This document discusses the future of social media and its impact on businesses. It identifies 4 key drivers that will shape the future: Enterprise 2.0, mobile, content & communities, and crowdsourcing. Enterprise 2.0 involves using social software platforms within companies. Mobile internet access is growing rapidly. Content is becoming more focused on video online and on mobile. Communities are central to sharing content and experiences. Crowdsourcing outsources tasks to large groups through open participation. Businesses must adapt quickly, embrace openness, review processes, and focus on engagement over control of ownership.

1. The Future of Social Media
and its impact on Businesses
Luca Penati • SMU - Singapore, November 2010

2. Should we care?

3. Teatro San Babila’s story

4. Companies with the
highest level of
social media activity
grew sales by +18%
Companies with the
least presence
showed a decline of -
6%
(Wetpaint/Altimeter Study)

5. Before we talk about the future,
let’s take a look at the past

6. Remember 2000?

7. was 1 and half years old

8. Trek
Technology
launched
the first
USB flash
drive

9. And what about last year?

10. Globally, people who have on-line access have
digital sources as their number one media
channel.
61
54
36
32
0
10
20
30
40
50
60
70
Internet TV Radio Newspapers
% of online users
Source: TNS Digital Life

11. Bringing Digital to
Life
11
Moving from “Dialing In” to “Always On”
•
% accessing daily
Source: TNS Digital Life / S5: How often access / i10: Usage of offline media / Base: All respondents 48804

12. Goodbye email, hello social networking
In rapid growth
markets such as Latin
America, the Middle
East and China, the
average time spent, per
week, on social
networking is 5.2
hours compared to only
4 hours on email.
Email
Social
Networks
Source: TNS Digital Life

13. Online consumers in rapid growth markets have
overtaken mature markets in terms of engaging
with digital activities
56 54
26
20
0
10
20
30
40
50
60
Egypt China Finland Japan
Source: TNS Digital Life

14. And what about
Singapore?

16. 16
% engaged in social networking
I1. Frequency of Social Networking and I2.0.1.Time spent on digital
activities -Social Networking & Connecting (hours)
Base: All respondents, n=48804 (Global); n=1002 (Singapore); n=602
(Vietnam
46
57 49
86
94 95
Daily Ever
Mean
number of
hours per
week
4.6 7.1
Most users in Singapore have tried Social Networking and they spend
time on this activity.

17. 17
A sizeable portion of Singaporean Internet users turn to mobile to connect.
85
43
25 26
% using access point in last four weeks
PC at home PC at work / school
PC at internet
café / friends
Mobile
S4: Internet access point in last 4 weeks for leisure
Base: All respondents, n=48804 (Global); n=1002 (Singapore);
n=602 (Vietnam)
95
49
24
40

18. 18
% engaged in social networking daily via PC and Mobile
I1. Frequency of Social Networking: PC and Mobile
Base for PC n=47832 (Global); n=993 (Singapore); n=599 (Vietnam)
Base for Mobile n=12802 (Global); n=440 (Singapore); n=157 (Vietnam)
45
56
48
35
48
33
PC Mobile
Singaporeans turn to their mobile device nearly as frequently as their PC
for social networking.

19. 19
Average Number of Friends in Social Network
N11. Number of friends connected to in social networks
Base: n=40819 (Global); n=942 (Singapore); n=574 (Vietnam)
Social Networkers in Singapore have a large number of online friends,
higher than the global average.
184120

20. How can we predict
what’s going to happen in
the next 10 years in the
business environment?

21. We just can’t.

22. What we can do…
It’s to look at the key drivers…

23. Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing

24. Enterprise 2.0 is "the use of emergent social
software platforms within companies, or
between companies and their partners or
customers".
Andrew McAfee, author of Enterprise 2.0

25. Customers.
From talking at to
engagement.

26. The new generation
expects to use social
media tools and new
technologies at work

27. “whether you prefer or dislike
Apple technologies and
regardless of whether you
believe they belong within
enterprise environments, they’re
coming.”
TechRepublic

