By 2010, 86% of UK population are forecast to go online at least once a month – the highest proportion of any Western European country (eMarketer) On average we view 3440 webpage pages each month (emarketer - Uk) In April 2007, there were 1.7 times more over-50s than people under 18 active on the Internet, and one in four of those online was 50 or older, according to Nielsen//NetRatings. Hitwise calculated that British Internet users over 55, the so-called silver surfers, are set to overtake 35- to 44-year-olds as the age group with the largest representation online. This group accounted for 22% of UK visits to Web sites in the four weeks preceding May 12, 2007, according to Hitwise. This proportion is up 54% since 2005 and 40% since 2006. In the period, 23.5% of visits to Web sites were made by 35- to 44-year-olds. A select group of websites and applications - 10 in all - have averaged at least 500 million UK minutes per month over the last year, and together they account for 30% of all UK online-related time*, according to (pdf) Nielsen Online. Dominated by social sites

15 million reviews and opinions on Trip Advisor, 30 million unique visitors each month Youtube – 65,000 videos uploaded each day, 100 million video views per day - 5 billion videos viewed in July 2008, 13 hours of new videos uploaded every minute Comscore, 2008: 27.4M users (78%) viewed 3.2 bn videos per month = 161M hours of video content 1 in 10 in UK are ‘Creators’: Publish or maintain your own blog • Publish your own Web pages • Upload videos you created • Upload audio/music you created (Forrester Technographics) Myspace: In UK it’s as common to have a Myspace than it is to have a dog 300,000 new people sign up every day WW 50 million mails sent per day (more than Yahoo, Hotmail or Google) – WW Facebook 250,000 new regs per day since 2007 Active users doubling every 6 months More than half active users return every day 100 new apps per day +80% of users used at least one app More than 700M photos uploaded each month More than 15M pieces of content shared UK 3rd largest country with 7M+ active users 394m watch video clips online 346m read blogs 321m read personal blogs 307m visit a friend's social network page 303m share a video clip 272m manage a profile on a social network 248m upload photos 216m download video podcasts 215m download podcasts 184m start their own Blog  83m upload a video clip 160m subscribe to an RSS feed   (According to Wave.3 Social Media Tracker - Universal McCann)

Social media can include any digital communication channel that allows people to interact with other people

Social media can include any digital communication channel that allows people to interact with other people

Its not about brands, Its about people sharing

Online social network users are 3 times more likely to trust their peer’s opinions over advertising when making purchase decisions. (JupiterResearch, 2007) 2006 was the first time “a person like me” was trusted more than any other source of info on a company – higher than a doctor or academic (Edelman Trust Barometer)

95% of senior marketers believe social media will grow in significance over the next 5 years 75% of Fortune 1000 companies with websites will have undertaken some form of social networking initiative in the next year TNS 81% of marketers said they will spend at least as much on conversational marketing as traditional marketing by 2012 New Communications Research BUT 50% will be classified as failures! Gartner Although just 7% of total online marketing spend is currently devoted to social marketing (Coremetrics) “half of advertiser-branded social networking pages in Europe have fewer than 1000 friends” Jupiter Research

Starbucks V2V – 20,000 members, 2000 events, a catalyst for conversation and connection inspiring people to contribute to a cause greater than themselves

Love you or hate you? Defensive of offensive?expert debate – McDonalds Positive -> engage advocates – Lynx 1 in 7 posts negative?

The most innovative example of how to engage with advocates and critics. Content is focused in three main areas: Ask a question – every question submitted is answered as fully as possible Quality scouts – effectively independent auditors chosen from ordinary members of the public to review different aspects of McDonalds business practices McDonald’s expert response to negative press articles

TNS Digital life survey – check details, eg 30% of consumers have added to a blog 876,000% increase in volume of content created online over the last decade – 8760 exabytes – in perspective A LOT (Internet Innovation Alliance) Nearly half of the UK’s online population visited at least one blog during August, less people read newspapers than read blogs, with 11.25 million Brits buying a paper compared to 14.5 million visiting blogs. comScore More than 82 million people in the US created content online during 2008, a number expected to grow over 40% to nearly 115 million by 2013 according to numbers released by eMarketer. In the UK 78.4% of internet users use social networks The Expanding Digital Universe: A Forecast of Worldwide Information Growth Through 2010 analysed the amount of information the world is creating and copying in a given year. It gave a forecast for the entire "digital universe" through the year 2010, and identified the specific information types and geographies contributing to its growth. In 2006, this digital universe equals approximately three million times the information in all the books ever written. According to IDC, the amount of information created and copied in 2010 will surge more than six fold to 988 exabytes, a compound annual growth rate of 57%. IDC estimate that nearly 70% of the digital universe will be generated by individuals by 2010,

Launched in 2005, games, activities and online community aimed at 6 to 14 year olds When sold to Disney in 2007 for $700m it was estimated to have 12 million user accounts

Saga Zone: Average age in excess of 60, the oldest active user 93. Over 50% of MySpace users are over 35 Average age for a blogger in US is 38 (emarketer)

So what are they doing? And, more importantly, what do they get out of it?

