Slide1 : FAST CATEGORY GROWTH: OVER
110 MILLION SOCIAL NETWORK USERS Source: ComScore Media Metrix, US only, All users’ trends
SHARE OF ONLINE VOICE : SHARE OF ONLINE VOICE Unique Users
62% Share of Online Voice Social Network
62% U.S. Online Audience
178 Million Total Pageviews
Category Share of Voice Social Network outpaces traditional
online category destinations % Source: ComScore Media Metrix, US only, April 2007
ADVERTISING AND SOCIAL NETWORKING : ADVERTISING AND SOCIAL NETWORKING In 2007, ad spending on US social networking sites will spike to $865 million from $350 million in 2006
MySpace will continue to dominate social networks, accounting for 60% of total US online social network ad spending in 2007
Source: eMarketer, May 2007
EVOLUTION OF DIGITAL COMMUNICATIONS : EVOLUTION OF DIGITAL COMMUNICATIONS 1990 2007 Discussion Boards E-Mail Consumer Review Sites Blogs Photo Sharing Video Sharing
Sites Social Network Sites 77% of online shoppers read
Consumer reviews before making
purchase… Source: TNS/Cymfony White Paper, May 2007 2 of every 3 people online
visit social media sites
Source: Compete There are now 70M
Blogs with 1.5M posts
per day
Slide5 : THE SOCIAL NETWORK PLATFORM
NEVER ENDING FRIENDING STUDY : NEVER ENDING FRIENDING STUDY Consumer-focused qualitative and quantitative research to
understand how and why consumers interact within social
networks
10 focus groups that include: MySpace users, TRU’s TrendWatch Panel, HS Students (16-18), college students (20-22) and adults (25-35)
3000+ online interviews (14-40): Social Networkers, MySpace user, MySpace Non-Registered Users, Non-Social Networkers
Advertiser-focused case studies to gain insight into what
kinds of campaigns are successful and how to quantify the
Momentum Effect of consumer to consumer marketing
Series of control and exposed measurement using a combination of behavioral tracking and surveys
Measure key brand metrics such as intent to recommend, intent to purchase, positive brand image and unaided awareness
Compared findings with similar ROI studies conducted by Marketing Evolutions to assess average value
Phase 1: Phase 2:
STAGGERING PARTICIPATION! : 44 million Social networking users 15-34 (up 5 million from Nov. ’06)
69 Percentage of 15-34 who use social networking STAGGERING PARTICIPATION! Source: ComScore, March ‘07
SOCIAL NETWORKING: THEIR PREFERRED FREE-TIME ACTIVITY : SOCIAL NETWORKING: THEIR PREFERRED FREE-TIME ACTIVITY If you had 15 minutes of free time…
17% Social networking
17% Talk on cell
14% Watch TV
10% Surf the internet
9% Play console video games
8% IM
7% Listen to MP3 player
1% Listen to the radio
44 Million
Age 15-34 112 Million US users visited a social networking site*
Q: If you had 15 min of free time, which activity would you do? Select 2
Base = SN users 14-29; n=2,081
CONSTANT ENGAGEMENT, ESPECIALLY IN PRIME TIME : CONSTANT ENGAGEMENT, ESPECIALLY IN PRIME TIME When they’re regularly on social network sites…
15% First thing in the morning
16% Before school/work
18% Lunch
25% At school/work
31% After school/work
68% Evening
30% Late night (10pm-4am)
Prime Time Base = SN users 14-40; n=2,605 Q: When are you regularly on your favorite social networking site?
