SOCiAL MEDIA<br />THE BUSINESS INCENTIVES & THE MARKETING POTENTIAL<br />by ANANTH VIJAYKUMAR<br />
Overview<br />Defining Social Media: big ideas and prevalent features<br />Engaging with social media: business, marketing & PR value<br />Commercial usage of major social media platforms<br />The ‘King of the Hill’: Facebook;its rivals MySpace & Bebo<br />More than just words... YouTube:sharing & consuming media<br />Power of the blogs and the blogosphere<br />“All work & no play”: professional networking on LinkedIn<br />Twitter and its meteoric rise to social media stardom<br />And much more: Wikis & ‘spread the word’ tools<br />Conclusion: Issues & challenges of social media<br />The Big Picture and final thought on social media<br />
Defining Social Media<br />Social Media are social concepts andmedia platforms combined to create a social group that encourages communal interaction, from a specific or growing base of dedicated members.<br />
Big ideas behind social media:<br /><ul><li>“[the moment of critical mass, the threshold, the boiling point]... Ideas and products and messages and behaviours spread like viruses do.” – ‘The Tipping Point’, Malcolm Gladwell (2000)
“...our experience of the web is affecting our real world institutions and behaviours, for inevitably we carry off the Web the lessons we learned from it...that’s why the web, for all its technological newness, feels so familiar to us. The web is a return to the values that have been with us from the beginning.” – ‘Small Pieces, Loosely Joined’, David Weinberger (2002)
“Of the first ten people to download Linux, five sent back bug fixes, code improvements, and new features... this improvement process became institutionalised, as thousands of programmers, working for free, contributed thousands of minor and major bug fixes... Linux is owned by no one... people work on what they are interested in and ignore the rest” - ‘The Wisdom of Crowds’, James Surowiecki (2004)</li></li></ul><li>Features of social media<br />Recurring features associated with social media:<br /><ul><li>actively seeking users to participate
Suite of powerful social tools for administering social groups as well as encouraging participation
Better familiarity, awareness & involvement of client
Increase traffic to website: frequent use of keywords on forums, blogs, certain user generated content – regularly update search engines indices</li></li></ul><li>Marketing & PR: enhancing brand & adding product/ service value<br /><ul><li>Increased brand exposure across multiple social media platforms: logo, mascot, celebrity, product/ service images
Increased sharing of multimedia to educate/ entertain/ enlighten on brand in diverse ways
Rapid announcement of events, competitions, promotions, accomplishments to group or individual
Rapid dissemination of information to manage brand reputation/ credibility & aid crisis resolution
Exploit media tools not readily available on traditional media: upload videos, audio, interviews, photos, link elsewhere</li></li></ul><li>Customer focus and adding value:<br /><ul><li>Maintain intimate contact with existing customers
Opportunity to gain new customers through groups
Gain direct insight into customer experiences; allowing them to influence the product/ service development process
Initiate conversations on topics related to the products/ services or even industry as a whole
Engage in a continual public or private dialogue with customers to provide support and advice for the product/ service
Allow users to share knowledge, information, tips, advice, guidance and experiences of the product/ service</li></ul>Increased customer satisfaction of product/ service<br />Increased loyalty and reputation for the brand<br />
Commercial usage of major social media platforms<br />
The ‘King of the Hill’: Facebook<br />General statistics:<br /><ul><li>300,000,000+ active users worldwide
Fastest growing demographic: 35+ </li></ul>[Facebook: 2009]<br /><ul><li>6th most-trafficked website in the world
2nd most-trafficked social media site in the world </li></ul>[comScore: 2009]<br /><ul><li>18,000,000+ unique users in the UK </li></ul>[Neilsen Online: 2009]<br />
Facebook: ‘reaching out to recruit’<br />- Customised categories: Students/ Experienced<br />- Q&A for users; mitigate concerns<br />- Authoritative presence yet informal ‘feel’<br />- Innovative recruiting app<br />
Facebook: ‘promoting a celebrity or a brand?’<br />- Announce & promote latest album<br />- Multimedia content: songs & video clips<br />- Backstage photos & interviews<br />- Link to website + to buy songs<br />
Facebook’s rivals: MySpace & Bebo<br />MySpace<br /><ul><li>130,000,000+ monthly active users worldwide</li></ul>[MySpace: 2009]<br /><ul><li>5.4,000,000 users in the UK</li></ul>[Neilsen Online: 2009]<br /><ul><li>World’s largest music community: renowned for showcasing/ scouting musical talent </li></ul>Bebo<br /><ul><li>4.3,000,000+ users in the UK</li></ul>[Neilsen Online: 2009]<br /><ul><li>Rapidly growing youth oriented social networking</li></li></ul><li>More than just words... YouTube:sharing & consuming media<br /><ul><li>World’s largest video community: 100,000,000+ users in US alone</li></ul>[comScore: 2009]<br /><ul><li>Broad user group: 18-55, even male & female divide
52% of users 18-34 share videos with others</li></ul>[YouTube: 2009]<br />
YouTube: Your own video ad campaign<br />- Upload videos as info & promotion<br />- Greater video perks for paid subs. <br />- Dedicated partner ad programme <br />- Lower cost compared to trad. media<br />
YouTube: Brand broadcasting + social media = your own video channel online<br />- Frequent video uploads<br />- Customised page: brand exposure<br />- Prominent link back to website<br />- Get users hooked into consuming more videos<br />
YouTube: Brand broadcasting + social media = your own video channel online<br />- Channel profile stats<br />- Recent/ favs video filtering<br />- Subscriptions to NBA prog. content on media outlets: ESPN/ TNT<br />
Power of the blogsand the blogosphere<br /><ul><li> “Public Diary” enabling expression for celebrities, industry experts, critics, journalists & companies
Very frequent updating of content: often very subjective in nature
Blogs publishers bypass converting to website; become blogsite
Major blog platforms: Google Blogger, WordPress & Moveable Type</li></ul>[Technorati.com ‘State of the Blogosphere’ survey, 2008]<br />
Blogs: profitability & brand exposure<br /><ul><li>The majority of bloggers we surveyed currently have advertising on their blogs. Among those with advertising, the mean annual investment in their blog is $1,800, but it’s paying off. The mean annual revenue is $6,000 with $75K+ in revenue for those with 100,000 or more unique visitors per month.
