k.gedrovics the socialization_of_brands

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.

5

Social media train

is up and running.

Fast.


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


10

The social challenge for 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


14

0

10

20

30

40

50

Be creative

Change opinions

Earn respect


Express yourself




Keep up to date


Make money


Meet new people

Promote yourself


Share knowledge



Instant Messenger Message Boards Blogs Video Sites Social Networks


Multi-faceted social networks


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


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


Share knowledge

Share newexperiences



0

10

20

30

40

50Be creative

Change opinions

Earn respect


Express yourself






work

Make money


Meet new people

Promote yourself


Share knowledge



0

10

20

30

40

50Be creative

Change opinions

Earn respect


Express yourself

Feel like youbelong





work

Make money


Meet new people

Promote yourself


Share knowledge



Instant Messenger

Message Boards

Blogs

Video Sites

19

-

10

20

30

40

50

Be creative

Change opinions

Earn respect


Express yourself




Keep up to date


Make money


Meet new people

Promote yourself


Share knowledge



Tērzēšana tiešsaistē Ziņojumu dēļi Blogi Video mājas lapas Sociālie tīkli


Multi-faceted social networks (Latvia)


20

-

10

20

30

40

50

Be creative

Change opinions

Earn respect


Express yourself




Keep up to date


Make money


Meet new people

Promote yourself


Share knowledge





Multi-faceted social networks (Lithuania)


21

0

10

20

30

40

50

Be creative

Change opinions

Earn respect


Express yourself




Keep up to date


Make money


Meet new people

Promote yourself


Share knowledge





Multi-faceted social networks (Estonia)


22

-

10

20

30

40

50

Be creative

Change opinions

Earn respect


Express yourself




Keep up to date


Make money


Meet new people

Promote yourself


Share knowledge



Latvia Lithuania Estonia World


Social networks in Baltics


Baltics. The history path of

social networks differs.

24

The gravitational pull of social networks


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


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

Email

Instant

Messenger

Social Network

My personal blog

Forum/message

boards


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

Email

Instant Messenger

Social Network

My personal blog

Forum/message boards

Social Networks stand out

among digital means of

staying in contact


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


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


33

The future faceof social media

34

The new engine of social media


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


Mobile internet is the next

king.

37

A connected generation


38


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


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


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


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.


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.


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%


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.


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.


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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