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Social Media @Home and @Work: Understanding Who Is Using and Why Caroline Dangson Research Analyst  New Media and Entertai...
Agenda <ul><ul><li>How does IDC define social media? </li></ul></ul><ul><ul><li>What is the size of the market? </li></ul>...
What Is Social Media? <ul><li>user generated content (text, audio, images, and video) that is published online to be viewe...
Widespread Social Networking Usage <ul><li>One out of two online Americans uses social networking services (SNS)  </li></u...
Social Media Began with the Consumer Internet  <ul><ul><li>Connect with groups of friends based on interests – Yahoo! Grou...
Consumers Began Using Social Media Tools for Work Purposes <ul><ul><li>Connect with colleagues based on work interests – G...
Consumers Began Using Social Media Tools for Work Purposes <ul><ul><li>75% of employees use SNS (Facebook, MySpace, Linked...
Twitter: Personal Case Study <ul><ul><li>Follow without ‘friending’ </li></ul></ul><ul><ul><li>All professional connection...
Enterprises Begin Offering Their Own Secure Social Media Tools <ul><ul><li>More than 100 white label social software solut...
Case Study: IDC Internal Microblog <ul><ul><li>30% IDC employees currently using and growing </li></ul></ul><ul><ul><li>Co...
Changing the way we communicate @home and @work
Overwhelmed?
Mixed Blessing <ul><ul><li>80% U.S. wired workers say information and communication technologies (ICTs; email, IM, Interne...
MIT Studies on Workplace Productivity <ul><ul><li>Links between productivity and information flow </li></ul></ul><ul><ul><...
Social Networking Applications User Behavior is Driving Demand Q. Which of the following do you READ OR BROWSE three or mo...
Social Networking Applications User Behavior is Driving Demand Q. Which of the following do you CONTRIBUTE to three or mor...
Customers Using Social Media To Talk about the Organization Frustrated with product or service Use social media to speak o...
Organization Learns to Participate in the Conversation and Shape It Connect Collaborate Share Comment Listen Engage Empowe...
Case Study: @DellOutlet <ul><li>Spring 2007 </li></ul><ul><li>14,000+ followers </li></ul><ul><li>Tweets </li></ul><ul><ul...
IDC Survey Data
Consumer Social Media Usage Source: IDC U. S. Consumer Online Behavior Survey Results 2008 Part I: Stationary Internet Usa...
Consumer Social Networking Usage <ul><li>MySpace is mostly 13 to 17 </li></ul><ul><li>LinkedIn and Orkut mostly 25 to 34 <...
SNS Usage Has Increased 10% YOY <ul><li>Grew from 43% in 2007 to 53% in 2008 (15+ older) </li></ul><ul><li>More males said...
Younger Age Groups Drive SNS Usage Q: How often do you use SNS? (&quot;use&quot; vs. &quot;don't use&quot;) Source:  U.S. ...
Younger Users on SNS More Often,  for Longer Periods <ul><li>Frequency of session determined by age </li></ul>Source:  U.S...
The Online American Social Networker – Gender Gap Is Narrowing Source:  U.S. Consumer Online Attitudes Survey, IDC 2008. N...
The Online American Social Networker - Better Educated Source:  U.S. Consumer Online Attitudes Survey III – Social Network...
The Online American Social Networker – Higher Income Source:  U.S. Consumer Online Attitudes Survey III – Social Networkin...
User Experience – Consumers Use SNS to Keep in Touch Share Connect Q: Which statements describe why you use SNS? Check all...
62% Users Say SNS Are Useful Q. How useful are SNS to you?  (N=1619 SNS Users) Note: Usefulness rated on a scale of 1 to 5...
SNS Users Spend More Time Online Than Non-Users Q: In a typical day, how many hours do you spend  using  the Internet?  <u...
Lifestyle of the Online American  Social Networker <ul><li>Spend 3 more hours on the Internet than with TV in a typical da...
Perception of Advertising on SNS Dislike Like Neutral <ul><li>73% prefer free online content with advertising over paying ...
