Profiting From Social Media

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Presentation from Tom Smith of trendstream on why social media is the future of content consumption, how to operate and importantly how to make money. Focus on video including global and US research.

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  • The presentation was around the potential to monetise content from a video perspective and looking at how production companies can distribute their content across the web, so didn't get into ROI. This wasn't from a marketing perspective so the only metrics from a content production perspective would be more around views, reach etc, which I touched on.

    I disagree with you on not destroying media broadcast networks. It will, it might take 20 years, but it will. Video online has become mainstream in less than 3 years, going forward it is inevitable that a socially driven TV / Video delivery platform powered by the web will dominate the way we consume content
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  • Hi Tom, well, I was hoping to see some 'metrics', a good 'case' for getting an ROI on Social Media and Twitter especially. I don't think it's there and it won't be. In fact the studies now from a 'behavioral' perspective have to do with 'lost hours of productivity' for employers, obsessive and compulsive 'addicts' that get side tracked by 'tweets' rather than focus on their work, web sites and email 'spammed' beyond reason, passing of 'test question' answers in college (cheating) and no viable model reflective of successful 'monetization'. Trainers are making money on this hot new trend, specifically Twitter, and you should read the attempts at research to 'quantify' the advantages. Right now, everyone get's excited about large numbers and the potential, but really all this runs 'counter' to tradititional marketing science.
    IF I agree with you on one thing it is that 'on demand' video is going to be HOT, is hot and you are correct, there will be I believe a 'balanced' distribution of content, but it won't DESTROY media broadcasting networks.
    Cheers
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  • Very nice. I plan on sharing it!
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  • nice one mate... good to see your up and running
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Profiting From Social Media

