SPECIAL THANKS TO OUR SPONSORS

presented by the American Marketing Association, Boston Chapter

How to Build a Killer Social Network

Introducing…John Moore, Director of Ideas and Innovation

Chris Brogan, Vice President of Strategy & Technology

Todd Van Hoosear, Social Media Practice Manager

Dale Durrett, Eastern Region Sales Manager

Tom Arrix, Vice President of Sales, East

keynote

moderator

panel

THE STATE OF SOCIAL NETWORKING

July 21, 2008

AMA Conference

FRAMING OUR DISCUSSION

• Players

• Numbers

• Role

• Application

• Rules

• Future

THE PLAYERS

A MYRIAD OF SITES

A MYRIAD OF MARKETERS

THE NUMBERS: THE GOOD

MYSPACE AND FACEBOOK DOMINATE CATEGORY

+156%

-28%

+29%

+100%

+30%

+100%

+146%

+85%

+7%

Source: Nielsen Online, May 2008 (Growth from May 2007)

THE CATEGORY IS STILL GROWING

72M

105M

Source: eMarketer, US Online Social Networking Users, 2

INVESTMENT IS ALSO GROWING

Source: eMarketer, US Online Social Networking Advertising Spending, December 2007

THE NUMBERS: THE BAD

AREAS OF CONCERN

MySpace Yahoo!

YouTube

+47%

-14%

Social Networking

MySpace

Revised Forecast

MySpace

Original Forecast

Monetization Time SpentPage Velocity Per Minute

NUMBERS THAT MAY SURPRISE YOU

• 69% of all US Internet users have visited a social networking site

• 50% of all US Internet users visited either MySpace or Facebook

• 12% of all internet minutes are spent on MySpace

• 40% of all moms are on MySpace

• 41% of Facebook’s visitors are over the age of 35

• 31% of internet users earning $150k a year use social networking

• 21 million professionals in 150 different industries are on LinkedIn

ROLE

HOW IT FITS INTO THEIR LIFE: SOCIAL

Entertainment/Diversions

Practical “Tools”

Hub forrelationship/connecting

HOW IT FITS INTO THEIR LIFE: BUSINESS

Company Groups

Search for Experts

Expand Networks

Links with Colleagues

Online Resumes

HOW IT FITS IN THEIR LIFE: PHILANTHROPIC

Connects brands with consumers

passions

Users are incentivized to

endorse brands that support their social causes

APPLICATION

Actions with Pages that can result in viral

distributionBecoming a Fan

Reviews of 3 Stars or more

Created Discussion Board Post

Reply to Discussion Post

Posting on the Wall

Comment on a Video

User posting a Posted Item

User Comment on a Posted Item

Comment on Photo

RSVP to Event

XM INITIATIVES

RULE 1: Look before you leap

RULE 2: Standard ad units are not the foundation

RULE 3: Leverage targeting

RULE 4: Understand the environment (CPI)

RULE 5: Stay involved (IRI)

THE RULES

MySpace 2.0Mobile Social

NetworksVerticals

Video Offerings

FUTURE

MYSPACE 2.0

Music

International

Targeting

Mobile

MOBILE SOCIAL NETWORKS

• A Natural Combination• Mirrors social networks• Communication leads • New revenue

• Smart phones will accelerate category

• The two leaders are ramping up

• But pure plays want a piece of the action

• Many challenges lie ahead

VERTICALS

“The future of social networking will not be one big

social graph but instead myriad small communities on

the Internet to replicate the millions that exist offline.

No single company can capture the social graph.”

-The Economist

VERTICALS

Social Finance Music Ning

Sports MoviesPets

FINAL THOUGHTS ON THE POWER OF SOCIAL NETWORKING