Nielson Social Media Business Benchmarking study

Social Media BusinessBenchmarking Study 2011Wave 2: 2011

The Australian ONLINE CONSUMER Report• Three in four online Australians call on consumer opinion about brands, products and organisations, found in social media• 63% have a Facebook profile• 46% have clicked the Facebook ‘Like’ button for a brand, product, org.• 43% share their opinions about brands and products through social media• Among social networking participants: • 53% have engaged with a brand or company on a social networking site • 36% have engaged with government or politicians on a social networking site Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Social Media BusinessBenchmarking Study 2011Wave 2: 2011 Nielsen | Community Engine Social Media Business Benchmarking Study 2011

“Getting support from my managers and Ministers to venture into social media has been a bit like taking my Dad to the Big Day Out. We all felt a little awkward about it at first, but we talked about the risks and how to behave (both to fit in and to stay safe), and now that weve stepped into the gates, weve found people wearing the t- shirts for our band! Were all having a great time and dont want to go home.” Respondent comment, Nielsen Social Media Study, July 2010, public sector survey. Nielsen | Community Engine Social Media Business Benchmarking Study 2011

1. Australian business’ investment insocial media

The budget allocated to social media activity increased in 2010During 2009 During 201057% 72%of participating business’ allocated of participating business’ allocated10% or more of their marketing 10% or more of their marketingbudget to social media activity. budget to social media activity. Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Among business’ conducting social media activities in 2010, what proportion of the marketing budget was allocated? 8% Those allocating one fifth or 1-4% 23% more of their marketing budget to social media 20% 5-9% increased from 28% to 40% 20% last year. 31% 10-19% 29% 26% 20-39% 13% 14% 201040% or more 15% 2009 Nielsen | Community Engine Social Media Business Benchmarking Study 2011

42% of business says a greater proportion will be invested in socialmedia this year A greater proportion of the marketing budget to social media About the same proportion of the marketing budget to social media What is driving the increase? A lower proportion of the marketing budget to social media 66% It’s a marketing channel we know we need to be in !"#$ 50% The reach of social media %&#$ 42% The targetability of social media #$ 42% It drives insight and action across a lot of areas of the business 31% Proving ROI on activities 27% Senior management buy-in Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Public sector is far more likely to maintain, rather than grow, their levelof investment this year Private Public 68% 50% 42% 21% 12% 8% A greater proportion of the marketing About the same proportion of the A lower proportion of the marketing budget to social media marketing budget to social media budget to social media Nielsen | Community Engine Social Media Business Benchmarking Study 2011

More marketing budgets were expanded to fund social media activitiesduring 2010… 44% Expand the marketing budget 33% 37% Allocate funds away from other marketing activities in order to fund social media activities 44% 18% Both 2010 23% 2009 Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Direct marketing is now the strongest target for budget redeployment 41% Direct Marketing 33% 37% Print 47% 23% Other online/ digital 26% 17% TV 15% 10% Radio 2010 14% 2009 9% Outdoor 8% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

More than half use their social media investment for marketing, butother business activities are also prominent Overall Large orgs SMEs SMEs also investing in social media 56%54% 52% for customer service, relationships and sales activity. 38% 36% 35% 30% 30% 30% 31% 29% 24% 25% 24% 21% 21% 21% 20% 19% 18% 16% 17% 16% 14% 14% 12% 7%Marketing / Customer Customer Public Developing Customer / Product Competitor Employeepromotion relationship service / relations sales leads consumer / development research engagement marketing support stakeholder research Nielsen | Community Engine Social Media Business Benchmarking Study 2011

