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Nielson Social Media Business Benchmarking study
Three key points from the document: 1. Australian businesses are increasingly investing in social media, with 72% allocating over 10% of their marketing budget to social media in 2010 compared to 57% in 2009. 2. The most common social media activities conducted by Australian businesses in 2010 were having a social media presence, social media monitoring, and responding to comments. 3. While large businesses participate in social media to a greater extent than SMEs, private and public sectors are on par across many activities, though the public sector was slower to uptake some.
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Nielson Social Media Business Benchmarking study
- 1. Social Media Business BenchmarkingStudy 2011 Wave 2: 2011
- 2. The Australian ONLINECONSUMER Report • Three in four online Australians call on consumer opinion about brands, products and organisations, found in social media • 63% have a Facebook profile • 46% have clicked the Facebook ‘Like’ button for a brand, product, org. • 43% share their opinions about brands and products through social media • Among social networking participants: • 53% have engaged with a brand or company on a social networking site • 36% have engaged with government or politicians on a social networking site Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 3. Social Media Business BenchmarkingStudy 2011 Wave 2: 2011 Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 4. “Getting support frommy managers and Ministers to venture into social media has been a bit like taking my Dad to the Big Day Out. We all felt a little awkward about it at first, but we talked about the risks and how to behave (both to 'fit in' and to 'stay safe'), and now that we've stepped into the gates, we've found people wearing the t- shirts for our band! We're all having a great time and don't want to go home.” Respondent comment, Nielsen Social Media Study, July 2010, public sector survey. Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 5. 1. Australian business’investment in social media
- 6. The budget allocatedto social media activity increased in 2010 During 2009 During 2010 57% 72% of participating business’ allocated of participating business’ allocated 10% or more of their marketing 10% or more of their marketing budget to social media activity. budget to social media activity. Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 7. Among business’ conductingsocial media activities in 2010, what proportion of the marketing budget was allocated? 8% Those allocating one fifth or 1-4% 23% more of their marketing budget to social media 20% 5-9% increased from 28% to 40% 20% last year. 31% 10-19% 29% 26% 20-39% 13% 14% 2010 40% or more 15% 2009 Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 8. 42% of businesssays a greater proportion will be invested in social media this year A greater proportion of the marketing budget to social media About the same proportion of the marketing budget to social media What is driving the increase? A lower proportion of the marketing budget to social media 66% It’s a marketing channel we know we need to be in !"#$ 50% The reach of social media %&#$ 42% The targetability of social media '#$ 42% It drives insight and action across a lot of areas of the business 31% Proving ROI on activities 27% Senior management buy-in Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 9. Public sector isfar more likely to maintain, rather than grow, their level of investment this year Private Public 68% 50% 42% 21% 12% 8% A greater proportion of the marketing About the same proportion of the A lower proportion of the marketing budget to social media marketing budget to social media budget to social media Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 10. More marketing budgetswere expanded to fund social media activities during 2010… 44% Expand the marketing budget 33% 37% Allocate funds away from other marketing activities in order to fund social media activities 44% 18% Both 2010 23% 2009 Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 11. Direct marketing isnow the strongest target for budget redeployment 41% Direct Marketing 33% 37% Print 47% 23% Other online/ digital 26% 17% TV 15% 10% Radio 2010 14% 2009 9% Outdoor 8% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 12. More than halfuse their social media investment for marketing, but other business activities are also prominent Overall Large orgs SMEs SMEs also investing in social media 56% 54% 52% for customer service, relationships and sales activity. 