Measuring the Influence of Social Media

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

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

The Power of Consumer Influence
91% say consumer content is the #1 aid to a buying decision (JC Williams Group)
87% trust a friend’s 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)

The World’s Top Brands Listen and Respond
“ The best brands follow their stakeholders’ journeys so that they provide effective, consistent and appropriate messaging throughout the experience.”
“ The turnaround brands all show a sense of understanding consumers’ needs and desires, and rediscovering the appetite to meet their customer promise.”
Interbrand Best Global Brands

New Marketing Attitudes “ 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 won’t 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 . ” Eric Kintz, Hewlett-Packard “ 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 .” Eric D’Ablaing, Hyundai “ Display advertising's main role will be to quickly, straightforwardly, informatively draw you into a broader brand experience .” 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

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

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

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

Business Influence Examples
Difficult to measure directly – 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

Best-in-Class are Making a Business Impact
Companies with “Best-in-Class” social media practices far outperform average companies in many key areas
Source | Aberdeen Group 2008

Success Requires Active Engagement
“ Best-in-Class” 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

Best-in-Class Focus on Success Metrics
“ Best-in-Class” companies are defining specific business metrics to quantify success

The Value of Social Networks
70% of the value from social networks is from the “momentum effect” 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 | “Never Ending Friending”

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

Many Departments Benefit From Social Media
Many groups have an ownership of social media – these programs connect departmental silos

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

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

Thank You Digital Influence Group www.digitalinfluencegroup.com www.digtrends.com

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Measuring the Influence of Social Media

by Brian Cavoli on Jun 13, 2008

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Measuring the Influence of Social Media — Presentation Transcript