social media presentation to scad

Copyright © SMC³

STRATEGIC WEB 2.0

MARKETING

Jacob J. Aull 5/1/09

Business & Social Meida

  Introduction to Web 2.0   Industry Drivers   Customer Behavior Analysis   Common Business Objectives & Strategy   Challenges Involved   Solutions   Measurable Benefits   Potential   Features/Benefits   Who Does Social Media Advertising?   Conclusion   Sources

What is Web 2.0?

  The “old” Internet vs. the new

  Broadcast is dead

  “Multi-channel collaboration”

  Social Media

  Moving into Web 3.0 and the semantic Web…

Web 1.0 vs. Web 2.0 (a)

Industry Drivers for Web 2.0

  Technology •  Linux •  Widgets •  Mash-ups

  Business open strategies

•  Open sourcing (or open innovation) •  Agile •  Alliance partners •  Affiliates

Industry Drivers, cont’d

  Web drives marketing

  Costs •  $ = Low, or free •  Time to learn, familiarize (growing pains) •  Time to launch •  Time to maintain

  Customers

•  Where they are •  Information sharing

  Contacts

Industry Drivers for companies

  New Business Strategies

  Competition

  …not “if,” but “when!”

Customer Behavior Analysis (b)

  Gen Y (up to age 32) is more likely to: •  Get info about a job (64%) •  Use social networking sites (67%) •  Read blogs (43%)

  Gens X+ (age 33+) are more likely to:

•  Buy something online (80-72%) •  Bank online (65-49%) •  Visit gov’t sites (64-63%)

Customer Behavior, cont’d (b)

  Less variation between generations: •  Use email (91%) •  Use search engines (89%) •  Research products (81%) •  Get news (70%) •  Make travel reservations (68%) •  Research for job (51%)

•  Rate a person or product (32%) •  Download videos (27%) •  Participate in an online auction (26%) •  Download podcasts (19%)

Bold = Web 2.0-specific

Common Business Objectives

  Customer •  Customer-focus •  Information

  Technology integration

•  Video •  RSS

  Communications

•  Internal •  External

Business Strategies

Open sourcing (open innovation) c •  “Prosumer”-driven •  Partner-driven •  Case study examples d

–  IBM/Linux –  Boeing 777 – Nike.com

Requests/RFIs/ New Adapted Partner/ online bidding/ > product > marketing > prosumer/ contests/customer development communications sales communications (mktg = PR) e

Business Strategies, cont’d

Metcalfe’s Law (eBay) Network Brand Market Profit effects > awareness > share > margin (used to be share-of-voice)

The Long-Tail Theory (obscure products/services) f Online niche Developed Prospect Niche Niche communities > markets > niche > cross- > sales (targets) search communications

Perceptions Challenged

  Transparency •  Competition?

  Negativity potential •  Customer back lash

  Company structure •  Bottom-up-driven

  Mental shifts •  Customer identification; “prosumers” •  Beyond the “walled garden”

Challenges to entry

  Strategic planning •  Objectives •  Customer/Segment usage •  Media purpose •  Maintenance •  Clear communications capability

Challenges to entry, cont’d

  Sophistication level •  vs. competitors •  vs. customers •  “What will people think?” •  “New kid” syndrome

Customer-side Benefits

  Having the provider’s ear

  Desired info •  e.g., prospects searching Digg •  or KnowledgeStorm

  RSS control

Benefits from Customers

  Customer-focus •  Finding & connecting •  Collaboration •  CRM •  Information provided (& shared)

– More detail –  Profiling

•  Sales networking –  LinkedIn

•  Customers choose you & your info

Measurable Benefits

  Low communications costs •  Especially for one-to-one

  n=1 (g)

•  CRM •  “Fans” (net promoters) •  Customer-preference-indication data (blogs)

  Network effects

•  SEO/page rank •  Click-throughs •  Awareness •  Availability

Marketing Media Channels (h)

Potential Loss (from previous chart h)

  Total leads from online media (excluding “other” and “email”) = 37%

  Without Social Media, there’s an 8% loss of total leads

  SEO results, excluding social media, could be half as effective:

•  We know some % of SEO leads are achieved with a page rank via network effects comprising multiple Web sites and Social Media.

