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Lecture One
 

Lecture One

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    Lecture One Lecture One Presentation Transcript

    • Online Public Relations David Phillips FIPR
    • Its Pervasive
        • Online reach in the UK was 67% - that's 31.7 million people - in 2006
        • 74% of users accessed the Internet at least once a week, 52% daily
        • 55% of users state that they would be lost without online access
        • Among Internet users, 25% of all time spent exposed to media is now spent online
        • 30% of Internet users are online for a minimum of 2 hours, 51 minutes a day
    • People Really Like the Internet
      • 60% of UK users regard the Internet as their favourite information source and entertainment
      • No doubt because an average Internet user in the UK spends 20 hours a week, 28% say the Internet has caused them to watch less television
    • The Trends
      • Away from traditional web sites to social media.
        • Adult websites are down 20% 2005/6
        • Gambling websites are down 11%
        • Music websites are down 18%
        • Net Communities and Chat websites are up 34%
        • News and Media websites are up 24%
        • Search Engines are up 22%
        • Education (driven by Wikipedia) is up 18%
        • Business and Finance up 12%.
      • (source Hitwise)‏
    • That's not all
      • The internet encompasses
        • Mobile
        • Games like Xbox and Playstation
        • IPTV
        • E-posters and e-paper
        • Financial transaction site, machines and consoles (like cash tills)‏
        • Beyond the PC, the Internet is even more pervasive
    • Just look at Mobile – its bigger than TV and its interactive
      • GSM boasts two and a half billion users across 218 countries and territories - a billion new handsets bought every year.
      • More than seven trillion minutes of calls - two and a half trillion SMS messages last year (GSM Association).
      • 3G, WiFi/WiMax & Satellite offers mobile Internet options and competition.
      • 3G made 7.8 million connections by the end of 2006. Ofcom predict explosion in mobile Internet.
      • In South Korea & Estonia almost 100% of credit card based point-of-purchase sites accept payment via mobile phone credit (and charge) cards
    • Where are people going?
      • More Internet Users
      • Most have fast Broadband
      • More time online
        • ...and yet its not traditional web sites that are adding new users
    • Tesco & HSBC
    • Flickr & Digg
    • MySpace & YouTube
    • People do an awful lot of stuff online
      • MySpace (www.myspace.com) attracted 1.5 billion page views in a day.
      • August 2006 YouTube had 45 terabytes of videos, views reached 1.73 billion and the total time people spent watching YouTube since from the time it started in 2005 was 9,305 years.
    • The end of gardening as we know it
      • People are not going to traditional web site. They want Social Media.
      • ....and its not just young people any more. Axa found that the over 60's spend more time online than gardening or DIY and 41% said the Internet is their favourite pastime
    • Its also the economy
      • Christmas in 2006 over £7.5 billions was spent on-line in the UK
      • More than 10% of all retail sales
      • Equivalent to £125 for every man, woman and child in the country.
      • Over 10% of the UK economy is mediated by the Internet.
      • (source: Reuters)‏
    • ...its gaining pace too
      • In July 2007 online retail sales were up 80% year on year
      • Next had an 18% increase in traffic to their site
      • Some retailers are reporting increased visitor number of 26%
      • ... and this is for traditional web sites!
    • The traditional media is changing too
      • 43% of people who regularly watch online and mobile video watch less normal TV (Source: Media Corp)
      • The Sun newspaper readership is down 750,000 '95 v '05. November 2006 it had 131 million online page impressions and claimed 56 million new online readers
      • Guardian Unlimited had 106 million page impressions and 11.7 million unique users in December, up 19 per cent year on year.
    • Where are the readers
      • There are more readers of the Guardian in the US than in the UK – online.
      • Audit Bureau of Circulation - domestic British newspaper circulation during the six-month period from February, 2007, to July, 2007, fell 3.31%
      • Local newspaper ABC shows, continued year-on-year decline for titles across the UK.
      • Newspapers are countering the decline in print readership by continuing to grow online audiences
    • Mags and B2B
      • Its not just newspapers
      • ABC figures for the six months to June show established favourites such as Take A Break, Heat, Glamour and Yours all taking big circulation hits.
      • The men's magazine sector indicates a less secure future for magazine retailers, with circulations of many top titles continuing to fall dramatically in the face of free competitors and significant growth in online magazines
    • Traditional v New Media
      • Most PR activity is with traditional media
