The document discusses social networking and social media. It covers five eras of the social web, the rising share of online commerce, examples of social commerce platforms like Facebook shopping, and the outlook for mobile commerce. It also discusses social media marketing best practices for companies like Starbucks, SAP, and Dell. The document provides tips for effective social media marketing on Twitter and ways that social media is changing business models from selling to connecting.

1. Social Networking
and Social Media
May 2010
Sangki Han, Ph.D.
Professor / GSCT
KAIST
1

2. Social Commerce
2

3. Five Eras of the Social Web
3

4. Share of Online Commerce
Online Commerce Gaining Share vs. Offline –
Online at 4% of USA Retail, Mobile Should Get to Same Level Much Faster
USA eCommerce % Share(1) of Total Retail Sales, CQ3:00 – CQ4:12E
6%
eCommerce
Penetration
4% in CQ3:09
5%
eCommerce as % of Total Retail Sales
4%
3%
Mobile
eCommerce
2% Penetration?
1%
0%
Q3:00 Q3:01 Q3:02 Q3:03 Q3:04 Q3:05 Q3:06 Q3:07 Q3:08 Q3:09 Q3:10 Q3:11 Q3:12
eCommerce Penetration Linear Trendline (y=0.0913x + 0.9958, R^2=0.9574)
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4

5. Amazon in 2009
Amazon.com Revolutionizing Commerce –
With Constant Product Improvements
Amazon.com in 1995 Amazon.com in 2009
Search 1-Click Same Day …Or Free
Suggestion Purchase Shipping… Shipping
Mobile Customer Recommend- 3rd-Party
Barcode Scan Review ation Engine Selling
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5

6. f-commerce
• Facebook-powered social shopping
http://www.youtube.com/watch?v=Ed5vJeaEuzA&feature=player_embedded
6

7. Mitch Joel on Social Commerce
• Six Pixels of Separation
• Reboot digital marketing - promote real communication between real people
• Social media is about enabling and empowering people to share things and thus
making them more find-able to others
• Social media is not about tomorrow’s shoppers, it’s about today’s shoppers
• Social media transforms e-commerce by changing peoples’ expectation -
shoppers expect social features
• Social media can build brands and margins
• Together, social and mobile technologies have a transformative effect on e-
commerce
• Focus on who you reach, not how many people you reach; brand fans and
category influencers
• Simplicity is the key to success
• Building a social media strategy
7

8. Examples of Social Commerce
8

9. Rising of Mobile Commerce
Mobile Commerce Outlook = Japan Shows Way –
19% (and Rising) of Rakuten’s CQ4:09 Online Commerce Revenue Derived from Mobile
Rakuten’s Online Commerce Revenue, Desktop vs. Mobile, 2004-2009 CQ4:09
Y/Y Growth
$1,200
Desktop eCommerce Revenue ($MM) Total
Rakuten
Mobile eCommerce Revenue ($MM) Online
$1,000
Rakuten eCommerce Revenue ($MM)
Commerce
% Mobile Share of Total eCommerce
18%
$800
Desktop
$600
15%
$400
Mobile
$200 33%
18%
4% 7% 14% 16%
10%
$0
C2004 C2005 C2006 C2007 C2008 C2009
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9

10. Mobile Revolution
Mobile Revolutionizing Commerce –
With Constant Product Improvements
! Location-Based Services – Enable real-time physical retail / service opportunities
! Transparent Pricing – Instant local + online price comparison could disrupt retailers
! Deep Discounts – Invitation-only time-based selective sales gaining traction
! Immediate Gratification – OTA (over-the-air) instant digital product + content delivery
Location-Based Services Transparent Pricing Deep Discounts Immediate Gratification
Priceline.com iPhone App ShopSavvy Android App Gilt iPhone App iTunes Store on iPhone
Finds hotel deals Comparison shopping Designer handbags Music / video / apps
in your area among online + local stores Up to 70% Off delivered wirelessly
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10

11. Social Media
Marketing
11

12. Marketing 2.0
Focus on “Social” in social media
not “Media’
12

13. Global Brand Engagement
Figure 3: brands fall into one of 4 quartiles
High Engagement
Mavens
• High presence
• High engagement
Wallflowers Butterflies
Low Engagement
• Low presence • High presence
• Low engagement • Low engagement
One Channel Many Channels
[Wetpaint/Altimeter Group ENGAGEMENTdb Report]
High Engagement
Selectives Mavens
• Auto (1) • Leisure (3)
• Bus services (1) • Manufg (1) • Auto (2) • Leisure (1)
• Cons elec (2) • Media (1) • Bus services (1) • Media (4)
•
•
Cons prod (1)
Financial (1)
•
•
Retail (3)
Tech (1)
13 •
•
Cons prod (1)
Food (1)
•
•
Retail (2)
Tech (5)
• Food (1)

