This document discusses how social media has evolved and its growing influence. It notes that (1) social networks like Facebook and Twitter allow one person to broadcast to billions, challenging companies' control of their brands; (2) Facebook has grown from a Harvard network to having over 1 billion users who spend over 25 minutes per day on average on the site; and (3) the rise of blogs and user reviews have given consumers more influence over purchase decisions through peer recommendations.

1. Saffron Michelle Monck
Building
Society 17 February 2010

2. Saffron Michelle Monck
Building
Society 17 February 2010
Why we’re getting social...

4. “We always overestimate the
change that will occur in the next
two years and underestimate the
change that will occur in the next
ten.
Don't let yourself be lulled
into inaction.”
Bill Gates, c1999
How true is this quote?

5. Let’s go forward, before we go back...

6. Let’s go forward, before we go back...
Using the internet to help
people save for their dreams

18. Let’s go back, before we go forward...

22. Food Health Housing Insurance

23. Mutuality was
about building
communities to
share the burden of
big responsibilities:
Food Health Housing Insurance

24. Mutuality was
about building The first
communities to
share the burden of social
big responsibilities: network?
Food Health Housing Insurance

25. A quick history lesson

26. A quick history lesson
1774
First building
society formed
Birmingham -
the first social
network?

27. A quick history lesson
1774 1830
Permanent
First building building
society formed societies where
Birmingham - the society
the first social continued on a
network? rolling basis

28. A quick history lesson
1774 1830 1986
Act passed in
Parliament
Permanent allowing
First building building societies to
society formed societies where demutualise in
Birmingham - the society order to
the first social continued on a compete with
network? rolling basis banks

29. A quick history lesson
1774 1830 1986 1989
Act passed in
Parliament
Permanent allowing
First building building societies to
society formed societies where demutualise in
Birmingham - the society order to Tim Berners-
the first social continued on a compete with Lee ‘invents’
network? rolling basis banks the internet

30. A quick history lesson
1774 1830 1986 1989 2004
Act passed in
Parliament
Permanent allowing
First building building societies to
society formed societies where demutualise in
Birmingham - the society order to Tim Berners-
the first social continued on a compete with Lee ‘invents’ Facebook is
network? rolling basis banks the internet born

31. A quick history lesson
1774 1830 1986 1989 2004
Act passed in and
Parliament everything
Permanent allowing changes...
First building building societies to
society formed societies where demutualise in
Birmingham - the society order to Tim Berners-
the first social continued on a compete with Lee ‘invents’ Facebook is
network? rolling basis banks the internet born

33. We just lost control...big style

34. We just lost control...big style
• We invest £1,000’s in our brand, our
branches, web site, literature, marketing
• We train our staff to be brand advocates
• We have mission statements, policies,
customer service guides, complaints
processes…
• Up until 2004 we could control all this

35. Our brands are under threat
To one person broadcasting to
We’ve gone from one an audience of billions
person telling five Social networks like Facebook
people about a bad and Twitter make this happen
experience This can also have a positive
effect if positive things are said

36. A look back - how the internet evolved...
AOL Got People Yahoo Google made Facebook
onto the Internet organised it it searchable made it social

37. How Facebook evolved...

38. How Facebook evolved...
Feb 2004
Facebook
launches as
network site
for Harvard
Business
School
Students

39. How Facebook evolved...
Feb 2004 Dec 2005
Facebook
launches as
network site Facebook used
for Harvard by 3.5m US
Business students
School in 800
Students colleges

40. How Facebook evolved...
Feb 2004 Dec 2005 May 2006
30,000
educational
Facebook institutions in
launches as US, Canada
network site Facebook used and other
for Harvard by 3.5m US English
Business students speaking
School in 800 countries.
Students colleges 8m users

41. How Facebook evolved...
Feb 2004 Dec 2005 May 2006 May 2007
30,000
educational
Facebook institutions in
launches as US, Canada
network site Facebook used and other
for Harvard by 3.5m US English
Business students speaking
School in 800 countries. 21 million
Students colleges 8m users users

42. How Facebook evolved...
Feb 2004 Dec 2005 May 2006 May 2007 Today
30,000
educational
Facebook institutions in
launches as US, Canada
network site Facebook used and other
for Harvard by 3.5m US English
Business students speaking
School
Students
in 800
colleges
countries.
8m users
21 million
users ???

