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1
What is a social network?

Mark Zuckerberg Q&A
Facebook founder and CEO

Source: SxSW 2008 conference, Austin TX




                                          2
Would you have imagined the impact of Facebook?

                       June 2007        June 2008           % growth

                                                   52.167              132.105
         FACEBOOK
                            143%
                                          35.698
     North America                             49.248
                           38%
                               8.751
              Europe                      35.263
                            303%
                             3.712
         Asia Pacific                20.712
                             458%
                            2.974
Middle East - Africa            14.951
                            403%
                           1.033
      Latin America            11.931
                               1055%
 Source: Facebook Growth - Age +15, ComScore World Metrix, June 2008




                                                                                 3
Echo System
The impact of collective intelligence
on consumption and branding


The Trend Watch #7




                                        4
Before
Planning the trip




                    5
6
7
8
76% say that recommendations from friends and colleagues are important or
very important when booking a hotel online.

41% said the same about traveler-written reviews.

The bottom line: While both types of content are important, personal network recommendations more
strongly influence hotel booking than reviews from strangers.

Source: Forrester research for Sheraton




                                                                                                    9
10
Instant Messaging, TXT and Video Chat
New cross-messaging functionalities on popular social networking sites
could potentially reach a total of 23.6 million US users
and 54.8 million users worldwide

The number of TXT every day exceeds
the number of people living on earth (more than 6 billion)

Source: comScore stats for ‘the eight sites’, June 2008




                                                                         11
12
Social Technoghraphics Ladder

18%    Creators        blog, publish web pages, upload videos and photos, write articles
25%    Critics         post ratings/reviews, comment on someone else’s blog, contribute to forums/wiki
12%    Collectors      use RSS feeds, add tags to online content, vote for sites online
25%    Joiners         maintain profile on a social network and spend time interacting
48%    Spectators      read blogs, watch videos, listen podcasts, read online UGC, and peer reviews
44%    Inactives       none of the above

Base: US online adults
Source: Forrester Q2 2007 Social Technographics Survey




                                                                                                         13
Day #1
Jet lag




          14
15
Introducing VRM
Vendor Relationship Management provides customers
with tools for engaging with vendors in ways that work
for both parties.

Source: Doc Searls – Project VRM at Harvard University




                                                         16
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21
22
23
Dealing with your detractors




Source: Forester ‘Online Community Best Practices’, Feb 2008


                                                               24
Trust peers vs. advertising when
making a major purchase decision

           Trust peers                       30%

    Trust advertising                  10%


Source: Jupiter Research, March 2007




                                                   25
26
Social Markets

“Networked market are beginning to self
organize faster than the companies that
have traditionally served them. Thanks to
the web, markets are becoming better
informed, smarter, and more demanding of
qualities missing from most business
organizations.”

Source: ‘The Cluetrain Manifesto’ - Rick Levine,
Christopher Locke, Doc Searls, David Weinberger




                                                   27
28
29
Community needs first!
The consumer relationship best
practices that create WOM

Source: SxSW Zappos conference, 2008




                                       30
Day #2
Family time




              31
32
33
34
35
Credible sources of information
about a brand/company
Persons like themselves                     60%
         Financial analyst                 56%
                 Academic                  54%
       Doctor / Specialist                 53%
 Non-Profit Organisation                   50%
  Employee of company                    43%
         CEO of company              23%
                    Blogger        12%
Source: 2008 Edelman Trust Barometer, January 2008




                                                     36
37
Groundswell

A social trend in which people use
technologies to get the things they need
from each other, rather than from traditional
institutions like corporations.

Source: Charlene Li and Josh Bernoff ‘Groundswell’,
March 2008




                                                      38
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42
Day #3
Black Friday shopping sales




                              43
The Real Story of RSS

                 Aware
                  RSS
Unaware
                 users
  RSS
                  4%
 users
  27%




                                               Do not
                                              use RSS
                                                69%
Source: Ipsos ‘RSS whitepaper’ October 2005




                                                        44
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54
Worldwide Online Social Network Advertising
Spending, 2006-2011 ($ millions and % change)

               2006           480

     2007 (155%)                    1225

      2008 (65%)                           2015

      2009 (32%)                                  2665

      2010 (22%)                                         3245

      2011 (17%)                                                3795


Source: eMarketer, May 2008




                                                                       55
56
Why people (18+) contribute to Social
Networks and User Generated Content

       Feel part of community                                             31%

       Recognition from peers                                        28%

Participate with brands I like                    9%

                     Make money                6%

Recognition from colleagues                  4%

Other (Share with family, fun)                                 22%


Source: IBM Institute for Business Value ‘US Consumer Research: Digital
Entertainment & Media’ August 2007




                                                                                57
58
59
"In a dramatic acceleration of the seven-year sales decline that has battered the
music industry, compact-disc sales for the first three months of
this year plunged 20% from a year earlier, the latest sign of the seismic shift
in the way consumers acquire music."

