Social Media Evolution - Revolution - So What?

Social Media:
Revolution, evolution...
...and so what?

Tommi Pelkonen
Strategist @ Frantic
April 29, 2010

perjantaina 8. lokakuuta 2010

Frantic - leading Finnish digital agency


Tommi Pelkonen - Digital Strategist @ Frantic

• Born 1971, married, daughter
• M.Sc. (Econ.): 1999, Helsinki School of Economics, HSE,
International Business, Finance & Accounting,
Information Technology
• 2008-2010: Business Consultant at Finpro Budapest in
ICT/software business
• 2005-2008: Strategist at Satama Amsterdam
• 1999-2005: Business Consultant at Satama Helsinki
• 1996-1999: Research at the HSE Electronic Commerce
Institute, focus: digital media service companies
• Lecturer and author of several publications & articles in
the ﬁelds digital media, internationalisation of SMEs
and service business


Today we’ll be talking about…

• RATIONALE: What is social media? Why social media
matters?

• US AND OUR BEHAVIOUR: What kind of consumer
trends is deriving from social media?

• BUSINESS: How should companies react? What are the
threats and possibilities of social media for companies?

• LEARNINGS: How to succeed in social media?


1 2 3 4

WHAT IS SOCIAL MEDIA?

Photo by transCam:
http://www.ﬂickr.com/photos/transkamp/54371294/


What is social media? 1 2 3 4

According to Wikipedia (2009)…




• ” Social media supports the human need for social
interaction with technology, transforming broadcast
media monologues (one to many) into social media
dialogues (many to many)...”




• … ” It supports the democratization of knowledge
and information, transforming people from content
consumers into content producers.”




• … ” It supports the democratization of knowledge
and information, transforming people from content
consumers into content producers.”

Note, that companies shouldn’t see
social media as just dialogues
between customers, but as dialogues
between the brand and persons.



Social media is global conversation
that takes place online



In practice we’re talking about…
• Social networking sites
(Facebook, LinkedIn, Ning, Bebo…)

• Blogs (WordPress, Blogger, TypePad, LiveJournal, Vuodatus…)
• Microblogging
(Twitter, Tumblr, Brightkite, Qaiku, Facebook statuses…)

• Social bookmarking (Delicious, Digg…)
• Media sharing & streaming
(Flickr, YouTube, Vimeo, Qik, Livestream…)

• Wikis, Review sites, Virtual worlds, online
gaming, Podcasts, Event sites etc. etc.
• Co-creation and crowdsourcing
•

+ a endless amount of mashups & other stuﬀ



Instead of old model…
… where the brand is broadcasting to the consumers…

THE
BRAND

SHOUT / BROADCAST

CONSUMER CONSUMER
CONSUMER
CONSUMER
CONSUMER CONSUMER
CONSUMER CONSUMER
CONSUMER



… the social media is like this…
1. Shift from one dimensional passive consumers into
multidimensional active persons.

PERSON

MEMBER
USER PRODUCER CUSTOMER CONSUMER
of community



… and like this.
1. Shift from one dimensional passive consumers into
multidimensional active persons.
2. Shift from broadcast media monologues into social
media dialogues

PERSON

LISTEN & PERSON
PERSON
DISCUSS

THE
PERSON
BRAND
PERSON PERSON

PERSON PER

PERSON


Social media has ﬁve main layers and eras
in it - there is history, too!



Major hype emerged around social
media from 2007 onwards



Hype around ”Anything 2.0” is calming down and
we are about to see real business usage of it soon

Source: Gartner, 2009


Some real numbers and forecasts about
social media and busines impact of it


1 2 3 4

WHY SOCIAL MEDIA MATTERS?

Photo by by birgerking:
http://www.ﬂickr.com/photos/birgerking/3145391821/


Why social media matters? 1 2 3 4

13 hours of video material updated to YouTube every minute

Photo by by Auntie P:
http://www.ﬂickr.com/photos/auntiep/3708440426/



13 000 000 articles available on Wikipedia

Photo by quartermane:
http://www.ﬂickr.com/photos/mikeeperez/2453225588/



3 600 000 000 photos archived on Flickr (June 2009)

Photo by m!les:
http://www.ﬂickr.com/photos/awayken/90943453/



20 000 000 tweets per day on Twitter (Sep 2009)

Photo by carrotcreative:
http://www.ﬂickr.com/photos/carrotcreative/2511539541/



120 000 000 users each day visiting Facebook (Summer 2009)

Photo by Amit Gupta:
http://www.ﬂickr.com/photos/superamit/1174257667/



1 000 000 000 pieces of content shared each week on Facebook
Photo by smileham:
http://www.ﬂickr.com/photos/smileham/3387867021/


9 hours of media consumption / day
22% used to social media (2009)



65 000 000 users accessing Facebook through their mobile devices



BUT ALL THE

NUMBERS ARE

IRRELEVANT.
FORGET THEM.


