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2012 State of Social Media Marketing:
         Social Media Measurement, Objectives,
                       and Budget Implications
Section 1: Introduction

   Where are we in the evolution of social media
                                                                       Change in Actively Managed Social Networks
   marketing?
                                                                             2009 to 2012 (MarketingProfs)
   Two years ago, when MarketingProfs published its last                                             2009           2012
   report on the State of Social Media, the social media
   marketing landscape looked vastly different. Conversations                  86%
                                                                                              84%

   about marketing with social media centered on whether or                                                   72%
   not to jump on the bandwagon given the astronomical                                                                           69%

   growth rates of sites like Facebook, Twitter, and LinkedIn.
                                                                         48%
   Some marketers were struggling to convince management                                43%
   of the value and necessity of social media as a marketing                                            39%


   platform, while others were waiting to see what, if anything,                                                           26%
   all of the hype would amount to. At that time, just slightly
   more than half of the companies surveyed reported that                                                                               8%
   their company maintained a corporate profile on at least                                                                                   2%

   one social media site. Facebook led the way with 48%,                Facebook        Twitter         LinkedIn           YouTube     MySpace
   followed by 43% on Twitter and 39% with a presence on           Source: MarketingProfs

   LinkedIn.
                                                                   The goal of this first report on the 2012 State of Social
86% of companies maintain a Facebook presence,                     Media research study is to provide marketers with insights
84% are active on Twitter, and 72% show up on                      that will help navigate this new reality. Specifically, we will
LinkedIn.                                                          address the following questions:
   Since then, the conversation has shifted from participa-             1. Defining Objectives: Which objectives are social
   tion to value. The vast majority of companies now report                media marketers using to guide their efforts in
   maintaining a presence in social media. The same three                  social media?
   sites lead the way, but the use of these sites has nearly
                                                                        2. Delivering to the C-Suite: Which objectives does
   doubled in just over 2 years—86% of companies maintain
                                                                           management expect to achieve through social
   a Facebook presence, 84% are active on Twitter, and 72%
                                                                           media? What metrics do they consider important
   show up on LinkedIn.
                                                                           when considering additional investment in social
   With social media now a staple in the marketing mix,                    media?
   marketers have shifted their focus from establishing a               3. The Measurement Gap: How well are marketers
   presence toward addressing how to create meaningful                     able to measure the things management consid-
   engagement with consumers, how to measure it, and how                   ers important? How wide is the gap between what
   to connect these activities to their impact on the bottom               marketers can measure and what management is
   line. The majority of social media marketers surveyed                   looking for?
   (71%) say they are now concerned with demonstrating
   value to upper management. As social media marketing                 4. Measurement Tools: Which tools are being used
   begins to come of age and marketers begin asking for                    to measure the effectiveness of social media?
   larger budgets for their programs, they must quantify the            5. Investing in Social Media: How can marketers
   success of these programs using metrics that resonate                   demonstrate success and improve the overall
   with the company’s C-suite.                                             investment in social media initiatives in the future?




                                                                                                  2012 State of Social Media Marketing            |   4
Section 2: Defining the Objective
                                                                   Methodology
   The Social Media Marketing Funnel
                                                                   Survey data for the 2012 update of Marketing-
   Marketers often have multiple objectives for their social       Profs’ State of Social Media Marketing report
   media programs. When evaluating these common objec-             was collected in two distinct phases:
   tives, it turns out that they correspond with the stages of a
   typical sales funnel. Starting at the top of the funnel, 91%    Phase 1 kicked off in November 2011 with
   of marketers list “brand awareness” as one of the core          qualitative interviews from select social media
   objectives of their social media program. The percentage        experts as recognized in the larger market-
   of marketers targeting objectives related to downstream         ing community. In order to make the insights
   activities, including increasing purchase consideration         from this report more grounded and action-
   (57%), driving direct sales online (46%) and offline (33%)       oriented, we identified “hot topics” from these
   and driving CRM activities (31%), decreases as we move          interviews that are currently relevant for pro-
   further down the sales funnel.                                  fessionals working in social media. Their input
                                                                   was incorporated into the survey and served
   In addition to the fact 91% of marketers cite brand aware-      as a guide for the topics that will be covered
   ness as one of the objectives of their social media pro-        in the 2012 series of reports.
   grams, 66% cite “increasing positive mentions of their
   brand online” as one of the objectives. This supplements        The experts interviewed represent a cross sec-
   the larger goal of brand awareness, since personal recom-       tion of social media professionals including
   mendations from a trusted network of friends and family         independent consultants, writers and editors,
   has the benefit of driving awareness of the brand virally.       researchers, platform representatives, and
                                                                   client-side practitioners.
   The second most common objective, driving visitors to
   brand websites (78%), serves as further evidence of the            •   Experts:
   fact that marketers are focused on filling the top of the               Mark Amtower, Amtower & Company
   funnel through social media. Driving website traffic is a               Rebecca Corliss, HubSpot
   logical and natural outcome of increased brand aware-                  Jason Falls, Social Media Explorer
   ness. It is also significantly easier to measure the impact             Ann Handley, MarketingProfs
   of increased site traffic on the bottom line than it is to
                                                                          Nichole Kelly, Full Frontal ROI
   measure the impact of brand awareness on business per-
                                                                          Matt Magee, SearchEngineLand
   formance. To this end, it is important that marketers rec-
                                                                          Tom Martin, HelpMyBrand.com
   ognize the inherent challenges in calculating the ROI of
   brand awareness. Consider, for example, the challenges                 Jeff Rohrs, ExactTarget)
   in calculating the ROI of a television advertisement or de-            Jordan Viator Slabaugh, Spredfast
   termining the value of sponsoring a sports venue. It can               Aaron Strout, WCG
   be done, but these calculations are not linear and need                DJ Waldow, Waldow Social
   to account for external factors that are difficult to isolate.          Aaron Weber, Inventi
“...social media increases the likelihood for                      Phase 2 began in February 2012 with the
consumers to put your product into their                           launch of a survey to MarketingProfs readers.
consideration set.”–Aaron Strout, WCG                              Screeners required people to indicate they
   57% of social media marketers cite “Increasing purchase         have social media marketing responsibilities
   consideration of the brand” as another common objec-            in their current professional role. In total,
   tive. This objective serves as the bridge between brand         459 marketers made it through the initial
   awareness and direct sales and is an area where social          set of screeners. Of those that passed the
   media shines according to Aaron Strout, WCG, “social            screeners, 256 (56%) completed the entire
   media increases the likelihood for consumers to put your        20-minute survey.
   product into their consideration set.”

                                                                                 2012 State of Social Media Marketing   |   5
Common Social Media Business Objectives
                                                                            (Multi-Select)

                                                       Brand awareness                                                                   91%

                                       Driving visitors to brand websites                                                          78%
                                  Creating community around the brand                                                             74%
                            Increasing positive mentions of brand online                                                    66%
                            Increasing purchase consideration of brand                                                57%
                     Showcasing thought leadership to target audience                                                 55%
                                                       Customer service                                         47%
                                         Driving sales to online sources                                      46%
                    Marketing research: Consumer insight for marketing                                    40%
                                         Driving sales to offline sources                            33%
                                     Building your customer file for CRM                          31%
                      Product research: Consumer feedback for product                         26%
                        Recruiting potential employees / job candidates                       25%


                 Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers.




