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The Future of Social Media
and its impact on Businesses
Luca Penati • SMU - Singapore, November 2010
Should we care?
Teatro San Babila’s story
Companies with the
highest level of
social media activity
grew sales by +18%
Companies with the
least presence
showed a decline of -
6%
(Wetpaint/Altimeter Study)
Before we talk about the future,
let’s take a look at the past
Remember 2000?
was 1 and half years old
Trek
Technology
launched
the first
USB flash
drive
And what about last year?
Globally, people who have on-line access have
digital sources as their number one media
channel.
61
54
36
32
0
10
20
30
40
50
60
70
Internet TV Radio Newspapers
% of online users
Source: TNS Digital Life
Bringing Digital to
Life
11
Moving from “Dialing In” to “Always On”
•
% accessing daily
Source: TNS Digital Life / S5: How often access / i10: Usage of offline media / Base: All respondents 48804
Goodbye email, hello social networking
In rapid growth
markets such as Latin
America, the Middle
East and China, the
average time spent, per
week, on social
networking is 5.2
hours compared to only
4 hours on email.
Email
Social
Networks
Source: TNS Digital Life
Online consumers in rapid growth markets have
overtaken mature markets in terms of engaging
with digital activities
56 54
26
20
0
10
20
30
40
50
60
Egypt China Finland Japan
Source: TNS Digital Life
And what about
Singapore?
16
% engaged in social networking
I1. Frequency of Social Networking and I2.0.1.Time spent on digital
activities -Social Networking & Connecting (hours)
Base: All respondents, n=48804 (Global); n=1002 (Singapore); n=602
(Vietnam
46
57 49
86
94 95
Daily Ever
Mean
number of
hours per
week
4.6 7.1
Most users in Singapore have tried Social Networking and they spend
time on this activity.
17
A sizeable portion of Singaporean Internet users turn to mobile to connect.
85
43
25 26
% using access point in last four weeks
PC at home PC at work / school
PC at internet
café / friends
Mobile
S4: Internet access point in last 4 weeks for leisure
Base: All respondents, n=48804 (Global); n=1002 (Singapore);
n=602 (Vietnam)
95
49
24
40
18
% engaged in social networking daily via PC and Mobile
I1. Frequency of Social Networking: PC and Mobile
Base for PC n=47832 (Global); n=993 (Singapore); n=599 (Vietnam)
Base for Mobile n=12802 (Global); n=440 (Singapore); n=157 (Vietnam)
45
56
48
35
48
33
PC Mobile
Singaporeans turn to their mobile device nearly as frequently as their PC
for social networking.
19
Average Number of Friends in Social Network
N11. Number of friends connected to in social networks
Base: n=40819 (Global); n=942 (Singapore); n=574 (Vietnam)
Social Networkers in Singapore have a large number of online friends,
higher than the global average.
184120
How can we predict
what’s going to happen in
the next 10 years in the
business environment?
We just can’t.
What we can do…
It’s to look at the key drivers…
Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing
Enterprise 2.0 is "the use of emergent social
software platforms within companies, or
between companies and their partners or
customers".
Andrew McAfee, author of Enterprise 2.0
Customers.
From talking at to
engagement.
The new generation
expects to use social
media tools and new
technologies at work
“whether you prefer or dislike
Apple technologies and
regardless of whether you
believe they belong within
enterprise environments, they’re
coming.”
TechRepublic
Social
Enterprise
Mobile
Content &
Communities
Crowdsourcing
Growth in social networking has been
fuelled by the transition from PC to mobile.
3.1
2.2
0
0.5
1
1.5
2
2.5
3
3.5
Social networking Email
# of hours mobile users spend per week
Source: TNS Digital Life
Mobile Internet is the last form of
access adopted in developed
markets and the first form of access
in developing markets
% online users accessing internet from mobile in last four weeks
Source: TNS Digital Life / S4: Internet access point in last 4 weeks for leisure / Base: All respondents, n=48804
Thanks to the iPhone 3G and, to a lesser extent, Google’s Android phone,
millions of people are now walking around with a gizmo in their pocket that
not only knows where they are but also plugs into the Internet to share
that info, merge it with online databases, and find out what – and who – is
in the immediate vicinity…Simply put, location changes everything. This
one input – our coordinates – has the potential to change all the outputs.
Where we shop, who we talk to, what we read, what we search for, where
we go – they all change once we merge location and the Web.
– Mathew Honan, WIRED magazine, 1/19/09
Bringing Digital to
Life
33
Brand experiences will be extended
by blending physical space and
digital content.
Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing
Every company is a media
company.
The global online video community will
include more than 1 billion users by the
end of 2010.
Approximately 70% of global online consumers
watch video online
Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010
Mobile Video is already used by 11% of global online
consumers: penetration is highest in Asia-Pacific and
among consumers in their late 20s.
Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010
More netizens view online video
than visiting social networks
87% of Singapore’s
Internet population
viewed video online in
April, 2010, with an
average viewer
consuming 10.5 hours of
video.
