Learn more about WOMMA and how
                               we can help you improve your word
                          ...
Social Networking:
Marketing 1:1: Millions

Debra Aho Williamson
Senior Analyst, eMarketer
Who is eMarketer?
We aggregate and analyze data from
hundreds of sources – to make sense
of the chaos of numbers and trend...
What’s On Tap Today

 • Social Networking Circa 2006
 • Key User Metrics
 • Who’s Advertising
 • Social Network Ad Spendin...
Is This Your Image of Social Networking?




                   Slide 5
Social
Networking
Circa 2006




   Slide 6
Lots of Fish in the Sea …




                    Slide 7
People Visit Social Networking
Sites Regularly




                   Slide 8
Young People Are 2x Likely to Visit




                   Slide 9
Yes, Social Networking is a Buzzword
        Media mentions (thru 11/30/05 and 11/30/06):
 2005                           ...
Rupert’s Change of Heart?
“Let me ring up
    Sumner
 Redstone …”
                              “God knows what
          ...
Key User Metrics




       Slide 12
Unique Visitors Soar … Then Slow
                      US Unique Visitors to MySpace and Facebook,
                       ...
Other Metrics Remain Strong: Time Spent
             Average Monthly Minutes Spent by US Visitors
          on Select Soci...
8% of all
Other Metrics Remain Strong: Pages Viewed                   pages
                                              ...
Other Metrics Remain Strong:
Average Session Time
             Average Session Time of US Visits
     To Select Social Net...
Who’s
Advertising




   Slide 17
Select Marketers on
Social Network Sites (not incl. ad network buys)

•Apple                       •NBC “Friday Night
    ...
Fanta Game on AIM Pages




                Slide 19
Honda Element on MySpace

                           - “Wallpaper”
                             contest
                  ...
“Friday Night Lights” on Bebo

                             - Support your
                               local team
     ...
This is Advertising? Yes!



              Borat have
            362,713 friends.
            How many you
              ...
Facebook’s New Ad Model




                Slide 23
Social Network
 Ad Spending
  Estimates




     Slide 24
2006 Social Network Ad Spending: $445 MM
                    Online Social Network Ad Spending, 2006

             $500
  ...
US Spending to Top $2B in 2010


                            MySpace: 60% of
                             total US social
...
International Ramps Up

               Who’s in the Mix:
      MySpace: Japan, UK, Ireland, France,
       Australia, Germ...
Marketers Allocate 8% of Budget




                 Slide 28
What’s Next
 in Social
Networking


    Slide 29
The Vertical Opportunity




  *Strong niches: Moms, Hispanics, career*

                    Slide 30
Social Commerce
                                                    Social net sites
                                     ...
Search Adds Real Revenue –
and Better Results




                Slide 32
Better Ad Measurement is Imperative

 • It’s showtime, folks!
 • “MySpace provides very amateur
   measurements. MySpace g...
Your Brand + Questionable Content =
Death By Social Networking?


                             1.Cede control?
           ...
No One Has Figured Out UGC Yet



“The user-generated stuff -- we haven’t
 really cracked the nut there in terms of
 adver...
Promote User Engagement


                           • 31,000 members
                           • 4 student-created
     ...
But Don’t Get Too Close for Comfort


                                               • Marketing against
                 ...
Thank you!
   Debra Aho Williamson
dwilliamson@emarketer.com


          Slide 38
Upcoming SlideShare
Loading in …5
×

WOM in Social Networks - Marketing 1:1:Millions

2,695 views

Published on

WOMMA Summit 2006

Published in: Business, Technology
0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,695
On SlideShare
0
From Embeds
0
Number of Embeds
59
Actions
Shares
0
Downloads
188
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide

WOM in Social Networks - Marketing 1:1:Millions

  1. 1. Learn more about WOMMA and how we can help you improve your word of mouth marketing program at www.womma.org. This presentation is from: (c) 2006 Word of Mouth Marketing Association. You may share this presentation if it is not altered in any way.
  2. 2. Social Networking: Marketing 1:1: Millions Debra Aho Williamson Senior Analyst, eMarketer
  3. 3. Who is eMarketer? We aggregate and analyze data from hundreds of sources – to make sense of the chaos of numbers and trends 30,000-foot view eMarketer IDC TNS PwC “To get one opinion is probably Nielsen//NetRatings Ipsos IAB Forrester USDC not the right way to go.” comScore Zenith Slide 3
  4. 4. What’s On Tap Today • Social Networking Circa 2006 • Key User Metrics • Who’s Advertising • Social Network Ad Spending • What’s Next in Social Networking Slide 4
  5. 5. Is This Your Image of Social Networking? Slide 5
  6. 6. Social Networking Circa 2006 Slide 6
  7. 7. Lots of Fish in the Sea … Slide 7
  8. 8. People Visit Social Networking Sites Regularly Slide 8
  9. 9. Young People Are 2x Likely to Visit Slide 9
  10. 10. Yes, Social Networking is a Buzzword Media mentions (thru 11/30/05 and 11/30/06): 2005 2006 28,596 2,257 5,437 Source: Factiva 611 Slide 10
  11. 11. Rupert’s Change of Heart? “Let me ring up Sumner Redstone …” “God knows what we’re going to do with MySpace.” (July 2006) “This thing may be worth $6 billion!” (November 2006) Slide 11
  12. 12. Key User Metrics Slide 12
  13. 13. Unique Visitors Soar … Then Slow US Unique Visitors to MySpace and Facebook, Up 92% November 2005-October 2006 (source: comScore) Nov-May but only 9% 60 May-Oct. 56.1 55.8 50 51.4 40 Millions Up 27% 30 26.7 Nov-May 20 but only 7% 11.1 15.1 14.1 May-Oct. 10 13.3 0 Se -0 6 M -06 Ju 6 A 06 D 05 Ju 06 Fe 06 M 06 A 06 Ja 0 5 O 06 6 0 -0 n- l- - n- b- - - p- - ug pr ay ov ar ct ec N MySpace Facebook Slide 13
  14. 14. Other Metrics Remain Strong: Time Spent Average Monthly Minutes Spent by US Visitors on Select Social Networking Sites (source: comScore) September September % Change 2005 2006 Cyworld - 212.8 - MySpace 72.5 206 +184% Orkut 73 199.4 +173.1% Facebook 135.1 175.3 +29.8% Total Internet 1,593 1,790 +12.4% Slide 14
  15. 15. 8% of all Other Metrics Remain Strong: Pages Viewed pages viewed Total Pages Viewed by US Visitors To Select Social Networking Sites (source: comScore) September September % Change 2005 2006 MySpace 9.7 Billion 35 Billion +263% Facebook 2.8 Billion 7.2 Billion +160% Orkut 10 Million 198 Million +1,981% Cyworld - 165 Million - Total Internet 453 Billion 462 Billion +2% Slide 15
  16. 16. Other Metrics Remain Strong: Average Session Time Average Session Time of US Visits To Select Social Networking Sites (source: Hitwise) September 2006 Gaia Online 47 minutes Crushspot 31 minutes MySpace 30 minutes Bebo 26 minutes Slide 16
  17. 17. Who’s Advertising Slide 17
  18. 18. Select Marketers on Social Network Sites (not incl. ad network buys) •Apple •NBC “Friday Night Lights” •Burger King •Nintendo •Chase Visa •P&G •Cingular •Sony •Disney •Victoria’s Secret •Columbia Pictures •Wendy’s •Fanta Slide 18
  19. 19. Fanta Game on AIM Pages Slide 19
  20. 20. Honda Element on MySpace - “Wallpaper” contest gives users utility - “Gil the crab” spot premieres on MySpace Slide 20
  21. 21. “Friday Night Lights” on Bebo - Support your local team - Enter a scholarship contest - Post videos and comments Slide 21
  22. 22. This is Advertising? Yes! Borat have 362,713 friends. How many you has? Slide 22
  23. 23. Facebook’s New Ad Model Slide 23
  24. 24. Social Network Ad Spending Estimates Slide 24
  25. 25. 2006 Social Network Ad Spending: $445 MM Online Social Network Ad Spending, 2006 $500 $450 $400 $95 $350 $300 Millions $250 $200 $350 $150 $100 $50 $0 2006 Source: eMarketer US Outside US Slide 25
  26. 26. US Spending to Top $2B in 2010 MySpace: 60% of total US social net spending Slide 26
  27. 27. International Ramps Up Who’s in the Mix: MySpace: Japan, UK, Ireland, France, Australia, Germany, China (planned) Bebo: UK, Australia/New Zealand (planned) Hi5: Spanish, French, German, Italian Plus: Cyworld (Korea), Mixi (Japan), Skyblog (France), Piczo (Canada) 2007: Year of the global social network? Slide 27
  28. 28. Marketers Allocate 8% of Budget Slide 28
  29. 29. What’s Next in Social Networking Slide 29
  30. 30. The Vertical Opportunity *Strong niches: Moms, Hispanics, career* Slide 30
  31. 31. Social Commerce Social net sites account for 6% of E-Commerce Activities That Interest traffic to retail Social Network Visitors, November 2006 sites, up from (Source: American Marketing Association) 2.5% in 2005. 60% 51% 51% (Hitwise) 47% 50% 40% 29% 30% 20% 10% 0% Learn about Download Search for gift Buy products sales or get coupons ideas product discounts Slide 31
  32. 32. Search Adds Real Revenue – and Better Results Slide 32
  33. 33. Better Ad Measurement is Imperative • It’s showtime, folks! • “MySpace provides very amateur measurements. MySpace grew so quickly they were more concerned about keeping the cables connected than about providing ROI.” – Anonymous agency executive *DEMAND ADEQUATE MEASUREMENT* Slide 33
  34. 34. Your Brand + Questionable Content = Death By Social Networking? 1.Cede control? 2.Do scenario planning 3.Go slowly – buy “safe” content areas Slide 34
  35. 35. No One Has Figured Out UGC Yet “The user-generated stuff -- we haven’t really cracked the nut there in terms of advertising on that. … We obviously are getting a tremendous amount of traffic, but that’s a huge area of opportunity for us.” – Michael Barrett, Fox Interactive Media Slide 35
  36. 36. Promote User Engagement • 31,000 members • 4 student-created groups bashing the campaign • No “comments” section – where’s the interaction? Slide 36
  37. 37. But Don’t Get Too Close for Comfort • Marketing against user profiles is exciting, but risky • Pick your tags carefully • Do you want to compromise your customers’ trust? http://vids.myspace.com/index.cfm?fuseaction=vids.individual&videoid=1481334036 Slide 37
  38. 38. Thank you! Debra Aho Williamson dwilliamson@emarketer.com Slide 38

×