30, 2010
What is user-generated content? |  June 30, 2010 grainy poorly composed unevenly lit unprofessional uninteresting So … why...
What is user-generated content? |  June 30, 2010 MySpace had an  80% market share of visits  among social networking sites...
What is user-generated content? |  June 30, 2010 It was also the  top Web site in the UK featuring UGC  in July 2006 -- ah...
What is user-generated content? |  June 30, 2010
What is user-generated content? |  June 30, 2010 Photobucket is the leader in photo sharing, with  40% of the US market,  ...
What is user-generated content? |  June 30, 2010 officemax.com – “Elf Yourself” 36 million visits 11 million created  and ...
What is user-generated content? |  June 30, 2010 “ One of the most important results of [the] viral push was that it  held...
<ul><li>? </li></ul>|  June 30, 2010 What drives the UGC revolution? Democratization  of content Easy-to-use  tools The In...
UGC “through the ages” ;-) |  June 30, 2010
UGC “through the ages” ;-) |  June 30, 2010
UGC “through the ages” ;-) |  June 30, 2010
UGC “through the ages” ;-) |  June 30, 2010
<ul><li>? </li></ul>|  June 30, 2010 What does this mean to marketers?
|  June 30, 2010 073912 Attitudes of US Advertising Executives toward  Advertising on a Blog or User-Generated Content Sit...
Who is  consuming  UGC  in the US ? |  June 30, 2010 75M 101M Source:  e Marketer , June 2007
Who is  consuming  UGC  worldwide ? |  June 30, 2010 128M 254M Source:  e Marketer , June 2007
Who is  creating  UGC  in the US ? |  June 30, 2010 64M 95M Source:  e Marketer , June 2007
Who is  creating  UGC in the US? |  June 30, 2010 35%  of US Internet users have  created and posted  content online -- Pe...
Who is  creating  UGC in the US? |  June 30, 2010 40%  of US Internet users are creating their own user-generated content ...
Who is  creating  UGC  worldwide ? |  June 30, 2010 118M 238M Source:  e Marketer , June 2007
Case Study: Mentos/Diet Coke |  June 30, 2010
Case Study: Mentos/Diet Coke |  June 30, 2010 Mentos sales  increased 15% following the viral campaign and  stayed 5% ahea...
Case Study: Chevy Tahoe |  June 30, 2010
Case Study: Chevy Tahoe |  June 30, 2010 “ We anticipated that there would be  critical submissions  … We knew we were goi...
|  June 30, 2010 Case Study: MasterCard
|  June 30, 2010 Case Study: MasterCard
<ul><li>? </li></ul>Is user-generated content “a fad”? |  June 30, 2010 Grainy video of yellow lab puppy =  FAD Having 2,1...
Is user-generated content “a fad”? |  June 30, 2010 Source:  e Marketer , June 2007 75 MILLION  can’t be wrong 101 MILLION...
Is user-generated content “a fad”? |  June 30, 2010 “ User-Generated Content (UGC) Is  Not a Fad ” “ In our recent online ...
<ul><li>? </li></ul>Can UGC be monetized? |  June 30, 2010
Can UGC be monetized? |  June 30, 2010 “ We believe the answer is  ‘Yes.’ ” “ Text-based UGC (like blogs and social networ...
US  ad revenues at UGC sites |  June 30, 2010 $1B $4.3B 43% CAGR Source:  e Marketer , June 2007
Worldwide  ad revenues at UGC sites |  June 30, 2010 $1.6B $8.2B 51% CAGR Source:  e Marketer , June 2007
Tips & Takeaways |  June 30, 2010 User-generated content is  NOT A FAD Don’t underestimate the  size of the audience  … or...
Questions? Comments? Feedback? |  June 30, 2010
Questions? Comments? Feedback? |  June 30, 2010 To get a copy of this presentation, please drop by with a business card or...
