The document discusses the potential for niche social networks compared to conventional social media networks like Facebook. It argues that niche social networks allow for deeper customer engagement, ownership of customer data, and new monetization opportunities through targeted advertising and sponsorships. Examples are provided of how niche networks could work for industries like motorcycling, publishing, collectibles, events, and professional associations. The document promotes developing a niche social network using the company Planys Cloud for hosting and support.
2. Internal
Niche Social Networks
DIGITAL MARKETING
Digital Marketing expenditure is growing very
rapidly – 9% in 2013 alone.
Magazine advertising is shrinking b 3% per year.
For every $1Bn of sales $25M is spent on
Digital Marketing.
50% of all DM spend is outsourced (Agency)
24.1% of DM spend is digital advertising,
content generation and management
3. Internal
Niche Social Networks
DIGITAL MARKETING
Agency sourced creative content generation
and Social Media campaigns are the major
components of DM spend
DM activities focus on viral content sharing
and social media engagement (i.e. ‘Likes’
and ‘Sharing’)
BUT HOW EFFECTIVE IS THIS
AS A METHOD OF CUSTOMER
ENGAGEMENT?
6. INTERNAL
Niche Social Networks
HOW DOES IT WORK?
Facebook - extracts your customer’s social data which is
then used to generate revenue from ‘targeted’ banner ads
7. INTERNAL
Niche Social Networks
HOW DOES IT WORK?
You – return short term increased awareness expressed in
anonymous ‘Likes’ and ‘Shares’ – but no customer data.
8. INTERNAL
Niche Social Networks
HOW DOES IT WORK?
The cycle repeats – because your competitors are doing
the same thing and you need to create differentiation.
9. INTERNAL
Niche Social Networks
RECENT REPORTS SAY
“Facebook is failing marketeers”..“..the vast majority of
Facebook interaction is now almost entirely based on
conventional Web 1.0 banner ads…………..less than 15% of
display ads make use of Facebook’s social data to target
relevant audiences....”
(Nate Elliot Forester Research Oct 2013)
1 in 3 companies that do measure ROI report negative ROI
Exceptional examples of success are often held up as the
rule
Campaigns focus on short term awareness based on
creative content - rather than genuine customer
engagement!
10. INTERNAL
Niche Social Networks
ITS JUST ADVERTISING
Facebook generates ad revenue based on page impressions
rather than genuine customer engagement
This is really no different from conventional
broadcast/publication advertising
Does not fulfil the ‘customer engagement’ promise of social
media marketing.
Fails to exploit the Social Media opportunity
But – its even more serious than that!
11. INTERNAL
Niche Social Networks
Why? There is only one reason – Data!
Social Media channels are becoming the new
custodian of customer data – demographics
wants and aspirations!
Brands stand to lose the lifeblood of their
business – a deep understanding of their
customers. Will Brand Market Cap fall in
proportion to Social Media’s overvaluation?
Brand Market Cap
Social Media market cap is currently $190Bn –
more than18 times the predicted value of the
Social Media market in 2017. i.e. hugely over
valued by conventional measures. (Forbes
November 2013)
Social Media Market Cap
$ MARKET CAP
12. INTERNAL
Niche Social Networks
AN ALTERNATIVE
This might be fine for some Brands - but for others interested in
truly engaging with customers there is an alternative approach.
Dedicated/Niche/Vertical Social Networks - based on INTERESTS:
• More directly relevant - members specific interests
• More engaging for members - more frequent interaction
• Greater value to both subscribers and Brands
Niche Social Networks offer:
• Deeper engagement with your community of customers
• Peer generated content and self sustained interest
• Access to Social Data - you own the data
• New revenue opportunities - highly targeted ads & sponsorship
• A unique new way to compete
13. INTERNAL
Niche Social Networks
THE RISE OF NICHE
Niche Networks are on the rise
• Quora (Interest Focused) – 500,000 members within 1 year
• Kaboodle (Shoppers Network) – 800,000 members, 12M visits/ mth
• Ravelry (Knitting & Crocheting) – 3.5M members
• Flixter (Movies) – 15M/month
• RealRider (Motorbiking) – 12,000 UK members since Feb 2013
By Contrast.. The Guardian April 2013 In the last month, the world's largest social network has lost 6m US
visitors, a 4% fall, according to analysis firm SocialBakers. In the UK, 1.4m
fewer users checked in last month, a fall of 4.5%. The declines are
sustained. In the last six months, Facebook has lost nearly 9m monthly
visitors in the US and 2m in the UK.
14. INTERNAL
Niche Social Networks
P+N+S = INTEREST
Social INTEREST is a combination of:
Passion - the level of dedication that a user is prepared to
apply to the subject matter.
Need - to what extent the subject matter is required to
perform a professional function or to support family or social
life.
Spend - the level of expenditure associated with the subject
matter may in itself be enough to drive interest - everybody
wants value for money and to make the right purchasing
decisions.
15. INTERNAL
Niche Social Networks
P+N+S = INTEREST
Niche Social Neworks are more effective when the Social
Interest Weighting of your subject matter outweighs that of the
average Facebook campaign
17. INTERNAL
Niche Social Networks
P+N+S = INTEREST
Facebook Gets – less of your money for ads and less of your
customers data. Instead it is used to feed potential customers
to your Niche Social Network..
18. INTERNAL
Niche Social Networks
P+N+S = INTEREST
You Get – deeper engagement, sustained interest, your own
customer data, reduced DM spend, control over features/
functions/relationship rules, new revenue opportunities.
19. INTERNAL
Niche Social Networks
P+N+S = INTEREST
Your Customers Get – higher value social interaction and
relevant features & functions, based on subject matter that
they are genuinely interested in.
