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