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User-Generated Content (July 2007)

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User-Generated Content (July 2007)

  1. 1. User-Generated Content What Happens When People Have the Power? Paul Verna Senior Analyst, Digital Media & Entertainment | June 30, 2010
  2. 2. User-Generated Content <ul><li>What Happens When People Have the Power ? </li></ul>| June 30, 2010 <ul><li>Who we are </li></ul><ul><li>What is user-generated content? </li></ul><ul><li>What does UGC mean for brand marketers? </li></ul><ul><li>Who are the creators – and consumers – of UGC? </li></ul><ul><li>Case studies </li></ul><ul><li>UGC FAQ: </li></ul><ul><ul><li>Is UGC a fad? </li></ul></ul><ul><ul><li>Can it be monetized? </li></ul></ul><ul><li>How much ad revenue will UGC sites realize? </li></ul><ul><li>Tips & takeways </li></ul><ul><li>Q&A </li></ul>
  3. 3. | June 30, 2010 eMarketer Sees and Analyzes Information from Multiple Sources
  4. 4. | June 30, 2010 eMarketer Sees and Analyzes Information from Multiple Sources 30,000-foot view
  5. 5. What is user-generated content? <ul><li>? </li></ul>| June 30, 2010 User-generated content (UGC), also known as Consumer Generated Media, refers to various kinds of media content that are produced by end-users (as opposed to traditional media producers such as professional writers, publishers, journalists, licensed broadcasters and production companies). source: Wikipedia
  6. 6. What is user-generated content? | June 30, 2010
  7. 7. What is user-generated content? | June 30, 2010 grainy poorly composed unevenly lit unprofessional uninteresting So … why do we care? 1,257,245 views 5,803 comments “ Favorited” 4,395 times
  8. 8. What is user-generated content? | June 30, 2010 MySpace had an 80% market share of visits among social networking sites in the US in February 2007 (Hitwise) Projected US ad spending on MySpace: 2007: $525M 2008: $820M ( e Marketer, May 2007) “ God knows what we’re going to do with MySpace.” -- Rupert Murdoch, chairman, News Corp., Wired, July 2006
  9. 9. What is user-generated content? | June 30, 2010 It was also the top Web site in the UK featuring UGC in July 2006 -- ahead of MySpace and YouTube (comScore Media Metrix) Wikipedia was the top education/reference Web site in the US, ranked by visits, in March 2007 (Hitwise)
  10. 10. What is user-generated content? | June 30, 2010
  11. 11. What is user-generated content? | June 30, 2010 Photobucket is the leader in photo sharing, with 40% of the US market, by visits (Hitwise) Photobucket’s projected 2007 ad revenues = $25M (Photobucket data) MySpace acquired Photobucket for $250M
  12. 12. What is user-generated content? | June 30, 2010 officemax.com – “Elf Yourself” 36 million visits 11 million created and e-mailed worldwide 2 million Google inquiries peak visitor rate: 11 visitors per second -- or 950,000+ per day 20% increase in online traffic during holiday period $2.5M in “free” media -- Good Morning America, USA Today, MSNBC, VH1, Entertainment Weekly
  13. 13. What is user-generated content? | June 30, 2010 “ One of the most important results of [the] viral push was that it held the interest of consumers, most of whom spent six to nine minutes playing with the make-your-own monkey emails.” -- Wall Street Journal, 12/22/06 careerbuilder.com, “Monk-e-mail” 80 million Monk-E-Mails were played in 2006 careerbuilder.com site traffic rose by 34% in 2006 “ One of the most important results of [the] viral push was that it held the interest of consumers, most of whom spent six to nine minutes playing with the make-your-own monkey emails.” -- Wall Street Journal, 12/22/06
  14. 14. <ul><li>? </li></ul>| June 30, 2010 What drives the UGC revolution? Democratization of content Easy-to-use tools The Internet as a distribution medium Low cost of entry “ cool” factor
  15. 15. UGC “through the ages” ;-) | June 30, 2010
  16. 16. UGC “through the ages” ;-) | June 30, 2010
  17. 17. UGC “through the ages” ;-) | June 30, 2010
  18. 18. UGC “through the ages” ;-) | June 30, 2010
  19. 19. <ul><li>? </li></ul>| June 30, 2010 What does this mean to marketers?
