Social Media - 8 lessons about what it is and why it's vital
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A presentation given to communicate important aspects of Social Media--what it is, where's going, how it will change offline communications and relationships, and what this all means to business.
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Social Media - 8 lessons about what it is and why it's vital
- 1. 8 Lessons on Social Media: What It Is, Why It’s Vital, and How It’s Changing Recruiting Cindi Thomas & Augie Ray September 9, 2009
- 3. 1995
- 4. 1995
- 5. Lesson One Expect change. Lots of it.
- 6. 1995 “The wake up call was finding this startling statistic that web usage in the spring of 1994 was growing at 2,300 percent a year. You know, things just don't grow that fast. It's highly unusual, and that started me about thinking , ‘What kind of business plan might make sense in the context of that growth?’” “If there’s one reason we have done better than of our peers in the Internet space over the last six years, it is because we have focused like a laser on customer experience, and that really does matter, I think, in any business. It certainly matters online, where word of mouth is so very, very powerful.”
- 7. 1995 $6.8B $1.1B $190M
- 8. Lesson Two Success in Social Media depends on the consumer experience, not on technology.
- 9. What is Social Media? Reach 1995 1517 1776
- 10. What is Social Media? Web 1.0 Web 2.0 Read Interact
- 11. What is Social Media? Web 1.0 Read
- 12. What is Social Media? Web 2.0 Interact
- 13. What is Social Media? Web 1.0 Web 2.0 Media to Person Person to Person
- 14. What is Social Media? Web 1.0 Media to Person
- 15. What is Social Media? Web 2.0 Person to Person
- 16. What is Social Media? Web 1.0 Web 2.0 Clicks &Traffic Intimacy& Influence
- 17. What is Social Media? Web 1.0 Interactions Clicks &Traffic Involvement Open, Click Rates, Opt-ins Hits, Visits, Time on Site Quality of Relationship 2009 1995 Based on Measuring Engagement: Forrester
- 18. What is Social Media? Influence Web 2.0 Intimacy Net PromoterScore, Brand Affinity, Forwarded Content, Repurchases Sentimenton blogs, Consumer opinions Interactions Intimacy& Influence Involvement Open, Click Rates, Opt-ins Hits, Visits, Time on Site Quality of Relationship 2009 1995 Based on Measuring Engagement: Forrester
- 19. What is Social Media? Web 1.0 Web 2.0 Controlling Sharing &Collaborating
- 20. What is Social Media? Web 1.0 Controlling
- 21. What is Social Media? 36 million views 195,000 ratings 284,000 comments 1.5 million hits on Google Dr. Pepper ad Web 2.0 Sharing &Collaborating
- 22. What is Social Media? Web 2.0 Sharing &Collaborating
- 23. What is Social Media? Web 2.0 Web 1.0 Read Media to Person Owning Interact Person to Person Sharing &Collaborating
- 24. Lesson Three People demand brands and media talk with, engage, share, allow sharing, and build relationships.
- 25. Where is Social Media? Web 1.0 Web 2.0 Place Placeless
- 26. Where is Social Media? Web 1.0 Place
- 27. Where is Social Media? Web 2.0 Placeless
- 28. Where is Social Media?
- 29. Where is Social Media?
- 30. Where is Social Media? All ideas compete on an equal footing. Contribution counts for more than credentials. Leaders serve rather than preside. Tasks are chosen, not assigned. Power comes from sharing information, not hoarding it.
- 31. Lesson Four Social Media is erasing the line between the virtual and the physical and is flattening the world.
- 32. Where is Social Media?
- 34. Micromedia
- 35. Social Networks
- 36. Video sharing
- 37. Goelocation
- 39. Customer Service
- 40. Events
- 41. Wikis
- 42. Livecasting
- 43. Photo sharing
- 44. Music sharing
- 45. Document sharing
- 47. How are Consumers using Social Media?
- 48. How are Consumers using Social Media? http://www.web-strategist.com/blog/
- 49. Lesson Six Social Media is leveling the playing field, giving almost the same reach to consumers as to big brands.
- 50. How are Consumers using Social Media? http://www.web-strategist.com/blog/ "I speak about it because I love it. I understand they're a family restaurant, but I think it can't hurt them to have a little spice."