      • Traditional media readership has been falling for a decade.
      • The rate of decline is increasing
      • The 'cost' of advertising is falling
      • AVE (yuk!) counts are dropping
      • Much online PR work is aimed at 'driving traffic to client web sites.
      • Most people don't want to spend time on web sites they are adopting social media and social networks.
      • The money is migrating online too
    • Advertising
      • Total UK online advertising revenues up 47pc to break the £2bn mark. Equivalent to almost half the amount spent on all TV advertising‏
      • UK had the highest uptake of Online Advertising in the world by 2006
      • June 2007 - Print and broadcast ad revenues declined. Business magazines fell by 3.8% and 6.6% respectively, while total press advertising was down 3.3% .
    • The flip side
      • TV ad revenue dropped 0.8% to £962m and radio ad revenue fell 1.8% to £127m in UK Q1.
      • Only the outdoor, cinema, and internet sectors saw an increase in spending, with the web ad market growing 42% from the first quarter of 2006.
      • (Source e-consultancy.com)‏
    • People skip ads
      • 78pc of viewers said they always or almost always use their DVR to fast-forward through commercial breaks.
      • ''The widespread availability of DVRs will force broadcasting advertisers to look at how to create more compelling advertising that is more impervious to fast-forwarding,'' - Steve Gettings, Ofcom's senior broadcasting manager.
    • People avoid ads
      • According to Insight Express, "consumer trust in advertising has plunged 41% over the past three years" and only "10% of consumers say they "trust" ads today."
      • A 2005 study by Yankelovich showed that almost 70% of consumers were actively looking for ways to block, opt-out, or eliminate advertising.
    • Radio is on the blink
      • Radio's own wonder technology, DAB, has seen the number of stations rise to 389, but the total number of radio listening hours dropped significantly.
      • Source Ofcom
      • There are more podcasts than radio programmes.
      • 13% of broadband users listen to podcasts up 18% 2006/7
    • If not advertising – then what
      • People are adept at ignoring advertising (both online and off.
      • People spend time online with groups in conversations
      • The divide between advertising and 'conversations is widening.
      • Spin and hype is, as best, the but of jokes.
      • PR can develop relationship management – advertising can't.
    • Constant change is not a bad thing
      • The Oxford Internet Survey identified that people like to try out new things online and think it is a good idea. (Source : Dutton et al 2005)‏
      • Age of a web site does not necessarily mean that it is more visible in cyberspace ( Source: Adamic and Hubermanx 2005)‏
      • Social media figures highly in optimising online search
      • One in four people visited blogs in 2006 (Source: Google).
    • Relationships have value
      • In 2005 Rupert Murdock's News International bought MySpace for $580million
      • In 2006 Google bought YouTube for $1.6billion.
      • By any conventional form of accounting, neither of these two companies had assets of more than a few hundred thousand dollars and yet quickly appeared on the balance sheets of the new owners.
    • How relationship value is created It was in the content and relationships that had been created by people who used these online facilities. Millions of people had created content and shared it among social communities both large and small. The 'assets' were created by the users.
    • The Relationship Cloud One might call such communities a 'Relationship Cloud' and they have value in themselves.
    • What is so different about social media
    • What is the big driver that makes people want this stuff There is a deep need that drives people to use social media. This contribution to the 'For Immediate Release' Podcast explains The FIR contribution
    • What is changing
      • People are using the internet more
      • They are deserting newspapers and TV for the Internet
      • They don't like advertising
      • They like to use social media and experiment
      • They operate outside organisations
      • They build relationships
      • The psychology, DNA & brain sciences point towards online PR's future
    • Your BIG opportunity
      • Based on the DTI/CIPR report, PR is worth 0.008% of the total UK economy.
      • Online Public Relation contribution to the economy should be something of the order of £8 billion which means that there is an opportunity to double he size of the PR sector.
      • Creative Economy (of which PR is part) is already as valuable to the economy as the financial services sector
      • (Source The Work Foundation)
    • Its amazing!
      • The Internet is ubiquitous
      • Communication is ubiquitous
      • Relationship building online is massive
      • User Generated Content is huge, valuable and commonly created by a high proportion of the population
      • Effects are seen in the media, online shopping and in the value of social media sites
    • So? Lets do it!