Social Media Marketing: India Trends Study 2013

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Social Media Marketing:
India Trends Study 2013

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  • 1. Social Media MarketingIndia Trends Study 2013Insights from social media-savvy organizations in India
  • 2. ForewordAccording to media reports, Indian organizations usesocial media much more than the global average andthose of their counterparts in emerging economies.While we have a number of case studies, awards andonline tools to gather insights, we wanted to explorehow social media-savvy organizations in India are usingthe medium. We wanted to understand social mediaobjectives, tactics, departments that manage socialmedia, how do organizations use social media ads,social media measurement, budget, and the agencyenvironment among others.With this objective in mind, in the last quarter of 2012and early 2013, we reached out to various organizationsin India. We received a total of 48 participations fromprofessionals who are responsible for managing thedigital outreaches of their respective organizations orbrands.As we expected, the study has thrown up some goodinsights. This study represents the views of severalorganizations in India that have comparatively investedmore in terms of money, resources, or initiatives thantheir counterparts, and we think it will help in creatingstandards across the industry and in promoting themedium among many more organizations in the countrythat want to scale up on using the medium.We have added our perspectives and secondary researchto augment the findings and provide depth and context.We would like to thank all our participants and industryexperts who have shared their input generously.Dinesh MishraCustomer Practice Leader (India)Ernst & Young LLP
  • 3. Participatingorganizations/brandsBajaj Finserv LendingBharti Airtel Ltd.BMW India Pvt. Ltd.Café Coffee DayCiti IndiaCleartrip Pvt. Ltd.CocoberryFlipkart.comFord India Pvt. Ltd.Hasbro ClothingHarley-Davidson IndiaHonda Cars India Ltd.Lifestyle International (P) Ltd.Maruti Suzuki India Ltd.Microsoft Corporation India Pvt. Ltd.MTV IndiaNetwork18Pepsi IndiaPanasonic IndiaPlan IndiaP&G IndiaRajasthan RoyalsRoyal Challengers BangaloreSAP India Pvt. Ltd.Shoppers Stop Ltd.Tata Motors Ltd.WildcraftVadilal Industries LtdViacom18 Media Pvt. Ltd.Yatra.comAs part of the study, we asked ourparticipants a set of 40 questionsregarding the use of social media intheir organizations. Input was collectedonline, on email, or through telephonicinterviews. Responses to each questionhave been quantified and reflected inthe charts that appear in this report.We also reached out to various industryexperts and bloggers to provide theirperspective on various topics aroundtheir specialty areas, which is alsobeing covered in this study. Theirinputs are meant to provide depthto the report, and not to be seen asendorsements to survey findings.The methodology4 | Social Media Marketing – India Trends Study 2013And 18 other organisations
  • 4. ContentKey findings1. Why social media?2. Which social media platform?3. How does social media fit in with other types of campaigns4. Engaging social communities popular practices5. Use social media ads6. Success measurement7. Social media budget8. Department managing social media9. Agency structure10. Future of social media in organizationsSocial Media Marketing – India Trends Study 2013 | 5
  • 5. 6 | Social Media Marketing – India Trends Study 2013How do organizations engage with theirsocial communities4. Popular practicesa. Type of content: A majority of social media savvy organizationsprefer to post generic updates instead of brand updates.b. Frequency of updates and responses: Social media-savvyorganizations posts multiple updates a day. Majority of socialmedia-savvy organizations respond to fan queries within 30 to60 minutes on Twitter and within 30 minutes to a few hours onFacebook.c. Contests/promotions: Picture contests are the most popularcontests among social media-savvy organizations in India —most contests are organized monthly.d. Policies: Majority of social media-savvy organizations in Indiasurveyed have social media guidelines for better governanceand online monitoring programs to listen to conversations;however, less than half have crisis manuals.e. Tools used: Many social media-savvy organizations in Indiause tools for online monitoring, response management, ormanaging social media platforms.f. Social media for research: Almost half of the social media-savvyorganizations in India have conducted research using socialmedia tools to get customer feedback and understand moreabout customer behavior.g. Mobile: Half of the social media-savvy organizations in Indiahave created mobile phone apps and one-fourth plans tocreate one.Key findingsWhy social media1. Most social media-savvy organizations inIndia use the medium to build communities95.7% of the surveyed social media-savvy organizations in Indiause the medium to build communities and advocate usage while76.1% use social media as a platform to highlight brand news.Around 16% of organizations, which use social media for both theabove reasons also use it for customer service, lead generation,and research indicating high social maturity and moving towardgetting business meanings out of engagements.Which social media platform2. Facebook most important platform formarketers in India for engaging customers,followed by Twitter, YouTube and bloggingAlmost half of the social media-savvy organizations are alreadyusing emerging platforms such as Pinterest, Google Plus,and Foursquare. More than half of the social media-savvyorganizations surveyed regularly engage with bloggers or onlineinfluencers who have authority and strong following.How does social media fit in with othermarketing/communications campaigns3. Social media-savvy organizations in Indiahave conducted campaigns where social mediais the leading componentSocial media-savvy organizations in India speed up processesor show special favor for online fansAmong the leading 87.5% said they have conducted campaignswhere social media was the leading component. More than half ofthe surveyed organizations have speeded up processes or haveshown a special favour for their online fans and followers thatthey wouldn’t normally do for their offline customers.Social Media Marketing – India Trends Study 2013 provides answers tosome pertinent questions around social media marketing among socialmedia-savvy organizations in India:
  • 6. Social Media Marketing – India Trends Study 2013 | 7Which department manages social media8. Majority of social media efforts in India aremanaged by marketing teams76.7% of social media-savvy organizations said they have theirmarketing department handling social media with the rest beinghandled by a cross functional team/across functions or by the PR/communications team. Other than marketing, 34.6% said theyuse social media for thought leadership and 26.9% said they usesocial media for CSR. A majority (70.2%) said they have an inhouse social media expert in middle management.Agency structure9. Majority of social media-savvy organizationsin India use standalone digital agencies ascompared to PR or ad agencies73.8% of surveyed social media-savvy organizations have chosenstandalone digital agencies as compared to PR, ad agencies,or freelancers. 59.1% of the organizations surveyed also saidthat they are happy with their current agencies while 40.9%responded with either a ”maybe” or a ”no.”Future of social media10. Social media-savvy organizations in Indiaare very optimistic about the futureSocial media-savvy organizations are very optimistic about therole of social media in their organizations. Though measures suchas sales and leads are not very evident for all organizations, theyhave realized that it plays an important role in generating insightsand engaging with customers on a continued basis. Social mediahas helped organizations to create their own communities offans, customers or prospects. In the future, organizations hopeto focus more on social media and are looking forward greateradoption within their organizations.How do organizations use social media ads5. Majority of social media-savvy organizationsuse social media ads to promote onlinecampaigns and brand awarenesss, and findthem beneficial83% of the social media-savvy organizations surveyed said thatthey have used social media ads, with majority of the ads beingused to promote a contest/promotion or for brand awareness.88.6% said they find social media ads to be beneficial in achievingthose objectives.How do you measure social media success?6. Majority of social media-savvy organizationsin India measure social media efforts throughplatform-specific parameters81% of the social media-savvy organizations surveyed said thatthey measure their social media efforts through platform-specificparameters such as likes, people talking about this, etc. 46.7%of the organizations surveyed said they have not measuredrevenue from their social media efforts. On the positive side,some organizations are already measuring social media effortsthrough leads, sentiment, brand visibility and have seen increasein revenue from social media efforts.Social media budget7. Almost half of social media-savvyorganizations spend 1%–5% of their marketingbudget on social media, most social mediabudgets are below INR10 million crore41.5% of social media-savvy organizations said that around1%–5% of their marketing budget in spent on social media. Three-fourths of the organizations surveyed have their social mediabudget below INR10 million, while a little above a quarter of theorganizations surveyed have social media budgets exceedingINR20 million.
  • 7. 8 | Social Media Marketing – India Trends Study 2013Most social media-savvyorganizations in India use themedium to build communitiesWay back in 2010, a Harvard Business Review study found in itssurvey that the biggest benefit businesses think they derive fromusing social media was increased awareness of their brands orproducts.1While this continues to be a key reason for social mediaadoption even today, the top-most reason why organizationsare using social media has shifted to building communities. Anoverwhelming 95.7% of social media-savvy organizations in Indiathat we surveyed said they use the medium to build communitiesand advocates to directly or indirectly help in creating positiveword of mouth.It is interesting to note that till two years back, organizations puta one-way metric such as awareness as the top reason for socialmedia usage. Today’s shift is likely to be in part due to the almostoverwhelming Facebook phenomenon, nevertheless when thepower of social networks is realized by service providers, theconsumers stand to benefit the most.95.7%43.5%58.7%76.1%41.3%0% 20% 40% 60% 80% 100%Buildcommunity/advocatesGenerateleadsCustomerservicePlatform tohighlight branddevelopment/newsResearchWhat is the objective of your social media engagement?Tick all that is relevant.1. Why social media
  • 8. Social Media Marketing – India Trends Study 2013 | 9Around 16% of the surveyed organizations said they use socialmedia not just for one reason but to build community, generateleads, customer service, highlight news and research. Thisindicates that some social media-savvy organizations in Indiaseemed to be moving toward utilizing the medium much morethan connecting with customers and prospects but leveragingbusiness meanings out of those engagements.In this context, it is important to remember that whileorganizations find social media a good platform to interact withcustomers and build communities, for most consumers, socialmedia is about connecting with friends and families, accessingnews, reviews and entertainment, as well as sharing opinion andnot so much about interacting with brands.2Organizations needto ask themselves about the value they are providing to their fansand followers on their channels or communities.A key fact to remember is that building communities is not theend goal. A community provides a platform for brands to reachout to a number of potential customers at one go for marketingor promotional initiatives. It helps customers bond, bolster thebrand experience stories, and create stronger word of mouth.In the long run, it helps in creating increased customer loyalty,better and speedier resolution of customer queries, loweringof marketing and service costs, and flow of innovative ideas.As organizations’ use of social media grows, they should startlooking at identifying and measuring these benefits. Someorganizations from among those we reached out to are already onthe way to doing this. From among those organizations who saidthey use social media to build communities, half of them also useit to highlight news, 39.5% also use it for customer service, 31%for research, and 25% to generate leads.
