Title of Presentation

Date 2009

What marketers should know about who’s getting social & why

January 2010 @DynamicLogic

Brands + Consumers + Social Media:

Dow Jones Index

US Online Ad Spending*

Consumer Confidence Index**

Facebook Users^

US Blog Readers*

Global Ad Spending*

US Television Ad Spending*

What a difference 2 years makes…

Twitter Users*

- 2007 - - 2009 -

10,344

13,371

49.5

87.3

$67.8B

$66.9B

$482.7B

$438.9B50M

350M

94.1M

116.1M

$24.5B

$21.2B

0

18M

2*eMarketer, ** Conference Board , ^Facebook

With 59% of online users actively participating, social media presents marketers with the opportunity to reach engaged consumers

Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2,000 U.S. respondents

Q: Please indicate how involved you are in the following online activities.

Base (2,000)3

*Source: Compete Ranks Social Network Sites Based on Monthly Visits

About AdReaction

• Recurring survey conducted by Dynamic Logic aimed to measure consumer opinions and perceptions of various types and formats of advertising

• 2009's study, our 6th installment, focuses on the social media realm:

– Consumers’ relationship with social media in general

– Reactions to advertising on social media sites

– Exploration into the types or segments of consumers who participate

– Implications for Marketers

• Methodology/Details

– 2,000 respondents from the Lightspeed Research panel that are representative of the Internet population

– Data gathered end of Q3 2009

– Results were weighed based on site compositions of the top social networking sites*: Facebook, MySpace, Twitter, LinkedIn, Tagged and Flixster

• Contributors: Sara Beaty, Katie Frey, Joe Gonzalez, Girish Lalla, Chris Murphy, Marie Ng, Ali Rana and Heather Stern

4

Who’s getting social?

AdReaction IngredientsOverall Sample Size 2,000 US Internet Users

Who’s getting social?

Ages 13-17:

Ages 18-34:

Ages 35-44:

Ages 45-54:

Ages 55+:

Audiences of all ages are now involved in social media

55% ofall 55+ respondents

67% ofall 45-54 respondents

78% ofall 35-44 respondents

94% ofall 18-34 respondents

87% ofall 13-17 respondents

24%more visitation than AdReaction 2007

28%more visitation than AdReaction 2007

56%more visitation than AdReaction 2007

150%more visitation than AdReaction 2007

-*

Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2,000 U.S. respondents*Teens not included in AdReaction 2007 survey 6

Facebook is the most frequented but most users still are members of multiple sites

• Majority of users are members of two or more sites

• Among our sample, Facebook is the most frequented

Q: Have you heard of the following sites? (based on “I’ve visited” & “I’m a member” responses)

Base (2,000)

Sites Visited

28%

25%13%4%

2%

28%

1 Site 2 Sites

3 Sites 4 Sites

5+ Sites Non-members

Membership by # of Sites

7

40%

72%

17%

48%

25%

14%

25%

19%

34%

13%

58%

33%

<6 Months 6 Month - 11 months 1+ years(s)

Not surprisingly, MySpace has the most tenured member base, while Twitter's is the newest

• 83% of Twitter members joined during the past year

Q. How long have you been visiting the following site(s)?

Site Tenure

Base (906) Base (254)Base (1150) Base (397)

8

Facebook and Twitter are experiencing the largest growth in site usage

• Over half of Facebook members say they are using it more often now than they were 6 months ago

• 30% of those that considered MySpace their primary site 6 months ago, now list Facebook as their site of choice

Q. In the last six months, how has your usage of the following site(s) changed, if at all?

Changes in Site Usage

Base (1150) Base (906) Base (397) Base (254)

9

Under control... for now: So far, advertising isn’t the main reason for people switching their primary site

Q: Why did you switch to a new site? (Check all that apply) – Asked among respondents whose current site did not match what they claimed to be their primary site 6 months ago

Reasons People Switch

Majority of people who switched their primary site in the past 6 months did so in order to join their friends

• However, 8% claim to have switched due to advertising overload

Base (367)

10

50

53

56

43

39

48

27

24

30

11

6

Opinions of advertising across traditional media have decreased over the past 2 years; however, digital (online & mobile) remains the same

AdReaction 2007 AdReaction 2009

47

45

42

35

37

39

28

24

29

10

6

TV

Magazine

Newspaper

Radio

Cinema

Outdoor

Product Placement

Online

Direct Mail

Mobile

Telemarketing

1 in 4 are favorable towards online

advertising, same as 2 years ago

Top 2 Box Score

Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2000 U.S. respondents; Dynamic Logic’s AdReaction 5 Study, October 2007; n=933 U.S. respondents

Q: How would you characterize your attitude towards each of the following types of advertising?