4 in 5 bloggers post brand or product reviews, with 37% posting them frequently. 90% of bloggers say they post about the brands, music, movies and books that they love (or hate).
Company information or gossip and everyday retail experiences are fodder for the majority of bloggers.
Companies are already reaching out to bloggers. 1/3 of bloggers have been approached to be brand advocates. </li></ul>[Technorati.com ‘State of the Blogosphere’ survey, 2008]<br />
“All work & no play”: professional networking on LinkedIn<br /><ul><li>47,000,000 members in over 200 countries and territories around the world
Almost 50% of users outside U.S.</li></ul>[LinkedIn: 2009]<br /><ul><li> Not just career profile, but also (discreetly) promote your online store, connect with industry (suppliers/ distributors etc.), discuss B2B topics, create dedicated business networks & contacts as a continual professional resource pool </li></li></ul><li>Twitter and its meteoric rise to social media stardom<br /><ul><li>6,000,000+ users worldwide</li></ul>[New Media Age: 2009]<br /><ul><li>2.6,000,000 users in UK (up from 150,000: May 2009)</li></ul>[Ofcom, Communication Market Report: 2009]<br /><ul><li>Twitter grown yearly by 974% in UK since 2006 launch
Penguin Books (4000+), Innocent (5000+) followers</li></ul>[New Media Age: 2009]<br /><ul><li>Fame from celebrity twitter users: Obama’s pre-election campaign; Stephen Fry has 761,000+ followers</li></li></ul><li>Twitter: Tweet about your online store...<br />- Very fast & frequent updating<br />- Customised profile page<br />-Promotion, discounts & offers tweets<br />- Link back to website store<br />
Wikis: Turnkey information repository and collaboration platform<br />- pbWiki & MediaWiki<br />- Multi user input, review & collboration<br />- Highly customisable<br />Also used by:<br />Intel, nVidia, Novell, Pfizer, Capgemini, BOCLinde<br />
‘Spread the word’ social media tools<br />ShareThis<br />AddThis<br />
Conclusion: Issues & challenges of social media<br />Tips on considering social media for business:<br /><ul><li>Be wary of aggressive selling on social media! Take advantage of social features for promotion rather than hustling people to buy.
Don’t try to conquer the network! Social media networks don’t need, or want, winners and losers, or overt competitiveness.
Don’t try to exist on EVERY social network! Careful selection of media platforms in conjunction with your website is crucial. Plus, they become too much to manage for very little in return.
Do provide social tools! Blocking them on a social network means your building just a static web page.
Use social media holistically, as part of a marketing/ PR strategy or campaign – exclusive reliance on them will not yield your expected results.
Be fully aware of T&Cs of your social network. Remember, your using social media for business goals, not masquerading as an individual user.
Include all stakeholders in the process: aesthetic, content, management & moderation – get as many key people excited about using social media as you can!</li></li></ul><li>Issues & challenges of social media<br />Managing social media for business; a balancing act:<br /><ul><li>Moderation:
Censorship of content: too much casual censorship destroys integrity of network, free speech & expression denied, users go elsewhere
Measuring returns on Social Media: Comprehensive ‘Google Analytics’ style metric package doesn’t yet exist – need to construct your own metrics as well as make best use of existing tools
‘Art than Science’: requires use of dynamism, flexibility & open-mindedness to manage than a conventional ‘numbers game’ approach</li></li></ul><li>The big picture of using social media<br /><ul><li>‘What am I creating?’</li></ul>“B-webs (Business Webs) enable firms to focus on the marketspace, by creating not a great website but a great b-web and relationship capital. Relationships are now assets. A firm’s ability to engage customers, suppliers, and other partners in mutually beneficial value exchanges determines its relationship capital. The wealth embedded in customer relationships is now more important than the capital contained in land, factories, buildings, and even big bank accounts.”<br />[Digital Capital: Harnessing the Power of Business Webs, Tapscott, D. et al, 2000]<br />
Final thought: ‘Think digital geography’<br />
SOCiAL MEDIA<br />THE BUSINESS INCENTIVES & THE MARKETING POTENTIAL<br />THANK YOU<br /><ul><li> General Q & A