Internet users watched
320 million videos in
April, 2010.
Videos
(000)
Share of
Videos
Total Audience 319,812 100.0
Google Sites 203,999 63.8
Facebook.com 10,180 3.2
Tudou Sites 4,459 1.4
Microsoft Sites 2,690 0.8
Dailymotion.co
m
2,628 0.8
PPLive Inc. 1,290 0.4
Metacafe 1,204 0.4
Turner Network 1,133 0.4
Sohu.com Inc 1,062 0.3
Yahoo! Sites 865 0.3
Source: comScore Vedio Metrix
The Emotional Power of Storytelling
But tell me a story and it will
live in my heart forever…
Tell me a fact
and I’ll learn.
Left Brain
• Food shortages in Malawi are affecting more than 3
million children.
• In Zambia, severe rainfall deficits have resulted in a
42% drop in maize production from 2000. As a result,
an estimated 3 million Zambians face hunger.
• Four million Angolans — one third of the population—
have been forced to flee their homes.
• More than 11 million people in Ethiopia need immediate
food assistance.
Rokia, a 7-month-old girl from Mali, Africa,
is desperately poor and faces a threat of
severe hunger or even starvation. Her life
will be changed for the better as a result of
your financial gift.
The Connected Agency
“Over the next five years, traditional agencies will make
this shift; they will start by connecting with consumer
communities and will eventually become an integral part
of them.”
Mary Beth Kemp and Peter Kim, Forrester
Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing
Crowdsourcing is the act of outsourcing
tasks, traditionally performed by an
employee or contractor, to a large group of
people or community (a crowd), through
an open call.
“Why Crowdsourcing
is the future of
EVERYTHING”
Ross Dawson
Wikipedia,
the free encyclopedia that anyone can edit.
Crowdsourcing
Organizations
Start-ups
Media
Funding
Social Change
Science
Art
Environment
Health
Crime
To Recap: 4 Key Drivers
Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing
And finally… what are the implications?
What businesses must do?
• Adapt, change fast, embrace openness.
• Review their business processes.
• Understand they cannot have control. Ownership
will matter a lot of less  Mind share and market
share more
Thank you!
Luca Penati
Global MD, Technology Practice
Ogilvy PR Worldwide
Email: luca.penati@ogilvypr.com
Twitter: @lucapenati
The future of social media and its impact on businesses

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The future of social media and its impact on businesses

  • 1. The Future of Social Media and its impact on Businesses Luca Penati • SMU - Singapore, November 2010
  • 4. Companies with the highest level of social media activity grew sales by +18% Companies with the least presence showed a decline of - 6% (Wetpaint/Altimeter Study)
  • 5. Before we talk about the future, let’s take a look at the past
  • 7. was 1 and half years old
  • 9. And what about last year?
  • 10. Globally, people who have on-line access have digital sources as their number one media channel. 61 54 36 32 0 10 20 30 40 50 60 70 Internet TV Radio Newspapers % of online users Source: TNS Digital Life
  • 11. Bringing Digital to Life 11 Moving from “Dialing In” to “Always On” • % accessing daily Source: TNS Digital Life / S5: How often access / i10: Usage of offline media / Base: All respondents 48804
  • 12. Goodbye email, hello social networking In rapid growth markets such as Latin America, the Middle East and China, the average time spent, per week, on social networking is 5.2 hours compared to only 4 hours on email. Email Social Networks Source: TNS Digital Life
  • 13. Online consumers in rapid growth markets have overtaken mature markets in terms of engaging with digital activities 56 54 26 20 0 10 20 30 40 50 60 Egypt China Finland Japan Source: TNS Digital Life
  • 15.
  • 16. 16 % engaged in social networking I1. Frequency of Social Networking and I2.0.1.Time spent on digital activities -Social Networking & Connecting (hours) Base: All respondents, n=48804 (Global); n=1002 (Singapore); n=602 (Vietnam 46 57 49 86 94 95 Daily Ever Mean number of hours per week 4.6 7.1 Most users in Singapore have tried Social Networking and they spend time on this activity.
  • 17. 17 A sizeable portion of Singaporean Internet users turn to mobile to connect. 85 43 25 26 % using access point in last four weeks PC at home PC at work / school PC at internet café / friends Mobile S4: Internet access point in last 4 weeks for leisure Base: All respondents, n=48804 (Global); n=1002 (Singapore); n=602 (Vietnam) 95 49 24 40
  • 18. 18 % engaged in social networking daily via PC and Mobile I1. Frequency of Social Networking: PC and Mobile Base for PC n=47832 (Global); n=993 (Singapore); n=599 (Vietnam) Base for Mobile n=12802 (Global); n=440 (Singapore); n=157 (Vietnam) 45 56 48 35 48 33 PC Mobile Singaporeans turn to their mobile device nearly as frequently as their PC for social networking.
