25 Jun 2010

Study: 43% of Online Americans Addicted to Social Networking

Experian Simmons is out with a new package of stats that document the incredible growth of social networking in the US. (Experian is an Edelman client.) Here are some of the notable highlights...

First, some 66% of online Americans use social networking sites today, up from just 20% in 2007. This has been covered a lot before. However, what's notable is that it's an increasingly additive activity - 43% visit multiple times each day.

Second, social networking is largely synonymous with Facebook. This doesn't bode well for others that are positioning themselves as a social network since it could confuse consumers. (Since it does not require mutual friending, Twitter to me really isn't a social network but a continuous public communications channel.)

Third, social networking is largely viewed as a way to connect with friends, not co-workers or business partners. This may show that people are splitting up their personal/professional networks. This was something LinkedIn CEO Jeff Weiner and I recently discussed and it flies in the face of edge cases like me who have co-mingled the two. (LinkedIn is an Edelman client.)

Last but not least, social networking appears to be more predominant in the western and mountain states, even more than in the east.

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17 Jun 2010

Pop Culture Dominates Facebook

Hubspot says that pop culture - movies, books, TV shows - have attracted the most likes on Facebook. I'm not surprised. But it does justify cross-media storytelling.

15 Feb 2010

Facebook Now Drives More Traffic to Key Sites Than Google

UPDATE: A couple of notes to clarify this post. First, the chart above, which I pulled from compete.com, shows the top sites that Facebook drives traffic to. Also the headline has been updated to reflect that Facebook is driving more traffic to portals than Google. The San Francisco Chronicle story, linked below, notes that Facebook is only starting to encroach on Google for other sites. The trend, however, still holds.

We're at the beginning of a major shift in how we find, consume and interact with information. If the 2000s was the Google decade, then the 2010s will be the Facebook decade. Already, you can see the writing on the wall - pun intended. Case in point: a search for "google decade danny sullivan" pulls up his Facebook note higher than a blog post (an item I wanted to include here for context). But that's nothing. Look at the data.

According to new stats from compete.com Facebook is becoming the web's top source of traffic (link via Jeremiah Owyang on where else, Facebook). The image above is a snapshot I pulled from compete.com. It shows where Facebook is sending traffic...

"According to Web measurement firm Compete Inc., Facebook has passed search-engine giant Google to become the top source for traffic to major portals like Yahoo and MSN, and is among the leaders for other types of sites.

This trend is shifting the way Web site operators approach online marketing, even as Google takes steps to move into the social-media world.

Some experts say social media could become the Internet's next search engine."

That last line is key. I see Facebook starting to look more like Google while Google tries and stumbles at becoming more social. Bing will start to play a central supporting role here. I see Facebook and Bing becoming an "Axis of FTW" that will disrupt Google on every front. (Microsoft is an Edelman client.)

You can already see it coming...
  • Titan/Facebook Chat will challenge Gmail in communications
  • Facebook pages will disrupt Google - especially if they were to integrate Bing Maps and location technology a la Foursquare. This can quickly position Facebook as the Web's Yellow Pages, an area that Google and Yelp currently dominate
  • Facebook will make search more social, allowing it to become annotated and curated. This up-ends Google's core business. It also makes the Facebook self-serve advertising model smarter and more effective as it collects more data about where it sends traffic. This threatens Adwords
Social networking is here to stay. It's where attention spirals are flowing and no one looms larger than Facebook. (Link sharing on Facebook rose 500% in six months.) And while Facebook has plenty of critics and they run into the occasional privacy concerns, I believe that they will dominate the landscape the next few years. In fact, I see them becoming the number one web site in the world in under three years. It could eat the web.

Now a lot could go wrong. It is possible that Facebook will become AOL the sequel. But I don't see it. There's no alternative and the more we put into Facebook the more value we gain from it. This is a different era where vertical integration (e.g. owning and controlling the whole experience) is a major plus, especially if it's elegant and simple. There's too much information and things vying for our attention today. This turns vertical integration and simplicity into a competitive advantage.

