My presentation from 'Got Social Media' that I gave in Houston on January 24th. This presentation is a deeper dive into some ideas I presented in Marketing's Perfect Storm with a much bigger focus on social media and how (even in the past few months) it has impacted traditional marketing.

1. There will be blood
Why the Web 3.0 will be more 1.0 than 2.0
Chris Bernard
January 22, 2008
Houston Technology Center, Houston, TX
User Experience Evangelist
chris.bernard@microsoft.com
www.designthinkingdigest.com
(Look for me on LinkedIn, Facebook and Twitter) (Images used for educational purposes. Soure: iStockPhoto except where noted)

2. There will be blood
Why the Web 3.0 will be more 1.0 than 2.0
How we can avoid it!
Chris Bernard
January 22, 2008
Houston Technology Center, Houston, TX
User Experience Evangelist
chris.bernard@microsoft.com
www.designthinkingdigest.com
(Look for me on LinkedIn, Facebook and Twitter) (Images used for educational purposes. Soure: iStockPhoto except where noted)

3. How much blood?

4. A lot.
A lot.
Tears
Sweat
Blood

5. Why?

6. Because social media is the new black.

7. It’s our glue.

8. So, where is the blood?

9. Influences

10. Standards

11. Source: Frank Ramirez, Ramirez Design and Luke Wroblewski, LukeW Interface Designs, with minor technology updates by Chris Bernard

12. Web standards

13. HTML
CSS
Javascript

16. De facto standards

20. Proprietary standards

24. Lots of channels, lots of skills.

25. Workflow

26. The Players
Concept: Courtesy www.identitymine.com

27. Concept: Courtesy of Jon Harris, a Microsoft buddy

29. Concept: Courtesy of Jon Harris, a Microsoft buddy

30. Concept: Courtesy of Jon Harris, a Microsoft buddy

31. Concept: Courtesy of Jon Harris, a Microsoft buddy

32. Concept: Courtesy of Jon Harris, a Microsoft buddy

33. Concept: Courtesy of Jon Harris, a Microsoft buddy

34. New Players?
Concept: Courtesy www.identitymine.com

35. New Players?
Concept: Courtesy www.identitymine.com
Integrator
layout, animation,
events, integration

36. New Players?
Concept: Courtesy www.identitymine.com
Integrator
layout, animation,
events, integration

37. Digital marketing

38. The good old days.

42. Radio

43. Print

44. Television

48. until…

54. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
The essence of marketing

55. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
The new marketing model
Transactional Relationship Collaborative
Marketing Marketing Marketing
View of value Value is associated with a Value is associated with Value is associated with
company’s offering. Maximize customer relationships. Maximize experiences. Maximize value
value in exchanges lifetime value of relationships of co-created experiences
View of market Place where value is exchanged between customers and the firm. Market as a forum where
Market is separate from the value creation process value is co-created through
interaction and dialogue
Role of customer Passive buyers to be targeted with Portfolio of relationships to be Prosumers – active
offerings cultivated participants in value co-
creation
Role of firm Define and create value for Attract, develop, and retain Engage customers in defining
consumers profitable customers and co-creating unique value
Nature of Customer Survey customers to elicit needs Observe customers and learn Active dialogue with
Interaction and solicit feedback adaptively about customers customers and communities
Source: Mohan Sawhney, Kellogg School of Management

56. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Blendtec: quot;Will it Blend?quot;
• $50 marketing spend, 2006 revenue up 43%
• 6 million hits in 5 days
• Was 3rd most viewed video on Youtube

57. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Monk-e-mail
• 100 million played
• 25 million unique visitors
• $0 marketing support post launch
• 25% traffic increase
• 157% click thru
“History's third-greatest
human achievement,
after only democracy
and Velcro.” AdAge

58. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Mentos and Diet Coke
• Original video downloaded 20M times
• 10K copycat videos
• 215 million mentions of Mentos brand
• $10M in free marketing / 20% rise in sales
• Coke sales rose 5-10% as well

59. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Lego Digital Designer
• Free design studio
• Online 3D Gallery
• 3,000-piece models
• 1 million+ downloads

60. Community Impact

61. Design, social media and
advertising are converging,
creating disruption in how software
and Web sites are designed and
how we create them.