14. Engagement Scores for the World’s Top
100 Brands
[Wetpaint/Altimeter Group ENGAGEMENTdb Report]
14

15. Best Practice: Starbucks
• Small social media team with only six people
• MyStarbucksIdea.com
- mini-Starbucks card suggested by a customer in 2008
• Facebook.com/starbucks in 2008
- A combination of Starbucks generating content and
customers sharing their enthusiasm
- 5.9M members
• Twitter/starbucks
- Channel to deliver timely customer support and spread
word about the latest breaking news and contests
- One person and 783,210 followers / 83,542 following
15

16. Top 10 Facebook Pages
16 SPRING 2010 GCT784

17. 17

18. Best Practice: SAP and Dell
• SAP
- SAP Community Network (SCN)
✓ Blogs, wikis, discussion forums
- Twitter
✓ “Talk with us, we want to learn”
• Dell
- Forged by crisis - from “Dell Hell” in 2005 to flaming laptop in 2006
- Focus on a dialogue with bloggers
- IdeaStorm - a blog
- Multiple Twitter accounts
- Make social media part of the job
- Synchronize content across channels
18

19. 19

20. 20

21. Tips for Effective Marketing with Twitter
#1 Know the rules: Get to know your neighbors
#2 Connect person to person: People don’t talk to brands, they talk to people
- Build trust in the conversation
#3 Create a conversation:Twitter is a two-way street
- Social media is not building a channel
#4 Promote a dedicated ambassador: Make Social Media a part of your plan
- A single person internally to act as a social media liasion
- Rules of engagement, guideline
#5 Have something to offer: Give people a reason to follow you
- Attention on influencers - Invite them to your private product launches, let them contribute to
new feature requests, ask them how you can improve
#6 Twitter and your website: Integrate your messaging
#7 Tracking Conversations: Listen and Learn
- Robert Gourley, Creative Director at Mojave
21

22. 4 Ways Social Media is
Changing Business
From: Soren Gordhamer @ Mashable
• From “Trying to Sell” to
“Making Connections”
• From “Large Campaigns”
to “Small Acts”
22

23. 4 Ways Social Media is
Changing Business
• From “Controlling Our
Image” to “Being
Ourselves”
• From “Hard to Reach”
to “Available
Everywhere”
23

24. Social Media Engagement
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25. Type of Engagement
25

26. Social Media in Enterprise
26

27. Social Media Channels
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28. Top 5 Business Blogging Mistakes
• Treating Your Blog Like a Press Center
• Not Blogging Regularly
• Not Enabling Conversation
• Making New Content Hard to Discover
• Expecting Too Much, Too Soon
- From Mashable.com
28

29. Socialnomics
29

30. Thank you and meet me at
Facebook: stevehan
Twitter: @steve3034
socialcomputing.tistory.com
30

31. Appendix
31

32. Social Computing
in Korea
• SIG on Social Web (2009)
• Social Computing Lab at GSCT (2009)
• SYMCT on Internet, Society, and Humanity (2009)
• Seminars, Invited Speech, Workshops at
HCI2009,KCC, HSN2010, ICAT2010, Samsung
Electronics, Ahn Lab, NHN, ...
• Special Issue on Social Computing from KIISE
Magazine (March, 2010)
32

33. Lectures at KAIST
• Introduction to Social Computing (GCT673, Fall)
• Topics in Internet Industry (GCT784, Spring)
- Virtual Community (2008)
- Social-Aware Ubiquitous Computing (2010)
• Digital Psychology (GCT711, Spring)
• Network of Things (CS340, Fall 2010)
• Graph Theory, Algorithm, Data Mining
33

34. (LG )
THE BLOG (http://blog.lge.com)
LG ,
,
-2009 3
-2009 12
-2007
-LG PR / LG
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,
* 2009 TOP 1 ,
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35. (KT)
olleh KT (http://blog.kt.com/)
/
-2009 7
-2009 11 (Olleh KT) , QOOK,
SHOW , 4 ,
- ,6
- & ( )
* , , , , , ,
, K IT/ 24 , ZDNet Korea

36. ( )
Turn On Tomorrow(http://www.samsungtomorrow.com)
‘ ’
,
-2010 2 3 (with TNM)
-2010 2
- / ( , / (YEPP)
- , , ,
( 60
)
- LG LG