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The New Emerging Trend In Social Media Document Transcript

  • 1. The New Emerging Trend in Social Media 1 Chapter 1.0: Introduction Web1.0 is a trend that occurred during the beginning of the internet. In that era, we saw books, news, music and everything else being moved into digital format. This is still going on and will probably never end as new data that is available will be made available online. As time passes, we see a significant wave of change and innovation occurring in the internet. Users shifted their focus from plainly just posting data online to sharing them with other users which brings us to Web 2.0. According to Wikipedia, Web 2.0 is the trend in the use of technology and web sites that aims to enhance information sharing, creativity and most notably, collaboration among users. We observed a new rising trend in the blogosphere includes celebrity blogs that highlight a company’s product or service, at the same time enhance the company’s credibility and worth to consumers by tapping into society’s obsession with public personalities. Few years ago, the blogosphere was all about individual bloggers making a name for themselves. In today’s society, apart from blogging merely just as a hobby; creating a blog has becomes a way of earning side income such as registering under middle agent, Nuffnang. Next, we saw the emerging of Friendster, then MySpace, follow by Facebook and Niche Social Networks that allow users to carry their basic profile information, friends and privacy settings around with them which will lead to new forms of contextual and behavioral targeting. Just like the emergence of B2B social networks such as creating internal social networks for employees and microblogging. Also, more and more advertisers are using video on their websites and banner ads. Plug- ins are no longer needed for the most part, the technology is embedded into the video. Memorable videos will capture people’s attention and can become viral. Sound and motion seemed to draw a deeper connection and engagement with users. Users liked the ads to be placed with related content and likeability depended on length. Wikis is another technology that was first developed to edit an online encyclopedia is now being used by companies for additional applications such as writing software, mapping cell- phone base stations and launching branding campaigns. Wikis are primarily a PR platform. It can be used in conjunction with a branding campaign. This is particularly useful in a global economy where engineers in Asia can pick up a project as Europeans go to bed. KNLim AUG08 MI
  • 2. The New Emerging Trend in Social Media 2 Folksonomies are social bookmarking that allows users to store and organize bookmarks of Web sites and pages they find useful and would like to visit again. These bookmarks can be shared with the public or with individuals. Examples of folksonomies are Del.icio.us, StumbleUpon and Digg. In these communities, users submit stories and multimedia assets they think their community is interested in. Then users vote on them to help determine priority. RSS allows people to conveniently read new content posted on a company’s website or blog. Audience is constantly updated without having to remember to visit a particular site, waste time “surfing” or registering their email address. This technology has been adapted to online advertising allowing it to stay current. Also, many companies display individual RSS feeds as well as combined feeds on their sites to further enhance readers' experience. Mashups help combines data from more than one source into a single integrated tool; an example is the use of cartographic data from Google Maps to add location information to real-estate data, thereby creating a new and distinct web service that was not originally provided by either source. The medium has moved from being dominated by individual podcasters to an integrated and heavily used tool of radio stations. Companies can create their own podcasts. Advertisers can create an audio commercial to be inserted into a third party podcast. Apart from that, widgets have moved from consumer to business use. Initially begun with consumers using widgets to enhance their personal web experiences, or the web experiences of visitors to their personal sites, corporations are now using to improve their Web sites using syndicated content and functionality from third party providers. Web 2.0 becomes an all-encompassing name for the new generation of companies running second generation services on the internet. It refers to participatory web tools and platforms which enable the user to tag, blog, comment, modify, select from rank and generally talk back to the contributions of others. The objective of this research is to identify the fundamental shifts in consumer behaviour which offer a significant opportunity for growth for those companies that know how to adapt. By knowing the consequences of Web 2.0 for the corporate world, companies can sort out new approaches to boost performance and growth. KNLim AUG08 MI
