The Razorfish Consumer Experience Report   2008
Feeds. Widgets. Social media. Search. You read about them                                                           all th...
“The concept of social networking is evolving                                                          and morphing. It’s ...
“Distribution must evolve into a science, as reaching   consumers in a fragmented, personalized environment   will become ...
“The new experience might be a conversation; it might be                                                          a series...
Will the Crowd Save Us?                                                                                                   ...
By Garrick Schmitt,                                                                                                       ...
Today’s digital consumers have moved well beyond merely                                                                   ...
Blunting the Edge: Formerly “Digerati”                  Video Is the Internet Star: Online Video           SOCIAL MEDIA PR...
/* The real value for advertisers is the role of social                                                                   ...
Mobile: U.S. Still Developing, Smartphones                                                        Growing, Apple Makes Maj...
Designing experiences                                                                                               for th...
Do these dwindling numbers for the big networks mean that     social networking is dead? Not by a long shot.              ...
Don’t forget the business model.  The last and maybe most important              Nike+ and Classmates demonstrate  lesson ...
by Kyle Outlaw                                                                                                            ...
Life After the iPhone: Preparing For The 3G Mobile Internet                                                               ...
Open Access and 3G                                                                                                        ...
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
Razorfish Digital Consumer
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  1. 1. The Razorfish Consumer Experience Report 2008
  2. 2. Feeds. Widgets. Social media. Search. You read about them all the time and use them in your work. And according to this year’s Razorfish FEED report, consumers are adopting these new technologies faster than the industry pundits would lead you to believe. Are you ready? Razorfish created FEED: The Razorfish Based on our findings, the second half of FEED: Consumer Experience Report with a relatively The Razorfish Consumer Experience Report is simple mission: to gain a better understanding of explicitly concerned with examining the trends, how technology affects today’s digital consumer companies and services that are shaping the experience and explore the emerging trends that consumer landscape of the future. For example, will shape those experiences for years to come. in “Mad Widgetry,” I discuss the impact of widgets and RSS feeds on the advertising and Though our mission may have been media landscape. In “Advertising As a Service,” straightforward, our findings were anything but. Brandon Geary examines how smart marketers The rise of search as a primary mode of like Nike and Visa are taking a dramatically navigation, the widespread adoption of Web 2.0 different approach to reaching consumers. features and technologies and the noticeable In addition, there are a host of other thought uptick in mainstream social media usage have provoking pieces, including “Let’s Talk About It” fundamentally altered the consumer landscape— and “Twitterific,” by Marisa Gallagher and Shiv fracturing it in ways that we couldn’t have Singh respectively, that weigh the impact of social imagined just a few years ago. As our design team media participation and “micro-interactions” on explains in our Razorfish Digital Consumer the marketplace. And, in a bit of delightful Behavior Study, today’s consumer is more provocation, Tim Richards challenges usability technically adept, open for experimentation guru Jakob Nielsen’s canon in “Putting Jakob and—most importantly—active than ever before. Back on the Shelf,” arguing a whole new set of For brands to remain relevant in this environment, design standards for digital experiences. they will need to adapt to both emerging As always, we invite you to read, consider and technologies and shifting consumer behavior discuss on our Razorfish Digital Design Blog without delay. Those who will succeed need to act (http://www.digitaldesignblog.com). In addition to more like publishers, entertainment companies or a lively conversation, you will also find a variety of even party planners, than advertisers, such as downloads related to the report, including the full Nike who recently scored a major coup by hosting questions and responses to the Digital Consumer a global “Human Race.” Behavior Study, plus charts and graphs. Brands will need to create content that engages and “reaches” consumers across channels, provide valuable services over mere advertising See you there. and master an increasingly complicated and expansive content distribution model. And, of course, they will need to rethink the way they create relationships (or conversations) with consumers before it’s too late. Garrick Schmitt Group Vice President, Experience PlanningFEED: The Razorfish Consumer Experience Report / 2008 I am new here. Be nIce to me. 3