The most social media budget is commonly allocated to displayadvertising or maintaining a presence on Facebook Online display advertising on social networking sites 21% Facebook 21% Social media monitoring 17% Corporate blog 15% A Facebook Like button on your site 14% Responding to/acting on comments 13% Allowing participation on your website 12% Other forms of advertising on social networking sites/social 12% media sites Inclusion of social media share buttons on your site 12% Using social media to gain consumer insight/as a research 10% tool Creating your own ‘online social network’ 10% Facilitating social shopping (social commerce) in some way 7% YouTube 5% Twitter 5% Flickr 2% MySpace 1% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Australian business’ are more likely to have policies to protect their brand…17% 24% Of this group…Have a formal social media Have a social media policy • 84% have policies/guidelinesstrategy or guidelines for their own staff• 27% of large • 42% of large • Higher among public sector at organisations organisations 90%• 11% of SMEs • 12% of SMEs • 46% have policies/guidelines for their agencies• 8% of public sector • 23% of public sector • 21% for outsourced bloggers etc. Nielsen | Community Engine Social Media Business Benchmarking Study 2011

2. The social media activities conducted bybusiness’ in 2010

The 5 most popular social media activities conducted by Australianbusiness’ in 201028% Presence in social media26% Social media monitoring25% Respond to/act on comments made via social media23% Gain consumer insight/use social media as a research tool21% Advertise on social networking sites Nielsen | Community Engine Social Media Business Benchmarking Study 2011

“There are many fans sites out there but when fans make comments or complaints or provide feedback, and companies don’t bother to respond, that is a big fail.” Director, Large business, Engineering Nielsen | Community Engine Social Media Business Benchmarking Study 2011

The social media activities business’ are engaging in Presence in social media networks 28% Tracking/ monitoring what is said about your brand/ 26% org./staff Responding to/acting on comments 25% To gain consumer insight/as a research tool 23% Online display advertising on social networking sites 21% Other forms of advertising on social networking sites/ 19% social media sites Allowing participation on your website 19% A Facebook Like button on your site 19% Corporate blog 18% Creating your own ‘online social network’ as part of 18% your organisation’s website Facilitating ‘social shopping’ (social commerce) in 17% some way Inclusion of social media share buttons on your site 14% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Business uptake of social media was strong during 2009 while somepared back their activities in 2010 28% Presence in social media networks 31% 10% 26% Tracking/ monitoring what is said about your brand/ 31% org./staff 14% 25% Responding to/acting on comments 30% 15% 23% To gain consumer insight/as a research tool 26% 12% 21% Online display advertising on social networking sites 19% 6% 19% Other forms of advertising on social networking sites/ 20% social media sites 9% 19% Allowing participation on your website 24% 13% 18% 2010 Corporate blog 19% 11% 2009 18% Creating your own ‘online social network’ as part of 2008 or earlier 20% your organisation’s website 8% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Plans for 2011: Social media further integrated with owned media 30% Presence in social media networks 28% Tracking/ monitoring what is said about your brand/org./ 27% staff 26% 25% Responding to/acting on comments 25% 22% To gain consumer insight/as a research tool 23% 24% Online display advertising on social networking sites 21% Other forms of advertising on social networking sites/ 21% social media sites 19% 21% Allowing participation on your website 19% 25% A Facebook Like button on your site 19% 18% Corporate blog 18% 2011 Creating your own ‘online social network’ as part of 18% your organisation’s website 18% 2010 Facilitating ‘social shopping’ (social commerce) in some 17% way 17% 22% Inclusion of social media share buttons on your site 14% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Large business is participating to a considerably greater extent than SMEs Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Private and public sector on par across many areas but public sector hasbeen slower to uptake some activities 28% Presence in social media networks 25% Tracking/ monitoring what is said about your brand/ 26% org./staff 14% 25% Responding to/acting on comments 16% 23% To gain consumer insight/as a research tool 9% 21% Online display advertising on social networking sites 17% Other forms of advertising on social networking sites/ 19% social media sites 12% 19% Allowing participation on your website 19% 19% A Facebook Like button on your site 19% 18% Corporate blog 15% Private Creating your own ‘online social network’ as part of 18% your organisation’s website 12% Public Facilitating ‘social shopping’ (social commerce) in 17% some way 14% 14% Inclusion of social media share buttons on your site 15% 49% None of the above 59% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

