1. It’s noisy, it’s subject to fads,
and it’s insanely popular
Yes, social media is here to stay. With Facebook engaging more than 800 million monthly active
users worldwide and earning more than 3 billion dollars in annual ad revenue, there‟s no doubt that
social media infiltrates our lives and affects our behavior.
But can it boost your company‟s bottom line? The insight presented here examines the impact of
social media and its potential to drive more than mere awareness.
In this presentation, you’ll discover:
• Who‟s likely to buy from social media sites
• How marketers are using social today
• What you need to do to master social marketing
With this compilation of the industry‟s latest data and insights, you‟ll get the information you need to
take social media to the next level - and to seize new opportunities for marketing success.
Enjoy!
The Adobe Digital Marketing Team

2. Putting the marketing in
Social media marketing
This presentation is part of MarketingCharts‟ Data Insights series featuring trends, data and research. This
collection brings together months of surveys, reports and insights released by research and marketing
organizations.
The charts in this collection are ready to (re)use and embed. Feel free to share the whole presentation or any
slide, with your colleagues and business partners, but please preserve credits to our sponsor Adobe, the
organizations that provided the source data, and our links to MarketingCharts.com.
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DATA INSIGHTS

3. Is social media a marketing treadmill?
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3

4. Yes, social media is a busy, noisy environment…
37%
35%
36% of tweets “worth
reading” are gobbled
13%
by boring majority
Carnegie Mellon University, Jan. 2012
Do not use any social media Ads Not very/not useful Ads Very/somewhat useful
sites
while a solid majority of Americans
either don‟t use social media or don‟t
find ads in social media too useful
Epsilon, Dec. 2011
SPONSORED BY
4

5. …subject to fads and fashions.
Dec-11 Jan-12 All of a sudden you
30% keep hearing about
25%
Pinterest
Meanwhile where are Bebo, MySpace,
Digg, Second Life, Slashdot,
20% Friendster, and countless other social
networks and online communities
whose heyday came and went?
15%
Shareholic, Jan. 2012
10%
5%
0%
Referral traffic by source
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5

6. And it is “free” only if you don‟t account for time spent.
25%
63% of community
20%
managers spend more
than 30 hours a week
15% on their community, with a plurality
spending 41-50 hours (26%). In other
words, management of corporate
social media has become a full-time
10% job in many marketing departments.
Social Fresh, Jan. 2012
5%
0%
Most time-consuming task for community managers
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6

7. Account proliferation contributes to overload…
Twitter 39.2 Companies with
Blog 31.9 1,000+ employees
Facebook 29.9
have an average of
178 social media
LinkedIn 28.8
accounts,
Forum/Message board/ only 48% have a coordinated
23.4
Communities approach to social media
YouTube
deployments across the company
9.4
Altimeter Group, Jan. 2012
Foursquare 6.3
All
5.3
others
Flickr 0.3
Gowalla 0.3
Number of corporate-owned social media accounts
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7

8. …and resources can be a challenge.
Top social marketing challenge
77%
58%
42%
37%
34% 33%
31%
22%
Lack of sufficient Measuring Managing and Integrating Integrating Monitoring social Managing Social media
resources ROI growing social social with social with media publishing of training
presence lead gen and rest of social content
sales marketing across platforms
77% of marketers feel they lack resources
A majority also struggle to measure ROI… which usually doesn‟t help getting more resources!
Awareness, Dec. 2011
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8

9. Yet… can you argue with success?
900M 60%
800M
50%
700M
600M 40%
500M
30%
400M
300M 20%
200M
10%
100M
0M 0%
Mar-09
Apr-09
May-09
Jul-09
Mar-10
Apr-10
May-10
Jul-10
Mar-11
Apr-11
May-11
Jul-11
Oct-09
Oct-10
Nov-09
Feb-10
Feb-11
Oct-11
Aug-09
Dec-09
Nov-10
Dec-10
Jun-09
Sep-09
Jan-10
Jun-10
Aug-10
Sep-10
Jan-11
Jun-11
Aug-11
Sep-11
Nov-11
Dec-11
MAUs DAUs Daily/Monthly
Facebook going towards 1 billion
monthly active users (MAUs) worldwide
An unprecedented scale, with a daily use rate (DAUs as a %age of MAUs) sustained above 50% of total users
Company SEC filing, Feb. 2012
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9

