AMA Luncheon8/21/08

Presented by Jane Collins

Keep It Real

Social Networking…Everybody’s Doing It

In this presentation we will examine the results of The Never-ending Friending Research Study.

We’ll show you how and why social networking works for everyone, especially moms…

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Never-ending Friending How And Why Social Networking Works

Study Overview

Consumer-focused qualitative and quantitative research to understand how and why consumers interact within social networks

• 10 focus groups that include: MySpace users, TRU’s TrendWatch Panel, high school Students (16-18), college students (20-22) and adults (25-35)

• 3000+ online interviews (14-40): Social networkers, MySpace registered users, MySpace non-registered users, non-social networkers

Phase 1:

Study Overview

Advertiser-focused case studies to gain insight into what kinds of campaigns are successful and how to quantify the Momentum Effect of consumer to consumer marketing

• Series of control and exposed measurement using a combination of behavioral tracking and surveys

• Measure key brand metrics such as intent to recommend, intent to purchase, positive brand image and unaided awareness

• Compared findings with similar ROI studies conducted by Marketing Evolutions to assess average value

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Phase 2:

An Essential Part Of Life: Dot-com Delirium

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Briana, 27, New York

Social Networking Is A Favorite Pastime

If you had 15 minutes of free time…• 17% social networking• 17% talk on cell• 14% watch TV• 10% surf the internet• 9% play console video games• 8% IM• 7% listen to MP3 player• 1% listen to the radio

8Q: If you had 15 min of free time, which activity would you do? Select twoBase = SN users 14-29; n=2,081

PRACTICAL

PASSION!

PASSIVE

Look for specific information

Find out about new products

Find out about the latest trend

Magazines

Be entertainedTV

Relax and unwind

News Sites

NewspapersHave fun

Pursue romance

Entertainment Sites

Social Networking Sites

Explore or listen to musicConnect to family or

friends Make social plansRadio

MySpace

Search Engines

The Engine For Deep Relationships

Q: Which of these media services do a really good job when you want to… (Correspondence analysis)Base = SN users 14-34; n=2,605

Activities associated with the role of media

Weekly hours spent…

Social networkers are more engaged

Altering The Media Mix

Going online

Watching TV

Talking on cell phone

Listeningto MP3s

Readingmagazines

Playingconsole games

118.7

9.4

11.5

5.1

4.6

4.8

3.6

2.7

3.2

2.5

2

SN users

Non-SN users

10Q: During the past week, approximately how many hours did you spend doing the following activities?Base = SN users 14-40; n=2,605 non-users 14-34; n=431

Engaging Users Around The Clock,Especially In Prime Time

When they’re regularly on social-networking sites…• 15% first thing in the morning• 16% before school/work• 18% lunch• 25% at school/work• 31% after school/work• 68% evening (PRIME TIME)• 30% late night (10 p.m. – 4 a.m.)

Q: When are you regularly on your favorite social networking site?Base = SN users 14-40; n=2,605

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Enabling Authenticity

Social networking allows users to be true to themselves…and to the world57% People can see sides of me not obvious in person

50% Allows me to be more social than in person

50% I’m less awkward communicating

41% Can reveal parts of my life I wouldn’t normally disclose

Q: How much do you agree with the following statements? Top 2 box (Agree, Completely Agree)Base = SN users 14-40; n=2,605

Merging Online And Offline Lives

73% Never bored when using it66% So many things to do56% Adds fun to going out48% Having more fun in life general47% More plugged into music scene46% More on top of trends, what’s new45% Makes my life more exciting40% Discovered brands/products really like

Q: How much do you agree with each of these statements? Top 2 box – Agree/Completely AgreeTop-2-box agreement (3-pt scale) Base = SN users 14-40; n=2,605

Deepening Existing Relationships

69% Regular friends46% Friends with whom I had lost contact41% Family members31% People from outside your city27% People you only know in the virtual world25% People you met once or twice in person18% Co-workers

Q: Which types of people do you interact with regularly on your favorite SN site?Who regularly in contact with Base = SN users 14-40; n=2,605

Offering Different UsesFor Different Users

25%“something new I’m

checking out”

24%“one part of my busy

life”

14% “all about

appearances”

19%“an essential part

of my life”

18%“all about other

people”

