Riding the Wave of
Social Networking
Insights and Tactics for Publishers, Marketers
and Agencies

Jon Gibs, VP Media Analy...
Social Networking is Big…

                                               Global Active Reach Global Active Reach         ...
Social Networking is Big…Everywhere




                             Composition of UK Active Unique Audience: January 200...
U.S. Experiencing Comparably Low Growth
    12.5%

            10.3%          9.9%           9.9%         9.6%



        ...
So, Why is it So Big?
•   Emotional need/desire to be heard
•   Desire to connect with one another
•   Need to create and ...
CGM Creating a Continental Shift in Time Spent…
  6%
  5%                                                             6%
 ...
…More So in Europe than the U.S.

     100%                           4%
                                    4%           ...
Globally - 35-49 Year Olds Fastest Growing
Audience…
     12
   )
   s
   n                 Female
   o
   i 10
   l
     ...
…However, in the U.S., it’s 50-64 Year Olds
    12
    3.0
   )
   )
   s
   s
   n
   n
   o                  Female
    ...
Consequently, the Older Shift is More
Pronounced in the U.S…
                                                             ...
…U.S. Over-Indexes on 50-64s & Under-
Indexes on 18-34s

      100%                             6%
                       ...
Why Has Facebook Done So Well?




 • Simple design
 • Broad appeal
 • Focus on connecting
 • Architecture
 • Walled Garde...
Orkut is Brazil’s 3rd Biggest Brand


                                               Active      Time
          Network
  ...
Local Language Dominant in Germany

                                                       Active     9-Month Unique      ...
The Mixi Story in Japan
                                                                   YoY Unique    Time per
    Netw...
Seriously, What is the Problem with Social
Media?


                  Safety?

                  Context?

             Ad...
Once You Move Past The Excuses,
There Are Two Issues

• Not all social media is the same…and only some is actual
  media
•...
What Is The Difference Between
                  These Two Properties?

                                                  ...
So Let’s Deconstruct Social Media…
                  “Email/VOIP”

                  “Communications”

                  M...
Now To The Monetization Part

                Communications




      Amateur                    Professional




       ...
Now To The Monetization Part

                Communications




      Amateur                    Professional




       ...
Measuring the Effectiveness of CGM:
Treating Blog Mentions as Ad Impressions




                                       Me...
BuzzReach Methodology
1.) Buzz




2.) Panel




3.) Calculation




                                    © 2009 The Nielse...
Overall Reach, Frequency and GRP by Query




Buzz Query          BuzzReach               Reach %   Impressions   Average ...
BuzzReach RF vs. NetView Web RF
                            Impressions                        Total R/F/GRP              ...
Now to the Monetization Part

                Communications




      Amateur                    Professional




       ...
How do we Better Identify Influencers?
Step 1: Build classifiers to identify the consumers discussing the client’s brand
 ...
Managing Influencers - Key Principles
All consumers are not created equal, and influencers differentiate themselves from
“...
© 2009 The Nielsen Company
www.nielsen-online.com / www.nielsen.com
Conclusions
• Audience:
   • Social Media is a significant and growing online trend. The U.S. is a large market, but
     ...
The Nielsen Company’s Global Footprint
                                                            Nielsen Company
       ...
Specific Market Presence




                                  © 2009 The Nielsen Company
                      www.nielse...
About Nielsen Online
Nielsen Online, a service of The Nielsen Company, delivers comprehensive, independent
measurement and...
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Riding Wave Social Networking 24 Mar 2009

