Booz co campaigns-to-capabilities-social-media-and-marketing-2011

Leading Research Christopher Vollmer Karen PremoCampaigns to CapabilitiesSocial Media & Marketing 2011Selected InsightsOctober 2011

Facebook, Twitter, and YouTube are the cornerstones of mostsocial media strategies Priority Social Media Platforms (% of respondents listing this platform among their top 3) Key Observations Respondents reported that they use 94% multiple social media platforms; sample average was 4.6 77% Facebook and Twitter are by far the most broadly used and highest-priority platforms Location-based social media is still emergent 42% MySpace is a priority platform for only a limited number of respondents; most do not use it at all 25% 25% 13% 8% 2% Facebook Twitter YouTube Blogs Company-owned LinkedIn Location- MySpace social platforms based (e.g., Foursquare)Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 1

Today, social media lives primarily within marketing, digital,and PR Departments Responsible for Leading Social Media Today (% of respondents) 81% Key Observations Marketing departments are primarily 62% responsible for social media today However, social media is often sprea d across multiple departments 48% More leading-edge companies use social media for a broader variety of applications 26% 16% 10% 8% 8% Marketing Digital PR Customer Research Sales/commerce Product IT service developmentSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 2

A third of companies have a senior executive who is responsiblefor social media company-wide Does Your Company Have a Senior Executive Who Is Responsible for Social Media Company-Wide? (% of respondents) Key Observations Yes 35% Overall, a third of companies reported that they have a company-wide head of social media The portion rises to 41% among companies that consider themselves “best in 65% No class” or “strong”Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 3

Respondents identified a range of critical success enablers Social Media Success Factors (% of respondents who “strongly agree” or “agree”) Key Observations Softer factors appear to 94% 93% trump harder factors 90% 90% 88% (budgets, head of social, 86% 83% etc.) in driving success 80% 79% 62% 53% 50%Ability to adapt Having a clear Clearly Education on A culture that Supporting Training of staff Strong PR Unique content Ability to Dedicated Head of social& react quickly champion, communicated what can be encourages initiatives with who are not capability that is exclusive coordinate & budget not media owner support from achieved via experimentation an integrated accustomed to to the audience manage shared with company-wide executive social media marketing plan using social on each multiple service other digital management providers initiativesSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 4

Social media is a CEO-level agenda item for many companies Is Social Media on Your CEO’s Agenda? (% of respondents) Don’t know 19% Key Observations Yes Though social is not on the agenda 38% of many CEOs, nearly 40% of respondents reported that is it a CEO-level agenda item This suggests that social media has moved beyond being a “fad” for many of these companies, and it is viewed more as a high- potential business tool 43% NoSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 5

Social media has a range of uses How Do You Use Your Top Social Media Platforms? (% of respondents) Key Observations Advertising and promotions, PR, and customer service are the primary uses today Emerging uses include market 96% research, sales, and product 88% development 75% In a minority of cases, social media is also used for internal communications, recruiting, or content generation 56% 48% 40% 24% 13% Advertising & PR Customer service Market research Sales/commerce Product Internal Other (recruiting, promotions development communications content generation, community)Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 6

Companies view social media as offering the most benefit in theupper stages of the purchase funnel Key Observations Great or Some Benefit from Social Media Companies are deriving significant (% of respondents) marketing value from social media Though the generation of sales and leads is rated lower than other benefits, almost half of respondents 90% 89% 88% see it as a benefit of social media 81% 78% 76% 71% 71% 71% 66% 46% Brand building Interactivity Buzz building Consumer Enhanced Broad reach Creativity & Speed of Lower cost Traffic to Generation of insights marketing innovation execution our sites sales/leads effectivenessSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 7

Marketers measure social media across all stages of the purchasefunnel Metrics Used for Social Media (% of respondents) Reach (uniques, PVs, video views, time spent) 88% Key Observations Buzz (trending topics, blog mentions, influentials) 66% Companies are still trying to “crack the code” on the measurement of social Engagement (forwards, shares, re-tweets, posts, likes) 93% media Most respondents report using multiple approaches to Participation (fans, followers, check-ins, sign-ups) 92% measuring social media as metrics mature Most companies are not yet Transaction (sales, leads generated) 38% able to link transactions to social media Advocacy (comments, feedback, participation in polls) 81%Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 8

Respondents agree that social media will become a bigger part oftheir marketing mix Social Media in the Marketing Mix – Opinions (% of respondents who “strongly agree” or “agree”) Key Observations Though social media is an increasingly important part of the 90% marketing mix, it is not replacing other vehicles like search or owned sites 65% Respondents appear bullish on 54% integration and don’t believe that it 49% is “impossible” to measure 40% 32% 27% 19% Social metrics Our organization Investing in Social media Social media is Our brand Social media is a Evaluating should be tailored will integrate social relationships with should be the driving our presence on traffic source that campaigns that to the needs of the media into all consumers through fastest-growing approach to mobile platforms such as is more important integrate social & campaign advertising & social media is segment of our marketing Facebook & Twitter than search traditional media marketing more important to marketing budget is becoming more feels impossible our brands than important than our today mass reach own siteSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 9

