Tuesday 23 October 2007

Analyst: Social networking faces uncertain future

By Natasha Lomas Special to CNET News.com
Published: October 19, 2007, 10:02 AM PDT

Social-networking sites will enlist 230 million active members by the end of the year and will keep attracting new users until at least 2009, according to an analyst report. But investors are still wary--and for good reason, as long-term growth is by no means certain.

A report by U.K.-based Datamonitor, titled "The future of social networking: Understanding market strategic and technological developments," predicts that growth in the number of people signing up to be a part of the cultural phenomenon, which has put the likes of Facebook on the map, will peak by 2009 and plateau by 2012.

It also suggests revenues from social-networking services will hit $965 million this year, swelling to $2.4 billion by 2012.

Growth in the membership of social-networking sites varies dramatically by region, according to the analyst, which predicts Asia Pacific will account for 35 percent of global social networking users by the end of this year, followed by EMEA (28 percent), North America (25 percent), and the Caribbean and Latin America (12 percent).

However, while Datamonitor likens the current hype and excitement around social networking to the heady days of the dot-com boom, it said there is anxiety as well, and warns that investors are pulled in two directions. They do not want to miss out on the "next Google or Yahoo" but are cautious of being overconfident about a Web phenomenon that is not proven over the long term.
It is for this reason that most social-networking sites would be wise to postpone an IPO, said the analyst.

Speaking at a Web 2.0 conference in the US recently, Mark Zuckerberg, this year's top Agenda Setter award winner and founder and chief executive of Facebook--very much the social network of the moment--said his company is "years" away from any such flotation.

Ri Pierce-Grove Technology, analyst at Datamonitor and author of the report, said in a statement: "The extraordinary proliferation of online social networks is fueled by real innovation and is substantially changing the way we communicate. However, the hothouse atmosphere of easy capital, media attention and user curiosity which stimulates creativity will not be sustained indefinitely."

The analyst added that players must develop a "two-pronged strategy in order to survive the extremes of heat and eventual chill which this market will undergo."

Datamonitor said the current growth in social networking offers opportunities for businesses to get involved in supporting the infrastructure needed to run such sites, and it advises technology providers to look for ways to support social-networking services in the areas of scalability and availability.

The analyst also takes the view that consolidation in the marketplace is likely as it becomes more crowded, but said this does not necessarily mean individual sites will be swallowed up. For instance, it predicts special interest social-network sites will continue to play a role.

Need a presentation fast?

Slide Share is a really good slide sharing site. Loads of different stuff:

http://www.slideshare.net/

Monday 22 October 2007

Why do clients dump agencies?

Study reveals reasons for client / agency splits - taken from Precision Marketing. 22.10.2007

Breakdowns in client and agency relationships are due to failures from both parties to listen to each other and quality of personnel, a study from the AAR reveals.

A survey conducted by the intermediary shows that failure to listen to each other, quality of personnel and inflexibility are sited by agencies and clients as the most common reasons why relationships breakdown. However, 81 per cent of clients and 75 per cent of agencies believe setting clear expectations and clearly defining roles are the best preventative measures.

Over 80 per cent of clients said growing dissatisfaction with their agency’s service output was a key early warning sign to problems ahead. Over 40 per cent of clients are dissatisfied with agencies because of their lack of delivery, 34 per cent are dissatisfied with agencies who don’t meet briefs, and 33 per cent of clients are left unhappy because of declining agency work.

In contrast, only 41 per cent of agencies focused on clients’ dissatisfaction with output or service. Over half of respondents said their dissatisfaction with clients was due to people and relationship changes, while 21 per cent of agencies were left disgruntled because clients were not happy with their staff.

Kerry Glazer, chief executive at AAR, comments: “There needs to be a more concerted effort upfront to establish how the client and agency are going to work together. Our research indicated that a break up could be avoided if working practices were agreed and formalised in writing and practice at the start of the relationship, but the reality is that the focus is on establishing commercial arrangements. This type of forward planning could make for more enduring and successful relationships for both parties.”

Wednesday 17 October 2007

Acquiring Market Intelligence through Social Media

Friday 5th October 2007, Portland Place.

Introduction

According to Wikipedia there are 103 major social networking websites worldwide focusing on practically every type of activity from the making of dolls to the connecting of people - business to business.

From a market perspective, this translates into hundreds of millions of people regularly using sites for communication and interaction – thus the considerable business interest. MySpace with 200 million current users was acquired by Rupert Murdoch’s News Corporation in 2005 for $649 million. His rationale was that his empire had failed to engage properly with the digital world and risked losing its hard-won position in news provision. The purchase of Myspace was a start at putting that lack of engagement right.

Facebook, with 40 million users was started by the now 23 year old Mark Zuckerberg for colleges, then high schools, and now it includes everyone from newspaper editors to politicians. Viacom offered $750 million to acquire it. Yahoo then offered nearly $1billion. And according to the Wall Street Journal last week, Microsoft is interested in acquiring a minority stake - a potential investment of around $500 million for just 5% of the company. Google is also expressing interest in the same 5%.

As to which is the most popular social networking site, the latest audit announced a few days ago by Nielson/NetRatings puts Facebook ahead of MySpace.

From a business perspective, it’s clear that the social network is now one of the most effective ways of reaching people - new prospects, engaging with customers and finding out what’s going on in one’s market.

