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Social Media Advertising presented by


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This presentation was created for a group of international executives attending the Copenhagen Business School during seminars in San Francisco, Oct. 2009. It is focused on helping them understand the general social media advertising landscape and is not intended to be comprehensive or in-depth due to time limitations. Several reference slides included were taken from other presentations and credited at the end.

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Social Media Advertising presented by

  1. 1. Social Media & Advertising<br />Presented to the Copenhagen Business Schoolin San Francisco, CANovember 16, 2009<br />
  2. 2. Brief Introduction to Mike Crosson<br />Online since 1978, before the Internet was known as the Internet (or Al Gore invented it)<br />Former senior executive for Omnicom, MapQuest, Vivendi-Universal, and others<br />Founder of Business Computing magazine, Crosson + Partners Advertising<br />Co-founder of International Webcasting Association, London<br />Current founder and publisher of and the largest social media community on with over 50,000 members<br />Co-founder of non-profit, in alpha development and in process of fund-raising<br />
  3. 3. World Market Overview<br />
  4. 4. Who Has Access<br />
  5. 5. Internet Ad Revenues Continue to Grow, Despite a Slight Downturn in 2009<br />Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates.<br />5<br />
  6. 6. U.S. Online Advertising:One third branding; two thirds direct response <br /><ul><li>Search is the biggest piece of online advertising
  7. 7. Branding spending still under-developed</li></ul>Total Online Advertising 2007: $21.2 Billion<br />Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates.<br />6<br />
  8. 8. Keep in Mind, Search Patterns in Social Media Change Dramatically by Country<br />Source for Social Media Maps:<br />
  9. 9. South Korea<br />9.7m<br />Russia<br />2.4m<br />China<br />43m<br />UK<br />4.5m<br />Denmark<br />0.3m<br />Japan<br />14m<br />USA<br />26.4m<br />Poland<br />1.1m<br />Netherlands<br />1.6m<br />Germany<br />5.2m<br />Czech<br />0.6m<br />CANADA<br />1.6m<br />France<br />4m<br />Romania<br />0.5m<br />Turkey<br />2m<br />Switzerland<br />0.5m<br />Hungary<br />0.1m<br />Austria<br />0.4m<br />Spain<br />4.5m<br />Italy<br />3.4m<br />Pakistan<br />0.97m<br />Greece<br />0.3m<br />Taiwan<br />4.2m<br />India<br />8.7m<br />MEXICO<br />4.1m<br />HongKong<br />1m<br />Philippines<br />2.4m<br />BRAZIL<br />7.6m<br />Australia<br />1m<br />Source: Universal McCann Social Media Tracker<br />16-54 Active Internet Universe Estimates<br />Asia Leads in Blogging<br />
  10. 10. Russia Leads In Social Networking<br />Source: Universal McCann Social Media Tracker<br />
  11. 11. Consumer content drives local language<br />Chinese will rise to #1 by 2016<br />Source: Internet World Stats<br />English Language is Losing Dominance<br />
  12. 12. 11<br />Traffic is Huge, But Social Media Advertising Spend is Not… Yet<br /><ul><li>7% of online media is spent in social media, but growing 26%+ a year
  13. 13. $1.3 B in 2008 to $2.6 B in 2012 in U.S.
  14. 14. Major firms have massive concerns about brand safety and reputation management
  15. 15. Poor quality ad inventory limits exploration with new venues
  16. 16. Ads on SNS are not nearly as effective as advertising online at large</li></ul>Sources: IDC U.S. Consumer Online Behavior Survey Results 2008, n=3092 U.S. Internet Advertising 2008–2012 Forecast and Analysis: Defying Economic Crisis (IDC #212149, May 2008)<br />
  17. 17. In general, Internet Ad Response Rates Are Abysmal<br />Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates<br />
  18. 18. But they are even worse for Social Media!<br />Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates<br />
  19. 19. The Take-Away on Social Media Advertising:<br />Just don’t do it. <br />
  20. 20. The Take-Away on Social Media Advertising -Just don’t do it… UNLESS: <br /><ul><li>Your primary focus is branding or direct response