   The lowest-ranked objectives of this study were recruit-                              “Anybody can post a Tweet or a status update on
   ment, CRM and surveying customers for market or prod-                                    Facebook, but the brands and people who are
   uct research. This lack of emphasis on social media as                                  being the most successful are really taking into
   a research tool suggests that marketers may think like
                                                                                            account who their audience is, what they care
   Henry Ford, who famously said, “If I’d asked customers
   what they wanted, they would have said ‘a faster horse’.”
                                                                                                    about, and how they can stand out...”
                                                                                                                       – Jordan Viator Slabaugh, Spredfast
   Whether or not Mr. Ford was right, marketers who aren’t
   looking to social media for insights about their customers                         Social media marketing efforts can also do double duty
   are likely missing out some key benefits of gathering this                          here: building brand awareness and engagement while
   kind of data. One major strength of social media is its abil-                      contributing to research goals. Consumers engage with
   ity to give brands access to groups and communities of                             brands that interact with them—those that actively seek
   consumers interested in their brand. These communities                             their comments and ask questions. Polls and quizzes can
   can easily be leveraged to provide input on a brand’s prod-                        be used to both engage the public and gather data for
   ucts and positioning. This feedback can give marketers                             product or marketing purposes.
   clues about existing attitudes toward a brand or product,                          “Anybody can post a Tweet or a status update on Face-
   and can help them course-correct or change strategies.                             book, but the brands and people who are being the most
                                                                                      successful are really taking into account who their audi-
“You can do a lot of ethnography through linguis-                                     ence is, what they care about, and how they can stand
tics in social [media], because it’s mostly a text-                                   out,” says Jordan Viator Slabaugh, Spredfast. “Whether
based medium.” –Tom Martin, HelpMyBrand.com                                           it’s creating new conversations that haven’t taken place,
   Some consumer feedback happens publicly, while other                               designing custom applications (contests, polls, etc.) or
   crucial information requires more nuanced methods. “You                            offering an interactive experience for people to give feed-
   can do a lot of ethnography through linguistics in social                          back and their own content.”
   [media], because it’s mostly a text-based medium,” says
   Tom Martin, HelpMyBrand.com. “You can get into the                                 Primary Objectives Impact Measurement
   mind of a consumer…you can play out hunches, and then                              More than anything, the primary objective companies set
   back them up with statistical data.”                                               for their social media programs determine how measurable




                                                                                                                    2012 State of Social Media Marketing   |   6
Primary Social Media Objective
                                                          Brand awareness                                                        24%

                                    Creating community around the brand                                                    21%
                        Showcasing thought leadership to target audience                                 11%
                               Increasing purchase consideration of brand                                11%
                                         Driving visitors to brand websites                            10%
                                            Driving sales to online sources                       8%
                                            Driving sales to offline sources                 5%
                              Increasing positive mentions of brand online              4%
                                                         Customer service              3%
                      Marketing research: Consumer insight for marketing          2%
                                       Building your customer file for CRM         1%
                           Recruiting potential employees / job candidates     0%
                        Product research: Consumer feedback for product        0%


                   Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers.




The truth is, depending on what you’re doing, it                                            “We know better than to walk into a networking
could be any one of those three things …all [are]                                           event with our megaphone turned on, screaming
valid objectives.”–Matt Magee, SearchEngineLand                                             about our product because if we do, we’re going to
                                                                                            be asked to leave because it’s not the appropriate
   the program will be. Therefore, a marketer’s ability to mea-                             environment... So, that’s kinda what social me-
   sure the return on their social media investments effec-                                 dia is in a nutshell. It’s a networking event where
   tively begins with a clear understanding of the objectives                               you go, you hang out, you participate and pro-
   at the onset. Some objectives, like direct sales, are easy                               vide value over time. If you show up and you have
   to quantify. Others, like building community around the                                  a presence and people know you, if you provide
   brand, are significantly harder to link to ROI and require                                value to them, then they like you. If they know you
   contextual or indirect methods of measurement.                                           and they like you and you do that consistently over
       “People used to want Fans on Facebook. Then                                          time then they trust you. And when they know, like
       they realized what you want is engagement. After,                                    and trust you, they buy from you.”–Jason Falls,
       they realized what you want is ROI, for people to                                    Social Media Explorer
       engage and then follow-through and buy things.
                                                                                     Of the marketers surveyed, 13% indicated that direct
       The truth is, depending on what you’re doing, it
                                                                                     sales was the primary objective of their social media pro-
       could be any one of those three things …all [are]
                                                                                     grams, but these marketers tend to be less experienced
       valid objectives.”–Matt Magee, SearchEngineLand
                                                                                     compared to the 24% whose primary objective was brand
   Marketers face a balancing act when it comes to the                               awareness. Although the simplest way to demonstrate
   emphasis on measurability because choosing to focus only                          ROI of social media is by driving direct sales, more ex-
   on objectives that can be easily tied to revenue can result                       perienced social media marketers (as we identified as
   in the use of social media tactics that have only short-term                      marketers with at least 3 years professional experience in
   return. For example, the recent focus on measuring ROI                            social media and 6 years of overall marketing experience)
   in social media appears to have driven some marketers
   to place direct sales at the top of their list of priorities.                       So, that’s kinda what social media is in a nutshell.
   However, this may require marketers to become overly                                   It’s a networking event where you go, you hang
   aggressive with their messaging in an environment that                                out, you participate and provide value over time.
   does not typically welcome a “hard sell” approach.                                                               –Jason Falls, Social Media Explorer




                                                                                                                2012 State of Social Media Marketing   |   7
are more likely to focus on long-term strategic goals, such   form.” Thought leadership could be seen as a refinement
as community building, brand awareness and demonstrat-        of brand awareness. Building a brand’s reputation for
ing thought leadership.                                       thought leadership increases traffic, positive mentions
                                                              and increases the level of regard by both customers and
Companies may have a difficult time quantifying the ROI
                                                              prospective customers.
of social media with regard to brand awareness, but a
strong ability to measure secondary objectives suggest
                                                                     “You’ve got to be extremely attractive to the
that marketers are zeroing in on ways to evaluate social
media’s effectiveness. For example, increased traffic to
                                                                   market niche you’re going after.”–Mark Amtower,
                                                                                                        Amtower & Company
the website is something 68% of marketers say they can
measure effectively.
                                                              Increasing purchase consideration and driving sales both
Just behind brand awareness and creating community,           fall lower on the list of primary objectives for social media.
showcasing thought leadership was cited by 11% of mar-        This isn’t to say these are not important, but making sales
keters as their primary objective in social media programs.   the endgame for social media efforts may be missing
“You’ve got to be extremely attractive to the market niche    some critical steps in the marketing process—namely
you’re going after,” says Mark Amtower, Amtower & Com-        portraying your brand as one with which people feel good
pany. “You need to develop your thought leadership plat-      about conducting business.




