HEADING TOWARDS THE
FUTURE ASLEEP AT THE WHEEL

MTV History

VIDEO KILLED THE RADIO STAR

MTV Future

SOCIAL MEDIA KILLED THE VIDEO STAR

– YOU ARE TOO LATE FOR THIS

VIACOM IN $ 1BLN COPYRIGHT SUIT VS YOUTUBE –
YOU ARE A SORE LOSER

…AND TEENS WILL
HATE YOU FOR THIS

YOU DON‘T UNDERSTAND
YOUTH CULTURE ANYMORE

EXHIBITIONISM

VOYEURISM

EXCHANGE

YOU ARE LOOSING YOUR HERITAGE

… AND YOU DON‘T UNDERSTAND
YOUR BUSINESS ANYMORE

YOU ARE BUILDING
COMMUNITY BRANDS (HUBS)…

…AND MANAGE COMMUNITIES

…OTHERS ARE CURRENTLY DOING IT BETTER

INTEGRATING
th

…EVEN COKE IS DOING IT BETTER!!!

THE MYSPACE PARADOXON

…MYSPACE DEPENDS ON YOU AND
YOU DON‘T SEE IT

…AND YOU ARE PUSHING
THE BETTER ONES - *tststs*

…ITS TIME TO WAKE UP!

IT‘S THE END OF PURE VERTICAL INFLUENCE

Transaction Marketing Relationship Marketing Interactional Marketing
C
B C B C B
C
Functional Productbenefit Emotional Productbenefit Social Productbenefit
+ Functional Productbenefit + Emotional Productbenefit
+ Functional Productbenefit

The Social Network Community Industry

Global Trends 2007+!

Visual Communication
Crowd Sourcing
Open Innovation
Geostreaming Mediafragmentation Live-Research
Word-of-Mouth
Geo-Communities
Ethnic-Communities Marketing
50+Flocks/GreyCommunities Villaging Local Customization
Wifi-Communities
Social Brand Politics Consumer Generated Media
Glocalisation
TivO CrossMobile
Social Bookmarking
Jetrosexual
Parasite Kids/Singles
Mobile Widgets
Third Place
Product-Kits
Second Life
(Mobile-) Tagging
s
P2P
Gameplacement
RFID Social Gaming
Embedded Branding
Planned Spontaneity Earthmarketing
Self-Reliance
Disruption YouTube-
Mobile Communities Web 2.0
Social-Branding
Research
Dynamic Pricing
Mobile Blogging Geo-Gaming
Consumer-Control
Location Based Services 2.0
Sceptizism Geo-Blogging
Info-Overload
Mobile-Cocooning 2.0 Business Blurring and Convergence
Search for Meaning
Brandtainment Retro-Obsolescence
Brandience
Scienfotainment Dynamic Search
Source: Brand Science Institute/ N=1136
Engine Marketing

everything

Challenges

LOT‘S OF FISH IN THE SEA

SHRINKING
COOLNESS

LONGER
COMMUNITY
GROWTH
CYCLES
Quelle: Northeastern University

INNOVATION GAP
FOR 3-4 YEARS

ANTHROPOLGY
vs.
TECHNOLOGY

DANGER OF PARA-SOCIAL
ABER!
GROUP BEHAVIOR

CULTURAL
DIFFERENCES

RESEARCH?
ADVERTISING?
PR?
MARKETING?

Opportunities

Social Network Community „Ad“ Spending
$95
2006
$350
$205
2007
$865
$710 $70 $780
2010
$2150 $90 $2240
Note: Definitions includes general social network sites where social networking is the primary activity, social network offerings,
vertical social network devoted to a specific hobby or interest, and social networks created by a marketer that are either stand-alone
sites or part of a larger marketer site. In all case, figures include online advertising spending as well as fees paid to social networking
ventures for site or profile page development
Europe
US
Convergence Budgets Source: Emarketer/Komjuniti

TOP ADVERTISERS
SHIFTING
BUDGETS INTO
SOCIAL NETWORK
COMMUNITIES

NEW
ADVERTISING
MODELS

NETWORK BASED ADVERTISING CONTEXT

AWAKING
EUROPEAN
COMMUNITY
I CLUSTERS
V
III
IV
P
P S
V TLR
L
II

STICKINESS OF
COMPETITORS TO
COMMUNITY MODELS

How did we help the industry lately?

