How do organisations measure risk and reward when using Social Media channels and what is the best way to review your approach?

1. Risk and Reward
in Social Media

2. or…
…how do we control the
message in Social Media, what
is the risk of getting involved
and when is this risk
outweighed by the risk of not
getting involved?
© Daemon Group 2008 www.daemondigital.com

3. What’s on the agenda
• A short history of the world
• What is the risk … and how can we evaluate it?
• How to manage, or mitigate, risk in Social Media
• How much does it really matter if you get it wrong?
• Controlling your message … or have you ever?
• Key person risk, who should engage and why?
• Approaching the tipping point?
© Daemon Group 2008 www.daemondigital.com

4. The opportunity in context
29.8m
61.0m
0.26m
5.4m
17.8m
3.7m
72.9%
5.1m
© Daemon Group 2008 www.daemondigital.com
Source: UM Wave 3

5. Social Media users by global region
5.20%
9.17%
34.55%
22.61%
28.47%
Asia Pacific Europe North America Latin America Mid East/Africa
Based upon unique visitors in June 2008
© Daemon Group 2008 Source: comScore World Metrix www.daemondigital.com

6. Social Media 62%
47.4% read
post 29.0%
write
77.0% Imagery Blogging
watch No14
28.2% Micro Sydney*
Video
upload blogging
Podcasting RSS
24.6%
40.2% feed
listen
Forums Widgets
Chat Networks
74%
message 21.1%
belong
© Daemon Group 2008 Source: UM Wave 3 *Twitter Grader www.daemondigital.com

7. © Daemon Group 2008 www.daemondigital.com

9. Normal distribution of technology adoption
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10. Early adoption
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11. Standard extended lifecycle
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14. © Daemon Group 2008 source: thepaisano.wordpress.com www.daemondigital.com

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17. Traditional definition of risk
Risk = probability x impact
Risk = (probability of an event occurring) x (impact of event occurring)
© Daemon Group 2008 www.daemondigital.com

18. Risk in information systems
• The probability that there is a threat;
• The probability that there are any vulnerabilities;
• The potential impact on the business
© Daemon Group 2008 www.daemondigital.com

19. Risk in information systems
• The probability that there is a threat;
Someone who could attack the organisation
• The probability that there are any vulnerabilities;
The susceptiblity to attack, or what could be used against the organisation
• The potential impact on the business
What damage could be caused by the attack
© Daemon Group 2008 www.daemondigital.com

20. Definition of risk in information management
Risk = threat x vulnerability x impact
© Daemon Group 2008 www.daemondigital.com

21. Risk profile of engagement
Use Social Media to listen
Use Social Media to ask questions
Use Social Media to extend your contacts
Use Social Media to drive your existing contacts
Use Social Media to sell your IP
Use Social Media to sell your services
© Daemon Group 2008 www.daemondigital.com

22. Binary risk profile of Social Media
Threat Vulnerability Impact Risk
Listen
0 0 0 0
Ask questions
0 1 0 0
Extend contacts
1 1 1 1
Drive contacts
0 1 1 0
Sell intellectual property
1 1 1 1
Sell products or services
1 1 1 1
© Daemon Group 2008 www.daemondigital.com

23. Risk profile of engagement
Use Social Media to listen
Use Social Media to ask questions
Use Social Media to extend your contacts
Use Social Media to drive your existing contacts
Use Social Media to sell your IP
Use Social Media to sell your services
© Daemon Group 2008 www.daemondigital.com

24. © Daemon Group 2008 www.daemondigital.com

25. Definition of risk in Social Media
Risk = threat x vulnerability x impact
engagement
© Daemon Group 2008 www.daemondigital.com

26. Definition of risk in Social Media
Risk = Kohnstamm x reputation x sales
Credibility/Thorn Tree
© Daemon Group 2008 www.daemondigital.com

27. 95 video results on You Tube
0 video responses from Taco Bell
1.2 million view to first video alone
Taco Bell response on website
2,975 comments to first video alone
0 comments from Taco Bell
Rats Take Over KFC/Taco Bell
© Daemon Group 2008 www.daemondigital.com

28. Social Media engagement
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29. Social Media engagement model
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30. Social Media engagement model
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31. Controlled
ADVERTISING
Monologue Dialogue
© Daemon Group 2008 www.daemondigital.com
Uncontrolled

32. Controlled
ADVERTISING
Monologue Dialogue
WORD OF MOUTH
© Daemon Group 2008 www.daemondigital.com
Uncontrolled

33. Controlled
ADVERTISING
Monologue Dialogue
SOCIAL MEDIA
© Daemon Group 2008 www.daemondigital.com
Uncontrolled

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37. Zero to 60: Ford’s Social Media
Story
Scott Monty (@ScottMonty)
Global Digital Communications
Ford Motor Company (@Ford)
© Daemon Group 2008 www.daemondigital.com

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42. Early adoption
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43. 45% of employers screen
Social Media sites
© Daemon Group 2008 www.daemondigital.com
source: careerbuilder.com 2009

44. reported they found content on social media that
caused them not to hire the candidate
© Daemon Group 2008 www.daemondigital.com
source: careerbuilder.com 2009

45. Standard extended lifecycle
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