Learn more about WOMMA and how
we can help you improve your word

Word of Mouth of mouth marketing program at
Marketing As...
Word of Mouth Qwomma

Marketing Summit 
& Research Symposium

Social Networking: 
Marketing 1:1: Millions

Debra Aho Willi...
Who is eMarketer?  George

COWY

CEIII,  Forrester-
Research

We aggregate and analyze data from
hundreds of sources - to ...
- Social Networking Circa 2006

- Key User Metrics

- Who’s Advertising

- Social Network Ad Spending

- What’s Next in So...
Is This Your Image of Social Networking? 

 TONIGHT
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People Visit Social Networking
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Internet Users In Western Europe who visit Social
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Young People Are 2x Likely to Visit

Blog and social Networking Use among us Internet
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Yes,  Social Networking is a Buzzword

Media mentions (thru 11/30/05 and 11/30/06): 
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Average Monthly Minutes Spent by US Visitors
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Total Pages Viewed by US Visitors
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2006 Social Network Ad Spending:  $445 MM

Online Social Network Ad Spending,  2006

$500
$450
$400
$350
$300
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US Spending to Top $2B in 2010

    
     
   
 
   

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Thank you! 
Debra Aho Williamson

dwilliamson@emarketer. com

z~, ,;; :.-, -,-4..  eMarketer. 

I313 Sii$38 THE FIRST PLAC...
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  • Impressive presentation of 'Social Networking'. You've shown your credibility on presentation with this slideshow. This one deserves thumbs up. I'm John, owner of www.freeringtones.ws/ . Hope to see more quality slides from you.

    Best wishes.
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  • thanq its really nice together with helpful to me in thinking about invention comes together with think of which.... really nice work.... tanq for this.....
    Anisa
    http://financejedi.com http://healthjedi.com
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  • Nice presentation. emarketer does a great job of creating and sharing metrics.
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Social Networking