  3. 3. “The concept of social networking is evolving and morphing. It’s now about making the entire Web social instead of just creating a ghetto of destination sites where people have to go to socialize.” Let’s Talk About It, page 24FEED: The Razorfish Consumer Experience Report / 2008 I don’t know what to say. 5
  4. 4. “Distribution must evolve into a science, as reaching consumers in a fragmented, personalized environment will become increasingly complex. ... Major publishers are now forced to completely rethink the way they reach consumers in a fractured distribution environment.” Razorfish Digital Consumer Behavior Study, page 14FEED: The Razorfish Consumer Experience Report / 2008 I can’t contaIn all of my thoughts In thIs tIny box. 7
  5. 5. “The new experience might be a conversation; it might be a series of decisions made by the user; it might be an interactive storytelling session. ... Don’t limit the vision of a new application by making it conform to your status quo when it’s only just an idea.” Putting Jakob Back on the Shelf, page 39FEED: The Razorfish Consumer Experience Report / 2008 I get It. I’m supposed to be clever. 9
  6. 6. Will the Crowd Save Us? The Bottom-Up vs. Top-Down Putting Jakob Back on the Shelf By Tim Richards Future of the Internet By Rachel Lovinger International Clicks Life After the iPhone By John Alderman By Kyle Outlaw Mad Widgetry > > > > > How Tiny Applications Are > > > > > Remaking the Future of the Web By Garrik Schmitt More Value for Your Message Beyond The Browser Advertising As a Service Designing for the Ambient Meet the Connected Consumer By Brandon Geary What’s in a Game? Technology Revolution A Look at Games As Tools, Not Toys How Social Apps, Pokes and Widgets By Nadya Direkova and Ian Clazie By Andrew Milmoe Can Help You Connect By Garrick Schmitt, Malia Supe and Benjamin Lerch Twitterific Let’s Talk About It How Micro-Interactions Are Changing The New, New Reading Designing Experiences for the Way We Communicate Online the Facebook Generation By Shiv Singh Data Visualization for the Online Era By Marisa Gallagher By Mia Northrop and James SpahrCONTENTS The Revolution Will Be Pixelated How 2D Barcodes May Re-Shape Mobile Advertising By Adam Connelly and John-Alistair GeorgeFEED: The Razorfish Consumer Experience Report / 2008 I am supposed to sound InterestIng, but not IntImIdatIng. 11
  7. 7. By Garrick Schmitt, Malia Supe and Benjamin Lerch How Social Apps, Pokes and Widgets Can Help You ConnectFEED: The Razorfish Consumer Experience Report / 2008 I should tell people about the stuff I buy. 13
  8. 8. Today’s digital consumers have moved well beyond merely Behavior Trumps Demographics Online: Connected Consumers Span Ages, Geographysampling Web 2.0 technologies and services. They are now In June 2008, Razorfish surveyed 1,006 U.S. consumers (56% female, 44% male) in four age groups to understand their digital desires, frustrations and consumption habits.adopting these services at a breakneck pace and readily The respondents were evenly split geographically between 10 U.S. metrosexperimenting with new, more sophisticated offerings en masse. and broader geographic representation (49% and 51%, respectively). To avoid duplicating the general work of Pew, Forrester and other research firms, our goal was to survey what we call “connected consumers.” These are the people our clients are most interested in understanding and reaching. Key characteristics include:The Ever-Ready, Everywhere ConsumerConnected consumers have enthusiastically embraced social services because today’s widget might become tomorrow’s TV set. • Access to broadbandmedia (both technologies and networking sites), are actively And every player in this space will need to not only understand, but • Spent $200 online in the past year (travel, Netflix, tickets, /* More surprisingly, 91% of thesebuilding and refining their own trusted personal networks, andare rapidly embracing new communication offerings like Twitter. also learn how to manage digital consumer connections with almost no explicit controls. Amazon gifts, etc.) consumers use one of the five majorIn so doing, they are challenging publishers, advertisers and • Visited a “community site” (MySpace, YouTube, Facebook, Internet portals—Google, Yahoo!, Use It or Lose It: Exploring Adoption vs. Engagement Classmates, Wikipedia, etc.)marketers to meet their needs in new, distributed and largelyuncharted territories—many of which have no analog touch Last year, the