It’s great to be here We’ve spoken at quite a few events over the past couple of years but this is our first time speaking at Ad Tech It’s an honor to be speaking amongst such a stellar line up of speakers so I’m sure you’re enjoying the dialogue It’s particularly exciting for us as it’s the first time we’re speaking as Komli post the integration of Aktiv and Ad Max and we’re here with one of APAC’s leading brands with one of it’s leading marketers, Ricky BaizasNestle are so heavily invested in the social media space that Ricky sent his portion of today’s presentation by Facebook He’s going to be providing some really good Nestle insights, I’m like his fluffer, so I’ll try to keep you entertained We’re talking about the evolution of social media in the digital eco-systemWhich in English means, from a 1 consumer usage and 2, brand and marketing perspective, where was it, and where is it nowWhen talking about the evolution of social media the first thing we need to recognize is the pace of changeThose of you who have heard us speak on social media before may have heard us christen the growth of social media as the greatest communication revolution since the internet itself The best barometer of that change is of course FB, so we’re going to start this presentation talking about themAs recently as 2008, a lot of people had a lot things like this to say about the advertising opportunity on FacebookThings like this … In many ways this summarizes a prevailing thought that garnering engagement was futile, and that delivering accountable transactions was where the smart marketing dollars wereWe’ve chosen not to name and shame this scribe, but buy us a beer later and we it’s amazing how loose lipped we can become We shouldn’t be too harsh though, Social media at this time was on the margins of the digital eco-systemOnline advertising was growing as it allowed us to reach specific audiences in large numbers at cost-effective prices based on the content they were reading People on Facebook weren’t there to consume content, here we had a small number of demographically very similar people who were not there to engage in content, they were there to throw sheep at each other and poke that girl that they’ve never have he chance to well, poke, in real lifeFacebook still have advertising positions that looked like this … We’ve got IAB banners on the outside of the real conversations taking place between people
Fast Forward 5 years, and Facebook’s position as a central cog in the digital marketing eco-system is clearWhat we’re seeing now, with this data, in such a short period of time, is truly mind blowing What happened then? Well, 3 things happened.First, consumer usage exploded – both in terms of the number of users but also how they were using it and what the platform enabled them to doSecond, marketers started to figure out social media platforms and how to use them Thirdly, the platforms themselves started to develop better, more appropriate, some sophisticated ad platforms These things happened all at the same time, and the pace of change within each was different at different times, and different for different social platforms And all of these developments, are exactly that, they are developments, and there is some ways to go. But they’ve developed enough to ensure that in 5 years social media has moved from the margins to where it is now, sharing center stage in the digital eco-system.
So in terms of the growth of that consumer usage, it grew very fast, very quicklyIt saw some social networks die, and other becomes incredibly dominantThere are pockets of the globe that the dominant players don’t haven’t quite conquered yet, and are growingAnd there are pockets where local players have achieved hegemony, some prominent ones in APAC, like China, Korea, Vietnam It also spawned a cluster of smaller platforms than in many ways enhanced the usage of the larger ones
The critical development though in social’s rise to center stage in the digital eco-system was not just the sheer size and scale of the usageit’s the way they are using these platforms and the volumes of connections, dialogues, engagements and content they are creating when they are there Social Media’s revolutionary impact is in the way it facilitated many to many and many to one dialogue For the first time users are commenting, creating and sharing, in real time.The impact?Now in 2012, we’ve lived through the age of portal, the dawn of searchWe’re in to the age of social media and niche content, in this age search is still strong, but shares traffic driving roles to niche content with social Users traverse across a huge expanding internet universe, but these tiny far off galaxies are always bound by social, which orbits everything, linking people and linking these far off geographies, allowing us to share things instantly through social, bringing it altogether, and driving further people back to them
And of course the age old rule of advertising still and always will apply: Where the consumers go, the dollars go.So the critical change is that we’ve realized is that in social media environments, consumers do want to have that same dialogue with brands And brands have pushed themselves to the center of that dialogue, becoming part of the dialogue, establishing relationships with consumers.Advertising is the second worst option. We only advertise because we don’t have time to speak to our consumers on a one to one basis and have a dialogue with them once a week. So instead of doing that, we’ve been pushing messages AT them. For the first time, with social media, we can establish that depth of dialogue we wanted to have with a consumer. And not just with one individual, but with 100’s of millions.Traditional one to many approach was what defined online advertising – large reach, great content targeting, more people, more quickly, more cost-effectively, more accountably, and an intrusive banner position that allowed us to engage this right audience within banners and additional micro-sites The number of users interacting with brands content shows it’s human nature to want to have a social relationship with people we trade with – this should be obvious anyway, it’s been there forever in the way as humans we become brand advocates for products and people we buy from and the deeper level of relationship we look to form when purchasing productSo for the first time we have an always on engagement platform that connects us all and provides multi-layered, recorded dialogues There’s been a to and fro as advertiser have realized they become part of the dialogue, rather than sit on the outskirts, and the platforms themselves have opened new and innovative ways to enable them to do that. They’ve fed off each other.So we have pages where they can present themselves, hold dialogue, distribute content And not through banner advertising, but through social advertising, we can amplify that content and brings it to them and shows how their friends are reacting to itIt’s powerful stuff. It’s completely different to what went before. And it’s placed social at the center of the digital eco-system because it is the KEY engagement tool.
