Lucre Social growth opportunitiesPresentation Transcript
The opportunity Hotwire research shows that 50% of senior comms professionals experienced a budget increase for the year 2011 compared to 2010. However when allocating resources, 27% still spend less than 10% on digital and social media. This is changing and educating harder to reach brands and sectors is where the opportunities are.
Where are we now? Lucre finished 2010 at 85 out of the top 150 PR agencies.
Where do we want to be in 18 months? I would like to see Lucre Social help Lucre break into the top half (75 or better) by financial year end 2012-13. A little over 18 months
So where should we target growth? A product of success, existing B2C business is becoming saturated. Last financial year 66% of business was from the consumer sector. At the same time B2B businesses are discovering and exploring social media. Finance, Energy and Pharmaceuticals are developing markets for social media.
Some sectors have greater needs than others right now
Where are the opportunities by industry and sector ? Very few banks, insurers or financial services firms have a social media presence. Even fewer have a strategy beyond ‘get a facebook page’.
Regulatory forces are also creating B2C opportunities in the finance sector, PR firms will benefit The Retail Distribution Review will come into force in January 2013. Independent Financial Advisers will now charge clients an individual fee rather than earn commission from firms, pricing them above mass market customers. This leaves a hole in the market where IFAs once provided face to face advice. The government has set up www.themoneyadviceservice.org.uk to deal with the shortfall. Expect to see new businesses cashing in too.
The scope for social media to fill the void is speculated as a major opportunity. In terms of reach, range and cost per interaction social media provides excellent value and scalability. Add in the word of mouth/recommendation aspect and this is a very real opportunity for PR agencies.
Pharmaceutical firms face some of the toughest regulatory burden out there. However, they are telling their story and pushing products in an ever disappearing (old media) space. Unbranded/white label campaign sites, forums and advocate blogs are now moving into social media platforms. The appetite for guidance and advice is bigger than ever AstraZeneca US, GlaxoSmithKline and Bayer Schering are all successfully experimenting with social messaging and interaction.
Agencies are moving in on social media for this sector Whether they have they have existing clients in the sector or not
None of this is rocket science But companies will pay for it