1. The Business Value of
Social Networking
October 27, 2009
Presented by:
Chris Coldewey, Ian Cruickshank, Marie Foxall,
Nikhil Jagtiani, Sharlene Myers, and Jason
Robertson
1

2. 2

3. what the bleep?
(Source: wikipedia.org)
3

4. what the bleep?
• Social media are media designed to be disseminated
through social interaction, created using highly
accessible and scalable publishing techniques. Social
media supports the human need for social interaction,
using Internet- and web-based technologies to
transform broadcast media monologues (one to many)
into social media dialogues (many to many). It
supports the democratization of knowledge and
information, transforming people from content
consumers into content producers. Businesses also refer
to social media as user-generated content (UGC)
orconsumer-generated media (CGM).
(Source: wikipedia.org)
3

5. what the bleep?
•Social media supports the human
• Social media are media interaction, using
need for social designed to be disseminated
through social interaction, created using highly accessible
and scalable and web-based
Internet- publishing techniques. Social media supports
the human need for social interaction, using Internettechnologies to transform
and web-based technologies to transform broadcast
media monologues (one to many) into social media
broadcast media monologues (one
dialogues (many to many). It supports the
democratization of knowledge and information,
to many) people from content consumers into content
transforming into social media
producers. Businesses also refer to social media as usergenerated content (UGC) orconsumer-generated
dialogues (many to many).
media (CGM).
(Source: wikipedia.org)
3

6. 4

7. Agenda
• What’s changed
• Tools
• Current uses
• What’s the ROI
• Who’s responsible
• What are the risks
5

8. Agenda
• What’s changed
• Tools
• Current uses
• What’s the ROI
• Who’s responsible
• What are the risks
5

9. The shift
From Portals to Communities
6

10. The shift
From Portals to Communities
6

11. So what are people doing
online?
Sent or received email
99%
Used a search engine
96%
Visited news or information websites
88%
Comparison shopped
84%
Visited a newspaper website
82%
Conducted online banking
77%
Visited a magazine website
67%
Used Ig to chat with friends or family
65%
Listened Internet to radio stations
59%
Visited a blog
58%
Visited/browsed online social networks
Played games online against strangers
Played games online against friends
44%
38%
34%
(Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520))
7

12. So what are people doing
online?
Sent or received email
99%
Used a search engine
96%
Visited a blog
Comparison shopped
Visited news or information websites
88%
84%
58%
Visited a newspaper website
82%
Conducted online banking
77%
Visited a magazine website
67%
Used Ig to chat with friends or family
65%
Listened Internet to radio stations
59%
Visited a blog
58%
Visited/browsed online social networks
Played games online against strangers
Played games online against friends
44%
38%
34%
(Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520))
7

13. So what are people doing
online?
Sent or received email
99%
Used a search engine
96%
Visited a blog
Comparison shopped
Visited news or information websites
88%
84%
58%
Visited a newspaper website
82%
Conducted online banking
77%
Visited a magazine website
67%
Visited/browsed online
Listened Internet to radio stations
Visited blog
sociala networks
Used Ig to chat with friends or family
44%
Visited/browsed online social networks
Played games online against strangers
Played games online against friends
65%
59%
58%
44%
38%
34%
(Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520))
7

14. What are they doing in
social media?
Use the Internet to contact someone you
have lost touch with
51%
Participate in live, online chat over the
Internet
46%
Visit/browse an online social network or
online community
44%
Take part in computer games with other
people online
32%
Download/browse videos from a video
sharing network or online community
32%
Participate in an online forum or bulletin
board discussion
31%
Use an online personals/dating/
introduction service
Upload videos to a video sharing network
or online community
None of the above
17%
12%
19%
(Source: Q1-2009 The Ipsos Canadian Inter@ctive Reid Report, Canadian Internet users (n=824))
8