CONSTANT ENGAGEMENT, ESPECIALLY IN PRIME TIME : Sean, 16, New York CONSTANT ENGAGEMENT, ESPECIALLY IN PRIME TIME
EXTENDING INTO THEIR OFFLINE LIVES : EXTENDING INTO THEIR OFFLINE LIVES 73% Never bored when using it
66% So many things to do
56% Adds fun to going out
48% Having more fun in life general
47% More plugged into music scene
46% More on top of trends, what’s new
45% Makes my life more exciting
40% Discovered brands/products really like
Top-2-box agreement (3-pt scale) Base = SN users 14-40; n=2,605 Q: How much do you agree with each of these statements? Top 2 box – Agree/Completely Agree
ENABLING AUTHENTICITY : ENABLING AUTHENTICITY Deep emotional attachment drives category engagement
57% People can see sides of me not obvious in person
50% Allows me to be more social than in person
50% I’m less awkward communicating
41% Can reveal parts of my life I wouldn’t normally disclose
Base = SN users 14-40; n=2,605 Q: How much do you agree with the following statements? Top 2 box (Agree, Completely Agree)
DEEPENING EXISTING RELATIONSHIPS : DEEPENING EXISTING RELATIONSHIPS 69% Regular friends
46% Friends with whom I had lost contact
41% Family members
31% People from outside your city
27% People you only know in the virtual world
25% People you met once or twice in person
18% Co-workers
Who regularly in contact with Base = SN users 14-40; n=2,605 Q: Which types of people do you interact with regularly on your favorite SN site?
Slide14 : Jason, 29, Los Angeles
AFFILIATION THROUGH FRIENDING : AFFILIATION THROUGH FRIENDING Reasons for having brands as friends…
29% Notices of events, sales, or exclusive offerings
28% Recommended by a friend of mine
23% Want to associate myself with them
23% Discounts, coupons, free samples
11% Want to support them
Base = SN users 14-40; n=2,605
Slide16 : The “Momentum Effect” and the Value of Social Networking to Marketers – A New Model.
Slide17 : HERE IS HOW IT WORKS: THE MOMENTUM EFFECT…
Slide18 : HERE IS HOW IT WORKS: THE MOMENTUM EFFECT…
POSITIVE BRAND INTERACTION FUELS ADOPTION AND ADVOCACY : POSITIVE BRAND INTERACTION FUELS ADOPTION AND ADVOCACY
Slide20 : “Over 70% of value in social media comes from the Momentum Effect…” (Never Ending Friending Study, April 2007)
Slide21 : VALUE CREATION IN SOCIAL NETWORKS Unlike the traditional model of a message delivered directly from marketer to consumer (B2C), social networks allow for pass-along and recommendation (C2C), which perpetuates the marketing cycle.
Slide22 :
Old model:
B2C
New model:
C2C
1000 impression = $10
$10 CPM = $0.50 CPI Old vs. New Model of Value Creation Each interaction is an impression
Slide23 : WHAT IS THE MOMENTUM EFFECT? Size = Incidence (# of people doing activity) “Each Interaction
is an Impression” Visit Brand Custom Community
609,182 visits/month View/Download (in brand’s community) 74,455 people/month Receive Brand Pass Along 35,000 people/mo. Pass Along 37,511 people/mo. Use on Own Page 63,230 people/mo. 21.5 million views/mo. View Download (on user’s page)
View Download (on user’s page)
Slide24 : VALUE CREATED BY SN TRUMPS THE AVERAGE FOR TV, ONLINE Momentum Effect B2C Profile View C2C Profile View Advertising Effect SN ROI: Above Average ROI:
Extraordinary “Definitely Will Purchase” Source: Marketing Evolution, April 2007
People Influenced per $100k
Slide25 : Source: Marketing Evolution, April 2007
Total Number of Incremental People Influenced By MySpace Purchase Intent,
Top Box Intent to Recommend,
Top 3 Box Av. Brand Image Attributes,Top 2 Box Total Unaided Awareness Momentum Effect B2C Profile View C2C Profile View Advertising Effect MOMENTUM EFFECT IS OVER HALF OF VALUE CREATION* *Exception is awareness. Advertising drives awareness 78% 70% 57% 54% 71% 98%
Slide26 : KEY ADVERTISER RESEARCH INSIGHTS The New Value Creation Model Is Captured In Social Media
B2C + C2C = Value Creation
The ROI From Advertising On SN Is Competitive
The average cost to influence each person on purchase intent is stronger than most online properties
This cost is within the range of television ROI
The Momentum Effect Accounts for Over Half Of The Value
Total value created significantly outpaces average impact for television and online
The Momentum Effect drives over 70% of the value for driving purchase intent
Activate The Momentum Effect
Your brand is your persona
Give them a reason to talk about your brand
Give them a chance to realize their dreams
THANK YOU, AND FOR MORE INFORMATION… : THANK YOU, AND FOR MORE INFORMATION… www.myspace.com/neverendingfriending