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Social Media in Business
Some data…
Adult Usage Grows from 8% to 65%
Social Network Site Use Growth
% of online adults, 2005-2011
Source: Pew Internet & American Life Project
                                                                           Pew Research found that two-

                                                       61%
                                                                  65%      thirds of adult internet users
                                                                           (65%) now use a social
                                              46%

                                                                     43%
                                                                           networking, up almost 7% from
                                                          38%
                                    29%                                    one year ago (61%),
                                                 27%

            16%                                                            This is about eight times the
  8%                                    13%
                 9%                                                        number in 2005.
       2%

 2005       2006       2007         2008      2009     2010       2011

                                 Ever      Yesterday




  The Social Media Data Stacks
                                                              3
Only email (which 61% of internet
                      users access on a typical day) and
                      search engines (which 59% use on a
                      typical day) are used more frequently
                      than social networking tools.



The Social Media Data Stacks
                                      4
Relative usage on social channels

Top 10 U.S. Web Brands by Aggregate Time Spent
U.S. web users monthly minutes in billions, home and work
Source: The Nielsen Company


             Facebook                                           53.5
                                                                       Facebook: 53.5 billion
                Yahoo             17.2
                                                                       minutes per month.
               Google       12.5

            AOL Media      11.4

MSN/Windows Live/Bing      9.5
                                                                       YouTube ranks
             YouTube       9.1

                 Ebay        4.5                                       sixth, claiming 9.1
                   EA        4.3
                                                                       billion user minutes
                Apple        4.3

             Microsoft      3.4                                        per month.

  The Social Media Data Stacks
                                                            5
55+ Users Double Mobile Visits

Social Network Growth, by Age, Ethnicity
% change, Q3 2010 v. Q3 2011
Source: The Nielsen Company                                                More than twice as
                                                                           many people age 55
                         109%
                                                                           and older visited
                                                                           social networks on
                                                   76%
                  68%                                                70%
                                 67%
           61%                                                             their mobile phone in
                                       45%
                                             41%
                                                         44%
                                                               37%
                                                                           Q3 2011 compared to

   16%
                                                                           Q3 2010,. That’s a
                                                                           jump of 109% year-
                                                                           over-year.


  The Social Media Data Stacks
                                                         6
51% Access Facebook via Mobile
Facebook, Twitter Reach among Smartphone Users
3-month average, ending June 2011
Source: Experian Hitwise




        50.9%
                                                                  Slightly more than half of
                                                                  U.S. smartphone owners
                                        31.7%

                                                                  (50.9%) access Facebook
                      12.5%
                                                                  on their device
                                                     7.4%




        U.S. smartphone users         European smartphone users

                           Facebook   Twitter




 The Social Media Data Stacks
                                                        7
68% Challenged by Social Media
Marketing Challenges Reported by CMOs
% of respondents, October 2011
Source: IBM                                 Nearly seven in
             Data explosion

               Social media
                               71%

                               68%
                                            10 (68%)
         Growth of channel
                               65%
         and device choices
          Shifting consumer
            demographics
                               63%
                                            marketing
       Financial constraints   59%

   Decreasing brand loyalty    57%          executives feel
Growth market opportunities    56%

         ROI accountability
     Customer collaboration
                               56%          unprepared for
                               56%
          and influence
      Privacy considerations

         Global outsourcing
                               55%

                               54%
                                            the demands
  Regulatory considerations    50%

    Corporate transparency     47%



   The Social Media Data Stacks
                                        8
8 in 10 Connect to Brands on Facebook
Preferred Social Network for Brand Connection
% of social network users, May 2011
Source: Edison Research and Arbitron




                  6%
  3%       5%
                                                             80% of US social
   6%                            80%            Facebook
                                                Twitter
                                                             network users
                                                LinkedIn
                                                Other
                                                             connect with brands
                                                Don't know
                                                             through Facebook.