38% 36% 35% 30% 30% 30% 31% 29% 24% 25% 24% 21% 21% 21% 20% 19% 18% 16% 17% 16% 14% 14% 12% 7% Marketing / Customer Customer Public Developing Customer / Product Competitor Employee promotion relationship service / relations sales leads consumer / development research engagement marketing support stakeholder research Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 13. The most socialmedia budget is commonly allocated to display advertising or maintaining a presence on Facebook Online display advertising on social networking sites 21% Facebook 21% Social media monitoring 17% Corporate blog 15% A Facebook 'Like' button on your site 14% Responding to/acting on comments 13% Allowing participation on your website 12% Other forms of advertising on social networking sites/social 12% media sites Inclusion of social media 'share' buttons on your site 12% Using social media to gain consumer insight/as a research 10% tool Creating your own ‘online social network’ 10% Facilitating social shopping ('social commerce') in some way 7% YouTube 5% Twitter 5% Flickr 2% MySpace 1% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 14. Australian business’ aremore likely to have policies to protect their brand… 17% 24% Of this group… Have a formal social media Have a social media policy • 84% have policies/guidelines strategy or guidelines for their own staff • 27% of large • 42% of large • Higher among public sector at organisations organisations 90% • 11% of SMEs • 12% of SMEs • 46% have policies/guidelines for their agencies • 8% of public sector • 23% of public sector • 21% for outsourced bloggers etc. Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 15. 2. The socialmedia activities conducted by business’ in 2010
- 16. The 5 mostpopular social media activities conducted by Australian business’ in 2010 28% Presence in social media 26% Social media monitoring 25% Respond to/act on comments made via social media 23% Gain consumer insight/use social media as a research tool 21% Advertise on social networking sites Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 17. “There are manyfans sites out there but when fans make comments or complaints or provide feedback, and companies don’t bother to respond, that is a big fail.” Director, Large business, Engineering Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 18. The social mediaactivities business’ are engaging in Presence in social media networks 28% Tracking/ monitoring what is said about your brand/ 26% org./staff Responding to/acting on comments 25% To gain consumer insight/as a research tool 23% Online display advertising on social networking sites 21% Other forms of advertising on social networking sites/ 19% social media sites Allowing participation on your website 19% A Facebook 'Like' button on your site 19% Corporate blog 18% Creating your own ‘online social network’ as part of 18% your organisation’s website Facilitating ‘social shopping’ (social commerce) in 17% some way Inclusion of social media 'share' buttons on your site 14% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 19. Business uptake ofsocial media was strong during 2009 while some pared back their activities in 2010 28% Presence in social media networks 31% 10% 26% Tracking/ monitoring what is said about your brand/ 31% org./staff 14% 25% Responding to/acting on comments 30% 15% 23% To gain consumer insight/as a research tool 26% 12% 21% Online display advertising on social networking sites 19% 6% 19% Other forms of advertising on social networking sites/ 20% social media sites 9% 19% Allowing participation on your website 24% 13% 18% 2010 Corporate blog 19% 11% 2009 18% Creating your own ‘online social network’ as part of 2008 or earlier 20% your organisation’s website 8% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 20. Plans for 2011:Social media further integrated with owned media 30% Presence in social media networks 28% Tracking/ monitoring what is said about your brand/org./ 27% staff 26% 25% Responding to/acting on comments 25% 22% To gain consumer insight/as a research tool 23% 24% Online display advertising on social networking sites 21% Other forms of advertising on social networking sites/ 21% social media sites 19% 21% Allowing participation on your website 19% 25% A Facebook 'Like' button on your site 19% 18% Corporate blog 18% 2011 Creating your own ‘online social network’ as part of 18% your organisation’s website 18% 2010 Facilitating ‘social shopping’ (social commerce) in some 17% way 17% 22% Inclusion of social media 'share' buttons on your site 14% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 21. Large business isparticipating to a considerably greater extent than SMEs Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 22. Private and publicsector on par across many areas but public sector has been slower to uptake some activities 28% Presence in social media networks 25% Tracking/ monitoring what is said about your brand/ 26% org./staff 14% 25% Responding to/acting on comments 16% 23% To gain consumer insight/as a research tool 9% 21% Online display advertising on social networking sites 17% Other forms of advertising on social networking sites/ 19% social media sites 12% 19% Allowing participation on your website 19% 19% A Facebook 'Like' button on your site 19% 18% Corporate blog 15% Private Creating your own ‘online social network’ as part of 18% your organisation’s website 12% Public Facilitating ‘social shopping’ (social commerce) in 17% some way 14% 14% Inclusion of social media 'share' buttons on your site 15% 49% None of the above 59% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 23. 54% 42% of Australian business’ agree that agree that they risk losing touch they should be asking “how” to do with their customers if they don’t social media, rather than “if” they employ social media activities vs. should do it vs. 63% in 2009. 50% in 2009. Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 24. One in fourAustralian business’ have a presence on Facebook Facebook 23% Public sector: 31% 27% 14% Twitter 17% 10% YouTube 10% 6% LinkedIn 2% Large orgs SMEs 3% Flickr 29% 21% 3% MySpace 17% 13% 5% 2010 1% FourSquare 2009 16% 8% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 25. # of fansranged from 1-20,000... Average: 2,252 fans Median: 300 fans Around one in five business’ with a Facebook presence have: • 1-49 fans • 50-199 fans • 200-999 fans • 3000+ fans i.e. 60% have up to 1000 fans. Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 26. Among the 19%allowing participation on their own website in 2010… Comments/reviews can be posted on the site 59% Social media ‘share’ buttons 65% and facilitating video upload 54% Forums 65% is now more widespread. 43% Users can rate things or vote 44% Users can share the content on social networking 40% sites 29% 25% Users can tag content 21% 24% Users can upload videos 15% 21% Users can upload photos 29% 12% The ability to create groups 8% Users can upload music/other audio 2010 8% 2009 7% Users can edit content e.g. wiki pages 12% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 27. Content offered viasocial media Knowledge sharing 56% Customer support/service 50% Status updates relating to products/services etc. 49% Deals and offers 47% The opportunity to ask questions 47% The opportunity to have conversations/discussions with 31% other customers/consumers/stakeholders The opportunity to have conversations/discussions with 31% your organisation Competitions 28% Access to ‘breaking news’ and information before 24% anyone else Rich media e.g. webinars, podcasts, other video etc 21% Tailored content/offers based on demographic profiles or 19% behavioural targeting Geo-targeted offers, promotions, content 18% Access to ‘breaking news’ and information only available 17% via this channel Games/applications/tools 11% Content optimised for mobile/offered via mobile phone 9% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 28. Public sector isactive in facilitating discussion and interaction, among other content areas 56% Knowledge sharing 33% 50% Customer support/service 39% 49% Status updates relating to products/services etc. 36% 47% Deals and offers 42% 47% The opportunity to ask questions 56% The opportunity to have conversations/discussions 31% with other customers/consumers/stakeholders 33% The opportunity to have conversations/discussions 31% with your organisation 28% 28% Competitions 36% Access to ‘breaking news’ and information before 24% anyone else 22% 21% Rich media e.g. webinars, podcasts, other video etc 22% Tailored content/offers based on demographic profiles 19% or behavioural targeting 14% 18% Geo-targeted offers, promotions, content 22% Access to ‘breaking news’ and information only 17% available via this channel 31% Private 11% Games/applications/tools Public 19% 9% Content optimised for mobile/offered via mobile phone 17% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 29. Among the 33%conducting social media monitoring and/or using social media for research or insight… Nielsen BuzzMetrics 19% 72% use a specific monitoring tool/solution – 76% of large organisations vs. 65% of SMEs Visible 11% Technologies TNS Cymphony 10% Radian6 7% Buzznumbers 7% Converseon 7% Brandtology 4% “It’s important to respond to social media, it shows the company is engaged with clients.” JamiQ 2% Public sector, 20-49 employees, Sport and Rec. Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 30. Social media monitoringis being used to support a wide range of business functions Marketing communications 54% Customer service and 49% support Customer relationship management e.g. building 34% CRM database Sales team e.g. sourcing 33% sales leads, sales material PR and corporate 31% communications Product development 30% Human resources e.g. finding 20% and retaining staff Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 31. Among the 17%facilitating social shopping / social commerce… Based on intention, by 2012 we expect: Selling via Facebook 33% 31% Helping consumers make purchase decisions by offering ratings/reviews from other consumers 33% 41% Helping consumers make purchase decisions by offering communities to facilitate discussion 32% 27% Group buying offers 29% 31% Driving viral activity surrounding offers and deals 16% 23% M-commerce 14% 11% Shared lists 14% 12% Facilitating sharing content 8% 12% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 32. 3. The barriersto business investment in social media
- 33. The barriers toinvesting in social media activities are declining, but resourcing remains a issue Social media activities are high maintenance and resourcing is difficult 20% 22% Barriers relating to ROI and establishing We do not have the human resources to do any 18% KPIs have declined significantly. social media activities 18% It is difficult to measure ROI of social media 16% activities 28% Ensuring our activities are conducted in an ethical 16% way e.g. cautious of consumer privacy Social media is too risky for our brand reputation, 12% e.g. if it backfires 13% We are unsure how to engage in social media/ 11% unsure how to get started 13% We are unsure how to establish KPIs around this 8% form of marketing 15% We want to build/manage our own social networking 8% platform but are not sure how 8% There are minimal effective social media solutions 7% available in the market 7% We want to build/manage our own social networking 5% 2010 platform but can’t source a solution 4% 