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Dynamic Logic Ad Reaction Abridged 2010
- 1. Brands + Consumers+of Presentation Title Social Media: What marketers should know about who’s getting social & why Date 2009 January 2010 @alirana
- 2. What a difference2 years makes… - 2007 - - 2009 - Dow Jones Index 13,371 350M Consumer Confidence Index** 87.3 116.1M US Television Ad Spending* $67.8B $24.5B 18M Global Ad Spending* $482.7B $438.9B Facebook Users^ 50M US Blog Readers* 94.1M 10,344 US Online Ad Spending* $21.2B 49.5 Twitter Users* 0 $66.9B *eMarketer, ** Conference Board , ^Facebook 2
- 3. With 59% ofonline users actively participating, social media presents marketers with the opportunity to reach engaged consumers Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2,000 U.S. respondents Q: Please indicate how involved you are in the following online activities. Base (2,000) 3
- 4. About AdReaction • Recurring survey conducted by Dynamic Logic aimed to measure consumer opinions and perceptions of various types and formats of advertising • 2009's study, our 6th installment, focuses on the social media realm: – Consumers’ relationship with social media in general – Reactions to advertising on social media sites – Exploration into the types or segments of consumers who participate – Implications for Marketers • Methodology/Details – 2,000 respondents from the Lightspeed Research panel that are representative of the Internet population – Data gathered end of Q3 2009 – Results were weighed based on site compositions of the top social networking sites*: Facebook, MySpace, Twitter, LinkedIn, Tagged and Flixster • Contributors: Sara Beaty, Katie Frey, Joe Gonzalez, Girish Lalla, Chris Murphy, Marie Ng, Ali Rana and Heather Stern *Source: Compete Ranks Social Network Sites Based on Monthly Visits 4
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- 6. Audiences of allages are now involved in social media AdReaction Ingredients Overall Sample Size 2,000 US Internet Users Who’s getting social? Ages 13-17: 87% of -* all 13-17 respondents Ages 18-34: 94% of 24% all 18-34 respondents more visitation than AdReaction 2007 Ages 35-44: 78% of 28% all 35-44 respondents more visitation than AdReaction 2007 Ages 45-54: 67% of 56% all 45-54 respondents more visitation than AdReaction 2007 150% Ages 55+: 55% of all 55+ respondents more visitation than AdReaction 2007 Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2,000 U.S. respondents *Teens not included in AdReaction 2007 survey 6
- 7. Facebook is themost frequented but most users still are members of multiple sites • Majority of users are members of two or more sites • Among our sample, Facebook is the most frequented Sites Visited Membership by # of Sites 28% 28% 2% 4% 13% 25% 1 Site 2 Sites 3 Sites 4 Sites 5+ Sites Non-members Base (2,000) Q: Have you heard of the following sites? (based on “I’ve visited” & “I’m a member” responses) 7
- 8. Not surprisingly, MySpacehas the most tenured member base, while Twitter's is the newest • 83% of Twitter members joined during the past year Site Tenure <6 Months 6 Month - 11 months 1+ years(s) 13% 34% 33% 14% 58% 19% 25% 72% 25% 48% 40% 17% Base (1150) Base (906) Base (397) Base (254) Q. How long have you been visiting the following site(s)? 8
- 9. Facebook and Twitterare experiencing the largest growth in site usage • Over half of Facebook members say they are using it more often now than they were 6 months ago • 30% of those that considered MySpace their primary site 6 months ago, now list Facebook as their site of choice Changes in Site Usage Base (1150) Base (906) Base (397) Base (254) Q. In the last six months, how has your usage of the following site(s) changed, if at all? 9
- 10. Under control... fornow: So far, advertising isn’t the main reason for people switching their primary site Majority of people who switched their primary site in the past 6 months did so in order to join their friends • However, 8% claim to have switched due to advertising overload Reasons People Switch Base (367) Q: Why did you switch to a new site? (Check all that apply) – Asked among respondents whose current site did not match what they claimed to be their primary site 6 months ago 10
- 11. Opinions of advertisingacross traditional media have decreased over the past 2 years; however, digital (online & mobile) remains the same Q: How would you characterize your attitude towards each of the following types of advertising? AdReaction 2007 Top 2 Box Score AdReaction 2009 50 TV 47 53 Magazine 45 56 Newspaper 42 43 Radio 35 39 Cinema 37 48 Outdoor 39 1 in 4 are favorable towards online 27 Product Placement 28 advertising, same as 24 24 2 years ago Online 30 29 Direct Mail Source: Dynamic Logic’s AdReaction 6 11 10 Study, December 2009; n=2000 U.S. Mobile respondents; Dynamic Logic’s AdReaction 5 Study, October 2007; 6 Telemarketing 6 n=933 U.S. respondents 11
