CASE STUDY: BlueWorld and the Social Networking Opportunity, Elan Lohmann, Media24

Blueworld and the Social Networking opportunity

Elan Lohmann14 August 2008

1. The status of Web2.0 Nation in SA

2. Blueworld.co.za, - Fairytale in the making?

3. User-driven content and community driven content - embracing this.

4. Digital profit and online advertising opportunities – the new world

5. A summary and some highlights of the IFRA 2007 beyond the Printed Word

6. Who I think is missing the bus and who should not be?

Roadmap

State of the SA Web2.0 nation

VS

Users & products

50 000

10 000

1 mil

Users

State of the Web2.0 Nation in SA

100 000

500 000

SA domestic market

SA broadband growth

SEACOM, EASSy, UhuruNet and Infraco, telkom price down, Vodacom WiMax, 3.6mbps HSDPA & HSUPA, Neotel CDMA

Product development opportunities

$ Good

$ Good

$ Bad

top

tail

aggregator

State of the SA Web2.0 nation - skills

VS

Skills

Case study – Fairytale in the making?

Majority-owned by Media24 and the 3 founders have equity in the business

Passion

Talent

GREAT Technology platform

Garage/entrepreneurial - culture

Youth

Energy

A compact team with the Ability to innovate, move quickly and deliver

What did we buy in Jan 08?

Something FRESH*

Key metrics – so far

Up to 7500new membersa month and growing.

60 000 Unique Users

1.2 Mil page Impressions

13.5 min ave session

52% returning

(Nielsen, Jul 08)

Key metrics

****

Unique Users

Page impressions

*

Blogging

050

100150

200250

300350

400450

Jan Feb March April May June

Blogging

Photos

0

1000

2000

3000

4000

5000

6000

7000

Jan Feb March April May June

Photos

Groups

0

20

40

60

80

100

120

140

160

Jan Feb March April May June

Groups

Videos

0

20

40

60

80

100

120

Jan Feb March April May June

Videos

Key metrics – so far

DemographicsGender:

55% Female ~ 45% Male

Users by age:Under 18 17%18 – 22 35%22–26 26%+ 26 22%

Registered users 100 000

Funky people

Who care …

Interactivity, sharing, Ranking,communityGoodness“baked in’’!

Zoopedup.com is a niche community targeted at anyone over 18 who is into “Zooping up”, modifying, “pimping their rides” and racing cars. 45% of users are over the age of 26.

Users are represented by their cars in a “cyber -garage” - expanding to allow for more than one car as well as motorbikes.

The “Zoopedup Car Club” is the offline feature of the brand. It has a base in CT and small presence in JHB and KZN. Monthly breakfastruns, track days, private parties or monthly parking lot cruises are hosted.

DemographicsGender: Female 20% ~ Male 80%

Under 18 - 5% 18 – 22 - 15%

22–26 - 35%+ 26 - 45%

35 000 users26 000 forum users

19 882 email subscribers

Next steps …..

Mobile opportunity …..

Blueworld – Differentiation

Social contacts

“Gatherers”Connection

Cooperation

Communication

Real ID

Established connections

Discovery

“Hunters”

Exploration

Voyeurism

Competition

Persona (alias)

New people

MANAGE FRIENDS MAKE FRIENDS

Software platform Community

Blueworld – Niche common interest strategy

ClubbingCampus nightlifeLive musicEvents

“Pimp my ride”

Broad niche Narrow niche

Potential to extend broader Stronger global opportunity

New ?

New ?

New ?

Growing pains/agility/passion

Next big thing?

Corporate rules/practices/greed

Focus

Risks?

Opportunity beyond SA market?

Key resources

Why innovation teams are like unicorns?

1) They are supposed to magically cure ills

2) Everybody wants one

3) You can waste a lot of time trying to catch one

4) They are really just horses with an extra horn

5) They don’t do any real work plowing the (existing) fields

BONUS - everybody expects rainbows to shoot out their end

Rolf Skyberg, Disruptive Innovator, eBay, Inc.

