Eric T. Bradlow & Steve Ennen Keynote address at Online Marketing Summit, San Diego, 2010. Topic is social media myths and misconceptions

1. Academically-Practical and Practically-AcademicLearnings in Interactive Media Wharton Interactive Media Initiative Professor Eric T. BradlowK.P. Chao Professor; Professor of Marketing, Statistics, and Education Vice-Dean and Director, Wharton Doctoral ProgramsCo-Director, Wharton Interactive Media Initiative Steve Ennen Managing Director, Wharton Interactive Media Initiative Lecturer in Marketing www.whartoninteractive.com

3. Distinguishes itself with a tight focus on the interaction between content provider and user, capitalizing on the wealth of individual-level data that is exploding at the crossroads of commerce, technology, and entertainment.

4. Is dedicated to bringing world-class research rigor to better understand these complex interactions in order to drive new business strategies and tactics that will reshape the media landscape.WHARTON INTERACTIVE MEDIA INITIATIVE

5. wimi global infrastructure Global network of research partners WHARTON INTERACTIVE MEDIA INITIATIVE Wharton Lab for Publishing Innovation WIMI Research, Student Placement Interns, Partners

6. academically practical interactive media 2009-10 Impact and Emergence of UGC: Dec 2009 Social Networking: Jan 2009 Mobile Marketing: 2011 Cross-Platform Data: Dec 2010

7. academically practical interactive media 2009-10 Company Participants Interface seems pretty practical

8. does the great divide really exist? Academics Practice Academically-Practical Practically-Academic

9. wharton, social networking data, 2009: Ansari, Koenigsberg & Stahl “Modeling Connectivity in Online Networks” Improved Predictions Social network data helps to improve predictions of behavior above and beyond just behavior Popularity and Activity correlated across relationships More popular social networkers are also more active Online popularity is a more important correlate of online behavior than offline Online predicts online better than offline predicts online > + >

10. A unifying framework: methods, Applications, and questions Methods Application Statistical Modeling Music Invest in Social Network Data? Decision

11. wharton, social networking data, 2009 Hartmann “Econometric Modeling of Social Interactions” (Golf Data) Social Multiplier A B Social Influence Give Lower Price to A to Exploit B Maximize Total Dollars not “Myopic Dollars” Community Building

12. pricing digital content (kannan et al: 2007)

13. pricing digital content(iyengar, abhishek, bradlow 2007) Popularity begets popularity; but how do you get it? Free Gets You Up The Charts But, Free is Free! Freemium

14. a unifying framework: methods, Applications, and questions Methods Application Empirical Economics Golf How to Price in a World of Interactions Decision

15. wharton, social networking data, 2009 Iyengar, Van den Bulte, Valente“Opinion Leadership and Social Contagion in New Product Diffusion” vs “Managerial Calculus” Network Intervention – In each city, the physician with the highest in-degree is targeted and is persuaded to increase his/her prescription by 10 units Detailing Intervention – Each physician is given an additional detail. Higher Effectiveness Influencers work “locally”!

16. cut through the clutter

17. A unifying framework: methods, Applications, and questions Methods Application Statistical Modeling Pharmaceutical How do I optimally seed? Decision

18. wharton, social networking data, 2009 Libai, Muller, and Peres“Untangling Customer Social Equity via Agent Based Models” A technique for complex system modeling, which simulates global phenomena based on local interactions between units. At each point in time members can decide whether to adopt a new product or to remain non-adopters Each unit represents an individual member in the social network Each linkrepresents a communication tie between members Monetizing Your Community

19. a unifying framework: methods, applications, and questions Methods Application Agent-Based Modeling Simulated Worlds Value of Individuals and Influentials (CLV)– Is it all just hype? Decision

20. why is it important to learn from ugc? Public “Free” Spontaneous Passionate Evolving and live Temporally disaggregate Consumers self-select

21. wharton research onugc, 2009 Bayus“Crowdsourcing New Product Ideas” “The goal is for you, the customer, to tell Dell what new products or services you’d like to see Delldevelop.” Daily: Feb 2007 – Feb (June) 2009 7,100+ ideas 4,300+ ideators 170 ideas implemented (outcome) New product ideas and their ideators are not easily predictable

22. A unifying framework: methods, Applications, and questions Methods Application UGC Platform Generating New Products Where do good ideas come from and how do I encourage creation? Decision

24. Use network analysis framework and other co-occurrence methods of analysis to reveal the underlying market structureIs “classic” Marketing Research dead?

25. a unifying framework: methods, applications, and questions Methods Application Text Mining + Correlational Methods Market Positioning Automated, Free, and Fast Marketing Research – Is traditional research dead? Decision

26. wharton research on ugc , 2009 Tirunillai and Tellis“Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance” Stock Price (adjusted) UGC Chatter “You can take UGC to the Bank”

27. a unifying framework: methods, applications, and questions Methods Application Text Mining + Time-Series Methods Stock Prices Does UGC drive and predict shareholder value? Decision

29. Faux metrics – fabricated by technology

30. Data deluge

32. tomorrow’smeasurement The next challenge The data collection radically increases speed through Real time measurement

33. measuring the real-time web

34. measuring the real-time web

35. measuring social media success Four failures of measurement & analytics 1. Information is ineffectively shared within the organization - Everyone in the strategic process needs to know 2. Goals and the metrics themselves are poorly defined - You should not be spending money or building campaigns just to bring people to your site, you must bring people to your site with a specific goal in mind

36. measuring social media success Four failures of measurement & analytics 3. Companies either don’t take action or take improper action on results The secret to truly successful marketing is actionable measurement. Measuring your results alone isn’t enough; the key to feeding them back into your sales and marketing process. 4. No holistic or cross-platform synchronization

37. summary It is all about the data! In many cases, practitioners have it – academics want it. Scraping programs mean we can now all have it and in real-time. Convergence of problems between academia and practice, in the interactive media space, has never been higher. Advances still need to be made on scale of academic methods. Let’s look for the next great divide! It demonstrates an opportunity for further study.

38. wharton interactive media initiative Eric T. Bradlow ebradlow@wharton.upenn.edu Steve Ennen ennen@wharton.upenn.edu www.whartoninteractive.com WHARTON INTERACTIVE MEDIA INITIATIVE