Protecting Your Brand, Reputation, and Secrets in the Age of Social Media Scott T. MacKay smackay@google.com Nicole Gage ngage@foley.com Russell Beck rbeck@foley.com April 7, 2010
Speakers Scott T. MacKay, Google Boston Nicole Gage, Foley & Lardner Russell Beck, Foley & Lardner 2010 Foley & Lardner LLP
What are we protecting? 2010 Foley & Lardner LLP
5 Trends in the Online World 1 2 3 4 5 Search Social Media YouTube Advertising Mobile - The Next Big Thing
#1. Search
192M Online searchers in the US Almost half of all US Internet users search online on a typical day up from one-third in 2002 rivaling email in popularity.
Every Search is an Opportunity to Connect
As Long as You re on the First Page 68% of search engine users who click do so on the first page of results. Source: iprospect Blended Search Results Study, April 2008
Offline Events Drive Online Searches Reach Your Audience at the Moment of Relevance Source: Compete 2008 Education Study, October
Insights Extending Beyond Search 10
Consumers are Savvy Searchers 11
Maintaining Brand Control How your brands are being used and misused Stay ahead of the curve Squatters Beyond Keywords and Cybersquatters Plan (viral intent or full control) Monitor use Measured response Education is key both internally and externally 2010 Foley & Lardner LLP
#2. Social Media The World of Social Media An Age-Old Phenomenon Meets Cutting-Edge Technology
One 10.6M in (19%) everyofus 11 minutes mobile Web online globally visit social is accounted networks for Over 50% U.S. adults useusers social media to regularly through their by social handset network - up 156% and blogging from the sites. previous year. communicate with others. Music Sharing Instant Messaging Voice Over IP Wall postings Social Networking Weblogs Virtual Video Games PICTURE SHARING Wikis Podcasts Crowd Sourcing Twitter Internet forums Video Sharing
Not Your Daughter s Social Network US Social Network Users, by Age, November 2008 (% of respondents in each group) 58+ 50-57 42-49 34-41 26-33 18-25 23% 41% 49% vs. vs. 53% 53% in in 2007 2007 62% 74% 90% 15 Source: emarketer, Social Networks: Five Consumer Trends for 2009, February 2009
Social Media = Word of Mouth 2.0 Mara Jensen just sent an IRATE email to Flip. It deleted all my videos on my camera instead of just the one video I was saving to my computer! I lost all videos in one sec. Elaine Smith That is horrible! Did you have anything backed up? Mara Jensen Don t have my videos back, but Flip offered me free accessories and an apology. I m a fan again.
Social Networks are Big and Growing Over Over 41% 41% of of Internet Internet users users currently currently visit visit social social networks networks at at least least once once aa month month making making social social networking networking one one of of the the most most popular popular activities activities on on the the web. web. US Online Social Network Users, 2007-2013E Weekly Online Activities of US Internet Users, by Age, September-October 2008 (% respondents) (in millions) Age Ranges 14-25 26-42 43-61 62-75 Searching, downloading, listening to music 85% 66% 44% 29% Researching for business or school 81% 61% 49% 28% Visiting online game sites where you can actually play games 71% 60% 51% 48% Socializing (via social networking sites, chat rooms or message boards) 81% 62% 37% 27% Watching movies and other videos online 67% 62% 40% 26% Using web portals 48% 47% 42% 33% Seeking financial / investment info 32% 49% 44% 49% Creating personal content for others to see 68% 43% 25% 17% Watching TV shows 49% 47% 27% 18% Using a computer video camera 35% 27% 13% 13% Using microphone to condut auto chats or phone calls 30% 23% 12% 6% Participating in online virtual worlds 30% 18% 8% 3% 17 140 120 100 80 88.1 71.6 96.2 103.6 109.1 114.6 79.5 60 40 20 0 2007 2008 2009E 2010E 2011E 2012E 2013E Source: emarketer, Social Networks: Five Consumer Trends for 2009, February 2009
Many Social Networks, One For Everyone
Consumers Are Talking About Brands Methods by Which Active* Adult Internet Users Worldwide Share** Opinions Online About Products and Services, 2008 (% of respondents) Tell someone about product/service by instant messenger 44.5% Tell someone about product/service by email Comment on product/service review on blog 42.4% 30.4% Recommend product/service on blog 29.4% Write review of product/service on e-commerce/retail site 28.9% Comment on product/service review on ecommerce/retail site 28.9% Post opinion on social network personal profile 27.6% Write review of product/service on own personal blog 27.5% Create product wish/favorites list on e-commerce/retail site 27.4% Post video clip featuring product/service *daily or every other day **in the past month Source: Universal McCann Source: emarketer, Social Networks: Five Consumer Trends for 2009, February 2009 25.1% 19
And Are Highly Influential nearly 49% of US connected consumers have made a purchase based on a recommendation gotten through a social media site Razorfish, Digital Consumer Behavior Study as cited in FEED: The Razorfish Consumer Experience Report, October 2008 Source: emarketer, Social Networks: Five Consumer Trends for 2009, February 2009 20
Critical Commentary: Is It Actionable Speech? Congress shall make no law... abridging the freedom of speech, or of the press; or the right of the people to peaceably assemble.... (1st Am. United States Const.) Public comments on products, services, company, or people Employees Fact or opinion True or False Officers and Directors may have additional restrictions Attorneys 2010 Foley & Lardner LLP
Critical Commentary: Who is Speaking? If it Matters, Find the Source Letters Takedown Notices/Requests Subpoenas Internet Searching Private Investigators 2010 Foley & Lardner LLP
Social is a Feature, Not a Strategy
#3. YouTube
77% of Americans online watched a video last month Source: Nielsen, 2009
20% of YouTube s audience is 55+ Source: Nielsen, 2009
Half of all YouTube videos are rated or commented on Source: Nielsen, 2009
Who s Watching? Everyone. The explosion of all types of video content on YouTube and other sites is quickly transforming online video from a medium strictly for entertainment and news into one that is also a reference tool. As a result, video search, on YouTube and across other sites, is rapidly morphing into a new entry point into the Web, one that could rival mainstream search for many types of queries. -At First, Funny Videos. Now, a Reference Tool January 17. 2009 Search Queries (MM) 12000 10000 8000 6000 4000 2000 0 Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 Source: comscore, August 2008
Who s Watching? Everyone. Everyone. Age Gender Users (M) % Users All 98.1 50% <18 23.8 61% 18-34 36.9 57% 35-44 18.0 49% 45-54 12.4 40% 55+ 7.1 30% Male 53.9 53% Female 44.3 47% Source: Nielsen//NetRatings (July 2009)
#4. Advertising
Themes in Online Advertising The Attention Economy Richer Context & Media Ads Mobile Ads Entertain them! Google Confidential and Proprietary
The Attention Economy What does an abundance of information create? The increasing wealth of information creates poverty of attention - Herbert Simon Consumer s need filtered, actionable, relevant information. Microblogging and confusion Clutter and Lifecasting are the we want when we want next big thing beyond blogging -Microblogging is 1word blog posts and lifecasting is image blogging. Flickaday is the most popular lifecast site *Herbert Simon coined the term Attention Economy are not tolerated we want quick, easy shortcuts, what it, and a simple array of choices that cover all bases. Mintel, 2009 Twitter news feeds instant information that you re looking for ( that youre looking for is because you choose to follow a specific feed)
Advertisements must be Relevant & Interesting
But It's All About Where They Land
... And How You Use Your Real Estate 1 2 3 4
Places to Engage are Proliferating Engaged Users Higher Ad Response Rate GOOD ROI 2x more Internet users look at ads on niche sites 4x more time spent interacting with ads on niche sites Mass Media Niche Media Source: AdRelevance Q1-Q4 2006 Internet Ad Spend Is Display Only, comscore Media Matrix, November 2005; *IAB Standard Creative Sizes
#5. Mobile The Next Big Thing
Mobile Search Growth Follows Desktop Experiment in the space now, develop best practices and scale your investment before growth in mobile search advertising explodes Source: Veronis Suhler Stevenson and Merrill Lynch Estimates, June 2008 38 38
Device Proliferation is Accelerating 1B sold in 20 years 1B sold in 4 years 1B sold in 2 years
Usage Patterns are Evolving iphone generating 50x more search queries Japanese teens spend 2 hours on mobile web per day 9 million new subscribers in India every month
2010 Foley & Lardner LLP
42 Other Concerns Lack of formality Blurring of lines between work and non-work Productivity loss/lack of attention Inappropriate content Defamation Data security/trade secret misappropriation IP infringement 2010 Foley & Lardner LLP
Why We Care 2010 Foley & Lardner LLP
Why We Care In over 85% of trade secret cases, the alleged misappropriator was someone the trade secret owner knew either an employee or a business partner. A Statistical Analysis of Trade Secret Litigation in Federal Courts 2010 Foley & Lardner LLP
Why We Care More Than Half of Ex-Employees Admit to Stealing Company Data According to New Study 2010 Foley & Lardner LLP N.Y. Times (Feb. 23, 2009)
Where does this leave us? I worry that no matter how cynical you become, you still can t keep up. - Lily Tomlin 2010 Foley & Lardner LLP
How can we protect ourselves? What are your tools? The Seven S s of Systemization State it Stamp it Secure it Shred it Sign it Supplement it Substantiate it 2010 Foley & Lardner LLP
Policy Private vs. privileged communications Policy to fit corporate culture company owns equipment personal use of all company resources is prohibited company will monitor company may review company keeps copies of communications company reserves right to discipline Require employee acknowledgement Enforce! 2010 Foley & Lardner LLP
What s the right balance? Corporate Culture Importance of information / need for enforcement 2010 Foley & Lardner LLP Corporate Culture Inconvenience Cost
http://tradesecretnoncompete.com