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May 2008

                                                  The impact of social media on
                                                  STM* publishers and their online
                                                  advertising income

                                                  Joep Hutschemakers



                      “Scholarly publishers need to aggressively add online to counter flat or
                      declining print dollars and not be fooled into complacency by continued
                                small growth from a large base.” (Outsell March „07)



*Science, Technology & Medical
Accelerating Growth – Build Large Audiences Through Social Media


Introduction


              These slides are part of a larger presentation on drivers of online advertising sales.
   It illustrates the impact of social media on STM publishers who want to grow their online advertising
                                   income by growing their target audiences


Key Drivers Online Advertising


                                                1) Clear & reliable Measurement & Campaign mgt

                                                2) Wide Spectrum of Online Product Solutions

        Fulfill Main Client Needs               3) Targeted – Highly Profiled Audiences

                                                4) Large Target Audiences


                                                5) Knowledgeable sales reps




                                                                                                           1
Attract Large Audiences by Applying Social Media Principles                                                                        Client Needs




                           Attract Large Audiences By Applying Social Media Principles & Technologies



                                                                                      Social Media Principle & Technologies
          Examples of Best
                                                                                                               Reacting to each Orga- Accelerating
             Practices                              Creating content        Connecting        Collaborating
                                                                                                                    other       nizing consumption
                                                                                                                                                              Ads?
                                                            Pod-            Social  Virtual            Open
URL               Description                       Blogs
                                                            cast
                                                                   Video
                                                                           network network
                                                                                              Wikis
                                                                                                      Source
                                                                                                               Forum Rating Review   Tags     RSS   Widgets

                  Discuss science news& events,
NATURE            interact global& locally
                                                     X       X      X        X        X                         X      X      X        X        X     X        X
                  (By Nature) Share&rank science
Postgenomic       knowledge across Web
                                                     X              X                                           X      X               X        X              X
                  Search science videos, screened
Sciencehack       by scientists
                                                                    X                                                                           X     X        X

WorldPharmaNews   Share & rate pharma news                                                                      X      X               X        X              X
                  News & discussion on PS&E,
cr4.GlobalSpec    subdomain of GlobalSpec.com
                                                     X                       X                                  X                      X        X              X




           Applying Social Media tactics successfully strengthens online advertising competitive position
  Larger audiences  More usage  More impressions
  More quality & profiled users  Targeted audiences                                                           All Addressing Main Client Needs
  More sponsorship opportunities
                                                                                                                                                               2
Social Media Content Outgrows Traditional Content                                          Client Needs




          User generated content via Social Media            A growing % of researchers time
          outgrows traditional content fast                  is shifting to Social Media sites

                                                          • Ph.D. students & postdoctoral fellows more and more
                                                            familiar with social networking
                                                          • On a topic like microbiology alone there are already 205
     Online Content




                             Social Media User
                                Generated                   groups on Facebook
                                                          • 130 laboratories up and running on OpenWetWare (wiki
                                                            on which researchers can share expertise)
                                                          • Nature Network: Every month 1000 of researchers sign up

                             Commercially                 • Nature Precedings: >750 entries listed to get feedback
                              Produced                      from community on preliminary findings

                      2000                  2012




     Monetization via ads purely around full text             Tactically: Apply on sites where demand for
1    articles is limited. Ad rev. growth to be achieved       impressions exceeds supply created around full
     by expanding activities into social media                text article use

                                                              Strategically: Capturing the intent by opening up
2 Besides reading full text articles, spending time
     on social media will grow as % of researchers            to collective user value in audiences already
     workflow activities                                      served                                          3
Connect Content AND Conversations                                                                                   Client Needs




 Build sites "into user click stream/ workflow“, make it a network hub that connects content & conversations


           Stem cell
                                     Content/                                                                                 Events
                                     protocols
           Cell metabolism


           Immunology
                                                                                                Reacting to each Orga- Accelerating
                                    Creating content         Connecting        Collaborating
                                                                                                     other       nizing consumption
           Bio-chemistry
                                             Pod-            Social  Virtual            Open
                                    Blogs           Video                      Wikis            Forum Rating Review    Tags     RSS    Widgets
                                             cast           network network            Source


           Organic chemistry


           Renewable energy
                                      Products                                                                                 Jobs
           Etc, etc



  Serve the Long Tail of                              Capitalize on conversations that take place on the Web:
 Scientific Social Networks                                    • Make destination site a network hub
Start with one segment and                  • Attract users from many different sites and retain some of them for a while
build blueprint to roll out to                                                                                                                   4
                                                          • Route people to relevant material elsewhere
 other segments/societies
A Case Study: Nature Publishing                                                                                            Client Needs

  Building THE destination & networking site for life scientists

                                                                                     Network theory shows the winner takes all
Nature: Leading Social Media developments                                            (Shapiro in Information Rules: A Strategic Guide to the Network)
                 in Science
                                                                                100                                               Winner
- Implementing best practices of Social Media




                                                          Market share (%) in
 principles & technology fast




                                                            terms of usage
- At global AND local level

- (THE) destination site for Scientists (in addition to                         50                    Battle zone

