What is the Value of Social Media?


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How to get the most out of social media.

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What is the Value of Social Media?

  1. 1. Twitter: @BradleyJLittle The Value of Social Media Getting Down to Business September 15, 2010
  2. 2. “Advancing Social Media Intelligence”▪ Jointly owned by Nielsen and McKinsey; co-developing unique software, metrics, and analytic services Trusted Data▪ Market leader in enterprise social Metrics & KPIs Insights media monitoring/analytics (Source: Forrester)▪ Dataset: Billions of social media conversations per year across 145 million blogs, message boards and social networks Strategic Consulting Process and Organization▪ Global: 13 markets now ; 20 by EOY Digital Marketing 2010; over 150 clients globally▪ Quality is highest in the industry (source: Microsoft)▪ Proprietary technology for analyzing social media
  3. 3. Built to deliver trusted insightsWorld’s largest content reservoir Slice wisely for relevant, actionable insights Social Analytics Networks Relevance Proprietary Data Local, full- time researchers Blogs Boards Groups Harvesting Cleaning Control the harvest to ensure quality inputs Filter the noise to focus on what matters 3
  4. 4. What do we deliver? Client Dashboard Tools & API Analyst Research Reports & Strategic Services Use It For: Use It For:  At a glance brand metrics • Longitudinal brand tracking  Self-service brand monitoring • Adjusting key launches, events  Analyst-Grade research tool • Deeper, brand Insights  Integration with other • Informing strategy applications All of the above supported by our local Social Media Analysts and/or Digital Strategic Services Consultants
  5. 5. 5
  6. 6. The “new” purchase funnel Expression 6
  7. 7. Abundance of buzz sources Social media (“buzz”) refers to public, online conversations More than 2/3 of Globally consumers global consumers 41% of Facebook spend 6 hours a use online product users in MENA are month on Facebook reviews to make over 30 years old purchase decisions More than 60% of >35% of consumers consumers have rely on peer visited a recommendations consumer-driven and WOM to make website purchase decisionsSOURCE: Nielsen 7
  8. 8. Increasingly relevant for brands “This product made my hair frizzy, dry and “I love this shampoo. I went through a phase worst of all, led to...HAIR LOSS! Totally not in my life where I dyed my hair every color worth it. I will go back to my old shampoo under the sun. This caused my hair to and conditioner.” become dry and damaged. No matter what product I used nothing helped. Then this beauty came into my life and my hair is wonderful! I suggest this to anyone with of online discussion dryness, split ends, or frizz.” 26% mentions brandsSOURCE: NM Incite 8
  9. 9. Amplified impact on businessCase example: TV buzz (US) 9
  10. 10. Social media drives intent… Net sentiment and change in purchase intent from buzz exposure (case example) Large increase in intent A Brand A had a 15% Difference in lift in purchase intent B intent vs. 3% for Brand E between exposed and control E D No increase C in intent Net sentiment Less positive buzz More positive buzzSOURCE: NM Incite 10
  11. 11. …and influences sales Online word-of-mouth influence on purchases (European example) Percent of sales influenced Electronics and computer equipment Beauty care and clothes Word-of-mouth is the primary factor behind Finance products/services of all purchasing decisions Telecom services Travel & EntertainmentSOURCE: McKinsey 11
  12. 12. Impact spans beyond marketing and sales Measurable impact of using social media and other web 2.0 technologies Percent of companies Increasing marketing effectiveness (e.g., awareness, consideration, conversion, loyalty) Increasing customer satisfaction Reducing marketing costs Reducing customer support costs Reducing travel costs Increasing revenue Reducing time to market for products/services Increasing number of successful product/service innovationsSOURCE: McKinsey Global Institute 12
  13. 13. 13
  14. 14. Challenges to social media strategy 14