INSTEAD, photos archived on Flickr (June 2009) OF
3 600 000 000
WE SHOULD THINK
THE MEANING
OF THIS ALL



Networked way becomes natural way
• As social media becomes customary way of
communicating and participating, it will
inevitably reshape the way we see the world.

PERSON

PERSON
PERSON

THE
PERSON
BRAND
PERSON PERSON

PERSON PER

PERSON


From fragmented audiences
to fragmented communities

PERSON

MEMBER
of commun



• People will consider themselves as
part of communities, rather than
part of audiences.

PERSON

MEMBER
of commun



part of audiences.
• People don’t want to be treated
like audiences anymore PERSON
• Passive media consumption will exist
(it may be popular even), but people
want to make the choice of their
activity level themselves

MEMBER
of commun



part of audiences.
• People don’t want to be treated
like audiences anymore PERSON
• Passive media consumption will exist
(it may be popular even), but people
want to make the choice of their
activity level themselves
• What are communities
organized around? USER PRODUCER CUSTOMER CONSUMER
MEMBER
of commun
I. Shared values
II. Shared interests
III. Shared beliefs



The experience triangle

Fitting the user needs (utility)

In
the
past
Pleasurable experience Easy to use
(satisfaction) (usability)

Even this should tell us that
we need to focus on making things right





!
In
I tell to 4 persons
the
past






! "
In
I tell to 18 persons
I tell to 4 persons
the
past






Today


BUT:





!
I tell to 6 persons Today


BUT:





! "
I tell to 6 persons Today I tell to 40 persons
and broacast it to all my
connections


BUT:



Losing of control

• Example:

• Domino's Pizza is an american international
fast food pizza delivery corporation. There are
currently about 8,500 corporate and
franchised stores in all 50 states and 55
countries.
– Wikipedia

Photo by Just kronis!:
http://www.ﬂickr.com/photos/kronis/3465297614/



Losing of control

• Example:

• Domino's Pizza is an american international
fast food pizza delivery corporation. There are
currently about 8,500 corporate and
franchised stores in all 50 states and 55
countries.
– Wikipedia

2 of Domino’s Pizza employees got bored and filmed a
nasty prank at restaurant’s kitchen.

They uploaded the video to YouTube.

In a matter of days, thanks viral social media, the clip
had been viewed more than a million times.
References to it were in five of the 12 results on the first
page of Google search for “Dominos”. Photo by Just kronis!:



Losing of control




Losing of control

• Losing control don’t mean you
couldn’t aﬀect it at all.




Losing of control

• Losing control don’t mean you
couldn’t aﬀect it at all.
• It’s better to be in Social Media before
you have crisis



Losing of control



Losing of control
• Companies have already lost control
over their brands and communications
around them –
or at least they will!
• You’re on mercy of your
customers, so take
good care of them.



Key people are outside looking in



• Customers are company’s best (or worst)
spokesmen



spokesmen
• Shift from management to ”fanagement”



spokesmen
• All eﬀorts should be addressed to empowering
clients instead of brand controlling



spokesmen
• All eﬀorts should be addressed to empowering
clients instead of brand controlling
• Make people your marketers and co-producers



Empower people – they’ll return the favor



• Ask not how you can make beneﬁt for your
company – ask how you can make beneﬁt
for your customers



for your customers
• Future of marketing will be about doing
things with and for people =
COLLABORATIVE



for your customers
COLLABORATIVE
• Facilitation will lead to engagement



for your customers
COLLABORATIVE
• Facilitation will lead to engagement

” The best way to get people to do stuﬀ with
you, is to ﬁrst join them in what they are
doing!”
–
Paul Isakson


1 2 3 4

WHAT TO DO?

Photo by djking:
http://www.ﬂickr.com/photos/djking/3244795479/


What to do? 1 2 3 4

The brand and marketeer is challenged
with overload of media to use & master

Rossiter, J. R., & Danaher, P. J. (1998). Advanced media planning. Boston: Kluwer Academic.

KEY TO SUCCEESS: FOCUS!


What to do? 1 2 3 4

Marketeer will need to focus to create a
solid strategic and operational approach

New approaches needed for planning
marketing and customer operations

What to do? 1 2 3 4

EXAMPLE: At Frantic we use our own
”REAN”-framework to plan activities

conversion point
RETENTION MARKETING

conversion point

BRAND
/CONSUMER/
CUSTOMER
conversion point

SERVICE SALES

conversion point

We design services to boost the ﬂow between
the phases and measure the impact

What to do? 1 2 3 4

Serious considerations for companies


What to do? 1 2 3 4

ASK: ”HOW CAN I HELP YOU?”

