Productive Social-Marketing

It’s noisy, it’s subject to fads,and it’s insanely popularYes, social media is here to stay. With Facebook engaging more than 800 million monthly activeusers worldwide and earning more than 3 billion dollars in annual ad revenue, there‟s no doubt thatsocial media infiltrates our lives and affects our behavior.But can it boost your company‟s bottom line? The insight presented here examines the impact ofsocial media and its potential to drive more than mere awareness.In this presentation, you’ll discover:• Who‟s likely to buy from social media sites• How marketers are using social today• What you need to do to master social marketingWith this compilation of the industry‟s latest data and insights, you‟ll get the information you need totake social media to the next level - and to seize new opportunities for marketing success.Enjoy!The Adobe Digital Marketing Team

Putting the marketing inSocial media marketingThis presentation is part of MarketingCharts‟ Data Insights series featuring trends, data and research. Thiscollection brings together months of surveys, reports and insights released by research and marketingorganizations.The charts in this collection are ready to (re)use and embed. Feel free to share the whole presentation or anyslide, with your colleagues and business partners, but please preserve credits to our sponsor Adobe, theorganizations that provided the source data, and our links to MarketingCharts.com. SPONSORED BY DATA INSIGHTS

Is social media a marketing treadmill? SPONSORED BY 3

Yes, social media is a busy, noisy environment… 37% 35%36% of tweets “worthreading” are gobbled 13%by boring majorityCarnegie Mellon University, Jan. 2012 Do not use any social media Ads Not very/not useful Ads Very/somewhat useful sites while a solid majority of Americans either don‟t use social media or don‟t find ads in social media too useful Epsilon, Dec. 2011 SPONSORED BY 4

…subject to fads and fashions. Dec-11 Jan-12 All of a sudden you30% keep hearing about25% Pinterest Meanwhile where are Bebo, MySpace, Digg, Second Life, Slashdot,20% Friendster, and countless other social networks and online communities whose heyday came and went?15% Shareholic, Jan. 201210%5%0% Referral traffic by source SPONSORED BY 5

And it is “free” only if you don‟t account for time spent.25% 63% of community20% managers spend more than 30 hours a week15% on their community, with a plurality spending 41-50 hours (26%). In other words, management of corporate social media has become a full-time10% job in many marketing departments. Social Fresh, Jan. 20125%0% Most time-consuming task for community managers SPONSORED BY 6

Account proliferation contributes to overload… Twitter 39.2 Companies with Blog 31.9 1,000+ employees Facebook 29.9 have an average of 178 social media LinkedIn 28.8 accounts,Forum/Message board/ only 48% have a coordinated 23.4 Communities approach to social media YouTube deployments across the company 9.4 Altimeter Group, Jan. 2012 Foursquare 6.3 All 5.3 others Flickr 0.3 Gowalla 0.3 Number of corporate-owned social media accounts SPONSORED BY 7

…and resources can be a challenge. Top social marketing challenge 77% 58% 42% 37% 34% 33% 31% 22% Lack of sufficient Measuring Managing and Integrating Integrating Monitoring social Managing Social media resources ROI growing social social with social with media publishing of training presence lead gen and rest of social content sales marketing across platforms 77% of marketers feel they lack resources A majority also struggle to measure ROI… which usually doesn‟t help getting more resources! Awareness, Dec. 2011 SPONSORED BY 8

Yet… can you argue with success?900M 60%800M 50%700M600M 40%500M 30%400M300M 20%200M 10%100M 0M 0% Mar-09 Apr-09 May-09 Jul-09 Mar-10 Apr-10 May-10 Jul-10 Mar-11 Apr-11 May-11 Jul-11 Oct-09 Oct-10 Nov-09 Feb-10 Feb-11 Oct-11 Aug-09 Dec-09 Nov-10 Dec-10 Jun-09 Sep-09 Jan-10 Jun-10 Aug-10 Sep-10 Jan-11 Jun-11 Aug-11 Sep-11 Nov-11 Dec-11 MAUs DAUs Daily/Monthly Facebook going towards 1 billion monthly active users (MAUs) worldwide An unprecedented scale, with a daily use rate (DAUs as a %age of MAUs) sustained above 50% of total users Company SEC filing, Feb. 2012 SPONSORED BY 9

Facebook and Youtube have emerged as behemoths that cannot be ignored. Facebook The two market leaders YouTube dwarf everyone else with Twitter an undeniable criticalYahoo! Answers mass in terms of time spent by users Tagged Experian Hitwise, Feb. 2012 Linkedin Pinterest MySpace Google+ myYearbook 0% 10% 20% 30% 40% 50% 60% 70% US market share of visits, January 2012 SPONSORED BY 10

