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  1. 1. SMRC – Charity Market Report & CSR/Corporate Social Media Research References (The Social Web Space, The Charity Space & The Social­Charity Opportunity/ Problem Space – where social web economics meet charity ecologic) 1. The Social Web Space – If the diverse uses of social networks represent the mineral wealth of the earth, present social web models mine only the copper, leaving the bulk of the mineral value untapped. The ad-based revenue model which dominates the US social web space still revolves around the archaic notion that users are passive observers and consumers rather than active creators and producers of value. This twentieth-century television/radio advertising model is thus limited in its ability to realize the progressive value and power of social networks. The dogmas of the quiet past are truly inadequate to the stormy present. While this model is calculated to approach the long tail, its angle of approach remains shallow & one-dimensional. Innovators who recognize that much of the raw material provided by the social web remains unredeemed are now devising new ways to harness the flows of value generated by its cognitive surplus. Appreciative of the past and sensitive of the possible, SMRC monitors these flows of value in the marketplace and aggressively explores new capital horizons as they come into view. The Social Web is a nineteen-year old phenomenon,4 eight-years in its present manifestation,5 with global scope, endlessly and rapidly evolving & expanding applications, and virtually limitless potential. Increasingly, web users are proactively interconnecting their lives and minds. As of June 2010, according to Nielsen, U.S. users spend better than half their time online interacting with friends and groups.6 Every day, this phenomenon is becoming more:4 No sooner did the World Wide Web become available to the public (1991) than its users began tofind ways of connecting for social interaction, transforming the intentions of the web‘s creators.5 Friendster, the first modern social network, came online in 2002. ICQ (1988), and (1995), andNapster (1999), and were milestones in the evolution of the Social Web.6
  2. 2. � Popular � With over three billion (3,000,000,000) registered user accounts worldwide…7 and nearly one billion (1,000,000,000) unique visitors.8 � Global time spent online on social networking sites increased 82% year-over-year December 2008 - December 2009.9 � Three out of four regular internet users maintain at least one social network account.10 � In March 2010, Facebook surpassed Google as the most visited website in the U.S. 11 � In the U.S., an average adult spends nearly fourteen hours a week online.127 As of Nov 11, 2010 the running tally of 194 social networks (118 of which report registered userfigures) at stood at 2,900,576,677…with a handful of conspicuous absences. Of those listed 15 sites are among the top 100 most visited(per Alexa). As of August 2010 reports 964,305,000 unique visitors… cf. excluding ―traffic frompublic computers such as Internet cafes or access from mobile phones or PDAs.ǁ9
  3. 3. � Profitable � In June of 2009, Techcrunch estimated the market value of the top twenty-seven social networks to be over $27.5 billion 13 ($27,635,000,000.00). As of September 24, 2010, Second Shares put the value of the hottest nine U.S. social networking sites at over $45 billion ($45,497,000,000.00).14 � Social networks worldwide are estimated to bring in $3.3 billion in advertising dollars alone in 2010.15 � In the U.S., social networks are scrambling to capitalize on untapped non-ad revenues represented by the social web. Among the streams poised to emerge is trade of virtual goods. 16 Social media analytics is a burgeoning field.17 � Progressive � October 26, 2010 – Facebook COO Sheryl Sandberg announced that 10,000 websites integrate with Facebook every day. 18 An unnamed source at Facebook revealed that Facebook credits, already sold at Target, will be sold at Walmart and BestBuy. 19 � February 3, 2010 – Pepsi Co. abandoned its 23-year-old Super Bowl marketing campaign in favor of a $20 million social web marketing initiative, Pepsi Refresh, a social media giving-campaign that awarded grants to the grassroots projects earning the most votes on its website. Since January 2010, more people have voted for Pepsi Refresh causes than voted in the last presidential election. 2013 Asian based social media company Qzone made over $1 billion last year with just 13% coming fromadvertising revenue.,
