Social Networking and Media Peter Williams

Outline Growth of Social networking Culture not technology Will it overtake traditional media? Opportunities for advertisers? Going Viral Blogs and Network tools for business

Growth of Social networking

Culture not technology

Will it overtake traditional media?

Opportunities for advertisers?

Going Viral

Blogs and Network tools for business

Growth of Social media

Current social growth areas

Twitter on the rise

The search began … Young innovator hooks in to search.twitter.com and enters “petrol price tracker” as a search term to see who has been talking about this new application…

The search began …

Young innovator hooks in to search.twitter.com and enters “petrol price tracker” as a search term to see who has been talking about this new application…

The conversation started … Young innovator directly address those identified to be talking about the petrol price tracker and asks if they know how they get their data - note that the time that this happened…

The conversation started …

Young innovator directly address those identified to be talking about the petrol price tracker and asks if they know how they get their data - note that the time that this happened…

The problem was solved … Young innovator gets the answer she was looking for… within the minute.

The problem was solved …

Young innovator gets the answer she was looking for… within the minute.

This is a cultural thing We observe what you say …but don’t believe you We search the social web to find out what “we” say We will take the word of an unknown blogger as gospel

We observe what you say …but don’t believe you

We search the social web to find out what “we” say

We will take the word of an unknown blogger as gospel

Today’s Leader

Will it or has it overtaken mainstream media In 2007, publicly traded US newspaper companies collectively lost $11 billion, or 26% of their value. Print circulation for paid newspapers in the US has fallen more than 16% since its peak in 1990, and coincident growth in online audiences and online ad revenue still falls short of filling the revenue gap left by the loss in print circulation. Content that newspapers used to "own," from news and sports to jobs and real estate, have fragmented across different channels. Overtaken by: Crikey.com.au Seek.com.au Ohmynews.com At the same time, the increasing price of newsprint — up 11% in the past six months — makes the cost of printing a paper for fewer readers ever more costly 70% of Gen Y’s have broadband

In 2007, publicly traded US newspaper companies collectively lost $11 billion, or 26% of their value.

Print circulation for paid newspapers in the US has fallen more than 16% since its peak in 1990, and coincident growth in online audiences and online ad revenue still falls short of filling the revenue gap left by the loss in print circulation.

Content that newspapers used to "own," from news and sports to jobs and real estate, have fragmented across different channels. Overtaken by:

Crikey.com.au

Seek.com.au

Ohmynews.com

At the same time, the increasing price of newsprint — up 11% in the past six months — makes the cost of printing a paper for fewer readers ever more costly

70% of Gen Y’s have broadband

Mainstream heads social

Social media goes ballistic

“Citizen Journalists don’t Investigate like real ones” … Huh

Time Spent Reading Print Newspapers Has Decreased 17% In Five Years

Audiences Go Elsewhere For Content That Newspapers Once Owned Gen Y habits give a glimpse to the future…

How can advertisers utilise social networks Social networking is an activity that 37% of US adult Internet users and 70% of online teens engage in every month, and the numbers continue to grow. eMarketer projects that by 2011, one-half of online adults and 84% of online teens in the US will use social networking.

Social networking is an activity that 37% of US adult Internet users and 70% of online teens engage in every month, and the numbers continue to grow. eMarketer projects that by 2011, one-half of online adults and 84% of online teens in the US will use social networking.

How can advertisers utilise social networks

Old Marketing: PRODUCT PACKAGING DISTRIBUTION CRM ADVERTISING CONSUMER How can advertisers utilise social networks

PRODUCT PACKAGING DISTRIBUTION ADVERTISING CONSUMER CRM New Marketing: How can advertisers utilise social networks

Often inventors don’t know what their invention is. So let their customers work it out for them. OPEN CLOSED Let’s work together and collaborate:

Often inventors don’t know what their invention is. So let their customers work it out for them.

Hackers – The “amateur professionals”

The smart guys are outside

I mean really smart

Turning it into results Companies that are working out how to cultivate, develop and harness innovation are: Company of $70 billion (average growth of…?) 9000 researchers Created the ‘connect and develop’ program 45% of new initiatives discovered from non P&G employees R%D productivity raised by 60% - costs have fallen Other companies can build 70% of their cars faster, better and cheaper BMW estimates that 90% of innovations will come in the software and electronics areas Frees resources to set benchmarks in the key brand influencing fields of innovation A place where seekers and solvers come together Prizes given for successful solvers ($5,000 - $1,000,000) Companies can outsource the problems they can’t solve

Companies that are working out how to cultivate, develop and harness innovation are:

Company of $70 billion (average growth of…?)

9000 researchers

Created the ‘connect and develop’ program

45% of new initiatives discovered from non P&G employees

R%D productivity raised by 60% - costs have fallen

Other companies can build 70% of their cars faster, better and cheaper

BMW estimates that 90% of innovations will come in the software and electronics areas

Frees resources to set benchmarks in the key brand influencing fields of innovation

A place where seekers and solvers come together

Prizes given for successful solvers ($5,000 - $1,000,000)

Companies can outsource the problems they can’t solve

Hackers Rule

Let’s work together and collaborate: AGENCY CONSUMERS COMPANY INFORMATION & INPUT INSIGHTS & IDEAS INNOVATION & CONTENT BETTER BRANDS

Use of social networks for viral marketing…

Results 250,000 active users 86% of visitors returned at least once 57% came back 9 times or more 1M+ AceBucks earned by consumers playing the game, which can be redeemed for actual shoes Use of social networks for viral marketing…

Results

250,000 active users

86% of visitors returned at least once

57% came back 9 times or more

1M+ AceBucks earned by consumers playing the game, which can be redeemed for actual shoes

The little guys can do it too

TShirt Designers and customers

But why? It’s the culture The greater good; the bigger picture Kudos Because they can They can make it better, they want it better It’s fun $$$ Careers

It’s the culture

The greater good; the bigger picture

Kudos

Because they can

They can make it better, they want it better

It’s fun

$$$

Careers

Making money through new models of networking and distribution

“I love it when a plane comes together”

Experimenting

Can advertisers benefit from business blogs and other business network tools?

+ Can advertisers suffer from business blogs and other business network tools? = 11% stock price drop

+

Serious blogging by the big guys

Don’t Be Shifty… The Flog is found out!

In conclusion This is both cultural and technology change Don’t do the radio to TV thing … think strategically It is about engaging not targetting It is tough to sell to hierarchical organisations Experiment .. Low cost, off brand It is only the beginning Get out and innovate

This is both cultural and technology change

Don’t do the radio to TV thing … think strategically

It is about engaging not targetting

It is tough to sell to hierarchical organisations

Experiment .. Low cost, off brand

It is only the beginning

Get out and innovate