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Three Tales about
 Social Networks

                Bernard Leong
 Co-Founder, Chlkboard and Partner, Thymos Capital LLP
     Editor, SGEntrepreneurs and This Week in Asia
                Twitter/GMail: bleongcw
                                                         1
Concept of Social Networks

                             2
Social Networking
                      Offline   Online
     Activity




   Invite to the
    network or
networking session




Registration to the
   network or
networking session


                                        3
Social Networking
                    Offline   Online
     Activity




 Connecting with
  people in the       
    network




     Sharing
 Information and
  discuss issues
in the networking
      session

                                      4
Social Networking
                      Offline   Online
     Activity




Follow up with the
people you meet in
   the network




Provide a profile of
     yourself



                                        5
What has really changed with the transition of
communities or social networks from offline to online?
                                                        6
Social Gaming is propagated
                     by trusted referrals among friends in a
                                 social network




Shifting Social Activity from Offline to Online.
                                                          7
Scalability: Extension of a user’s reach is
  happening very quickly in real time
                                              8
The extension of activity is the ability to interact with
  someone without the need to meet face to face
                                                            9
Global Trends & Observations of
        Social Networks
                                  10
Global              Global            % Point
                                                          Active              Active           Increase in
Rank                          Sector                                                             Active
                                                          Reach               Reach
                                                          Dec 08              Dec 07             Reach

    1                         Search                       85.9%               84.0%              1.9%

                      General Interest
    2                                                      85.2%               83.4%              1.9%
                      Portals (News)

                          Software
    3                                                      73.4%               72.0%              1.4%
                        manufacturers

    4              Online Communities                      66.8%               61.4%              5.4%

    5                          Email                       65.1%               62.5%              2.7%

Global Faces & Networked Places March 2009: A Nielsen Report on Social Networking’s New Global Footprint
                        Source: Nielsen Online Global Index, Dec 2007- Dec 2008

                                                                                                           11
12
Created by Vincenzo Cosenza based on Alexa & Google Trends for Websites.
Reference: “World Map of Social Networks Shows Rise of Facebook” by Robin Wauters, TechCrunch, 21 Dec 2009
                      http://www.techcrunch.com/2009/12/21/world-map-social-networks/



                                                                                                             13
By Dec 2009, here is how social networks in Asia looks...




                                                                       East Asia
                                                                       SEA + India + Australia




Interesting Note: Facebook has taken over CyWorld by end 2009 as the
             most dominant social network in South Korea.
                                                                                                 14
Revenue (US$)      350-500M                             1B
                      (Rumored)                  (Tencent Annual Report)



   Profit (US$)          0M                             475M
                      (Rumored)                  (Tencent Annual Report)



 Profit Margin (%)        0                              45%

 Number of Users      350M                             400M

Revenue generated
                       10%                             88.5%
   from users
Average Return Per
                     US$1.75                         US$2.77
   User (ARPU)
                                  Source: Benjamin Joffe, TenCent and TechCrunch
                                                                              15
Social Networks For Businesses
                                 16
Kaixin001 - Stealing Car Parks Social Game
          started with General Motors Buick
10% of media budget to increase 6.7% growth in car sales.

                                                        17
Minihompy Phenomenon
                              extended to brands,
                             for e.g. Motorola Razr




   Measure number of
comments, user visits and
who have viewed this page




                                                      18
Facebook Page: Brewerkz




                                                                          Status Message



Location, Phone
                                                                      To ramp up the
                                                                      number of fans,
                                                                     they gave the 1st
                                                                    1000 fans a voucher
Number of Fans                                                          to free beer




                  The page also shares events and photos of the company
                                                                                           19
How to measure ROI for marketing for Facebook
                           Source: Ogilvy 360 “Facebook For Businesses”
                                                                      20
And One Last Thing...




                        21
Mobile Social Networks
✦   “Location, Location, Location”
✦   Augmented Reality
✦   Social Networks + Gaming =
    Gree.JP, Gowalla/FourSquare,
    BuUuk, Foyage, My Town - The
    next wave after Twitter &
    Facebook?




                                      22
In Summary
✦   Context: Planning community
    engagement requires understanding of
    cultural, social and political conditions.
✦   Converse: Deploying community
    engagement utilizes tools that allow
    maximum reach and interaction with
    people based on social networks.
✦   Convert: Set milestones and metrics
    that helps you to decide whether a
    course of action deploying the social
    network have been fruitful.