Emotional engagement

Activities

“I don’t want companies to advertise to me. I want them to be my friend.” — Rob, 27, Los Angeles

Source: NEF Study, April 2007

“Friending” Is The New Communication Strategy

Building Brand Relationships

Why have brands as friends?29% Notices of events, sales or exclusive offerings

28% Recommended by a friend

23% Want to associate with them

23% Discounts, coupons, free samples

11% Want to support them

Base = SN users 14-40; n=2,605

Brand Affiliation through Friending

Key Consumer Insights

Social Networking Is Essential Across Various Demos And Life Stages• Given 15 minutes of time, social networking is the preferred activity, along with talking

on cell phone• Social networks are the hub of relationships: attraction, connection, interaction,

reconnection• “MySpace is like your life. It’s your life on the Internet, basically.” –Ashley, 16, Los

AngelesAlters The Media Mix And Triggers More Media Consumption

• Usage patterns suggest constant engagement, peaking during prime time• Social Networkers spend less time with TV and magazines and more time with online

activities• “I can’t come home from school and not want to go o MySpace. I wake up in the

morning, brush my teeth and go on MySpace…I just have to do it. It’s addictive.” –Britney, 17, Los Angeles

Enriches Lives Offline• 73% say they are never bored on social networks• 56% say Social Netwoks add fun to going out• 46% feel Social Networks keep them on top of trends and what’s new

Key Consumer Insights

Enables Self-Expression And Engagement • 57% feel people can see parts of me that are not immediately obvious in

person• 50% feel they can be more social on a social network than they are in person• “If you only see someone, you jus see them. If you go on MySpace , you can

see what people are really like.” –Caleb, 17, New YorkChanges The Way People Communicate

• 58% use SN to communicate/stay in touch• “It’s like a cool email. I check MySpace because anyone that knows me

contacts me through MySpace: -Erica 22, Chicago• “It’s like the new phone number. Instead of getting somebody's phone number,

you can just get their mySpace and communicate with them there.” Andrew, 19, Los Angeles

Advertising = Friending• 40% discovered brands and products they really like with social networking• “I don’t want companies to advertise to me, I want them to be my friend.” Rob,

27, Los Angeles

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Why Should Brands Care?

Put social networking into the media mix

• It’s not just an activity; it’s an entire platform

• It’s the hub of their online experience: streaming music and video, trend-searching, connecting, reconnecting

The Momentum Effect

Old Vs. New Model Of Value Creation

Old model:B2C

New model:C2C

1000 impression = $10$10 CPM = $0.50 CPI

Each interaction is an impression

Pass-along

Influenced to visit community. Some

pass-along.

No community visit, but positively

influenced. Some pass-along.

Pass- along

continues

Adidas Example: Branded Download

Size = Incidence (# of people doing activity)

C2C & The Momentum Effect

“Each Interactionis an Impression”

Visit Brand Custom

Community609,182/mo.

View/Download (in brand’s community) 74,455/mo.

Receive Brand Pass

Along 35,000/mo.

Pass Along 37,511/mo.

Use on Own Page

63,230/mo.

21.5 million/mo.*

View Download (on user’s

page)

View Download (on user’s page)

*estimated based on impression projections

Momentum Effect Is Over Half Of Value Creation*

Source: Marketing Evolution, April 2007Total Number of Incremental People Influenced By MySpace*Exception is awareness. Advertising drives awareness

Momentum Effect

B2C Profile View

C2C Profile View

Advertising Effect

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

adidas EA adidas EA adidas EA adidas EA

Purchase Intent(Top Box)

Intent to Recommend(Top 3 Box)

Avg. Brand Image Attributes

(Top 2 Box)Total Unaided

Awareness

78% 70%57% 54%

71%

98%

Give Them a Reason to Talk About It

Rex’s Profile – before adidas

Rex’s Profile – after adidas

More than 70 percent of value of social networking comes from the Momentum Effect.