54% 42%of Australian business’ agree that agree that they risk losing touchthey should be asking “how” to do with their customers if they don’tsocial media, rather than “if” they employ social media activities vs.should do it vs. 63% in 2009. 50% in 2009. Nielsen | Community Engine Social Media Business Benchmarking Study 2011

One in four Australian business’ have a presence on Facebook Facebook 23% Public sector: 31% 27% 14% Twitter 17% 10% YouTube 10% 6% LinkedIn 2% Large orgs SMEs 3% Flickr 29% 21% 3% MySpace 17% 13% 5% 2010 1% FourSquare 2009 16% 8% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

# of fans ranged from 1-20,000...Average: 2,252 fansMedian: 300 fansAround one in five business’ with a Facebook presence have:• 1-49 fans• 50-199 fans• 200-999 fans• 3000+ fansi.e. 60% have up to 1000 fans. Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Among the 19% allowing participation on their own website in 2010… Comments/reviews can be posted on the site 59% Social media ‘share’ buttons 65% and facilitating video upload 54% Forums 65% is now more widespread. 43% Users can rate things or vote 44%Users can share the content on social networking 40% sites 29% 25% Users can tag content 21% 24% Users can upload videos 15% 21% Users can upload photos 29% 12% The ability to create groups 8% Users can upload music/other audio 2010 8% 2009 7% Users can edit content e.g. wiki pages 12% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Content offered via social media Knowledge sharing 56% Customer support/service 50% Status updates relating to products/services etc. 49% Deals and offers 47% The opportunity to ask questions 47% The opportunity to have conversations/discussions with 31% other customers/consumers/stakeholders The opportunity to have conversations/discussions with 31% your organisation Competitions 28% Access to ‘breaking news’ and information before 24% anyone else Rich media e.g. webinars, podcasts, other video etc 21% Tailored content/offers based on demographic profiles or 19% behavioural targeting Geo-targeted offers, promotions, content 18% Access to ‘breaking news’ and information only available 17% via this channel Games/applications/tools 11% Content optimised for mobile/offered via mobile phone 9% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Public sector is active in facilitating discussion and interaction, amongother content areas 56% Knowledge sharing 33% 50% Customer support/service 39% 49% Status updates relating to products/services etc. 36% 47% Deals and offers 42% 47% The opportunity to ask questions 56% The opportunity to have conversations/discussions 31% with other customers/consumers/stakeholders 33% The opportunity to have conversations/discussions 31% with your organisation 28% 28% Competitions 36% Access to ‘breaking news’ and information before 24% anyone else 22% 21% Rich media e.g. webinars, podcasts, other video etc 22% Tailored content/offers based on demographic profiles 19% or behavioural targeting 14% 18% Geo-targeted offers, promotions, content 22% Access to ‘breaking news’ and information only 17% available via this channel 31% Private 11% Games/applications/tools Public 19% 9% Content optimised for mobile/offered via mobile phone 17% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Among the 33% conducting social media monitoring and/or using socialmedia for research or insight… Nielsen BuzzMetrics 19% 72% use a specific monitoring tool/solution – 76% of large organisations vs. 65% of SMEs Visible 11% TechnologiesTNS Cymphony 10% Radian6 7% Buzznumbers 7% Converseon 7% Brandtology 4% “It’s important to respond to social media, it shows the company is engaged with clients.” JamiQ 2% Public sector, 20-49 employees, Sport and Rec. Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Social media monitoring is being used to support a wide range ofbusiness functions Marketing communications 54% Customer service and 49% support Customer relationship management e.g. building 34% CRM database Sales team e.g. sourcing 33% sales leads, sales material PR and corporate 31% communications Product development 30% Human resources e.g. finding 20% and retaining staff Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Among the 17% facilitating social shopping / social commerce… Based on intention, by 2012 we expect: Selling via Facebook 33% 31%Helping consumers make purchase decisions by offering ratings/reviews from other consumers 33% 41%Helping consumers make purchase decisions by offering communities to facilitate discussion 32% 27% Group buying offers 29% 31%Driving viral activity surrounding offers and deals 16% 23% M-commerce 14% 11% Shared lists 14% 12% Facilitating sharing content 8% 12% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

