The conversationloop july2011
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The conversationloop july2011 Document Transcript

  • 1. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformThe ConversationLoop: a NewMarketing PlatformA collaborative whitepaper byHakuhodo and Direct Partners.Tasuku YamanokuchiJerry McRuerTyler GaulJonathan Rouse Page 1 of 19
  • 2. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformThe Conversation Loop: ANew Marketing PlatformExecutive SummaryWe are witnessing an unprecedented shift in the ways consumers interact with brands.This shift represents both a threat and an opportunity for brand marketers.At base, this shift represents a major loss in the effectiveness of traditional, linearmedia channels like TV, print, and radio. This is caused by the combination of two mainfactors: the rising consumer distrust of large-scale advertising and the rise ofconsumer-controlled communication channels, otherwise known as “social media.”Empowered by their own media channels, consumers have taken control of brandmessaging, to the point that they feel like they are co-owners of the brands theyconsumer. Instead of passively "listening" to brand messages, they actively conducttheir own "brand conversations" outside of traditional advertising channels — startingtheir own "fan" pages on Facebook and making their own product videos on YouTube.In some cases, these consumer activities reach a wider audience than most primetimemedia buys, 1 and they do so more relevantly and effectively.In this new environment, it is the brands that must do the listening. The new socialmedia offers a rich source of data along with numerous new opportunities for directcustomer interaction. This can provide a wealth of consumer/brand insights that werepreviously unavailable to marketers, allowing them to segment customers andcommunicate to them more cost-effectively.Hakuhodo and Direct Partners have developed The Conversation Loop MarketingPlatform to bring this approach into action. We are currently using this platform for anumber of Fortune 500 clients, helping them to revolutionize the way they profitablyrelate to their consumers.1 See Impact of Social Media Channels for details Page 2 of 19
  • 3. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformThe Shift Represents Both aThreat (-) and an Opportunity(+) for Marketers(-) Erosion of Consumer (+) A Data Explosion.Trust. As consumers connect with each other and take ownership in brands, theyAdvertising is everywhere these days, and become comfortable with sharing theirmuch of it appears in a context that is not views and actively participating in onlinerelevant to the consumer. As consumers communities. This online socialhave become desensitized to marketing environment represents a consumer datacommunications, they have raised their mine that allows marketers to connect toexpectations for truth in advertising, consumers in an instantaneous or real-product quality and brand relevance. time way for the first time in history.(+) Consumers as “BrandOwners.” (+) Greater MarketingTodays consumers are seeking to form a Effectiveness at Lowerdeeper relationship with their favorite Cost.brands by interacting with them onmultiple levels. For example, consumers Brand communications that are informedand companies are now “teaming up” to by these rich data sources are moreevaluate and improve products, or even relevant to consumers and, therefore,create new ones. The same goes for more effective. Digital media channelsadvertising campaigns. allow brand communications to be delivered in the right way, at the right time and in the right amounts. They can(-) Emergence of Social provide massive growth in brand equity atMedia. a fraction of the cost of traditional advertising channels.Unlike traditional advertising channels (TV,radio, magazines), social media channelslike Facebook and YouTube are controlledby the consumer. Because of theirpopularity, these sites can give a brandmore exposure (negative or positive) thana well-financed TV campaign. Becauseconsumers trust these channels, they canstrongly influence buying decisions andbrand perceptions. Page 3 of 19
  • 4. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformSolution: The ConversationLoop PlatformThe Conversation Loop is an integrated platform designed to meet these threats andopportunities. It has database technology at its foundation, and a four-step process forleveraging the vast consumer data available in the post-shift environment: LISTEN: to what customers are saying about their brands, not only in the new social media, but across a wide spectrum of consumer behavior as shown on p. 10. LEARN: how customers are behaving by collecting data from multiple sources ANALYZE: this data to group consumers into the most profitable segments ENGAGE: these highly profitable customers with more relevant messages Throughout this process, the platform will inform and influence all business operations of the company, not just the marketing department. PR, Finance, R&D, Distribution, etc. will all have a vital role to play in how The Conversation Loop actively engages the consumer with the brand.The First Step to Taking the ConversationLoop ApproachWe’re confident every brand can increase its profitability via the deployment of TheConversation Loop Platform. To receive an appraisal of the value of a ConversationLoop Platform to your organization, we encourage you to take a simple first step:participate in a 4Sight Marketing Audit. You will find details regarding the 4SightMarketing Audit on p.14. Page 4 of 19
