k.gedrovics the socialization_of_brands
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The Socialization of Brands
Kārlis Gedrovics, Inspired
2
AMARA’S LAW
Roy Amara, past president of The Institute for the Future.
Roy Amara was a researcher, scientist and past president of the Institute for the Future. Born in Boston 1925, he has also worked at
Stanford Research Institute. He held a BS in Management, an MS in the Arts and Sciences, and a Ph.D. in Systems Engineering. He
died in 2007. He is possibly best known for the quotation "We tend to overestimate the effect of a technology in the short run and
underestimate the effect in the long run.", which was paraphrased by Robert X. Cringely, and is sometimes known as Amara's Law.
We tend to overestimate the effect
of a technology in the short run and underestimate the effect in the
long run.
The Socialisation of Brands
http://www.baekdal.com/articles/management/market-of-information/
The prediction of influence over time.
http://www.baekdal.com/articles/management/market-of-information/
The prediction of influence over time.
5
Social media train
is up and running.
Fast.
The Socialisation of Brands
Social media ARE
measured globally.
by Universal McCann WorldWide.
Social media ARE tracked.
5 years, since 2006
9
The expanding Wave universe
Wave 1
AustraliaBrazilChinaFrance
GermanyItalyIndiaJapanKoreaMexico
PhilippinesRussiaSpainUKUS
54countries
Wave 2
AustraliaBrazilChinaFrance
GermanyGreeceIndiaItalyJapanKorea
MalaysiaMexico
PakistanPhilippines
RussiaSingapore
SpainTaiwan
ThailandUKUS
Wave 3
AustraliaAustriaBrazil
CanadaChina
Czech RepublicDenmarkFrance
GermanyGreece
Hong KongHungary
IndiaItalyJapanKoreaMexico
NetherlandsPakistan
PhilippinesPoland
RomaniaRussiaSpain
SwitzerlandTaiwanTurkey
UKUS
Wave 4
AustraliaAustriaBelgiumBrazil
CanadaChina
ColombiaCzech Republic
DenmarkEcuadorFinlandFrance
GermanyHong KongHungary
IndiaItalyJapanKoreaLatvia
LithuaniaMalaysiaMexico
NetherlandsNorway
PeruPhilippines
PolandPortugalRomaniaRussia
SingaporeSouth Africa
SpainSwedenTurkey
UKUS
Wave 5
Algeria Argentina Australia
AustriaBahrainBelgiumBrazil
CanadaChileChina
ColombiaCzech Republic
DenmarkEcuadorEgypt
EstoniaFrance
GermanyHong KongHungary
IndiaItaly
Ireland (ROI)JapanKoreaKSA
KuwaitLatvia
Lebanon LithuaniaMalaysia
Mexico Netherlands NorwayOman
Philippines PolandPortugalQatar
RomaniaRussiaSerbia
SingaporeSlovakia
South AfricaSpain
SwedenTaiwan
ThailandTunisiaTurkeyUAEUKUS
37,600respondents
The Socialisation of Brands
10
The social challenge for brands
The Socialisation of Brands
11
The new social landscape
Means and motives
Unprecedented diversity.
1 to 1 communication.
13
0
10
20
30
40
50
Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or waste time
Have Fun/be entertained
Keep up to date
Learn something newMake contacts for work
Make money
Manage my life better
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share new experiences
Stay in touch withfriends
Instant Messenger Message Boards Blogs Video Sites
Q: “Which of the following do a good job when you want to...”
Understanding means and motives
The Socialisation of Brands
14
0
10
20
30
40
50
Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or waste time
Have Fun/be entertained
Keep up to date
Learn something newMake contacts for work
Make money
Manage my life better
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share new experiences
Stay in touch withfriends
Instant Messenger Message Boards Blogs Video Sites Social Networks
Q: “Which of the following do a good job when you want to...”
Multi-faceted social networks
The Socialisation of Brands
15The Socialisation of Brands
16
A wastly diverse ecosystem.
Are LV, EE, LT much alike?
18The Socialisation of Brands
0
10
20
30
40
50Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like youbelong
Hang out or wastetime
Have Fun/beentertained
Keep up to dateLearn something
newMake contacts for
work
Make money
Manage my lifebetter
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share newexperiences
Stay in touch withfriends
Q: “Which of the following do a good job when you want to...”
