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J A N U A R Y 1 9, 2 0 1 2




                             Measuring Social
                             Media Success




                                            Sponsored by:
Debra Aho Williamson
Principal Analyst

                                                   ©2012 eMarketer Inc.
What we’ll look at today…


   1) Why it’s important to get measurement
      right

   2) The four problems of measurement today

   3) Metrics for success: Three things all
      marketers should do

   4) How to take measurement to the next
      level


Twitter: #eMwebinar                           ©2012 eMarketer Inc.
What’s wrong with social media
 measurement? A snapshot


              11 social
                             “Not a single one of the
              measurement   vendors could help them
              vendors         justify the spend that
Big company                    they’d made in their
                              tools, much less their
                                social campaigns.”




                                               ©2012 eMarketer Inc.
The Importance of
Social Media
Measurement




                    ©2012 eMarketer Inc.
Marketers believe social media will
   bring a range of benefits …

   … if they can only unlock the key to success.




              “Global executives attribute 52% of their brand’s
             reputation to how social it is online today, up from
                            45% one year ago.”

          “They project that 65% of their brand’s reputation will
             come from its online sociability in three years.”
Source: Socializing Your Brand: A Brand’s Guide to Sociability, October 2011


                                                                               ©2012 eMarketer Inc.
Measurement and budget go hand in
      hand


      Marketers
      need proof
      that social
      media
      works, so
      they can feel
      comfortable
      continuing to
      invest.


Trial: organization does not have a process or guidelines for performing social marketing. Transition: organization has an informal process with a
few guidelines it sporadically performs. Strategic: organization has a formal process with thorough guidelines it routinely performs.



    Twitter: #eMwebinar                                                                                                                              ©2012 eMarketer Inc.
The                             Marketers’ Top Two Digital
rewards                           Marketing Challenges
can be
great, but              #1
                        Generating and
the risks               leveraging deep customer
are high.               insights is a necessity to
Accurately              compete effectively

measuring
social                  #2
media is a              Managing brand health and
                        reputation is harder when social
must.                   media plays an important role in
                        marketing


                        Source: McKinsey & Company “McKinsey Quarterly,” November 2011



             Image: fotographic1980 / FreeDigitalPhotos.net                         ©2012 eMarketer Inc.
Social Media
Measurement Today




                ©2012 eMarketer Inc.
Here’s what marketers say:


 Social media measurement is not very
  effective. Even though there are many ways to
  measure, concrete success metrics remain elusive.
 Fan count is still a top metric. 60% of marketers
  use friends, followers or “likes” as a success measure
  (Chief Marketer, 2011).

 The ROI question is unanswered. Return on
  investment is a top challenge of social media
  marketing, making budgeting difficult.
 We don’t know what tools to use. One tool or
  several?

Twitter: #eMwebinar                                   ©2012 eMarketer Inc.
Marketers in their own words


“I wish I could say there are many best
practices and case studies out there, but
right now we are still at the infancy stage
of defining a framework for social media
measurement.”

                                            “I don’t think anybody’s really cracked the
                                            code about how these types of online tools
                                            directly impact revenue or ROI.”

“We’d like to be able to say that because
we launched a Facebook sampling tab
we’ve increased our fan count and
increased sales by a certain
percentage, but we’re not in that place
yet to have those sorts of metrics.”


                                                                              ©2012 eMarketer Inc.
Only 13% of marketers say they are
‘very effective’ at measuring results




                                        ©2012 eMarketer Inc.
Marketers are more apt to count fans
and ‘likes’ than sales

                                  No change
                                  from 2010




                                    3 points
                                  lower than
                                     2010




                                       ©2012 eMarketer Inc.
Measuring
social
media
ROI is
frequently
cited as a
challenge




             ©2012 eMarketer Inc.
Marketers do not know what tools to use
to measure success




Twitter: #eMwebinar                 ©2012 eMarketer Inc.
TKTK
          How can social
          media marketers
          get to the metrics
          that matter?




