Presenting the business case for Social media adoption based on 2012 research inputs. This presentation will be updated as and when new research inputs are available from the sources cited within the slide pack. Last edited on: 15th October 2012.

1. Social Media Practice
Overview & Business Case

2. Agenda
Social Media Today:
A really quick view of today’s social media landscape and the questions it create for brands
Case for Social media:
A study of core social media elements and what those elements mean for brands
Company Overview:
A quick introduction to GROUP FMG
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3. Social Media Today
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4. Too much going on in social media today
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5. Too much going on in social media today
Countless tool clutters and features
More ‘how-to’ achieve this in ‘5 steps’ whitepapers
Big numbers and colorful charts
Bigger questions
?
ROI
Why?
What
?
Where are we now
Where from here ?
Competition
Industry
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6. Case for Social Media
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7. Key Social Media Components (for brands)
People Process Technology
Users connected with • Publish Social Platform
other users / groups / • Read (website, Interactive
organizations • Respond mechanisms etc.,)
Human Elements Social Contents
Determines Brand reputation in Social Media
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8. Human Elements: Relevancy to Brands
Definable relationships with brands
Industry
Leaders
People discussing brands in social
Employees Competitors media are relevant to the brand, in
one way or the other
Suppliers /
Brand Detractors
Vendors
Fans /
Credibility of opinions
Customers
Followers
Their opinions gain credibility because:
Prospects • They are relevant to the brand
• They are relevant to their connections
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9. Brand contents in Social Media include
Some of Part of Most of
Paid Media Owned Media Earned Media
Brand & Product Social Profiles &
Internet Advertising
Websites Feeds
PPC – Search
Mobile Applications Word of Mouth
Marketing
Mobile Advertising Digital Contents User Forums
News, PR
Sponsorships Blogs
Announcements
Blogger
Paid Advertising Official Forums
Relationships
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10. Social Contents of Brands are produced by
Social Media Users
1. User discussions on brand within their connections Mention
2. Brand-pushed information to their fans / followers Broadcast
3. User interactions with brands via official social media profiles Engage
The 1st and 3rd type of contents are Earned media -
Brands
form word of mouth opinions in social media
 Reflects balanced customer perception & experiences
 Readily available content through Internet search
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11. Why Social contents of brands matter?
Carries 30% weightage in customer decision journey to purchase a product – higher than
conventional, company-driven marketing and dealer interactions
12%
26% 27% Store / agent / dealer interactions
21% 42%
Social media: epicentre of consumer
Consumer-driven marketing driven marketing
30%
• Word-of-mouth
28% 37% • Online research Crucial during the evaluation phase
• Offline and / or print reviews as consumers seek
31% information, reviews, and
14% Past experience recommendations
10%
5% Company-driven marketing
39% • Traditional advertising
29%
26%
22% • Direct marketing
• Salesperson contact etc.
Initial Consideration Evaluation Closure Across the stages
Stages of Customer decision journey
11 Source: McKinsey groupfmg.com

12. Social contents open up customer wallets
Consumer trust in ‘Earned’ media grows in importance - 92% of consumers around the world trust
word-of-mouth or recommendations from friends and family, above all other forms of advertising
Trust Completely / Don’t Trust Much
Somewhat / Not at All
Brand contents in social media Recommendations from people I know 92% 8%
are the essence of top 2 consumer
trusted form of brand message Consumer opinions posted online 70% 30%
Branded websites 58% 42%
Ads on TV 47% 53%
Trust in traditional paid advertising
messages (in Ads in magazines 47% 53%
TV, Magazines, newspapers etc.)
declines since 2007 Billboards and other outdoor advertising 47% 53%
Ads in newspapers 46% 54%
 Social contents are tied to the brand sales Ads on radio 42% 58%
12 Source: Nielsen’s Global Trust in Advertising Survey – April 2012 | 28,000 respondents across 56 countries groupfmg.com

13. And not just Sales…
Social media contents backed by strategies affect the entire value chain – corporates make use
of social media across departments and report improvements
Value chain step Case example Impact
Product development Procter & Gamble R & D costs: -6% p.a.
Marketing Old Spice Sales: +16%
Campaign costs: - 80%
Sales Ricardo.ch, Sellaround.net Transactions: +18,000 p.m.
Service Example from telecommunications Resolved customer queries: +30%
industry
External communication McDonald’s Stock price: +5%
Human resources Allianz, Bertelsmann, Henkel, Reach: +20%
McKinsey & Company Cost: -27%
Quality: +36%
Internal applications Mountain Equipment Co-op Efficiency gains: >90%
13 Source: McKinsey, Press release, Corporate websites groupfmg.com

14. ROI by Media Type
Digital media and public relations activities show stronger performance compared to price
discounting, TV and other media
Internet
For every dollar spent, internet channels $ 1.29
Trade
Other Digital $ 1.27
yield $1.29 in return, almost twice that for TV $ 1.48
Newspaper
$ 1.07
Media ROI
With online time increasingly spent in social Magazine
$ 0.99
Cinema
networks and with higher ROI, $ 0.22
brands increasingly adopt various social media tools
Television Sampling
$ 0.97
and technologies $ 0.66
Radio Billboards
$ 0.71 $ 0.81
14 Source: McKinsey Quarterly groupfmg.com