  1. 1. Riding the Wave of Social Networking Insights and Tactics for Publishers, Marketers and Agencies Jon Gibs, VP Media Analytics jon.gibs@nielsen.com Alex Burmaster, Communications Director, EMEA alexander.burmaster@nielsen.com © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  2. 2. Social Networking is Big… Global Active Reach Global Active Reach 2 Month Rank Sector Dec 08 Feb 09 % Point Change 1 Search 85.9% 86.4% 0.5% General Interest 2 85.2% 86.2% 1.0% Portals & Communities Software 3 73.4% 72.8% -0.6% Manufacturers 4 Member Communities 66.8% 68.4% 1.6% 5 E-mail 65.1% 64.8% -0.3% Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company December 2008 - February 2009 www.nielsen-online.com / www.nielsen.com
  3. 3. Social Networking is Big…Everywhere Composition of UK Active Unique Audience: January 2009 ¹Global = USA, Brazil, United Kingdom, France, Germany, Italy, Spain, Switzerland, and Australia Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company December 2007 – December 08 www.nielsen-online.com / www.nielsen.com
  4. 4. U.S. Experiencing Comparably Low Growth 12.5% 10.3% 9.9% 9.9% 9.6% 5.4% 4.9% 2.9% 2.7% 2.6% 1.4% Percentage point increase in active reach of ‘Member Communities’ Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company December 2007-December 2008 www.nielsen-online.com / www.nielsen.com
  5. 5. So, Why is it So Big? • Emotional need/desire to be heard • Desire to connect with one another • Need to create and make change • Evangelize for the things and people we love • Quest for authenticity • Ease of Use / Low Barriers to Entry / Technology “…from the futile aspirations of the everyman to break out of his lonely anonymous life of quiet desperation, to step in front of the whole world and be somebody, dude.” Bob Garfield, Wired “Everyone in the back of his mind wants to be a star.” Chad Hurley: Co-founder, YouTube © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  6. 6. CGM Creating a Continental Shift in Time Spent… 6% 5% 6% EU US 4% 3% 2% 3% 1% 1% 0% 0% 0% 0% 0% ‐1% ‐1% ‐1%‐2% ‐1% ‐1% 0% ‐2% ‐3% ‐4% ‐5% ‐5% Percentage Point Change in Allocation of Home Internet Time Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company February 08 – February 09 www.nielsen-online.com / www.nielsen.com
  7. 7. …More So in Europe than the U.S. 100% 4% 4% 4% 3% 7% 5% 90% 14% 11% Videos/Movies 80% Search 70% 19% 19% eCommerce 60% CGM 50% 20% 24% Entertainment 40% Communications 30% Content 20% 28% 39% 10% 0% EU US How Home Internet Time is Allocated Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company February 2009 www.nielsen-online.com / www.nielsen.com
  8. 8. Globally - 35-49 Year Olds Fastest Growing Audience… 12 ) s n Female o i 10 l 6.1 l i m ( Male e 5.7 c 8 n e i 5.7 d u A 6 e u q i n U 4 5.2 n i e s a 2 3.3 1.4 e r c 0.6 2.6 n I 1.1 1.3 0 2 - 17 18 - 34 35 - 49 50 - 64 65+ Increasing Global Unique Audience to Member Community Sector Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company December 2007 – December 2008 www.nielsen-online.com / www.nielsen.com
  9. 9. …However, in the U.S., it’s 50-64 Year Olds 12 3.0 ) ) s s n n o Female Female 6.1 2.5 o 2.5 i i 10 l l l i i Male Male m m ( ( e 2.0 e c 5.7 c 8 n n e e i i 5.7 d d 1.5 u u A A 6 e e u u 1.0 q 0.2 q i i n 5.2 0.7 U 4 0.9 n 0.5 i e 0.3 0.4 s g a 3.3 0.4 1.4 n 2 e 2.6 a 0.0 r n c -0.1 0.6 -0.1 n C I -0.2 1.1 1.3 -0.5 0 2 -- 17 2 17 18 - 34 18 35 - 49 50 - 64 65+ Changing U.S. Unique Audience to Member Community Sector Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company December 2007- December 2008 www.nielsen-online.com / www.nielsen.com
  10. 10. Consequently, the Older Shift is More Pronounced in the U.S… 10% 7% 7% Global US 4% 2% ‐1% ‐1% ‐4% ‐6% ‐9% 2 ‐ 17 18 ‐ 34 35 ‐ 49 50 ‐ 64 65+ Changing Composition of Member Community Audience Source: Nielsen Online, NetView, Home & Work, including © 2009 The Nielsen Company applications, December 2007 – December 2008 www.nielsen-online.com / www.nielsen.com
  11. 11. …U.S. Over-Indexes on 50-64s & Under- Indexes on 18-34s 100% 6% 8% 90% 20% 80% 24% 65+ 70% 30% 50 ‐ 64 60% 29% 35 ‐ 49 50% 40% 18 ‐ 34 29% 30% 23% 2 ‐ 17 20% 15% 10% 16% 0% Global US Composition of Active Unique Audience to Member Community Sector Source: Nielsen Online, NetView, Home & Work, including © 2009 The Nielsen Company applications, December 2008 www.nielsen-online.com / www.nielsen.com