Credit: jscreationzs / FreeDigitalPhotos.net
                                               ©2012 eMarketer Inc.
Measurement must move beyond the
basics and prove business value




     “We have gotten to the point where
     brands and companies are making
      decisions on whether to increase
  investment in a channel that is receiving
 a huge amount of consumer attention. It’s
   very important to start to move toward
   measuring in a better, more business-
            value-focused way.”


                                              ©2012 eMarketer Inc.
Three Things Every
Marketer Should Do




                 ©2012 eMarketer Inc.
1) Start measuring


            Don’t assume it’s impossible

       39% of worldwide retailers don’t measure
      social media marketing. (Economist Intelligence
      Unit, April 2011)
       36% of UK B2B marketers don’t measure.
      (PricewaterhouseCoopers, September 2011)
       6.9% of high-revenue companies worldwide*
      don’t measure. (CMO Club/Bazaarvoice, 2011)
                  * half of respondents worked for companies with $1 billion+ in sales




Image: nattavut / FreeDigitalPhotos.net

                                                                                         ©2012 eMarketer Inc.
The measurement landscape is
crowded—but navigable




                               ©2012 eMarketer Inc.
2) Don’t wait for the silver bullet




     Because businesses use social media for so many reasons
       and goals, there may never be a single success metric.

Twitter: #eMwebinar                                        ©2012 eMarketer Inc.
Every social media effort should start
with clear goals and KPIs

Experienced marketers use multiple metrics




                                             ©2012 eMarketer Inc.
3) Demand that your marketing partners
play a larger role

The days of recommending social as an
add-on without a clear set of goals are gone

             “The bigger consultancies and agencies—
             out of self-defense—will start to develop
             some pretty good methodologies and
             mental models for social performance and
             social ROI.”
             —Erik Huddleston, Dachis Group CTO




                                                  ©2012 eMarketer Inc.
Some are
already
stepping
up to the
challenge




            ©2012 eMarketer Inc.
How to Take
Measurement to the
Next Level




                 ©2012 eMarketer Inc.
Three goals for increasing measurement
sophistication in 2012

 It’s not the fans, it’s what you do with them.
  Understand who your brand followers are and how
  influential they can be on your behalf.
 Go beyond brand metrics. The more marketers
  can work toward understanding how social media
  impacts actual business, the better.
 Integrate social analytics and marketing
  analytics. Understand how social media can make
  other media spending more efficient, and how online
  buzz relates to overall marketing performance.


Twitter: #eMwebinar                                     ©2012 eMarketer Inc.
1) It’s not the fans, it’s what you do with
 them

Understand who
your brand
followers are
and how they
can be
influential on
your behalf.

Focus on
measuring
leads, sales and
revenue.

                                          ©2012 eMarketer Inc.
Only
28% of
marketers
track the
number of
people who
contribute
to a
brand’s
social
community



             ©2012 eMarketer Inc.
2) Track more than just brand metrics


 Awareness and engagement may be easier to
  measure, but social media can do more. Harder
  metrics can show social’s contribution to business results.
 Make sales an objective. Only 17% of marketers use
  sales or leads as a success metric. (Econsultancy/SEMPO)

  “Sales are what matter to our agents.
  You can only measure how many
  people or how many positive
  comments for so long before people
  start to question it, especially in this economy.”



                                                        ©2012 eMarketer Inc.
Case study: Measuring the impact of
buzz on CPG sales




Questions:

 How does an increase in positive online buzz impact CPG sales?
 How does negative buzz impact sales?
 How long can the effect be expected to last?

