Networked insights social lift whitepaper

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Social lift is a powerful new tool that enables a business to place the minim

Social lift is a powerful new tool that enables a business to place the minim

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  • 1. A White Paper by Dan Neely, CEO Networked Insights
  • 2. Social Lift:How to make yourmedia plan go furtherU.S. department store magnate John Wanamaker coined the phrasethat has loomed in the back of marketers’ minds for a century: “Halfthe money I spend on advertising is wasted; the trouble is I don’t knowwhich half.”The Philadelphia merchant’s words still resonate today, but only in Social lift is a powerfulspirit. Wasted spending may now account for 70 percent or more of a new tool for achievingcompany’s ad spending. Social media and mobile communications are results. It is the enginespreading audiences across a wider array of outlets, making it harder to that enables a businessreach targets. New entrants continually appear to vie for coveted to place the minimalmarkets like online moms. effective amount of advertising needed toIncreasing ad budgets is one way to attack these challenges. But trying tooutspend competitors has become an arms race that no one will win, and reach targeted audiences.shareholders won’t stand for.The alternative to spending more is spending more efficiently. But howcan you find ways to make a $100 million budget deliver a $500 millionbudget’s worth of payback?Social lift is a powerful new tool for achieving those results. It is theengine that enables a business to place the minimal effective amount ofadvertising needed to reach targeted audiences. Email: info@networkedinsights.com Phone: 608.237.1867 www.networkedinsights.com © 2011, Networked Insights, Inc. 2
  • 3. The clever twist at the end of a prime-time TV ad prompts a viewer toWhat is Social Lift?tweet about it. The tweet sends eight people to YouTube to check out theclip. Four of those people post links to the video on their Facebook pages,each of whom has several hundred Facebook friends.The tweets, videos and links combine to create a form of social lift. Sociallift is the amount of time, and speed with which, a piece of content — While the TV is on*an ad, a TV show, a viewer contest, a news item — ripples out from itssource to reach people through other avenues. It is another layer ofinformation that can help make every $1 of budget deliver severalmultiples of value. 19% Look up things they see on showsHow far and how fast the content ripples are key measures of social lift. Athousand ripples in a month can be extremely valuable to a brand. But ifthose 1,000 ripples take a year or two to occur, the lift may be of little use.But the real power of social lift lies in its use as a forward-facing tool. If 14% Use social networking sites toyou can put your arms around literally billions of data points from both talk about the show they arenew and old media spheres using today’s powerful analytics capabili- watchingties, you can perform social lift analysis that can help predict how manypeople will see a program. 12% Look up things they see inContrast this with traditional media analysis that is based on backwardfacing metrics that report how many people did see it. Having the equiva- commercialslent of a crystal ball that gives you a view into potential social lift can putyou a huge step ahead of your competitors when planning marketing andadvertising expenditures. 9% Shop online for things they see in shows or commercialsSocial Lift OpportunitiesSocial lift can be achieved in a variety of ways. You can achieve social *Source: Forrester Researchlift by aligning your products and services with celebrities, programs Recontact Survey, Q2 2010 (US)and other cultural touchstones that generate buzz. For example, inconsidering whether to pursue an endorsement deal with a popular actor,you could evaluate what response, or lift, the actor has provided whenassociated with other types of content. You could assess whether the lifthas continued to grow over time or whether the actor’s star is fading.A similar assessment can be applied to television shows. For thosealready on the air, you can evaluate what happens when certain content,celebrities or ads appear during those shows. What is the social lift — oroverall ripple effect — in those instances, how long did it take to reachmaximum penetration and when did returns start to diminish? Email: info@networkedinsights.com Phone: 608.237.1867 www.networkedinsights.com © Copyright 2010, Networked Insights, Inc. 2011, Networked Insights, Inc. 3 3
  • 4. In the case of new shows — shows being pitched or in early develop-ment — pilot episodes can be analyzed in terms of their concept, why theywould be of interest to audiences and who the people involved are.Existing shows that are analogous to the new offerings in the marketplacecan be evaluated in terms of the social lift they achieved.Using social lift to predict a show’s potential can have substantialbottom-line benefits. Companies can lock in lower ad rates, which providesteadily increasing bang for the buck as viewers flock to the new program.Super Examples of Social LiftThe feast of ads airing during the 2011 Super Bowl provided fertile groundto evaluate social lift. Networked Insights analyzed the social lift of SuperBowl ads as measured by the increase in buzz about them from a baseline Are you only being socialtaken before the game compared to directly after it. We also measured the about social media? Socialefficiency of spending, which is the total media value divided by the lift tools and measuresestimated spending on the ads. Mixing and sequencing paid, earned and need to be applied toowned assets effectively is the secret to maximizing spending efficiency. traditional media as well as social media, otherwiseTeleflora placed only one ad during the Super Bowl, featuring countrymusic star Faith Hill. But with a storyline that went from heartfelt to edgy you won’t capture theirin 30 seconds, the ad generated enormous social buzz — and achieved the full benefits.highest spending efficiency. Chrysler’s ad paying homage to Detroit’sautomaker heritage achieved the highest social lift, although it’stwo-minute running time and elaborate production reduced its efficiency.For a copy of the Networked Insights report on the Super Bowl, visithttp://ow.ly/3YIBISocial Lift: Some Next StepsYou can start creating a platform to capture the benefits of social lift byasking yourself and your advertising agency some basic questions: • Is social lift a yardstick or a telescope? Assess whether you are using social lift to measure the results of your advertising and marketing programs or as a tool to predict what results you may achieve from future efforts. • Are you only being social about social media? Social lift tools and measures need to be applied to traditional media as well as social media, otherwise you won’t capture their full benefits. • Can you handle the truth? Social lift can only provide value if you have no vested interest in what it tells you, even if that means scaling back spending on TV or another specific activity. Email: info@networkedinsights.com Phone: 608.237.1867 www.networkedinsights.com © 2011, Networked Insights, Inc. 4
  • 5. It’s also important to consider the sequencing of paid, earned and ownedmedia initiatives. For example, you can launch a contest with an “owned”online video, then follow it with advertising. Or you can open with aconversation-starting paid ad, ride the “earned” lift and then introduceowned assets into the conversation.Get Your Social Game On!It’s getting harder and harder to use scarce advertising dollarseffectively as media channels proliferate and audiences gravitate tosocial media outlets and activity. By capturing the potential of social lift,you can create ripple effects that add many times the value of youradvertising spending, for not a dollar more. That’s something JohnWanamaker would surely applaud. By capturing the potential of social lift, you can create ripple effects that add manyEmail: info@networkedinsights.com times the value of yourContact usPhone: 608.237.1867 advertising spending, forwww.networkedinsights.com not a dollar more. Email: info@networkedinsights.com Phone: 608.237.1867 www.networkedinsights.com © 2011, Networked Insights, Inc. 5