riding wave social networking 24 mar 2009

© 2009 The Nielsen Company www.nielsen-online.com / www.nielsen.com

Riding the Wave of Social NetworkingInsights and Tactics for Publishers, Marketers and Agencies

Jon Gibs, VP Media [email protected]

Alex Burmaster, Communications Director, [email protected]


Social Networking is Big…

Source: Nielsen Online, NetView, Home & Work, including applications, December 2008 - February 2009

Rank Sector Global Active Reach Dec 08

Global Active Reach Feb 09

2 Month % Point Change

1 Search 85.9% 86.4% 0.5%

2General Interest Portals & Communities 85.2% 86.2% 1.0%

3Software Manufacturers 73.4% 72.8% -0.6%

4 Member Communities 66.8% 68.4% 1.6%

5 E-mail 65.1% 64.8% -0.3%


Social Networking is Big…Everywhere

Composition of UK Active Unique Audience: January 2009

¹Global = USA, Brazil, United Kingdom, France, Germany, Italy, Spain, Switzerland, and Australia

Source: Nielsen Online, NetView, Home & Work, including applications, December 2007 – December 08


12.5%

10.3% 9.9% 9.9% 9.6%

5.4% 4.9%

2.9% 2.7% 2.6%1.4%

U.S. Experiencing Comparably Low Growth

Percentage point increase in active reach of ‘Member Communities’

Source: Nielsen Online, NetView, Home & Work, including applications, December 2007-December 2008


So, Why is it So Big?

• Emotional need/desire to be heard• Desire to connect with one another• Need to create and make change• Evangelize for the things and people we love• Quest for authenticity• Ease of Use / Low Barriers to Entry / Technology

“Everyone in the back of his mind wants to be a star.”Chad Hurley: Co-founder, YouTube

“…from the futile aspirations of the everyman to break out of his lonely anonymous life of quiet desperation, to step in front of the whole world and be somebody, dude.”

Bob Garfield, Wired


‐5%

‐1%

1%

6%

‐1%

0% 0%

‐1% ‐2% ‐1%

3%

0%0% 0%

‐5%

‐4%

‐3%

‐2%

‐1%

0%

1%

2%

3%

4%

5%

6%

EU US

CGM Creating a Continental Shift in Time Spent…

Percentage Point Change in Allocation of Home Internet Time

Source: Nielsen Online, NetView, Home & Work, including applications, February 08 – February 09


…More So in Europe than the U.S.

How Home Internet Time is Allocated

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EUUS

28% 39%

24%20%

19% 19%

14% 11%

7% 5%4% 3%4% 4%

Videos/Movies

Search

eCommerce

CGM

Entertainment

Communications

Content

Source: Nielsen Online, NetView, Home & Work, including applications, February 2009


1.1

3.3

5.2

2.61.30.6

5.7

6.1

5.7

1.4

0

2

4

6

8

10

12

2 - 17 18 - 34 35 - 49 50 - 64 65+

Increase in Unique Audience (millions)

Female

Male

Globally - 35-49 Year Olds Fastest Growing Audience…

Increasing Global Unique Audience to Member Community Sector



…However, in the U.S., it’s 50-64 Year Olds

Changing U.S. Unique Audience to Member Community Sector

1.1

3.3

5.2

2.61.30.6

5.7

6.1

5.7

1.4

0

2

4

6

8

10

12

2 - 17 18 - 34 35 - 49 50 - 64 65+

Increase in Unique Audience (millions)

Female

Male

-0.1 -0.1

0.9

0.4 0.4

-0.2

0.3

0.2

2.5

0.7

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2 - 17 18 - 34 35 - 49 50 - 64 65+

Cnange in Unique Audience (millions)

Female

Male

Source: Nielsen Online, NetView, Home & Work, including applications, December 2007- December 2008


‐9%

‐1%

2%4%

7%

‐6%‐4%

‐1%

7%

10%

2 ‐ 17 18 ‐ 34 35 ‐ 49 50 ‐ 64 65+

Global US

Consequently, the Older Shift is More Pronounced in the U.S…

Changing Composition of Member Community Audience



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GlobalUS

15%16%

29%23%

30%

29%

20%

24%

6%8%

65+

50 ‐ 64

35 ‐ 49

18 ‐ 34

2 ‐ 17

…U.S. Over-Indexes on 50-64s & Under-Indexes on 18-34s

Composition of Active Unique Audience to Member Community Sector

Source: Nielsen Online, NetView, Home & Work, including applications, December 2008


Why Has Facebook Done So Well?

