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Social Media and Social Networking Demystified



        Presented to: Society of Business Communicators Queensland




                            Peter Laurie

                                                                                                                     1
                                                      Produced under the Attribution-Share Alike 2.5 Australia license.
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph
●   Social Media
●   Case Studies
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph
●   Social Media
●   Case Studies
Communication Model
                ●   Sender
                ●   Medium/Channel
                ●   Receiver
                ●   Message
                ●   Production
                ●   Transmission
                ●   Consumption
                ●   Storage
                                                                                        4
                         Produced under the Attribution-Share Alike 2.5 Australia license.
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph
●   Social Media
●   Case Studies
Richness vs Reach
                   ●   Richness
                       ●   What is the quality of
                           communication?
                   ●   Reach
Richness




                       ●   How many people can
                           you communicate
                           with?
                   ●   Cost Constraint
                       ●   Money, Time, etc.
           Reach                                                                             6
                              Produced under the Attribution-Share Alike 2.5 Australia license.
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph
●   Social Media
●   Case Studies
Digital Media is Different
●   Production
    ●   scale, democratisation, mass-customisation,
        marginal cost
●   Transmission
    ●   cost, speed, distance, location
●   Consumption
    ●   choice
●   Message
    ●   size, storage, indexed, interactive, incremental
                                                                                                         8
                                          Produced under the Attribution-Share Alike 2.5 Australia license.
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph (Reach)
●   Social Media
●   Case Studies
Reach or Social Network/Graph



        It's about who you know,
            and who they know,
            and who they know,
                    …



                                                                                         10
                            Produced under the Attribution-Share Alike 2.5 Australia license.
Direct Connections
                     ●   How many people
                         can you contact
                         directly?




                                                                                          11
                             Produced under the Attribution-Share Alike 2.5 Australia license.
Mediated Connections
                 ●   Indirect contact
                     ●   These contacts don't
                         know you.
                 ●   Word of mouth
                     ●   Improved reach but...
                         Chinese Whispers
                 ●   Control of message


                                                                                         12
                            Produced under the Attribution-Share Alike 2.5 Australia license.
Reach
        ●   Combining direct and
            mediated
        ●   15 new connections
            per contact
            ●   1 → 15
            ●   2 → 225
            ●   3 → 3,375
            ●   4 → 50,625
        ●   Six Degrees of
            Separation                                                          13
                   Produced under the Attribution-Share Alike 2.5 Australia license.
So, given that you can “reach” these people, what
    is the value of having this large a network.




                                                                                                         14
                    (this is a new slide)
                                            Produced under the Attribution-Share Alike 2.5 Australia license.
Network Value – Sarnoff's Law
                  ●   “Broadcast”
                  ●   Based on one-way
                      communication
                  ●   Prop. to N
                  ●   Linear growth
                      ●   10 → 10
                      ●   100 → 100
                      ●   1000 → 1000
                      ●   10000 → 10000
                                                                                          15
                             Produced under the Attribution-Share Alike 2.5 Australia license.
Network Value – Metcalfe's Law
                  ●   “Communication”
                  ●   Based on Links
                  ●   Prop. to N(N-1)/2
                  ●   Non-linear Growth
                      ●   10 → 45
                      ●   100 → 4950
                      ●   1000 → 49950
                      ●   10000 → 5 million
                  ●   Externalities                                                       16
                             Produced under the Attribution-Share Alike 2.5 Australia license.
Network Value – Reed's Law
                                    ●   “Collaboration”
                                    ●   Based on Groups
                                    ●
                                        Prop. to 2N-N-1
                                    ●   Exponential Growth
                                        ●   10 → 1013
                                        ●   100 → ~1030
                                        ●
                                            1000 → ~10301
                                    ●   Maximum effective
                                        group size?
                                                                                                            17

http://www.reed.com/gfn/docs/reedslaw.html     Produced under the Attribution-Share Alike 2.5 Australia license.
Network Value – Dunbar's Number
●   The number of relationships a person can
    naturally manage.
●   ≈ 148
●   So doesn't that cap the other values?
    ●   CRMs etc.




                                                                                                18
                                   Produced under the Attribution-Share Alike 2.5 Australia license.
Network Value – The Long Tail
                  ●   At 200 people, 1% of
                      the network is 2 - you
                      and your mate.
                  ●   At 20,000 people, 1%
                      of the network is 200
                      – you can build a
                      business around that.
                  ●   At 2,000,000: 20000
                      people.
                  ●   ...
                                                                                         19
                            Produced under the Attribution-Share Alike 2.5 Australia license.
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph
●   Social Media (Richness)
●   Case Studies
Social Media




     It's about messages and content
          that suit the social graph.