Photo by Jeff Sandquist:
http://www.flickr.com/photos/jeffsand/1133352230/


What to do? 1 2 3 4

ASK: ”HOW CAN I HELP YOU?”
• Less brand making
• More facilitating
• More inviting people

Photo by Jeff Sandquist:
http://www.flickr.com/photos/jeffsand/1133352230/


What to do? 1 2 3 4

… AND JUST HOPE!

Photo by Isaac Leedom:
http://www.ﬂickr.com/photos/risus_in_silva/1424133440/


What to do? 1 2 3 4

… AND JUST HOPE!
• CONTROL IS LOST, so you just have to co-
operate with consumers and HOPE that they’ll
reward you



What to do? 1 2 3 4

… AND JUST HOPE!
reward you
• Move from tactical marketing to strategic
marketing



What to do? 1 2 3 4

… AND JUST HOPE!
reward you
marketing
• Best marketing is BENEFICIAL to customers



What to do? 1 2 3 4

… AND JUST HOPE!
reward you
marketing
• Best marketing is BENEFICIAL to customers
• Brands that aren’t beneﬁcial, will not be
followed



What to do? 1 2 3 4

CROWDSOURCE!

Photo by Jacob Bøtter:
http://www.ﬂickr.com/photos/jakecaptive/49915119/


What to do? 1 2 3 4

CROWDSOURCE!
• Empower your customers by making
them a part of your product
development process
• Better products
• Engaged customers who’ll become your
spokesmen
• Make it simple enough though

Photo by Jacob Bøtter:
http://www.ﬂickr.com/photos/jakecaptive/49915119/


What to do? 1 2 3 4

SOCIALIZE CUSTOMER SERVICE!

Photo by lamont_cranston:
http://www.ﬂickr.com/photos/theshadowknows/2995004692/


What to do? 1 2 3 4

SOCIALIZE CUSTOMER SERVICE!
• Bring your customer service into social media
• Track customers in problems and oﬀer help
• Create a forum where customers can help each others
• DON’T leave them all by themselves though!

Photo by lamont_cranston:
http://www.ﬂickr.com/photos/theshadowknows/2995004692/


What to do? 1 2 3 4

Expand beyond the PC - reach your people
where they are always on - mobile terminals!


1 2 3 4

HOW TO BOWL A STRIKE?

Photo by djking:
http://www.ﬂickr.com/photos/djking/3244795479/


How to do it in Social Media? 1 2 3 4

1. Create a strategy
• Set goals
• Choose the right tools and venues
• Assign enough resources

Photo by willposh:
http://www.ﬂickr.com/photos/willposh/459447453/



2. Concentrate on dialogs (rather than campaigns)

• Listen - for real
• Answer - to a real person
• Forget business jargon, don’t talk down
Photo by Akuppa:
http://www.ﬂickr.com/photos/90664717@N00/28225950/



3. Be authentic, have a face
People are more loyal and more merciful to
other people than they are to faceless
organizations.

Photo by amanky:
http://www.ﬂickr.com/photos/amanky/21541029/



4. Commit
It’s a marriage, not a one night stand!
Photo by Oh mon héros [Aka Suleiman Poher]:
http://www.ﬂickr.com/photos/86778817@N00/94049570/



5. Measure
… and re-evaluate your strategy
Photo by redjar:
http://www.ﬂickr.com/photos/redjar/136165399/



+ BE PREPARED FOR THE UNEXPECTED

Social web is powered by people. Other
people. People that are messy, clever,
funny and rude. Clueless people and
genious people.

Hence, be ready for
unpredictable
scenarios.

Photo by jcoterhals:
http://www.ﬂickr.com/photos/oter/2767051035/



How to succeed in a social relationship...

Left the Box blog by Samir Balwani:
http://leftthebox.com/marketing/9-ways-social-media-is-just-like-sex/



How to succeed in a social relationship...
• Treat your partner well, and they’ll return the favor
• Passion required - it’s not good if you’re not into it
• If it’s exceptionally good (or bad), you just have to tell someone
about it later.
• Don’t imply for home run unless you’re up to it
• Nervous ﬁrst time isn’t usually that great – but it gets better after
you get some experience
• Always be honest, never cheat
• Communication usually required to reach results
• You can’t really fake it (or can you?)
Left the Box blog by Samir Balwani:
http://leftthebox.com/marketing/9-ways-social-media-is-just-like-sex/


The Design Challenge - making
experiences to happen




The Design Challenge - making
experiences to happen



Are you Interested in this?

For more information:
Tommi Pelkonen
tommi.pelkonen@frantic.com
+358-40-50 50 821


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