USING SOCIAL MEDIA TO CONNECT WITH CUSTOMERS Professor Chip Besio Cox School of Business

CONNECTING WITH TODAY’S COLLEGE STUDENTS USING FACEBOOK AND TWITTER

Information sources college students prefer to use to buy products and services

 How Social Media Came About Web 2.0 Blog  Defining Social Media User Generated Content (UGC) UNDERSTANDING SOCIAL MEDIA WHAT ARE SOCIAL MEDIA?

 Classifying Social Media Media Richness Self-Disclosure UNDERSTANDING SOCIAL MEDIA WHAT ARE SOCIAL MEDIA?

Social media classified by media richness and self-disclosure

 Ability to Reach Both Large and Niche Audiences UNDERSTANDING SOCIAL MEDIA COMPARING SOCIAL AND TRADITIONAL MEDIA  Expense and Access  Training and Number of People Involved  Permanence  Credibility and Social Authority  Time to Delivery

● Total Facebook Users – 1.15 billion ● Daily Facebook users – 669 million ● Daily Active Users in U.S. – 128 million ● Average Number of Facebook Posts/Month– 36 million ● Average Monthly Facebook Mobile Users – 619 million ● Total Number of Facebook Photos – 240 Billion ● Average Number of Daily Photo Uploades – 350 Million ● Average Time Spent on Facebook/ User – 8.5 Hours ● Average Total Time Spent on Facebook Daily – 20 Billion Minutes ● Percent of Users That Log In Daily – 76% FOUR IMPORTANT SOCIAL NETWORKS FACEBOOK  Facebook: An Overview Facebook: An Overview

FOUR IMPORTANT SOCIAL NETWORKS FACEBOOK Global Reach of Facebook Monthly

 Facebook: An Overview Facebook: An Overview Leverage Your Assets Keep It Fresh FOUR IMPORTANT SOCIAL NETWORKS FACEBOOK  Facebook in a Brand Manager’s Strategy Make It Familiar, But with a Twist Let Users Get Engaged and Guide Content

The Facebook Profile Page for Bitter Girls

How brand managers can use four social networks in developing their marketing strategies

● Total Twitter Users – 555 million ● Daily New Twitter Users – 135 thousand ● Monthly Active Users– 115 million ● Average Number of Twitter Tweets/Day– 58 million ● Total Number of Search Engine Queries/Day– 2.1 Billion ● Average Number of Tweets/Second– 9,100 ● Average Time Spent Monthly – 170 Minutes ● Number of Days it Takes to Reach 1 Billion Tweets – 5 Days ● Percent of Users That Use Phone to Tweet– 43% ● Percent of Users That Don’t Tweet Just Watch– 40% ● Country with the Most Twitter Users – China Million FOUR IMPORTANT SOCIAL NETWORKS TWITTER  Twitter: An Overview Twitter: An Overview

 Twitter: An Overview Twitter: An Overview Follow the Twitter Profiles Respond to User Criticism FOUR IMPORTANT SOCIAL NETWORKS TWITTER  Twitter in a Brand Manager’s Strategy Generate Brand Buzz Tweet on Topics of Interest to Consumers

 LinkedIn: An Overview LinkedIn: An Overview Find Jobs and Business Opportunities Review Profiles FOUR IMPORTANT SOCIAL NETWORKS LINKEDIN  LinkedIn in a Brand Manager’s Strategy Make Connections Enable Advertisers to Reach People

● Currently 225 million members ● 19 Languages, 64% of members are outside the US ● 2011 Introduced “LinkedIn Today” a daily news source ● Influencer program includes Jack Welch, Martha Stewart, Sallie Krawcheck (Bank of America) ● Monthly users 141million worldwide up 37% over 2012 (Comscore) ● Average time spent/month – 20.6 minutes ● 20 channels allow members to track Influencer posts and news stories FOUR IMPORTANT SOCIAL NETWORKS LINKEDIN 88 of Fortune 100 companies use LinkedIn’s HR software to find and track job candidates An updated LinkedIn profile is more valuable for a job- seeker than a resume in 2013 Newer features include “people you may know” and “endorsements” LinkedIn apps – CardMunch Recruiting software = 55% of 2012 revenue Advertising = 27% $258 million in 2012

