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Social media-35304-18552

  1. 1. Social Media and Marketing: EVOLUTION or REVOLUTION ?
  2. 2. Media Landscape
  3. 3. Marketing has changed more….. Source: Internet Advertising Bureau, 2004 Source: Darwin Day Conference, by Google
  4. 4. 1. Product Proliferation Product proliferation and availability means more choice for the buyer…….. Source: Strike up the Brands. McKinsey & Company, December 2003 Source: Darwin Day Conference, Google
  5. 5. 2. Media Proliferation Today, media is fragmented • 13,500 radio stations (4,400 in 1960) • 17,300 magazine titles (8,400 in 1960) • 82.4 TV channels per home (5.7 in 1960) And the Web: • Millions of sites • Billions of pages Source: “Left Brain Marketing,” Forrester Research (April 2004); “The Vanishing Mass Market,” BusinessWeek (July 2004) Source: Darwin Day Conference, Google
  6. 6. 3. Access Proliferation • Video games • Radio • Satellite Radio • Email • DVD • TiVo (Starhub PVR) • XBox LIVE • Ring Tones • Video On-Demand • Websites • TV • Newspapers • IM • Blogs • Podcasting • Search • Magazines • Cell Phone Source: Darwin Day Conference, Google
  7. 7. Digitization of Media New Media Old Media Reach Mass Media Niche Media Source: Darwin Day Conference, Google
  8. 8. “ A radical advertising and marketing change has occurred in the World of ” Source:
  9. 9. Consumers are not listening anymore Interruptive marketing has seen it’s day Source:
  10. 10. The Audience is creating Source:
  11. 11. The Audience is selecting Time Shift technology Source:
  12. 12. The Audience is changing Source:
  13. 13. As a result “We are immune to advertising. Just forget it. ” “You want us to pay? We want you to pay attention. ” “ The Internet became a place where people could talk to other people without constraint. Without filters or censorship or official sanction — and perhaps most significantly, without advertising ” “Don't talk to us as if you've forgotten how to speak. Don't make us feel small. Remind us to be larger. Get a little of that human touch. ” Cluetrain Manifesto Source:
  14. 14. Media Scales Source:
  15. 15. “ Consumers control the online environment so brands need to think about facilitating user-created actions, not just user-generated content." Unlike newspapers and TV where the advertisers are speaking at consumers, the Internet allows for more back and forth ” interaction. Source:
  16. 16. The Consumer
  17. 17. Cash Co-Creators Control The birth of Generation C Connected Creativity Content Conversation Consumer 2.0 Creative Class Community Channel Communicate
  18. 18. Consumer Today Source:
  19. 19. Consumer Touch Points Blog Sites Music Sites Reads his friend’s postings Reads up on new cd releases Movie Sites Downloads Songs Buys tickets online Sports Sites Gets the latest updates on favorite teams Gaming Sites Looks for information Checks scores about Nascar games Searches for “what’s cool” Source: Darwin Day Conference, Google
  20. 20. Social Media 1.0
  21. 21. Social Media’s Timeline 1971 1979 1984 1988 1991 1995 1998 -2004 Email Usenet Listservs IRC Personal Web Sites 1st Social Blogs Discussion Groups Networking Site Podcast Chat Wikis 2005 and beyond>> Web 2.0 apps and User-generated content take over Source:
  22. 22. Growth of social media
  23. 23. What is social media? Social media describes the online technologies and practices that people use to share opinions, insights, experiences, and perspectives with each other (Wikipedia 2007)
  24. 24. They share one or more characteristics Connectedness
  25. 25. Getting from me to them
  26. 26. “ I post on blogs and BBS because I can express myself to millions of people at once. I like the rush, and I feel empowered. ” Source:
  27. 27. “ I believe the bloggers and their ideas. They are my friends and will tell me the truth, unlike advertisements. ” Source:
  28. 28. Digital experiences Design Centred Content Focus INTERACTIVITY Marketers>Experience>Conversation>Relationship>Affinity
  29. 29. Source:
  30. 30. The “satisfaction effect” Source:
  31. 31. The Evolution BROADCAST “We tell you” Examples: The New York Times, CNN Publisher/broadcaster Big media $ Newspaper buys for display $ Magazines advertising $ TV Passive readers/audience Source:
  32. 32. The Evolution INTERACTIVE “Tell us what you think of what we tell you” Examples:, Publisher/broadcaster Big media buys for $ Newspaper Forums display advertising in heavily trafficked site $ Magazines Comments $ Web Video Ratings Smaller, targeted $ media buys for contextual $ advertising in $ less trafficked parts of the site $ Passive readers/audience Source:
  33. 33. The Evolution Social Media “Tell each other” Examples: Wikipedia, Slashdot, Ohmynews $ Collaborative Smaller, $ Publications targeted $ media buys Co-creators $ Revenue Share for Pay for less $ contextual advertising $ $ Passive readers/audience Source:
  34. 34. “ Engagement is all about making it relevant to the consumer. ” James Speros, Chief marketing officer, Ernst & Young
