The State of Social Media and Social Media Marketing in 2012

THE STATE OF SOCIAL MEDIA &SOCIAL MEDIA MARKETING IN 2012 ESTEBAN CONTRERAS www.estebancontreras.com

Social Networks are the Most Popular Activity Online 1 in 5 online minutes spent on SN, Up from 6% in 2007Source: comScore Media Matrix, Worldwide, March 2007 – October 2011, “It’s a Social World,” Dec 21 2011 EC

The Social Media Universe is Expanding 800 MM+ monthly active users 15MM+ users 800MM+ monthly users visit site 15MM+ users 232MM+ monthly active users 6MM+ users 230MM+ users 2MM+ users 135MM+ users 2MM+ users 115MM+ subscribers 2MM+ users 62MM+ users 1.5MM+ users 51MM+ users 500K+ users 20MM+ blogs 100K+ users More people on more social networks than ever beforeSource: Official and Estimated statistics. Facebook, YouTube, Zynga, Twitter, LinkedIn, Groupon, Flickr, Tumblr, Instagram, Foursquare, Pinterest, scvngr, Path, Google+ SlashGear, TechCrunch / Comscore, FastCompany, Oink: TechCrunch, GetGlue, Foodspotting: Soraya Darabi’s LinkedIn EC

Facebook, LinkedIn, Twitter and Tumblr at All-Time Highs Former social king MySpace seems to be fading awaySource:Nielsen, State of the Media: The Social Media Report Q3 2011, Home and Work (May 2011)Source: comScore Media Metrix, U.S., Jun 2007 – May 2011 EC

Google Still Gets The Most Unique Visitors in the U.S. Facebook and YouTube are in the Top 5Source: Nielsen “Tops of 2011: Digital” EC

Americans Spend More Time on Facebook Than Any Other Website Facebook has been #1 in time spent since 2010Source: Citi Investment, Research and Analysis (September 2011)Source: Comscore, February 2011, Nielsen, State of the Media: The Social Media Report Q3 2011 EC

Facebook was the #1 Search Term in the U.S. in 2011 For the 3rd Year in a RowSource: Experian Hitwise, Facebook was the top search term for 2011, based on searches on Bing, Yahoo and Google EC

Facebook’s Mission: Make the World More Open and Connected In other words… Engagement EC

Facebook is Shifting Towards “Frictionless” Passive Sharing Seamless sharing could mean even more engagement EC

Asian, Black and Hispanic Populations Lead in Usage in the U.S. All populations are becoming increasingly socialSource: eMarketer, Nov 2011. EC

No Surprise: 18-to-34 Year Olds Are Very “Social” Percent of online adults using social media monthly, by age But 55+ users are quickly catching upSource: Experian, The 2011 Social Media Consumer Trend and Benchmark Report EC

Social Networks Are a Popular Venue For Casual Games 61.9 million Americans play social games every monthSource: PopCap Games, “2011 PopCap Games Social Gaming Research” Information Solutions GroupSource: Kabam, “Social Gamer Research Study” conducted by ISG, Sep 22 2011Source: Quick Stat: US Social Gaming Revenues to Pass $1 Billion This Year, June 28 2011; eMarketer July 2011 EC

From LinkedIn to Zynga, Social IPOs are On The Rise Facebook is expected to go public in 2012Source: WSJ Market Data Group EC

Facebook and Google Continue to be Exit Strategy for Social Startups 2004 2005 2006 2007 2008 2009 2010 2011Source:Wikipedia EC

Social Networks Now Reach 82% of the World’s Internet Population That’s 1.2 billion peopleSource: comScore Media Matrix, Worldwide, March 2007 – October 2011, “It’s a Social World,” Dec 21 2011 EC

Social Networking is Growing in Every Singly Country Total time spent on all regions grew by 35%+ in 2011Source: comScore Media Matrix, Worldwide, March 2007 – October 2011, “It’s a Social World,” Dec 21 2011 EC

Chinese Social Sites are Fighting for China’s Social Graph Sina employees refer to Weibo as “FaceTwitter”Source: Tencent Q3 2011 Financial Report, Sina Weibo Q3 2011 Financial Report EC

Forrester CEO: Social Media Saturation, “Bubble for Social Startups” Some say there’s a bubble for social startupsSource: LeWeb, CNET Dec 8 2011 EC

Social Networks in General May be Saturated But social media is now an integral part of our livesSource: eMarketer Feb 2011, U.S. Social Networking Usage: 2011 Demographic and Behavioral Trends EC

