social networks in the media industry

1 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

benjamin ruschin | digital head

[email protected] | www.conversations.at

supported by media innovation lab / hubert burda media

social networks in the media industry the strategic imperative


agenda

•  the emerging opportunity •  the status quo •  best practice case study •  the strategic imperative


the emerging business opportunity


the emerging business opportunity

what are the key challenges confronting media providers?


key challenges

•  competing for users‘ time

Source: Nielsen, NetView, June 2011

Germany Ø  facebook users (25 million uniques!) spend an average

of 5 hours/week on facebook


key challenges

•  competing for users‘ time •  unpredictability & constant change •  lack of proven best practices •  difficult to set a strategic direction

–  Sales? Paid content? Ads? Profits? Business model?

Ø how do we deal with this?


how are news media providers approaching social?

operational level


operational level

•  social distribution •  social customer relationship management •  social commerce


social distribution

•  social content posts


social distribution

•  social plugins


social customer relationship management

•  social interaction with customers


social customer relationship management

•  open graph interface


social commerce

•  selling paid content via facebook (apps)


social commerce

•  selling paid content via facebook


how should news media providers approach social?

strategic level


best practice case study

•  “social media for print“ project driven by top level •  strategic in-house driver “media innovation lab“ •  corporate budget to explore social networks •  goal: find viable social business models for print media

–  build sustainable customer relationship through dialog –  strengthen each brand individually

•  individual goals/KPIs for each brand (contextual) •  accountability: each brand has a social champion

responsible for reaching pre-defined KPIs

source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media



•  knowledge transfer: knowledge gained by each magazine/newspaper is crowdsourced and transfered –  monthly “social media meet-up“ => champions get together –  knowledge formalized => handbooks & training

•  attempt to build a core competence in the social domain by learning & institutionalizing the knowledge

•  exploration: mindset geared towards experimenting rather than generating immediate ROI

•  assessment: milestones & KPIs (not financial goals) •  time horizon: long-term (not short-term)




examples




examples campaign

•  facebook campaign: searching for the may covermodel (facebook app)

results •  >8000 applicants •  >34000 voters participated •  fostered engagement & participation •  strengthened customer relationships




examples




examples campaign

•  royal wedding: facebook & twitter campaign – regular updates posted

results •  print sales 51% above the average

(highest sales since 2003) •  web traffic from facebook & twitter

increased seven-fold!



the strategic imperative

•  put social on the top-level agenda (CEO‘s back-up) •  financial resources: designated budget for social

(corporate innovation fund) •  people: carefully selected champions & innovators •  time horizon: long-term (not short-term) •  activities: exploratory (not revenue-generating) •  assessment: milestones (vs. short-term ROI) •  goals: find viable business models within timeframe

(strategic business building)


the strategic imperative

•  knowledge: crowdsource, transfer, institutionalize •  leverage systemic processes for innovation

– separate business unit (structural ambidexterity) –  contextual ambidexterity (80:20 rule) – cross-functional groups / communities of practice

Ø  top-management commitment Ø business models tailored to each brand Ø  focus on creating the required PRE-CONDITIONS


thanks for your attention get in touch!

benjamin ruschin | digital head

[email protected] | www.conversations.at

special thanks to media innovation lab / hubert burda media for their valuable input!

social networks in the media industry

Technology

print media

news media providers

social networks goal

viable social business

ulrich bartholms

head of technology

users time source

strategic direction