Socialnetworking

Social Networking and MediaPeter Williams

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Outline

• Growth of Social networking

• Culture not technology

• Will it overtake traditional media?

• Opportunities for advertisers?

• Going Viral

• Blogs and Network tools for business

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Growth of Social media

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Current social growth areas

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Twitter on the rise

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The search began…

• Young innovator hooks in to search.twitter.com and enters “petrol price tracker” as a search term to see who has been talking about this new application…

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The conversation started…

• Young innovator directly address those identified to be talking about the petrol price tracker

and asks if they know how they get their data - note that the time that this happened…

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The problem was solved…

• Young innovator gets the answer she was looking for…within the minute.

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This is a cultural thing

• We observe what you say …but don’t believe you

• We search the social web to find out what “we” say

• We will take the word of an unknown blogger as gospel

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Today’s Leader

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Will it or has it overtaken mainstream media

• In 2007, publicly traded US newspaper companies collectively lost $11 billion, or 26% of their value.

• Print circulation for paid newspapers in the US has fallen more than 16% since its peak in 1990, and coincident growth in online audiences and online ad revenue still falls short of filling the revenue gap left by the loss in print circulation.

• Content that newspapers used to "own," from news and sports to jobs and real estate, have fragmented across different channels. Overtaken by:

– Crikey.com.au

– Seek.com.au

– Ohmynews.com

• At the same time, the increasing price of newsprint — up 11% in the past six months — makes the cost of printing a paper for fewer readers ever more costly

• 70% of Gen Y’s have broadband

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Mainstream heads social

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Social media goes ballistic

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“Citizen Journalists don’t Investigate like real ones” … Huh

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Time Spent Reading Print Newspapers Has Decreased 17% In Five Years

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Audiences Go Elsewhere For Content That Newspapers Once OwnedGen Y habits give a glimpse to the future…

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How can advertisers utilise social networks• Social networking is an activity that 37% of US adult Internet users and 70% of

online teens engage in every month, and the numbers continue to grow. eMarketer projects that by 2011, one-half of online adults and 84% of online teens in the US will use social networking.

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How can advertisers utilise social networks

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Old Marketing:

PRODUCT

PACKAGING

DISTRIBUTION

CRM

ADVERTISING

CONSUMER

How can advertisers utilise social networks

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PRODUCT

PACKAGING

DISTRIBUTION

ADVERTISING

CONSUMER

CRM

New Marketing:

How can advertisers utilise social networks

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• Often inventors don’t know what their invention is. So let their customers work it out for them.

OPEN CLOSED

Let’s work together and collaborate:

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Hackers – The “amateur professionals”

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The smart guys are outside

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I mean really smart

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Turning it into results

• Companies that are working out how to cultivate, develop and harness innovation are:

•Company of $70 billion (average growth of…?)

•9000 researchers

•Created the ‘connect and develop’ program

•45% of new initiatives discovered from non P&G employees

•R%D productivity raised by 60% - costs have fallen

•Other companies can build 70% of their cars faster, better and cheaper

•BMW estimates that 90% of innovations will come in the software and electronics areas

•Frees resources to set benchmarks in the key brand influencing fields of innovation

•A place where seekers and solvers come together

•Prizes given for successful solvers ($5,000 - $1,000,000)

•Companies can outsource the problems they can’t solve

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Hackers Rule

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Let’s work together and collaborate:

AGENCY CONSUMERS

COMPANY

INFORMATION& INPUT

INSIGHTS & IDEAS

INNOVATION& CONTENT

BETTERBRANDS

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Use of social networks for viral marketing…

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Results250,000 active users86% of visitors returned at least once57% came back 9 times or more1M+ AceBucks earned by consumers playing the game, which can be redeemed for actual shoes

Use of social networks for viral marketing…

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The little guys can do it too

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TShirt Designers and customers

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But why?

• It’s the culture

• The greater good; the bigger picture

• Kudos

• Because they can

• They can make it better, they want it better

• It’s fun

• $$$

• Careers

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Making money through new models of networking and distribution

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“I love it when a plane comes together”

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Experimenting

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Can advertisers benefit from business blogs and other business network tools?

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Can advertisers suffer from business blogs and other business network tools?

= 11% stock price drop

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Serious blogging by the big guys

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Don’t Be Shifty…

The Flog is found out!

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In conclusion

• This is both cultural and technology change

• Don’t do the radio to TV thing … think strategically

• It is about engaging not targetting

• It is tough to sell to hierarchical organisations

• Experiment .. Low cost, off brand

• It is only the beginning

• Get out and innovate