- 51. Who Owns the Brand?
- 53. Lesson Seven Social Media is making the distinction between ownership and stewardship of brands more evident than ever.
- 54. Where do consumers talk about brands?
- 56. ~1M tweets in 5 hours on 8/31
- 58. 3.6M in past month
- 59. 215,000 Members
- 60. 29 million posts
- 62. 3,300 groups
- 64. Top 20 all-time posts:
- 65. 210M views
- 67. Where do consumers talk about brands?
- 69. 39% of Facebook users are older than 35 and another 25% are 26-34.
- 70. In 60 days, number of people over 35 doubledCheckfacebook.com; Insidefacebook.com
- 71. Where do consumers talk about brands? Compete.net; Data for month of March
- 73. Median age of a twitter user is 31.
- 75. Where do consumers talk about brands? Consumers are avoiding ads. Forrester: The Mind Of The DVR User: Media And Advertising
- 76. Lesson Eight Consumers’ brand perceptions will be based as much upon what they hear from others as on brands’ marketing communications.
- 77. Where do brands fit in Social Media? 0.04%
- 78. Where do brands fit in Social Media? Marketing Senior Management Product Development Human Resources Sales Public Relations Customer Service Leverage influence to improve awareness, preference, loyalty, & sales Blogs, Viral video, Communities, Widgets, Social Games Share knowledge, raise awareness, promote company, speak to external stakeholders Blogs, Microblogs Shorten dev cycles, improve adoption, attract customers, collaborate Private networks, Crowdsourcing Improve employer brand, engage candidates Microblogs, Blogs, LinkedIn, Company Facebook Profile Gain new prospects, build relationships, communicate effectively LinkedIn, Microblog Increase awareness, improve inbound links, encourage coverage Blogger relations, Social Media PR, Digg, YouTube Improve service, proactive service, decrease wait time, limit costs Blogs, Microblogs, Shared Docs, Wikis, Q&A sites
- 79. Where do brands fit in Social Media?
- 80. Lesson Nine Social Media is a new medium available to consumers and all portions of the organization.
- 82. Transparency: Business Decisions
- 83. Transparency: Brand Consistency
- 84. Lesson Ten Brands cannot hide. Transparency and authenticity are unavoidable.
- 85. Eight Lessons on Social Media Expect change. Lots of it. Focus on the experience and not on the technology. Consumers want to be engaged, not talked at. Social Media is impacting expectations in the real world. Socialization occurs everywhere. Social Media gives consumers enormous reach. Consumers own the brand more than ever. Consumer’ opinions will be based more on what they learn from others than from marketing communications.
- 86. 2023
- 87. Which is rated best overall? Which is rated bestby people in your network? Which treats employees best? Which is rated bestby people like you? Which offers best-rated service? Which is cleanest? Which is consideredthe best value? Which is consideredbest for families? Which is consideredmost romantic? In which have yourfriends eaten? Which has the best burger? In which are friendsdining right now?
Editor's Notes
- To see Social Media’s future, we’re going to start in the past.1995: Toy Story, OJ, Sheryl Crowe
- Lesson OneNo one knows for sure how Social Media will change marketing, business, and human communications…… but the change will be considerable.While we cannot know for sure, we can see the direction and prepare for it. Why is this important? Let’s return to 1995…
- Also the year Amazon.com launched online; Jeff Bezos ran from garage.http://www.tranquileye.com/cyber/index.htmlhttp://www.gaia.com/quotes/jeff_bezos
- Also the year Amazon.com launched online; Jeff Bezos ran from garage. B&N took 2 more years and still didn’t match the suite of services and ecommerce offered by Amazon.TODAY: As of 2/13/2009: #68 on Forbes List of World’s Billionaires – worth $6.8B. http://www.forbes.com/lists/2009/10/billionaires-2009-richest-people_Jeffrey-Bezos_RYMV.htmlAs of 3/17: BKS (Barnes & Noble) market cap is $1.08 B and BGP Borders is $26Mhttp://www.tranquileye.com/cyber/index.htmlhttp://www.gaia.com/quotes/jeff_bezos
- Social Media has been and will be driven by changes in technology, but success depends on a focus on consumer needs and the consumer experience, not on technology.