62. Social media

65. http://jezebel.com/348148/seven-kids-hang-themselves-in-the-name-of-social-networking

66. Source: Wired

67. Control

68. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
―Unmeasured‖ marketing

69. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Marketing – and life – going digital
• (U.S.) 97% of College students have computers
• 94% cell phones
• 34% use Web as primary news source
• 15% are logged into IM around the clock
• 70% use social networking sites
• 85% of adults access Internet or cell phone
• 28% play videogames
• 13% watch TV on something other than a TV
• In 2007 video game sales > music sales

70. Privacy

72. Optimization

73. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Percentage of U.S. marketing spent on advertising
1996: 55% 2006: 33%
“We’re not in the business of keeping the media
companies alive. We’re in the business of
connecting with consumers.” Trevor Edwards, CVP Global
Brand and Category Management, Nike

74. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
More examples
As Customers Flock to the Web, Intel
Gives Chase With Its Ad Budget
EA Joins Forces with
Energy Company
Toyota advergame on Xbox Live
to promote Yaris

75. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Warner Brothers
• 66% recall rate
• 60 % of gamers said the
adverts ―added to the
environment.‖

76. Concept: Courtesy of Jamey Tisdale, a Microsoft buddy
Burger King
• Promotional price of $3.99 (US)
• 3.2 million games sold
• Earnings up 40%
• Same store sales up 4%
Burger King Is In The Video Game
Business; Earnings Up 40%
Thanks to XBOX

81. Where is the blood?

83. There are cracks in the support
systems for our existing models

84. Trouble is here.

85. The mechanisms we have available
are more versatile and complex.

86. Source: Frank Ramirez, Ramirez Design and Luke Wroblewski, LukeW Interface Designs, with minor technology updates by Chris Bernard

87. It impacts how we work together
Source: International Design Magazine

88. It impacts our workspace

89. It impacts how we need to think
Source: Hasso Plattner Institute of Design

90. It impacts how communicate

91. There is opportunity.

92. How to differentiate
Unmet
Feature Distinct
Upgrade Value
Articulated Unarticulated
Commodity Taken-For
Granted
Met

93. ―Because the purpose of business is to
create a customer, the business
enterprise has two, and only two, basic
functions: marketing and innovation‖
Peter Drucker

94. Social media touches both sides of that equation.

95. Generate Memories

96. Emotional Connection

97. It’s real.

98. Concept: Courtesy of Rob Girling, Artefact.com buddy
Concept: Courtesy of Jamey Tisdale, a Microsoft
Building a Marketing Platform
Web Mobile
ERP Point of Sale
Community Ad Systems

99. Why does this way of thinking add value?

100. …especially to social media?

101. Concept: Courtesy of Rob Girling, Artefact.com
Desirable
Efficient
Usable
Useful
Functional
10
1

102. Concept: Courtesy of Rob Girling, Artefact.com
Desirable
Efficient
Usable
Useful
Functional
10
2

103. Concept: Courtesy of Rob Girling, Artefact.com
Desirable
Efficient
Usable
Useful
Functional
10
3

104. Concept: Courtesy of Rob Girling, Artefact.com
Desirable
Efficient
Usable
Useful
Functional
10
4

105. Concept: Courtesy of Rob Girling, Artefact.com
Desirable
Efficient
Usable
Useful
Functional
10
5

106. Concept: Courtesy of Rob Girling, Artefact.com
10
6

107. Concept: Courtesy of Rob Girling, Artefact.com
107

108. Concept: Courtesy of Rob Girling, Artefact.com
Lovemarks…
1. Pursue radical not incremental innovation
2. Commitment to respect
3. Make it easy
4. Tell the truth
5. Nurture integrity
6. Never pull back on service
7. Deliver great design
8. Talk to Value
9. Deserve trust
10. Never fail the reliability test
Source: www.Lovemarks.com – Kevin Roberts
Source: Envisioning desirable software in the age of internet fatigue, Robert Girling, Artefact

115. Silverlight Airlines

117. It impacts everyone

118. Concept: Courtesy of Rob Girling, Artefact.com
…and it’s where Microsoft sees the future
Creating Optimizing Growing
Audience Reach
Touchpoints
Design and Development
Analytics / Decisions
Infrastructure

119. What’s this mean for us?

120. Great thinking is expected…

121. …all the time.

122. Everywhere.

123. Call to Action
• Understand all your channels
• Get fuzzy (You’re not just a social media
expert, Web designer, marketer, you’re all
those things—and a consumer too!)
• Get T-Shaped, work with others that
complement your specialty
• Get heterogeneous, our future is a mix of open
and closed, shared and private, being incontrol
and knowing when to let go.

124. Where to learn more
www.designthinkingdigest.com
www.microsoft.com/design
www.microsoft.com/expression

125. New platforms to advance our work

126. Thank You!
Chris Bernard
chris.bernard@microsoft.com
312.925.4095
www.designthinkingdigest.com
Look for me on Twitter, Facebook and Linked In