“Staying in Touch” is a Major Factor in Social Networking Social networks allow us to stay connected to friendsSource: Pew Research Center’s Internet & American Life Project, April 26 – May 22, 2011 Spring Tracking Survey, Based on adults who use SNS EC

The Idea of “Friends” is Changing Percent of all online adults who use social media to communicate with… Our “Social Graphs” are expandingSource: Experian, The 2011 Social Media Consumer Trend and Benchmark Report EC

The “Interest Graph” is Shifting Attention Away from Classic “Friends” There is a battle to map peoples’ shared passionsSource: AssetMap Blog, “Why the interest graph will reshape social networks” EC

Google is Creating a Social Layer with Google+ Google+ is an attempt to map the “Interest Graph”Source: Google News EC

Google+ is Growing Faster Than Other Social Networks Time to reach 50 million users (estimate) 67 million people have visited Google+Source: ComscoreSource: Leon Haland, Google+ calculations by Paul Allen, comScore, MySpace, Twitter, Facebook, LinkedIn EC

Pinterest Also Focuses on Shared Passions Visits to Pinterest grew 40-fold in only 6 monthsSource: Hitwise, Pinteresting Trend in Social Media EC

People are Influenced by Friends / Family / Contacts People don’t trust brands as muchSource: Vision Critical, “Online Social Networks: Trust Not Included” Sep 15, 2010 EC

Active Social Media Users are Influential Online They also tend to be influential offlineSource: Nielsen, State of the Media: The Social Media Report Q3 2011 EC

Influence is Shifting from Media to Individuals Startups are rushing to measure and rank influencersSource: Eloqua & JESS3, The Message is the Messenger, March 8 2011Source: Forrester 2010Source: AdWeek, A Million Little Klouts, Dec 14 2001 EC

Messages Have Potential to Reach Many People Within a Network Influential people can spread messages faster than ever EC

Today’s Mega Celebrities Engage Directly with Fans Some became influential by spreading content onlineSource: “Dissecting Justin Bieber” infographic by Crisp Social, Mashable Nov 6 EC

Internet Privacy is an Increasingly Hot Topic Internet users contradict themselves about privacySource: Crowd Science, “JustAsk! Advertising Attitudes & Behaviors Study,” Sep 29, 2011; eMarketer 2011 EC

Internet Users Appreciate Transparency They just want to know what data is being collectedSource: Aimia, “Born This Way: The US Millenial Loyalty Survey” conducted by Harris Interactive, Oct 5, 2011 EC

Ultimately, Internet Users Want to Be Responsible for Their Own Privacy Not many want government to be responsibleSource: Harris Interactive, “Behavioral Advertising and Privacy: What Consumers Think They Know & What Advertisers Need to Do About it”, by TRUSTe July 25, 2011 EC

Social Media Conversations Reveal What People Truly Care About 2011 If it’s important, it’s being talked about onlineSource: Facebook, Twitter EC

Technology Adoption is Accelerating Along with consumer’s expectationsSource: eMarketer 2011 EC

Americans are Becoming Seamlessly Connected Multi-taskers • 40% of tablet and Smartphone owners use them daily while watching TV • People do a variety of tasks when watching TV • 60% checking email • 42% visit social networks • 44% check sports scores • Americans ages 8 to 18 consumer 8.5 hours of media per day due to multitasking. • 25-33% of Americans use more than one input “most of the time” while watching TV, listening to music, or reading. We live in an age of continuous partial attentionSource: Nielsen October 2011, Pew Internet and American Life Project, Kaiser Family Foundation 2005 Survey, Harvard Business Review 2007Source: Room 214 and Crimson Hexagon, “Digital Shifts: How New Media is Changing TV,” March 2 2011 EC

Mobile Social Media Use is On the Rise On-the-go social media is becoming essentialSource: Nielsen, State of the Media: The Social Media Report Q3 2011 EC

Mobile Social Media Use Will Continue to Rise The 3rd screen is becoming the 1st screenSource: eMarketer, 2010, Mobile phone users who have a profile and access social networks from mobile phones EC

Gartner’s Hype Cycle Evaluates the Maturity of 1,900 Technologies Social Activity Analytics Streams Group Buying Virtual Worlds Gamification Location- Aware Apps Internet of Things Social TV Social technologies are maturingSource: Gartner, “Hype Cycle for Emerging Technologies” 2011 EC