Social media does affect behavior SPONSORED BY 11

Social recommendation improves media perception80% 14% uplift in enjoyment70% 7% of recommended video 12% and 41% decrease in the proportion of60% people who didn‟t like the video.50% Decipher/Unruly Media, Feb. 201240% 65% See also Trendrr.TV analysis and30% Hollywood Reporter / Penn Schoen 57% Berland survey, March 201220%10%0% Browsing Via Recommendation Enjoyed video Did not enjoy Impact of social recommendation on video perception SPONSORED BY 12

Social login contributes to website stickiness14 Users logged in via a12 12 social plugin stay more than twice as long as visitors that don‟t log in at all. They10 stay 12 minutes on average, which beats standard login visits too. 8 8 Gigya, Jan. 2012 6 5 4 2- Social login Standard login Not logged in Website session length in minutes SPONSORED BY 13

Social sharing increases email click-through10% 9.6%9% Email CTR twice8% higher or more thanks to social sharing buttons7% GetResponse, Jan. 20126% 5.4% 5.0%5%4%3% 2.6%2%1%0% CTR without sharing CTR with Twitter CTR with Facebook CTR with LinkedIn CTR with or without social sharing SPONSORED BY 14

Social networks are used to find local businesses16% 15% In 4 years the role of14% social networks moved12% from anecdotal to nontrivial in helping10% 9% people find information8% 7% about local businesses6% Localeze/15miles/comScore, Feb. 4% 20124%2%0% 2008 2009 2010 2011 Social Network Local Business Search Usage (% of respondents citing social media as primary and secondary source) SPONSORED BY 15

Social can drive salesbut faces perception challenges SPONSORED BY 16

Women‟s influence on purchasing decisions expands through social networks Millenials Xers Boomers SeniorsI am an influential information source 73% 53% 51% 44%I regularly influence friends and family to buy or not to buy aparticular product or service 69% 49% 41% 27%Using social network sites has made it easier for me to decideon what to buy 61% 46% 36% 29%Using social network sites to share my shopping and productexperiences make me feel more empowered 51% 33% 19% 9% Women’s marketplace influence self-assessment 73% of young adult women describe themselves as influential information sources Ipsos Mendelsohn / Fleishman Hillard /Hearst, Jan. 2012 SPONSORED BY 17

Online orders via social media are larger on average Affiliates average across digital Social media appears to Natural Search channels drive less bargain- Email seeking “transactional”Comparison Shopping shoppers than other Paid Search digital channels Display ClearSaleing, Feb. 2012 Social Media $- $100 $200 $300 Average order size by digital channel SPONSORED BY 18

Social sharing can trickle down to orders A quarter of online shoppers, who shop All shoppers (100%) at least quarterly 62% online and login to Read friend comments (62%) their Facebook 75% account at least Click through to retailer (47%) monthly, have made a purchase based on a 53% Purchase product (25%) social recommendation % of online shoppers who are also Facebook users Sociable Labs, March 2012 SPONSORED BY 19

Social media barely registers for holiday deal seekers Companies websites 24% Facebook and Twitter Print 15% way behind other online Email newsletters 13% and offline ways toTalking with friends and family 9% share good holiday deals Online flyers 5% Crowd Science, Jan. 2012 Facebook 3% Twitter 1% RSS feeds 1% Other 5% No preferred method 24% 0% 5% 10% 15% 20% 25% Favorite way to find holiday shopping deals SPONSORED BY 20

Younger people trust online reviews more… 66% 51% 49% 51% of millenials say user-generated content 34% on a company website most likely to influence their opinion when making a purchase BazaarVoice survey, Jan. 2012 From friends and family From online content reviews Millenials Boomers Recommendations as Purchase Influencers SPONSORED BY 21

…but personalization and privacy expectations are less often met while shopping on Facebook… On tablet 23% 61.5% 15.5% Shopping personalization more than twice as likely to beOn smartphone 18.5% 64.7% 16.8% found lacking on Facebook 21% also found their privacy On Facebook 22.9% 61.4% 15.7% expectations were not met. Baynote survey, Jan. 2012On e-commerce site 24% 69.3% 6.6% Exceeded expectations Met expectations Personalized shopping experience SPONSORED BY 22

…and direct shopping on Facebook is a mixed picture.35% 34% 32%30% Only 19% have or would25% shop on Facebook Less than the proportion of people saying they wouldn‟t ever. But a plurality of20% people polled either didn‟t use Facebook or didn‟t know they could make 15% purchases there.15% Oracle, Dec. 2011 10%10% 9%5%0% would never Do no use Did not know Would Have purchase Facebook possible purchase purchased Product purchase intent via retailer’s FB page SPONSORED BY 23

Social commerce trust skews towards young, male, more affluent.100%90% Majority of females and80% people of age 54+ are less likely to be comfortable giving70% their credit card information to a known60% brand through a secure payment process on a social media site.50% Digitas/Harris Interactive, Feb. 201240%30% 49% 49% 50%20% 38% 40% 35%10% 0% 54+ $35K- Female 18-54 Male $35K+ More likely Less likely Likelihood of giving credit card information SPONSORED BY 24

Trust and privacy concerns limit what people are willing to share.100%90% For all the talk about80% online over-sharing, real world concerns still affect what70% people are willing to share online.60% Women tend to keep to themselves data that could be used to find them.50%40% uSamp, Feb. 201230%20%10% 0% Men Women Men Women Men Women Men Women Men Women Name Email address Phone number Physical address Location Yes Probably not Definitely not Are you willing to share… SPONSORED BY 25

Social media advertising: more dataneeded to understand momentum SPONSORED BY 26

Facebook now generating $3B+ in ad revenue per year Growth rate Ad revenue ($M) Facebook‟s 2011 ad$3.5B 200% $3,154M 180%$3.0B revenue is equivalent to 160% Google‟s in 2004$2.5B 140% Meanwhile, LinkedIn and Twitter‟s 2011 120% ad revenue were at around $155M and$2.0B $1,868M $140M respectively. 100%$1.5B 80% Company SEC filings, Feb. 2012 60%$1.0B Facebook had a 28% $764M 40%$0.5B market share $151M $269M 20% of the US online display ad market in 2011$0.0B 0% 2007 2008 2009 2010 2011 Comscore, Feb. 2012 Facebook’s ad revenue ($M) and growth rate (%) SPONSORED BY 27

Facebook ahead of PPC/SEM among small businesses 25% 24% 23% 18% 12% 11% Facebook advertising used by almost one in four small businesses MerchantCircle, Dec. 2011 Print Direct mail Facebook ads PPC & SEM Group deals Onlinenewspaper newspaper Small business marketing channel use SPONSORED BY 28

While Google is promoting Google+ aggressively180160 How many people really adopt and use Google+140 and how Google continues to integrate it with both Adwords and organic search120 results could have a major impact on both SEO and SEM practices and100 spending. 80 Google hasn‟t released numbers for 60 daily/monthly G+ active users so a fair comparison with other networks is hard 40 to make. 20 (Rough) estimate of G+ users: Paul Allen with a few datapoints from Google; 0 MarketingCharts filling in the gaps Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Google+ global registered users (millions) SPONSORED BY 29

But people are ambivalent about personalized search A strong minority doesn‟t like the idea of Yes 16% personalized web search 45% Yes, but I do have some and its supporters seem rather concerns about privacy lukewarm. If there‟s strong user pushback then Google will have another No, I think everyone failed social platform in its track record. 39% should see the same results when searching Ask Your Target Market, Jan. 2012 the same keyword Do you like the idea of personalizing search results based on past searches and info from your social networking sites? SPONSORED BY 30

A lot of data is missing on social advertising,monetization, and genuine active use There is a lot of data that companies such as Facebook, Google or Twitter are not sharing: - How many advertisers does Facebook have? - How many people really use Google+ on a daily basis? - What is the proportion of all these social media accounts that might be duplicates, fakes, empty shells, or otherwise worthless? - Are people sticking to any social network for more than just a few years? The social media momentum is real but all datapoints should not be taken at face value and marketers need to do their homework in their specific market. SPONSORED BY 31

The state of social media marketingpractices: peer benchmarking SPONSORED BY 32

Even blue-chip industries like banking have ramped up their social media presence. Internet websites 76%SocNet pages and postings 47% Online or mobile video segments 41% Print magazines 39% Online communities and affinity groups 31% Almost half of bank Digital signage and point-of-service 29% marketers use social Digital media formats(mobile, tablets, eReaders) 25% media to deliver eMagazines (dynamic publishing systems) 24% branded marketing DVD products 15% content and close to 40% use social media Infomercials 7% analytics and conversation monitoring IP-TV programs 4% CMO Council, December 2011 Other 14% Marketing channels used by banks for their content SPONSORED BY 33

