The future of social media and its impact on businesses
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The Future of Social Media and its impact on Businesses Luca Penati • SMU - Singapore, November 2010
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This is the deck I used for my talk at SMU in Singapore on November 9, 2010
Transcript of The future of social media and its impact on businesses
The Future of Social Media and its impact on Businesses
Luca Penati • SMU - Singapore, November 2010
Should we care?
Teatro San Babila’s story
Companies with the highest level of social media activity grew sales by +18%
Companies with the least presenceshowed a decline of -6%
(Wetpaint/Altimeter Study)
Before we talk about the future, let’s take a look at the past
Remember 2000?
was 1 and half years old
Trek Technology launched the first USB flash drive
Globally, people who have on-line access have digital sources as their number one media channel.
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0
10
20
30
40
50
60
70
Internet TV Radio Newspapers
% of online users
Source: TNS Digital Life
Bringing Digital to
Life
11
Moving from “Dialing In” to “Always On”
•
% accessing daily
Source: TNS Digital Life / S5: How often access / i10: Usage of offline media / Base: All respondents 48804
Goodbye email, hello social networking
In rapid growth markets such as Latin America, the Middle East and China, the average time spent, per week, on social
networking is 5.2hours compared to only
4 hours on email.
Social Networks
Source: TNS Digital Life
Online consumers in rapid growth markets have overtaken mature markets in terms of engaging with digital activities
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0
10
20
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40
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Egypt China Finland Japan
Source: TNS Digital Life
And what about Singapore?
16
% engaged in social networking
I1. Frequency of Social Networking and I2.0.1.Time spent on digital
activities -Social Networking & Connecting (hours)
Base: All respondents, n=48804 (Global); n=1002 (Singapore); n=602
(Vietnam
4657 49
8694 95
Daily Ever
Mean
number of
hours per
week
4.6 7.1
Most users in Singapore have tried Social Networking and they spend time on this activity.
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A sizeable portion of Singaporean Internet users turn to mobile to connect.
85
4325 26
% using access point in last four weeks
PC at home PC at work / schoolPC at internet
café / friendsMobile
S4: Internet access point in last 4 weeks for leisure
Base: All respondents, n=48804 (Global); n=1002 (Singapore);
n=602 (Vietnam)
95
4924
40
18
% engaged in social networking daily via PC and Mobile
I1. Frequency of Social Networking: PC and Mobile
Base for PC n=47832 (Global); n=993 (Singapore); n=599 (Vietnam)
Base for Mobile n=12802 (Global); n=440 (Singapore); n=157 (Vietnam)
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4835
4833
PC Mobile
Singaporeans turn to their mobile device nearly as frequently as their PC for social networking.
19
Average Number of Friends in Social Network
N11. Number of friends connected to in social networks
Base: n=40819 (Global); n=942 (Singapore); n=574 (Vietnam)
Social Networkers in Singapore have a large number of online friends, higher than the global average.
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How can we predict what’s going to happen in the next 10 years in the business environment?
We just can’t.
What we can do…It’s to look at the key drivers…
Enterprise 2.0 Mobile
Content & Communities
Crowdsourcing
Enterprise 2.0 is "the use of emergent social software platforms within companies, or between companies and their partners or customers".
Andrew McAfee, author of Enterprise 2.0
Customers.
From talking at to engagement.
The new generation expects to use social media tools and new technologies at work
“whether you prefer or dislike Apple technologies and regardless of whether you believe they belong within enterprise environments, they’re coming.”
TechRepublic
Social Enterprise
Mobile
Content & Communities
Crowdsourcing
Growth in social networking has been fuelled by the transition from PC to mobile.
3.1
2.2
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0.5
1
1.5
2
2.5
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3.5
Social networking Email
# of hours mobile users spend per week
Source: TNS Digital Life
Mobile Internet is the last form of access adopted in developed markets and the first form of access in developing markets
% online users accessing internet from mobile in last four weeks
Source: TNS Digital Life / S4: Internet access point in last 4 weeks for leisure / Base: All respondents, n=48804
Thanks to the iPhone 3G and, to a lesser extent, Google’s Android phone,
millions of people are now walking around with a gizmo in their pocket that
not only knows where they are but also plugs into the Internet to share
that info, merge it with online databases, and find out what – and who – is
in the immediate vicinity…Simply put, location changes everything. This
one input – our coordinates – has the potential to change all the outputs.
Where we shop, who we talk to, what we read, what we search for, where
we go – they all change once we merge location and the Web.
– Mathew Honan, WIRED magazine, 1/19/09
Bringing Digital to
Life
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Brand experiences will be extended by blending physical space and
digital content.
Enterprise 2.0 Mobile
Content & Communities
Crowdsourcing
Every company is a media company.
The global online video community will include more than 1 billion users by the end of 2010.
Approximately 70% of global online consumers watch video online
Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010
Mobile Video is already used by 11% of global online consumers: penetration is highest in Asia-Pacific and among consumers in their late 20s.
Source‖ ―How People Watch – A Global Nielsen Consumer Report.‖, August 2010
More netizens view online video than visiting social networks
87% of Singapore’s Internet population viewed video online in April, 2010, with an average viewer consuming 10.5 hours of video.
Internet users watched 320 million videos in
April, 2010.
Videos(000)
Share of Videos
Total Audience 319,812 100.0
Google Sites 203,999 63.8
Facebook.com 10,180 3.2
Tudou Sites 4,459 1.4
Microsoft Sites 2,690 0.8
Dailymotion.com
2,628 0.8
PPLive Inc. 1,290 0.4
Metacafe 1,204 0.4
Turner Network 1,133 0.4
Sohu.com Inc 1,062 0.3
Yahoo! Sites 865 0.3
Source: comScore Vedio Metrix
The Emotional Power of Storytelling
But tell me a story and it will
live in my heart forever…
Tell me a fact and I’ll learn.
Left Brain
• Food shortages in Malawi are affecting more than 3 million children.
• In Zambia, severe rainfall deficits have resulted in a 42% drop in maize production from 2000. As a result, an estimated 3 million Zambians face hunger.
• Four million Angolans — one third of the population—have been forced to flee their homes.
• More than 11 million people in Ethiopia need immediate food assistance.
Rokia, a 7-month-old girl from Mali, Africa, is desperately poor and faces a threat of severe hunger or even starvation. Her life will be changed for the better as a result of your financial gift.
The Connected Agency
“Over the next five years, traditional agencies will make this shift; they will start by connecting with consumer communities and will eventually become an integral part of them.”
Mary Beth Kemp and Peter Kim, Forrester
Enterprise 2.0 Mobile
Content & Communities
Crowdsourcing
Crowdsourcing is the act of outsourcing tasks, traditionally performed by an employee or contractor, to a large group of people or community (a crowd), through an open call.
“Why Crowdsourcing
is the future of
EVERYTHING”
Ross Dawson
Wikipedia, the free encyclopedia that anyone can edit.
Crowdsourcing
Organizations
Start-ups
Media
Funding
Social Change
Science
Art
Environment
Health
Crime
To Recap: 4 Key Drivers
Enterprise 2.0 Mobile
Content & Communities
Crowdsourcing
And finally… what are the implications?
What businesses must do?
• Adapt, change fast, embrace openness.
• Review their business processes.
• Understand they cannot have control. Ownership
will matter a lot of less Mind share and market
share more
Thank you!
Luca PenatiGlobal MD, Technology Practice
Ogilvy PR Worldwide
Email: [email protected]: @lucapenati