SNS Users Click on Ads –  Just Not As Frequently On SNS 20% 17% Q: How often do you think you click on an advertisement on...
SNS Users Are More Active Click to Purchase Than Non-Users <ul><li>More SNS users than nonusers report clicking to purchas...
But SNS Users Are Not As Active Click  to Purchase on SNS <ul><ul><li>(95% confidence interval, 3% margin of error) </li><...
Little Ad Relevancy on SNS <ul><li>Only 1 out of 4 consumers find ads on SNS useful </li></ul><ul><li>51% find SNS ads ann...
Behavioral Targeting Promises Increased Relevancy, But Consumers Against It Q: Would you consider allowing Web sites to co...
Circumstances Consumers Would Allow Behavioral Targeting Q: Under which circumstances would you consider letting Web sites...
Some Consumers Open to Sharing Info About Themselves, But Not Others Q: What kind of personal information would you allow ...
Tuning Out The Noise <ul><ul><li>1,000 – 3,000 marketing messages per day </li></ul></ul><ul><ul><li>7 out of 10 email mes...
Essential Guidance Use social media tools to support  direct marketing efforts
Essential Guidance You Must Be Social
Essential Guidance <ul><li>Understand the context and sub-context of interactions on each social media site and speak the ...
Essential Guidance Empower customers to spread the message;  Peers have greater influence.
Essential Guidance <ul><li>Hard, Fast ROI;  Give Out Coupons </li></ul><ul><ul><li>40% online Americans participated in on...
Essential Guidance <ul><li>Now  is the time to Experiment! </li></ul>
We Are Human Source: http://www.chrisbrogan.com/youre-doing-it-wrong/
No Magic Formula
Contact me for more information <ul><li>[email_address] </li></ul><ul><li>http://twitter.com/CarolineDangson </li></ul><ul...
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Social Media @Home and @Work: Understanding Who Is Using and Why

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1. How does IDC define social media?
2. What is the size of the market?
3. How has social media evolved?
4. How is it changing the way consumers and businesses communicate?
5. Case Studies
6. IDC U.S. social networking behaviors and attitudes survey data
7. Implication of research and essential guidance

Transcript of "Social Media @Home and @Work: Understanding Who Is Using and Why"

  1. 1. Social Media @Home and @Work: Understanding Who Is Using and Why Caroline Dangson Research Analyst New Media and Entertainment IDC
  2. 2. Agenda <ul><ul><li>How does IDC define social media? </li></ul></ul><ul><ul><li>What is the size of the market? </li></ul></ul><ul><ul><li>How has social media evolved? </li></ul></ul><ul><ul><li>How is it changing the way consumers and businesses communicate? </li></ul></ul><ul><ul><li>Case Studies </li></ul></ul><ul><ul><li>IDC U.S. consumer online behavior and attitudes surveys </li></ul></ul><ul><ul><li>Implication of research and essential guidance </li></ul></ul>
  3. 3. What Is Social Media? <ul><li>user generated content (text, audio, images, and video) that is published online to be viewed, shared, and/or edited by a group of interacting participants. </li></ul><ul><li>Blogs </li></ul><ul><li>Microblogs </li></ul><ul><li>Discussion forums </li></ul><ul><li>Messaging (text, voice, video) </li></ul><ul><li>Ratings and reviews </li></ul><ul><li>Social networks </li></ul><ul><li>Social applications </li></ul><ul><li>Virtual worlds </li></ul><ul><li>Wikis </li></ul>
