May 15, 2012 Webcom

1. 1 The State and Future of Social Business May 15, 2012 Webcom Jeremiah Owyang Industry Analyst

2. 2 “The only thing constant in business is change” -John Perera, my first manager

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4. 4 Cluetrain Theses (Original) Markets are conversations. Markets consist of human beings, not demographic sectors. Conversations among human beings sound human. They are conducted in a human voice.

5. 5 Cluetrain Theses (Updated for 2012) Markets are conversations conversational ads Markets consist of human beings, brand pages, not demographic sectors. and social graph targeting Conversations among human beings sound human. They are conducted in a human voice. Analyzed by social performance analytics

6. Agenda • The State of Social Business • Trend 1: Corporate Websites Reborn • Trend 2: Social Becomes Automated • Trend 3: To be Heard, You Will Pay • Pragmatic Recommendations

7. Agenda • The State of Social Business • Trend 1: Corporate Websites Reborn • Trend 2: Social Becomes Automated • Trend 3: To be Heard, You Will Pay • Pragmatic Recommendations

8. 8 Companies are averaging an overwhelming number of corporate owned accounts “Approximately how many official social accounts exist across the entire company, including all business units, products, or regions? (best estimate)” Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 140 respondents, all over 1000 employees

9. 9 Four Seasons Hotels have hundreds of individual Facebook and Twitter accounts – global and local

10. 10 How companies organize for social business Source: “The Career Path of the Corporate Social Strategist,” Altimeter Group, December 2010

11. The Composition of a Social Media Team Average Size of a Corporate Social Media Team: 11 Base: 144 global corporate social media program managers at companies with over 1000 employees Source: “Social Business Readiness: How Advanced Companies Prepare Internally” (August 31, 2011)

12. 12 The mission of Adobe’s CoE: “Enable more coordinated and strategic social media initiatives across the company.” Adobe’s CoE provides governance, policies and guidelines, training, measurement support, and best practices including “guardrails” Source: Maria Poveromo, “One Company’s Journey in Social Media”

13. 13 Only the Most Advanced Companies are Conducting Social Business Holistically, Beyond Individual Silos Would you agree that your social media strategy is embedded across corporate functions (e.g. Marketing, Sales, Support, Product, etc.)? Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 143 respondents, all over 1000 employees

14. 14 Salesforce rewards Chatteratti • Click to edit Master text styles • Second level • Third level • Click to edit Master text styles • Second level • Third level

15. 15 Only the Most Advanced Companies Are Integrating Social Data into Customer Databases Do you have a process to record and integrate data from social interactions with customers into existing customer databases? Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011) 143 respondents, all over 1000 employees

16. 16 Nationwide turns to Yammer to redesign the way management and employees interact

17. 17 Senior management plays a central role in wider adoption • Nationwide President & COO, Mark Pizzi was one of Yammer’s first users • Posting relevant articles • Posting questions • Dialoging with employees • Demonstrating usability, features • Within months, he’d generated more than 7500 followers Within 10 months of launch, 40% of Nationwide’s top leadership were participating on the network

18. 18 Dynamic Customer Journey • New channels. • New sources. • New devices. Icon Placeholder

19. 19 Theme: Dynamic Customer Journey As consumers have many choices, they’re empowered to carve the most efficient journey

20. Agenda • The State of Social Business • Trend 1: Corporate Websites Reborn • Trend 2: Social Becomes Automated • Trend 3: To be Heard, You Will Pay • Pragmatic Recommendations

21. Trend One: Corporate Websites Reborn Companies will integrate social, resulting in new forms of context emerging –forever changing the static site.

22. Integrating Social on Websites lack Strategy

23. 23 Top objective: To increase referral traffic from social networks (Respondents allowed to select 3)

24. 24 Evolution of the Social Corporate Website

25. 25 Sign into HuffPost with Facebook and read news shared by your social graph

26. 26 TripAdvisor visitors view friend reviews through Facebook Instant Personalization TripAdvisor launched Facebook’s Instant Personalization feature in December 2010, offering friend ratings, reviews, and travel history.