  12. 12. Why Has Facebook Done So Well? • Simple design • Broad appeal • Focus on connecting • Architecture • Walled Garden • Media coverage © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  13. 13. Orkut is Brazil’s 3rd Biggest Brand Active Time Network Reach Per Person Orkut 70% 4:16:22 MySpace 4.2% 00:11:34 Facebook 3.5% 00:21:36 Source: Nielsen Online, NetView, Home, © 2009 The Nielsen Company including applications, February 2009 www.nielsen-online.com / www.nielsen.com
  14. 14. Local Language Dominant in Germany Active 9-Month Unique Time Per Rank Network Reach Audience Growth Person 1 Stayfriends 12.6 82% 0:21:16 2 Wer-kennt-wen 12.2 55% 2:34:09 3 studiVZ 10.4 3% 1:58:16 4 MySpace 9.0 6% 0:36:27 5 schülerVZ 8.9 6% 1:21:00 6 Facebook 7.0 263% 2:24:17 Source: Nielsen Online, NetView, Home data, © 2009 The Nielsen Company including applications, May 2008 - February 2009 www.nielsen-online.com / www.nielsen.com
  15. 15. The Mixi Story in Japan YoY Unique Time per Network Active Reach Audience growth person mixi 14% 17% 1:56:05 Lococom 2% 8% 0:06:07 Kanshin-kukan 2% -13% 0:01:11 edita 2% 68% 0:09:17 MySpace 2% 23% 0:14:07 Facebook <1% n/a 0:38:11 Source: Nielsen Online, NetView, Home data, including © 2009 The Nielsen Company applications, December 2008 www.nielsen-online.com / www.nielsen.com
  16. 16. Seriously, What is the Problem with Social Media? Safety? Context? Advertiser Control? Hard to Buy? © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  17. 17. Once You Move Past The Excuses, There Are Two Issues • Not all social media is the same…and only some is actual media • Measurement has not kept the pace with technology © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  18. 18. What Is The Difference Between These Two Properties? Media Time Per Person Communications Nielsen Online NetView (2/09) © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  19. 19. So Let’s Deconstruct Social Media… “Email/VOIP” “Communications” Microblogging (Twitter, etc) Social Networks Viral Video “Amateur” “Professional” Blogging Widgets PodCasting “Media” “Standard Media” © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  20. 20. Now To The Monetization Part Communications Amateur Professional Media © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  21. 21. Now To The Monetization Part Communications Amateur Professional Media © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  22. 22. Measuring the Effectiveness of CGM: Treating Blog Mentions as Ad Impressions Metered Surfing Behavior Q: What can we show? A: Reach, frequency, placement influence, CPG ROI (via NetEffect), GRPs, demographics, branding lift (via survey) or any other metric that would be associated with advertising measurement Q: Where are we now? A: This will require Buzz Reach 2.0 to be put into place. Also, automated sentiment is likely required. We are currently working through the process with both the Buzz and MegaPanel engineering team for the phase without sentiment. Likely launch in 1/09. With sentiment it may be later. © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  23. 23. BuzzReach Methodology 1.) Buzz 2.) Panel 3.) Calculation © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  24. 24. Overall Reach, Frequency and GRP by Query Buzz Query BuzzReach Reach % Impressions Average GRP Frequency “Pacer” 383,501 .22% 530,748 1.38 .304 “AMC” 263,970 .15% 378,812 1.44 .216 Hybrid “Geo Cell” 65,323 .04% 78,054 1.19 .048 © 2009 The Nielsen Company Nielsen Online BuzzReach (1/09) www.nielsen-online.com / www.nielsen.com
  25. 25. BuzzReach RF vs. NetView Web RF Impressions Total R/F/GRP Target R/F/GRP Audience Audience Total Target % in % of 2+ % of Reached Freq GRPs Reached Freq TRPs [000] [000] Target Univ. Target [000] [000] Comcast.net 132 52 39 129 0.07 1.03 0.07 51 0.06 1.02 0.06 MSN/Windows Live 35 19 54 35 0.02 1 0.02 19 0.02 1 0.02 AutoTrader.com 135 53 39 125 0.07 1.08 0.08 50 0.06 1.05 0.07 AutoMart.com 415 242 58 209 0.12 1.98 0.23 118 0.15 2.04 0.3 Photobucket 189 93 49 177 0.1 1.07 0.11 86 0.11 1.08 0.12 Sum/Average 906 459 51 666 0.37 1.36 0.5 320 0.4 1.43 0.57 “Pacer” BuzzReach 531 271 51 384 .22 1.38 .304 191 .24 1.42 .35 © 2009 The Nielsen Company Nielsen Online BuzzReach/WebRF (1/09) www.nielsen-online.com / www.nielsen.com