15. What are they doing in
social media?
Use the Internet to contact someone you
have lost touch with
51%
Participate in live, online chat over the
Internet
46%
Visit/browse an online social network or
online community
In Q4’08 - 5.4 hours/week
spent on social networking
sites
– about 1/3 of all online time –
44%
Take part in computer games with other
people online
32%
Download/browse videos from a video
sharing network or online community
32%
Participate in an online forum or bulletin
board discussion
31%
Use an online personals/dating/
introduction service
Upload videos to a video sharing network
or online community
None of the above
17%
12%
19%
(Source: Q1-2009 The Ipsos Canadian Inter@ctive Reid Report, Canadian Internet users (n=824))
8

16. ...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yahoo! Buzz
Linkedin
DeviantART
Tagged
hi5
Gaia Online
20000
40000
60000
80000
(000)
(Source: May 2009, eMarketer)
9

17. ...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yahoo! Buzz
Linkedin
DeviantART
Tagged
hi5
Gaia Online
20000
40000
LinkedIn
60000
80000
90%
(000)
(Source: May 2009, eMarketer)
9

18. ...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yahoo! Buzz
Linkedin
DeviantART
Tagged
hi5
Gaia Online
20000
40000
LinkedIn
60000
80000
90%
Facebook
97%
(000)
(Source: May 2009, eMarketer)
9

19. ...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yahoo! Buzz
Linkedin
DeviantART
Tagged
hi5
Gaia Online
20000
40000
LinkedIn
60000
80000
90%
Facebook
97%
(000)
Twitter
2,681%
(Source: May 2009, eMarketer)
9

20. Top misconceptions
10

21. Top misconceptions
• Social media is only right for
certain brands
10

22. Top misconceptions
• Social media is only right for
certain brands
10

23. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
10

24. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
10

25. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
• “By using social media we will
lose control of our brand’s
image”
10

26. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
• “By using social media we will
lose control of our brand’s
image”
10

27. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
• “By using social media we will
lose control of our brand’s
image”
• “I don’t need a professional to
do social media for me”
10

28. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
• “By using social media we will
lose control of our brand’s
image”
• “I don’t need a professional to
do social media for me”
10

29. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
• “By using social media we will
lose control of our brand’s
image”
• “I don’t need a professional to
do social media for me”
• Social media is just a fad
10

30. Top misconceptions
• Social media is only right for
certain brands
• Social media is all about
getting traffic — and quickly
• “By using social media we will
lose control of our brand’s
image”
• “I don’t need a professional to
do social media for me”
• Social media is just a fad
10

31. Social Media Tools
• Engaging with your customers
• ...where they are
• ...where you are
• Internal use
11

32. Engaging with your
customers...where they are
Broad social
network platforms
Niche social
network platforms
12

33. Engaging with your
customers...where they are
Realtime, direct
communication
Engaging with
each other
...about you
13

34. Engaging with your
customers...where you are
Blogs, videos, sites, products
14

35. Internal
Communication
Knowledge Management
Project Management
Recruitment
15

36. How is Social Media
being used?
16

37. Marketing & Metrics
Using trackable links
allows the company to
measure the
effectiveness of the
message.
Establishing metrics
related to sales leads
to a better analysis of
social media’s
potential ROI.
17

38. Marketing & Metrics
18

39. Marketing & Metrics
19

40. Research & Analysis
Reporters assess
consumer
interest in news
topics based on
social media
response.
20

41. Troubleshooting
21

42. Measuring Success
• “Social software in business” survey
- 86% of professionals using social media for
business
• 57% for marketing
• 39% for internal collaboration and learning
• 29% for customer support
- 84% not measuring the ROI
(Source: eMarketer.com)
22

43. Measuring Success: Dell
• @DellOutlet has been using Twitter to post
offers and answer questions since 2007
• Now has 1.3 million Twitter followers (Oct
2009)
• Total: $3 million in revenue directly
attributed to Twitter activity (June 2009)
- $2 million direct Dell Outlet sales
- $1 million other Dell sales
(Source: Direct2Dell)
23