                                                                                          21
                             Produced under the Attribution-Share Alike 2.5 Australia license.
Message Robustness
               ●   Chinese Whispers
               ●   Splitting Message and
                   Content
                   ●   URL
                   ●   tinyurl.com, bit.ly,
               ●   Still need to be
                   related?
               ●   Campaigns and
                   Tracking
                                                                                        22
                           Produced under the Attribution-Share Alike 2.5 Australia license.
Message Enhancement
               ●   Authentic Messages
               ●   Much more valuable
                   when they come from
                   someone you know.
               ●   Trusted referral vs
                   spam.
               ●   Cluetrain Manifesto


                                                                                     23
                        Produced under the Attribution-Share Alike 2.5 Australia license.
Connecting with Someone
                ●   Mediated contact
                    conversion to direct
                    contact
                    ●   Network becomes
                        more dense
                    ●   They get closer
                    ●   Their contacts get
                        closer too



                                                                                        24
                           Produced under the Attribution-Share Alike 2.5 Australia license.
Summary
●   It's mostly the same game
    ●   The rules rhyme at least
●   Digital media is different
●   Social Graph
    ●   Formalised 'word of mouth'
●   Social Media
    ●   Digital messages and content
    ●   Tuned for the Social Graph

                                                                                                    25
                                       Produced under the Attribution-Share Alike 2.5 Australia license.
Outline
●   Communication Model
●   Richness vs Reach
●   Digital Media is Different
●   Social Network/Graph
●   Social Media
●   Case Studies
Case Study: Facebook
●   Social Graph
    ●   Reconnect to with people and to keep up to date
        with them.
●   Social Media
    ●   Status Updates/Microblogging: “Peter is...”
    ●   Photo Sharing
    ●   Events
●   Business Model: Advertising, Market Research
●   Other
                                                                                                      27
                                         Produced under the Attribution-Share Alike 2.5 Australia license.
Case Study: Twitter
●   Social Graph
    ●   Make new connections based on Tweets.
    ●   Following/Followers/Updates
●   Social Media
    ●   Microblogging.
    ●   Sharing media via URL Shortening.
●   Business Model: ?????
●   http://business.twitter.com/twitter101
●   The Twitter Book                                                                                28
                                       Produced under the Attribution-Share Alike 2.5 Australia license.
Junta
●   Junta, n; a small group of people who seek to
    gain power through revolution.
●   Effective, then Efficient, then Elegant
●   Prototypes and Proofs of Concepts
●   Bespoke Software
●   Engagement Models
●   How you can help me do what I love doing


                                                                                                  29
                                     Produced under the Attribution-Share Alike 2.5 Australia license.
Questions?

      email: peter@junta.com.au
     skype: pjlaurie
     twitter: @pjlaurie
facebook: pjlaurie
    mobile: +61 410 617 936
  linkedin: http://www.linkedin.com/in/pjlaurie
        Produced under the Creative Commons Attribution-Share Alike 2.5 Australia license.
                                                                                                                                    30
                                                                       Produced under the Attribution-Share Alike 2.5 Australia license.
This slide intentionally left blank.




                                                                                           31
                              Produced under the Attribution-Share Alike 2.5 Australia license.
Links
 Wikipedia is a good place to start in general.

 Richness vs Reach -      http://www.blowntobits.com/b2b/

 Sarnoff's Law -          http://en.wikipedia.org/wiki/Sarnoff%27s_law

 Metcalfe's Law -         http://en.wikipedia.org/wiki/Metcalfe%27s_law

 Reed's Law -            http://en.wikipedia.org/wiki/Reed%27s_law
                     and http://www.reed.com/gfn/docs/reedslaw.html

 Dunbar's Number -        http://en.wikipedia.org/wiki/Dunbar%27s_number

 Long Tail -              http://en.wikipedia.org/wiki/The_Long_Tail
                     and http://thelongtail.com/

 Cluetrain Manifesto -   http://www.cluetrain.com/
                     and http://www.cluetrain.com/book/95-theses.html




                                                                                                                             32
                                                                Produced under the Attribution-Share Alike 2.5 Australia license.

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Social Media and Social Networking Demystified

