My presentation at the "Advancing traditional media for Web2.0 in Johannesburg South Africa, August 2008.

1. Blueworld and the Social Networking opportunity Elan Lohmann 14 August 2008

2. 1. The status of Web2.0 Nation in SA 2. Blueworld.co.za, - Fairytale in the making? 3. User-driven content and community driven content - embracing this. 4. Digital profit and online advertising opportunities – the new world 5. A summary and some highlights of the IFRA 2007 beyond the Printed Word 6. Who I think is missing the bus and who should not be? Roadmap

3. State of the SA Web2.0 nation VS Users & products

4. 50 000 10 000 1 mil Users State of the Web2.0 Nation in SA 100 000 500 000

5. SA domestic market

6. Product development opportunities $ Good $ Good $ Bad top tail aggregator

7. State of the SA Web2.0 nation - skills VS Skills

8. Case study – Fairytale in the making?

9. Majority-owned by Media24 and the 3 founders have equity in the business

10. Passion Talent GREAT Technology platform Garage/entrepreneurial - culture Youth Energy A compact team with the Ability to innovate, move quickly and deliver What did we buy in Jan 08? Something FRESH *

11. Key metrics – so far Up to 7500 new members a month and growing. 60 000 Unique Users 1.2 Mil page Impressions 13.5 min ave session 52% returning (Nielsen, Jul 08) Key metrics * * * * * Unique Users Page impressions

12. Demographics Gender: 55% Female ~ 45% Male Users by age: Under 18 17% 18 – 22 35% 22–26 26% + 26 22% Registered users 100 000

16. Funky people

17. Who care …

18. Interactivity, sharing, Ranking, community Goodness “ baked in’’!

19. Zoopedup.com is a niche community targeted at anyone over 18 who is into “Zooping up”, modifying, “pimping their rides” and racing cars. 45% of users are over the age of 26. Users are represented by their cars in a “cyber -garage” - expanding to allow for more than one car as well as motorbikes. The “Zoopedup Car Club” is the offline feature of the brand. It has a base in CT and small presence in JHB and KZN. Monthly breakfast runs, track days, private parties or monthly parking lot cruises are hosted. Demographics Gender: Female 20% ~ Male 80% Under 18 - 5% 18 – 22 - 15% 22–26 - 35% + 26 - 45% 35 000 users 26 000 forum users 19 882 email subscribers

23. Next steps …..

24. Mobile opportunity …..

25. Blueworld – Differentiation Social contacts “ Gatherers” Connection Cooperation Communication Real ID Established connections Discovery “ Hunters” Exploration Voyeurism Competition Persona (alias) New people MANAGE FRIENDS MAKE FRIENDS Software platform Community

26. Blueworld – Niche common interest strategy Clubbing Campus nightlife Live music Events “Pimp my ride” Broad niche Narrow niche Potential to extend broader Stronger global opportunity New ? New ? New ?

27. Growing pains/agility/passion Next big thing? Corporate rules/practices/greed Focus Risks? Opportunity beyond SA market? Key resources

28. Why innovation teams are like unicorns? 1) They are supposed to magically cure ills 2) Everybody wants one 3) You can waste a lot of time trying to catch one 4) They are really just horses with an extra horn 5) They don’t do any real work plowing the (existing) fields BONUS - everybody expects rainbows to shoot out their end Rolf Skyberg, Disruptive Innovator, eBay, Inc.

29. Traditional vs Online people P – Performance - Be responsive A – Administration - Be consistent D – Development - Surprise me I – Intimacy - Understand me

30. Traditional vs Online consumer and product

31. Managing the unicorns? Founders vs employees Equity and ownership Skills for hire Digital natives, an even newer breed on the way Accelerated expectations Branded employees

32. User-driven content and community driven content – embracing it? Let your readers write Make them heroes No holy cows Who shares wins

33. Digital profit and online advertising opportunities In May 2008 eMarketer has revised its worldwide social network ad spending estimates , now projecting that advertisers will spend £1 billion on social networks worldwide in 2008, rising to only £2.2 billion in 2011. The previous figure for 2011 was £2.4 billion. Google and Yahoo still command 61% of all online US ad-spend. User-generated content advertising projections are also lower than expected. Despite the massive size and projected growth of the user-generated content (UGC) movement, advertising revenues alongside this content will remain relatively modest. eMarketer projects US user-generated content ad revenues of $824 million in 2012, up from $162 million in 2007. By 2012, this total will represent 1.62% of US online advertising spending, up from 0.77% in 2007.

34. Welcome to the new world – marketing shifts Old marketing Marketing mindset 1-way, 1-sided communication to tell a story Dialogue, relationships, earn trust, build credibility Brand equity Brand recall is the holy grail Brand value determined by customers. Will they recommend? Share? Segmentation Group by demographics Group by behaviour, attitudes and interests Targeting By demographics Customer behaviour/preferences Communication Broadcast – push message to customer Interactive, search queries, comments reviews, dialogue. Content Professional created by marketers Professional and UGC, increasingly viral Virality Often driven by flashy presentation and not content Solid content that will get people talking New marketing Source: Marketing to the social web – Larry Weber

35. Welcome to the new world – marketing shifts Old marketing Strategy Top down from management Bottom up building on winning ideas and customer input Payment CPM, emphasis on cost; Advertisers buy with idea that share of voice = share of mind = share of market ROI New marketing Source: Marketing to the social web – Larry Weber

36. Publisher Message Audience 1 to many Letters Comments Polls Surveys Communication model >> 2.0

37. Communicate Share many to many Publisher interact Relate 2.0

38. Advertiser Local Publisher Audience TV Radio Print Online (CPM) Bypass Global New breed publishers Ad networks New Channels Mobile Blogs (PVT) Social media Podcasts Video i-TV Search/aggregators Audience Audience Audience Audience Audience Audience Content Content Content Content Content Content Content Content Content Content Business models >> 2.0

39. Welcome to the new world In the new world the customer is in charge In the social media world you have little or no control over content and Distribution Content is increasingly visual Ultimately the social web will lead to customers saying “ Here are the things I like, Make me an offer instead of me having to do all the work”

40. Welcome to the new world Control of info continues to shift from marketers to consumers The web is not a channel Content (high cost professional) is a bad business to be in The mass market will be no more Marketers will pay for results

41. Highlights of the IFRA Beyond the Printed World - 2007 Be OPEN Share Conversation Is king 2006 – F%^($ Google 2007 – F%^($ Facebook “ Frenemy” “ Co-op-itition”

42. Change Freeze Move Re-freeze

43. SABC Emerging market titles Everyone on mobile Mxit in the web space … . All publishers globally … Traditional marketing agencies Who I think is missing the bus and should not be?

44. Thank you Digital success …….. Elan Lohmann GM Social Networking 24.com/Blueworld [email_address] 084 333 1313 Brand of me: www.elanlohmann.com Gtalk: [email_address] Follow me on twitter: elanlohmann