Social Media’s Return On Investment – When Will We Get Buy-in?

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Presentation Slides: NYC Social Media Club 6/17 Meeting w/Josh Chasin, Chief Research Officer, comScore, Inc. & David Binkowski, Director of Word of Mouth Marketing at MS&L. Moderated by: Donald Schwartz, Imagelink Productions

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Social Media’s Return On Investment – When Will We Get Buy-in?

  1. 1. The Social Media Club of NYC Presents: Social Media’s Return On Investment – When Will We Get Buy-in?June 17, 2009<br />Presenters:<br />Josh Chasin, Chief Research Officer, comScore, Inc. <br /> David Binkowski, Director of Word of Mouth Marketing at MS&L<br />Moderator:<br />Donald Schwartz, Dir. Online Promotion & Technology Writer, Imagelink Productions, Technology Coordinator Fast Company.com<br /> <br />For NYC Social Media Club:<br /> Les Blatt, New Media and Multimedia Strategist<br />Acknowledgments: PR Newswire<br /> <br />
  2. 2. Social Media ROI<br />Presented to SMCNYC<br />June 17, 2009<br />
  3. 3. Agenda<br />comScore: Who we are<br />Social media by the numbers<br />Advertising in a web 2.0 world<br />
  4. 4. comScore: Who We Are<br />
  5. 5. 5<br />What We Do….<br />We are the largest provider of digital marketing intelligence, using a platform that helps our customers make better-informed business decisions and implement more effective digital business strategies<br />We measure the continuous online activity of 2 million people globally who have granted us explicit permission to confidentially measure their Internet usage patterns.<br />Our products and solutions provide our customers deep insights into consumer behavior, both online and offline<br />
  6. 6. 6<br />360° View of Consumer Behavior<br />The Only Global Measurement of Audience and e-Commerce<br />Web Visiting and Viewing<br />Online Transactions<br />Demographics<br />Life Stages<br />Search <br />Behavior<br />Streaming <br />Video<br />Media <br />Exposure<br />32 Media Metrix Reported Countries<br />172 Countries with Sample Presence<br />Powerful PlatformGlobal Panel of 2MM Users, Largest of Its Kind<br />
  7. 7. 7<br />8out of the top10<br />CONSUMER BANKS<br />10out of the top10<br />INVESTMENT BANKS<br />4out of the top5<br />CABLE COMPANIES<br />5out of the top5<br />TELEPHONE CARRIERS<br />7out of the top10<br />PHARMA / HC COMPANIES<br />23out of the top25<br />ONLINE PROPERTIES<br />7out of the top8<br />CREDIT CARD ISSUERS<br />45out of the top50<br />INTERACTIVE AGENCIES<br />9out of the top10<br />US MEDIA<br />Serving a Diverse Marketing Constituency<br />
  8. 8. Social Media by the Numbers<br />8<br />
  9. 9. 9<br />Worldwide Online Category Penetration vs. Growth<br />How the World Uses the Internet<br /><ul><li>Most commonly used internet categories include Search, Entertainment, and Retail
  10. 10. Social Networking sites are exploding, so are Multimedia sites such as YouTube
  11. 11. Community and Personals sites are seeing negative growth, likely a result of Social Networking sites replacing a large part of these sites’ functionality</li></ul>Worldwide Online Category Penetration vs Growth<br />90%<br />Search/Navigation<br />80%<br />Retail<br />70%<br />e-mail<br />Directories/Resources<br />Downloads<br />Social Networking*<br />60%<br />News/Info<br />Multimedia<br />Community<br />Telecommunications<br />50%<br />Blogs<br />Category Penetration (% of Online Users)<br />ISP<br />Reference<br />40%<br />Instant Messaging<br />Photos<br />30%<br />Radio<br />20%<br />Personals<br />Teens<br />Retail - Music<br />10%<br />0%<br />-40%<br />-20%<br />0%<br />20%<br />40%<br />60%<br />80%<br />Category Growth Year Over Year<br />Source: comScore World Metrix<br />
  12. 12. 10<br />The Growth of Social Networking<br /><ul><li>Social Networking sites are experiencing tremendous growth all over the world</li></ul>Social Networking Growth(Unique Visitors)<br />Source: comScore World Metrix<br />
  13. 13. In May 2009, 76% of US Internet Users Visited a Social Networking Property<br />
  14. 14. 15 Month Trends: Monthly Unique Visitors (000) (US)<br />
  15. 15. 15 Month Trends: Monthly Total Visits (000) (US)<br />
  16. 16. Note that these numbers are computer access of the Internet and exclude mobile<br />Show of hands; how many of you are twittering on your phone right this minute?)<br />You can let me know: @jchasin<br />That growth in visits looked small on the Facebook scale, so let’s blow it up…<br />Ashton Kutcher joins Twitter<br />Regarding Twitter…<br />
  17. 17. 15 Month Trends: Average Daily Visitors (000) (US)<br />
  18. 18. Facebook, Twitter Skew Older Than MySpaceTotal Minutes by Age Cell; May 2009; US<br />
  19. 19. Total Internet Videos are Up 66% in 15 months<br />Total Videos Streamed (000) in the US Over 15 Months<br />
  20. 20. YouTube Videos are Up 98% in 15 months<br />YouTube Videos Streamed (000) in the US Over 15 Months<br />