  • 3. The New Emerging Trend in Social Media 3 Chapter 2.0: Literature Review 2.1 Media Landscape The fifth Malaysian Media Congress (MMC) was held on August 7, 2008 at Sime Darby Convention Center and was packed with 250 media, advertising and marketing professionals to obtain a clearer idea of the new Media 2.0 landscape. Harmandar Sngh, Chairman, MMC (2008) states: “By embracing Web 2.0 technology, media professionals are moving to where consumer-controlled media is undoubtedly the new paradigm. If AIDA (Attention, Interest, Desire, Action) was the mantra for Media 1.0, the catchphrases now swirl around Aggregation, Attention, Convergence, Engagement and Personalization.” Marketers and advertisers should explore the cultural behaviour on how people build, consume and share media across the globe and how these social media communities and networks are transforming the marketing and media world today. From Figure 1.0, we saw a radical shift in media consumption by the networked generation. The reduced consumption of other media such as newspapers, magazines and radio, amongst this age-group compared to the general population, has also thought to have been driven by the net. This generation has grown up with new technologies and it is this generation for whom the uptake is instinctive. They are leaving the traditional media and moving towards new media. Figure 1.0 Reduced Consumption Driven by the Net When the media landscape was once dominated by TV, now many of those ad budgets have been redistributed to other forms of media. More than 60% of consumers are in time-shifted environments and 92% estimated of TV ads are being skipped over (Maria Mandel, Executive Director of digital innovation for Ogilvy Interactive). It suggests that KNLim AUG08 MI
  • 4. The New Emerging Trend in Social Media 4 over the next 5 years linear television viewing may fall by 20-30%, to be replaced largely by the increased use of on-demand services. A similar pattern is anticipated for audio programming (ofcom). Approximately 73% of marketers now allocate up to 20% of their budget for new and emerging media (American Advertising Federation Study, Brandweek). W.H. Auden states: “Every human being is interested in two kinds of worlds. The Primary, everyday world which he knows through his senses and a secondary world or worlds which he not only can create in his imagination, but which he cannot stop himself creating.” Referring to the 1% Participation Rule, if you get a group of 100 people online then 1 will create content, 10 will interact and the other 89 will just view it (guardian.co.uk). The 5th “P” of marketing mentioned that social media makes relationships easier to create and maintain because of participation and participation is the future of marketing (Peter Kim, Forrester Research). Peter advocates that participation be added to the well-established 4 Ps of marketing (produce, price, place and promotion). J. Matthews, CEO, Macomm Management Services Sdn Bhd (2008) states: “Advertising is the most visible activity of a business; people don't usually see a company's manufacturing operations or its finances. Advertising is the first target of attack. We have to be in the forefront to know something before the industry gets attacked. This is Malaysian nature; we're very friendly people. It (sharing a secretariat) allows for savings in manpower and rental costs, and you have a secretariat which knows exactly what is happening in the industry and can see different points of view.” Apart from that, we also saw that many mainstream media platforms could be fragmented. Some good examples would be the television from the original 3 channels but this is now reaching almost 100 channels while the 3-4 radio stations is now in excess of 20. Also, newspapers are getting thicker and brands encounter an increasing challenge in communicating their brand messages through the clutter. There is too much information available in the market that consumers have now learnt to filter it. KNLim AUG08 MI
  • 5. The New Emerging Trend in Social Media 5 Table 2.0 Ad Spending by Media From Table 2.0, we observed that the Malaysian advertising market enjoyed buoyant growth of 22 percent in the first half of 2008, hitting RM 2.9 billion compared to the same period in 2007. The growth was mainly contributed by Terrestrial TV: +37%, Point-Of-Sale: +33%, Radio: +22% and Newspapers: +16% (Nielsen Advertising Information Services). Ad revenues in the Asia Pacific are forecast to increase by 5.6% to $91.1 billion in 2008, the rate of growth will fall to 2.5% in 2009, according to Media Partners Asia (MPA), rising back up to 6.4% in 2010. The -2.5% growth rate for 2009, when ad spend will reach $93.4 billion, is the lowest growth rate since 2002. Vivek Couto, Executive Director, MPA (2008) states: quot;Global contagion has clearly hit Asia. We expect advertising to decline in Japan, Hong Kong and Singapore, as well as in Australasia, next year. There will be a slowdown in China, India and Indonesia, though growth in these markets will remain relatively robust. In other markets, including Korea, Taiwan and much of ASEAN, there will be little growth next year.quot; KNLim AUG08 MI
