1. SOCIAL MEDIA: OPPORTUNITIES AND CHALLENGES JCG NEW MEDIA

2. Topics  Introduction  Defining social media  The Players  Media Opportunities  Types of opportunities  Early testing  Challenges  Summary and Questions

3. Introduction  What is Social Media?  Internet- and mobile-based tools for sharing and discussing information among human beings.  Activities that integrate Technology Telecommunications Social interaction Building shared experiences  What is it really?  A much easier way to blog  A more effective way to share  It can be insane!

4. Introduction  Does Anyone Else Find This Ironic?

5. Introduction  Who are the Major Players?  MySpace  Facebook  LinkedIn  Friendster  Bebo  Orkut  SecondLife  Flickr  Twitter

6. Facebook  300 Million Users  Approximately 90 million in the U.S.  50% log in daily  Fastest growing demographic is 35+  Average user has 130 friends  2 Billion pictures are uploaded to the site every month  What is it really?  A much easier way to blog  A more effective way to share

7. Facebook

8. LinkedIn  Corporate/Professional Networking  45 Million Professionals  Reaching Out To Other Professionals  Maintain, renew contacts

9. LinkedIn

10. My Space

11. Bebo

12. Friendster Loop

13. Media Opportunities  What are the Primary Media Opportunities?  Traditional Ads on Networking Sites  Social Currency  Profiles on Networking Sites  Creating Your Own Network

14. Traditional Ads  Text or Banner ads served up on pages, usually at the sides, top or bottom  Pros Can be extremely targeted to the content on the page Can be purchased on a CPC basis  Cons Cannot control other content on the page  Sometimes considered to be ‘traditional’ marketing, and not ‘social media marketing’

15. Facebook Testing  Globe Life Juvenile Insurance  Tens of Thousands of Impressions  Hundreds of Clicks  Tens of Applications  Didn’t pay out  Prudential Term Life  Strong initial performance  Failed to meet financial hurdles

16. Traditional Ads

21. Social Currency  Creating Virtual Currency  Get rewarded for online activities Sign up for an application/service Play a game  Use the currency to “buy” virtual gifts, services  Virtual Currency = Real Consumer Data  Essentially co-registration data  Or worse yet “incented” data  Explosive Revenue Growth—For Now

22. Geico Facebook Page

23. State Farm Facebook Page

24. Allstate Facebook—Sort of

25. Creating a Profile  Companies can join networks as ‘members’ and create profile to represent either the company or a product or service  Pros Direct communication and connection with consumers possible  Cons More about brand identity than selling something concrete Controlling image becomes full time job

26. Creating a Network  Building a network of your own which users can join  Pros Direct feedback from and interaction with consumers, like a focus group  Cons Costly technology Staff necessary to manage it How do you measure ROI?

27. Challenges

28.  Cost Per Click Media Not Yet Viable  Display advertising has always been challenging Conversion is very low  Competition from softer offers and brand advertisers drives the CPC price up

29. Challenges  Trying Very Hard To Monetize The Environment  Social currency = “incented offers”  Co-Registration  Media Companies/Agencies Trying To Be Relevant  Teach you  Manage the process  Multi-platform management

30. Summary