28. Social
Enterprise
Mobile
Content &
Communities
Crowdsourcing

30. Growth in social networking has been
fuelled by the transition from PC to mobile.
3.1
2.2
0
0.5
1
1.5
2
2.5
3
3.5
Social networking Email
# of hours mobile users spend per week
Source: TNS Digital Life

31. Mobile Internet is the last form of
access adopted in developed
markets and the first form of access
in developing markets
% online users accessing internet from mobile in last four weeks
Source: TNS Digital Life / S4: Internet access point in last 4 weeks for leisure / Base: All respondents, n=48804

32. Thanks to the iPhone 3G and, to a lesser extent, Google’s Android phone,
millions of people are now walking around with a gizmo in their pocket that
not only knows where they are but also plugs into the Internet to share
that info, merge it with online databases, and find out what – and who – is
in the immediate vicinity…Simply put, location changes everything. This
one input – our coordinates – has the potential to change all the outputs.
Where we shop, who we talk to, what we read, what we search for, where
we go – they all change once we merge location and the Web.
– Mathew Honan, WIRED magazine, 1/19/09

33. Bringing Digital to
Life
33
Brand experiences will be extended
by blending physical space and
digital content.

34. Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing

35. Every company is a media
company.

38. The global online video community will
include more than 1 billion users by the
end of 2010.

39. Approximately 70% of global online consumers
watch video online
Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010

40. Mobile Video is already used by 11% of global online
consumers: penetration is highest in Asia-Pacific and
among consumers in their late 20s.
Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010

41. More netizens view online video
than visiting social networks
87% of Singapore’s
Internet population
viewed video online in
April, 2010, with an
average viewer
consuming 10.5 hours of
video.
Internet users watched
320 million videos in
April, 2010.
Videos
(000)
Share of
Videos
Total Audience 319,812 100.0
Google Sites 203,999 63.8
Facebook.com 10,180 3.2
Tudou Sites 4,459 1.4
Microsoft Sites 2,690 0.8
Dailymotion.co
m
2,628 0.8
PPLive Inc. 1,290 0.4
Metacafe 1,204 0.4
Turner Network 1,133 0.4
Sohu.com Inc 1,062 0.3
Yahoo! Sites 865 0.3
Source: comScore Vedio Metrix

42. The Emotional Power of Storytelling
But tell me a story and it will
live in my heart forever…
Tell me a fact
and I’ll learn.

43. Left Brain
• Food shortages in Malawi are affecting more than 3
million children.
• In Zambia, severe rainfall deficits have resulted in a
42% drop in maize production from 2000. As a result,
an estimated 3 million Zambians face hunger.
• Four million Angolans — one third of the population—
have been forced to flee their homes.
• More than 11 million people in Ethiopia need immediate
food assistance.

44. Rokia, a 7-month-old girl from Mali, Africa,
is desperately poor and faces a threat of
severe hunger or even starvation. Her life
will be changed for the better as a result of
your financial gift.

45. The Connected Agency
“Over the next five years, traditional agencies will make
this shift; they will start by connecting with consumer
communities and will eventually become an integral part
of them.”
Mary Beth Kemp and Peter Kim, Forrester

46. Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing

47. Crowdsourcing is the act of outsourcing
tasks, traditionally performed by an
employee or contractor, to a large group of
people or community (a crowd), through
an open call.

48. “Why Crowdsourcing
is the future of
EVERYTHING”
Ross Dawson

49. Wikipedia,
the free encyclopedia that anyone can edit.

51. Crowdsourcing
Organizations
Start-ups
Media
Funding
Social Change
Science
Art
Environment
Health
Crime

53. To Recap: 4 Key Drivers
Enterprise 2.0 Mobile
Content &
Communities
Crowdsourcing

54. And finally… what are the implications?
What businesses must do?
• Adapt, change fast, embrace openness.
• Review their business processes.
• Understand they cannot have control. Ownership
will matter a lot of less  Mind share and market
share more

55. Thank you!
Luca Penati
Global MD, Technology Practice
Ogilvy PR Worldwide
Email: luca.penati@ogilvypr.com
Twitter: @lucapenati