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Social Media:
Questions Start Conversations
seth goldstein
ceo, socialmedia.com




             IAB Keynote   6/2/08
What is the Problem?


  IAB Keynote   6/2/08
Social media is
killing internet advertising.



  IAB Keynote   6/2/08
Starting in 1995...




  IAB Keynote   6/2/08
People became interested in
online content.



  IAB Keynote   6/2/08
13 Years of Online Content Growth!

                7,000

                5,250

                3,500

                1,750

                   0
                    1995         1998   2002    2008




     # display impressions across the web (in millions)
  IAB Keynote           6/2/08
But a few years ago...



  IAB Keynote   6/2/08
...people started to become
more interested in each other.


  IAB Keynote   6/2/08
And less interested in the ads

              40%

              30%

              20%

              10%

               0%
                 1995        1998   2002      2008



              Click-through rates on display ads

IAB Keynote         6/2/08
How can we make advertising
work in social media?


  IAB Keynote   6/2/08
What is Social?

  IAB Keynote   6/2/08
IAB Keynote   6/2/08
IAB Keynote   6/2/08
What is Social Media?

  IAB Keynote   6/2/08
Social Media
is active sharing online                                            Are you going
 What car do you      What’s on your   Have you seen   Why do you   to Dave’s
want to be seen in?   playlist?        that movie?     like Macs?   party?




       IAB Keynote    6/2/08
Social Media =


   social      social         social
           + applications + advertising
 platforms


  IAB Keynote   6/2/08
The Social Media Stack
 ADS
  inspire conversations

 APPS
    enable interactions

 PLATFORMS
           connect friends
    IAB Keynote   6/2/08
Social Platforms...
IAB Keynote   6/2/08   PLATFORMS
70 Million Active Users on Facebook
                                                                                                                   70M
▪   Number of users             70

    doubles every 6
    months                      56

▪   250,000+ new
    users a day                 42




                                28




                                14




                                 0
Source: Facebook                     Sep Oct Nov Dec Jan Feb Mar Apr May Jun   Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May




         IAB Keynote   6/2/08                                                                                                PLATFORMS
“The social graph is the set of
connections which define your real-
life social network.”
                         -Mark Zuckerberg



  IAB Keynote   6/2/08                 PLATFORMS
quot;You might log into Facebook in the morning
and you might stay in Facebook throughout
the day...it becomes the platform and from
within it you can do almost everything you
want to do.quot;
                                  Charlene Li
                          Forrester Research

  IAB Keynote   6/2/08                     PLATFORMS
“Facebook is commanding a mass market in
a way traditional forms of media no longer
do. Even TV does not have the same level
of engagement. Right now, Facebook is
unique.quot;
                                        -Peter Fader
                         Wharton marketing professor

  IAB Keynote   6/2/08                            PLATFORMS
Communications platforms
expand sharing throughout
social networks.


  IAB Keynote   6/2/08      PLATFORMS
Social Applications
The Filter Factor




PLATFORMS
People are
constantly
interacting with
each other



               IAB Keynote   6/2/08
The Filter Factor



                   APPS
                   organize
                   interactions
                                  Walls     Pokes   Quizzes   Ratings   Games   Gifts




PLATFORMS
People are
constantly
interacting with
each other



               IAB Keynote         6/2/08
The Filter Factor



                   APPS
                   organize
                   interactions
                                  Walls     Pokes   Quizzes   Ratings   Games   Gifts




PLATFORMS
People are
constantly
interacting with
each other



               IAB Keynote         6/2/08
Interactions are Shared Among Friends and
Throughout the Network




                                            APPS
      IAB Keynote   6/2/08
Important events are spread
through a network of friends.


  IAB Keynote   6/2/08
Social Advertising
What is Social Advertising?



  IAB Keynote   6/2/08
Social ads

The power of lots of little,
quiet social ads vs one big
ad on fixed content.
                               ADS

   IAB Keynote   6/2/08
Evolution of Online Advertising
       Display                 Behavioral          Social
                                                Where do you want

 BUY ME!                      buy me   buy me
                                                to take a test drive?


                                                  Have you seen
                                                Indiana Jones yet?


                                                Have you heard the
                                                new Coldplay CD?




Loud                              Medium                 Quiet


       IAB Keynote   6/2/08
“Utility doesn't have to big this big
thing. It can take place in smaller,
more frequent interactions.”

                          -Mark Zuckerberg

  IAB Keynote   6/2/08                  PLATFORMS
How can brands inspire quiet
conversations?

                               ADS

  IAB Keynote   6/2/08
“Hey, I just bought a great new car...”




                                          `


                       Quiet & engaging


IAB Keynote   6/2/08
Case Study:
BMW 1 Series Joy Ride


  IAB Keynote   6/2/08
Advertise app...




      IAB Keynote   6/2/08
Install app...




       IAB Keynote   6/2/08
Configure the car...




       IAB Keynote   6/2/08
Invite friends...




       IAB Keynote   6/2/08
Choose activity...




       IAB Keynote   6/2/08
Newsfeed...




      IAB Keynote   6/2/08
Friend lists....




        IAB Keynote   6/2/08
Status update...




      IAB Keynote   6/2/08
Profile pages...




       IAB Keynote   6/2/08
How Can Brands Get Involved?
Ask questions.


  IAB Keynote   6/2/08
“
Who is your greenest friend?

      Where do you want to go on vacation?


Which one of your friends knows movies best?


                Which shoe matches your personality best?

      IAB Keynote   6/2/08
Engage friends…



  IAB Keynote   6/2/08
Authentically.


  IAB Keynote   6/2/08
socialmedia.com

  IAB Keynote   6/2/08
IAB Keynote   6/2/08
seth@socialmedia.com



 IAB Keynote   6/2/08

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