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Homophily
Meets Social
Commerce
Social Brand Genome
trueAnthem
Spring 10
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Executive Summary
Online virality is predicated on Homophily, a sociological principle
from the 1950‟s that explains our inexorable tendency to link up
with one another in ways that confirm our core beliefs. Those who
liked Ike, in other words, liked each other.
People who travel in social circles tend to behave similarly. A social circle, also called a
“social graph” can be as innocuous as members of a website or just as simple as
lifetime friends. As examples: Long time friends, Brad and David have the same silver
Land Rover, whereas Corey and Emaleigh, clicked on the same Gilt Group email.
Homophily is especially intriguing where social graphs and ecommerce meet. Can we
someday statistically predict the likelihood that friends will make the same purchase?
Today, we all have friends who are active on online social networks. Eric, for example,
updates his Facebook status three times daily, each time notifying his 450 friends of his
current mood, a thought he had, or something as simple as what he‟s eating for lunch.
We also have friends who share more targeted opinions within specific topics. Brian is a
recognized cycling expert, he passes advice to novices constantly though his twitter
feed. Both of these people are influencers. Their immediate social circle is often
persuaded by their opinions and actions.
trueAnthem finds individuals like Eric and Brian, identifies the links to their 200+ friends,
and tracks individual purchase behavior on ecommerce sites.
trueAnthem‟s social commerce occurs in four key steps:
1. Establish links between online individuals and create a social map.
2. Determine who the dominant influencers are.
3. Link individuals to shopping and commerce behavior.
4. Leverage influencers to market products to their friends.
Homophily
This is the heart of trueAnthem…
For more information please contact Brian@trueAnthem or Chris@trueAnthem
The purpose of this
document is to explain
the technology
behind this predictive
mapping, known as
the Social Brand
Genome
SBG 0.0
For more information please contact Brian@trueAnthem or Chris@trueAnthem
The Social Player is the Lynchpin For consumers, trueAnthem is simply a way to get free music.
Today there is rampant music piracy; but through trueAnthem, the bands involved with
our brand programs for companies like adidas, Skullcandy, Rocawear or Nestle, give
their music away for free, and are paid for it. This is an alternative business model to
iTunes, where emerging bands get lost in the overwhelming noise. Moreover,
trueAnthem monetizes a world where 40 billion tracks were downloaded for free in
2008, and only 4 billion tracks were actually paid for.
trueAnthem works on the simple principle of Fair Value Exchange. In return for valuable,
free content, consumers listen to an audio “trueAd” accompanying each free track. A
trueAd is an 8-second endorsement, done by the artist, creatively mentioning the
brand. Additionally artists film 45-second trueVideos that authentically integrate the
brand into the artist‟s lives. Consumer “fans” of a band get a glimpse into the personal
lives of the musicians they adore, with a message sponsored by the brand.
We call this “socially responsible downloading.” Over 10 million people have bought-in
to the trueAnthem concept, making the business viable as it scales long term.
An important leverage point for trueAnthem is that the bands already have online fans.
As a demonstration, Shaolin Temple of Boom (SToB), an Industrial Rock band, has
124,931 “friends” on MySpace and 12,000 on Facebook. This fan base creates an instant
audience for any advertiser that supports this band.
The free music and video assets are ingrained in a dedicated “Social Media Player”
(SMP) for each band. (Exhibit 1)
Exhibit 1
SBG 1.0
For more information please contact Brian@trueAnthem or Chris@trueAnthem
This is a Flash-based media player, compatible across over thirty-eight social networking
sites including: MySpace, Facebook, Friendster, Orkut, Bebo and dozens of lesser sites. It
is also embeddable for bloggers and savvy HTML programmers. (Exhibit 2)
Exhibit 2
When we design a program for a client, the Social Media Player begins its life as a
“seed” on trueAnthem.com, the client‟s sites and social media pages and most
importantly the band‟s social media pages. Shaolin Temple of Boom‟s (SToB‟s) social
player (Exhibit 3) begins its life at his social pages.
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Exhibit 3
Within hours, SToB‟s 124,931 friends are alerted that there is something fresh on the
band‟s page. More often than not, the music released with trueAnthem is new material,
and free for the taking, to stream or download.
Of the 124,931 SToB friends, a certain portion will “grab” the social player and install it on
their own MySpace page. In the SToB example; 4,541 people grabbed the social
player. These 4,541 fans placed the Social Player on their own pages, for their own
friends to see. This action is a visible badge of fandom, a digital expression similar to
bumper stickers or concert t-shirts.
We call this sharing order of fan‟s friends, and their friends‟-of-friends (FOAF). In one
promotional campaign, the depth of FOAF was thirty levels of people deep. Ultimately,
SToB had 45,287 grab installations of the Social Player.
The Social Player itself is a simple UI (Exhibit 4), with the following options: listen to or
download audio files, view or download videos, click banners, stream social media
content, import RSS feeds, shop, etc.