  35. 35. “ People read particular magazines because of the life stages and events which currently involve them: from teenager to golfer, from having a baby to coping with retirement. ” Source: Henley Centre, Delivering Engagement 2004
  36. 36. “ The editorial/reader relationship is a one-to-one conversation, and in time it creates a bond of trust, of belief, expectation and empathy. It is through the quality of this relationship that an aperture or opening to the reader’s mind and heart is created, through which we advertisers can establish communication. ” Advertiser with Readers’ Digest
  37. 37. The new paradigm Attention Engagement
  38. 38. Different levels of engagement Belonging Having sense of shared values and common experience, Identification Commitment Most basic level of People who are passionate engagement enough to devote lot of time and/ or money Source: The Henley Centre/ Redwood 2003
  39. 39. FAITH TRUST I Believe ME
  40. 40. Summary a) Media Landscape: - Advertising Environment - Marketing Environment - Long Tail b) The Consumer: - Generation C - Consumer Today - Consumer Touch Points c) Social Media: Area of Research - Timeline - Social Media Trend - Social Media - Word of Mouth - Digital Experiences d) Engagement - Trust
  41. 41. Methodology Social Media Content Analysis Discourse Analysis Interviews Case Study
  42. 42. Why am I interested?  Hype  Understanding, turning it to a power tool  Future of Advertising
  43. 43. Research Questions (1) How can the effectiveness of the advertising budget in traditional media be held accountable? (2) What tools can be developed to assess the expenditure of monies in the new digital media? (3) How can the effectiveness of internet creative messages be evaluated empirically? (4) What elements are necessary for online media planning to be successful? (5) How can interactive and traditional advertising agencies get together to do better work in the future? (6) How can the outcomes of traditional consumer behavior research be applied in the new digital world? (7) What non-traditional methodologies might be useful in addressing the concerns of the new digital world?
  44. 44. Thank You This is a standalone presentation! This is social media!

Notas del editor

  • Good Morning everyone, This is my topic for the day : Social Media & Marketing ~ Evolution or Revolution. [click]
  • First, I’m going to present to you, the media landscape ~ which will gives us an idea what’s going around us these days.
  • Marketing has changed more. M ass media is getting worse at reaching customer. According to Businessweek, in the 1960s an advertiser could reach 80% of US Women with a spot aired on CBS, NC and ABC. Today an ad would have to run on over 100 channels to duplicate that. <click> To make maters worse even if traditional ads are show, the customers aren’t even paying attention. According to an IAB study, the % of adult viewers who could name a brand advertised in a show they just watched declined from 34% in 1965 to 9% in 2000.
  • It's a buyer’s world today. For any good or service, the number of brands and the number of sellers who can instantly reach the buyers anywhere in the world has grown dramatically over the past decade. In addition buyers have gained access to an enormous amount of information that they can “pull” whenever they want, while ignoring the majority of the marketing and advertising that is “pushed” at them. <click> Just between 1997 & 2001 pharmaceutical companies grew the average number of brands by 78%, beverage manufacturers increased their portfolio size by 25%, and the food and household goods industry added 81 new labels. <click> As if the organic growth of brands and products weren’t enough, the Web has removed geographic boundaries from the global marketplace, as online marketplaces like eBay and Craigslist enable anyone to become a seller. The size of these online marketplaces is staggering. eBay’s 135 million registered users in 2004 make it the worlds ninth largest country after Russia. Not only has the web increase reach, it has also significantly decreased costs in marketing, sales and distribution allowing sellers to profitably sell previously uneconomic niche products – the long tail phenomenon. This dynamic can’t help but shift at least some demand away from “hot” products and redefine target markets – down to smaller and smaller groups. Eventually down to “markets of one”.
  • In 1960 the average home had fewer than 6 television stations from which to choose. Today it’s more like 90, on average. The number of mass media platforms that ruled decades ago, print, radio, tv, have exploded to the extent that not one media can really be considered mass anymore . And that doesn’t even account for the new platforms – satellite radio, video on demand, PVR’s and online video games….pause… <click> Now add in the millions of websites, and the billions of web pages and you can begin to see the erosion of reaching your entire market with one simple media buy.