intent of our study was to discover to what degree • Consumed or created some form of digital media, such as MSN, AOL and Ask.com—to startpoints—and to provide services that have no immediate today’s digital consumer is really changing online behavior because of Web 2.0 technologies and services. We were pleased to find that photos, videos, music or news their online experiences. */monetization models. Based on previous Razorfish consumer research, we have found that the consumer adoption curve for Internet technologies was muchThis was the key finding of our second annual these connected consumers roughly mirror the U.S. population with more significant than we had anticipated.Razorfish Digital Consumer Behavior Study. broadband access. According to the Pew Internet & American Life This year our design research team’s goals were quite different. Project, on the whole, about 55% of all Americans today have a high- We sought to dive much deeper and examine how advances in speed Internet connection, up from 47% in 2007. This translates toContent Will Drive Awareness, Not Advertising Internet technologies—specifically in online activity, social media roughly 165 million people, based on a July 2007 population estimateAs a result, we predict savvy marketers and publishers will start to usage, ecommerce habits and mobile access—were changing the from the CIA’s The World Factbook (Total Population: 301,139,947,merge tactics in the months and years ahead. Content, in our view, way connected consumers engaged online and the impact of those July 2007 est.)will become advertising—both for brands looking to reach and behaviors on the industry.engage consumers and for publishers who will look at content asan acquisition vehicle for a broader audience. Web 2.0 Goes Mainstream: Adoption Accelerates,In this uncharted territory, distribution must evolve into a science, Users Aggregate Around Niche Interestsas reaching consumers in a fragmented, personalized environment Building upon our findings from last year, we found that consumerswill become increasingly complex. Brands will need new tools and are continuing to customize their digital experiences around their own personal, niche interests. According to our survey, 64% of connected consumers have customized the home page of their choice with content feeds, scheduled updates or other features. More surprisingly, 91% of these consumers use one of the five major Internet portals—Google, Yahoo!, MSN, AOL and Ask.com—to start their online experiences. Google is the favorite of these consumers, with 37% choosing either Google.com or iGoogle as their home page.FEED: The Razorfish Consumer Experience Report / 2008 I just got a new mountaIn bIke! sweet! 15
  9. 9. Blunting the Edge: Formerly “Digerati” Video Is the Internet Star: Online Video SOCIAL MEDIA PROPERTIES USED BY RESPONDANTS 67.09% 65.43%Technologies Find Mainstream Appeal Consumption Explodes, ConsumersConnected consumers are continuing to Open to Advertisingadopt Web 2.0 features and functions at Online video consumption by connected 46.13%an accelerated pace as formerly “edge” consumers continues to soar, as 94% oftechnologies are now widely used by the respondents reported watching online 36.14%mainstream. video with some level of frequency. Nearly a third of respondents watch some video • 28% use Twitter, a relatively new 17.43% on a daily basis. Sharing videos, or viral 15.57% communication tool, with some frequency 13.52% usage, appears to drive a large majority 8.42% 7.15% 5.88% 5.68% 6.46% • 41% use tag clouds with of consumption with 84% of respondents 5.09% 3.72% 3.72% 2.84% some regularity indicating they receive videos from peers on BEBO BLACK PLANET CARDOMAIN CLASSMATES FACEBOOK FLICKR FRIENDSTER LAST.FM LINKEDIN MEETUP MYSPACE TWITTER XANGA YELP YOUTUBE OTHER a frequent basis. • 52% use RSS feeds with some regularity Not all of that content is professionally produced, either. A slight majority of • 52% have shared bookmarks with What You Talkin’ About: The Web Is Social, Killer Apps Connect others through services like del.icio.us connected consumers (52%) have uploaded People, Enable Conversations /* Perhaps the biggest recent change videos online with some frequency, and • 55% use widgets on the computer 72% have shared videos with their peers. Perhaps the biggest recent change in Internet behavior is the mass acceptance of the Web as a social medium. From instant messaging, in Internet behavior is the mass desktop with some frequency • 62% use widgets on Web sites such Clearly this poses another challenge email and “tweets” that enable people to communicate directly, acceptance of the Web as a social for publishers, especially broadcast TV to photo and video services that enable people to share media as Facebook or iGoogle networks (NBC, ABC and CBS). They must effortlessly, to blogging which connects people through non- medium. Instant messaging, email adapt as the centralized analog model is • 81% read “Most Popular” or “Most