an industry overview on social media
TRANSCRIPT
An Industry Overview On
by: Siddharth Gulati
What is ?• Interaction among people
• Create, share, and exchange information and
ideas
• Individuals and communities share,
co-create, discuss, and modify user-generated
content
facebook now allows anyone who claims to be at
least 13 years old to become a registered user
of the website.
Founded in Feb, 2004 by
Mark
Zuckerberg
First Name
Last Name
Headquarters Menlo Park, CA, USA
Area Served Worldwide ‘05 - Present
Revenue $5.1 Bn
Site Ranking Alexa - 2
Active Users 1.15 Bn
Employees 5,299
Subsidiaries Instagram
Competitors
2012’ -> The company went public on May 18, 2012,
opening on the NASDAQ with shares trading at $42.05.
- #1 Social Networking Site
http://www.crunchbase.com/company/facebook
5 Cs OF Facebook
The 5C Classification of Facebook is done
under the following heads of marketing mix:
Customer Company
Competition Collaborators
Context
CUSTOMER
Demographics
Lifestyle
Behaviour
Geographical Location
Company
• The Facebook page of a company can teach us a lot about the target audience.
• Humanize the company.
• Build a community on the Company’s Facebook page.
• Facebook is good for SEO (search engine optimization)
Benefits of having Facebook Profile
Finding People Staying Connected
PromotionGetting
Together
Sharing
SWOT Ana l ys i s
Strength
Creates Value for Marketers
Facebook offers marketers access to a vast consumer base
Offer marketers the ability to include “social context ” with their marketing messages
Creates Value for Users
Connect and share with your friends everywhere, 2nd most successful mobile app
Discover Learn and Express yourself
Holds the largest market share currently.
Provides platform for millions of applications including Zynga,
1.15 billion monthly active users (MAUs) as of December 31, 2013
Weakness
Technological and Political Issues
Facebook was hit by technological glitches due to which the site was down for a considerable amount of time.
Reported in Mirror 21st October.
Problems faced with posting of antisocial and antireligious content. Facebook also faces bans and
sanctions in countries like Syria, Iran, China .
Financial Issues
Facebook’s catastrophe of an initial public offering — the stock reached a new low closing at $18.06.three months after the offering, the company lost more than $50 billion in market value.
Safety
Liabilities regarding bugs and problems that users face when operating the website
Plagued by Privacy Issues and fake accounts can be created easily
dealbook.nytimes.com
Opportunities
Advertising is and will be an opportunisticapproach in reaching target markets globally. Promotional offers to draw customers.
ConsumerBehaviour is analysed for business. Business can collect user data through polls and surveys.
MobileAdvertising is the segment that can help in generating more cash flow. Enable developers to build great social productsusing the facebookplatform.
Threats
• Existing Competitors like Twitter, Google+, Tumblr, MySpace.
• New Entrants can enter into the industry very easily.
• Companies that develop applications, particularly mobile applications, that replicate discrete Capabilities provided, such as photo-sharing, messaging, and micro-blogging
Competitors
• Spamming
• Photos can be downloaded easily .
• Privacy can be breached.
Safety
Competitors
• Google+ (300mn+), twitter (883mn+), Orkut , MySapce.
• Youtube(65 hours/minute), Quora, Tumblr, Daily Motion, Wikipedia.
• Traditional players in optimizing advertising campaigns.
Google, Yahoo
Facebook Annual Report 2012-13
Collaborators
• Advertising Agencies
• Social Media managing agencies
• Application Developers
• Partnerships , Acquisition and Mergers : Instagram, tagtile, Atlas, Friendster, Octazen, Lightbox, Face.com and many more.
Pest Analysis
Political Economic Social Tech
Removal of Anti-social and anti religious content
Greater affluence leading to more users
Viral online Potential marketing influence is radically increasing
Online Privacy Does not require elaborate budget
On Issues of allegations like; Treatment of its users
Increased broadband speed and penetration
Ownership of social media content
Free of charge content Corruption Faster access to information than ever before
Ban on Fake accounts No revenue for companies, more of brand equity
Scams Better online advertising
Monitoring of marketing done by clients of social media companies
Women Security
Child Safety
Hate Speech
*There are no strong policies by government till now for social media.
Porter’s Five Forces
Intense Rivalry: There's a large pool of sites fuelled by VC monies, intense competition
New Entrants: Low barriers , low loyalty, low risks, easy to challenge established business, almost no sales force required
Suppliers: Independent application, widgets, games developers, advertising agencies
Substitutes: Any Social media service would be a substitute, and internet
site with large user bases like Amazon, Zomato,
flipkart, etc may create a networking component.