- 12. Opinions of socialmedia advertising are on par with online ads overall, including online video Question: How would you characterize your attitude towards each of the following types of online advertising? (Top 2 Box) Online: 24% Social Media/ (same in 2007) Networking: 22%* Online Online Video: 22% Search: 24% (up from 18% in 2007) (26% in 2007) Opt-in Advergames: e-mail: 32% 17% (33% in2007) (20% in2007) Non-opt-in e-mail: 8% (7% in 2007) Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2000 U.S. respondents; Dynamic Logic’s AdReaction 5 Study, October 2007; n=933 U.S. respondents * Not measured in 2007 12
- 13. No Joke: Funnyads are most remembered but relevance is key – something social media is good at Celebrities Informative Funny Shocking or Relevant to me unexpected Source: Dynamic Logic’s AdReaction 6 Study, December 2009; n=2,000 U.S. respondents; Question. Thinking about advertising in general, what types of ads do you remember? 13
- 14. Almost ¾ ofsocial media users would be willing to tolerate more advertising on the sites they visit in exchange for continued free access Advertising Tolerance by Members Less Tolerant More Tolerant (Bottom 2 Box) (Top 2 Box) 5 24 48 22 Not willing to accept (1,150) more Would stop using 8 20 46 24 this site (397) Not willing but will tolerate 7 23 49 21 Willing to accept (906) more 6 25 44 24 (254) 11 22 33 34 (72) Q: Thinking about the site(s) that you visit, how willing would you be to accept more advertising on the site(s) in 10 16 39 34 order to keep it free? (135) 14
- 15. Facebook has thehighest recall of advertising on its site – much higher than typically seen within MarketNorms Q: Have you noticed advertising on the following social networking site(s)? Noticed advertising (I have seen) Base (1343) (1229) * Note: Dynamic Logic MarketNorms data for Online Ad Awareness based on 112 in-market campaigns on Social Media. 15 Facebook & MySpace numbers are based on recall from AdReaction study.
- 16. Lets look alittle deeper 16
- 17. Twitter is considerednew, different and growing, while Facebook is cementing its base Is A Site For Someone Like Me Makes Me Feel Connected With People Is Cool Is Easy To Use Has Most Of My Friends As Members I Can Trust This Site With My Personal Information Is Innovative And Forward Thinking Listens To Member Feedback Offers Something Different Gives Me Access To A Wealth Of Information Is Becoming More Popular Base (1971) (1965) (1946) (849) Q. For each of the following statements below, choose which site the statement best describes. You may select more than one site for each statement. 17
- 18. Twitter is usedas an information digestion platform while Facebook appears to be more nostalgic in nature Since joining (site) I… % % % % Am able to keep in touch with distant family members Am concerned about how much of my information is being shared with others Am more productive at work Feel more connected to old acquaintances Feel more informed about current events Feel more informed about political issues Feel more informed about pop culture Base (Primary Site) (927) (482) (93) (81) Q: How much do you agree or disagree with the statements below? Since joining (site) I… (Yes Definitely/Somewhat) 18
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- 20. Among those whofollow brands, retail is the most popular category, followed by CPG and Tech • 13% of users leverage social networks to follow brands Retail CPG Technology Sports Restaurants Travel Composite Scores Banks/Finance Retail: Retail stores, Online shopping sites or Quick Service Fashion/Designers Restaurants CPG: Food or Drink products/brands Auto Technology: Technology or Telecommunication companies Base (158) Travel: Airlines & Hotels Question: What types of companies or brands do you follow or keep up with via social networks? (Check all that apply) 20
- 21. What’s their motive? “Infoabout new products” and “sales/discounts” are paramount across all three verticals CPG Retail Technology % % % Info about new products Company news Sales/Discounts Sharing thoughts/ideas Contests and giveaways Reading people’s responses Like the brand Q: Please select any of the following reasons you choose to follow brands or companies on social networking sites. (Check all that apply) 21
- 22. A quick lookat our segmentation