  20. 20. | June 30, 2010 073912 Attitudes of US Advertising Executives toward Advertising on a Blog or User-Generated Content Site, 2006 (% of respondents) Useful for niche advertising, but will not have an effect on major accounts User-generated content site 41% Blog 81% 76% 70% 62% Note: n=140 advertising industry leaders Source: American Advertising Federation (AAF), “Survey on Digital Media Trends,” June 2006 www. e Marketer.com Advertisers should exploit the viral marketing opportunities 91% Concerned about the ability to control brand/product image Too risky to advertise with due to lack of predictability of the editorial environment 67% 53%  
  21. 21. Who is consuming UGC in the US ? | June 30, 2010 75M 101M Source: e Marketer , June 2007
  22. 22. Who is consuming UGC worldwide ? | June 30, 2010 128M 254M Source: e Marketer , June 2007
  23. 23. Who is creating UGC in the US ? | June 30, 2010 64M 95M Source: e Marketer , June 2007
  24. 24. Who is creating UGC in the US? | June 30, 2010 35% of US Internet users have created and posted content online -- Pew Internet & American Life Project
  25. 25. Who is creating UGC in the US? | June 30, 2010 40% of US Internet users are creating their own user-generated content -- Deloitte & Touche USA/ Harrison Group
  26. 26. Who is creating UGC worldwide ? | June 30, 2010 118M 238M Source: e Marketer , June 2007
  27. 27. Case Study: Mentos/Diet Coke | June 30, 2010
  28. 28. Case Study: Mentos/Diet Coke | June 30, 2010 Mentos sales increased 15% following the viral campaign and stayed 5% ahead of benchmarks Coke sales rose 5%–10% following the Mentos craze 3.5 million hits on eepybird.com 5 million views on revver.com in 6 weeks 251 liters of Diet Coke 1,506 Mentos mints Marketing support from Coke and Mentos Featured on Letterman, Today Show, NPR, WSJ, etc.
  29. 29. Case Study: Chevy Tahoe | June 30, 2010
  30. 30. Case Study: Chevy Tahoe | June 30, 2010 “ We anticipated that there would be critical submissions … We knew we were going to get some bad with the good. It’s part of playing in this space.” -- Chevrolet spokeswoman Melisa Tezanos Voted No. 4 on CNN Money’s list of the 101 Dumbest Moments in Business for 2006.
  31. 31. | June 30, 2010 Case Study: MasterCard
  32. 32. | June 30, 2010 Case Study: MasterCard
  33. 33. <ul><li>? </li></ul>Is user-generated content “a fad”? | June 30, 2010 Grainy video of yellow lab puppy = FAD Having 2,100 “friends” = FAD Living your life through an avatar = FAD The power to influence brand perception = PRICELESS The power to shape political discourse = PRICELESS The power to easily create and share ideas, songs, photos, videos, films, articles, blog entries, inventions, etc. = PRICELESS My 2¢?
  34. 34. Is user-generated content “a fad”? | June 30, 2010 Source: e Marketer , June 2007 75 MILLION can’t be wrong 101 MILLION can’t be wrong
  35. 35. Is user-generated content “a fad”? | June 30, 2010 “ User-Generated Content (UGC) Is Not a Fad ” “ In our recent online video survey, UGC is the No. 1 and No. 2 most popular content category among men aged 18-34 and among all respondents, respectively.” “ UGC now accounts for 13% of total U.S. Internet traffic, up from 0%-1% in 2004.”
  36. 36. <ul><li>? </li></ul>Can UGC be monetized? | June 30, 2010
  37. 37. Can UGC be monetized? | June 30, 2010 “ We believe the answer is ‘Yes.’ ” “ Text-based UGC (like blogs and social networks) has been monetized through paid search.” “ In a video-centric broadband world, targeted video advertisement could be one monetization mechanism.”
  38. 38. US ad revenues at UGC sites | June 30, 2010 $1B $4.3B 43% CAGR Source: e Marketer , June 2007
  39. 39. Worldwide ad revenues at UGC sites | June 30, 2010 $1.6B $8.2B 51% CAGR Source: e Marketer , June 2007
  40. 40. Tips & Takeaways | June 30, 2010 User-generated content is NOT A FAD Don’t underestimate the size of the audience … or its level of engagement Provide easy-to-use UGC tools … but don’t lose control of your brand Let go HAVE FUN !!
  41. 41. Questions? Comments? Feedback? | June 30, 2010
  42. 42. Questions? Comments? Feedback? | June 30, 2010 To get a copy of this presentation, please drop by with a business card or contact me at: [email_address] THANKS!!

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