- Not new—but as technology increases, the ability to form more relationships and the reach given to consumers improves. Martin Luther posts his 95 theses to the doors the Castle Church in Wittenberg. Posting events and notices to the doors of churches and universities was popular—the bulletin boards of the day. Thomas Payne publishes Common Sense. 120,000 copies in the first three months, 500,000 in the first year, and went through twenty-five editions in the first year alone. In 1995 the Internet went public, and we began to see services like Prodigy and Geocities offering “Personal Web Pages. This made it possible for millions of people to theoretically reach millions of people, but the tools were very crude. These tools were considered Web 1.0 and offered little other than difficult ways to maintain pages of text and pictures, but the reach was huge. http://en.wikipedia.org/wiki/The_Ninety-Five_Theseshttp://www.bookofconcord.org/95theses.phphttp://en.wikipedia.org/wiki/Common_Sense_(pamphlet)
- Before we get too far, let’s define what Social Media is; best way to do it is to study how it’s different. You may know the terms Web 1.0 and Web 2.0. Web 1.0 refers to the original Internet and is intended to suggest a more informational, less interactive, less rich Web experience. Web 2.0 = Social Media.Four primary ways Web 1.0 is different than Web 2.0.
- First chart: Traditional Media on Internet: ESPN, CNN, & NYTimes – All top 25 sites in US2nd chart: Web 1.0 on the Internet: Google, Yahoo, and MSN – All top 10 sites3rd chart: Web 2.0 on the Internet: Facebook, YouTube, and Wikipedia – All top 10 sites4th chart: Fastest growing sites on the Internet: Twitter.com, Ning.com, Wordpress.com
- First chart: Traditional Media on Internet: ESPN, CNN, & NYTimes – All top 25 sites in US2nd chart: Web 1.0 on the Internet: Google, Yahoo, and MSN – All top 10 sites3rd chart: Web 2.0 on the Internet: Facebook, YouTube, and Wikipedia – All top 10 sites4th chart: Fastest growing sites on the Internet: Twitter.com, Ning.com, Wordpress.com
- Involvement good, but involvement can be deep or thin—it’s merely the presence at different touchpoints. Interactions good, but these can be manipulated with the perception of value, which isn’t a long-term driver. They may click or purchase, but can another brand easily lure them away with lower prices?
- Today we’re more focused on Intimacy and Influence. Aren’t these the things we cared about all along in the real world?Intimacy measures how associated your consumer feels to your brand. Consumers who feel intimacy cannot be taken away as easilyAnd Influence, which measures the extent to which people will advocate on your behalf. In a world where consumers are more connected to each other, how do your relationships result in a positive impact on those with whom you don’t already have relationships.Net Promoter Score: the percentage of customers who are promoters, and subtract the percentage who are detractors in response to "How likely is it that you would recommend us to a friend or colleague?" http://en.wikipedia.org/wiki/Net_Promoter_Score
- In 1996, the most popular site on the Internet was AOL, and when you first visited it, this is what you saw. “Walled Garden”
- Today, the top non-search-enginesite on the Internet is YouTube. The site’s succeeded by allowing collaboration and sharing:Easy linking and embeddingSharing via Facebook, MySpace and TwitterCommentingThe results on this viral video which became a “meme”:36 million views195,000 ratings284,000 comments1.5 million hits on GoogleDr. Pepper ad
- Over 130 Million licensed works that permit some level of remixing, reuse, redistribution with attrition. Just 32% of these works require “No Derivatives” (ND), meaning it may not be changed by others before redistribution. Radiohead released a video that was created without a camera and was based entirely on data. The data was made available for anyone to download and use, based on Creative Common licenses. 82 remixes of the videos were uploaded to a YouTube group and their original video for “House of Cards” was viewed 7 M times.My Starbucks Idea launched to gather ideas and allow voting from consumers. One idea was the Splash Stick, a stir stick that plugs the sip hole and prevents spills and splashes. Rolled out nationwide in April after a successful test. Over 70,000 ideas have been submitted and around500,000 votes from 200,000 community members.Scribd allows people to upload documents that can be viewed online using an embedded app called iPaper. The documents can be shared, embedded into pages, or downloaded. Publishers can get feedback from others about their documents and can find documents similar to their own. There are 50k documents uploaded every day, 50M readers every month, and more than 5M iPaper embeds.
