Presentation to SCAD Alumni about Social Media, 2010

1. STRATEGIC
WEB 2.0
MARKETING
Jacob J. Aull
5/1/09
Copyright © SMC³

2. Business & Social Meida
Introduction to Web 2.0
Industry Drivers
Customer Behavior Analysis
Common Business Objectives & Strategy
Challenges Involved
Solutions
Measurable Benefits
Potential
Features/Benefits
Who Does Social Media Advertising?
Conclusion
Sources

3. What is Web 2.0?
The “old” Internet vs. the new
Broadcast is dead
“Multi-channel collaboration”
Social Media
Moving into Web 3.0 and the semantic
Web…

4. Web 1.0 vs. Web 2.0 (a)

5. Industry Drivers for Web 2.0
Technology
• Linux
• Widgets
• Mash-ups
Business open strategies
• Open sourcing (or open innovation)
• Agile
• Alliance partners
• Affiliates

6. Industry Drivers, cont’d
Web drives marketing
Costs
• $ = Low, or free
• Time to learn, familiarize (growing pains)
• Time to launch
• Time to maintain
Customers
• Where they are
• Information sharing
Contacts

7. Industry Drivers for companies
New Business Strategies
Competition
…not “if,” but “when!”

8. Customer Behavior Analysis (b)
Gen Y (up to age 32) is more likely to:
• Get info about a job (64%)
• Use social networking sites (67%)
• Read blogs (43%)
Gens X+ (age 33+) are more likely to:
• Buy something online (80-72%)
• Bank online (65-49%)
• Visit gov’t sites (64-63%)

9. Customer Behavior, cont’d (b)
Less variation between generations:
• Use email (91%)
• Use search engines (89%)
• Research products (81%)
• Get news (70%)
• Make travel reservations (68%)
• Research for job (51%)
• Rate a person or product (32%)
• Download videos (27%)
• Participate in an online auction (26%)
• Download podcasts (19%)
Bold = Web 2.0-specific

10. Common Business Objectives
Customer
• Customer-focus
• Information
Technology integration
• Video
• RSS
Communications
• Internal
• External

11. Business Strategies
Open sourcing (open innovation) c
• “Prosumer”-driven
• Partner-driven
• Case study examples d
– IBM/Linux
– Boeing 777
– Nike.com
Requests/RFIs/ New Adapted Partner/
online bidding/ > product > marketing > prosumer/
contests/customer development communications sales
communications (mktg = PR) e

12. Business Strategies, cont’d
Metcalfe’s Law (eBay)
Network Brand Market Profit
effects > awareness > share > margin
(used to be
share-of-voice)
The Long-Tail Theory (obscure products/services) f
Online niche Developed Prospect Niche Niche
communities > markets > niche > cross- > sales
(targets) search communications

13. Perceptions Challenged
Transparency
• Competition?
Negativity potential
• Customer back lash
Company structure
• Bottom-up-driven
Mental shifts
• Customer identification; “prosumers”
• Beyond the “walled garden”

14. Challenges to entry
Strategic planning
• Objectives
• Customer/Segment usage
• Media purpose
• Maintenance
• Clear communications capability

15. Challenges to entry, cont’d
Sophistication level
• vs. competitors
• vs. customers
• “What will people think?”
• “New kid” syndrome

16. Customer-side Benefits
Having the provider’s ear
Desired info
• e.g., prospects searching Digg
• or KnowledgeStorm
RSS control

17. Benefits from Customers
Customer-focus
• Finding & connecting
• Collaboration
• CRM
• Information provided (& shared)
– More detail
– Profiling
• Sales networking
– LinkedIn
• Customers choose you & your info

18. Measurable Benefits
Low communications costs
• Especially for one-to-one
n=1 (g)
• CRM
• “Fans” (net promoters)
• Customer-preference-indication data (blogs)
Network effects
• SEO/page rank
• Click-throughs
• Awareness
• Availability

19. Marketing Media Channels (h)

20. Potential Loss (from previous chart h)
Total leads from online media (excluding “other” and
“email”) = 37%
Without Social Media, there’s an 8% loss of total
leads
SEO results, excluding social media, could be half as
effective:
• We know some % of SEO leads are achieved with a page rank
via network effects comprising multiple Web sites and Social
Media.
• We know that at bare minimum, 8% of total leads are visiting
Social Media (hence increasing SEO page rank).
• We know that SEO organic listings results (driving hits) are
completely determined by page rank (& keywords).
• If the impact were 1:1, then ½ of the 16% SEO leads would
have been enabled by Social Media marketing.

