Riding Wave Social Networking 24 Mar 2009

Riding the Wave of
Social Networking
Insights and Tactics for Publishers, Marketers
and Agencies

Jon Gibs, VP Media Analytics
jon.gibs@nielsen.com

Alex Burmaster, Communications Director, EMEA
alexander.burmaster@nielsen.com

© 2009 The Nielsen Company
www.nielsen-online.com / www.nielsen.com

Social Networking is Big…

Global Active Reach Global Active Reach 2 Month
Rank Sector
Dec 08 Feb 09 % Point Change

1 Search 85.9% 86.4% 0.5%
General Interest
2 85.2% 86.2% 1.0%
Portals & Communities
Software
3 73.4% 72.8% -0.6%
Manufacturers

4 Member Communities 66.8% 68.4% 1.6%

5 E-mail 65.1% 64.8% -0.3%

Source: Nielsen Online, NetView, Home & Work, including applications, © 2009 The Nielsen Company
December 2008 - February 2009 www.nielsen-online.com / www.nielsen.com

Social Networking is Big…Everywhere

Composition of UK Active Unique Audience: January 2009

¹Global = USA, Brazil, United Kingdom, France, Germany, Italy, Spain, Switzerland, and Australia

December 2007 – December 08 www.nielsen-online.com / www.nielsen.com

U.S. Experiencing Comparably Low Growth
12.5%

10.3% 9.9% 9.9% 9.6%

5.4% 4.9%

2.9% 2.7% 2.6%
1.4%

Percentage point increase in active reach of ‘Member Communities’

December 2007-December 2008 www.nielsen-online.com / www.nielsen.com

So, Why is it So Big?
• Emotional need/desire to be heard
• Desire to connect with one another
• Need to create and make change
• Evangelize for the things and people we love
• Quest for authenticity
• Ease of Use / Low Barriers to Entry / Technology

“…from the futile aspirations of the everyman to break out of his lonely
anonymous life of quiet desperation, to step in front of the whole world and be
somebody, dude.”
Bob Garfield, Wired

“Everyone in the back of his mind wants to be a star.”
Chad Hurley: Co-founder, YouTube


CGM Creating a Continental Shift in Time Spent…
6%
5% 6%
EU US
4%
3%
2% 3%
1% 1% 0% 0% 0% 0%
0%
‐1% ‐1% ‐1%‐2% ‐1% ‐1% 0%
‐2%
‐3%
‐4% ‐5%
‐5%

Percentage Point Change in Allocation of Home Internet Time

February 08 – February 09 www.nielsen-online.com / www.nielsen.com

…More So in Europe than the U.S.

100% 4%
4% 4%
3%
7% 5%
90%
14% 11% Videos/Movies
80%
Search
70% 19%
19% eCommerce
60%
CGM
50% 20%
24% Entertainment
40%
Communications
30%
Content
20% 28% 39%

10%
0%
EU
US

How Home Internet Time is Allocated

February 2009 www.nielsen-online.com / www.nielsen.com

Globally - 35-49 Year Olds Fastest Growing
Audience…
12
)
s
n Female
o
i 10
l
6.1
l
i
m
(
Male
e 5.7
c 8
n
e
i 5.7
d
u
A 6
e
u
q
i
n
U 4
5.2
n
i
e
s
a 2 3.3 1.4
e
r
c 0.6 2.6
n
I
1.1 1.3
0
2 - 17 18 - 34 35 - 49 50 - 64 65+
Increasing Global Unique Audience to Member Community Sector

December 2007 – December 2008 www.nielsen-online.com / www.nielsen.com

…However, in the U.S., it’s 50-64 Year Olds
12
3.0
)
)
s
s
n
n
o Female
Female 6.1 2.5
o 2.5
i
i 10
l
l
l
i
i Male
Male
m
m
(
(
e 2.0
e
c 5.7
c 8
n
n
e
e
i
i
5.7
d
d 1.5
u
u
A
A 6
e
e
u
u 1.0
q 0.2
q
i
i
n 5.2 0.7
U 4 0.9
n 0.5
i
e 0.3 0.4
s
g
a 3.3 0.4 1.4
n 2
e 2.6
a 0.0
r
n
c -0.1
0.6 -0.1
n
C
I -0.2
1.1 1.3
-0.5
0
2 -- 17
2 17 18 - 34
18 35 - 49 50 - 64 65+

Changing U.S. Unique Audience to Member Community Sector

December 2007- December 2008 www.nielsen-online.com / www.nielsen.com

Consequently, the Older Shift is More
Pronounced in the U.S…
10%
7% 7%
Global US
4%
2%

