!!!!!!!!!!!!!!! Social Marketing Analytics !!!! A New Framework for Measuring Results in! Social Media!!!! April 22, 2010!!!!!!!!!!!!! By Jeremiah Owyang ! By John Lovett Partner Senior Partner Altimeter Group Web Analytics Demystified ! ! With Eric T. Peterson, Charlene Li, and Christine Tran Includes input from 39 ecosystem contributors!
DisclosuresYour trust is important to us, and as such, we believe in being open and transparent about ourfinancial relationships. With their permission, we publish a list of our client base on ourwebsite. At the time of this report’s publication, some of the technology providers weinterviewed are Altimeter Group clients. See our website to learn more:http://www.altimetergroup.com/disclosure.Ecosystem InputThis report could not have been produced without the generous input from some of the leadingmarket influencers and the following solution vendors who have a vested interest in seeingsuccess in Social Marketing Analytics. Please keep in mind; input into this document does notrepresent a complete endorsement of the report by the individuals or vendors listed below.Influencer InputLisa Barone Alex MannConnie Benson Louis MarascioDavid Berkowitz John McCoryBlake Cahill Aaron NeumannAdam Coomes Katie Delahaye PaineMonica Cordina Sean PowerBill Gassman Chris RamseyJascha Kaykas-Wolff Boaz RonkinRob Key Shiv SinghJustin Kistner R “Ray” WangScott Lake Alan WebberMatt Langie Jennifer ZeszutVendor InputAlterian SM2 StatsITBiz360 SWIXCymfony TrackurLithium TrendrrOmniture LugIronRadian6 Visible TechnologiesScout Labs WebtrendsSocial Radar
Executive SummaryBusiness Must Adopt A Measurement Framework For Success.The rapid evolution of the web and digital media over the past decade illustrates that weoperate in an environment that is constantly in flux. Technologies emerge, communicationchannels open and consumer behaviors adapt. These changes are apparent in the ways inwhich consumers interact with marketers and their brands as well as the ways in whichconsumers empower one another. Yet, as consumer connections, networks and relationshipsspider to the edges of the globe, marketers take their messages to social media channels withreckless abandon.Organizations that view social marketing as experimental forays jeopardize the relationshipsthey have with their customers because consumers do not regard their actions as frivolousendeavors. They’re making decisions based on the new information they learn from theirnetworks and using that knowledge to take actions and influence others. These actions leaveindelible impressions upon brands and the consumers that interact with them.In an effort to help clients better understand the value of these emerging channels on theirbusiness, Web Analytics Demystified and Altimeter Group interviewed dozens of companieswho are active participants in social media. Through our research we found that: ! Many companies are stumbling blindly into social media marketing, largely without measurement in place. ! A pragmatic approach using metrics derived from sound business objectives minimizes confusion about the value of various social efforts. ! Existing social marketing measures and metrics fail to deliver actionable insights and offer little more than digital trivia. ! Technologies exist to facilitate data collection in diverse social media, but there are no silver bullets.To Reduce Risk, Companies Must Standardize Frameworks.While numerous social media measurement technologies exist, no single tool can adequatelymeasure and provide insights for all social marketing activity. As tools evolve, organizationsmust persevere by aggregating measures and evaluating results in the context of a SocialMarketing Analytics framework.This document presents Web Analytics Demystified and Altimeter Group’s recommendationsfor measuring social media. Our hope is that by setting reasonable and realistic expectations,our clients and companies around the world can begin to make better, more objectivedecisions regarding their own investment in these emerging channels.
Existing Vendors Have Several StrengthsDespite the variation and confusion from too many vendors, we did find areas of strength. Thestrongest area for the leading social media monitoring vendors is in their ability to captureconversations, sentiment and brand mentions across a broad scope of Internet activity. Thesecapabilities help organizations “learn” and serve a very necessary component of social mediameasurement. Some solutions require users to point the tools at a finite set of keywords andessentially know what you’re looking for to learn. While others capture a much wider range ofsocial interactions and aid in the discovery process as well. Many commercial tools availabletoday also offer the ability to track trends within conversations and reveal many interestingfacts about social media activity across a broad spectrum of the web.Marketers Need A Framework To Measure AgainstAmong almost all of the tools we evaluated, the ability to define custom metrics or perform trueanalytical analysis on the data was lacking. For organizations that develop complex KPIs orrequire the ability to segment and analyze data at a granular level, these limitations may provefrustrating because the tools simply cannot deliver. Yet, much in the same way thatorganizations cannot allow the specific social media channels to influence their strategy,similarly measurement tactics should not be defined by the capabilities of the tools. The goodnews is that social media monitoring tools are improving every day. As this nascent field ofsocial marketing grows, so too do the vendor’s abilities to capture and harness the insightsfrom data generated through social activity.