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Social Media Intro for Business
     Intelligence Professionals




www.ThirdNature.net   Mark R. Madsen   Slide 1
Social Media Intro for Business
Intelligence Professionals
May, 2009
Mark R. Madsen
www.ThirdNature.net
Social Media
Wikipedia on social
media (naturally):

“…activities that
integrate technology,
telecommunications
and social interaction
...
Mixed Up Terminology
 Social software – software designed for
 collaboration & sharing, i.e. the umbrella term
 Social net...
Many Social Features and Tools
    Blogs
    Wikis
    Microblogging
    SMS
    Chat
    Widgets
    Social networks
    ...
Online Community Types
 Lightweight social processes
      • Very low barrier to social involvement
                 Digg,...
Lightweight Example: Twitter




www.ThirdNature.net   Mark R. Madsen   Slide 8
Collaborative Example: Threadless




www.ThirdNature.net   Mark R. Madsen   Slide 9
High End Example: Lostpedia




www.ThirdNature.net   Mark R. Madsen   Slide 10
Social Networks




www.ThirdNature.net   Mark R. Madsen   Slide 11
Social Network Evolution




                                       Source: FaberNovel Consulting

www.ThirdNature.net   M...
Social Network Participants



           Creators

           Synthesizers

           Consumers



           Inactives
...
Why should you care?
Follow the money
www.ThirdNature.net   Mark R. Madsen          Slide 15
Follow the Eyeballs




www.ThirdNature.net      Mark R. Madsen   Slide 16
There are 1.4 billion internet users




www.ThirdNature.net         Mark R. Madsen         Slide 17
45% have blogged



www.ThirdNature.net    Mark R. Madsen   Slide 18
80% have watched online video


   >100 million
   videos viewed
   (per day)


www.ThirdNature.net               Mark R. ...
60% joined a social network
www.ThirdNature.net   Mark R. Madsen   Slide 20
…Where They Are Talking About You
  Tell someone about a product/service by messenger

          Tell someone about a prod...
They Don’t Listen to You




      >90% of people
      who can ad-skip
      do ad-skip


www.ThirdNature.net     Mark R....
They Don’t Trust You




www.ThirdNature.net   Mark R. Madsen   Slide 23
They Trust Each Other, Even Strangers




www.ThirdNature.net   Mark R. Madsen    Slide 24
Business Implications
Social Software Affects Buying Behavior




www.ThirdNature.net   Mark R. Madsen       Slide 26
Marketing and Sales Are Most Affected




www.ThirdNature.net   Mark R. Madsen    Slide 27
Some Unpleasant Marketing Facts
Marketers don’t have confidence in their ability to
manage their budget to meet objectives...
Bad News if You Want to Buy Advertising

 Number of prime-time 60 second
 TV commercials required to reach
 80% of 18-49 y...
The obvious solution hasn’t worked very well.
One-to-One marketing concepts fared little better.
TV vs. Net, the Net is Winning




www.ThirdNature.net   Mark R. Madsen   Slide 32
Marketing Spend is Shifting in Response




www.ThirdNature.net   Mark R. Madsen       Slide 33
It’s a Multi-Channel World Now
                                       Each of these new
                                  ...
Marketing Has Relatively Few Outcome Metrics

 1. Input: measures the upfront part of a process like cost
          • how ...
Multichannel Challenges
 You can calculate the same core metrics for the online
 channel as for direct marketing or advert...
Metric Development

 Developing online marketing metrics is beyond
 the scope of this class. A few pointers:
      • You w...
Forrester Metrics Example




www.ThirdNature.net   Mark R. Madsen   Slide 38
Sample Online Marketing Metrics
Sales development:                                         Behavior
cost per unqualified l...
Online Marketing Case: Will It Blend?
 Measurements:
   • >2M views on YouTube
   • Google page 1 for “blend”
   • pageran...
The Online Channel Has Advantages
The online channel can provide realtime feedback
where old channels sometimes have a dat...
About the Presenter
                      Mark Madsen is president of Third
                      Nature, a technology res...
About Third Nature


