1) Social media is shifting communication from broadcast to bidirectional and communities will create 25% of content. 2) By 2012, companies are predicted to spend more on word-of-mouth ("conversational media") than traditional media. 3) To succeed, brands must start by asking "what can my brand do for social media communities?" rather than what communities can do for the brand. Providing value to communities will be the new cost of distribution.

1. Listen & Connect
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Thomas N. Burg
Image htp://14799.openphoto.net
http://socialware.at | Consulting
BlogTalk Asia, Jeju 2009

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© http://www.benckenstein.com/social-media/interruption-vs-engagement-marketing/

3. Diagram: B2C Value Creation
N
m Business Advertising Population Reached
(with a proportion influenced)
nly
This communication model allows a marketer to
count how many people will receive the message,
and measure the number of people influenced (the
value created).
Classic Communication

4. Diagram: C2C Value Creation & the Momentum Effect
Impact
Influenced to visit brand community. repeats
Some pass along to others. as pass Each interaction
along is an impression
continues
Pass along
content
Don’t visit brand custom community,
but positively influenced.
Some pass along to others.
If the message doesn’t stop once communicated to The B2C value creation
consumer (as in “the momentum effect”), it means we remains a legitimate part of Marketing. SN complements
need a new model for measuring value creation that and extends the impact further than traditional marketing
adds in the consumer to consumer component. could go by activating C2C activities.
B2C2C = Momentum Effect
B2C + C2C = Value Creation In addition to the new model of “B2C + C2C = value
creation,” SN becomes part of the product experience,
The momentum effect: The activation of consumers and the value of SN extends to increases in advocacy
to tell their own personal stories using your brand as and loyalty.

5. Social Media
?
B2C -> [2C]
Image: http://15530.openphoto.net

6. Communicate
Innovate Lead
Network

7. Where to
begin?
Image: http://15530.openphoto.net

8. Customer Service is
the New PR
Steve Rubel, SVP Edelman

9. alk
t
to
y
ead
R

10. Generation C
Age Activity
✴ Community
✴ Connectedness
✴ Collaboration
✴ Creativity

11. Base: SN users age 14-40 (n=2,605), Top 2 box scores (3 point scale 1=do not agree at all, 3=completely agree)
— I am never bored when using it... 73%
— There are just so many things to do on this site... 66%
— The site adds fun to going out...
56%
48%
— With SN, I’ve been having more fun in life in general...
— With SN, I’ve been more plugged into the music scene...
47%
— With SN, I’ve felt more on top of trends and what’s new...
46%
— It makes my life more exciting... 45%
— With SN, I’ve discovered brands and products that I really like... 40%
Brands & Products
15!"Never Ending Friending Research Summary, April 2007
Source: Never Ending Friending, 2007
Fox Interactive Media

12. Friending is the next advertising
In the emerging “Friendonomics” of social networks, stuff you need to know.” Across markets, social
Friendonomics
users are making meaningful connections with the
groups, bands, brands and clubs that create a
two-way street of value. As one respondent observed,
“Friends don’t waste your time. But they do tell you
networking users consistently expressed their desire
for brands and organizations to treat them less like
customers…and more like friends.
“Having Puma as a friend is pretty cool. You get some online sales
or whatever since they’re kind of expensive. You can see what kind
of shoes they have.”
— Claire, 18, Chicago
“I don’t want companies to advertise to me. I want them to be my friend.”
— Rob, 27, Los Angeles
“Having a brand like Gibson or Nike as a friend would be cool.
It’s an allegiance kind of thing.”
— Matthew, 25, Chicago

13. Future
Conversations
It’s going to be fast-paced, bit-sized, and is
shifting from broadcast concepts to bi- or even
mulitdirectional usage patterns
25% of entertainment (or content) will be created and
consumed within peer communites.
Nokia Report, A Glimpse of the Next Episode, 2008

14. What do I
tell
companies?

15. PREPARE
Companies are predicted to spend more on
“conversational media” (as word of mouth is
sometimes called) than on traditional media
by 2012.
Even if it takes a decade longer than that, now
is the time to start planning for the changing
landscape.
Foundations aren’t built overnight.
Dave Balter, WOM Manual 2008

16. Be Part of It
15 percent of our daily conversations
have some product- or service-
related content.
Dave Balter, WOM Manual 2008

17. not what social media communities can do for
your brand — but what your brand can
do for social media communities?
Advertisers need to start with this question
and work backward to marketing goals.
Providing value to social media communities
will be the new cost to distribute
marketing messages in the social
media OS. http://blogs.mediapost.com/spin/?p=1049 , Joe Marchese

18. Peers
Task for communication pros
Clients Find
Opinion Leader

19. Measure Listen
How?
Interact
Create
value

20. Give up Equal level
Control
Rules
Don't sell
Experiment

21. Socialware Consulting
Thomas N. Burg
twitter.com/thobu