SIMON PODD - HEAD OF UK SALES, BEBO
- How vital a role does display advertising play in your revenue model?
It could be considered the bedrock on which we build creatively. As our service continues to advance, we must continue to educate brands and we encourage them to adopt a variety of "engagement marketing" strands from sponsored profiles and videos through to unique integrations into Bebo Originals - safe in the knowledge that display advertising is included - giving our clients the best of both worlds.
- Critics have suggested that it is hard for social networks to monetise their audience to the same degree as other media. How fair is this assessment?
Not all social networks can be considered one and the same. If your service offering is focused on "connecting", then difficulties stem from the fact that advertising is seen to literally interrupt the natural flow of these connections. Bebo's user experience combines community, self-expression and entertainment, and enables our members to consume, create, discover, curate and share this digital content whether provided by a brand, a music artist or another user. From the beginning, Bebo was designed to integrate marketer needs with consumer conversations while remaining true to the user experience. We call this "engagement marketing".
- What have been your most innovative partnerships with other media owners?
In June 2007, Bebo announced it would promote legal music downloads among its UK and Ireland users by offering superior music downloading along with exclusive content offers and competitions with iTunes. Bebo's Open Media platform gave global media companies such as MTV, CBS and BBC a new way to promote, distribute and monetise their programming. Bebo also co-produced a series of "Bebo Originals", including KateModern and Sofia's Diary. Last month, it gave users a "Social Inbox" combining e-mail, social networking and media recommendations in one easy-to-use interface.
- Can you provide an example of how advertisers are working with you in new, exciting ways?
Cadbury Creme Egg's "Here today, goo tomorrow" campaign represented a shift from the "How do you eat yours?" strategy. The challenge was to bring the "goo" campaign to life, engaging with the key 16- to 24-year-old audience. The idea was to integrate Cadbury Creme Egg into KateModern, Bebo's online interactive drama, in a way that would excite the viewer. To accompany Creme Egg's integration, a Creme Egg Bebo profile was created to amplify the key messages of the campaign.
- How well do advertisers and their agencies understand what you can offer?
We have been fortunate enough to build an expectation among brands and their agencies for building innovative and effective solutions. We have an open dialogue and there is a high demand to be kept informed of new developments. Of course, there are clients and agencies that just "get it" and remain ahead of the curve. There are also those who invest not only money but spend the time to maximise the campaigns they conduct on Bebo, and we are fortunate to work with many such brands and agencies.
- How do you market your brand to consumers?
Traditionally, Bebo's greatest marketing tool has been word of mouth, and like many networks it is a significant reason for our growth. Over time we have also been involved in some amazing public campaigns from Nike "danceclash" to the Home Office "It doesn't have to happen" campaign - and, of course, Comic Relief, which we will be backing again in 2009.
STEPHEN HAINES - UK SALES DIRECTOR, FACEBOOK
- How vital a role does display advertising play in your revenue model?
Advertising plays a big role in our model today. We are already working with advertisers who are directing significant funds into campaigns on Facebook. Facebook now has more than 150 million users actively engaging with the site, so advertising enables businesses to reach a broad range of people and target their messages based on people's interests. At the moment, our commercial focus is on display advertising.
- Critics have suggested that it is hard for social networks to monetise their audience to the same degree as other media. How fair is this assessment?
This is a myth. It is difficult to bucket social media into a single category. Companies such as Facebook, YouTube, Bebo and MySpace are all considered social media, yet we each have different business models and play different roles in consumers' lives. Do I think traditional untargeted ROS banners and buttons will work in this space? Not in the long term; but this is being addressed across the board with new formats, targeting and functionality. That said, I believe formats in all channels will change. At Facebook, we have three different sales channels to meet the needs of our various commercial audiences, and they are all seeing similar growth to that of our consumer growth.
- What have been your most innovative partnerships with other media owners?
We are currently running a programme with CNN in the US around the Presidential inauguration and integrating our community tools with CNN's editorial strength to drive a new generation of news and coverage. Most television programmes are integrating our capabilities into their sites, allowing audiences to share and communicate information, news and stories about shows, viewing intentions and much more. They do this using free functionality and get the advantages of allowing their programming to be shared by the 150 million Facebook users around the world.
- Can you provide an example of how advertisers are working with you in new, exciting ways?
The work we are doing with Sky on both a brand and direct-response level, MTV and its coverage of the European Music Awards, Chris Moyles and his Radio One show, the Royal Opera House and membership acquisition, and Ben & Jerry's with its free ice-cream cone giveaway. All of these brands are leveraging Facebook Platform to become a part of the conversation both on and off the site. They are influencing behaviour on a very large scale and are meeting their brand objectives.
- How well do advertisers and their agencies understand what you can offer?
The Facebook ad product offering is powerful yet simple. We can give brands, which are primarily below-the-line performance-based advertisers, an efficient and effective media offering that, on an ROI basis, is very competitive. We are also able to work with key brands to develop solutions and campaigns offering above-the-line marketers a toolset and media capabilities that deliver against their traditional brand objectives. With one of the largest audiences in the UK in terms of active users, page views and time spent, serious media planners and traders understand the value of the Facebook platform.
- How do you market your brand to consumers?
The brand, platform and functionality has been compelling and strong enough to drive the significant growth that we have seen in the UK, Europe and around the world. This rapid growth continues outside of any active marketing and is driven by word of mouth, user invitation and effective user and media communications. The product markets itself!