Being the key engagement tool in the digital eco-system for consumers is a very strong position to be in.Because it’s the fulcrum around which our surfing habits revolve, it links everything together, and because brands are now in the middle of that dialogue, it places social at center stage Now what marketers have always wanted to deliver - the maximum amount of engagement, preferably 24/7 between brands and consumers – is possible Traditional large reach media hasn’t delivered it - tv, print, outdoorOnline display takes us much closer to this, social completes that evolution
A recent study out of UM called Wave 6: Social media tracker 2012 … asked consumers in what way they wanted to engage with brands
Business Challenge: The Coca-Cola unit wanted to utilize Vitamin Water’s Facebook fanbase to design a new flavor.Project Details: Vitamin Water’s flavor “Connect” was developed by the company’s Facebook fanbase; one Facebook fan won $5,000 for her role in development of the new flavor. The competition allowed VitaminWater’s Facebook fans to develop all aspects of the product, from selecting the flavor to designing the packaging and naming the product.Results: More than 2 million VitaminWater Facebook fans participated in the new product development effort.
This central role in the digital eco-system – Capturing such a large chunk of the online audience Acting as the glue that binds the fragmented internet together for the consumer, enabling us to share journey with others Allowing publishers to distribute so much content And for brands having an always on dialogue with consumers Has meant that Social is becoming the new searchThere’s still a long way to go though
From a digital market perspective, for social to sustain this central position as the key engagement tool, then as an industry, we need to get our head around the value of engagements In trying to answer this question, there is a trend right now to try and put a dollar value on a fan to allow us to talk metrics like – if you pay xyz for a fan, then for a brand like you it’s worth xyz dollars, so you’re return is zyzIn many ways this is a product of the online obsession with tracking through to a sales - we don’t do this with any other media, we recognize the value of an engagement in itself We’re finally capable of delivering a true second best to talking to all our consumers face to face - which is capture them on our social platform and engage with them in a one to one, one to many and many to many way, as well as recruit their friends and more not yet captured – and we’re missing the point by trying to reduce an engagement to a dollar sale value, rather than recognize that engagement with consumers is the end goal Finally, social is a unique in that’s it’s always on, so the only metric we should be looking at is the sales performance of a product supported by an on-going effective social media presence – again, measured in volume and quality of engagements – as opposed to without I think the recent behavior of two of Americas leading car manufacturers, GM and Ford, show’s we’re still not quite there yet …. GM v Ford GM:Announced that it was pulling its $10 million advertising budget from Facebook. GM believes that the ad formats currently available are unattractive and ineffective. The automaker's team desired bigger, higher-impact ad units. Mark Zuckerberg and the storied "build and ship" culture he's created is dedicated to improving and not compromising the user experience. For the time being, anything that disrupts that experience is off the negotiation table even it means the company must walk away from $10 million deals.We think for social media, advertisers need to think about creating new experiences that inspire and engage a far more connected and discerning audience. Home page takeovers are for Myspace. Facebook is a new type of co-created canvas that requires different strokes to attract a savvy clientele.We’ve covered some of those already today.The ad platform is about amplifying the engagements you create. Ford:Ford has more than 10 million fans globally with 4 million supporting Mustang, the single largest vehicle fan page on Facebook.In contrast, Monty, Global Communications Director at Facebook, says they are upping their spend levels, “We've found Facebook ads to be very effective when strategically combined with engagement, great content and innovative ways of storytelling, rather than treating them as a straight media buy."One of Ford's much touted successes on Facebook was its introduction of the 2011 Ford Explorer via its "Reveal" campaign. The company claims that the combination of advertising and creative storytelling helped it outperform a traditional Super Bowl advertisement for a fraction of the cost. But I think the real case is against the people in social networks vs. traditional marketing methodologies. What's clear is that Facebook is intent on serving users first. Perhaps advertisers could take a cue from Zuckerberg to rethink experiences and create advertising and marketing campaigns that consumers can't help but click, share, and engage.
We like to stick our neck out with a predictionAnd it’s for this reason that we’d predict that a fully ledged in-road in to e-commerce for social is probably not the next stage I guess if social could have people entering the web there, searching for content there, and purchasing products there, it could being to command some kind of monopoly on the net Is that going to happen? Probably not. If it was going to happen it would have by now. The functionality exists already but consumers appear more comfortable still, despite social’s dominance on page views, going through to dedicated online shop windows to purchase.They want to engage with you, commit to you, have a special relationship with you, and if they do, they will buy more, but they will do it in their own sweet time.For the time being, social specific promotions seem to be social’s best way of driving immediate traction on sales. It’s not about pushing product at that, and it’s not about reducing an individual engagement to a dollar value And again it’s for this reason why as an industry, we should be focusing our energies on assessing uplifts in sales over a longer period of time with a dedicated social media presence And here I am going to hand you over to someone with all the experience of this for Nestle and some great examples right here in our markets …
IMMAP 2012, the evolution of social media
• Evolving Digital Landscape and it’s impact on social communications of Brands Matt Sutton
Mind-blowing advertising performance data Facebook net Market valuation income of USD of over USD 100b 3b of advertising through recent revenue in 2011 IPO based largely annum on advertising opportunity There are 2.7b likes every single day with many of them for brands and driven by advertising