Web 2.0 Strategies in Marketing

Social Networking Web 2.0 Strategies in Marketing Joel Warady Principal Joel Warady Group September 23, 2008

It’s Tough Out There! New Marketing Demands More Than New Ideas It Demands a Reinvention of the Entire Organization

“Human Beings are Powered by Emotion, Not by Reason” ♥ How does this change the way you market your corporate brand?

“Trademarks are owned by companies who create them.” “Lovemarks are owned by the people who love them.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

“The essential difference between emotion and reason is that emotion leads to action, while reason leads to conclusions.”— Donald Calne, neurologist

What’s Happening Online??? • 1.4 Billion People Online • 55 trillion links between all of the pages in the Internet world • 2 million emails sent every second • 1 million instant messages sent every second • 700 billion searches via the internet in 2008 – Just for Google!

The Internet is only 5000 days old 8

Imagine what the next 5000 days will look like 9

Social Networking is… • What is it? – It is a social structure made of nodes (individuals or organizations) that are tied by one or more speciﬁc types of relations (values, visions, ideas, ﬁnancial exchange, friends, kinship, dislike, trade, web links, sexual relations, or airline routes.)

What Does That Mean? People Talking to People... Who Talk to More People.... Who Talk to Other People... Who Meet People through the other People with whom They Talk 11

What Social Networks are out there? 12

• #1 social networking site on the web • More than 124 million active users Age % of worldwide Users 3-11 1% • Over 37 million users in U.S. alone 12-17 34% 18-34 46% • Companies can create pages in which 35-49 10% customers or future customers can 50+ 8% become fans and interact with your page by leaving comments and posting Gender % of Users pictures Male 45% • Generates more than 40 billion page Female 55% views per month (50 pages per user everyday) 13 Courtesy of Quantcast.com http://business.rapleaf.com/company_press_2008_06_18.html

Facebook • Target Audience: – Age 15-35 for Both Males and Females • History – Launched February 4, 2004 – Began restricted to students of Harvard, then to all Ivy League students, then other university students followed • Today – Now available to anyone with an email address – Networks can be joined (ex. High school, place of employment, or geographic region

What’s Changed??? • “The world !!! en has shifted yg Ox from e- ine nl dO business to me ee eN business” W

Social Networking Ad Spending • $2.15 billion by 2010 – Facebook will start to dominate in 2009 • $525 million in 2007 • $180 million in 2006 – Jeep launches MySpace Jeep page • “Fish where the ﬁsh are”

Let’s take a look at a live FACEBOOK Business Page 23

Why do People Join Networking Sites? • 78% to meet people • 47% to be entertained • 38% to learn something • 23% to inﬂuence others • Consumer brand owners use the following: – Branded microsites – Customer reviews – Peer to Peer trading – Community created products

• # 2 social networking site on the internet Age % of • Has over 114 million users Users 3-11 3% worldwide 12-17 29% • U.S. audience of over 73 million 18-34 44% users 35-49 15% 50+ 8% • 230,000 new registrations per day • 2.5 times the trafﬁc of Google Gender % of Users Male 42% • Reaches more men than ESPN.com Female 58% and more women than iVillage.com 25 Courtesy of Quantcast.com http://business.rapleaf.com/company_press_2008_06_18.html

Videos about services or products can be placed directly on myspace Ads can be placed in the margins of pages Blogs can be created then linked to other social networks A company can easily link to targeted groups 26

• #7 most popular site on the internet • 68 million users a month • 75% of Americans watched an online Age % of Users video last month 3-11 3% • Companies can link to their consumers 12-17 19% very personally and provide short, 18-34 35% compelling videos, introducing 35-49 23% themselves, products, events, etc. 50+ 19% • The reach is considerable when videos Gender % of spread virally through email, websites, Users Male 49% other media platforms Female 51% 27 Courtesy of Quantcast.com Nielson/NetRatings, US only, March 2008 and YouTube.com

ad re Sp ? eo ?? id ld s V or hi W s T the Ha nd ou Ar 30

• #35 most popular site on the web • Over 19 million people visit the site per month Age % of • Host more than 2 billion images Users 3-11 3% • The top site that exclusively provides 12-17 5% the service of online storage and 18-34 41% management of photos 35-49 34% • Flickr is a database that companies 50+ 17% can utilize to upload their photos (of any type) Gender % of • Also, other social networking sites can Users Male 58% link to Flickr, allowing only one Female 42% update to affect all platforms 31 Courtesy of Quantcast.com http://business.rapleaf.com/company_press_2008_06_18.html

Photos can be tagged with keywords, which will appear on Google Image Search Photos can be divided into sets 32 to create different shows