• Simple design• Broad appeal• Focus on connecting• Architecture• Walled Garden• Media coverage


Orkut is Brazil’s 3rd Biggest Brand

Network Active Reach

Time Per Person

Orkut 70% 4:16:22

MySpace 4.2% 00:11:34

Facebook 3.5% 00:21:36

Source: Nielsen Online, NetView, Home, including applications, February 2009


Local Language Dominant in Germany

Rank Network Active Reach

9-Month Unique Audience Growth

Time Per Person

1 Stayfriends 12.6 82% 0:21:16

2 Wer-kennt-wen 12.2 55% 2:34:09

3 studiVZ 10.4 3% 1:58:16

4 MySpace 9.0 6% 0:36:27

5 schülerVZ 8.9 6% 1:21:00

6 Facebook 7.0 263% 2:24:17

Source: Nielsen Online, NetView, Home data, including applications, May 2008 - February 2009


Source: Nielsen Online, NetView, Home data, including applications, December 2008

The Mixi Story in Japan

Network Active Reach YoY Unique Audience growth

Time per person

mixi 14% 17% 1:56:05

Lococom 2% 8% 0:06:07

Kanshin-kukan 2% -13% 0:01:11

edita 2% 68% 0:09:17

MySpace 2% 23% 0:14:07

Facebook <1% n/a 0:38:11


Seriously, What is the Problem with Social Media?

Safety?

Context?

Advertiser Control?

Hard to Buy?


Once You Move Past The Excuses, There Are Two Issues

• Not all social media is the same…and only some is actual media

• Measurement has not kept the pace with technology


What Is The Difference Between These Two Properties?

Tim

e P

er P

erso

n

Communications

Media

Nielsen Online NetView (2/09)


So Let’s Deconstruct Social Media…

“Media”

“Communications”

“Standard Media”

“Email/VOIP”

Microblogging (Twitter, etc)

PodCastingWidgets

Social Networks

Blogging

Viral Video “Amateur” “Professional”


Now To The Monetization Part

Communications

Media

ProfessionalAmateur


Measuring the Effectiveness of CGM: Treating Blog Mentions as Ad Impressions

Metered Surfing Behavior

Q: What can we show?A: Reach, frequency, placement influence, CPG ROI (via NetEffect), GRPs, demographics, branding lift (via survey) or any other metric that would be associated with advertising measurement

Q: Where are we now?A: This will require Buzz Reach 2.0 to be put into place. Also, automated sentiment is likely required. We are currently working through the process with both the Buzz and MegaPanelengineering team for the phase without sentiment. Likely launch in 1/09. With sentiment it may be later.


BuzzReach Methodology1.) Buzz

2.) Panel

3.) Calculation


Overall Reach, Frequency and GRP by Query

Buzz Query BuzzReach Reach % Impressions Average Frequency

GRP

“Pacer” 383,501 .22% 530,748 1.38 .304“AMC”Hybrid

263,970 .15% 378,812 1.44 .216

“Geo Cell” 65,323 .04% 78,054 1.19 .048

Nielsen Online BuzzReach (1/09)


BuzzReach RF vs. NetView Web RFImpressions Total R/F/GRP Target R/F/GRP

Total [000]

Target [000]

% in Target

Audience Reached

[000]

% of 2+ Univ. Freq GRPs

Audience Reached

[000]