                                                                                   2012 State of Social Media Marketing   |   8
Section 3: Delivering to the C-Suite

In order to secure the resources necessary to implement                          nels also starts further down the conversion funnel. When
their social media plans, marketers increasingly need                            asked which measurements companies use to determine
to translate social media gains into the language of the                         the relative effectiveness of different online marketing
C-suite. Their criteria for measuring effectiveness ranges                       tactics, marketers rank customer engagement first at
from simple customer engagement (i.e., Likes, comments,                          53%, followed closely by acquisition and lead generation
Retweets, etc.) and brand engagement, to acquisition,                            (48%), and direct revenue measures (29%).
lead generation, and direct revenue measures. The
challenge for today’s social media marketers is that they                        Site Traffic: The Bridge Between
need to demonstrate positive ROI to upper management
in the form of sales, while their primary objectives (i.e.,                      Fortunately for social media marketers, measuring direct
brand awareness) are challenging to define and hard to                            traffic also ranks as an important metric for management.
quantify. Marketers are held accountable to the bottom                           Site traffic is something marketers can easily measure,
line despite the fact their programs are focused on, and                         especially when compared to objectives like brand aware-
likely optimized to, activities that drive prospects to the                      ness and ROI. Since increased site traffic represents a
top of the sales funnel where they are later passed off                          natural progression, and is the logical outcome of suc-
to other channels that carry the burden of converting                            cessful brand awareness initiatives, this secondary data
prospects into customers.                                                        point may well be the most effective means by which mar-
                                                                                 keters can quantify and demonstrate the effectiveness of
Part of the challenge for social media is that it is measured
                                                                                 awareness-building efforts.
alongside other online marketing channels where the di-
rect path to conversion is linear. Channels like search,                         Moreover, marketers are becoming more intentional about
email, and affiliate marketing all have established and                           integrating their social media initiatives with other chan-
logical paths to conversion. However, each of these chan-                        nels, a topic that will be covered more in depth in Section 5



                   Measures that are EXTREMELY and QUITE IMPORTANT to company/client’s
                   management when considering the allocation of resources to social media
                                              Brand awareness / recognition                                                                78%

                                              Direct traffic to brand website                                                         71%
                                      Return on marketing investment (ROI)                                                      66%
                                                  Search engine placement                                                      63%
                                                      Number of sales leads                                               57%
                                                         Customer retention                                              55%
                                                       Consumer sentiment                                                55%
                  Engagement measures (comments, Likes, Retweets, Check-ins)                                         54%
                                                          Customer insights                                         51%
                         Number of Likes, fans, followers, subscribers, etc.                                       49%
                                                               Topline sales                                       48%
                                Customer satisfaction / Net promoter score                                     45%
                                                    Customer lifetime value                                  41%
                                            Customer service response time                               38%
                                Quantity / Quality of crowd sourced content                             37%
                                                              Share of voice                            36%
                               Number of downloads (e.g., whitepaper, app)                             35%

                Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers.




                                                                                                              2012 State of Social Media Marketing   |   9
of this whitepaper. Metrics that can be easily measured      cess, they also represent diagnostic opportunities for mar-
through other channels, such as direct sales and search      keters to determine if they are doing a good job or not at
engine placements, are yardsticks that are becoming          driving higher-level objectives. For example, getting more
more important to both marketers and management in           people to download a whitepaper indicates that the top-
light of the challenges associated with measuring ROI.       ics addressed in the whitepaper resonate with prospects
Taking an integrated approach helps realize the unique       and that the messages used to drive awareness are effec-
capabilities of social media in driving increased brand      tive. Increasing the share of voice indicates similar prog-
awareness while leveraging these other channels to move      ress resonating with Business-to-Consumer audiences.
people along the conversion cycle. In essence, integrating   When it comes to customer-centric metrics, consumer
social media marketing efforts with other channels allevi-   sentiments, insights, retention and satisfaction outweigh
ates the need social media to focus every action directly    numerical indicators (number of subscribers, likes, fans,
at driving a sale.                                           etc.)—and even customer service response time—in their
                                                             importance to leadership.
It’s Not All About the Downloads                             This focus on higher-level metrics indicates that manage-
Simple social media measures are not particularly attrac-    ment is more interested in driving topline results than
tive to executive management. The measurements con-          looking at intermediate metrics of success. Management
sidered least important to the C-suite include the number    is looking to improve the overall impression of their brands
of downloads (e.g. whitepaper, app), share of voice, and     through social media and promote this positive sentiment
the quantity and quality of user-generated content. While    to a broad audience.
these measures may be indicative of some types of suc-




                                                                                2012 State of Social Media Marketing   |   10
Section 4: The Measurement Gap

If some of the most measurable elements of a social                               This inferiority complex, so to speak, is likely due to the
media tactic—likes, clicks, downloads, and so on—are                              extreme gap between the importance senior executives
the least important in terms of demonstrating value to                            place on two specific metrics, and the ability of market-
management, then marketers have to find ways of bridging                           ers to accurately measure them. When it comes to brand
this gap. So just how wide is the gap between what                                awareness, 78% of marketers said it is important to ex-
management wants and what marketers can measure?                                  ecutive leadership, but just 32% of them feel they can
                                                                                  actually assess this. Similarly, 66% said ROI is important
Marketers’ ability to measure certain elements is, in some
                                                                                  to the decision-makers, but only 28% feel they can ac-
ways, canceled out by how unimportant those components
                                                                                  curately demonstrate the connection. But, there is hope!
are to management. Likes, re-tweets, check-ins and
                                                                                  Driving traffic is one objective that marketers and man-
comments certainly indicate that a campaign is getting
                                                                                  agement can agree upon. A full 68% of marketers say
some traction. They are also the most straightforward
                                                                                  they can quantify it, and it’s high on the list of metrics that
customer-driven metrics from a measurement standpoint,
                                                                                  management is looking for.
but if they can’t be clearly linked to increased site traffic or
conversions, chances are they will be dismissed by those                          Increased traffic is just one outcome of building brand
with the purse strings.                                                           awareness, but when it’s combined with other factors, like
                                                                                  improved search engine placement, marketers can make a
Only 4% of marketers surveyed say they are “excel-                                strong case that brand awareness is improving. Secondary
lent” at measuring the impact of social media on                                  metrics that can be tied directly to conversion can serve as
company performance, with another 16% saying they                                 respectable proxies for a brand awareness measurement,
do an “above average” job at this. That means the                                 until more robust tools can be implemented.
majority of marketers (80%) feel they perform at av-
                                                                                  In the same vein, one path to a more complete ROI mea-
erage levels or below in this regard.
                                                                                  surement is through integrating social media with other


                                                              The Measurement Gap
                                              ABLE TO MEASURE EFFECTIVELY            IMPORTANT TO MANAGEMENT

                                                                                                       32%
                                           Brand awareness / recognition                                                                       78%
                                                                                                     28%
                                    Return on marketing investment (ROI)                                                              66%
                                                                                               22%
                                                       Customer retention                                                     55%
                                                                                         15%
                                                  Customer lifetime value                                        41%
                                                                                                       31%
                                                     Consumer sentiment                                                       55%
                                                                                                           34%
                                                   Number of sales leads                                                       57%
                                                                                               22%
                              Customer satisfaction / Net promoter score                                           45%
                                                                                                 25%
                                                             Topline sales                                             48%
                                                                                                             38%
                                                        Customer insights                                                51%
                                                                                                24%
                                                            Share of voice                                 36%
                                                                                                                              55%
                                                Search engine placement                                                              63%
                                                                                                       31%
                                         Customer service response time                                     38%
                                                                                                        33%
                              Quantity / Quality of crowd sourced content                                 37%
                                                                                                                                       68%
                                            Direct traffic to brand website                                                               71%
                                                                                                                                     65%
                    Engagement measures (comments, Likes, Retweets)                                                           54%
                                                                                                                             53%
                            Number of downloads (e.g., whitepaper, app)                                    35%
                                                                                                                                               78%
                       Number of Likes, fans, followers, subscribers, etc.                                             49%


                Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers.


                                                                                                                 2012 State of Social Media Marketing   |   11
marketing channels like email and search. These chan-
nels usually have well-established means of calculating              “At the end of the day, if you can measure
ROI and can help collect evidence that social media is          customers generated from social media, you’ve
contributing to the success of the company.                                       won.”–Rebecca Corliss, HubSpot
Marketing software company HubSpot was cited by experts
                                                            really powerful and helps me justify the time I’m spending
and survey respondents alike as being one of the most
                                                            on social.” In fact, in this regard, the focus of social
sophisticated and effective social media and marketing
                                                            media may need to shift from a direct impact on ROI to an
tools in existence. Integrating social media efforts with
                                                            ability to amplify other, more traditional direct marketing
email and search marketing helps HubSpot effectively
                                                            methods.
measure the ROI of their social media efforts. “At the
end of the day, if you can measure customers generated      It’s important for companies to make sure the right tools
from social media, you’ve won,” shared Rebecca Corliss,     are in place to bridge this measurement gap. This will en-
HubSpot. “We measure the traffic, leads, and sales that      sure they can tie social media objectives to the strategy
we’ve generated through social media specifically and        and tactics they’re using and have the metrics to back
track social’s impact on other channels as well. That’s     it up.