EBAY
WORLDSHOPPING

NIKE
GEO-GAMING

COCA-COLA
ENTERTAINMENT

NOKIA
MOBILEBLOGGING

MACY‘S TAXI
COMMUNITY

MTV
SHAZAM

Puuhh - We are
This isn‘t the sort of producing content
not social networks
thing we show our
senior management…
We have already got
send-to-a-friend e-cards
and MTV Overdrive

More community members everyday….

„The Changing Paradigma“
ons
the reas
at a re
…wh

Consumers Learn
Source: Spiegel

DECENTRALIZATION

LOW COST

COMPLEXITY

CONSUMERS ARE FREE OF
BIAS BORN OF THE DESIRE
FOR A SALE – THEY
BELIEVE MORE IN WHAT
OTHER CONSUMERS SAY!

…what are social network communities?

A community usually refers to a group of
people who interact and share certain
things as a group, in which intent, belief,
resources, preferences, needs, risks and
a number of other conditions may be
present and common, affecting the
identity of the participants and their
degree of adhesion.

…main factors?

LUCK?

…let me ring up God knows what we
Sumner Redstone... are going to do with
MySpace… (July 2006)
This thing may be worth
$6 billion! (Nov 2006)
MONEY?

No!

Community
Members/ Shared Interest/ Space of
Interaction
Networks Motivation Interaction

…what is interaction?

ONLY ONE-TO-ONE
OR FACE-TO-FACE
INTERACTION?

No!

COMMUNICATION IN
ONLINE AND OFFLINE
ENVIRONMENTS

OBSERVATION
OF OTHERS

…how do social network communities grow?

…a little bit of history!

SELF-REPORT
15% of all conversations involve brands and products 1-DAY PROXIMITY
40% of all conversations are about media
Quelle: MIT Media Lab

1.004.727.825 Conversations

INNER OUTER
Quelle: Northeastern University

G0 G1 G2 G3+
18x 1.7x ??
Quelle: Northeastern University

…who are the driving members?

Connectors?
Mavens?
Opinion Leaders?
Trendsetters?
Hubs?
Influentials?
Alphas?
Bees?
Sneezers?
Heavy Loyals?
Lead-Users?

THE TRENDSETTER?

THE EXPERT?

THE HEAVY LOYAL?

No!

THE LIGHT LOYAL:LUCY!

...?

NETWORKS

2 CRITERIA OF NETWORKS ARE IMPORTANT FOR THE FLOW OF INFORMATION!
„sparse“ network
„dense“ network
TIE STRENGTH DENSITY

THE STRENGTH
OF WEAK TIES
Quelle: Hufnagel 2004; Granovetter 1973

LUCY‘S MOTIVATION TO INTERACT?

PURPOSIVE
VALUE?

ALTRUISM?

SELF-DISCOVERY?

ENJOY TALKING?

SOCIAL
ENHANCEMENT?

ENTERTAINMENT?

...what are people really talking about?

SURPRISE
SECRETS
SHOCK

...what could we learn?

Interaction
Interaction Motives Marketing Management
Target Groups
Purposive Waste of money
Altruism Best of luck
Self-Discovery Low product/brand involvement
Enjoy Talking Difficult to control and stimulate
(self-assurance)
Social Enhancement Potentially powerful
(emotional/cognitive)
Entertainment
(information incongruence) Hard to conceptualize

The ultimate question:

WILL OUR INFORMATION REALLY
MAKE LUCY LOOK GOOD?

…the space of interaction?

