Transcript Chapter 1 - SCC Porter

Principles of Internet
Marketing
Chapter 3
Social Media and
Social Networking Sites
Objectives
In this chapter you will learn about:
• What social media is
• How and why social media grew to play such an
important role in the Web
• The demographic breakdown of social media users
and how their use of various applications differs
• Various types of social networks, how social
networking sites function, and how marketers use
these sites to build an audience
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An Overview of Social Media and
Social Networking Sites
• Social media is umbrella term used to describe
many different tools, each of which are used for
various needs and levels of interpersonal
connectivity
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–
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–
–
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Social networks
File sharing (music, pictures, videos, etc.)
Wikis
Virtual worlds
RSS feeds
Product and service reviews
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An Overview of Social Media and
Social Networking Sites (continued)
• Social media relies on users for ongoing
collaboration and interaction
• Single site may use many different social media
tools to engage an audience
• Because of ongoing user interaction, social media
based sites are ever changing in terms of content
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The Rise and Dominance of
Social Media
• Modern social media evolved from early, more
basic social media tools
– Some still play important roles in everyday use
– These allow for networking and interaction but hold
limited communal capabilities:
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E-mail
Instant messenger
Newsgroups
Chat rooms
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The Rise and Dominance of
Social Media (continued)
• AOL was one of the earliest and most popular
resources for chat rooms
– Allowed social networking
– Limited social aspect
• Chat rooms:
– Had a maximum number of people
– Did not keep a record of conversations, so
discussions were not ongoing and evolving
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The Rise and Dominance of
Social Media (continued)
Figure 3-1: An early AOL chat room
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The Rise and Dominance of
Social Media (continued)
• Early forms of blogging began quietly in late 1990’s
– 1997 was first online diary by Jorn Barger
– Coined the phrase Weblog, later shortened to blog
• Early social networking sites such as
Classmates.com and Friendster.com still exist
– Helped pave way for future social networking sites,
such as Facebook and MySpace
• MySpace’s runaway popularity put social networking
in media spotlight
• MySpace has since lost market share to Facebook
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The Rise and Dominance of
Social Media (continued)
• Social media tools provide numerous benefits to
users, including:
– Ability to express oneself
• Blogging, file sharing, etc.
– Increased voice as consumer
Product comments
Rating systems
– Easy method of staying in touch with friends and
family
– Ease of gathering news and other content
– Star power through file sharing (videos, etc.)
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The Rise and Dominance of
Social Media (continued)
• Social media optimization is marketing strategy by
which companies distribute their content and
information as widely as possible through social
media universe
– Allowing content to be shared and seen by other
sites
– Enabling videos to be embedded in people’s social
networking profiles
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The Rise and Dominance of
Social Media (continued)
Figure 3-4: Through social media optimization this
site allows it content to be shared
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The Rise and Dominance of
Social Media (continued)
• Social media marketing utilizes social media as a
marketing vehicle
• Typically divided into three categories:
– Public relations: Distributes news and information to
interested parties through various social media
outlets
• Well-known bloggers
• Online media outlets
• Feed info into social media groups or fan pages
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The Rise and Dominance of
Social Media (continued)
• Typically divided into three categories (continued):
– Marketing content generation: Deliberate effort of
creating content for marketing companies through
social media
• Relevant
• Interesting
• Links to referenced information, videos, etc.
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The Rise and Dominance of
Social Media (continued)
• Typically divided into three categories (continued):
– Viral messaging: Campaigns built to pique interest
and encourage users to pass a message on to
friends and family via social media tools
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The Rise and Dominance of
Social Media (continued)
• Social media provides numerous benefits to
marketers, including:
– Cost efficiency
• Viral nature of social media reduces distribution costs
• Electronic media eliminates printing, packaging, and
shipping costs
– Broader visibility
– Increased consumer trust, due to people’s ability to
leave honest comments and reviews
– Increased revenue derived from increased trust,
visibility and heightened brand recall
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Who Is Using Social Media
and How?
Figure 3-6: Nearly all teens on the Internet (which is nearly all
teens in the US) create content via social media. Content
creation decreases as age increases
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Who Is Using Social Media
and How? (continued)
• Social media crosses over all age groups, but
usage falls with higher age brackets
• Reading blogs ranks among the highest social
media activity on Web, along with uploading photos
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Who Is Using Social Media
and How? (continued)
SOCIAL ME DIA APPLI CATION
YOUNG AD ULTS
ADULTS
12-29
30 +
READ BLOGS
54%
36%
DOWNLOAD PODCASTS
14%
12%
37%
32%
51%
37%
39%
22%
33%
12%
19%
9%
WRITE AN ON LINE REVIEW FOR A
PRODUCT OR SE RVICE
UPLOAD PHO TOS
UPLOAD TH EIR OWN ARTWORK,
STORIES OR VIDEOS
HAVE A ND POST TO T HEIR OWN
BLOG
CREATE A N AVATAR THAT
INTERACTS W ITH OTHERS
Table 3-1: A breakdown of various social media applications
and the percentage of Internet users in each age group who
have made use of each application at least once.