Age % of • #11 most visited site on the internet Users 3-11 9% • Has over 40 million users worldwide 12-17 45% • The most visited social networking 18-34 31% site in the UK 35-49 10% • Averages 23 pages views per user 50+ 5% daily Gender % of • If a company currently does not offer Users Male 36% products in the UK, this is a good way to gauge enthusiasm or create a Female 64% teaser campaign 33 Courtesy of Quantcast.com http://business.rapleaf.com/company_press_2008_06_18.html

This is another platform to allow a company to be available to their consumers (potential consumers) and link to groups. 34 Can upload photos and video

• Over 25 million registered users and almost 4 million visits to the site per month Age % of User • A virtual business card rolodex. With all of your contacts on one page you can 3-11 0% connect with past, present, and future 12-17 0% clients and suppliers very easily 18-34 37% • Is unmatched with any other social 35-49 43% networking site in connecting businesses 50+ 20% or professionals to one another • More than 75% of users are college Gender % of Users educated Male 48% • LinkedIn can be utilized for referrals or Female 52% to build creditability 35 Courtesy of Quantcast.com http://business.rapleaf.com/company_press_2008_06_18.html

ot N re uA ou o If Y ,Y In ed Be nk Li st Ju ht !!! t! ig Ou M ed ck Lo 36

• Friendster has over 70 million members worldwide and is Age % of primarily used in Asia Users 3-11 0% • 39% of Friendster’s trafﬁc is 12-17 3% located in the Philippines 18-34 62% • The ﬁrst online social networking 35-49 27% site 50+ 8% Gender % of Users Male 51% Female 49% 37 Courtesy of Quantcast.com

This is another platform to allow a company to be available to their consumers (potential consumers) and link to groups, show photos, and video. 38

Age % of Users 3-11 0% • Social networking site that combines texting and 12-17 2% blogging called microblogging 18-34 43% • 340,000 Twitter members with 2,000 new accounts created everyday 35-49 36% 50+ 19% • Attracting 1.2 million visitors per month • Twitter can be used to provide short messages Gender % of about trends from trade shows being attended, Users Male 48% announcing new availability, announcing events, Female 52% or involving consumers in NPD 39 Courtesy of Quantcast.com http://blog.compete.com/2008/05/15/twitter-trafﬁc-growth-usage-demographics/

• Friendfeed reaches 29,000 people a month • Friendfeed aggregates information from Age % of many other sites that a user can build to Users 3-11 4% customized a feed made up of content 12-17 14% your friends or other collaborative sites 18-34 16% have shared 35-49 47% • The “Rooms Section” is a mini feed where topics ranging from sports teams to 50+ 18% gardening tips are discussed Gender % of Users Male 47% Female 53% 40 Courtesy of Quantcast.com

• Yelp is a online database with user- generated reviews. • 2.7 million unique users each month Age % of Users • Restaurants, nightclubs, and other 3-11 0% areas of interest in a particular 12-17 1% geological location are given 1-5 star 18-34 46% ratings 35-49 35% • Some members are classiﬁed “Yelp 50+ 18% Elite Squad” which are the most active and inﬂuential members on the site and whose reviews are most trusted Gender % of Users Male 43% Female 57% 42 Courtesy of Quantcast.com

Do You Squidoo? 44

More Social Networks of Note • Reaches 4,500 people per month • Over 500,000 monthly U.S. users • Almost 75% of users are female • Social networking site that is run by • Social journal that allows the user to Google • Although originally intended for the U.S. share their views, thoughts, and feelings about anything over 50% of Orkut’s users are from Brazil •Upcoming competitor to Twitter and India 45

The Next Big Thing? • Social Networks on a Smaller Scale (Built around a common interest) – Yelp (Real Reviews, Real People)

The Next Big Thing? • Social Networks on a Smaller Scale (Built around a common interest) – Yelp (Real Reviews, Real People) – Dogster (Dog Lovers) • 900,000 registered users – 80% female – Well-educated – $70,000+ income “Marketing Ampliﬁed by Passion”

Social Networking Targets Boomers • Eons.com – 50 years old + • Are “older” people online? – 50% of Americans +60 are online – 25% of Americans +70 are online • 20% of people over 55 expressed interest in a social networking site – Compared to 75% of 18 - 27 year old (Jupiter Research)

Eons • Target Audience: – Age 50+ for both males and females • History – Launched in July, 2006. – Founded by Jeff Taylor, founder of Monster.com • What is it? – 50+ media company inspiring a generation of boomers and seniors to live the biggest life possible. • Feedback – It’s been said that Eons felt more like a website for retirees rather than the baby boomer generation.

Ning • Target Audience: – Age 15-45 for both males and females • History – Launched in October 2005 – Offered several simple based websites • It’s unique feature – Anyone can make a full copy of the types of social networks that are popular today and customize them for a particular topic or need, catering to speciﬁc audiences. • What is it? – Tool to create a fully functional and customized social network in minutes without being a developer. – Themes and templates can be changed without using any kind of coding, only clicking and dragging.