- Here are the 3 ways Web 1.0 is different than Web 2.0. What do these labels tell us about Web 2.0 (or Social Media)?
- People no longer want to be merely informed or talked at; they demand brands and the media talk with, engage, and build relationships with them.
- We discussed what it is? How about where is it? Ridiculous question? Not really for 2 reasons: 1) The reason for SM’s phenomenal growth is that it is placeless—people take their networks with them. 2) The line between the real and virtual; between Social Media and Social Reality is erasing.
- In 2000, where was CNN? Two places—On cable and at CNN.com.
- In 2009, where is Twitter?Only 32% of tweets or posts are made via Twitter.com. Where are the rest from?It’s also on desktop applications: Twitterific, tweetdeck, and twhirl.It’s also on other sites due to widgets and applications. You can find it on Facebook and in widgets throughout Internet.It’s also through your mobile phone, making it truly anywhere—not just in front of PC. Twitter mobile site; SMS; and apps like Fring and PockeTwit.You can even Twitter from Second Life.So where is Twitter? Everywhere and nowhere. http://www.techcrunch.com/2009/02/19/the-top-21-twitter-clients-according-to-twitstat/
- Ever see this?Summerfest – group of teens sat down and every one of them pulled out a phone and started texting. My wife thought they were being rude and asked “What fun is it to hang out if they don’t want to be together?”For Generation F uses mobile tech not to put up walls between those in physical proximity but erase walls with those who aren’t present.They are broadening their experiences and socializing without regard for physical presence.
- So, where is social media?Yes, it’s here and here.It’s also here, at the JackelopLounj where Milwaukeans participated in Twestival, a worldwide feswtival to raise money for clean water for developing countries. 2/12/2009, 202 cities around the world held Twestivals, raising $250,000, enough for 55 water projects in Ethiopia, Uganda and India and clean water for 17,000 people. Social Media was in Ethopia on 4/11 when the first well was dug and hit water, with images beamed back and shared via Twitter and other means.Social Media is also here at Milwaukee’s Bucketworks, where on March 26th hundreds of recruiters and jobseekers came together for a day of networking called MilwaukeeJobCamp, an event promoted and planned using Social Media tools such as Meetup.com. Meetup.com has been used by 46,000 informal groups to plan 102,000 meetups in 3600 cities involving 1.7M people.http://www.meetup.com/about/Social media is increasingly being used to bring people together offline.? Meetup, tweetups, etc. And changing expectations… like the Job Camp example, where leveling of participants was the basis of the event, just like the leveling that happens online. We can discuss is you would like.
- Social Media is also on its way here. Generation F is entering the workforce with new expectations about what it means to form relationships, based on their experiences with Social Media.In March, WSJ Blogs features a fascinating article entitled “The Facebook Generation vs. the Fortune 500,” listing the ways Gen F will challenge workplace expectations. http://blogs.wsj.com/management/2009/03/24/the-facebook-generation-vs-the-fortune-500/
- Social Media’s placelessness is blurring and will erase the line between the virtual and the real.Place vs. Placeless; mobile technology; Social Media is changing expectations of people in the real world.The functionality of Social Media, its ease of forming relationships, the proactive customer service, the democracy and egalitarianism of Social Media will impact the way we communicate, offer service, and form relationships offline.
- There’s another way Social Media is placeless—it is far broader and more diverse than most realize. It sometimes seems as if the way we think of Social Media in this way. Blogs are appealing to corporate America because they’re easy to control.
- But while Twitter,Facebook and blogs get all the headlines, SM encompasses much more than that, and future growth is likely to come from these other portions of the Web 2.0 world.Brian Solis: The Conversation PrismYes, you’ll find petals on this flower dedicated to blogs, micromedia (Twitter), and Social Networks (Facebook.) But that is only a quarter of this visualization. You’ll also find…http://theconversationprism.com
- Social Media is more than blogs. It’s even more than Twitter and Facebook. Consumers are talking, rating, and sharing in countless ways & places.The breadth of Social Media challenges brands to think widely about where consumers are, what they’re saying, and how they may want to be engaged.