•  We know that at bare minimum, 8% of total leads are visiting Social Media (hence increasing SEO page rank).

•  We know that SEO organic listings results (driving hits) are completely determined by page rank (& keywords).

•  If the impact were 1:1, then ½ of the 16% SEO leads would have been enabled by Social Media marketing.

Potential Gain (h)

  Another way to look at it…

  If 16% of leads are yielded from Social Media (8% Social Media results + ½ of 16% SEO results)…

  And if doing no Social Media mktg currently…

  By adding it to mktg plan, we could potentially achieve a 19% increase in total leads!

•  (Assuming currently operating at 84% leads-potential by neglecting Social Media, 100% / 84% = 1.19 multiple. 1.19 x 16% Social Media impact = 19% increase in leads.)

Company Impact Example (no Social Media mktg) i

• Online Community • BLOGS • Newsletters • Communicate through Partners

• Leverage Testimonials • Customer References

Company Alternative Potential Gain (i)

  10% of respondents heard of SMC conference from Web site.

  If those site hits occurred from search engine organic listings, that could potentially double (according to previous slide data & math; irrespective here of PPC hits).

  3% of respondents heard of SMC conference from “Other;” including “Online Community,” “Blogs,” “Customer References” and “Communicate through Partners.”

  If these responses represent half of “Other” total awareness leads (1.5%), they could double via Social Media involvement – giving more leads in addition to increased search leads (11.5% more awareness leads total).

  Imagine if these percentages were applied to our product lead and development cycle - double the leads from Web media (irrespective of PPC)!

If Competitors are in Social Media, but Company isn’t…

  There are customers whose preferred channels of communications are social media.

  Those are leads competitors obtain and company misses.

  Competitors have uncontested voice, via those 16% leads-generating channels, to steal business away.

Features/Benefits cont’d

  Video upload & Web site widget •  YouTube

  Image sharing

•  Flickr

  User-specified RSS feeds •  Difference from EMBs •  Press releases •  “Following” defined •  Twitter

Who Does Social Media Advertising? (j)

  The top 16 IT companies (by revenue) were researched over 3 days for Web 2.0 promotions.

  These were mainly B2B – or, like Microsoft and Adobe, had B2B as well as consumer faces.

  Resulting 65% representation in the measured Web 2.0 media channels .

  (100% would have equaled each company, with 1 promotion, in each media channel – or, “Total Investigations.”)

Web2.0 ads‐Top 16 IT companies Virtual Weblog submission sites Worlds Web 2.0

Media channels Custom pg (organic)PPC ads Custom pg (organic)PPC ads Custom pg (organic)PPC ads Custom pg total:PPC ad totals:Network Totals:Technorati Digg TOTAL: flickr Del.icio.us TOTAL: Second LifeTotals:Total Promotions: 15 3 19 3 7 6 41 12 53 6 10 16 12 15 27 19 115 Total Promotions

Total investigations: 16 16 16 16 16 16 48 48 96 16 16 32 16 16 32 16 176 Total investigations

Totals:MySpaceFaceBookLinkedInSocial Networking Software

Tagging Media

Benefits, concluded (a)

Sources

  A.) Mastering Online Marketing by Mitch Meyerson

  B.) “Generations online in 2009” by Sydney Jones, Pew/Internet (pdf)

  C.) “There is no more normal” by Jena McGregor, BusinessWeek Mar 23 & 30, 2009

  D.) Wikinomics: How Mass-Collaboration Changes Everything by Tapscott and Williams

  E.) The New Rules of Marketing and PR by David Scott

  F.) “The Long Tail” by Chris Anderson, Wired Magazine

  G.) The New Age of Innovation by Prahalahad

  H.) “Study: Company Blogs Lead Social Media Options” by Mark Walsh, MediaPost.com Jan 30, 2009

  I.) MeetingExpectations! Conference Research Results (powerpoint file)

  J.) “The Viral Green – The IT Industry and Web 2.0 Marketing.” by Jacob J. Aull, GSU masters’ final project research report. Apr 29, 2009.