Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
The real value of social media
1. Where is the Real Value of
Social Media?
SMS Club session
February 10, 2011
2. Agenda for tonight
▪ Introduction to Social media …
a few facts and ideas
▪ Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪ Leveraging social media in business …
does your company facebook?
3. Agenda for tonight
▪ Introduction to Social media …
a few facts and ideas
▪ Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪ Leveraging social media in business …
does your company facebook?
5. Social media does include YouTube marketing …
Direct social media engagement
drove impact
Traffic to
• Videos generated more than 34 oldspice.com grew 300%
million aggregate views and a billion
PR impression in a single week
• Old Spice, with 94 million views, had
become the No. 1 all‐time most‐
viewed sponsored channel on
YouTube
• Facebook fan interaction jumped
800% since the launch of the
personalized videos
Old Spice launched 186 viral videos featuring
http://www.youtube.com/watch?v=owGykVbfgUE former NFL wide receiver Isaiah Mustafa as
“The Man You Can Smell Like”
4
7. … which can inform and bring innovation across
business functions
Product development Marketing and sales Service
1 Product innovation 4 Brand positioning and 8 Service experience
messaging and engagement
2 Launch and real time
product feedback 5 Brand health along the 9 Defensive branding
consumer decision journey
3 Merchant insights
6 Social media marketing
7 Marketing ROI
SOURCE: NM Incite 6
9. Agenda for tonight
▪ Introduction to Social media …
a few facts and ideas
▪ Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪ Leveraging social media in business …
does your company facebook?
12. Introducing NM Incite: an innovative Joint Venture between
Nielsen and McKinsey & Company
What is NM Incite? Our value proposition
We enable our clients to capture value from social media
intelligence and social marketing:
▪ Jointly owned by Nielsen and McKinsey; co‐developing social
media software, metrics, analytic services ▪ Discover unprompted, authentic consumer insights on brand
strengths and weaknesses, unmet consumer needs, etc.
▪ Market leader in enterprise social media
monitoring/analytics (Source: Forrester) ▪ Set and track rigorous measurements of earned media e.g.,:
– Brand share vs. competitors
▪ Dataset: Billions of social media conversations per year – Reach of brand buzz (for media mix modeling)
across 120 million blogs, message boards, customer reviews
– Brand attributes
and social networks
▪ Global: 14 markets now (US, UK, Germany, Spain, Italy, ▪ Build marketing, communications, and service capabilities to
understand and engage consumers, e.g.
France, Australia, New Zealand, China, Japan, India, Brazil,
– Talent
Canada and Korea); 20 by EOY 2010; over 150 clients globally
– Central vs. distributed structure
▪ Proprietary technology for analyzing social media – Platforms
▪ Dedicated analyst support with category expertise – Performance management
13. Agenda for tonight
▪ Introduction to Social media …
a few facts and ideas
▪ Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪ Leveraging social media in business …
does your company facebook?
14. You have likely seen the data …
Social is Significant and Rich with Valuable Consumer Data
More than 2/3 of Facebook Rising
Globally consumers global consumers
spend 6 hours a use online product
month on Facebook reviews to make
purchase decisions
>35% of consumers
More than 60% of
rely on peer
consumers have
recommendations
visited a consumer‐
and WOM to make
driven website
purchase decisions
15. And learned new media frameworks ...
How Should We Be Thinking About Media in Today’s Landscape?
PAID EARNED OWNED
Example
Tactics
Marketing • Drive Awareness • Build advocacy • Deliver deep brand
Objective • Enhance equity / liking • Drive credibility of or category knowledge
• Build emotional rapport messaging • Build a sustained relation‐
• “Personalize” branding • Build community ship with my consumers
for consumer • Connect w/ consumers • Drive Sales
20. Increasingly relevant for brands
“This product made my hair frizzy, dry and
“I love this shampoo. I went through a phase worst of all, led to...HAIR LOSS! Totally not
in my life where I dyed my hair every color worth it. I will go back to my old shampoo
under the sun. This caused my hair to and conditioner.”
become dry and damaged. No matter what
product I used nothing helped. Then this
beauty came into my life and my hair is
wonderful! I suggest this to anyone with
dryness, split ends, or frizz.” of online discussion
26% mentions brands
SOURCE: NM Incite 19
22. Social media drives intent …
Net sentiment and change in purchase intent from buzz exposure (case example)
Large
increase
in intent
A Brand A had a 15% lift
Difference in in purchase intent vs.
B
intent between 3% for Brand E
exposed and
control
E D
No increase C
in intent
Less positive buzz More positive buzz
Net sentiment
SOURCE: NM Incite 21
23. … and influences sales
Online word‐of‐mouth influence on purchases (European example)
Percent of sales influenced
Electronics and
computer equipment 29
Beauty care and clothes Word‐of‐mouth is the
27 primary factor behind
Finance products/ of all purchasing
services 27 decisions
Telecom services 25
Travel & Entertainment
22
SOURCE: McKinsey 22
24. Impact spans beyond marketing and sales
Measurable impact of using social media and other web 2.0 technologies
Percent of companies
Increasing marketing effectiveness (e.g.,
awareness, consideration, conversion, loyalty) 63
Increasing customer satisfaction 47
Reducing marketing costs 43
Reducing customer support costs 32
Reducing travel costs 26
Increasing revenue 25
Reducing time to market for products/services 23
Increasing number of successful product/service
innovations 21
SOURCE: McKinsey Global Institute 23
27. Relevance: buzz can be messy
What people tweet
of tweets have
~50% “useless” information
... but cutting through this
messiness is where the value
and your advantage lies.
