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eMarketer Webinar: Measuring Social Media Success
1.
J A N
U A R Y 1 9, 2 0 1 2 Measuring Social Media Success Sponsored by: Debra Aho Williamson Principal Analyst ©2012 eMarketer Inc.
2.
What we’ll look
at today… 1) Why it’s important to get measurement right 2) The four problems of measurement today 3) Metrics for success: Three things all marketers should do 4) How to take measurement to the next level Twitter: #eMwebinar ©2012 eMarketer Inc.
3.
What’s wrong with
social media measurement? A snapshot 11 social “Not a single one of the measurement vendors could help them vendors justify the spend that Big company they’d made in their tools, much less their social campaigns.” ©2012 eMarketer Inc.
4.
The Importance of Social
Media Measurement ©2012 eMarketer Inc.
5.
Marketers believe social
media will bring a range of benefits … … if they can only unlock the key to success. “Global executives attribute 52% of their brand’s reputation to how social it is online today, up from 45% one year ago.” “They project that 65% of their brand’s reputation will come from its online sociability in three years.” Source: Socializing Your Brand: A Brand’s Guide to Sociability, October 2011 ©2012 eMarketer Inc.
6.
Measurement and budget
go hand in hand Marketers need proof that social media works, so they can feel comfortable continuing to invest. Trial: organization does not have a process or guidelines for performing social marketing. Transition: organization has an informal process with a few guidelines it sporadically performs. Strategic: organization has a formal process with thorough guidelines it routinely performs. Twitter: #eMwebinar ©2012 eMarketer Inc.
7.
The
Marketers’ Top Two Digital rewards Marketing Challenges can be great, but #1 Generating and the risks leveraging deep customer are high. insights is a necessity to Accurately compete effectively measuring social #2 media is a Managing brand health and reputation is harder when social must. media plays an important role in marketing Source: McKinsey & Company “McKinsey Quarterly,” November 2011 Image: fotographic1980 / FreeDigitalPhotos.net ©2012 eMarketer Inc.
8.
Social Media Measurement Today
©2012 eMarketer Inc.
9.
Here’s what marketers
say: Social media measurement is not very effective. Even though there are many ways to measure, concrete success metrics remain elusive. Fan count is still a top metric. 60% of marketers use friends, followers or “likes” as a success measure (Chief Marketer, 2011). The ROI question is unanswered. Return on investment is a top challenge of social media marketing, making budgeting difficult. We don’t know what tools to use. One tool or several? Twitter: #eMwebinar ©2012 eMarketer Inc.
10.
Marketers in their
own words “I wish I could say there are many best practices and case studies out there, but right now we are still at the infancy stage of defining a framework for social media measurement.” “I don’t think anybody’s really cracked the code about how these types of online tools directly impact revenue or ROI.” “We’d like to be able to say that because we launched a Facebook sampling tab we’ve increased our fan count and increased sales by a certain percentage, but we’re not in that place yet to have those sorts of metrics.” ©2012 eMarketer Inc.
11.
Only 13% of
marketers say they are ‘very effective’ at measuring results ©2012 eMarketer Inc.
12.
Marketers are more
apt to count fans and ‘likes’ than sales No change from 2010 3 points lower than 2010 ©2012 eMarketer Inc.
13.
Measuring social media ROI is frequently cited as
a challenge ©2012 eMarketer Inc.
14.
Marketers do not
know what tools to use to measure success Twitter: #eMwebinar ©2012 eMarketer Inc.
15.
TKTK
How can social media marketers get to the metrics that matter? Credit: jscreationzs / FreeDigitalPhotos.net ©2012 eMarketer Inc.
16.
Measurement must move
beyond the basics and prove business value “We have gotten to the point where brands and companies are making decisions on whether to increase investment in a channel that is receiving a huge amount of consumer attention. It’s very important to start to move toward measuring in a better, more business- value-focused way.” ©2012 eMarketer Inc.
17.
Three Things Every Marketer
Should Do ©2012 eMarketer Inc.
18.
1) Start measuring
Don’t assume it’s impossible 39% of worldwide retailers don’t measure social media marketing. (Economist Intelligence Unit, April 2011) 36% of UK B2B marketers don’t measure. (PricewaterhouseCoopers, September 2011) 6.9% of high-revenue companies worldwide* don’t measure. (CMO Club/Bazaarvoice, 2011) * half of respondents worked for companies with $1 billion+ in sales Image: nattavut / FreeDigitalPhotos.net ©2012 eMarketer Inc.
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The measurement landscape
is crowded—but navigable ©2012 eMarketer Inc.
