WOM in Social Networks - Marketing 1:1:Millions

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Marketing 1:1: Millions

Debra Aho Williamson Senior Analyst, eMarketer

Social Networking:

Slide 3

eMarketerTNS PwC

Who is eMarketer?

30,000-foot view

IDC

Forrester Ipsos IAB

comScore

USDCNielsen//NetRatings

Zenith

“To get one opinion is probably not the right way to go.”

We aggregate and analyze data from hundreds of sources – to make sense of the chaos of numbers and trends

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What’s On Tap Today

• Social Networking Circa 2006• Key User Metrics• Who’s Advertising• Social Network Ad Spending • What’s Next in Social Networking

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Is This Your Image of Social Networking?

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Social Networking Circa 2006

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Lots of Fish in the Sea …

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People Visit Social Networking Sites Regularly

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Young People Are 2x Likely to Visit

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Yes, Social Networking is a Buzzword

Media mentions (thru 11/30/05 and 11/30/06):

2,257

28,596

611

5,437Source: Factiva

2005 2006

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Rupert’s Change of Heart?

“God knows what we’re going to do with MySpace.” (July 2006)

“This thing may be worth $6 billion!”(November 2006)

“Let me ring up Sumner

Redstone …”

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Key User Metrics

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Unique Visitors Soar … Then SlowUS Unique Visitors to MySpace and Facebook,

November 2005-October 2006 (source: comScore)

26.7

56.1

15.1

55.851.4

11.114.1 13.3

0

10

20

30

40

50

60

Nov-05

Dec-05

Jan-06

Feb-06Mar-

06Apr-0

6May

-06Ju

n-06Ju

l-06

Aug-06Sep

-06Oct-

06

Mill

ions

MySpace Facebook

Up 27%Nov-Maybut only 7%May-Oct.

Up 92%Nov-Maybut only 9%May-Oct.

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Other Metrics Remain Strong: Time Spent

+29.8%175.3135.1Facebook

+12.4%1,7901,593Total Internet

+173.1%199.473Orkut

+184%20672.5MySpace

-212.8-Cyworld

% ChangeSeptember 2006

September 2005

Average Monthly Minutes Spent by US Visitors on Select Social Networking Sites (source: comScore)

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+1,981%198 Million10 MillionOrkut

+160%7.2 Billion2.8 BillionFacebook

+263%35 Billion9.7 BillionMySpace

+2%462 Billion453 BillionTotal Internet

-165 Million-Cyworld

% ChangeSeptember 2006

September 2005

Total Pages Viewed by US Visitors To Select Social Networking Sites (source: comScore)

Other Metrics Remain Strong: Pages Viewed8% of all pages viewed

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Other Metrics Remain Strong:Average Session Time

26 minutesBebo

30 minutesMySpace

31 minutesCrushspot

47 minutesGaia Online

September 2006

Average Session Time of US Visits To Select Social Networking Sites (source: Hitwise)

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Who’s Advertising

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Select Marketers on Social Network Sites (not incl. ad network buys)

•Apple•Burger King•Chase Visa•Cingular•Disney•Columbia Pictures•Fanta

•NBC “Friday Night Lights”•Nintendo•P&G•Sony•Victoria’s Secret•Wendy’s

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Fanta Game on AIM Pages

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Honda Element on MySpace

- “Wallpaper”contest gives users utility

- “Gil the crab” spot premieres on MySpace

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“Friday Night Lights” on Bebo

- Support your local team

- Enter a scholarship contest

- Post videos and comments

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This is Advertising? Yes!

Borat have362,713 friends. How many you

has?

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Facebook’s New Ad Model

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Social Network Ad Spending

Estimates

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Online Social Network Ad Spending, 2006

$350

$95

$0$50

$100$150$200$250$300$350$400$450$500

2006

Mill

ions

US Outside US

2006 Social Network Ad Spending: $445 MM

Source: eMarketer

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US Spending to Top $2B in 2010

MySpace: 60% of total US social net spending

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International Ramps Up

Who’s in the Mix:MySpace: Japan, UK, Ireland, France,

Australia, Germany, China (planned)

Bebo: UK, Australia/New Zealand (planned)

Hi5: Spanish, French, German, Italian

Plus: Cyworld (Korea), Mixi (Japan), Skyblog (France), Piczo (Canada)

2007: Year of the global social network?

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Marketers Allocate 8% of Budget

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What’s Next in Social

Networking

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The Vertical Opportunity

*Strong niches: Moms, Hispanics, career*

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Social Commerce

E-Commerce Activities That Interest Social Network Visitors, November 2006

(Source: American Marketing Association)

51% 51%47%

29%

0%

10%

20%

30%

40%

50%

60%

Learn aboutsales or get

productdiscounts

Downloadcoupons

Search for giftideas

Buy products

Social net sites account for 6% of

traffic to retail sites, up from 2.5% in 2005.

(Hitwise)

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Search Adds Real Revenue –and Better Results

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Better Ad Measurement is Imperative

• It’s showtime, folks!• “MySpace provides very amateur

measurements. MySpace grew so quickly they were more concerned about keeping the cables connected than about providing ROI.”

– Anonymous agency executive

*DEMAND ADEQUATE MEASUREMENT*

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Your Brand + Questionable Content = Death By Social Networking?

1.Cede control?

2.Do scenario planning

3.Go slowly –buy “safe”content areas

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No One Has Figured Out UGC Yet

“The user-generated stuff -- we haven’t really cracked the nut there in terms of advertising on that. … We obviously are getting a tremendous amount of traffic, but that’s a huge area of opportunity for us.”

– Michael Barrett, Fox Interactive Media

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Promote User Engagement

• 31,000 members• 4 student-created

groups bashing the campaign

• No “comments”section – where’s the interaction?

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But Don’t Get Too Close for Comfort

• Marketing against user profiles is exciting, but risky

• Pick your tags carefully

• Do you want to compromise your customers’ trust?

http://vids.myspace.com/index.cfm?fuseaction=vids.individual&videoid=1481334036

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Thank you! Debra Aho Williamson

[email protected]