10. Facebook and Youtube have emerged as
behemoths that cannot be ignored.
Facebook
The two market leaders
YouTube dwarf everyone else with
Twitter an undeniable critical
Yahoo! Answers
mass in terms of time
spent by users
Tagged
Experian Hitwise, Feb. 2012
Linkedin
Pinterest
MySpace
Google+
myYearbook
0% 10% 20% 30% 40% 50% 60% 70%
US market share of visits, January 2012
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10

11. Social media does affect behavior
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11

12. Social recommendation improves media perception
80%
14% uplift in enjoyment
70%
7% of recommended video
12% and 41% decrease in the proportion of
60%
people who didn‟t like the video.
50%
Decipher/Unruly Media, Feb. 2012
40%
65% See also Trendrr.TV analysis and
30% Hollywood Reporter / Penn Schoen
57%
Berland survey, March 2012
20%
10%
0%
Browsing Via Recommendation
Enjoyed video Did not enjoy
Impact of social recommendation on video perception
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12

13. Social login contributes to website stickiness
14
Users logged in via a
12
12
social plugin stay more
than twice as long as
visitors that don‟t log in at all. They
10
stay 12 minutes on average, which
beats standard login visits too.
8
8
Gigya, Jan. 2012
6
5
4
2
-
Social login Standard login Not logged in
Website session length in minutes
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13

14. Social sharing increases email click-through
10% 9.6%
9%
Email CTR twice
8%
higher or more
thanks to social sharing buttons
7%
GetResponse, Jan. 2012
6%
5.4%
5.0%
5%
4%
3% 2.6%
2%
1%
0%
CTR without sharing CTR with Twitter CTR with Facebook CTR with LinkedIn
CTR with or without social sharing
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14

15. Social networks are used to find local businesses
16%
15% In 4 years the role of
14% social networks moved
12% from anecdotal to
nontrivial in helping
10%
9% people find information
8%
7%
about local businesses
6%
Localeze/15miles/comScore, Feb.
4% 2012
4%
2%
0%
2008 2009 2010 2011
Social Network Local Business Search Usage
(% of respondents citing social media as primary and secondary source)
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15

16. Social can drive sales
but faces perception challenges
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16

17. Women‟s influence on purchasing decisions
expands through social networks
Millenials Xers Boomers Seniors
I am an influential information source 73% 53% 51% 44%
I regularly influence friends and family to buy or not to buy a
particular product or service 69% 49% 41% 27%
Using social network sites has made it easier for me to decide
on what to buy 61% 46% 36% 29%
Using social network sites to share my shopping and product
experiences make me feel more empowered 51% 33% 19% 9%
Women’s marketplace influence self-assessment
73% of young adult women
describe themselves as
influential information sources
Ipsos Mendelsohn / Fleishman Hillard /Hearst, Jan.
2012
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17

18. Online orders via social media are larger on average
Affiliates average
across digital Social media appears to
Natural Search channels
drive less bargain-
Email seeking “transactional”
Comparison Shopping shoppers than other
Paid Search digital channels
Display
ClearSaleing, Feb. 2012
Social Media
$- $100 $200 $300
Average order size by digital channel
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18

19. Social sharing can trickle down to orders
A quarter of online
shoppers, who shop
All shoppers (100%) at least quarterly
62% online and login to
Read friend comments (62%) their Facebook
75% account at least
Click through to retailer (47%) monthly, have made a
purchase based on a
53%
Purchase product (25%) social
recommendation
% of online shoppers who are also Facebook users Sociable Labs, March 2012
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19

