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Web 2.0 & Online Communities, Summer School 2011




   Day 6: Case studies and the power of free
This week (Week 2)
Tuesday (day 4):
– Internet/Web technologies (web server, HTML, AJAX, ...)
Wednesday (day 5):
– Diving deeper into Facebook pages
Thursday (day 6):
– Social media case studies (strategies!)
– Power of free (Phil Osborne ‐ Marketing)
Miscellany:
–   Class rep!
–   Technical hassles update
–   Blog assignment  1 due tomorrow
–   Group roles organised ‐ tools & ideas being explored
–   Inactive students?
                                                            2
Programme: http://irgo.otago.ac.nz/programme.html
      Registration: http://irgo.eventbrite.com
                                                    3
4
5
Part 1: Social media
    case studies
                       6
Case 1

         7
8
Social media numbers


                                 3, 279,102 friends          620,359 friends



                                 1,043, 850 friends          218,172 friends


                                 1,824 videos uploaded       330 videos uploaded 
                                 Channel Views: 20,024,491   Channel Views: 2,221,268 


                                 137, 206 followers          4, 848 Followers


[Source: Rahaf Harfoush 2008]                                                            9
Other numbers
Overall funds raised:
– McCain $360 million
– Obama $639 million
September ($150 million):
– 67% online
– 33% offline
1 million SMS subscribers
1 billion emails sent

                                10
MyBarackObama.com
          2 Million profiles created
          35,000 volunteer groups
          400,00 blog posts
          200,000 offline events
          70,000 people raised $30 
          million on personal fund 
          pages


[Source: Rahaf Harfoush 2008]                       11
[Source: Edelman, 2009]   12
Case 2

         13
Dell’s social media goals
Enter into conversations with customers everyday in 
every major language
Address any form of customer dissatisfaction head‐on 
knowing that not everything will be solved and some of 
Dell’s weaknesses will be exposed
Encourage "crowd sourcing" as the next step in listening 
to customers
Use video to personalize the Dell story 

                                    ‐‐John Pope, digital media senior manager
“1 million in 2008”
“3 million in 2009”
16
My   anecdote
Case 3

         22
Threadless
Ongoing online t‐shirt competition
Designs submitted by community
Best designs voted on by community
Winning designs then offered for sale
“Threadless sold $6.2 
    million worth of merch
    last year and has pretty 
    much quadrupled in size 
    each year for the past four 
    years. This year’s target = 
    $18‐$20 million.”




‐‐http://www.37signals.com/
Why did it work?
Self‐sustaining
Devoted community
Publicity is free and viral
Quality site and products
Fun  + playful = engaging
Limited editions
DIY = credibility
Strong brand
Case 4

         26
27
Zynga numbers
           Created in 2007
           Obtained 180 million in new investment
           156 (206) employees at start of 2009
           561 (712 ) employees at end of 2009
           Revenue estimated at $300 million
           90 percent of revenue selling "virtual goods"



[Source: http://blogs.reuters.com/]                        28
29
Case 5

         30
Approach
Used social media for a year
Began with filmed wine tastings
Wine Vault TV = 50,000 views (2009)
Website built by Twitter contacts
Business grew by 20‐25%
Gave up all paid advertising (zero advertising 
budget
Case 6

         37
Skittles




           38
39
40
41
What have we
  learned?
               42
END OF PART 1
                43

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