  4. 4. Widespread Social Networking Usage <ul><li>One out of two online Americans uses social networking services (SNS) </li></ul><ul><li>SNS usage in the U.S. has grown 10% in the past year </li></ul><ul><li>U.S. advertising spend on SNS will double over the next four years from $1.3 billion in 2008 to $2.6 billion in 2012 </li></ul>Sources: U.S. Internet Advertising 2008–2012 Forecast and Analysis: Defying Economic Crisis (IDC #212149, May 2008), U .S. Online Consumer Behaviors Survey (August 2007), U.S. Consumer Online Attitudes Survey, (June 2008)
  5. 5. Social Media Began with the Consumer Internet <ul><ul><li>Connect with groups of friends based on interests – Yahoo! Groups </li></ul></ul><ul><ul><li>Share photos with friends – Snapfish </li></ul></ul><ul><ul><li>Reconnect with friends you have lost touch with – Facebook </li></ul></ul><ul><ul><li>Share your talents with friends, have a personal profile online – MySpace </li></ul></ul><ul><ul><li>Share videos with others - YouTube </li></ul></ul><ul><ul><li>Video chat with friends - Skype </li></ul></ul><ul><ul><li>Create a blog – Blogger </li></ul></ul><ul><ul><li>Broadcast short messages to contacts - Twitter </li></ul></ul>
  6. 6. Consumers Began Using Social Media Tools for Work Purposes <ul><ul><li>Connect with colleagues based on work interests – Google Groups </li></ul></ul><ul><ul><li>IM colleagues under the IT radar – MSN IM </li></ul></ul><ul><ul><li>Build a professional online network – LinkedIn </li></ul></ul><ul><ul><li>Share PowerPoint presentations – SlideShare </li></ul></ul><ul><ul><li>Web conference - WebEx </li></ul></ul><ul><ul><li>Create a blog – Six Apart </li></ul></ul><ul><ul><li>Host a virtual conference – Second Life </li></ul></ul><ul><ul><li>Broadcast short messages to work contacts - Yammer </li></ul></ul>
  7. 7. Consumers Began Using Social Media Tools for Work Purposes <ul><ul><li>75% of employees use SNS (Facebook, MySpace, LinkedIn) for business purposes </li></ul></ul><ul><ul><li>Up 15% from 2007 </li></ul></ul><ul><ul><li>69% of organizations allow SNS for business purposes </li></ul></ul><ul><ul><li>Up from 37% in 2007 </li></ul></ul>Source: Awareness, Enterprise Social Media: Trends and Best Practices in Adopting Web 2.0 in 2008, 2008.
  8. 8. Twitter: Personal Case Study <ul><ul><li>Follow without ‘friending’ </li></ul></ul><ul><ul><li>All professional connections – my friends and mom are not on Twitter….yet </li></ul></ul><ul><ul><li>Status </li></ul></ul><ul><ul><li>Window into Silicon Valley </li></ul></ul><ul><ul><li>Test ideas - how do my assumptions resonate with community of followers </li></ul></ul><ul><ul><li>Biz of relationship building </li></ul></ul><ul><ul><li>Market my research – expertise </li></ul></ul>
  9. 9. Enterprises Begin Offering Their Own Secure Social Media Tools <ul><ul><li>More than 100 white label social software solution providers today </li></ul></ul><ul><ul><li>$350 M in social networking application revenue in 2008, nearly 200% growth </li></ul></ul>Source: IDC's Digital Marketplace Application Adoption Survey, 2007, n=94 Web site managers % respondents
  10. 10. Case Study: IDC Internal Microblog <ul><ul><li>30% IDC employees currently using and growing </li></ul></ul><ul><ul><li>Collaborative thinking across the globe </li></ul></ul><ul><ul><li>Help in navigating large corporation (500+ subscription services) </li></ul></ul><ul><ul><li>Analysts able to brainstorm and think out loud about their assumptions </li></ul></ul><ul><ul><li>Process decision-making </li></ul></ul><ul><ul><li>Internal best practices </li></ul></ul><ul><ul><li>Sell ideas inside the company </li></ul></ul>
  11. 11. Changing the way we communicate @home and @work
  12. 12. Overwhelmed?
