the state and future of social business

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May 15, 2012Webcom

Jeremiah OwyangIndustry Analyst

The State and Future of Social Business

© 2012 Altimeter Group

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“The only thing constant in business is change”-John Perera, my first manager


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Cluetrain Theses (Original)4

1. Markets are conversations.

2. Markets consist of human beings, not demographic sectors.

3. Conversations among human beings sound human. They are conducted in a human voice.


Cluetrain Theses (Updated for 2012)5

1. Markets are conversations conversational ads

2. Markets consist of human beings, brand pages, not demographic sectors. and social graph targeting

3. Conversations among human beings sound human. They are conducted in a human voice. Analyzed by social performance analytics


Agenda

The State of Social Business Trend 1: Corporate Websites Reborn Trend 2: Social Becomes Automated Trend 3: To be Heard, You Will Pay Pragmatic Recommendations


Companies are averaging an overwhelming number of corporate owned accounts“Approximately how many official social accounts exist across the entire company, including all business units, products, or regions? (best estimate)”

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Platform Average # accounts

Twitter 39.2

Blog 31.9

Facebook 29.9

LinkedIn 28.8

Forum/Message Board/Communities 23.4

YouTube 9.4

Foursquare 6.3

All others 5.3

Flickr 3.8

Gowalla 0.3

Sum 178Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

140 respondents, all over 1000 employees


Four Seasons Hotels have hundreds of individual Facebook and Twitter accounts – global and local

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How companies organize for social business

Source: “The Career Path of the Corporate Social Strategist,” Altimeter Group, December 2010

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The Composition of a Social Media Team

Base: 144 global corporate social media program managers at companies with over 1000 employees

Source: “Social Business Readiness: How Advanced Companies Prepare Internally” (August 31, 2011)

Average Size of a Corporate Social Media Team: 11


The mission of Adobe’s CoE: “Enable more coordinated and strategic social media initiatives across the company.”

Source: Maria Poveromo, “One Company’s Journey in Social Media”

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Adobe’s CoE provides governance, policies and guidelines, training, measurement support, and best practices including “guardrails”


Only the Most Advanced Companies are Conducting Social Business Holistically, Beyond Individual SilosWould you agree that your social media strategy is embedded across corporate functions (e.g. Marketing, Sales, Support, Product, etc.)?

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Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)



Salesforce rewards Chatteratti14


Only the Most Advanced Companies Are Integrating Social Data into Customer DatabasesDo you have a process to record and integrate data from social interactions with customers into existing customer databases?

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Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)



Nationwide turns to Yammer to redesign the way management and employees interact

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Senior management plays a central role in wider adoption

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Nationwide President & COO, Mark Pizzi was one of Yammer’s first users

• Posting relevant articles • Posting questions• Dialoging with employees• Demonstrating usability, features• Within months, he’d generated

more than 7500 followers

Within 10 months of launch, 40% of Nationwide’s top leadership were

participating on the network


Dynamic Customer Journey18

New channels.

New sources.

New devices. Icon Placeholder


Theme: Dynamic Customer Journey19

As consumers have many choices, they’re empowered to carve the most efficient journey


Agenda


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Trend One: Corporate Websites Reborn

Companies will integrate social, resulting in new forms of context emerging –forever

changing the static site.


Integrating Social on Websites lack Strategy


Top objective: To increase referral traffic from social networks (Respondents allowed to select 3)

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To increase referral traffic

To make our site more interactive

To increase relevancy of content

To increase our number of fans/followers

To feature customer voices about our brand

To leverage user-generated content

To monetize engagement/time spent on site through ads

To increase site registrations by reducing registration friction.

We're not sure why yet.

