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Syncapse Increasing Campaign Effectiveness With Social Media


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Indeed, social media has clearly become a very effective way to drive consumer awareness and campaign effectiveness. But our survey went one step further. We identified a critical segment of the social media audience who carry a disproportionate level of influence on consumers. This group, who we call Social Media Producers, also tend to spend more on the brands they recommend. Activating this segment of the consumer audience will provide incremental benefits to those brands that understand how to engage consumers through social channels. To help them, Syncapse conducted an extensive study of more than 4,300 consumers across North America.

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Syncapse Increasing Campaign Effectiveness With Social Media

  1. 1. ™ INCREASING CAMPAIGN EFFECTIVENESS WITH SOCIAL MEDIA MARCH 2011©2011 Syncapse Corp. All rights reserved. @syncapse
  2. 2. EXECUTIVE SUMMARYThere should be no doubt that social media is growing in popularity and taking a biggershare of consumer mindshare. In trying to separate the hype from the reality, many marketersand brand managers are struggling to understand what level of investment should be madein social channels. To help them, Syncapse conducted an extensive study of more than 4,300consumers across North America.We expected to find that social was quickly becoming an important part of the consumerdecision-making process. From our experience working with leading global brands toidentify and manage their social media audiences, we have seen anecdotal and quantitativeevidence of brands that integrated social media into their marketing campaigns gaining aclear advantage over their competitors. But what we learned surprised even us.Through our survey, we found that consumer behaviour is evolving quickly. Television is nolonger the main focal point of media attention in the home. A growing number of consumersare spending more time online than watching TV. Many do both at the same time.Consumers are also looking to social media as a source for trusted brand recommendations:friends and family use social networks to comment on brands; many blogs have gained trustwith their audiences; and Facebook brand sites are increasingly becoming a destination forsavvy consumers.Indeed, social media has clearly become a very effective way to drive consumer awarenessand campaign effectiveness. But our survey went one step further. We identified a criticalsegment of the social media audience who carry a disproportionate level of influence onconsumers. This group, who we call Social Media Producers, also tend to spend more onthe brands they recommend. Activating this segment of the consumer audience will provideincremental benefits to those brands that understand how to engage consumers throughsocial channels.For marketing and brand managers, the lesson is clear: campaigns that incorporate a levelof social media investment will be more effective. And those that focus on moving their socialmembership base up the value chain will find even greater returns on their investments.Syncapse is pleased to share these findings. We believe this data demonstrates that, byinvesting in social media, marketers and brand managers can increase their campaigneffectiveness and achieve a greater proportion of positive brand recommendations.But every brand is unique, and so we encourage you to contact us to learn more about thesegments of the social media audience that carry the most influence with your brand. Youmay be surprised by what you find out. ©2011 Syncapse Corp. All rights reserved. 2
  3. 3. SUMMARY OF KEY FINDINGSSocial media is increasingly pulling mindshare away from traditional advertising andforming new influencers that will become an increasingly important target segment formany marketers. The Producer segment can deliver $22.93 in earned media value per recommendation for brands that engage in social media campaigns. 45% of consumers watch TV and surf Facebook at the same time. 40% of respondents factor in Facebook recommendations when making purchasing decisions. Consumers are equally likely to trust a recommendation from a blog as a television spot. Producers spend almost 20% more on the brands they recognized than Participants. ©2011 Syncapse Corp. All rights reserved. 3
  4. 4. AUDIENCE SEGMENTATIONBased on their self-identified media use, respondents were categorised into fiveaudience segments: Producer 13.7% Creates and distributes new content through social networks, blogs and online discussion forums Engager 24.9% Engages brands and interest groups in collaborative discussions on social networks, blogs and online discussion forums Participant 28.4% Maintains and updates profiles on social networking sites Lurker 19.7% Reads blogs and online discussion forums and follows friends and family discussions and updates on social networks Abstainer 13.2% Does not actively participate in social networking ©2011 Syncapse Corp. All rights reserved. 4
