1
The Big Buzz : Social Networking sites
2
CREATION OF A NEW SERVICE
3
What is SNS?
Social networking sites: A website that encourages the building of online social networks of members with similar interests, or merely as a communication network using technologies like chat, blogs, discussions and mailing tools etc High degree of variability in the features
Social networking : “Practice of expanding the number of one‟s business and or social contacts by backing connections through individuals”.
4
Copyright 2008 PresentationFx.com | Redistribution Prohibited | Image © 2008 clix/sxc.hu | This text section may be deleted for presentation.
Evolution
Classmates Six degrees 1995 1997 2003 2004 2004 2005 2006
5
TODAY:
Myspace
More than 200 networking sites
Facebook
Orkut Yahoo 360 Twitter
Why join SNS?
Socializing with friends etc
Sharing information Love / Fun Finding Jobs Identity
Consumer
Branding Other wrong reasons
6
SEGMENTATION
7
SEGMENTATION
BASED ON VARIOUS SECTORS
USABILITY
Business
General
Medical
College / high school students
Government
Blogging
Educational
Sharing photos
Animal
Business
Dating
E- shopping
8
Business sectors
• Beneficial for entrepreneurs and small
businesses looking to expand their contact bases. • “Customer relationship management tool” • Advertising
Brand networking
9
Medical sector
• Manage institutional knowledge, disseminate peer to peer knowledge and to highlight individual physicians and institutions. • Advantage:that all the members are screened against the state licensing board list of practitioners.
10
Government sector
• get the opinion of the public • keep the public updated on their activity • The Centers for Disease Control demonstrated the importance of vaccinations on the popular children's site Whyville. • The National Oceanic Atmospheric Administration has a virtual island on Second Life where people can explore underground caves or explore the effects of global warming. • Similarly, NASA has taken advantage of a few social networking tools, including Twitter and Flickr-U.S. Human Space Flight Plans Committee
11
Educational sector
“The National School Boards Association reports that almost 60 percent of students who use social networking talk about education topics online and, surprisingly, more than 50 percent talk specifically about schoolwork.” Helps in : Learning Content sharing Building relationships Educator professional development.
-
12
Dating sector
• This allows other users to search or be searched by some sort of criteria • At the same time people can maintain a degree of anonymity similar to most online dating services.
MySpace
Facebook
13
Animal sector
• There are even social networking sites for dogs and cats • These allow pet owners to create profiles for their animals.
14
E-shopping and service sector
• With the rapid growth of web, more and more networking sites are opened with innovative concepts. • A site that allows you to connect with people who have purchased the same products you own or are considering buying.
Acobay
15
USABILITY
GENERAL COLLEGE AND HIGH SCHOOL BLOGGING SHARING PHOTOS
BUSINESS
16
A GLOBAL FEATURE
17
Global Coverage
18
19
Worldwide Growth- June‟07 vs June‟08
20
THE INDIAN SCENARIO
21
• CEO „Bigadda‟, Siddhartha Roy : “We are early on the curve and India has a lot to 22 catch up”.
Social Networking in India
• India is second largest country in the world after China in population, so every web based service is seeing a big market in India.
Will Hodgman, comScore executive vice president: “Social networking continued to grow strongly in India this past year, with several of the top global brands carving out a more prominent position. While there is certainly room for several players in the social networking space in India, the sites that have the right blend of having both a strong brand and cultural relevance will be best positioned for future growth.”
23
Top Ten Social Networking Sites in India
24
Indian Scenario
least one third of all Internet users in India now use a social network. • Matrimonial websites — like BharatMatrimony , JeevanSaathi and Shaadi— are the Indian equivalent of international dating sites. ( 2007 )
Networking Site Orkut Facebook No. of Users ( in Millions) 7.1 1.7 • At
Bharat Student
Fropper BigAdda
1.6
1 1.4
Minglebox
0.6
25
Total
10
WHAT SOCIAL NETWORKING MEANS FOR BUSINESS
26
Overview
• Popularity explosion – hype increases • Eg: Facebook : 200 Mn customers
• But the big question today is not what social networking is, but rather what it means for businesses.
27
What does SNS mean for business today?
• Not only communicate but also find like minded individuals • Power of the masses • Help shift power from the company to the consumer as the masses are able to channel and exert their influence. • Discover and maintain persistent connections • Help identify most influential consumers, drive participation in product development, and improve brand sentiment. • Should be viewed as a channel that organizations need to monitor and engage in. • Though traditional advertising maintains its importance 28
SOCIAL NETWORKING SITES: MARKETING THEMSELVES
29
Marketing
• How do sites market themselves– – – – – – – – – – – Internet-Viral marketing Through SMS‟s Through TV ex. MTV, Channel [V] Sponsoring Events ex. Addidas awards. Promotional ads through Pop-ups. Advertising Link exchanges Safe lists Traffic exchanges Digital signatures Use search engines-put your articles on search engines.