                                                                               2012 State of Social Media Marketing   |   12
Section 5: Measurement Tools

To understand the gap between what management wants                              “A lot of times there’s confusion between monitoring tools
and what marketers can measure, it’s important to                                and measurement tools. They’re very different,” says
consider the tools being used. These tools fall primarily                        Nichole Kelly, Full Frontal ROI. “Many times the measure-
into the two categories: free and paid services.                                 ments in your monitoring tool are not connected to rev-
                                                                                 enue, so you’re not getting the full picture.”
It’s not surprising that free tools are the most frequently
used. Two-thirds of marketers consistently use free                              “Many times the measurements in your monitoring
analytics software. Services like Google Analytics and                             tool are not connected to revenue, so you’re not
YouTube Analytics fall into this category, as do free buzz-                      getting the full picture.”–Nichole Kelly, Full Frontal ROI
monitoring services like Google Alerts, TweetDeck and
Technorati.                                                                      Paid Services: Worth the Investment?
The problem with these free services is that, while they                         What’s the difference, or added benefit, of paid services
offer many methods of monitoring interactions, such as                           if you can get about the same value from free ones?
downloads, subscribes, and likes, they have fewer metrics                        Before that question can be addressed, there’s the
that can make the direct link to sales, which is what                            question of effectiveness: what does it mean and which
management ultimately wants to see.                                              measurements meet that standard?
When it comes to paid measurement tools, the usage rate                          This is a critical discussion because this is where the rubber
among marketers plummets. Most marketers—roughly                                 meets the road. Everything—from the objectives of the
three-fourths—have never used paid analytics software or                         marketing department, to management’s expectations, to
paid buzz-monitoring services.                                                   the measurement tools—must align to result in a truly
                                                                                 effective campaign with clearly demonstrable value to the
When you’re looking for the drivers that move a consumer
                                                                                 bottom line.
from brand awareness to purchase, it can get pretty
complicated. This means that the measurement process                             “It’s easy for social media consultants to come in and talk
is complicated as well. It requires sophisticated and                            about building up a social media presence,” says Aaron
integrated measurement tools beyond the data marketers                           Weber, Inventi, “but because those platforms don’t cross
can obtain from most free services.                                              out into the broader web…it’s easy to say ‘it’s working,



                                    Tools/Tactics Used To Measure Social Media Efforts
                                                            NEVER USED         USE FREQUENTLY

                     Paid buzz-monitoring service (e.g., Radian6,                                                               72%
                              Visible Technologies, etc.)                           10%

                    Paid analytics software (e.g., Adobe Omniture,                                                              72%
                                IBM Coremetrics, etc.)                                 12%

                 Scientific control / exposed surveys of friends/fans/                                                   63%
                      connections to determine effectiveness                      6%

                    Polls of social media friends/fans/connections                                                54%
                               to estimate effectiveness                           7%

                                                                                                25%
                   Tracking clicks and re-posts/-tweets (e.g., bit.ly)                                    39%

                  Free buzz-monitoring service (e.g., Google Alerts,                         22%
                            TweetDeck, Technorati, etc.)                                                        49%

                   Free analytics software (e.g., Google analytics,                10%
                               YouTube Analytics, etc.)                                                                   67%


             Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers.




                                                                                                          2012 State of Social Media Marketing   |   13
people are engaged,’ without deriving any further value.      focus on the cost per metric for all of the core traditional
They’re addressing an emotional, not a financial need.”        advertising metrics because they have a history.”

If paid services can provide the breadth and depth of         The fact that companies value those measurements that
analysis, as well as tools to make the connections between    are directly related to the integration of social media with
ROI and a particular social media program overall, the        other channels, such as website traffic and search engine
benefit will outweigh the costs.                               placement, shows that they are on the right track. This
                                                              mindfulness of the interconnectivity of various marketing
Social Media as Amplifier                                      channels to drive consumers along the path to conversion, to
Social media is the first runner in the customer               move them down the funnel, is a step in the right direction.
engagement relay. Moving toward measurement of                            The story behind the chart is still the most
its ROI requires integration with other channels that
                                                                               important piece.”–Aaron Weber, Inventi
have a built-in ability to track sales. This necessitates
comprehensive pre-planning and hand-off points, in            Most marketers, however, are not innately analysts. Work-
addition to objectives for each individual channel. It also   ing with complicated metrics may not come naturally, so it
means putting in place the right measurement tools and        makes sense to invest in more sophisticated services that
watching the right metrics.                                   expedite this process. Unfortunately, justifying the budget
                                                              for comprehensive, paid services, when the focus is typi-
“We translate everything to sales revenue and cost. We
                                                              cally on the need for more consumer-facing resources, is
can compare the cost per impression, lead, click, in-bound
                                                              a struggle.
link, etc., and we can compare it to traditional media,
online advertising, PR, and SEO,” says Nichole Kelly, Full    “The marketing department ends up being an army of one,”
Frontal ROI. “We can typically show that social media is      says Aaron Weber, Inventi. “The biggest problem is they can
amplifying what those channels are already doing at a         collect all this data, but somebody still has to go through
lower cost. We start there, and then we start looking at      it. The story behind the chart is still the most important
how we can connect to the revenue and sales picture. We       piece.”




                                                                                 2012 State of Social Media Marketing   |   14
Section 6: Investing in Social Media

Looking ahead to the next 12 months, investment in social
media overall is not in question. However, the investments                                                    “Instead, a lot of people are thinking about
that companies are making may shift to focus on specific                                                those channels separately. I’m hoping marketers
approaches more than others.                                                                           will think more of an integrated strategy, not just
                                                                                                                       these different channels as silos.”
The largest financial increases will likely be seen in                                                                                  –DJ Waldow, Waldow Social
strategies that involve participation in online communities
and consumer engagement via brand social networking                                               SEO marketing and email marketing have better established
pages. There will also be a larger emphasis on marketing                                          means of pinpointing the origin of a sales conversion,
campaigns that supplement social media with multi-media                                           which social media currently lacks. Addressing how social
content, like online video and blogs, as well as tools that                                       media can work to amplify and strengthen other channels
increase social sharing.                                                                          will allow it to bring more to the table with regard overall
                                                                                                  marketing success.
Marketers plan to continue directing investments to the
“Big Four”—the platform heavyweights Facebook, Twitter,                                           “There’s a huge missed opportunity in…not using email to
YouTube and LinkedIn. SEO and email lists will also see                                           power social and social to power email,” says DJ Waldow,
increased funding because they have traditional metrics                                           Waldow Social. “Instead, a lot of people are thinking about
that can be directly correlated to ROI. These are especially                                      those channels separately. I’m hoping marketers will think
important with regard to entry points (in the case of SEO),                                       more of an integrated strategy, not just these different
and consumer retention and relationship building (in the                                          channels as silos.”
case of email marketing).
                                                                                                  The third and fourth priorities in the lineup are improving
Top Priorities for 2012 Social Media Efforts                                                      measurement and improving conversions. Marketers are
The top priorities for marketers in the coming year are in-                                       acutely aware of the need to justify social media expendi-
creasing presence across social media platforms, followed                                         tures with a clear ROI. This shows that the focus is now on
closely by integrating social media with other online mar-                                        tracking social media’s role in the funnel process by us-
keting channels. Clearly, bridging the measurement gap is                                         ing better measurement tools, and, as a result, increases
top-of-mind for many social media marketers.                                                      conversions.


