eMarketer Webinar: Measuring Social Media Success


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eMarketer Webinar: Measuring Social Media Success

  1. 1. J A N U A R Y 1 9, 2 0 1 2 Measuring Social Media Success Sponsored by:Debra Aho WilliamsonPrincipal Analyst ©2012 eMarketer Inc.
  2. 2. What we’ll look at today… 1) Why it’s important to get measurement right 2) The four problems of measurement today 3) Metrics for success: Three things all marketers should do 4) How to take measurement to the next levelTwitter: #eMwebinar ©2012 eMarketer Inc.
  3. 3. What’s wrong with social media measurement? A snapshot 11 social “Not a single one of the measurement vendors could help them vendors justify the spend thatBig company they’d made in their tools, much less their social campaigns.” ©2012 eMarketer Inc.
  4. 4. The Importance ofSocial MediaMeasurement ©2012 eMarketer Inc.
  5. 5. Marketers believe social media will bring a range of benefits … … if they can only unlock the key to success. “Global executives attribute 52% of their brand’s reputation to how social it is online today, up from 45% one year ago.” “They project that 65% of their brand’s reputation will come from its online sociability in three years.”Source: Socializing Your Brand: A Brand’s Guide to Sociability, October 2011 ©2012 eMarketer Inc.
  6. 6. Measurement and budget go hand in hand Marketers need proof that social media works, so they can feel comfortable continuing to invest.Trial: organization does not have a process or guidelines for performing social marketing. Transition: organization has an informal process with afew guidelines it sporadically performs. Strategic: organization has a formal process with thorough guidelines it routinely performs. Twitter: #eMwebinar ©2012 eMarketer Inc.
  7. 7. The Marketers’ Top Two Digitalrewards Marketing Challengescan begreat, but #1 Generating andthe risks leveraging deep customerare high. insights is a necessity toAccurately compete effectivelymeasuringsocial #2media is a Managing brand health and reputation is harder when socialmust. media plays an important role in marketing Source: McKinsey & Company “McKinsey Quarterly,” November 2011 Image: fotographic1980 / FreeDigitalPhotos.net ©2012 eMarketer Inc.
  8. 8. Social MediaMeasurement Today ©2012 eMarketer Inc.
  9. 9. Here’s what marketers say: Social media measurement is not very effective. Even though there are many ways to measure, concrete success metrics remain elusive. Fan count is still a top metric. 60% of marketers use friends, followers or “likes” as a success measure (Chief Marketer, 2011). The ROI question is unanswered. Return on investment is a top challenge of social media marketing, making budgeting difficult. We don’t know what tools to use. One tool or several?Twitter: #eMwebinar ©2012 eMarketer Inc.
  10. 10. Marketers in their own words“I wish I could say there are many bestpractices and case studies out there, butright now we are still at the infancy stageof defining a framework for social mediameasurement.” “I don’t think anybody’s really cracked the code about how these types of online tools directly impact revenue or ROI.”“We’d like to be able to say that becausewe launched a Facebook sampling tabwe’ve increased our fan count andincreased sales by a certainpercentage, but we’re not in that placeyet to have those sorts of metrics.” ©2012 eMarketer Inc.
  11. 11. Only 13% of marketers say they are‘very effective’ at measuring results ©2012 eMarketer Inc.
  12. 12. Marketers are more apt to count fansand ‘likes’ than sales No change from 2010 3 points lower than 2010 ©2012 eMarketer Inc.
  13. 13. MeasuringsocialmediaROI isfrequentlycited as achallenge ©2012 eMarketer Inc.
  14. 14. Marketers do not know what tools to useto measure successTwitter: #eMwebinar ©2012 eMarketer Inc.
  15. 15. TKTK How can social media marketers get to the metrics that matter?Credit: jscreationzs / FreeDigitalPhotos.net ©2012 eMarketer Inc.
  16. 16. Measurement must move beyond thebasics and prove business value “We have gotten to the point where brands and companies are making decisions on whether to increase investment in a channel that is receiving a huge amount of consumer attention. It’s very important to start to move toward measuring in a better, more business- value-focused way.” ©2012 eMarketer Inc.
  17. 17. Three Things EveryMarketer Should Do ©2012 eMarketer Inc.
  18. 18. 1) Start measuring Don’t assume it’s impossible  39% of worldwide retailers don’t measure social media marketing. (Economist Intelligence Unit, April 2011)  36% of UK B2B marketers don’t measure. (PricewaterhouseCoopers, September 2011)  6.9% of high-revenue companies worldwide* don’t measure. (CMO Club/Bazaarvoice, 2011) * half of respondents worked for companies with $1 billion+ in salesImage: nattavut / FreeDigitalPhotos.net ©2012 eMarketer Inc.
  19. 19. The measurement landscape iscrowded—but navigable ©2012 eMarketer Inc.
  20. 20. 2) Don’t wait for the silver bullet Because businesses use social media for so many reasons and goals, there may never be a single success metric.Twitter: #eMwebinar ©2012 eMarketer Inc.