disintegrating in our new online, networked traditional media, the “killer app,” if you will, is social in nature. and “tweets”... enable people to Emailed” links with some frequency No publishers benefit more from this trend than social media sites,The Widgetized Web world. On a positive note for both publishers like MySpace, YouTube and Facebook, which are clear favorites of communicate directly. */ and aggregators (YouTube, et al.), We were most surprised to see widespread connected consumers today. consumers are open to viewing advertisingacceptance and frequent consumer with their videos, with the majority preferring Some of the tech-set darlings like Yelp, Twitter, Last.fm and even Flickr, Regardless of which social media property consumers choose, theyusage of Web site widgets. A relatively companion banners to pre-roll and newer, appear to struggle in reaching a broader audience while mainstream are universally spending a massive amount of time interacting withnew technology popularized by platforms emerging forms of video advertising, such fare, such as Classmates and Friendster still hold some sway. In each other. The majority of survey respondents (75%) indicate theylike Facebook and Google, and providers as tickers and interstitials. addition, connected consumers say they are active in multiple social spend at least one hour a week on these properties, with a largelike Slide and RockYou, widgets are small properties with 68% participating in two or more networks. number (19%) spending more than seven hours a week on socialapplications that run on other Web sites networking sites.or the computer desktop. Their pervasive /* Clearly this poses another And not too surprisingly, most consumers are using social networkinguse indicates consumer comfort with theconcept of distributed experiences, which challenge for publishers, services to connect with others—either actively or passively. Fewcan be consumed wherever and whenever are venturing there for less-social goals, such as finding out abouthe or she chooses. especially broadcast TV new products or services. And despite the proliferation of games and applications available on social media sites, user activityThis development reinforces our belief that networks (NBC, ABC and is still dominated by communicating with friends and updatingdistribution of content and services willtrump destinations, as both consumers CBS). They must adapt status messages to keep others abreast of personal news and developments. But that does not mean that consumers don’tand Internet technologies continue to as the centralized analog believe that there is a role for advertisers on social media sites.evolve. Additionally, it will providesignificant challenges for publishers model is disintegrating in(primarily media and entertainmentcompanies) who currently have no our new online, networkedclear path towards monetizing content world. */distribution across the Web.FEED: The Razorfish Consumer Experience Report / 2008 I should tell people when I hate or love somethIng . 17
  10. 10. /* The real value for advertisers is the role of social Unfortunately for retailers, the trend of disintermediation continued at an accelerated pace in 2008. When asked Advice to Retailers: Personalization + Perks There are a number of bright spots for retailers. influence in persuading consumers to purchase. where they would start their online search for a product First, personalized recommendation engines have a profound less than $100, many (55%) preferred using a search Nearly half of all respondents (49%) indicate they engine. Merely 12% opted for visiting the Web site of effect on connected consumers: according to our survey, 65% of consumers indicate that they have made a purchase have made a purchase based on a recommendation a known and established retail store. based on an automated recommendation triggered by past For consumers in the market for a product that cost purchases from a site like Amazon. through a social media site. */ $1,000 or more, only 44% preferred using a search engine. Second, retailer loyalty programs are another bright spot. Established retailers fared slightly better, with 14% opting Respondants who think brands should According to our survey, the same number of consumers Consumers on Social Network Advertising: Yes, Please! for the Web site of a known and established retail store. advertise on social media properties (65%) indicate loyalty programs that offer “points,” discount Interestingly, 40% of survey respondents said they have made a purchase The difference in consumer behavior between high and low incentives or discounted shipping for multiple purchases (e.g. based on advertising they saw on a social media site. And the vast majority priced items suggests retailer trust and reputation becomes Amazon’s Prime) highly influence purchase decisions. Loyalty welcome advertising in social media experiences—76% of all consumers think more vital as price goes up. Consumers are willing to pay