The Rise of Social Media
And what it means for      Prepared for: Sensis


business                   Prepared by: John 0
                           June 2010
                                             Shearer
Agenda

• The Context for the Rise of Social Media

• From Web 1.0 to Web 2.0

• The Australian Social Media Landscape

• The Business Attraction of Social Media

• Some Key Lessons for Business




                                             1
The Context for the Rise of Social Media
The context for the rise of social media




Fragmenting           Declining             Informed
   Media               Trust               Consumers

                                                       3
The context for the rise of social media




Fragmenting           Declining             Informed
   Media               Trust               Consumers

                                                       4
The rise of the informed consumer



                           99%                  Researching online


                           94%                  Ever bought online


                           80%                  Research products every week


                           70%                  Start with search engine

                                                (of online consumers)




Source: TNS: Digital Australia Now Research: 2009                              5
Why consumers are searching online…




                Internal
                           Save money

                           Manage life efficiently

Others                                Self


                            Infotainment

                           Continuous learning
                External




                                                     6
From Web 1.0 to Web 2.0
The driving forces behind social media




Technology            Tools                People


                                                    8
9
133,000,000
   blogs




              10
>2billon views
         per day




                   11
15,000,000
 articles




             12
445 million
 users worldwide




                   13
2 out of 3
                 people

online visit a

                 site each month
                                   14
106 million
  accounts




              15
The rise and rise of social media



2007                2009                   20011?




Porn                Email                  Search

                                                    16
The Australian Social
   Media Landscape
Australia’s social media audience is
                        estimated at

                9.9 million



                                       18
Different people using different networks




                                        Males       Females   18-30   31-44   45-60

Facebook (80%)                          76%          83%      81%     80%     78%
 MySpace (19%)                          26%          15%      26%     17%     14%
        Twitter (6%)                     9%           4%       6%     7%       4%

    LinkedIn (2%)                        3%           2%       2%     2%       3%

                                 (Social network membership amongst social networkers)



Source: TNS: Digital Australia Now Research: 2009                                        19
Facebook – Still youth dominated



               18 to 25                                          35%

                26 to 35                                     30%

                 36 to 45                             18%
                                                                         But these are the fastest
                   46 to 55                   10%                         growing age segments

                     55 plus                          7%
                                                           (% of Facebook accounts)


Source: Facebook Advertising Creator: 3rd June 2010
http://www.thinksocial.com.au/tag/facebook/                                                          20
Some are more active than others…




Source: Forrester: Social Media Technographics: Australia: Q2 2009   21
Consumers’ motivations differ by network/platform




Source: TNS: Digital Australia Now Research: 2009           22
Consumers’ motivations differ by network/platform




Source: TNS: Digital Australia Now Research: 2009           23
Consumers’ motivations differ by network/platform




Source: TNS: Digital Australia Now Research: 2009           24
The Business Attraction
of Social Media
The business attraction of social networking and
                    social media




                      Hyper-
Eyeballs             Targeting                 WOM


                                                      26
86%      are looking to fellow internet users for opinions
         and information about products, services and
         brands.



                       78%
                       Trust the recommendations of other
                       consumers



Consumer-created content is
the no.1 aid to a buying decision

                                                             27
Some are talking about companies on social media…



Social Network: Have made                              Blogs: Blog about product or
 comments about products                                        service experiences
                or services

                                                      Regularly      15%
Positive                    24%
                                                    Occasionally             45%
Negative                14%
                                                          Never            40%
                               (% amongst social networkers)


Source: TNS: Digital Australia Now Research: 2009                                     28
…and what they are saying is having an impact


Changed mind based on                                                Decision based solely on
     NEGATIVE review                                                 POSITIVE review



            36%                              Independent review                  36%

               30%                                     Forum               23%

                      17%                               Blog            11%

                       14%                          Social network      11%


Source: TNS: Digital Australia Now Research: 2009                                               29
70%
of Australian businesses intend to
undertake some form of social media
activity in 2010




                                      30
Business are seeing the benefits



Generated exposure for my business                                                                       85%
      Increased my traffic/subscribers                                                             63%
            New business partnerships                                                         56%
                Increased search rankings                                                    54%
                  Generated qualified leads                                          52%
Help me sell products and services/close                                          48%
                               business
 Reduce my overall marketing expenses                                             48%

                                                                      (% of businesses)

   Source: Social Media Examiner: 2010 Social Media Marketing: Industry Report: April 2010                     31
Some Key
Takeaways
Some key takeaways

1.    Don’t assume that social media and
      social networking is just a fad.


                2. Don’t about about media platforms –
                   think
                         think
                               business strategy.

                                   3. At first just listen…
4. Remember, it’s a dialogue not a monologue.
          5. It’s real time.
 6. Authenticity and transparency
     are crucial.
                                                              33
Ninety percent of social media
     is just showing up.