‐1% ‐1%
‐4%
‐6%

‐9%
2 ‐ 17 18 ‐ 34 35 ‐ 49 50 ‐ 64 65+

Changing Composition of Member Community Audience

Source: Nielsen Online, NetView, Home & Work, including © 2009 The Nielsen Company
applications, December 2007 – December 2008 www.nielsen-online.com / www.nielsen.com

…U.S. Over-Indexes on 50-64s & Under-
Indexes on 18-34s

100% 6%
8%
90% 20%
80% 24%
65+
70%
30% 50 ‐ 64
60%
29% 35 ‐ 49
50%
40% 18 ‐ 34
29%
30% 23% 2 ‐ 17
20%
15%
10% 16%
0%

Global
US
Composition of Active Unique Audience to Member Community Sector

Source: Nielsen Online, NetView, Home & Work, including © 2009 The Nielsen Company
applications, December 2008 www.nielsen-online.com / www.nielsen.com

Why Has Facebook Done So Well?

• Simple design
• Broad appeal
• Focus on connecting
• Architecture
• Walled Garden
• Media coverage


Orkut is Brazil’s 3rd Biggest Brand

Active Time
Network
Reach Per Person

Orkut 70% 4:16:22

MySpace 4.2% 00:11:34

Facebook 3.5% 00:21:36

Source: Nielsen Online, NetView, Home,
including applications, February 2009

Local Language Dominant in Germany

Active 9-Month Unique Time Per
Rank Network
Reach Audience Growth Person
1 Stayfriends 12.6 82% 0:21:16

2 Wer-kennt-wen 12.2 55% 2:34:09

3 studiVZ 10.4 3% 1:58:16

4 MySpace 9.0 6% 0:36:27

5 schülerVZ 8.9 6% 1:21:00

6 Facebook 7.0 263% 2:24:17

Source: Nielsen Online, NetView, Home data, © 2009 The Nielsen Company
including applications, May 2008 - February 2009 www.nielsen-online.com / www.nielsen.com

The Mixi Story in Japan
YoY Unique Time per
Network Active Reach
Audience growth person
mixi 14% 17% 1:56:05

Lococom 2% 8% 0:06:07

Kanshin-kukan 2% -13% 0:01:11

edita 2% 68% 0:09:17

MySpace 2% 23% 0:14:07

Facebook <1% n/a 0:38:11

Source: Nielsen Online, NetView, Home data, including © 2009 The Nielsen Company
applications, December 2008 www.nielsen-online.com / www.nielsen.com

Seriously, What is the Problem with Social
Media?

Safety?

Context?

Advertiser Control?

Hard to Buy?


Once You Move Past The Excuses,
There Are Two Issues

• Not all social media is the same…and only some is actual
media
• Measurement has not kept the pace with technology


What Is The Difference Between
These Two Properties?

Media
Time Per Person

Communications

Nielsen Online NetView (2/09) © 2009 The Nielsen Company

So Let’s Deconstruct Social Media…
“Email/VOIP”

“Communications”

Microblogging (Twitter, etc)
Social Networks
Viral Video
“Amateur” “Professional”

Blogging
Widgets
PodCasting

“Media”

“Standard Media”


Now To The Monetization Part

Communications

Amateur Professional

Media


Measuring the Effectiveness of CGM:
Treating Blog Mentions as Ad Impressions

Metered Surfing Behavior

Q: What can we show?
A: Reach, frequency, placement influence, CPG ROI (via NetEffect), GRPs, demographics,
branding lift (via survey) or any other metric that would be associated with advertising measurement
Q: Where are we now?
A: This will require Buzz Reach 2.0 to be put into place. Also, automated sentiment is likely
required. We are currently working through the process with both the Buzz and MegaPanel
engineering team for the phase without sentiment. Likely launch in 1/09. With sentiment it may be
later.