Third Nature is a research and consulting firm focused on new and
emerging technology and practices i...
Creative Commons Image Attributions
 Thanks to the people who supplied the creative commons licensed images used in this p...
Creative Commons
Thanks to the people who made their images available via creative commons:
book of hours manuscript2.jpg ...
Creative Commons
 Thanks to the suppliers of the following images:
 Market – http://flickr.com/photos/baboon/309793875/
 S...
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Social Media Intro For Business Intelligence People

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Social media basics and the reasons BI professionals need to start learning about this and online marketing in general.

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  • I put everything in the speaker notes, which didn't come out here since it's just the slide content from PDF generation. I'll need to mark this up on the slides themselves rather than in the notes and redo the PDF. Mea culpa on this one. Thanks for pointing it out.
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  • Mark - looking over this presentation I was curious: where do you cite the sources for your stats? For example slide 22, where does this research or survey come from.

    I guess the point I'm trying to make is that you made mention to my Groundswell slide but, in your deck I see a lot of information without cited sources. The point is, that all of us are guilty of doing this from time to time. I would be happier if social media gurus / experts stop picking on the small things (even though they are important) and start paying attention to the things that matter.
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Transcript of "Social Media Intro For Business Intelligence People"

  1. 1. Social Media Intro for Business Intelligence Professionals www.ThirdNature.net Mark R. Madsen Slide 1
  2. 2. Social Media Intro for Business Intelligence Professionals May, 2009 Mark R. Madsen www.ThirdNature.net
  3. 3. Social Media
  4. 4. Wikipedia on social media (naturally): “…activities that integrate technology, telecommunications and social interaction , and the construction of words, pictures, videos and audio.” How about “people conversing online” instead?
  5. 5. Mixed Up Terminology Social software – software designed for collaboration & sharing, i.e. the umbrella term Social networks – social platforms, not “about” anything other than the social network Social sites / applications –the primary interaction is around a topic, function or object; it’s “about” something, unlike social networks Social media – a subtype of social site / application built around published media of some type; blogs, video, music, games, virtual worlds www.ThirdNature.net Mark R. Madsen Slide 5
  6. 6. Many Social Features and Tools Blogs Wikis Microblogging SMS Chat Widgets Social networks Social bookmarks Collective tagging Message Boards Podcasts Video sharing Photo sharing Comments Ratings RSS www.ThirdNature.net Mark R. Madsen Slide 6
  7. 7. Online Community Types Lightweight social processes • Very low barrier to social involvement Digg, Last.fm, Amazon, Twitter Collaborative information structures • The core product is generated or enhanced by social components Flickr, YouTube, Threadless, Etsy High end collaboration • Extensive involvement and collaboration required Wikipedia, any-other-pedia, CouchSurfing, open source projects www.ThirdNature.net Mark R. Madsen Slide 7
  8. 8. Lightweight Example: Twitter www.ThirdNature.net Mark R. Madsen Slide 8
  9. 9. Collaborative Example: Threadless www.ThirdNature.net Mark R. Madsen Slide 9
  10. 10. High End Example: Lostpedia www.ThirdNature.net Mark R. Madsen Slide 10
  11. 11. Social Networks www.ThirdNature.net Mark R. Madsen Slide 11
  12. 12. Social Network Evolution Source: FaberNovel Consulting www.ThirdNature.net Mark R. Madsen Slide 12
