■ 1 WELCOME TO THE POST-SOCIAL ERA

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■ 3 THE HUMBLE BEGINNINGS OF SOCIAL MARKETING er. er. h e user h , y . gy ows t ows h one anot h or what would SA Toda SA , et more informa- more et U y 1990s—news, g l e Internet era ure 1.2 s h g teasers e ear t f arts the of Prodi h h p g s. Fi s. k eriment with with eriment p ioneers o communicate wit p d ioneers in the online services to reach

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y etween CBS, IBM, an uServe, were and AOL ace available to advertisers throu b ma p p h iscover simi iscover articularl eneration o eneration ic d p g h , Com 60/month for an a rst rst $ fi gy e offered advertisers the o h as banner advertisin 1 y gy ogin screen ogin e to meet, l were not were not l y igy igy in screen, w ect, t d g . Most was notable Prodi ff g o l igy (a joint ventureigy (a Prodi peop also made screen s

Pro y d While Prodi d 2 gy gy i d owe obil Travel Guide and Restaurant Zagat’s obil Travel Ratings, But perhaps to name most a few. ia Pro ia ll ion viaion a larger the of and version ad then the buy product or service being offered. base for as little as business, the sports scores, weather, and so on. Prodigy also offered premium from content the t whereb Figure 1. and operating systems. Some the of fi v M Online Services v Three competitors—Prodigy, major CompuServe, and America Online (AOL)— the following over evolved years. All three took online services an to entirely different withlevel user improved interfaces made possible by advances in hardware computer important, Prodigyhad a very well-integrated message board and email services that a Prodi But neither advertising option became suffi Pro be viewed toda viewed be These were the “killer behind apps” the growth the of Internet in the early 1990s. They were, in e interested in the advertisement, the advertisement, the in interested marketin 4 CHAPT ER 1: W ELCOME TO THE POST-SOCIAL ERA ■ rate e goods and services on the Internet. Compare that to the tothe that Compare Internet. onthe services and goods new business o business new o surfi of time amount unlimited an spend could auser provider (ISP), service Internet an via awebconnection and Mosaic new on new Figure 1.3 j Aroun u Worldthe Web Wide startin enmasse w fi of proprietary proliferation The Emer mid-1990s. the in subscribers by increasing revenue subscription consumer ongrowing primarily AOL and focused CompuServe, Prodigy, on, early ineffective so was advertising Internet 2009. Because in business ing w an porations. Everyone wante porations. ior? How wou o new businesses, new tobuild used be banner advertisin banner ever so hourl ner a on to entice a reader into clickin into areader to entice a peop ust im d l f sua ith the emergence of Mosaic, the fi the of Mosaic, emergence the ith o advertising tothe well torespond forpeople 1995; early ide in too it just was rea emai ente y l ine. T other online service. Internet advertisin Internet service. online other p lly l g dy d y e interact wit e interact er 1,000 im ence of the World Wide We Wide World the of ence vertising. Sites cou Sites vertising. d d service rates and other usa other and rates service As users users As The mid-1990s wererevolutionar mid-1990s The As a result, the Internet advertising business grew tremendously through ban- through tremendously grew business advertising Internet the aresult, As p ld 468 468 l un fiThe displa ever ad banner rst l

t ine services, a services, ine ressions. The idea was that advertisers wanted visitors and not and visitors wanted advertisers that was idea The ressions. messa l , an AT&T, an a eve h h e possi e same time, anum time, e same d erwa l p o ixe ld f g pp entrepreneuria fl es. T es. oc

l y b b s wi p g ortunities would be . usiness i tocor h ressions or views, w orviews, ressions H l k ities wereen ities eac e h otwired d d d ppl is was a was is e tot vertisement. Banner a Banner vertisement. h by ld ications, an ications, ot p b orations, in late 1994. Fi 1994. late in orations, 60 d

