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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 difference 2 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% of online 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
6. Audiences of all ages 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 the most 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, MySpace has 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 Twitter are 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... for now: 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 advertising across 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 social media 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: Funny ads 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 of social 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 the highest 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.
17. Twitter is considered new, 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 used as 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
20. Among those who follow 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?
“Info about 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
23. A Social Media Segmentation
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 of social 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 by Segment
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 something wrong 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 lot easier 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 at social 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
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
Follow us on Twitter @dynamiclogic or join our mailing list at
marketing@dynamiclogic.com
Date 2009
35. Dynamic Logic is taking 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: Social enables 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 enables clients 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 enables clients 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