Where is the Money?€€€

©Gone Fishing

Presented by John Lindsay, CEO WON, June 2008

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What is Social Media Anyway?

Social media is an umbrella term that defines the various activities that

integrate technology, social interaction, and the construction of words,

pictures, videos and audio [conversations]*.

This interaction, and the manner in which information is presented,

depends on the varied perspectives and "building" of shared meaning

among communities, as people share their stories [user generated]*, and

understandings. Wikipedia

* My addition.

The Behavior is the Medium

Conversation & Brands

“The era of Transaction Brands is giving way to Relationship Brands”

Thomas Gad,

father of the Nokia brand

member of Result Strategy Group

How do you commercialize Conversations?

FT: Web 2.0 fails to produce cash Many members of the Web 2.0 generation of internet companies have so far

produced little in the way of revenue, …The shortage of revenue among

social networks, blogs and other “social media” …. has persisted despite more

than four years of experimentation aimed at turning such sites into money-

makers. … the failure has damped the mood in internet start-up circles.

“There is going to be a shake-out here in the next year or two..” said Roger

Lee, a partner at Battery Ventures

� “If you look at some of the valuations, you wonder what fantasy of revenues

they’re based on,” said Mitchell Kertzman, VC Hummer Winblad.

By Richard Waters and Chris Nuttall in San Francisco,Published: May 26 2008 19:18 | Last updated: May 26 2008 19:18

4 Plays for Profit from Social Media

Play 1: Me & You: The User

� Business & smart integrators

� Personal users

Play 2: Community builders

� b2b

� b2c

Play 3 Community enablers: Utilities

� OTT (over the top)

� Under the Hood (UTH?)

Social Ad Agencies – “ The Connected Agency”

Play 1: Personal

My 1st Million Euro Deal in 7 days of joining Xing

1. Biz Dev. Instant access to

people globally

2. Info: Request opinion & Advice

from people I trust i.e.

purchasing, technology, people

3. Build presence, place to be

found, “yellow pages”

Other tools:

• Blog & Groups/Forums

• Netvibes – productivity

• Twitter

• Belysio

Will Try:

• Friendfeed

• CoCommment

Business User – Social Widget Ads

Web 2.0 Ads have gone mainstream

“When you have one mom talking to another, it’s powerful,” Ms. Johnson, Marketing, said. “So we’re offering them information and tools and activities; we’re not in their face with

advertising.”

Kimberly-Clark intends to devote about 35 percent of its overall marketing spending this year to nontraditional media like the Internet, said a spokesman, Joey Mooring, compared with about 25 percent in 2007 and 10 percent in 2004.

BUT: Traditional Agencies struggle to master this kind of campaigning

Trend: Deportalisation

� Bring multiplayer games to my personal profile on MySpace• A way to meet people

� Reference Selling Brands i.e. cars

� Message: Trust Sells

GEEWA Multiplayer games

Business User – Behavioral Targeting = HOT!

Catching the Big Fish €

Relevant Traffic = profit / value

The ability to score each visitor on the

basis of the quality of his visit behavior in

Real Time

Any other kind of measurement numbers

like hits, clicks, time spent… on their own,

reveal nothing about VALUE or

RELAVANCY

Every social Medium needs to convert

traffic into actionable business intelligence

with real time AI analytics systems.

This is a new frontier.

Business User – Behavioral Targeting

converting behavior into €

BT Analytics Shows you to Spend the money here3D View of Quality Behavior

Classic Analytics tells you to spend here:

Volume of Hits

Play # 2

Communities

B2B

B2C

Communities – B2B

� Function: Personal Resource Planning & Productivity (PRP) or Social

� Walled Garden / open / semi-open

� Strategy: • Utility

• Winner takes all

• Niche

� Local or global

� Profit: Membership / ad supported / utility fees for services

Play 2: Communities B2C: Go East

� QQ chips have are so

popular they are a

second currency in China

Ok – So you want to go for the Big bucks – Right?

Play 2: B2C Communities

� Big Valuations too.

� “Fantasy” or Reality?

Play 2 - B2C Community - Stardollars.