  • 9. 10 | Social Media Marketing – India Trends Study 2013Facebook most important platformfor marketers in India, followed byTwitter, YouTube and bloggingBeing the most popular social media platform in India with more than62 million users,1Facebook is the favorite playground for social media-savvy organizations in India to banter in everyday conversationsand organize engaging promotions and contests for fans. 89.6% ofall surveyed organizations placed Facebook as the most importantplatform for engagement. Interestingly, there were more than 100Facebook campaigns in India in 2012, which translates to more than 8campaigns running simultaneously per month.2Which are the platforms you used for your social mediamarketing efforts?Eg. Facebook, Twitter, YouTube, blog, etc. Can you rank them? 1 beingthe most important/ priority area.89.6%4.2%0.0%6.3%0.0%0.0%8.3%56.3%29.2%2.1%2.1%0.0%2.1%22.9%39.6%22.9%10.1%4.3%2.1%0.0%0.0%2.1%6.3%19.1%23.4%0.0%2.1%0.0%2.1%14.9%6.4%0.0%8.3%4.2%29.2%44.7%68.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%FacebookTwitterYouTubeBlogPinterestFoursquare1 2 3 4 5 6 N/A2. Which social media platforms
  • 10. Social Media Marketing – India Trends Study 2013 | 11According to a story in The Economic Times, advertising agenciestoday have started to create YouTube specific ads as against re-purposing TV commercials.4One of the most successful companyproduced viral hit last year was a video from Finnair in which ateam of cabin crew performed a flash dance to celebrate India’sRepublic Day.5Blogging followed YouTube as the most important platformfor organizations. Blogging particularly is important whenorganizations want to share thought leadership or trends inan area of mass interest. For instance, a fashion blog, a movieblog or technology blog. Blogging is also popular among B2Borganizations for thought leadership purposes.While majority of the organizations have placed least importanceon emerging platforms such as Google Plus, Pinterest andFoursquare, many of them are already experimenting with theplatforms and many plans to start using them. Recently, PepeJeans India asked fans to follow its profile and repin apparels thatthey like for a chance to win them. In 2013, we will continue tosee more of this type of experiments.6Are you using any of the following emerging platforms?26.8% 26.5% 28.6%46.3%32.4%42.9%26.8%41.2%28.6%0%20%40%60%80%100%Pinterest Foursquare Google PlusNo plans Already using Will use in the next one yearWith social media marketing campaigns being Facebook heavy,some organizations are looking at other platforms to differentiatethemselves. More than half of the organizations surveyed placedTwitter as the second-most important channel. With a majority ofIndian sportspersons, movie actors, artists and politicians activeon Twitter and enjoying huge number of followers, the platformhas its own sphere of influence. A trending topic on Twitter fora good reason is perhaps one of the most coveted benchmarks.However, featuring there for the wrong reasons is a big crisis inthe making.Which are the platforms you used for your social mediamarketing efforts?Eg. Facebook, Twitter, YouTube, blog, etc. Can you rank them?1 being the most important/ priority area.1.132.433.003.504.735.070123456Facebook Twitter YouTube Blog Pinterest Foursquare(Average values)YouTube comes third in terms of preference among theorganizations surveyed. While creating a good video is muchmore difficult and resource intensive than creating a Facebookupdate or a tweet, its success is equally unpredictable.Nevertheless, brands are investing on the medium to make anequivalent to the next “Kolaveri Di” or ”Gangnam Style”.3
  • 11. 12 | Social Media Marketing – India Trends Study 2013While choosing which channels are important based on whereyour customers are, organizations should remember that beingsocial is not only about opening up a profile on a social mediasite. Social media adoption should be seen as a cultural andbehavioral shift within the organization to transparently engagewith customers who are not afraid to voice their opinions andare big influencers to their connected networks. Social mediaadoption should not mean a tactical short term means to promotethe organization or brand in the most popular websites of today.As technology is evolving at a fast pace, organizations require theability to constantly evolve and adopt platforms that consumersare shifting to. Popular websites of today will be overtaken by newwebsites tomorrow. Facebook overtook Orkut in the Indian marketin 2010. There are already few media stories today of Facebookusers finding the site to be not as “cool” as before.7Do you regularly engage with bloggers/influencers?47.9%14.6%37.5%0%10%20%30%40%50%Yes No SometimesYes No SometimesPrasant NaiduFounder of Lighthouse Insights, a popular blog on social media news.“Social media marketing for brands is all aboutFacebook and Twitter currently. Brands in Indiaare walking the safe path and they are hardlytrying out new networks. One of the reasonsbeing user adoption. Facebook being the biggestsocial network in India is the tried and tested one.Not only that the network has been around forsome time and has matured enough. Along withrunning contests brands have the option of tryingout well targeted ads today. Twitter, on the otherhand, is being used as a reach mechanism andthat is being achieved by getting certain hashtagstrended.Having said that, there are a few brands who havetried investing on different networks like Pinterest,Instagram, etc. Since the user adoption fromIndia on these networks has not been remarkable,brands are trying to integrate and drive trafficfrom the Facebook or Twitter community tonetworks like Pinterest and Instagram. I believeintegrating networks over social media is thefuture for Indian brands.”
  • 12. engage with them through product reviews, tours, or contests.Advanced organizations have involved bloggers in reputedprogrammes and have created prestigious blogger specificproperties. For example, the Microsoft Most Valuable ProfessionalAward that recognizes experts who share their passion andexpertise of a Microsoft product with others, has awarded manybloggers globally and in India.9Not only bloggers, organizations are regularly reaching out topopular social media users. Recently, popular YouTube users andTwitter users have featured in the TV commercials of a brand.Done right, blogger relations can help create a discussion aroundrelevant topics among influencers. Organizations are realizing theneed to respect blogger independence and adhere to guidelinessuch as the WOMMA Code of Ethics.10In the last few years, oftenengaging bloggers or online influencers in an inappropriatemanner or trying to control their independence have led tobacklashes.Indiblogger, an Indian blog directory, lists close to 30,000blogs on its site.8Many bloggers in India, like their counterpartsglobally, enjoy good readership and has significant authority.Some of the most popular blogging topics are technology,auto, food, travel, movies, parenting, and marketing. Bloggersnowadays are not limited to creating content on their blogs, buthave wide circles of friends and followers on Facebook, Twitter,etc. thereby becoming creators of influential content on theseplatforms too.47.9% of the social media-savvy organizations surveyed said theyregularly engaged with bloggers and other online influencers,while 37.5% said they engage with bloggers sometimes.Bloggers are not necessarily looking for organizations to contactthem. Most of them can be just passionate individuals who like toshare their views on their area of expertise or interest. However,as their influence grow and their views on brands and productsare seen far and wide online, organizations felt the need toAmit AgarwalPersonal technology columnist and founder of Digital Inspiration,a widely-read tech and how-to blog since 2004.“Blogs are mostly seen as credible sources ofinformation and consumers are increasinglyreferring to blogs while researching productsonline. Because their opinion matters, brands,big and small, now actively engage with bloggersacross domains at par with the mainstreammedia.That said, other than the tech category, there hasbeen a shift in the blogging landscape in India inrecent years. The first-generation bloggers haveeither quit the space or they have turned theirattention to microblogging and social media. Whatwould otherwise have been a 500-word opinionpiece now gets squeezed into 140 charactersbut it still enjoys a similar level of influence andreach.”