44. Measuring Success:
Salesforce.com
• Launched Idea Exchange in 2006 to collect and
prioritize product development ideas from customers
-
Allows customers to post ideas they’d like implemented in the
next software update
-
Community votes on the ideas, helping set priorities
• 5,000 ideas received in first year, customer votes
helped establish which would be most valued
• Salesforce put out four new releases in 2007 (vs. two in
2006), with twice as many new features per release
• Half of new features come from Idea Exchange
(Source: Li, Charlene and Bernoff, Josh. Groundswell: Winning in a World Transformed by Social Technologies)
24

45. Measuring Success
• The key to measuring success is knowing
what success looks like for you
- Who do you want to reach?
- What do you want them to do?
- What’s the best way to get them to take action?
How can you measure it?
•
• Think about measurement from the
beginning and build it in
25

46. So, whose responsibility is
Social Media?
• Here’s some common responses
• The Public Relations Departments’!
• Social Media is the responsibility of those who
champion it.
• Social Media naturally belongs to HR and Training
• This Social Media thing is quite complex so
specialists will emerge with their own box on the
Organization chart
• Social Media cannot be controlled, so nobody will
own it, there will be no specialists, everybody will
just use it!
(Source:http://www.smallbusinessnewz.com/blogtalk/2008/08/05/where-does-social-media-responsibility-fall)
26

47. Findings from the
Digital Readiness Report 2009
278 public relations, marketing and
human resource professionals in US–
based organizations of varying types
and sizes were surveyed to identify
trends regarding their approach to
social media
Eric Schwartzman
Tom Smith
Don Spetner
Barbara McDonald
27

48. So far, Public Relations is leading the Social Media
Revolution inside organizations of all types and sizes.
(Source: http://www.ipressroom.com/pr/corporate/social-media-communications-skills-survey.aspx)
28

49. Meet some interesting
‘Others’
• Director of Internal
Audit
• General Manager for
Online Communities
• A former Barista
• Community
Animator
(Source : http://mashable.com/2009/01/21/best-twitter-brands/)
29

50. Meet some interesting
‘Others’
• Director of Internal
Audit
The Starbucks account is for
• General Manager
Online Communities
followed by 421,799 people!
• A former Barista
• Community
Animator
(Source : http://mashable.com/2009/01/21/best-twitter-brands/)
29

51. Are we ready for Social
Media: Act II?
• The need for business
specific metrics
• How far can Marketing
take this?
• A culture of Human
Business - Through the
doors of Corporate HR
and the CEO’s office
(Source : http://brandsavant.com/208/whats-wrong-with-social-media-marketing-strategy/)
30

52. The Risks of Social
Media
• Branding issues
• House of Brands vs.
Branded House
• One-way to two-way
communication
• Speed of communication
(Source : eMarketer.com)
31

53. Pepsi: “AMP Up Before
you Score” iPhone App
32

54. Pepsi: “AMP Up Before
you Score” iPhone App
“Our app tried 2 show the humorous lengths
guys go 2 pick up women. We apologize if it's
in bad taste & appreciate your feedback.”
(Source : http://www.msnbc.msn.com/id/33310411/ns/technology_and_science-tech_and_gadgets/)
33

55. Honda: Crosstour CUV
34

56. Honda: Crosstour CUV
34

57. Electronic Arts: Sin-toWin Contest
35

58. Electronic Arts: Sin-toWin Contest
35

59. Electronic Arts: Sin-toWin Contest
35

60. Electronic Arts: Sin-toWin Contest
36

61. The Risks of Social
Media
37

62. The Risks of Social
Media
“There is no such thing as bad
publicity...”
37

63. The Risks of Social
Media
“There is no such thing as bad
publicity...”
“...except your own obituary.”
- Brendan Behan (1923-1964)
37

64. Conclusion
• The conversation is happening
• Start listening now
• Begin the conversation at your
organization about how to engage in a
way that is right for you
38

65. Questions?
39