Methodology:
Gathered point-of-sale sales data and online buzz for two brands:
Lay’s chips and Skinny Cow ice cream



Twitter: #eMwebinar                                                 ©2012 eMarketer Inc.
Case study: Results




Finding #1:
Incremental sales increases correlate to the amount of online buzz

Finding #2:
An ad campaign can trigger online buzz, which in turn can cause a
sales surge

Next steps:
    Study campaigns with less social activity to determine the
   influence of buzz
    Incorporate ad campaign data to better filter out the impact of
   advertising vs. buzz


                                                                  ©2012 eMarketer Inc.
3) Integrate social analytics with other
analytics to help build future business




   Can buzz
   generate leads?



                          And save
                          money, too?


                                        ©2012 eMarketer Inc.
Jim Farley, Ford’s global marketing
chief:

    “We’re shifting the timing of our [ad]
    spend. Social media allows us to start to
    build a community months before a
    vehicle goes on sale. We learned this
    with the Fiesta Movement and we are
    continuing to perfect the model.”




       If a social campaign drives broad
       awareness “we can take the traditional
       media [spending] down a notch.”



                                                ©2012 eMarketer Inc.
Marketers
have an
opportunity
to integrate
social
analytics
just as
they have
integrated
social
media into
marketing


               ©2012 eMarketer Inc.
Key Takeaways




                ©2012 eMarketer Inc.
Getting to the metrics that matter


Social media measurement has evolved, but still doesn’t satisfy
most marketers. The effectiveness question remains top of mind.

Measurement and budget go hand in hand. Marketers need adequate
metrics to be able to determine budget allocations.

Marketers are still too reliant on counting what is easy to
measure. Counting fans and followers is fine as a basic benchmark
metric, but marketers must strive to understand what those hand-raisers do for
them.

Marketers must apply business-level analysis to social media
measurement. Understanding social media’s effect on a company’s bottom
line is critical. As SymphonyIRI and Ford have shown, it’s getting easier to
consider the relative influence of social media on lead generation and sales.



Twitter: #eMwebinar                                                      ©2012 eMarketer Inc.
CFO vs. CMO
Powerful Intelligence
For Social & Search Advertising
Real-Time Data So Marketers Can…
Prove ROI
Make Better Ad Decisions
Surface Customer Insights
Clickable 4.0 Workflow
 Ads Layer


  Insights         CompanyGraph ™



Data Layer



                       CRM



    Learn more: mkalehoff@clickable.com
Measuring Social Media Success
Questions & Answers
Registrants will receive an email tomorrow that includes a link to view
the deck and webinar recording.

For more discussion, please join us after the webinar on Twitter.

To learn about eMarketer Total Access please visit www.emarketer.com/products
or contact us: (800) 405-0844 or webinars@emarketer.com



                  Presented by:                                     Sponsored by:
                  Debra Aho Williamson
                  Principal Analyst, eMarketer, Inc.



                           Twitter Hashtag: #eMwebinar
                                                                             ©2011 eMarketer Inc.

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eMarketer Webinar: Measuring Social Media Success