services—such as Best Buy’s Rewards Zone, Amazon Prime, a wide range brands like Nike, Virgin and Bank of America should advertise in more for the peace of mind they experience when buying a and others—are key if retailers are to thrive in an increasingly social media. quality product from a trusted source. competitive digital environment. Most tellingly, the real value for advertisers is the role of social influence in While search clearly dominates the initial online shopping persuading consumers to purchase. Nearly half of all respondents (49%) experience, peers are the largest influencers when indicate they have made a purchase based on a recommendation through determining when and what to purchase. The large majority a social media site. of consumers (61%) rely on user reviews for product information and research, with a much smaller group (15%) preferring editorial reviews. The End of Traditional Retailers?: Peer-Driven Recommendation and Search Drive Digital Commerce Respondants who have made a purchase based on a recommendation through a social media property As we learned last year, connected consumers increasingly rely on peers for product recommendations, and search (primarily Google) to locate products Products $100 or less 54.56% General Search online. This is forcing online retailers to rethink their strategies—optimizing for search activity, enabling user-generated content and ratings, and creating 4.86% Would ask a friend online using a social network site engaging, valuable digital experiences to differentiate their brand. 7.14% Would visit a specific ecommerce site 12.30% Would visit the Web site of a trusted retailer 10.71% Would use a comparison shopping search engine I’m doing people what 9.52% Would use a product review site I like to show le are doing I like to see what other peop .89% Other Products $1,000 or more ne else is on them Because everyo 44.09% General Search d to new ideas They help me get expose 14.00% Would use a product review site 10.33% Would use a comparison shopping search engine I like to try new things 14.10% Would visit the Web site of a trusted retailer They help me meet new people 10.13% Would visit a specific ecommerce site They help me stay in touch with people I know 5.36% Would ask a friend online using a social network site 1.99% Other10 20 30 40 50 60 70 80Top Reasons that People use Social Media Properties Digital property that respondants would use to start their web shopping experience FEED: The Razorfish Consumer Experience Report / 2008 I hate hate hate my cable company. hate. 19
  11. 11. Mobile: U.S. Still Developing, Smartphones Growing, Apple Makes Major Impact Despite huge advances in mobile Internet technology adoption since our survey last year, the U.S. is still a developing country when it comes to mobile phone usage and digital services. But there are signs of change, as more and more connected Venturing into Uncharted Digital Territory: consumers have mobile, Internet-capable devices, and as Consumers Reward Brands that Break New Ground messaging continues to grow in importance. Based on our research, we believe U.S. consumers will ultimately While the vast majority of connected consumers have standard continue to accelerate their adoption of Internet technologies in the mobile handsets, 26% have smartphones. near future and will actively look for brands, products and services Apple’s nearly overnight share (6%) of the consumer smartphone that can satisfy them in this new, networked digital landscape. Key market is the real surprise. This survey, completed just before the implications for marketers, advertisers and publishers to consider: launch of Apple’s iPhone 3G, finds the computer maker with a Digital Behavior Defies Age: We found today’s connected market share similar to Windows Mobile (8%) and almost half that consumers equally distributed across all age ranges, with a of RIM’s BlackBerry (12%). slight skew to older segments. No longer are we seeing Internet In terms of feature usage, text messaging is the dominant mobile technology adoption rates limited to only certain service used by connected consumers today with 87% sending segments. Our study found widespread acceptance of these new and receiving messages on a somewhat frequent basis. Taking service offering and finds older consumers much more likely to and sharing photos is also popular, with 82% and 67% partaking, spend money online. respectively. Human Connection Drives Technology Adoption: Consumers use Other mobile data services were not quite as popular: Internet technologies to connect with each other across a plethora of sites, tools and media. They express a willingness to dabble • 35% have checked work email on their mobile phone with new, emerging services (Twitter, Flickr) and congregate on • 43% have watched video on their mobile phone multiple platforms when they become widely accessible (Facebook, MySpace, YouTube). • 46% have accessed directions or looked up a map Distribution Trumps Destination: All signs point to the continuing Social Media Continues to Evolve: We are still in the early days • 47% have listened to music on their mobile phone disintegration of “one-stop” digital destinations, at least as far as of social media, with platforms and services in a constant state • 50% have checked personal email on their mobile phone consumers are concerned. We’ve found that they don’t want a of evolution. While this study indicates few consumers are currently one-size-fits-all solution for their needs. Consumers prefer using venturing into social media platforms for commercial goals, such • 51% have accessed a Web site on their mobile phone multiple destinations, and then aggregating media and services, via as learning about new products and services, this is a key area to • 51% have checked weather, news or sports headlines on simple tools like RSS, into a highly personalized view of their digital watch in the coming months. We expect to see greater reliance their mobile phone world. This has massive implications for major publishers, like NBC, on social media to influence purchasing in the near future and not CBS, ABC, and CNN, who are now forced to completely rethink the just from friends, but also from brands. This might even come full While these are fairly large numbers, the majority of connected way they reach consumers in a fractured distribution environment. circle, shortly, where brands will regain some modicum of control consumers who do use these services are dabblers, at best, with and credibility if they can figure out how to play meaningfully in this only a small percentage using them with any real frequency. That space moving forward. Our best guess is that the notion of a social shouldn’t discourage mobile data service providers though, as the media “campaign” will be jettisoned, and brands will provide richer, growth in both capable devices and consumer readiness is on the more sustainable content and services on an ongoing basis. move. We see this space growing by leaps and bounds as handsets advance and 3G continues to expand.FEED: The Razorfish Consumer Experience Report / 2008 I love my new shoes. They’re lIke leaTher pIllows. 21
  12. 12. Designing experiences for the Facebook generation by Marisa Gallagher Facebook may have jumped the shark. MySpace is peaking. Even Club Penguin is not flying high anymore. Growth rates of social networks paint the picture clearly. Though Facebook and MySpace are still seeing record global traffic, their year-over-year U.S. growth rates have peaked and are on the decline. April 2008 Nielsen stats show Facebook dropping below a 56% pace—way down from the 100+% growth highs of the 2007 summer. MySpace logged a miniscule 3% annual growth rate, and Club Penguin is languishing with an actual 7% decline in growth.FEED: The Razorfish Consumer Experience Report / 2008 I have resorted to usIng “frIend” as a verb. 23
  13. 13. Do these dwindling numbers for the big networks mean that social networking is dead? Not by a long shot. Embrace the network, but beware of the network effect. The greatest thing about social networks community cannot be created instantly. What is happening is that the concept of social networking is evolving and is how they allow you to reach a lot of You need people to get people, and it morphing. It’s now about making the entire Web social instead of just creating a people quickly and tap into the power of takes a lot of seeding and feeding to ghetto of destination sites where people have to go to socialize. Retailers, news- community. Marketers are discovering reach a network effect strong enough to papers, TV networks and even search engines are incorporating “social” into their that community can get a company’s create a real, working community. digital strategies and they’re taking cues from the social networks to do it. message across faster and more authentically than traditional media It took more than three years for MySpace, YouTube and Facebook to News Feed Posted Items status photos live feed events ever could. This idea fuels the viral really take off. Much of their “crazy viral” content sat around for long superstardom dreams of many YouTube stretches too, steadily and stealthily building an audience. Here’s what they’ve learned from devotees and marketers alike. It’s a powerful concept for companies— In the end, a company has to be patient social networks: building a real relationship with their influential customers and audiences, and with community relationships and nudge a bit to get them started. That’s then empowering those folks to normal and well worth the advocacy and Share the spotlight. get the word out. The problem is that authenticity they bring. People want to feel special and tend to have read, searched or shared. CNN reach out to the things that make them goes a step further and gives broadcast feel that way. So, it’s no surprise that and digital airtime to user-generated, Make it interactive and plan for multiple levels of