  • 6. The New Emerging Trend in Social Media 6 2.2 Brand Branding is such an important element in the marketing and advertising arena and there is so much being written on branding which tend to sound very impressive yet confused people at the same time. So, what is branding all about? Jacky Tai states: “Many people still mistake branding as logo design. While it did originate with a logo (remember how cattle owner’s singe their logo or initials into the rumps of cows?), that logo is there for a purpose—differentiation. Before you can build a brand, you need to first know what branding is. The form of branding might have changed over 4,000 years but its function has remained the same.” 2.2.1 Association of Accredited Advertising Agents Malaysia (4As) The 4As was founded in the 1960’s with an objective to uphold good advertising and create awareness among the community on the accessibility of goods and services. This will support the interest of ad agencies with their customers, the advertisers. The Association deals with industry issues, supplies recommendations to its members and negotiates for better practices with the other industries either co-related or not to the advertising business. Apart from that, 4As also conduct training programmes such as the Shine Leaders and Shine 9. Datuk Vincent Lee, President, 4As (2008) states: “The only way to encourage local companies to build strong brands is to do brand evaluation. This is not an award but recognition. This is the time we want to push our local top brands to compete globally. Obviously, local companies have the financial resources and expertise. With the help of Interbrand, a lot of these brands can compete in the world within a short period of time; we can be top in Asia. Hopefully within a decade, some brands will go to the top 100 of the world global brands. The study must act as a catalyst to inspire the big players in this country to work towards to being in the global top 100 brands.” KNLim AUG08 MI
  • 7. The New Emerging Trend in Social Media 7 2.2.2 Malaysia's Most Valuable Brands (MMVB) 4As aims to give impetus to local companies to focus on brand building through a national brand valuation study called Malaysia's Most Valuable Brands (MMVB). The study aimed to create awareness of the importance of brand building among local companies and encourage those outside the top 30 list to be more aggressive in building their brands and getting a place in the list next year. The top five brands had each been valued at over US$1bil (RM3.35bil) would have the potential to make it to the 100 global brands. Maybank, as the top of 30 of Malaysia's most valuable brands, with a brandname worth RM9.6bil (US$2.7bil), followed by Public Bank at RM6.9bil, Maxis (RM5.3bil), Genting Bhd (RM4.6bil) and Celcom (RM4bil). 4As and Interbrand see DiGi, Genting, CIMB and AirAsia as the potential at the top five ranking. DiGi's potential was due to its incredible financial results for the last one year; Genting in making big leaps in the region's gaming sector; CIMB in seeing tremendous growth due to its merger with Southern Bank Bhd; and AirAsia, for having covered more routes, built up its brand and has reported strong financial results. Ho Kay Tat, editor-in-chief of The Edge (2008) states: quot;MMVB’s objective is also to highlight best branding practices and present the most valuable brands as role models for other companies. This valuation exercise will allow the top brands to compete more confidently on the world stage by leveraging on the strength of their brands.quot; To qualify as one of the most valuable brands in Malaysia, the brand or the company owning the brand must have Malaysian origins or be listed on Bursa Malaysia, or be owned by a listed company headquartered in Malaysia for at least 10 years. Malaysia’s Most Valuable Brands calculates the net present value of the earnings that the brand is expected to generate in the future for its owner. Interbrand Malaysia managing director Shehara de Silva said establishing a value for its brand would give a business a basis for making important strategic decisions, which in turn would help sustain and grow the business, and ultimately brand value. Interbrand, a wholly owned subsidiary of Omnicom, has conducted similar country ranking studies for 12 other countries, including Singapore, China, Canada and Australia. The evaluation of MMVB 2007 was completed in March 2007. The top 30 brand ranked by brand value is listed in Table 3.0. KNLim AUG08 MI
  • 8. The New Emerging Trend in Social Media 8 Table 3.0 Malaysia Top 30 Brand (2007) Brand Value Brand Value Rank Brand Industry ( RM millions ) ( US$ millions ) 1 Maybank Banking 9,645 2,764 2 Public Bank Banking 6,866 1,967 3 Maxis Telecoms 5,308 1,521 4 Genting Leisure/Entertainment 4,588 1,315 5 Celcom Telecoms 4,073 1,167 6 CIMB Banking 3,422 981 7 Astro Media/Entertainment 3,303 946 8 Hong Leong Banking 3,099 888 9 Perodua Automotive 2,445 700 10 DiGi Telecoms 2,095 600 11 Giant Retail 2,065 592 12 Malaysia Airlines Airline 1,719 493 13 Sime Darby Property/Infrastructure 1,524 437 14 TV3 Media 1,098 315 15 Petronas Energy 920 264 16 YTL Property/Infrastructure 731 210 17 RHB Bank Banking 653 187 18 Ambank Banking 651 187 19 AirAsia Airline 333 95 20 The Star Media/Entertainment 318 91 21 Dutch Lady Food & Beverage 300 86 22 Kurnia Insurance 291 83 23 Proton Automotive 239 68 24 MAA Insurance 232 67 25 Affin Bank Banking 228 65 26 Padini Apparel 212 61 27 Parkson Retail 125 36 28 Sunway Property/Infrastructure 89 25 29 Mamee-Double Decker Food & Beverage 87 25 30 Bonia Apparel 75 22 Total value of the Top 10 brands 44,844 12,849 Total value of brands #11-30 11,816 3,386 Total value of the Top 30 brands 56,660 16,235 2.2.3 Brand Extension KNLim AUG08 MI