  4. 4. � October 22, 2010 – Zuckerberg, Bezos, and Doerr announced their $250M sFund, a clear indicator that market leaders envision the social web space as the next important wave of technology. Compare Doerr and Jobs’ 2008 announcement of the $100 million Kleiner Perkins iFund, on the bet that mobile devices (smartphones) would become more important than personal computers.21 � Powerful � “Wikipedia took the idea of peer review and applied it to volunteers on a global scale, becoming the most important English reference work in less than 10 years. Yet the cumulative time devoted to creating Wikipedia, something like 100 million hours of human thought, is expended by Americans every weekend, just watching ads.” 22 � Barack Obama‘s 2008 presidential campaign abandoned conventional media in favor of social media, and proved to be the most successful political fundraising effort in living memory, with over half a billion dollars in online donations.23 � The social web is revolutionizing consumer behavior. ―Tech-savvy consumers are [now] in charge with their use of emerging social technologies. Retailers need to meaningfully engage with informed consumers digitally or lose market share. The use of social media and mobility can level the playing field and provide retailers of all sizes with opportunities to amplify their brand.ǁ 24 � The social web is a prime mover in the rapid development of the developing world. ―[A]dvances in technology and the falling cost of delivery are driving big corporations as well as entrepreneurs to take new or renewed interest in solving some of the most seemingly intractable issues we face as a global community, from health care to education, from economic development and rolling out affordable alternative energy to coping with the social and economic fallout from 25 natural disasters.ǁ � The social web is revolutionizing activism. A prime example is Ushahidi: ―(Swahili for ‗testimony‘ or ‗witness‘)… a website created in21 Clay Shirky, Here Comes Everybody. SMRC aims to harness & monetize for charity what Shirkycalls users‘ ―cognitive surplus.ǁ23 Bernie Brennan, former Chairman of the National Retail Federation, Branded!25
  5. 5. the aftermath of Kenyas disputed 2007 presidential election… that collected eyewitness reports of violence sent in by email and text-message and placed them on a Google map. It is also the name of the open source software developed for that site, which has since been improved, released freely, and used for a number of similar projects.ǁ26 2. The Charity Space – According to the Charitable Giving Index, published September 2010, better than half the world‘s population regularly gives or volunteers for charitable causes.27 According to Giving USA, in 2009 Americans donated $303.75 billion to charity, and individual givers and charitable bequests accounted for 83% of that total, which represents roughly 3.3% of 28 individuals‘ annual income. As a cultural phenomenon, altruism flourishes in step with material abundance due to its… a. Universal Appeal – to the better angels of our human nature (See Addendum A: Manifesto). Charity is as old as humanity itself. In large part, charity made and makes us human.29 A flood of recent research has pointed to the human capacity for empathy as necessary and decisive for the evolution of homo sapiens.30 Based on these findings, we regard altruism as an innate and fundamental human trait. b. Universal Advantage – including… � Tax-benefits & other benefits – that incentivize altruism. � Corporate Social Responsibility initiatives – next-paradigm business- drivers � Social currency c. Universal Agency – a different species of doing, a different breed of profit In classical economic theory, agents act out of rational self-interest. The ubiquitous phenomenon of charity (altruism) presents significant challenges to this theory. Hamiltons celebrated biological formula for altruism (c < b * r) remains incomplete for human systems in which we observe memetic26 The report can be found in its entirety at: An executive summary can be found at Cf. Jennings, A, The Invisible Matrix: The Evolution of Altruism, Culture, Human Behavior. & Batson, C. D. Altruism in Humans. New York: Oxford University Press (forthcoming).30 Cf. V.S. Ramachandran, ―MIRROR NEURONS and imitation learning as the driving force behind "thegreat leap forward" in human evolution,ǁ
  6. 6. (ideological political professional & cultural) solidarity regularly trump genetic coefficients of relatedness.31 Furthermore humans universally share a powerful instinct to help even strangers with whom they 32 share neither known genetic nor known memetic heritage. These primal impulses to help, activated by mirror neurons, derive from the overlap of our brains map of others bodies onto our brains map of our own.33 This other-as-self phenomenon, often activated by visual stimulus (our eyes), is so powerful it may be activated by stories, for narrative characters present only to our minds-eye. This phenomenon stands behind golden-rule formulae which arise independently in virtually every culture. In every culture, calculi (maths) exist whereby the individual is deemed richer when he shares value with others out of his surplus.34 We have evolved from maternal instinct to genuine fellow-feeling. Not only does benevolence count as credit in every culture, as the world grows more connected and as economics globalize it is increasingly the case that reinvestment in any represents return in ones own. Insofar as any self is always already embedded in and responsible to numerous social spheres, rational self-interest becomes indistinguishable from rational others-interest. Giving is responsible. Giving is sustainable. 