                                  What are the TOP priorities for your social media efforts in 2012?
                                                                                      (Select Top 3)

                                                   Increasing presence across social media platforms                                                          38%

             Integrating social media with other online marketing channels (e.g., search, email, website, etc.)                                            37%
                                                  Improving measurement (e.g., ROI, analytics, sentiment, etc.)                                          35%
                                                                                     Improving conversions                                         30%
                                                        Increasing the frequency of content publishing                                        28%
                                             Developing / improving social media management processes                                        27%
                                                      Getting the right tools and technologies in place                                21%
    Integrating social media with offline marketing channels (e.g., direct mail, in-store, TV, print, etc.)                             21%
                                                                               Improving customer insight                        16%
                                                                               Growing / training our team                   14%
                                            Integrating with sales systems (e.g., CRM, POS, Lead Management)               12%
                                                                                             Lowering costs       5%


Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers.




                                                                                                                       2012 State of Social Media Marketing    |   15
Section 7: Conclusion

Presence is no longer the name of the game—it’s now          tools to help them interpret metrics and tie them directly
about bridging the measurement gap between brand             to their objectives will make marketers more efficient at
awareness and ROI. The marketers who continue to expand      moving consumers through the sales funnel.
social media presence while integrating those efforts with
                                                             The marketers who understand that closing the measure-
more trackable channels, and then connecting data dots
                                                             ment gap depends on the ability to interface with other
for the decision-makers, are those that will see the most
                                                             online marketing channels will create the most natural
impact on their company’s bottom line in 2012.
                                                             path for consumers to move from awareness to purchase.
Lowering costs was the lowest rung on the priority ladder    The bottom line is that if marketers can grow awareness,
for social media marketers, but they’re looking to boost     improve measurement and connect social media metrics
the bottom line in other ways. Rather than looking for       to conversions, then they will have justified to manage-
line item cuts, they’re looking to provide greater return    ment why they should increase their investment in social
on marketing dollars spent. Using sophisticated, premium     media marketing.




                                                                                2012 State of Social Media Marketing   |   16

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Marketing profs 2012-state-of-social-media-marketing-v5os6sha