0
10
20
30
40
50Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or wastetime
Have Fun/beentertained
Keep up to dateLearn something
newMake contacts for
work
Make money
Manage my lifebetter
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share newexperiences
Stay in touch withfriends
0
10
20
30
40
50Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like youbelong
Hang out or wastetime
Have Fun/beentertained
Keep up to dateLearn something
newMake contacts for
work
Make money
Manage my lifebetter
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share newexperiences
Stay in touch withfriends
Instant Messenger
Message Boards
Blogs
Video Sites
19
-
10
20
30
40
50
Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or waste time
Have Fun/be entertained
Keep up to date
Learn something newMake contacts for work
Make money
Manage my life better
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share new experiences
Stay in touch withfriends
Tērzēšana tiešsaistē Ziņojumu dēļi Blogi Video mājas lapas Sociālie tīkli
Q: “Which of the following do a good job when you want to...”
Multi-faceted social networks (Latvia)
The Socialisation of Brands
20
-
10
20
30
40
50
Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or waste time
Have Fun/be entertained
Keep up to date
Learn something newMake contacts for work
Make money
Manage my life better
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share new experiences
Stay in touch withfriends
Instant Messenger Message Boards Blogs Video Sites Social Networks
Q: “Which of the following do a good job when you want to...”
Multi-faceted social networks (Lithuania)
The Socialisation of Brands
21
0
10
20
30
40
50
Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or waste time
Have Fun/be entertained
Keep up to date
Learn something newMake contacts for work
Make money
Manage my life better
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share new experiences
Stay in touch withfriends
Instant Messenger Message Boards Blogs Video Sites Social Networks
Q: “Which of the following do a good job when you want to...”
Multi-faceted social networks (Estonia)
The Socialisation of Brands
22
-
10
20
30
40
50
Be creative
Change opinions
Earn respect
Explore the worldaround me
Express yourself
Feel like you belong
Hang out or waste time
Have Fun/be entertained
Keep up to date
Learn something newMake contacts for work
Make money
Manage my life better
Meet new people
Promote yourself
Seek other people'sopinions
Share knowledge
Share new experiences
Stay in touch withfriends
Latvia Lithuania Estonia World
Q: “Which of the following do a good job when you want to...”
Social networks in Baltics
The Socialisation of Brands
Baltics. The history path of
social networks differs.
24
The gravitational pull of social networks
The Socialisation of Brands
25
Growing fast
Q: “Thinking about the internet, which of the following have you ever done?”
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Wave 12006
Wave 22007
Wave 32008
Wave 42009
Wave 52010
% Ever Done
Create aprofile on asocial network
Manage aprofile on asocial network
Visit a friend'ssocial networkpage
The Socialisation of Brands
Are we moving to parallel,
yet connected dimension?
27
A pull of people...
Q: “Approximately how many people do you stay in contact with in your personal life through the following means?”
0
10
20
30
40
50
60
Wave 3 2008 Wave 4 2009 Wave 5 2010
Number of people
Face to face
Phone
Text message
Instant
Messenger
Social Network
My personal blog
Forum/message
boards
The Socialisation of Brands
Here in Baltics travel
distances are little.
It’s easy and affordable to see each
other in real life.
29
A pull of people...
Q: “Approximately how many people do you stay in contact with in your personal life through the following means?”
0
10
20
30
40
50
60
Wave 5 2010 Estonia Latvia Lithuania
Number of people
Face to face
Phone
Text message
Instant Messenger
Social Network
My personal blog
Forum/message boards
Social Networks stand out
among digital means of
staying in contact
The Socialisation of Brands
Are social networks taking
it all?
31
Blogs & forums move away from personal topics
Q: “When you read blogs, which of the following types of blogs do you read most often?”- Amongst those who have read a blog in the last 6 months, “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Wave 3 2008 Wave 4 2009 Wave 5 2010
Personal Blogs (diary sites)
Family/friend Blogs
Write a blog on my social
network
The Socialisation of Brands
32
Blogs & forums move away from personal topics
Q: “When you read blogs, which of the following types of blogs do you read most often?”- Amongst those who have read a blog in the last 6 months, “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months
0%
5%
10%
15%
20%
25%
30%
35%
40%
Wave 5 2010 Wave 5 Baltics
Personal Blogs (diary sites)
Family/friend Blogs
Write a blog on my social network
Writing blogs on social network sites
still not popular in the Baltics
The Socialisation of Brands
33
The future faceof social media
34
The new engine of social media
The Socialisation of Brands
35
Smartphone ownership drives mobile internet use
Q: % of people who access the internet via a mobile device and the % of smartphone owners who access the internet via a mobile device
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
GLOBAL Estonia Latvia Lithuania
Mobile phone owners Smart phone owners
The Socialisation of Brands
Mobile internet is the next
king.