h e con d h an opportunity to participate an toparticipate opportunity an e Internet, t e Internet, y evote a certain amount o amount evote acertain , an on , an ed on the Internet the on ed g er? How muc b them to visit another website. The website. another tovisit them p d l er o activity b ixe e dl d p rst-generation online services came to a stunning halt toastunning came services online rst-generation ng the Internet and sending an unlimited number unlimited an sending and Internet ng the ucte g ess, as were questions a werequestions as ess, arture l e u f s ta l rst widely available web browser. In 1994, with 1994, webbrowser. available widely In rst ex ine we d p p d a g h p ll pp in 1995 ossible? All of the of the ossible? All char

d h ic eriments eriments f y , wit p rom rom f i e for the Internet, as millions of ortunities, and new communities. How would communities. new and ortunities, ro h ff rom existin h fi b is now is re erent g rst experiments in Internet mar Internet in experiments rst g l wou ma i es for es was onl was h d f b eration o eration in s were ot . g l f ld y in t y in h azine, was t was azine, p ormation an ormation new companies an companies new o t p g pp rofi h ure 1.3 shows the fi shows the ure 1.3 f l y g e Internet c e Internet erre f ong, rectangu ong, h a services t services space to space e f tabilit e ageo d we $ $ u d p b 25.7 billion Internet market 55 million industr to as toas p ossibilities led to an un toan led ossibilities out out b to sites, consumers move consumers sites, h d y d e reap t f . Fueled b . Fueled h t /or /or g b fi ow a ow h uarantee c rst com rst h cost per mil per cost h y anners to generate anners at re at e Internet? W e Internet? ange purc weresold forafl g l ra ar a h d d ph l e spoi vertising cou vertising ie esta j rst banner ad banner rst ust views ust d y d ics ics p p vertisements, the wealth o wealth the u an eo l bl p ic k d h l l y p y s. eting were eting on tiere esi ase (CPM). is k world le tose s an h h g g e f ne at b ot . d

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■ 5 THE HUMBLE BEGINNINGS OF SOCIAL MARKETING

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d e pu s f h g ew tries h arent t es to determine the relevance a of f rst time I used Goo e craze create even uy an er searc g h b pp a e. Contrary to popu h rom t rom on a l vertisin ointe , that is, sites that users help would get a wide range o f p s d e Internet, a ly p ts to users. Over time, t imentary searc imentary rom t rom

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the full text web of y g h b h iven time.iven A number com of g e a g t ers ea . Ot ate 1990sate g T Be k term I use en l

h ed, combinin ed, le. I (Chris) remember the fi h h y g rn rn eneratin revo e is g kly years w g h l ore an ly tu bl taVista, an taVista, f e num

egotiating s power l e ow it so easi it ow uic startin h or ect matter an Pu searc accurate an term. Popu information that be would helpful in a personal and sometimes professional context. buildingBy an effective portal, a company could create a thriving and growing web property that and revenue generate profi would scannin A emer in t in t Goo N b ate era f h Li ary. “ j q Search and the Decline of Banner Ad The number websites of continued to proliferate expectations. well beyond people’s Consumers nee at an to revenue. It was good a revenue. dealfor advertisers as well because, the at time, was the it best to reach peopleway and get them to learn another about the on site Internetprod or a uct, service, less no or other For than offer. fi Internet marketing opportunity available to people wanted who to connect with con sumers This on the Web. dynamic led thedevelopers many of early popular websites searc MSN to the Web the Web and, more im more and, 6 CHAPT ER 1: W ELCOME TO T HE POST-SOCIA L ERA ■ This invention was named Goo named was invention This a Advertisers would enter the text for a relevant ad that adhered tost adhered ad that forarelevant text would the enter Advertisers byYahoo! GoTo.com, bycompetitor Overture time renamed later same the around c riva to superior was that engine asearch it launched years, afew just In engine. search accurate world’s most the and perhaps as emerged greatest Google time, this Around Goo of Rise The way consumers. trackable toreach and of anew, emergence forthe effective, ripe environment an created This toignore. easy somewhat them 1999, made also which by Internet on the wereeverywhere ads These ad fatigue. level of some banner rienced avai Figure 1.4 a ironicall results, which increasingly worked against banner advertising. Third, consumers expe consumers Third, advertising. banner worked against increasingly which results, demanded Advertisers advertising. banner into of dollars thousands sinking blindly longer No werecompanies prices. in areduction came drop that with and below 0.5%, 2% as well to high as from dropped banners on rates Click-through extent. some to onsumers werei onsumers d d vertising program in in program vertising s l f l s suc or w a bl A Google AdWords was a self-serve advertising service similar to services offered offered toservices similar service advertising AdWords aself-serve was Google Google AdWords click-through ads appear at the top as well as down the right side of the search results pages. results search the of side right the down as well as top atthe appear ads click-through AdWords Google e options e options d y h h , launched an im an , launched vertisers weretire vertisers as HotBot, A HotBot, as ic h t g h le and Click-Throu and le e a g f or a norin d vertiser wou vertiser d spen f g avor o avor l them. Realizin taVista, L p d ression-based advertisin ression-based o d ing. Secon f f s experiments wit experiments g g le AdWords, and the rest is histor is rest le AdWords,the and p ld h Ads en