Source: Ethan Smith, "Sales of Music, Long in Decline, Plunge Sharply"
The Wall Street Journal Online, March 21, 2007




                                                                                    60
61
62
Media Used by US Internet Users to
  find information about 2008
  Presidential Candidates and Issues
                 May 2007       March 2008
                                                        62%
            TV
                                                              76%
                                             42%
     Internet                                        55%

                                             42%
 Newspaper                                     47%

     Word-of-                    23%
                                       33%
      mouth
                                  25%
        Radio                       29%

        News                    21%
                                21%
   Magazines
Too early, not                   23%
                          12%
  looking yet

  Source: iCrossing ‘How America Searches: Election 08 Update’
  conducted by Opinion Research Corporation, April 2008



                                                              63
64
‘We can’ vs. ‘I will’
Democrats have slightly above-average
participation in all social technologies;
Republicans are below average.




Source: Forrester ‘North American Social
Technologies Online Survey’, Q2 2007



                                            65
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68
69
Day #4
Beach party




              70
71
72
73
74
75
The iPhone's App Store has sold 60 million applications
or two million downloads a day, after one month. Altogether this
netted about $30 million in revenue.

Source: Steve Jobs interview - Wall street Journal - August 11, 2008




                                                                       76
Day #5
Gifts, postcards and souvenirs




                                 77
78
79
Dell, Microsoft, Southwest Airlines, The
Coca-Cola Company…




                                           80
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83
84
85
86
The Echo System golden rule
Regardless of your own goals,
always put the network’s needs first.



Stay tuned: TheTrendWatch.com




                                        87
88
TheTrendwatch #08
TheTrendwatch #08
TheTrendwatch #08
UGO
Cibernautas fazem
  upload de uma
 fotografia que irá
   fazer parte do
 desenho final do
      outdoor
© FullSIX 2008 -
Strictly
TheTrendwatch #08
TheTrendwatch #08
TheTrendwatch #08
TheTrendwatch #08
TheTrendwatch #08
TheTrendwatch #08
Stay tuned!
TheTrendWatch.com