21. Potential Gain (h)
Another way to look at it…
If 16% of leads are yielded from Social Media (8% Social
Media results + ½ of 16% SEO results)…
And if doing no Social Media mktg currently…
By adding it to mktg plan, we could potentially achieve a
19% increase in total leads!
• (Assuming currently operating at 84% leads-potential by
neglecting Social Media, 100% / 84% = 1.19 multiple. 1.19 x
16% Social Media impact = 19% increase in leads.)

22. Company Impact Example (no Social Media mktg) i
• Leverage Testimonials
• Customer References
• Online Community
• BLOGS
• Newsletters
• Communicate
through Partners

23. Company Alternative Potential Gain (i)
10% of respondents heard of SMC conference from Web site.
If those site hits occurred from search engine organic listings,
that could potentially double (according to previous slide data &
math; irrespective here of PPC hits).
3% of respondents heard of SMC conference from “Other;”
including “Online Community,” “Blogs,” “Customer References”
and “Communicate through Partners.”
If these responses represent half of “Other” total awareness
leads (1.5%), they could double via Social Media involvement –
giving more leads in addition to increased search leads (11.5%
more awareness leads total).
Imagine if these percentages were applied to our product lead
and development cycle - double the leads from Web media
(irrespective of PPC)!

24. If Competitors are in Social Media, but Company isn’t…
There are customers whose preferred
channels of communications are social
media.
Those are leads competitors obtain and
company misses.
Competitors have uncontested voice, via
those 16% leads-generating channels, to
steal business away.

25. Features/Benefits cont’d
Video upload & Web site widget
• YouTube
Image sharing
• Flickr
User-specified RSS feeds
• Difference from EMBs
• Press releases
• “Following” defined
• Twitter

26. Who Does Social Media Advertising? (j)
The top 16 IT companies (by revenue) were researched over 3
days for Web 2.0 promotions.
These were mainly B2B – or, like Microsoft and Adobe, had B2B
as well as consumer faces.
Resulting 65% representation in the measured Web 2.0 media
channels .
(100% would have equaled each company, with 1 promotion, in
each media channel – or, “Total Investigations.”)
Web2.0 ads‐Top 16 IT companies Social Networking Software Virtual
LinkedIn FaceBook MySpace Totals: Weblog submission sites Tagging Media Worlds Web 2.0
Media channels Custom pg (organic) Custom pg (organic) Custom pg (organic) Custom pg total: Network Totals: Digg TOTAL: flickr Del.icio.us TOTAL: Second LifeTotals:
PPC ads PPC ads PPC ads PPC ad totals: Technorati
Total Promotions: 15 3 19 3 7 6 41 12 53 6 10 16 12 15 27 19 115 Total Promotions
Total investigations: 16 16 16 16 16 16 48 48 96 16 16 32 16 16 32 16 176 Total investigations

27. Benefits, concluded (a)

28. Sources
A.) Mastering Online Marketing by Mitch Meyerson
B.) “Generations online in 2009” by Sydney Jones, Pew/Internet (pdf)
C.) “There is no more normal” by Jena McGregor, BusinessWeek
Mar 23 & 30, 2009
D.) Wikinomics: How Mass-Collaboration Changes Everything
by Tapscott and Williams
E.) The New Rules of Marketing and PR by David Scott
F.) “The Long Tail” by Chris Anderson, Wired Magazine
G.) The New Age of Innovation by Prahalahad
H.) “Study: Company Blogs Lead Social Media Options” by Mark Walsh, MediaPost.com
Jan 30, 2009
I.) MeetingExpectations! Conference Research Results (powerpoint file)
J.) “The Viral Green – The IT Industry and Web 2.0 Marketing.” by Jacob J. Aull, GSU
masters’ final project research report. Apr 29, 2009.