37
A connected generation
The Socialisation of Brands
38
The Socialisation of Brands
Alarming trend?
40
Are people moving away from traditional brand spaces online?
Q: “Thinking about using the internet, have you visited an official brand/company website in the last 6 months?”
70%
72%
74%
76%
78%
80%
82%
84%
86%
88%
90%
Wave 3 2008 Wave 4 2009 Wave 5 201070%
72%
74%
76%
78%
80%
82%
84%
86%
88%
90%
Wave 5 2010 Baltics
The Socialisation of Brands
Are marketers following
consumers?
42
There is certainly a move towards engaging brands in social spacesQ: “Which of the following have you done with your social networking profile?” -Amongst those who have used a social network in the last 6 months”
0%
10%
20%
30%
40%
50%
Affiliate with or become afan of a brand
Join a group
Wave 4 2009
Wave 5 2010
The Socialisation of Brands
43
There is certainly a move towards engaging brands in social spacesQ: “Which of the following have you done with your social networking profile?” -Amongst those who have used a social network in the last 6 months”
0%
10%
20%
30%
40%
50%
60%
Affiliate with or become a fan of abrand
Join a group
Wave 5 2010
Wave 5 2010 Baltics
The Socialisation of Brands
Is this true for all
categories?
45
Q: Amongst those who show an interest in an category, how many want an interaction with companies in that category (i.e. At least one or more interaction). These included a range of interactions from getting access to advance news of products to being able to access decision makers and influence product development
Health
75%
Movies
74%
Music
73% Travel
71%
Telecomms
71%
Software
71%
Food
70% Finance
67%
Cars
63%
All categories come close.
The Socialisation of Brands
So why are people joining
brand communities?
47
Wast variety of resons to join.
0%
20%
40%
60%
80%
100%
To support a cause Ilike
To share myappreciation with
others
To associate withsomething I think is
cool
To learn more aboutit
To feel part of a like-minded community
To get free content
To fill time/have fun
Because it wasrecommended to me
To get advance newsof products
LatAm Middle East & Africa Asia & Oceania North America Europe
Q: Agreement with the descriptions of why they joined a brand community amongst those have ever joined a brand community online by region.
The Socialisation of Brands
What is the benefit to
brands?
49
Q: “As a result of joining a brand community, please indicate how much you agree with the following statements?”
“I thought more
positively of the brand”
“I am more likely to
buy the brand”
“I felt more loyal
towards the brand”
“I recommended
others to join”
Benefits clearly are there!
72% 71% 66% 63%
The Socialisation of Brands
50
Different categories, different needs
0%
10%
20%
30%
40%
50%
Access to fun andentertaining content
Access to breakingnews
An opportunity to learnsomething new
Access to unique eventsor competitions
Communicate & shareexperiences with others
A personal response tomy issues/complaints
An opportunity todevelop my skills
Tools help expresscreativity & makesomething worth
sharing
Contact employeedecision makers &influence productdevelopment
Movies Health & well being
Q: “Thinking about companies in the following categories, which of following statements describes the kind of interaction you would like to have with these companies?” amongst those who show an interest in the category.
The Socialisation of Brands
51
The impact
Social media is an incredibly dynamic environment.
Terms like “friend” and “influencer” are no longer adequate to describe the array of social activity and
interaction that is occurring amongst the vast communities now being built online.
A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users.
Social networks are becoming powerful hubs of interconnected communities but it’s not just people that
are connecting in the social media space. There is huge demand for a more social and interactive
relationships with brands and companies. There is more possibilities for consumers to interact and effect
products, delivery and here social meda plays important role.
Almost half of the Active Internet Universe has already joined a brand community.
These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty,
endorsement and sales.
However, understanding the nature of social demand for each consumer, category and market is the key
to creating a successful social media experience.
The Socialisation of Brands
52
If you’re not on that train just yet, catch it while you can!There’s a seat reserved for you...
53
PS. Inspired – short facts
54
Inspired – short facts
• Young media agency (y2005), that is transforming to multi-
discipline communications agency.
• No2 media agency in 2009 by turnover and No3 media agency
in reputation top in 2010.
• Affiliated to media agency to Universal McCann (IPG), yet
operating fully independently;
• 38 employees (including all units);
• Strategic punks and rebels.
Thank you!
www.inspired.lv
www.inspired.lv/blog/
www.facebook.com/Inspired.lv
http://twitter.com/inspiredlatvija
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