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"User-Generated Content: What Happens When People Have the Power?" eMarketer Presentation, July 2007.
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| April 11, 2023 1
User-Generated Content
What Happens When People Have the Power?
Paul VernaSenior Analyst, Digital Media & Entertainment
| April 11, 2023 2
User-Generated ContentWhat Happens When People Have the Power?
Who we are What is user-generated content? What does UGC mean for brand marketers? Who are the creators – and consumers – of
UGC? Case studies UGC FAQ:
Is UGC a fad? Can it be monetized?
How much ad revenue will UGC sites realize?
Tips & takeways Q&A
| April 11, 2023 3
eMarketer Sees and Analyzes Information from Multiple
Sources
| April 11, 2023 4
eMarketer Sees and Analyzes Information from Multiple
Sources30,000-foot
view
| April 11, 2023 5
What is user-generated content?
User-generated content (UGC), also known as Consumer Generated Media, refers to various kinds of media content that are produced by end-users (as opposed to traditional media producers such as professional writers, publishers, journalists, licensed broadcasters and production companies).
source: Wikipedia
?
| April 11, 2023 6
What is user-generated content?
| April 11, 2023 7
What is user-generated content?
grainy poorly composed
unevenly lit
unprofessional
uninteresting
So … why do we care?
1,257,245 views
5,803 comments
“Favorited” 4,395 times
| April 11, 2023 8
What is user-generated content?
MySpace had an 80% market share
of visits among social networking sites in the US in February 2007
(Hitwise)
Projected US ad spending on MySpace:
2007: $525M2008: $820M
(eMarketer, May 2007)
“God knows what we’re going to do with MySpace.”-- Rupert Murdoch, chairman, News Corp., Wired, July 2006
| April 11, 2023 9
What is user-generated content?
It was also the top Web site in the UK featuring UGC in July 2006 -- ahead of MySpace and YouTube (comScore Media Metrix)
Wikipedia was the top education/reference Web site in the US, ranked by visits, in March 2007 (Hitwise)
| April 11, 2023 10
What is user-generated content?
| April 11, 2023 11
What is user-generated content?
Photobucket is the leader in photo sharing, with 40% of the
US market, by visits (Hitwise)
Photobucket’s projected 2007 ad revenues = $25M
(Photobucket data)
MySpace acquired
Photobucket for $250M
| April 11, 2023 12
What is user-generated content?
officemax.com – “Elf Yourself”
36 million visits
11 million created and e-
mailed worldwide
2 million Google inquiries
peak visitor rate:11 visitors per
second -- or 950,000+ per
day
20% increase in online traffic
during holiday period
$2.5M in “free” media -- Good
Morning America, USA Today, MSNBC, VH1, Entertainment
Weekly
| April 11, 2023 13
“One of the most important results of [the]
viral push was that it held the interest of consumers, most of
whom spent six to nine minutes playing with the make-your-own monkey
emails.”-- Wall Street Journal, 12/22/06
What is user-generated content?
careerbuilder.com, “Monk-e-mail”
80 million Monk-E-Mails were played in
2006
careerbuilder.com site traffic
rose by 34% in 2006
“One of the most important results of [the]
viral push was that it held the interest of consumers, most of
whom spent six to nine minutes playing with the make-your-own monkey
emails.”-- Wall Street Journal, 12/22/06
| April 11, 2023 14
What drives the UGC revolution?
?Democratization of
contentEasy-to-use
tools
The Internet as a distribution medium
Low cost of entry
“cool” factor
| April 11, 2023 15
UGC “through the ages” ;-)
| April 11, 2023 16
UGC “through the ages” ;-)
| April 11, 2023 17
UGC “through the ages” ;-)
| April 11, 2023 18
UGC “through the ages” ;-)
| April 11, 2023 19
What does this mean to marketers?