2.1 Charity Space Latest Trends a. Unprecedented Proliferation – Over the past decade (2000-2009) the number of registered 501(c)(3)s has grown by 151.2%. 35 b. Emerging Online Presence – Social Media giants Facebook, YouTube and Myspace all now offer virtual property and platforms to many non-profits on their websites. Facebooks Causes (launched May 25, 2007) currently leads this trend. Causes claims 140 million members, and reports over31 W.D.Hamilton (1964). ―The genetical evolution of social behaviour I and II.ǁ — Journal ofTheoretical Biology 7: 1-16 and 17-52.32 Peter Singer, (2009). The Life You Can Save. Cf. V.S. Ramachandran, (2000). ―Mirror neurons and imitation learning as the driving force behind ‗thegreat leap forward‘ in human evolution.ǁ For example, for someone with $100 in $1 bills, once he is fed clothed & sheltered, there existsstatistical "sweet-spots" for personal benefit from sharing with, e.g. 1) a friend, 2) an acquaintance,3) a fellow-citizen, 4) a stranger (fellow-human).35 USA Giving 2010 Report, p 22.
  7. 7. $27 million raised for some 390,000 user-generated causes to date.36 Causes averaged 25 million active users in October 2010.37 c. Explosion of Options – Several independent charitable donations portals exist, providing services such as accepting online donations, linking volunteers with opportunities, driving micro-revenue streams for charity via search engines and ads, and providing micro-charities with organizational tools. (See Addendum E: Map of the Charitable Web Space & Addendum F: Charity Statistics by Region, Income & Demographic) 3. Social – Charity - Problem/Opportunity Space: Tremendous possibilities exist where the economics of the Social Web and the “ecologic” of charity intersect. a. Social Web Economic Paucity 1. Most advertise to generate revenue (e.g. Google & Youtube). SMRC eschews conventional advertising models. 2. Many hold user data they cannot fully exploit for privacy reasons (e.g. Facebook & Twitter). The social web has yet to figure out how to capitalize fully on the popularity of social websites and the wealth of behavior populations perform on them. b. Charitable Ecological Waste 1. Conventional funding mechanisms include galas, concerts, events, fundraising drives, seasonal promotions, direct & indirect sales campaigns, traditional broadcast marketing, etc. 2. These conventional funding mechanisms, and their underlying models, are not only sporadic but also carry heavy overheads which eat into the funds collected. c. SMRC brings together the economics of the social web and the ecologic of charity: � By aggregating the Collective Intelligence of the network, SMRC captures value untapped by conventional social web applications in a novel & vibrant zero-ad/zero-threat space.36
  8. 8. � SMRC provides a regular, recurring, and zero-overhead funding alternative for our charities. For our members, their societies at large, and the world, SMRC offers an environment for the development of future applications to optimize the potential of the ever-evolving commons. In so doing, SMRC – subliminally, symbolically, and socially – promotes and rewards altruistic social behavior and an ethos of philanthropy.� The Social Web is just the most recent of humanitys modes to express its sociability. Before there were virtual social networks there were real social networks. Virtual social networks are handy tools by which we extend and actively evolve real social networks. Within the space of charitability, sociability becomes eusociality. By nature, the two go hand-in- hand. SMRC clears and maintains a space, a shared place, where they can flourish... free from the threat of ads and malware, where personal privacy is secure, where the flow of social and real currency is 100% transparent, a true reflection of the zeitgeist. The zeitgeist values social responsibility. Recent studies in the corporate world evince how much social responsibility justifies cost- premium and how much goodwill justifies purchase-intent. We look for this trend to continue. As members of SMRC‘s community, we take part in something larger than ourselves. We carve out a niche where charity meets social web dynamics, where the better angels of our human nature may stretch and exercise their powerful wings.
