Social Network Advertising

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    Social Network Advertising - Presentation Transcript

    1. Social Network Advertising Hussein Fazal [email_address] “ In 2008, if you’re not on a social networking site, you’re not on the Internet.” - IAB Platform Status Report, April 2008
    2. Social Networking - Reach of Web population Source: comScore Inc, Worldwide Feb’08, All Locations, Persons 15+ 53.7% 15,794 29,412 Germany 52.0% 17,583 33,813 France 84.3% 18,181 21,567 Canada 76.7% 25,502 33,249 United Kingdom 66.4% 108,248 163,024 United States 65.4% 538,375 823,203 World-Wide Reach Social Networking (‘000) Internet Users (‘000)  
    3. Canada - Continuous Growth
    4. Social Networking goes beyond facebook! Source:ValleyWag, June ‘07
      • 4th most-trafficked website in the world
      • More than 35 translations available on the site, with over 65 in development
      However, facebook is the largest
      • Worldwide online advertising spending: $40 Billion
      • Worldwide social networking ad spending: $1 Billion
      Advertising Budgets While social networking reaches 65% of Internet users only 2.5% of online advertising spending is directed to social networks! WHY ?
      • Social Network Advertising can be done with small budgets
      • Large brands simply are not sure what to do
      • Large brands are ‘scared’ to lose control
      • Spend just simply hasn’t caught up yet – similar to the transition from traditional advertising to online advertising several years ago
        • There must be a shift in mindset as ROI isn’t as easy to measure
      WHY? 85% of social media users think that companies should interact with them through this medium – emarketer 40% of users have made a purchase based on advertising found on social networking sites - razorfish
      • Banner Advertising
      • Virtual Gifts
      • Creating a group
      • Creating a Page
      • Building an application
      Advertising with facebook
      • Right-hand column – CPM or CPC buys
      • CTR of 0.04%
      Banner advertising w/ facebook
      • More than 95% of facebook members have used apps
      • Better placement Better CTR
      • Deeper Reach
      • But still, not taking advantage of being on a social network!
      Banner advertising on applications
      • Users can deliver gifts publicly or privately
      • Virtual gifts are given a high priority on the news feed so they spread far and fast
      Sponsored Virtual Gifts
      • People buy virtual gifts! (Estimated to provide $3 million in revenues / month for facebook (source: insidefacebook.com)
      • Post discussions, photos, videos, links
      • Easy to send updates directly to members facebook inbox
      • Easy for members to invite their friends
        • The group 1,000,000 Strong for Stephen Colbert grew from zero to one million members in 9 days!)
      • Group acts as a ‘Bumper Sticker’ on users profile pages
      • Create a central place for customers, partners, and friends to participate in conversations around your brand
      Facebook Groups
      • Message blasting limited to 5,000 people (increased from 1200 as of June 2008)
      • Can be a target for spammers
      • Cannot add custom applications
      Facebook Groups Drawbacks Groups are good for quick active discussions attracting quick attention BUT if you are looking to build a long-term relationship between your customers and your brand, pages are the way to go
      • Launched in November 2007 – similar to groups BUT:
        • More flexibility to add content incl. facebook applications
        • No limitation to number of fans you can message
        • You can view demo info of your fans – age, gender….
        • Pages can now have custom flash or HTML (fbml)
        • Users become a ‘fan’ of your page
        • No ads on right hand column
      Facebook Pages
    5. Facebook Page Example - COKE Coke Page has over 1.2 Million fans! Grown virally from news feed News feed is the holy grail of facebook viral growth!
    6. How do I grow my group/page if I am not Coke? Create a reason for users to become a fan and keep coming back i.e. win prizes by becoming a fan of crest whitestrips Create an area for discussion, not a branded destination Kick off with a banner advertising campaign to build-up initial user base
      • Gives you an easy way to bring your customers together and opens a ‘long-term’ relationship
      • Must be comfortable with negative chatter about your brand
      • Facebook is committed to continuing to build out the pages functionality
      • BUT – There is a MORE ENGAGING way to communicate with your customers…
      • Build a Custom Application
      Are pages/groups the answer?
      • Apps can offer a specific level of branded engagement whereas pages are generic
      • More control over the holy grail. What is more engaging?
        • “ Hussein became a fan of ABC”
        • “ Hussein challenges you to beat his score in the ABC super contest - Prove Yourself.”
      • Highest level of user engagement
      • Most people join a group/page for the ‘bumper sticker’ and forget about it
      Custom Applications
      • Build virality into the core of the application
        • Give users a natural and compelling way to invite others i.e. ‘You scored 1200 – Can your friends do better?’
        • Take advantage of holy grail (feed)
      • Cost per install campaign with Ad Networks
        • Banner advertising
        • Cheap Incentivized installs
      Build an application There are over 50k application in the app directory with 140 added per day, so how do I make my app grow?
      • FedEx created “Launch a Package”
      • 300k active users in 6 days because VIRALITY was built in app
      Branded App Example - FEDEX
      • Reebok created “Talkin’ Crazy” where users could write ‘smack’ on shoes and send to friends
      Branded App Example - REEBOK
      • Build a page with a reason for users to be a fan
        • Can be used later to message blast your fan base
      • Build an engaging custom application
        • Built in virality is the key
      • Cross promote the two – encourage app users to become fans of your page and fans of your page to install the app
      • Run a banner campaign to get the initial user base
      With no budget restrictions, what should I do?
      • Banner advertising used to be only for large brands
      Enough about facebook – what about myspace? Until October 12 th when they launched ‘myads’ self serve advertising for budgets between $25 - $25,000
      • Minimum CPC rate of 25 cents
      • Can contain images
      • Advanced targeting options
      • Estimated to provide daily revenues of $160k for myspace already!
      • (source: TechCrunch)
      • myspace has an older demographic
      • facebook has a demographic that reaches people with higher income + more educated
      • facebook has a higher demographic that is African American and Asian. Myspace has a lot more Hispanic users
      • more people are addicted to Myspace (time spent) – skewed due to music users
      myspace demographics myspace vs facebook
      • Nike Soccer
      • 50,000 fans
      • Watch clips, discuss soccer, links…
      • myspace is a mess!
      • Trailing behind – most examples are from 2006!
      myspace pages
    7. What else is out there?
    8. socialvibe
      • Users and brands together support causes
      • Can place widget on facebook, myspace, bebo, myyearbook… profile!
    9. cyworld
      • Over 90% of South Koreans in their 20’s are on cyworld
      • Cyworld profiles (“minihompy” or mini-homepage)
      • Users can ‘decorate’ their avatar and mini-homepage with branded and non-branded items
      • Social Network Advertising spending – small but growing
      • Opportunity for brands – but must change mindset
      • Facebook is the dominant player
      • Can do a lot for very little $
      • New industry - lot’s of innovation still to come
      conclusion
    10. Questions?

    + hussein_fazalhussein_fazal, 11 months ago

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