Online Social Networking

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

Overview

Introduction

Globally, the use of online social networks as a means to communicate and interact is rising sharply. Interactive social media has given people more control over their media experience. This creates both new opportunities and challenges in marketing. This report will help you understand when and how to utilize social media as part of a successful marketing strategy

Scope

• Detailed insights and analysis documenting the drivers behind the continued popularity of online social media
• Key country-by-country data outlining social network memberships, internet access, broadband access and mobile phone ownership
• Strategic conclusions and actionable recommendations on harnessing the power of social media for marketing purposes
• Global scope - countries covered: France, Germany, Italy, Netherlands, Spain, Sweden, UK, US, Australia, N. Zealand, Japan, China, S. Korea, India

Report Highlights

Across the globe, consumers are becoming more connected through the help of new technology. In particular, increased broadband internet access has encouraged new internet users, as well as those already using the internet to spend more time on it, because it enhances the user experience and makes the evolution from Web 1.0 to Web 2.0 possible.

It is incorrect to assume that successful Online Social Networking (OSN) based marketing is only relevant for brands targeting younger consumers. Although they remain the core group driving the trend, the reality is that OSN is also relevant to a broad range of age cohorts.

Social media derived marketing needs to be engaging and not overly forced. Consumer packaged goods companies that would be especially well-advised to engage in the commercialization of social networking are those whose target market already feels a strong sense of engagement.

Reasons to Purchase

• Obtain a detailed understanding of consumers' need to connect online and how this can be effectively leveraged commercially
• Use the latest evidence based insights to structure effective marketing campaigns through social media
• Access a compelling blend of quantitative and qualitative data illustrating consumer attitudes and best-practice marketing across the globe
• Online Social Networking

Table of Contents

• Overview
  • Catalyst
  • Summary
• THE FUTURE DECODED
  • TREND: OSN has become an established form of connecting
    • OSN can be defined in different ways and reflects a changing media landscape
    • Key take-outs and implications: marketers must recognize and plan for changing media orientations
  • TREND: Membership and usage of OSN is continuing to rise globally as more people have internet access
    • Access to and time spent using the internet and mobile communication devices continues to increase across the globe
    • Membership numbers and usage of online social networks is growing globally
    • Interpersonal factors beyond technology account for the growth of OSN
    • Key take-outs and implications: the sheer scale of online activity-especially through social networking sites-cannot be overlooked by marketers
  • INSIGHT: The continued growth of OSN and its commercial impact will depend on the future effects of potentially important inhibitors
    • The issues of trust and privacy have caused some concern among consumers
    • Internet advertising is considered to be less trustworthy than other forms of advertising
    • Mixed evidence surrounds consumer trust in using social media for information about companies
    • Consumers are easily bored and are always on the lookout for new forms of entertainment
    • A backlash against the superficiality of virtual connectivity is a distinct possibility
    • There is a growing wariness about the commercial influence of social networking sites
    • Day-to-day usage may decline as tighter controls are implemented by employers
    • Key take-outs and implications: social media also presents commercial challenges
  • INSIGHT: Online networks are proving popular with a broad range of socio-demographics
    • There are some notable socio-demographic and cultural variances in OSN usage
    • Cultural and geographic differences dictate OSN site preferences
    • Key take-outs and implications: effective marketing based around social media must account for socio-demographic variances
• ACTION POINTS
  • ACTION: Consider using pre-existing online communities as a medium for expanding brand exposure and sales
    • Look for opportunities to develop branded applications for social networking sites
    • Use online networks as a new distribution channel to build actual product sales
    • Target a social network for which usage is skewed towards your target audience
    • Be selective: identify and leverage brands that consumers are passionate about
    • Use social media platforms to tell more detailed brand stories
  • ACTION: Use existing and newly created social networking communities to facilitate cost effective, yet targeted consumer research
    • Create positions in your marketing team to monitor brand conversations in social media
    • Establish ' closed' online communities that can feed into the market research process by encouraging brand conversation and ideas
    • Establish ' open' online communities that can feed into the market research process by encouraging brand conversation and ideas
    • Keep the content of branded social networks fun and varied
    • Ensure that canvassing online social networks does not become a replacement for traditional market research techniques
  • ACTION: Develop engaging content that easily can be shared virally online and that has high interactivity
    • Make content that leverages social media humorous
    • Ensure social media-aligned marketing content is simple, but with highly topical content
    • Encourage user-generated content and interaction to keep the consumer' s attention
    • Try to elicit actual product recommendations rather than just brand buzz
  • ACTION: Utilize multiple online touchpoints to maximize message exposure
    • Explore opportunities offered by virtual worlds
• APPENDIX
  • Additional data
  • Definitions
  • Methodology
  • Further reading and references
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Current and forecasted memberships of OSN sites in selected countries, 2007-12 (millions)
    • Table 2: The number of broadband internet subscribers in selected European and Asian countries and the US (millions), 2002-12
    • Table 3: Mobile phone ownership in selected European and Asian countries and the US (millions of units), 2001-06
  • List of Figures
    • Figure 1: Consumers' media orientations are changing, with participative and engaging social media becoming more important
    • Figure 2: OSN can be divided into four categories
    • Figure 3: Social, personal and technological drivers have contributed to OSN
    • Figure 4: Case study: Friends Reunited exemplifies how loyalty to social networking sites can be transient, especially in the absence of compelling, interactive content
    • Figure 5: Case study: Badoo has achieved rapid user growth via its anti-advertising approach
    • Figure 6: Case study: dedicated sites appealing to older users exemplify that online networks are proving popular with a broad range of socio-demographic groups
    • Figure 7: France and the US highlight how regional differences characterize OSN popularity
    • Figure 8: Social networking sites can help marketers to more effectively understand target consumers
    • Figure 9: Social networking sites can help marketers to more effectively understand target consumers

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