- 23. A Social MediaSegmentation We developed a segmentation to gain a deeper understanding of different types of social media usage • Cluster Criteria: – Social Media Tenure & Frequency – Social Media Activities – Relationship with brands on social media – General attitudes toward social media • Using the cluster criteria above, a segmentation was run on social media users, ages 18 and up, creating four key segments: Fanatics, Virtual Voyeurs, Taking Care of Business, and Late to the Party. • For additional insight into the younger social media users, we bundled results from Teens demographic, ages 13-17, and reported on this group separately from the segmentation scheme. 23
- 24. What kind ofsocial media user are you? Taking Care of Fanatics Virtual Voyeurs Late to the Party Teens* Business 26% 20% 19% 10% 25% • Most Enthusiastic • Watching more • Engaged & active • Oldest: 50% are 45+ • Youngest Group than contributing but enthusiasm • Engaged • Least tenured • Highly Entertained: slowing • Update status often group, 44% have 83% play games on • Highly Involved but least likely to only been on social media sites • Early adopters: • Ahead of times blog Facebook in the last 41% have been on • 51% upload video • Influencers 6 months Facebook 1+ years • 85% have never • Most likely on • Young: 67% are <34 written a • Don’t appear to be • More “corporate”: MySpace recommendation terribly tech savvy • 33% online 30+ LinkedIn • Least likely to pay hrs/wk • Highest income Online Bankers attention to brands • Print-detached (41% make $75k or High Income crowd more) • More middle-aged • Print lovers • Most likely to be female * Teens demo analyzed separately from other segments 24
- 25. Site Membership bySegment Site Membership Fanatics Taking Care of Virtual Late to the Teens Business Voyeurs Party Base (308) (232) (237) (114) (294) Q. Have you heard of the following sites? 25
- 26. Fanatics “I think any brand not taking part in social media is going to lose.” “I don’t think I would be where I am right now without social media.” I am enthusiastic and engaged with social media. I am heavily involved in all social media activities and visit social media sites frequently. I use Facebook and Twitter most often. I feel social media has had a significant impact on my life. I consider myself an influencer in terms of staying ahead of the times and like the fact that social media provides me with an outlet to voice my opinion and new ideas. Social media is fulfilling a need for the spotlight: • 92% say that they are interested in Heavy media users: 1 in 3 are online requests for their opinions & ideas. for 30+ hours per week They are the youngest: 2 in 3 are under 34 Most likely to be single Their enthusiasm isn’t waning … only 2% of them say they are using Facebook less today than they were 6 months ago. 26
- 27. “Obviously, there’s somethingwrong with Virtual Voyeurs me. I don’t have anything worth sharing with them. Other than posting this column now and then, I am mute. A voyeur, of sorts. A lurker in the cyber shadows.” - Craig Wilson, USA Today “I go to social media pages when someone sends me a message, but otherwise I kind of forget it exists.” I use social media to stay connected to friends/family. I don’t really consider myself an influencer per se but I like to see what others are saying online and so I read other people’s status and blog updates though don’t really write my own. I don’t necessarily feel more informed about news or event since I have joined social media sites but I enjoy it nonetheless. While they are not contributing, 82% 85% have never written a are going more than once a day to social networks. They are very active. recommendation Put the “social” in social media (primary reason for being on these sites is to keep They are being fed more than they up with family & friends). are feeding the system…watching more than contributing
- 28. Taking Care of Business “It's the main way I keep in touch with friends, locally and away from home. It's also how I find out about events in the area.” I am engaged with social media but I am not as enthusiastic as when I first joined. I have been participating in social media for a while and make sure to update my status often. I bank online and use LinkedIn a lot as well. Since using social media, I am a little more concerned with information security. Have a high income Early adopters; case in point - their Facebook duration – 41% have been there over a year (more than segment 3) Tend to use social media in a more practical way More middle age Most likely to visit LinkedIn 28