  • 9. The New Emerging Trend in Social Media 9 Brand extension took place when a company introduces new products or new product variants or product improvements by leveraging the brand equity of the existing parent brand. When Tesco decided to extend its Finest brand into the home ware market and other non- food products, it re-launched the Finest brand with new packaging that use metallic-based ink to create a better depth and shine and hundreds of new lines to gain acceptance for the new product line. Essential factors that impact brand extension success are: (a) Fit between parent brand and brand extension (b) Parent brand conviction and parent-brand experience (c) Retailer experience (d) Marketing support 2.3 Internet KNLim AUG08 MI
  • 10. The New Emerging Trend in Social Media 10 Wikipedia define Internet as a global system of interconnected computer networks that interchange data by packet switching using the standardized Internet Protocol Suite (TCP/IP). It is a quot;network of networksquot; that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by copper wires, fiber-optic cables, wireless connections, and other technologies. The Internet carries various information resources and services, such as electronic mail, online chat, file transfer and file sharing, online gaming, and the inter-linked hypertext documents and other resources of the World Wide Web (WWW). 2.3.1 Internet Subscribers in Malaysia Referring to Table 4.0, the Internet users rose steadily from year 2000 to 2007 with the growth of population in Malaysia. However when the population drops in 2008, the number of internet users continue to rise which reflected the growing importance of internet as Malaysia moves towards advanced information, communications and multimedia services. Table 4.0 Internet Usage in Malaysia (2000-2008) YEAR Users Population % Pen. Usage Source 2000 3,700,000 24,645,600 15.0 % ITU 2005 10,040,000 26,500,699 37.9 % C.I.Almanac 2006 11,016,000 28,294,120 38.9 % ITU 2007 13,528,200 28,294,120 47.8 % MCMC 2008 14,904,000 25,274,133 59.0 % MCMC Dr Fadhlullah Suhaimi Abdul Malek, General Manager of Strategic Development Division, Telekom Malaysia (2008) states: “The number of the Internet subscribers in Malaysia is expected to reach the 10 million mark in the next five years. In 2004 the number of subscribers was 2.9 million, in 2005 it increased to 3.5 million subscribers, and in 2006 the number of subscribers in Malaysia was close to five million.” 2.3.2 Internet and Telecommunications in Malaysia During the late 1990s when economic crisis occured, Malaysia continued allocating capital to invest in information technology and telecommunications infrastructure. A list of Malaysia Search Engines and local directories are shown in Table 5.0. Apart from tha, KNLim AUG08 MI
  • 11. The New Emerging Trend in Social Media 11 the Multimedia Super Corridor (MSC) project has successfully attractd many high tech companies to set up in Malaysia. One bright spot in the market has been WiFi, and service providers begin to rollout their ‘hotspot’ services. The building of Malaysia’s telecommunications infrastructure has seen extensive fibre optic networks installed across the length and breadth of the country. Malaysia is pontential of becoming one of the information technology hub in the Asia region. Table 5.0 Malaysia Search Engines and Local Directories NETWORK MALAYSIA English Malaysia Directory and Search Engine. CARI English The first Malaysian search engine, in English and Malay. GOOGLE Malay and Google, Malaysian search engine. Site in English Malay. CATCHA English Catcha, the Malaysian Search Engine. MALAYSIA CENTRAL Bi-lingual Bi-Lingual: English Search & Carian Bahasa Malaysia. MALAYSIA DIRECTORY English Malaysian directory and search engine. Colossus English Search Engine Directory for Malaysia. YELLOW PAGES English Malaysian Yellow Pages. Also searches white pages, government, and embassies. NOW SELL English Directory of Malaysian search engines. It Features the links for sending your URL. 2.4 Online Networking and Advertising Three main social networking sites that have been popular in the last six months are introduced as mini case studies that demonstrate the power of social networking. The case studies represent a collection of presentations made by media proprietors during the researcher’s observation period. The data is useful in that it allows those who are not in the media industry to develop a basic understanding of social media’s potential as an advertising and marketing medium. KNLim AUG08 MI