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2) Don’t wait
for the silver bullet Because businesses use social media for so many reasons and goals, there may never be a single success metric. Twitter: #eMwebinar ©2012 eMarketer Inc.
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Every social media
effort should start with clear goals and KPIs Experienced marketers use multiple metrics ©2012 eMarketer Inc.
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3) Demand that
your marketing partners play a larger role The days of recommending social as an add-on without a clear set of goals are gone “The bigger consultancies and agencies— out of self-defense—will start to develop some pretty good methodologies and mental models for social performance and social ROI.” —Erik Huddleston, Dachis Group CTO ©2012 eMarketer Inc.
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Some are already stepping up to
the challenge ©2012 eMarketer Inc.
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How to Take Measurement
to the Next Level ©2012 eMarketer Inc.
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Three goals for
increasing measurement sophistication in 2012 It’s not the fans, it’s what you do with them. Understand who your brand followers are and how influential they can be on your behalf. Go beyond brand metrics. The more marketers can work toward understanding how social media impacts actual business, the better. Integrate social analytics and marketing analytics. Understand how social media can make other media spending more efficient, and how online buzz relates to overall marketing performance. Twitter: #eMwebinar ©2012 eMarketer Inc.
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1) It’s not
the fans, it’s what you do with them Understand who your brand followers are and how they can be influential on your behalf. Focus on measuring leads, sales and revenue. ©2012 eMarketer Inc.
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Only 28% of marketers track the number
of people who contribute to a brand’s social community ©2012 eMarketer Inc.
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2) Track more
than just brand metrics Awareness and engagement may be easier to measure, but social media can do more. Harder metrics can show social’s contribution to business results. Make sales an objective. Only 17% of marketers use sales or leads as a success metric. (Econsultancy/SEMPO) “Sales are what matter to our agents. You can only measure how many people or how many positive comments for so long before people start to question it, especially in this economy.” ©2012 eMarketer Inc.
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Case study: Measuring
the impact of buzz on CPG sales Questions: How does an increase in positive online buzz impact CPG sales? How does negative buzz impact sales? How long can the effect be expected to last? Methodology: Gathered point-of-sale sales data and online buzz for two brands: Lay’s chips and Skinny Cow ice cream Twitter: #eMwebinar ©2012 eMarketer Inc.
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Case study: Results Finding
#1: Incremental sales increases correlate to the amount of online buzz Finding #2: An ad campaign can trigger online buzz, which in turn can cause a sales surge Next steps: Study campaigns with less social activity to determine the influence of buzz Incorporate ad campaign data to better filter out the impact of advertising vs. buzz ©2012 eMarketer Inc.
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3) Integrate social
analytics with other analytics to help build future business Can buzz generate leads? And save money, too? ©2012 eMarketer Inc.
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Jim Farley, Ford’s
global marketing chief: “We’re shifting the timing of our [ad] spend. Social media allows us to start to build a community months before a vehicle goes on sale. We learned this with the Fiesta Movement and we are continuing to perfect the model.” If a social campaign drives broad awareness “we can take the traditional media [spending] down a notch.” ©2012 eMarketer Inc.
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Marketers have an opportunity to integrate social analytics just
as they have integrated social media into marketing ©2012 eMarketer Inc.
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Key Takeaways
©2012 eMarketer Inc.
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Getting to the
metrics that matter Social media measurement has evolved, but still doesn’t satisfy most marketers. The effectiveness question remains top of mind. Measurement and budget go hand in hand. Marketers need adequate metrics to be able to determine budget allocations. Marketers are still too reliant on counting what is easy to measure. Counting fans and followers is fine as a basic benchmark metric, but marketers must strive to understand what those hand-raisers do for them. Marketers must apply business-level analysis to social media measurement. Understanding social media’s effect on a company’s bottom line is critical. As SymphonyIRI and Ford have shown, it’s getting easier to consider the relative influence of social media on lead generation and sales. Twitter: #eMwebinar ©2012 eMarketer Inc.
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CFO vs. CMO
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Powerful Intelligence For Social
& Search Advertising
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Real-Time Data So
Marketers Can… Prove ROI Make Better Ad Decisions Surface Customer Insights
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Clickable 4.0 Workflow
Ads Layer Insights CompanyGraph ™ Data Layer CRM Learn more: mkalehoff@clickable.com
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Measuring Social Media
Success Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on Twitter. To learn about eMarketer Total Access please visit www.emarketer.com/products or contact us: (800) 405-0844 or webinars@emarketer.com Presented by: Sponsored by: Debra Aho Williamson Principal Analyst, eMarketer, Inc. Twitter Hashtag: #eMwebinar ©2011 eMarketer Inc.
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