  1. 1. Learn more about WOMMA and how we can help you improve your word Word of Mouth of mouth marketing program at Marketing Association www. womma. org. This presentation is from: I ‘ . |/Vordofjwouth The Official Event for M°"k9“"9 5U'_"m'1’ ‘-‘lord 0*. ’ r. -iouth marketing “' " ’‘”‘'’‘’‘ 5’”“’°"”’" Washington, o. c.| Dec.12-13 _«. 1,—~| . word afmoufh Learn to measure and Track 1 ' ‘ Research Symposium Wort: o. 'i-.14ou; h irlarfteting 11 . O I. .Sri; mrii. ‘ Washington, D. C. | Dec. 11 .1. __ . -1 , (c) 2006 Word of Mouth Marketing Association. You may share this presentation if it is not altered in any way.
  2. 2. Word of Mouth Qwomma Marketing Summit & Research Symposium Social Networking: Marketing 1:1: Millions Debra Aho Williamson Senior Analyst, eMarketer eMarketer. THE FIRST PLACE TO LOOK
  3. 3. Who is eMarketer? George COWY CEIII, Forrester- Research We aggregate and analyze data from hundreds of sources - to make sense of the chaos of numbers and trends _‘-. "r. 30,000-foot view ____. .._; ;:=1jffZi1:"". eMarketer “To get one opinion is probably not the right way to go. ” -1»-1-»---11 eMarketer. . Slide 3 THE FIRST PLACE TO LOOK
  4. 4. - Social Networking Circa 2006 - Key User Metrics - Who’s Advertising - Social Network Ad Spending - What’s Next in Social Networking 1-1-'1--111 oMarketei: . firhlhgkfl the FIRST PLACE To Loox
  5. 5. Is This Your Image of Social Networking? TONIGHT DOUBLE THE COMEDY verve 54-more -sum. Iv-vi! no-. real mu. ». ... .4«- ». .». .~. uzcupe E‘-aw-I. » v-down -. ... r. ..-o-9. L-. .U-:1. ‘ 1. ui. (Iain: -4 n. a—m My ‘-5-M Lplnld l 5“-‘“'1'' V‘“""" l OMAR S D-AKED ASS Ialhno U ' ‘ " ' ' U 1 " I III I! ‘ I-7: V-A-—- I . ... .. , ... .= . ... ... ... .. .. . ... .. ... . noun- 9-. ’ 51nd noun“ 7 CI| .|AFl‘§ItAI! IlA§S . . . :i. L‘«t: .~; r »' Zv1l{5'l'JT1l'. : : - : ~nz: man no Ill You Ill hll >'1.l. ( . L. ’ Z»JE= l'.1IC2 : ~1~=1., _,, ,,-, ,,, ,---111,, ,,, ,,, _,, , eMarketer. Q ansuuusyu-poauu Slide 5 THE FIRST PLACE To LOOK V-1-ne'Vmv| a(-w-no-a
  6. 6. Social Networking Circa 2006 W-'-* eMarketer. “W the FIRST Puct To Loox
  7. 7. Lots of Fish in the Sea I I I O C I C C X I I V I I CI eMarketer. THE FIRST PLACE TO LOOK no-awn -pa nu-oa-
  8. 8. People Visit Social Networking Sites Regularly Internet Users In Western Europe who visit Social Networking sites at Least once a Month, by Age, 2006 (% of respondents) 16-24 32% 23% Note: Belgium, France, Germany, Italy, the Netherlands, the Nordics, Spain and the UK Source: European Interactive Advertising Association (EIAA), November 2006 078963 www. eMarketer. com " Hm! flouth «- , ,,, ,_, ,, eMarketer. lloxn-chlinludun slide 8 THE rmsr PLACE TO Loox HW_. ___w_! [|j! _
  9. 9. Young People Are 2x Likely to Visit Blog and social Networking Use among us Internet Users, by Age, July 2006 (% of respondents In each group) Visit social networking Web sites 58% 24% Have a blog 31% I 18-24 I Total Note: n: 1,000 (total) Source: RBC Capital Markets with lnsightlfxpress, August 2006 075806 www elvlarketer com gr-*, ,,: ,:, g~, -;, =~_, ,,, , eMarketer. . .,, ,., ,,. .,, .., ... .,, snceg Il<l . ..m We. r. ... .
  10. 10. Yes, Social Networking is a Buzzword Media mentions (thru 11/30/05 and 11/30/06): 2005 2006 fimyspacecom. a place for friends 28,596 fimys'3§'f. ‘?. ;.9.9n'I3 , 5,437 Source: Factiva 611 W-'. ._, ,,, -,, ,,'---, ,,, ,,, ,_, ,, eMarketer. nosn-asp-onus S| rde10 we nnsr PLACE TO LOOK 3_W0|'I'Il'l'| I xgvyo-nv-. ,.m. ... ..