Companies have a range of capabilities already in place or are look ing to build them Key Observations Only a handful of companies have all of Organizational Elements these organizational elements in place Do Not Have, Not Looking to Build (% of respondents) today Building or Will Build Soon However, almost half report that they will Have Today have all of them in place in one or two years 7% 3% 9% 4% 4% 9% 16% 16% 16% 25% 29% 34% 37% 41% 32% 47% 28% 35% 56% 46% 40% 44% 65% 63% 59% 59% 56% 50% 49% 38% 35% 35% 15%Social media Integration of Monitoring Overall Social media KPIs & Social mediaPlatforms/forums Consumer Social Revenue- policies social media & rapid strategy for agency dashboards creative/content to share insights media-driven generating into marketing response social media partnerships for social capability results/best generation via customer platforms plans overall capability in media practices social media service built from social media channels social mediaNote: Numbers may not add up due to rounding.Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 10

Almost all companies report that they are growing their spend onsocial media Future Investments in Social Media (% of respondents) Will remain unchanged 5% Substantially more resources 39% Key Observations Companies clearly intend to spend more on social media in 57% the future to build bigger social programs and platforms Somewhat more resources No respondents reported that they would spend less on social media in the futureNote: Numbers may not add up due to rounding.Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 11

Hiring full-time employees is the number one investment beingmade in social media Investments in Social – Type Key Observations (% of respondents) As companies are building 57% up their social media, they are focused on hiring in- house staff 48% Partners also will play a key role in supporting 39% 38% companies as they use social media more widely 25% 16% 14% Hiring full-time Services provided Creating Media buys Consulting/other IT systems/ Hiring contractors, employees by partners more content professional partnerships freelancers, or part- services time employeesSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 12

Three primary roles make up a social media team Key Observations Today, community management is the most common role Looking forward, hiring creative This Role Is on Our Social Media Team Today talent is the top priority (% of those with dedicated resources) 63% IT talent is not a priority for 49% social media hiring 36% 30% 10% Community managers Creative talent (editors, Analysts/strategy resources Senior management (not Product/software developers content creation) including head of social media if applicable) Type of Full-Time Roles We Are Planning to Invest In in the Near Future (% of respondents investing in FTEs) 72% 59% 43% 28% 24% Community managers Creative talent (editors, Analysts/strategy resources Senior management (not Product/software developers content creation) including head of social media if applicable)Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 13

Marketers report that social media spend will increase significantly as a percentage of digital spend in the next three years Social Media Spend as a Percentage of Digital Marketing Spend Today 3 Years from Today 7% 5% 13% Key Observations 28% Social media will begin to take up a meaningful share 22% of digital budgets for many companies 32% Overall digital budgets are 67% also growing, suggesting a substantial uptick in spend 27% in the coming years <5% 5%-10% 10%-20% >20%Note: Includes only those responses where an answer was provided for social media as a percentage of digital both for “today” and for “three years from today.”Numbers may not add up due to rounding.Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 14

Within these budgets, social media is precipitating a shift insidedigital media more than away from other types of ad spend Which Other Media Budgets Does Social Draw From? (% of respondents) Key Observations 79% Social media is primarily drawing on digital media budgets, likely shifting funds away from digital advertising vehicles such as display 21% 15% 6% 6% 5% Digital TV Magazines Outdoor Newspapers RadioSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 15

Contact InformationNew YorkChristopher VollmerPartner+1-212-551-6794christopher.vollmer@booz.comKaren PremoPrincipal+1-212-551-6683karen.premo@booz.com 16

The most recent list of Worldwide Europe North Americaour offices and affiliates, Offices Amsterdam Atlantawith addresses and Berlin Boston Asia Copenhagen Chicagotelephone numbers, can Beijing Dublin Clevelandbe found on our website, Delhi Düsseldorf Dallasbooz.com Hong Kong Frankfurt DC Mumbai Helsinki Detroit Seoul Istanbul Florham Park Shanghai London Houston Taipei Madrid Los Angeles Tokyo Milan Mexico City Moscow New York City Australia, Munich Parsippany New Zealand & Paris San Francisco Southeast Asia Rome Auckland Stockholm South America Bangkok Stuttgart Buenos Aires Brisbane Vienna Rio de Janeiro Booz & Company is a leading global management consulting Canberra Warsaw Santiago firm, helping the world’s top businesses, governments, and Jakarta Zurich São Paulo organizations. Our founder, Edwin Booz, defined the Kuala Lumpur profession when he established the first management Melbourne Middle East Sydney Abu Dhabi consulting firm in 1914. Beirut Cairo Today, with more than 3,300 people in 60 offices around the Doha world, we bring foresight and knowledge, deep functional Dubai Riyadh expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage. The independent White Space report ranked Booz & Company #1 among consulting firms for “the best thought leadership” in 2010. For our management magazine strategy+business, visit strategy-business.com. Visit booz.com to learn more about Booz & Company.©2011 Booz & Company Inc.

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Booz co campaigns-to-capabilities-social-media-and-marketing-2011

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