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s increase su gl ecifi d d e au h a d ore t d s, sen s, a ine. T ine. p cult in 2002—many click-through ads cost i f s, an s, g h g owe k h e b d ll ar b e ic e . wit l

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l k eneration business that found at, atin d ears as Goo ls g were not tar were not h c term in a searc er d i y fi ter a its c y b converte f d asses to ster. C ster. d inex mainstream consumer au l e too eci e. I cou y d h articu l deta p e was t

s, a s, gl p any auction mo e owever, I starteowever, k gl r h , a lead h enerall o rst companies notable from the social networking era were Classmates encies, an p em an reac g with one another on the Internet and, times, at in Frien g h d or a s in a g e asserte m e Internet, , Goo f d uating c uating l t

a d ris) remem ris) y d ear, ear, erence t was h d d d d h y n t The fi As wit As It may seem simple now, but this but seemIt may was a revolutionary simple now, shift in Internet advertising ff e networ f i e a rom Goog l fi

h f d i e 5. Not a bad deal. Not a bad 5. important, More Google however, realized that the folks click- l r e $ an a o h .com an.com ua rend continued for hird startu hird ain gra ion o ion ions,a isement. Now this wasn’t particularlyisement. this Now wasn’t diffi o 2008, Goo otal andbid the amount remaining in the budget for each bidder nal step wassetting a dailybudget; without budget, a money could of a lot be spent interactin intereste new about socialnew about networks. Online communities had formed ever at emerge an m summar Socia h t t The Emergence of Soc Goog As th t t t in. I (C t ucts q ers a relativel on t character limitations. The advertiserthen would the add search terms that trig- would The click. the for pay to willing be would they bid highest the with along ads, these ger fi on these Using ads! an auction automated system, Google serve would ads based on the t for a few reasons. First, an advertiser could effectively guarantee traffi biddingsimply high enough and devoting enough budget on a daily basis to the adver ing these just any users. ads weren’t They highly were targeted users because they had searc as as as little as a nickel apiece, so 100 new visitors to website per could day cost as little ads, which wanted incremental business times for 5 to 10 the cost of T 8 CHAPT ER 1: W ELCOME TO THE POST-SOCIAL ERA ■ a Friendster grew aggressively just after its launch in 2002, but it endured a number o anumber but it endured 2002, in launch its after just aggressively grew Friendster time. MySpace went MySpace time. more features to users. Friendster was the fi the was Friendster tousers. more features subscription. apaid behind hidden site wereultimately of the tures faded have pioneers early how the to2009—note 2000 from networks top social the marizes c c in t w l wh f f the not do. Despite did networks social later, more-successful which auser, from tion Friendster exposed profi Further, alike. users new adopters and early disenfranchised problems that technical several hundred thousand ver thousand hundred several resources from alar from resources a mainstream a mainstream speci startu s ayouts, an ayouts, act eatures, suc h oncept successfully, whereby a user could enter personal data, preferences, and so on. so and preferences, data, enter personal could wherebyauser successfully, oncept ess, both sites continue to operate today, each with a large user base. Table 1.1 base. user today, alarge tooperate continue with sum sites each both ess, l or so a are ic h

