K.gedrovics the socialization_of_brands

The Socialization of Brands Kārlis Gedrovics, Inspired

AMARA’S LAW We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run. Roy Amara, past president of The Institute for the Future. Roy Amara was a researcher, scientist and past president of the Institute for the Future. Born in Boston 1925, he has also worked at Stanford Research Institute. He held a BS in Management, an MS in the Arts and Sciences, and a Ph.D. in Systems Engineering. He died in 2007. He is possibly best known for the quotation "We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.", which was paraphrased by Robert X. Cringely, and is sometimes known as Amara's Law. The Socialisation of Brands 2

The prediction of influence over time. http://www.baekdal.com/articles/management/market-of-information/

Social media train is up and running. Fast. The Socialisation of Brands 5

Social media ARE measured globally. by Universal McCann WorldWide.

Social media ARE tracked. 5 years, since 2006

The expanding Wave universe Wave 5 Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Wave 4 Czech Republic Denmark Australia Ecuador Austria Egypt Belgium Estonia Brazil France Canada Germany China Hong Kong Colombia Hungary Wave 3 Czech Republic India Denmark Italy Australia Ecuador Ireland (ROI) Austria Finland Japan Brazil France Korea Canada Germany KSA China Hong Kong Kuwait Czech Republic Hungary Latvia Wave 2 Denmark India Lebanon Lithuania France Italy Malaysia Australia Germany Japan Mexico Netherlands Brazil Greece Korea Norway China Hong Kong Latvia Oman France Hungary Lithuania Philippines Poland Wave 1 Germany India Malaysia Portugal Greece Italy Mexico Qatar Australia India Japan Netherlands Romania Brazil Italy Korea Norway Russia China Japan Mexico Peru Serbia France Korea Netherlands Philippines Singapore 37,600 54 Germany Italy India Japan Korea Malaysia Mexico Pakistan Philippines Russia Pakistan Philippines Poland Romania Russia Poland Portugal Romania Russia Singapore Slovakia South Africa Spain Sweden Taiwan respondents countries Mexico Singapore Spain South Africa Thailand Philippines Spain Switzerland Spain Tunisia Russia Taiwan Taiwan Sweden Turkey Spain Thailand Turkey Turkey UAE UK UK UK UK UK US US US US US The Socialisation of Brands 9

The social challenge for brands The Socialisation of Brands 10

The new social landscape Means and motives 11

Unprecedented diversity. 1 to 1 communication.

Understanding means and motives Q: “Which of the following do a good job when you want to...” Be creative Stay in touch with 50 Change opinions friends Share new experiences 40 Earn respect 30 Explore the world Share knowledge around me 20 Seek other people's Express yourself opinions 10 0 Promote yourself Feel like you belong Meet new people Hang out or waste time Manage my life better Have Fun/be entertained Make money Keep up to date Make contacts for work Learn something new Instant Messenger Message Boards Blogs Video Sites The Socialisation of Brands 13

Multi-faceted social networks Q: “Which of the following do a good job when you want to...” Be creative Stay in touch with 50 Change opinions friends Share new experiences 40 Earn respect 30 Explore the world Share knowledge around me 20 Seek other people's Express yourself opinions 10 0 Promote yourself Feel like you belong Meet new people Hang out or waste time Manage my life better Have Fun/be entertained Make money Keep up to date Make contacts for work Learn something new Instant Messenger Message Boards Blogs Video Sites Social Networks The Socialisation of Brands 14

The Socialisation of Brands 15

A wastly diverse ecosystem. 16

Are LV, EE, LT much alike?

Q: “Which of the following do a good job when you want to...” Be creative Be creative Stay in touch with Stay in touch with 50 50 Change opinions Change opinions friends friends Share new Share new 40 Earn respect 40 Earn respect experiences experiences 30 Explore the world 30 Explore the world Share knowledge Share knowledge around me around me 20 20 Seek other people's Seek other people's Express yourself Express yourself opinions 10 opinions 10 0 Feel like you 0 Promote yourself Promote yourself Feel like you belong belong Hang out or waste Meet new people Hang out or waste time Meet new people time Manage my life Have Fun/be better entertained Manage my life Have Fun/be better entertained Make money Keep up to date Make contacts for Learn something Make money Keep up to date work new Make contacts for Learn something work new Be creative Stay in touch with 50 Change opinions friends Share new 40 Earn respect experiences 30 Explore the world Share knowledge Instant Messenger around me 20 Seek other people's Message Boards opinions 10 Express yourself Blogs Promote yourself 0 Feel like you belong Video Sites Hang out or waste Meet new people time Manage my life Have Fun/be better entertained Make money Keep up to date Make contacts for Learn something work new The Socialisation of Brands 18