BuzzReach Methodology
1.) Buzz

2.) Panel

3.) Calculation


Overall Reach, Frequency and GRP by Query

Buzz Query BuzzReach Reach % Impressions Average GRP
Frequency
“Pacer” 383,501 .22% 530,748 1.38 .304
“AMC” 263,970 .15% 378,812 1.44 .216
Hybrid
“Geo Cell” 65,323 .04% 78,054 1.19 .048

Nielsen Online BuzzReach (1/09)

BuzzReach RF vs. NetView Web RF
Impressions Total R/F/GRP Target R/F/GRP
Audience Audience
Total Target % in % of 2+ % of
Reached Freq GRPs Reached Freq TRPs
[000] [000] Target Univ. Target
[000] [000]

Comcast.net 132 52 39 129 0.07 1.03 0.07 51 0.06 1.02 0.06

MSN/Windows Live 35 19 54 35 0.02 1 0.02 19 0.02 1 0.02

AutoTrader.com 135 53 39 125 0.07 1.08 0.08 50 0.06 1.05 0.07

AutoMart.com 415 242 58 209 0.12 1.98 0.23 118 0.15 2.04 0.3

Photobucket 189 93 49 177 0.1 1.07 0.11 86 0.11 1.08 0.12

Sum/Average 906 459 51 666 0.37 1.36 0.5 320 0.4 1.43 0.57

“Pacer” BuzzReach 531 271 51 384 .22 1.38 .304 191 .24 1.42 .35

Nielsen Online BuzzReach/WebRF (1/09) www.nielsen-online.com / www.nielsen.com

Now to the Monetization Part

Communications

Amateur Professional

Media


How do we Better Identify Influencers?
Step 1: Build classifiers to identify the consumers discussing the client’s brand
using Nielsen Online’s proprietary software and database of thousands
of communities

Step 2: Augment list using Nielsen Mega Panel traffic data

Step 3: Create list of most influential authors discussing the client’s brand
based on the audience reach, relevance of messages, robustness of
posts and knowledge of gaming computers

Step 5: Investigate each influencer to determine qualitative findings,
demographic information, contact information and presence on the Web

Step 6: Rank each influencer based on a weight system for the following
metrics: Sentiment toward the client’s brand, Influencer Segment,
Buzz*Reach, Unique Audience, Average Time Per Visit, Total Posts,
Relevance and Online Presence


Managing Influencers - Key Principles
All consumers are not created equal, and influencers differentiate themselves from
“typical” consumers because of their innate desire to speak out and be heard, and to
ultimately impact the behavior of others in their social networks. As such, they must be
carefully managed, and brands must develop intelligent frameworks for pinpointing and
managing such consumers.

• You can't buy their love: Core influencers can’t be bought. They take pride in appearing objective
and impartial.
• Consumers can smell a rat a mile away: Many consumers get it. They know their neighbors, and
they can sniff out an imposter faster than an e-mail virus.
• If you are sincere about fixing the problem, they’ll respect you: Company advocates that enter
message boards to proactively address an issue in a genuine way rarely lose with consumers. “I’m
sorry” goes a long way.
• Consumers own the controls: As companies and brands migrate to the Internet space, they
often carry over the wrong assumptions about how much they can control the consumer. The reality
is that brands have far less control; even the most successful communications effort is not going to
change that.


Conclusions
• Audience:
• Social Media is a significant and growing online trend. The U.S. is a large market, but
neither the largest, or the fastest growing. Indeed, America has not yet hit its peak
• 35 to 49 years olds are the fastest growing audience globally, although the U.S. skews
older

• Success Stories:
• Simplicity, communication/connections and a broad appeal has driven Facebook’s
growth
• However, localized Social Media sites site as Mixi in Japan or Stayfriends in Germany
drive more localized networks

• Monetization:
• Once you move past the excuses, metrics and an inability to correctly segment the
needs of different types of networks have hindered monetization
• To correctly segment the market, advertisers and agencies should segment properties
by their role as a communication platform or a media platform and develop different
strategies around outreach and advertising that is customized to the strengths of
different platforms


The Nielsen Company’s Global Footprint
Nielsen Company
offices
Nielsen Online
local products

• Nielsen
coverage in
more than 100
countries

• Nielsen Online
measures 95%
of global
Internet ad
spend

l

Specific Market Presence


About Nielsen Online
Nielsen Online, a service of The Nielsen Company, delivers comprehensive, independent
measurement and analysis of online audiences, advertising, video, consumer-generated media, word
of mouth, commerce and consumer behavior, and includes products previously marketed under the
Nielsen//NetRatings and Nielsen BuzzMetrics brands. With high quality, technology-driven products
and services, Nielsen Online enables clients to make informed business decisions regarding their
Internet, digital and marketing strategies.
For more information, please visit www.nielsen-online.com
Also, visit our blog at www.nielsen-online.com/blog

About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in
marketing and consumer information, television and other media measurement, online intelligence,
mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter,
Adweek). The privately held company is active in more than 100 countries,with headquarters in New York, USA.
For more information, visit www.nielsen.com


Riding Wave Social Networking 24 Mar 2009

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