  • 13. 14 | Social Media Marketing – India Trends Study 2013Social media-savvy organizationsin India have planned campaignswhere social media is the leadingcomponentSocial media-savvy organizations in Indiaspeeds up processes or show special favor foronline fansSocial media-savvy organizations in India are already integratingsocial components into their traditional marketing andcommunications campaigns. 83% of the surveyed organizationssaid they include information about their social media campaignsin their print and TV advertising campaigns. Also, 87.5% of thesurveyed organizations have run campaigns using only socialmedia or where social media has been the leading component.Do you include information about your social mediacampaigns in your print/TV advertising campaigns?83.3%16.7%Yes No3. How does social media fit in withother types of campaigns
  • 14. Social Media Marketing – India Trends Study 2013 | 15Have you organised any exclusive deals/promotionsfor online fans online?Yes No Maybe we will organise in the future64.6%14.6%20.8%Have you speeded up processes, or shown a specialfavour to any of your online fans, followers that you wouldnormally not do for your customers who are not online?Yes No58.3%41.7%It is important to mention that while there is integration, thequality of integration is what matters the most. It is up toorganizations to decide social media’s level of involvement.Adding a link to social channels on TV or print ads can also becalled integration.Sometimes, social media is an after-thought and used as amedium to further spread the advertising message. To illustratethis, if an organization runs a TV advertising campaign on thecamera features of its latest mobile phone, a typical social mediasupport could be a contest on the Facebook fan page asking fansto upload their best pictures. However, this type of integration isshallow. Removing the social media component does not affectthe campaign at all, except for minimizing the online buzz.Smart social media marketing professionals in organizationslook at integrating social media as a part of the campaign DNA.The social media team participates in the ideation stage. Theengagement structure is woven with social being a part of thecampaign process and the social media component cannot beremoved.Have you run a campaign using only social media or hassocial media been the leading component in any campaign?Yes No87.5%12.5%
  • 15. 16 | Social Media Marketing – India Trends Study 2013As social media becomes a key component, the need to placateonline fans becomes a natural extension. Deals and exclusivepromotions only for online fans are increasingly being organized.64.6% of the surveyed organizations said they have organizedexclusive deals for online fans and 20.8% said they are likelyto organize in the future. More than half of the surveyedorganizations said they have speeded up processes or have showna special favor for their online fans and followers that they willnot normally do for their offline customers. As more customersrealize the benefits of going online rather than approaching atraditional customer service channel such as the phone, thedemand for more focus on customer service in the social mediaspace will grow.
  • 16. Social Media Marketing – India Trends Study 2013 | 17What is the percentage of topics related to your brandthat you post on your Facebook page vis-à-vis totallyunrelated topics?14.6%18.8%39.6%27.1%0% 10% 20% 30% 40%10-25%25% -50%50% -75%More than 75%Among the generic updates, topics related to the values of thebrand are preferred more than totally unrelated topics. 66.7% ofthe surveyed brands said that topics related to the brand valuesform more than half of the posts on their Facebook pages.This shows that while social media-savvy organizations are willingto post generic updates to fans, these generic updates are moreor less related to the values of the brands. Types of updates thatsocial media-savvy organizations find the most engaging includeinteresting pictures, videos, factoids, quiz, and industry news.Pictures are the most engaging type of content with one reportsaying that pictures represent 89% of a brand’s most engagingposts on Facebook.1Not surprisingly, the top-three most engaging Facebook postsin India in January 2013 are all pictures updates.2Two of theupdates were Republic Day wishes from Vodafone featuringtheir brand mascot “Zoozoos” and from Cadbury Celebrationsfeaturing a cake. The third one from Tata Docomo featured theirbrand ambassador, Ranbir Kapoor, from his latest film, Barfi.The first and second are generic updates related to the brand.The third one is a totally unrelated generic update, though thebrand (chocolate) and the item in picture (cake) are in the samecategory (food).More social media-savvyorganizations prefer to postgeneric updates instead of brandupdatesRather than using brand posts (e.g., brand news, productdescriptions, or updates promoting the brand directly), almosthalf of the organizations surveyed prefer posting generic updates.Generic updates are updates related to the values of the brand(e.g., a car manufacturer talking about driving safety, road tips)and totally unrelated updates (e.g., cricket match highlights,festival greetings, an unrelated news but of mass interest). 43.8%of the surveyed organizations said that brand posts form lessthan 30% of their overall content calendar while 35.4% said theyuse brand posts more than generic updates.While brand posts attract customers, loyalists and advocates —generic posts help in attracting a wide audience set and eventhose customers who might be using a competitor’s product. Forexample, a consumer products company posting generic tips andhow-to’s are likely to attract people who would want to come andbenefit from reading those tips.On your content calendar, what is the percentage ofyour brand posts vis-à-vis generic updates(topics related to your brand plus unrelated topics)?43.8%20.8%35.4%0%10%20%30%40%50%Less than 30% Around 50% More than 50%4.Engaging social communities -popular practices
  • 17. 18 | Social Media Marketing – India Trends Study 2013More than half of the social media-savvy organizations in India,who participated in the survey, post two to three updates on theirFacebook pages in a day. 25% of organizations surveyed said thatthey post one update per day on their Facebook pages.What is the frequency of updates you have on yourTwitter profile?17.8%1 post every1-2 days1 post a day 2-3 postsa dayMore than3 posts a day20.0%28.9%33.3%0%5%10%15%20%25%30%35%Social media-savvy organizationsposts multiple updates a dayWhile frequent updates can be a sign of being active, it can alsobe of inconvenience to your fans. There is always a strugglebetween quality and quantity. More posts do not always meanincreased engagement.What is the frequency of updates you have onyour Facebook page?2-3 posts a day 1 post a day1 post every 1-2 days More than 3 posts a day6.3%25.0%56.3%12.5%Sriram RaviHead Digital Marketing, Hasbro ClothingOur social media channels are information hubs on men’s fashion and grooming not just brandcommunication pages. Social media is about giving back to the consumers. We try to put content thatis relevant, useful and worthy of social sharing.
  • 18. Social Media Marketing – India Trends Study 2013 | 19On Twitter, 33.3% of surveyed organizations said that they postmore than 3 tweets a day while 28.9% said they tweet two tothree times a day. For organizations using Twitter for customerservice, the number of tweets (or replies) is likely to be muchhigher.On the speed of response, one-fourth of the surveyedorganizations respond to fan queries on Facebook, on an average,within half an hour of the query being posted, which indicates arobust monitoring and response structure being put into place.On the flipside, more than one-fourth of social media-savvyorganizations surveyed still take more than six hours on anaverage to respond to a fan query on Facebook.What is your average response time with which you attempt toreply to a fan query on Facebook?0.0%2.1%4.2%2.1%16.7%14.6%18.8%16.7%12.5%12.5%0% 5% 10% 15% 20%1-2 mins3-5 mins6-10 mins11-20 mins21-30 mins31-60 mins1-2 hours3-5 hours6-12 hours13- 24 hoursOn Twitter, 28% of the organizations surveyed respond withinhalf an hour to fans and followers. However, 14% of the surveyedorganizations also take 13–24 hours to respond to fans.According to Lighthouse Insights study, inthe period from 1 January –31 May 2012,out of Airtel’s 34,991 tweets, 33,928 werereplies. For Vodafone, out of 1,015 tweets,1,013 were replies.3Out of Airtel’s 22,893 replies, 19,593 replieswere executed in less than 15 minutes.
  • 19. 20 | Social Media Marketing – India Trends Study 2013What is your average response time with which you attempt toreply to a fan query on Twitter?0.0%14.0%9.3%4.7%0.0%34.9%7.0%9.3%7.0%14.0%0% 10% 20% 30% 40%1-2 mins3-5 mins6-10 mins11-20 mins21-30 mins31-60 mins1-2 hours3-5 hours6-12 hours13- 24 hoursWhile speed of response plays a crucial role in keeping theinterest of fans, smart social media professionals realize that itcannot take precedence over quality of response. Acknowledginga query quickly and taking time to figure out the issue andresponding with an informed view later is also a preferredmethod. Consistency is also key. This is not a medium where youcan come alive only while running campaigns. You have to beactive throughout.Smart social media professionals understand the type of queriesand type of fans posting those queries and know how to respondappropriately. Responding to a “discount/coupon seeker” or a“‘I hate your product evangelizer” will be completely differentto a “legitimate question seeker” or a “’I hate your product’evangelizer”.4Creating a bucket list of questions and answershelps in responding to a large majority of queries fast.Putting up generic updates, considerable number ofpictures, responding fast to fans — are these enough tobuild a good community?We asked the founder of popular auto forum Team-BHP,Rush Parekh, on why Team-BHP has been able to remainso successful over the years in creating a close knitcommunity. According to him, the reason that Team-BHP (and other focused communities) has an activemember base is because of the following reasons:• Not only there are like-minded people onboard, butthey are also experts in their domains.• No ”corporate” environment onboard — it is verypersonal and friendly. They have worked very hard toget to a level of camaraderie.• They say it like it is. They call a spade a spade.• Their articles, topics and discussions are morefocused. Basically, specialist vs. generalist.On how brands can improve their interaction quality ontheir communities, Rush offered some pointers:• Minimizing the PR tone/corporate speak whencommunicating with an individual.• Talk specifics. If every interaction will be answeredwith “please lodge your query/complaint on thiscontact us form” or ”we don’t comment on rumours”,well, what value that interaction has?• Have an individual to handle the interaction. Example“Loken Mehra” could be interacting as a companyrep, instead of a main account called “XYZ CompanyIndia”. It’s just a lot more personal.• Keep the communication grounded. Overtly sweet,exaggerated messages are boring in this age ofinformation overload.• At the end of the day though, for business andlegal reasons, brands are limited by what they cancommunicate on an open platform.
  • 20. Social Media Marketing – India Trends Study 2013 | 21Picture contests are the most pop-ular contests among social media-savvy organizations in India, mostcontests organized every monthSocial media-savvy organizations conduct various contestsand promotional programs in their social communities to keepexcitement level high among fans and followers. While we haveseen a number of Facebook contests last year, increasingly we areseeing a number of Twitter-led contests.On Facebook and Twitter, how often do you think is necessaryto have contests/giveaways, promotions for fans, besides theregular day to day interaction?15.0%10.0%42.5%32.5%0.0%0% 10% 20% 30% 40% 50%Every weekEvery fortnightEvery monthOnce in aquarterOnce in sixmonthsAlmost half of the organizations surveyed said that they thinkorganizing a contest on Twitter and Facebook once a month isnecessary while 32.5% said once a quarter should be fine. Toput this in perspective, around 20 organizations from this studyare likely to come out with a contest every month. Add to it thecontests that might come from say 100 more brands from Indiaon Facebook. Additionally, 15% of organizations in this studysaid that they prefer organizing contests once a week and 10%said once a fortnight. Social media users in India have never hadbrands placating for their attention like this ever. They have aplethora of choices to participate in brand campaigns. For brandsand organizations , the challenge in creating an engagement thatwill stand out among the lot has never been as pertinent todaythan ever.What is the type of contest you have found to be the mostsuccessful on your social media platform?25.0%57.5%2.5%15.0%Picture contest Quiz Game Video contestPeople love sharing pictures on Facebook. Brands love sharingpictures on Facebook and the site today has the biggest collectionof pictures than any other photo sharing site in the world. It is nosurprise that more than half of the organizations surveyed saidthat they find picture contests to be the most successful conteston their social communities. Other types of contests that arepopular are quizzes and games.While some organizations have conducted video contests, it isnot one of the most popular engagement medium. Perhaps thereason is that in India, majority of the YouTube videos soughtare premium content, TV show and movies rather than user-generated content.5Also in video contests, there more effort isrequired for participants than in picture contests or quizzes.
  • 21. 22 | Social Media Marketing – India Trends Study 2013Last year, some fan pages in India of prominentbrands were suspended by Facebook overviolation of guidelines. While the wall itself seemsto be the easiest place to run a contest, smartorganizations today do realize that it violatesFacebook promotion guidelines and the needto adhere to guidelines set up by platforms isimportant. Facebook and Twitter both providetheir guidelines on running promotions andcampaigns on the platforms.6BelowRs. 1000BetweenRs. 1000– 5000BetweenRs. 6000– 10000BetweenRs. 10,000– Rs. 50,000More thanRs.50,000What has been the average value of the prize you have offeredever for your online contests? This is the prize that oneindividual winner get, and not the overall amount.34.1%36.4%2.3%22.7%4.5%0%10%20%30%40%More than half of the organizations surveyed put the averagevalue of their prizes to individual winners below INR5,000. 36.4%of organizations put the average value of their prizes betweenINR 1,000–5,000 and 34.1% put the value of their prizes belowINR1,000.Almost a quarter of organizations surveyed put the average valueof their prizes between INR10,000–50,000. It is interesting tonote that some organizations are investing considerable amountsin contests and have put the average value of prizes aboveINR50,000. High prize money makes contests more attractiveand is likely to bring in more participation.With so many free goods to be won, there are interesting sideeffects. Brands are becoming more aware of the new crop ofcontest participants among their communities. A number ofactive online users are taking active interest in participation inbrand campaigns, almost in a planned and professional manner,for the prizes, without any interest in the brand at all. If oneof these users participates in 10 contests in a month and winsconsolation prizes in one or two of them, the prize money isstill attractive enough. The need to identify and engage withtrue fans vis-à-vis contest mongers is proving to be another keychallenge for brands and organizations. Contests that involve anexperience vis-à-vis a simple quiz or a picture contest tend to getmore passionate fans, but it also decrease the overall number ofparticipation.
  • 22. Social Media Marketing – India Trends Study 2013 | 23There are organizations that sometimes take the unconventional route and create unusual and highlyengaging content for fans. One example is Flipkart’s ongoing “Six Degree of Separation” contestwhere fans are shown three to four seemingly unrelated pictures and are asked to find one commonthread between them. This is what Ravi Vora, Sr. VP - Marketing, Flipkart, had to say about theinitiative:“Flipkart’s social media identity has always beenone that has tried to go beyond the corporatefaçade. Our Facebook/Twitter avatar is that ofa friend who hangs out with you, someone youcan swap jokes and have intelligent conversationswith.As a result, we have always consciously stayedaway from focusing on content purely for thesake of basic metrics such as retweets, likesand shares. We rarely ever ask for our fans andfollowers to endorse us on social media. Webelieve in building that virality through smart,witty and clutter-breaking content – so we don’tjust talk about our products but also look atfun, engaging properties that add to the brandpersonality.An example of this is our Six Degrees ofConnection contest on Facebook and Twitter.While the contest is reasonably simple in thisGoogle-age, we try and up the ante to ensurethat our fans have to put their thinking caps on.It is our most in-demand property and we havehad people asking about it if we delay posting theclues/results in the expected time.”
  • 23. 24 | Social Media Marketing – India Trends Study 2013Majority of social media-savvyorganizations in India have socialmedia guidelines and monitoringprogram, but less than half havecrisis manualsWhile engagement is crucial for any social media team,possessing a sound base of guidelines protects an organizationfrom various legal and social risks. Similarly online monitoringprograms allow organizations to listen to customer conversationsand determine an appropriate way of responding with them. Anengagement strategy not based on a sound monitoring programis akin to trying to mingle at a party without knowing what thatparty is about or who have come to that party. Crisis manualshelp organizations to turnaround swiftly when a crisis breaks out.We asked social media-savvy organizations in India if they havethese basics in place. It is good to know that 87.8% of socialmedia-savvy organizations have social media guidelines, and 78%have an online monitoring program in place.However, only 39% have a crisis manual ready with them. It isimportant to create sample scenarios of various crisis scenariosthat can happen and know how to deal with them. Some examplesof crisis for a consumer food product can be a consumer findingan unwanted particle inside the food packet, a consumer fallingsick after consuming the product, rumors around the ingredientsof the food product and possibly their health impacts, etc. Itcan be a car catching fire in the case of an automobile companyor a consumer experiencing a skin burn in case of a cosmeticcompany.In addition to your Facebook, Twitter engagements,do you have the following? Please tick all relevant.87.8%39.0%78.0%0%20%40%60%80%100%Social media guidelines Crisis manual Online monitoringprogrammeSeveral companies that were caught on the wrong foot for notbeing prepared for quick, thoughtful and decisive action regardingsocial media, suffered material and long-lasting corporate injuriesto their market share, customer confidence levels, stock pricesand overall market reputation.7Other companies around theworld are moving fast to protect their corporate brand at a criticaltime when brands have become fragile and vulnerable to millionsof newly empowered consumers coming online every day.Organizations with an integrated, holistic strategy and solidgovernance are better prepared to not only survive rampantchange, but flourish in it. Effective strategy and accompanyinggovernance helps to protect the brand and strengthen it.Companies armed with the understanding of where social mediafits into larger corporate objectives will do better than thosethat are not. Organizations that effectively build and managesocial media strategies and governance frameworks will have acompetitive advantage over companies that do not.
  • 24. Social Media Marketing – India Trends Study 2013 | 25Analysis andmonitoring• Are all social media sites relevant to all major aspects of my business monitored?• Is there a risk analysis regarding incidents on social media channels? Is there an incident responseprocess focused not only on customer feedback and interaction, but also on IT-related security andprivacy-related issues?Assessment • Is the social media strategy inclusive, bringing in all impacted corporate departments and functions,such as marketing, legal, HR, IT, operations and logistics?• Are risks related to the use of social media platforms clearly identified? Does my view of the landscapeinclude unique sector-specific perspectives?Strategy andcompliance• Does my organisation have a social media strategy?• Are my social media policies compliant with any relevant national, international or industry-specificrules and regulations?Governance • What governance systems with measurable criteria (KPIs) do I have in place?• Have policies and guidelines been defined?• Are there mechanisms in place to leverage the customer insights and lessons learned from socialmedia monitoring?Awareness • Are the employees aware of the policies and guidelines? Have they been trained?Questions to ask
  • 25. 26 | Social Media Marketing – India Trends Study 20131 - Initial 2 - Repeatable 3 - Defined 4 - Managed 5 - OptimizedSocial MediaAssessmentSWOTAnalysisSocial MediaStrategyVision, Goals, KPIsSocial MediaGovernanceFrameworkPolicies, GuidelinesSocial MediaAwarenessTrainingsSocial MediaMonitoringControls, ToolsSocial MediaAssessmentSWOT AnalysisSocial MediaStrategyVision, Goals, KPIsSocial MediaAssessmentSWOTAnalysisSocial MediaStrategyVision, Goals, KPIsSocial MediaAssessmentSWOTAnalysisSocial MediaGovernanceFrameworkPolicies, GuidelinesSocial MediaStrategyVision, Goals, KPIsSocial MediaAssessmentSWOTAnalysisSocial MediaGovernanceFrameworkPolicies, GuidelinesSocial MediaAwarenessTrainingsSocial MediaStrategyVision, Goals, KPIsSocial MediaAssessmentSWOTAnalysisSocial MediaGovernanceFrameworkPolicies, GuidelinesSocial MediaAwarenessTrainingsSocial MediaMonitoringControls, Tools0 - NoneErnst & Young Social Media Governance Maturity ModelSocial MediaExcellenceKnowing how the social media governance situation looks like within your organisation comes withmany benefits such as:• Recognising strategic opportunities• Enhanced competitive advantage• Efficient recruitment• Cost reduction• Generate revenue• Valued relationships• Control strategic, operational, reputational, legal, and confidentiality risks
  • 26. Social Media Marketing – India Trends Study 2013 | 27Many social media-savvyorganizations in India use toolsfor online monitoring, responsemanagement, or managing socialmedia platformsThere are many monitoring, channel management, and analyticstools in the market today and using them can be beneficial inspeeding up processes, getting better insights, or in freeing upresources.We asked social media-savvy organizations if they use any oneof such tools, and 52.6% of the organizations said they use toolsfor online monitoring and response management. Another 47.4%of the organizations said they use tools for managing their socialmedia platforms. Few of them said they used both, while fewothers said they also use analytics tools.Do you use online tools to streamline your social media efforts?52.6%47.4%0% 20% 40% 60%For onlinemonitoringand responseFor managingsocial mediaplatforms likeFacebook andTwitter pages
  • 27. 28 | Social Media Marketing – India Trends Study 2013Revlon conducted a series of poll on theirFacebook page recently for two weeks tolearn more about customer’s knowledgeabout make up foundation. Out of 75,000Indian women who participated, 80% saidthey use their fingers to apply foundation,40% spend less than 15 minutes applyingtheir makeup, and 80% touch up theirmakeup only once a day.8Almost half of the social media-savvy organizations in Indiahave conducted research to getcustomer feedback and understandmore about customer behaviorOrganizations have been conducting research to understand theirperformance in the market. They have also ventured into takingsocial media research initiatives for several reasons.40.6% of social media-savvy organizations surveyed haveconducted research to get customer feedback and another 34.4%to understand more about their customer behavior. 25% of theorganizations surveyed have conducted research for competitivebenchmarking.To understandcustomer behaviorCompetitivebenchmarkingTo getcustomerfeedbackHave you conducted any social media research foryour organisation? Can you share what kind ofresearch have you conducted?34.4%25.0%40.6%0%10%20%30%40%50%As socially matured organizations move toward finding tangibleresults from their social media initiatives, they will try to seekmore facts and insights that can help them assess possibilitiesof the medium. For instance, understanding online behavior ofcustomers by interacting with them in person can throw up manyinteresting insights and organizations can tweak their socialmedia initiatives based on what their consumers actually wantor what digital channels and behavior they go through beforemaking a purchase.Similarly analyzing consumers’ online conversations and seekingtheir relevance to various departments such as HR, Finance,Compliance, Legal, R&D, and supply chain, organizations canbetter equip themselves and facilitate increased adoption of socialmedia.However, organizations also need to consider the pros and consof doing research online. While social media can provide real-time and organic feedback, there can be ethical questions onconducting research without explicit consent from the customers.Being observers, it is often difficult to go back to the customers toask further questions.
  • 28. Social Media Marketing – India Trends Study 2013 | 29Have you created any mobile app?50.0%21.7%28.3%Yes No No, but plan toHalf of the social media-savvyorganizations in India have createdmobile phone appsSocial media, along with heavy digitization, has invigoratedthe usage of mobile apps. Smartphone users in India use theirphones to browse the internet, access social networking sites,play games, etc. About one-third of the Facebook users in Indiaaccess the site using their mobile devices.9Facebook recently tiedup with mobile operators in India to offer free or discounted dataaccess.10To capture the attention of the smartphone users, socialmedia-savvy organizations are extending their engagement on tomobile. Half of our surveyed organizations have created mobilephone apps, while more than a quarter plans to create one.Vinay BhatiaSenior Vice-President, Marketing & Loyalty, Shoppers Stop Ltd.“We have used Quick Response (QR) andAugmented Reality (AR) codes to digitally enlivenall marketing communications. AugmentedReality in India is still nascent and Shoppers Stopis the first Indian large-format retailer to havecreated an augmented reality set-up for its End ofSeason Sale campaign. The First Citizen mobileapp, which is available on Android, iphone and BBallows users to swipe their card without actuallyhaving the card, and our GiftBot app providesgifting ideas based on certain criteria such as M/F,budget, age, etc.”
  • 29. 30 | Social Media Marketing – India Trends Study 2013Have you used Facebook advertising/sponsored tweets, etc.?Yes No83.0%17.0%Have you used Facebook advertising/sponsored tweets, etc.?18.4%42.1%5.3%34.2%0% 10% 20% 30% 40% 50%Productleads/salePromoting an onlinecampaign/contestPromoting an offlinecampaign/promotionBrandawarenessMajority of social media-savvyorganizations use social media adsfor promoting online campaignsand brand awareness, and findthem beneficialEarly last year, General Motors created quite a stir when itannounced that it is pulling off its Facebook ad budget of US$10million a year.1Many organizations and experts debated for andagainst using social media ads.In India, we have seen the ads of e-commerce companies onFacebook2displaying a branded shoe with a discount or a sale.According to case studies from Facebook, Kaya Skin Clinicattributes 20% and Myntra.com attributes 25% of their sales toFacebook. Yatra.com generated INR1.5 million per month fromFacebook.3While this was the case, we were curious to know how socialmedia-savvy organizations in India feel about social mediaadvertising.From the study, it is clear that majority of organizations surveyed(83%) have used social media ads.5. Use social media ads
  • 30. Social Media Marketing – India Trends Study 2013 | 31The reasons for using social media ads are various. Three-quarterof the organizations surveyed said they have used ads to promotean online campaign or for brand awareness. When organizationslook at Facebook, they seem to equate the platform with fanengagement and perhaps this is the reason behind putting inmoney to boost up their engagements. Even on Twitter, most ofthe promoted tweets or accounts that we see today are either topromote an ongoing contest or to promote a profile and increasefollowers.While promoting campaigns seems to be the major reason forusing social media ads, 18.4% of the organizations surveyedsaid they use ads for product leads or sales. We can see moreorganizations experimenting with Facebook apps for referralsales and integrating payment systems on their product apps onFacebook. When this happens, there will be more sales related tospending on the platform.There are interesting social commerce developments, e.g.,Facebook Gifts and Facebook Want buttons. We are yet to seehow many Indian brands sign up for Facebook Gifts and utilize thisopportunity. All of these will lead to more sales-related spendingon Facebook, if not ads. More so, users coming to a site such asFacebook Gifts are more likely to have a purchase inclination, andtherefore, sales related ads might be more acceptable here thanthose on the main Facebook page where people come to shareand discuss stories and experiences. Similarly, a user with a list of”want” items is likely to explore more products similar to his/her”wants.”Few of the organizations surveyed said they have used adsto increase their fan base or for all the above reasons. Therewill always be a section of organizations in India that will useFacebook ads for many more reasons besides marketing or sales.Nevertheless, either for sales or engagement the reason mightbe, there is a positive hope as a majority of the organizationssurveyed (88.6%) said they find social media ads to be beneficial.Are you finding social media advertising to be beneficial?88.6%4.5%6.8%Yes No Maybe
  • 31. 32 | Social Media Marketing – India Trends Study 2013Most social media efforts aremeasured through platform-specific parametersReturn on investment (ROI) on social media spend has been amillion dollar question with numerous discussions and bookshaving been written around the topic.In India, among the social media-savvy organizations surveyed,platform-specific parameters continue to be the leading metricswhile business-specific measurements from social media activitiesare yet to be tapped. 81% of the social media-savvy organizationssaid they measure their social media efforts through platform-specific parameters including ”likes” and ”People Talking AboutThis.” Almost half of the organizations surveyed said they havenot measured revenue from their social media efforts, while31.1% said maybe there is an increase in revenue from theirsocial efforts.As organizations mature in social media usage, there will bemore experimentation and inclination to learn more about ROI.Interestingly, a small percentage of organizations are alreadystarting to measure social media efforts in terms of leads/sales,change in sentiment, and brand visibility. 19.9% of organizationstoday have already seen increase in revenue from socialmedia efforts.6. Success measurementDeeptie SethiHead of Corporate Communications, Ford India Private Limited“In October 2010, just six months after Ford Figolaunch, we organised a pan India drive called‘Discover Smart Drive’ for young couples thatrepresented our TG, in a special Ford Figo withobjective of expanding our Figo footprint in Tier 2towns, rekindle the excitement among consumersand community fans, and reinforce Figo’s ‘smart’association.While it was a complete 360 degree integratedcampaign involving on ground events, advertising,and PR; social played a lead role in creating buzzand participation before the kickoff and during thedrive. We leveraged our social channels big timeand engaged with online influencers.Apart from many impressive wins like increasingour fan base and creating hundreds of positivemedia stories and fan conversations reinforcing‘smart’ with Figo, a big business benefit weachieved was that the monthly average of 35,000enquiries of Ford Figo jumped to 60,000 and oursales peaked in that month”.