  15. 15. Relevance: buzz can be messy What people tweet of tweets have ~50% “useless” information ...but cutting through this messiness is where the value and your advantage lies. In a word: Unprompted!SOURCE: Nielsen, Google Trends, Mashable 15
  16. 16. Reach and impact: marketing effectivenessWeekly buzz volume and reach Campaign Reach Volume 4/18/10 5/2/10 5/16/10
  17. 17. Advocacy: measuring influentialsThatKevinSmith twitter account Southwest Airlines twitter account1.6 million followers 1.0 million followers Kevin Smith twitpic caption: Hey @SouthwestAir! Look how fat I am on your plane! Quick! Throw me off! 17
  18. 18. Challenges of social media measurementRelevance Reach and impact Advocacy▪ Identifying relevant ▪ Measuring the full ▪ Identifying information reach of social media “influencers” and and its influence measuring influence▪ Determining the right scope for your ▪ Quantifying the ▪ Determining the brand/product business impact impact of online category (marketing ROI) advocacy and criticism 18
  19. 19. Organizing for social media transformation Product development Marketing Customer care Defensive branding 19
  20. 20. How do we get there? 20
  21. 21. It’s as global as the World Cup6
  22. 22. And Paul the octopus Paul the octopus generated more buzz than all players combined
  23. 23. How about the 2022 bid in Qatar? D A B C• •A Thebid for the 2022Qatar’s Cup submission of it’s Buzz is around World official C The Buzz revolves around China desire to bid for 2026 World Cup• • The Buzz is driven by Australia withdrawal of 2018B World Cup Bid D The Buzz spike isin Qatar by the arrival of FIFA inspection team generated
  24. 24. What is the Arab world saying about the bid? A• Comment underlining Qatar“ capability to host the 2022 World Cup ”http://vb.alarabi.qa, July 28, 2010 “ B• Comment praising Qatar infrastructure and rapid development C• Comment on the quality of the http://www.z5z5z.com, September 10, 2010 stadium and interest in the soccer by the Qatari “ population. ” http://www.kanzalarb.com, September 15, 2010
  25. 25. There is value in Sales/Marketing, but there is so much more! R&D/Insight Sale/Marketing PR/Comms Service ▪ Customer Insight ▪ Brand Strengths ▪ Threats ▪ Feedback ▪ New Product Dev ▪ Bottlenecks ▪ Investors ▪ Engage ▪ Demand Forecasting ▪ Marketing Mix ▪ Reputation ▪ Advocacy ▪ Packaging ▪ Influence ▪ New Launch Tracking How can we use social to extract maximum value for the company? How can we use social to transform the organization?
  26. 26. New Product Development “I LOVE fun food” “I hate it when my refrigerator is without…” “…when I’m eating in “I wish I could find…” my car.” “Mornings are IMPOSSIBLE Brand without my…” “We will be focusing on developing several Centric concepts out of this work for further testing.” - NPD Group, KraftIllustrative Verbatim
  27. 27. Asking vs. ListeningSurvey Social media analysisAttributes tested in survey questions Associated Online AttributesPercent agreeing strongly Relative scoreEnvironmentally Organic 42 68friendly Diaper rash 28Cost effective 40 Home schooling 24 Home birthing 16Healthier 25 Flushable 10More comfortable 18 Cheaper 8 Cost 4Fit well 13 Environmentally 2 friendlySurvey indicates 68% of consumers believe "envi- In authentic, online conversations, "organic" andronmentally friendly" is most important, however avoiding "diaper rash" are most associated conceptsunprompted consumer feedback ranks it last and attributes
  28. 28. Increasing customer lifetime value by improving service experience3.53.02.5 BT or2.0 British Telecom1.51.00.5 15 26 10 24 07 21 5 19 02 16 30 13 27 11 25 08 22 06 20 03 17 31 14 28 14 28 11 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2009 2010 Trended Sentiment Score
  29. 29. The Consumer Experience Twitter – @BTCare BT.com/help BT.com Community Forums You Tube BTCare Channel BT.com Community ForumsMobile Live Chat UK Consumer and Technical Forums
  30. 30. We can help!Let us help you harness the power of social media intelligence anddrive smarter and more efficient decisions across your organization. Brad Little Head of NM Incite, EMEA 189 Shaftsbury Avenue London, WC2H 8TJ United Kingdom +44 (0)20 7014 0590 brad.little@nmincite.com Twitter: @bradleyjlittle