20. Social media barely registers for holiday deal seekers
Companies' websites 24%
Facebook and Twitter
Print 15% way behind other online
Email newsletters 13% and offline ways to
Talking with friends and family 9%
share good holiday
deals
Online flyers 5%
Crowd Science, Jan. 2012
Facebook 3%
Twitter 1%
RSS feeds 1%
Other 5%
No preferred method 24%
0% 5% 10% 15% 20% 25%
Favorite way to find holiday shopping deals
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20

21. Younger people trust online reviews more…
66%
51%
49% 51% of millenials say
user-generated content
34% on a company website
most likely to influence
their opinion when
making a purchase
BazaarVoice survey, Jan. 2012
From friends and family From online content reviews
Millenials Boomers
Recommendations as Purchase Influencers
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21

22. …but personalization and privacy expectations
are less often met while shopping on Facebook…
On tablet 23% 61.5% 15.5% Shopping
personalization more
than twice as likely to be
On smartphone 18.5% 64.7% 16.8%
found lacking on
Facebook
21% also found their privacy
On Facebook 22.9% 61.4% 15.7% expectations were not met.
Baynote survey, Jan. 2012
On e-commerce
site 24% 69.3% 6.6%
Exceeded expectations Met expectations
Personalized shopping experience
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22

23. …and direct shopping on Facebook is a mixed picture.
35% 34%
32%
30%
Only 19% have or would
25% shop on Facebook
Less than the proportion of people saying
they wouldn‟t ever. But a plurality of
20% people polled either didn‟t use Facebook
or didn‟t know they could make
15% purchases there.
15%
Oracle, Dec. 2011
10%
10% 9%
5%
0%
would never Do no use Did not know Would Have
purchase Facebook possible purchase purchased
Product purchase intent via retailer’s FB page
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23

24. Social commerce trust skews towards
young, male, more affluent.
100%
90% Majority of females and
80% people of age 54+
are less likely to be comfortable giving
70% their credit card information to a known
60% brand through a secure payment process
on a social media site.
50%
Digitas/Harris Interactive, Feb. 2012
40%
30%
49% 49% 50%
20% 38% 40%
35%
10%
0%
54+ $35K- Female 18-54 Male $35K+
More likely Less likely
Likelihood of giving credit card information
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24

25. Trust and privacy concerns
limit what people are willing to share.
100%
90% For all the talk about
80% online over-sharing,
real world concerns still affect what
70%
people are willing to share online.
60% Women tend to keep to themselves data
that could be used to find them.
50%
40% uSamp, Feb. 2012
30%
20%
10%
0%
Men Women Men Women Men Women Men Women Men Women
Name Email address Phone number Physical address Location
Yes Probably not Definitely not
Are you willing to share…
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25

26. Social media advertising: more data
needed to understand momentum
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26

27. Facebook now generating $3B+ in ad revenue per year
Growth rate Ad revenue ($M)
Facebook‟s 2011 ad
$3.5B 200%
$3,154M
180%
$3.0B revenue is equivalent to
160%
Google‟s in 2004
$2.5B 140%
Meanwhile, LinkedIn and Twitter‟s 2011
120% ad revenue were at around $155M and
$2.0B
$1,868M $140M respectively.
100%
$1.5B
80% Company SEC filings, Feb. 2012
60%
$1.0B
Facebook had a 28%
$764M 40%
$0.5B
market share
$151M $269M
20% of the US online display ad market in
2011
$0.0B 0%
2007 2008 2009 2010 2011
Comscore, Feb. 2012
Facebook’s ad revenue ($M) and growth rate (%)
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27

28. Facebook ahead of PPC/SEM among small businesses
25%
24%
23%
18%
12%
11%
Facebook advertising
used by almost one in
four small businesses
MerchantCircle, Dec. 2011
Print Direct mail Facebook ads PPC & SEM Group deals Online
newspaper newspaper
Small business marketing channel use
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28

