Profiting From Social Media

Profiting from Social MediaProducing Content for On Demand MarketsWessex media group. 21.01.09

Email: [email protected] Mobile: +447970727061 Web: trendstream.net Twitter: TomtrendstreamLinkedIn: linkedin.com/in/smithtom

Revolution: Future is open

• Social media is transforming the delivery of content – The controllers of content distribution (e.g bbc, ITV etc)

will die

• Everything will be open– Only barrier is talent, knowledge and hardwork

Opportunity of a lifetime

• The future is in the hands of content creators– consumers, freelancers, production companies

• The future requires broad skills– Production, distribution, writing, community building

I will show you how – focus on video

• Why social media is the future of content distribution• Rules of content in social media• $How to make money$• The pioneers

Me... OPEN FOR BUSINESS

Head of Consumer Futures EMEA Founder of trendstream

•Created worlds largest social media survey to track global trends in usage•Advised clients on social media

•Launched Global Web Index to track global web trends•Advise on future web and social media strategy

•Global media planning and buying agency

•Web consultancy dedicated on understanding global web trends and what they mean

I developed a global Social Media Tracker

• Online market research• 17,500 people in 29 countries

delivering 3 years of trend data• Unique set of data• Measured social media platforms

such as blogging, social networking, video sharing and photo sharing

Next: Global Web Index

• Launching a global web tracking survey that will cover 16 countries to measure usage trends world-wide

• Measuring all aspects of web usage• First wave delivered in June. Test data today from the US

Why social media is the future of content distribution

Social Media. Everyone involved

“Web based media driven by consumer content, community and peer to peer distribution”

BlogsMicro bloggingForumsSocial NetworksWikisVideo sharing sitesPodcastsPhoto sharing sitesContent sharing sites

Access is open

Free broadbandLaptops for £200

HD Video camera for £200 Video on Mobile phones

Social media is exploding globally

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Wave 1 Sep 06 Wave 2 June 07 Wave 3 March 08

% E

ver

Do

ne

Read blogs / weblogs

Start my own blog/ weblog

Leave a comment on a blog site

Upload my photos to a photo sharing site

Upload a video clip to a video sharing site

Watch video clips online

Create a profile on a social network

Social Media adoption over time (waves 1 – 3) Global Average. Source: Universal McCann Social Media Tracker Power to the People

Social media dominates web users lives

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Subscribe to an RSS feed

Upload video clip to video sharing website

Post/write stories for my own blog/ weblog

Download a Podcast

Upload my photos to a photo sharing website

Leave a comment on a blog site

Manage profile on existing social network

Visit a photo sharing website

Share a video clip w ith a friend

Read personal blogs/ weblogs

Visit a friends social network page

Read blogs/ weblogs

Watch video clips online

% Ever Done

Daily Reach

Weekly Reach

Monthly Reach

Global Average. Source: Universal McCann Social Media Tracker Power to the People

Social media impacts everyone

“Samsung Netbook”

Consumer generated

Consumer content more trusted than professional

0 1 2 3 4 5 6 7 8

Celebrity recommendation Television Adverts

Blogs/Weblogs-blog w ritten by people you do not know Peoples w ish/fav lists on retail w ebsites e.g amazon.com

Recommendation in a television programme Comments/view points on social netw ork sites e.g

Readers letters page in a new spaper Blogs/Weblogs- professional blog e.g engadget.com

Shelf information and product displays in store Company/brand Website

Search engine (e.g live.com) Review s w ritten on new s w ebsites e.g guardian.co.uk

New spaper article Magazine article

User review s on an online auction site (e.g ebay.com) Blogs/Weblogs- personal blog w ritten by people you know

Review s on retail/ price comparison w ebs e.g priceline.com Consumers review s on retail sites e.g amazon.com

Instant Messenger conversation w ith a friend/ colleague Emails from a friend/ colleague

Personal recommendations from professionals Personal recommendations from friends/ family/

Least trusted Most trusted

Global Average. Source: Universal McCann When Did We Start Trusting Strangers

Moving to every screen

PC Mobile TV

Not just another marketing channel

Past:

Terrestrial

Cable / Satellite

Radio

Newspaper

CD

DVD

Future:

Web to TV

Web to mobile

Web to e-paper

Web to car

Connected by social platforms

Why it scares the life out of the system

• Consumer in charge• Ultra transparency• Global networks• Open platforms = business models

destroyed

Video online: quickest growth medium in history

Global data. Universal McCann Wave 3 Social Media Tracker

World-wide trend. Fast growing markets lead

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FranceRussiaJapan

USAAustraliaGermany

SwitzerlandCanada

ItalyNetherland

AustriaCzech

DenmarkUK

PakistanIndia

GreeceHong Kong

HungarySouthSpainChina

TaiwanPoland

RomaniaTurkey

BrazilMexico

Philippines

% Ever DoneWatched video online

Universal McCann Wave 3 Social Media Tracker

Becoming up-loaders: USA last week

Watch Share Upload

72% 39% 32%

Source: Trendstream, Global Web Index. Test survey Jan 2009

Not just Youtube


Social networks are now key video platforms

Myspace

Bebo original

Global data. Social Network Users. Universal McCann Wave 3 Social Media Tracker

Viewing outside the site is key to growth

Consumer distributes

How many people did you share it with?


