Social Media and Its Impact on Consumer Behavior

Social Media and Its Impact on Consumer Behavior* (*as of 7pm on 11.12.2007) Ian Schafer CEO & Founder, Deep Focus

1997: i-traffic

1999: Miramax Films

2002: Deffe FOCU Creative. Media. Publicity & Public Relations. Branded Entertainment. Social Media Strategies.

Web 1.0 Connecting people to information.

Web 2.0 Connecting people to each other.

Web 3.0 Everything is connected.

Web 2.5 Where we’re at.

1955: Mass media influences travel through opinion leaders. Individuals then spread, confirm or negate the messages of advertisers through their own “social relationships”. -- Elihu Katz & Paul Lazarsfeld, Personal Influence

1999: Markets are conversations. “A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies.” -- Rick Levine, Christopher Locke, Doc Searls, and David Weinberger, The Cluetrain Manifesto

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Diffusion of Innovation (Information)

The Social Graph

Google’s OpenSocial Opening the Social Graph via the combination of interoperable open platforms. Any social networking/media property can be a “container” that apps can run within.

Facebook’s Pages, Beacon, & Social Ads Maximizing the power of the Social Graph by (partially) opening a closed platform/container. Apps can live on Facebook only, but information flow happens via interactions with other properties.

More information = better Leveraging of the social experience. graph for advertising gains. Is your privacy an illusion? How far is too far?

Will I continue to divulge personal information, even if it makes my experience a better one?

How can we exploit all this information that consumers are willing to divulge?

Why would I want to become “a fan” of a brand, even for a minute?

Why would a consumer want to become “a lifelong fan” of our brand?

Why would I ever want to endorse a brand to my friends?

How can we get the most influential consumers to endorse our brand to their friends?

What’s with all these “friend requests”? I don’t even know these people! Whatever. [ACCEPT], [ACCEPT], [ACCEPT], [ACCEPT].

Look how many friends these influencers have! If we can just get them to love and champion our brand, think about how popular we’d be!

The definition of “friendship” is getting more complicated (and maybe diluted), especially when brands are involved. Managing our social lives is getting more complex. Consumers have never been more generous in the divulging of personal information. Managing relationships with consumers has never been more difficult for brands.

Consumers have an implied contract with social media properties. Advertisers have an implied contract with consumers. Can the two co-exist, or will we have to re-draft these contracts completely?

Website | www.deep-focus.net Blog | www.IanSchafer.com Email | ian@deep-focus.net

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Social Media and Its Impact on Consumer Behavior

by Deep Focus on Nov 12, 2007

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Social Media and Its Impact on Consumer Behavior — Presentation Transcript