The Traditional Shopping Process is… Linear, predictable, analog, brand-controlledSource: The OPEN Brand: Digital Trends for 2011 by Resource Interactive EC

The New Purchase Journey is… Non-Linear, multi-channel, digital, consumer-controlledSource : The OPEN Brand: Digital Trends for 2011 by Resource Interactive EC

We Have Entered The Age of the Customer “In (the age of the customer), companies that thrive, like Best Buy, IBM, and Amazon, are those that tilt their budgets toward customer knowledge and relationships.” - Josh Bernoff, Forrester Research Empowered buyers have on-demand expectationsSource: Forrester, Josh Bernoff, Report: Competitive Strategy In The Age Of The Customer, June 2011 EC

Consumers Have More Power Than Ever Before Old strategies must be revisitedSource: Forrester, Josh Bernoff, Report: Competitive Strategy In The Age Of The Customer, June 2011 EC

Social Media Impacts Businesses Financial Risk Mitigation & New Markets Companies are trying to understand its valueSource: Forrester research, The ROI of Social Media Marketing, Augie Ray EC

Companies Recognize Various Benefits from Social Media Brand building is #1 perceived benefitSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

CEOs are Joining Social Media Some actually engage directly with consumers EC

Social Media is Becoming a CEO-level agenda Social media is no longer a “fad”Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Today’s CMOs Must Understand the Digital Landscape and Consumer Finding a balance between paid, owned and earnedSource: Forrester Research, “Owned Media” EC

CMOs Worldwide Plan to Increase the Use of Social Media Percent of CMOs reporting under-preparedness to manage market factors CMOs at most companies feel unpreparedSource: IBM, “From Stretched to Strengthened: Insights from the Global Chief Marketing Officer Study,” Oct 11, 2011; eMarketer EC

4 out of 5 American Companies Used Social Media Tools in 2011 Most with social programs have 1-3 years of experienceSource: Altimeter, Social Readiness: How Advanced Companies PrepareSource: Grant Thornton, “International Business Report” as cited in press release Nov 16, 2011.; eMarketer.Source: eMarketer: Key Digital Trends for 2011, Nov 2, 2010 EC

Some Industries Have Not Yet Adopted Social Media Some companies never willSource: SAS and Harvard Business Review, “The New Conversation: Taking Social Media From Talk to Action” Oct 27,2010 EC

Businesses are Divided on Who Should Manage “Social” Only 6% had a dedicated social media group in 2010Source: Altimeter, “Career Path of the Corporate Social Strategist,” Nov 10, 2010 EC

Marketing, PR and Customer Service are Taking the Lead Teams must collaborate to integrate across entire orgSource: Econsultancy, “Social Media and Only PR Report 2010” sponsored by bigmouthmedia, provided to eMarketer Sep 29, 2010 EC

Social Media Listening is Widely Accepted as Important Some companies have dedicated listening centersSource: MarketTools, “Social Media and Customer Feedback,” Oct 25, 2011Source: TEKGROUP International, “2010 Social Media News Survey,” in conjunction with Ken Payne of Western Kentucky University June 16, 2010 EC

Social Media Crises Are On the Rise Social Media Crises Can Occur in Any Industry Causes of 50 Social Media Crises 2011-2011 Poor experiences are #1 cause for crisesSource: Twitter; Altimeter, 50 social media crises occurring between Jan 2011 and August 2011 EC

Social Networks Are Becoming Trusted Advisors for Brands Brands are striking deals with social networksSource: Wall Street Journal, June 30, 2011; Twitter EC

Experienced Companies Are Integrating Social Media Advanced companies see integration as a prioritySource: SmartBrief Inc., “The State of Social Media for Business” conducted by Summus, Limited, Nov 3, 2010 EC

Companies Are Executing Multiple Social Tactics Branded social pages are a common marketing tacticSource: Adobe, “2011 Survey: Digital Marketing in the Next Decade,” April 28, 2011 EC

Daily Group Deals Are Now Mainstream But “Social Shopping” is not yet a realitySource: BIA/Kelsey as cited in press release, March 3, 2011Source: Eversave, “Holiday Online Shopping and Daily Deals Websites,” provided to eMarketer ,Nov 11, 2010Source: JiWire, “Mobile Audience Insights Report: Q1 2011,” May 24, 2011Source: eMarketer, May 2011 EC