Buyer Power: No switching costs, users can maintain ‘n’ number of accounts, very little diff. in service
provided
Different Products under Social Media
NetworkPersonnel, pro, mobile, tools
ShareVideos, Music, Photos, Links
PublishBlog, Microblog,
Stream
Stakeholder Analysis
Social Media
App Develope
rs Content Creaters
B2C/B2CCompanie
s
Game Developers
Social Media
Agencies
Mobile Companie
s
Mobile Companies
Web designers
Laptop Companie
s
Cyber Cafes
PR firms
Ad agencies
Internet users
Home based
businesses
Start-Ups
Bloggers
Job Seekers
E-Commerce companie
s
Surveying
Companies
Value Creation
Website Infrastructure
Data Center’s
Softwares
Scripts
Content
IP Interconnection
Network Services
Network Hardware technologies
Networking Cables
UX
Procurement
Human Resource
https://www.facebook.com/careers/teams/people
250,000 Job Applications in 2012
Memcached
HipHop for PHP
Haystack
BigPipe
Varnish
Scribe
Hadoop and Hive
Technology
http://royal.pingdom.com/2010/06/18/the-software-behind-facebook/
MemcachedCaching layer between the web servers and MySQL servers because accessing databases is relatively slow.
HipHop for PHPPHP is a script language that runs natively slow when compared with the code that runs on server.
HaystackHigh-performance storage/retrieval system.
BigPipeDynamic web page serving system. Each section is served into pagelets.
CassandraDistributed storage system with no single point of failure. Facebook uses it for its Inbox search.
ScribeFlexible logging system that Facebookuses for a multitude of purposes internally. To handle logging at the scale of Facebook, and automatically handles new logging categories
HadoopHadoop is used for data analysis.
ThriftThis is an internally developed cross-language framework that ties all different languages(PHP, Erlang, Java and C++) together, making it possible for them to talk to each other.
http://royal.pingdom.com/2010/06/18/the-software-behind-facebook/
fb Advertising Model
Segmentation - How to Target Your Audience ?
Ads Optimization – Tell the Right Story
Scheduling Your Campaigns
Managing Your Budget WiselyBid Size Affect Click-Through Rate - The quality of clicks is affected by who see your ads.
Low Max Bid -> High FB users (less receptive to ads) -> Low Quality Users -> -ve Click Through Rate
Tracking Your Results
http://www.qwaya.com/facebook-ads/facebook-ad-marketing-strategies-and-tips
Infrastructure
Problems With Present Social Media Sites
• Twitter should introduce #Chatting!
•Messages wipes off while sending direct messages
•Phone app Needs to be optimized for 2G networks, currently very heavy•Lots and Lots of Spam on almost all platforms.
•Blocked!
•Bulk messaging option not available.
•Group chats, a big no no!
•Repeated content.
•News feed of friends getting missed because of sponsored feed.
•Blue Theme Needs To be revamped, users are getting bored.
•High volume of advertising
•Very few people in India knows how to use twitter.
•Facebook chat stickers creating mess, difficult to locate.
•Problem in tweeting from mobile app, it almost never tweets on IOS.
•A more better API integration with mobile phones.
•Fake Accounts
The
Black
Revenue Model Of Different
Social Media Sites
Devices
•Desktop
•Mobile
•Tablets
Platforms
•Browsers
•Application
Users
• Increasing internet penetration
• Increasing spend among age groups
•Enlarging geographical reach
Facebookfeatures
•Personal info [status, msgs, pics etc]
• Innovative ways of presenting these [ timeline, graph search]
•Add-ons: groups, events, pages, LIKE!
Behaviors
• Increasing user engagement
•More user generated content
•More friends
•More time spent on facebook
•Enlarged dev. ecosystem
Business Model
•Advertising based (CPI OR CPC)
•New feed ads
•Sponsored stories (for mobiles)
•Credits in games i.e. virtual currency
•Gifts
$Q2 ‘13: $1.82bn
88% from ads (~41% mobile)2013: 1.15 bn Active users
51% growth in mobile users (819mn)
facebook moves into Big Data to help
advertisers measure ROI
“Connecting the DOTS”
Problem: Proving that ads can spur salesSolution: follow people going to grocery store, car stores etc (this doesn’t means fb is stalking you!). Basically, fb is purchasing data from Datalogix to track the purchases of its users by which it is trying to make a connection b/w its advertising and what users want to buy. Fb is matching this information with the specific users. It relies on email addresses and other information people submit when they open a fb account. Results: 70% of the time, every $ an advertiser spends on Facebook gives it $3 back in incremental sales.
How to advertise on facebook?