11

Question: How would you characterize your attitude towards each of the following types of online advertising? (Top 2 Box)

Opinions of social media advertising are on par with online ads overall, including online video

Online: 24%(same in 2007)

Online Video: 22%(up from 18% in 2007)

Non-opt-in e-mail: 8%(7% in 2007)

Opt-in e-mail: 32%

(33% in2007)

Online Search: 24%

(26% in 2007)

Social Media/Networking: 22%*

Advergames: 17%

(20% in2007)

Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2000 U.S. respondents; Dynamic Logic’s AdReaction 5 Study, October 2007; n=933 U.S. respondents* Not measured in 2007

12

No Joke: Funny ads are most remembered but relevance is key – something social media is good at

Relevant to me

Informative

Shocking or unexpected

Funny

Celebrities

Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2,000 U.S. respondents; Question. Thinking about advertising in general, what types of ads do you remember? 13

Advertising Tolerance by Members

16

22

25

23

20

24

10

11

6

7

8

5

39

33

44

49

46

48

34

34

24

21

24

22Not willing to accept more

Would stop using this site

Not willing but will

tolerate

Willing to accept

more

More Tolerant(Top 2 Box)

Less Tolerant(Bottom 2 Box)

Almost ¾ of social media users would be willing to tolerate more advertising on the sites they visit in exchange for continued free access

Q: Thinking about the site(s) that you visit, how willing would you be to accept more advertising on the site(s) in order to keep it free?

(1,150)

(397)

(906)

(254)

(72)

(135)

14

Lets look a little deeper

15

Twitter is considered new, different and growing, while Facebook is cementing its base

Base (1971) (1965) (1946) (849)

Is A Site For Someone Like Me

Makes Me Feel Connected With People

Is Cool

Is Easy To Use

Has Most Of My Friends As Members

I Can Trust This Site With My Personal Information

Is Innovative And Forward Thinking

Listens To Member Feedback

Offers Something Different

Gives Me Access To A Wealth Of Information

Is Becoming More Popular

Q. For each of the following statements below, choose which site the statement best describes. You may select more than one site for each statement.

16

% % % %

Twitter is used as an information digestion platform while Facebook appears to be more nostalgic in nature

Am able to keep in touch with distant family members

Am concerned about how much of my information is being shared with others

Am more productive at work

Feel more connected to old acquaintances

Feel more informed about current events

Feel more informed about political issues

Feel more informed about pop culture

Q: How much do you agree or disagree with the statements below? Since joining (site) I… (Yes Definitely/Somewhat)

Base (Primary Site) (927) (482) (93) (81)

Since joining (site) I…

17

About those followers

Base (158)

Among those who follow brands, retail is the most popular category, followed by CPG and Tech

Question: What types of companies or brands do you follow or keep up with via social networks? (Check all that apply)

Retail

CPG

Technology

Sports

Restaurants

Travel

Banks/Finance

Quick ServiceRestaurants

Auto

Composite Scores

Retail: Retail stores, Online shopping sites or Fashion/Designers

CPG: Food or Drink products/brands

Technology: Technology or Telecommunication companies

Travel: Airlines & Hotels

19

• 13% of users leverage social networks to follow brands

Q: Please select any of the following reasons you choose to follow brands or companies on social networking sites. (Check all that apply)

CPG%

Retail%

Technology%

What’s their motive?

“Info about new products” and “sales/discounts” are paramount across all three verticals

Info about new products

Company news

Sales/Discounts

Sharing thoughts/ideas

Contests and giveaways

Reading people’s responses

Like the brand

20

A quick look at our segmentation

A Social Media Segmentation

• Cluster Criteria:

– Social Media Tenure & Frequency

– Social Media Activities

– Relationship with brands on social media

– General attitudes toward social media

• Using the cluster criteria above, a segmentation was run on social media users, ages 18 and up, creating four key segments: Fanatics, Virtual Voyeurs, Taking Care of Business, and Late to the Party.