  13. 13. Mixed Blessing <ul><ul><li>80% U.S. wired workers say information and communication technologies (ICTs; email, IM, Internet, cell phone) have improved their ability to do their jobs </li></ul></ul><ul><ul><li>73% say technologies have improved their ability to share ideas with co-workers </li></ul></ul><ul><ul><li>But there are trade-offs… </li></ul></ul><ul><ul><li>46% say ICTs increase demands that they work more hours </li></ul></ul><ul><ul><li>49% say ICTs increase the level of stress in their job </li></ul></ul>n=1000 U.S. workers surveyed by telephone interviews conducted by Princeton Survey Research Associates spring of 2008. Source: Pew Internet and American Life Project Report: Networked Workers, 2008
  14. 14. MIT Studies on Workplace Productivity <ul><ul><li>Links between productivity and information flow </li></ul></ul><ul><ul><li>Digital network associated with information discovery </li></ul></ul><ul><ul><li>Face-to-face networks associated with increased information integration </li></ul></ul><ul><ul><li>Social media tools good for information discovery </li></ul></ul><ul><ul><li>Face-to-face communication good for information integration </li></ul></ul>% more productive than colleagues Source: MIT study as quoted in Harvard Business Review , Feb. 2009 7% 30%
  15. 15. Social Networking Applications User Behavior is Driving Demand Q. Which of the following do you READ OR BROWSE three or more times per week for business? Source: IDC #206176, Web 2.0 at Work: Adoption of Tools for Personal and Business Use
  16. 16. Social Networking Applications User Behavior is Driving Demand Q. Which of the following do you CONTRIBUTE to three or more times per week for business? Source: IDC #206176, Web 2.0 at Work: Adoption of Tools for Personal and Business Use
  17. 17. Customers Using Social Media To Talk about the Organization Frustrated with product or service Use social media to speak out Comments get to bloggers - influence social network Seeking to control the message Spending money on customer support, but still losing customers
  18. 18. Organization Learns to Participate in the Conversation and Shape It Connect Collaborate Share Comment Listen Engage Empower Support
  19. 19. Case Study: @DellOutlet <ul><li>Spring 2007 </li></ul><ul><li>14,000+ followers </li></ul><ul><li>Tweets </li></ul><ul><ul><li>Special discounts – coupons with code </li></ul></ul><ul><ul><li>Tips and tricks </li></ul></ul><ul><li>Integrates Twitter with other web 2.0 tools </li></ul><ul><li>Fully automated updates from Direct2Dell </li></ul><ul><li>Uses applications to target geographies and connect with outlet specials to increase demand </li></ul>ROI = $1 million in direct sales
  20. 20. IDC Survey Data
  21. 21. Consumer Social Media Usage Source: IDC U. S. Consumer Online Behavior Survey Results 2008 Part I: Stationary Internet Usage, n=4454
  22. 22. Consumer Social Networking Usage <ul><li>MySpace is mostly 13 to 17 </li></ul><ul><li>LinkedIn and Orkut mostly 25 to 34 </li></ul><ul><li>Nearly half of 45 to 54 year olds with Internet access are using one of these sites </li></ul>Source: IDC U. S. Consumer Online Behavior Survey Results 2008 Part I: Stationary Internet Usage, n=4454
  23. 23. SNS Usage Has Increased 10% YOY <ul><li>Grew from 43% in 2007 to 53% in 2008 (15+ older) </li></ul><ul><li>More males said they use SNS this past year </li></ul><ul><li>SNS usage has increased among all age groups </li></ul><ul><li>SNS users spend roughly 10-15 more minutes each week online </li></ul><ul><li>11% more SNS users access the Internet via mobile device </li></ul>Source: U.S. Online Consumer Behaviors Survey, IDC 2007. N=993, and U.S. Consumer Online Attitudes Survey, IDC 2008. N=2909 (age 15+) 0% 20% 40% 60% 80% 100% 15-24 25-39 40-54 55+ 2007 2008
  24. 24. Younger Age Groups Drive SNS Usage Q: How often do you use SNS? (&quot;use&quot; vs. &quot;don't use&quot;) Source: U.S. Consumer Online Attitudes Survey, IDC 2008. N=3000 As youngest groups age, we expect them to continue using SNS 83% 90% 74% 53% 35% 24% 14% 0% 20% 40% 60% 80% 100% 13-17 18-24 25-34 35-44 45-54 55-64 65+