- So, how are consumers using all of these Social Media tools at their disposal? Let’s first look at TwitterBecause Twitter is everywhere and nowhere, it also is nothing and everything. Twitter’s basic function is to report “What are you doing?”Derided as place where people talk about lunch—and some people do. But it is far more than that…Businesses share deals.People share music.People report where they are.They share pictures. They ask questions and post polls. They post reviews.They share news.Twitter is also being used for interesting functional purposes, such as allowing tweeting to track what you eat, tweeting for dates, tweeting invitations for meetups, tweeting real-time invitations to play games such as poker online, tweeting actual games like hangman through twitter, tweeting expenses for expense account tracking—the uses are endless.In summary, social media is being used to do anything people need and want to do in the real world. http://www.tweetwhatyoueat.com/diary/charcondiehttp://radaroo.com/
- And we’re just getting startedhttp://mashable.com/2009/03/16/twitter-growth-rate-versus-facebook/
- As long as we’re talking about growth in Social Media, let’s dispel a myth. Convention wisdom is that those using social media look like the cast from High School Musical. The truth is that Demographics broadening very rapidly.http://www.insidefacebook.com/2009/03/25/number-of-us-facebook-users-over-35-nearly-doubles-in-last-60-days/
- Demographics on Facebook broadening very rapidly.http://www.insidefacebook.com/category/metrics/
- Demographics on Facebook broadening very rapidly.http://www.insidefacebook.com/2009/03/25/number-of-us-facebook-users-over-35-nearly-doubles-in-last-60-days/
- Demographics on Twitter are starting plenty broad. http://blog.nielsen.com/nielsenwire/online_mobile/twitters-tweet-smell-of-successhttp://www.jmorganmarketing.com/twitter-demographics/http://news.cnet.com/8301-17852_3-10215837-71.html
- Meanwhile, what’s happen to consumers’ attitudes toward traditional marketing communications? 55% would turn to others for information about a product before they consider brand marketing; 22% would ask complete strangers—more than double who would turn to a print ad or TV commercial. In another study, fewer than 25% say they trust the emails they sign up for, and this was the highest trust level of any traditional advertising channel, beating TV, radio, print, in-store, and online ad media. http://www.nielsen.com/media/2007/pr_071001.htmlhttp://www.marketingcharts.com/direct/online-product-reviews-most-helpful-in-purchase-decisions-offline-too-3437/jupiter-research-uk-online-research-shopping-info-sources-most-helpfuljpg/http://www.jupiterresearch.com/bin/item.pl/research:vision/1231/id=98881/http://www.forrester.com/Research/Document/Excerpt/0,7211,45292,00.html
- And at the same time, technology is increasingly allowing consumers to filter advertising from their lives.DVR users report spending nearly 60% of their TV time watching recorded or delayed programs in which they skip 92% of commercials. As a result, the average DVR user sees only 46% of the ads in the programs he watches.http://www.forrester.com/Research/Document/Excerpt/0,7211,35326,00.htmlhttp://www.impactlab.com/2008/05/13/dvr-users-skipping-ads-online-and-offline/
- Combination of consumer avoidance of ads, distrust of marketing communications, and explosive growth of tools that enhance peer-to-peer communication will result in a situation where consumers learn as much about brands from each other as they do from your marketing.