So what does this mean? I believe business web sites will become less important over time. They will be primarily transactional and/or for utility. Brands will shift more of their dollars and resources to creating robust presence where people already are and figure out how to activate employees en masse in a way that builds relationships and drives traffic back to their sites to complete transactions. Media companies will do the same - they will be "headless."

Google and search will remain important for years to come. However, what we're seeing is the beginning of big changes where social networking and Facebook will further disrupt advertising, media, one-to-one and one-to-many communications, not to mention search.
8 Feb 2010

Trust in Friends Declines, Trust in Experts Rises - Social Media and PR Still Win

Last week Edelman, my employer, published our tenth annual Trust Barometer study. You can read the full report here. One of the more juicy statistics that Advertising Age and others noted is that trust in peers surprisingly dropped dramatically from 47% to 27%.

"This is bad news for PR agencies because social media has been the ‘point of the spear’ for so many firms. This is what brings in new business."
While he's right that social media has been a big business driver, I respectfully disagree with Tom that this is bad news for the PR agencies. It won't make the PR industry's case for social media budgets any less compelling. In fact, it's awesome news. Here's why...

If you dig into the report, you'll note that the Trust data shows that we're desperately seeking out experts. This is unsurprising given the torrent of information we're all contending with. We're self-curating and in the process seeking out higher authorities.

Taking this a step further, this is where PR agencies shine. We have decades of experience positioning companies, NGOs, execs and employees in the ranks as subject-matter experts. So what does this have to do with social media? A lot. Blogs, Facebook, Twitter, YouTube, you name it are by far the fastest and most effective ways for an any individual or a company to build a thought leadership footprint. So, if you think about it, this isn't 2012 scenario as Foremski suggests. All it means that we'll have to work harder to build credibility through online thought leadership. If you're doing this with scale, you will win.

In addition, beyond that, we will have to do it all to break through the noise. So I don't see this as bad news at all. Richard Edelman, our CEO, sums this up best with his quotes in Advertising Age:
"The events of the last 18 months have scarred people," Mr. Edelman said. "People have to see messages in different places and from different people. That means experts as well as peers or company employees. It's a more-skeptical time. So if companies are looking at peer-to-peer marketing as another arrow in the quiver, that's good, but they need to understand it's not a single-source solution. It's a piece of the solution."

Bingo. All this means is less fluff more substance. And that's a good thing. 

 

25 Jan 2010

Forbes Study: CMOs More Bullish on Social Media than Apps

During a recent meeting with Forbes they shared with me a summary of their recent survey of Chief Marketing Officers (embedded below). There are two notable trends here - which Forbes isn't connecting, but I am.

First, social media is seen as the single most promising marketing vehicle amongst all respondents and those who oversee more than $5M in annual spend. Note how social media surpasses other tactics that get a lot of attention - notably mobile applications and search engine marketing.


Second, some 73% of CMOs surveyed oversee PR. I don't have the data, but I imagine this is a new trend. In the past, PR would sit in all kinds of other departments. Now it seems to be more closely aligned with marketing.


Now the Forbes study doesn't say this, but I fundamentally believe that other than placing ads, PR is in the best position to manage a business' social media endeavors. The reason is that engaging in social circles requires an understanding of psychology and also it is an uncontrolled discipline. Both of these play well to the skills of PR practitioners. If I were a CMO controlling $5M in spend with an interest in social media and I oversaw PR, I would connect these dots. I suspect that's what many are doing.

Steve Rubel's Posterous

Steve Rubel (bio) is SVP, Director of Insights for Edelman Digital, a division of Edelman - the world's largest independent PR firm.

He is charged with helping clients identify emerging technologies and trends that can be applied in marketing communications programs. Rubel also explores these topics on his site and in monthly columns for Forbes.com and Advertising Age. He can be found on Twitter and Facebook as well.

Steve can be reached via email at steverubel@gmail.com.

Note: Everything posted on this site is Steve's personal opinion. It does not represent the views of Edelman or its clients.