In the context of Microsoft’s marketing plans for its products and services, Steve Ballmer said to the New York Times recently “One pervasive change is the importance of community. It’s a big deal.”

Demonstrably, the social web is no “one off” phenomenon. The success of YouTube, Myspace, LinkedIn and Facebook is evidence of people wishing to take control of how they communicate, seek information, participate and interact. The marketing implications are very clear. Old style “push marketing” telemarketing or direct marketing is increasingly ineffective in today’s environment.

Web 2.0 enabled the development of the Social Network, which in turn has begun to change the role of the corporate marketeer from a broadcaster of messages to an aggregator of content and builder of online communities.

It means adapting marketing mindsets from companies only saying what they want to say to that of also hearing what their clients and prospects want to say. But what precisely is a social network and how does it work exactly? How scientifically can one acquire market intelligence from a social web?

To answer these questions, we were fortunate to have some great speakers: Michael Chin, Senior Vice President of the KickApps Corporation, and Ankur Shah, a director of Techlightenment.

-----------------------------------------------------------------------------------------------------------------------------------
Briefing

There were well over thirty companies represented including IBM, BT, SonyBMG, BBC, O2, AOL and many more.

Michael Chin identified the business imperatives, business models and strategies needed to succeed in the new age of social media.

KickApps is used by thousands of large global media and entertainment brands and independent publishers, including Scripps Network Interactive, VIBE Magazine, HBO, Cinemax, BET Networks, Kraft Foods and Procter & Gamble.

Michael's presentation: KIckApps Presentation

Ankur Shah discussed how communities and social interaction are inherently logical and can be analysed to enable the acquisition of market intelligence.

His company, Techlightenment is a new type of innovations agency. Its aim is to harness and embrace cutting-edge and disruptive technologies for the benefit of all market sectors. He believes that social interaction is an inherently rational act and can be understood and analysed.

To that end, Ankur demonstrated that mapping the influence individual nodes have on any given network, enables one to understand how individuals will respond to any given engagement.
Ankur’s presentations are here Socialistics and here Techlightenment

Things work better together

Nice bit of research from Dynamic Logic to show that campaigns are more effective when you use more than one channel;

http://www.dynamiclogic.com/eu/research/WhatsInTheMix/

Popuri - social media

Measure link popularity and social media coverage

http://www.popuri.us/

Cap Code food and drink for kids

Food or soft drink product advertisements and children

47.6 Marketing communications should not condone or encourage poor nutritional habits or an unhealthy lifestyle in children.

47.7
(a) Although children might be expected to exercise some preference over the food they eat or drink, marketing communications should be prepared with a due sense of responsibility and should not directly advise or ask children to buy or to ask their parents or other adults to make enquiries or purchases. (see 47.4a).

(b) Marketing communications should neither try to sell to children by directly appealing to emotions such as pity, fear, or self-confidence nor suggest that having the advertised product somehow confers superiority, for example making a child more confident, clever, popular, or successful.

(c) Marketing communications addressed to children should avoid “high pressure” and “hard sell” techniques; they should neither directly urge children to buy or persuade others to buy nor suggest that children could be bullied, cajoled or otherwise put under pressure to acquire the advertised item.

(d) Products and prices should not be presented in marketing communications in a way that suggests children or their families can easily afford them.

(e) Marketing communications addressed to or targeted directly at children should not actively encourage them to eat or drink at or near bedtime, to eat frequently throughout the day or to replace main meals with confectionery or snack foods.

47.8 Marketing communications featuring a promotional offer should be prepared with a due sense of responsibility. Except those for fresh fruit or fresh vegetables, food or drink advertisements that are targeted directly at pre-school or primary school children through their content should not include promotional offers.

(a) Marketing communications featuring a promotional offer linked to food products of interest to children should avoid creating a sense of urgency or encouraging the purchase of excessive quantities for irresponsible consumption.

(b) Marketing communications should not seem to encourage children to eat or drink a product only to take advantage of a promotional offer: the product should be offered on its merits, with the offer as an added incentive. Marketing communications featuring a promotional offer should ensure a significant presence for the product. Marketing communications for fresh fruit or fresh
vegetable products are exempt from this restriction.

(c) Marketing communications for collection-based promotions should not seem to urge children or their parents to buy excessive quantities of food.

(d) Marketing communications should not encourage children to eat more than they otherwise would.

47.9 Licensed characters and celebrities popular with children should be used with a due sense of responsibility. Except those for fresh fruit or fresh vegetables, food or drink advertisements that are targeted directly at pre-school or primary school children through their content should not include licensed characters or celebrities popular with children.

47.10 Marketing communications should not give a misleading impression of the nutritional or health benefits of the product as a whole. Except those for fresh fruit or fresh vegetables, food or drink advertisements that are targeted directly at pre-school or primary school children through their content should not include nutrition or health claims.

47.11 Marketing communications should not disparage good dietary practice or the selection of options, such as fresh fruit and vegetables that accepted dietary opinion recommends should form part of the average diet.

Monday 1 October 2007

Brand watch

Online brandwatch tool. Subscription model. Looks good.

http://magpie.net/movies/BW_intro.mov

digg

Hitwise To Go - US

Random Culture