participation. people flock to social networks in droves; citizen journalist iReports. Nike does it they make users feel like the star of too, by centering its Nike+ site on the Social networks excel at making users do something instead of just consume something. their own lives. The same desires extend users’ profiles and the community’s And they do it best by providing a continuum of ways to interact: to companies, products and even TV interactions, instead of its shoes. And networks. The lesson here is that socially- Yahoo!, Google, and Coca-Cola go full Low-level: rating, poking, tagging, The best and most successful sites from aware companies put customers and bore—giving their entire home pages commenting, subscribing Flickr to Facebook to Nike all provide a audiences at the center of their world, or over to each user to “trick out” with their Mid-level: writing statuses, twittering, playing similarly broad continuum of tools to sup- at least make them a part-owner in it. The own MyYahoo! and iGoogle controls or games, adding widgets, uploading photos port their members’ abilities to connect New York Times and most newspapers Coke bottle designs. In all cases, the key High-level: making videos, writing blog posts with one another and engage with each do this by simply highlighting the “most is they make sure the spotlight is on the and reviews other directly. Our own research showed popular” articles other site visitors customers and not on themselves. Expert-level: moderating groups and message that almost 90% of users interact regu- boards, creating applications, running feeder larly with the social sites and do so across businesses on the social network’s “economy” a diverse range of activities. Leverage the platform, not just the site. Answers to the Following Survey Question: The most recent rapid expansion on audience and increase engagement and “Which of the following actions do you perform on social media sites? the Facebook and MySpace sites came usage by simply remembering user pref- Choose all that apply.” when they opened up their systems and erences and planning for distribution. For allowed developers to make applica- this approach to work, the walled-garden 70 I write messages or post to friends tions for their sites. Flickr and LinkedIn Web site should be loosened up enough 60 saw increased gains from similar types to allow the traffic to come in. I update my status of external hooks, one by pushing out 50 I join groups “embed code” and Flickr streams, and 40 the other by pulling in email contacts I play games and pushing a user’s network back out 30 to world, making even BusinessWeek I download applications 20 articles contextually relevant to the I create groups individual reader (see screenshot). In all 10 cases, playing nicely with other systems I do not participate in any of the above 0 has created opportunities to build an 1 2 3 4 5 Next 1 2 3 4 5 NextFEED: The Razorfish Consumer Experience Report / 2008 I just “frIended” my best frIend from kIndergarten. WoW. 25
  14. 14. Don’t forget the business model. The last and maybe most important Nike+ and Classmates demonstrate lesson social networks have taught us another solid model for monetizing com- comes out of the failures. Many of these munity selling actual products. LinkedIn, sites—including the billion-dollar-baby, Flickr, enterprising Twitter fans (see the YouTube—have had a hard time finding iPhone App Store screenshot below) and sustainable business models. To make a Craigslist charge for in-demand prosum- real difference, the new social Web needs er and corporate toolsets, while offering to have a strong business foundation. free basic tools to seed the growth of Advertising can be a road to riches for their networks. some social networks—and has shown some real promise on MySpace and The Web needs to see even more diverse Yahoo!—where there is a mass of users models come to light—models that sup- and extensive use of behavioral targeting. port the human need for communication But, for most social networks, advertising and connection, while providing a high is not the panacea and community build- enough return to secure a long-term ers are going to have to find other ways to future for the communities being built. get a return out of their social investment. Running through all these lessons from the Facebook phenomenon—the importance of business fundamentals, the interactions, the network, the platform and the spotlight—the common thread is the need for companies to create lasting, valuable relationships with their actual customers by giving them a voice and responding to their desire to engage. Facebook users are generally OK with the corporate game; they just want their seat at the table.FEED: The Razorfish Consumer Experience Report / 2008 I thInk I’m gettIng the hang of thIs. 27
