This is my keynote presentation from the 2012 PR & Social Media Summit. My decks are not produced for download but to be presented. With layers and animation, they tend not to stand alone very well as a SlideShare deck rather than presented live with the talking points. Still, I hope you find this deck useful and interesting. Key points: - The time has come for us to throw away the simple concepts (or "bubbles" that we continue to rely upon in marketing PR and social media. - For example, if the consumer is in control, then social media cannot be a marketing medium. The data presented demonstrates why. - Social CAN be a marketing medium, but it's really a marketing medium. Meanwhile, the consumer may be more in control than ever before, but they don't foot the bill in social media, which give brands and social networks power. Neither of the first two bubbles is completely correct--we need to pop both, bring them together, and recognize that social is a medium for value, not messages, and brands need not fear empowered consumers but work mutually with them. - The next bubble to be popped is the insane chase for fans and engagement of any sort. We explore the way Facebook EdgeRank works and why it is useless to collect any fan via any means. Instead, focus on fans that have built-in affinity (or the potential for it.) If you don't have affinity, your content won't appear in fans newsfeeds, and that means you become invisible. - We explore Progressive's fan page for Flo, which looks like a success but all those fans and all that engagement couldn't help protect Progressive from its recent social media reputation event. The lacking ingredient is brand vector--moving consumers closer to the brand and not just collecting engagement for engagement's sake. - The next section of the deck explores the "social media crisis," a term that is thrown around much too loosely, As demonstrated, brands like United, NBC and Bank of America suffered from highly visible social media crises, yet their stock shows no sign of damage. - We need to stop being alarmist and over-selling the "social media crisis." Yes, these are significant events, just like a broken bone is a significant event--but no one calls a broken bone a crisis. As professionals, the time has come to prevent, manage and minimize social media crisis just a a doctor treats a broken bone, without the added hysteria of treating everything like a "crisis." - Lastly, I remind people to get out of the industry bubble every now and then. I use a "mom rule" (but your rule may be a "uncle rule" or "grandma rule"). By using this persona, it helps me to evaluate the things that will rapidly catch on (Pinterest, for example) from those that won't (Google Plus.) If you have questions or feedback, please let me know.

1. Time for Maturity
in Social Media Augie Ray
Director of Social Media
Prudential

2. Social The
Media is a Consumer
Marketing Is In
Medium Charge
@augieray #prsms

3. Social The
Media is a Consumer
Marketing Is In
Medium Charge
Source: 2012 Nielsen Global Trust in Advertising report, 28,000 Internet respondents in 56 countries
@augieray #prsms

4. ocial 71% watch more Th
edia is a time-shifted TV Consume
than they did a year
arketing ago and 96% fast
Is
edium forward through Charg
DVR ads.
Source: TVGuide.com Fall 2011 TV User Survey, October 2011; 5897 Participants
@augieray #prsms

5. l
a is a Cons
eting
um Ch
Source: 2012 IBM Institute for Business Value Beyond Digital Report
@augieray #prsms

6. 51% of consumers expect that a
a “like” will result in marketing Co
communications from brands...
ng
But 40% do not believe it
should result in marketing
communications.
Source: Exact Target, Subscribers, Fans & Followers Study, 2011
@augieray #prsms

7. Social Social media is The
Media is a medium where
a Consumer
value is exchanged
Marketing Is In
Medium and relationships Charge
are created
mutually.
@augieray #prsms

8. The Value of
Fans and Engagement
@augieray #prsms

9. More Survey:Fans
Quick Facebook
Fewer Facebook Fans
Fewer Facebook Fans
More Facebook Fans
@augieray #prsms

10. More Survey:Fans
Quick Facebook
Fewer Facebook Fans
Less Engagement
More Engagement
@augieray #prsms

11. Look! A Fan Surge!
170,000
160,000
Bank Transfer Day
150,000
140,000
11/19
130,000 159,577
120,000
110,000
100,000
10/22
90,000
66,353
80,000
70,000
10/20 10/23 10/26 10/29 11/1 11/4 11/7 11/10 11/13 11/16 11/19
@augieray #prsms

12. All Fans are Not Created Equal
High Value Fans Low Value Fans
+$ -$
@augieray #prsms

13. The Simple Facebook Equation
FansA * ∑ Ue We De = Success
@augieray #prsms

14. All Sources are Not Created Equal
Earn Pay Earn
• Product & Service Experience • Product & Service Experience
• What you stand for • What you stand for
• How you conduct business • How you conduct business
@augieray #prsms

15. The (Slightly Less)
Simple Facebook Equation
FansA * ∑ Ue We De * b = Success
@augieray #prsms

16. Look! Lots of Engagement!
Total Insurance Conversation Percentage of Social Media
Volume by Brand Conversations by Topic
Company #1
Use/Choose/
Company #2 Recommend
Switch
Company #3
Not use/Drop/
Not Want
Company #4
0% 20% 40% 60% 80% 100%
@augieray #prsms

17. Progressive’s Fan Success
∑
FansA * likese We Dtalkingb = this
4,501,045 U 52,530
e *
about Success
@augieray #prsms

18. The winner isn’t
the brand with the
most fans or
engagement.
It’s the brand with
the most valuable
fans having the
most meaningful
engagement.
@augieray #prsms

19. The Disastrous
Social Media Crisis
@augieray #prsms

20. @augieray #prsms

21. @augieray #prsms

22. • Set the record for most-watched • NBC anticipated losing $200
television event in US history. million on the games but instead
• Earned higher average prime-time broke even due to higher-than-
audience than the Summer Games expected ratings and ad
in either Beijing or Athens. revenue.
@augieray #prsms

23. @augieray #prsms

24. Bank of America reversed the debit card fee!
650,000 new credit union members!
Credit unions earned $4.5B in new deposits!
@augieray #prsms

25. Six months after fee announcement…
BoA stock up 55%, outperforming DJIA 280%!
Average deposit balances up $25 billion in Q4!
@augieray #prsms

26. cri·sis noun ˈkrī-səs
an unstable or crucial time or state of affairs in
which a decisive change is impending;
especially : one with the distinct possibility of a
highly undesirable outcome.
@augieray #prsms

27. The
Social Media
Industry
Bubble
@augieray #prsms

28. Social Media Echo Chamber
Blogs
Twitterers
Research
News
Apps
Feeds
News
Groups
Conferences
@augieray #prsms

29. The Mom Rule
Would my mom
do this?
@augieray #prsms

30. The Mom Rule
Would my mom
act on this?
know this?
@augieray #prsms

31. Keep popping bubbles or
someone will pop them for you.
Keep blowing
bubbles—the
world needs
more bubbles!
@augieray #prsms

32. Thank You
Augie Ray
@augieray
@augieray #prsms