  • 5. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformTable of Contents:6 A Massive Communications Shift in the U.S.6 Four Main Factors Behind the Shift Desensitization Distrust Technology Ownership8 The Impact of the Shift in Snapshots:9 The Implication for Marketers10 Summary11 The Conversation Loop Marketing Platform Learn Listen Analyze Engage12 Technical Requirement for The Conversation Loop13 A Case Study: Sony PlayStation16 The 4Sight Marketing Audit17 About Direct Partners and Hakuhodo18 Appendix Page 5 of 19
  • 6. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformA Massive Communications Shiftin the U.S.For years, advertising agencies have been telling clients, "consumers are paying lessattention to advertising these days." Typically, the agency then recommends eitherincreasing the media budget or developing new "breakthrough" creative (both at theexpense of the client). Neither of these approaches seems to be working anymore.Historically, communication channels like TV, radio, print and even banner ads havebeen controlled and regulated by ad agencies, media companies and marketers usingthe “push” approach to messaging. Although campaign results were difficult tomeasure, it was assumed that they worked through a combination of awareness,repetition and persuasion. As channels expanded and marketers struggled to holdconsumers’ attention, ads became even more prominent, more persuasive (or “pushy”)and, thus, more alienating to consumers.At the same time, consumers began to shift their attention to emerging social mediachannels, where they could create and consume their own content. In this newenvironment, brands take on a life of their own, making consumers co-proprietors ofyour brand image. The upshot? Big ad budgets and "creative" campaigns areincreasingly ineffective, while a whole new opportunity has emerged for brands torelate to consumers more profitably than ever before.Four Main Factors Behind the ShiftDesensitization Due to advertising/information overloadDistrust Of corporate/advertising messagesTechnology Making it easier to access information and share opinionsOwnership Consumers who self-identify with brands expect more value and honesty from themDesensitization. In the last decade, marketing effectiveness has declined for almostall traditional media year over year. Experts say this change is due to consumerdesensitization caused by too many marketing messages. The New York Timesrecently reported that the average American sees around 5,000 ads a day.2 65% ofAmericans feel continuously bombarded with ads.3 The Internet is not immune to the2 http://www.nytimes.com/2007/02/11/magazine/11wwlnlede.t.html3 Wegert, Tessa (2004), "When Consumers Love Advertising," ClickZ Networks, (April)  Page 6 of 19
  • 7. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing Platformproblem. A phenomenon called “banner blindness” has lead to a constant decrease inclick-through rates for online advertising.4Distrust of Advertising. Consumers are not just ignoring corporate messages andadvertising; they are questioning their truthfulness and relevance. Tired of meaningless,unsolicited advertising, they have turned to each other for reliable product information.As the Edleman Trust Report shows, Americans see “a person like yourself or a peer”as the only trustworthy information source. This has now replaced “government,”“businesses,” “news anchors” and even, just recently, “doctors,” all of which were thetop sources of information in the past.5Technology. These behavioral changes are significant on their own. But they havebeen accelerated by new social technologies and platforms that, for the first time, giveconsumers the ability to create their own conversations about brands outside thetraditional framework of advertising. These conversations are much more powerfulthan the old "word of mouth" effect, because one word can now be heard by millions.Internet usage has reached a critical mass. A third of the world is now connected, anda large portion of these users has high-speed connections. In addition, consumers arenow connecting, recording and making purchases through smart mobile devices atrapidly increasing rate. This connectivity has seen its greatest increase through therapid growth in consumer participation on social platforms.6Ownership. With this new technology at their disposal, consumers are taking apersonal and active role in determining what their favorite brands stand for, and howmuch value they deliver.7 “Brand Positioning” (as defined by the marketer) is beingreplaced with the notion of “Brand Purpose,” a shared definition of the brand that mustbe earned by the company and accepted by the consumer in the social space.4 http://www.forrester.com/rb/Research/five_ways_to_improve_roi_of_behavioral/q/id/53643/t/25 http://www.edelman.com/image/insights/content/FullSupplement.pdf6 http://www.forrester.com/groundswell/book.html7 http://www.forrester.com/empowered/empowerednotes.html Page 7 of 19