  • 12. The New Emerging Trend in Social Media 12 2.4.1 Friendster Friendster was founded by Jonathan Abrams in March 2002 and has becomes the number one social network in Malaysia. In Malaysia, Friendster has over 7.6 million monthly unique visitors to Friendster.com as of July 2008. Referring to Table 4.0, there are approximately 15 million Internet users in Malaysia. And about 51% percent of Malaysia visited Friendster in July. With over 5 million registered users in Malaysia, about 34% of Malaysia’s Internet users have a Friendster account. A typical user spends 30 minutes a day on Friendster and visits Friendster several times a week, communicating with friends and sharing and consuming content through a suite of features. According to Adoi Magazine, Friendster has enabled its millions of users in Malaysia to subscribe to Friendster Text Alerts, refer to Figure 6.0 which was launched in May, 2008. This feature will let Friendster users to get notice via SMS regarding their network activity. Shortly speaking, with this feature, Friendster users will be able to receive text message alerts for events such as friend request, new messages, comments, bulletins, and more. Aside this activity, they can also share and communicate on Friendster by sending a text message to Friendster to update content on their profile such as shotouts, create bulletins, send message and reply to friend request. Friendster users who want to use this service will just need to enter their mobile phone details and choose which mobile text alerts they wish to receive without paying any service charges or fees to Friendster. But users are subject to text messaging usage fees from their wireless service provider. KNLim AUG08 MI
  • 13. The New Emerging Trend in Social Media 13 Figure 6.0 Friendster Text Alerts David Jones, Vice President of Global Marketing, Friendster (2008) states: “Friendster users tell us they want to stay connected with the latest updates about their friends and all of the sharing and communication that occurs on Friendster. Since SMS text messaging technology is universally available on mobile phones, our millions of users in Malaysia with mobile phones can now subscribe to Friendster Text Alerts to stay in touch, even when away from a computer.” 2.4.2 TwoMads KNLim AUG08 MI
  • 14. The New Emerging Trend in Social Media 14 TwoMads was founded by Alex Ho and James Lim in 2008 which applies the concept of pixel advertising. This new method helps to support local and overseas investors to broadcast information of their products and services. When a company decided to purchase pixels from TwoMads, as shown at Figure 7.0, it will gain more attention as there will be an image, an ad banner with description and a link to the company website which will remain at TwoMads homepage for a minimum of 3 years. Apart from that, it also benefits the community as customers can make comparison by picking close products or services competitors from the pixel list during pre-purchase stage. Figure 7.0 Everyone Can Advertise with TwoMads Alex Ho, Founder, TwoMads (2008) states: “Part of the income we make from this pixel advertising will be give as a donation to the old folks and orphanage home in Malaysia because we as a Malaysian Citizens do realize how hard is the life for them right now without the support in the form of mentally and financially from their family members, relatives or close friends. So we are glad to create a LOVE generation from the fund we will have in selling out all the pixels.” Advertisers that have bought pixels from TwoMads will automatically entitle to participate in the Cash Prize Contest – “TwoMAds.com is giving out RM200000 to be won worldwide!” Contest period and cash prizes are shown in Figure 7.1. KNLim AUG08 MI
  • 15. The New Emerging Trend in Social Media 15 Figure 7.1 TwoMads - Anyone Can Win Contest Apart from that, there are two more contests which are open to the public that subscribe as a member either through TwoMads homepage or Facebook TwoMads application. First of all, the Spot the Mistake contest, as shown at Figure 7.2, where the public are given 2 weeks time to search for answer and stand a chance to take home fabulous prize if he or she submitted the right answer in the shortest period. The second contest is the Spot Me contest, as shown at Figure 7.3, where the public are require to link TwoMads homepage at their own websites such as personal blogs. KNLim AUG08 MI
  • 16. The New Emerging Trend in Social Media 16 Figure 7.2 TwoMads - Spot the Mistake Contest Figure 7.3 TwoMads - Spot Me Contest Chapter 3.0: Methodology KNLim AUG08 MI