 Content also Events, Jobs and Products)

- (THE) networking site for Scientists

- Leading in online enhancement & innovation, few                                0                                                   Loser
                                                                                               2008                                2012
 examples:                                                                                                            Time

   - NatureJobs.com (2000)                                                                 Practice proofs right so far…
   - Connotea.com (2003)                                                                          (Source: Compete May 2008)

   - one central domain to build scale                                                                  competition



   - 3 virtual islands in Second Life
   - Partnered with BioCompare: foremost online
     buyers guide for Scientists
   - Webby Award: Best Science Website „08

                                                                                                                                                    5
Stay Ahead With Critical Mass & First Mover Advantage                                                                   Client Needs




                      Now is time to act in order to establish competitive advantage

 1. Build critical mass  value of Social Media initiatives increases exponentially with # of users
 2. First mover advantage: users limited set favorite sites  likely sites that reach critical mass first




                                           Driver        Web 2.0 User Participation                   USA       UK      FR      DE       JP     KR
• Social Media is more than a                            Read blogs                                    25%     10%      21%     10%      52%    31%
                                                         Comment on blogs                              14%      4%      10%      4%      20%    21%
  blog, regional differences need          Creating      Write blog                                    11%      3%      7%       2%      12%    18%
  to be taken into account: E.g.           content       Watch user generated video                    29%     17%      15%     16%      20%    5%
  participation highly popular in                        Upload user generated video                    8%      4%      2%       2%      3%     4%

  Asia while Europe needs to get                         Listen to podcasts                            11%      7%      6%       7%      4%     0%
                                           Connecting    Visit social networking sites                 25%     21%      3%      10%      20%    35%
  traction
                                                         Read wikis                                    22%      NA      NA       NA      NA     NA
                                           Collaborating
                                                         Contribute to wikis                            6%
• Start experimenting in different                       Participate discussion forums                 18%     12%      11%     15%      22%    7%
  regions, spreading the                   Reacting      Read ratings & reviews                        25%     20%      12%     28%      38%    16%

  workload while learning e.g.                           Post ratings & reviews                        11%      5%      3%       8%      11%    11%
                                           Organizing    Use tags                                       7%      2%      9%      10%      6%     14%
  blogs in Asia, video/ podcasts           Accelerating Use RSS                                         8%      3%      5%       4%      0%     1%
  in US                                    Numbers shown are % of all online adults and include consumers who participate at least monthly
                                           Source: Technographics surveys, 2007                      LegendaHIGH       LOW user Participation



                                                                                                                                                      6
A Social Media Vision For STM Publishers                                                           Client Needs




                                   STM Social Media Vision

     Serve and build the largest online social network around every scientific segment targeted and
                 become the network & destination site in each user (topic) segment



Social Media Benefits to STM publishers


                               1) Increase satisfaction of editors, authors, reviewers, societies

                               2) Help our users make better research driven decisions

                               3) Strengthen STM journal brands

                               4) Broadens and deepens customer understanding

    Social Media
                               5) Learn about needs first hand and test ideas

                               6) Grow commercial sales & conference revenues

                               7) Increase society contract value

                               8) Increase research workflow solution sales
                                                                                                                   7
Questions?




       Email: Hutschemakers@gmail.com
LinkedIn: www.linkedin.com/in/joephutschemakers
              Twitter: JoepHutsch
                                                  8

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Social Media Drives STM Publisher Audiences

