Planys Niche Social Network Overview

INTERNAL
NICHE SOCIAL NETWORK
OVERVIEW

Internal
Niche Social Networks

DIGITAL MARKETING
Digital Marketing expenditure is growing very
rapidly – 9% in 2013 alone.
Magazine advertising is shrinking b 3% per year.
For every $1Bn of sales $25M is spent on
Digital Marketing.
50% of all DM spend is outsourced (Agency)

24.1% of DM spend is digital advertising,
content generation and management

Internal

DIGITAL MARKETING
Agency sourced creative content generation
and Social Media campaigns are the major
components of DM spend

DM activities focus on viral content sharing
and social media engagement (i.e. ‘Likes’
and ‘Sharing’)

BUT HOW EFFECTIVE IS THIS
AS A METHOD OF CUSTOMER
ENGAGEMENT?

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HOW DOES IT WORK?

Your Digital Marketing $

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HOW DOES IT WORK?

Agencies - extract content generation &
campaign management revenue

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HOW DOES IT WORK?

Facebook - extracts your customer’s social data which is
then used to generate revenue from ‘targeted’ banner ads

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HOW DOES IT WORK?

You – return short term increased awareness expressed in
anonymous ‘Likes’ and ‘Shares’ – but no customer data.

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HOW DOES IT WORK?

The cycle repeats – because your competitors are doing
the same thing and you need to create differentiation.

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RECENT REPORTS SAY
“Facebook is failing marketeers”..“..the vast majority of
Facebook interaction is now almost entirely based on
conventional Web 1.0 banner ads…………..less than 15% of
display ads make use of Facebook’s social data to target
relevant audiences....”
(Nate Elliot Forester Research Oct 2013)
1 in 3 companies that do measure ROI report negative ROI
Exceptional examples of success are often held up as the
rule

Campaigns focus on short term awareness based on
creative content - rather than genuine customer
engagement!

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ITS JUST ADVERTISING
Facebook generates ad revenue based on page impressions
rather than genuine customer engagement
This is really no different from conventional
broadcast/publication advertising
Does not fulfil the ‘customer engagement’ promise of social
media marketing.
Fails to exploit the Social Media opportunity
But – its even more serious than that!

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Why? There is only one reason – Data!
Social Media channels are becoming the new
custodian of customer data – demographics
wants and aspirations!
Brands stand to lose the lifeblood of their
business – a deep understanding of their
customers. Will Brand Market Cap fall in
proportion to Social Media’s overvaluation?

Brand Market Cap

Social Media market cap is currently $190Bn –
more than18 times the predicted value of the
Social Media market in 2017. i.e. hugely over
valued by conventional measures. (Forbes
November 2013)

Social Media Market Cap

$ MARKET CAP

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AN ALTERNATIVE
This might be fine for some Brands - but for others interested in
truly engaging with customers there is an alternative approach.
Dedicated/Niche/Vertical Social Networks - based on INTERESTS:
• More directly relevant - members specific interests
• More engaging for members - more frequent interaction
• Greater value to both subscribers and Brands
Niche Social Networks offer:
• Deeper engagement with your community of customers
• Peer generated content and self sustained interest
• Access to Social Data - you own the data
• New revenue opportunities - highly targeted ads & sponsorship
• A unique new way to compete

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THE RISE OF NICHE
Niche Networks are on the rise

• Quora (Interest Focused) – 500,000 members within 1 year
• Kaboodle (Shoppers Network) – 800,000 members, 12M visits/ mth
• Ravelry (Knitting & Crocheting) – 3.5M members
• Flixter (Movies) – 15M/month
• RealRider (Motorbiking) – 12,000 UK members since Feb 2013
By Contrast.. The Guardian April 2013 In the last month, the world's largest social network has lost 6m US
visitors, a 4% fall, according to analysis firm SocialBakers. In the UK, 1.4m
fewer users checked in last month, a fall of 4.5%. The declines are
sustained. In the last six months, Facebook has lost nearly 9m monthly
visitors in the US and 2m in the UK.

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P+N+S = INTEREST
Social INTEREST is a combination of:

Passion - the level of dedication that a user is prepared to
apply to the subject matter.
Need - to what extent the subject matter is required to
perform a professional function or to support family or social
life.
Spend - the level of expenditure associated with the subject
matter may in itself be enough to drive interest - everybody
wants value for money and to make the right purchasing
decisions.

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P+N+S = INTEREST

Niche Social Neworks are more effective when the Social
Interest Weighting of your subject matter outweighs that of the
average Facebook campaign

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P+N+S = INTEREST

Agencies Get – less of your money for incremental creative
content generation.

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P+N+S = INTEREST

Facebook Gets – less of your money for ads and less of your
customers data. Instead it is used to feed potential customers
to your Niche Social Network..

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P+N+S = INTEREST

You Get – deeper engagement, sustained interest, your own
customer data, reduced DM spend, control over features/
functions/relationship rules, new revenue opportunities.

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P+N+S = INTEREST

Your Customers Get – higher value social interaction and
relevant features & functions, based on subject matter that
they are genuinely interested in.