  The Social Media Data Stacks
                                                   9
Social Sites Impact 35% of Shoppers
Community, Social Tools that Impact Buying
% of respondents, June 2011
Source: e-tailing group, PowerReviews                         About six in 10 (59%)
        User-generated
        product reviews
                                                        59%   online shoppers say
   Online customer Q&A
    on product website
                                             42%
                                                              user-generated
   Community forums
 (conversations between                26%
       customers)
                                                              customer product
  User-generated videos          15%

     Facebook company
                                 13%
                                                              reviews have a
         fan pages

    Facebook newsfeed
   (friends talking about
         products)
                                 13%                          significant or good
     Mobile (iPhone app,
         text alerts)
                            9%
                                                              impact on their buying
      Twitter (monitor,
    respond to, and post    9%
           tweets)
                                                              behavior.

  The Social Media Data Stacks
                                                   10
Consumers Expect Something for “Like”
Consumer Expectations for Brand Liking                                  ExactTarget reports that
% of Facebook users, September 2011
Source: ExactTarget
                                                                        more than six in 10
               Expect access to exclusive
                                                                  58%
                content, events or sales                                (63%) Facebook users
               Expect discounts or
           promotions through Facebook
                                                                  58%
                                                                        who “like” a brand or
             Expect to receive updates
           about the co. to the newsfeed
                                                            47%

        Expect the company to post
                                                                        product on Facebook
   updates, photos or videos to newsfeed
                                                      39%

             Expect to share with friends,
                                                      38%
                                                                        expect something in
               family and/or coworkers

                 Expect the name of co.
                to show up on my profile
                                                     37%                return - access to
                        Do not expect
                      anything to happen
                                                     37%                exclusive content, events
     Expect the co. to send more relevant
      content based on my public profile
                                                     36%                or sales, and discounts
             Expect to interact with page
                                               28%
             owner (e.g., brand, person)
                                                                        or promotions through
            Expect the co. to access data
                in my public profile
                                              27%
                                                                        Facebook.
             Expect the co. to contact me
               through other channels
                                             24%



  The Social Media Data Stacks
                                                      11
On Average, 29% Seek Purchase Advice


                                Social Networks as a Source of Purchasing
                                Advice
                                % of respondents who sought advice, June 2011
                                Source: ROI Research and Performics

 46%
        42%
               39%
                      34%      33%   33%
                                           31%   30%
                                                       28%   28%
                                                                   26%   25%   24%   23%   22%   21%
                                                                                                       19%
                                                                                                             17%




The Social Media Data Stacks
                                                             12
Quick Examples
of Social Media Applications
COMMUNICATIONS MATERIALS
Community Events – critical bridge in helping virtual
friends become real-life contacts.
Customer Focus
SEO
How to make sure you are found on the internet


 • Use offsite and onsite SEO.
 • Make sure the search engine spiders can access your site.
 • Tell your story, provide reasons for people to keep coming back.
 • Keyword research and monitoring .
 • Monitor traffic for trends, make adjustments.
 • Use HTML Tags and Coding.
 • Keep fresh, consistently updated content.
 • Offsite optimization – Back Link Building.
 • Integrate Social Media sharing to your content.
Content Management Planning…

      the hardest part.
Its personal… you have to keep it that way.
Marketing is in everything.
What do I say?
      Chip Heath’s research focuses on two general
      areas: What makes ideas succeed in the social
      marketplace of ideas, and how can people
      design messages to make them stick?

      Professor of Organizational Behavior in the Stanford Graduate School
      of Business. . Prior to joining Stanford, Professor Heath taught at
      the University of Chicago Graduate School of Business and the
      Fuqua School of Business at Duke University. He received his
      BS in Industrial Engineering from Texas A&M University and his
      PhD in Psychology from Stanford.
What do I say?

  Human decision making is like a
      tiny rider on a massive
elephant. The rider may think he’s
 in charge, but the elephant’s will
always wins. Both are imperfect –
  the rider over-thinks and over-
  analyzes. The elephant acts on
       passion and emotion.
Heath’s advice for causing change was three-pronged:

                        1. Direct the rider
                        2. Motivate the
                           elephant
                        3. Shape the path
What do I say?

Direct the rider:

Humans obsess about problems. You have to give them
clarity and consistency. Your purpose and your values and
the messages you want to convey must be carefully
planned out and executed on schedule.
What do I say?
Motivate the Elephant:

The elephant is all about emotion and instant gratification - you
have to motivate the elephant to get people’s attention.