  • 1. Sponsored by 2012 State of Social Media Marketing: Social Media Measurement, Objectives, and Budget Implications
  • 2. Section 1: Introduction Where are we in the evolution of social media Change in Actively Managed Social Networks marketing? 2009 to 2012 (MarketingProfs) Two years ago, when MarketingProfs published its last 2009 2012 report on the State of Social Media, the social media marketing landscape looked vastly different. Conversations 86% 84% about marketing with social media centered on whether or 72% not to jump on the bandwagon given the astronomical 69% growth rates of sites like Facebook, Twitter, and LinkedIn. 48% Some marketers were struggling to convince management 43% of the value and necessity of social media as a marketing 39% platform, while others were waiting to see what, if anything, 26% all of the hype would amount to. At that time, just slightly more than half of the companies surveyed reported that 8% their company maintained a corporate profile on at least 2% one social media site. Facebook led the way with 48%, Facebook Twitter LinkedIn YouTube MySpace followed by 43% on Twitter and 39% with a presence on Source: MarketingProfs LinkedIn. The goal of this first report on the 2012 State of Social 86% of companies maintain a Facebook presence, Media research study is to provide marketers with insights 84% are active on Twitter, and 72% show up on that will help navigate this new reality. Specifically, we will LinkedIn. address the following questions: Since then, the conversation has shifted from participa- 1. Defining Objectives: Which objectives are social tion to value. The vast majority of companies now report media marketers using to guide their efforts in maintaining a presence in social media. The same three social media? sites lead the way, but the use of these sites has nearly 2. Delivering to the C-Suite: Which objectives does doubled in just over 2 years—86% of companies maintain management expect to achieve through social a Facebook presence, 84% are active on Twitter, and 72% media? What metrics do they consider important show up on LinkedIn. when considering additional investment in social With social media now a staple in the marketing mix, media? marketers have shifted their focus from establishing a 3. The Measurement Gap: How well are marketers presence toward addressing how to create meaningful able to measure the things management consid- engagement with consumers, how to measure it, and how ers important? How wide is the gap between what to connect these activities to their impact on the bottom marketers can measure and what management is line. The majority of social media marketers surveyed looking for? (71%) say they are now concerned with demonstrating value to upper management. As social media marketing 4. Measurement Tools: Which tools are being used begins to come of age and marketers begin asking for to measure the effectiveness of social media? larger budgets for their programs, they must quantify the 5. Investing in Social Media: How can marketers success of these programs using metrics that resonate demonstrate success and improve the overall with the company’s C-suite. investment in social media initiatives in the future? 2012 State of Social Media Marketing | 4
  • 3. Section 2: Defining the Objective Methodology The Social Media Marketing Funnel Survey data for the 2012 update of Marketing- Marketers often have multiple objectives for their social Profs’ State of Social Media Marketing report media programs. When evaluating these common objec- was collected in two distinct phases: tives, it turns out that they correspond with the stages of a typical sales funnel. Starting at the top of the funnel, 91% Phase 1 kicked off in November 2011 with of marketers list “brand awareness” as one of the core qualitative interviews from select social media objectives of their social media program. The percentage experts as recognized in the larger market- of marketers targeting objectives related to downstream ing community. In order to make the insights activities, including increasing purchase consideration from this report more grounded and action- (57%), driving direct sales online (46%) and offline (33%) oriented, we identified “hot topics” from these and driving CRM activities (31%), decreases as we move interviews that are currently relevant for pro- further down the sales funnel. fessionals working in social media. Their input was incorporated into the survey and served In addition to the fact 91% of marketers cite brand aware- as a guide for the topics that will be covered ness as one of the objectives of their social media pro- in the 2012 series of reports. grams, 66% cite “increasing positive mentions of their brand online” as one of the objectives. This supplements The experts interviewed represent a cross sec- the larger goal of brand awareness, since personal recom- tion of social media professionals including mendations from a trusted network of friends and family independent consultants, writers and editors, has the benefit of driving awareness of the brand virally. researchers, platform representatives, and client-side practitioners. The second most common objective, driving visitors to brand websites (78%), serves as further evidence of the • Experts: fact that marketers are focused on filling the top of the Mark Amtower, Amtower & Company funnel through social media. Driving website traffic is a Rebecca Corliss, HubSpot logical and natural outcome of increased brand aware- Jason Falls, Social Media Explorer ness. It is also significantly easier to measure the impact Ann Handley, MarketingProfs of increased site traffic on the bottom line than it is to Nichole Kelly, Full Frontal ROI measure the impact of brand awareness on business per- Matt Magee, SearchEngineLand formance. To this end, it is important that marketers rec- Tom Martin, HelpMyBrand.com ognize the inherent challenges in calculating the ROI of brand awareness. Consider, for example, the challenges Jeff Rohrs, ExactTarget) in calculating the ROI of a television advertisement or de- Jordan Viator Slabaugh, Spredfast termining the value of sponsoring a sports venue. It can Aaron Strout, WCG be done, but these calculations are not linear and need DJ Waldow, Waldow Social to account for external factors that are difficult to isolate. Aaron Weber, Inventi “...social media increases the likelihood for Phase 2 began in February 2012 with the consumers to put your product into their launch of a survey to MarketingProfs readers. consideration set.”–Aaron Strout, WCG Screeners required people to indicate they 57% of social media marketers cite “Increasing purchase have social media marketing responsibilities consideration of the brand” as another common objec- in their current professional role. In total, tive. This objective serves as the bridge between brand 459 marketers made it through the initial awareness and direct sales and is an area where social set of screeners. Of those that passed the media shines according to Aaron Strout, WCG, “social screeners, 256 (56%) completed the entire media increases the likelihood for consumers to put your 20-minute survey. product into their consideration set.” 2012 State of Social Media Marketing | 5
  • 4. Common Social Media Business Objectives (Multi-Select) Brand awareness 91% Driving visitors to brand websites 78% Creating community around the brand 74% Increasing positive mentions of brand online 66% Increasing purchase consideration of brand 57% Showcasing thought leadership to target audience 55% Customer service 47% Driving sales to online sources 46% Marketing research: Consumer insight for marketing 40% Driving sales to offline sources 33% Building your customer file for CRM 31% Product research: Consumer feedback for product 26% Recruiting potential employees / job candidates 25% Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers. The lowest-ranked objectives of this study were recruit- “Anybody can post a Tweet or a status update on ment, CRM and surveying customers for market or prod- Facebook, but the brands and people who are uct research. This lack of emphasis on social media as being the most successful are really taking into a research tool suggests that marketers may think like account who their audience is, what they care Henry Ford, who famously said, “If I’d asked customers what they wanted, they would have said ‘a faster horse’.” about, and how they can stand out...” – Jordan Viator Slabaugh, Spredfast Whether or not Mr. Ford was right, marketers who aren’t looking to social media for insights about their customers Social media marketing efforts can also do double duty are likely missing out some key benefits of gathering this here: building brand awareness and engagement while kind of data. One major strength of social media is its abil- contributing to research goals. Consumers engage with ity to give brands access to groups and communities of brands that interact with them—those that actively seek consumers interested in their brand. These communities their comments and ask questions. Polls and quizzes can can easily be leveraged to provide input on a brand’s prod- be used to both engage the public and gather data for ucts and positioning. This feedback can give marketers product or marketing purposes. clues about existing attitudes toward a brand or product, “Anybody can post a Tweet or a status update on Face- and can help them course-correct or change strategies. book, but the brands and people who are being the most successful are really taking into account who their audi- “You can do a lot of ethnography through linguis- ence is, what they care about, and how they can stand tics in social [media], because it’s mostly a text- out,” says Jordan Viator Slabaugh, Spredfast. “Whether based medium.” –Tom Martin, HelpMyBrand.com it’s creating new conversations that haven’t taken place, Some consumer feedback happens publicly, while other designing custom applications (contests, polls, etc.) or crucial information requires more nuanced methods. “You offering an interactive experience for people to give feed- can do a lot of ethnography through linguistics in social back and their own content.” [media], because it’s mostly a text-based medium,” says Tom Martin, HelpMyBrand.com. “You can get into the Primary Objectives Impact Measurement mind of a consumer…you can play out hunches, and then More than anything, the primary objective companies set back them up with statistical data.” for their social media programs determine how measurable 2012 State of Social Media Marketing | 6