  11. 11. "V 7" “ / i. —' A Ar_ P. “_. _ A, -4 “Let me ring up , €Ari_CJ3 0| ‘.3: I L? as Sumner AA S c Redstone “= ~._ -7-X. “ A/ '' “God knows what “‘A we're going to do with "S. Mvspace-” (July 200§_i, .»/ “ T: , yr“ “fr” Mg}; .. va~»»= i”'id/ M .1-I-""' Ii ms; 7’ Vim’ “me: Aw—-48" -My/1:‘ ii. ) it’ “This thing may be worth $6 billion! ” A : , AA” (November 2006) I ‘ —‘i»mr, ,«g, -;; ,¢; «,, «;, -,, ,,, A‘A, lA/ |Aarke’ter. ' P-». -~rc' s; w«—<' 1“ Slide 11 . C: 70 C ‘J, A
  12. 12. Key User Metrics “W-'-- eMarketer. “W ‘ me FIRST PLACE to Look
  13. 13. Unique Visitors Soar Then Slow US Unique Visitors to Myspace and Facebook, November 2005-October 2006 (source: comscore) UP 92% Nov-May but only 9% so May-Oct. so 0, 4o 8 5 so 5 20 10 o . o°’, o°’s§°<§°s§°s§°. <§°s§’.6°°°s§°§° 9°“ o“° 9° «‘5“e"“ >9‘ x! ~"‘ >°° >" v°§e°° 05‘ -~_, ,,, ,v, ,_'--**, ,,, __. , eMarketer. allenarclsyripoclruu S| Ide13 THE rmsr mac: ro LOOK ‘d‘~V“. "A'vIwI§‘hl . ...
  14. 14. Average Monthly Minutes Spent by US Visitors on Select Social Networking Sites (source: comscore) September September %Change 2005 2006 00 +173.1% V T .70 Facebook 135.1 + N) Total Internet 1,593 : I eMarketer. , ms ms? PLACE TO LOOK _ q‘A. Iu_A, '_ A +12.4% + V £ m D $
  15. 15. Total Pages Viewed by US Visitors To Select Social Networking Sites (source: c September 2005 9.7 Billion September 2006 /0 Change MySpace +263°/ o Facebook 2.8 Billion 7.2 Billion +160°/ o 198 Million +1,981% Cyworld Total Internet 453 Billion 462 Billion 4-2% -~-I--I A eMarketer. ’ THE FIRST PLACE TO LOOK
  16. 16. Average Session Time of US Visits To Select Social Networking Sites (source: Hitwise) September 2006 -~-I--I A eMarketer. ’ THE FIRST PLACE TO LOOK
  17. 17. Who’s Advertising “W-'-- eMarketer. “W ‘ me FIRST Fuct to Look
  18. 18. h -- l -'- -I -33 ac. ll e. !<eIe. s 0'1 SOCi3 V‘i 3'; ""’Oi'i( (not incl. ad network buys) Apple NBC “Friday Night Burger King Lights” Chase Visa Nintendo Cingular P&G Disney Sony Columbia Pictures iViCi°ria, S Secret Fania Wendy S Slide 18 A , ,i{9mmaA
  19. 19. l-": ..T. .~(. ~>i‘. l: Fania Game Room 3) ll ‘Qt, l’(", . h. ’ _i . ,“~"“-"'7" """""j ’ “i‘ . ‘ 1 ix . kl". Via A: ,-Sow- I I l l I is I l l sis" ’*' . {;I>, {“Iii" I I». . Ir. 6 A I I ' , T-7 E; ll. )/III . ,A l AA‘ ~ . . l I .33, AT"-3.r. _A, ,‘ ‘f mu; ‘ - Hf) ': ‘A ‘V J A“""‘| ‘4 I’. -‘gt’ - A A, A: l - AFl| II‘| l‘: l’_‘-'. 'I' , £IA, _.~~. .fI, A- — A gill? ‘ ‘ I I l I I l I r—~~i I * g‘_l, ‘.I' ll ll ll El , .", Wordoffloutlr rkecingsurn L s, .~». —,'P" S| Idel9 n I IT) . I: I I'D C‘). A Marketer.
  20. 20. I In larch Slynpodunl ‘.11, the ‘'1 ch" crab, our llgspace Slide 20 Efiiifl . - “Wallpaper” contest gives users utility - “Gil the crab” spot premieres on MySpace Marketer. Q ‘l‘* I '(‘ll fill I ill)’.
  21. 21. ct-_: I - I, A_, - , _. :5 , -1 I _IlC€, ‘lC"ll. _lC L3 CH 1330 J 1 ‘J @5130 - Support your local team | }A“Il'i, II_’l~ . - Enter a . ,I. ee. ,_A, A_A, A_AAAA~. A.AI, A.AAAAg. .I. , scholarship I I contest - Post videos and comments «Marketer. I . III I‘ ). A Slide 21
  22. 22. Borat have 362,713 friends. {OU COME SEE HY AIOVIEFILM TODAY! !! nu: cucx . ..- -u ' ' ex! /e ‘ '- Elfi -~. .,, ,,, ,,, ,,-I---, ,,, ,,, ,,, Marketer. .lluoarr. -nsvrlposblrl Slide 22 THE FIRST PLACE TO LOOK Q Val ~xqIv«. .u-. ,.xI. ... i.. .