MOBILE ONLINE OFFLINE

…any preferences?

+
+
Coverage
s Media 1.0
lo s
g
e rin
t
at e
Sc ag
i tr
A rb Web 2.0
Mob 2.0
Time of informational spread +

…key community success factors?

ORGANIC over AMPLIFIED

CONVERSATION over ANNOUNCEMENT

IDEAS over INVESTMENT

LONG TAIL over MASS AUDIENCE

SHARE over PROTECT

PRESENT over SUBSCRIBE

EARLY AVAILBILITY over CORRECTNESS

SELECT BY CROWD over EDITOR

HONEST VOICE over CORPORATE SPEAK

EXPERIENCE over PUBLICATION

LINK over PRODUCT

…most important…

MITWIRKUNGSEFFEKT –
HAWTHORNE EFFECT

Top myths about social network communities

INVITE EVERBODY
& ANYBODY

No!

CONCENTRATE
ON YOUR
ADVOCATES

BLOGS =
COMMUNITY

No!

COMMUNITY =
PEOPLE

BUILDING COMMUNITIES
WITH NEW CUSTOMERS?

No!

CONCENTRATE ON
LIGHT-LOYALS

CORPORATE BRANDS ARE
THE MAIN DRIVERS FOR
COMMUNITY BUILDING?

No!

CONSUMERS TAKE PART AS
COMMUNITY MEMBERS OF
THEIR BELOVED SUB-BRANDS

COMMODITIES COULD
NEVER BECOME
COMMUNITIES

No!

SURE, COMMODITIES CAN
BECOME COMMUNITIES
community
experience
service
good
commodity

OBVIOUS NORMS ARE A
SIGNAL FOR HEALTHY
COMMUNITIES?

No!

NORMS OFTEN RESULT IN
PRESSURE AND REACTANCE
OF COMMUNITY MEMBERS!

COMPANIES SHOULD
SUPPORT COMMUNITIES
ACTIVELY AND VISIBLY?

No!

BE THE SMART MODERATOR-
LEAD THE CONVERSATION

THERE IS ONLY SPACE FOR
JUST ONE BIG COMMUNITY
IN THE INDUSTRY?

No!

COMMUNITY COMPETITION
HELPS CONSUMERS TO
MAKE DISTINCT DECISIONS

COMMUNITIES ARE
STRONG AND LAST
FOREVER

No!

STICKINESS TO THE
SYSTEM COULD ERODE
THE COMMUNITY IN THE
LONG RUN

COMMUNITY
BASHING IS
DANGEROUS

No!

COMMUNITY MEMBERS
FIGHT AGAINST
BASHING AND KICK
INTRUDERS OUT

…hmmm

As long as we can
delete the negative
As long as we can
Regulatory issues stuff!?!?!
delete the negative
won‘t let us do this!!! stuff!?!?!
They are not like us

STILL FEAR OF
THE UNKNOWN?

…OR TOO SLOW?

…ok, learn from the bad!

…ok, learn from the bad!

– YOU ARE TOO LATE FOR THIS

…got it?

Space of Interaction
Shared Interest
Brand Related Values
Interaction
Member/Benefits

Does this give us
the same ROI as
How do we know our
advertising?
community is working?
What‘s our reach
with communities?

Show me the money!
SHOW ME
THE MONEY!

…first off all we show you what you get!

…constantly control!

OUR COMMUNITY
CONTROL
CENTER

… some measures we use and invented!

Net Promoter ™ Scoring
NET PROMTER
“How likely are you to recommend to a friend or
colleague in the future?”
SCORE
Extremely Extremely
Likely Unlikely
10 9 8 7 6 5 4 3 2 1 0
Promoters Passively Detractors
Satisfied
• Median Net Promoter™ Score, all industries: 16
• Median Komjuniti Net Promoter™ Score: 31

COMMUNITY VALUE
CREATION INDEX

SALES CLIMATE
FORECAST

…reporting on a daily, weekly, yearly basis!