28. INTERNAL
Niche Social Networks
INTEREST WEIGHTING
Motorcyclists are extremely passionate about their bikes. There is
significant nostalgia, aspiration and recreational activity around
the subject.
The need is to stay safe. Motorcyclist s are 3 times more likely to
be fatally injured in an accident than any other motoring group.
Skills, hazards and emergency responses are all significant factors.
Clearly motorcycles themselves are a major purchase. However,
aftermarket items, insurance and accessories are also expensive
contributing to and average cost of ownership of around $8000p.a.
Heavy. Motorcycling is a serious hobby featuring significant
Passion, Need and Spend for the enthusiast
29. INTERNAL
Niche Social Networks
KEY FUNCTIONS
Real time GPS route tracking allows users to record
and share routes.
Users also record POI’s such as fueling points,
places to stay, places to eat, scenic views and road
hazards to share with other users
Full range of typical social media message board
and relationship tools.
Additional social functions such as your ‘GARAGE’
which is a place to store and share information
about the bikes you have owned and the bikes that
you aspire to own.
Events calendar – publishing public and private
events
30. INTERNAL
Niche Social Networks
KEY FUNCTIONS
REALSafe – a crash detection Smartphone
application that uses motion sensors to detect
possible crash events.
On detection users have 90s to confirm that they are
OK – otherwise a message is sent to emergency
services containing:
Use ID, blood type, location, incident severity
This is the only UK Emergency Services approved
application of its type.
31. INTERNAL
Niche Social Networks
MEMBER AQUISITION
Pick up referral codes in motorcycle dealerships
Free membership bundled into insurance policy renewals
REALSafe application available in Apple & Android stores
REALRIDER Facebook page
Push links to Facebook & Twitter to share comments &
routes
32. INTERNAL
Niche Social Networks
MANAGEMENT
Full range of typical and some custom social
media functions.
Content collections of images and video
generated by users. Sponsored, promotional
collections provided by motorcycle brands.
Launch hosting and technical support provided
by Planys Cloud
33. INTERNAL
Niche Social Networks
MONETISATION
Monthly subscription for REALSafe application
Highly targeted demographic for Motorcycle brands
Button & banner advertising
Real time text sensing returns context based ads
Sponsored collections and event publications
Data brokering
Revenue share - insurance policy referral – Devits
Insurance
Merchandise sales
34. INTERNAL
Niche Social Networks
NATURAL HOSTS
So should any organisation implement a Niche Social
Network?
There are some things to bear in mind!
Social Interest Weighting should be heavy enough to sustain
interest for users. Passion needs to be genuine and not
synthetic. Nobody is really actually passionate about Coke –
that’s just marketing hyperbole.
A perception of independence is important – people do not
want to feel that they are being sold to.
This may appear to preclude Brands that operate in a
competitive environment. But it would not preclude Brands
that are in themselves iconic or embody the interest itself.
36. INTERNAL
Niche Social Networks
PUBLISHERS
Newspaper & Magazine ad revenue
shrinking at 3% per year – while mobile
& social media advertising is growing at
24.5% p.a. (Telegraph Dec 2013)
Stem the loss of market share
37. INTERNAL
Niche Social Networks
PUBLISHERS
Newspaper & Magazine ad revenue
shrinking at 3% per year – while mobile
& social media advertising is growing at
24.5% p.a. (Telegraph Dec 2013)
Stem the loss of market share
Immediate community based on
readership. Leverage members from
Social Media channels
38. INTERNAL
Niche Social Networks
PUBLISHERS
Newspaper & Magazine ad revenue
shrinking at 3% per year – while mobile
& social media advertising is growing at
24.5% p.a. (Telegraph Dec 2013)
Stem the loss of market share
Immediate community based on
readership. Leverage members from
Social Media channels
Existing advertising relationships &
content generation capability
40. INTERNAL
Niche Social Networks
COLLECTIBLES
Provide a social environment for
your customers to indulge their
passion
Direct path to purchase & new
revenue streams such as
advertising, vouchers,
sponsorship and secondary
market sales
41. INTERNAL
Niche Social Networks
COLLECTIBLES
Provide a social environment for
your customers to indulge their
passion
Direct path to purchase & new
revenue streams such as
advertising, vouchers,
sponsorship and secondary
market sales
Provide a point of introduction for
new enthusiasts by driving traffic
from other social networks
44. INTERNAL
Niche Social Networks
EVENTS & SHOWS
Extend the conversation before
and after the event.
Maximize participation & booking
revenues
Identify influencers and key
figures
45. INTERNAL
Niche Social Networks
EVENTS & SHOWS
Extend the conversation before
and after the event.
Maximize participation & booking
revenues
Identify influencers and key
figures
Become a source of market
intelligence by understanding
what customers really want
48. INTERNAL
Niche Social Networks
PROFESSIONAL
Trade associations & professional
bodies & networks
Provide an online place for
professional interaction &
exchange
Publish business & job
opportunities. Find collaborative
partners
49. INTERNAL
Niche Social Networks
PROFESSIONAL
Trade associations & professional
bodies & networks
Provide an online place for
professional interaction &
exchange
Publish business & job
opportunities. Find collaborative
partners
Source of peer to peer
professional education, training
and discussion of industry issues
50. INTERNAL
Niche Social Networks
FOR MORE INFO
Please contact:
PLANYS CLOUD LIMITED
Carnegie Conference Centre,
Halbeath Road
Dunfermline, Fife KY11 8DY
www.planyscloud.com
Joe Henry
E-mail: joe@planys.com
Mobile: +44 (0) 7970578266