Bloggers are your distribution

190m Worldwide!

29% of bloggers have posted a video clip


Video Podcasts. Slower than on-demand sites

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Japan Italy

Netherlands US

Canada Hungary

France Germany

UK Taiwan

Denmark Australia

Austria Czech

Switzerland Hong Kong

Greece South Korea

Spain Poland

Pakistan India

Russia Romania

Philippines Turkey

Brazil Mexico

China

% Ever DoneDownloaded video podcast


Moving multi-platform: Mobile now for video

79% of iPhone users have watched video clips on their phone VERSUS 22% of Nokia users


Traditional media are responding

Kangeroo – BBC, ITV and Channel 4 joint venture.coming 2009

BUT can’t compete

• They have been successful– Great content

– Cross promotion

– Huge investment

•Future is open•Future is global•Consumer driven •No DRM no rights management

Living room in 2020

•Web will deliver content globally on all screens•What you watch, listen to and read will be shared with friends on a social platform•On-demand will be bigger than live•Consumer generators will be on the same platform as professional

Rules of social content distribution

Not broadcast – you need a long perspective

Trendstream viewing estimates. TV show versus online

A BIG database – a mentality change

• Television expires as soon as it is viewed

• Web content exists forever

• Overnight ratings do not matter in a web world

• Cumulative views do

• TV is a push medium• Web is a pull medium

Longtail - Niche is the future

Trendstream viewing estimates. Viewing audiences longtail

Cable / satellite TV

Web

Instant easy access is everything

• Piracy is about access, not free• Piracy is falling because of social media

– 50% of Youtube views are music videos

– Undermines the need to own

• Make it available, make it easy– Put ‘Heroes’ on the web from day one and

you destroy piracy

Focus on data = gold

• Web video is more valuable because of the data that surrounds it– Who viewed

– How much they viewed

– What else they viewed

– How often they come back

More valuable, because its more targeted

• Watched by people who want to watch it– No passive viewing

– They chose to watch it

– More valuable to advertisers

Be commercial: no line in the future

• The only thing that matters is that its free to access

• Commercial involvement is not an issue• Brands have interesting stories to tell• Great content is great content

Multi-platform

• Content needs to be distributed outside of your website

• Content should be open and free• No restrictions• Use tools

Create community around content

• Communities cluster around content• Community drives viewing, distributes

your content and provides feedback• Community should be external as well

– Youtube channel, Bebo community etc

• Casual community– Blogs, Twitter

No such thing as just a video: multi-dimensional

• You need to blog• Share photos• Invite user contribution

Engineered for search

• Search terms drives most viewing

• Critical how you tag and label content

• Search evolving to look inside the video e.g Blinkx

Welcome to the production company of 2020

•Distributing direct to consumers•Community managers•Blog writers•Global network•Consumer network of creators •Focus on multiple niches•Data experts•Linked to an advertising agency

Recap:

• Long term perspective• Collections of niche• Lifetime content• Build community around content• Distribute on all sites• Broad skillset

How to make money $$!

Think free world economics

•You can not charge upfront to access content online•Build a community and then make money from it•Charge the few, rather than all•Think lifetime content

•Open the back catalogue•Think multiple revenue streams

Advertising has changed

•Sponsorship•Branded content•Product placement•Revenue splits with platforms e.g Youtube and Revver •Social ad networks•Affiliate schemes

•Sell other peoples products

New revenue streams

•Partnerships•E.g travel content to travel agent

•Cross selling•Branded products

•Premium content•Convert 2% of your audience•Rise of micropayments•Sell on iTunes

•Syndication•Sell to portals, networks, mobile networks

The “24” of 2020

•Distributed across all platforms globally•Episodes roll as soon as they’re released•Consumer involved in scripting and production process•Revenue made from sponsorship, product placement, licensing and micro-payments for exclusive content and premium membership

The pioneers

Buck Hollywood

$2,000 Canon camera, a $6 piece of fabric for a backdrop

SMP Films

$20,000 a month from Google partner scheme- Product placement and direct advertising

Diggnation

•185 episodes•Builds personality and community around the site•Product placement and sponsorship

Rocketboom

•Blog TV•Multiplatform•200K daily viewers•Signed distribution deal with Sony

Nike Football

•Nike Football developed 100s of short videos and commercials around their lead stars•Distribute across the social web

BMW Films. The Hire – new life in social media

•Made 2001 and 2002, life before video sharing platforms. •Distributed via website, cinema and DVD giveaways and cover mounts•100m views, 2m website registrations•Imagine distribution today•Lifetime content – BMW still geting return on investment

Go and create!

Get in touch

Email: [email protected] Mobile: +447970727061 Web: trendstream.net Twitter: TomtrendstreamLinkedIn: linkedin.com/in/smithtom

Technology

Profiting From Social Media