WOMMA Summit 2006

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of mouth marketing program at
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(c) 2006 Word of Mouth Marketing Association.
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2. Social Networking:
Marketing 1:1: Millions
Debra Aho Williamson
Senior Analyst, eMarketer

3. Who is eMarketer?
We aggregate and analyze data from
hundreds of sources – to make sense
of the chaos of numbers and trends
30,000-foot view
eMarketer
IDC
TNS PwC
“To get one opinion is probably
Nielsen//NetRatings Ipsos
IAB
Forrester USDC
not the right way to go.” comScore
Zenith
Slide 3

4. What’s On Tap Today
• Social Networking Circa 2006
• Key User Metrics
• Who’s Advertising
• Social Network Ad Spending
• What’s Next in Social Networking
Slide 4

5. Is This Your Image of Social Networking?
Slide 5

6. Social
Networking
Circa 2006
Slide 6

7. Lots of Fish in the Sea …
Slide 7

8. People Visit Social Networking
Sites Regularly
Slide 8

9. Young People Are 2x Likely to Visit
Slide 9

10. Yes, Social Networking is a Buzzword
Media mentions (thru 11/30/05 and 11/30/06):
2005 2006
28,596
2,257
5,437
Source: Factiva
611
Slide 10

11. Rupert’s Change of Heart?
“Let me ring up
Sumner
Redstone …”
“God knows what
we’re going to do with
MySpace.” (July 2006)
“This thing may be
worth $6 billion!”
(November 2006)
Slide 11

12. Key User Metrics
Slide 12

13. Unique Visitors Soar … Then Slow
US Unique Visitors to MySpace and Facebook,
Up 92%
November 2005-October 2006 (source: comScore)
Nov-May
but only 9%
60
May-Oct.
56.1
55.8
50
51.4
40
Millions
Up 27%
30
26.7
Nov-May
20
but only 7%
11.1 15.1
14.1 May-Oct.
10 13.3
0
Se -0 6
M -06
Ju 6
A 06
D 05
Ju 06
Fe 06
M 06
A 06
Ja 0 5
O 06
6
0
-0
n-
l-
-
n-
b-
-
-
p-
-
ug
pr
ay
ov
ar
ct
ec
N
MySpace Facebook
Slide 13

14. Other Metrics Remain Strong: Time Spent
Average Monthly Minutes Spent by US Visitors
on Select Social Networking Sites (source: comScore)
September September % Change
2005 2006
Cyworld - 212.8 -
MySpace 72.5 206 +184%
Orkut 73 199.4 +173.1%
Facebook 135.1 175.3 +29.8%
Total Internet 1,593 1,790 +12.4%
Slide 14

15. 8% of all
Other Metrics Remain Strong: Pages Viewed pages
viewed
Total Pages Viewed by US Visitors
To Select Social Networking Sites (source: comScore)
September September % Change
2005 2006
MySpace 9.7 Billion 35 Billion +263%
Facebook 2.8 Billion 7.2 Billion +160%
Orkut 10 Million 198 Million +1,981%
Cyworld - 165 Million -
Total Internet 453 Billion 462 Billion +2%
Slide 15

16. Other Metrics Remain Strong:
Average Session Time
Average Session Time of US Visits
To Select Social Networking Sites (source: Hitwise)
September
2006
Gaia Online 47 minutes
Crushspot 31 minutes
MySpace 30 minutes
Bebo 26 minutes
Slide 16

17. Who’s
Advertising
Slide 17

18. Select Marketers on
Social Network Sites (not incl. ad network buys)
•Apple •NBC “Friday Night
Lights”
•Burger King
•Nintendo
•Chase Visa
•P&G
•Cingular
•Sony
•Disney
•Victoria’s Secret
•Columbia Pictures
•Wendy’s
•Fanta
Slide 18

19. Fanta Game on AIM Pages
Slide 19

20. Honda Element on MySpace
- “Wallpaper”
contest
gives users
utility
- “Gil the
crab” spot
premieres
on MySpace
Slide 20

21. “Friday Night Lights” on Bebo
- Support your
local team
- Enter a
scholarship
contest
- Post videos
and comments
Slide 21

22. This is Advertising? Yes!
Borat have
362,713 friends.
How many you
has?
Slide 22

23. Facebook’s New Ad Model
Slide 23

24. Social Network
Ad Spending
Estimates
Slide 24

25. 2006 Social Network Ad Spending: $445 MM
Online Social Network Ad Spending, 2006
$500
$450
$400 $95
$350
$300
Millions
$250
$200
$350
$150
$100
$50
$0
2006
Source: eMarketer
US Outside US
Slide 25

26. US Spending to Top $2B in 2010
MySpace: 60% of
total US social
net spending
Slide 26

27. International Ramps Up
Who’s in the Mix:
MySpace: Japan, UK, Ireland, France,
Australia, Germany, China (planned)
Bebo: UK, Australia/New Zealand (planned)
Hi5: Spanish, French, German, Italian
Plus: Cyworld (Korea), Mixi (Japan),
Skyblog (France), Piczo (Canada)
2007:
Year of the global social network?
Slide 27

28. Marketers Allocate 8% of Budget
Slide 28

29. What’s Next
in Social
Networking
Slide 29

30. The Vertical Opportunity
*Strong niches: Moms, Hispanics, career*
Slide 30

31. Social Commerce
Social net sites
account for 6% of
E-Commerce Activities That Interest
traffic to retail
Social Network Visitors, November 2006
sites, up from
(Source: American Marketing Association)
2.5% in 2005.
60%
51% 51%
(Hitwise)
47%
50%
40%
29%
30%
20%
10%
0%
Learn about Download Search for gift Buy products
sales or get coupons ideas
product
discounts
Slide 31

32. Search Adds Real Revenue –
and Better Results
Slide 32

33. Better Ad Measurement is Imperative
• It’s showtime, folks!
• “MySpace provides very amateur
measurements. MySpace grew so
quickly they were more concerned
about keeping the cables connected
than about providing ROI.”
– Anonymous agency executive
*DEMAND ADEQUATE MEASUREMENT*
Slide 33

34. Your Brand + Questionable Content =
Death By Social Networking?
1.Cede control?
2.Do scenario
planning
3.Go slowly –
buy “safe”
content areas
Slide 34

35. No One Has Figured Out UGC Yet
“The user-generated stuff -- we haven’t
really cracked the nut there in terms of
advertising on that. … We obviously are
getting a tremendous amount of traffic, but
that’s a huge area of opportunity for us.”
– Michael Barrett, Fox Interactive Media
Slide 35

36. Promote User Engagement
• 31,000 members
• 4 student-created
groups bashing the
campaign
• No “comments”
section – where’s
the interaction?
Slide 36

37. But Don’t Get Too Close for Comfort
• Marketing against
user profiles is
exciting, but risky
• Pick your tags
carefully
• Do you want to
compromise your
customers’ trust?
http://vids.myspace.com/index.cfm?fuseaction=vids.individual&videoid=1481334036
Slide 37

38. Thank you!
Debra Aho Williamson
dwilliamson@emarketer.com
Slide 38