  • 8. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformThe Impact of the Shift in Snapshots:For better or worse, social networks have become a dominating force in the U.S.commerce. As demonstrated in the following snapshots, this influence can sometimeshave a significant and measurable impact on a company’s financial state. (+) BlendTec. A small start-up kitchen appliance company called BlendTec launched a campaign on free social media called “Will it Blend”? Over the next year, it garnered over 110 million impressions (far exceeding the highest rated TV placements like the Super Bowl). Sales increased by 600%.8 (+) Pepsi’s Mountain Dew. As early as 2008, Mountain Dew utilized “collective intelligence” through their program, Dewmocracy, which was launched through social platforms. This program allowed Mountain Dew fans to vote on a new flavor of Mountain Dew soda. Within 10 weeks 1 million people participated in the vote. Mountain Dew saw a 3.7% increase in sales while all other competitors posted quarterly losses. Mountain Dew gained almost 1% market share instantly.9 (+) Walmart. Walmart launched a "Money Saving Tips" social media campaign as part of their renewed focus on “building connections” to increase their business. Within months, Walmart mobilized most of the key figures within the influential “mommy-blog” sphere who together reach an audience of almost 10 million.10 (-) United Airlines. United Airlines customer Jim Carroll uploaded a music video on YouTube with a song criticizing the way United mistreated his bags. Three days later, his video had over one million hits. As of July 2010, it had almost 9 million views. Within 4 days of the video being posted, United Airline’s share price fell 10%, costing stockholders around $180 million.11The Implication for MarketersThese social networks now dominate the attention of the average American, and makeup the majority of their media consumption. Audiences on YouTube are much larger8 http://www.socialens.com/wp-content/uploads/2009/04/20090127_case_blendtec11.pdf9 http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=10248810 http://www.slideshare.net/GasPedal/blogwell-social-media-case-study-walmart-presented-by-suraya-bliss-and-john-andrews-11 http://www.forrester.com/empowered/empowerednotes.html Page 8 of 19
  • 9. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing Platformthan most primetime TV audiences. More importantly, the content on these channelsregarding products, brands and consumer experiences is timely, relevant and from atrusted source: other consumers. This development has weakened the effectiveness ofcorporate messaging by giving individual consumers more ways to communicate thanthe brands they consume.In the past, consumers would verbally share a positive brand experience only to animmediate circle of friends and family. At most they would write an angry letter to theCustomer Service Department. Except in the case of opinion leaders and mediafigures, “word-of-mouth” damage to a brand was limited to a small circle of friends.12Today, consumers can reach thousands of “virtual friends” in seconds.A single voice can overpower an entire campaign, cost a company millions of dollars,or even threaten the entire brand.13 Some examples of this are mentioned above. Theconsumer voice now rivals the company’s voice in both influence and reach.Brands are now subject of intense and shared scrutiny by consumers, who have thepower to recommend them to friends, but also publicize their shortcomings and evenredefine their value in the marketplace. In this way, what was once considered just amarketing issue now concerns every aspect of the company. What was oncecorrected through a national TV campaign, in some cases can only be correctedthrough business operations such as product development or distribution practices.That said, as is also apparent from the examples above, by simply taking a newapproach to relating to consumers, companies can achieve controlled growth that wasnot possible before. Moreover, instead of resorting to the guessing-game that isnational brand marketing, marketers can now engage in instantaneous, individualcommunications where the value and effectiveness is instantly apparent. This createsactual, authentic brand growth beyond that of mere “persuasion.” It forms a deeperconsumer-brand connection and creates a more lasting competitive advantage.12 http://www.colloquy.com/files/2009-COLLOQUY-Talk-Talk-White-Paper.pdf13 http://forrester.typepad.com/groundswell/2011/06/welcome-to-the-age-of-the-customer-invest-accordingly.html Page 9 of 19
