2. What is Social Media Anyway?
Social media is an umbrella term that defines the various activities that
integrate technology, social interaction, and the construction of words,
pictures, videos and audio [conversations]*.
This interaction, and the manner in which information is presented,
depends on the varied perspectives and quot;buildingquot; of shared meaning
among communities, as people share their stories [user generated]*, and
understandings.
Wikipedia
The Behavior is the Medium
* My addition.
3. Conversation & Brands
“The era of Transaction Brands is giving way to Relationship Brands”
Thomas Gad,
father of the Nokia brand
member of Result Strategy Group
4. How do you commercialize Conversations?
FT: Web 2.0 fails to produce cash
Many members of the Web 2.0 generation of internet companies have so far
produced little in the way of revenue, …The shortage of revenue among
social networks, blogs and other “social media” …. has persisted despite more
than four years of experimentation aimed at turning such sites into money-
makers. … the failure has damped the mood in internet start-up circles.
“There is going to be a shake-out here in the next year or two..” said Roger
Lee, a partner at Battery Ventures
“If you look at some of the valuations, you wonder what fantasy of revenues
they’re based on,” said Mitchell Kertzman, VC Hummer Winblad.
By Richard Waters and Chris Nuttall in San Francisco,Published: May 26 2008 19:18 |
Last updated: May 26 2008 19:18
5. 4 Plays for Profit from Social Media
Play 1: Me & You: The User
Business & smart integrators
Personal users
Play 2: Community builders
b2b
b2c
Play 3 Community enablers: Utilities
OTT (over the top)
Under the Hood (UTH?)
Social Ad Agencies – “ The Connected Agency”
6. Play 1: Personal
My 1st Million Euro Deal in 7 days of joining Xing
1. Biz Dev. Instant access to
people globally
2. Info: Request opinion & Advice
from people I trust i.e.
purchasing, technology, people
3. Build presence, place to be
found, “yellow pages”
Other tools:
• Blog & Groups/Forums
• Netvibes – productivity
• Twitter
• Belysio
Will Try:
• Friendfeed
• CoCommment
7. Business User – Social Widget Ads
Web 2.0 Ads have gone mainstream
“When you have one mom talking to
another, it’s powerful,” Ms. Johnson,
Marketing, said. “So we’re offering
them information and tools and
activities; we’re not in their face with
advertising.”
Kimberly-Clark intends to devote about
35 percent of its overall marketing
spending this year to nontraditional
media like the Internet, said a
spokesman, Joey Mooring, compared
with about 25 percent in 2007 and 10
percent in 2004.
BUT: Traditional Agencies struggle to
master this kind of campaigning
8. Trend: Deportalisation
GEEWA Multiplayer games
Bring multiplayer games to my personal profile on MySpace
• A way to meet people
Reference Selling Brands i.e. cars
Message: Trust Sells
9. Business User – Behavioral Targeting = HOT!
Relevant Traffic = profit / value
The ability to score each visitor on the
basis of the quality of his visit behavior in
Real Time
Any other kind of measurement numbers
like hits, clicks, time spent… on their own,
reveal nothing about VALUE or
RELAVANCY
Every social Medium needs to convert
traffic into actionable business intelligence
with real time AI analytics systems.
This is a new frontier.
Catching the Big Fish €
10. Business User – Behavioral Targeting
converting behavior into €
Classic Analytics tells
you to spend here:
Volume of Hits
BT Analytics Shows you to Spend
the money here
3D View of Quality Behavior
12. Communities – B2B
Function: Personal Resource Planning & Productivity (PRP) or Social
Walled Garden / open / semi-open
Strategy:
• Utility
• Winner takes all
• Niche
Local or global
Profit: Membership / ad supported / utility fees for services
13. Play 2: Communities B2C: Go East
Ok – So you want to go for the Big bucks – Right?
QQ chips have are so
popular they are a
second currency in China
14. Play 2: B2C Communities
Big Valuations too.
“Fantasy” or Reality?
15. Play 2 - B2C Community - Stardollars.
You don’t have to go East to make it big
Community of Paper doll
collectors
From unemployment at 50+ to
generating €1 Million per day
17. Play 3 – Utilities Mobile
Mobile advertising would make more money than
advertising on the traditional web in a few years
Google CEO Eric Schmidt
40% of Mobile web traffic today is driven by Social
Networks…providing value insight into consumer
preferences. 11. million Opera users consumed 33 MB
data, a growth of 88% in one quarter
Report from Opera
18. Play 3: Utilities – OTT Mobile
Social networking will fundamentally change as
your device knows who’s around you, for example.
The reason why mobile devices will become so
important - they’ll help us (and our friends, and
maybe everyone) know where we are at all times,
driving social, advertising and other applications.
Being location aware is the single most
important feature in a mobile device
Belysio is an example of
Over The Top Solution (OTT)
20. Play 4: “Social” Advertising Agency
The Opportunity for Agencies – community operators & utility services
“…. marketers [fail to] engage with consumers who, as a result, are becoming less
brand-loyal and more trusting of each other.
To turn the tide, marketers will make the shift:
• from making messages to nurturing consumer connections;
• from delivering push to creating pull interactions;
• from orchestrating campaigns to facilitating conversations.
Over the next five years, …[agencies & marketeers will] make this shift… by
connecting with consumer communities and will eventually become an integral part of
them.quot;
Forrester report on The Connected Agency 2008
22. Best Practices
Profit Models: To Avoid the “Fantasy”
Business Models
Ads
Digital goods
Monthly Fees
Alerts
Value added services - utilities
23. Best Practices
Provide Real Value: Features = Value proposition
1. Purpose: Closed/ wide open/Semi-closed
2. Growth: Invitations Systems
3. Compelling: Sticky Features
4. Access: Cross-channel – mobile, on-line, off-line, iPTV… print
5. Filter: for relevancy and trust
6. Simplify Integrating different parts into one whole; productivity tools
7. Interoperability, compatibility – let systems talk openly to each other - APIs
“Pain of Adoption” Test – is it higher or lower
than the solution you are replacing?
24. Best Practices: Success Factors
1. Focus
2. Values
3. Atmosphere
4. Demographics
5. Behavior made tangible = wealth potential
25. Opportunities = Broken Process
1. Privacy
2. Authenticity - ID / identities = Trust
3. Trust Systems
4. New Value Chains
5. “Conversation-optimized” across platforms.
6. Transaction Ease: Payment Infrastructure – on-line, mobile, off-line store
7. Wealth distribution versus concentration – P2P, pay for behavior
exploitation
Democratization of capital?
.
26. 4 Plays for Profit from Web2.0
Play 1: Me & You: The User
In the gold rush the
Personal users sellers of pick axes
Business & smart integrators and shovels made
the real money
Utilities are required
Play 2: Community builders for Plays 1, 2 and 4.
b2b
b2c
Play 3 Community enablers: Utilities
OTT (over the top)
Under the Hood – supporting community functionality, services
Social Ad Agencies – “ The Connected Agency”
27. Conclusion: Where is the money?
When Social Media
Monetizes behavior it becomes
Social Commerce.
…All good business is driven and
defined by the social dimension
28. About WON
Recycling waste into Growth
Business innovation integration to:
Focus vision & execution
Internationalization & expansion
Improve marketing effectiveness &
accountability
Global HQ - Belgium
Group presence 12 countries, 12
partner companies, 50 professionals
Expand with Result
www.Result.com
Contact: John Lindsay, Managing Director, WON bvba D IGITAL
John.lindsay@wide-open-networks.com +32.478.338.555 AVEN U E