  25. 25. Younger Users on SNS More Often, for Longer Periods <ul><li>Frequency of session determined by age </li></ul>Source: U.S. Consumer Online Attitudes Survey, IDC 2008. N=3000 Q: How frequently do you use SNS? (N=1619) 0% 20% 40% 60% 80% 100% 13-17 18-24 25-34 35-44 45-54 55-64 65+ Multiple times per day Once per day Several times per week Once or twice a month Less than once a month
  26. 26. The Online American Social Networker – Gender Gap Is Narrowing Source: U.S. Consumer Online Attitudes Survey, IDC 2008. N=3000 <ul><li>Slightly more females with SNS (slightly more males with YouTube) </li></ul><ul><li>MySpace and Facebook 55% females: 45% males </li></ul>Q. On average, how frequently do you use SNS such as Bebo, Facebook or MySpace? (N=1619 SNS Users) <ul><li>SNS is more of a female activity </li></ul><ul><li>Gender gap is narrowing with social media </li></ul>
  27. 27. The Online American Social Networker - Better Educated Source: U.S. Consumer Online Attitudes Survey III – Social Networking, IDC #214899 (n=3000). <ul><li>29% were students at the time of the survey </li></ul><ul><li>31% had 4+ years of college </li></ul>
  28. 28. The Online American Social Networker – Higher Income Source: U.S. Consumer Online Attitudes Survey III – Social Networking, IDC #214899 (n=3000). <ul><li>54% have a job </li></ul><ul><li>40% lived in HH with annual income $50+ </li></ul>
  29. 29. User Experience – Consumers Use SNS to Keep in Touch Share Connect Q: Which statements describe why you use SNS? Check all that apply. (N=1619) Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000 0% 20% 40% 60% 80% 100% To be entertained by the content people post on their sites To make new contacts and find people with similar interests To share pictures and videos with contacts To find contacts I have lost contact with Because my contacts use it To keep in touch w/ current contacts 13-17 18-24 25-34 35-44 45-54 55-64 65+
  30. 30. 62% Users Say SNS Are Useful Q. How useful are SNS to you? (N=1619 SNS Users) Note: Usefulness rated on a scale of 1 to 5, where 5 means “very useful” and 1 means “not useful at all.” Usefulness declines with age <ul><ul><li>37% want one profile for several SNS accounts </li></ul></ul><ul><ul><li>30% want one universal login for several SNS accounts </li></ul></ul><ul><ul><li>18% want search results based on social graph </li></ul></ul><ul><ul><li>13% product recommendations based on social graph </li></ul></ul>Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000
  31. 31. SNS Users Spend More Time Online Than Non-Users Q: In a typical day, how many hours do you spend using the Internet? <ul><ul><li>Regular SNS users spend 1- 3 more active hours online in a typical day compared to non-SNS users </li></ul></ul><ul><ul><li>SNS users are increasing the amount of time they spend online in a typical day </li></ul></ul>Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000
  32. 32. Lifestyle of the Online American Social Networker <ul><li>Spend 3 more hours on the Internet than with TV in a typical day </li></ul><ul><li>SNS users spend significantly more time watching cable TV than non-SNS users </li></ul><ul><li>80% live in a major city or in a suburb near a major city </li></ul><ul><li>62% access Internet via mobile device </li></ul>Hours Q: In a typical day, how many hours do you spend using the following media? (SNS users) Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000
  33. 33. Perception of Advertising on SNS Dislike Like Neutral <ul><li>73% prefer free online content with advertising over paying for content without advertising </li></ul><ul><li>SNS users more tolerant of advertising in general </li></ul><ul><li>Consumers hate paying for content more than they do advertising </li></ul>
  34. 34. SNS Users Click on Ads – Just Not As Frequently On SNS 20% 17% Q: How often do you think you click on an advertisement online? on SNS? (n=1619 SNS Users) Source: U.S. Consumer Online Attitudes Survey, IDC 2008. N=3000. Percentage of users who clicked on an ad at least once in the past year. 79% 57% 0% 20% 40% 60% 80% 100% All online ads Ads on SNS