  26. 26. Now to the Monetization Part Communications Amateur Professional Media © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  27. 27. How do we Better Identify Influencers? Step 1: Build classifiers to identify the consumers discussing the client’s brand using Nielsen Online’s proprietary software and database of thousands of communities Step 2: Augment list using Nielsen Mega Panel traffic data Step 3: Create list of most influential authors discussing the client’s brand based on the audience reach, relevance of messages, robustness of posts and knowledge of gaming computers Step 5: Investigate each influencer to determine qualitative findings, demographic information, contact information and presence on the Web Step 6: Rank each influencer based on a weight system for the following metrics: Sentiment toward the client’s brand, Influencer Segment, Buzz*Reach, Unique Audience, Average Time Per Visit, Total Posts, Relevance and Online Presence © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  28. 28. Managing Influencers - Key Principles All consumers are not created equal, and influencers differentiate themselves from “typical” consumers because of their innate desire to speak out and be heard, and to ultimately impact the behavior of others in their social networks. As such, they must be carefully managed, and brands must develop intelligent frameworks for pinpointing and managing such consumers. • You can't buy their love: Core influencers can’t be bought. They take pride in appearing objective and impartial. • Consumers can smell a rat a mile away: Many consumers get it. They know their neighbors, and they can sniff out an imposter faster than an e-mail virus. • If you are sincere about fixing the problem, they’ll respect you: Company advocates that enter message boards to proactively address an issue in a genuine way rarely lose with consumers. “I’m sorry” goes a long way. • Consumers own the controls: As companies and brands migrate to the Internet space, they often carry over the wrong assumptions about how much they can control the consumer. The reality is that brands have far less control; even the most successful communications effort is not going to change that. © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  29. 29. © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  30. 30. Conclusions • Audience: • Social Media is a significant and growing online trend. The U.S. is a large market, but neither the largest, or the fastest growing. Indeed, America has not yet hit its peak • 35 to 49 years olds are the fastest growing audience globally, although the U.S. skews older • Success Stories: • Simplicity, communication/connections and a broad appeal has driven Facebook’s growth • However, localized Social Media sites site as Mixi in Japan or Stayfriends in Germany drive more localized networks • Monetization: • Once you move past the excuses, metrics and an inability to correctly segment the needs of different types of networks have hindered monetization • To correctly segment the market, advertisers and agencies should segment properties by their role as a communication platform or a media platform and develop different strategies around outreach and advertising that is customized to the strengths of different platforms © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  31. 31. The Nielsen Company’s Global Footprint Nielsen Company offices Nielsen Online local products • Nielsen coverage in more than 100 countries • Nielsen Online measures 95% of global Internet ad spend l © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  32. 32. Specific Market Presence © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com
  33. 33. About Nielsen Online Nielsen Online, a service of The Nielsen Company, delivers comprehensive, independent measurement and analysis of online audiences, advertising, video, consumer-generated media, word of mouth, commerce and consumer behavior, and includes products previously marketed under the Nielsen//NetRatings and Nielsen BuzzMetrics brands. With high quality, technology-driven products and services, Nielsen Online enables clients to make informed business decisions regarding their Internet, digital and marketing strategies. For more information, please visit www.nielsen-online.com Also, visit our blog at www.nielsen-online.com/blog About The Nielsen Company The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries,with headquarters in New York, USA. For more information, visit www.nielsen.com © 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com

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