The Social Web

Presented by: Mike Spataro

Our World at Warp Speed

Here’s what happens in one second…

7 PCs are sold

9 people logon the Web for the first time

25 cell phones are sold

257 search engine queries occur

1157 videos are viewed on YouTube

2 million emails are sent

…And We’re Just Starting

1 billion people online

6 billion people to go

There is as much content on YouTube today

as there was on the entire Web in 2000.

MeMedia Generation

Fad or Force?

Top 10 Innovations of past decade….

The Software and Information Industry Association (SIIA)

BlackBerry introduced (1999)

iTunes (2001)

Consumer-Generated Content (2005)

WiFi (802.11 launched 1997)

Open Standards (HTML 4.0 released 1997)

Google Ad Words (2000)

Amazon.com (IPO May 1997)

eBay (launched September 1997)

Broadband Usage of US Internet Users Reaches 50% (2004)

Google (1998)

Feed the Beast

Worldwide users of consumer-generated content (millions)

2006

2007

2008

2009

2010

2011

NOTE: includes video, audio, photo sharing, Blogs, Wikis, Podcasts and online bulletin boards

Source: eMarketer, June 2007

128.0

147.5

169.7

195.7

225.8

253.6

Size of the Blogosphere

Source: Technorati State of the Blogosphere / 2008

Who are global bloggers?

Source: Technorati State of the Blogosphere / 2008

two-thirds are male

50% are 18-34 years old

more affluent and educated

59% have been blogging 2+ years

44% are parents

43% live in the U.S

Global Blog Readership

Source: Technorati State of the Blogosphere / 2008

43% of blogger respondents

live in the U.S.

72% publish their blog in English

(survey was only provided in English)

Bloggers are Passionate

Source: Technorati State of the Blogosphere / 2008

Blogging about Brands

Source: Technorati State of the Blogosphere / 2008

Bloggers & Mainstream Media

Source: Technorati State of the Blogosphere / 2008

Blogs are getting taken more seriously as sources of information.

More people will get their news and entertainment from blogs than from traditional media in the next 5 years.

Blogs are just as valid media sources as traditional media.

I get more of my news and information from blogs than other media sources.

Blogs are often better written than traditional media articles.

Newspapers will not be able to survive in the next 10 years.

Redefining Influential Sources

Top 100 news sources

Brands Micro-blogging

Source: Universal McCann, Power to the People - Social Media Tracker Wave 3

Social Networking

Social Networking

The Conversation Prism

Source: Brian Solis, FutureWorks

Source: Marta Z. Kagan

73% of active online users have read a blog,

45% have started their own

57% have joined a social network

55% have uploaded photos

83% have watched video clips

Social Networking

39% subscribe to an RSS feed

Consumer Profiles

In Social Networks

Passive audience is much larger than active one.

Passive

grazers

spectators

browsers

Active

contributors

creators

raters & responders

Social Media Landscape

personal / self expression

private

utilitarian

public

Horizontal peer-to-peer model

Traditional top-down model

• Bloggers • Passionate Consumers • Employees

The ability to play

between the two

Sweet Spot

• Regulators • Experts • Investors • CEOs

ENGAGE

T A L K

Intersection of Top-Down and Peer-to-Peer

Word of Mouth Rules

Most Trusted Spokesperson

2003 2007

“Person like you” 22% 51%

CEO 14% 22%

Academic 43% 48%

Regular

employee 26% 36%

Source: Edelman Trust Barometer

Decline of authority figures

Social Media - Women outnumber Men

Disney Mom’s Panel

More than 20,000 questions last year

Social Consumers Buy More

“One in three Internet users say purchase decisions swayed by social content“ -- Jupiter Research

Social networks

have caused a

fundamental shift in

the way people

interact with each

other. More than

70% of Americans

15 - 34 actively

using online

social networks.

Source: Fox Interactive Media

Social Networks Trump Other Media

Social Ratings

Social Networking Goes Professional

Social Banking and Healthcare

Mainstream Media goes Social

Consumer Interaction

Mainstream Media & Social Networking

Wikipedia - Tim Russert

Wikipedia Scooped NBC News

Social News Gathering

More than 2000 “editors” as the tragedy unfolded

Syndication of CGM Influence

Blog content syndicated to online msm

Social Media Travels Fast

Engadget knocks $4 billion off Apple market

cap in six minutes on bogus iPhone rumor.

Real Business Value

Consumer opinions are the most valued consumer

tools in a crowded marketplace.

brands need:

insight into what consumers are saying

awareness in social media networks

excitement for products

to engage with audiences

Corporate America Needs Social Media

“Does business act responsibly?”

Percentage of

respondents

who said

“yes”

Source: “Yankelovich, CNN/USA Today, and Gallup

Social Media Process

Marketers need to find the right entry point to

engage appropriately a social media dialogue.

Trust needs to increase with marketer engagement.

participate 4 share 5 evaluate 6learn 3listen 2join 1

Interactivity Engine

Talk Action Continuum

Conversational Communication

Controlled Communication

Conversational Collaboration

Controlled Collaboration

Communication Collaboration

Conversational

Controlled

Conversational Line

Participation Line

You Can Run but You Can’t Hide

“Whether or not we choose to be part of the dialogue,

the dialogue is going to happen,”… “I believe the

challenge is to make happen with us.”

-- Coca-Cola’s Tim Kopp

“Consumer-generated media … are siphoning

attention from traditional media and creating networks

of influence among consumers.”

-- Forrester’s Brian Haven

Brands Punk’d by Social Media

Not listening can hurt

“2.0” is Really About …

Source: David Armano, Logic + Emotion

people

participation =

…or procrastinate and then join the

conversation later on anyway…

join the conversation…

Conversation Architect

Don’t market messages.

Create social experiences.

Design conversations

…and relationships.

authentic

organic

genuine

conversational

Source: David Armano, Logic + Emotion

Dialogue is Fueling the “Conversation Economy”

CONVERSATION

RELATIONSHIPS

AFFINITY

COMMUNITY

Conversation Architecture

Dan Entin had a Problem

Unilever employee Mike Fortner emailed Dan

suggested ways for Dan to find store locations

sent Dan a case of Degree Sport deodorant

Dan blogged it and became brand advocate.

Brands & Bandwagons

“SELLING AND TELLING is defunct;

gone forever. With the increase of

consumer-generated media … consumers

are showing a greater need for making

connections with other people and

brands.”

Source: James R. Stengel, Global Marketing Officer for P&G

Brands Micro-blogging

Southwest Airlines

Mainstream Media Twittering

New “Prism” Channels Evolving

The Influencer Network is Changing

BLOGGERS

ADVERTISERS

PUBLISHERS

MEDIA BLOGGERS EDITORS

JOURNALISTS

“Consumers turning to each other online is not a fad anymore. Companies opening up to

customers isn’t that different from the risks associated with doing business every day.”

-- Forrester Research

CONSUMERS

Social Networking

is…

transparent

inclusive

authentic

vibrant

consumer-driven

Social Networking

is NOT…

controlled

organized

exclusive

product-driven

“on message”

Social Media Challenges for Brands

transparency

uncontrollable environment

consistent immediate participation

size and scope of the channel

role of employees in the community

Brands and Engagement

and if all else fails…