43. How Facebook evolved...
Feb 2004 Dec 2005 May 2006 May 2007 Today
30,000
educational
Facebook institutions in
launches as US, Canada
network site Facebook used and other
for Harvard by 3.5m US English
Business students speaking
School
Students
in 800
colleges
countries.
8m users
21 million
users ???
Source: BBC
Source: KTBX.com

44. Facebook today
• 11 million people in the UK use
Facebook .... everyday
• Improved search facilities and
precise targeting are really
challenging Google in terms of
information gathering and
advertising
Bigger than Google for
the first time ever...
Christmas Day 2009
Source: facebook.com
Source: businessinsider.com

45. Facebook today
25 mins per day
2 visits per
Source: facebook.com day

46. Facebook today
25 mins per day
2 visits per
Source: facebook.com day
If these were High Streets – Footfall but
Where would you put a branch? the right footfall

47. Whose using
Facebook?
Source: facebook.com

48. Whose using
Facebook?
Source: facebook.com
Not just a youth audience 47% fall into the
25–44 year old bracket

49. The growth of micro blogging (Twitter) Source: BBC
Source: Alexa
UK Twitter users Feb 08 - 100,000 UK News consumption
Twitter users Feb 09 - 1,780,000 News generation

50. The growth of micro blogging (Twitter) Source: BBC
Source: Alexa
UK Twitter users Feb 08 - 100,000 UK News consumption
Twitter users Feb 09 - 1,780,000 News generation

51. Who uses Twitter?
Source: brandbuilder.com

52. Who uses Twitter?
• Numbers a little harder to get hold of
• Heavy users tend to be younger males
• All these figures are indexed against US
Source: brandbuilder.com

53. Who uses Twitter?
• Numbers a little harder to get hold of
• Heavy users tend to be younger males
• All these figures are indexed against US
Explosion!!!!!!!!!!...

54. It hits the fan for HSBC in August 2007...

55. It hits the fan for HSBC in August 2007...

56. It hits the fan for HSBC in August 2007...
“Over the past few weeks it has
exploded, with more
than 2,500 graduates signed up
and dozens more joining every
day”.
Source: Facebook
Source: BBC
Source: The Guardian

57. How the networks interact
• Integration of
different social
networks is easier
• Users engage with a
number of different
networks e.g.
Sharing YouTube
videos via Facebook
• The Iran Election is
a good reflection of
this interaction...

58. Who uses Twitter?
• Numbers a little harder to get hold of
• Heavy users tend to be younger males
• All these figures are indexed against US
Explosion!!!!!!!!!!...

59. An ‘explosion’ in 2009 in citizen journalism
Sources: Facebook and Youtube

60. An ‘explosion’ in 2009 in citizen journalism
Sources: Facebook and Youtube

61. An ‘explosion’ in 2009 in citizen journalism
20,000 photo
uploads
220,000 per hour
relating to Iran Election
50,000 Fans in
10 days
495,000 views
Sources: Facebook and Youtube

62. And it goes on...

63. What are people doing on the internet now 2010
Source: All universal McCann

64. What are people doing on the internet now 2010
• Video and blogging
72.8% read blogs
• This is where people
get information
• Peer to peer
82.9% watch video
online
Source: All universal McCann

65. Watching video over the web is booming Source: Mashable!
Source: comscore
Loads of new ‘tools’ that enable video
sharing
Source: Vnuemedia.com

66. Once the realm of the nerd,
blogging is becoming more
common
• Search results now include
content from Facebook,
Twitter and Blogs
• You can no longer control
what people see when they
search for your brand.
• Searchers can find out what
people are saying about the
brand (peer to peer) right now
and use this information to
inform their purchase decision
Source: Universal McCann
• Bloggers opinion’s are
‘trusted’

67. The ‘influence economy’...

68. The ‘influence economy’...
Some things don’t change –
the most powerful form of
marketing is personal
recommendation.

69. Peer to peer trust has huge
influence on the purchase decision
Source: BazaarVoice Source: Vnuemedia.com

70. Peer to peer trust has huge
influence on the purchase decision Supporting word-of-mouth is
no longer a nice-to-have
– 77% of consumers seek out
reviews before buying
– 70% of UK consumers say
reviews are the most important
information
Source: BazaarVoice Source: Vnuemedia.com

71. So what are we doing?
Ye Olde
World
Wide Pub

72. So what are we doing?
• We’re going to the pub
• If you were in the pub and people were talking, or
Ye Olde worse, complaining about the service from your
World building society –
Wide Pub What would you do?

73. So what are we doing?
• We’re going to the pub
• If you were in the pub and people were talking, or
Ye Olde worse, complaining about the service from your
World building society –
Wide Pub What would you do?
• Listen and then join in the conversation
• But you’ve got to be in the pub in the first place...

74. So what are we doing?
• We’re going to the pub
• If you were in the pub and people were talking, or
Ye Olde worse, complaining about the service from your
World building society –
Wide Pub What would you do?
• Listen and then join in the conversation
• But you’ve got to be in the pub in the first place...
That’s what we’re
doing in social media

76. “The internet is becoming the
town square for the global village
of tomorrow.”
Bill Gates
How true is this quote?

77. Presentation written by Saffron Building Society and Brand Experience
Contact Julian Steedman, Managing Director, Brand Experience. 01603 612792. www.brandex.co.uk

78. Let’s all go down to the ‘virtual pub’ and see what
people are saying...
Presentation written by Saffron Building Society and Brand Experience
Contact Julian Steedman, Managing Director, Brand Experience. 01603 612792. www.brandex.co.uk