  23. 23. Facebook’s New Ad Model fa(ebook Imam-a Miznnlv -uugu ‘W ''°“‘ '‘ ' News had , ,,, _, ,,_ E It-ouunuagr Iv. Pain 54 In 31'! -run ms j %MJl'l ‘OH Hill ll'34 MAI: “mu” . ... .., .mm. 9". .. ma. ,.. -.. . J , _‘_. _,_, ,' %‘ . . Kfllafllflf " ‘ 9-mama-vmnnnamusuuu. , __. ‘“. ... ,.. . "V”"“9">‘ LIIH | 'IIII1u| |lIJ&l~vV| liOIDI. Ill. OIl. lx m you w kuun my 0-94 . mm: «mm - no-nu Qmffvm " RN57-x ; I ‘M Dowvdou the Fat ti-to-School 5-mole: 4- - ‘. -. m M‘ an unc-um am an plilull m an Vvwum In -- gwm-: ~u»u--mu . ..»: -um-an _. __ Cu 25 Inc tun7|prvntdby1Yurn| .Irdlu¢odL 1' I'wv mp » mum, zv-. .. -up | l~-in- J 2: cum; you . ... .. Nutty! Ody A lrmlod run-but :1 rabbit. 1 an . '.um--g A gunmm fiq m mm mm: nu nu '4'“ _ ma. .. van W" 1 . ‘ q. . n an an pm: on g-. .. Vur‘3(nn . ... “ ' 1_ : n.. m.—u « M. .. ‘um Vnl . ... .. nu, :.4n: u.u . ... - . .1 o. /II» wyqa-. .«. n.«. . r. .. . :.. -nu. mm. min - UIM ‘I C 7%! ‘ 5 '44 X'I'IIfl1Ll'1|£GLlIII5IAi9lVhlYwCIl~| AAll' mun. .. ." ““' nun ' jg: -,4.-.4 Una» v-wu: -»-. -4uvu. .-. ..; v- r>--can “"0" IVHUVUIQVIN Cr? -VlIV'dlV‘l "'”‘ r. ‘ at-«I--4-: -uugpu-on-umn man» Is c. .. A. .- uxuwu «cw IuI| -cl vunn. [L 1114 Law -nu nrua vnu n*: .: u no r .5124": ‘raul 3.-: ~,, ,:. ;,, -,. -9:. .. eMarketer. Dfioandflwolhll Slide 23 THE FIRST PLACE TO LOOK rd-A-u -warm»-n
  24. 24. Social Network Ad Spending Estimates -W--~ eMarketer. “W ‘ the FIRST PLACE To LOOK
  25. 25. 2006 Social Network Ad Spending: $445 MM Online Social Network Ad Spending, 2006 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 MIIIIODS 2006 I Us . omside Us Source: eMarketer gr-', ,,: .:, ,,--, ,-2.. ... . eMarketer. Q anuaulvuoodun Slide 25 me nus? macs T0 Loox I-autumn-nu nnnn may
  26. 26. US Spending to Top $2B in 2010 us online social Network Ad spending, 2 I 2010 (millions) Myspace; 50% of total US social net spending Note: Definition includes general social network sites where social networking is the primary activity, " social network offerings from portals and other sites such as Orkut (Google), Yahoo! 360 (Yahoo! ) and MSN Spaces (MSN); vertical social networks devoted to a specific hobby or interest, " and social networks created by a marketer that are either stand-alone sites or part of a larger marketer site. In all cases, figures include online advertising spending as well as fees paid to social network ventures for site or profile page development source: eMarketer, October 2006 077953 www. eMarketer. com -~_, ,,, -;g-~= *,, ,,_, _,, eMarketer. . .., ... ..; ,.. ,.. ... .. Shde 25 net rm: .T VI ALT to 00x -"l~“1‘I --
  27. 27. rlt3i"; €'t'on€| 7’: €r.1;J£~3 2.3) i7i"‘= .. Who’s in the Mix: W / Australia, Germany, China (planned) Bebo: UK, Australia/ New Zealand (planned) ,5 Hi5: Spanish, French, German, Italian Plus: Cyworld (Korea), Mixi (Japan), Skyblog (France), Piczo (Canada) 200 7: Year of the global social networl(3», ... _.. ... .., rvl“ A--~‘». .Marketer. » '1 MaW°"4rk °'M°““" It iiiixiAi"“‘———~ eflngsumm - F’"r 'rt' s, w~~= - , -~ Slide 27 T) l ,1) 4;: 70 C ‘J. MySpace: Japan, UK, Ireland. Rrance: ,, .,. ,., . . Momma
  28. 28. Marketers Allocate 8% of Budget Percent of Media Budget Allocated to select Emerging Media according to us Advertising Executives. 2007 Search 27.0% 14-9% 8-4% Podcasts 8.0% ‘ Social networking 7.7% RSS 5.5% M 51% 'vide0 games 3.6% Source: American Advertising Federation (AAF), November 2006 078566 www. eMarketer, com gr-*, ,,: ,;, ,,-, -;, =*_, ,,, , eMarketer. . .., ,,, ,., ,.. ,.. .,. SW23 r. .. . ... «.n . -.. . r. ... .
  29. 29. What’s Next in Social Networking “W--°~ eMarketer. filhflugslulll ' ms FIRST PLACE TO LOOK
  30. 30. The Vertical Opportunity Members of Linkedln social Networking web site, 2003-2006 (thousands and % increase vs. prior year) |2oo3 35.1 W 1,637.1 (1,s24.0%) @4419-4 (170-°%> 2006 8,346.5 (88.9%) Source: Linkedln, November 2006,’ eMarketer calculations, November 2006 078718 www. eMarketer. com *Strong niches: Moms, Hispanics, career* -~_, ,,, ,-; ,_'-p__, ., eMarketer. a. ... ... ..; ,.. ,.. -.. ... . Slide 30 mt rmsr wuxcc TO LOOK QWDIIIITII V-1-av-claw-v-n-. ... . an