People often react better to a good story than heaps of data. Tell
a story and allow your listeners to draw their own conclusions
(which ideally match up with yours).
What do I say?
Shape the path:

Make the situation and the environment such that the
desired behavior is frictionless.
“What looks like a people problem is often a situation
problem,” Heath explained. If you remove every single
barrier between people and the actions you want them
to take , it makes it easier for them to act.
Social Media is just one part of marketing…
…it cannot happen in a vacuum.
Business cannot be done in a vacuum either.
• If you don’t talk to your customers, someone else will.

• People are talking about you, whether you choose to listen
  or not. Its better to be part of the conversation than to be
  unaware.

• Your greatest asset is your reputation. It can be your
  greatest downfall if neglected. You have to protect it and
  nurture it.

• Now more than ever before we have the tools to really
  listen to our customer and understand what they want.
Maureen Donnellan

mdonnellan@strategicadvisersllc.com
          859.653.6774

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Social Media in Business

  • 1. Social Media in Business
  • 3. Adult Usage Grows from 8% to 65% Social Network Site Use Growth % of online adults, 2005-2011 Source: Pew Internet & American Life Project Pew Research found that two- 61% 65% thirds of adult internet users (65%) now use a social 46% 43% networking, up almost 7% from 38% 29% one year ago (61%), 27% 16% This is about eight times the 8% 13% 9% number in 2005. 2% 2005 2006 2007 2008 2009 2010 2011 Ever Yesterday The Social Media Data Stacks 3
  • 4. Only email (which 61% of internet users access on a typical day) and search engines (which 59% use on a typical day) are used more frequently than social networking tools. The Social Media Data Stacks 4
  • 5. Relative usage on social channels Top 10 U.S. Web Brands by Aggregate Time Spent U.S. web users monthly minutes in billions, home and work Source: The Nielsen Company Facebook 53.5 Facebook: 53.5 billion Yahoo 17.2 minutes per month. Google 12.5 AOL Media 11.4 MSN/Windows Live/Bing 9.5 YouTube ranks YouTube 9.1 Ebay 4.5 sixth, claiming 9.1 EA 4.3 billion user minutes Apple 4.3 Microsoft 3.4 per month. The Social Media Data Stacks 5
  • 6. 55+ Users Double Mobile Visits Social Network Growth, by Age, Ethnicity % change, Q3 2010 v. Q3 2011 Source: The Nielsen Company More than twice as many people age 55 109% and older visited social networks on 76% 68% 70% 67% 61% their mobile phone in 45% 41% 44% 37% Q3 2011 compared to 16% Q3 2010,. That’s a jump of 109% year- over-year. The Social Media Data Stacks 6
  • 7. 51% Access Facebook via Mobile Facebook, Twitter Reach among Smartphone Users 3-month average, ending June 2011 Source: Experian Hitwise 50.9% Slightly more than half of U.S. smartphone owners 31.7% (50.9%) access Facebook 12.5% on their device 7.4% U.S. smartphone users European smartphone users Facebook Twitter The Social Media Data Stacks 7
  • 8. 68% Challenged by Social Media Marketing Challenges Reported by CMOs % of respondents, October 2011 Source: IBM Nearly seven in Data explosion Social media 71% 68% 10 (68%) Growth of channel 65% and device choices Shifting consumer demographics 63% marketing Financial constraints 59% Decreasing brand loyalty 57% executives feel Growth market opportunities 56% ROI accountability Customer collaboration 56% unprepared for 56% and influence Privacy considerations Global outsourcing 55% 54% the demands Regulatory considerations 50% Corporate transparency 47% The Social Media Data Stacks 8
  • 9. 8 in 10 Connect to Brands on Facebook Preferred Social Network for Brand Connection % of social network users, May 2011 Source: Edison Research and Arbitron 6% 3% 5% 80% of US social 6% 80% Facebook Twitter network users LinkedIn Other connect with brands Don't know through Facebook. The Social Media Data Stacks 9
  • 10. Social Sites Impact 35% of Shoppers Community, Social Tools that Impact Buying % of respondents, June 2011 Source: e-tailing group, PowerReviews About six in 10 (59%) User-generated product reviews 59% online shoppers say Online customer Q&A on product website 42% user-generated Community forums (conversations between 26% customers) customer product User-generated videos 15% Facebook company 13% reviews have a fan pages Facebook newsfeed (friends talking about products) 13% significant or good Mobile (iPhone app, text alerts) 9% impact on their buying Twitter (monitor, respond to, and post 9% tweets) behavior. The Social Media Data Stacks 10