?
| April 11, 2023 20
073912
Attitudes of US Advertising Executives toward Advertising on a Blog or User-Generated Content Site, 2006 (% of respondents)
Useful for niche advertising, but will not have an effect on major accounts
User-generatedcontent site
41%
Blog
81%
76%
70%
62%
Note: n=140 advertising industry leadersSource: American Advertising Federation (AAF), “Survey on Digital Media Trends,” June 2006
www.eMarketer.com
Advertisers should exploit the viral marketing opportunities
91%
Concerned about the ability to control brand/product image
Too risky to advertise with due to lack of predictability of the editorial environment
67%
53%
| April 11, 2023 21
0
15
30
45
60
75
90
105
2006 2007 2008 2009 2010 2011
75M
101M
Source: eMarketer, June 2007
Who is consuming UGC in the US?
| April 11, 2023 22
0
50
100
150
200
250
2006 2007 2008 2009 2010 2011
128M
254M
Source: eMarketer, June 2007
Who is consuming UGC worldwide?
| April 11, 2023 23
0
20
40
60
80
100
2006 2007 2008 2009 2010 2011
64M
95M
Source: eMarketer, June 2007
Who is creating UGC in the US?
| April 11, 2023 24
Who is creating UGC in the US?
35% of US Internet users have created and posted
content online-- Pew Internet &
American Life Project
| April 11, 2023 25
Who is creating UGC in the US?
40% of US Internet users
are creating their own user-generated
content-- Deloitte & Touche
USA/Harrison Group
| April 11, 2023 26
0
50
100
150
200
250
2006 2007 2008 2009 2010 2011
118M
238M
Source: eMarketer, June 2007
Who is creating UGC worldwide?
| April 11, 2023 27
Case Study: Mentos/Diet Coke
| April 11, 2023 28
Case Study: Mentos/Diet Coke
Mentos sales increased 15%
following the viral campaign and stayed
5% ahead of benchmarksCoke
sales rose
5%–10% followin
g the Mentos craze
3.5 million hits on eepybird.com
5 million views on revver.com in 6
weeks251 liters of Diet
Coke1,506 Mentos
mintsMarketing support from Coke and
MentosFeatured on Letterman, Today
Show, NPR, WSJ, etc.
| April 11, 2023 29
Case Study: Chevy Tahoe
| April 11, 2023 30
Case Study: Chevy Tahoe“We anticipated that there would be critical
submissions … We knew we were going to get some bad with the good. It’s part of playing in
this space.”-- Chevrolet spokeswoman Melisa Tezanos
Voted No. 4 on CNN Money’s list of the 101 Dumbest
Moments in Business for 2006.
| April 11, 2023 31
Case Study: MasterCard
| April 11, 2023 32
Case Study: MasterCard
| April 11, 2023 33
?Is user-generated content “a
fad”?
My 2¢?
Grainy video of yellow lab puppy
= FAD
Having 2,100 “friends” =
FAD
Living your life through an avatar =
FAD
The power to influence brand perception =
PRICELESSThe power to shape political discourse =
PRICELESSThe power to easily create
and share ideas, songs, photos, videos, films, articles, blog entries,
inventions, etc. =
PRICELESS
| April 11, 2023 34
Is user-generated content “a fad”?
0
15
30
45
60
75
90
105
2006 2007 2008 2009 2010 2011Source: eMarketer, June 2007
75 MILLION can’t be wrong
101 MILLION can’t be wrong
| April 11, 2023 35
Is user-generated content “a fad”?
“User-Generated Content (UGC) Is Not a Fad”
“In our recent online video survey, UGC is the No. 1 and No. 2 most
popular content category among men aged 18-34 and among all
respondents, respectively.”
“UGC now accounts for 13% of total U.S. Internet traffic, up from 0%-1%
in 2004.”
| April 11, 2023 36
?Can UGC be monetized?
| April 11, 2023 37
Can UGC be monetized?
“We believe the answer is ‘Yes.’”
“Text-based UGC (like blogs and social
networks) has been monetized through
paid search.”“In a video-centric broadband world,
targeted video advertisement could be one monetization
mechanism.”
| April 11, 2023 38
US ad revenues at UGC sites
$1B
$4.3B
43% CAGR
Source: eMarketer, June 2007
$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5
2006 2007 2008 2009 2010 2011
| April 11, 2023 39
$0$1$2$3$4$5$6$7$8$9
2006 2007 2008 2009 2010 2011
Worldwide ad revenues at UGC sites
$1.6B
$8.2B
51% CAGR
Source: eMarketer, June 2007
| April 11, 2023 40
Tips & Takeaways
User-generated content is NOT A FAD
Don’t underestimate the size of the audience … or its level of engagement
Provide easy-to-use UGC tools … but don’t lose control of
your brandLet go
HAVE FUN !!
| April 11, 2023 41
Questions? Comments? Feedback?
| April 11, 2023 42
Questions? Comments? Feedback?
To get a copy of this presentation, please drop by with a business card or contact me at:
THANKS!!