  • 10. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformSummary Before the Shift After the Shift Company Dictates Brand Perception Consumer Creates Brand Perception Linear, Top-Down Media Channels Circular, Continuous Media Channels • Set Media Schedule • “Rolling” Media Schedule • Campaign-Based • Conversation-Based One Media Plan for All Consumers One Media Plan for EACH Consumer Immediate Revenue Growth Long-Term, Sustainable Growth Sales Marketing Department Concerned with Marketing, R&D, Customer Service, Consumer Perception Finance and C-Level…etc. – All Concerned with Customer PerceptionCustomers are now co-owners of every brand, which reduces the effectiveness oftraditional (impersonal) advertising but also creates an opportunity for brands toconnect with consumers more than they ever could before.In this new era of consumer-empowerment, marketers must find an effective way tolisten, learn, analyze and engage with their customers. Page 10 of 19
  • 11. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformThe Solution: The ConversationLoop PlatformThe Conversation Loop is an integrated marketing approach powered by a robusttechnology platform we have developed called M5. By using a combination of brandinsights, database analytics and targeted promotions, the Conversation Loop and M5enable the clients of Direct Partners to run a holistic marketing process based on foursteps: LISTEN: to what customers are saying and how they are interacting with the brand. This segment of the Loop is accomplished by tapping into the numerous customer data streams that can be found on: • Branded sites and forums • Social networks • Mobile platforms • Public forums LEARN: by collecting and storing every traceable brand interaction in a real-time database infrastructure. By organizing this data onto a single data platform, we obtain a single, 360-degree snapshot of our clients customers.ANALYZE: this data using advanced statistical and analytical models to groupconsumers into segments. Through our M5 proprietary consumer database we cansort consumers by their preferences, likes, dislikes and behavior in an automatedfashion.ENGAGE: customers with the brand in real time (like a face-to-face conversation) andin a way that is the most relevant to them and the most profitable for marketers. Thisallows the brand to evolve in real time, becoming more effective and influential than itscompetitors. Page 11 of 19
  • 12. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformM5: The Technical Requirements for TheConversation LoopThe Conversation Loop requires strategy,planning and a robust platform design toengage each customer appropriately. OurM5 database takes account of thefollowing technology requirements, whichwe customize for each of our clients:• Increased data feeds into the Marketing Database, as many as possible in real-time• Integration of the data back to the sources from where it came, to maintain 360-degree relevance• Real-time algorithms to weight the value of the customer interactions taking place• Real-time segmentation based on customer scores• Automated emails triggered by consumers’ interactions, preferences and scores• A content server allowing standard communications to be delivered with customized content blocks based on segmentation, interactions, preferences and scores• A reporting engine to aggregate the data• A data dashboard allowing clients to make program improvements on the fly Page 12 of 19
  • 13. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformA Case Study:Sony PlayStationTo demonstrate how this platform works for an actual client of Direct Partners,we would like to share a case study for a Fortune 500 company in the video gameindustry: Sony Consumer Entertainment of America (SCEA).Listen: Beginning in 2006 with the launch of the PlayStation 3 and the PlayStationNetwork, Direct Partners worked with internal stakeholders at SCEA, SCEE (SonyComputer Entertainment Europe) and multiple related third parties to build acomprehensive network of data feeds tracking consumer behavior at nearly everybrand touch point: within the game, on the console dashboard, at retail, on the web,via email, in social media, in ecommerce, via mobile devices, etc. The available datawas both broad and deep; we were able to gain insight into where consumerspreferred to interact, and uncover a wealth of information about the specifics of eachinteraction.Learn: Such a vast array of information can become overwhelming without a robustsystem in place to separate the actionable information from "noise." With over a halfdozen daily feeds of consumer activity arriving in real time, comprising hundreds ofthousands of unique data points, simple items like identifying a consumer can becomea chore. For example, is a consumer the same thing as a console? No, since oneconsole may be shared among multiple consumers. Is a consumer the same thing as aPlayStation Network Online ID? No, since one consumer can (and frequently does)have multiple PSN IDs.M5 is the name of Direct Partners’ proprietary data engine that collects all thedisparate data feeds, performs hygiene on the data, unifies the information around aconsumer profile, and sorts and stores that consumers behavioral, promotional andresponse history. The M5 engine powers everything from higher analytics to SCEA’squick view dashboards to triggered communications for ongoing CRM efforts and listselections for ad hoc contacts. Page 13 of 19