Multi-faceted social networks (Latvia) Q: “Which of the following do a good job when you want to...” Be creative Stay in touch with 50 Change opinions friends Share new experiences 40 Earn respect 30 Explore the world Share knowledge around me 20 Seek other people's Express yourself opinions 10 - Promote yourself Feel like you belong Meet new people Hang out or waste time Manage my life better Have Fun/be entertained Make money Keep up to date Make contacts for work Learn something new Tērzēšana tiešsaistē Zi ojumu dē i Blogi Video mājas lapas Sociālie tīkli The Socialisation of Brands 19

Multi-faceted social networks (Lithuania) Q: “Which of the following do a good job when you want to...” Be creative Stay in touch with 50 Change opinions friends Share new experiences 40 Earn respect 30 Explore the world Share knowledge around me 20 Seek other people's Express yourself opinions 10 - Promote yourself Feel like you belong Meet new people Hang out or waste time Manage my life better Have Fun/be entertained Make money Keep up to date Make contacts for work Learn something new Instant Messenger Message Boards Blogs Video Sites Social Networks The Socialisation of Brands 20

Multi-faceted social networks (Estonia) Q: “Which of the following do a good job when you want to...” Be creative Stay in touch with 50 Change opinions friends Share new experiences 40 Earn respect 30 Explore the world Share knowledge around me 20 Seek other people's Express yourself opinions 10 0 Promote yourself Feel like you belong Meet new people Hang out or waste time Manage my life better Have Fun/be entertained Make money Keep up to date Make contacts for work Learn something new Instant Messenger Message Boards Blogs Video Sites Social Networks The Socialisation of Brands 21

Social networks in Baltics Q: “Which of the following do a good job when you want to...” Be creative Stay in touch with 50 Change opinions friends Share new experiences 40 Earn respect 30 Explore the world Share knowledge around me 20 Seek other people's Express yourself opinions 10 - Promote yourself Feel like you belong Meet new people Hang out or waste time Manage my life better Have Fun/be entertained Make money Keep up to date Make contacts for work Learn something new Latvia Lithuania Estonia World The Socialisation of Brands 22

Baltics. The history path of social networks differs.

The gravitational pull of social networks The Socialisation of Brands 24

Growing fast 90% 80% Create a profile on a 70% social network 60% 50% Manage a % Ever Done profile on a 40% social network 30% 20% Visit a friend's social network 10% page 0% Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 2006 2007 2008 2009 2010 Q: “Thinking about the internet, which of the following have you ever done?” The Socialisation of Brands 25

Are we moving to parallel, yet connected dimension?

A pull of people... 60 Face to face 50 Phone Text message 40 Number of people Email 30 Instant Messenger 20 Social Network 10 My personal blog Forum/message 0 Wave 3 2008 Wave 4 2009 Wave 5 2010 boards Q: “Approximately how many people do you stay in contact with in your personal life through the following means?” The Socialisation of Brands 27

Here in Baltics travel distances are little. It’s easy and affordable to see each other in real life.

A pull of people... Social Networks stand out 60 among digital means of Face to face staying in contact Phone 50 Text message Email Instant Messenger 40 Social Network Number of people My personal blog Forum/message boards 30 20 10 0 Wave 5 2010 Estonia Latvia Lithuania Q: “Approximately how many people do you stay in contact with in your personal life through the following means?” The Socialisation of Brands 29

Are social networks taking it all?

Blogs & forums move away from personal topics Q: “When you read blogs, which of the following types of blogs do you read most often?”- Amongst those who have read a blog in the last 6 months, “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months 50% Personal Blogs (diary sites) 45% Family/friend Blogs 40% Write a blog on my social network 35% 30% 25% 20% 15% 10% 5% 0% Wave 3 2008 Wave 4 2009 Wave 5 2010 The Socialisation of Brands 31

Blogs & forums move away from personal topics Q: “When you read blogs, which of the following types of blogs do you read most often?”- Amongst those who have read a blog in the last 6 months, “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months Writing blogs on social network sites 40% still not popular in the Baltics Personal Blogs (diary sites) Family/friend Blogs 35% Write a blog on my social network 30% 25% 20% 15% 10% 5% 0% Wave 5 2010 Wave 5 Baltics The Socialisation of Brands 32

The future face of social media 33

The new engine of social media The Socialisation of Brands 34

Smartphone ownership drives mobile internet use Q: % of people who access the internet via a mobile device and the % of smartphone owners who access the internet via a mobile device 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% GLOBAL Estonia Latvia Lithuania Mobile phone owners Smart phone owners The Socialisation of Brands 35

Mobile internet is the next king.