  • 17. The New Emerging Trend in Social Media 17 The data that has been gathered by the researcher can be categorized into primary and secondary data. The primary data consists of an e-survey and an interview transcript where both are reproduced in the Appendix A and B. The researcher has registered as a member of the esurveypros.com and created an online questionnaire that consists of 13 questions, as shown at Appendix A (I), then distributed to users at social networks which includes Friendster and Facebook and blog communities through BlogFlap and Blogspot . The targeted respondent’s age ranged from teens to young adults (15-25). Within one week, the researcher managed to collect 500 respondents. Out of 500 respondents, only one of the surveys has not completed. Result of the e-survey is shown at Appendix A (II). The data collected are been presented and analyzed in Chapter 4.0. The interview is the second research method to collect primary data where the researcher utilizes an informal style of interview via email correspondence, as shown at Appendix B. The researcher chooses this method as it is flexible. This approach allows the interviewer to structure the question to understand the perspective of the interviewees with no time limit. The researcher has interviewed Ian Stewart the Senior Vice President of MTV Networks Asia, Dr. Paul Leow the President of AARM Management Group USA (Canada), Wong Weng Wah an expert in Advertising and Marketing and last but not least Alex Ho the founder of TwoMads. Through these informal interviews, the researcher gained valuable feedbacks and was enlighten to view the new emerging trend in the social media from various perspectives. Next, the secondary data consists of data from online resources from the Internet, newspapers and books, which are listed in the list of references, figures and tables. The researcher sourced a significant volume of secondary data from the literature, trade journals and case studies. The researcher has used three small case studies which include Friendster as shown at Chapter 2.4.1 and TwoMads as shown at Chapter 2.4.2. The main purpose of utilizing case studies is to increase knowledge about real, contemporary communication events in the new social media context. These case studies will be introduced to provide an understanding of how successful campaigns can work in the social media environment. These secondary data are as important as the primary data as they provide useful information regarding historical events and statistics which help the researcher to make comparison and analyse them. KNLim AUG08 MI
  • 18. The New Emerging Trend in Social Media 18 Chapter 4.0: Data Presentation and Analysis An e-survey was carried out and successfully gathered feedbacks from 500 respondents. From Figure 8.0, 252 respondents (50.50%) spent more than 4 hours online daily, followed by 123 respondents (24.65%) who spent 3 to 4 hours per day, 87 respondents (17.43%) who spent 1 to 2 hours, 6 respondents (1.20%) who spent less than 1 hour and lastly 31 respondents (6.21%) who do not use the Internet on a daily basis. It shows that majority of Malaysian teenage and young adult are spending at least 3.35 hours a day consuming media. Average hours spent per day = Total hours Total respondents = (252 x 4) + (123 x 3.5) + (87 X 1.5) + (6 x 0.5) 252 + 123 + 87 + 6 = 3.36 hours per day Figure 8.0 Time Spent Online Next, as shown in Figure 8.1, every respondent was engaged with at least one social network. The top two social networks that teens in Malaysia actively engage in are Friendster with a percentage of 40.04% (444 respondents) and Facebook with a percentage of 34.63% (384 respondents). Next, followed by MySpace with a percentage of 9.02% (100 respondents), Tagged 7.03% (78 respondents), Zorpia 1.98% (22 respondents) and other social networks such as Plurk, Multiply, MyYearBook, Biz Face and Hi5. Through social networks, they can easily track down what their friends are doing and at the same time broaden their networks as they get to know new friends around the globe which give a sense of belonging. These social networks provide a common platform for teens around the world to speak up their mind, share information and contribute their ideas. KNLim AUG08 MI
  • 19. The New Emerging Trend in Social Media 19 Figure 8.1 Types of Social Networks Besides social networking, majority of the respondents also engage in blogging. Referring to Figure 8.2, 43 of them own more than 3 blogs (8.62%), 93 of them have two blogs (18.64%) and 283 of them own one blog (56.71%). This left only a small portion of respondents (16.03%) who do not blog. Blog has becomes a common ground for teens to pour out their thoughts and express themselves with words, diagrams, music and videos. Teens tend to customize their blogs which help to reflect their own unique characters and personalities. Different blogs are created for different purpose. Figure 8.2 Blog Participation Although the percentage of hours an average teen in Malaysia spend online is growing rapidly (refer to Chapter 2.3 Internet, Table 4.0 Internet Usage) but most of them have not purchase anything through the Internet before. From Figure 8.3, only 188 of them (37.68%) who had actually bought something through online while 311 (62.32%) nod their heads. Some of the reasons that prevent respondents to buy online are the wrong perceptions implanted in them such as buying online is not secure and is far more expensive. This group of respondent prefers the traditional buying method which requires one to pay the particular physical shop a visit just to get the products or KNLim AUG08 MI