  13. 13. Social Network Participants Creators Synthesizers Consumers Inactives www.ThirdNature.net Mark R. Madsen Slide 13
  14. 14. Why should you care?
  15. 15. Follow the money www.ThirdNature.net Mark R. Madsen Slide 15
  16. 16. Follow the Eyeballs www.ThirdNature.net Mark R. Madsen Slide 16
  17. 17. There are 1.4 billion internet users www.ThirdNature.net Mark R. Madsen Slide 17
  18. 18. 45% have blogged www.ThirdNature.net Mark R. Madsen Slide 18
  19. 19. 80% have watched online video >100 million videos viewed (per day) www.ThirdNature.net Mark R. Madsen Slide 19
  20. 20. 60% joined a social network www.ThirdNature.net Mark R. Madsen Slide 20
  21. 21. …Where They Are Talking About You Tell someone about a product/service by messenger Tell someone about a product/service by email Comment on a product/service review on a blog/ weblog Write a review of a seller on an auction site Recommend a product/ service on blog/ weblog Write review of product/service on ecommerce/retail site Comment on product/ service review on ecommerce/retail site Post opinion on social network personal profile Write a review of a product/service on yr blog/weblog Create product wish/ favs list on ecommerce/retail site Post a video clip featuring a product/service 0 5 10 15 20 25 30 35 40 45 50 Monthly Reach “In the age of social media, what people say about your company or its products can and will become very public, very quickly. My job is about engaging in a constructive dialogue with customers, in creating active conversation streams.” – Lionel Menchaca, chief blogger, Dell www.ThirdNature.net Mark R. Madsen Slide 21
  22. 22. They Don’t Listen to You >90% of people who can ad-skip do ad-skip www.ThirdNature.net Mark R. Madsen Slide 22
  23. 23. They Don’t Trust You www.ThirdNature.net Mark R. Madsen Slide 23
  24. 24. They Trust Each Other, Even Strangers www.ThirdNature.net Mark R. Madsen Slide 24
  25. 25. Business Implications
  26. 26. Social Software Affects Buying Behavior www.ThirdNature.net Mark R. Madsen Slide 26
  27. 27. Marketing and Sales Are Most Affected www.ThirdNature.net Mark R. Madsen Slide 27
  28. 28. Some Unpleasant Marketing Facts Marketers don’t have confidence in their ability to manage their budget to meet objectives: • Only 25% of marketers said senior management is confident or very confident in forecasts of marketing impact on sales • Only 15% of marketers agreed or agreed completely that they could forecast the impact of a 10% budget cut www.ThirdNature.net Mark R. Madsen Slide 28
  29. 29. Bad News if You Want to Buy Advertising Number of prime-time 60 second TV commercials required to reach 80% of 18-49 year-olds • In 1965: 3 • In 2002: 117 People with DVRs watch 12% more TV ☺ Yet 90% of them skip the ads www.ThirdNature.net Mark R. Madsen Slide 29
  30. 30. The obvious solution hasn’t worked very well.
  31. 31. One-to-One marketing concepts fared little better.
  32. 32. TV vs. Net, the Net is Winning www.ThirdNature.net Mark R. Madsen Slide 32
  33. 33. Marketing Spend is Shifting in Response www.ThirdNature.net Mark R. Madsen Slide 33
  34. 34. It’s a Multi-Channel World Now Each of these new channels has measurement data coming from different sources, often external and out of your control. www.ThirdNature.net Mark R. Madsen Slide 34
  35. 35. Marketing Has Relatively Few Outcome Metrics 1. Input: measures the upfront part of a process like cost • how much you spent on a TV spot during the super bowl 2. Delivery: measures the process but not the effect • reach of that super bowl ad 3. Outcome: measures the results • lift from the super bowl ad Harder things to measure: consumer sentiment, brand awareness, brand strength, brand equity 1 2 3 ? www.ThirdNature.net Mark R. Madsen Slide 35
  36. 36. Multichannel Challenges You can calculate the same core metrics for the online channel as for direct marketing or advertising. The hard part is knowing what to do with which channel. e.g. same cost, same reach: • Which is more effective? • For which customer segments? • Do they reinforce? 2 3 1 ? ? www.ThirdNature.net Mark R. Madsen Slide 36