  • 14. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing Platform Analyze: Once consumer data has been imported and organized within the M5 data hierarchy, the next phase involves segmenting consumers into pre-defined categories based on their observed behavior. PlayStation 3 consumers fall into a variety of categories, from low involvement consumers who purchased the device as an inexpensive connected Blu- ray player to hard core competitors who collect virtual trophies in as many games as possible and are highly active in the PlayStation Store. We apply standard CRM models like RFM Scoring (Recency, Frequency and Monetary contribution) to group our consumers in tiers of value. Then we use propensity and surrogate set modeling to identify prospects across tiers for specific campaigns. To gauge the effectiveness of our targeting, we employ a holdout methodology on each campaign, as well as a global holdout. Consumers in the holdout look identical to consumers in the marketed audience in terms of all available data points. They live in the same metropolitan areas, they came on file at the same random points throughout the year, they are statistically identical in terms of age and gender, etc. These consumers form the basis for comparison to understand the impact of specific CRM initiatives. Engage: Currently, CRM at SCEA involves a variety of communications that fall into three major categories. The first group, which is consumer lifecycle-driven, are contacts that occur when a consumer takes (or fails to take) a specific action. Everything from joining the PSN to failing to visit the store to becoming inactive can lead to a "communication nudge" to adjust the consumers future behavior. The second category of contact is business-driven. Calendared events like the launch of a new software title, or a new piece of hardware, will result in a manual select of the ideal consumers for that product in conjunction with a multi- step contact strategy. In the case of software, for example, contact runs from pre-sales through “accolades,” a post launch communication that goes to people who have yet to play the title, informing them of the awards and critical acclaim the title has received. The third and final contact type is ad-hoc. From surveys to events and promotions to major announcements, there is a constant stream of consumer communication to keep the base Page 14 of 19
  • 15. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing Platformengaged and interacting with PlayStation. Ad hoc selects can be regional (“make sureyou visit the PlayStation booth at the San Diego Comic-Con”) or consumer behaviordriven (target all active Store purchasers for the Spring PSN Store Sale) or driven byany number of other criteria. The M5 system has to be enormously flexible to handleselects driven by a very wide variety of consumer actions. Page 15 of 19
  • 16. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformYour First Step Toward an EvolvedMarketing Approach?The 4Sight Marketing AuditTo be effective, the Conversation Loop strategic and technological platform must becustomized to the unique conversation patterns and behaviors of each brand’scustomers. And although each aspect of the Conversation Loop process continues tooptimize over time as more data is captured, we must begin with the correct strategicfoundation, as well as an appropriate technology design and initial communicationsarchitecture. Therefore, the first step in constructing the Conversation Loop for anybrand is Direct Partners and Hakuhodo’s 4Sight Marketing Audit. The audit requiresthe aggregation of historical materials and research to be reviewed by the audit teamfollowed by 1-2 days of interviews with key stakeholders. These interviews focus onthe four key areas most closely connected to a brand’s relationship to its consumers,with the results of these interview forming the sections of the final 4Sight MarketingAudit report. BUSINESS AUDIT: The Conversation Loop provides precise measurement of customer value; therefore, we seek to discover in this phase the underlying business metrics of the brand and how these relate to the customer. CUSTOMER AUDIT: Over time, the Conversation Loop platform delivers unequalled customer insight at the individual level. At the inception of the process, however, it is necessary for the platform design team to understand how the brand sees the target as well as to review all prior research the brand has conducted to understand its customers and prospects. COMMUNICATIONS AUDIT: If customer information is the input to the Conversation Loop platform, customized communication is the output; consequently, we must begin with a clear knowledge of how the brand has been communicating historically. In this phase, the team reviews brand strategy documentation and the complete array of current and recent customer communication. DATABASE AUDIT: Data is at the center of the Conversation Loop platform. In this phase the team seeks to discovers what sources of data already exists and what potential sources of data can be tapped to fuel the platform.The audit is performed by our C4S Audit Team: a group of conversation marketingexperts from both Hakuhodo and Direct Partners. Page 16 of 19