Marketers are excited by social media engagement Social media engagement 54% Mobile optimization 38% Content optimization 37% Conversion rate optimization 31% Social media Brand building / viral marketing 27% engagement tops Video marketing 24% the list of digital marketing initiatives that gets marketing professionals excited.Joining up online and offline data 23% 39% also make it a top priority. Social media analytics 19% Adobe / Econsultancy, Feb. 2012 Content marketing 18% See also Pointroll/Kelton Research Marketing automation 11% survey, March 2012 Gamification 6% Sponsored tweets 2% 0% 20% 40% 60% Most exciting digital marketing opportunities (Total > 100% because respondents were asked their top 3) SPONSORED BY 34

They think it‟s a source of success, competitive advantage, and even survival Companies that A majority of seniordont fully embrace 16 26 39 20social media will not survive marketers think businesses mustCompanies can gain embrace social media competitive advantage by 13 17 36 35 Facebook / Forrester, March 2012 leveraging social media Social media enables businesses 13 28 42 18 to be more successful Strongly disagree Disagree Agree Strongly agree % of senior marketers SPONSORED BY 35

They use social sites to listen & engage… Improved customer listening, engagement and conversations 55% Opened new avenues to gather and further market insights 55% Increased the complexity of marketing,… 47% Opened opportunities to survey, 25%test and research products/services More than half of Improved customer intelligence 20% marketers have New efficiencies / effectiveness 20% improved how they in our go-to-market programs Increased headcount to add interact with customers talent to manage social media 14% and gather market Reduced advertising/media spend 14% insights Lowered cost of customer service 5% CMO Council, Dec. 2011 Other 11% Social Media Impact on Marketing Operations SPONSORED BY 36

…and collect valuable data. Prior marketing campaigns (e.g. for remarketing) 3.7 Web analytics providers 3.4Social media and/or mobile applications 3.3 Search engines 3.1 Data originators (e.g. survey / market research) 3.0 Social media comesCommercial data compilers (focused on 3.0 offline data) third among third-party Online ad networks / exchanges 2.9Offline audience measurement platforms 2.8 data sources ranked by (e.g. Nielsen, IRI) Publisher registration data 2.8 value Data exchanges 2.6 Winterberry Group, Jan. 2012 List brokers and managers 2.5 average = 3.0 0 1 2 3 4 To what extent is your company realizing value from the utilization of third-party marketing data? SPONSORED BY 37

CRM with a social layer lifts sales productivity 21% 21% 19% 15% 16% More than half of social- enabled CRM saw a 10%+ rise in productivity7% Nucleus Research, March 20120% 1-5% 5-10% 10-15% 15-20% >20% Improved Sales Productivity from Social CRM (% of respondents) SPONSORED BY 38

But practitioners lack standard ROI metrics, 38% 24% Fewer marketers tie social media marketing 15% to sales/revenue though their number is growing Wildfire, Jan. 2012 Increased fans, likes, Increased revenue Increased brand awarenesscomments, interactions Measuring ROI on Social Media Campaigns SPONSORED BY 39

…tend to focus on “soft” goals… 88% 85% 58% Brand awareness growth & customer 41% engagement dominate expectations Wildfire, Jan. 2012 See also Social Media Examiner, April 2012Grow brand Engage in dialogue Increase sales and Reduce costsawareness partnerships Benefits of Social Media Campaigns SPONSORED BY 40

…such as awareness and reach. Awareness building 64% Low expectations forBuilding customer loyalty and retention 48% lead gen and Expanding reach to new audience 44% revenue generation StrongMail/Zoomerang, Dec. 2011 New customer acquisition 36% B2B lead generation 19% Driving revenue 14% Not sure/still trying to figure that out 11% I dont see any value 3% Other 2% 0% 10% 20% 30% 40% 50% 60% 70% Primary value of social media as a marketing channel (total above 100% because multiple answers were allowed) SPONSORED BY 41

Is a Facebook „Like‟ an actionable marketing event? Engage in futher conversation with the customer 31% Foster more community conversations 30% For most to spark ongoing engagement Allow organic conversations, 30% organizations what no censorship or editing Deliver special offers, discounts, 22% to do after a or deals exclusive to fans Deliver more targeted, 22% Facebook „Like‟ individualized messaging Not sure how to respond, but we have a lot of "likes" 21% remains rather fuzzy Deliver more advertising to a more captive audience 10% and informal Provide enhanced service and support 10% CMO Council, Dec. 2011 Promote perks, privileges or benefit 7% Reward power-posters andbuild advocacy among brand champions 7% Work to provide faster handling and better customer care 4% Develop new products or innovations 4% Other 15% SPONSORED BY 42

The relationship between email and social is uncertain… Marketers are split on whether email 51% and social are 45% complementary or 39% 36% separate channels Adestra & Econsultancy, March 2012 19% 9% 1% 1%Complementary channels Separate channels Conflicting channels We dont do social media 2011 2012 SPONSORED BY 43

