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How Social Media Influences Consumer Behavior

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Here are the slides from my DLD talk this morning with Linda Abraham, CMO and cofounder of comScore.

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How Social Media Influences Consumer Behavior

  1. 1. How Social Media Influences Consumer BehaviorMichael Lazerow, CEO & Founder, Buddy MediaLinda Abraham, CMO & Co-Founder, comScore
  2. 2. 1 Nearly in 5 minutes online is spent on social networks. 2008 2009 2010 201135 Social Networking30 Search/Navigation Retail25 Communications (Email/IM) Other ContentTime Spent on Key Categories OnlineWorldwide Hours per Month (Billions) Source: comScore Media Metrix, March 2007 - October 2011
  3. 3. #3 Facebook’s worldwide site rank 55% Facebook’s global penetration 3 in 4 minutes on social networking sites are spent on Facebook1 in 7 minutes spent online are spent on Facebook Source: comScore Media Metrix, October 2011
  4. 4. Propel Crowd-Sources Its Holiday Content © comScore, Inc. Proprietary. 4
  5. 5. Lexus Uses Facebook To Raise Money For Charity © comScore, Inc. Proprietary. 5
  6. 6. Walmart Provides Gift Recommendations From Friends © comScore, Inc. Proprietary. 6
  7. 7. Best Buy And Leading Retailers Made Effective Use Of Facebook ToPromote Their Black Friday Doorbusters © comScore, Inc. Proprietary. 7
  8. 8. The Fan Page Is A Great Starting Point… But Remember ThatMost Brand Exposures Happen On The News Feed! 25% 10% 27% Homepage/Newsfeed Profiles 17% Photos Apps/Tools 21% All Other Share of Time Spent on Facebook Source: comScore Mediabuilder, U.S., © comScore, Inc. Proprietary. 8 May 2011
  9. 9. You’ve got fans. And they’ve got friends.How can you measure the impact on both?
  10. 10. Those you seek might be different than those who seek you Starbucks: Demographic Analysis % of Starbucks Store Visitors vs. % of Brand-Exposed Starbucks Facebook Fans Age 18-24 31% 20% Age 25-34 29% 26% Age 35-44 19% 20% Age 45-54 15% 19% Age 55-64 5% 10% Age 65+ 2% 5% % of Starbucks Fans % of Starbucks Store Visitors © comScore, Inc. Proprietary. 10 Source: comScore Social Essentials and comScore Plan Metrix, U.S., May 2011
  11. 11. Brands control the three basic levers that willdetermine social media marketing success. Many brands don’t consider these intermediary steps Brand Fans “Talk News Feed Goal: MaxGet Fans Messages About” Content (Who are Reach Fans News Feed Spreads to Reach, R they?) OI in News Feed Content Friends 1. Cut-Through 2. Engagement 3. Amplification
  12. 12. Earned Value Can Be Significant Walmart: Paid Media vs. Earned Media Analysis Social Media Impressions (MM) vs. Display Ad Impressions (MM) Estimated Value of Earned Impressions 275.4 Based on $3.55 CPM $417,000 117.3 Walmart Earned Impressions (MM) Paid Impressions (MM) Source: comScore Social Essentials, U.S., © comScore, Inc. Proprietary. 12 October 2011
  13. 13. When Messages Are Good, Fans Will Tell Their Friends 2011 Holiday Retail Promotion Analysis Ratio of Friends of Fans Reached to Fans Reached for Leading U.S. Retailers 3.5x 3.4x Lift from Promotions 1.76 1.53 2.7x 2.2x 0.92 0.67 0.50 0.45 0.31 0.34 Amazon Best Buy Target Walmart Week Ending Oct. 19 Week Ending Nov. 30 Source: comScore Social Essentials, U.S., © comScore, Inc. Proprietary. 13 October and November 2011
  14. 14. Friends of Fans Tend to Behave Like Fans(Birds of a Feather) 2011 Holiday Retail Promotion Impact Analysis: Week Ending Nov. 30 Percentage of Brand-Exposed Fans & Friends of Fans Who Visited Retailer Website 64% 36% 27% 22% 21% 18% 13% 12% 12% 14% 8% 9% Amazon Best Buy Target Walmart Total Internet Friend of Fan Fan Source: comScore Social Essentials, U.S., © comScore, Inc. Proprietary. 14 November 2011
  15. 15. In Retail, Social Promise is Delivering Black Friday: Web Traffic Analysis for Leading Retailers Unique Visitors (MM) on Black Friday 2011 vs. Black Friday 2010 61% 14.5 32% 61% 9.6 11% 9.0 7.3 6.6 4.6 5.1 4.1 Amazon Walmart Best Buy Target Black Friday 2010 Black Friday 2011 Source: comScore Social Essentials, U.S., November 2011 © comScore, Inc. Proprietary. 15
  16. 16. So remember, to optimize social media 1. know your fans 2. know their friends 3. right creative message 4. analyze, optimize, …monetize
  17. 17. Thank You!Questions? Contactmichael@buddymedia.comlabraham@comscore.comFollow our presenters on Twitter:@Linda_Abraham | @lazerow

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