3. The barriers to business investment insocial media

The barriers to investing in social media activities are declining, butresourcing remains a issue Social media activities are high maintenance and resourcing is difficult 20% 22% Barriers relating to ROI and establishing We do not have the human resources to do any 18% KPIs have declined significantly. social media activities 18% It is difficult to measure ROI of social media 16% activities 28% Ensuring our activities are conducted in an ethical 16% way e.g. cautious of consumer privacy Social media is too risky for our brand reputation, 12% e.g. if it backfires 13% We are unsure how to engage in social media/ 11% unsure how to get started 13% We are unsure how to establish KPIs around this 8% form of marketing 15%We want to build/manage our own social networking 8% platform but are not sure how 8% There are minimal effective social media solutions 7% available in the market 7%We want to build/manage our own social networking 5% 2010 platform but can’t source a solution 4% 2009We want to build/manage our own social networking 4% platform but the investment is too high 5% We achieved poor ROI on social media activities in 2% the past 37% There are no barriers 24% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Resourcing: Very few businesses have staff dedicated to social mediaactivities and not anticipating such investment Overall Large orgs SMEs Wave 1: 9% had “staff dedicated to social media” 76% 67% 51% 23% 17% 14% 11% 8% 6% 6% 5% 2% 3% 3% 0% Yes - full time staff* Yes – but it’s part of a No, but we intend to No, but we would No, and we would not function consider it consider it Nielsen | Community Engine Social Media Business Benchmarking Study 2011

There are not enough agencies/providers with specialist expertise and I feel as though our I feel as though our experience to help us organisation lacks the organisation is scared to implement and manage knowledge and expertise implement social media our social media to implement social activities activities media activities Net agree 2009 2010 2009 2010 2009 2010 25% 32% 35% 36% 33% 53% 24% Neither agree nor disagree their knowledge and expertise in the space 23% 24% 35% 36% 19% 44% 37% 35% 25% Net disagree 21% 20% Business’ are less ‘scared’ of social media and feel more confident inNielsen | Community Engine Social Media Business Benchmarking Study 2011

Public sector, however, lags private sector in their confidence and ‘courage’ NET AGREE 35% I feel as though our organisation lacks the knowledge and expertise to implement social media activities 51% 32% There are not enough agencies/providers with specialist expertise and experience to help us implement and manage our social media activities 34% 25% Private I feel as though our organisation is scared to Public implement social media activities 33% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

More than half of those who are yet to implement social media activitiesfeel it won’t serve their needsResults not measurable enough/cannot be tied into our KPIs 16% “I run a business, not a chat show. 7% Accounting and tax could never be classified 13% Lack of expertise/knowledge of the area 12% as chatty professions.” 11% Difficult to resource/manage/maintain 12% SME, 2-5 employees, Accounting Not enough ‘buy-in’ from senior 9% management 15% We did not see any ROI / feel there will not 7% be any ROI 26% We couldn’t source the expertise to guide 7% our social media marketing activities 5% 7% It didn’t / wont serve our needs 56% Budget cut-backs prevented further social 6% media activities / no spare budget 16% Have implemented Social Media Activities We couldn’t source the technology to 6% support our social media marketing activities 7% Have not implemented Social Media Activities Nielsen | Community Engine Social Media Business Benchmarking Study 2011