  • 5. Primary Social Media Objective Brand awareness 24% Creating community around the brand 21% Showcasing thought leadership to target audience 11% Increasing purchase consideration of brand 11% Driving visitors to brand websites 10% Driving sales to online sources 8% Driving sales to offline sources 5% Increasing positive mentions of brand online 4% Customer service 3% Marketing research: Consumer insight for marketing 2% Building your customer file for CRM 1% Recruiting potential employees / job candidates 0% Product research: Consumer feedback for product 0% Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers. The truth is, depending on what you’re doing, it “We know better than to walk into a networking could be any one of those three things …all [are] event with our megaphone turned on, screaming valid objectives.”–Matt Magee, SearchEngineLand about our product because if we do, we’re going to be asked to leave because it’s not the appropriate the program will be. Therefore, a marketer’s ability to mea- environment... So, that’s kinda what social me- sure the return on their social media investments effec- dia is in a nutshell. It’s a networking event where tively begins with a clear understanding of the objectives you go, you hang out, you participate and pro- at the onset. Some objectives, like direct sales, are easy vide value over time. If you show up and you have to quantify. Others, like building community around the a presence and people know you, if you provide brand, are significantly harder to link to ROI and require value to them, then they like you. If they know you contextual or indirect methods of measurement. and they like you and you do that consistently over “People used to want Fans on Facebook. Then time then they trust you. And when they know, like they realized what you want is engagement. After, and trust you, they buy from you.”–Jason Falls, they realized what you want is ROI, for people to Social Media Explorer engage and then follow-through and buy things. Of the marketers surveyed, 13% indicated that direct The truth is, depending on what you’re doing, it sales was the primary objective of their social media pro- could be any one of those three things …all [are] grams, but these marketers tend to be less experienced valid objectives.”–Matt Magee, SearchEngineLand compared to the 24% whose primary objective was brand Marketers face a balancing act when it comes to the awareness. Although the simplest way to demonstrate emphasis on measurability because choosing to focus only ROI of social media is by driving direct sales, more ex- on objectives that can be easily tied to revenue can result perienced social media marketers (as we identified as in the use of social media tactics that have only short-term marketers with at least 3 years professional experience in return. For example, the recent focus on measuring ROI social media and 6 years of overall marketing experience) in social media appears to have driven some marketers to place direct sales at the top of their list of priorities. So, that’s kinda what social media is in a nutshell. However, this may require marketers to become overly It’s a networking event where you go, you hang aggressive with their messaging in an environment that out, you participate and provide value over time. does not typically welcome a “hard sell” approach. –Jason Falls, Social Media Explorer 2012 State of Social Media Marketing | 7
  • 6. are more likely to focus on long-term strategic goals, such form.” Thought leadership could be seen as a refinement as community building, brand awareness and demonstrat- of brand awareness. Building a brand’s reputation for ing thought leadership. thought leadership increases traffic, positive mentions and increases the level of regard by both customers and Companies may have a difficult time quantifying the ROI prospective customers. of social media with regard to brand awareness, but a strong ability to measure secondary objectives suggest “You’ve got to be extremely attractive to the that marketers are zeroing in on ways to evaluate social media’s effectiveness. For example, increased traffic to market niche you’re going after.”–Mark Amtower, Amtower & Company the website is something 68% of marketers say they can measure effectively. Increasing purchase consideration and driving sales both Just behind brand awareness and creating community, fall lower on the list of primary objectives for social media. showcasing thought leadership was cited by 11% of mar- This isn’t to say these are not important, but making sales keters as their primary objective in social media programs. the endgame for social media efforts may be missing “You’ve got to be extremely attractive to the market niche some critical steps in the marketing process—namely you’re going after,” says Mark Amtower, Amtower & Com- portraying your brand as one with which people feel good pany. “You need to develop your thought leadership plat- about conducting business. 2012 State of Social Media Marketing | 8
  • 7. Section 3: Delivering to the C-Suite In order to secure the resources necessary to implement nels also starts further down the conversion funnel. When their social media plans, marketers increasingly need asked which measurements companies use to determine to translate social media gains into the language of the the relative effectiveness of different online marketing C-suite. Their criteria for measuring effectiveness ranges tactics, marketers rank customer engagement first at from simple customer engagement (i.e., Likes, comments, 53%, followed closely by acquisition and lead generation Retweets, etc.) and brand engagement, to acquisition, (48%), and direct revenue measures (29%). lead generation, and direct revenue measures. The challenge for today’s social media marketers is that they Site Traffic: The Bridge Between need to demonstrate positive ROI to upper management in the form of sales, while their primary objectives (i.e., Fortunately for social media marketers, measuring direct brand awareness) are challenging to define and hard to traffic also ranks as an important metric for management. quantify. Marketers are held accountable to the bottom Site traffic is something marketers can easily measure, line despite the fact their programs are focused on, and especially when compared to objectives like brand aware- likely optimized to, activities that drive prospects to the ness and ROI. Since increased site traffic represents a top of the sales funnel where they are later passed off natural progression, and is the logical outcome of suc- to other channels that carry the burden of converting cessful brand awareness initiatives, this secondary data prospects into customers. point may well be the most effective means by which mar- keters can quantify and demonstrate the effectiveness of Part of the challenge for social media is that it is measured awareness-building efforts. alongside other online marketing channels where the di- rect path to conversion is linear. Channels like search, Moreover, marketers are becoming more intentional about email, and affiliate marketing all have established and integrating their social media initiatives with other chan- logical paths to conversion. However, each of these chan- nels, a topic that will be covered more in depth in Section 5 Measures that are EXTREMELY and QUITE IMPORTANT to company/client’s management when considering the allocation of resources to social media Brand awareness / recognition 78% Direct traffic to brand website 71% Return on marketing investment (ROI) 66% Search engine placement 63% Number of sales leads 57% Customer retention 55% Consumer sentiment 55% Engagement measures (comments, Likes, Retweets, Check-ins) 54% Customer insights 51% Number of Likes, fans, followers, subscribers, etc. 49% Topline sales 48% Customer satisfaction / Net promoter score 45% Customer lifetime value 41% Customer service response time 38% Quantity / Quality of crowd sourced content 37% Share of voice 36% Number of downloads (e.g., whitepaper, app) 35% Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers. 2012 State of Social Media Marketing | 9
  • 8. of this whitepaper. Metrics that can be easily measured cess, they also represent diagnostic opportunities for mar- through other channels, such as direct sales and search keters to determine if they are doing a good job or not at engine placements, are yardsticks that are becoming driving higher-level objectives. For example, getting more more important to both marketers and management in people to download a whitepaper indicates that the top- light of the challenges associated with measuring ROI. ics addressed in the whitepaper resonate with prospects Taking an integrated approach helps realize the unique and that the messages used to drive awareness are effec- capabilities of social media in driving increased brand tive. Increasing the share of voice indicates similar prog- awareness while leveraging these other channels to move ress resonating with Business-to-Consumer audiences. people along the conversion cycle. In essence, integrating When it comes to customer-centric metrics, consumer social media marketing efforts with other channels allevi- sentiments, insights, retention and satisfaction outweigh ates the need social media to focus every action directly numerical indicators (number of subscribers, likes, fans, at driving a sale. etc.)—and even customer service response time—in their importance to leadership. It’s Not All About the Downloads This focus on higher-level metrics indicates that manage- Simple social media measures are not particularly attrac- ment is more interested in driving topline results than tive to executive management. The measurements con- looking at intermediate metrics of success. Management sidered least important to the C-suite include the number is looking to improve the overall impression of their brands of downloads (e.g. whitepaper, app), share of voice, and through social media and promote this positive sentiment the quantity and quality of user-generated content. While to a broad audience. these measures may be indicative of some types of suc- 2012 State of Social Media Marketing | 10
  • 9. Section 4: The Measurement Gap If some of the most measurable elements of a social This inferiority complex, so to speak, is likely due to the media tactic—likes, clicks, downloads, and so on—are extreme gap between the importance senior executives the least important in terms of demonstrating value to place on two specific metrics, and the ability of market- management, then marketers have to find ways of bridging ers to accurately measure them. When it comes to brand this gap. So just how wide is the gap between what awareness, 78% of marketers said it is important to ex- management wants and what marketers can measure? ecutive leadership, but just 32% of them feel they can actually assess this. Similarly, 66% said ROI is important Marketers’ ability to measure certain elements is, in some to the decision-makers, but only 28% feel they can ac- ways, canceled out by how unimportant those components curately demonstrate the connection. But, there is hope! are to management. Likes, re-tweets, check-ins and Driving traffic is one objective that marketers and man- comments certainly indicate that a campaign is getting agement can agree upon. A full 68% of marketers say some traction. They are also the most straightforward they can quantify it, and it’s high on the list of metrics that customer-driven metrics from a measurement standpoint, management is looking for. but if they can’t be clearly linked to increased site traffic or conversions, chances are they will be dismissed by those Increased traffic is just one outcome of building brand with the purse strings. awareness, but when it’s combined with other factors, like improved search engine placement, marketers can make a Only 4% of marketers surveyed say they are “excel- strong case that brand awareness is improving. Secondary lent” at measuring the impact of social media on metrics that can be tied directly to conversion can serve as company performance, with another 16% saying they respectable proxies for a brand awareness measurement, do an “above average” job at this. That means the until more robust tools can be implemented. majority of marketers (80%) feel they perform at av- In the same vein, one path to a more complete ROI mea- erage levels or below in this regard. surement is through integrating social media with other The Measurement Gap ABLE TO MEASURE EFFECTIVELY IMPORTANT TO MANAGEMENT 32% Brand awareness / recognition 78% 28% Return on marketing investment (ROI) 66% 22% Customer retention 55% 15% Customer lifetime value 41% 31% Consumer sentiment 55% 34% Number of sales leads 57% 22% Customer satisfaction / Net promoter score 45% 25% Topline sales 48% 38% Customer insights 51% 24% Share of voice 36% 55% Search engine placement 63% 31% Customer service response time 38% 33% Quantity / Quality of crowd sourced content 37% 68% Direct traffic to brand website 71% 65% Engagement measures (comments, Likes, Retweets) 54% 53% Number of downloads (e.g., whitepaper, app) 35% 78% Number of Likes, fans, followers, subscribers, etc. 49% Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers. 2012 State of Social Media Marketing | 11