Corporate Websites are Enabling Social Sign-On Curation is gaining attentionSource: HiveFire, “Content Curation Adoption Survey 2011,” March 30, 2011Source: Gigya, “The Value of Social Sign-on and the Registered User” conducted by Edge Research, Sep 15, 2010Source: Janrain as cited in company blog, Aug 16, 2010 EC

Marketers Recognize the Importance of Facebook Social media is becoming “critical”Source: eMarketer: Key Digital Trends for 2011, Hubspot, “The 2011 State of Inbound Marketing” March 2, 2011 EC

Marketers See Facebook As Most Effective Social Media Site Consumers prefer Fb marketing vs other social venuesSource: eMarketer; Brandon Hall Group and Covario, “How Does Integration of Social Media Marketing (SMM) Enhance…” May 19,2011Source: Edison Research and Arbitron, “The Social Habit II: The Edison Research/Arbitron Internet and Multimedia Study 2011,” May 28, 2911 EC

Consumers “Like” All Kinds of Companies Favorites include entertainment & foodSource: ROI Research Inc., “S-Net: The Impact of Social Media” sponsored by Perfomics, June 7, 2011; eMarketer EC

There is Debate Over the Value of a “Fan” Cost Per Acquisition on Facebook The Value of a Fan (Various Studies) • $9.56: (money saved in triggering a fan into a purchase or other action assuming a constant acquisition cost of $1-per- click, compared to the cost for a non-fan; calculated by SocialCode). • 2 cents: (offer for 500 new fans for $10.51; eBay). • 57 cents: (offer for 1000 new fans for $57 by this fan- creating agency). • $1.07: (the cost of advertising on Facebook that encourages a user to become a “fan”; Webtrends). • $3.60: (as a media buy to reach 1 million fans; Vitrue). • $71.84: (extra amount fans spend vs. non-fans; Syncapse) • $136.38: (average annualized value of total fan purchases; Syncapse). • 20 extra visits to your web site: (vs. one visit from a non- fan; Hitwise). Some studies estimate $10 while others say $0.02Source: How Much is a FAcebook Fan Worth? $10. Or Possibly 2 cents. Business InsiderSource: Why Brands Still Need Facebook “Fans”, AdAge Digital EC

Brands Have Accumulated Many Fans / Likes Over the Years They are starting to focus more on “Engagement”Source: SocialBakers.comSource: SocialBakers.com, What Facebook brand pages have the best “People Talking About” number? EC

Customers Want Deals and Offers on Facebook They also want news, product info and conversationsSource: PowerReviews and the e-tailing group, “2011 Social Shopping Study, Brief N: Consumer Research Dynamics, Facebook and CommunitiesSource: Millward Brown & Dynamic Logic, “The Value of a Fan” prepared for the World Federation of Advertisers (WFA), March 22, 2011 EC

Awareness of Location-Based Services and Offers Has Surged Usage far from mainstream, several startups exitedSource: Pew Internet & American Life Project, “28% of American Adult Mobile and Social Location-Based Services,” Sep 6 2011; eMarketerSource: Hipcricket, “2011 Mobile Marketing Survey Research Brief, Oct 20, 2011; eMarketer EC

Over 60% of the Top 100 Brands Have a Google+ Page Most Followed Google+ Pages Top 10 Brands: “Share” of Circlers Google+ pages launched on Nov 7, 2011Source: SimplyMeasured “Google+ Brand Page Adoption and Engagement Trends,” eMarketer Nov 16 2011Source: ZoomSphere Google+ Page Statistics EC

Brands Continue to Strive for “Viral” Videos Better reach is a key factorSource: Association of National Advertisers (ANA) as cited in press release, Oct 10, 2011Source: DIGIDAY and YuMe, “State of the Industry on Digital Video,” April 12, 2011Source: Nielsen “Tops of 2011: Digital” EC

There is Great Demand for Skilled Social Media Marketers Which of the following digital marketing skill sets, if any, will you look to acquire in 2011? (select all that apply) 50% of agencies looking to acquire social skill setsSource: Sodaspeaks, Society of Digital Agencies (SoDA) 2011 Digital Marketing Outlook EC

35% of Companies Have a Company-Wide Head of Social Media 65% do not have a head of social mediaSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Most Companies have “Hub and Spoke” or “Centralized” Organizations Few companies consider themselves a “holistic” orgSource: Altimeter, Social Readiness: How Advanced Companies Prepare EC

Social Teams Made Up of Communications and Marketing Professionals Average size of corporate social media team: 11Source: Altimeter, Social Readiness: How Advanced Companies Prepare EC

