Consumer Adoption of Social Media & the Evolution of the Social Network
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2 Consumer Adoption of Social Media & the Evolution of the Social Network David Card VP, Principal Analyst Forrester Research April 17, 2009
3 Agenda How are consumers adopting social media? What s going on in social media marketing? Can social networks be a real business? 3 Entire contents 2009 Forrester Research, Inc. All rights reserved.
4 Agenda How are consumers adopting social media? What s going on in social media marketing? Can social networks be a real business? 4 Entire contents 2009 Forrester Research, Inc. All rights reserved.
5 Ratings, UG-video approaching mass media status 5 Entire contents 2009 Forrester Research, Inc. All rights reserved.
6 Social networking becoming ubiquitous 6 Entire contents 2009 Forrester Research, Inc. All rights reserved.
7 Creators less widespread 7 Entire contents 2009 Forrester Research, Inc. All rights reserved.
8 Net: More audience than authors, but ratio explodes traditional media norm Watching videos, doing ratings drives decline in Inactives 8 Entire contents 2009 Forrester Research, Inc. All rights reserved.
9 Agenda How are consumers adopting social media? What s going on in social media marketing? Can social networks be a real business? 9 Entire contents 2009 Forrester Research, Inc. All rights reserved.
10 US marketers increase social budgets even in downturn 10 Entire contents 2009 Forrester Research, Inc. All rights reserved.
11 Social media leads interactive budget increases 11 Entire contents 2009 Forrester Research, Inc. All rights reserved.
12 But budgets for social media marketing remain minuscule 12 Entire contents 2009 Forrester Research, Inc. All rights reserved.
13 Last year, social media marketing was deemed valuable but unproven 13 Entire contents 2009 Forrester Research, Inc. All rights reserved.
14 Agenda How are consumers adopting social media? What s going on in social media marketing? Can social networks be a real business? 14 Entire contents 2009 Forrester Research, Inc. All rights reserved.
15 Social network business models Portal Air Walled Garden 15 Entire contents 2009 Forrester Research, Inc. All rights reserved.
16 Portal model faces threats from Google, social nets Thinking about how you regularly use the Internet, which of the following do you consider indispensable? (Select all that apply) Google 51% 53% Yahoo! 36% 31% Microsoft, MSN, or Hotmail 23% 22% Amazon 18% 17% YouTube 17% 37% ebay 17% 19% MySpace 13% 28% AOL 12% 13% Facebook 8% 25% Other 5% 4% None 24% 21% 16 Entire contents 2009 Forrester Research, Inc. All rights reserved. Source:JupiterResearch/NPD Group Individual User Survey (6/08), n = 3,730 (US only) Online Users % 20% 40% 60% 80% 100% Percentage of Segment
17 Social networks emerging as social media hubs, potential entertainment aggregators Which of the following activities do you conduct on social networks monthly or more frequently? (Select all that apply) View friends photos or videos Keep up with friends Update my status Post photos or video Listen to music View strangers' photos or videos Entertainment info Use as a search engine Use as primary Play games (e.g. Scrabulous) Watch a professional video Become a fan of brands 48% 41% 35% 30% 23% 20% 18% 17% 15% 12% 8% 59% 17 Entire contents 2009 Forrester Research, Inc. All rights reserved. 0% 20% 40% 60% 80% 100% Percentage of Social Network Users Source:JupiterResearch/NPD Group Individual User Survey (6/08), n = 1,624 (US only)
18 Two key social network audiences emerge Primary Motivation: Entertainment Profile Posters 19% Entertainment Users 29% Primary Motivation: Communication Friend Followers 13% 39% Passive Users Percentage of Social Network Users 18 Entire contents 2009 Forrester Research, Inc. All rights reserved. Source: JupiterResearch/Ipsos Insight Individual User Survey (6/08), n = 1,623 (social network users) (US only)
19 Marketers can tap entertainment media, then build out social marketing promise Easy money Share (post, broadcast, share 1:1) Consume (media, information) Communicate (with known friends, colleagues) Follow (track friends, news, bands, etc.) Join/Connect (find or meet people with common interests) Social marketing future 19 Entire contents 2009 Forrester Research, Inc. All rights reserved. Source: JupiterResearch (07/08)
20 Key takeaways Money likely from audience before authors Real social marketing still untapped Social networks can emulate portal model, should build out marketing services 20 Entire contents 2009 Forrester Research, Inc. All rights reserved.
21 Thank you David Card / Blog: Follow on Twitter 21 Entire contents 2009 Forrester Research, Inc. All rights reserved.
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