18/02/2010

The Web, B-to-B & the power of 2.0

International survey results

Paris, 18th of February 2010

18/02/2010 2

Web 2.0 is a tsunami…

Facebook celebrating 6th birthday with 400 millionmonth active users worldwide – Mashable

More than 600 millions will be logged onto social network by 2012 - Matthew Fraser & Soumitra Dutta

Not using social media has dropped from 43% now to only 9% within Fortune 500 companies - E-Marketers

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Web 2.0 impact on business

By 2011, 1/3 of purchases (online and offline) will be influenced by Web communities – Gartner

80% of US companies are using Linkedin as main tool for hiring people–Forrester

UGC (User Generated Content) represents 25% of search results for the worlds top 20 largest brandsare links – Socialnomics

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Social media are dramatically reshaping relationships…

Something should be happening in BtoB…? With some specificities… ?

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112 CompaniesAccor hotels, Air Liquide Industrie, American standard brands, APEM, Aster Group, Auto Clover CSC, Belin Stenbeck AB, BNP Paribas Assurance, Bostik, Bouygues Telecom, Burgmann Industries, CALS, Card Crawford and ABS, CBRE, CDW, Cegedim dc, CEMA AG, Cessna, Coperion GmbH, Corus Colors, Dassault Systèmes, Dell France, DHL Global Mail, DORMA, Dow AgroSciencesLLC, Eastman Chemical Company, EDF Pro, Electrabel, Elekta, EuroShell, Facom, FirstAssist Legal Protection, Forensic Science Service, GDF Suez, Generali, Groupama, Groupe Nmpp, Guardian, Henkel AG, HK Systems, HL Display, Höganäs AB, Hydro International, Ibstock, INEO GDF Suez, INVIVO, John Deere France, John Deere US, JS Corporation, JunjinCSM, KM ink, Koelnmesse GmbH, KWS SAAT AG, Lafarge, LCL, LG CNS, Manitou, Mannheimer Morgen, Medi-Future, Merial, Mölnlycke Healthcare, Mono Pumps Ltd, Munters AB, NACCO Materials Handling Group, Natixis Assurances, NatureTech, NCC, Nexans France, Novell Gmbh, Office Depot, PBS Software, Pilkington's Tiles, Pixmania Pro, Puratos Group, Saab, Sage Software, Same Deutz Fahr, Samkwang Glass, Sandvik Coromant, SATA, Scafftag, SD Worx, Securitas, Seifert & Partners, SGD, Sindoricoh, SK Chemicals, SKF Lubrication Systems Germany AG, Sodexo, Solvay Pharma, SOPEXA, Spacesaver Corporation, Streamson, Thales Group, Trelleborg Offshore, TTS GmbH, TÜV SÜD AG, Veolia, Werner Enterprises, Weg, Merial, Gerdau, Scotia Homes

International BtoB survey

Benchmark Group & BBN

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50% increase to be expected in BtoB digital budget

Digital budget compared to total marketing and communication budget

Source: Benchmark Group / Munier-BBN – October 2009

9%

12%14%

7%

13%

10%

15%

12% 12%

0%

5%

10%

15%

20%

2008 2009 2010 (f)

Total France Foreign countries

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The marketing & communication mix is changing

“Please rate the following media used in promoting your brand in 2009”…

More and more Unchanged Less and less Abandoned in 2009 Unused2% 25% 17% 55%

6% 40% 28% 23%

10% 44% 30% 6% 9%

10% 48% 34% 3%5%

22% 44% 29% 5%

53% 13% 32%

75% 20%

0% 20% 40% 60% 80% 100%

Broadcast (radio, TV…)

Sponsoring, patronage…

Newspapers andmagazines

Printed mailing

Professional events(seminars, tradeshows…)

Web 2.0 tools (socialmedia, blogs…)

Internet (display, adwords…)

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Economic crisis is boosting the decision for mark/com activities with easy ROI measurement

“What is the impact of the current economic slow down on your B to B communication strategy?”

We drive web 2.0 marketing in the context of limited

budget13%

The economic slow down is

accelerating a process that

already started years ago

23%

Opportunity to drive innovative and differentiating

campaigns 9%

Choose media with easy ROI

assesment29%

No impact yet26%

18/02/2010 9Source: Benchmark Group / Munier-BBN – October 2009

Web 2.0: BtoB marketers are jumping on the band wagon

In communicating your brand, what interactive platforms do you use or plan to use?