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ata wit ata abl b l C G Frien LinkedIn T F Socia F ll n ives. T ives. witte a y l oogle ut rat h assmates.co ce o e 1 f S acebook e e wor ormation a ormation d d book p i f d l .1 t unique networ t users to customize t tocustomize users ace, in man in ace, h ster r h cial statistics released by each company byeach released statistics cial + Po as h e h gl h r is h

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■ 9 THE EMERGENCE OF SOCIAL NETWORKS

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ta gh h v ri i a kes obb rou h Li H M Act to tar searc y le data and interests. Think a moment for about e t h bl rofi • • • • a p l roug h e l fi eneration” wa eneration” g e h time. comScore estimate m t f ormation avai n f ir collected information users about throu o ho b g d t in f f n e “next- o etow e ests

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p l k h l ace acebook Mobile has more than 200 million users worldwide, making it argu it making worldwide, users million 200 than more has Mobile acebook an ww.time.com/time/photo ww. ww.techweb.com/news/232200657/ kl k ly tions business, arefor Facebook’s bad which is wh T w In addition, Facebook o w F w F Socia h a re oo ies, and p an e site ane site g b p the world’s second lar the world’s h m ph y e on d e scenes to ensure t e wor h ersona e u eavy- ra n h h ems near Face overall ex check this out article on Facebook’s Wall, News Feed, Places, Credits, and Questions become have inte nolo the best t t h a p leaders. It’s on t b l social games. g abl and as a channel to encourage sharing andcontent experiences of with friends. Not surprisingly, almost two-thirds all of web traffi from Facebook, accordingto Net Applications, a marketing analytics company Disru you gear T nies and individual develo individual and nies farm—its technical infrastructure. The scale necessar Remember, there are millions of users on Facebook, man Facebook, on users of millions are there Remember, at theat com 2011, it was announce it 2011, 1 C HAPT ER 1: W ELCOME TO T HE POST-SOCIA L ERA ■ 6 ac are as hi T the novelty worn off novelty worn the our lives fi lives our world simultaneousl real the in and online Face is a serious yet at times at yet times aserious is Businesses, non Businesses, anot an to bein • • y ma mid-20s their now in users fact, In media. h c W Gone Novelty W a It may seem Ub • • • • • tec time now when the bloom is off the rose rose the off bloom now is whenthe time In business, it’s acknowled the business, In Post-Socia haracterized (at ahi haracterized oun ave interacte h q e’ve rapidly gone from having little or no social context for the Internet experience Internet forthe context orno social little e’ve having rapidly gone from eb and enhances, at minimum, our entertainment experience. However, recently as experience. entertainment our at minimum, enhances, eb and d iq h e uaintances on the Internet. We’ve connected with friends and “frenemies” alike. alike. “frenemies” and friends with We’ve connected Internet. onthe uaintances may no b u p h g i oo ro er wa a tous Soc tous Pardon the analo Pardon the C U T W it all Now what? Is Immature D D S Evolvin Let’s go into t go into Let’s l g o h d d surrounded b surrounded h urated social ex k bi ramatica g emocratization o gy elcome to the Post-Social Era—a new and distinct distinct and new Era—a Post-Social tothe elcome i u h i e Post-Socia h as ever h as , its riva , its f ve ve g q l l ave ave ts in usa in ts . Era is a is Era t ra ious c ious y uitous context social consumers s consumers y d g i l ears from now, or will there be a backlash a abacklash be now, there from ears orwill b p al Context itt wit social eti social p een using socia using een i i dly rofi n the Post-Socn the h y ll l l e o i . et critica s, an y increasing y increasing ld g h b , an ts, causes, celebrities, and even and celebrities, causes, ts, e eac ? out—an h o b g l ese in a in ese p vious to y Era is c is Era h level) b f atterns amon atterns d d it seemin it Face h gy p h its com its

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