- 29. Late to the “Social media scares me … it’s a little Party more information than I need to know.” “I finally caved in and joined Facebook last month…it’s so much fun to find old friends from high school.” I am pretty new to social media. I still like to read paper and magazines in print format but figured with all the buzz around social media I should probably join to check it out. I recently joined Facebook. I don’t feel social media has changed my life very much but it does allow me to feel more connected to distant family members and old acquaintances. The oldest group, with about Highest income (41% make $75k or more) half over the age of 45 Don’t appear to be terribly tech savvy They don’t update their status This is the group that uses magazines the most Been there less than 6 months 29
- 30. “It's a loteasier to know what's going on in your Teens friends' lives, even if you don't talk to them often. But, it's superficial . You aren't actually communicating with them, it's more like occasionally stalking them. I prefer to talk to someone directly to know what's happening in their life and how they feel about it.” “I never pay attention to *brands on social media+. I only use the sites for social reasons.” I am new to social media – of course, this is not because I am "late to the party.” I use social media for many activities, but mostly for playing games and watching videos. I’m only on to keep in touch with my friends – I don’t really care about news networks or brands. These sites are highly entertaining and allow me to express my creative side. Most likely to be on MySpace Find Social Media extremely entertaining – 83% play games on social media sites and 51% upload video. 30
- 31. A look atsocial media tenure & frequency Fanatics (308) 2-4 times a day Virtual Voyeurs (237) Once a day Teens Frequency (294) Several times per week Taking Care of Business (232) Once a week Late to the Party Several times (114) per month Less than once a month Tenure Never Less 2-5 6-12 1-2 3 4+ Visited than 1 months months years years years month Q: How long have you been visiting the following site(s) & how often? 31
- 32. In Summary 32
- 33. In Summary • Favorability of advertising within social media is high – 22% for social compared to 22% for online video • Audience is moving to social media – 55% of respondents 55+ visit social media sites, compared to 22% in 2007 • Humor and Relevance is what makes ads memorable – The promise of relevance is high within social media • Maximize reach by advertising across social networks – Most of the audience continues to have memberships across multiple networks • There is a clear distinction between Facebook , MySpace and Twitter – Your advertising should take advantage of the strengths of these platforms • Not all social media users are alike – Understand how your target audience is interacting and using social media and then use it to engage them in a way that is relevant to them 33
- 34. Title of Presentation Followus on Twitter @dynamiclogic or join our mailing list at marketing@dynamiclogic.com Date 2009
- 35. Dynamic Logic istaking the lead on connecting the dots through a new integrated suite of solutions DLConnects™ Online Behavior Offline BRANDING Sales WOM / Buzz
- 36. DLConnects: Social DLConnects: Socialenables advertisers, agencies, brand and digital marketers, and publishers to gain deeper insight into their online advertising and social media campaigns by integrating social media data from a variety of sources. Facebook Twitter YouTube Sentiment Cross Media Site Fan Pages Activity Brand Pages Share Measurement Profiling MySpace Social Tie in with Messaging/ Blogger Music KPI’s Related Communities Online Product Outreach Sponsorship to Social Advertising Effectiveness Read the “DLConnects: Social” press announcement (January 26, 2010)
- 37. DLConnects: Social enablesclients to measure: SOCIAL AS PART OF MEDIA PLAN Twitter Measuring brand impact of Activity campaigns across social media platforms and broader online YouTube Facebook Brand campaigns Fan Pages Pages Comparisons to MarketNorms for planning and benchmarking Brand Impact Recommendations using cost- Blogger effectiveness analysis and link to Outreach Social Communities online and offline sales MySpace Music Sponsorship Custom metrics and analyses also available
- 38. DLConnects: Social enablesclients to measure: SOCIAL INSIGHTS FOR AD CAMPAIGNS Understand the holistic impact of an ad campaign through both Share of Brand branding and sentiment metrics Sentiment Sentiment Over Time Obtain deeper insight and context into the social media impact relative to their specific online and offline advertising investments by monitoring brand and competitive Site Competitor sentiment in the marketplace Brand Impact Sentiment Profiles Over Time Connect the dots by working with a single point of contact through Dynamic Logic Custom metrics and analyses also available For more information on social measurement, contact Ali Rana at alir@dynamiclogic.com or sales@dynamiclogic.com