Secret 1: Your Brand Is A Persona

Secret 2: Give Them A Reason To Talk About It

Secret 3: Enable Them To Realize Their Dreams

The Guns Gordons and Lemonade

Never Heard Of It Finger on the Trigger

1. Visit/view custom community

2. Add to friends

3. Forward to friends

4 Add to group

5. Add to favorites

6. View player profiles

7. Download desktop(s)

8. Download profile pic(s)

9. Download skin(s)

10. Post comment(s)

11. Post to forum

12. Advocate on friends’ profiles

13. Advocate offline

14. Advocate at other sites

The Momentum Mix: Custom Community

Entry points

Featured profile link

MySpace search

External site search

Friend’s profile link

Referral or invitation

Corporate site link

MySpace Ad

Self-directed

Activities

adidas soccer custom community

C2CB2C

Old modelB2C

Ad Impact

+ B2C-Driven

Custom Community View

New model+ C2C

C2C-Driven Custom Community View

+Momentum

Effect

Momentum Effect

Old Vs. New Model Of Value Creation

Key Advertiser Research Insights

The New Value Creation Model Is Captured In Social Media• B2C + C2C = Value Creation

The ROI From Advertising On MySpace Is Competitive• The average cost to influence each person on purchase intent is stronger than most online properties• This cost is within the range of television ROI

The Momentum Effect Accounts for Over Half Of The Value On Social Networks• Total value created significantly outpaces average impact for television and online• The Momentum Effect drives over 70 percent of the value for driving purchase intent

Activate The Momentum Effect• Your brand is your persona• Give them a reason to talk about your brand• Enable them to realize their dreams/aspirations

Conduct Further Studies To Understand Momentum Effect Across Categories• Develop turn-key research to measure Momentum Effect in traditional metrics (intent to purchase, intent to recommend,

awareness, attitude)• Productize Momentum Effect tracking on MySpace

February 2008 Momfluencers:Reach And Engage MySpace Moms

Moms Are Spending More Time Online

Online moms stats • 40 million U.S. adult female Internet users with

children in 2012, up from 34.2 million in 2007

• 43.4 percent of U.S. adult female users who have children in 2012, down from 44% in 2007

• 91.3 million U.S. adult female Internet users in 2012, up from 78.3 million in 2007

• 51.2 percent of U.S. adult Internet users who are female in 2012, up from 51% in 2007

Hyper connected1

The XY moms (born between 1978 and 1992) are the first generation of moms who are able to seamlessly integrate technology into parenting.

•88% say “the Internet has helped me stay connected to the world”

•85% say “technology has made my life easier as a mother”

•66% say “I rely more on technology as a mom than I ever have before”

•33% say “that I have met new friends online”

•52% use the Internet for sources of parenting information

Source: eMarketer, March 2008; 1May 2007 IG (Intelligence Group) study

Moms Connect And Share On MySpace

MySpace moms are socially active

• 78 percent of MySpace moms first joined MySpace to keep in touch with friends and 9% joined to meet new people

• Only 5% initially joined to keep an eye on their kids

• The average MySpace Mom spends 12 hours on the site per week

• Other popular sites among MySpace moms include Walmart.com and Target.com

• Most have been using MySpace for fewer than two years

N= 1737 online respondents, Moms 18+, registered on MySpaceSource: Consumer Insights - Research and Strategy Solutions (May 2008)

MySpace Moms And Online Activities

Source: Nielsen//NetRatings, @Plan Summer 2008

Keeping In Touch Is A Major Motivator

• More than three quarters (78%) of MySpace moms initially began using MySpace to keep in touch with friends.

• One fifth (20%) of moms with teens began using MySpace to keep an eye on their children. As one may expect, this ratio progressively diminishes as the age of the children diminishes.

Main Reason Initially Used MySpace by Age of Kids

N = 1,156 (with kids 0-2); N = 1,108 (with kids 2-5); N = 799 (with kids 6-11); N = 489 (with kids 12-17); N = 2,383 (total), Moms 18+, registered on MySpace Q8. Which of the following is the one main reason you began using MySpace initially?

Source: Consumer Insights - Research and Strategy Solutions (May 2008)

Reach Further

MySpace Reaches More Than Half Of All18- To 24-Year-Olds Online

TOTAL U.S. INTERNETAUDIENCE

TOTALMYSPACE

USERS

MYSPACE %TARGET REACH

P 15-17

P 18-24

P 18-34

P 18-49

P 25-54

P 35+

11M

24M

52M

106M

97M

100M

6M

14M

27M

47M

38M

31M

55%

58%

52%

45%

39%

31%

Source: comScore Media Metrix, June 2008 U.S.

MySpace for AMA

Thank You!