Webstock09

1. Bucharest 18 September 2009 Social Net-working Sharifah Amirah [email_address] Principal Analyst Telecoms Europe

4. Fad’ing out – there’s no loyalty in social networks FS ICT WEBSTOCK PRESENTATION MySpace – acquired by NewsCorp in 2006 - valued at $580 million AOL bought Bebo for $850 million Demographic moving on pre-ROI! e.g. Friends Reunited 2005 = $170 million; 2009 = $25 million Additional significant investment  e volution of social networking Prolifer a tion of social networking  connect, collaborate, and share ?

7. Businesses of All Sizes Are Moving Forward with Investments FS ICT WEBSTOCK PRESENTATION Source: Frost & Sullivan Q16. Thinking about the next 12 months, how do you anticipate your organization’s overall usage of social networking will change? / Indicates significantly higher/lower than comparison group at the 95% level.

8. Most Enterprises Do Find Consistent Value FS ICT WEBSTOCK PRESENTATION Source: Frost & Sullivan Q20. What overall trend do you foresee for social networking at your company over the next 12 months?

13. Results The proof is in the pudding?! Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Total Total downloads 98 224 316 429 704 546 655 643 3725 Penetration rate 3.7 % Opinion leader uptake 78 142 115 83 61 34 27 30 570 Opinion leader uptake % 7% Follower Uptake 20 82 201 346 643 622 628 613 3155 Social Viral Gain 0.3 0.6 1.7 4.2 10.5 18.3 23.3 20.4 5.5

14. Results analysis Meaning that the chances of a customer to download is 5.2 times higher if he has a friend that downloaded it. X5.2 Influence Factor = 5.2 Meaning that every influencer made another 5.5 customer download (compare to 0.23 in none influencers) <1.23 Influencer Viral Factor = 5.5 Meaning that the chances of a customer, who is in the top 10% inbound influence group, to download, is 17 times higher if he has a friend that downloaded it X17 Top 10% inbound influence factor = 17 Meaning that it will take 1.33 to spread Viral Speed = 1.33 Social networks are wide and rapid