- So, how can brands use and introduce themselves into this new medium? First of all, it’s important to appreciate that traditional methods don’t work well. By several reports, banner ad CTR on Social Networks is around .04%.http://www.emarketer.com/Article.aspx?Ntt=%22click+through%22+rate&Ntk=basic&R=1006969&xsrc=article_head_sitesearchx&No=0&Ntpc=1&N=0&Ntpr=1http://www.internetnews.com/ec-news/print.php/3750421http://www.businessweek.com/magazine/content/07_46/b4058053.htm
- So, if not advertising,how can brands use and introduce themselves into this new medium? First of all, it’s important to appreciate that Social Media will impact all operations—not just marketing or PR. How? Marketing: Leverage influence to improve awareness, preference, loyalty, & sales; Blogs, Viral video, Communities, Widgets, Social GamesSenior Management: Share knowledge, raise awareness, promote company, speak to external stakeholders; Blogs, MicroblogsProduct Dev: Shorten dev cycles, attract customers, improve adoption, collaborate; Private networks, CrowdsourcingHuman Resources: Improve employer brand, engage candidates; Microblogs, Blogs, LinkedIn, Company Facebook Profile Sales: Gain new prospects, build relationships, communicate effectively; LinkedIn, MicroblogPR: Increase awareness, improve inbound links, encourage coverage; Blogger relations, Social Media PR, Digg, YouTubeCustomer Service: Improve service, proactive service, decrease wait time, limit costs; Blogs, Microblogs, Shared Docs, Wikis, Q&A siteshttp://www.kinlane.com/2008/02/words-of-wisdom-on-successful-facebook.htmlhttp://blog.hubspot.com/blog/tabid/6307/bid/2778/Now-Any-Business-Can-Tap-53-Million-Facebook-Users-For-Free.aspxhttp://www.socialmediatoday.com/SMC/40299http://www.web-strategist.com/blog/2008/07/07/ongoing-list-of-social-media-strategies-from-enterprise-corporations
- This diversity of purpose also tells us something else about Social Media: Your org doesn’t have a postal mail strategy; it uses it tactically and strategically—it’s a medium.WebSocial Media is the same.
- Social Media is far more than just a marketing tool. It is a new medium available to consumers and all portions of the organization.
- So while there’s huge opportunities for corporate America in Social Media, there are also significant challenges and risks. Transparency is a word you heard a lot I conjunction with Social Media. What does this mean?Honesty, business decisions, brand consistency – Living in a fishbowl.HONESTY: In 2007, it as discovered that Whole Foods CEO John Mackey was anonymously posting criticisms of a competitor that Wholes Foods was trying to buy. Hit national press; CEO was forced to apologize and endure internal investigation; the SEC investigated; a large investment group called for Mackey’s resignation; and FTC cited the fake postings in its lawsuit to prevent the takeover of Wild Oats by Whole Foods.http://www.nytimes.com/2007/07/12/business/12foods.html?_r=1http://online.wsj.com/article/SB118538910149377836.html?mod=googlenews_wsjhttp://www.forbes.com/2007/08/23/whole-foods-ftc-markets-equity-cx_cg_0823markets43.html
- BUSINESS DECISIONS: In July, P&G won a case in the UK that saved the company millions. It argued in court that Pringles weren’t potato chips and were less than 50% potato, which begged the question what the heck are they? http://blogs.wsj.com/law/2008/07/07/in-big-win-for-pg-pringles-found-to-be-not-potato-crisps/http://www.jimhightower.com/node/6547http://consumerist.com/tag/pringles/?i=5022244&t=procter--gamble-pringles-are-not-potato-chipshttp://isaac.blogs.com/isaac_laquedem/2008/07/pringles-tax-fo.html
- Debbie Sank:Left permanently brain damaged by an auto accident. Family was awarded $700k, and after legal fees and other expenses they were left with $417k. Wal-Mart decided to sue her for $470k to recover what it had spent on medical care. Videos w/ 100s of thousands of views, online petitions On online petition started after WalMart claimed lawsuit filed “out of fairness to all associates” – signed by750 Wal-Mart associates.Eventually the company was embarrassed into abandoning the collection of their money, even though they won the case in court.Winning in a court of law doesn’t protect you from the court of public opinion!Don’t want to be embarrassed into living your brand!http://online.wsj.com/public/article/SB119551952474798582.htmlhttp://www.wakeupwalmart.com/feature/debbie_shank/
- Tooling around in our Sinclair C5 Flying Car, celebrating world peace, and latest in technology is the virtual contact display. How is it used? You walk to a corner with three restaurants. You can find out instantaneously what every other diner thought about each place—not just overall rating but…How would this change what you today? How would you start building your network? How would you begin to start engaging consumers? How would you build your brand and create an emotional bond between your brand and your customers?