  • 20. The New Emerging Trend in Social Media 20 services. In addition, another reason that prevents this group of respondent to buy online is not having any credit card. Figure 8.3 Purchasing Experience through the Internet However, from Figure 8.4, Malaysian teens still prefer branded items. Out of the 500 respondents, 263 respondents (52.71%) agreed that they do shop for branded items while 236 respondents (47.29%) purchased items without considering much whether they are branded or not. Those who go after branded items perceive that branded goods are usually better in terms of quality and long lasting which they do not mind to pay a higher price for such premium goods. A few established brands that have successfully build a strong reputation among these respondents are Nike, Zara, Armani Exchange, Guess, Adidas, Roxy, Topshop and Gap. On the other hand, those who do not really care much about brands, think that it is not rational to solely just make a buying decision based on brands as there are still many other factors that one has to consider before purchasing an item. These factors include feature and usefulness of the products, packaging and lastly a reasonable and affordable pricing range. Figure 8.4 Does Consumer Goes for Branded Goods/ Services 299 of them (59.92%) agree that advertisement do influence them during the buying process as shown at Figure 8.5. This group of respondent will usually refer to advertisement as a guideline before purchasing any items. Advertisements allow them to make comparison on the features, price and after sales service of the products they plan KNLim AUG08 MI
  • 21. The New Emerging Trend in Social Media 21 to buy. On the other hand, 200 respondents (40.08%) disagree with the statement. They said that advertisement is a threat use by marketers to brain wash consumers. Unlike the previous group of respondents, these 200 respondents will usually filter all the advertisements. They tend to think that the market place is flooded with too many information and consumers are provided with too many choices. Figure 8.5 Does Advertisement Affect Buying Decision From Figure 8.6, 258 respondents (28.89%) followed advertisement regarding fashions such as clothing, shoes and accessories. Next, follows by advertisement about technology gadgets with 233 respondents (26.09%) and electronic devices with 182 respondents (20.83%). Only 98 respondents (10.97%) followed automobile advertisements. Besides that, Malaysian teens are also interested in advertisement regarding food, health and beauty products, cosmetics, music, books and stationary. Figure 8.6 Advertisement Follow-Up Trends According to Figure 8.7, only 207 respondents (41.48%) tend to over spend during mega sales and promotion seasons. On the other hand, 292 respondents deny that they did not over spend during sales or promotion seasons. They are slightly more rational and tend to purchase only when is necessary for them. This type of respondent is hard KNLim AUG08 MI
  • 22. The New Emerging Trend in Social Media 22 to persuade and need specific marketing strategies to capture their attention. Consumers are getting smarter they tend to allocate their money wisely. Figure 8.7 Does Consumer Overspend During Sales From Figure 8.8, 99 respondents (19.84%) have credit cards which encourage them to buy online. This group of respondent also tends to contribute to the overspend percentage especially during sales and promotion seasons as they could buy on credit as shown in Figure 8.7. On the other hand, 400 respondents (80.16%) do not have credit card. According to this group of respondent, without credit card has actually created a barrier for them to buy products through the Internet which had contributed to the none online buying experience as shown in Figure 8.3. Figure 8.8 Does Consumer Possess A Credit Card KNLim AUG08 MI
  • 23. The New Emerging Trend in Social Media 23 Appendix: E-Survey Answers marked with a * are required. Social Media Survey Here is a social media survey to gather information for my entrepreneurial project. I would appreciate your cooperation in answering the following questions. 1. How many hour(s) do you spend online every day? * No, I don’t use the internet every day. Less than 1 hour. 1 - 2 hours. 3 - 4hours. More than 4 hours. 2. Do you join any of the following social network(s)? * KNLim AUG08 MI
  • 24. The New Emerging Trend in Social Media 24 Facebook Friendster MySpace Netlog Tagged Zorpia Other (Please Specify) 3. Do you blog? How many blog(s) do you have? * No, I don’t have a blog. I have 1 blog. I have 2 blogs. I have more than 3 blogs KNLim AUG08 MI
  • 25. The New Emerging Trend in Social Media 25 4. Have you purchased anything through the internet? * Yes. No. 5. Reason(s) for (not) purchasing through the internet. 6. Do you go for branded item(s)? * Yes. No. 7. Example(s) of brand(s). 8. Do advertisement(s) affect your buying trend/ buying decision? * Yes. No. 9. What kind of advertisement(s) that you often follow? * KNLim AUG08 MI
  • 26. The New Emerging Trend in Social Media 26 Automobile. Electronic devices. Fashion. Technology gadgets. None of the above Other (Please Specify) 10. Do you tend to over spend during sales? * Yes. No. 11. Do you have credit card(s)? * Yes. No. 12. I would consider buying a certain product because of: (Rank the following from 1 to 9 in order of preference) * KNLim AUG08 MI
  • 27. The New Emerging Trend in Social Media 27 1 2 3 4 5 6 7 8 9 Advertisement Established brand KNLim AUG08 MI