29. While Google is promoting Google+ aggressively
180
160
How many people really
adopt and use Google+
140 and how Google continues to integrate it
with both Adwords and organic search
120
results could have a major impact on
both SEO and SEM practices and
100
spending.
80
Google hasn‟t released numbers for
60 daily/monthly G+ active users so a fair
comparison with other networks is hard
40 to make.
20 (Rough) estimate of G+ users: Paul Allen
with a few datapoints from Google;
0 MarketingCharts filling in the gaps
Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12
Google+ global registered users (millions)
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29

30. But people are ambivalent about personalized search
A strong minority doesn‟t
like the idea of
Yes
16%
personalized web
search
45% Yes, but I do have some and its supporters seem rather
concerns about privacy
lukewarm. If there‟s strong user
pushback then Google will have another
No, I think everyone failed social platform in its track record.
39%
should see the same
results when searching Ask Your Target Market, Jan. 2012
the same keyword
Do you like the idea of personalizing search results
based on past searches and info from your social
networking sites?
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30

31. A lot of data is missing on social advertising,
monetization, and genuine active use
There is a lot of data that companies such as
Facebook, Google or Twitter are not sharing:
- How many advertisers does Facebook have?
- How many people really use Google+ on a
daily basis?
- What is the proportion of all these social
media accounts that might be duplicates,
fakes, empty shells, or otherwise worthless?
- Are people sticking to any social network for
more than just a few years?
The social media momentum is real but all
datapoints should not be taken at face value
and marketers need to do their homework in
their specific market.
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31

32. The state of social media marketing
practices: peer benchmarking
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32

33. Even blue-chip industries like banking
have ramped up their social media presence.
Internet websites 76%
SocNet pages and postings 47%
Online or mobile
video segments 41%
Print magazines 39%
Online communities
and affinity groups 31% Almost half of bank
Digital signage
and point-of-service 29% marketers use social
Digital media formats
(mobile, tablets, eReaders) 25% media to deliver
eMagazines (dynamic
publishing systems) 24% branded marketing
DVD products 15%
content
and close to 40% use social media
Infomercials 7% analytics and conversation monitoring
IP-TV programs 4% CMO Council, December 2011
Other 14%
Marketing channels used by banks for their content
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33

34. Marketers are excited by social media engagement
Social media engagement 54%
Mobile optimization 38%
Content optimization 37%
Conversion rate optimization 31%
Social media
Brand building / viral marketing 27%
engagement tops
Video marketing 24% the list of digital marketing initiatives that
gets marketing professionals excited.
Joining up online and offline data 23%
39% also make it a top priority.
Social media analytics 19%
Adobe / Econsultancy, Feb. 2012
Content marketing 18%
See also Pointroll/Kelton Research
Marketing automation 11%
survey, March 2012
Gamification 6%
Sponsored tweets 2%
0% 20% 40% 60%
Most exciting digital marketing opportunities
(Total > 100% because respondents were asked their top 3)
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34

35. They think it‟s a source of success, competitive
advantage, and even survival
Companies that A majority of senior
don't fully embrace
16 26 39 20
social media will not
survive
marketers think
businesses must
Companies can gain embrace social media
competitive
advantage by 13 17 36 35 Facebook / Forrester, March 2012
leveraging social
media
Social media
enables businesses
13 28 42 18
to be more
successful
Strongly disagree Disagree Agree Strongly agree
% of senior marketers
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35

36. They use social sites to listen & engage…
Improved customer listening,
engagement and conversations 55%
Opened new avenues to
gather and further market insights 55%
Increased the complexity of
marketing,… 47%
Opened opportunities to survey,
25%
test and research products/services More than half of
Improved customer intelligence 20% marketers have
New efficiencies / effectiveness
20%
improved how they
in our go-to-market programs
Increased headcount to add
interact with customers
talent to manage social media 14%
and gather market
Reduced advertising/media spend 14% insights
Lowered cost of
customer service 5% CMO Council, Dec. 2011
Other 11%
Social Media Impact on Marketing Operations
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36

