Social Media & Advertising

Presented to the Copenhagen Business Schoolin San Francisco, CA

November 16, 2009

Brief Introduction to Mike Crosson

• Online since 1978, before the Internet was known as the Internet (or Al Gore invented it)

• Former senior executive for Omnicom, MapQuest, Vivendi-Universal, and others

• Founder of Business Computing magazine, Crosson + Partners Advertising

• Co-founder of International Webcasting Association, London

• Current founder and publisher of SocialMediopolis.com and the largest social media community on LinkedIn.com with over 50,000 members

• Co-founder of non-profit ChangeTheWorld.com, in alpha development and in process of fund-raising

World Market Overview

Who Has Access

Internet Ad Revenues Continue to Grow, Despite a Slight Downturn in 2009

Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates. 5

U.S. Online Advertising:One third branding; two thirds direct response

6

Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates.

Total Online Advertising 2007: $21.2 Billion

•Search is the biggest piece of online advertising•Branding spending still under-developed

Display 24%

Search 41%

Classi-fied

s 16%

Other

9% Rich 10%

Display Search Classifieds Other Rich / Video

Keep in Mind, Search Patterns in Social Media Change Dramatically by Country

Source for Social Media Maps: http://royal.pingdom.com/2008/08/12/social-network-popularity-around-the-world/

16-54 Active Internet Universe Estimates

France4m

Italy3.4m

Turkey2m Pakistan

0.97m

Czech0.6m

MEXICO4.1m

China43m

South Korea9.7m

Taiwan4.2m

Philippines2.4m

BRAZIL7.6m

Spain4.5m

India8.7m

Japan14m

HongKong1m

USA26.4m

CANADA1.6m

UK4.5m

Greece0.3m

Australia1m

Germany5.2m Romania

0.5m

Denmark0.3m

Poland1.1mNetherlands

1.6m

Switzerland0.5m Austria

0.4m

Hungary0.1m

Russia2.4m

% Write their own blog

60%+

40% -60%

30%-40%

<30%

Source: Universal McCann Social Media Tracker

Asia Leads in Blogging

GL

OB

AL

Fran

ce

Germ

any

Italy

Ru

ssia

Sp

ain

UK

US

A

0%

10%

20%

30%

40%

50%

60%

70%

80%

2008

2007

2006

% C

reat

e a

pro

file

Source: Universal McCann Social Media Tracker

Russia Leads In Social Networking

• Consumer content drives local language

• Chinese will rise to #1 by 2016

English

29%

Chinese20%

Spanish8%

Japanese6%

French5%

Portuguese5%

German4%

Arabic3%

Russian2%

Korean2%

Rest of the Languages

16%

Users by Language

Source: Internet World Stats

English Language is Losing Dominance

11

Traffic is Huge, But Social Media Advertising Spend is Not… Yet

7% of online media is spent in social media, but growing 26%+ a year

$1.3 B in 2008 to $2.6 B in 2012 in U.S.

Major firms have massive concerns about brand safety and reputation management

Poor quality ad inventory limits exploration with new venues

Ads on SNS are not nearly as effective as advertising online at large

Sources: IDC U.S. Consumer Online Behavior Survey Results 2008, n=3092 U.S. Internet Advertising 2008–2012 Forecast and Analysis: Defying Economic Crisis (IDC #212149, May 2008)

In general, Internet Ad Response Rates Are Abysmal

Rich Media Non-Rich Media0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2.50%

0.41%

1.12%

0.20%

2002

2006

Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates

But they are even worse for Social Media!

Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates

Banner Rich Media Adsense0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Publisher siteSocial Media

The Take-Away on Social Media Advertising:

Just don’t do it.

The Take-Away on Social Media Advertising -Just don’t do it… UNLESS:

• Your primary focus is branding or direct response

• You have millions and millions to spend over a long time period

• You have an integrated marketing platform that leverages your web campaign in other media

• You have your customer support aligned with your marketing

• You embed your social media strategy and values throughout your company

• And, most importantly, you LISTEN and DON’T SELL!

Let’s Focus on Three 800 lb. Gorillas

• YouTube • Facebook• Twitter

YouTube, the Video Gorilla

Agency: Saatchi & Saatchi

Social Media Video Example 1: TMobile

Social Media Video Example 2: GEICO

Facebook, The Friends’ Gorilla

• More than 300 million active users• 50% of active users log on to Facebook in any given day• The fastest growing demographic is those 35 years old and

older• More than 10 million users become fans of Pages each day• More than 8 billion minutes are spent on Facebook each day

(worldwide)• 2nd most popular website in the world

Facebook Advertising

No Cost• Create business profile pages and Fan pages are free • Sending out news & updates to fans and select demographics can be done at no

charge• Automatic updating to Twitter and LinkedIn and RSS feeds can be added at no cost

Small Cost• With Facebook Social Ads, you can explore extremely targeted advertising for

minimal cost.

Twitter, the… well, Twit’s Gorilla

• Over 40 million users…• 14th most popular website in the world• Average age of a twitter user is 31• 20% of online adults age 25-34 have used Twitter• March 2009, a Nielsen.com blog ranked Twitter as the

fastest-growing site in the Member Communities category

Practical Applications of Twitter

Building Synergy Between Both

• Link Twitter and Facebook together using icons, links and FaceBook Connect (and don’t forget Xbox Live coming soon!)

• Use Ping.fm or TwitterFeed to multi-post

• For SEO purposes, reference both in all your communications, including ad campaigns, press releases, on your website and company blog, etc.

• Optimize your posts and Tweets for insite search

Promotion Techniques to Consider

• Run Facebook/Twitter only coupons• Create cool applications and useful

widgets for viral marketing• Send invites to sales and events• Publish event results• Publish company history• Publish company milestones• Ask questions, Twitter is great for

opinion research• Give “pro” tips or helpful hints• Get personal – use a personality

(preferably a real person or position within your company)

47% online participated in online contests or sweepstakes

31% used online coupons

13-17 18-24 25-34 35-44 45-54 55-64 65+0%

10%

20%

30%

40%

50%

60%

70%

Contests

Coupons

Source: IDC U. S. Consumer Online Behavior Survey Results 2008,

Additional social media advertising venues

• LinkedIn – multiple new channels opening up• Hulu – large video site and getting more popular• Other communities – Bebo, Hi5, MySpace, etc. • Digg.com, Propellr, other bookmarking and recommendation sites

(Digg is expanding their CPC network with user-voted advertising , others to follow)

• Technorati – widening their display capabilities• FM Publishing – largest blog network• Blogher Network – for reaching the female audience

Reference sources:

• Social Media Networking, Derek Ross• Playing Together, Panos Sambrakos, Ogilvy One• YouTube.com advertising• Using Social Networks for International Expansion,

Terrance Barkan• Global Social Media Trends, Tom Smith• IDC Summit Presentation, Caroline Dangson

Thanks for your attention

• Contact information for Mike Crosson:

Michael P. CrossonPublisher, SocialMediopolis.comM: 415.299.0637E: mcrosson@changetheworld.com

Co-founder and Chief Revenue Officer, ChangeTheWorld.com

Personal website: MichaelPCrosson.com

Personal non-profit website: ChangeTheWorld.com

Twitter: http://www.twitter.com/mcrosson

LinkedIn: http://www.linkedin.com/pub/mcrosson

Facebook: http://www.Facebook.com/mcrosson

Yahoo! IM: mcrosson

MSN IM: VPAdSalesAOL IM: mcrosson

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