Internet business, online marketing, Adtelligence, social web, social data, social media, facebook, linkedin, mobile social, convergence, social media market, social commerce
Lecture St Gallen University - Future of online Advertising in the Social Web - How Facebook, Google and co change the internet landscape
1. The Future of Online Marketing in the Social Web
Michael Altendorf
12th, Dec 2011
Lecture / University St Gallen
2. Lecture - University St Gallen
Agenda
1. About Adtelligence
2. Product Portfolio
3. Market Overview
4. The Social Web
5. Social Commerce
6. Social Data are key
7. Privacy Issues
8. Showcases
9. Questions & Answers /Discussion
10. Further Readings
4. About Us
Founded in 2008 Awards 2010 & 2011
Located in Mannheim, Düsseldorf, London
Team of 25+ tech- and media experts from e.g.
SAP, Google, T-Systems and IBM
1 of 10 Facebook preferred developer consultants in
Connected to e.g.
Europe
Only certified Facebook Advertising provider (API)
Performance:
Manage terabytes of data
Deliver billions of impressions
Cloud based solution
Simple & efficient scalability
Highest security and redundancy
12. Online Marketing, eCommerce and Social
The markets can be considered „crowded“ but with hypergrowth
Source: http://www.slideshare.net/tkawaja/presentations
13. The Market of Tomorrow
The market is consolidating
2012 is the year of M&A
Single tools will become
platforms
Older technologies will
disappear
14. The online Marketing Value Chain
$5.00 CPM
$5.00
($0.50)
(CPM)
($2.00)
($0.25)
($0.35) ($1.80)
($0.10)
$0.00
Advertisers Agencies Ad Network Data Ad Ad Serving/ Publishers
Provider Exchange Rich Media
16. Even in the beginning
the web was about people
Communication Services started the digital
revolution in the 90ies
Mobile Data/internet flatrate will change life
of many people around the world
The personalized web comes close to the
first vision of the internet
Communication is everywhere, even your
new TV will have Skype
Source: Computer History Museum
17. The Social Web market is already No 1
»The Social Web may still
be in its early phases,
but it is likely to
transform the
fundamental businesses
of the Internet
far more rapidly than the »
incumbents anticipate.
(Accel Ventures – The rise of the social
web, 2009)
18. Facebook‘s revenues increase fast
"Its early days are
unproven fully, but
Facebook believes
that's the holy grail,"
observed analysis
Kawaja.
20. Plattform vs. One Trick Pony
Very hard to generate first network effects e.g. Apps with $1 each or typical digital
Difficult monetization as it is indirect goods
Source: Facebook HACK
23. The Social Web Market
Traditional Players from other markets enter and build together with new startups a new market
Ad Server Social
Vendors Commerce
DSP‟s &
The CRM
Social Marketing
SSP‟s
Automation
Web
Market
Web &
Business
Social
Intelligence
Analytics
Social
Targeting
28. What kind of data is available?
Consumer Info Data Example Mobile Internet TV
Interests - Intent Context
GPS Location Store or street location (Main & 1st street)
IP address 127.159.456.37
Concurrent media use Net & TV, Mobile & TV, etc
Content Mazda review
Daypart Lunch Breakfast or weekend shopping
Zip code 11932
Calls placed (to who, frequency) Calls to order lunch from deli daily
Family plans Family of five, etc
Usage patterns (when & where) Uses phone in the car, Internet on the road
Type of handset or upgrade Bought an iPhone early, Brand buyer, not price
# of e-mails/texts sent/received Sends ~xx texts/day indicates age/engagement
Coupon activity Uses coupons for consumer package goods
Location patterns Goes to shopping, mall, or restaurant
Apps/downloads Downloaded “mint‟ app
Purchases Bought TV from Best Buy.com
Shopping cart Considered TV from Amazon.com
Content viewing history Frequent News viewer, Recent Auto Shopper
Identity
Ads seen/clicked on Clicked on mortgage ad
YP.com searches Sought: “”Plumber in Portland:
Other searches Searched: for “TV reviews”, Used Cars, etc
# of unique people called Frequent callers are influencers
Device owned Android owner
Psychographic segment “Urban Dweller”
Registration (address, etc.) Name, address, etc
Source: Greg Stuart greg@gregstuart.com /Slideshare
Confidential 28 28
29. Amazon: Social Shopping with Facebook Connect
SOCIAL SHOPPING
After Connecting with Facebook, Amazon gives you
recommendations based on your and your friends public
information.
For Amazon, knowing which of their Customers knowing each
other would be an extremely powerfull marketing tool.
For the Users it can be very helpful to know each others
interests, e.g. for buying birthday presents or borrow DVDs
which are already bought by friends.
30. Product
How it works
1. Data is captured on SNS
2. Targeting in real time
3. Matching with the right ad
4. Marketing Intelligence to prove the result and recommend
audience optimization
31. Adtelligence
Can use all data!