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COMPARISON

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ROI
Conventional SM Networks

Niche SM Networks

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SYSTEM OVERVIEW

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SYSTEM OVERVIEW
Unique functionality
and content based on
your subject matter
and member interests

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SYSTEM OVERVIEW
Control over social
relationships, content
distribution and direct
engagement with
members

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SYSTEM OVERVIEW
Drive membership
using conventional
social media and
‘must have’
applications

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SYSTEM OVERVIEW
New monetization
opportunities based
on targeted ads/
spons, subscriptions
& ecommerce

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EXAMPLE
REALRIDER - A dedicated social network for Motorcyclists

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INTEREST WEIGHTING
Motorcyclists are extremely passionate about their bikes. There is
significant nostalgia, aspiration and recreational activity around
the subject.

The need is to stay safe. Motorcyclist s are 3 times more likely to
be fatally injured in an accident than any other motoring group.
Skills, hazards and emergency responses are all significant factors.
Clearly motorcycles themselves are a major purchase. However,
aftermarket items, insurance and accessories are also expensive
contributing to and average cost of ownership of around $8000p.a.
Heavy. Motorcycling is a serious hobby featuring significant
Passion, Need and Spend for the enthusiast

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KEY FUNCTIONS
Real time GPS route tracking allows users to record
and share routes.
Users also record POI’s such as fueling points,
places to stay, places to eat, scenic views and road
hazards to share with other users
Full range of typical social media message board
and relationship tools.
Additional social functions such as your ‘GARAGE’
which is a place to store and share information
about the bikes you have owned and the bikes that
you aspire to own.
Events calendar – publishing public and private
events

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KEY FUNCTIONS
REALSafe – a crash detection Smartphone
application that uses motion sensors to detect
possible crash events.
On detection users have 90s to confirm that they are
OK – otherwise a message is sent to emergency
services containing:
Use ID, blood type, location, incident severity
This is the only UK Emergency Services approved
application of its type.

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MEMBER AQUISITION
Pick up referral codes in motorcycle dealerships
Free membership bundled into insurance policy renewals

REALSafe application available in Apple & Android stores

REALRIDER Facebook page
Push links to Facebook & Twitter to share comments &
routes

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MANAGEMENT
Full range of typical and some custom social
media functions.

Content collections of images and video
generated by users. Sponsored, promotional
collections provided by motorcycle brands.

Launch hosting and technical support provided
by Planys Cloud

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MONETISATION
Monthly subscription for REALSafe application

Highly targeted demographic for Motorcycle brands
Button & banner advertising
Real time text sensing returns context based ads
Sponsored collections and event publications
Data brokering
Revenue share - insurance policy referral – Devits
Insurance
Merchandise sales

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NATURAL HOSTS
So should any organisation implement a Niche Social
Network?
There are some things to bear in mind!
Social Interest Weighting should be heavy enough to sustain
interest for users. Passion needs to be genuine and not
synthetic. Nobody is really actually passionate about Coke –
that’s just marketing hyperbole.
A perception of independence is important – people do not
want to feel that they are being sold to.
This may appear to preclude Brands that operate in a
competitive environment. But it would not preclude Brands
that are in themselves iconic or embody the interest itself.

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PUBLISHERS
Newspaper & Magazine ad revenue
shrinking at 3% per year – while mobile
& social media advertising is growing at
24.5% p.a. (Telegraph Dec 2013)

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PUBLISHERS
Stem the loss of market share

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PUBLISHERS
Immediate community based on
readership. Leverage members from
Social Media channels

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PUBLISHERS
Immediate community based on
readership. Leverage members from
Social Media channels
Existing advertising relationships &
content generation capability

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COLLECTIBLES
Provide a social environment for
your customers to indulge their
passion

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COLLECTIBLES
passion
Direct path to purchase & new
revenue streams such as
advertising, vouchers,
sponsorship and secondary
market sales

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COLLECTIBLES
passion
Direct path to purchase & new
revenue streams such as
advertising, vouchers,
sponsorship and secondary
market sales

Provide a point of introduction for
new enthusiasts by driving traffic
from other social networks

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EVENTS & SHOWS
Extend the conversation before
and after the event

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EVENTS & SHOWS
and after the event.
Maximize participation & booking
revenues

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EVENTS & SHOWS
revenues
Identify influencers and key
figures

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EVENTS & SHOWS
revenues
Identify influencers and key
figures
Become a source of market
intelligence by understanding
what customers really want

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PROFESSIONAL
Trade associations, professional
bodies & networks

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PROFESSIONAL
Trade associations & professional
bodies & networks
Provide an online place for
professional interaction &
exchange

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PROFESSIONAL
bodies & networks
exchange
Publish business & job
opportunities. Find collaborative
partners

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PROFESSIONAL
bodies & networks
exchange
Publish business & job
opportunities. Find collaborative
partners
Source of peer to peer
professional education, training
and discussion of industry issues

INTERNAL

FOR MORE INFO
Please contact:
PLANYS CLOUD LIMITED
Carnegie Conference Centre,
Halbeath Road
Dunfermline, Fife KY11 8DY
www.planyscloud.com
Joe Henry
E-mail: joe@planys.com
Mobile: +44 (0) 7970578266

Planys Niche Social Network Overview

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