  • This trend has big implications for the media business: What does this mean for traditional advertising principles like reach, frequency or even primetime? Starhub have recently launched PVR (Similar to Tivo) And TIVO in the US just announced that soon, you’ll be able to program your Tivo from your mobile phone. Consumers are empowered with choice and are now squarely in control - they’re in control of how, when, & what kind of media they consume
  • Before media became digitized, we saw: A small number of media with massive reach As consumers, we were easy to get a hold of – we read the same papers, listened to the same radio programs, and watched the same television shows as everyone we knew. Marketers had it easy… but it was rare for you to see an ad that was relevant to you. [build] And now what we see, are tons of media choices, allowing marketers to reach massive amounts of people, across a massive amount, of extremely targeted media experiences. Users are moving down the long tail of media and this presents big challenges as well as big opportunities for marketers. Two key marketing challenges now exist: #1. We need to be where the users are and we need to be relevant to those users #2. We need to re-think the message and re-think the media distribution: 
  • *CLICK* As a result Consumer are saying
  • CLICK This is our media environment in the past Pre 2007- maintstream media controls majority of influence, credibility and exposure and now the future Post 2007: Creators of Social Media begin to enjoy increased visibility, credibility and audience exposure. Is this some kind of joke? No it is not? It is happening right now. What will you do if you were given 500 bucks and you are told to buy a product that you never heard of at all? You Google!, you ask questions in forum to strangers, you read review of the internet because you know that they are HONEST opinions and NOT PAID OPINIONS. They are COMMENT/REMARKS and NOT ADVERTISING!!!
  • THE PEOPLE is INTERNET= And the internet can’t exist without people. The market is people
  • Click The web has gives birth to a new generation. It is the generation C. CONTENT by the Creative Class using the web as a CHANNEL to Communicate. Turning Conversation into Community. Today media is controlled, by co-creators. Turning their creativity into CASH. THIS IS THE POWER OF BEING CONNECTED. THIS IS CONSUMER 2.0
  • Our consumer today are not DEFINITELY NOT STUPID! They are Mulitasker, They are Intelligent. They are a person to be exact. They are the Consumer, The community, The participant, The audience, The Customer, The user.
  • This is an example of today, day-to-day how consumer are using their internet for!.Being Connected is certainly IMPORTANT for them. How would you feel if you lose your handphone! Ask any of the teens these days how devastated they feel about it. Look at Sally Life. She ask her friend how was the party last night. Her friend Meray replied, check my blog , all the juicy details are just right there. Make sure you check it out. Sally always goes for movie, she is the typical last minute person. She buys her ticket via her mobile phone online because she just hates to queue. Occasionally, she checks out gaming sites and play World of Worldcraft and meet new people. When she is bored, she checks out She receives live scores sent to her mobile from the internet on her favourite soccer team. She gets her music online and download to her IPOD and plug in to a FM transmitter while driving to work. This is Sally life.! She is empowered.
  • Let’s Look at how the web has evolve. This is a social media timeline. Social media existed since 1971 and is not NEW! Blogs Open Diary 1998 Live Journal and Blogger 1999 Social Networking 1995 Friendster 2002 MySpace 2003 YouTube 2005 Second Life 2002-2003
  • Bla bla bla- Click- Blabla ..Look at the trend!! Is an upward trend. As we are talking right now! This is continuosly to grow.
  • When I first started bloging, this is what the blogging world looked like to me
  • As I discovered more in-depth how the Social Media Networks actually works, it began to look more like this: The Social Network is made up of large numbers of communities—blogs often times are bridges between these communities.
  • Marketing has traditionally been about messages Marketing is increasingly becoming about experiences These experiences are enhanced by facilitating conversations and promoting community This converts passive consumers to active participants, seeking relationships Relationships lead to loyalty, affinity, and an emotional connection. We need to design conversations. We need to stop marketing. We need to become conversation architects. experiences are designed Everyone like to have a good time, good experience. When you have good experience, you tend to talk more about it~ that’s word of mouth. Experiences are designed.
  • A good example of designed experiences. Twitter is designed, to make conversation easy. Is build on the simplicity and mobility concept. There’s no right or wrong way to use Twitter. People just use it and eventually innovate and improve it.