                                                 23
Discussion Topics
✦   The rise of micro-transactions in Social
    Networks: Could it be a deterrent to getting quality
    interaction and engagement?
✦   The mobile-web economy: Will social networks
    move away from the web towards the mobile or
    complementary?
✦   The abuse of social networks: Privacy & Identity
    Fraud. How do you assure brands that you can
    facilitate a social media campaign with social
    networks?
                                                           24
My Projects and URLs you can locate me:




http://www.sgentrepreneurs.com                                    http://www.thymoscapital.com


                                           http://chlkboard.com




   Untitled Book Project on Internet &
   Social Media in Asia with Michael
                                                                  http://www.thisweekinasia.net
         Netzley & Nicholas Khoo



                             You can contact me via GMail/Twitter/Skype: bleongcw
                                  and go to my blog: http://bernardleong.com

                                                                                              25

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Three Tales of Social Networks Shift Online

  • 1. Three Tales about Social Networks Bernard Leong Co-Founder, Chlkboard and Partner, Thymos Capital LLP Editor, SGEntrepreneurs and This Week in Asia Twitter/GMail: bleongcw 1
  • 2. Concept of Social Networks 2
  • 3. Social Networking Offline Online Activity Invite to the network or networking session Registration to the network or networking session 3
  • 4. Social Networking Offline Online Activity Connecting with people in the network Sharing Information and discuss issues in the networking session 4
  • 5. Social Networking Offline Online Activity Follow up with the people you meet in the network Provide a profile of yourself 5
  • 6. What has really changed with the transition of communities or social networks from offline to online? 6
  • 7. Social Gaming is propagated by trusted referrals among friends in a social network Shifting Social Activity from Offline to Online. 7
  • 8. Scalability: Extension of a user’s reach is happening very quickly in real time 8
  • 9. The extension of activity is the ability to interact with someone without the need to meet face to face 9
  • 10. Global Trends & Observations of Social Networks 10
  • 11. Global Global % Point Active Active Increase in Rank Sector Active Reach Reach Dec 08 Dec 07 Reach 1 Search 85.9% 84.0% 1.9% General Interest 2 85.2% 83.4% 1.9% Portals (News) Software 3 73.4% 72.0% 1.4% manufacturers 4 Online Communities 66.8% 61.4% 5.4% 5 Email 65.1% 62.5% 2.7% Global Faces & Networked Places March 2009: A Nielsen Report on Social Networking’s New Global Footprint Source: Nielsen Online Global Index, Dec 2007- Dec 2008 11
  • 12. 12
  • 13. Created by Vincenzo Cosenza based on Alexa & Google Trends for Websites. Reference: “World Map of Social Networks Shows Rise of Facebook” by Robin Wauters, TechCrunch, 21 Dec 2009 http://www.techcrunch.com/2009/12/21/world-map-social-networks/ 13
  • 14. By Dec 2009, here is how social networks in Asia looks... East Asia SEA + India + Australia Interesting Note: Facebook has taken over CyWorld by end 2009 as the most dominant social network in South Korea. 14
  • 15. Revenue (US$) 350-500M 1B (Rumored) (Tencent Annual Report) Profit (US$) 0M 475M (Rumored) (Tencent Annual Report) Profit Margin (%) 0 45% Number of Users 350M 400M Revenue generated 10% 88.5% from users Average Return Per US$1.75 US$2.77 User (ARPU) Source: Benjamin Joffe, TenCent and TechCrunch 15
  • 16. Social Networks For Businesses 16
  • 17. Kaixin001 - Stealing Car Parks Social Game started with General Motors Buick 10% of media budget to increase 6.7% growth in car sales. 17
  • 18. Minihompy Phenomenon extended to brands, for e.g. Motorola Razr Measure number of comments, user visits and who have viewed this page 18
  • 19. Facebook Page: Brewerkz Status Message Location, Phone To ramp up the number of fans, they gave the 1st 1000 fans a voucher Number of Fans to free beer The page also shares events and photos of the company 19
  • 20. How to measure ROI for marketing for Facebook Source: Ogilvy 360 “Facebook For Businesses” 20
  • 21. And One Last Thing... 21
  • 22. Mobile Social Networks ✦ “Location, Location, Location” ✦ Augmented Reality ✦ Social Networks + Gaming = Gree.JP, Gowalla/FourSquare, BuUuk, Foyage, My Town - The next wave after Twitter & Facebook? 22
  • 23. In Summary ✦ Context: Planning community engagement requires understanding of cultural, social and political conditions. ✦ Converse: Deploying community engagement utilizes tools that allow maximum reach and interaction with people based on social networks. ✦ Convert: Set milestones and metrics that helps you to decide whether a course of action deploying the social network have been fruitful. 23
  • 24. Discussion Topics ✦ The rise of micro-transactions in Social Networks: Could it be a deterrent to getting quality interaction and engagement? ✦ The mobile-web economy: Will social networks move away from the web towards the mobile or complementary? ✦ The abuse of social networks: Privacy & Identity Fraud. How do you assure brands that you can facilitate a social media campaign with social networks? 24
  • 25. My Projects and URLs you can locate me: http://www.sgentrepreneurs.com http://www.thymoscapital.com http://chlkboard.com Untitled Book Project on Internet & Social Media in Asia with Michael http://www.thisweekinasia.net Netzley & Nicholas Khoo You can contact me via GMail/Twitter/Skype: bleongcw and go to my blog: http://bernardleong.com 25