Whilst advertisers appear obsessed with entertaining this audience, we should look to explore the full spectrum of value opportunities

every $100k spent drove 26k people to become more likely to buy based on exposure to sponsored page PLUS – many passed brand to friends, resulting in thousands of pages featuring branded graphics, 18000 additional people whose likelihood to buy had increased PLUS – 4 million exposed to brand on those member’s pages

6m views, youtube alone

You’re all used to defining a brand proposition but the rules have changed Not what you produce What you produce together What value does the brand introduce in the social space What is our role in creating interaction What are we doing to compel active engagement with our What do we want the consumer to think, feel and do as a result Every brand has a clearly defined proposition, mission and goals. However, these no longer apply once you leave the brand space you own. In creating an effective social strategy, it is essential to create and adhere to a clearly defined social proposition: What value does the brand introduce to the social space What is our role in creating interaction What are we doing to compel active engagement with our brand What do we want the consumer to think, feel and do as a result Examples

“a squad of 42 employees spend their workdays engaging with the communities on Facebook, Twitter and other social media” The proportion of blog posts that were negative in nature fell from 49% to 22%.

“What does Green mean to you?” Over 7300 Graffitis created from Jan. 16th-Jan 23rd around the theme of “What Does Green Mean to You”Over 1,000,000 votes were logged from Jan. 26th-Jan.31st for the artwork. (Here are the Top 150 based on votes)

An example of this collective-design approach in action is Dell's popular new Latitude laptop. Dell engineers granted the wishes of IdeaStorm users by adding keyboards that light up in the dark, a fast connection technology called eSATA, longer battery life, and a rainbow of color choices. Over 7000 ideas have so far been submitted via IdeaStorm

Within the first year of launch: The proportion of blog posts that were negative in nature fell from 49% to 22%. Direct2Dell attracted more than 5 million unique views per month Over 7000 ideas have been submitted via IdeaStorm Studio Dell received more than 200,000 views per month (Fortune) “I’d rather have that conversation in my living room than in somebody else’s” Michael Dell Regained top spot of the customer satisfaction index from HP Online negative sentiment dropped from 48% in 2006 to 23% in 2008 “They’ve been downgraded from evil to bumbling” Consumerist blog (Fortune)

Rise of the trust of people like me A brand ‘promoter’ is worth over 60% more than an average customer due to extra spend AND their influence on other people’s spend

Others: Lowering customer service costs

Ross Taylor, TMW Darran Snatchfold, TMW

Mediascope Media Consumption Study, 2008: UK consumers First, the good news

So, what is social media all about?

What are they doing?

Some important numbers - 50%

But, where do we start?

We need a strategy

Brand Brand potential

Encourage consumers to share their passions Identify the influencers, extend your experts Support platforms to encourage customers to share Create connections between customers to reinforce their choice and commitment

Sentiment

Consumer is creator

Not all are born in the last 18 to 24 years

Not all are born in the last 18 to 24 years

Why ?

DISCOVERY Learning or self-development FAME Notoriety or competition EXPRESSION Creativity or identity SOCIAL Connecting, reinforcing tribes or belonging ESCAPISM Entertainment ALTRUISM Helping others or involvement with the brand 1,000 people 16 motivations 6 core value opportunities THE STUDY

60% enjoy feeling they can input into companies 70% discover other people’s point of view 31% want to be seen to be doing well by others

Him … and men think differently to women Her

The tools to express who I am A platform to perform and be heard Opportunity to channel latent creative talent Social Media’s heaviest consumers and contributors Exposure to opinions of people like me 18-24 Year Olds Let me compete Completing the picture for…

Expression and social

Involve me in the brand decision Allow me to help others make the right choice 35-44 Year Olds Keen spectators in Social Media Help me learn and develop Completing the picture for…

Discovery and altruism

55-64 Year Olds Think… The growth Social Media audience Completing the picture for…

How could this apply to your own customers’ social motivations and values ?

Use social influencers to manage threats

1st June: thunder23 “My set pal box receiving signals via Sutton Coldfield has rescanned and found no channels” 2nd June: ferguson2000 “Why do the changes affect only Sutton Coldfield?” 2nd June: ray cathode “Obviously Brummy guinea pigs don’t complain as loudly as southerners” Use social influencers to manage threats

Use social influencers to manage threats

2nd June: ironeagleuk Posts link to news in response to thread 3rd June: AB “I don't feel it's worth buying a new Freeview box until DSO.” 3rd June: cumulonimbus “...the boxes which don't work do not meet the strict standards set by the DTG...” 4th June: g7vyi “I am an AV tech in a school and couldn’t figure why it wasn’t working. Now I know. New box on order.” Use social influencers to manage threats

Social Momentum Social media

Social Momentum Social media

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Share Create Inspire Stimulate Discuss Explore Play Challenge Celebrate Learn Involve Develop a Social Proposition

Infiniti Share our passion and belief in Infiniti by challenging car enthusiasts across Europe

Stimulate fun and irreverent debate around the mating game

Effort Potential Reward

The trigger, 2005

Listen - Join the conversation

Shape - Stimulate the discussion

Challenge - Pose the question

Own - Host the conversation

Define success and our path to it

Know your PLUS column… What value can social media bring to your wider business? Product Development Customer Service Recruitment Research Loyalty Awareness Sales Consideration

So, what do we hope you will take away from the last hour?

Marketing Sherpa Survey 2009

1. Social media is here, now

2. Listen.

3. Develop a social media strategy.

Thank you for listening Any questions, then please email me on rtaylor@tmw.co.uk

QUESTIONS?