• For additional insight into the younger social media users, we bundled results from Teens demographic, ages 13-17, and reported on this group separately from the segmentation scheme.

We developed a segmentation to gain a deeper understanding of different types of social media usage

22

What kind of social media user are you?

* Teens demo analyzed separately from other segments

Fanatics

26%

• Most Enthusiastic

• Engaged

• Highly Involved

• Ahead of times

• Influencers

• Young: 67% are <34

• 33% online 30+ hrs/wk

Taking Care of Business

19%

• Engaged & active but enthusiasm slowing

• Early adopters:41% have been on Facebook 1+ years

• More “corporate”:LinkedInOnline BankersHigh Income

• More middle-aged

Virtual Voyeurs

20%

• Watching more than contributing

• Update status often but least likely to blog

• 85% have never written a recommendation

• Print-detached crowd

• Most likely to be female

Late to the Party

10%

• Oldest: 50% are 45+

• Least tenured group, 44% have only been on Facebook in the last 6 months

• Don’t appear to be terribly tech savvy

• Highest income (41% make $75k or more)

• Print lovers

23

Teens*

25%

• Youngest Group

• Highly Entertained: 83% play games on social media sites

• 51% upload video

• Most likely on MySpace

• Least likely to pay attention to brands

Site Membership by Segment

Base (308) (232) (237) (114) (294)

Fanatics Taking Care of Business

Virtual Voyeurs

Late to the Party TeensSite Membership

Q. Have you heard of the following sites?24

Social media is fulfilling a need for the spotlight:

• 92% say that they are interested in

requests for their opinions & ideas.

I am enthusiastic and engaged with social media. I am heavily involved in all social media activities and visit social media sites frequently. I use Facebook and Twitter most often. I feel social media has had a significant impact on my life. I consider myself an influencer in terms of staying ahead of the times and like the fact that social media provides me with an outlet to voice my opinion and new ideas.

Fanatics “I think any brand not taking part in social

media is going to lose.”

“I don’t think I would be where I am right now without social media.”

25

Most likely to be single

Heavy media users: 1 in 3 are online

for 30+ hours per week

Their enthusiasm isn’t waning … only 2% of

them say they are using Facebook less today

than they were 6 months ago.

They are the youngest:

2 in 3 are under 34

I use social media to stay connected to friends/family. I don’t really consider myself an influencer per se but I like to see what others are saying online and so I read other people’s status and blog updates though don’t really write my own. I don’t necessarily feel more informed about news or event since I have joined social media sites but I enjoy it nonetheless.

Virtual Voyeurs“Obviously, there’s something wrong with

me. I don’t have anything worth sharing with them. Other than posting this column now and then, I am mute. A voyeur, of sorts. A

lurker in the cyber shadows.” - Craig Wilson, USA Today

“I go to social media pages when someone sends me a message, but otherwise I kind of

forget it exists.”

They are being fed more than they

are feeding the system…watching

more than contributing

Put the “social” in social media (primary

reason for being on these sites is to keep

up with family & friends).

85% have never written a

recommendation

While they are not contributing, 82%

are going more than once a day to social

networks. They are very active.

I am engaged with social media but I am not as enthusiastic as when I first joined. I have been participating in social media for a while and make sure to update my status often. I bank online and use LinkedIn a lot as well. Since using social media, I am a little more concerned with information security.

27

Tend to use social media in a more

practical way

Have a high income

More middle age

Early adopters; case in point - their Facebook duration –

41% have been there over a year (more than segment 3)

Most likely to visit LinkedIn

Taking Care of Business “It's the main way I keep in touch with

friends, locally and away from home. It's also how I find out about events in the

area.”

I am pretty new to social media. I still like to read paper and magazines in print format but figured with all the buzz around social media I should probably join to check it out. I recently joined Facebook. I don’t feel social media has changed my life very much but it does allow me to feel more connected to distant family members and old acquaintances.

