Social Media 2012 Business Case and Statistics


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Presenting the business case for Social media adoption based on 2012 research inputs. This presentation will be updated as and when new research inputs are available from the sources cited within the slide pack. Last edited on: 15th October 2012.

Published in: Business, News & Politics

Social Media 2012 Business Case and Statistics

  1. 1. Social Media PracticeOverview & Business Case
  2. 2. AgendaSocial Media Today:A really quick view of today’s social media landscape and the questions it create for brandsCase for Social media:A study of core social media elements and what those elements mean for brandsCompany Overview:A quick introduction to GROUP FMG2
  3. 3. Social Media Today3
  4. 4. Too much going on in social media today4
  5. 5. Too much going on in social media todayCountless tool clutters and featuresMore ‘how-to’ achieve this in ‘5 steps’ whitepapersBig numbers and colorful chartsBigger questions ? ROI Why? What ? Where are we now Where from here ? Competition Industry5
  6. 6. Case for Social Media6
  7. 7. Key Social Media Components (for brands) People Process Technology Users connected with • Publish Social Platform other users / groups / • Read (website, Interactive organizations • Respond mechanisms etc.,) Human Elements Social Contents Determines Brand reputation in Social Media7
  8. 8. Human Elements: Relevancy to Brands Definable relationships with brands Industry Leaders People discussing brands in social Employees Competitors media are relevant to the brand, in one way or the other Suppliers / Brand Detractors Vendors Fans / Credibility of opinions Customers Followers Their opinions gain credibility because: Prospects • They are relevant to the brand • They are relevant to their connections8
  9. 9. Brand contents in Social Media include Some of Part of Most of Paid Media Owned Media Earned Media Brand & Product Social Profiles & Internet Advertising Websites Feeds PPC – Search Mobile Applications Word of Mouth Marketing Mobile Advertising Digital Contents User Forums News, PR Sponsorships Blogs Announcements Blogger Paid Advertising Official Forums Relationships9
  10. 10. Social Contents of Brands are produced by Social Media Users 1. User discussions on brand within their connections Mention 2. Brand-pushed information to their fans / followers Broadcast 3. User interactions with brands via official social media profiles Engage The 1st and 3rd type of contents are Earned media - Brands form word of mouth opinions in social media  Reflects balanced customer perception & experiences  Readily available content through Internet search10
  11. 11. Why Social contents of brands matter?Carries 30% weightage in customer decision journey to purchase a product – higher thanconventional, company-driven marketing and dealer interactions 12% 26% 27% Store / agent / dealer interactions 21% 42% Social media: epicentre of consumer Consumer-driven marketing driven marketing 30% • Word-of-mouth 28% 37% • Online research Crucial during the evaluation phase • Offline and / or print reviews as consumers seek 31% information, reviews, and 14% Past experience recommendations 10% 5% Company-driven marketing 39% • Traditional advertising 29% 26% 22% • Direct marketing • Salesperson contact etc.Initial Consideration Evaluation Closure Across the stages Stages of Customer decision journey11 Source: McKinsey
  12. 12. Social contents open up customer wallets Consumer trust in ‘Earned’ media grows in importance - 92% of consumers around the world trust word-of-mouth or recommendations from friends and family, above all other forms of advertising Trust Completely / Don’t Trust Much Somewhat / Not at All Brand contents in social media Recommendations from people I know 92% 8% are the essence of top 2 consumer trusted form of brand message Consumer opinions posted online 70% 30% Branded websites 58% 42% Ads on TV 47% 53% Trust in traditional paid advertising messages (in Ads in magazines 47% 53% TV, Magazines, newspapers etc.) declines since 2007 Billboards and other outdoor advertising 47% 53% Ads in newspapers 46% 54% Social contents are tied to the brand sales Ads on radio 42% 58% 12 Source: Nielsen’s Global Trust in Advertising Survey – April 2012 | 28,000 respondents across 56 countries
  13. 13. And not just Sales…Social media contents backed by strategies affect the entire value chain – corporates make useof social media across departments and report improvements Value chain step Case example Impact Product development Procter & Gamble R & D costs: -6% p.a. Marketing Old Spice Sales: +16% Campaign costs: - 80% Sales, Transactions: +18,000 p.m. Service Example from telecommunications Resolved customer queries: +30% industry External communication McDonald’s Stock price: +5% Human resources Allianz, Bertelsmann, Henkel, Reach: +20% McKinsey & Company Cost: -27% Quality: +36% Internal applications Mountain Equipment Co-op Efficiency gains: >90%13 Source: McKinsey, Press release, Corporate websites
  14. 14. ROI by Media TypeDigital media and public relations activities show stronger performance compared to pricediscounting, TV and other media InternetFor every dollar spent, internet channels $ 1.29 Trade Other Digital $ 1.27yield $1.29 in return, almost twice that for TV $ 1.48 Newspaper $ 1.07 Media ROIWith online time increasingly spent in social Magazine $ 0.99 Cinemanetworks and with higher ROI, $ 0.22brands increasingly adopt various social media tools Television Sampling $ 0.97and technologies $ 0.66 Radio Billboards $ 0.71 $ 0.8114 Source: McKinsey Quarterly