  • 32. Social Media Marketing – India Trends Study 2013 | 33How do you measure your success/ ROI on social media?Platform specific parametersviz. Likes, People Talking about this,Comments, Impressions, views, etc.Leads/Sales goalsChange in sentimentBrand visibility81.0%7.1%4.8%7.1%Are you able to see increase in revenue fromyour social media engagements?46.7%2.2%31.1%11.1%4.4%0.0%4.4%0% 10% 20% 30% 40% 50%Haven’tmeasuredNoMaybe1%-10%11%-25%26%-50%Above 50%
  • 33. 34 | Social Media Marketing – India Trends Study 2013Almost half of the socialmedia-savvy organizations spend1%-5% of their marketing budgeton social mediaMost social media budgets are below INR10millionIn 2009, PepsiCo in the US skipped the sponsorship of the SuperBowl for the first time in 23 years and spent US$20 million in alarge social media-led campaign called the Pepsi Refresh Project.The campaign was about inviting people to share and vote onideas that will help make the world a better place. The campaigngarnered 1 billion media impressions in the first 3 months andmore importantly, it created a movement for social good.16-10% 11-15% 16-20% 20-30% Morethan 30%How much percentage of your marketing budget do you spendon your social media initiatives?1-5%41.5%36.6%14.6%0.0%7.3%0.0%0%10%20%30%40%50%In India, traditional media continues to be where the big spendingis. Especially for big spenders, TV spots and print media spreadscontinue to be the focus. Social media campaigns are sometimesjust an afterthought to support the ad campaign. However, withincreasing social media success story emerges and ROI getsclearer, we will see more appetite among large organizations totake on large social media initiatives and spend.Almost half of the social-media savvy organizations said thataround 1%–5% of their marketing budget is spent on social media.36.5% of organizations said 6%–10% of their marketing budgetis spent on social media. 7.3% of organizations surveyed saidaround 20%–30% of their marketing budget is spent on socialmedia.BelowRs. 10 lacRs.11 -Rs.25 lacRs. 26 lac -Rs. 50 lacRs. 51-Rs.99 lacRs.1 -2 croreAboveRs.2 croreWhat is your social media budget in a year?20.0%28.6%14.3%8.6%11.4%17.1%0%10%20%30%7. Social media budget
  • 34. Social Media Marketing – India Trends Study 2013 | 35Compare the less than INR10 million socialmedia budget of top social media savvyorganizations today with the INR1070 millionadvertising budget of Godrej ConsumerProducts in December 2012 quarter or theINR990 million advertising budget of ColgatePalmolive in 2012.2The annual social media budget has a mixed response with28.6% of organizations placing it at INR1.1–2.5 million,20% below INR1 million, and 17% above INR20 million.It is interesting to note that almost three quarter of theorganizations surveyed have their social media budgetbelow INR10 million, while a little above a quarter of theorganizations surveyed have social media budgets exceedingINR20 million.However, the silver lining is that many marketers believe thatthere would be an increase in social media spends in 2013.3
  • 35. 36 | Social Media Marketing – India Trends Study 2013While the big budgets of marketing departments are doing wellfor the growth of social media, it can also predominantly equatesocial media efforts with reaching out to prospects or for sales.Organizations need to evaluate if social media rests withinmarketing, are departments such as Customer Service, Sales, andR&D missing an opportunity?Organizations, as they grow in the social maturity ladder, will findmore acceptances of social media in more departments otherthan marketing. Some of the advanced organizations in Indiaalready have cross functional teams using social media. SomeCustomer Service departments are already using social mediato listen to conversations and engage with customers on theirqueries. Smart PR/communications departments have alreadyadopted social media as a means to reach out to their publicdirectly and not limit themselves to media relations. There arediscussions around social chain management, and crowdsourcingfor R&D purposes.A majority of the social media-savvy organizations (70.2%)said they have an in-house social media expert in the middlemanagement. This spells well for improved adoption of socialmedia in organizations and for the industry as a whole. Earlierthere were stories about social media roles being delegatedto trainees, but having a senior professional specializingin social media in the organization will have an influenceon communication planning. Social media capabilities andspecializations will also lead to more insights and innovation.Majority of social media efforts inIndia are managed by marketingWhich department handles social media among the social-mediasavvy organizations in India? Is there an expert in-house or is thesocial media function delegated to an intern as we have often readabout? These questions were critical to the growth of social mediamarketing in India.We found that currently among the social-media savvyorganizations in India, marketing departments manage most ofsocial media efforts. 76.7% of the social-media savvy organizationssaid they have their marketing department handling social mediawith the rest being handled by a cross functional team/acrossfunctions or by the PR/communications team.Which department manages social media in yourorganisation?MarketingPR/communicationsCustomer CareHRSenior leadershipSalesCross functional team Across functions but coordinatedAcross functions uncoordinated76.7%4.7%0.0%0.0%2.3%0.0%7.0%7.0%2.3%8. Department managingsocial media
  • 36. Social Media Marketing – India Trends Study 2013 | 37Do you have an in-house digital expert?70.2%19.1%10.6%Yes No No, but plan to hireSridhar IyerHead, Digital Banking, Citibank IndiaSocial media is increasingly becoming akey component in the digital marketing andcommunication mix for Financial Services.As a channel for multidimensional and real-time communication, FS organizations willuse social media to engage consumers andobtain valuable insights. However, given thetransparency of social media and the sensitivenature of financial transactions, organizationsmust take necessary precautions while growingthis medium.If yes, what is his/her level at your organisation?Middle management Junior executive (Executive, Associate)Senior management (VP, Director, etc.)0.0%78.4%21.6%
  • 37. 38 | Social Media Marketing – India Trends Study 2013Do you use social media for any other reason inaddition to connecting to your customers?Thought leadership CSR Internal communicationsRecruitment26.9%19.2%19.2%34.6%Social media is being increasingly used for thought leadershipand internal communications, recruitment, and CSR in additionto marketing. 34.6% of the social media-savvy organizationssaid they use social media for thought leadership and 26.9% saidthey use social media for CSR. Increasingly the HR departmentis leveraging social media for internal communications. Closegroups on Facebook, or company-specific networking sites aregaining prominence today. Professional networking sites such asLinkedIn are increasingly being leveraged for recruitment.Point to ponder:As social media gets more and more adopted indifferent departments of an organization, does itmake sense for the social media expert to sit inone particular department, or should the socialmedia expert be an independent departmentaltogether such as the IT department, not silobut integrating social in every department?Gautam GhoshSocial Business and HR Consultant“While most companies are using social networksto recruit – but we’re still in the very beginningsof how this can be used by companies. Socialis not just about media, it is changing the waythat people connect and share together. As thisdynamic changes in people’s other aspect of lives– family, politics, commerce – it will also impacttheir work also. The old management paradigmof command and control is an anachronism of theindustrial age. Today and tomorrow’s knowledgeworkers want to connect with internal experts,collaborate wherever and whenever. Companiesthat understand these are implementing internalsocial networks to facilitate such discovery.Knowledge that would have been locked upinside people’s heads are now being shared inconversations for others to read and commentalso. But that’s not all. Companies are alsorealizing that training and empowering theiremployees to connect with customers sociallyis in their own interests. Employees are seenas credible and trusted people by customersand prospective customers. More and morecompanies are moving from the ‘don’t do this’social media approach to ‘here’s how you usesocial media’ for their business.”
  • 38. Social Media Marketing – India Trends Study 2013 | 399.Agency structureMajority of social media-savvyorganizations in India usestandalone digital agencies ascompared to PR/ad agenciesAmong the surveyed social-media savvy organizations 73.8%have chosen standalone digital agencies as compared to PR, adagencies, or freelancers. The reason behind this can be due tothe specialized skills, development capabilities, and wide array ofservices under one roof that comes along with digital agencies.That said, PR and ad agencies also handle social mediainitiatives of some of the big organizations in the country. Someorganizations find better synergy by giving their communicationmandates to one organization instead of multiple ones.Big organizations often work with multiple agencies for theirdigital work depending on expertise and specialization (mobile,website, SEO, app development, social media engagement,blogger outreach, etc.) and often work with different agencies fordifferent campaigns.Do you use social media for any other reason inaddition to connecting to your customers?Standalone digital agency Ad agency PR agency Recruitment2.4%19.0%73.8%4.8%What is one thing you expect from yourdigital consultant that is lacking now?• “Understanding of business and aligningsocial media to business.”• “Innovation, speed, and quality”• “Social media agencies are currentlytransactional in nature. They need tomature and provide advisory servicesspecific to each sector.”• “Thought leadership”(Responses from survey respondents)
  • 39. 40 | Social Media Marketing – India Trends Study 201359.1% of the organizations surveyed also said that they are happywith their current agencies while 40.9% responded with either a“maybe” or a ”no.” Organizations expect their agencies to providemore insights, be more creative, and provide faster execution.Are you happy with your current digital agency?Yes No Maybe59.1%13.6%27.3%
  • 40. Social Media Marketing – India Trends Study 2013 | 41There is a lot of young and creative talent amongthe digital agencies environment today, whocome out with impressive ideas and campaignsthat we see today. Digital agencies should focuson the career growth of these young digitalprofessionals; provide them a vision of wherethey can reach up to and training programs tocompliment their knowledge in technical skills,soft skills, and better understanding of businessand management functions. For example,a digital campaign manager might benefitfrom a better understanding of cyber laws, ITprocesses, or even design and developmentskills. A professional equipped with theknowledge of Customer Service and supply chainmanagement will be better able to integratesocial media elements into those functions.Secondly, digital agencies can benefit from betterinstitutionalization of best practices and creatingindustry standards.While the future looks bright in the digitalmarketplace and leading agencies have alreadystarted investing in thought leadership andadhere to ethical ways of leveraging social, thereare others who look at digital from a “likes” or”fans acquisition” standpoint.There is also an eruption of digital shops acrossthe country today, because of the demand oforganizations with limited budgets that arelooking out for small outfits to manage Facebookor Twitter profiles. As social savvy organizationscontinue to mature and invest more in qualityand value, the agency environment in India willget streamlined and we can see some of theagencies closing down, mergers and acquisitionshappening, and few good names to emergefinally.There are some PR and ad agencies that haveestablished digital practices in their organizationswell and to create market thought leadership.They have long recognized the need to integratesocial media in communications programs.Smart PR and ad professionals today also donot see online fan and influencer engagementas a separate specialization but rather as partof their core work function. As more PR and adagencies begin to integrate social componentsin their campaigns with delivery capability, andmore global agencies establishing their offices inIndia introduce global social media capabilities,they are bound to give more competition to thetraditional digital agencies.Creating investments in three key areas could bekey to increased client recognition of their digitalstrength:1. Thought leadership: Barring a few that haveestablished themselves well, many PR andadvertising firms can invest more in thoughtleadership. Social media is an area whereinsights and innovative thinking are requirednot only to establish oneself in the market, butfor the growth of the overall industry.2. Resources and tools: By early 2008, keyagencies had already started to hire digitalexperts and partnered with digital firms tostart digital practices in their organizations.However, the need of the hour today is toincrease in-house specialists and invest indevelopment, design, and content capabilities.3. Not positioning social as a complimentaryservice: Often PR and ad agencies look atsocial media as complimentary services totheir traditional PR and ad campaigns. Theneed to look at social media holistically andengage with other business divisions hasbecome important when organizations arelooking to adopt social media across functions.
