On the social marketing opportunity...
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On the social marketing opportunity...

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On the social marketing opportunity... Presentation Transcript

  • 1. Social Media Marketing Value Proposition0
  • 2. Summary  Social advertising is the fastest growing and most important digital market  Social platforms’ unique and rich data, Key personalization and targeting attributes createMarket enormous demand for technology and analyticsTrends providers that deliver value to marketers  As new platforms emerge (Pinterest, Google+, Foursquare etc.), the market will only become more complex and potentially valuable 1
  • 3. Key Market Trends 1 Rapid growth of social media across online and mobile web 2 Significant under-allocation of ad dollars to social given the share of time spent, which is only increasing 3 Value-added nature of medium given its unique and rich data, targeting and engagement attributes 4 Enormous need from brands and social platforms, e.g. Facebook, for strong technology companies to demonstrate the value of marketing 5 Rapid proliferation of new social platforms and experiences (Google+, Pinterest, Tumblr) creates complexity and enhances value proposition of ad platforms which can help brands capitalize on new opportunities by levering data and technology 2
  • 4. Social Media Consumption Continues to Grow… In 2012, it is estimated that 32% of mobile phone users will access a social U.S. Social Network Users network using their mobile device, expected to grow to 43% by 2014 CAGR (2011-2014): 5% U.S. Mobile Social Network Users CAGR (2011-2014): 23%Users (MM)180.0 170.7 164.2 157.8160.0 147.8140.0120.0 107.4100.0 92.4 77.7 80.0 58.4 60.0 40.0 20.0 0.0 2011 2012 2013 2014 US Social Network Users US Social Network Users Who Access Social Networking Sites Via A Mobile DeviceSource: eMarketer 3
  • 5. …And Advertising Spend Remains SignificantlyUnder-Allocated  Even though 21% of time spent on the Internet is spent on social platforms, only 9% of 2012E Internet ad spend ($3.3BN of $37.5BN) is allocated to social advertising % of Time Spent in Media vs. % of Advertising Spending, USA 2011 US Social Advertising Spending ($BN)50% $9.0 11% 12% 11%45% 43% 42% Of this 26% of media $8.0 10% time spent on the 10% 10%40% 9% $6.9 Internet, 21% was $7.0 spent on social 8% $6.035% 8% networks and blogs $6.0 8%30% 6% $5.1 25% 26% $5.025% 22% $4.2 6% $4.020% $3.3 15% $3.0 $2.5 4%15% 11% 10% $2.010% $2.0 $1.4 7% 2% 5% $1.0 1% 0% $0.0 0% Print Radio TV Internet Mobile 2009 2010 2011 2012 2013 2014 2015 2016 Time Spent Ad Spend US Social Advertising Spending % of Total Online Ad SpendSource: eMarketer and Wall Street Research 4
  • 6. Social Media Offers Marketers “Comprehensiveness” Awareness Active evaluation Opinion Information gathering, shopping Consideration Preference Initial Consideration Moment set Of Purchase Purchase The Loyalty Loop Trigger More than all other forms of Post purchase experience digital media, Social provides Ongoing exposure an opportunity to integrate objectives throughout the … and when Social is integrated across other forms of digital classic marketing funnel… marketing, the power is multiplied dramatically and the funnel transforms into the “Loyalty Loop”Source: McKinsey & Co. 5
  • 7. Market Growth Is Accelerated By Leveraging Data andTechnology… IDEAL TARGET Brands Interests Zip code 94123 Zip code 10022 Geography  Social advertising benefits from the controlled / protected access to rich consumer data1 that is not attainable from search queries, cookies or other common ad targeting techniquesSource: comScore, Vivaki1. Though restrictions exist (either regulatory or by the social platforms themselves) on the extraction of data outside the platforms,most social websites allow for the use of this data for targeting purposes inside their walled gardens 6
  • 8. …to Enable Efficient Targeting for Brands Social media provides a novel and value-added marketing environment where unique data and targeting attributes provide substantial benefits to brands Companies specializing in solving this puzzle can help unlock unprecedented value for brands, as the targeting afforded by social platforms is very effective as shown by the growth in ad units Share of Total US Display Ad Units Social Networking 30% Portals 21% Entertainment 14% News / Information 11% Email 10% Sports 5% Online Gaming 3% Directories 2% Business / Finance 2% 0% 10% 20% 30%Source: comScore, Vivaki 7
  • 9. Though Facebook Is Now The Leader, New Social PlatformsAre Emerging…  The growth in social network usage signifies a fundamental shift in how consumers are using the Internet, allowing Brands to better engage their consumers  As new platforms emerge, the market will become increasingly complexUS UniqueVisitors (MM) 170 160 150 50 140 40 30 20 10 0Source: comScore 8
  • 10. …Creating an Acute Need for Solutions to Help BrandsCapitalize on an Evolving Ecosystem Today’s Social Media marketing paradigms and tactics will likely change substantially in the months and years to come The Objective must be to remain ahead of these changes, and continue to be first to market to adapt and embrace new techniques, new platforms, and rapid ongoing platform evolution 9