  31. 31. soc: 30.11.‘. arcs Social net sites n f r ° f E-Commerce Activities actcog. tto a/ filo Social Network Visitors, r_a "3 0 re a' (Source: American Marketi Sues: up from 60% 2.5% in 2005. 51% 51% - - 50% . . (Hitwise) 40% 30% 20% 10% 0% : .j Learn about Download Search for gift Buy products sales or get coupons ideas product discounts —'»w««-»; ~,«»~ eMarketer. s, .§‘<'-". '—"" SIIUG 31 n 1 .1» . (I: TO C‘). A
  32. 32. Search Adds Real Revenue - and Better Results fimys Noun Brown Search pace. com a place lor irierids lnvvtt Film Hail Dog Favorites lorum Results I L : . Cearanoe Sale Motcrola - awn cc» ch: rr5=. rvco wet it nguiiv wireless G-1: solectior oi laiator awn rir ginai rm MD. iQ. Li21a. Q£l| .E! i.Ql: i§5 SW09 itcrn -‘IHIWDEVG ISCOVH tlfi “Ell V00! Si 1.0.1! .1 , ,iii Cfle Slag Shofiflli I000‘: olmn-s 20 NA"! WM 37‘ I'UJiFi' ssory LcwPnce Guarantee Buy new ~ phones tram Cmqulav wireless Bu~ new -50% bvlowrelzil Stun 8- Shot toda- t: :r'i Groups Events Video! Music Comedy Cilsiifiods in of 0000! 13,400 for moioroia. (0.33 scconcsi sot: lesuhs Ivvimnvvspau-. roni/ Inotnq Jun 3 5 3:15? Nice Fhone ND - OLA Nvspue Cliches. Jun E 2026 7’ 5:5. See: me ir pink’ Srerior II. Wit Me’ i. .:.11:o . Jun ‘ ZCCG 5:53: . .. -. ,s, e , : ', ',: —'e- "7 (.11). . Slide 32 Q van-. mvv~-m-.9
  33. 33. .3 . . , ., . ..; . ' A. -, ”J3lL3- . '«‘. C "3€SLi3ii1.: .i'il I3 ii'iA33i€L| "3 lt’s showtime, tolks! “iiliySpace provides very amateur measurements. iviyspace grew so quickly they were more concerned about keeping the cables connected than about providing RO| .” — Anonymous agency executive *DEli/ i/-'. l/ D A. D.EC? U/ -". TE MEASUREIE/ l‘. EI. ’T* —'»w«m--wt» eMarketer. rkeflngslun ’-": »me-s, .r~». - .9," slide 33 n 1 .1» . «:1 1'0 c :1. A
  34. 34. Your Brand + Questionable Content = Death By Social Networking? £I3TONicHT DOUBLE THE COMEDY 1.Cede control? 2.Do scenario planning 3.Go slowly — buy “safe” content areas eMarketer. THE FIRST PLACE TO LOOK QWDIHHII V-It-ta'! h-v| up. 1.. iw-U
  35. 35. “The user-generated stuff -- we haven’t really cracked the nut there in terms of advertising on that. We obviously are getting a tremendous amount of traffic, but that’s a huge area of opportunity for us. ” — Michael Barrett, Fox Interactive Media -w-I--oi eMarketei: . ' TIE FIRST RACE 1'0 L®K
  36. 36. Promote User Engagement facebook fhuacl '. .ai:1.. . FMIEIOII T-SIIT rm-1: nun, .1‘. n. z-. .. . ..— 1.11.1.1 e11"11's': "a uairena svlrza-1-n. .t . ... .. .1uii1.. n in>~ nut n». - . DD APPI V‘ HERE Slide 35 - 31,000 members - 4 student-created groups bashing the campaign - No “comments” section — where’s the interaction? eMarketer. THE FIRST PLACE TO LOOK fiwonima . ,g,1.-. .., .,, .». ... ... .
  37. 37. But Don’t Get Too Close for Comfort kimng pi’. Jl"i - Marketing against user profiles is exciting, but risky - Pick your tags carefully - Do you want to compromise your customers’ trust? YOUiD8‘iyi‘. '."l. '§I: L0l’. '.‘ 19 K! ’ . -’-- - 0 httpzllvids. myspace. com/ index. cfm? fuseaction= vids. individua| &videoid=1481334036 . »~. I -~_, ,_-, ,,-«-, ,,, _,, ,, eMarketer. . ... ... ... ,,. .,. ... ... snug 37 THE FIRST PLACE m LOOK
  38. 38. Thank you! Debra Aho Williamson dwilliamson@emarketer. com z~, ,;; :.-, -,-4.. eMarketer. I313 Sii$38 THE FIRST PLACE TO LOOK

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