Social Media & Marketing: Online advertising and networking Alex Wong [email_address]

Social media describes the online technologies and practices that people use to share opinions, insights, experiences, and perspectives with each other (Wikipedia 2007) [ Recap ] What is social media?

They share one or more characteristics [ Recap ] Participation Openness Conversation Community Connectedness

[ Recap ] Source: Future Exploration Network, 2005

Social Media’s elements Networks Word of Mouth Interactivity [ Interconnected ] Web 2.0 World

6 Dimensions of Interactivity Interactivity is one of the important elements in advertising studies as it has been used as a measurement of advertising effectiveness of the internet User control Responsiveness Real time interactions Connectedness Personalization/ customization Playfulness

User control

Responsiveness

Real time interactions

Connectedness

Personalization/ customization

Playfulness

Evolution of E-Business

Australian Population: Media Consumption Data : Roy Morgan April – March 2007

Total Online Market by Qtr Source: NineMSN, 2007 $69M $94M $106M $119M $118M $145M $167M $190M $195M $226M $263M $317M Category Q2 FY 07 Q/Q Growth Y/Y Growth General 91,500,000 ? 17.3% ? 47.6% Classifieds 89,000,000 ? 9.9% ? 48.3% Search & Directories 136,500,000 ? 31.3% ? 100.7% Total 317,000,000 ? 20.5% ? 66.8% Growth by Category (Qtr) Category 1 H FY 07 H/H Growth Y/Y Growth General 169,500,000 ? 27.0% ? 48.7% Classifieds 170,000,000 ? 31.8% ? 49.1% Search & Directories 240,500,000 ? 51.7% ? 86.4% Total 580,000,000 ? 37.8% ? 62.5% Growth by Category (Half) Category Q2 FY 07 Q/Q Growth Y/Y Growth General 91,500,000 ? 17.3% ? 47.6% Classifieds 89,000,000 ? 9.9% ? 48.3% Search & Directories 136,500,000 ? 31.3% ? 100.7% Total 317,000,000 ? 20.5% ? 66.8% Growth by Category (Qtr) Category 1 H FY 07 H/H Growth Y/Y Growth General 169,500,000 ? 27.0% ? 48.7% Classifieds 170,000,000 ? 31.8% ? 49.1% Search & Directories 240,500,000 ? 51.7% ? 86.4% Total 580,000,000 ? 37.8% ? 62.5% Growth by Category (Half)

Roy Morgan Single Source Report Apr06 – Mar07 Australian Population 14yrs+ media consumption in the last 4 weeks

Changes in heavy media consumption amongst the Australian population 14yrs+ Roy Morgan Single Source Report Apr06 – Mar07

What is social networking?

Social Networks is the ground for social capital What is a network? Nodes (actors) Ties (relationships) Nodes (actors) Nodes (actors) Relationship Relationships “ A network is a set of relationships critical to your ability to get things done” Nodes (actors)

What is a network?

Nodes (actors)

Ties (relationships)

Network Properties Structure - Size, Density, Redundancy Composition Focus “ The shape of your network determines your access to information, resources, opportunities, and support”.

Network Properties

Structure - Size, Density, Redundancy

Composition

Focus

A SOCIAL NETWORK is a map of the relationships between individuals, organizations and other relevant NODES indicating the ways in which they are connected by financial, social or professional LINKS.

The Long Tail Who needs megahits?

In the past

Ratings of Top TV shows

Where are they all going?

A powerlaw

Shown another way

The Missing Market

CONTROL

The “momentum” effect Traditional marketing: Social marketing:

Non-linear by nature Size = Incidence (# of people doing activity) “ Each Interaction is an Impression” Visit Brand Custom Community View Download (in brand’s community) Receive Brand Pass Along Pass Along Use on Own Page View Download (on user’s page)

Social Networks – best for making meaningful connections

In short…… Is all about the consumer

EXPERIENCE CONVENIENCE RELATIONSHIP PERSONALISATION

Thank You