Pirates of social media industry


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Pirates of social media industry

  1. 1. ‘Pirates’ ofsocial media industry26 Feb 2013 © Salorix  All Rights Reserved  Confidential
  2. 2. 2Outline The facts about social media around the world Inside the real economy behind social medias fake fan industry The Twitter Underground Economy: A Blooming Business BBC story questioning the value of "likes" on Facebook pages
  3. 3. The facts about social media around the world
  4. 4. 42012 was a year of social media shake-ups, new social platforms, and a tighter integration of socialmedia into exciting business processes, Here is a synapses of how each social network performed.Facebook (In million) Despite an increase in total registered users, $5,000 Facebook’s monthly visitors count is down 4%, with Growth: C- 1500 recent changes to distribution and targeting options, Users: A+ Facebook continues to evolve and keep brands on 1000 their toes.Twitter With a steady increase in visitors, twitter remains the $350 go-to social channels for marketers looking to Growth: B- 37 monitor conversations, learn about customers, Users: A- distribute content, and build relationship 560Linkedin With consistent traffic and a strong business focus , $938 LinkedIn remains a major social workhorse of Growth: C 28 marketing and sales teams everywhere. After a Users: B- needed face lift and added for business. 200Google+ Still on the outskirts of the social media fray, Google+ spent the majority of 2012 quietly adding features, Growth: B+ 26 building a user base, and integrating with Google’s Users: B- search engine to set itself up as a major player in 500 2013Pinterest Pinterest exploded onto the social scene in 2012 with over 1000% growth in monthly visitors. With a Growth: A+ 27.2 focus on visual content and a massive mobile Users: B- audience. 13 Source: Nielsen, Techcrunch & eMarketer’s
  5. 5. 5Emerging markets Brazil, Argentina and India show the highest rates for Awareness, Penetrationand Average number of social network membership120% 4100% # of social networks 3 80% 60% 2 40% 1 20% 0% 0 Aware of at least one social network member of at least one network Average number of social networks one os member of Aware and current member Membership Aware and once a member Awareness Aware, but not a member Not aware 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%• More than 7 out of 10 internet users are member of at least 1 social network. This implies that more than 1.5B people use social network sites.• The world is not waiting for the next social network. In fact, most people want to keep their digital life as it is. No need for something new and no intention to quit. On average, people only join 1 or 2 social networks. The Twitter & Google+ paradoxes are living evidence for this conclusion: both sites are very well known, but their adoption is still rather low.• But, Consumers are willing to join ‘unique’ new social networks like Pinterest. For example“10 pictures per second tagged with “sandy” flowing hrough the Pinterest. In total, more than 230,000 images are using that hash tag — but there could be more related to the storm”
  6. 6. 50% of social network users follow at least 1 brand online. On average, people follow 8-12 brands in a passive way and 6 about 3-6 in an active way. China has the largest share of brand followers in social media, whereas in the US, the highest number of brands are followed on average. 70% % of Brand followers in social media 60% 50% 40% 66% 30% 56% 61% 56% 52% 53% 50% 47% 48% 20% 10% 0% 16 Following, actively following & interacting with brands 14# of Brands 12 10 8 6 4 2 0 # brands following # brands actively following (reading/sharing majority of content) # brands interacting with (entering into dialogue)
  7. 7. Food/retail, fashion/luxury and media/entertainment are the most-followed sectors in Europe. In China, 7fashion/luxury and cars are most popular. Also Number 1 driver for following a brand online is actual usage of thebrand. Sectors for brand following Drivers to become a brand follower Food and retail 49% After using the brand 49% Friend recommend 33%Media / entertainment 47% Search engines 32%Fashion / luxury goods 45% Online advertisement in 31% social media Sports 32% buy the brand in the future 30% Travel 32% invitation from Contact list 26% Cars 30% Other online advertisement 25% Good causes / charity 26% invitation from Brand / 24% Company Industry 18% Traditional media 21% Others 11% Other 6% 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% Source: InSites Consulting
  8. 8. 8Interactive marketing spend will near $77 billion by 2016, i.e.. brands will spend 7% of ad budgetin Social networks. But there are some limitation/dependency in Social media advertising Interactive marketing spend forecasts Search marketing Display marketing Mobile marketing Email marketing Social media 2011 2012 2013 2014 2015 2016 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 (In Billion) Social media marketing spend forecasts Integrated campaigns on social networks Social media management technology Agency fees for scoial media $6,000 (In Million) $5,000 $1,742 $4,000 $1,469 $1,109 $3,000 $1,234 $926 $1,016 $2,000 $903 $744 $565 $2,863 $634 $447 $2,322 $1,000 $271 $1,815 $1,086 $1,364 $683 $- 2011 2012 2013 2014 2015 2016 Source: Forrester
  9. 9. Inside the real economy behind social medias fake fan industry
  10. 10. 10 Social medias fake fan industry “Gartner Says By 2014, 10 to 15 Percent of Social Media Reviews to Be Fake, Paid for By Companies” 8.7% 2.4%  Based on US regulatory filing Facebook wants to disable 8.7% of its 955 million (dated Aug 2012) monthly active users worldwide are actually duplicate or false accounts.  Facebook further estimates that about 2.4% (about 23 million) personal accounts are “misclassified” — users who have set up a personal profile for a business, video game avatar, or something like a family pet. (Mark Zuckerberg’s dog, Beast, is an example of a Page associated with a personal account) Duplicate or False accounts Misclassified accounts Actual Facebook usersSocial profile sellers: Source: • Gartner report "The Consequences of Fake Fans, Likes and Reviews on Social Networks“ • http://www.sec.gov/Archives/edgar/data/1326801/000119312512325997/d371464d10q.htm#tx371464_14
  11. 11. 11Fake fan industry - Experiment It’s a Point system. you submit the social media accounts you want to promote and earn points for endorsing other peoples pages. You can offer, say, 5 points to anyone who follows you on Twitter or 10 points if they add you to a G+ Circle. If that sounds like too much work, you can purchase points for .3 to .6 cents apiece and then use those to attract fans. like Amazon; we can buy a certain number of endorsements and wait for them to show up on your virtual doorstep. FanMeNow, will sell you 500 "real worldwide Facebook fans" for $500 or deliver 5,000 YouTube views for $25. An independent contractor who can add/generate social followers , like. ~20K views to an Youtube video virtually overnight.