28

The oldest group, with about

half over the age of 45

This is the group that uses magazines the most

Late to the Party

“I finally caved in and joined Facebook last month…it’s so much fun to find old

friends from high school.”

“Social media scares me … it’s a little more information than I need to know.”

They don’t update their status

Been there less than 6 months

Don’t appear to be terribly tech savvy

Highest income (41% make $75k or more)

I am new to social media – of course, this is not because I am "late to the party.” I use social media for many activities, but mostly for playing games and watching videos. I’m only on to keep in touch with my friends – I don’t really care about news networks or brands. These sites are highly entertaining and allow me to express my creative side.

29

Most likely to be on MySpace

“It's a lot easier to know what's going on in your friends' lives, even if you don't talk to them often.

But, it's superficial . You aren't actually communicating with them, it's more like

occasionally stalking them. I prefer to talk to someone directly to know what's happening in their

life and how they feel about it.”

“I never pay attention to *brands on social media+. I only use the sites for social reasons.”

Teens

Find Social Media extremely entertaining – 83%

play games on social media sites and 51%

upload video.

Taking Care of Business

Virtual Voyeurs

Fanatics

Late to the Party

Teens

A look at social media tenure & frequency

Q: How long have you been visiting the following site(s) & how often?

Tenure

Fre

qu

en

cy

Never Visited

Less than 1 month

2-5months

6-12months

1-2years

3years

4+ years

Less than once a month

Several times per month

Once a week

Once a day

2-4 timesa day

Several times per week

30

(308)

(237)

(294)

(232)

(114)

In Summary

31

In Summary

• Favorability of advertising within social media is high

– 22% for social compared to 22% for online video

• Audience is moving to social media

– 55% of respondents 55+ visit social media sites, compared to 22% in 2007

• Humor and Relevance is what makes ads memorable

– The promise of relevance is high within social media

• Maximize reach by advertising across social networks

– Most of the audience continues to have memberships across multiple networks

• There is a clear distinction between Facebook , MySpace and Twitter

– Your advertising should take advantage of the strengths of these platforms

• Not all social media users are alike

– Understand how your target audience is interacting and using social media and then use it to engage them in a way that is relevant to them

32

Title of Presentation

Date 2009

Follow us on Twitter @dynamiclogic or join our mailing list at

marketing@dynamiclogic.com

Dynamic Logic is taking the lead on connecting the dots through a new integrated suite of solutions

DLConnects™

BRANDING

OnlineBehavior

OfflineSales

WOM /Buzz

DLConnects: Social

DLConnects: Social enables advertisers, agencies, brand and digital marketers, and publishers to gain deeper insight into their online advertising and social media campaigns by integrating social media data from a variety of sources.

FacebookFan Pages

YouTubeBrand Pages

MySpace Music

Sponsorship

Twitter Activity

Blogger Outreach

Social Communities

KPI’s Related to Social

Cross MediaMeasurement

Sentiment Share

Tie in with Online

Advertising

Messaging/Product

Effectiveness

Site Profiling

Read the “DLConnects: Social” press announcement (January 26, 2010)

Measuring brand impact of campaigns across social media platforms and broader online campaigns

Comparisons to MarketNorms for planning and benchmarking

Recommendations using cost-effectiveness analysis and link to online and offline sales

DLConnects: Social enables clients to measure:

Custom metrics and analyses also available

Blogger Outreach

FacebookFan Pages

MySpace Music

Sponsorship

SOCIAL AS PART OF MEDIA PLAN

YouTubeBrand Pages

Social Communities

TwitterActivity

Brand Impact

Understand the holistic impact of an ad campaign through both branding and sentiment metrics

Obtain deeper insight and context into the social media impact relative to their specific online and offline advertising investments by monitoring brand and competitive sentiment in the marketplace

Connect the dots by working with a single point of contact through Dynamic Logic

Brand Impact

Custom metrics and analyses also available

SiteProfiles

Share ofSentiment

CompetitorSentimentOver Time

BrandSentimentOver Time

SOCIAL INSIGHTS FOR AD CAMPAIGNS

DLConnects: Social enables clients to measure:

For more information on social measurement, contact Ali Rana atalir@dynamiclogic.com or sales@dynamiclogic.com