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  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. ”
  14. 14. Media Scales
  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.
  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
  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”
  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. ”
  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!