                    10
                     0

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TheTrendwatch #08

  • 1. 1
  • 2. What is a social network? Mark Zuckerberg Q&A Facebook founder and CEO Source: SxSW 2008 conference, Austin TX 2
  • 3. Would you have imagined the impact of Facebook? June 2007 June 2008 % growth 52.167 132.105 FACEBOOK 143% 35.698 North America 49.248 38% 8.751 Europe 35.263 303% 3.712 Asia Pacific 20.712 458% 2.974 Middle East - Africa 14.951 403% 1.033 Latin America 11.931 1055% Source: Facebook Growth - Age +15, ComScore World Metrix, June 2008 3
  • 4. Echo System The impact of collective intelligence on consumption and branding The Trend Watch #7 4
  • 6. 6
  • 7. 7
  • 8. 8
  • 9. 76% say that recommendations from friends and colleagues are important or very important when booking a hotel online. 41% said the same about traveler-written reviews. The bottom line: While both types of content are important, personal network recommendations more strongly influence hotel booking than reviews from strangers. Source: Forrester research for Sheraton 9
  • 10. 10
  • 11. Instant Messaging, TXT and Video Chat New cross-messaging functionalities on popular social networking sites could potentially reach a total of 23.6 million US users and 54.8 million users worldwide The number of TXT every day exceeds the number of people living on earth (more than 6 billion) Source: comScore stats for ‘the eight sites’, June 2008 11
  • 12. 12
  • 13. Social Technoghraphics Ladder 18% Creators blog, publish web pages, upload videos and photos, write articles 25% Critics post ratings/reviews, comment on someone else’s blog, contribute to forums/wiki 12% Collectors use RSS feeds, add tags to online content, vote for sites online 25% Joiners maintain profile on a social network and spend time interacting 48% Spectators read blogs, watch videos, listen podcasts, read online UGC, and peer reviews 44% Inactives none of the above Base: US online adults Source: Forrester Q2 2007 Social Technographics Survey 13
  • 15. 15
  • 16. Introducing VRM Vendor Relationship Management provides customers with tools for engaging with vendors in ways that work for both parties. Source: Doc Searls – Project VRM at Harvard University 16
  • 17. 17
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  • 20. 20
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  • 22. 22
  • 23. 23
  • 24. Dealing with your detractors Source: Forester ‘Online Community Best Practices’, Feb 2008 24
  • 25. Trust peers vs. advertising when making a major purchase decision Trust peers 30% Trust advertising 10% Source: Jupiter Research, March 2007 25
  • 26. 26
  • 27. Social Markets “Networked market are beginning to self organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.” Source: ‘The Cluetrain Manifesto’ - Rick Levine, Christopher Locke, Doc Searls, David Weinberger 27
  • 28. 28
  • 29. 29
  • 30. Community needs first! The consumer relationship best practices that create WOM Source: SxSW Zappos conference, 2008 30
  • 32. 32
  • 33. 33
  • 34. 34
  • 35. 35
  • 36. Credible sources of information about a brand/company Persons like themselves 60% Financial analyst 56% Academic 54% Doctor / Specialist 53% Non-Profit Organisation 50% Employee of company 43% CEO of company 23% Blogger 12% Source: 2008 Edelman Trust Barometer, January 2008 36
  • 37. 37
  • 38. Groundswell A social trend in which people use technologies to get the things they need from each other, rather than from traditional institutions like corporations. Source: Charlene Li and Josh Bernoff ‘Groundswell’, March 2008 38
  • 39. 39
  • 40. 40
  • 41. 41
  • 42. 42
  • 43. Day #3 Black Friday shopping sales 43
  • 44. The Real Story of RSS Aware RSS Unaware users RSS 4% users 27% Do not use RSS 69% Source: Ipsos ‘RSS whitepaper’ October 2005 44
  • 45. 45
  • 46. 46
  • 47. 47
  • 48. 48
  • 49. 49
  • 50. 50
  • 51. 51
  • 52. 52
  • 53. 53
  • 54. 54
  • 55. Worldwide Online Social Network Advertising Spending, 2006-2011 ($ millions and % change) 2006 480 2007 (155%) 1225 2008 (65%) 2015 2009 (32%) 2665 2010 (22%) 3245 2011 (17%) 3795 Source: eMarketer, May 2008 55
  • 56. 56
  • 57. Why people (18+) contribute to Social Networks and User Generated Content Feel part of community 31% Recognition from peers 28% Participate with brands I like 9% Make money 6% Recognition from colleagues 4% Other (Share with family, fun) 22% Source: IBM Institute for Business Value ‘US Consumer Research: Digital Entertainment & Media’ August 2007 57
  • 58. 58
  • 59. 59
  • 60. "In a dramatic acceleration of the seven-year sales decline that has battered the music industry, compact-disc sales for the first three months of this year plunged 20% from a year earlier, the latest sign of the seismic shift in the way consumers acquire music." Source: Ethan Smith, "Sales of Music, Long in Decline, Plunge Sharply" The Wall Street Journal Online, March 21, 2007 60
  • 61. 61
  • 62. 62
  • 63. Media Used by US Internet Users to find information about 2008 Presidential Candidates and Issues May 2007 March 2008 62% TV 76% 42% Internet 55% 42% Newspaper 47% Word-of- 23% 33% mouth 25% Radio 29% News 21% 21% Magazines Too early, not 23% 12% looking yet Source: iCrossing ‘How America Searches: Election 08 Update’ conducted by Opinion Research Corporation, April 2008 63
  • 64. 64
  • 65. ‘We can’ vs. ‘I will’ Democrats have slightly above-average participation in all social technologies; Republicans are below average. Source: Forrester ‘North American Social Technologies Online Survey’, Q2 2007 65
  • 66. 66
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  • 76. The iPhone's App Store has sold 60 million applications or two million downloads a day, after one month. Altogether this netted about $30 million in revenue. Source: Steve Jobs interview - Wall street Journal - August 11, 2008 76
  • 77. Day #5 Gifts, postcards and souvenirs 77
  • 78. 78
  • 79. 79
  • 80. Dell, Microsoft, Southwest Airlines, The Coca-Cola Company… 80
  • 81. 81
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  • 83. 83
  • 84. 84
  • 85. 85
  • 86. 86
  • 87. The Echo System golden rule Regardless of your own goals, always put the network’s needs first. Stay tuned: TheTrendWatch.com 87
  • 88. 88
  • 92. UGO Cibernautas fazem upload de uma fotografia que irá fazer parte do desenho final do outdoor
  • 93. © FullSIX 2008 - Strictly