  • 1. Social Media and Social Networking Demystified Presented to: Society of Business Communicators Queensland Peter Laurie 1 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 2. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph ● Social Media ● Case Studies
  • 3. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph ● Social Media ● Case Studies
  • 4. Communication Model ● Sender ● Medium/Channel ● Receiver ● Message ● Production ● Transmission ● Consumption ● Storage 4 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 5. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph ● Social Media ● Case Studies
  • 6. Richness vs Reach ● Richness ● What is the quality of communication? ● Reach Richness ● How many people can you communicate with? ● Cost Constraint ● Money, Time, etc. Reach 6 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 7. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph ● Social Media ● Case Studies
  • 8. Digital Media is Different ● Production ● scale, democratisation, mass-customisation, marginal cost ● Transmission ● cost, speed, distance, location ● Consumption ● choice ● Message ● size, storage, indexed, interactive, incremental 8 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 9. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph (Reach) ● Social Media ● Case Studies
  • 10. Reach or Social Network/Graph It's about who you know, and who they know, and who they know, … 10 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 11. Direct Connections ● How many people can you contact directly? 11 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 12. Mediated Connections ● Indirect contact ● These contacts don't know you. ● Word of mouth ● Improved reach but... Chinese Whispers ● Control of message 12 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 13. Reach ● Combining direct and mediated ● 15 new connections per contact ● 1 → 15 ● 2 → 225 ● 3 → 3,375 ● 4 → 50,625 ● Six Degrees of Separation 13 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 14. So, given that you can “reach” these people, what is the value of having this large a network. 14 (this is a new slide) Produced under the Attribution-Share Alike 2.5 Australia license.
  • 15. Network Value – Sarnoff's Law ● “Broadcast” ● Based on one-way communication ● Prop. to N ● Linear growth ● 10 → 10 ● 100 → 100 ● 1000 → 1000 ● 10000 → 10000 15 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 16. Network Value – Metcalfe's Law ● “Communication” ● Based on Links ● Prop. to N(N-1)/2 ● Non-linear Growth ● 10 → 45 ● 100 → 4950 ● 1000 → 49950 ● 10000 → 5 million ● Externalities 16 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 17. Network Value – Reed's Law ● “Collaboration” ● Based on Groups ● Prop. to 2N-N-1 ● Exponential Growth ● 10 → 1013 ● 100 → ~1030 ● 1000 → ~10301 ● Maximum effective group size? 17 http://www.reed.com/gfn/docs/reedslaw.html Produced under the Attribution-Share Alike 2.5 Australia license.
  • 18. Network Value – Dunbar's Number ● The number of relationships a person can naturally manage. ● ≈ 148 ● So doesn't that cap the other values? ● CRMs etc. 18 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 19. Network Value – The Long Tail ● At 200 people, 1% of the network is 2 - you and your mate. ● At 20,000 people, 1% of the network is 200 – you can build a business around that. ● At 2,000,000: 20000 people. ● ... 19 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 20. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph ● Social Media (Richness) ● Case Studies
  • 21. Social Media It's about messages and content that suit the social graph. 21 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 22. Message Robustness ● Chinese Whispers ● Splitting Message and Content ● URL ● tinyurl.com, bit.ly, ● Still need to be related? ● Campaigns and Tracking 22 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 23. Message Enhancement ● Authentic Messages ● Much more valuable when they come from someone you know. ● Trusted referral vs spam. ● Cluetrain Manifesto 23 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 24. Connecting with Someone ● Mediated contact conversion to direct contact ● Network becomes more dense ● They get closer ● Their contacts get closer too 24 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 25. Summary ● It's mostly the same game ● The rules rhyme at least ● Digital media is different ● Social Graph ● Formalised 'word of mouth' ● Social Media ● Digital messages and content ● Tuned for the Social Graph 25 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 26. Outline ● Communication Model ● Richness vs Reach ● Digital Media is Different ● Social Network/Graph ● Social Media ● Case Studies
  • 27. Case Study: Facebook ● Social Graph ● Reconnect to with people and to keep up to date with them. ● Social Media ● Status Updates/Microblogging: “Peter is...” ● Photo Sharing ● Events ● Business Model: Advertising, Market Research ● Other 27 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 28. Case Study: Twitter ● Social Graph ● Make new connections based on Tweets. ● Following/Followers/Updates ● Social Media ● Microblogging. ● Sharing media via URL Shortening. ● Business Model: ????? ● http://business.twitter.com/twitter101 ● The Twitter Book 28 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 29. Junta ● Junta, n; a small group of people who seek to gain power through revolution. ● Effective, then Efficient, then Elegant ● Prototypes and Proofs of Concepts ● Bespoke Software ● Engagement Models ● How you can help me do what I love doing 29 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 30. Questions? email: peter@junta.com.au skype: pjlaurie twitter: @pjlaurie facebook: pjlaurie mobile: +61 410 617 936 linkedin: http://www.linkedin.com/in/pjlaurie Produced under the Creative Commons Attribution-Share Alike 2.5 Australia license. 30 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 31. This slide intentionally left blank. 31 Produced under the Attribution-Share Alike 2.5 Australia license.
  • 32. Links Wikipedia is a good place to start in general. Richness vs Reach - http://www.blowntobits.com/b2b/ Sarnoff's Law - http://en.wikipedia.org/wiki/Sarnoff%27s_law Metcalfe's Law - http://en.wikipedia.org/wiki/Metcalfe%27s_law Reed's Law - http://en.wikipedia.org/wiki/Reed%27s_law and http://www.reed.com/gfn/docs/reedslaw.html Dunbar's Number - http://en.wikipedia.org/wiki/Dunbar%27s_number Long Tail - http://en.wikipedia.org/wiki/The_Long_Tail and http://thelongtail.com/ Cluetrain Manifesto - http://www.cluetrain.com/ and http://www.cluetrain.com/book/95-theses.html 32 Produced under the Attribution-Share Alike 2.5 Australia license.