  • 1. J A N U A R Y 1 9, 2 0 1 2 Measuring Social Media Success Sponsored by: Debra Aho Williamson Principal Analyst ©2012 eMarketer Inc.
  • 2. What we’ll look at today… 1) Why it’s important to get measurement right 2) The four problems of measurement today 3) Metrics for success: Three things all marketers should do 4) How to take measurement to the next level Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 3. What’s wrong with social media measurement? A snapshot 11 social “Not a single one of the measurement vendors could help them vendors justify the spend that Big company they’d made in their tools, much less their social campaigns.” ©2012 eMarketer Inc.
  • 4. The Importance of Social Media Measurement ©2012 eMarketer Inc.
  • 5. Marketers believe social media will bring a range of benefits … … if they can only unlock the key to success. “Global executives attribute 52% of their brand’s reputation to how social it is online today, up from 45% one year ago.” “They project that 65% of their brand’s reputation will come from its online sociability in three years.” Source: Socializing Your Brand: A Brand’s Guide to Sociability, October 2011 ©2012 eMarketer Inc.
  • 6. Measurement and budget go hand in hand Marketers need proof that social media works, so they can feel comfortable continuing to invest. Trial: organization does not have a process or guidelines for performing social marketing. Transition: organization has an informal process with a few guidelines it sporadically performs. Strategic: organization has a formal process with thorough guidelines it routinely performs. Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 7. The Marketers’ Top Two Digital rewards Marketing Challenges can be great, but #1 Generating and the risks leveraging deep customer are high. insights is a necessity to Accurately compete effectively measuring social #2 media is a Managing brand health and reputation is harder when social must. media plays an important role in marketing Source: McKinsey & Company “McKinsey Quarterly,” November 2011 Image: fotographic1980 / FreeDigitalPhotos.net ©2012 eMarketer Inc.
  • 8. Social Media Measurement Today ©2012 eMarketer Inc.
  • 9. Here’s what marketers say:  Social media measurement is not very effective. Even though there are many ways to measure, concrete success metrics remain elusive.  Fan count is still a top metric. 60% of marketers use friends, followers or “likes” as a success measure (Chief Marketer, 2011).  The ROI question is unanswered. Return on investment is a top challenge of social media marketing, making budgeting difficult.  We don’t know what tools to use. One tool or several? Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 10. Marketers in their own words “I wish I could say there are many best practices and case studies out there, but right now we are still at the infancy stage of defining a framework for social media measurement.” “I don’t think anybody’s really cracked the code about how these types of online tools directly impact revenue or ROI.” “We’d like to be able to say that because we launched a Facebook sampling tab we’ve increased our fan count and increased sales by a certain percentage, but we’re not in that place yet to have those sorts of metrics.” ©2012 eMarketer Inc.
  • 11. Only 13% of marketers say they are ‘very effective’ at measuring results ©2012 eMarketer Inc.
  • 12. Marketers are more apt to count fans and ‘likes’ than sales No change from 2010 3 points lower than 2010 ©2012 eMarketer Inc.
  • 13. Measuring social media ROI is frequently cited as a challenge ©2012 eMarketer Inc.
  • 14. Marketers do not know what tools to use to measure success Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 15. TKTK How can social media marketers get to the metrics that matter? Credit: jscreationzs / FreeDigitalPhotos.net ©2012 eMarketer Inc.
  • 16. Measurement must move beyond the basics and prove business value “We have gotten to the point where brands and companies are making decisions on whether to increase investment in a channel that is receiving a huge amount of consumer attention. It’s very important to start to move toward measuring in a better, more business- value-focused way.” ©2012 eMarketer Inc.
  • 17. Three Things Every Marketer Should Do ©2012 eMarketer Inc.
  • 18. 1) Start measuring Don’t assume it’s impossible  39% of worldwide retailers don’t measure social media marketing. (Economist Intelligence Unit, April 2011)  36% of UK B2B marketers don’t measure. (PricewaterhouseCoopers, September 2011)  6.9% of high-revenue companies worldwide* don’t measure. (CMO Club/Bazaarvoice, 2011) * half of respondents worked for companies with $1 billion+ in sales Image: nattavut / FreeDigitalPhotos.net ©2012 eMarketer Inc.
  • 19. The measurement landscape is crowded—but navigable ©2012 eMarketer Inc.
  • 20. 2) Don’t wait for the silver bullet Because businesses use social media for so many reasons and goals, there may never be a single success metric. Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 21. Every social media effort should start with clear goals and KPIs Experienced marketers use multiple metrics ©2012 eMarketer Inc.
