The State and Future of Social Business

1 The State and Future of Social BusinessMay 15, 2012WebcomJeremiah OwyangIndustry Analyst

4 Cluetrain Theses (Original) 1. Markets are conversations. 2. Markets consist of human beings, not demographic sectors. 3. Conversations among human beings sound human. They are conducted in a human voice.© 2012 Altimeter Group

5 Cluetrain Theses (Updated for 2012) 1. Markets are conversations conversational ads 2. Markets consist ofhuman beings, brand pages, not demographic sectors. and social graph targeting 3. Conversations among human beings sound human. They are conducted in a human voice. Analyzed by social performance analytics© 2012 Altimeter Group

8 Companies are averaging an overwhelming number of corporate owned accounts “Approximately how many official social accounts exist across the entire company, including all business units, products, or regions? (best estimate)” Platform Average # accounts Twitter 39.2 Blog 31.9 Facebook 29.9 LinkedIn 28.8 Forum/Message Board/Communities 23.4 YouTube 9.4 Foursquare 6.3 All others 5.3 Flickr 3.8 Gowalla 0.3 Sum 178 Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 140 respondents, all over 1000 employees© 2012 Altimeter Group

The Composition of a Social Media Team Average Size of a Corporate Social Media Team: 11 Base: 144 global corporate social media program managers at companies with over 1000 employees Source: “Social Business Readiness: How Advanced Companies Prepare Internally” (August 31, 2011)© 2012 Altimeter Group

12 The mission of Adobe‟s CoE: “Enable more coordinated and strategic social media initiatives across the company.” Adobe‟s CoE provides governance, policies and guidelines, training, measurement support, and best practices including “guardrails” Source: Maria Poveromo, “One Company‟s Journey in Social Media”© 2012 Altimeter Group

13 Only the Most Advanced Companies are Conducting Social Business Holistically, Beyond Individual Silos Would you agree that your social media strategy is embedded across corporate functions (e.g. Marketing, Sales, Support, Product, etc.)? Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 143 respondents, all over 1000 employees© 2012 Altimeter Group

15 Only the Most Advanced Companies Are Integrating Social Data into Customer Databases Do you have a process to record and integrate data from social interactions with customers into existing customer databases? Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 143 respondents, all over 1000 employees© 2012 Altimeter Group

17 Senior management plays a central role in wider adoption Nationwide President & COO, Mark Pizzi was one of Yammer’s first users • Posting relevant articles • Posting questions • Dialoging with employees • Demonstrating usability, features • Within months, he‟d generated more than 7500 followers Within 10 months of launch, 40% of Nationwide’s top leadership were participating on the network© 2012 Altimeter Group

21Trend One: Corporate Websites RebornCompanies will integrate social, resulting in new forms of context emerging –forever changing the static site.

23 Top objective: To increase referral traffic from social networks (Respondents allowed to select 3) To increase referral traffic 53% To make our site more interactive 49% To increase relevancy of content 48% To increase our number of fans/followers 43% To feature customer voices about our brand 25% To leverage user-generated content 17% To monetize engagement/time spent on site through ads 6% To increase site registrations by reducing registration friction. 5% Were not sure why yet. 6% 0% 20% 40% 60% 80% 100%© 2012 Altimeter Group

24 Evolution of the Social Corporate Website 0. No 1. Social 2. Social 3. Social 4. Social 5. Seamless Integration Linking Publishing Aggregation Context Integration Passive Social Basic Feeds Sharing Content Social and Active Curated Contextual Sharing Aggregation Content Contextual Aggregation© 2012 Altimeter Group

26 TripAdvisor visitors view friend reviews through Facebook Instant Personalization TripAdvisor launched Facebook‟s Instant Personalization feature in December 2010, offering friend ratings, reviews, and travel history.© 2012 Altimeter Group

29 Social integration: % of enterprise-class companies deployed (n=143, June 2011) 100% 90% 80% 77% 60% 53% 40% 27% 20% 11% 0% Social Linking Social Publishing Basic Feeds Curated Social Context Aggregation© 2012 Altimeter Group

30 Trend One Insights: Social Integration  Companies must choose which webpages should integrate –and then aggregate content in –don‟t blindly send it away.  Remember that websites as we know them will go away –prepare for a new model to emerge as content as assembled on the fly.  This will also happen in the real world on devices, tablets, and real world kiosks, content will contextualize, much like the movie Minority Report.© 2012 Altimeter Group

32Trend Two: Social Becomes Automated A new category has emerged “SocialPerformance Software” which analyzes and optimizes social content

34 Social Performance Software brings targeting  A new class of vendors emerge that • 1) Analyze online discussions and your social graph • 2) Analyze your performance of content • 3) Match • 4) Optimize how it should be published  Will extend to Support, Marketing, and beyond© 2012 Altimeter Group

35 AMEX uses uses social data to offer customers personalized discounts American Express‟s new Facebook application “Link, Like, Love” uses a cardholder‟s Facebook interests including “likes” and “check-ins” to offer the most relevant and convenient discounts.© 2012 Altimeter Group

36 Social Performance Software Social Optimization Set:  Crowdbooster, which measures and optimizes when content should publish.  Prosodic, which analyzes the who, what, where, and aids publishers.  Shoutlet, which helps companies manage complex publishing at scale.  SocialFlow, which offers a solution to optimize content resonance and publishing timing.  Tigerlily, which optimizes social content to publish by theme, audience and location.  UberVU, which first mines the data then optimizes content to be published.© 2012 Altimeter Group

38 Trend Two Insights: Social Becomes Automated  To scale, and to improve targeting, brands will analyze content and use proven techniques in this newish medium.  Expect some brands to fully automate, and some consumers will backlash  For best results, triage which information should be optimized and what‟s left best for organic natural conversations.© 2012 Altimeter Group

40Trend Three: To Be Heard In Social, You Will PayThe future of advertising is dependent upon social. Soon, you won‟t be able to tell thedifference between conversations and ads.

47 Social Performance Software: Social Ads Social Ads Set  Adobe Social, which employs Adobe acquisitions Context Optional and Omniture.  BuddyMedia, which is optimizing earned content to be ads with its Brighter Option acquisition.  Bazaarvoice, which has introduced a solution to launch social ads outside of traditional social networks.  Webtrends Social, which tracks social content off domain, ads and their performance back to the corporate website; and finally.  Wildfire which has partnered with Adaptly to measure the paid-to-owned transition.© 2012 Altimeter Group

48 Trend Three Insights: Paid Owned and Earned Converge  Remember, that social analysis is the requirement for quality paid and owned.  All of these channels must be used in an integrated manner.  However if you want to stand out, assume you‟ll bolster content with advertising –or you leave an opening for your competitors.© 2012 Altimeter Group

51 Four Social Business Recommendations 1. Bolster your existing social business in a scalable formation: Aim for Center of Excellence, Dandelion, and Let Go to Grow. 2. Be prepared to restructure your website, where sending „traffic‟ will no longer be a measure of success as websites assemble on the fly. 3. Brands struggle with scaling social, and will seek to reach consumers. Embrace serendipity as part of your performance mix. 4. The future of social is advertising; aggregate and analyze social data to determine paid and owned content.© 2012 Altimeter Group

THANK YOU Jeremiah Owyang jeremiah@altimetergroup.com web-strategist.com/blog Twitter: jowyang Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.© 2012 Altimeter Group

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The State and Future of Social Business

by Jeremiah Owyang

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