A connected generation The Socialisation of Brands 37

The Socialisation of Brands 38

Alarming trend?

Are people moving away from traditional brand spaces online? Q: “Thinking about using the internet, have you visited an official brand/company website in the last 6 months?” 90% 90% 88% 88% 86% 86% 84% 84% 82% 82% 80% 80% 78% 78% 76% 76% 74% 74% 72% 72% 70% 70% Wave 3 2008 Wave 4 2009 Wave 5 2010 Wave 5 2010 Baltics The Socialisation of Brands 40

Are marketers following consumers?

There is certainly a move towards engaging brands in social spaces Q: “Which of the following have you done with your social networking profile?” -Amongst those who have used a social network in the last 6 months” 50% Wave 4 2009 40% Wave 5 2010 30% 20% 10% 0% Affiliate with or become a Join a group fan of a brand The Socialisation of Brands 42

There is certainly a move towards engaging brands in social spaces Q: “Which of the following have you done with your social networking profile?” -Amongst those who have used a social network in the last 6 months” 60% Wave 5 2010 50% Wave 5 2010 Baltics 40% 30% 20% 10% 0% Affiliate with or become a fan of a Join a group brand The Socialisation of Brands 43

Is this true for all categories?

All categories come close. Health Movies Music Telecomms 75% 74% 73% Travel 71% 71% Food Cars Software 70% Finance 63% 71% 67% Q: Amongst those who show an interest in an category, how many want an interaction with companies in that category (i.e. At least one or more interaction). These included a range of interactions from getting access to advance news of products to being able to access decision makers and influence product development The Socialisation of Brands 45

So why are people joining brand communities?

Wast variety of resons to join. Q: Agreement with the descriptions of why they joined a brand community amongst those have ever joined a brand community online by region. To support a cause I like 100% To share my To get advance news 80% appreciation with of products others 60% 40% To associate with Because it was 20% something I think is recommended to me cool 0% To learn more about To fill time/have fun it To feel part of a like- To get free content minded community LatAm Middle East & Africa Asia & Oceania North America Europe The Socialisation of Brands 47

What is the benefit to brands?

Benefits clearly are there! Q: “As a result of joining a brand community, please indicate how much you agree with the following statements?” 72% 71% 66% 63% “I thought more “I am more likely to “I felt more loyal “I recommended positively of the brand” buy the brand” towards the brand” others to join” The Socialisation of Brands 49

Different categories, different needs Q: “Thinking about companies in the following categories, which of following statements describes the kind of interaction you would like to have with these companies?” amongst those who show an interest in the category. Access to fun and entertaining content 50% Contact employee decision makers & Access to breaking influence product 40% news development 30% 20% Tools help express creativity & make 10% An opportunity to learn something worth something new sharing 0% An opportunity to Access to unique events develop my skills or competitions A personal response to Communicate & share my issues/complaints experiences with others Movies Health & well being The Socialisation of Brands 50

The impact Social media is an incredibly dynamic environment. Terms like “friend” and “influencer” are no longer adequate to describe the array of social activity and interaction that is occurring amongst the vast communities now being built online. A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users. Social networks are becoming powerful hubs of interconnected communities but it’s not just people that are connecting in the social media space. There is huge demand for a more social and interactive relationships with brands and companies. There is more possibilities for consumers to interact and effect products, delivery and here social meda plays important role. Almost half of the Active Internet Universe has already joined a brand community. These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty, endorsement and sales. However, understanding the nature of social demand for each consumer, category and market is the key to creating a successful social media experience. The Socialisation of Brands 51

If you’re not on that train just yet, catch it while you can! There’s a seat reserved for you... 52

PS. Inspired – short facts 53

Inspired – short facts • Young media agency (y2005), that is transforming to multi- discipline communications agency. • No2 media agency in 2009 by turnover and No3 media agency in reputation top in 2010. • Affiliated to media agency to Universal McCann (IPG), yet operating fully independently; • 38 employees (including all units); • Strategic punks and rebels. 54

Thank you! www.inspired.lv www.inspired.lv/blog/ www.facebook.com/Inspired.lv http://twitter.com/inspiredlatvija

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