  12. 12. The Twitter Underground Economy: A Blooming Business
  13. 13. 13 Mitt Romney’s Fake FollowersBarracudalabs says, The number of Romney’s followers # of Mitt Romney’s Twitter followers increased 17% (or 116,922) on a single day Jul 21, 2012, going from 673,002 to 789,924 25% of these followers are less than 3 weeks old (created after July 17th2012), 80% of them are less than 3 months old 23% or about 1/4 of these followers have no tweet 10% of these account has already been suspended by Twitter Distribution of creation time of Mitt Romney’s Twitter followers Source: barracudalabs
  14. 14. 14 Barracudalabs study on Fake followerDealers - Those users who create fake accounts and sell fake profile/followers/re-tweets  The average price of buying 1000 followers is $18  A Dealer can control as many as ~150,000 or more Twitter followers  A Dealer can earn as much as $800/day for 7 weeks of selling followings if they can control 20,000 fake accounts (estimated on several random fake accounts reaching 2000 followings in 7 weeks and assume each following involved a minimum $20 purchase)  In addition to selling followings from these fake accounts, there are numerous opportunities for expansion into other services: selling tweets/re-tweets to earn additional profitsAbusers - Those users who bought followers (most of which are fake) in order to look more popular or to use theaccounts for selling ads  There were 11,283 Abusers identified (each has at least 470 fake followers)  The average Abuser has 48,885 followers  53% of Abusers have 4,000-26,000 followers  75% of abusers have set a URL in their profiles (compared to 31% for random Twitter users)Fake Accounts - Those are created by dealers for selling followings or tweets business  There were 72,212 unique fake accounts identified  61% of these fake accounts are less than 3 months old  Average age of these fake accounts is 19 weeks or about 5 months  55% of fake accounts have ~2000 followings  The average number of following for a fake account is 1,799  The oldest fake account @krails is created on Jan 15th, 2007 Note: Barracudalabs study, beginning in May 2012, on 90,000 purchased Twitter followers from eBay and another website searched from Google Source: barracudalabs
  15. 15. 15 Who’s faking it? - Top profiles & Fake followers Good followers Inactive followers Fake followers 19% 28% 26% 33% 35% 34% 34% 29% 41% 39% 34% 37% 39% 38% 39% 41% 38% 44% 38% 39% 47% 28% 28% 35% 35% 33% 24% 21% 22% 22% @ladygaga @justinbieber @katyperry @BarackObama @britneyspears @YouTube @twitter @cnnbrk @facebook @espn# of twitter 32,072,739 31,408,120 30,006,608 24,450,328 22,466,002 20,699,287 15,111,494 96,21,787 6,080,824 5,641,094followers @kashifrox 431,222 @TeamGoOnline 104,850 @illalskratch 103,053 @yuvongoess 86,126 @PartyHop 32,423 @movie_tshirt 28,467 @JELLYWAX 25,290 @KidsFacts_FR 20,107 @GirlsFactsFR 18,609 @GalaxyClothing 16,777 @ipungski 12,553 @moon555 11,018 @globeflashInter 10,166 @leemaaarston 6,019 @BEATSHuntCom 5,158 @freedrull 5,022 Source: statuspeople
  16. 16. BBC story questioning the value of "likes" on Facebook pages
  17. 17. The BBC reported the results of its investigation of the effectiveness of advertising on Facebook, and while it 17did illustrate some valid concerns, such as fake profiles, the questionable tactics used in its made-upadvertising campaign overrode several of its other findings. Campaign Reports/Findings Questions  The BBC’s Technology Correspondent,  Within 24 hours, VirtualBagel had  Who are these people in some countries Rory Cellan-Jones set up a Facebook acquired over 1,600 likes, despite the who are clicking in an apparently random page for his small business to test how fact that the page offered no products way on thousands of Facebook adverts people would interact with his and no interesting content. After four and earning the network a small fee each ‘meaningless brand’. Called “VirtualBagel days, it was "liked" by nearly 3,000 time? Ltd” people  Is Facebook worried that there seem to  With very basic information: "We send  Nearly all of the "likers" came from India, be a number of fake profiles in certain you bagels via the internet - just Egypt, Indonesia and the Philippines. but countries generating fake "likes" and so download and enjoy.“ just about nobody in the US or the UK devaluing the worth of its advertising system?  The ads targeted widely at users across  As per Facebook insights report the page the US, UK and a number of Middle was most popular in Cairo, with 75% of  Is the network being as active as it Eastern and Asian countries "likes" coming from 13 to 17-year-olds. should be in addressing a problem which is generating lots of revenue for its  And also under 45-year-olds interested in  click-through rate - was 0.55%. That had bottom line? cookery and consumer electronics, (as generated nearly 3,000 "likes“ over four per Facebook potential audience of 112 days. million customers)  One user, who called himself Ahmed Ronaldo, listed Real Madrid as his employer, and  The campaign ran for $10 (about £6.50) featured the footballer Cristiano Ronaldo as his profile picture. Also he likes more than budget per day 3,000 other pages. Source: BBC
  18. 18. Thank You © Salorix  All Rights Reserved  Confidential