The orange “Share” button enhances the person-to-person virality and is one of the
keys to the rapid viral spread of the SMP.
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Exhibit 4
The Social Player also has the capability of administering a questionnaire (lower portion
of Exhibit 4), which brands can customize for their strategic targeting purposes. This self-
selecting media has proven to be a competitive advantage for advertisers, especially
as they attain higher levels of precision in their message delivery.
Beneath this simple UI is tremendous consumer reporting intelligence… the “prize”
found within the beautifully wrapped present.
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Flash Technology Facilitates Tracking As the Social Player is loaded within a web browser, an applet gets deposited on the
end-user‟s computer. This applet installation happens whenever someone encounters
the trueAnthem network: trueanthem.com, Social Players on any web domain, social
network, a client‟s websites, etc. There is no manual download process required.
Similar to a browser “cookie”, this applet, called Social Brand Genome Applet or
“SBGApplet”, provides a conduit for information to pass between the client‟s machine
and the server. It resides in the User Profile settings on the end user‟s machine. However,
unlike a website-deposited Javascript cookie, this SBGApplet is not deleted with the
same frequency as browser cookies. Moreover, it doesn‟t suffer from the same
unfortunate reputation as a Javascript cookie. Adobe‟s Flash reputation is much
stronger within the technical community.
At the instant of install, the SBGApplet pings trueAnthem‟s database, and determines
whether the computer is new to trueAnthem or a previously enabled machine. In the
former event, a new database record is created, where each computer is assigned a
sequential Global Unique Identifier, called a “MachineID.”
The following fact will be repeated throughout this document- All end-user Social Player
interactions are recorded by the SBGApplet. Every action is captured: song listens, file
downloads, video views, grabs, shares, banner displays, completed questionnaires, etc.
Every time the Social Player is loaded with new content, the SBGApplet checks-in with
the server and transmits the new data. The information is passed to the database (see
Section 3.0 below) and added to the MachineID associated with the action.
For an increasing number of trueAnthem clients, trueAnthem‟s Flash tracking tags reside
on key website pages, such as product information and ecommerce pages (Exhibit 5).
These 1-pixel-by-1-pixel trueAnthem Flash tracking tags recognize when a trueAnthem
registered machine is visiting the webpage. Webpage information and MachineID are
passed back to the trueAnthem database, and added to the record associated with
that MachineID. The benefit of this is intelligence for banner clicks, product shopping,
and ecommerce transactions, is that the information is gathered at the individual level.
Exhibit 5
SBG 2.0
For more information please contact Brian@trueAnthem or Chris@trueAnthem
trueAnthem Database All of the end-user actions generated through the Social Player are deposited into a
core transactional database. The database environment utilizes SQL Server 2005, using
tSQL language. This enables data to be written to the physical database and extracted
from the database for reporting and exporting purposes.
WebOrb de-serializes, or translates, Flash ActionScript client-side code to .Net server-
side code. This allows the Social Player to speak to the database; essentially a facilitator
between Adobe and Microsoft. As an added precaution, a log-server maintains hourly
data dumps for failsafe purposes.
All actions associated with a specific MachineID are added to the individual record in
real time. Theoretically, the maximum of fields is unlimited, however, a typical record
has about 120 fields of information.
Some of the Social Player‟s recorded actions include: band name, songs listened to,
downloads, clicks, video views, banners displayed, email registration, opt-in data, etc.
(Exhibit 6)
Exhibit 6
The breadth of the individual information gathered creates tremendous cross-
tabulation capabilities. Promotional activity is then combined with shopping and
commerce.
SBG 3.0
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Below (Exhibit 7) illustrates trueAnthem‟s analytic process at a high level. The end-user‟s
experience of getting free music and video persuades them pass the player along
virally, while trueAnthem collects analytical data on them.
Exhibit 7
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Information is added to the database at three levels:
1. Individual Information:
a. The Social Player interaction (outlined above)
b. Geographic Data: Such as IP address, State, and ZIP code (when
available from a social network‟s API)
c. Marketing Information: Answers to marketing questions (Section 1.0), opt-
in information, email address, coupon download and redemption, etc.
2. Commerce Data from client websites (Section 2.5).
a. This data begins when banners are presented and clicked/not clicked.
b. Landing pages, product pages, cart pages, abandonments, etc.
c. For the first time, we can determine “which half of my advertising works.”
(Exhibit 8)
3. The person-to-person data
a. Limited to two very important fields, MachineID and ParentMachineID.
(further explained in Section 4.0).
Exhibit 8
trueAnthem
Viral Media Player
tA Consumer Analytics
Website
tA Consumer Analytics
CRM
Visitor 1234
Consumer
The main trueAnthem transactional database writes nightly to a SQL reporting server
based on criteria set forth in scripted queries. Within these queries are algorithms based
on graph theory.
In the graph theory lexicon, each record is a “node” where it can be plotted in relation
to other nodes.