  • 11. Consumers Expect Something for “Like” Consumer Expectations for Brand Liking ExactTarget reports that % of Facebook users, September 2011 Source: ExactTarget more than six in 10 Expect access to exclusive 58% content, events or sales (63%) Facebook users Expect discounts or promotions through Facebook 58% who “like” a brand or Expect to receive updates about the co. to the newsfeed 47% Expect the company to post product on Facebook updates, photos or videos to newsfeed 39% Expect to share with friends, 38% expect something in family and/or coworkers Expect the name of co. to show up on my profile 37% return - access to Do not expect anything to happen 37% exclusive content, events Expect the co. to send more relevant content based on my public profile 36% or sales, and discounts Expect to interact with page 28% owner (e.g., brand, person) or promotions through Expect the co. to access data in my public profile 27% Facebook. Expect the co. to contact me through other channels 24% The Social Media Data Stacks 11
  • 12. On Average, 29% Seek Purchase Advice Social Networks as a Source of Purchasing Advice % of respondents who sought advice, June 2011 Source: ROI Research and Performics 46% 42% 39% 34% 33% 33% 31% 30% 28% 28% 26% 25% 24% 23% 22% 21% 19% 17% The Social Media Data Stacks 12
  • 13. Quick Examples of Social Media Applications
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  • 18. Community Events – critical bridge in helping virtual friends become real-life contacts.
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  • 24. SEO How to make sure you are found on the internet • Use offsite and onsite SEO. • Make sure the search engine spiders can access your site. • Tell your story, provide reasons for people to keep coming back. • Keyword research and monitoring . • Monitor traffic for trends, make adjustments. • Use HTML Tags and Coding. • Keep fresh, consistently updated content. • Offsite optimization – Back Link Building. • Integrate Social Media sharing to your content.
  • 25. Content Management Planning… the hardest part.
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  • 27. Its personal… you have to keep it that way.
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  • 29. Marketing is in everything.
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  • 31. What do I say? Chip Heath’s research focuses on two general areas: What makes ideas succeed in the social marketplace of ideas, and how can people design messages to make them stick? Professor of Organizational Behavior in the Stanford Graduate School of Business. . Prior to joining Stanford, Professor Heath taught at the University of Chicago Graduate School of Business and the Fuqua School of Business at Duke University. He received his BS in Industrial Engineering from Texas A&M University and his PhD in Psychology from Stanford.
  • 32. What do I say? Human decision making is like a tiny rider on a massive elephant. The rider may think he’s in charge, but the elephant’s will always wins. Both are imperfect – the rider over-thinks and over- analyzes. The elephant acts on passion and emotion.
  • 33. Heath’s advice for causing change was three-pronged: 1. Direct the rider 2. Motivate the elephant 3. Shape the path
  • 34. What do I say? Direct the rider: Humans obsess about problems. You have to give them clarity and consistency. Your purpose and your values and the messages you want to convey must be carefully planned out and executed on schedule.
  • 35. What do I say? Motivate the Elephant: The elephant is all about emotion and instant gratification - you have to motivate the elephant to get people’s attention. People often react better to a good story than heaps of data. Tell a story and allow your listeners to draw their own conclusions (which ideally match up with yours).
  • 36. What do I say? Shape the path: Make the situation and the environment such that the desired behavior is frictionless. “What looks like a people problem is often a situation problem,” Heath explained. If you remove every single barrier between people and the actions you want them to take , it makes it easier for them to act.
  • 37. Social Media is just one part of marketing… …it cannot happen in a vacuum.
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  • 39. Business cannot be done in a vacuum either.
  • 40. • If you don’t talk to your customers, someone else will. • People are talking about you, whether you choose to listen or not. Its better to be part of the conversation than to be unaware. • Your greatest asset is your reputation. It can be your greatest downfall if neglected. You have to protect it and nurture it. • Now more than ever before we have the tools to really listen to our customer and understand what they want.