  37. 37. Metric Development Developing online marketing metrics is beyond the scope of this class. A few pointers: • You will need input and delivery metrics for comparison, but should focus on outcome. • Develop delivery and outcome metrics that allow you to test and refine campaigns while they occur. • Try to attribute activity wherever possible • Link metrics to both objectives and tasks/functions www.ThirdNature.net Mark R. Madsen Slide 37
  38. 38. Forrester Metrics Example www.ThirdNature.net Mark R. Madsen Slide 38
  39. 39. Sample Online Marketing Metrics Sales development: Behavior cost per unqualified lead, qualified lead, sales Desired actions, Response to offers opportunity, revenue, margin, new customers Interactions, Feedback Transactions, Effectiveness / efficiency: Reach, Frequency, GRP (just like the old Sentiment models) on a per channel basis Sentiment and trends # of unique visitors, Visit frequency Similar PR metrics, e.g. favorable/unfavorable Time on site, Registrations mentions open rate, click rate, bounce rate Influence Loyalty: Inbound links related to a profile or user time on site relative to benchmarks other sites Ratio of links/clicks vs. all users repeat business / visits, % returning Timing of links/clicks, Connections customer loyalty survey data Engagement If you have widgets or applications:: an activity measure of users / total users Downloads, Installations Virality - % growth of message or advert Activations, Embeds Frequency of use www.ThirdNature.net Mark R. Madsen Slide 39
  40. 40. Online Marketing Case: Will It Blend? Measurements: • >2M views on YouTube • Google page 1 for “blend” • pagerank raised to 6 • 55,000 inbound links • 83,000 channel subscribers • > 500 Facebook groups • 5 Digg front page stories • TV news mentions • Newspaper mentions www.ThirdNature.net Mark R. Madsen Slide 40
  41. 41. The Online Channel Has Advantages The online channel can provide realtime feedback where old channels sometimes have a data lag of months. Messages and offers can be tested while a campaign is running, rather than between campaigns. This requires that you collect the data to manage the process. www.ThirdNature.net Mark R. Madsen Slide 41
  42. 42. About the Presenter Mark Madsen is president of Third Nature, a technology research and consulting firm focused on business intelligence, data integration and data management. Mark is an award-winning author, architect and CTO whose work has been featured in numerous industry publications. Over the past ten years Mark received awards for his work from the American Productivity & Quality Center, TDWI, and the Smithsonian Institute. He is an international speaker, a contributing editor at Intelligent Enterprise, and manages the open source channel at the Business Intelligence Network. For more information or to contact Mark, visit http://ThirdNature.net.
  43. 43. About Third Nature Third Nature is a research and consulting firm focused on new and emerging technology and practices in business intelligence, data integration and information management. If your question is related to BI, open source, web 2.0 or data integration then you‘re at the right place. Our goal is to help companies take advantage of information-driven management practices and applications. We offer education, consulting and research services to support business and IT organizations as well as technology vendors. We fill the gap between what the industry analyst firms cover and what IT needs. We specialize in product and technology analysis, so we look at emerging technologies and markets, evaluating the products rather than vendor market positions.
