V4 ypo january 2013 (santa barbara)

Partner, Upfront Ventures at Upfront Ventures
Feb. 2, 2013

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V4 ypo january 2013 (santa barbara)

  1. Marketing in Today’s Open & Social World Mark Suster YPO – January 2013 @msuster
  2.  Ex software developer (‘91)  BuildOnline (’99)  Koral / Both Sides Of The Table (’05)  VC at GRP Partners (‘07)
  3. The Marketing Landscape Changes Very Quickly These Days. Pre Web 95 - 2007 08 - Now 10 - Now Future Mobile, Who Offline Online Social Video, Knows? Images • TV • Display • FB Ads • Pre-roll • Print • Email • FB Likes • Overlays • Radio • SEO • Twitter • Brand Integration • SEM • FB Timeline • CPI
  4. What IS Clear  Pace of change will accelerate  All marketing is becoming digital or being supported by digital measurement  You need to be metrics driven & test a lot  You need to monitor emerging trends & experiment (saying it’s for the younger generation is no longer an excuse)
  5. A Quick Primer on Social Networks
  6. In the 80’s there were already “social networks” but they weren’t open.
  7. In the 90’s AOL bridged the gap between pre- Internet & Internet with a Walled Garden
  8. Web 1.0 made it easier to have personal pages on “the web” (e.g. not AOL). But publishing was one way
  9. Web 2.0 was born: 2-way communications and easier to publish multimedia Blogging Photos Video
  10. Facebook won the war for broad-based social networking in 2008 & has since gone mainstream.
  11. Twitter is really a totally different paradigm. Twitter makes things “open”  Asymmetric  Public  Limited characters; thus  Link-sharing platform
  12. Twitter is a much more pervasive business tool than people comprehend  Marketing channel  News reader  Instant messaging  Data mine  Customer service Dept
  13. And we all know that social is going mobile
  14. All of the major networks are battling for primacy of your time. Open, Business Broad Based Media Centric Networking Networks  Wants to be your  Digital resume  Your portal to the “second screen” TV web  Industry networking  Our unique online  Communications,  Sales & marketing persona / next entertainment tool generation email  Longer-term: address payments
  15. Quick View of the Future
  16. 1. We’re going from a Social Graph to an Interest Graph. Who You Know What You Like
  17. 2. From Closed to Open Data Timeline Your “Open Graph” & Tweets That Friends See Anybody Can See
  18. 3. From Web to Mobile Web Browsers Mobile Apps  Location aware  Personal device  Bottom end of sales funnel  Smaller form factor
  19. 4. From Text to Images to Video Yesterday - Today – Image Tomorrow - Texting Sharing Video
  20. What will this all mean: • for you? • for marketing?
  21. The First Version of Online Marketing Was Buying Banner Ads – sold like print as CPMs Banner Skyscraper
  22. But People Don’t Pay Attention to the Banners Banner Skyscraper 99% of User Attention
  23. Jakob Neilsen eye-tracking has confirmed this: click through rates (CTR) = 0.08%
  24. Search Next Came “Sponsored Search” – 80+% of All Term Internet Advertising $ 1. Intent- Based Ads 2. Organic Result
  25. Monetizable With any monetizable search term Google becomes a pretty Search Term hostile place for users & expensive for advertisers 1. Intent- Based Ads 3. Google Comparison Shopping 2. Organic Results
  26. The Power of Google is Precisely That They Drove Such a High Percentage of Most Sites’ Traffic 1999 2005 10% 7.5% 7.5% 15% 30% 20% 75% 30%
  27. But Google Became Vulnerable to Social Networking & Why You Need to Pay Attention to Social 2005 2013 7.5% 5% 7.5% 5% 30% 30% + 20% 20% 15% 30% 20%
  28. And Then It All Changes Again ;-) • Mobile • Video
  29. Mobile form factor makes ads harder. Plus it’s a phone. Easy to imagine the most effective ad unit. Tiny Banner Click to Call
  30. In video the ad unit is also pretty obvious: Videos. Although shorter in format than TV Pre-Roll Video
  31. Brand integration (aka product placements) is also performing well. Example: Style Hauls Blair Fowler Elle Fowler 750,000 views
  32. Making Social Media Actionable
  33. Blogging is the foundation. It helps build a direct relationship with your audience. Build “point of view” marketing
  34. Twitter is where your customers go to amplify word of mouth feedback “American Airlines #Sucks” “#EpicFail at BestBuy today. No customer support “You’ve got to go see #Argo – best film of the year”
  35. The information is not anonymous. You can find out your influencers & conversions and build programs around them. $57.50 $331.22 direct purchasesdownstream purchases 15 6 58 clicks downstream downstream shares clicks $74.2 $94.09 $97.09 1 $65.02 direct purchasesdownstream direct direct purchases purchases purchases 19 2 14 11 1 7 7 clicks downstream downstream clicks downstream downstream clicks shares clicks share clicks $78.12 $19.78 $18.41 direct purchases direct purchases direct purchases 9 5 7 clicks clicks clicks
  36. Twitter can be also be used to drive audience to your blog to grow your influence with your key constituencies It’s about winning “share of mind”
  37. Blogs can be used to inform customers about your products and drive traffic to your website / products Your Website
  38. Blogs & Websites improve inbound traffic to your website by giving you more content to be searched Your Website
  39. Your blog & website can drive traffic to Facebook where you can build “fans” and engage with customers Your Website
  40. And of course Your blog, website & Facebook help you add more Twitter followers. Your Website
  41. Which is how a guy like me with no staff to support him gets 86,000 Followers 300,000 - 12,600 600,000 Fans Monthly Page Views Your Website 90+% of GRP’s Inbound Traffic
  42. And if I Could do it With No Staff, Imagine What Your Company Could Do
  43. Just get over your stereotype that social media is about telling people what you had for lunch
  44. Marketing in Today’s Open & Social World Mark Suster YPO – January 2013 @msuster