Jeff Ragovin Mashable Connect Presentation: Adapt or Die: The Value of Social Media

Adapt or Die: How Social Media Affects Shareholder Value@JeffRagovinCo-founder and Chief Strategy OfficerMay 4, 2012

Back in 2007, social media was the new bright shiny object. It was a new era of testing in a completely unknown space.

2007

5 years later, social media is making waves – influencing massive corporate decision making power, and in some cases breaking business models.

2012

Today, companies must adapt to social or they could die.

On December 20th, 2011 a “Beautiful and Bald Barbie” Facebook page was launched. This was not launched by Mattel.

First: Power to the people…

Its Mission:

To create enough momentum to get Mattel to produce a bald Barbie product for kids with cancer

CEO of Mattel, Bryan Stockton, created a bald Barbie for a friend’s daughter, Genesis Reyes, a 4-year-old cancer patient on Long Island.

The spark and ignition point:

Jane Bingham, a cancer patient from New Jersey, and Beckie Sypin, the mother of a cancer patient in California, teamed up together to create the Bald Barbie Facebook Page.

The story spread fast...

In just a few weeks it grew from 0 fans to 3,000 fans and saw incredible engagement

One month later, January 12th, it received massive media attention and support skyrocketed further

In March, its page exploded to over 150,000 fans. Thousands of photos and stories were shared about kids with cancer.

On March 27th, Mattel announced to the world that it would produce a fashion doll that includes wigs, hats and scarves.

Play is vital to children, especially in difficult times

Mattel states:

Media outlets everywhere report

Mattel adapted to change by listening to its customers and making important business decisions that affected its company value

Mattel Shareholder value up 17% since the movement started.

Source: NASDAQ

Let’s look at another brand that tries to adapt

but fails

Eastman Kodak: 131 years of film pioneering… Until now

Today, consumer film is almost extinct

Source: PMA

Millions Millions

In 2001, Kodak acquired Ofoto, a thriving startup that only lasted 2 years before it was acquired. It was impressive – it built on the premise of digital sharing. It grew as an overnight sensation.

Digital photography sharing in the early 2000s was rampant. The biggest driver was easy sharing and community.

Kodak had a chance

Great catchy name Simple business modelUpload and Share Print if you want

Ofoto was easy…

But then it transformed Ofoto to Kodak Gallery…

…and took it to a new level.

Kodak wanted to drive digital behavior back to fuel printing, a shift from digital sharing back to physical objects.

The Kodak moment starts to fade...

Jan 19, 2012 – Kodak files for Chapter 11 bankruptcy protection with the U.S. bankruptcy court in Manhattan.

In February, Kodak stops producing digital cameras

As social became more prevalent, Kodak ignored the opportunity to turn Ofoto into one of the largest photo community sites in the world.

Kodak adapted, but fell back to its roots

On April 26th, Shutterfly, the only buyer, puts in a bid for 23.8M

Instagram is worth more today than Kodak's entire company.

April 2012: Instagram acquisition arrives.Its core was digital photos and community with no business model

Facebook purchased Instagram for $1 billion.

And tomorrow, Kodak Gallery will soon be Shutterfly, for a mere $23.8M.

Kodak’s stock, once a bustling $50.00 per share, now trading at 27 cents

Source: CNN Money

One of the most prolific and memorable brand in the world could die…

Revival: A brand that could have died

– but adapted

Ford Motor Company 2008

Ford re-invents itself in 2009Ford spent one-quarter

of its marketing dollars on digital and social media.

This was more than double the amount spent by its competitors.

Ford Fiesta launches social campaign7+million YouTube views

132,000 “hand raisers” who asked to be kept up to date on the U.S. launch of the Ford Fiesta

83% of generated audience never owned a Ford before

2010 Ford Explorer Reveal More impact than

if they had run a Super Bowl ad

Launched on Facebook with paid, owned and earned media together

“Not only did we want to reinvent the vehicle, we wanted to reinvent the way we told the story.” – Scott Monty

2010: Ford Explorer Reveal

In 2011, Ford reported its biggest annual profit since 1999

In 2012, Ford Social launches Built for Ford owners and Ford lovers

It puts social at its core

January 2012 – Ad Age "At Ford, social media is bigger than advertising.”– Matt VanDyke, director – U.S. Marketing Communications for Ford in Ad Age

Ford’s stock up 600% since investing in social

Source: NASDAQ

Is social to take all the credit for for Ford and Mattel’s success?

Perhaps, but if you ring their CEOs, I’m sure they will tell you they made the right decisions by focusing their energy on the social and digital aspect.

As brands and agencies, we must adapt to technology and use it to our advantage. Social Media has given people immediate connection to brands. Ignore it or be left in the dust.

Thank You!!

@JeffRagovin

Co-founder and Chief Strategy Officer