  44. 44. Creative Commons Image Attributions Thanks to the people who supplied the creative commons licensed images used in this presentation: kid gives finger.jpg - http://flickr.com/photos/kevinclark/9826288/ riot police line small.jpg - http://flickr.com/photos/73594239@N00/25719098/ anne hathaway.jpg - http://flickr.com/photos/barbaradoduk/177959197/ baby birthday.jpg - http://flickr.com/photos/yoshimov/19513076/ teapot.jpg - http://flickr.com/photos/joi/411403/ darasuram temple.jpg - http://flickr.com/photos/ravages/129783888/ us capitol building.jpg - http://flickr.com/photos/jcolman/542294684/ hamadan people mosaic.jpg - http://flickr.com/photos/hamed/225868856/ well town hall.jpg - http://flickr.com/photos/tuinkabouter/1135560976/ watchmaker.jpg - http://flickr.com/photos/dashananda/310662720/ highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688 web1-0 corporate logo sheet web 2-0ized.jpg - http://flickr.com/photos/stabilo-boss/93136022/ web 2-0 logos part1.jpg - http://flickr.com/photos/stabilo-boss/93136022/ meerkat.jpg - http://flickr.com/photos/peasap/1089208526/ Gare do Oriente Lisbon.jpg - http://flickr.com/photos/higaara/228673603/ motionless in crowd2.jpg - http://flickr.com/photos/laburbuja/149566116/ snail1.jpg - http://flickr.com/photos/7147684@N03/1037533775/ social_architecture.jpg - http://flickr.com/photos/karen-ward/268612548/ baby_with_lemon 55381094_10694660e5.jpg - http://flickr.com/photos/pichichi/55381094/ laptop face.jpg - http://flickr.com/photos/sd/7746599/ www.ThirdNature.net Mark R. Madsen Slide 44
  45. 45. Creative Commons Thanks to the people who made their images available via creative commons: book of hours manuscript2.jpg - http://flickr.com/photos/jeffrey/89461374/ card catalog4.jpg - http://flickr.com/photos/deborahfitchett/2372385317/ royal library san lorenzo.jpg - http://flickr.com/photos/cuellar/370663920/ outdated gumshoe.jpg - http://flickr.com/photos/olivander/372385317/ book of hours manuscript1.jpg - http://flickr.com/photos/jeffrey/89461261/ semantic network visualization.jpg - http://flickr.com/photos/toby_maloy/102413554/ subway dc metro.jpg - http://flickr.com/photos/musaeum/509899161/ Gare do Oriente Lisbon airport.jpg - http://flickr.com/photos/higaara/228673603/ toolbox.jpg - http://www.flickr.com/photos/booleansplit/2376359338/ crowd_melbourne.jpg - http://www.flickr.com/photos/akc77/3370167184/ social_net_mosaic.jpg - http://www.flickr.com/photos/luc/1824234195/ befriend.jpg - http://flickr.com/photos/ehrgeizier/114385285/ martini.jpg - http://www.flickr.com/photos/tapps/2204393655/ four cupcake guys (frogs).jpg - http://www.flickr.com/photos/abielskas/114946978/ old man union square selling.jpg - http://flickr.com/photos/ktb/4683842/ highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688 Surfer - http://www.flickr.com/photos/millzero/2093324718 www.ThirdNature.net Mark R. Madsen Slide 45
  46. 46. Creative Commons Thanks to the suppliers of the following images: Market – http://flickr.com/photos/baboon/309793875/ Spider – http://flickr.com/photos/gyuvallos/72283771/ Orange wall – http://flickr.com/photos/satosugar/50776976/ Weaver in Peru – http://flickr.com/photos/slack12/442373910/ Apples and oranges – http://flickr.com/photos/thedepartment/131206032/ Envelope – http://flickr.com/photos/psd/1428129861/ Web services – http://flickr.com/photos/psd/479994769/ Two choices – http://flickr.com/photos/cayusa/1441194460/ Forest bluebells – http://flickr.com/photos/good_day/149239579/ Baobab - http://flickr.com/photos/dmontesi/66753950/ Writing code – http://flickr.com/photos/cdm/72250667/ Woodworking – http://flickr.com/photos/rigoletto/126367565/ Febo – http://flickr.com/photos/jshyun/1573065713/ cliff divers – http://flickr.com/photos/raveller/ Thai market – http://flickr.com/photos/tuey/55106754/ spider – http://flickr.com/photos/gyuvallos/72283771/ dehydrated water – http://flickr.com/photos/dcreeves2000/139184796/ Meerkat – http://flickr.com/photos/nicklawes/90796755 Subway – http://flickr.com/photos/neilsphotoalbum/504517855/ Robot Bastard – © 2001 Rob Schrab, http://robotbastard.robschrab.com/index.html www.ThirdNature.net Mark R. Madsen Slide 46
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