% of Target Freq TRPs

Comcast.net 132 52 39 129 0.07 1.03 0.07 51 0.06 1.02 0.06

MSN/Windows Live 35 19 54 35 0.02 1 0.02 19 0.02 1 0.02

AutoTrader.com 135 53 39 125 0.07 1.08 0.08 50 0.06 1.05 0.07

AutoMart.com 415 242 58 209 0.12 1.98 0.23 118 0.15 2.04 0.3

Photobucket 189 93 49 177 0.1 1.07 0.11 86 0.11 1.08 0.12

Sum/Average 906 459 51 666 0.37 1.36 0.5 320 0.4 1.43 0.57

“Pacer” BuzzReach 531 271 51 384 .22 1.38 .304 191 .24 1.42 .35

Nielsen Online BuzzReach/WebRF (1/09)


Now to the Monetization Part

Communications

Media

ProfessionalAmateur


How do we Better Identify Influencers?Step 1: Build classifiers to identify the consumers discussing the client’s brand

using Nielsen Online’s proprietary software and database of thousands of communities

Step 2: Augment list using Nielsen Mega Panel traffic data

Step 3: Create list of most influential authors discussing the client’s brand based on the audience reach, relevance of messages, robustness of posts and knowledge of gaming computers

Step 5: Investigate each influencer to determine qualitative findings, demographic information, contact information and presence on the Web

Step 6: Rank each influencer based on a weight system for the following metrics: Sentiment toward the client’s brand, Influencer Segment, Buzz*Reach, Unique Audience, Average Time Per Visit, Total Posts, Relevance and Online Presence


• You can't buy their love: Core influencers can’t be bought. They take pride in appearing objective and impartial.

• Consumers can smell a rat a mile away: Many consumers get it. They know their neighbors, and they can sniff out an imposter faster than an e-mail virus.

• If you are sincere about fixing the problem, they’ll respect you: Company advocates that enter message boards to proactively address an issue in a genuine way rarely lose with consumers. “I’m sorry” goes a long way.

• Consumers own the controls: As companies and brands migrate to the Internet space, they often carry over the wrong assumptions about how much they can control the consumer. The reality is that brands have far less control; even the most successful communications effort is not going to change that.

Managing Influencers - Key PrinciplesAll consumers are not created equal, and influencers differentiate themselves from “typical” consumers because of their innate desire to speak out and be heard, and to ultimately impact the behavior of others in their social networks. As such, they must be carefully managed, and brands must develop intelligent frameworks for pinpointing and managing such consumers.


Conclusions• Audience:

• Social Media is a significant and growing online trend. The U.S. is a large market, but neither the largest, or the fastest growing. Indeed, America has not yet hit its peak

• 35 to 49 years olds are the fastest growing audience globally, although the U.S. skews older

• Success Stories:• Simplicity, communication/connections and a broad appeal has driven Facebook’s

growth• However, localized Social Media sites site as Mixi in Japan or Stayfriends in Germany

drive more localized networks

• Monetization:• Once you move past the excuses, metrics and an inability to correctly segment the

needs of different types of networks have hindered monetization• To correctly segment the market, advertisers and agencies should segment properties

by their role as a communication platform or a media platform and develop different strategies around outreach and advertising that is customized to the strengths of different platforms


l

• Nielsen coverage in more than 100 countries

• Nielsen Online measures 95% of global Internet ad spend

The Nielsen Company’s Global Footprint

Nielsen Online local products

Nielsen Company offices


Specific Market Presence


About Nielsen OnlineNielsen Online, a service of The Nielsen Company, delivers comprehensive, independentmeasurement and analysis of online audiences, advertising, video, consumer-generated media, wordof mouth, commerce and consumer behavior, and includes products previously marketed under theNielsen//NetRatings and Nielsen BuzzMetrics brands. With high quality, technology-driven productsand services, Nielsen Online enables clients to make informed business decisions regarding theirInternet, digital and marketing strategies. For more information, please visit www.nielsen-online.comAlso, visit our blog at www.nielsen-online.com/blog

About The Nielsen CompanyThe Nielsen Company is a global information and media company with leading market positions inmarketing and consumer information, television and other media measurement, online intelligence,mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter,Adweek). The privately held company is active in more than 100 countries,with headquarters in New York, USA. For more information, visit www.nielsen.com

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