  • 22. 3) Demand that your marketing partners play a larger role The days of recommending social as an add-on without a clear set of goals are gone “The bigger consultancies and agencies— out of self-defense—will start to develop some pretty good methodologies and mental models for social performance and social ROI.” —Erik Huddleston, Dachis Group CTO ©2012 eMarketer Inc.
  • 23. Some are already stepping up to the challenge ©2012 eMarketer Inc.
  • 24. How to Take Measurement to the Next Level ©2012 eMarketer Inc.
  • 25. Three goals for increasing measurement sophistication in 2012  It’s not the fans, it’s what you do with them. Understand who your brand followers are and how influential they can be on your behalf.  Go beyond brand metrics. The more marketers can work toward understanding how social media impacts actual business, the better.  Integrate social analytics and marketing analytics. Understand how social media can make other media spending more efficient, and how online buzz relates to overall marketing performance. Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 26. 1) It’s not the fans, it’s what you do with them Understand who your brand followers are and how they can be influential on your behalf. Focus on measuring leads, sales and revenue. ©2012 eMarketer Inc.
  • 27. Only 28% of marketers track the number of people who contribute to a brand’s social community ©2012 eMarketer Inc.
  • 28. 2) Track more than just brand metrics  Awareness and engagement may be easier to measure, but social media can do more. Harder metrics can show social’s contribution to business results.  Make sales an objective. Only 17% of marketers use sales or leads as a success metric. (Econsultancy/SEMPO) “Sales are what matter to our agents. You can only measure how many people or how many positive comments for so long before people start to question it, especially in this economy.” ©2012 eMarketer Inc.
  • 29. Case study: Measuring the impact of buzz on CPG sales Questions:  How does an increase in positive online buzz impact CPG sales?  How does negative buzz impact sales?  How long can the effect be expected to last? Methodology: Gathered point-of-sale sales data and online buzz for two brands: Lay’s chips and Skinny Cow ice cream Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 30. Case study: Results Finding #1: Incremental sales increases correlate to the amount of online buzz Finding #2: An ad campaign can trigger online buzz, which in turn can cause a sales surge Next steps:  Study campaigns with less social activity to determine the influence of buzz  Incorporate ad campaign data to better filter out the impact of advertising vs. buzz ©2012 eMarketer Inc.
  • 31. 3) Integrate social analytics with other analytics to help build future business Can buzz generate leads? And save money, too? ©2012 eMarketer Inc.
  • 32. Jim Farley, Ford’s global marketing chief: “We’re shifting the timing of our [ad] spend. Social media allows us to start to build a community months before a vehicle goes on sale. We learned this with the Fiesta Movement and we are continuing to perfect the model.” If a social campaign drives broad awareness “we can take the traditional media [spending] down a notch.” ©2012 eMarketer Inc.
  • 33. Marketers have an opportunity to integrate social analytics just as they have integrated social media into marketing ©2012 eMarketer Inc.
  • 34. Key Takeaways ©2012 eMarketer Inc.
  • 35. Getting to the metrics that matter Social media measurement has evolved, but still doesn’t satisfy most marketers. The effectiveness question remains top of mind. Measurement and budget go hand in hand. Marketers need adequate metrics to be able to determine budget allocations. Marketers are still too reliant on counting what is easy to measure. Counting fans and followers is fine as a basic benchmark metric, but marketers must strive to understand what those hand-raisers do for them. Marketers must apply business-level analysis to social media measurement. Understanding social media’s effect on a company’s bottom line is critical. As SymphonyIRI and Ford have shown, it’s getting easier to consider the relative influence of social media on lead generation and sales. Twitter: #eMwebinar ©2012 eMarketer Inc.
  • 37. Powerful Intelligence For Social & Search Advertising
  • 38. Real-Time Data So Marketers Can… Prove ROI Make Better Ad Decisions Surface Customer Insights
  • 39. Clickable 4.0 Workflow Ads Layer Insights CompanyGraph ™ Data Layer CRM Learn more: mkalehoff@clickable.com
  • 40. Measuring Social Media Success Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on Twitter. To learn about eMarketer Total Access please visit www.emarketer.com/products or contact us: (800) 405-0844 or webinars@emarketer.com Presented by: Sponsored by: Debra Aho Williamson Principal Analyst, eMarketer, Inc. Twitter Hashtag: #eMwebinar ©2011 eMarketer Inc.