  5. 5. TV IS STILL KING, BUT SOCIALIS INCITING REVOLUTIONAcross a number of key demographics, consumers are spending less time watching televisionand more time participating in online forums such as social networking. And while almost30% of respondents report spending more than 20 hours watching television and more than20 hours online per week, almost one in five say they now spend significantly more timeonline than in front of the television.For marketing and brand managers, these findingspoint to a fragmentation of consumer mindshareand an increasing need to deploy multi-channelledinitiatives that bring together television and onlinesources to engage customers and reinforce brand 18% of all consumersmessaging. spend more time onlineThe following chart clearly illustrates the propensityof consumers to split their media time between than watching TV.traditional and online sources. TV Hours per Week Online Hours / TV Hours Crosstabulation Less 31 or than 8 9 to 15 16 to 20 21 to 30 more Total 10 or less 262 107 93 111 79 652 28.4% 14.1% 11.1% 11.2% 9.9% 15.1% 242 277 223 219 102 1063 10 to 19 26.3% 36.4% 26.7% 22.0% 12.8% 24.7%Online Hours per Week 132 153 204 236 109 834 20 to 24 14.3% 20.1% 24.4% 23.7% 13.6% 19.3% 113 107 152 214 157 743 25 to 35 12.3% 14.1% 18.2% 21.5% 19.6% 17.2% 36 or more 172 117 164 215 352 1020 18.7% 15.4% 19.6% 21.6% 44.1% 23.7% Total 921 761 836 995 799 4312 100% 100% 100% 100% 100% 100% Count % within TV hours Source: Syncapse Corp. 2011 ©2011 Syncapse Corp. All rights reserved. 5
  6. 6. ATTENTION SPANS SHRINKResearch also shows that consumers are not fully engaged whenwatching television. When asked about their activity duringpopular television shows, half admitted that they had only paidpartial attention to the Super Bowl, while other top rated weekly Only 47% of allprograms captured significantly less attention. For example, only47% gave Grey’s Anatomy their full attention and less than one those watchingin three paid full attention to The Biggest Loser. At the same time,new technologies such as PVRs and time-shifting are creating Grey’s Anatomyeven greater pressure on television and making it increasinglydifficult for brands to capture mindshare though traditional give it their fullbroadcast media strategies. attention. Television Show % who had % who had full attention some attention Superbowl 50.8% 49.2% Glee 45.3% 54.7% America 40.2% 59.8% NCIS 57.5% 42.5% Big Bang Theory 55.3% 44.7% Grey’s Anatomy 47.5% 52.5% The Office 38.6% 61.4% Modern Family 45.2% 54.8% Bones 49.9% 50.1% The Biggest Loser 31.1% 68.9% Source: Syncapse Corp. 2011 ©2011 Syncapse Corp. All rights reserved. 6
  7. 7. SOCIAL NETWORKSGAIN MINDSHARESo what is pulling audience attention away from the television?Significantly, nearly 45% of respondents admit that they surfFacebook while watching their favourite shows. This is especiallyevident among those that both watch high levels of television Nearly 45% ofand spend a significant amount of time online: 52% of thisaudience segment multi-task between television and Facebook consumers surfversus almost 40% of those with lower consumption of televisionand online content. Facebook while watching TV.How much, if at all, does each of the following statements describe you?You often watch TV and surf Facebook at the same time. Frequency Valid Percent Describes you 891 21.3% completely Describes you 986 23.5% somewhat VALID Does not describe 2312 55.2% you at all Total 4189 100.0% Source: Syncapse Corp. 2011The message for marketing and brand managers is that social networks are commandingincreasing levels of consumer attention. And given that social network participation tends todemand a greater level of active involvement (as opposed to passively watching television),one can infer that even those that split their time are generally more absorbed in their socialnetworking activities than television.This research suggests that consumer brands can achieve a greater number of impressions –and a larger share of the audience attention – by integrating social media initiatives into theiradvertising strategies. And while neither television nor social networks command completeaudience attention, it is clear from the data that marketing teams who effectively combineboth stand to gain greater mindshare within their target audience. ©2011 Syncapse Corp. All rights reserved. 7
  8. 8. RECOMMENDATIONSRULE THE NETWORKIt goes without saying that positive recommendations fromtrusted sources can provide a substantial lift to a brand’sreputation and a consumer’s likelihood to purchase. Thisdata demonstrates that social media forums are gaining Blog postssignificant traction as a source of trusted recommendations.In our study, an equal number (61%) of respondentssuggested that they were just as likely to take a positiverecommendation from blogs as they were from television. influence theBut the most trusted source for recommendations isfriends and family, with 84% of respondents saying that purchasing decisiona positive recommendation from this group influencestheir purchasing decision. And since most of those trustedconnections now participate together in social networks, it of 61%is not surprising that almost 40% specifically cite Facebookas a source of trusted recommendations. Medium % who say a positive recommendation would make a difference Friends & Family 84.0% TV Coverage 61.6% Websites or Blogs 61.3% Facebook 39.3% Twitter 15.9% Source: Syncapse Corp. 2011 ©2011 Syncapse Corp. All rights reserved. 8
