Download - Social Media Advertising presented by
Social Media & Advertising
Presented to the Copenhagen Business Schoolin San Francisco, CA
November 16, 2009
Brief Introduction to Mike Crosson
• Online since 1978, before the Internet was known as the Internet (or Al Gore invented it)
• Former senior executive for Omnicom, MapQuest, Vivendi-Universal, and others
• Founder of Business Computing magazine, Crosson + Partners Advertising
• Co-founder of International Webcasting Association, London
• Current founder and publisher of SocialMediopolis.com and the largest social media community on LinkedIn.com with over 50,000 members
• Co-founder of non-profit ChangeTheWorld.com, in alpha development and in process of fund-raising
World Market Overview
Who Has Access
Internet Ad Revenues Continue to Grow, Despite a Slight Downturn in 2009
Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates. 5
U.S. Online Advertising:One third branding; two thirds direct response
6
Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates.
Total Online Advertising 2007: $21.2 Billion
•Search is the biggest piece of online advertising•Branding spending still under-developed
Display 24%
Search 41%
Classi-fied
s 16%
Other
9% Rich 10%
Display Search Classifieds Other Rich / Video
Keep in Mind, Search Patterns in Social Media Change Dramatically by Country
Source for Social Media Maps: http://royal.pingdom.com/2008/08/12/social-network-popularity-around-the-world/
16-54 Active Internet Universe Estimates
France4m
Italy3.4m
Turkey2m Pakistan
0.97m
Czech0.6m
MEXICO4.1m
China43m
South Korea9.7m
Taiwan4.2m
Philippines2.4m
BRAZIL7.6m
Spain4.5m
India8.7m
Japan14m
HongKong1m
USA26.4m
CANADA1.6m
UK4.5m
Greece0.3m
Australia1m
Germany5.2m Romania
0.5m
Denmark0.3m
Poland1.1mNetherlands
1.6m
Switzerland0.5m Austria
0.4m
Hungary0.1m
Russia2.4m
% Write their own blog
60%+
40% -60%
30%-40%
<30%
Source: Universal McCann Social Media Tracker
Asia Leads in Blogging
GL
OB
AL
Fran
ce
Germ
any
Italy
Ru
ssia
Sp
ain
UK
US
A
0%
10%
20%
30%
40%
50%
60%
70%
80%
2008
2007
2006
% C
reat
e a
pro
file
Source: Universal McCann Social Media Tracker
Russia Leads In Social Networking
• Consumer content drives local language
• Chinese will rise to #1 by 2016
English
29%
Chinese20%
Spanish8%
Japanese6%
French5%
Portuguese5%
German4%
Arabic3%
Russian2%
Korean2%
Rest of the Languages
16%
Users by Language
Source: Internet World Stats
English Language is Losing Dominance
11
Traffic is Huge, But Social Media Advertising Spend is Not… Yet
7% of online media is spent in social media, but growing 26%+ a year
$1.3 B in 2008 to $2.6 B in 2012 in U.S.
Major firms have massive concerns about brand safety and reputation management
Poor quality ad inventory limits exploration with new venues
Ads on SNS are not nearly as effective as advertising online at large
Sources: IDC U.S. Consumer Online Behavior Survey Results 2008, n=3092 U.S. Internet Advertising 2008–2012 Forecast and Analysis: Defying Economic Crisis (IDC #212149, May 2008)
In general, Internet Ad Response Rates Are Abysmal
Rich Media Non-Rich Media0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2.50%
0.41%
1.12%
0.20%
2002
2006
Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates
But they are even worse for Social Media!
Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates
Banner Rich Media Adsense0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
Publisher siteSocial Media
The Take-Away on Social Media Advertising:
Just don’t do it.
The Take-Away on Social Media Advertising -Just don’t do it… UNLESS:
• Your primary focus is branding or direct response
• You have millions and millions to spend over a long time period
• You have an integrated marketing platform that leverages your web campaign in other media
• You have your customer support aligned with your marketing
• You embed your social media strategy and values throughout your company
• And, most importantly, you LISTEN and DON’T SELL!
Let’s Focus on Three 800 lb. Gorillas
• YouTube • Facebook• Twitter
YouTube, the Video Gorilla
Agency: Saatchi & Saatchi
Social Media Video Example 1: TMobile
Social Media Video Example 2: GEICO
Facebook, The Friends’ Gorilla
• More than 300 million active users• 50% of active users log on to Facebook in any given day• The fastest growing demographic is those 35 years old and
older• More than 10 million users become fans of Pages each day• More than 8 billion minutes are spent on Facebook each day
(worldwide)• 2nd most popular website in the world
Facebook Advertising
No Cost• Create business profile pages and Fan pages are free • Sending out news & updates to fans and select demographics can be done at no
charge• Automatic updating to Twitter and LinkedIn and RSS feeds can be added at no cost
Small Cost• With Facebook Social Ads, you can explore extremely targeted advertising for
minimal cost.
Twitter, the… well, Twit’s Gorilla
• Over 40 million users…• 14th most popular website in the world• Average age of a twitter user is 31• 20% of online adults age 25-34 have used Twitter• March 2009, a Nielsen.com blog ranked Twitter as the
fastest-growing site in the Member Communities category
Practical Applications of Twitter
Building Synergy Between Both
• Link Twitter and Facebook together using icons, links and FaceBook Connect (and don’t forget Xbox Live coming soon!)
• Use Ping.fm or TwitterFeed to multi-post
• For SEO purposes, reference both in all your communications, including ad campaigns, press releases, on your website and company blog, etc.
• Optimize your posts and Tweets for insite search
Promotion Techniques to Consider
• Run Facebook/Twitter only coupons• Create cool applications and useful
widgets for viral marketing• Send invites to sales and events• Publish event results• Publish company history• Publish company milestones• Ask questions, Twitter is great for
opinion research• Give “pro” tips or helpful hints• Get personal – use a personality
(preferably a real person or position within your company)
47% online participated in online contests or sweepstakes
31% used online coupons
13-17 18-24 25-34 35-44 45-54 55-64 65+0%
10%
20%
30%
40%
50%
60%
70%
Contests
Coupons
Source: IDC U. S. Consumer Online Behavior Survey Results 2008,
Additional social media advertising venues
• LinkedIn – multiple new channels opening up• Hulu – large video site and getting more popular• Other communities – Bebo, Hi5, MySpace, etc. • Digg.com, Propellr, other bookmarking and recommendation sites
(Digg is expanding their CPC network with user-voted advertising , others to follow)
• Technorati – widening their display capabilities• FM Publishing – largest blog network• Blogher Network – for reaching the female audience
Reference sources:
• Social Media Networking, Derek Ross• Playing Together, Panos Sambrakos, Ogilvy One• YouTube.com advertising• Using Social Networks for International Expansion,
Terrance Barkan• Global Social Media Trends, Tom Smith• IDC Summit Presentation, Caroline Dangson
Thanks for your attention
• Contact information for Mike Crosson:
Michael P. CrossonPublisher, SocialMediopolis.comM: 415.299.0637E: [email protected]
Co-founder and Chief Revenue Officer, ChangeTheWorld.com
Personal website: MichaelPCrosson.com
Personal non-profit website: ChangeTheWorld.com
Twitter: http://www.twitter.com/mcrosson
LinkedIn: http://www.linkedin.com/pub/mcrosson
Facebook: http://www.Facebook.com/mcrosson
Yahoo! IM: mcrosson
MSN IM: VPAdSalesAOL IM: mcrosson
ICQ#82626716