  • 41. 42 | Social Media Marketing – India Trends Study 2013Social media-savvy organizationsin India are very optimistic aboutthe role of social media in futureSocial media-savvy organizations are very optimistic about therole of social media in their organizations. Though measurementsaround sales and leads are not very evident for majority oforganizations today, they realize social media plays an importantrole in generating insights and building communities.In future, the growth of social media within organizations willOver the last few years, organizations have experimentedwith various social media activities, platforms, and tools.The knowledge gained will help bring sophistication in theengagement programs that we will see in the near future andthey will have much larger scale. So currently if a Trending Topicon Twitter was the maximum bang an average program canachieve, tomorrow, it will be the talk of the town or creating amovement that organizations will seek to achieve through theirsocial media efforts.Increase in scale• More functions across departments will see usage ofsocial media. Not only customer-facing departments, butdepartments such as legal, R&D, and supply chain will startexperimenting with social media.• Organizations will tag along the growth of emergingplatforms and try to leverage the users that these newplatforms will attract.• Budgets on social media marketing will increase as a result ofincreased sophistication in marketing programs and adoptionin other departments.Increase in sophistication• As organizations target ROI from social media, they willtry to seek more clarity and demand more than likes andcomments. In such an environment, they will invest morein research and insights to seek more answers to be able todefine measurable outcomes.• The increasing need to deliver value and ROI will demandmore insights and innovation and there will be morespecializations.• Social media initiatives will become more integrated withmarketing programs, Customer Service efforts, or withinternal communications programs and running social mediaprograms in silo will be experiments of the past.10. Future of social mediain organisations
  • 42. Social Media Marketing – India Trends Study 2013 | 43Dina MehtaResearcher, ethnographer, & social media observer“One imminent development is the growth ofthe mobile internet. Particularly for purposesof communication and sociality - both needsare increasingly being met by social networksaccessed on the mobile. Byte-sized pre-paid cardsand connections will spur this on, and contentwill flow in and out. This will bring in many newusers not just from large connected metro cities,but from smaller towns and rural areas too.We are all researchers today. The tools are in ourpockets. Companies will need to begin thinkingof customers or TG as their researchers ratherthan just being respondents or subjects, users orcustomers. More experienced users will look formore meaningful engagements and opportunitiesto co-create value with companies.Another aspect that will drive people to adoptsocial media driving usage is that top-levelmanagement is finally beginning to see thebusiness value of social media in three areas -productivity, marketing, HR. Social media skillswill be a part of your resume now.”
  • 43. 44 | Social Media Marketing – India Trends Study 2013In 2011, Ernst & Young conducted a quantitative and qualitativeresearch on 36 UK and international flagship brands with theaim to address these questions.1Through the research, we haveidentified five key characteristics of ”socially adaptable” andsuccessful brands, which we believe all organizations can adaptand learn:• Facilitate open dialog• Engage proactively• Connect beyond product• Deliver integrated experiences• Collaborate and co-developCompanies need to make organizational changes in order tofully embrace the ”new game” of social media. The three criticalareas companies need to focus on to support a coherent andsustainable social media strategy are:• Spotting the ”golden nuggets” of data and generating valuefrom them coordinating social and traditional channels• Coordinating social and traditional channels• Empowering employees to engage with communitiesFive key characteristics of ”sociallyadaptable” and successful brands
  • 44. Social Media Marketing – India Trends Study 2013 | 451. Forward this study to various people within your organizationand discuss how social media is relevant to variousdepartments within your organization and how they caneffectively utilize the medium if they are not doing soalready.2. Compare your organization’s use of social media withthat of social media-savvy organizations discussed in thisstudy. Check the level of social media maturity within yourorganization.3. Discuss what needs to change or worked upon within yourorganization — whether it is about developing a socialmedia ROI model, creating a more robust monitoring andanalytics system or a social media governance policy,familiarizing your key employees on usage of social media,or understanding your customer’s behavior more to betterengage with them and deriving more benefits from yoursocial media efforts.How to get the bestout of this study
  • 45. 46 | Social Media Marketing – India Trends Study 2013Insights• How do we know what we are doing is the best for our fansand customers? Are they in sync with their expectations?How do we benchmark this against competition?• What are the best practices or global standards that weshould be aware of and can learn from?Strategy• How do we familiarize the various departments in ourorganization with digital and how do we make digital relevantfor them?• We have established our social media communities and havedone great campaigns for fans online. Now what is the nextstage that we should take our organization to?• We have leaped into digital, but do we have the guidelinesin place for our teams and employees? How do we identifydigital risks and steps to mitigate them? What is our socialmedia governance maturity level?• How do we identify the digital service providers and howdo we bring all of them together to create a comprehensivedigital strategy for us?Analytics• What is the state of digitization in our organization? Howdo we assess the digital maturity across dimensions such ascustomers, suppliers and partners, investors, employees andleadership?• How do we develop a practical ROI model for ourorganization from our digital efforts beyond platform-specificparameters?Ernst & YoungServices that areappropriate to yourmaturity and needsAgnostic advicethat is not tied to aparticular outcomeCross-functionalthinking, skills andproject teamsErnst & Young works with forward thinking social media professionals and organizationalleaders to answer key questions to accelerate the social transformation process withintheir organizations.
  • 46. Social Media Marketing – India Trends Study 2013 | 47The power of social mediaAs consumers and their customers become more empowered todiscuss online, if managed correctly, social media can becomean essential source of strategic information for key areas suchas corporate risk, regulatory compliance, HR, marketing, R&D,trade distribution and availability, crisis management and qualitycontrol.The challenge of social mediaGetting digital operations and governance right is thereforecrucial. But the challenge does not end with the correcttechnology in place — it is about effectively using the data itgives you. Without the tools to collect it, companies are unableto use the wealth of consumer and customer insight they haveat their disposal. And even if they do, they often do not have thecapacity, the skills or the processes to shift through it and seewhat it means.Ernst & Young socialmedia analytics servicesSocial media toolsMost social media monitoring tools make the flawed assumptionthat users speak in perfect American English. They rely on SMMtools, translation engines, natural language processing toolsand human intervention to try and cut out the ”noise.” Accuracyis notoriously low (25%–40%) and many only output positive/negative/neutral sentiment, ignoring the opinions and rootcauses. Users are skeptical about accuracy levels, and therefore,actionable insights become highly unlikely.Ernst & Young social media analytics servicesErnst & Young has developed the capability to support our clientsto listen, filter, and analyze’ and interpret and report social media.We have the capability to listen to any online publically availableconversation in any language, across any stakeholder and anytopic and generate a report in three days with 97% accuracy thatcan give you insights and can augment your offering or protectyour business from the boardroom to in-market functions. We areable to immediately listen to more than 30 different languagesthrough our Social Media Analytics hub based out of Zurich,Switzerland and have access to a network of 150,000 plusprofessionals who are able to provide local business context to theissues being explored.
