Planys Niche Social Network Overview

INTERNALNICHE SOCIAL NETWORKOVERVIEW

InternalNiche Social Networks

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

DIGITAL MARKETING

InternalNiche Social Networks

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?

DIGITAL MARKETING

INTERNALNiche Social Networks

HOW DOES IT WORK?

Your Digital Marketing $


HOW DOES IT WORK?

Agencies - extract content generation & campaign management revenue


HOW DOES IT WORK?

Facebook - extracts your customer’s social data which is then used to generate revenue from ‘targeted’ banner ads


HOW DOES IT WORK?

You – return short term increased awareness expressed in anonymous ‘Likes’ and ‘Shares’ – but no customer data.


HOW DOES IT WORK?

The cycle repeats – because your competitors are doing the same thing and you need to create differentiation.


“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!

RECENT REPORTS SAY


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!

ITS JUST ADVERTISING


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)

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 over-valuation?

$ MARKET CAP

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Bran

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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

AN ALTERNATIVE


THE RISE OF NICHENiche 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.


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.

P+N+S = INTEREST


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


P+N+S = INTEREST

Agencies Get – less of your money for incremental creative content generation.


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..


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.


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.


COMPARISON


ROIConventional SM Networks Niche SM Networks


SYSTEM OVERVIEW


SYSTEM OVERVIEW

Unique functionality and content based on your subject matter and member interests


SYSTEM OVERVIEW

Control over social relationships, content distribution and direct engagement with members


SYSTEM OVERVIEW

Drive membership using conventional social media and ‘must have’ applications


SYSTEM OVERVIEW

New monetization opportunities based on targeted ads/ spons, subscriptions & ecommerce


EXAMPLEREALRIDER - A dedicated social network for Motorcyclists


INTEREST WEIGHTINGMotorcyclists 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


KEY FUNCTIONSReal 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


KEY FUNCTIONSREALSafe – 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.


MEMBER AQUISITION

Pick up referral codes in motorcycle dealershipsFree membership bundled into insurance policy renewals

REALSafe application available in Apple & Android stores

REALRIDER Facebook pagePush links to Facebook & Twitter to share comments & routes


MANAGEMENTFull 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


MONETISATION

Monthly subscription for REALSafe application

Highly targeted demographic for Motorcycle brandsButton & banner advertisingReal time text sensing returns context based adsSponsored collections and event publicationsData brokering

Revenue share - insurance policy referral – DevitsInsuranceMerchandise sales


NATURAL HOSTSSo 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.


PUBLISHERSNewspaper & 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




Immediate community based on readership. Leverage members from Social Media channels

Existing advertising relationships & content generation capability


COLLECTIBLESProvide 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



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


EVENTS & SHOWSExtend the conversation before and after the event


EVENTS & SHOWSExtend the conversation before and after the event.

Maximize participation & booking revenues




Identify influencers and key figures




Identify influencers and key figures

Become a source of market intelligence by understanding what customers really want


PROFESSIONAL Trade associations, professional bodies & networks


PROFESSIONAL Trade associations & professional bodies & networks

Provide an online place for professional interaction & exchange




Publish business & job opportunities. Find collaborative partners




Publish business & job opportunities. Find collaborative partners

Source of peer to peer professional education, training and discussion of industry issues


FOR MORE INFOPlease contact:

PLANYS CLOUD LIMITED

Carnegie Conference Centre,

Halbeath Road

Dunfermline, Fife KY11 8DY

www.planyscloud.com

Joe Henry E-mail: [email protected]: +44 (0) 7970578266

mailto:[email protected]

Technology

Planys Niche Social Network Overview