� Community of Paper doll

collectors

� From unemployment at 50+ to

generating €1 Million per day

You don’t have to go East to make it big

Play # 3

Utilities

B2C

B2B

Play 3 – Utilities Mobile

Mobile advertising would make more money than

advertising on the traditional web in a few yearsGoogle CEO Eric Schmidt

40% of Mobile web traffic today is driven by Social

Networks…providing value insight into consumer

preferences. 11. million Opera users consumed 33 MB

data, a growth of 88% in one quarterReport from Opera

Play 3: Utilities – OTT Mobile

� Social networking will fundamentally change as

your device knows who’s around you, for example.

� The reason why mobile devices will become so

important - they’ll help us (and our friends, and

maybe everyone) know where we are at all times,

driving social, advertising and other applications.

Being location aware is the single most

important feature in a mobile device

Belysio is an example of Over The Top Solution (OTT)

Play # 4

Social Advertising Agencies

Creative

Technology

Play 4: “Social” Advertising Agency

� “…. marketers [fail to] engage with consumers who, as a result, are becoming less

brand-loyal and more trusting of each other.

� To turn the tide, marketers will make the shift:

• from making messages to nurturing consumer connections;

• from delivering push to creating pull interactions;

• from orchestrating campaigns to facilitating conversations.

� Over the next five years, …[agencies & marketeers will] make this shift… by

connecting with consumer communities and will eventually become an integral part of

them."

Forrester report on The Connected Agency 2008

The Opportunity for Agencies – community operators & utility services

Summary Comments

Best Practices

� Business Models

� Ads

� Digital goods

� Monthly Fees

� Alerts

� Value added services - utilities

Profit Models: To Avoid the “Fantasy”

Best Practices

1. Purpose: Closed/ wide open/Semi-closed

2. Growth: Invitations Systems

3. Compelling: Sticky Features

4. Access: Cross-channel – mobile, on-line, off-line, iPTV… print

5. Filter: for relevancy and trust

6. Simplify Integrating different parts into one whole; productivity tools

7. Interoperability, compatibility – let systems talk openly to each other - APIs

Provide Real Value: Features = Value proposition

“Pain of Adoption” Test – is it higher or lower than the solution you are replacing?

Best Practices: Success Factors

1. Focus

2. Values

3. Atmosphere

4. Demographics

5. Behavior made tangible = wealth potential

Opportunities = Broken Process

1. Privacy

2. Authenticity - ID / identities = Trust

3. Trust Systems

4. New Value Chains

5. “Conversation-optimized” across platforms.

6. Transaction Ease: Payment Infrastructure – on-line, mobile, off-line store

7. Wealth distribution versus concentration – P2P, pay for behavior

exploitation

.Democratization of capital?

4 Plays for Profit from Web2.0

Play 1: Me & You: The User

� Personal users

� Business & smart integrators

Play 2: Community builders

� b2b

� b2c

Play 3 Community enablers: Utilities

� OTT (over the top)

� Under the Hood – supporting community functionality, services

Social Ad Agencies – “ The Connected Agency”

In the gold rush the

sellers of pick axes and shovels made the real money

Utilities are required for Plays 1, 2 and 4.

Conclusion: Where is the money?

When Social Media

Monetizes behavior it becomes

Social Commerce.

…All good business is driven and

defined by the social dimension

About WON

Business innovation integration to:�Focus vision & execution � Internationalization & expansion� Improve marketing effectiveness & accountability

Global HQ - Belgium

Group presence 12 countries, 12 partner companies, 50 professionals

Expand with Resultwww.Result.com

Recycling waste into Growth

Contact: John Lindsay, Managing Director, WON bvbaJohn.lindsay@wide-open-networks.com +32.478.338.555

D IGITAL

AVEN U E

Contributors: ©Gone Fishing

Presented by John Lindsay, CEO WON, June 2008

•Gert-Jan Van Engelen, master product marketing, artist, SparkWorks partner• Dan Romescu, mobile CTO, Sparkworks partner• Bob Stumpel, master blogger, result• Maria Sipka, community to change the world

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