  21. 21. You have millions and millions to spend over a long time period
  22. 22. You have an integrated marketing platform that leverages your web campaign in other media
  23. 23. You have your customer support aligned with your marketing
  24. 24. You embed your social media strategy and values throughout your company
  25. 25. And, most importantly, you LISTEN and DON’T SELL! </li></li></ul><li>Let’s Focus on Three 800 lb. Gorillas<br />YouTube <br />Facebook<br />Twitter<br />
  26. 26. YouTube, the Video Gorilla<br />
  27. 27. Social Media Video Example 1: TMobile<br />Agency: Saatchi & Saatchi<br />
  28. 28. Social Media Video Example 2: GEICO<br />
  29. 29. Facebook, The Friends’ Gorilla<br />More than 300 million active users<br />50% of active users log on to Facebook in any given day<br />The fastest growing demographic is those 35 years old and older<br />More than 10 million users become fans of Pages each day<br />More than 8 billion minutes are spent on Facebook each day (worldwide)<br />2nd most popular website in the world<br />
  30. 30. Facebook Advertising<br />No Cost<br />Create business profile pages and Fan pages are free <br />Sending out news & updates to fans and select demographics can be done at no charge<br />Automatic updating to Twitter and LinkedIn and RSS feeds can be added at no cost <br />Small Cost<br />With Facebook Social Ads, you can explore extremely targeted advertising for minimal cost. <br />
  31. 31. Twitter, the… well, Twit’s Gorilla<br />Over 40 million users…<br />14th most popular website in the world<br />Average age of a twitter user is 31<br />20% of online adults age 25-34 have used Twitter<br />March 2009, a blog ranked Twitter as the fastest-growing site in the Member Communities category<br />
  32. 32. Practical Applications of Twitter<br />
  33. 33. Building Synergy Between Both<br />Link Twitter and Facebook together using icons, links and FaceBook Connect (and don’t forget Xbox Live coming soon!)<br />Use or TwitterFeed to multi-post<br />For SEO purposes, reference both in all your communications, including ad campaigns, press releases, on your website and company blog, etc. <br />Optimize your posts and Tweets for insite search <br />
  34. 34. Promotion Techniques to Consider<br />Run Facebook/Twitter only coupons<br />Create cool applications and useful widgets for viral marketing<br />Send invites to sales and events<br />Publish event results<br />Publish company history<br />Publish company milestones<br />Ask questions, Twitter is great for opinion research<br />Give “pro” tips or helpful hints<br />Get personal – use a personality (preferably a real person or position within your company)<br /><ul><li>47% online participated in online contests or sweepstakes
  35. 35. 31% used online coupons</li></ul>Source: IDC U. S. Consumer Online Behavior Survey Results 2008, <br />
  36. 36. Additional social media advertising venues<br />LinkedIn – multiple new channels opening up<br />Hulu – large video site and getting more popular<br />Other communities – Bebo, Hi5, MySpace, etc. <br />, Propellr, other bookmarking and recommendation sites(Digg is expanding their CPC network with user-voted advertising , others to follow)<br />Technorati – widening their display capabilities<br />FM Publishing – largest blog network<br />Blogher Network – for reaching the female audience<br />
  37. 37. Reference sources: <br />Social Media Networking, Derek Ross<br />Playing Together, PanosSambrakos, Ogilvy One<br /> advertising<br />Using Social Networks for International Expansion, Terrance Barkan<br />Global Social Media Trends, Tom Smith<br />IDC Summit Presentation, Caroline Dangson<br />
  38. 38. Thanks for your attention<br />Contact information for Mike Crosson:Michael P. CrossonPublisher, SocialMediopolis.comM: 415.299.0637E:<br />Co-founder and Chief Revenue Officer,<br /> Personal website:<br /> Personal non-profit website:<br /> Twitter:<br /> LinkedIn:<br />Facebook:<br /> Yahoo! IM: mcrosson<br /> MSN IM: VPAdSalesAOL IM: mcrosson<br /> ICQ#82626716<br />