30
• Viral marketing-Viral marketing and viral advertising
refer to marketing techniques that use pre-existing social networks to produce exponential increases in brand awareness, through self-replicating viral processes, analogous to the spread of a computer virus. It can often be word-of-mouth delivered and enhanced online. User-managed database
Undercover A viral message presented as a cool or unusual page, activity, or piece of news, without obvious incitements to link or pass along. In Undercover Marketing, it is not immediately apparent that anything is being marketed. Users create and manage their own lists of contacts using a database provided by an online service provider. By inviting other members to participate in their community, users create a viral, selfpropagating chain of contacts that naturally grows and encourages others to sign up as well.
Pass-along A message which encourages the user to send the message to others. The crudest form of this is chain letters where a message at the bottom of the e-mail prompts the reader to forward the message.
Incentivised viral A reward is offered for either passing a message along or providing someone else's address. This can dramatically increase referrals. However, this is most effective when the offer requires another person to take action.
31
• Advertising - The Internet advertising revenue was
worth more that television, radio and paper advertising alone. That being said you need to ensure that your ad is being shown on a site that will get to your target market.
32
• Links exchanges - This is where a link to your site
appears on many other sites. You can pay for this, which in turn means that you don't have to put others links on your site.
33
• Safe lists - This is e-mail advertising. You send messages to
members of the safe list. In turn you agree to receive their messages. You can usually send your message to 1000's at a time. Depending on what you are promoting will determine how successful you are. They are not necessarily effective for getting quality visitors to your site, but you will get hits to your site.
34
• Traffic Exchanges - A traffic exchange is exactly
as it describes its self. You visit some ones site and they visit yours.
35
• Digital Signature- When e-mailing anyone use put a clickable link as part of your signature. Apply this to all your e-mails whether personal or professional.
36
• Use search engines- Write articles about what your site is promoting and include your web address.
37
A New Avenue to sell themselves
• Access the wealth of information and social activity anywhere and at any time using mobile phones. • Higher campaign response rates • Increasing customer brand familiarity
38
MXIT
• Is a popular South African mobile instant messaging platform with a recorded 5.4-million active users, who are mostly children. This number increases by an astounding 12,000 new users a day. Subscribers log on more than six million times a day and send more than 100-million text messages a month. Offers a free chat application, enabling users to have text chats with each other via their mobile phones. This undercuts the costs of SMS services. The only costs are data charges from the cellular networks, equating to less than two cents a message.
39
• •
•
•
Hurdles
• Mobile-compatible version of its traditional website. • „Dot.mobi„ Domain • To stick with one URL instead of having two separate URLs.
40
SNS 3 Top Mobile Marketers
41
E-MARKETING
42
E-marketing
• The terms eMarketing, Internet marketing and online marketing, are frequently interchanged and used. • eMarketing is the process of marketing a brand using the Internet. • It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.
43
MARKETING THROUGH SOCIAL NETWORKING SITES
44
Case studies
Zynga is a video game developer. They develop browserbased casual video games which work in conjunction with social networking websites such as Facebook and MySpace March‟09- 46 million monthly active users and 71 million registered users. Today-past 100 million monthly active users Company‟s new game-Farmville is the largest application on Facebook till date. This application has more than 72 million active users.
45
Case studies
Dell currently has a global team of around 40 employees whose roles include engaging with customers and others interested in Dell via Twitter. Dell has produced $1 million in revenue over the past year and a half through sale alerts via Twitter Deal-hunters are especially attracted to Dell‟s Twitter presence. Dell Outlet sells refurbished Dell products at great prices. Dell Outlet uses Twitter as a way to message out coupons, clearance events and new arrival information to those looking for Dell technology at a discounted price
.
A July 2009 Starbucks promotion, for example, distributed coupons for a free pastry via Facebook and other social outlets. The chain was soon one of the top trending topics on Twitter and the top brand on Facebook, with more than 3.7 million fans.
46
Future prospects
47
• The eMarketer study points out that the company has increased the estimate of US ad spending on social networking sites to $900 million in 2007 and that ad spending is on track to grow 180% between 2007 and 2011 to $2.5 billion
48
SNS APPLICATION FOR MARKETING CYCLE
49
Use of SNS in marketing cycle
BRAND AWARENESS
• Identifying key influencers in each product area to increase brand awareness. • Keeping track of competitors by monitoring their public online conservations.
BETTER LEVERAGE ONLINE CHANNELS
• Grass-roots online marketing initiatives. • Egalitarian and informal : hence better to interact with customers • Seamlessly integrating social networking channels into existing marketing methodologies. • Launching online marketing programs that engage social customers in their preferred environment.
MEASURE RESULTS
• Analyzing message effectiveness by measuring impressions, replies, and other key metrics. • Using powerful analysis capabilities to identify the biggest online champions, influencers and complainers. Eg: The Social Networking Accelerator for Microsoft Dynamics CRM
50
Contd:
• Find, connect and understand customers. • Increasingly, sales organizations are realizing the benefits of incorporating social networking into their traditional sales processes.