Create Your Audience
People with precise interest of food
Create Your Audience
Account and Campaign
Facebook launched FBX - the first-ever social media
real-time bidding (RTB) ad exchange - in June 2012 to let
advertisers buy Facebook ad inventory that retargets users based on their past online browsing history.
It's impossible to target someone who is interested in living room furniturewith personalized ads unless they have likes relating to furniture brands.
Twitter revenue Model
Promoted/Sponsored tweets brings ads into the
stream of real-time conversation.
Promoted tweets appears at the top of twitter search results.These tweets will be real tweets, users can reply,
retweet them, or favourite them. But they will be clearly
labelled as advertising.
Now, what’s the difference b/w Google and twittersponsored result?Promoted tweets must resonate with users*
Users should interact with the promoted tweets* and if
they are not interacting with it ( replying, favoriting,
retweeting), it will disappear.
Censorship???
helps in tracking conversations and measuring campaign results via the web or mobile devices.
This lets you keep to a consistent social media schedule all week long without
Social Oomph will auto-follow any new follower of yours on Twitterif you like, which could save you a ton of time if you normally like toreciprocate follows.
manage your Twitter feeds with powerful filters to focus on what matters.
watch real-time conversation on social media in order to predict the
best times for publishing content to capture peak attention from
target audiences.
Influencer Analysis and
Trend Analysis
Global companies are targeting High Profile Bloggers,
Journalists and Celebrities, and are increasingly trying to reach
these influencers for endorsement and to drive word -of-mouth about the brand.
How to identify influencer?
Influencers can be identified with the help certain social media tools like IBM’s COSMOS, Klout, Kred and PeerIndex.
These tools measures your influence based on your ability to produce action from your activity.All of the above can scrape data from more social networks including Foursquare, YouTube
and Instagram.
More over these tools also determines the topics influencers are most influential for, based on analysing the type of content you produce and others’ engagement.
The CMO’s Guide to the
Social Landscape
This tool is used to find the most appropriate social media site based on your marketing goals.
“Traffic to Your Site” will show you the interactions on the basis of social media
network.
If you are worried about “SEO” then Google+ stats can help you.
Social Mention works as a social media search engine and is a platform
that aggregates user generated content from across the universe into a single stream of information.
Google is an important tool for Social Media
Google trends aanalyzes a portion of Google web searches to compute how many searches have been done for the terms you enter, relative to the total number of searches done on Google over time
Hot Searches reflects what people are searching for on Google today.
It gives you the ability to quickly track followers, tweets and following
metrics for any given Twitter account.
This social media tool is used to track the week-over-week progress of our social media campaigns.
Artificial Intelligence Tools for
Social Media• Salorix has developed a new tool called Amplify for tracking
conversations on social media sites.
ai-one inc. by Gnostech is used for monitoring data and gather Intelligence from social media sites. http://www.ai-one.com/tag/social-media/
Last Year, Something
Profound Happened…
The number of smartphones sold exceeded number of PC’s.
Mobile advertising spending in the U.S. totaled $3 billion in the first half of 2013, up from $1.2 billion.
The mobile audience is roughly equal to Internet users on
laptops and desktops now.
Mobile CPM(cost per thousands) rates are the second-lowest among all advertising mediums.
And this is naturally
changing everything…
Where are we in the mobile phone revolution?We’re in early stage!
2013
1 B+
5.6 B
2014 Expectations
1.75B +
Who is going to win the
platform war?
As of now iOS and Android are ruling the market.
And actually Android vs iOSis not as close as it looks.
Developers still prefer iOS!
Why?
1: Android has fragmentation problems.
2: Apple generates the most mobile commerce traffic
3: Apple dominates app revenue4: Apple has wealthier users
5: Apple dominates the number of new
project starts
2: And may be these developers are loosing interest in Android.
So, who will rule the mobile platform?
Android?Microsoft?
Some new script?OR
Apple?
We don’t know yet!
What all people do on mobile?
They do almost everything today on mobile.
They consume content…
They look at ads.
People listen to music, use fb and twitter more!
People do shop from mobile too
30% of Gilt’s revenue was from mobile sales- Says Boston Globe
38% of US consumers have used smartphones to buy products or services- Says comScore
What happens when
we combine mobile,
fun, social and photos.
Apps are now going a $10 bn market, growing 100% every year!
Angry Birds has 600 mn+ downloads
Instagram launched 2.2 years ago and presently it has more than 90mn MAU
An example of one of
the most viral app till
now!
•In the first five weeks after its launching, the game was downloaded
20 million times.
•Fifty days after its release, it had been downloaded
50 million times
•Within 6 weeks after its launch total number of drawings touched
2 billion
• And finally Zynga bought it in
$200mn
Draw something launched in feb’12, a year ago
Global internet users will double over the next few years and most of them will be on MOBILE!
