social mediaunderstanding its marketing potential

What is social media?

Social Media is people, including your customers,

having conversations online.

The conversations are powered by:

Networking • ConversationsInformation Sharing • Conversations

Sharing Video • Education

Networking

Conversations • Sharing Information

Information

Information

Information

Entertainment

Sharing Photos • Education

Information • Join Communities of Interest

Live Streaming Video • Education

Business Information Resource

Mobile Conversation • Information

This is not a fad

It is a fundamental shift in the way we communicate

Who uses social media? Your customers fit one of the following categories:

Influencers

Non-influencers

Creators

Critics

Collectors

Joiners

Spectators

Inactives

regularly publish blogs or articles, maintain a web page, upload videos or music.

react to other content online, post comments, post ratingsor reviews.

save URLs and tags, vote for sites. Collections appear on general information sites.

participate in or maintain profiles on social networking sites.

consume what the rest produce—blogs, online videos, podcasts, forums, and reviews.

non-participants in social media.

Harvard Business Press, Groundswell, Charlene Li and Josh Bernoff, © 2008

How big is the playing field?

Online social communities—currently 400 million users1

Consumer to consumer sellers—$8.541 billion in 20082

Ratings and review sites—44,000,000 page views per month3

Video sharing—YouTube currently has 100,000,000 videos3

Blogs—currently 200,000,0003

Micro-blogging— Twitter has 17,000,000 users3

1Inside Facebook, December Data on Facebook’s US Growth by Age and Gender: Beyond 100 Million, January 4, 2010, 2Wikipedia, 3Nielsen Report, Oct. 2007

A RADICAL CHANGE has occured

in the world of MARKETING

and ADVERTISING

Consumers are not

listening anymore.

Interruptive Marketing has

seen its day.

The old communication model was a MONOLOGUE:

SHOUTING

The new communication is a DIALOG:

Now marketers are having conversations with consumers

as well as consumers having conversations

with each other

Who are your customers?

Where do they go for information?

Meet them there.

PARTICIPATE.

Why is this meaningful?

The average person is exposed to 3,000

ad messages a day*

Only 14% of people trust advertisements*

*Nielsen Report, October 2007

Yet 78% of people trust the recommendations of friends or other consumers*

*Nielsen Report, October 2007

Why is this happening?

Three elements combined:

People

Technology

Economics

1.

2.

3.

People: They desire to connect

*Alexa.com, February 2010

1.

Facebook is ranked number two of the top 500 web sites worldwide*

YouTube, and MySpace are ranked fourth and sixth respectively on the list of top 500 sites in the U.S.*

1.67 billion people use the Internet 63% of all Americans have a high-speed Internet connection 84% of consumers rely on the web to get current news or information

*Razorfish, FEED: The Razorfish Digital Brand Experience Report, 2009, October 2009

2.Technology:Everyone is online

76% watch online videos

73% visit social media sites

62% listen to music online

More than 2 billion apps have been downloaded from Apple’s iTunes

*Razorfish, FEED: The Razorfish Digital Brand Experience Report, 2009, October 2009

2.Technology:Everyone is online

65% of consumers say they have had a digital experience that has either positively or negatively changed their opinion of a brand.*

*Razorfish, FEED: The Razorfish Digital Brand Experience Report, 2009, October 2009

3. Economics:Advertising is shifting from traditional media to online

Why should you care?

People are talking with each other about your brand and it may vary from your company’s idea

Retailers no longer have a corner on the market, consumers are buying from each other

The balance of power has shifted

What should you do?

Get involved.

Social media adoption by small businesses has doubled in the last 12 months.*

*Network Solutions, LLC

Small businesses use social media to attract new customers:

• 75% have a company page on a social networking site

• 61% use social media for identifying and attracting new customers

• 45% expect social media to be profitable in the next 12 months

*Network Solutions, LLC

Building an online presence is a key focus:

• Improvements to company web sites area top technology investment in the next two years

• The ability to showcase their productsand services online to attract new customers is second in the hierarchy of technology investments

*Network Solutions, LLC

Next steps?

Jump in and try it out!

Listen

Participate

Engage

How do you accomplish this?

Street Level Studio can help you: • Examine who your customers are and

how they get information

• Determine your goals

• Develop a unique social media strategy for your company

• Pair up with the right technologies

let’s talkStreet Level Studiois ready to drive your marketingcommunications to the next level.

T 847 432 5150 E letstalk@streetlevelstudio.com

social mediaunderstanding its marketing potential