37. …and collect valuable data.
Prior marketing campaigns (e.g. for
remarketing) 3.7
Web analytics providers 3.4
Social media and/or mobile applications 3.3
Search engines 3.1
Data originators (e.g. survey / market
research) 3.0 Social media comes
Commercial data compilers (focused on
3.0
offline data)
third among third-party
Online ad networks / exchanges 2.9
Offline audience measurement platforms
2.8
data sources ranked by
(e.g. Nielsen, IRI)
Publisher registration data 2.8 value
Data exchanges 2.6
Winterberry Group, Jan. 2012
List brokers and managers 2.5 average = 3.0
0 1 2 3 4
To what extent is your company realizing value
from the utilization of third-party marketing data?
SPONSORED BY
37

38. CRM with a social layer lifts sales productivity
21% 21%
19%
15%
16% More than half of social-
enabled CRM saw a
10%+ rise in productivity
7% Nucleus Research, March 2012
0% 1-5% 5-10% 10-15% 15-20% >20%
Improved Sales Productivity from Social CRM
(% of respondents)
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38

39. But practitioners lack standard ROI metrics,
38%
24% Fewer marketers tie
social media marketing
15% to sales/revenue
though their number is growing
Wildfire, Jan. 2012
Increased fans, likes, Increased revenue Increased brand awareness
comments, interactions
Measuring ROI on Social Media Campaigns
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39

40. …tend to focus on “soft” goals…
88%
85%
58%
Brand awareness
growth & customer
41%
engagement dominate
expectations
Wildfire, Jan. 2012
See also Social Media Examiner, April
2012
Grow brand Engage in dialogue Increase sales and Reduce costs
awareness partnerships
Benefits of Social Media Campaigns
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40

41. …such as awareness and reach.
Awareness building 64%
Low expectations for
Building customer loyalty and retention 48% lead gen and
Expanding reach to new audience 44%
revenue generation
StrongMail/Zoomerang, Dec. 2011
New customer acquisition 36%
B2B lead generation 19%
Driving revenue 14%
Not sure/still trying to figure that out 11%
I don't see any value 3%
Other 2%
0% 10% 20% 30% 40% 50% 60% 70%
Primary value of social media as a marketing channel
(total above 100% because multiple answers were allowed)
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41

42. Is a Facebook „Like‟ an actionable marketing event?
Engage in futher conversation
with the customer 31%
Foster more community conversations
30%
For most
to spark ongoing engagement
Allow organic conversations,
30%
organizations what
no censorship or editing
Deliver special offers, discounts,
22%
to do after a
or deals exclusive to fans
Deliver more targeted,
22%
Facebook „Like‟
individualized messaging
Not sure how to respond,
but we have a lot of "likes" 21%
remains rather fuzzy
Deliver more advertising
to a more captive audience 10%
and informal
Provide enhanced service
and support 10% CMO Council, Dec. 2011
Promote perks,
privileges or benefit 7%
Reward power-posters and
build advocacy among brand champions 7%
Work to provide faster
handling and better customer care 4%
Develop new products
or innovations 4%
Other 15%
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42

43. The relationship between email and social is uncertain…
Marketers are split
on whether email
51%
and social are
45%
complementary or
39%
36% separate channels
Adestra & Econsultancy, March
2012
19%
9%
1% 1%
Complementary channels Separate channels Conflicting channels We don't do social media
2011 2012
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43

44. … and many miss easy integration opportunities…
Do you use sign-up forms to grow your lists? 79%
Do you tell your subscribers specifically what they will receive? 76%
Do you send confirmation emails to your new subscribers? 71%
Is your web form on your homepage and above the fold? 58%
Do you use incentives to encourage subscriptions? 52%
Do you have a newsletter sign-up form included at your blog? 52%
Do you collect contacts offline (tradeshows, stores…)? 44%
Do you run a Facebook page with a newsletter sign-up form? 42%
0% 10% 20% 30% 40% 50% 60% 70% 80%
A majority of small and medium
business don‟t collect email
subscriptions from FB page
GetResponse, Feb. 2012
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44