  21. 21. Every social media effort should startwith clear goals and KPIsExperienced marketers use multiple metrics ©2012 eMarketer Inc.
  22. 22. 3) Demand that your marketing partnersplay a larger roleThe days of recommending social as anadd-on without a clear set of goals are gone “The bigger consultancies and agencies— out of self-defense—will start to develop some pretty good methodologies and mental models for social performance and social ROI.” —Erik Huddleston, Dachis Group CTO ©2012 eMarketer Inc.
  23. 23. Some arealreadysteppingup to thechallenge ©2012 eMarketer Inc.
  24. 24. How to TakeMeasurement to theNext Level ©2012 eMarketer Inc.
  25. 25. Three goals for increasing measurementsophistication in 2012 It’s not the fans, it’s what you do with them. Understand who your brand followers are and how influential they can be on your behalf. Go beyond brand metrics. The more marketers can work toward understanding how social media impacts actual business, the better. Integrate social analytics and marketing analytics. Understand how social media can make other media spending more efficient, and how online buzz relates to overall marketing performance.Twitter: #eMwebinar ©2012 eMarketer Inc.
  26. 26. 1) It’s not the fans, it’s what you do with themUnderstand whoyour brandfollowers areand how theycan beinfluential onyour behalf.Focus onmeasuringleads, sales andrevenue. ©2012 eMarketer Inc.
  27. 27. Only28% ofmarketerstrack thenumber ofpeople whocontributeto abrand’ssocialcommunity ©2012 eMarketer Inc.
  28. 28. 2) Track more than just brand metrics Awareness and engagement may be easier to measure, but social media can do more. Harder metrics can show social’s contribution to business results. Make sales an objective. Only 17% of marketers use sales or leads as a success metric. (Econsultancy/SEMPO) “Sales are what matter to our agents. You can only measure how many people or how many positive comments for so long before people start to question it, especially in this economy.” ©2012 eMarketer Inc.
  29. 29. Case study: Measuring the impact ofbuzz on CPG salesQuestions: How does an increase in positive online buzz impact CPG sales? How does negative buzz impact sales? How long can the effect be expected to last?Methodology:Gathered point-of-sale sales data and online buzz for two brands:Lay’s chips and Skinny Cow ice creamTwitter: #eMwebinar ©2012 eMarketer Inc.
  30. 30. Case study: ResultsFinding #1:Incremental sales increases correlate to the amount of online buzzFinding #2:An ad campaign can trigger online buzz, which in turn can cause asales surgeNext steps:  Study campaigns with less social activity to determine the influence of buzz  Incorporate ad campaign data to better filter out the impact of advertising vs. buzz ©2012 eMarketer Inc.
  31. 31. 3) Integrate social analytics with otheranalytics to help build future business Can buzz generate leads? And save money, too? ©2012 eMarketer Inc.
  32. 32. Jim Farley, Ford’s global marketingchief: “We’re shifting the timing of our [ad] spend. Social media allows us to start to build a community months before a vehicle goes on sale. We learned this with the Fiesta Movement and we are continuing to perfect the model.” If a social campaign drives broad awareness “we can take the traditional media [spending] down a notch.” ©2012 eMarketer Inc.
  33. 33. Marketershave anopportunityto integratesocialanalyticsjust asthey haveintegratedsocialmedia intomarketing ©2012 eMarketer Inc.
  34. 34. Key Takeaways ©2012 eMarketer Inc.
  35. 35. Getting to the metrics that matterSocial media measurement has evolved, but still doesn’t satisfymost marketers. The effectiveness question remains top of mind.Measurement and budget go hand in hand. Marketers need adequatemetrics to be able to determine budget allocations.Marketers are still too reliant on counting what is easy tomeasure. Counting fans and followers is fine as a basic benchmarkmetric, but marketers must strive to understand what those hand-raisers do forthem.Marketers must apply business-level analysis to social mediameasurement. Understanding social media’s effect on a company’s bottomline is critical. As SymphonyIRI and Ford have shown, it’s getting easier toconsider the relative influence of social media on lead generation and sales.Twitter: #eMwebinar ©2012 eMarketer Inc.
  36. 36. CFO vs. CMO
  37. 37. Powerful IntelligenceFor Social & Search Advertising
  38. 38. Real-Time Data So Marketers Can…Prove ROIMake Better Ad DecisionsSurface Customer Insights
  39. 39. Clickable 4.0 Workflow Ads Layer Insights CompanyGraph ™Data Layer CRM Learn more: mkalehoff@clickable.com
  40. 40. Measuring Social Media SuccessQuestions & AnswersRegistrants will receive an email tomorrow that includes a link to viewthe deck and webinar recording.For more discussion, please join us after the webinar on Twitter.To learn about eMarketer Total Access please visit www.emarketer.com/productsor contact us: (800) 405-0844 or webinars@emarketer.com Presented by: Sponsored by: Debra Aho Williamson Principal Analyst, eMarketer, Inc. Twitter Hashtag: #eMwebinar ©2011 eMarketer Inc.