It’s the other half that’s hard.

                                   34
Presentation available at:
www.slideshare.net/johnshearer

Tns sensis social media

  • 1.
    The Rise ofSocial Media And what it means for Prepared for: Sensis business Prepared by: John 0 June 2010 Shearer
  • 2.
    Agenda • The Contextfor the Rise of Social Media • From Web 1.0 to Web 2.0 • The Australian Social Media Landscape • The Business Attraction of Social Media • Some Key Lessons for Business 1
  • 3.
    The Context forthe Rise of Social Media
  • 4.
    The context forthe rise of social media Fragmenting Declining Informed Media Trust Consumers 3
  • 5.
    The context forthe rise of social media Fragmenting Declining Informed Media Trust Consumers 4
  • 6.
    The rise ofthe informed consumer 99% Researching online 94% Ever bought online 80% Research products every week 70% Start with search engine (of online consumers) Source: TNS: Digital Australia Now Research: 2009 5
  • 7.
    Why consumers aresearching online… Internal Save money Manage life efficiently Others Self Infotainment Continuous learning External 6
  • 8.
    From Web 1.0to Web 2.0
  • 9.
    The driving forcesbehind social media Technology Tools People 8
  • 10.
  • 11.
    133,000,000 blogs 10
  • 12.
    >2billon views per day 11
  • 13.
  • 14.
    445 million usersworldwide 13
  • 15.
    2 out of3 people online visit a site each month 14
  • 16.
    106 million accounts 15
  • 17.
    The rise andrise of social media 2007 2009 20011? Porn Email Search 16
  • 18.
    The Australian Social Media Landscape
  • 19.
    Australia’s social mediaaudience is estimated at 9.9 million 18
  • 20.
    Different people usingdifferent networks Males Females 18-30 31-44 45-60 Facebook (80%) 76% 83% 81% 80% 78% MySpace (19%) 26% 15% 26% 17% 14% Twitter (6%) 9% 4% 6% 7% 4% LinkedIn (2%) 3% 2% 2% 2% 3% (Social network membership amongst social networkers) Source: TNS: Digital Australia Now Research: 2009 19
  • 21.
    Facebook – Stillyouth dominated 18 to 25 35% 26 to 35 30% 36 to 45 18% But these are the fastest 46 to 55 10% growing age segments 55 plus 7% (% of Facebook accounts) Source: Facebook Advertising Creator: 3rd June 2010 http://www.thinksocial.com.au/tag/facebook/ 20
  • 22.
    Some are moreactive than others… Source: Forrester: Social Media Technographics: Australia: Q2 2009 21
  • 23.
    Consumers’ motivations differby network/platform Source: TNS: Digital Australia Now Research: 2009 22
  • 24.
    Consumers’ motivations differby network/platform Source: TNS: Digital Australia Now Research: 2009 23
  • 25.
    Consumers’ motivations differby network/platform Source: TNS: Digital Australia Now Research: 2009 24
  • 26.
  • 27.
    The business attractionof social networking and social media Hyper- Eyeballs Targeting WOM 26
  • 28.
    86% are looking to fellow internet users for opinions and information about products, services and brands. 78% Trust the recommendations of other consumers Consumer-created content is the no.1 aid to a buying decision 27
  • 29.
    Some are talkingabout companies on social media… Social Network: Have made Blogs: Blog about product or comments about products service experiences or services Regularly 15% Positive 24% Occasionally 45% Negative 14% Never 40% (% amongst social networkers) Source: TNS: Digital Australia Now Research: 2009 28
  • 30.
    …and what theyare saying is having an impact Changed mind based on Decision based solely on NEGATIVE review POSITIVE review 36% Independent review 36% 30% Forum 23% 17% Blog 11% 14% Social network 11% Source: TNS: Digital Australia Now Research: 2009 29
  • 31.
    70% of Australian businessesintend to undertake some form of social media activity in 2010 30
  • 32.
    Business are seeingthe benefits Generated exposure for my business 85% Increased my traffic/subscribers 63% New business partnerships 56% Increased search rankings 54% Generated qualified leads 52% Help me sell products and services/close 48% business Reduce my overall marketing expenses 48% (% of businesses) Source: Social Media Examiner: 2010 Social Media Marketing: Industry Report: April 2010 31
  • 33.
  • 34.
    Some key takeaways 1. Don’t assume that social media and social networking is just a fad. 2. Don’t about about media platforms – think think business strategy. 3. At first just listen… 4. Remember, it’s a dialogue not a monologue. 5. It’s real time. 6. Authenticity and transparency are crucial. 33
  • 35.
    Ninety percent ofsocial media is just showing up. It’s the other half that’s hard. 34
  • 36.