27. 27 vitaminwater doesn’t have a corporate site – it “temporarily” moved to Facebook

28. 28 Skittles site lists its social properties & vitals

29. 29 Social integration: % of enterprise-class companies deployed (n=143, June 2011)

30. 30 Trend One Insights: Social Integration • Companies must choose which webpages should integrate –and then aggregate content in –don’t blindly send it away. • Remember that websites as we know them will go away –prepare for a new model to emerge as content as assembled on the fly. • This will also happen in the real world on devices, tablets, and real world kiosks, content will contextualize, much like the movie Minority Report.

31. Agenda • The State of Social Business • Trend 1: Corporate Websites Reborn • Trend 2: Social Becomes Automated • Trend 3: To be Heard, You Will Pay • Pragmatic Recommendations

32. Trend Two: Social Becomes Automated A new category has emerged “Social Performance Software” which analyzes and optimizes social content

33. 33 Marketing Performance Spreads to Social • Testing • Cross Channel Optimization • Ad Targeting

34. 34 Social Performance Software brings targeting • A new class of vendors emerge that • 1) Analyze online discussions and your social graph • 2) Analyze your performance of content • 3) Match • 4) Optimize how it should be published • Will extend to Support, Marketing, and beyond

35. 35 AMEX uses uses social data to offer customers personalized discounts American Express’s new Facebook application “Link, Like, Love” uses a cardholder’s Facebook interests including “likes” and “check-ins” to offer the most relevant and convenient discounts.

36. 36 Social Performance Software • Social Optimization Set: • Crowdbooster, which measures and optimizes when content should publish. • Prosodic, which analyzes the who, what, where, and aids publishers. • Shoutlet, which helps companies manage complex publishing at scale. • SocialFlow, which offers a solution to optimize content resonance and publishing timing. • Tigerlily, which optimizes social content to publish by theme, audience and location. • UberVU, which first mines the data then optimizes content to be published.

37. SMMS Vendor Overview: Download report http://bit.ly/AltimeterSocial 37

38. 38 Trend Two Insights: Social Becomes Automated • To scale, and to improve targeting, brands will analyze content and use proven techniques in this newish medium. • Expect some brands to fully automate, and some consumers will backlash • For best results, triage which information should be optimized and what’s left best for organic natural conversations.

39. Agenda • The State of Social Business • Trend 1: Corporate Websites Reborn • Trend 2: Social Becomes Automated • Trend 3: To be Heard, You Will Pay • Pragmatic Recommendations

40. Trend Three: To Be Heard In Social, You Will Pay The future of advertising is dependent upon social. Soon, you won’t be able to tell the difference between conversations and ads.

41. American Eagle integrates social into Times Square ads on their property: -Paid-Owned-Earned 41 • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level

42. Facebook Ads 42 • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level

43. Twitter Ads are fueled by social 43 • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level

44. Facebook limits reach –till you pay 44 • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level

45. Adobe Social spans Paid, Owned, Earned 45 • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level

46. New networks emerge –beyond Facebook: Bazaarvoice Media 46 • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level

47. 47 Social Performance Software: Social Ads • Social Ads Set • Adobe Social, which employs Adobe acquisitions Context Optional and Omniture. • BuddyMedia, which is optimizing earned content to be ads with its Brighter Option acquisition. • Bazaarvoice, which has introduced a solution to launch social ads outside of traditional social networks. • Webtrends Social, which tracks social content off domain, ads and their performance back to the corporate website; and finally. • Wildfire which has partnered with Adaptly to measure the paid-to-owned transition.

48. 48 Trend Three Insights: Paid Owned and Earned Converge • Remember, that social analysis is the requirement for quality paid and owned. • All of these channels must be used in an integrated manner. • However if you want to stand out, assume you’ll bolster content with advertising –or you leave an opening for your competitors.

49. Agenda • The State of Social Business • Trend 1: Corporate Websites Reborn • Trend 2: Social Becomes Automated • Trend 3: To be Heard, You Will Pay • Pragmatic Recommendations

50. 50 “The only thing constant in business is change” -John Perera, my first manager