  9. 9. SMRC CSR / Charity – Intellectual Capital References I.    Commonly Referenced Research:  II. Examples of Innovative Corporate Social Media:  I.  Commonly Referenced Research:   Corporate Social Responsibility:  � Activists in Social Profit Campaigning..Views and Effectiveness.pdf  � BCG Creating Social Impact.pdf  � BCG Social Advantage.pdf  � Cone_WSJ_Response_Aug_2010.pdf  � CSR Contributes to Bottom Line.pdf  � CSR Measuring Outcomes.pdf  � CSR Rating Report.pdf  � Doing Good is Good Business.pdf  � Future of Corporate Philanthropy.pdf  � Future of CSR.pdf  � Harvard­CSR.pdf  � IBM CSR White Paper.pdf  � Impact CSR on Consumer Behavior_Case Study Peru.pdf  � Philanthropy as Strategic Choice.pdf  � Sirota Corporate_Social_Responsibility_June_2007.pdf  � VanCity CR_Future_of_CSR.pdf   Charity and The Social Web:  � 2010 WorldGivingReport_Interactive.pdf  � 2010­Cone­Cause­Evolution­Study.pdf  � 2010_cone_nonprofit_marketing_trend_tracker_release_and_fact_sheet.pdf  � abrams_research_social_media_survey_0209.pdf  � Berners­Lee 2010 W3 report.pdf  � Borrell_Social Networking Ad Revenue execsum.pdf  � Borrell_Social Networking Ad Revenue.pdf  � Charitable­Giving­Effects­of­Exogenous­and­Endogenous­Status.pdf  � chronicle article 2009.pdf  � Clinical versus mechanical prediction­ a meta­analysis.pdf  � cone_2010_shared_responsibility_survey_fact_sheet.pdf  � Congressional Report Haiti Charity.pdf  � CSR Rating Report.pdf  � DEI+Study+­+Engaging+Consumers+Online+­+Summary.pdf  � Determining­Influential­Users.pdf  � Empirical Eval Trust Semantic Web.pdf  � Entrepreneur­Article.pdf  � Evaluation of Node­Position in Social Netwk.pdf  � Facebook and Non­profit Organizations­ A Content Analysis.pdf  � Harvard­CSR.pdf  � I Tube, You Tube, Everybody Tubes ­­ Analyzing the Worlds Largest User Generated Content  Video System.pdf  � JOEL_ONLINE_CHARITY_SNAPSHOT.doc  � Journal of Interactive Advertising ­­ SOCIAL MEDIA MEASUREMENT­ ITS NOT  IMPOSSIBLE.pdf 
  10. 10. � Juniper Research.Mobilising, Socialising, Monetising!.pdf  � Nielsen Report on Personal Recommendations vs traditional media advertising.pdf  � Pew Internet ­ Older Adults and Social Media.pdf  � PIP­The­State­of­Online­Video.pdf  � PIP_Adult_gaming_memo.pdf.pdf  � PIP_Future_of_Internet_social_relations.pdf  � PIP_Future_Of_Millennials.pdf  � PIP_Online_Product_Research_final.pdf  � PIP_Reputation_Management_with_topline.pdf  � PIP_Social_Media_and_Young_Adults_Report_Final.pdf  � PIP_Understanding_the_Participatory_News_Consumer.pdf  � Predicting the Future with Social Media.pdf  � Pricing in Social Networks Equilibrium & Revenue Maximization.pdf  � Professional­and­User­Generated­Content­Rating­using­Context­ Information.pdf  � PRWeek SocialMediaSurvey.pdf  � R2I Social Media Survey.pdf  � SAS Social Media Metrics Analytics.pdf  � Second Life Social Dynamics & Economic Activity.pdf  � SN analysis customer­level revenue distribution.pdf  � Social Media Measurement­ Its Not Impossible.pdf  � Structure and Evolution of Online Social Networks.pdf  � Supercruchers Review.pdf  � SurveySummary_Social_Media10082008.pdf  � syncapse­value­of­a­facebook­fan­1.pdf  � syncapse­value­of­a­facebook­fan.pdf  � The Privacy Jungle.pdf  � The Social Network Business Plan 18 Strategies That Will Create Great Wealth.pdf  � The Tangled Web of User­Generated­Content ­­ Making Copyright Sense of User­Generated  Content.pdf  � Too Good to Fail _ Tata Case Study.pdf  � TUTORIAL ON AGENT­BASED MODELING AND SIMULATION PART 2 ­­ HOW TO MODEL WITH  AGENTS.pdf  � USRetailingMoveOnlineExecutiveSummaryDec2.pdf  � W3C Web 2010.pdf  � Wave4_2009.pdf  � Web Transforming Kingdom (UK).pdf  � who    s_responsible_cone_2010_shared_responsibility_pov.pdf   II. Examples of Innovative Corporate Social Media (for comparatives of objectives vs. performance):  � Blendtec is famous for its bevy of inexpensive “Will It Blend” videos posted on YouTube and shared by  millions.  � Adobe maintains a list of interesting company related websites and conversations on the social  bookmarking site Delicious.  � Cadence recently relaunched its website that now prominently promotes the company’s community.  � Cisco hosts 12 blogs addressing a variety of audiences for their global business.  � Coca-Cola Conversations is a blog written by company historian Phil Mooney that focuses on Coke  collectibles.  � Dell leverages a variety of social media platforms for customer engagement, including an island in the  virtual world of Second Life.  � Ford publishes news releases with lots of multimedia content and employs a social media news  release format to display them in their newsroom. 
  11. 11. � Fujifilm recently launched a social network to build a community of photo enthusiasts around its  newest camera. � GM uses blogs to communicate directly with its customers around topics ranging from design to green  tech. � H&R Block created a Facebook fan site to aggregate its social media activities, engage customers and offer  tax advice/resources. � HP used Twitter to power a scavenger hunt at a recent conference. � HSBC built the HSBC Business Network to connect entrepreneurs using blogs, videos and forums. � IBM was the first large enterprise to embrace employee blogging and now boasts thousands of blogs related to every facet of its business. � Intel has also developed many social media touch points with its software communities, which includes  blogs, Twitter and virtual worlds. � Intuit sponsors the Tax Almanac wiki, where anyone can find and contribute to this resource for tax  information. � Jeep connects with customers via a community page with links to photos on Flickr, the company’s  MySpace and Facebook pages and a list enthusiast groups. � JetBlue employs social media as part of its training for JetBlue University, as this video explains. � Johnson & Johnson uses this blog to show another side of the company, with frequent video posts and  interviews. � Lenovo launched “Voices of the Olympics Games” to aggregate posts from the athletes competing in  Beijing. � Marriott CEO Bill Marriott posts regular updates and stories from his travels to Marriott properties around  the world to fuel the content for this entertaining blog. � McDonalds maintains a blog to highlight the company’s corporate social responsibility efforts. � National Geographic uses Google’s new virtual world, Lively, to bring people together around its new show,  LA Hard Hats. � New York Times is beta testing a Firefox add­on that allows users to share and comment on stories  through a decentralized social network. � Nike started a social community on Loopd to connect athletes interested in surfing, BMX bike racing and  similar activities with the brand. � SAP sponsored a global survey of social media professionals to learn more about social media  worldwide. � Sears partnered with MTV to create a social network around Back to School shopping. � Southwest Airlines employees share their stories and communicate directly with customers through the  “Nuts About Southwest” blog. � Sun CEO Jonathan Schwartz’s blog is the example most often cited for what the CEO blog can be. � Starbucks started MyStarbucksIdea so that customers can submit ideas for the company which are then  voted on by other users, the best of which will be implemented by the company. � Toyota started its own virtual world to promote its