Viral Brand Awareness • You Don’t Own Your Brand – They own your brand • Who are they??? – Customers – Users – Lovers – Haters – Competitors – The People of Earth

Viral Brand Awareness • Word of Mouth Agents – Email – Instant Messaging – Blogging – Phone – Phone Cameras • BzzzAgent – 220,000 agents

Viral Brand Awareness • WOM Agents have their most successful interaction when in store or in meetings – In Store – Work – Social Gatherings – Restaurants / Bars – School – Travel (Keller Fay Group - Boston Sept. 2006)

The Year(s) of Me-Media • You-Tube – 125 million daily downloads….DAILY!!! – Launched January 2005 – Video of Choice for My-Spacers • Nike Video – 2 1/2 minute video of Brazilian soccer star Ronaldinho • Viewed 20 million times on You-tube • Placement Cost - $0

Consumer Generated Media • CGM – Diet Coke / Mentos – 7.4 million views on You-Tube – Sales of Mentos up 14.5% in 2006 • Coke’s reaction – Cease & Desist

Consumer Generated Media • Who’s Involved? – Frito-Lay – MasterCard – Nissan – American Express • Get People Engaged – Create videos – Upload for approval

Blogs and Your Brand • 81% of online searchers read blogs – 53% read them weekly – 70% of the 53% pass the information on to others • Should you write your own Blog – Okay if you are transparent – Absolutely not acceptable if through subterfuge – Wal-Marting Across America

Mobile Marketing • US lags the rest of the world – US response to text ads - 7% – Europe response to text ads - 29% • Targeted mobile ads – 50% higher response rate – 78% of those polled said they would be willing to receive a targeted mobile ad

The Way We Connect is Changing 68

In-Game Advertising • Create ads that are dynamically added to Web 2.0 games – Ads are added dynamically via the web – Ad spend of $560 million by 2009 • Second Life (Linden Labs) – Created an online society – 1,300,000 people participating – Avatars – Stores in virtual world – Ad agencies in virtual world

Brand Journalism • Create a transparent company – Your customers and your critics are going to talk about you whether you want them to or not. – You can’t control the message! • But you can enable the dialogue… • IBM has over 125 Blogs • Ford Motor Company – www.fordboldmoves.com – 856,000 unique visitors in 1 month

Corporate Blog • Provides new content weekly to your consumers • Creates an interactive, live personality to the company, not just a static corporate feel • Enables the content to be picked up by blog feeds and consumers, it heightens awareness of the company • Easily incorporated into other platforms 73

Examples of how Your Company can use Social Networking? • Facebook Business Page focused on brand building, introducing new techniques and processes, and feeding new content. Also, connecting to targeted groups • MySpace Page focused on brand building, feeding new content, and connecting to groups • YouTube - Monthly videos of Management team, tour of facility, etc. Feature on all platforms • Flickr - Upload all new event photos, photos of the facility, etc and incorporate into other platforms • Twitter - Connect to your customers • Blog - Update 1-3 times a week. Incorporate into website 74

How will this Beneﬁt Your Company? • You can appear to be transparent to your customers: – Allowing your customer to be involved with your company (e.g. immediate customer input) will build brand loyalty and a sense of “they are listening to me” – Interactivity and constant updating will keep customers coming back to ﬁnd out what’s new and what the company is offering 75

Why Use Social Networking? • It is ALREADY happening • Many companies are currently beneﬁtting and proﬁting from utilizing some or all of the social networking resources available • Social networking sites gets you directly involved with the customer’s life and lifestyle • By using social networking sites people who have never heard about your company are getting an inside look about what your company has to offer and what other people think about it too • Connect with your customers where they live.... 76

Marketing Without Marketing: A Brand Hijack Manifesto Let go of the fallacy that your brand belongs to you. It belongs to the  market. Co-create your brand by collaborating with your customers. Scrap the focus groups, fire the cool chasers, and hire your audience. Facilitate your most influential and passionate customers in translating your brand’s message to a broader audience. Be patient. Your brand initiative could take years – or weeks – to take off. Be flexible. Carefully plan every step, but be totally open to having the story rewritten along the way. Lose control. Free yourself to seize sudden opportunities that only last for moments. Resist the paranoid urge for consistency. Embrace the value of being surprising and imperfect. Respect your community. Draw the line between promotion and the adbusting trinity of manipulation, intrusion, and co-option. Let the market hijack your brand.

Thank you! Questions: joel@joelwardy.com You can also ﬁnd me also on Facebook, LinkedIn, Twitter and Flickr 78

Web 2.0 Strategies in Marketing

by Joel Warady on May 10, 2009

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