45. …though they intend to correct that.
Social media marketing 68% Social tops integration
initiatives planned by
Mobile 44% email marketers for
2012
Search 17% StrongMail/Zoomerang, Dec. 2011
Display 14%
Other 8%
0% 10% 20% 30% 40% 50% 60% 70%
Channels planned for integration with email
SPONSORED BY
45

46. A majority will still focus on “feeding the beast” in 2012…
70%
More volume in a
59% universe of ever-
50% expanding online
45%
content
is what many marketing professionals
33% planned for 2012, such as adding a
Google+ presence.
Awareness, Dec. 2011
Simply Measured, Feb. 2012
6%
Increased Increased More robust More robust More social Other
presence across frequency of social marketing social media media presence
social media content management monitoring
platforms publishing
Top Corporate Social Marketing Investment Areas in 2012
SPONSORED BY
46

47. …which means being all over the place.
YouTube/video 76 14 1 33
Facebook 72 23 24 A solid majority of
Twitter 69 23 1 7 marketers plans to
Blogs 68 18 2 12 increase activity
Google+ 67 11 1 21 across half a dozen
LinkedIn 66 23 1 11 platforms.
Photo sharing
sites 38 21 1 40
Forums 34 24 2 40 Social Media Examiner, April 2012
Social
bookmarking 31 22 2 45
Geo-location 23 19 1 57
Daily deals 12 13 3 72
Increase Stay the same Decrease No plans to utilize
Future social media activities (% of marketers)
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47

48. But they will have to face questions of
sustainability and media selection… 74%
71%
Type of social media in use at Inc. 500 companies
64%
61%
59%
52%
50%
45%
37% 36%
33% 33%
28%
24%
15% 16%
12%
6%
Blogging Message/Bulletin Online video Podcasting Facebook Twitter
boards
2009 2010 2011
The increase in Facebook and Twitter use is done at the expense of previous
generations of online (social) media such as blogs.
University of Massachusetts Dartmouth’s Center for Marketing Research, Jan. 2012
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48

49. …even for channels that most find effective.
100%
90% Facebook joined
80%
other social
70%
channels in
60%
perceived
50%
marketing success
back in 2010
40%
Presumably lower reach and
30%
channel proliferation push
marketers to drop efforts that
20% are otherwise deemed
successful.
10%
University of Massachusetts
0% Dartmouth’s Center for
Message/ Blogging Online video Twitter Facebook Podcasting Foursquare MySpace
Bulletin Marketing Research, Jan.
boards 2012
2009 2010 2011
Social media marketing success rate by channel
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49

50. Is increased spending the answer?
25%
CMOs plan to
19.5% raise spending by
20%
more than 2x over
15%
the next 5 years
10.8% Duke University’s Fuqua
School of Business, Feb. 2012
10%
7.4%
5%
0%
Current levels Next 12 months Next 5 years
SPONSORED BY
50

51. Data sources
Data sources in this presentation include:
Adestra - Altimer Group - Awareness - Baynote - BazaarVoice - Carnegie Mellon University -
Comscore - CMO Council - Crowd Science - Decipher - Digitas - Duke University -
Econsultancy - Epsilon - Forrester - Gygia - Harris Interactive - Ipsos Mendelsohn - Nucleus
Research - Sociable Labs - Social Fresh - Social Media Examiner - Umass Dartmouth –
Winterberry Group - Wildfire - Zoomerang - Some public companies via their SEC filings
This slideshow was put together by MarketingCharts.com, part of the Watershed Publishing
network of business-to-business online trade publications. You can find our content on
Twitter, Facebook, and Pinterest.
Please contact Sarah Roberts at sarah@watershed-publishing.com to become a sponsor of a
Data Insights package like this one.
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51

52. Some food for thought and action
based on the data and trends…
• Have you tried advertising on Facebook? It is still
cheap, is relatively easy to operate, and comes with
powerful demographics targeting.
• Are there social channels you can safely discontinue?
Others you should experiment with?
• Do you have a plan to do more than just chase
fleeting social exposure?
• Are you able to measure how social media really
contributes to your business?