  • 10. marketing channels like email and search. These chan- nels usually have well-established means of calculating “At the end of the day, if you can measure ROI and can help collect evidence that social media is customers generated from social media, you’ve contributing to the success of the company. won.”–Rebecca Corliss, HubSpot Marketing software company HubSpot was cited by experts really powerful and helps me justify the time I’m spending and survey respondents alike as being one of the most on social.” In fact, in this regard, the focus of social sophisticated and effective social media and marketing media may need to shift from a direct impact on ROI to an tools in existence. Integrating social media efforts with ability to amplify other, more traditional direct marketing email and search marketing helps HubSpot effectively methods. measure the ROI of their social media efforts. “At the end of the day, if you can measure customers generated It’s important for companies to make sure the right tools from social media, you’ve won,” shared Rebecca Corliss, are in place to bridge this measurement gap. This will en- HubSpot. “We measure the traffic, leads, and sales that sure they can tie social media objectives to the strategy we’ve generated through social media specifically and and tactics they’re using and have the metrics to back track social’s impact on other channels as well. That’s it up. 2012 State of Social Media Marketing | 12
  • 11. Section 5: Measurement Tools To understand the gap between what management wants “A lot of times there’s confusion between monitoring tools and what marketers can measure, it’s important to and measurement tools. They’re very different,” says consider the tools being used. These tools fall primarily Nichole Kelly, Full Frontal ROI. “Many times the measure- into the two categories: free and paid services. ments in your monitoring tool are not connected to rev- enue, so you’re not getting the full picture.” It’s not surprising that free tools are the most frequently used. Two-thirds of marketers consistently use free “Many times the measurements in your monitoring analytics software. Services like Google Analytics and tool are not connected to revenue, so you’re not YouTube Analytics fall into this category, as do free buzz- getting the full picture.”–Nichole Kelly, Full Frontal ROI monitoring services like Google Alerts, TweetDeck and Technorati. Paid Services: Worth the Investment? The problem with these free services is that, while they What’s the difference, or added benefit, of paid services offer many methods of monitoring interactions, such as if you can get about the same value from free ones? downloads, subscribes, and likes, they have fewer metrics Before that question can be addressed, there’s the that can make the direct link to sales, which is what question of effectiveness: what does it mean and which management ultimately wants to see. measurements meet that standard? When it comes to paid measurement tools, the usage rate This is a critical discussion because this is where the rubber among marketers plummets. Most marketers—roughly meets the road. Everything—from the objectives of the three-fourths—have never used paid analytics software or marketing department, to management’s expectations, to paid buzz-monitoring services. the measurement tools—must align to result in a truly effective campaign with clearly demonstrable value to the When you’re looking for the drivers that move a consumer bottom line. from brand awareness to purchase, it can get pretty complicated. This means that the measurement process “It’s easy for social media consultants to come in and talk is complicated as well. It requires sophisticated and about building up a social media presence,” says Aaron integrated measurement tools beyond the data marketers Weber, Inventi, “but because those platforms don’t cross can obtain from most free services. out into the broader web…it’s easy to say ‘it’s working, Tools/Tactics Used To Measure Social Media Efforts NEVER USED USE FREQUENTLY Paid buzz-monitoring service (e.g., Radian6, 72% Visible Technologies, etc.) 10% Paid analytics software (e.g., Adobe Omniture, 72% IBM Coremetrics, etc.) 12% Scientific control / exposed surveys of friends/fans/ 63% connections to determine effectiveness 6% Polls of social media friends/fans/connections 54% to estimate effectiveness 7% 25% Tracking clicks and re-posts/-tweets (e.g., bit.ly) 39% Free buzz-monitoring service (e.g., Google Alerts, 22% TweetDeck, Technorati, etc.) 49% Free analytics software (e.g., Google analytics, 10% YouTube Analytics, etc.) 67% Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers. 2012 State of Social Media Marketing | 13
  • 12. people are engaged,’ without deriving any further value. focus on the cost per metric for all of the core traditional They’re addressing an emotional, not a financial need.” advertising metrics because they have a history.” If paid services can provide the breadth and depth of The fact that companies value those measurements that analysis, as well as tools to make the connections between are directly related to the integration of social media with ROI and a particular social media program overall, the other channels, such as website traffic and search engine benefit will outweigh the costs. placement, shows that they are on the right track. This mindfulness of the interconnectivity of various marketing Social Media as Amplifier channels to drive consumers along the path to conversion, to Social media is the first runner in the customer move them down the funnel, is a step in the right direction. engagement relay. Moving toward measurement of The story behind the chart is still the most its ROI requires integration with other channels that important piece.”–Aaron Weber, Inventi have a built-in ability to track sales. This necessitates comprehensive pre-planning and hand-off points, in Most marketers, however, are not innately analysts. Work- addition to objectives for each individual channel. It also ing with complicated metrics may not come naturally, so it means putting in place the right measurement tools and makes sense to invest in more sophisticated services that watching the right metrics. expedite this process. Unfortunately, justifying the budget for comprehensive, paid services, when the focus is typi- “We translate everything to sales revenue and cost. We cally on the need for more consumer-facing resources, is can compare the cost per impression, lead, click, in-bound a struggle. link, etc., and we can compare it to traditional media, online advertising, PR, and SEO,” says Nichole Kelly, Full “The marketing department ends up being an army of one,” Frontal ROI. “We can typically show that social media is says Aaron Weber, Inventi. “The biggest problem is they can amplifying what those channels are already doing at a collect all this data, but somebody still has to go through lower cost. We start there, and then we start looking at it. The story behind the chart is still the most important how we can connect to the revenue and sales picture. We piece.” 2012 State of Social Media Marketing | 14
  • 13. Section 6: Investing in Social Media Looking ahead to the next 12 months, investment in social media overall is not in question. However, the investments “Instead, a lot of people are thinking about that companies are making may shift to focus on specific those channels separately. I’m hoping marketers approaches more than others. will think more of an integrated strategy, not just these different channels as silos.” The largest financial increases will likely be seen in –DJ Waldow, Waldow Social strategies that involve participation in online communities and consumer engagement via brand social networking SEO marketing and email marketing have better established pages. There will also be a larger emphasis on marketing means of pinpointing the origin of a sales conversion, campaigns that supplement social media with multi-media which social media currently lacks. Addressing how social content, like online video and blogs, as well as tools that media can work to amplify and strengthen other channels increase social sharing. will allow it to bring more to the table with regard overall marketing success. Marketers plan to continue directing investments to the “Big Four”—the platform heavyweights Facebook, Twitter, “There’s a huge missed opportunity in…not using email to YouTube and LinkedIn. SEO and email lists will also see power social and social to power email,” says DJ Waldow, increased funding because they have traditional metrics Waldow Social. “Instead, a lot of people are thinking about that can be directly correlated to ROI. These are especially those channels separately. I’m hoping marketers will think important with regard to entry points (in the case of SEO), more of an integrated strategy, not just these different and consumer retention and relationship building (in the channels as silos.” case of email marketing). The third and fourth priorities in the lineup are improving Top Priorities for 2012 Social Media Efforts measurement and improving conversions. Marketers are The top priorities for marketers in the coming year are in- acutely aware of the need to justify social media expendi- creasing presence across social media platforms, followed tures with a clear ROI. This shows that the focus is now on closely by integrating social media with other online mar- tracking social media’s role in the funnel process by us- keting channels. Clearly, bridging the measurement gap is ing better measurement tools, and, as a result, increases top-of-mind for many social media marketers. conversions. What are the TOP priorities for your social media efforts in 2012? (Select Top 3) Increasing presence across social media platforms 38% Integrating social media with other online marketing channels (e.g., search, email, website, etc.) 37% Improving measurement (e.g., ROI, analytics, sentiment, etc.) 35% Improving conversions 30% Increasing the frequency of content publishing 28% Developing / improving social media management processes 27% Getting the right tools and technologies in place 21% Integrating social media with offline marketing channels (e.g., direct mail, in-store, TV, print, etc.) 21% Improving customer insight 16% Growing / training our team 14% Integrating with sales systems (e.g., CRM, POS, Lead Management) 12% Lowering costs 5% Source: MarketingProfs 2012 Social Media Survey, February 2012. Chart Base: 256 marketers. 2012 State of Social Media Marketing | 15
  • 14. Section 7: Conclusion Presence is no longer the name of the game—it’s now tools to help them interpret metrics and tie them directly about bridging the measurement gap between brand to their objectives will make marketers more efficient at awareness and ROI. The marketers who continue to expand moving consumers through the sales funnel. social media presence while integrating those efforts with The marketers who understand that closing the measure- more trackable channels, and then connecting data dots ment gap depends on the ability to interface with other for the decision-makers, are those that will see the most online marketing channels will create the most natural impact on their company’s bottom line in 2012. path for consumers to move from awareness to purchase. Lowering costs was the lowest rung on the priority ladder The bottom line is that if marketers can grow awareness, for social media marketers, but they’re looking to boost improve measurement and connect social media metrics the bottom line in other ways. Rather than looking for to conversions, then they will have justified to manage- line item cuts, they’re looking to provide greater return ment why they should increase their investment in social on marketing dollars spent. Using sophisticated, premium media marketing. 2012 State of Social Media Marketing | 16