  15. 15. Rising Social media adoption rates (brands) Various social channels used by companies Steady increase in social media adoption rates since 2008 23% 19% 12% 0% Micro-Blogs Corresponds with more organizations reporting 38% improvements carved from Social media 31% 33% 27% Video sharing 38% 41% • 41% of the 4,261 companies interviewed by 32% 29% McKinsey operate blogs; Blogs • Emphasizes the growing importance of descriptive and positive brand ‘content’ in the web 50% 40% • 50% of the respondents in the same survey have 28% 23% presence in social networks; Social Networks • ‘Connections’ are most sought after elements (hence, quicker and wider reach of brand message) 2008 2009 2010 201115 Source: McKinsey Quarterly
  16. 16. Across every major vertical Companies having presence in at least one social website 60+ % of adoption rate across all major verticals Hi tech, telecommunications 86% Energy sector was not considered to have business Business, legal, professional services 77% case for social media a few years ago Public administration 74% 62% of adoption rate for this sector in 2011 Pharmaceuticals 74% Retailing 69% 97% of the Marketers continue to invest Transportation 69% increased budget in social media or at least the same as previous year Health care, social services 67% Manufacturing 64% Financial services 64% 12% higher Internet Marketing spend in Q1 2012 than one year prior Energy 62%16 Source: Marketing Sherpa, McKinsey, Nielsen
  17. 17. Finally, the omnipresent big numbers Total Unique User Visits 1,500Millions Total Internet | CAGR: 11% 1,000 Social Media | CAGR: 19%  User visits to Social media sites 500 grow at CAGR of 19% 0  Billion plus social media users 2007 2008 2009 2010 2011 and still growing strong User Growth of Social Sites 1,000  5 terabyte of new social media Millions data created every day 800 Facebook | CAGR: 74%  1 in 5 minutes online is spent 600 on social media today 400 Twitter | CAGR: 231% 200 LinkedIn | CAGR: 55% WordPress | CAGR: 90% 0 2007 2008 2009 2010 201117 Source: comScore, Steven White
  18. 18. Social Media is NO MORE a fadSocial media is here to stay Group FMG has capabilities to:  Monitor a million of your brand conversations  Measure what’s being said about your brand  Evaluate your social presence  Learn your community inside out  Provide actionable insights across your business value chain  Engage with your customers  Build / Re-build your social presence18
  19. 19. Next StepsInitial discovery process:We understand every brand and its customers are unique and so are the requirementsLets connect to understand your Business goals, objectivesand existing social footprint to uncover how social mediacan contribute more to your business and customersInitial deliverables include: Social profiling of the brand Competitive and Industrial benchmarks Performance of official social media profiles Customized social media strategy and execution plan Other relevant resources of value to the brand19
  20. 20. Company Overview20
  21. 21. Company Overview2012 GROUP FMG buys Pod12011 GROUP FMG’s New York office is established2011 FMG secures major PE funding to capitalize $100m, forms GROUP FMG2009 FMG’s Ceros platform fuels first e-commerce catalogue2008 FMG acquires video production company, Guerrilla2007 FMG’s Asian production & development facility established2006 FMG crowned PPA Prepress Company of The Year2006 FMG launches the Ceros interactive marketing platform  Founded in 2011 by large private equity fund2005 FMG crowned PPA Prepress Company of The Year  Acquired FMG (founded in 1987), a digital asset2004 FMG purchases catalogue design company, Vision production company in London and Pod1, a leading ecommerce creative agency in New York2004 FMG launches its Virtual In-House Production system2002 FMG wins PPA award for innovation  Focused on innovative multi-channel1999 FMG pioneers first all-digital magazine production process commerce, creative content and consulting services; guiding brands through change caused1987 FMG is established by the solomoco phenomenon21
  22. 22. Company Overview Globally balanced enterprise model Creative services, proprietary technologies, domain expertise, process excellence and actionable analytics offered to provide differentiated solutions Global HQ Broad range of commercial structures offered to clients – T&M, fixed price, outcome pricing, and various captive production and outsourcing models Serving several channels: Industry channels NEW YORK • LONDON • CHENNAI  Publishing  Packaging & POS  Digital  Advertising pre-media Serving 75+ leading global clients across North America,  Broadcast Europe and Asia-Pacific across industries such as retail, publishing, technology, hospitality etc. to name a Cross platform channels few  Mobile  Social22
  23. 23. VisionProvide tangible value to the Digital+business of our clients through (Mobile, Social) Publishinghigh impact marketingsolutions, by Digital- providing consulting services Advertising- enabling [e/m] commerce and- producing rich media, local and social content Packaging- for use across all channels, new Content Consulting & POS and traditional.To provide a broad range of solutions thathelp marketers Broadcast  Imagine: disruptive awareness Commerce  Innovate: differentiated advocacy Gaming  Ideate: desired acceptance in the context of marketing solutions23
  24. 24. Marquee Clientele Serving 75+ leading global brands24
  25. 25. Contact New York London 119th Fifth Avenue 90-92 Pentonville Road New York London N1 9HS NY 10003 United Kingdom USA Chennai 2nd Floor, Hardy Tower Ramanujan IT SEZ, TRIL Infopark Limited Taramani Chennai 600113 India Pradeep G ( Group FMG (