  9. 9. TARGET PRODUCERSTO DRIVE IMPACTOne segment of this audience demands particularattention from marketers: the Producers. Characterised bytheir multi-channelled use of social networking vehicles,Producers tend to check Facebook on a regular basis, Positivepost updates and comments onto their friends’ and recommendationsfamily’s Walls, maintain active blogs and regularly tweet.In fact, half of all Producers tweet weekly or several times from Producers isa week, and 42% tweet on a daily basis. At the sametime, a whopping 82% of Producer respondents said they equivalent to $22.93were regular or frequent bloggers. Producers are also in earned media valuemore likely to post to brand pages or become fans ofbrands on Facebook.In fact, Producers offer marketers a substantial earned media value (EMV), as theirengagement with the brand has the capacity to disseminate messages and recommendationsacross a wide and diverse network through blogging, tweeting and fanning brand sites. Infact, it is possible – by virtue of publishing in multiple locations as is the case with blogs thatare tweeted and shared through Facebook – for Producers to garner 2,000 impressions witha single recommendation.At the same time, marketers must be cognizant that the same Producer influence can bebrought to bare for negative recommendations: Producers who become net detractors forbrands carry equal weight to those who are net promoters. For marketers, it becomes acutelyimportant to not only identify Producers, but also effectively manage the relationshipto mitigate negative impressions.The following chart demonstrates the EMV of the various audience segments based onconservative monetisation models*.Probable earned media value per recommendation. Abstainer Lurker Participant Engager Producer $0 $1.07 $1.94 $4.48 $22.93 Source: Syncapse Corp. 2011* Earned Media Value is based on number of probable impressions generated given a set of reported activity. For instance, 11% ofProducers with a Smartphone post four or more times to Facebook a day, which can generate several hundred impressions in return. Ablog post may also be indexed or curated (through online services such as Reddit or HN), thereby generating thousands of additionalimpressions. ©2011 Syncapse Corp. All rights reserved. 9
  10. 10. SOCIAL DRIVESPURCHASE BEHAVIOURBased on these findings, it is clear that Producers provide incremental benefits from an EMVperspective, but they can also directly impact the brand’s bottom line as consumers.Simply put, Producers tend to spend more on brandsthey recognize than their peers. To demonstrate thisrelationship, respondents were asked about theirimpression, likelihood to recommend, and spending Producers spendpatterns for a list of known brands in two maincategories: beer and mobile devices. $10.76 more on mobile devicesIn the beer category, the data found that respondentsfrom the Producer audience segment spend – on and $14.56average - $14.56 more per month than their peers inother segments, representing a 40% increase over the more per monthmonthly spend reported by all other respondents. Thisfinding takes into account the fact that Producers tend to on beer thanbe younger than the average respondent (and thereforemore likely to consume greater quantities of beer), and average consumers.somewhat more affluent (also a driver for buying premiumbeer brands)*.Looking at propensity to spend on mobile devices, Producers were also found to spend$10.76 more per month than other respondents to the survey. Again, these findings arecontrolled to account for the fact that Producers tend to use Smartphones (which carry ahigher data charge) and enjoy a higher household income (which directly relates to thesophistication of the device)*.However, no similar relationship was found to exist for television watchers. And while it isbroadly agreed that television viewing increases the number of positive impressions andenhances brand recognition, these findings demonstrate that – even after considering errorsrelated to self-reported TV hours – no statistically relevant correlation could be found betweenthe number of hours watching TV and increased spending on key brands.These findings demonstrate that social media initiatives directly impact the spending habits ofthe Producer segment in a more significant way than television advertising alone.* Observed co-linearities were found to be within tolerance. While other factors may enhance or diminish the claim, none werefound at the time of publishing. ©2011 Syncapse Corp. All rights reserved. 10
  11. 11. CREATING FANSAND DRIVING SALESAccording to research conducted on behalf ofSyncapse in 2010, Facebook fans spend, onaverage, $71.84 more on products for which theyare fans compared to those who are not fans. Thesame study also demonstrated that fans were 41% 89% of Engagersmore likely to recommend a fanned product thannon-fans. and 94% ofThis most recent study found that – across all Producers post onaudience segments – a substantial 15% hadalready ‘liked’ or ‘fanned’ one of the 33 brands brand Facebookidentified in the survey. Looking closely at thesenumbers, however, respondents who werecategorised as Lurkers and Participants unanimously (100%) reported that they either neverpost on brand sites, or did so infrequently. Conversely, 89% of the Engager segment and94% of the Producer segment said that they post to brand sites once a month or more, andmore than half of the Producers admitted to posting on brand sites several times a week.How often do you post to Facebook brand pages Engager Producer Never to less than once 101 30 a month 11.3% 6.1%% within Producer/Engager 1 to 4 times a month 579 203 64.7% 41.2% Several times a day 215 260 to several times a week 24.0% 52.7% Total 895 493 100% 100% Source: Syncapse Corp. 2011Given their reach and influence, serious attention must be placed on creating brand fans,particularly within the Engager and Producer groups. ©2011 Syncapse Corp. All rights reserved. 11