  • 1. May 2008 The impact of social media on STM* publishers and their online advertising income Joep Hutschemakers “Scholarly publishers need to aggressively add online to counter flat or declining print dollars and not be fooled into complacency by continued small growth from a large base.” (Outsell March „07) *Science, Technology & Medical
  • 2. Accelerating Growth – Build Large Audiences Through Social Media Introduction These slides are part of a larger presentation on drivers of online advertising sales. It illustrates the impact of social media on STM publishers who want to grow their online advertising income by growing their target audiences Key Drivers Online Advertising 1) Clear & reliable Measurement & Campaign mgt 2) Wide Spectrum of Online Product Solutions Fulfill Main Client Needs 3) Targeted – Highly Profiled Audiences 4) Large Target Audiences 5) Knowledgeable sales reps 1
  • 3. Attract Large Audiences by Applying Social Media Principles Client Needs Attract Large Audiences By Applying Social Media Principles & Technologies Social Media Principle & Technologies Examples of Best Reacting to each Orga- Accelerating Practices Creating content Connecting Collaborating other nizing consumption Ads? Pod- Social Virtual Open URL Description Blogs cast Video network network Wikis Source Forum Rating Review Tags RSS Widgets Discuss science news& events, NATURE interact global& locally X X X X X X X X X X X X (By Nature) Share&rank science Postgenomic knowledge across Web X X X X X X X Search science videos, screened Sciencehack by scientists X X X X WorldPharmaNews Share & rate pharma news X X X X X News & discussion on PS&E, cr4.GlobalSpec subdomain of GlobalSpec.com X X X X X X Applying Social Media tactics successfully strengthens online advertising competitive position Larger audiences  More usage  More impressions More quality & profiled users  Targeted audiences All Addressing Main Client Needs More sponsorship opportunities 2
  • 4. Social Media Content Outgrows Traditional Content Client Needs User generated content via Social Media A growing % of researchers time outgrows traditional content fast is shifting to Social Media sites • Ph.D. students & postdoctoral fellows more and more familiar with social networking • On a topic like microbiology alone there are already 205 Online Content Social Media User Generated groups on Facebook • 130 laboratories up and running on OpenWetWare (wiki on which researchers can share expertise) • Nature Network: Every month 1000 of researchers sign up Commercially • Nature Precedings: >750 entries listed to get feedback Produced from community on preliminary findings 2000 2012 Monetization via ads purely around full text Tactically: Apply on sites where demand for 1 articles is limited. Ad rev. growth to be achieved impressions exceeds supply created around full by expanding activities into social media text article use Strategically: Capturing the intent by opening up 2 Besides reading full text articles, spending time on social media will grow as % of researchers to collective user value in audiences already workflow activities served 3
  • 5. Connect Content AND Conversations Client Needs Build sites "into user click stream/ workflow“, make it a network hub that connects content & conversations Stem cell Content/ Events protocols Cell metabolism Immunology Reacting to each Orga- Accelerating Creating content Connecting Collaborating other nizing consumption Bio-chemistry Pod- Social Virtual Open Blogs Video Wikis Forum Rating Review Tags RSS Widgets cast network network Source Organic chemistry Renewable energy Products Jobs Etc, etc Serve the Long Tail of Capitalize on conversations that take place on the Web: Scientific Social Networks • Make destination site a network hub Start with one segment and • Attract users from many different sites and retain some of them for a while build blueprint to roll out to 4 • Route people to relevant material elsewhere other segments/societies
  • 6. A Case Study: Nature Publishing Client Needs Building THE destination & networking site for life scientists Network theory shows the winner takes all Nature: Leading Social Media developments (Shapiro in Information Rules: A Strategic Guide to the Network) in Science 100 Winner - Implementing best practices of Social Media Market share (%) in principles & technology fast terms of usage - At global AND local level - (THE) destination site for Scientists (in addition to 50 Battle zone Content also Events, Jobs and Products) - (THE) networking site for Scientists - Leading in online enhancement & innovation, few 0 Loser 2008 2012 examples: Time - NatureJobs.com (2000) Practice proofs right so far… - Connotea.com (2003) (Source: Compete May 2008) - one central domain to build scale competition - 3 virtual islands in Second Life - Partnered with BioCompare: foremost online buyers guide for Scientists - Webby Award: Best Science Website „08 5
  • 7. Stay Ahead With Critical Mass & First Mover Advantage Client Needs Now is time to act in order to establish competitive advantage 1. Build critical mass  value of Social Media initiatives increases exponentially with # of users 2. First mover advantage: users limited set favorite sites  likely sites that reach critical mass first Driver Web 2.0 User Participation USA UK FR DE JP KR • Social Media is more than a Read blogs 25% 10% 21% 10% 52% 31% Comment on blogs 14% 4% 10% 4% 20% 21% blog, regional differences need Creating Write blog 11% 3% 7% 2% 12% 18% to be taken into account: E.g. content Watch user generated video 29% 17% 15% 16% 20% 5% participation highly popular in Upload user generated video 8% 4% 2% 2% 3% 4% Asia while Europe needs to get Listen to podcasts 11% 7% 6% 7% 4% 0% Connecting Visit social networking sites 25% 21% 3% 10% 20% 35% traction Read wikis 22% NA NA NA NA NA Collaborating Contribute to wikis 6% • Start experimenting in different Participate discussion forums 18% 12% 11% 15% 22% 7% regions, spreading the Reacting Read ratings & reviews 25% 20% 12% 28% 38% 16% workload while learning e.g. Post ratings & reviews 11% 5% 3% 8% 11% 11% Organizing Use tags 7% 2% 9% 10% 6% 14% blogs in Asia, video/ podcasts Accelerating Use RSS 8% 3% 5% 4% 0% 1% in US Numbers shown are % of all online adults and include consumers who participate at least monthly Source: Technographics surveys, 2007 LegendaHIGH LOW user Participation 6
  • 8. A Social Media Vision For STM Publishers Client Needs STM Social Media Vision Serve and build the largest online social network around every scientific segment targeted and become the network & destination site in each user (topic) segment Social Media Benefits to STM publishers 1) Increase satisfaction of editors, authors, reviewers, societies 2) Help our users make better research driven decisions 3) Strengthen STM journal brands 4) Broadens and deepens customer understanding Social Media 5) Learn about needs first hand and test ideas 6) Grow commercial sales & conference revenues 7) Increase society contract value 8) Increase research workflow solution sales 7
  • 9. Questions? Email: Hutschemakers@gmail.com LinkedIn: www.linkedin.com/in/joephutschemakers Twitter: JoepHutsch 8