Garrick Schmitt
Group Vice President, Experience Planning
Twitter: @gschmitt
http://www.digitaldesignblog.com

http://feed.razorfish.com

2007 Study: Web 2.0 “Hot or Not”?
In 2007 we wanted to find out what types of Web 2.0 tools were really
being used by consumers (e.g. tag clouds). We found that consumers were
far more sophisticated, and further along the adoption curve, then most
had thought. Web 2.0 was beyond hot – it was mainstream.
Image courtesy of web54.fortrabbit.de

2008 Study: Understanding Impact of Web 2.0
How do people “live” online today?
•
How has Web 2.0 changed consumer
•
behavior?
What is impact of the “social web”?
•
What drives online purchase habits?
•
Who is using the mobile web and what
•
are they doing?

Connected Consumers Shoot The Adoption Curve
“Connected consumers”
are more sophisticated
than most pundits would
have you believe.
They embrace social
media, are actively
building and refining their
own trusted personal
networks, and are rapidly
dabbling with emerging
communication offerings
like Twitter – en masse.
Adoption Curve Theory, Crossing the Chasm, Geoffrey A. Moore
Chart, Courtesy of KZERO

Today’s Widget Is Tomorrow’s TV Set
We found that search, feeds and widgets have radically shifted the landscape.
Content now drives awareness, not advertising. We predict that marketers and
publishers will merge tactics as content becomes becomes advertising for
brands to reach and engage consumers and for publishers to acquire them.

“Connected Consumers” Are The New Mainstream
Access to broadband
•
Spent $200 online in the past year
•
Have visited “community” site (MySpace, YouTube,
•
Facebook, Classmates, Wikipedia etc.)
Consumed or created some form of digital media
•
(photos, music, videos, etc.)
Geographically and economically diverse
•

Behavior Trumps Demographics Online
In June 2008, Razorfish surveyed 1006 U.S. consumers (56% female, 44% male)
evenly split between major metros and broader geographic representation.
Survey Respondents % By Age

Start Me Up: The Age of MeMedia Flourishes
64% of connected consumers have customized the homepage of their choice with
content feeds, scheduled updates or features. 91% of connected consumers use
one of the five major internet portals to start their online experiences.

Blunting The Edge: Web 2.0 Goes Mainstream
52% use RSS feeds with some regularity
•
81% read “Most Popular” or “Most Emailed” frequently
•
52% have shared bookmarks through a service
•
41% use tag clouds with some regularity
•
62% use widgets on Web sites such as Facebook or
•
iGoogle
55% use widgets on the computer desktop with some
•
frequency
28% use Twitter with some frequency
•

Pokes No Joke: Navigating The Social Landscape
The biggest change in Internet behavior is social, with today’s killer apps
connecting people and enabling conversations. MySpace, YouTube and Facebook
are clear winners, Web 2.0 darlings like Yelp and Last.FM are not.
Social Media Properties Used By Respondents

So Much To Talk About: Social Time Spent Soars
Regardless of which social media property they choose, consumers are spending
massive amounts of time interacting with each other. 75% spend at least one hour
per week on these properties with 19% spending seven hours a week or more.

The Tweet Effect: New Services Connect, Attract
Consumers are eager to try new things. Twitter, a relatively new service, was used
with at least some frequency by 28% of connected consumers. In March, Nielsen
said that Twitter grew by more than 1000% and has over 7 million users.
Respondents Who Have Used Twitter With Some Frequency

It’s A People Business: Connecting Is The Killer App
The vast majority of consumers use social networks to connect with others. Few
venture there for less-social goals such as finding out about products and
services. Ditto for games and applications, despite proliferation.

Madison Ave. Boon: Ads Spark Chatter, Sales
The vast majority of consumers welcome advertising on social media properties.
40% have made a purchase based on an ad seen on a social media site and 49%
have made a purchase based on a recommendation from social media site.
Respondents Who Think Brands Should Respondents Who Have Made A Purchase Based
Advertise On Social Media Properties On A Recommendation Through A Social Media Property

Social Influence Sways Shopping, Heavily
Peers continue to heavily influence consumer purchasing decisions. The large
majority of consumers, 61%, rely on user reviews for product information and
research, with a much smaller group, 15%, trusting editorial reviews.
Source That Respondents Most Rely Upon
When Making A Purchase Decision

The End Of Traditional Retailers?
Consumers turn away from retailers and turn to peers and search to find products
online. The vast majority prefer starting their shopping experience with a search
engine than visiting the site of an established retailer or eCommerce leader.
Digital Property That Respondents Would Use To Start Their Web Shopping Experiences

Advice To Retailers: Personalization + Perks Works
Personalized recommendation engines have big impact, with 65% of consumers
making a purchases based on an automated recommendation. Another 65%
indicate that loyalty programs highly influence purchase decisions.
65%are
influenced based on
recommendation
engines and loyalty
programs.

Takeaway: Consumers Lead Brands Into Uncharted
Territory, Reward Those That Break New Ground
1. Tomorrow’s great brands are relentlessly adapting to
consumer behavior, not vice versa (e.g. Zappos)
2. Digital consumer behavior defies demographics
3. Connecting is the killer app, tools that assist (e.g. Twitter)
are tried widely, embraced by influencers
4. Distribution continues to trump destination, notion of
“one-stop” experiences falling out of favor
5. Social media still in infancy, eventual monetization will
leverage “influence” to purchases

Thank You
Garrick Schmitt
Group Vice President, Experience Planning
Twitter: @gschmitt
http://www.digitaldesignblog.com