SETU. If you want to get ahead be a bridge. Synergy*Excellence*Transformation*Unlearning SOCIAL MEDIA: A BOON OR A BANE

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1 SETU January1, 2012 no.19 If you want to get ahead be a bridge Synergy*Excellence*Transformation*Unlearning SOCIAL MEDIA: A BOON OR A BANE Rattled with the few campaigns in the social media sites the government is trying to frame certain guidelines related to the materials to be posted on such sites. Social media is limited not only to social networking sites suchas Facebook, Google+ and Orkut but also extend to blogs, Twitterand others. Thus, any information shared on these sites can reach millions of people on a click of the mouse because active users of social media can spend hours on their favorite portals, accessing any information coming their way. Leaving apart the political discussion, this issue has also attracted the attention of marketers, yet again, about the growing power of social media in India. The social networking phenomenon continues to gain steam worldwide, and India represents one of the fastest growing markets at the moment, said Will Hodgman, comscore executive Vice President for the Asia-Pacific region. The social networking sites in India have grownby 43% in 2010 over 2009 in terms of total unique visitors. Growth of Top 10 Social Networking Markets Worldwide July 2010 vs. July 2009 Total Worldwide Age 15+, Home & Work Locations* Social Networking Unique Visitors (000) Jul-2009 Jul-2010 % Change Worldwide 770, ,040 23% United States 131, ,429 33% China N/A 97,151 N/A Germany 25,743 37,938 47% Russian Federation 20,245 35,306 74% Brazil 23,966 35,221 47% United Kingdom 30,587 35,153 15% India 23,255 33,158 43% Japan 23,691 31,957 35% South Korea 15,910 24,962 57% *Excludes visitation from public computers such as Internet cafes or access from mobile phones or PDAs. Source: comscore Media Matrix August 2010

2 According to a report from Morgan Stanley in 2010, there are increasingly more social networking users than users. According to technology research firm Gartner, by 2014, social networking services will replace as the primary vehicle for interpersonal communications for at least 20% of business users. Amongst all the social networking sites, Facebook.com is the undisputed market leader followed by other sites. Top Social Networking Sites in India July 2010 vs. July 2009 Total India Age 15+, Home & Work Locations* India Social Networking Unique Visitors (000) Jul-2009 Jul-2010 % Change Total Internet : Total Audience 35,028 39, Social Networking 23,255 33, Facebook.com 7,472 20, Orkut 17,069 19, Bharatstudent.com 4,292 4,432 3 Yahoo! Pulse N/A 3,507 N/A Twitter.com 984 3, LinkedIn.com N/A 3,267 N/A Zedge.net 1,767 3, Ibibo.com 1,562 2, Yahoo! Buzz 542 1, Shtyle.fm 407 1, *Excludes visitation from public computers such as Internet cafes or access from mobile phones or PDAs. Source: comscore Media Matrix August 2010 The growing power of social media sites in India has been reflected in the growth in advertising on social media. Advertising on social media has shown a growth of 54% in Companies are promoting their products on social media and are even willing to provide discounts to customers if they like their product on a website or join a community started by the company. Many research firms expect that the spending on social software to support sales, marketing and customer service processes will exceed $1 billion worldwide by The key factors behind the growth of social networking sites are as follows: 1) India is among the fastest-growing broadband markets in the Asia-Pacific region, with an estimated 81 million internet users and estimated to reach 100 million by next year. It has a broadband subscriber base of around 10 million and its internet users total to 17 million. It registered a growth of 40% year-on-year and is expected to continue to show healthy double-digit growth. 2) According to the London-based Informa Telecoms and Media s forecast India is the second largest mobile subscription market inthe world with 750 million subscribers in December 2010and is set to be the largest market by 2013, Mobile internet users in India are estimated to be around 22 million in the year 2010.

3 3) The growing trend of social networking among the youth has increased the demand for smartphones and GPRS-enabled phones. Internet-enabled mobile phones are easily available with pre-loaded applications for Facebook, Twitter, etc. Even the prices of internet-(low-cost GPRS) enabled handsets have reduced drastically. Currently a GPRS-enabled handset is available at around INR 2,500 while Smartphones are available under INR 7,000. This has aided internet access to the users at very low costs. 4) Telecom players have also reduced GPRS rates which helped in penetration of mobile internet. Packages at reasonable costs for data services on mobile phones are now available. 5) In 2010, the much awaited 3G auctions were completed by the government and by the end of the year most of the players launched their 3G services. This has also helped in increasing the mobile internet popularity. Corporate Social Networking Sites Source: Shelley Singh, ET Bureau Aug 2, 2011

4 Indian corporate are using social networks imaginatively named Yammer, Jive, Socialcast, Quad, Connections, Chatter, SociatText etc. According to PramodBhasin, Vice Chairman (Non-Executive), Genpact it's a must-have tool to encourage teamwork and best practices. Corporate social networking has added new flavor to the intranet, without diluting the seriousness of connecting online. These sites have enabled executives to share information on best practices and innovations besides following friends or uploading images. With all these facts it seems that social media is a boon, however with a report recently published in hindustantimes on November 20, 2011 it has been observed that these media can be used up-to any extent to tarnish the image of any company or brand.

5 Thus, companies should be very careful while dealing with social media because it is a double edged sword. Sources: 1) Pricewaterhousecoopers Private Ltd., India Entertainment and Media Outlook 2011, India_Entertainment_and_Media_Outlook_2011.pdf 2) 3) 02/news/ _1_networking-linkedin-jive If you have liked reading this issue or otherwise please do write to the SETU team: sibmsetu@sibm.edu. SETU is a monthly electronic publication of SIBM, Pune previously published as SIBM POLICY NOTES. SETU is published by Director, SIBM, Pune distributed by SIBM, Pune free of cost to corporate patrons with a view to share knowledge and perspectives only. Due care has been taken to ensure that the information published herein is correct and to mention sources of information. The editorial team and publishers take no responsibility for any damage resulting from inadvertent omission or inaccuracy in the publication. The views expressed in this publication are not necessarily those of SIBM, Pune. Website: Pastissues are archived on the website. sibmsetu@sibm.edu Credits for this issue: Dr. Tarun Kushwaha. SETU team: Dr. Amita Shiroor, Ms. Shilpa Ravalallu, Mrs. Saee Gokhale, Mr. Nilesh Kadam.