15. Rising Social media adoption rates (brands)
Various social channels used by companies
Steady increase in social media adoption rates
since 2008
23%
19%
12%
0% Micro-Blogs Corresponds with more organizations reporting
38%
improvements carved from Social media
31% 33%
27%
Video sharing
38%
41% • 41% of the 4,261 companies interviewed by
32%
29% McKinsey operate blogs;
Blogs • Emphasizes the growing importance of descriptive
and positive brand ‘content’ in the web
50%
40%
• 50% of the respondents in the same survey have
28%
23% presence in social networks;
Social Networks • ‘Connections’ are most sought after elements
(hence, quicker and wider reach of brand message)
2008 2009 2010 2011
15 Source: McKinsey Quarterly groupfmg.com

16. Across every major vertical
Companies having presence in at least one
social website
60+ % of adoption rate across all major verticals
Hi tech, telecommunications 86%
Energy sector was not considered to have business
Business, legal, professional
services
77%
case for social media a few years ago
Public administration 74% 62% of adoption rate for this sector in 2011
Pharmaceuticals 74%
Retailing 69%
97% of the Marketers continue to invest
Transportation 69%
increased budget in social media or at
least the same as previous year
Health care, social services 67%
Manufacturing 64%
Financial services 64% 12% higher Internet Marketing spend in
Q1 2012 than one year prior
Energy 62%
16 Source: Marketing Sherpa, McKinsey, Nielsen groupfmg.com

17. Finally, the omnipresent big numbers
Total Unique User Visits
1,500
Millions
Total Internet | CAGR: 11%
1,000 Social Media | CAGR: 19%
 User visits to Social media sites
500 grow at CAGR of 19%
0  Billion plus social media users
2007 2008 2009 2010 2011 and still growing strong
User Growth of Social Sites
1,000
 5 terabyte of new social media
Millions
data created every day
800 Facebook | CAGR: 74%
 1 in 5 minutes online is spent
600
on social media today
400
Twitter | CAGR: 231%
200
LinkedIn | CAGR: 55%
WordPress | CAGR: 90%
0
2007 2008 2009 2010 2011
17 Source: comScore, Steven White groupfmg.com

18. Social Media is NO MORE a fad
Social media is here to stay Group FMG has capabilities to:
 Monitor a million of your brand conversations
 Measure what’s being said about your brand
 Evaluate your social presence
 Learn your community inside out
 Provide actionable insights across your
business value chain
 Engage with your customers
 Build / Re-build your social presence
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19. Next Steps
Initial discovery process:
We understand every brand and its customers are unique and so are the requirements
Lets connect to understand your Business goals, objectives
and existing social footprint to uncover how social media
can contribute more to your business and customers
Initial deliverables include:
 Social profiling of the brand
 Competitive and Industrial benchmarks
 Performance of official social media profiles
 Customized social media strategy and execution plan
 Other relevant resources of value to the brand
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20. Company Overview
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21. Company Overview
2012 GROUP FMG buys Pod1
2011 GROUP FMG’s New York office is established
2011 FMG secures major PE funding to capitalize $100m, forms GROUP FMG
2009 FMG’s Ceros platform fuels first e-commerce catalogue
2008 FMG acquires video production company, Guerrilla
2007 FMG’s Asian production & development facility established
2006 FMG crowned PPA Prepress Company of The Year
2006 FMG launches the Ceros interactive marketing platform  Founded in 2011 by large private equity fund
2005 FMG crowned PPA Prepress Company of The Year
 Acquired FMG (founded in 1987), a digital asset
2004 FMG purchases catalogue design company, Vision production company in London and Pod1, a
leading ecommerce creative agency in New York
2004 FMG launches its Virtual In-House Production system
2002 FMG wins PPA award for innovation
 Focused on innovative multi-channel
1999 FMG pioneers first all-digital magazine production process
commerce, creative content and consulting
services; guiding brands through change caused
1987 FMG is established by the solomoco phenomenon
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22. Company Overview
 Globally balanced enterprise model
 Creative services, proprietary technologies, domain
expertise, process excellence and actionable analytics
offered to provide differentiated solutions
Global HQ
 Broad range of commercial structures offered to
clients – T&M, fixed price, outcome pricing, and
various captive production and outsourcing models
 Serving several channels:
Industry channels
NEW YORK • LONDON • CHENNAI
 Publishing
 Packaging & POS
 Digital
 Advertising pre-media
Serving 75+ leading global clients across North America,
 Broadcast
Europe and Asia-Pacific across industries such as
retail, publishing, technology, hospitality etc. to name a
Cross platform channels
few
 Mobile
 Social
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23. Vision
Provide tangible value to the Digital+
business of our clients through (Mobile, Social)
Publishing
high impact marketing
solutions, by
Digital
- providing consulting services Advertising
- enabling [e/m] commerce and
- producing rich media, local and
social content
Packaging
- for use across all channels, new Content Consulting & POS
and traditional.
To provide a broad range of solutions that
help marketers
Broadcast
 Imagine: disruptive awareness Commerce
 Innovate: differentiated advocacy
Gaming
 Ideate: desired acceptance
in the context of marketing solutions
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24. Marquee Clientele
Serving 75+ leading global brands
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25. Contact
New York London
119th Fifth Avenue 90-92 Pentonville Road
New York London N1 9HS
NY 10003 United Kingdom
USA
Chennai
2nd Floor, Hardy Tower
Ramanujan IT SEZ, TRIL Infopark Limited
Taramani
Chennai 600113
India
Pradeep G (pradeep.govindaraju@groupfmg.com)
Group FMG (info@groupfmg.com)
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