  • 47. 48 | Social Media Marketing – India Trends Study 2013Read other EY reportsand papers on digitalhttp://bit.ly/13kxo3rhttp://bit.ly/YD4GJwhttp://bit.ly/YD3Ix3http://bit.ly/WTBkHDhttp://bit.ly/YI86JYhttp://bit.ly/Xr0paUhttp://bit.ly/VxRVRXhttp://bit.ly/YogrBFhttp://bit.ly/YD3Ix3For more studies, please visit www.ey.com/GL/EN/home/library
  • 48. Social Media Marketing – India Trends Study 2013 | 49Dinesh Mishradinesh.mishra@in.ey.comDinesh has 17 years of experience in corporate development, product andcustomer strategy, operating from India, Singapore and the UK.He has developed and designed digital strategies for clients, developed digitalas a channel to market and additional revenue streams, worked on the creationof early digital market places, and designed complete customer experiences foronline retailing businesses.Dinesh leads the Customer Practice for Ernst & Young India.Palin Ningthoujampalin.ningthoujam@in.ey.comPalin has been actively blogging and experimenting with online technologiessince 2006. He founded the erstwhile popular blog, India PR Blog (now mergedwith Advocable.com), reviewed online tools for top social media blog Mashable,and contributed offbeats to blogs such as Desicritics and youth magazines.He has led award-winning digital marketing campaigns and helped clientsbecome top social media brands in India. He has more than a decade ofexperience in corporate reputation management and digital marketing and wasthe prime mover in successfully setting up the digital practices in his last twoorganizations. He has conducted training sessions for young digital champions.Palin leads the digital advisory stream at Ernst & Young India within theCustomer Practice.Contact us
  • 49. 50 | Social Media Marketing – India Trends Study 2013Why social media1. “The New Conversation: Taking Social Media from Talk toAction, Harvard Business Review analytic Services,” HarvardBusiness Review, 2010, http://hbr.org/hbrg-main/resources/pdfs/comm/sas/16203-hbr-sas-report-r3.pdf, accessed 28February 2013.2. “From social media to social CRM: What customers want,”IBM Institute for Business Value, ftp://public.dhe.ibm.com/common/ssi/ecm/en/gbe03391usen/GBE03391USEN.PDF,accessed on 01 April 2013.Which social media platform1. “India Facebook Statistics,” Social Bakers, http://www.socialbakers.com/facebook-statistics/india, accessed 1 April2013.2. “39 Best Indian Facebook Campaigns Of 2012,”LighthouseInsights.in, http://lighthouseinsights.in/39-best-indian-facebook-campaigns-of-2012.html, accessed 1 March20133. “Gangnam Style,” Wikipedia website, http://en.wikipedia.org/wiki/Gangnam_Style, accessed on 28 February 2013, “WhyThis Kolaveri Di,” Wikipediawebsite, http://en.wikipedia.org/wiki/Why_This_Kolaveri_Di, accessed on 28 February 20134. “How do brands gain from videos? Danielle Tiedt, CMO,YouTube gives us some answers,” The Economic Times,http://articles.economictimes.indiatimes.com/2013-02-20/news/37200405_1_brands-gain-ads-psy, accessed on 28February 2013.5. “Surprise dance on Finnair Flight to celebrate India’s RepublicDay,” Finnair YouTube channel, http://www.youtube.com/watch?v=mEsnb3kUDAw6. “Pepe Jeans India Engages on Pinterest with ‘Pin It to WinIt,” Lighthouse Insights website, http://lighthouseinsights.in/pepe-jeans-india-engages-on-pinterest-with-pin-it-to-win-it.html, accessed on 28 February 2013.7. “Is Facebook Losing Its Cool? Some Teens Think So,” Time,http://business.time.com/2013/03/08/is-facebook-losing-its-cool-some-teens-think-so/, accessed on 11 March 2013.8. “Indian Blog Directory,” Indiblogger, http://www.indiblogger.in/directory.php, accessed on 1 March 2013.9. “Microsoft Most Valuable Professional,” Microsoft website,http://mvp.microsoft.com, accessed on 1 March, 2013.10. “Womma Code of Ethics,” Womma website, http://www.womma.org/ethics/womma-code-of-ethics, accessed on 1March 2013.Popular practices1. “On Facebook, Photos Represent 89% of Brands’Most Engaging Posts,” Marketing Charts, http://www.marketingcharts.com/wp/direct/on-facebook-photos-represent-89-of-brands-most-engaging-posts-25330,accessed 1 March, 2013”2. “January 2013 Social Media Report: Facebook Pages in India– UPDATE,” Socialbakers website, http://www.socialbakers.com/blog/1373-january-2013-social-media-report-facebook-pages-in-india-update, accessed 1 March 2013.3. “@Airtel_Presence Most Responsive Telecom BrandOn Twitter [Report],” Lighthouse Insights, http://lighthouseinsights.in/airtel_presence-most-responsive-telecom-brand-on-twitter-report.html, accessed 1 March2013.4. “The 5 types of people who post on brand pages,” Ragan’sPR Daily website http://www.prdaily.com/Main/Articles/The_5_types_of_people_who_post_on_brand_pages_10502.aspx#, accessed 28 February 2013.5. “What India watched: 2012 YouTube rewind,” LiveMint website, http://www.livemint.com/Leisure/TqPt0GUTdJ5Mj6nbMicDdJ/What-India-watched-2012-YouTube-rewind.html, accessed 28 February 2013.End notes
  • 50. Social Media Marketing – India Trends Study 2013 | 516. “Facebook Page Terms,” Facebook, https://www.facebook.com/page_guidelines.php, accessed 4 March, 2013.“Guidelines for Contests on Twitter,” Twitter, https://support.twitter.com/articles/68877-guidelines-for-contests-on-twitter#, accessed 4 March, 2013.7. “Protecting and strengthening your brand,” Ernst & Youngreport, http://bit.ly/YI86JY8. “How Revlon India Leveraged Social Media to Gain Insightsfor a Product Launch,” Lighthouse Insights, http://lighthouseinsights.in/how-revlon-india-leveraged-social-media-to-gain-insights-for-a-product-launch.html, accessedon 04 March 2013.9. “Facebook: In India, 30 Percent of Users Are Mobile-only,”PCWorld website, http://www.pcworld.com/article/257849/facebook_in_india_30_percent_of_users_are_mobileonly.html, accessed 4 March 2013.10. “Facebook ties up with Airtel, Reliance Communications; tooffer free data access for chat users,” The Economic Timeswebsite, http://economictimes.indiatimes.com/tech/internet/facebook-ties-up-with-airtel-reliance-communications-to-offer-free-data-access-for-chat-users/articleshow/18783523.cms, accessed 4 March 2013.How do organizations use socialmedia ads1. “General Motors Pulls Advertising From Facebook[REPORT],” Mashable website, http://mashable.com/2012/05/15/general-motors-pulls-facebook-ads,accessed 4 March 2013.2. “E-commerce fashion retailer generates 25% of revenuefrom Facebook,” Facebook, http://fbrep.com/collateral/Myntra_CaseStudy.pdf, accessed 4 march 2013. “Kaya SkinClinic: Generating walk-ins through the Page,” Facebook,https://www.facebook.com/advertising/success-stories/kaya,accessed 4 March 2013,3. “Yatra: Initiating and engaging in conversations withcustomers,” Facebook, https://www.facebook.com/advertising/success-stories/yatra, accessed 4 March, 2013.Social media budget1. “Pepsi to Skip Super Bowl Ads in Favor of $20M SocialMedia Campaign,” Mashable website, http://mashable.com/2009/12/23/pepsi-super-bowl, accessed 4 March2013; John F. Dwight, “Pepsi Refresh Project,” http://www.johnfdwight.com/Pepsi-Refresh-Project, accessed 4 March2013.2. “India Inc sees a spurt in Oct-Dec ad spends,” The Times ofIndia website, http://timesofindia.indiatimes.com/business/india-business/India-Inc-sees-a-spurt-in-Oct-Dec-ad-spends/articleshow/18521804.cms, accessed 4 March 2013.3. “The state of social media spends in India,”IndiaSocialwebsite, http://www.indiasocial.in/social-media-investments,accessed 1 April 2013.Five key characteristics of”socially adaptable” andsuccessful brands1. “Social Media: New game, new rules, new winners,”Ernst & Young, http://bit.ly/YD4GJw, accessed 28February 2013.
  • 51. 52 | Social Media Marketing – India Trends Study 2013Team behind the reportPalin NingthoujamPalin.ningthoujam@in.ey.comAseem MadanAseem.madan@in.ey.comAditi JoshiAditi.joshi@in.ey.comRamprasad VRamprasad.v@in.ey.comFollow E&Y India @EY_IndiaLet’s discuss this report at #EYstudyWatch us on www.youtube.com/ErnstandYoungGlobalYou can also access this report online at www.ey.com/India/socialmedia
  • 52. Ernst & Young LLPAssurance | Tax | Transactions | AdvisoryAbout Ernst & YoungErnst & Young is a global leader in assurance, tax,transaction and advisory services. Worldwide, our167,000 people are united by our shared values and anunwavering commitment to quality. We make a differenceby helping our people, our clients and our widercommunities achieve their potential.Ernst & Young refers to the global organization ofmember firms of Ernst & Young Global Limited, each ofwhich is a separate legal entity. Ernst & Young GlobalLimited, a UK company limited by guarantee, does notprovide services to clients. For more information aboutour organization, please visit www.ey.comErnst & Young LLP is one of the Indian client serving member firms of EYGMLimited. For more information about our organization, please visit www.ey.com/india.Ernst & Young LLP is a Limited Liability Partnership, registered under theLimited Liability Partnership Act, 2008 in India, having its registered officeat 22 Camac Street, 3rd Floor, Block C, Kolkata - 700016© 2013 Ernst & Young LLP Published in India. All Rights Reserved.This publication contains information in summary form and is thereforeintended for general guidance only. It is not intended to be a substitute fordetailed research or the exercise of professional judgment. Neither EYGMLimited nor any other member of the global Ernst & Young organizationcan accept any responsibility for loss occasioned to any person acting orrefraining from action as a result of any material in this publication. On anyspecific matter, reference should be made to the appropriate advisor.EYIN1303-XXXED NoneRiS