And this perception has become more widespread while most othershave declined 56% We do not feel social media will serve our needs 42% 26% We do not feel there will be any return on the investment 29% 16% We do not have any spare budget 17% Senior management have not (yet) ‘bought into’ social 15% media 31% 12% We don’t have enough expertise/knowledge of the area 29% 12% We feel it will be difficult to resource/manage/maintain 16% Difficult/risky to position ourselves appropriately when 11% conducting social media marketing activities 10% We are concerned it could be damaging to our brand We couldn’t source/didn’t know where to source the 7% technology to support our social media activities 3% The results are not measurable enough/cannot be tied 7% into our KPIs 14% We are concerned about the possibility of negative 7% comments resulting from these activities We have heard others have had a negative experience 7% with social media activities 5% We are unsure how to handle/concerned about 2010 7% consumers’ privacy issues 2009 We couldn’t source/didn’t know where to source the 5% expertise to guide our social media activities 4% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

4. Experiences and outcomes to date

Experiences with social media activities We were just giving it a go and might implement 23% again this year 26% The results were not measurable enough/could not 16% be tied into our KPIs 21% We found we didn’t have enough expertise/ 13% knowledge of the area 23% 11% It was too difficult to resource/manage/maintain 13% We did not have enough ‘buy-in’ from senior 9% management 14% 7% We did not see any return on the investment 12% We couldn’t source the expertise to guide our social 7% media marketing activities 6% 7% It didn’t serve our needs 7% We experienced budget cut-backs and couldn’t 6% continue our social media activities 5% We couldn’t source the technology to support our 6% social media marketing activities 3% It actually backfired/we had a negative experience 4% 2010 with our social media marketing activities 2009 3% We experienced a social media ‘crisis’ Nielsen | Community Engine Social Media Business Benchmarking Study 2011

The marketing objectives achieved through social media activity 53% Customer feedback 53% Single most important objective of 43% Relationship building 35% 42% Social Media: Word of mouth 40% Customer / market insight and research 34% 38% - Word of mouth 14% Community engagement 34% - Customer feedback 12% 33% Brand building 32% 61% - Generating revenue 11% Generating revenue Customer acquisition 27% 27% - Brand building 10% 21% 27% Increased visitation of the online content 31% 26% Retention / building loyalty 33% 24%Customer/stakeholder engagement or participation 42% 23% Community building 26% 17% Cost reductions 17% Improved search engine rankings 20% 2010 15% Lead generation 25% 2009 11% Advocacy Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Degree to which ROI has been achieved on social media activities37% 18% 23%Saw strong or reasonable Saw minimal or no ROI Have either not measured,ROI from their Social Media or don’t know how toActivities measure the ROI Nielsen | Community Engine Social Media Business Benchmarking Study 2011

A greater proportion now achieve strong or reasonable return on theirsocial media investment 37% Strong or reasonable ROI 24% 18% Minimal or no ROI 26% 23% 2010 Either not measured or dont know how to 2009 measure the ROI 29% Nielsen | Community Engine Social Media Business Benchmarking Study 2011

How businesses quantify the ROI of their social media activities 67% 41% 39% Improved engagement Sales / revenue Social media with customers directly attributed to engagement metrics the activity 23% 22% 13% Insights generated from Brand movements Reduced costs social media monitoring directly attributed to the activity Nielsen | Community Engine Social Media Business Benchmarking Study 2011

5. Concluding remarks

Business’ social media conduct – what happened in 2010?• Efforts have been consolidated and appear more focused and planned – including budget allocation• Intentions are strongest in the integration of social media and owned media• Social media activity is penetrating many areas of the business• Perceptions of social media still limit some business adoption, while resourcing remains a challenge for many• Confidence grew, investment grew, barriers have started to break down Nielsen | Community Engine Social Media Business Benchmarking Study 2011

Social Media BusinessBenchmarking Study 2011Wave 2: 2011

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Nielson Social Media Business Benchmarking study

by Heidi Allen on Jul 11, 2011

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Nielson Social Media Business Benchmarking study — Presentation Transcript