0% 20% 40% 60% 80% 100%

53%

49%

48%

43%

25%

17%

6%

5%

6%


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Evolution of the Social Corporate Website


Sign into HuffPost with Facebook and read news shared by your social graph

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TripAdvisor visitors view friend reviews through Facebook Instant Personalization

TripAdvisor launched Facebook’s Instant

Personalization feature in December 2010, offering

friend ratings, reviews, and travel history.


vitaminwater doesn’t have a corporate site – it “temporarily” moved to Facebook

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Skittles site lists its social properties & vitals


Social integration: % of enterprise-class companies deployed (n=143, June 2011)

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Social Linking Social Publishing Basic Feeds Curated Aggregation Social Context0%

20%

40%

60%

80%

100%

90%

77%

53%

27%

11%


Companies must choose which webpages should integrate –and then aggregate content in –don’t blindly send it away.

Remember that websites as we know them will go away –prepare for a new model to emerge as content as assembled on the fly.

This will also happen in the real world on devices, tablets, and real world kiosks, content will contextualize, much like the movie Minority Report.

Trend One Insights: Social Integration30


Agenda


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Trend Two: Social Becomes Automated

A new category has emerged “Social Performance Software” which analyzes and

optimizes social content


Testing

Cross Channel Optimization

Ad Targeting

Marketing Performance Spreads to Social33


A new class of vendors emerge that

• 1) Analyze online discussions and your social graph

• 2) Analyze your performance of content

• 3) Match

• 4) Optimize how it should be published

Will extend to Support, Marketing, and beyond

Social Performance Software brings targeting34


AMEX uses uses social data to offer customers personalized discounts

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American Express’s new Facebook application “Link, Like, Love” uses a cardholder’s Facebook interests including “likes” and “check-ins” to offer

the most relevant and convenient discounts.


Social Optimization Set:

Crowdbooster, which measures and optimizes when content should publish.

Prosodic, which analyzes the who, what, where, and aids publishers.

Shoutlet, which helps companies manage complex publishing at scale.

SocialFlow, which offers a solution to optimize content resonance and publishing timing.

Tigerlily, which optimizes social content to publish by theme, audience and location.

UberVU, which first mines the data then optimizes content to be published.

Social Performance Software36


SMMS Vendor Overview: Download report http://bit.ly/AltimeterSocial

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http://bit.ly/AltimeterSocial


To scale, and to improve targeting, brands will analyze content and use proven techniques in this newish medium.

Expect some brands to fully automate, and some consumers will backlash

For best results, triage which information should be optimized and what’s left best for organic natural conversations.

Trend Two Insights: Social Becomes Automated38


Agenda


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Trend Three: To Be Heard In Social, You Will Pay

The future of advertising is dependent upon social. Soon, you won’t be able to tell the

difference between conversations and ads.


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American Eagle integrates social into Times Square ads on their property:

-Paid-Owned-Earned


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Facebook Ads


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Twitter Ads are fueled by social


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Facebook limits reach –till you pay


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Adobe Social spans Paid, Owned, Earned


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New networks emerge –beyond Facebook: Bazaarvoice Media


Social Ads Set

Adobe Social, which employs Adobe acquisitions Context Optional and Omniture.

BuddyMedia, which is optimizing earned content to be ads with its Brighter Option acquisition.

Bazaarvoice, which has introduced a solution to launch social ads outside of traditional social networks.

Webtrends Social, which tracks social content off domain, ads and their performance back to the corporate website; and finally.

Wildfire which has partnered with Adaptly to measure the paid-to-owned transition.

Social Performance Software: Social Ads47


Remember, that social analysis is the requirement for quality paid and owned.

All of these channels must be used in an integrated manner.

However if you want to stand out, assume you’ll bolster content with advertising –or you leave an opening for your competitors.

Trend Three Insights: Paid Owned and Earned Converge48


Agenda



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“The only thing constant in business is change”-John Perera, my first manager


1. Bolster your existing social business in a scalable formation: Aim for Center of Excellence, Dandelion, and Let Go to Grow.

2. Be prepared to restructure your website, where sending ‘traffic’ will no longer be a measure of success as websites assemble on the fly.

3. Brands struggle with scaling social, and will seek to reach consumers. Embrace serendipity as part of your performance mix.

4. The future of social is advertising; aggregate and analyze social data to determine paid and owned content.

Four Social Business Recommendations51


Jeremiah [email protected]

m

web-strategist.com/blog

Twitter: jowyang

THANK YOU

Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.

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