FOUR IMPORTANT SOCIAL NETWORKS LINKEDIN LinkedIn Users’ Industries

 YouTube: An Overview YouTube: An Overview Create a Channel Rich in Key Words Use YouTube Analytics to Target Viewers FOUR IMPORTANT SOCIAL NETWORKS YOUTUBE  YouTube in a Brand Manager’s Strategy Remember That Money Matters million unique viewers/ month 31.7 billion minutes/month

● Timeline: ● April 2005 – 1 st video uploaded ● October 2006 – Google buys for $1.65 billion ● September 2008 – “Evolution of Dance” first video with 100 million views ● October 2009 – site hits 1 billion views per day and live stream U2 concert ● December 2010 – launch of “True View” video ads ● December 2010 – “Bed Intruder Song” top video ● October 2011 – You Tube to fund 100 new original channels $100 million FOUR IMPORTANT SOCIAL NETWORKS YOUTUBE November 2011 – 20,000 questions submitted for GOP Presidential Debate November 2012 – You Tube Space LA opens December Psy’s “Gangnam Style” most watched video March 2013 – “Sesame Street” channel hits 100 million views, You Tube reaches 1 billion monthly viewers May 2013 – You Tube celebrates eight birthday and announces 100 hours of video uploaded every minute (5/19/13)

FOUR IMPORTANT SOCIAL NETWORKS YOUTUBE Dreamworks paid $35 million to own 100,000 subscribers in 1 st month 25,000 You Tube channels Google - $35mm Time Warner - $36mm Machinima - #1gamers network in the world 23,697 videos A Barclays report estimates You Tube Revenue at $3.6 billion and values You Tube between $15.6 and $21.3 billion

MARKETING MATTERS What Are Some of Your Other Favorite Social Networks? Hi5 Foursquare Stumble Upon

INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES SOCIAL MEDIA & THE STRATEGIC MARKETING PROCESS  Traditional Media: Passive Receivers  Social Media: Active Receivers InfluentialsDelightedEvangelists

INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES SELECTING THE SOCIAL NETWORK  Recent Growth of the 4 Social Networks  Audience Data for Social Networks  Specialized Focus for Social Networks YouTube Vimeo Ning

The demographic characteristics of U.S. visitors to Facebook in late 2012

INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES HOW SOCIAL MEDIA PRODUCE SALES  Facebook Ad Platform: Role of a Brand Manager  Facebook Ad Platform: Role of Facebook

Performance measures for social networks linked mainly to inputs or costs, as seen by a brand manager

INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES MEASURING SOCIAL MEDIA PROGRAM RESULTS  Performance Measures Linked to Inputs or Costs Cost per Action (CPA) Cost per Thousand (CPM) Cost per Click (CPC)

 Performance Measures Linked to Outputs or Revenues Fans Share of Voice Page Views Visitors Unique Visitors Average Page Views per Visitors Interaction Rate Click-Through Rate Fan Source INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES MEASURING SOCIAL MEDIA PROGRAM RESULTS

INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES GREENPEACE VS. NESTLÉ’S KIT KAT  The Background  Greenpeaces’ Actions and Results  Nestle’s Overreaction and Its Effects

 Social Media Lessons for Brand Managers Communicate with Key Influencers Respond Swiftly Communicate through Social Media Listen for Feedback to Recover Brand INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES GREENPEACE VS. NESTLÉ’S KIT KAT

THE FUTURE: SOCIAL MEDIA + SMARTPHONES + EXOTIC APPS THE CONVERGENCE OF REAL & DIGITAL WORLDS  The Convergence  The Devices  Apps Apps

MARKETING MATTERS What Are Some of Your Favorite Mobile Social Networks? Word Lens

An array of diverse elements leads to a convergence of the real and digital worlds that trigger marketing actions

THE FUTURE: SOCIAL MEDIA + SMARTPHONES + EXOTIC APPS CONVERGENCE LINKS SOCIAL MEDIA TO MARKETING ACTIONS  Price-Comparison Searches  Loyalty Programs  Location-Based Promotions

THE FUTURE: SOCIAL MEDIA + SMARTPHONES + EXOTIC APPS WHERE TO NOW?  Personalization of Social Media Connections  Explosion of Devices and Apps  Generation of Advertising Income  Measurement of Social Media ROI  Socially-Networked Communities

THE FUTURE: SOCIAL MEDIA + SMARTPHONES + EXOTIC APPS THE GLOBAL REACH OF SOCIAL MEDIA  Social Media and Global Marketing  Social Media and International Affairs

INTEGRATING SOCIAL MEDIA INTO TODAY’S MARKETING STRATEGIES