Traditional vs Online people

Culture What behaviour are staff valued for? Print Pa Online Dp Leadership What is the leadership emphasis? Print Pd Online Dp

Action orientated Responsive Growth

Systematic Consistent Reliability

New way Innovative Change

Action Responsive Growth

Builder/Grower WHAT? Energetic; forceful Driving

Creators/Builders WHY? Visionary, conceptual, flexible

Creators/Builders WHY? Visionary, conceptual, flexible

Builders/Growers WHAT? Energetic, forceful Driving

A

D I

P P

A

D I

P P

A

D I

P P

A

D I

P P

P – Performance - Be responsiveA – Administration - Be consistentD – Development - Surprise meI – Intimacy - Understand me

Traditional vs Online consumer and product

Customer What do customers want from the organization? Print Ia Online Da Strategy What does the organization give customers? Print Ai Online Dp

A

D I I

Reliable Predictable Consistent

Understand me: Relationships Long term Understanding Empathy

Reliable Predictable Consistent Efficiency

Innovative Create response to unique needs.

Accurate Precise Systematic

More cohesion Participation Co-operation

Faster Less bureaucratic Ways of getting results

New way of doing things and accomplish results

P P

D

A P P

A

D I

P P A

D I

P P

Managing the unicorns?

Founders vs employees

Equity and ownership

Skills for hire

Digital natives, an even newer breed on the way

Accelerated expectations

Branded employees

User-driven content and community driven content – embracing it?

Let your readers write

Make them heroes

No holy cows

Who shares wins

Digital profit and online advertising opportunities

In May 2008 eMarketer has revised its worldwide social network ad spending estimates, now projecting that advertisers will spend £1 billion on social networks worldwide in 2008, rising to only £2.2 billion in 2011. The previous figure for 2011 was £2.4 billion.

Google and Yahoo still command 61% of all online US ad-spend.

User-generated content advertising projections are also lower than expected. Despite the massive size and projected growth of the user-generated content (UGC) movement, advertising revenues alongside this content will remain relatively modest.

eMarketer projects US user-generated content ad revenues of $824 million in 2012, up from $162 million in 2007. By 2012, this total will represent 1.62% of US online advertising spending, up from 0.77% in 2007.

Welcome to the new world – marketing shifts

Old marketing

Marketing mindset 1-way, 1-sided communication to tell a story

Dialogue, relationships, earn trust, build credibility

Brand equity Brand recall is the holy grail Brand value determined by customers. Will they recommend? Share?

Segmentation Group by demographics Group by behaviour, attitudes and interests

Targeting By demographics Customer behaviour/preferences

Communication Broadcast – push message to customer Interactive, search queries, commentsreviews, dialogue.

Content Professional created by marketers Professional and UGC, increasingly viral

Virality Often driven by flashy presentation andnot content

Solid content that will get people talking

New marketing

Source: Marketing to the social web – Larry Weber

Welcome to the new world – marketing shifts

Old marketing

Strategy Top down from management Bottom up building on winning ideas and customer input

Payment CPM, emphasis on cost; Advertisers buy with idea that share of voice = share of mind = share of market

ROI

New marketing

Source: Marketing to the social web – Larry Weber

Publisher Message Audience

1 to many

LettersCommentsPolls Surveys

Communication model >> 2.0

Communicate

Share

many to many

Publisher

interact

Relate

2.0

Advertiser

Local Publisher

Audience

TV

Radio

Print

Online (CPM)

Bypass

Global

New breed publishers

Ad networks

New ChannelsMobile

Blogs (PVT)

Social media

Podcasts

Video

i-TV

Search/aggregators

Audience

Audience

Audience

Audience

AudienceAudience

Content

Content

Content

Content

Content

Content

Content

Content

Content Content

Business models >> 2.0

Welcome to the new world

In the new world the customer is in charge

In the social media world you have little or no control over content and Distribution

Content is increasingly visual

Ultimately the social web will lead to customers saying “Here are the things I like, Make me an offer instead of me having to do all the work”

Welcome to the new world

Control of info continues to shift from marketers to consumers

The web is not a channel

Content (high cost professional) is a bad business to be in

The mass market will be no more

Marketers will pay for results

Highlights of the IFRA Beyond the Printed World - 2007

Be OPEN

Share

ConversationIs king2006 – F%^($ Google

2007 – F%^($ Facebook “Frenemy”“Co-op-itition”

Change

Freeze Move Re-freeze

SABC

Emerging market titles

Everyone on mobile

Mxit in the web space

…. All publishers globally …

Traditional marketing agencies

Who I think is missing the bus and should not be?

Thank you

Digital success ……..Elan LohmannGM Social Networking 24.com/Blueworld

[email protected] 333 1313

Brand of me:

www.elanlohmann.comGtalk: [email protected] me on twitter: elanlohmann