  15. 15. by Kyle Outlaw ics of world- innovation. Statist U.K. in mobile wireless see three a, Japan and the few years should tries such as Kore owever, the next U.S. is behind coun pport this view. H rception that the ures appear to su the global mobilit y landscape. It’s a common pe obile browsin g and gaming feat nificant impact on S, MMS, m omise to have sig wide usage of SM ile industry that pr ts in the U.S. mob major developmenFEED: The Razorfish Consumer Experience Report / 2008 I am beached In mauI. 29
  16. 16. Life After the iPhone: Preparing For The 3G Mobile Internet There is a commonly-held perception that the US is behind in mobile wireless innovation as compared to countries such as Korea, Japan, and the UK. A statistical review of worldwide usage of such features as SMS, MMS, mobile browsing, and gaming would appear to support this conclusion, however, we are seeing three major developments within the US mobile industry that promise to have significant impact on the global mobility landscape within the next few years. Meizu M8 Samsung F700 Should you pay $700 for a phone? The LG Prada phone is one of the many iPhone killers being released this year. Design Rules Platform Wars The first major development is in mobile user experience. For the past The second major development is the wave of innovation often referred to as decade, prospective “mobilists” in the U.S. have been accustomed to steady the “American Idolization” of mobile application development, which began advances in user-centered design for PC and Web-based applications. with Google’s “Android Developer” contest. This contest offered up to $10 Combine this with the poor design quality of most mobile applications, and million to developers as an incentive to create applications for its as-yet-to- Openmoko Neo one can see why most users haven’t been inclined to use a phone for anything be-released platform. It was soon overshadowed by the $100 million iFund, beyond voice services. sponsored by venture capitalists Kleiner, Perkins, Caufield & Byers, which awarded money for iPhone applications and even whole start-up ideas. Later, With the introduction of the iPhone, however, Apple set the bar for device not to be outdone, BlackBerry announced its $150 million BlackBerry Fund. simplicity, and the handset community is now being forced to play catch-up. The iPhone shattered the long-held notion that cell phones must be These competing sources of funding have made the development cost per intrinsically difficult to operate. In response, several would-be iPhone killers application quite low, as the award money is distributed among thousands have already been released, including: the Samsung F700, the LG Prada, the of developers. Moreover, whichever platform gets the most developers cod- Sony Ericsson W880 Walkman, the Meizu M8, the HTC Diamond and the ing for its platform can set the standard. The net effect? These competitions Openmoko Neo. have kick-started a wave of innovation within the wireless industry in the U.S.FEED: The Razorfish Consumer Experience Report / 2008 I don’t know why I’m stIll updatIng my status. 31
  17. 17. Open Access and 3G The third major development is Web service among consumers on a global scale. This will complete the convergence of the PC and the phone by the end of this decade. T-Mobile G1 Expect to see the “mashup” ethos of Web 2.0 (think Facebook apps, in par- ticular) extend into the mobile arena. The result will be numerous new and innovative products and services that our clients will provide to existing cus- tomers and new, unforeseen customer bases. iPhone Is Only the Beginning While the iPhone represents a significant milestone in the history of mobile, it is unclear whether it will ultimately dominate the smartphone market, even here in the U.S. The so-called “iPocalypse”—in which thousands of customers suffered various activation woes—drew attention to the challenges of scaling a mobile platform. One device manufacturer may have difficulty supporting an entire platform on its own (BlackBerry, take note). Platform agnosticism—enabling a platform to run on multiple devices—may yet prove to be the best long-term survival strategy. Will Apple choose to separate software from device and make its OS available on other devices, or is it doomed to repeat history as with its refusal to license its GUI to Microsoft back in the 80s? Time will tell. Meanwhile, the iPhone is probably just the tip of the iceberg as we make the transition to an age of disruptive mobility. HTC Diamond Sony Ericsson The true impact on the global mobility landscape will come from the criti- W880 Walkman cal mass generated by focus on user experience, innovation from competing mobile platforms and newly available device-agnostic wireless spectrum. The next wave of 3G-enabled smartphones will provide whole new opportunities for interactive agencies and their clients to create mobile applications leverag- ing social networking, the semantic Web, video games and beyond. I am now the envy of all of my co-workers.FEED: The Razorfish Consumer Experience Report / 2008 Guess that’s why. 33

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