Three Primary Roles Make Up a Social Media Team Creative talent is becoming a prioritySource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Companies Have a Range of Capabilities Already In Place 50% plan to have all these capabilities in next 2 yearsSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Large Companies Have Many Social Accounts All Over the World Average # of social media corporate accounts: 178Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Social Media Teams Have Limited Budgets Budgets for 2011 Avg Annual Social Business Budget Per Corporation by Company Revenue Companies still see social media as an experimentSource: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Maturity Drives Average Budget, Team Size and Organization Maturity Levels (Self-Assessed) Advanced teams have 20x the budget of novice teamsSource: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), Maturity Levels; 140 respondents, all over 1000 employees EC

Hiring Full-Time Employees is a Priority Other priorities: Services, content and media buysSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Significant Staff, Ad Spend, and Community Management Increases in 2011 Technology spending also rose substantiallySource: Survey of Corporate Social Strategists, Altimeter Group, November 2010 EC

Budgets Are Increasing Year-Over-Year Staff, social ads and community platforms are prioritiesSource: eConsultancy, “Social Media and Online PR Report 2010” sponsored by bigmouthmediaSource: Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Social Media is Shifting Dollars from Digital Spend Shifts within digital include display and search adsSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Social Media Spend Will Increase As a Percentage of Digital Spend Social media will begin to take up a meaningful shareSource: eMarketer Jan 2011, eMarketer Sep 2011; Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011Source: Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011 EC

Internet Ad Spending is Closing the Gap on TV Ad Spending People better recall cross-platform adsSource: Nielsen October 2011, Pew Internet and American Life Project, Kaiser Family Foundation 2005 Survey, Harvard Business Review 2007 Nielsen; Google Cross-Platform Ad Effectiveness Study, 2011 EC

Consumer Behavior Drives Changing Investment What is the primary reason that your marketing investments are changing? (select all that apply) Competitive forces are also a key factorSource: Sodaspeaks, Society of Digital Agencies (SoDA) 2011 Digital Marketing Outlook EC

US Marketers Will Spend $3B+ in Social Media Ads in 2011 2012 global social ad spending will rise by 45% to $8BSource: eMarketer Jan 2011Source: Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011Source: eMarketer Sep 2011 EC

Ad Spending on Facebook is Increasing at a Decreasing Rate Facebook will generate $5.78B in ad revenue in 2012Source: nanigans, Affinity Arbitron, eMarketer, Facebook, Internet World Stats, Nielsen, Newspaper Association of America (Oct 2011); Silicon Alley InsiderSource: eMarketer Sep 2011. Note: Paid advertising only, excludes spending by marketers that goes toward developing or maintaining a Facebook presence EC

Ad Spending on Twitter is Increasing at a Decreasing Rate Twitter will generate $259.9M in ad revenue in 2012Source: eMarketer, Sep 2011. Note: Paid advertising only; excludes spending by marketers that goes toward developing or maintaining a Twitter presence. EC

Budgets Are Rising But ROI is Still Difficult to Measure 47% Not able to measure value gained from investmentSource: Econsultancy, “Social Media and Online PR Report 2010” sponsored by bigmouthmedia; Note: n=347; eMarketerSource: MarketingSherpa, “2011 Social Marketing Benchmark Report, Nov 15, 2011; eMarketer EC

Engagement Metrics Are Most Common Methods of Measurement Other methods include sentiment, traffic and SOVSource: Chief Marketer, “2011 Social Marketing Survery,” Oct 1, 2011Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Soft Metrics Trump Harder Factors to Determine Social Media Success “Ability to adapt & react quickly” seen as essentialSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results EC

Top Companies are Developing KPIs & Dashboards, Seeking More Insights Few are building revenue-generating platformsSource: Booz & Company and Buddy Media, “Campaigns to Capabilities: Social Media & Marketing,” Oct 4, 2011 EC

Social Strategists’ 2011 Internal Goals led by ROI Measurement Other internal goals: Education and organizationSource: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Social Strategists’ 2011 External Goals led by Website Integration Social corporate websites will be a big topic in 2012Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Thank YouContact Me:www.estebancontreras.comhttp://gplus.to/estebancontreraswww.facebook.com/estebancontreraswww.twitter.com/socialnerdia

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The State of Social Media and Social Media Marketing in 2012

by Esteban Contreras

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The State of Social Media and Social Media Marketing in 2012 Presentation Transcript