  • When a consumer is happy, they come back for more, they share with their friends, they are evangelist, eventually they SHOUT even louder when company value their thoughts and allow them to feel belong, a sense of ownership of the brands. Look at APPLE, before IPOD was out, everyone is talking about it, anticipate for IPOD because behind all this exist a community, a community of brand advocates! Speaking of functional attributes, doesn’t other products like SAMSUNG, IRIVER serves the same functional attributes, but why are they people still saying that they prefer more of IPOD than these brands!.. How is this applied to the social media? Social media allows participation in a community. People interacts in the community, interactions is conversation, conversation are word of mouth. They bring their knowledge to the reality and spread it out. Research says 70% of Word of mouth are done offline.! The web gives them a TOPIC, an Insight, a News to talk about.
  • Let’s look at the evolution of media. How it has evolves.!! one to many Relationship type : Reader participate in surveys or testing. Value for the user comes from : High quality of content, reliability and authority. Opportunity for business: Developing high quality content; understanding the advertiser needs and build relationship with them. Threats: Competition for advertising revenue from new media, fracturing of markets by specialty content and service providers on cable and the web.
  • Relationship type: combination of one-to-many on main site and many-to-many on segregated areas, push/pull Reader participation: while unable to directly influence content, readers are invited to comment, rate, market via email and occasionally discuss in forums ; feedback and original content are typically kept apart Value for the user comes from: the ability to customize access to a variety of content sources Opportunity for the business comes from: display and keyword advertising that can be better targeted by using posted comments , rated content and tagging ; improving loyalty by building deeper relationships with readers by allowing active participation and community building in forums ; providing better aggregation of content with social customization tools such as collaborative filtering and social networks and better distribution through RSS Threats: competition from even more participatory content sources, customization and personalization can result in narrowed world views which are contrary to some companies’ missions; allowing mass participation requires greater staff or sophisticated technologies to make reader-created areas suitable for traditional advertisers
  • Relationship type: many-to-many, push/push Reader participation: taken to a new level with readers becoming reporters, commentors, and even editors; point of view emerges from group values Value for the user comes from: an infrastructure for active participation in content creation, and a community of trusted cocreators Opportunity for the business comes from: building communities of reader/writer/editors with very high levels of participation and loyalty; reduced content creation/acquisition costs, increased audience size by creating viral groups of creator/marketers, improved content quality by providing tools for trust, reliability, and quality using technologies such as collaborative editing, reputation managers, public profiles, social networks, and recommendations based on friends and contacts Threats: hard to guarantee advertiser-appropriate user-generated content; barriers to entry may be low for competitors; group point-of-view may not match businesses; user-base may reject or try to sabotage revenue activities; legal overhead high due to unpredictability of content quality; communities are hard to jump-start and often slow to grow
  • The individuality and personality of each magazine means that readers can readily feel a close relationship with the particular magazines they choose to read. “When a magazine closely chimes in with this [consumer] self-image there is a high level of identification with the chosen magazine. There is a feeling of ownership, that this is ‘my magazine’, an informed friend. “ As a consequence, consumers expect magazine content to achieve closer personal relevance than any other medium. NFO Groups research (Absorbing Media 2002) for the PPA asked consumers which medium they expected to be most closely tailored to their individual needs, and unsurprisingly, magazines were felt to be the most likely. When asked which medium would contain the information that I am most interested in, again the consumer expectation is that magazines are more likely to provide this than other media. People buy magazines that they want to read, a magazine that shared the same beliefs with them. Something they can relate too. Is the same in the web, people read what they want to read and hear what is relevant to them, and thus people who share the same belief form communities. When they are alone they are nothing, when there are many of this lonely people getting together, they are definitely something. This is long tail!!
  • Faced with too much choice, too much media, too much marketing, consumers are effectively filtering or actively rejecting the onslaught
  • Identification – most basic level of engagement eg fans of football team, voters for a party Belonging – having sense of shared values and common experience, eg season ticket holders who gather each week, party members Commitment – people who are passionate enough to devote lot of time and/ or money, eg organisers of football supporters’ club, party activists Commitment level is for those closest to the brand, loyal core who act as brand advocates, devote high proportion of spend and will participate in events Middle – happy to be part of something, may talk about it with friends How does this concept fits into the social media scenarios. Identification- Internet users register to forum or a social network that talk about Fishing. I joined the fishing club in the yahoo groups ~ is called Aussie Fishing Group. Belonging- Being in the Aussie fishing group long enough, and they were such a huge numbers of members in the group, we decided to create our own t-shirt which is sponsored by Yahoo. The t-shirt imprints, YAHOO!.., The real aussie fishers! Commitment- Being part of the community too long, I have to play a role to keep the forum going, after all I have been assigned roles such as content moderators, I moderate people’s comments, or ban user, or I create interesting topic to talk too. I am committed. Social Media~ it engages you! Because you are just being yourself. You choose and do what you feel like doing!
  • When you have believe= You trust, You have Faith. You have me