In a word: Unprompted!
SOURCE: Nielsen; Google Trends; Mashable 26
28. Challenges of social media measurement
Relevance Reach and impact Advocacy
▪ Identifying relevant ▪ Measuring the full ▪ Identifying
information reach of social media “influencers” and
and its influence measuring influence
▪ Determining the right ▪ Quantifying the ▪ Determining the
scope for your business impact impact of online
brand/product (marketing ROI) advocacy and
category criticism
27
34. What is social media?
Product development
Marketing
Customer care
Defensive branding
33
35. Product development example: Kraft ILLUSTRATIVE VERBATIM
“I LOVE fun food”
“I hate it when my
refrigerator is without…”
“…when I’m
eating in my “I wish I could find…”
car.”
“Mornings are
Brand IMPOSSIBLE
without my…” “We will be focusing on developing several
Centric concepts out of this work for further testing.”
‐ NPD Group, Kraft
36. Marketing example: Philadelphia cream cheese
Direct social media
engagement drove impact
Philadelphia Cream
Cheese partnered
▪ Paula Deen’s video
with Food Network
introduction has 10MM+
star Paula Deen to YouTube views
invite everyday ▪ Website has had 550,000
cooks to create a unique visitors and 3,600
community recipe submissions, and
cookbook an estimated total 97MM
impressions
Sales growth of 8% since launch
SOURCE: Website; Equal 35
38. Using Digital Media to Maximum Effect
▪ 2X GRPs in earned media to
paid media (U.S.)
▪ 26% increase in spontaneous
awareness (France)
▪ 8% increase in purchase
intent (France)
▪ 5% sales increase above base
spend in weeks following the
campaign (U.K.)
39. What is social media?
▪ Who can engage?
▪ How to guide engagement?
▪ What systems to track
engagement?
▪ How to build engagement
into core processes?
38
40. ASDA: In testing and learning mode with Facebook
“We’ve been looking at how do we
internally get ourselves ready for
plugging Facebook into what we
already do.”
“We’re tip‐toe‐ing our way into
Facebook with things like George
Brands… building up the fan base
quite organically. Not going too
DOMINIC BURCH, aggressively, too early.”
ASDA Head of Corp Comms and New Media
41. Sense & Respond to Threats, Be Prepared
Feb – BBC runs program on
March – Greenpeace launches anti‐
Palm Oil / Deforestation March – Nestle
Nestle campaign (palm oil)
called out for poor
corp response
on Facebook
May – Nestle Mar/Apr –
changes policies Greenpeace
related to Palm campaign and
Oil sourcing Facebook mishap
hit mainstream
media
43. Increasing customer lifetime value by improving
service experience
Trended Sentiment Score
3.5
3.0
2.5
BT or
2.0 British
Telecom
1.5
1.0
0.5
15 26 10 24 07 21 5 19 02 16 30 13 27 11 25 08 22 06 20 03 17 31 14 28 14 28 11
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2009 2010
44. The Consumer Experience
Twitter – @BTCare
BT.com/help
BT.com Community Forums
You Tube BTCare Channel
BT.com Community Forums
Mobile
Live Chat UK Consumer and Technical Forums
46. Social Media Strategy – What are the main barriers?
Percentage of respondents CLIENT SURVEY
No standard metrics to track impact 52
Cannot quantify impact 50
Senior executives not literate 46
Lack of social media talent to execute plan 40
No clear social media operational plan 40
Lack of case studies 35
Belief that social media is not credible 31
Regulatory concerns 31
No CEO mandate 21
SOURCE: NM Incite Social Media Summit Survey (n=48) 45
47. Mobilizing for social media
▪ What is the source of competitive advantage?
Does it matter? ▪ What is the major driver of growth?
▪ Is corporate strategy central to talent strategy?
▪ Call to action/ burning platform (“creation story”)
How to lead it? ▪ Inspiring, accountable leader(s) – corporate‐wide vs. by function vs. by
BU vs. by geography
▪ Coordinated test‐and‐learn investment program; rapid transfer
How to
of insights
operationalise? ▪ Single standard for measurement (brand health, service quality,
campaign performance) and business cases
▪ Scale and expertise in vendor management
▪ Architect IT for single view of the customer/consumer
▪ Effective governance (values, policies) for consumer engagement
▪ Build/retain talent: own vs. rent, market‐based evaluation
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48. Key Takeaways
1. Social is relevant, impactful, drives intent, and influences sales
2. However, there is impact beyond the Marketing & Sales departments
3. To capture this value, you must create a new strategy and a foundation
in measurement and build a new kind of organization
4. The key is to evolve the way you listen, act, and engage by changes in
culture, talent, and systems
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