  • 19. 19 Average Number of Friends in Social Network N11. Number of friends connected to in social networks Base: n=40819 (Global); n=942 (Singapore); n=574 (Vietnam) Social Networkers in Singapore have a large number of online friends, higher than the global average. 184120
  • 20. How can we predict what’s going to happen in the next 10 years in the business environment?
  • 22. What we can do… It’s to look at the key drivers…
  • 23. Enterprise 2.0 Mobile Content & Communities Crowdsourcing
  • 24. Enterprise 2.0 is "the use of emergent social software platforms within companies, or between companies and their partners or customers". Andrew McAfee, author of Enterprise 2.0
  • 25. Customers. From talking at to engagement.
  • 26. The new generation expects to use social media tools and new technologies at work
  • 27. “whether you prefer or dislike Apple technologies and regardless of whether you believe they belong within enterprise environments, they’re coming.” TechRepublic
  • 29.
  • 30. Growth in social networking has been fuelled by the transition from PC to mobile. 3.1 2.2 0 0.5 1 1.5 2 2.5 3 3.5 Social networking Email # of hours mobile users spend per week Source: TNS Digital Life
  • 31. Mobile Internet is the last form of access adopted in developed markets and the first form of access in developing markets % online users accessing internet from mobile in last four weeks Source: TNS Digital Life / S4: Internet access point in last 4 weeks for leisure / Base: All respondents, n=48804
  • 32. Thanks to the iPhone 3G and, to a lesser extent, Google’s Android phone, millions of people are now walking around with a gizmo in their pocket that not only knows where they are but also plugs into the Internet to share that info, merge it with online databases, and find out what – and who – is in the immediate vicinity…Simply put, location changes everything. This one input – our coordinates – has the potential to change all the outputs. Where we shop, who we talk to, what we read, what we search for, where we go – they all change once we merge location and the Web. – Mathew Honan, WIRED magazine, 1/19/09
  • 33. Bringing Digital to Life 33 Brand experiences will be extended by blending physical space and digital content.
  • 34. Enterprise 2.0 Mobile Content & Communities Crowdsourcing
  • 35. Every company is a media company.
  • 36.
  • 37.
  • 38. The global online video community will include more than 1 billion users by the end of 2010.
  • 39. Approximately 70% of global online consumers watch video online Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010
  • 40. Mobile Video is already used by 11% of global online consumers: penetration is highest in Asia-Pacific and among consumers in their late 20s. Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010
  • 41. More netizens view online video than visiting social networks 87% of Singapore’s Internet population viewed video online in April, 2010, with an average viewer consuming 10.5 hours of video. Internet users watched 320 million videos in April, 2010. Videos (000) Share of Videos Total Audience 319,812 100.0 Google Sites 203,999 63.8 Facebook.com 10,180 3.2 Tudou Sites 4,459 1.4 Microsoft Sites 2,690 0.8 Dailymotion.co m 2,628 0.8 PPLive Inc. 1,290 0.4 Metacafe 1,204 0.4 Turner Network 1,133 0.4 Sohu.com Inc 1,062 0.3 Yahoo! Sites 865 0.3 Source: comScore Vedio Metrix
  • 42. The Emotional Power of Storytelling But tell me a story and it will live in my heart forever… Tell me a fact and I’ll learn.
  • 43. Left Brain • Food shortages in Malawi are affecting more than 3 million children. • In Zambia, severe rainfall deficits have resulted in a 42% drop in maize production from 2000. As a result, an estimated 3 million Zambians face hunger. • Four million Angolans — one third of the population— have been forced to flee their homes. • More than 11 million people in Ethiopia need immediate food assistance.
  • 44. Rokia, a 7-month-old girl from Mali, Africa, is desperately poor and faces a threat of severe hunger or even starvation. Her life will be changed for the better as a result of your financial gift.
  • 45. The Connected Agency “Over the next five years, traditional agencies will make this shift; they will start by connecting with consumer communities and will eventually become an integral part of them.” Mary Beth Kemp and Peter Kim, Forrester
  • 46. Enterprise 2.0 Mobile Content & Communities Crowdsourcing
  • 47. Crowdsourcing is the act of outsourcing tasks, traditionally performed by an employee or contractor, to a large group of people or community (a crowd), through an open call.
  • 48. “Why Crowdsourcing is the future of EVERYTHING” Ross Dawson
  • 49. Wikipedia, the free encyclopedia that anyone can edit.
  • 50.
  • 52.
  • 53. To Recap: 4 Key Drivers Enterprise 2.0 Mobile Content & Communities Crowdsourcing
  • 54. And finally… what are the implications? What businesses must do? • Adapt, change fast, embrace openness. • Review their business processes. • Understand they cannot have control. Ownership will matter a lot of less  Mind share and market share more
  • 55. Thank you! Luca Penati Global MD, Technology Practice Ogilvy PR Worldwide Email: luca.penati@ogilvypr.com Twitter: @lucapenati