  1. 1. <ul><li>Profiting from Social Media </li></ul><ul><li>Producing Content for On Demand Markets </li></ul><ul><li>Wessex media group. 21.01.09 </li></ul>Email: [email_address] Mobile: +447970727061 Web: trendstream.net Twitter: Tomtrendstream LinkedIn: linkedin.com/in/smithtom
  2. 2. Revolution: Future is open <ul><li>Social media is transforming the delivery of content </li></ul><ul><ul><li>The controllers of content distribution (e.g bbc, ITV etc) will die </li></ul></ul><ul><li>Everything will be open </li></ul><ul><ul><li>Only barrier is talent, knowledge and hardwork </li></ul></ul>
  3. 3. Opportunity of a lifetime <ul><li>The future is in the hands of content creators </li></ul><ul><ul><li>consumers, freelancers, production companies </li></ul></ul><ul><li>The future requires broad skills </li></ul><ul><ul><li>Production, distribution, writing, community building </li></ul></ul>
  4. 4. I will show you how – focus on video <ul><li>Why social media is the future of content distribution </li></ul><ul><li>Rules of content in social media </li></ul><ul><li>$How to make money$ </li></ul><ul><li>The pioneers </li></ul>
  5. 5. Me... OPEN FOR BUSINESS Head of Consumer Futures EMEA Founder of trendstream <ul><li>Created worlds largest social media survey to track global trends in usage </li></ul><ul><li>Advised clients on social media </li></ul><ul><li>Launched Global Web Index to track global web trends </li></ul><ul><li>Advise on future web and social media strategy </li></ul><ul><li>Global media planning and buying agency </li></ul><ul><li>Web consultancy dedicated on understanding global web trends and what they mean </li></ul>
  6. 6. I developed a global Social Media Tracker <ul><li>Online market research </li></ul><ul><li>17,500 people in 29 countries delivering 3 years of trend data </li></ul><ul><li>Unique set of data </li></ul><ul><li>Measured social media platforms such as blogging, social networking, video sharing and photo sharing </li></ul>
  7. 7. Next: Global Web Index <ul><li>Launching a global web tracking survey that will cover 16 countries to measure usage trends world-wide </li></ul><ul><li>Measuring all aspects of web usage </li></ul><ul><li>First wave delivered in June. Test data today from the US </li></ul>
  8. 8. <ul><li>Why social media is the future of content distribution </li></ul>
  9. 9. Social Media. Everyone involved “ Web based media driven by consumer content, community and peer to peer distribution” Blogs Micro blogging Forums Social Networks Wikis Video sharing sites Podcasts Photo sharing sites Content sharing sites
  10. 10. Access is open Free broadband Laptops for £200 HD Video camera for £200 Video on Mobile phones
  11. 11. Social media is exploding globally Social Media adoption over time (waves 1 – 3) Global Average. Source: Universal McCann Social Media Tracker Power to the People
  12. 12. Social media dominates web users lives Global Average. Source: Universal McCann Social Media Tracker Power to the People
  13. 13. Social media impacts everyone “ Samsung Netbook” Consumer generated
  14. 14. Consumer content more trusted than professional “ Thinking about where you find information for products, brands and services that you buy. Please can you rate them in terms of how trust worthy the information provided typically is? Where 10 = Very trustworthy and 1 = Not at all trustworthy” Global Average Least trusted Most trusted Global Average. Source: Universal McCann When Did We Start Trusting Strangers
  15. 15. Moving to every screen PC Mobile TV
  16. 16. Not just another marketing channel Past: Terrestrial Cable / Satellite Radio Newspaper CD DVD Future: Web to TV Web to mobile Web to e-paper Web to car Connected by social platforms
  17. 17. Why it scares the life out of the system <ul><li>Consumer in charge </li></ul><ul><li>Ultra transparency </li></ul><ul><li>Global networks </li></ul><ul><li>Open platforms = business models destroyed </li></ul>
  18. 18. Video online: quickest growth medium in history Global data. Universal McCann Wave 3 Social Media Tracker
  19. 19. World-wide trend. Fast growing markets lead Watched video online Universal McCann Wave 3 Social Media Tracker
  20. 20. Becoming up-loaders: USA last week Watch Share Upload 72% 39% 32% Source: Trendstream, Global Web Index. Test survey Jan 2009
  21. 21. Not just Youtube Source: Trendstream, Global Web Index. Test survey Jan 2009
  22. 22. Social networks are now key video platforms Myspace Bebo original Global data. Social Network Users. Universal McCann Wave 3 Social Media Tracker
  23. 23. Viewing outside the site is key to growth
  24. 24. Consumer distributes How many people did you share it with? Source: Trendstream, Global Web Index. Test survey Jan 2009
  25. 25. Bloggers are your distribution 190m Worldwide! 29% of bloggers have posted a video clip Global Average. Source: Universal McCann Social Media Tracker Power to the People
  26. 26. Video Podcasts. Slower than on-demand sites Downloaded video podcast Global Average. Source: Universal McCann Social Media Tracker Power to the People
  27. 27. Moving multi-platform: Mobile now for video 79% of iPhone users have watched video clips on their phone VERSUS 22% of Nokia users Source: Trendstream, Global Web Index. Test survey Jan 2009
  28. 28. Traditional media are responding Kangeroo – BBC, ITV and Channel 4 joint venture. coming 2009
  29. 29. BUT can’t compete <ul><li>They have been successful </li></ul><ul><ul><li>Great content </li></ul></ul><ul><ul><li>Cross promotion </li></ul></ul><ul><ul><li>Huge investment </li></ul></ul><ul><li>Future is open </li></ul><ul><li>Future is global </li></ul><ul><li>Consumer driven </li></ul><ul><li>No DRM no rights management </li></ul>
  30. 30. Living room in 2020 <ul><li>Web will deliver content globally on all screens </li></ul><ul><li>What you watch, listen to and read will be shared with friends on a social platform </li></ul><ul><li>On-demand will be bigger than live </li></ul><ul><li>Consumer generators will be on the same platform as professional </li></ul>
  31. 31. <ul><li>Rules of social content distribution </li></ul>
  32. 32. Not broadcast – you need a long perspective Trendstream viewing estimates. TV show versus online
