Social Metrics - The Search for ROI in Social Media

Slideshow Transcript

1. Slide 1: Measuring Value from Social Media Steve Latham Spur Digital January 2008
2. Slide 2: Outline Industry Trends Digital media landscape Why Social Media Barriers to Online Investment Metrics ROI analysis Case study 2 © 2007 Spur Digital LP. All rights reserved.
3. Slide 3: Industry Trends Global online ad spend > $80 billion by 2011(1) $42 billion to be spent in U.S. Online = 11.4% of U.S. ad budget (up from 6.6% in 2006) 2007 online video ad spending to exceed $650mm(2) $1.7 billion by 2009 Video ads will be 8% of Internet ad spend (2.3% today) Media fragmentation is proliferating In 1966 5 mediums dominated In 1986 there were 12 In 2006, 30+ mediums were defined “Prime-Time” has been replaced by “My Time” Consumers determine when and how to engage brands Advertisers must adapt to changing marketplace (1) Piper Jaffrey & Co., February 2007“The User Revolution (2) eMarketer 2006 3 © 2007 Spur Digital LP. All rights reserved.
4. Slide 4: Media Consumption is Changing Interactive now accounts for >30% of media time (1) TV = 35%, Radio = 12%, Print = 9% Gen Y (<26): 12 hours per week (vs. 10 hrs TV)(2) Gen X (27-40): 9 hours per week “Communitainment” is new model for internet usage Community, Communication and Entertainment Over 10 years, >50% of Internet usage will be “Communitainment” Social Media is the platform for communitainment Networking Interactive discussions Community User Generated Content is the medium Blogs / Discussions Photo sharing Video sharing (1) Credit Suisse 2006 (2) MultiChannel News 2006 4 © 2007 Spur Digital LP. All rights reserved.
5. Slide 5: Today’s Media Landscape TV Direct Mail Radio Print Mobile Digital $$$ 5 © 2007 Spur Digital LP. All rights reserved.
6. Slide 6: Digital Media Landscape Video E-Mail House & 3rd Search Display and Paid + Party email Display Pre-roll Natural Social Rich, Flash and Networks, Blogs, Static Ads Photos, Videos Portals Search Content Ad Networks Social Networks Affiliate Co-Reg $$$ 6 © 2007 Spur Digital LP. All rights reserved.
7. Slide 7: Social Media Has Gone Mainstream Internet Usage Increasingly Favors Social Media Watch Internet (streaming video) 34% Buy or sell products from other consumers 31% Read a blog 29% Comment or forward online ad to someone 27% Submit a rating or review of a product or service. 26% Use social networking sites 20% Publish a blog or personal journal 10% Upload video you created to Internet 7% % reflects all online users Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey $2.5bn Social networking revenue Social Networking is here to stay: • 34% watching video • 31% buying and selling online $350mm • 26% submitting a rating • 7% uploading a video 2006 2010 *Source: emarketer.com August 2006 7 © 2007 Spur Digital LP. All rights reserved.
8. Slide 8: Trust in Peers Trumps All Other Sources Online Consumers Turn to Friends or Acquaintances for Information Opinion of friend or acquaintance using product or service 83% Review in newspaper, in a magazine, or on TV 75% Information on the manufacturer’s Web site 69% A review by a known expert 63% Consumer reviews on a retailer’s site 60% Consumer reviews by users of a content site 52% Information at online consumer opinion sites 50% Online reviews by editors of content sites 49% Information in chat rooms discussion boards 37% An online review by a blogger 30% Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey. * 8 © 2007 Spur Digital LP. All rights reserved.
9. Slide 9: User Generated Video is Exploding User Generated Video • User-Generated Video made up 47% of the total online video Users want to be market in the US in 2006 • Engaged • By 2010, 55% of all online video • Educated content will be user-generated (44 • Entertained billion video streams) • Video sharing campaigns being utilized to engage customers Screen Digest January 15, 2007 9 © 2007 Spur Digital LP. All rights reserved.
10. Slide 10: So What’s the Problem??? If Social Media is so great, why aren’t more brands and agencies using it? (beyond the issue of inappropriate content) 10 © 2007 Spur Digital LP. All rights reserved.
11. Slide 11: Barriers to Online Investment 2007 McKinsey study of 410 marketing execs found the primary barriers to online investment were: 52% insufficient metrics to measure impact 41% Insufficient in-house capabilities 33% Difficulty of convincing upper management 24% Limited reach of digital tools 18% insufficient capabilities at agency 2 of the top 3 relate to ROI measurement Metrics Convincing upper management (Business Case) …which is why we are here today! 11 © 2007 Spur Digital LP. All rights reserved.
12. Slide 12: Web 1.0 Metrics (sample dashboard) Daily Downloads Daily Visits 1,000 6,000 900 800 5,000 700 4,000 600 500 3,000 400 300 2,000 200 1,000 100 - - /05 /05 /05 5 5 5 5 5 5 5 /05 /05 /05 5 5 5 5 5 5 5 05 05 05 5 5 5 5 5 5 5 05 05 05 05 05 05 05 05 05 05 0/ 0 3/ 0 6/ 0 9/ 0 2/ 0 5/ 0 8/ 0 2/ 0 5/ 0 8/ 0 1/ 0 4/ 0 7/ 0 0/ 0 /0 /0 /0 /0 /0 /0 /0 1/ 4/ 7/ 3/ 6/ 9/ 2/ 5/ 8/ 1/ 4/ 7/ 0/ 10 13 16 19 22 25 28 2/ 1 2/ 4 2/ 7 3/ 3 3/ 6 3/ 9 1 1 1 2 2 2 3 2/ 2/ 2/ 3/ 3/ 3/ 2/1 2/1 2/1 2/1 2/2 2/2 2/2 3/1 3/1 3/1 3/2 3/2 3/2 3/3 2/ 2/ 2/ 2/ 2/ 2/ 2/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ Daily and Cumulative Leads Cumulative Downloads Cumulative Visits 20,000 180,000 18,000 160,000 16,000 140,000 14,000 120,000 12,000 100,000 10,000 80,000 8,000 6,000 60,000 4,000 40,000 2,000 20,000 - - 05 05 05 5 5 5 5 5 5 5 05 05 05 5 5 5 5 5 5 5 / 05 / 05 / 05 /05 /05 /05 /05 /05 /05 /05 / 05 / 05 / 05 /05 /05 /05 /05 /05 /05 /05 0/ 0 3/ 0 6/ 0 9/ 0 2/ 0 5/ 0 8/ 0 2/ 0 5/ 0 8/ 0 1/ 0 4/ 0 7/ 0 0/ 0 / / / / / / 2/ 1 2/ 4 2/ 7 3/ 3 3/ 6 3/ 9 2/1 2/4 2/7