trends & benefits of social networking burges salmon talk april 11

Trends and benefits of social media/networking

Steve Virgin, Media Focus UK

Media Focus UK – Strategic Intelligence in a Digital WorldSocial media, Consultancy, Reporting, Media Analysis


What is social media

The 1:9:90 Rule

It is no longer new...it’s natural...as everyone is online

Making money from social media

New ways of communicating

Social implies the interaction of individuals within a group or community.

Media generally refers to advertising and the communication of ideas or information through publications/channels.

Taken together, social media simply refers to content generated and sustained by the interpersonal interaction of individuals through a specific medium or tool – for the purposes of today’s presentation


http://www.internetworldstats.com/stats.htm


• One in three on planet use internet

• Just under 2bn people

• Europe 60% penetration

• USA 78% penetration

• Africa 11% - growing 2,357% annually

• Latin America 35% - growing 179%

• Middle East 30% - growing 1,825%

• One in three on planet use internet

• Just under 2bn people

• Europe 60% penetration

• USA 78% penetration

• Africa 11% - growing 2,357% annually

• Latin America 35% - growing 179%

• Middle East 30% - growing 1,825%

5

Social Media Users | Who are they?Creators

Publish a blog/own websitesUpload original audio/video contentCompose articles or stories and post them

CriticsPost ratings and/or reviewsComment on editorial news and/or blogsContribute to forums and/or wikis

SpectatorsRead blogs, forums, ratings and/or reviewsWatch videos and/or listen to podcasts


6

90-9-1 Principle: The Inequality of the Web

Source: Jakob Nielsen - Participation Inequality: Encouraging More Users to Contribute


7

• We did all this before – we now do it digitally

• We are doing it faster

• We feel empowered

• We are part of a wider audience

• We want to be valued

• We want to be listened to

• Our expectations on service are the highest they have ever been

• We did all this before – we now do it digitally

• We are doing it faster

• We feel empowered

• We are part of a wider audience

• We want to be valued

• We want to be listened to

• Our expectations on service are the highest they have ever been

Source: TNS

The net is no longer ‘new’ it is natural



• Fan-driven page for Coca Cola

• Subsequently adopted by the company

• Site has 22.5m fans as of 20/02/11

• Fan-driven page for Coca Cola

• Subsequently adopted by the company

• Site has 22.5m fans as of 20/02/11


• Share price tumbled by around 10% costing the company (at least initially) around $180m

• Share price tumbled by around 10% costing the company (at least initially) around $180m

http://www.seoptimise.com/blog/2009/07/united-airlines-lose-millions-youtube.html

• Don’t take customer complaints seriously enough!

• They can hurt you in other ways too

• Video for song has had more than 6m views & 40,000 5 Star ratings

• Don’t take customer complaints seriously enough!

• They can hurt you in other ways too

• Video for song has had more than 6m views & 40,000 5 Star ratings


• If you don’t manage social media sites, activists will do it for you

• And if you annoy customers or users in some way

• They’ll hijack your brand and return the compliment

• If you don’t manage social media sites, activists will do it for you

• And if you annoy customers or users in some way

• They’ll hijack your brand and return the compliment

Threadless

http://www.collective-e.com/blog/business-model-works-threadless-generated-10-million-profit-30-million-sales11


• An astonishing profit

ratio for this

business model

• $10m profit from

$30m in sales

• You design your

own T-shirt

• Community votes on

best ones

• Company prints

them

• An astonishing profit

ratio for this

business model

• $10m profit from

$30m in sales

• You design your

own T-shirt

• Community votes on

best ones

• Company prints

them

Dell makes millions via Twitter

http://www.techwatch.co.uk/2009/12/09/dell-makes-millions-via-twitter/ 12


• Just another ‘sales channel’

• Cheaper to run

• Can pass on cost to consumer

• Delivery & quality of goods key

• But making money from a new channel

• Just another ‘sales channel’

• Cheaper to run

• Can pass on cost to consumer

• Delivery & quality of goods key

• But making money from a new channel


• Many channels

• A lot of noise

• Potential to do a lot of good + a lot of harm

• Many channels

• A lot of noise

• Potential to do a lot of good + a lot of harm


• The potential audiences for good content are now greater than they have ever been

• The potential audiences for good content are now greater than they have ever been

Heineken – new ways of message penetration

http://www.youtube.com/watch?v=hzlVyCgZBdY


• Viral campaign

• Handed out widgets for users to use on their ‘friends’ sites to match friends to these viral characters

• Message spread faster, recall higher than ever was through a paid for research campaign and promotion route

• Viral campaign

• Handed out widgets for users to use on their ‘friends’ sites to match friends to these viral characters

• Message spread faster, recall higher than ever was through a paid for research campaign and promotion route

http://mashable.com/2009/09/22/social-media-business/


• The route to top class customer service is often ridiculously simple

• Talk to them, listen & respond

• The route to top class customer service is often ridiculously simple

• Talk to them, listen & respond


• Social media is not a new channel to reach consumers,

• It is a channel they will use to learn about you, discuss what you do

• And they will contact you in seconds

Social media is ‘cool’ in terms of CSR

http://mashable.com/2009/12/16/telstra-social-media/



Many thanks for listening

For further information: [email protected]

Follow me on Twitter: @MediaFocus or @BarkingBirdy

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