  12. 12. EVOLVING THESOCIAL MEDIA AUDIENCEBut converting Engagers and Producers into fans is only half thejob. Brand managers can also enhance the value of their socialnetwork initiatives by helping to evolve Lurkers and Participantsinto Engagers and Producers. 74% of theThis study shows that a consumer’s likelihood to accept Producer segmentrecommendations from sources such as Facebook, Twitter andblogs dramatically increases as individuals become more active are influencedin online and social network forums. As can be expected, those by Facebookthat are classified as Abstainer are extremely unlikely (7 percent)to take Facebook recommendations, versus almost a quarter ofLurkers and 42% of Participants. As consumers mature in theirsocial media activity to become Engagers and Producers(which describes almost40% of respondents), these numbers skyrocket to 56% and 74% respectively.A growing number of marketing and brand managers are leveraging innovative softwaresolutions to identify Engagers and Producers and efficiently prioritise and measure theirrelationships. The Syncapse Platform™, for example, has connected brands with millions ofhigh-value consumers globally and has delivered tens of millions of dollars in earned mediavalue in the process. And by utilising the Syncapse Platform to build, manage and measuretheir digital customer relationships, marketers are increasingly able to respond to theseimportant audience segments ahead of their competitors and increase the impact and EMV ofthese influential groups.% who say a positive recommendation from each source would makea difference in final purchase decision. Abstainer Lurker Participant Engager Producer Friends or Family 83.7% 81.7% 85.1% 83.9% 88.2% Online message boards 29.6% 34.8% 41.7% 49.1% 74.2% Coverage on TV 64.7% 56.6% 56.5% 63.7% 74.4% Website and Blogs 51.2% 53.9% 61.6% 66.4% 85.4% Facebook posts or comment 7.4% 22.1% 42.1% 56.4% 73.8% Twitter 7% 7.8% 8.6% 16.5% 58.7% Source: Syncapse Corp. 2011 ©2011 Syncapse Corp. All rights reserved. 12
  13. 13. CONCLUSIONSClearly, social media is capturing a significant amount of consumer mindshare. And sincemany consumers surf social networking sites while watching television, brands will quicklyfind that social must become a critical component of the marketing mix.But it is the coveted Producer segment of the population that represents the greatestopportunity for brands: 42% are frequent bloggers, more than 50% tweet at least once aweek, and almost 75% factor in Facebook recommendations when making a purchasingdecision. In effect, this group is worth $22.93 per recommendation in earned media valuefor brands that can successfully court them.Across all audience groups, almost 40% of respondents say that a positive recommendationfrom Facebook would make a difference in their purchasing decisions; 61% say the sameabout blogs.For marketing and brand managers, three important conclusions can be made fromthis research: Social media must be an integrated and incremental component of any marketing campaign; Heightened focus must be placed on interacting with social media Producers and turning them into fans; and Greater effort must be put towards evolving audiences to become Producers. ©2011 Syncapse Corp. All rights reserved. 13
  14. 14. METHODOLOGYThe quantitative research supporting this Syncapse study and analysis was conducted byHotspex Market Research between February 15th and 17th, 2011 using their online panel.More than 4,300 panellists responded across North America representing a broad varietyof demographics, household incomes and social media utilization. Approximately threequarters of respondents identified their country of residence as the United States and aquarter Canada.Respondents were asked to verify their familiarity with a number of popular brands in eachcategory in their marketplace and then to provide their impressions of each brand, as wellas their likelihood of repurchasing and recommending the brand to friends and family. Thesurvey went on to ascertain the respondent’s online, social media and traditional mediahabits, including their use of popular social media sites such as Facebook and Twitter.Syncapse analysed the data utilizing the Syncapse Platform™, a proprietary global solutionfor understanding social media value and business drivers.The market segmentation definitions and composition contained herein are based solely onSyncapse research. The authors would like to acknowledge the groundbreaking work ofForrester Research in the area of Social Technographics®, details of which may be found at ©2011 Syncapse Corp. All rights reserved. 14
  15. 15. ABOUTSYNCAPSEFounded in 2007, Syncapse Corp. has quickly become a global technology leader in socialmedia management by delivering solutions that empower brands and agencies to build,manage and measure their digital customer relationships. A member of Facebook’s PreferredDeveloper Consultant program, the Syncapse Platform has connected brands with millionsof consumers globally, delivered tens of millions of dollars in earned media value and hasbeen recognized as one of the top social technology providers for brand marketers. In 2010,Syncapse was named to the ranking of PROFIT Magazine’s HOT 50 Emerging GrowthCompanies, a member of Deloitte’s Tech Fast 50 Companies-to-Watch, winner in the EmergingEntrepreneur category in the Ernst & Young Entrepreneur of the Year® Awards and one ofNorth America’s 50 Most Engaged Workplaces.Syncapse™ and Syncapse Platform™ are trademarks of Syncapse Corp. in theUnited States and/or other countries.To learn more visit syncapse.comContact ©2011 Syncapse Corp. All rights reserved. 15