  • 28. The New Emerging Trend in Social Media 28 Friend's recommendation Highly demanded product Latest product/ trend KNLim AUG08 MI
  • 29. The New Emerging Trend in Social Media 29 Personal use/ household necessity Product quality Repurchasing KNLim AUG08 MI
  • 30. The New Emerging Trend in Social Media 30 Sales/ promotion/ discount 13. How does advertising leave an impact on consumer’s behaviour in purchasing product(s)? (Rank the following from 1 to 7 in order of preference) * 1 2 3 4 5 6 7 Feature KNLim AUG08 MI
  • 31. The New Emerging Trend in Social Media 31 Packaging Popularity Pricing KNLim AUG08 MI
  • 32. The New Emerging Trend in Social Media 32 Promotion Quality Usefulness KNLim AUG08 MI
  • 33. The New Emerging Trend in Social Media 33 Create free online surveys with eSurveysPro.com. <http://www.esurveyspro.com/Survey.aspx?id=2422e236-d60f-476d-854f-d78cc6edc141> Appendix A (II) E-Survey: Results Page 1. Social Media Survey KNLim AUG08 MI
  • 34. The New Emerging Trend in Social Media 34 1. How many hour(s) do you spend online every day? % of Respondents Number of Respondents No, I don’t use the internet every day. 6.21% 31 Less than 1 hour. 1.20% 6 1 - 2 hours. 17.43% 87 3 - 4hours. 24.65% 123 More than 4 hours. 50.50% 252 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 35. The New Emerging Trend in Social Media 35 2. Do you join any of the following social network(s)? % of Respondents Number of Respondents Facebook 34.63% 384 Friendster 40.04% 444 MySpace 9.02% 100 Netlog 1.53% 17 Tagged 7.03% 78 Zorpia 1.98% 22 KNLim AUG08 MI
  • 36. The New Emerging Trend in Social Media 36 3. Do you blog? How many blog(s) do you have? % of Respondents Number of Respondents No, I don’t have a blog. 16.03% 80 I have 1 blog. 56.71% 283 I have 2 blogs. 18.64% 93 I have more than 3 blogs 8.62% 43 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 37. The New Emerging Trend in Social Media 37 4. Have you purchased anything through the internet? % of Respondents Number of Respondents Yes. 37.68% 188 No. 62.32% 311 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 38. The New Emerging Trend in Social Media 38 5. Reason(s) for (not) purchasing through the internet. N u m b e r o f R e s p o n d e n t s 375 Number or respondents who skipped this question 125 KNLim AUG08 MI
  • 39. The New Emerging Trend in Social Media 39 6. Do you go for branded item(s)? % of Respondents Number of Respondents Yes. 52.71% 263 No. 47.29% 236 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 40. The New Emerging Trend in Social Media 40 7. Example(s) of brand(s). N u m b e r o f R e s p o n d e n t s 315 Number or respondents who skipped this question 185 KNLim AUG08 MI
  • 41. The New Emerging Trend in Social Media 41 8. Do advertisement(s) affect your buying trend/ buying decision? % of Respondents Number of Respondents Yes. 59.92% 299 No. 40.08% 200 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 42. The New Emerging Trend in Social Media 42 9. What kind of advertisement(s) that you often follow? % of Respondents Number of Respondents Automobile. 10.97% 98 Electronic devices. 20.38% 182 Fashion. 28.89% 258 Technology gadgets. 26.09% 233 None of the above 9.97% 89 O t h e r ( S p KNLim AUG08 MI
  • 43. The New Emerging Trend in Social Media 43 10. Do you tend to over spend during sales? % of Respondents Number of Respondents Yes. 41.48% 207 No. 58.52% 292 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 44. The New Emerging Trend in Social Media 44 11. Do you have credit card(s)? % of Respondents Number of Respondents Yes. 19.84% 99 No. 80.16% 400 Number of respondents 499 Number or respondents who skipped this question 1 KNLim AUG08 MI
  • 45. The New Emerging Trend in Social Media 45 12. I would consider buying a certain product because of: (Rank the following from 1 to 9 in order of preference) 1 2 3 4 5 6 7 8 9 Number of Respondents Advertisement 10% (52) 8% (41) 10% (52) 11% (55) 17% (85) 12% (62) 13% (68) 9% (45) 7% (39) 499 Established brand 6% (32) 7% (37) 8% (43) 8% (44) 15% (75) 11% (59) 18% (90) 12% (64) 11% (55) 499 Friend's recommendation 5% (25) 3% (19) 10% (50) 12% (60) 16% (83) 15% (79) 19% (97) 10% (53) 6% (33) 499 Highly demanded product 6% (31) 4% (20) 9% (47) 12% (61) 14% (74) 15% (75) 13% (66) 15% (76) 9% (49) 499 Latest product/ trend 5% (29) 5% (29) 10% (51) 9% (48) 13% (67) 17% (85) 14% (74) KNLim AUG08 MI
  • 46. The New Emerging Trend in Social Media 46 13. How does advertising leave an impact on consumer’s behavior in purchasing product(s)? (Rank the following from 1 to 7 in order of preference) 1 2 3 4 5 6 7 Number of Respondents Feature 9% (49) 7% (35) 10% (50) 12% (61) 20% (101) 22% (113) 18% (90) 499 Packaging 5% (25) 7% (37) 9% (45) 14% (70) 22% (110) 21% (105) 21% (107) 499 Popularity 7% (38) 5% (27) 5% (28) 14% (70) 22% (113) 24% (124) 19% (99) 499 Pricing 9% (49) 7% (38) 6% (30) 12% (61) 14% (72) 20% (100) 29% (149) 499 Promotion 7% (39) 5% (29) 7% (37) 15% (76) 20% (100) 21% (106) 22% (112) 499 Quality 11% (58) 10% (52) 7% (36) 8% (41) 8% (43) KNLim AUG08 MI
  • 47. The New Emerging Trend in Social Media 47 <http://www.esurveyspro.com/SummaryReport.aspx?surveyId=33448> KNLim AUG08 MI