1. social networks in the media industry
the strategic imperative
benjamin ruschin | digital head
ruschin@conversations.at | www.conversations.at
supported by media innovation lab / hubert burda media
1 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

2. agenda
• the emerging opportunity
• the status quo
• best practice case study
• the strategic imperative
2 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

3. the emerging business opportunity
3 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

4. the emerging business opportunity
what are the key challenges
confronting media providers?
4 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

5. key challenges
• competing for users‘ time
Source: Nielsen, NetView, June 2011
Germany
Ø facebook users (25 million uniques!) spend an average
of 5 hours/week on facebook
5 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

6. key challenges
• competing for users‘ time
• unpredictability & constant change
• lack of proven best practices
• difficult to set a strategic direction
– Sales? Paid content? Ads? Profits? Business model?
Ø how do we deal with this?
6 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

7. how are news media providers
approaching social?
operational level
7 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

8. operational level
• social distribution
• social customer relationship management
• social commerce
8 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

9. social distribution
• social content posts
9 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

10. social distribution
• social plugins
10 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

11. social customer relationship management
• social interaction
with customers
11 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

12. social customer relationship management
• open graph interface
12 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

13. social commerce
• selling paid content via facebook (apps)
13 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

14. social commerce
• selling paid content via facebook
14 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

15. how should news media providers
approach social?
strategic level
15 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

16. best practice case study
source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media
• “social media for print“ project driven by top level
• strategic in-house driver “media innovation lab“
• corporate budget to explore social networks
• goal: find viable social business models for print media
– build sustainable customer relationship through dialog
– strengthen each brand individually
• individual goals/KPIs for each brand (contextual)
• accountability: each brand has a social champion
responsible for reaching pre-defined KPIs
16 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

17. best practice case study
source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media
• knowledge transfer: knowledge gained by each
magazine/newspaper is crowdsourced and transfered
– monthly “social media meet-up“ => champions get together
– knowledge formalized => handbooks & training
• attempt to build a core competence in the social
domain by learning & institutionalizing the knowledge
• exploration: mindset geared towards experimenting
rather than generating immediate ROI
• assessment: milestones & KPIs (not financial goals)
• time horizon: long-term (not short-term)
17 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

18. best practice case study
source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media
examples
18 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

19. best practice case study
source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media
examples
campaign
• facebook campaign: searching for the
may covermodel (facebook app)
results
• >8000 applicants
• >34000 voters participated
• fostered engagement & participation
• strengthened customer relationships
19 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

20. best practice case study
source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media
examples
20 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

21. best practice case study
source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media
examples
campaign
• royal wedding: facebook & twitter
campaign – regular updates posted
results
• print sales 51% above the average
(highest sales since 2003)
• web traffic from facebook & twitter
increased seven-fold!
21 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

22. the strategic imperative
• put social on the top-level agenda (CEO‘s back-up)
• financial resources: designated budget for social
(corporate innovation fund)
• people: carefully selected champions & innovators
• time horizon: long-term (not short-term)
• activities: exploratory (not revenue-generating)
• assessment: milestones (vs. short-term ROI)
• goals: find viable business models within timeframe
(strategic business building)
22 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

23. the strategic imperative
• knowledge: crowdsource, transfer, institutionalize
• leverage systemic processes for innovation
– separate business unit (structural ambidexterity)
– contextual ambidexterity (80:20 rule)
– cross-functional groups / communities of practice
Ø top-management commitment
Ø business models tailored to each brand
Ø focus on creating the required PRE-CONDITIONS
23 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

24. thanks for your attention
get in touch!
benjamin ruschin | digital head
ruschin@conversations.at | www.conversations.at
special thanks to media innovation lab / hubert burda media for their valuable input!
24 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA