Measuring the Influence of Social Media
- 1. Measuring the Influence of Social Media
- 2. Social Media is All About Relationships Individuals creating new connections and openly sharing ideas, experiences and opinions Participation requires: Listening and learning Joining the conversation to contribute value and build relationships A new approach to marketing effectiveness measurement Goals of brand participation: Gain deep customer insight Cultivate, facilitate consumer influence
- 3. A New Type of Marketing Social media surrounds your marketing funnel Influences prospects at every stage and can move them forward Brand Marketing Direct Response Awareness Interest Evaluation Trial Referral Commitment Upsell Blogs Communities Social Networks Discussion Boards Video Sharing Social Bookmarking Twitter Review Sites New Type of Marketing: Social Influence
- 4. The Power of Consumer Influence 91% say consumer content is the #1 aid to a buying decision (JC Williams Group) 87% trust a friendâs recommendation over a review by a critic (Marketing Sherpa) Social network users are 3 times more likely to trust peer opinions over advertising when making purchase decisions (JupiterResearch) 1 word-of-mouth conversation has the impact of 200 TV ads (BuzzAgent) Social media sites are the fastest-growing category on the Web - doubling their traffic over the last year (Comscore) Information Technology buyers trust social media more than any other content source (PJA IT Social Media Index)
- 5. The Worldâs Top Brands Listen and Respond â The best brands follow their stakeholdersâ journeys so that they provide effective, consistent and appropriate messaging throughout the experience.â â The turnaround brands all show a sense of understanding consumersâ needs and desires, and rediscovering the appetite to meet their customer promise.â Interbrand Best Global Brands
- 6. New Marketing Attitudes â Social media allows customers to express their opinions and publish them to the world, and we cannot afford not to participate in the conversation. I think in five years, you wonât specifically talk about social media. It will just be an integral part of how you go to market, and how you get your marketing mix . â Eric Kintz, Hewlett-Packard â We need to think about giving the users the ability to connect with one another, which is the real interactivity of using the Web. This will allow brands to be the connection point between two or more parties and not just a connection point to the brand .â Eric DâAblaing, Hyundai â Display advertising's main role will be to quickly, straightforwardly, informatively draw you into a broader brand experience .â Bob Garfield, AdAge "Advertising is not dead; it's really important, but it's more about fanning the flames of word-of-mouth than anything else." Rory Finlay, Beam Global Spirits & Wines
- 7. Measuring Influence of Relationships Measuring the impact on social media is about determining influence of these relationships on: Media (social media and traditional media) Target Audience Business Results
- 8. Types of Success Metrics Goals Metrics How Compiled Action and Insight Engagement and Influence Reach Sales inquiries New business Customer satisfaction / loyalty Marketing efficiency Risk reduction Sentiment of reviews/comments Brand affinity Commenter authority/influence Time spent Diggs, votes Favorites / Friends / Fans Viral forwards Number of downloads Opinions expressed Membership Visits / views Unique visitors Pages viewed Volume of reviews/comments Navigation paths Links Files embedded Surveys Market Mix Modeling Social media platform metrics Social media analysis tools Free tools: Google, Technorati Social media platform metrics Web analytics Business Influence: Outcomes Audience Influence: Outtakes Media Influence: Outputs
- 9. Examples: Media and Audience Influence Sentiment Across All Media Sentiment in Online Mainstream Media Competitive Brands Mentioned in IBM-Related Posts Topics Discussed Viral Video Statistics Most Influential Posts
- 10. Business Influence Examples Difficult to measure directly â measuring the value of insight and relationships Several studies have addressed the business impact: Aberdeen Group: Surveyed 250 companies currently using social media to determine how it has impacted their business Fox Interactive / TNS / Marketing Evolution: Study on the impact of marketing on social networks
- 11. Best-in-Class are Making a Business Impact Companies with âBest-in-Classâ social media practices far outperform average companies in many key areas Source | Aberdeen Group 2008
- 12. Success Requires Active Engagement â Best-in-Classâ companies are actively involved in communities surrounding their marketplace Active Engagement Monitors and contributes to the conversation Passive Engagement Monitors but does not contribute to the conversation Source | Aberdeen Group 2008
- 13. Best-in-Class Focus on Success Metrics â Best-in-Classâ companies are defining specific business metrics to quantify success Source | Aberdeen Group 2008
- 14. The Value of Social Networks 70% of the value from social networks is from the âmomentum effectâ where consumers use and share brand elements on their profile Visibility The Adidas page in this study was viewed 600,000 times in a month Momentum effect resulting in 21 million interactions with the brand in that time Purchase Intent The average cost to influence purchase intent in social networks is 3X better than the average for all of online marketing Source | âNever Ending Friendingâ
- 15. The ROI of Word of Mouth ChatThreads determined the value received from a word-of-mouth conversation for a consumer package goods product is almost twice the cost Source | ChatThreads ARF Audience Measurement 3.0 $ 0.24 Net Value $ 0.27 Cost Per Conversation $ 0.51 Value of a Single WOM Conversation
- 16. Many Departments Benefit From Social Media Many groups have an ownership of social media â these programs connect departmental silos Source | Aberdeen Group 2008
- 17. Clear Objectives are Key To Success Source | Portions from Forrester Product ideas generated Speed of development Questions answered Customer satisfaction Avoided support calls Community membership Recommendations Sales inquiries / leads Awareness and buzz Time spent Change brand perceptions Purchase intent Customer knowledge Competitive insights Cost savings over focus group Goals Social Media Activities Objective Corporate Function Product Development Customer Service Sales Marketing Research User communities Suggestion boxes Observe reports Embracing User communities, wikis, support forums Loyalty programs Observe reports Support Brand communities Influencer outreach Widgets Energizing Blog, video blogs Social network communities Viral videos, contests Engagement Observe monitoring reports Private communities Digital vision development Listening
- 18. Keys to Success in Social Media An open, transparent communications approach Listening and learning before acting Internal resources dedicated to social media Active engagement in the conversations Clearly defined goals and expectations Risk mitigation plan Success analysis metrics
- 19. Thank You Digital Influence Group www.digitalinfluencegroup.com www.digtrends.com