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The Future Of Social Networks

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The Future Of Social Networks – Presentation Transcript

The Future Of Social Networks Charlene Li Vice President & Principal Analyst Co-author of Groundswell Forrester Research March 4, 2008
2 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
They are online with their social networks 3 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
4 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Theme Social networks will be like air. 5 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Components of social networks Profile Universal identity Relationships A single social graph Activities Social context for activities Business model Social influence defines marketing value 6 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
My multiple identities 7 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Universal identity cli@forrester.com me@charleneli.com Mobile number 8 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Universal identity foundations • Federation (OpenID approach) • A few major players will serve as major federation focal points » Yahoo!, Microsoft, Google, Plaxo, etc. • All players must realize that they can grow the market faster/better by working together » Data Portability Group is the beginning 9 Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Bill of Rights for Users of the Social Web “We publicly assert that all users of the social web are entitled to certain fundamental rights, specifically: •Ownership of their own personal information, including: » their own profile data » the list of people they are connected to » the activity stream of content they create; •Control of whether and how such personal information is shared with others; and •Freedom to grant persistent access to their personal information to trusted external sites.” – Authored by Joseph Smarr, Marc Canter, Robert Scoble, and Michael Arrington http://blog.broadbandmechanics.com/2007/09/a-bill-of-rights-for-users-of-the-social-web 10 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
My Facebook social graph Missing Colleagues Parents Extended family School parents Neighbors Babysitter Walking group 11 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
My real social graph is much more complex 12 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Let’s end the insanity 13 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Relationships today are explicit – and a pain LinkedIn Twitter Facebook Plaxo 14 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
New “entrants” will challenge the incumbents Millions of regular users Search & deep content Ad and content networks Relationship maps 15 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Relationship mapping will be automatic and permission-based 16 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
What people do today on social networks 17 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Dave has a nice book review on Facebook 18 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
But it would be more helpful on Amazon “See friends’ reviews” 19 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
How Yahoo! could incorporate social networks Search based on what my friends finds relevant Elevate stories tagged by friends – anywhere See which of my friends owns a Focus – and what they think of Compare daily portfolio it performance to friends’ 20 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
The under-rated value of networks 21 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Endorsement value depends on your network • Your authority on the specific topic • Your network’s interest and authority on the topic • The trust level among your network on the topic 22 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
The future business model for social networks • Marketers will pay to reach and influence valuable • Each person will have their own “personal CPM”* • Social networks will compete to have the best experience for high-influence individuals * From Marian Salzman, JWT 23 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Evolution of open platforms Walled garden Ubiquitous services social networks Search freedom 1993 1999 2003 2008-9 2013 Data portability Portal aggregators 24 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Recommendations • Create linkages between services based on individually-controlled identity federation • Compete on creating the most compelling social experience, not social graph lock-in • Develop social applications that have meaning • Integrate social networks into existing activities • Design business models that reflect the value created by people’s social networks 25 contents © 2008 Entire Forrester Research, Inc. All rights reserved.
Thank you Charlene Li +1 650.581.3833 cli@forrester.com www.forrester.com groundswell.forrester.com 26 contents © 2008 Entire Forrester Research, Inc. All rights reserved.

Social Media and Marketing: Evolution or Revolution

admin — Thu, 19 Feb 2009 20:14:46 +0000

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Social Media – Presentation Transcript

Social Media and Marketing: EVOLUTION or REVOLUTION ?
Media Landscape
Marketing has changed more….. Source: Internet Advertising Bureau, 2004 Source: Darwin Day Conference, by Google
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
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
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
Digitization of Media New Media Old Media Reach Mass Media Niche Media Source: Darwin Day Conference, Google
“ A radical advertising and marketing change has occurred in the ” World of Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf
Consumers are not listening anymore Interruptive marketing has seen it’s day Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf
The Audience is creating Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf
The Audience is selecting Time Shift technology Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf
The Audience is changing Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf
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: http://www.cluetrain.com
Media Scales Source: http://darmano.typepad.com/logic_emotion/files/logic_emotion.ppt
“ 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: http://china.seekingalpha.com/article/30979
The Consumer
Cash Co-Creators Control The birth of Generation C Connected Creativity Content Conversation Consumer 2.0 Creative Class Channel Community Communicate
Consumer Today Source: http://darmano.typepad.com/logic_emotion/files/logic_emotion.ppt
Consumer Touch Points Blog Sites Music Sites Reads his friend’s Reads up on postings new cd releases Movie Sites Downloads Songs Buys tickets online Sports Sites Gets the latest updates on favorite teams Gaming Sites Looks for Checks scores information about Nascar Google.com games Searches for “what’s cool” Source: Darwin Day Conference, Google
Social Media 1.0
Social Media’s Timeline 1995 1984 1971 1979 1988 1991 1998 -2004 Personal Web Sites 1st Social Email Usenet Listservs IRC Blogs Networking Site Podcast Discussion Groups Chat Clasmates.com Wikis 2005 and beyond>> Web 2.0 apps and User-generated content take over Source: http://www.prworks.ca/wp-content/socialmedia.ppt
Growth of social media
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)
They share one or more characteristics Connectedness
Getting from me to them
“ 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: http://china.seekingalpha.com/article/30979
“ I believe the bloggers and their ideas. They are my friends and will tell me the truth, unlike ” advertisements. Source: http://china.seekingalpha.com/article/30979
Digital experiences Design Centred Content Focus INTERACTIVITY Marketers>Experience>Conversation>Relationship>Affinity
Source: http://www.darmano.typepad.com
The “satisfaction effect” Source: http://www.churchofthecustomer.com
The Evolution BROADCAST “We tell you” Examples: The New York Times, CNN Publisher/broadcaster Big media $ Newspaper buys for $ Magazines display $ advertising TV Passive readers/audience Source: www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.pdf
The Evolution INTERACTIVE “Tell us what you think of what we tell you” Examples: nytimes.com, cnn.com Publisher/broadcaster $ Big media buys for Newspaper Forums display advertising $ in heavily Magazines Comments trafficked site $ Web Video Ratings $ Smaller, targeted media buys for $ contextual $ advertising in less trafficked $ parts of the site Passive readers/audience Source: www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.pdf
The Evolution Social Media “Tell each other” Examples: Wikipedia, Slashdot, Ohmynews $ Collaborative Publications $ Smaller, $ targeted Co-creators media buys $ Revenue Share for contextual Pay for less $ advertising $ $ Passive readers/audience Source: www.managementinnovationgroup.com/docs/MIG_Social_Media_Poster.pdf
“ Engagement is all about ” making it relevant to the consumer. James Speros, Chief marketing officer, Ernst & Young
“ 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
“ 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
The new paradigm Engagement Attention
Different levels of engagement Belonging Having sense of shared values and common experience, Identification Commitment People who are passionate Most basic level of enough to devote lot of time engagement and/ or money Source: The Henley Centre/ Redwood 2003
FAITH TRUST I Believe ME
Summary a) Media Landscape: – Advertising Environment – Marketing Environment – Long Tail b) The Consumer: – Generation C – Consumer Today – Consumer Touch Points Area of Research c) Social Media: – Timeline – Social Media Trend – Social Media – Word of Mouth – Digital Experiences d) Engagement – Trust
Methodology Social Media Content Analysis Discourse Analysis Interviews Case Study
Why am I interested?  Hype  Understanding, turning it to a power tool  Future of Advertising
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?
Thank You This is a standalone presentation! This is social media!