Download - social networks in the media industry – the strategic imperative

1 © straberger conversations gmbh 12. October 2011 @ WAN-IFRA

benjamin ruschin | digital head

[email protected] | www.conversations.at

supported by media innovation lab / hubert burda media

social networks in the media industry the strategic imperative


agenda

•  the emerging opportunity •  the status quo •  best practice case study •  the strategic imperative


the emerging business opportunity


the emerging business opportunity

what are the key challenges confronting media providers?


key challenges

•  competing for users‘ time

Source: Nielsen, NetView, June 2011

Germany Ø  facebook users (25 million uniques!) spend an average

of 5 hours/week on facebook


key challenges

•  competing for users‘ time •  unpredictability & constant change •  lack of proven best practices •  difficult to set a strategic direction

–  Sales? Paid content? Ads? Profits? Business model?

Ø how do we deal with this?


how are news media providers approaching social?

operational level


operational level

•  social distribution •  social customer relationship management •  social commerce


social distribution

•  social content posts


social distribution

•  social plugins


social customer relationship management

•  social interaction with customers


social customer relationship management

•  open graph interface


social commerce

•  selling paid content via facebook (apps)


social commerce

•  selling paid content via facebook


how should news media providers approach social?

strategic level


best practice case study

•  “social media for print“ project driven by top level •  strategic in-house driver “media innovation lab“ •  corporate budget to explore social networks •  goal: find viable social business models for print media

–  build sustainable customer relationship through dialog –  strengthen each brand individually

•  individual goals/KPIs for each brand (contextual) •  accountability: each brand has a social champion

responsible for reaching pre-defined KPIs

source: ulrich bartholmös, head of technology @ media innovation lab / hubert burda media



•  knowledge transfer: knowledge gained by each magazine/newspaper is crowdsourced and transfered –  monthly “social media meet-up“ => champions get together –  knowledge formalized => handbooks & training

•  attempt to build a core competence in the social domain by learning & institutionalizing the knowledge

•  exploration: mindset geared towards experimenting rather than generating immediate ROI

•  assessment: milestones & KPIs (not financial goals) •  time horizon: long-term (not short-term)




examples




examples campaign

•  facebook campaign: searching for the may covermodel (facebook app)

results •  >8000 applicants •  >34000 voters participated •  fostered engagement & participation •  strengthened customer relationships




examples




examples campaign

•  royal wedding: facebook & twitter campaign – regular updates posted

results •  print sales 51% above the average

(highest sales since 2003) •  web traffic from facebook & twitter

increased seven-fold!



the strategic imperative

•  put social on the top-level agenda (CEO‘s back-up) •  financial resources: designated budget for social

(corporate innovation fund) •  people: carefully selected champions & innovators •  time horizon: long-term (not short-term) •  activities: exploratory (not revenue-generating) •  assessment: milestones (vs. short-term ROI) •  goals: find viable business models within timeframe

(strategic business building)


the strategic imperative

•  knowledge: crowdsource, transfer, institutionalize •  leverage systemic processes for innovation

– separate business unit (structural ambidexterity) –  contextual ambidexterity (80:20 rule) – cross-functional groups / communities of practice

Ø  top-management commitment Ø business models tailored to each brand Ø  focus on creating the required PRE-CONDITIONS


thanks for your attention get in touch!

benjamin ruschin | digital head

[email protected] | www.conversations.at

special thanks to media innovation lab / hubert burda media for their valuable input!