… and many miss easy integration opportunities… Do you use sign-up forms to grow your lists? 79%Do you tell your subscribers specifically what they will receive? 76% Do you send confirmation emails to your new subscribers? 71% Is your web form on your homepage and above the fold? 58% Do you use incentives to encourage subscriptions? 52% Do you have a newsletter sign-up form included at your blog? 52% Do you collect contacts offline (tradeshows, stores…)? 44% Do you run a Facebook page with a newsletter sign-up form? 42% 0% 10% 20% 30% 40% 50% 60% 70% 80% A majority of small and medium business don‟t collect email subscriptions from FB page GetResponse, Feb. 2012 SPONSORED BY 44

…though they intend to correct that.Social media marketing 68% Social tops integration initiatives planned by Mobile 44% email marketers for 2012 Search 17% StrongMail/Zoomerang, Dec. 2011 Display 14% Other 8% 0% 10% 20% 30% 40% 50% 60% 70% Channels planned for integration with email SPONSORED BY 45

A majority will still focus on “feeding the beast” in 2012… 70% More volume in a 59% universe of ever- 50% expanding online 45% content is what many marketing professionals 33% planned for 2012, such as adding a Google+ presence. Awareness, Dec. 2011 Simply Measured, Feb. 2012 6% Increased Increased More robust More robust More social Otherpresence across frequency of social marketing social media media presence social media content management monitoring platforms publishing Top Corporate Social Marketing Investment Areas in 2012 SPONSORED BY 46

…which means being all over the place.YouTube/video 76 14 1 33 Facebook 72 23 24 A solid majority of Twitter 69 23 1 7 marketers plans to Blogs 68 18 2 12 increase activity Google+ 67 11 1 21 across half a dozen LinkedIn 66 23 1 11 platforms.Photo sharing sites 38 21 1 40 Forums 34 24 2 40 Social Media Examiner, April 2012 Social bookmarking 31 22 2 45 Geo-location 23 19 1 57 Daily deals 12 13 3 72 Increase Stay the same Decrease No plans to utilize Future social media activities (% of marketers) SPONSORED BY 47

But they will have to face questions ofsustainability and media selection… 74% 71% Type of social media in use at Inc. 500 companies 64% 61% 59% 52% 50% 45% 37% 36% 33% 33% 28% 24% 15% 16% 12% 6% Blogging Message/Bulletin Online video Podcasting Facebook Twitter boards 2009 2010 2011 The increase in Facebook and Twitter use is done at the expense of previous generations of online (social) media such as blogs. University of Massachusetts Dartmouth’s Center for Marketing Research, Jan. 2012 SPONSORED BY 48

…even for channels that most find effective.100%90% Facebook joined80% other social70% channels in60% perceived50% marketing success back in 201040% Presumably lower reach and30% channel proliferation push marketers to drop efforts that20% are otherwise deemed successful.10% University of Massachusetts 0% Dartmouth’s Center for Message/ Blogging Online video Twitter Facebook Podcasting Foursquare MySpace Bulletin Marketing Research, Jan. boards 2012 2009 2010 2011 Social media marketing success rate by channel SPONSORED BY 49

Is increased spending the answer?25% CMOs plan to 19.5% raise spending by20% more than 2x over15% the next 5 years 10.8% Duke University’s Fuqua School of Business, Feb. 201210% 7.4%5%0% Current levels Next 12 months Next 5 years SPONSORED BY 50

Data sources Data sources in this presentation include: Adestra - Altimer Group - Awareness - Baynote - BazaarVoice - Carnegie Mellon University - Comscore - CMO Council - Crowd Science - Decipher - Digitas - Duke University - Econsultancy - Epsilon - Forrester - Gygia - Harris Interactive - Ipsos Mendelsohn - Nucleus Research - Sociable Labs - Social Fresh - Social Media Examiner - Umass Dartmouth – Winterberry Group - Wildfire - Zoomerang - Some public companies via their SEC filings This slideshow was put together by MarketingCharts.com, part of the Watershed Publishing network of business-to-business online trade publications. You can find our content on Twitter, Facebook, and Pinterest. Please contact Sarah Roberts at sarah@watershed-publishing.com to become a sponsor of a Data Insights package like this one. SPONSORED BY 51

Some food for thought and actionbased on the data and trends…• Have you tried advertising on Facebook? It is still cheap, is relatively easy to operate, and comes with powerful demographics targeting.• Are there social channels you can safely discontinue? Others you should experiment with?• Do you have a plan to do more than just chase fleeting social exposure?• Are you able to measure how social media really contributes to your business?

Productive Social-Marketing

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