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Who Is Using Social Media
and How? (continued)
• Understanding how different audiences use various
social media, companies can understand how to
build their strategies most effectively
– 50% of all companies with over 500 employees are
using social media as part of their strategy
– 75% of companies used 500 employees use social
media marketing strategies
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Social Networking Sites: Types and
Audiences
• Numerous types of social networking sites, each
with a different purpose
– Generalist social networks
• Broad-based
• Reach wide audiences
• Have something for everyone regardless of age, sex,
race, or other demographic breakdown
• Allow users to meet new people and stay in touch with
friends, family and associates
• Allow for self expression
– Creatively
– Artistically
– Intellectually
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Social Networking Sites: Types and
Audiences (continued)
A breakdown of a typical Facebook profile and the percentage of
users that use some of the more popular features
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Social Networking Sites: Types and
Audiences (continued)
• Numerous types of social networking sites, each
with a different purpose (continued):
– Generalist social networks (continued)
• Don’t typically generate much content
– Rely on users for content generation
• In order to be successful, require large numbers of
people in order to generate revenue from advertising
– Because so many people are required, there is not
a lot of room for many generalist social networks
(Facebook, MySpace clear leaders)
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Social Networking Sites: Types and
Audiences (continued)
• Numerous types of social networking sites, each
with a different purpose (continued):
– Generalist social networks (continued)
• Marketers note that people who use social networks
display different habits
– Heavy users (top 20%) of generalist social
networks are more likely to visit e-commerce sites
– Leisure-oriented retail sites most popular
»
»
»
»
Music
Books
Movies
Ticket sales
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Social Networking Sites: Types and
Audiences (continued)
Retail Site
Category
Music
Luxury Goods
Apparel
Tickets
Consumer
Electronics
Sports/Outdoor
Software
Books
Movies
Hardware
Total Unique
Visitors (000)
Heavy Social
Networkers (000)
23,985
17,125
61,184
42,893
49,110
6,825
4,531
15,157
10,520
11,714
Heavy Social
Networkers as a %
of Site Visitors
28.5
26.5
24.8
24.5
23.9
29,208
24,132
62,276
27,043
67,449
6,965
5,716
14,700
6,316
15,288
23.8
23.7
23.6
23.4
22.7
Table 3-3: Most popular retail site categories visited by heavy users
of social networks
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Social Networking Sites: Types and
Audiences (continued)
• Numerous types of social networking sites, each
with a different purpose (continued):
– Generalist social networks (continued)
• Marketers often reach people on social networks
through online banner and display advertising
– Because general sites draw such diverse
audiences, sites such as Facebook provide tools
to help marketers reach specific consumers
– Paid-for branded profile pages on sites such as
MySpace, that provide product information and
facilitate conversations abut the brand
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-13: The MySpace brand page for the last Indiana Jones
movie
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Social Networking Sites: Types and
Audiences (continued)
• Numerous types of social networking sites, each
with a different purpose (continued):
– Niche social networks
• Based on a specific interest or topic geared toward
reaching a specific demographic
– Interest and hobbies
– Business
– Dating
– Shopping
– Family and lifestyle
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-14: SkiSpace.com is a social network for avid skiing fans
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-16: LinkedIn is a social network that people use to expand
business connections
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-19: PlentyOfFish.com is a social network created
specifically for dating and making romantic connections
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-20: kaboodle.com is a shopping-based social network that
lets users share information about their experiences with products
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-21: BrandNewDad.com is a social network geared to
allowing new fathers to share parenting experiences
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Social Networking Sites: Types and
Audiences (continued)
• Numerous types of social networking sites, each
with a different purpose (continued):
– Social bookmarking sites
• Allow users to store, organize, and share sites, pages,
and posts that they find interesting and want to share
with others
• Very similar to bookmarks kept on Web browsers
• Made public on bookmarking sites
• Pages are searched and categorized using descriptive
tags
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Social Networking Sites: Types and
Audiences (continued)
Figure 3-22: Digg is a popular social bookmarking site where users
share their favorite pages and sites
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Summary
• Social media is the umbrella term for a wide variety
of tools that are used to bring online communities
together, including blogs, RSS feeds, Wikis, social
networks, and more
• Social media allows users to share thoughts,
opinions and experiences
• Marketers use social media as an avenue for
reaching consumers cost effectively
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Summary (continued)
• Although users from every age group are part of
various social networks, younger age groups use
these sites more frequently
• Heavy users of social networks are more likely to
visit online retail sites
• Social networks typically offer a number of different
social media tools for their members to use,
including blogs, file sharing, and ratings
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Summary (continued)
• There are many different types of social networks:
– Generalist social networks appeal to a wide
audience and require large numbers of members to
generate advertising revenue
– Niche networks focus on bringing people together
based on a specific topic
– Social bookmarking sites let users share organize
and comment on their favorite Web pages and sites
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