  35. 35. SNS Users Are More Active Click to Purchase Than Non-Users <ul><li>More SNS users than nonusers report clicking to purchase </li></ul><ul><li>SNS users are more active online purchasers </li></ul><ul><li>But getting them to click on SNS ad is more difficult </li></ul>Q: In the past 12 months, have you ever purchased a product or service as a result of clicking on an online ad? Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000 26% 74% 20% 80% 0% 20% 40% 60% 80% 100% YES (click to purchase) NO (click to purchase) Users Nonusers
  36. 36. But SNS Users Are Not As Active Click to Purchase on SNS <ul><ul><li>(95% confidence interval, 3% margin of error) </li></ul></ul>23% 11% 0% 5% 10% 15% 20% 25% Web In General SNS Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000
  37. 37. Little Ad Relevancy on SNS <ul><li>Only 1 out of 4 consumers find ads on SNS useful </li></ul><ul><li>51% find SNS ads annoying – still this is less than mobile (66%) and video ads (67%) </li></ul><ul><li>Creating ads for SNS that are relevant, less annoying to users is your biggest challenge </li></ul>Q: How useful (relevant to you, informative) do you think advertising is on SNS? (n=1619) Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000
  38. 38. Behavioral Targeting Promises Increased Relevancy, But Consumers Against It Q: Would you consider allowing Web sites to collect personal info about you in return for ads that fit your purchase intents? Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000
  39. 39. Circumstances Consumers Would Allow Behavioral Targeting Q: Under which circumstances would you consider letting Web sites collect personal information about you? Check all that apply. ( N=1239, those who would allow it without reservation and those under certain circumstances ) Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000 23% 34% 41% 61% 66% 67% 0% 20% 40% 60% 80% 100% Informs me with a pop-up window Service sends me email notification Notified in Terms of Service Service allows me opt out Service collects info. only if I opt-in I choose how much info. to give away
  40. 40. Some Consumers Open to Sharing Info About Themselves, But Not Others Q: What kind of personal information would you allow Web sites to collect about you provided it could not be connected to you as an individual? (N=1239) <ul><li>50% who had some or no reservations will share as long as info not connected to their personal identity </li></ul><ul><li>Most respondents will not share info on who they know </li></ul><ul><li>Enable your customers to speak for you – tap into word of mouth </li></ul>Source: U.S. Consumer Online Attitudes Survey, IDC 2008. n=3000 13% 8% 46% 48% 55% 0% 20% 40% 60% 80% 100% None of the above Info on who I know Online purchasing behavior Demographic info Internet surfing behavior
  41. 41. Tuning Out The Noise <ul><ul><li>1,000 – 3,000 marketing messages per day </li></ul></ul><ul><ul><li>7 out of 10 email messages are reported as spam (Semantec, Jan. 2009) </li></ul></ul>“ Reaching the consumer with the message is not the hard part of direct marketing. What is difficult is getting the consumers to stop , read the advertisement, remember it, and then act on it.” Malcolm Gladwell, The Tipping Point
  42. 42. Essential Guidance Use social media tools to support direct marketing efforts
  43. 43. Essential Guidance You Must Be Social
  44. 44. Essential Guidance <ul><li>Understand the context and sub-context of interactions on each social media site and speak the local language </li></ul>
  45. 45. Essential Guidance Empower customers to spread the message; Peers have greater influence.
  46. 46. Essential Guidance <ul><li>Hard, Fast ROI; Give Out Coupons </li></ul><ul><ul><li>40% online Americans participated in online contests </li></ul></ul><ul><ul><li>24% use online coupons </li></ul></ul>Source: IDC U. S. Consumer Online Behavior Survey Results 2008 Part I: Stationary Internet Usage, n=4454
  47. 47. Essential Guidance <ul><li>Now is the time to Experiment! </li></ul>
  48. 48. We Are Human Source: http://www.chrisbrogan.com/youre-doing-it-wrong/
  49. 49. No Magic Formula
  50. 50. Contact me for more information <ul><li>[email_address] </li></ul><ul><li>http://twitter.com/CarolineDangson </li></ul><ul><li>IDC Digital Marketplace Program </li></ul><ul><li>http://tinyurl.com/DigitalMarketplace </li></ul><ul><li>My IDC Research </li></ul><ul><li>http://tinyurl.com/CarolineDangson </li></ul>

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