SALES
FEEDBACK
• Proactively monitoring social networks for key words, complaints, and issues relating to a brand. • Tracking the number of influencers and followers of a given topic or issue related • Gather intelligence on customers and expected service
51
CUSTOMER RELATIONSHIP MANAGEMENT
52
Intersection of social networking & CRM
• Customers: heart of any business • SNS represents an opportunity to build mutually rewarding and candid relationships with customers. • To realize tangible business benefits plan, manage, and measure social networking efforts. • “CRM is all about connecting and engaging in innovative ways with customers,” (McKay 2009).
When social networks and CRM merge: Helps organizations get closer to a true 360-degree view of the customer so they can further optimize their marketing, sales, and customer service efforts by bridging in the customers expectations and requirements.
53
CRM
• In SNS, customers desire e-satisfaction • Social networking sites rely heavily on “customer or user interactions”. • Can be achieved applying:
2I’s
Interactivity
Individualization
54
Tools to analyze e-satisfaction
– Perceived usefulness (U)- the degree to which a person believes that using a particular system would enhance his or her job performance – Perceived Ease of Use (EOU)- the degree to which a person believes that using a particular system would be free of effort
• As these two factors increase, the users‟ overall satisfaction towards social networking sites will increase.
55
Users’ Attitude towards SNS
56
Functional Factor
• SNSs provide more functions that allow users to decorate their own space and allow users to find more information, user‟s tendency to stick with certain sites increases • E.g.- Cyworld.com allows user to apply various functions such as “decorating their own story room”, “designing background of the homepage”, “selecting various music” etc.
Emotional factor
• Social escapism motivationreliever of day-to-day boredom and stress • Avatars (i.e. personal icons that represent users) and emoticons provided by SNSs and represent both graphical items and textbased smiley‟s were use to represent personal feeling and characters
57
Promotional factor
• Popular e-business sites became significant marketing tools to deliver messages through advertising, word of mouth effect, etc. • E.g.- Google bought right to place search ads on Myspace pages in multi-year, $900 million deal, while Facebook struck a similar deal with Microsoft • As users are more satisfied with SNSs‟ networking factor, perceived ease of use and usefulness will increase
Convenience factor
• Convenience-related issues on SNSs include how easy it s to find people, ease of access, ease of making contact, and ease of making individual sites that include downloading pictures, music, decorating pages, etc. • E.g.- Cyworld.com- focusing on higher-level convenience by offering hybrid services to users to easily access their own space easily by connecting other media and mobile services.
58
Technology Factor
• system‟s technical design characteristics also have influence • Include website effectiveness, such as speed & customer interface design factors, including content, context and customization • SNSs developed technologies that facilitated sharing of information through the social graph, digital mapping of people‟s real-world social connections (Facebook.com)
Price factor
• users‟ willingness to pay play a large role in the choice and quantity of decisions. • Price affects the perception of online users both positively and negatively. • Some social networking sites such as Cyworld.co.kr provide options to purchase items (e.g. music, putting links to the preferred news) to decorate home pages and to make them more useful
59
Brand name factor
• Firms with extremely memorable brand names often regarded their names as their most valuable asset • Consumers log on to certain websites based on their recognition of the brand names. • Stronger the brand image held in consumer memories, the more likely they will purchase those products without any additional decision making
60
A holistic CRM approach
Treat social networking as a new channel within CRM.
Enhance and extend CRM through social networking.
Play to the strengths of both CRM and social networks.
61
SO WHERE IS THE MONEY COMING FROM ??
62
Revenue Models
• To study online social networking sites as a new trend of e-marketing 7 C Framework is applied. • 7C Framework comprises of following elements:
1. 2. 3. 4. 5. 6. 7. Context Content Community Customization Communication Connection Commerce
63
Analysis of online social networks as webbased service using 7C Framework as reference model can be given as follows:
Service
Context
Content
Community
Customisa -tion
Communication
Connection
Commerce
Online Social networks
Linking between pages, coloring, graphics, animation
Use profiles, group highlights
Social network groups, friend-tofriend emails, chatting, etc.
Personali z-ation on (My page, My group, My Friends)
Hybrid (email, Blogging, chatting, forums, RSS Feed, etc)
Online Ads
N/A
64
Primary Revenue Models
• There exist six primary revenue models: 1.Advertising 2.subscription 3.Transaction fee 4.Sales 5.Affiliate 6.Tiered Model –eg: an approach used by Twitter
65
66
• Most of them use hybrid revenue models, and almost all social networks websites use the advertising, subscription, and/or affiliate models.
• The common methods used by online businesses to measure effectiveness of online ads, or to determine the cost are: 1. CPI (Cost Per Impression) 2. CPC (Cost Per Click)
67
SWOT ANALYSIS
STRENGTH •Collaborative •Sense of Community •Knowledge Management •Enhances Communication •Ease of Use •Cheaper advertising WEAKNESS •Overcrowded •Privacy Issues •User should be Internet Friendly •Shifting Preferences of users.
OPPURTUNITIES •Vast scope of growth •Gen-x attitude •Target small entrepreneurs
THREATS •Competing Platforms •Abuse and Exploitation
68
Fans of SNS
69
THANK YOU !!!
ANY QUESTIONS ???
70