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
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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
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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
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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
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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
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