  33. 33. A BIG database – a mentality change <ul><li>Television expires as soon as it is viewed </li></ul><ul><li>Web content exists forever </li></ul><ul><li>Overnight ratings do not matter in a web world </li></ul><ul><li>Cumulative views do </li></ul><ul><li>TV is a push medium </li></ul><ul><li>Web is a pull medium </li></ul>
  34. 34. Longtail - Niche is the future Trendstream viewing estimates. Viewing audiences longtail Cable / satellite TV Web
  35. 35. Instant easy access is everything <ul><li>Piracy is about access, not free </li></ul><ul><li>Piracy is falling because of social media </li></ul><ul><ul><li>50% of Youtube views are music videos </li></ul></ul><ul><ul><li>Undermines the need to own </li></ul></ul><ul><li>Make it available, make it easy </li></ul><ul><ul><li>Put ‘Heroes’ on the web from day one and you destroy piracy </li></ul></ul>
  36. 36. Focus on data = gold <ul><li>Web video is more valuable because of the data that surrounds it </li></ul><ul><ul><li>Who viewed </li></ul></ul><ul><ul><li>How much they viewed </li></ul></ul><ul><ul><li>What else they viewed </li></ul></ul><ul><ul><li>How often they come back </li></ul></ul>
  37. 37. More valuable, because its more targeted <ul><li>Watched by people who want to watch it </li></ul><ul><ul><li>No passive viewing </li></ul></ul><ul><ul><li>They chose to watch it </li></ul></ul><ul><ul><li>More valuable to advertisers </li></ul></ul>
  38. 38. Be commercial: no line in the future <ul><li>The only thing that matters is that its free to access </li></ul><ul><li>Commercial involvement is not an issue </li></ul><ul><li>Brands have interesting stories to tell </li></ul><ul><li>Great content is great content </li></ul>
  39. 39. Multi-platform <ul><li>Content needs to be distributed outside of your website </li></ul><ul><li>Content should be open and free </li></ul><ul><li>No restrictions </li></ul><ul><li>Use tools </li></ul>
  40. 40. Create community around content <ul><li>Communities cluster around content </li></ul><ul><li>Community drives viewing, distributes your content and provides feedback </li></ul><ul><li>Community should be external as well </li></ul><ul><ul><li>Youtube channel, Bebo community etc </li></ul></ul><ul><li>Casual community </li></ul><ul><ul><li>Blogs, Twitter </li></ul></ul>
  41. 41. No such thing as just a video: multi-dimensional <ul><li>You need to blog </li></ul><ul><li>Share photos </li></ul><ul><li>Invite user contribution </li></ul>
  42. 42. Engineered for search <ul><li>Search terms drives most viewing </li></ul><ul><li>Critical how you tag and label content </li></ul><ul><li>Search evolving to look inside the video e.g Blinkx </li></ul>
  43. 43. Welcome to the production company of 2020 <ul><li>Distributing direct to consumers </li></ul><ul><li>Community managers </li></ul><ul><li>Blog writers </li></ul><ul><li>Global network </li></ul><ul><li>Consumer network of creators </li></ul><ul><li>Focus on multiple niches </li></ul><ul><li>Data experts </li></ul><ul><li>Linked to an advertising agency </li></ul>
  44. 44. Recap: <ul><li>Long term perspective </li></ul><ul><li>Collections of niche </li></ul><ul><li>Lifetime content </li></ul><ul><li>Build community around content </li></ul><ul><li>Distribute on all sites </li></ul><ul><li>Broad skillset </li></ul>
  45. 45. <ul><li>How to make money $$! </li></ul>
  46. 46. Think free world economics <ul><li>You can not charge upfront to access content online </li></ul><ul><li>Build a community and then make money from it </li></ul><ul><li>Charge the few, rather than all </li></ul><ul><li>Think lifetime content </li></ul><ul><ul><li>Open the back catalogue </li></ul></ul><ul><li>Think multiple revenue streams </li></ul>
  47. 47. Advertising has changed <ul><li>Sponsorship </li></ul><ul><li>Branded content </li></ul><ul><li>Product placement </li></ul><ul><li>Revenue splits with platforms e.g Youtube and Revver </li></ul><ul><li>Social ad networks </li></ul><ul><li>Affiliate schemes </li></ul><ul><ul><li>Sell other peoples products </li></ul></ul>
  48. 48. New revenue streams <ul><li>Partnerships </li></ul><ul><ul><li>E.g travel content to travel agent </li></ul></ul><ul><li>Cross selling </li></ul><ul><ul><li>Branded products </li></ul></ul><ul><li>Premium content </li></ul><ul><ul><li>Convert 2% of your audience </li></ul></ul><ul><ul><li>Rise of micropayments </li></ul></ul><ul><ul><li>Sell on iTunes </li></ul></ul><ul><li>Syndication </li></ul><ul><ul><li>Sell to portals, networks, mobile networks </li></ul></ul>
  49. 49. The “24” of 2020 <ul><li>Distributed across all platforms globally </li></ul><ul><li>Episodes roll as soon as they’re released </li></ul><ul><li>Consumer involved in scripting and production process </li></ul><ul><li>Revenue made from sponsorship, product placement, licensing and micro-payments for exclusive content and premium membership </li></ul>
  50. 50. <ul><li>The pioneers </li></ul>
  51. 51. Buck Hollywood $2,000 Canon camera, a $6 piece of fabric for a backdrop
  52. 52. SMP Films $20,000 a month from Google partner scheme - Product placement and direct advertising
  53. 53. Diggnation <ul><li>185 episodes </li></ul><ul><li>Builds personality and community around the site </li></ul><ul><li>Product placement and sponsorship </li></ul>
  54. 54. Rocketboom <ul><li>Blog TV </li></ul><ul><li>Multiplatform </li></ul><ul><li>200K daily viewers </li></ul><ul><li>Signed distribution deal with Sony </li></ul>
  55. 55. Nike Football <ul><li>Nike Football developed 100s of short videos and commercials around their lead stars </li></ul><ul><li>Distribute across the social web </li></ul>
  56. 56. BMW Films. The Hire – new life in social media <ul><li>Made 2001 and 2002, life before video sharing platforms. </li></ul><ul><li>Distributed via website, cinema and DVD giveaways and cover mounts </li></ul><ul><li>100m views, 2m website registrations </li></ul><ul><li>Imagine distribution today </li></ul><ul><li>Lifetime content – BMW still geting return on investment </li></ul>
  57. 57. <ul><li>Go and create! </li></ul>
  58. 58. Get in touch Email: [email_address] Mobile: +447970727061 Web: trendstream.net Twitter: Tomtrendstream LinkedIn: linkedin.com/in/smithtom

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