Social Media and Marketing:

EVOLUTION
REVOLUTION ?

or

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 Email XBox LIVE Websites IM Search

Radio DVD Ring Tones TV Blogs Magazines

Satellite Radio TiVo (Starhub PVR) Video On-Demand Newspapers Podcasting Cell Phone

Source: Darwin Day Conference, Google

Digitization of Media
New Media Old Media

Reach Mass Media

Niche Media

Source: Darwin Day Conference, Google

change has occurred in the A radical advertising and marketing World of

Source: http://www.iirusa.com/upload/wysiwyg/M1805/IIR_M1805_Seaton.pdf

Consumers are not listening anymore

Interruptive marketing has seen its 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

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
Community

Creative Class Channel

Communicate

Consumer Today

Source: http://darmano.typepad.com/logic_emotion/files/logic_emotion.ppt

Consumer Touch Points

Blog Sites
Reads his friends postings

Music Sites
Reads up on new cd releases

Movie Sites
Buys tickets online

Downloads Songs

Sports Sites
Gets the latest updates on favorite teams

Gaming Sites
Looks for information about Nascar games Checks scores

Google.com
Searches for whats cool

Source: Darwin Day Conference, Google

Social Media 1.0

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

They share one or more characteristics

Participation

Openness Connectedness

Conversation

Community

Getting from me to them

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 buys for display advertising

$ $ $

Newspaper Magazines 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 display advertising in heavily trafficked site

$ $ $
$ $ $ $

Newspaper
Magazines Web Video

Forums Comments 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

Pay for less

Smaller, targeted media buys for contextual advertising

$ $ $ $ $ $

Collaborative Publications
Revenue Share

Co-creators

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 readers mind and heart is created, through which we advertisers can establish communication.

Advertiser with Readers Digest

The new paradigm

Attention

Engagement

Different levels of engagement

Belonging
Having sense of shared values and common experience,

Identification
Most basic level of engagement

Commitment
People who are passionate enough to devote lot of time 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

c) Social Media:
- Timeline - Social Media Trend - Social Media - Word of Mouth

Area of Research

- 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!