Shop
Social baskets
networks
CRM Data
data exchanges
Adtelligence is 100% compliant with German privacy regulations
33. “If I had to guess, social commerce is the next
area to really blow up”
Mark Zuckerberg (Facebook))
“The potential for social commerce today is
“infinite”… Every eCommerce site will have to
adapt”
Bing Gordon (Kleiner Perkins)
34. Vision for 2012
Reach 2.5 billion people worldwide with one platform
800 Mio users
120 Bn page views per month
150 Mio users
130 Mio users
400 Mio users
65 Mio users
Agencies
600 Mio users
180 Mio users
120 Mio users
35. ADTELLIGENCE build for Social Commerce
Data is the new business model
Advertise
Personalize
Analyze
Automated
Optimization
on KPI„s
Social Audience Reporting Business Enrich
Targeting Analytics Optimization Intelligence CRM Data
36. Leveraging the Social Graph
Shopping is a social Experience
Social Single
Graph Sign-On
39. Privacy – What is needed for the personalized web?
1. Personal Data Bullet 1
2. Demographics: Age, Job, Joblevel etc.
3. Interests like Music, Movies, Books, Sports or even Quotations
4. Geo Data like City, Holiday Destination
Bullet 2
5. Friends & Social Graph
6. Acitivities in Groups
7. Wall and Comments Bullet 3
8. Fotos
9. Specials e.g. Blogs or Videopodcasts after Content OK ( Gmail)
1. Further use of optional User Data only under the terms of data Protection
2. Beside the Data Protection you should respect the State of the User
40. Single Sign-on and Facebook Connect
New opportunities for online advertising vs. a new challenge
for data protection
Services like Facebook Connect, the new graph API, and OpenSocial
allow the personalization of offers from outside communities.
Two principle distinctions:
With user opt-in
With opt-in, the user is asked by an eCommerce shop, for example, whether he (and his
Facebook data) want to log in. If the user agrees, his data is read from Facebook (via the
Connect interface).
Without user opt-in
Without opt-in, the user‟s personalized data may not be shared. It is possible to use
pseudonymous data temporarily, for example gender and age can be used to tailor the
online shop to men or women.
Example:
The new Facebook Graph API allows the processing of gender or age (no name or email). This only works if the user is logged into Facebook. Sites
use user data for statical or promotional purposes, but here the respect of the privacy policy is especially important.
41. Conclusion: Transparency is key
New opportunities for online advertising in social networks offer many benefits, both for platform operators and for users. Amazon and
Apple, for example, make much use of them. This is precisely why open communication is of particular importance when dealing with user
data. Transparency leads to lasting acceptance.
Facebook and Google are dealing primarily with negative headlines in the media because they don‟t tell their users what they are doing.
Three scenarios are described:
42. Further Information
Facebook Privacy Policy
http://de-de.facebook.com/policy.php
Your Privacy Settings on Facebook
http://de-de.facebook.com/privacy/explanation.php
Facebook Privacy - A new Approach
http://www.facebook.com/note.php?note_id=10150441583870301&
id=69178204322#!/note.php?note_id=10150441583870301&id=6917
8204322
General Information for Privacy:
German Privacy Officiers – check website in your state!
BVDW (German association for digital economy) – business side
European Directive on online data protection
Safe Harbour Directive
47. ADTELLIGENCE - For a higher ROI
Conversions
New Customers
328%
191% 221%
146%
A/B Testing 114%
Time:~12 weeks
Live data from one of our German eCommerce clients
48. Live Examples
CONVERGENCE+ mobile & social
www.rnloewen.de
CONVERT+ Social Personalization
www.europapark.de
Facebook Social Search
www.quirk.li
Social Analytics
Register on www.adtelligence.de for Live demo
50. Opportunities in many areas!
The new market: „Social Web“
The Market Segment The Product The Business Model
Social Graph
Filtered web through social graph Cost per data, free and indirect via ads
Interest Graph
Personalized web Advertising, Affiliate
Location Data
Couponing Affiliate
Augmented Reality Affiliate
Yellow Pages 2.0 Ads, couponing, affiliate
Real Time
Bidding Platforms Transaction based / middle men
Ad Exchanges Transaction based / middle men
Data in General Data Crawlers / Cookie Dropping / Behavioral Sell to Data Exchange, Technology per License
Ads
Data Exchanges Marketplace, Transaction based
Semantic and real time user profile Targeting Technology
51. What to look for in the future
Data Driven Advertising
Real Time
Personalized Content
Social Commerce
Location Awareness
Mobile everywhere
54. Further Readings
Die Zukunft des online Marketings im Social Web
http://www.slideshare.net/michaelaltendorf/adtelligence-social-targeting-die- The Social Web
zukunftderonlinewerbungimsocialwebjanuar2011 http://www.accel.com/download.php?file_id=80
Datenschutz im Social Web
http://www.slideshare.net/Adtelligence/adtelligence-social- The Future of the Social Web: In Five Eras
mediaadvertisingdatenschutzimsocialweb14062010-4505594 http://www.web-strategist.com/blog/2009/04/27/future-of-the-social-web/
The New Information Age Social commerce - the trends to watch
http://techcrunch.com/2011/04/10/the-new-information-age/ http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=20656&Title=Social_c
mmerce_-_the_trends_to_watch
Ad Networks Keynote
http://www.slideshare.net/tkawaja/terence-kawajas-iab-networks-and-exchanges-
keynote Social Commerce: Personalized and Collaborative Shopping Experiences
http://www.emarketer.com/Report.aspx?code=emarketer_2000744
The Personalized Web
http://www.youtube.com/watch?v=35fNDzUe0vE
Scienceification of Media
www.slideshare.net/tkawaja/the-scienceification-of-media
The Social Media Explosion
http://www.gpbullhound.com/researchpdf/GPBullhound%20Report%20-
%20The%20Social%20Media%20Explosion%20-%20August%202010.pdf