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Graph Theory Put to Work When a Social Player gets grabbed from a webpage, the MachineID associated with
that initial Social Player is written to the database as a ParentID (Exhibit 9)
Exhibit 9
This is the single most important element in tracking web virality. trueAnthem has filed for
provisional patent protection under Patent Application #61142881: “A method of
reporting data to a party, a method of assembling the data, a method of reformulating
the assembled data, and a method of presenting the reformulated data to the party.”
A relationship is cemented in the database that permanently links a parent to a child.
With the exception of a band‟s first Social Player that originates on trueAnthem.com, all
consumer end user Social Players have a parent.
Through this unique process, we are able to follow content as it travels throughout its
viral life, and monitor it at each stop along the way. A “tree” is constructed within the
database where “parents” beget “children” who beget “grandchildren” etc. Each
node maintains an association with other family nodes. Some nodes are dead-ends,
where individuals grab from parents yet have no children of their own, while others
prolifically spread across multiple generations.
For each node, all down-stream activity below the individual on the tree is rolled-up
and tallied for the individual in a “Roll Up.” Though an individual‟s Social Player may
only be directly responsible for 68 song listens, his children, grandchildren, etc. are
responsible for 94 listens. Therefore, this individual is indirectly responsible for a total of
162 listens. (Exhibit 10)
SBG 4.0
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Exhibit 10
One element in which advertisers find deep value is the Banner Click RollUp. This is
important because advertisers gain visibility into which individuals influence commerce
behavior (Exhibit 11).
Exhibit 11
To build the most meaningful tree, we prune all Social Player posts which have never
loaded, hence our tree load/post ratio will always be greater than 1.
For all nodes that a PersonId can be associated with, we group these nodes by the
PersonId and the statistics are rolled up. This enables individuals to install more than one
Social Player on their pages. Naturally, an individual can be a fan of more than one
band.
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Exhibit 12 shows the beginning of a tree; a visualization of the data structure. Every
node below is parentally related to the node above it.
Exhibit 12
This visualization is a hint of the Social Brand Genome, which is outlined in more detail in
Section 5.0.
For more information please contact Brian@trueAnthem or Chris@trueAnthem
Social Brand Genome Visualizes Everything Based on the strong underpinnings of the data structure, we have the ability to sort the
data in multitude of ways. Advertising partners have the ability to hone-in on what they
deem strategically important. In the example below, Wonka valued pure virality and
recognized those individuals who spread the campaign message most. In this case,
installments or “grabs” was the measured variable.
Exhibit 13 charts the 13 most influential individuals out of a program where 2.4 million
uniques engaged with the brand‟s message.
Exhibit 13
If a brand values listens, downloads, etc. this is all possible to track. Increasingly, brands
most strongly value their own criteria. As shown in Exhibit 4 in Section 1, “Do you wear
contacts” is a simple criteria to determine influence, and track appropriately.
SBG 5.0
For more information please contact Brian@trueAnthem or Chris@trueAnthem
In Exhibit 14, we see virality as broken out by the client‟s age groupings; 13-15; 16-17
and 18-20. The individuals listed are actual, and are the actual quantity of Social Player
(Widget) Installs.
Exhibit 14
For more information please contact Brian@trueAnthem or Chris@trueAnthem
How Do Brands Take Action? Identifying individual influencers is an academic exercise unless there is an actionable
plan for the brand.
sCRM is trueAnthem‟s answer.
sCRM enables a brand to nurture a relationship over time. Of course not all consumers
are “in-market” at any given point in time. This principle becomes a fallacy within
current direct marketing, which is much more “snapshot” oriented.
trueAnthem‟s content, which is constantly refreshed, allows brands to keep their
message in front of the consumer. Thus, enabling the brand‟s message to turn into
action throughout the consumer‟s consideration and shopping phase. When the
consumer is truly in-market, there is a logical action to take.
trueAnthem recommends cultivating heavy influencers with special attention. In the
Wonka examples above, trueAnthem identified 450 individuals who influenced over
5,000 interactions each. This group of trueInfluencers can then be enrolled in further on
and offline influencer programs, empanelled or simply recognized by the brand to
increase their loyalty and effectiveness.
Generally our programs focus on what we call „Performance Branding‟, a combination
of awareness and image generation and direct call to action, such as click-throughs
and engagements.
Currently, trueAnthem and several key clients are building profiling technology to
determine the relationship between content consumption, viral influence, shopping
behavior and actual ecommerce behavior.
The field of social commerce through consumer behavior profiling, is emerging as a
new phase of internet marketing. Previously, the companies that changed the way
internet marketing targeted consumers were companies such as Claritas that
enhanced targeting through clusters; Omniture pioneered web profiling; and Google
increased contextual relevance. The field of social commerce will have similar
dominant winners.
Fundamental consumer behavior has been recognized. The information is readily
available. The winner will be the first to market, with the best tools for analysis.
SBG 6.0