  21. 21. Advertising in a Web 2.0 World<br />
  22. 22. Advertising a la “Madmen”1950 – 2001 R.I.P<br />
  23. 23. Advertising:Born 2001<br />
  24. 24. The Traditional Mass media Construct<br />
  25. 25. The Web 2.0, Social Media Construct<br />
  26. 26. In the World of Social Media…<br />Clarity is key<br />Keep measurement simple<br />Einstein: things should be as simple as possible… but no simpler<br />Control is not the point<br />
  27. 27. So What About ROI?<br />First off… for many brands and categories, participation in social media may be about staying even<br />Before thinking about ROI… we need to consider whether social media is at least a cost of doing business<br />There is no one magic metric<br />What to measure is a function of what you’re trying to accomplish<br />
  28. 28. What Makes a Brand Advocate?<br />
  29. 29. Why Is Social Media So Popular?<br />Its Human Nature to Advocate<br />Advocates represent ~40% of online category buyers<br />AUTOMOTIVE<br />CONSUMER ELECTRONICS<br />HOME LOAN<br />HOTELS<br />Base (Advocate/Non-Advocate who purchased in the past 6 months/CE is 3 months)<br />AUTO (196/382); CE (257/348); TRAVEL (176/447); HOME LOAN (195/299)<br />
  30. 30. Advocates Extend Your Brand<br />8.2<br />20.3<br />AUTO<br />Advocates tell twice as many people about their purchases creating awareness…<br />CONSUMER ELECTRONICS<br />14.7<br />7.2<br />5.2<br />11.1<br />HOTELS<br />4.5<br />HOME LOANS<br />9.2<br />Base (Advocate/Non-Advocate who purchased in the past 6 months/CE is 3 months)<br />AUTO (196/382); CE (257/348); TRAVEL (176/447); HOME LOAN (195/299)<br />
  31. 31. Advocates Are Heavier Searchers<br />Average Searches Per Month<br />% Reach Social Networks<br />104 Queries<br />84%<br />72 Queries<br />47%<br />
  32. 32. With Respect to Social Media ROI…<br />Marketers fall into 2 categories:<br />Those waiting to see if there is a way to generate a return<br />Those who have already jumped in<br />However….<br />Thus far the success stories tend to be anecdotal case studies<br />Dove on YouTube<br />Dell on Twitter<br />30<br />
  33. 33. 31<br />
  34. 34. The Takeaway<br />32<br />
  35. 35. The Takeaway<br />Social media are pervasive and consumption is increasing<br />Embracing web 2.0 marketing means letting go and diving in<br />Not all brands and companies are comfortable with that<br />Including some that think they are<br />Brand advocates touch many more consumers with their influence<br />And not surprisingly, are heavy users of social media<br />Brand strategies (and ROI metrics) for social media need to be a function of brand goals and objectives<br />There is no silver bullet<br />You don’t need someone to prove to you the ROI of social media. You need to develop programs in line with goals and objectives, and figure out how to measure the ROI for YOU.<br />
  36. 36. Social Media Club NY<br />6/17/2009<br />
  37. 37. 35<br />Topics<br />Introductions<br />Setting expectations<br />Defining ROI<br />Case Study<br />Q&A<br />35<br />
  38. 38. 36<br />Who am I?<br />SVP, Word of Mouth Marketing @ MS&L<br />Run digital team in New York, formerly Ann Arbor<br />Started WOM practice 5 years ago, wrote WOMMA blogger ethics code, MEAP<br />Work across practices on digital strategy<br />
  39. 39. 37<br />
  40. 40. 38<br />Setting Expectations<br />38<br />
  41. 41. 39<br />Social media<br />Reach<br />39<br />
  42. 42. 40<br />Setting Goals<br />Niche<br />40<br />
  43. 43. 41<br />Defining ROI<br />Qualitative vs. Quantitative<br />What is your goal?<br /><ul><li>Sales
  44. 44. SEO
  45. 45. Reputation
  46. 46. Risk reduction
  47. 47. Client or customer retention
  48. 48. Efficiencies
  49. 49. Business Intelligence
  50. 50. Differentiation
  51. 51. Public Relations
  52. 52. Innovation
  53. 53. Filling jobs</li></ul>What is your company’s social media benchmark?<br />Create shared business goals: Marketing, IT, customer service, finance<br />
  54. 54. Social Media ROI for Wells Fargo<br />Program<br />Wells Fargo “Someday Stories”, a two-part user generated submissions contest asking people to describe what their “Someday” would be<br />Execution<br /><ul><li> Utilize MS&L relationships to create buzz among bloggers and Twitterers
  55. 55. Facebook and Google PPC ads to drive entries and votes in both phases
  56. 56. Leverage Facebook Fan Page for finalists to build support for their entry
  57. 57. Sponsored blogger and Twitter meetups in key markets
  58. 58. Create interactive widget as “conversational collateral” for bloggers and social networks</li></ul>Results<br /><ul><li> Over 10,000 contest submissions for Phase 1
  59. 59. Drove 68,000 votes for Phase 2
  60. 60. 10,000,000 impressions from blog posts</li></li></ul><li>Questions?<br />
  61. 61. For more information on NYC Social Media Club, go to:<br />www. socialmediaclub.org<br />©2009 Josh Chasin & David Binkowski<br />

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