Social Media & Marketing:

Online advertising and networking

Alex Wong
wah17@yahoo.com
What is social media?

Social media describes the online technologies and practices that people
use to share opinions, insights, experiences, and perspectives with each
other (Wikipedia 2007)

[Recap]
They share one or more characteristics

Connectedness

[Recap]
 [Recap]
Source: Future Exploration Network, 2005
Social Media’s elements

Interactivity

[Interconnected]
Web 2.0 World

Networks Word of Mouth

6 Dimensions of Interactivity
Interactivity is one of the important elements in advertising studies as it has been used as a
measurement of advertising effectiveness of the internet

 User control
 Responsiveness
 Real time interactions
 Connectedness
 Personalization/ customization
 Playfulness
Evolution of E-Business

Stage 1 2 3 4
Site Type Static Dynamic Commerce Personalized
Goal Presence Interactivity Revenue Customer Relationships
Complexity Low Medium High Very High
Impact Small Moderate Significant Transformational
Australian Population:
Media Consumption
Data : Roy Morgan April – March 2007
 Total Online Market by Qtr
350
$317M
Online Advertising by Category in $ / Qtr
300 $263M
$226M
250 137
$190M $195M
104
Millions

200 $167M
$145M 83
150 $119M $118M 68 76
$106M 61 92
$94M 49 78
100 $69M 40 42 76
34 62 58
32 46 52
50
22 34 40 34
32 81 89
23 60 62 67
38 39 42 50 54
25 30
0
Q3 FY 04 Q4 FY 04 Q1 FY 05 Q2 FY 05 Q3 FY 05 Q4 FY 05 Q1 FY 06 Q2 FY 06 Q3 FY 06 Q4 FY 06 Q1 FY 07 Q2 FY 07

Classifieds General Search & Directories

Growth by Category (Qtr) Growth by Category (Half)

Category Q2 FY 07 Q/Q Growth Y/Y Growth Category 1 H FY 07 H/H Growth Y/Y Growth
General 91,500,000 ? 17.3% ? 47.6% General 169,500,000 ? 27.0% ? 48.7%
Classifieds 89,000,000 ? 9.9% ? 48.3% Classifieds 170,000,000 ? 31.8% ? 49.1%
Search & Directories 136,500,000 ? 31.3% ? 100.7% Search & Directories 240,500,000 ? 51.7% ? 86.4%
Total 317,000,000 ? 20.5% ? 66.8% Total 580,000,000 ? 37.8% ? 62.5%

Source: NineMSN, 2007

Australian Population 14yrs+ media consumption in the last 4 weeks

Roy Morgan Single Source Report Apr06 – Mar07

 Changes in heavy media consumption
amongst the Australian population 14yrs+

Roy Morgan Single Source Report Apr06 – Mar07

What is social networking?
Social Networks is the ground for social capital

What is a network?
 Nodes (actors)
 Ties (relationships)

Nodes Relationship Nodes

(actors) (actors)

Relationships Nodes
(actors)

“A network is a set of relationships critical to your ability to get things done”

Network Properties

 Structure - Size, Density, Redundancy

 Composition
 Focus

“The shape of your network determines your access to information, resources,

opportunities, and support”.
A SOCIAL NETWORK is a map of the relationships between individuals, organizations
and other relevant NODES indicating the ways in which they are connected by financial,
social or professional LINKS.
 The Long Tail

Who needs megahits?

In the past
Ratings of Top TV shows
Where are they all going?
A powerlaw

100

90

80

70
Sales ($)

60

50

40

30

20

10

0
0 10 20 30 40 50 60 70 80 90 100

Products
Shown another way
100
Sales ($)

10

1
1 10 100

Products
The Missing Market
CONTROL
 The “momentum” effect
Traditional marketing:

Social marketing:
 Non-linear by nature

View
Visit Brand Download “Each Interaction
Custom (in brand’s is an Impression”
Community community)

Receive
Brand Pass
Along

View Download
(on user’s page)

Pass
Use on Along
Own Page

Size = Incidence (# of people doing activity)

Social Networks – best for making meaningful connections
In short……
Is all about the consumer
EXPERIENCE RELATIONSHIP

CONVENIENCE

PERSONALISATION