2% 98%

7% 20% 73%

12% 5% 83%

15% 17% 68%

20% 5% 76%

22% 12% 66%

32% 27% 41%

34% 24% 41%

0% 20% 40% 60% 80% 100%

Conduct specialoperations on Second Life

Product evaluationplatform

Web TV

Make influent bloggerstest my products

Micro-blogging actions

Consumer voicing theiropinions on blogs and

social media

Information sharingcommunities

Broadcast of contents onuser-generated content

platform

Yes, already No, but planned for late 2009/10 Not planned

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Videocast on YouTube

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Sodexo Careers events on flickr

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Community management: blog, forum

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Community management: blog, forum

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Social media presence

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Professional networks: Fedex ad on LinkedIn

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Microblogging

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Community platforms

18/02/2010 18Source: Benchmark Group / Munier-BBN – October 2009

Different perception of constraints between France and ROW…

What are the main difficulties in setting interactive services using web 2.0 solutions?

32%32%

45%19%

51%13%

49%26%

45%71%

0% 20% 40% 60% 80%

Management of onlinereputation

Development cost

Risk of poor qualitycontent

Lack of expertise

Animation/moderatingcost

France

Etranger

18/02/2010 19Source: Benchmark Group / Munier-BBN – October 2009

Maturity varies between Services and IndustryWhat are the main difficulties in setting interactive services using web 2.0 solutions?

29%38%

46%27%

29%46%

29%43%

59%51%

0% 20% 40% 60% 80%

Management of onlinereputation

Development cost

Risk of poor qualitycontent

Lack of expertise

Animation/moderatingcost

Services

Industry

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BtoB marketers do not fully appreciate ye the benefits of using web 2.0 tools & techniques

Source: Benchmark Group / Munier-BBN – October 2009

15%

18%

19%

22%

38%

40%

50%

53%

55%

63%

64%

0% 20% 40% 60% 80%

Identify new concepts

Training

Facilitate customersdecision

Extend messages on tomobile devices

Collect insights

Provide users withcustomised alerts

Create dialog betweenbrand and clients

Promote innovative brandimage

Build customer loyalty

Increase website traffic

Improve brand image

“Why do you use or plan to use Web 2.0 solutions?”

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E-reputation : a major issue for BtoB companies

“How do you currently manage online consumers opinions”

11% 29% 59%

19% 29% 52%

46% 19% 35%

0% 20% 40% 60% 80% 100%

Digital influence (3)

Brand community (2)

e-reputation (1)

Currently used Planned for late 2010 Not planned for now

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Three major trends for web 2.0 in BtoB marketing

The adoption of web 2.0 tools will speed up in 2010

The perception of web 2.0 is moving from low cost marketing to significant (but necessary) investment with substantial ROI

BtoB companies need to fully integrate web 2.0 in their business model in order to harvest its full potential

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How should brands and marketers prepare for the

future?

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BtoB dilemma

Harvest benefits of collective intelligence

Maintain tight organisational controls

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To harvest the benefit of social media, Marketers will have to reinvent themselves

Marketing strategy• Long-term relationship and transparency with your customers

• Value content & personalization vs intrusive advertising

• Earned media vs paid media

• Real time / iteration vs yearly marketing planning

Marketing resources • Balance online and offline budget

• Allocate money to produce value content

• Hire community managers

• Change your way to consider market survey: use online communities to generate insights and test products or services concepts

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Regarding control, companies have to adapt…

E-reputation management strategy• e-reputation measurement tool is not enough

• Companies should plan specific actions to manage bad buzz and get more of positive buzz

Social media guidelines • Employees have major responsibilities in the e-reputation management

• Companies should train them to use social media without damaging the brand image

• See Coca Cola and DELL online social media principles examples

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The B2B website of the future

Capable of adapting content and experiences to reflect customer’s preferences

Serve dynamically generated images and messages, based on user’s online behavior and user profile.

This will allow communication to become highly personal

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So, to conclude…

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In ten years, most of us will communicate directly with consumers, employees and the broader community through blogs…If you’re not part of the conversation, others will speak on your behalf.

Jonathan Schwartz, president of Sun Microsystems

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Two last words…

Thank you!