  • 17. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformLearn MoreTo learn more about the audit process, schedule an audit for your brand or if you havefurther questions regarding this whitepaper or of the Conversation Loop process,please contact In Japan: In the United States: Tasuku Yamanokuchi Jerry McRuer tasuku.yamanokuchi@hakuhodo.co.jp JMcRuer@directpartners.com +81-3-6441-7793 +1 310-482-4403Established in 1994, Direct Partners is a leading CRM communications company in theU.S., serving multiple global companies from offices in Los Angeles and SanFrancisco. Their proprietary M5 database system is the foundation for customizingunique, effective platforms for clients in retail, packaged goods, and entertainment andconsumer electronics. ROI-focused since its inception, Direct Partners helps clientsfocus their marketing communication budgets on areas and activities that will lead tothe greatest growth and profitability.Founded in 1895, Hakuhodo Inc. is the second largest advertising company in Japan,and the leading agency in the worlds eighth largest agency group.  Since itsincubation, innovation and creativity have been at the heart of itsoperations.  Hakuhodo shares with its clients an unmatched depth of knowledgeabout the relationship between people and brands, knowledge that has grown fromthe concept of sei-katsu-sha (= living people with lifestyles, aspirations and dreams),which Hakuhodo pioneered in advertising.  Through its global network, Hakuhodoprovides comprehensive marketing and communications services and solutions forsome of the best-known brands in the world.  Hakuhodo has 59 offices in 17countries/ regions, and 3,107 employees (as of April 1, 2011).Hakuhodo and Direct Partners have partnered together since 2009 in an effort todevelop an advanced approach to real-time CRM on a global scale. The ConversationLoop was created as a part of this initiative.Writers: Tasuku Yamanokuchi, Jerry McRuer, Tyler Gaul, Jonathan Rouse Page 17 of 19
  • 18. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformAppendixSocial Media StatisticsFacebook, YouTube and Twitter have helped to centralize consumer conversations in asingle space. Participation on these platforms has reached high levels: Platform Audience Key Communication Indicator Facebook 550 million users 7 billion minutes per month YouTube 3 billion views per day 35 hours of video uploaded per min Twitter 100 million users 55 million Tweets per day Yelp 41 million visitors/month 15 million reviews Amazon 65 million customers/month $34 billion annual sales in 2010 Page 18 of 19
  • 19. Hakuhodo | Direct Partners The Conversation Loop: a New Marketing PlatformAsian Social Network LandscapeJapan, India and South Korean have experienced over 4,000% growth rates of Twitterusers. The Philippines, Indonesia, and Thailand have seen comparable growth amongFacebook users. As the popularity of social sharing websites like YouTube continues toincrease, Asian consumers will achieve the same communicative power as Americanconsumers, if not more. While it is unknown when this shift will occur, it is almostcertain that it will and to a much greater extent than in the U.S. PENETRATION (SOC. % OF MARKET SIZE NETWORK USERS/ SOCIAL #1 SOCIAL SOCIAL Internet 14 COUNTRY (GDP IN FACEBOOK TOTAL TECH. NETWORK GROWTH USERS IN MM USD) WEB USERS) ASIA Rapid, 40% of users create especially on original content; 221 Facebook. million blogs, 117 3.7MM They use it million BBS and 176 China $5,745,133 (Hong Kong High Qzone as a way to 50.9 Medium million social network only) get around users (Internet censorship users are 31.6% of by the population) government 75% (Internet Japan $5,390,897 users are 78.2% of 5.3MM High Mixi Rapid 12 High population) 68.5% (Internet Facebook, India $1,430,020 users are 6.9% of 18.8MM High Omnipresent 9.8 High Orkut population) Facebook 88.6% (Internet usage Indonesia $695,059 users are 12.3% of 34MM High Facebook increased 3.6 Medium population) 3500% in 2 years Rapid - not 63.5% (Internet so much in South Korea $986,256 users are 81.1% of 3.4MM High Cyworld 4.8 Medium North Korea, population) though (Internet users are Thailand $312,605 7.3MM High Facebook Rapid 2.1 High 26.3% of population) 83.7% (Internet Singapore $217,377 users are 77.8% of 2.3MM High Facebook Rapid 0.4 High population) 5th largest country Facebook on Facebook, 90% of usage entire web population Phillipines $189,061 20.8MM High Facebook increased 3.6 High use Social networks 4700% in 2 (Internet users are years 29.7% of population) 84.7% (Internet Malaysia $218,950 users are 65% of 9.8MM High Facebook Rapid 2 Medium population)14 All statistics in this section unless otherwise noted: Online Media in Japan Today, Nielson. August 2010, Issue #1. Page 19 of 19