Monday, July 16, 2007

Marketer's Interpretation of Forrester Research on Online Participation Habits

In a recent report from Forrester Research on "Social Technographics," authors Charlene Li and Josh Bernoff used the metaphor of a ladder to show user participation in social media. They estimate that 13% of adult online consumers are content creators; 19% are critics who comment on blogs and/or post ratings and reviews; 15% are collectors; 19% are joiners; 33% are spectators (often called lurkers); and 52% don't perform any of the previously mentioned activities (Refer figure below for details).


Paricipation




Based on this report, Business Week later published a graphical representation (see figure below) of online participation levels by age group.


OnlineParticipation





What is the significance of these statistical insights on online user behavior to a consumer Internet marketer? Well here are some conclusions I have drawn about online marketing strategy on the basis of figures in these diagrams:

  1. Interestingly, in a previous study, Jacob Nielson had talked about the "90-9-1 rule" for online social behavior i.e., 90% lurkers (or inactives); 9% infrequent contributors; and, 1% frequent contributors. The findings of Charlene Li and Josh Bernoff seem to reinforce these numbers.

  2. It is remarkable that collectors are almost uniformly spread across all demographic segments. More remarkable is that fact that the ratio of collectors to creators is far lower for the youth (less than 26 years) than that for the (more) mature adult categories (greater than 26 years). Does this mean that the average user does not really care for syndication? Should RSS figure lower in product management and engineering priorities? Well, your guess is as good as mine.

  3. The high percentage of specatators and inactives really reinforces the belief that social media's potential is still untapped (despite the mushrooming of applications). It also perhaps implies that the average online user is reluctant to adopt / embrace social media. Is this an indication of 'online social shyness' or 'do-not-feel-the-need-to attitude'?

  4. Clearly the teens, youth and generation Y are the darlings of social media. It means the younger age groups feel a greater need for social expression and networking. Hence, it is also likely that these demographics spend more time online than their older-age counterparts (besides willing to be early adopters). Thus, marketers of social media applications need to necessarily focus on these segments for building vibrant and sustaining online communities. So, a social application that these age groups finds 'cool' (and useful) is more likely to spread faster virally than an application that is perceived to be not 'hip and trendy.'

  5. The big picture that emerges for marketers is that their market entry strategy is more likely to be successful if it targets the younger generations. The 'joiner' percentages in these segments are far higher than the 'creator' percentages (with almost a differential of 15-30%).

In summary, younger social media users are 'early adopters.' They exhibit greater propensity to participate. Marketers of social media and online communities should keep these online behavioral insights in mind while chalking out their online strategies.

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