products in Japan (site is in Japanese). � Visa launched The Visa Business Network application on Facebook to connect small business users  and to help them promote their businesses to a larger community. � Wells-Fargo blogs target two audiences; one examines the company’s history and the other is for students  interested in getting their finances in order. � WWE has a Facebook application, among other social networking tools and widgets, to bring fans closer  to the action. � Xerox blogs address several of the company’s core B2B constituencies. � Zappos uses Twitter for employees to communicate with Zappos customers about their shared love of 
  12. 12. footwear  � Dominos Pizza credits Foursquare with its UK sales growth.  � Monique’s Chocolates in Palo Alto used Foursquare to acquire 50 new customers.  � Highland Brewing, a microbrewery in North Carolina, turned to social media to build stronger  relationships with beer drinkers. Sounds tough  � Old Spice creates personal videos for its Facebook fans and posts them on YouTube.  � Norman Regional Health System in Oklahoma spends 30 minutes a day on Twitter and Facebook.  � The Red Cross uses tools like Flickr and blogs to connect directly with their supporters.  � Colgate used social media to drive engagement and purchases worldwide.    � Land of Nod uses online customer reviews to strengthen its community and  product offerings (VIDEO).  � Cisco continues to evolve its social media practice, creating snackable content internally for its employees.  � Vitamin Water let its fans create a new flavor on Facebook.  � Dreyer’s leveraged characters from their “Share the Love” campaign to create a mobile game for the  iPhone.  � HP’s viral video campaign has some solid social media metrics behind it.  � The Asia Foundation of San Francisco used Facebook for its recent Books for Asia campaign.  � The NBA used social media (Twitter, Facebook, Gowalla) during the NBA Finals.  � JetBlue uses Twitter very successfully for customer service support.  � Xerox uses social media as part of a product launch (VIDEO – start watching about 2:30 in).  � The Brooklyn Museum created a page to connect its Foursquare community.  � Leo Burnett’s use of Twitter during Cannes garnered more publicity for the firm than any other stunt  in company history.  � Spanish shoe company Munich uses its social media presence on Facebook to bring together its  community in the real world.  � Wells-Fargo uses social media during a financial crisis (VIDEO).  � Pb Elemental Design is an architecture firm in Seattle that focused on buildings its social media presence  on Facebook.  � Intel explains how it has leveraged Facebook to grow their fan base to more than 115,000 fans.  � Sharpie has some nice examples of how to make social media work on a small budget (VIDEO).  � A luxury hotel in Greece used social media to increase all of its web marketing goals.  � Rapper Snoop Dogg made over $200K selling branded clothing in virtual worlds.  � Warner Brothers provides a case study of how NOT to engage bloggers and how NOT to react when your  strategy misses the mark.  � NPR shows how and when their listeners access their content on mobile platforms with lots of numbers.  � Air Canada learned a tough lesson about monitoring Twitter and how a crisis can easily escalate.  � Mazda launched a Facebook game to promote its new car.  � Chesapeake Energy Corp. uses a host of social media tools to stay closer to its customers.  � Punch Pizza in The Twin Cities uses Flickr, Facebook and Twitter to sell more pizza.  � Einstein Bagels used Facebook to distribute a coupon, and to keep their fans abreast of updates when the  coupon link didn’t work.