2009 We want to build/manage our own social networking 4% platform but the investment is too high 5% We achieved poor ROI on social media activities in 2% the past 37% There are no barriers 24% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 34. Resourcing: Very fewbusinesses have staff dedicated to social media activities and not anticipating such investment Overall Large orgs SMEs Wave 1: 9% had “staff dedicated to social media” 76% 67% 51% 23% 17% 14% 11% 8% 6% 6% 5% 2% 3% 3% 0% Yes - full time staff* Yes – but it’s part of a No, but we intend to No, but we would No, and we would not function consider it consider it Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 35. There are notenough agencies/providers with specialist expertise and I feel as though our I feel as though our experience to help us organisation lacks the organisation is scared to implement and manage knowledge and expertise implement social media our social media to implement social activities activities media activities Net agree 2009 2010 2009 2010 2009 2010 25% 32% 35% 36% 33% 53% 24% Neither agree nor disagree their knowledge and expertise in the space 23% 24% 35% 36% 19% 44% 37% 35% 25% Net disagree 21% 20% Business’ are less ‘scared’ of social media and feel more confident in Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 36. Public sector, however,lags private sector in their confidence and ‘courage’ NET AGREE 35% I feel as though our organisation lacks the knowledge and expertise to implement social media activities 51% 32% There are not enough agencies/providers with specialist expertise and experience to help us implement and manage our social media activities 34% 25% Private I feel as though our organisation is scared to Public implement social media activities 33% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 37. More than halfof those who are yet to implement social media activities feel it won’t serve their needs Results not measurable enough/cannot be tied into our KPIs 16% “I run a business, not a chat show. 7% Accounting and tax could never be classified 13% Lack of expertise/knowledge of the area 12% as chatty professions.” 11% Difficult to resource/manage/maintain 12% SME, 2-5 employees, Accounting Not enough ‘buy-in’ from senior 9% management 15% We did not see any ROI / feel there will not 7% be any ROI 26% We couldn’t source the expertise to guide 7% our social media marketing activities 5% 7% It didn’t / won't serve our needs 56% Budget cut-backs prevented further social 6% media activities / no spare budget 16% Have implemented Social Media Activities We couldn’t source the technology to 6% support our social media marketing activities 7% Have not implemented Social Media Activities Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 38. And this perceptionhas become more widespread while most others have declined 56% We do not feel social media will serve our needs 42% 26% We do not feel there will be any return on the investment 29% 16% We do not have any spare budget 17% Senior management have not (yet) ‘bought into’ social 15% media 31% 12% We don’t have enough expertise/knowledge of the area 29% 12% We feel it will be difficult to resource/manage/maintain 16% Difficult/risky to position ourselves appropriately when 11% conducting social media marketing activities 10% We are concerned it could be damaging to our brand We couldn’t source/didn’t know where to source the 7% technology to support our social media activities 3% The results are not measurable enough/cannot be tied 7% into our KPIs 14% We are concerned about the possibility of negative 7% comments resulting from these activities We have heard others have had a negative experience 7% with social media activities 5% We are unsure how to handle/concerned about 2010 7% consumers’ privacy issues 2009 We couldn’t source/didn’t know where to source the 5% expertise to guide our social media activities 4% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 39. 4. Experiences andoutcomes to date
- 40. Experiences with socialmedia activities We were just giving it a go and might implement 23% again this year 26% The results were not measurable enough/could not 16% be tied into our KPIs 21% We found we didn’t have enough expertise/ 13% knowledge of the area 23% 11% It was too difficult to resource/manage/maintain 13% We did not have enough ‘buy-in’ from senior 9% management 14% 7% We did not see any return on the investment 12% We couldn’t source the expertise to guide our social 7% media marketing activities 6% 7% It didn’t serve our needs 7% We experienced budget cut-backs and couldn’t 6% continue our social media activities 5% We couldn’t source the technology to support our 6% social media marketing activities 3% It actually backfired/we had a negative experience 4% 2010 with our social media marketing activities 2009 3% We experienced a social media ‘crisis’ Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 41. The marketing objectivesachieved through social media activity 53% Customer feedback 53% Single most important objective of 43% Relationship building 35% 42% Social Media: Word of mouth 40% Customer / market insight and research 34% 38% - Word of mouth 14% Community engagement 34% - Customer feedback 12% 33% Brand building 32% 61% - Generating revenue 11% Generating revenue Customer acquisition 27% 27% - Brand building 10% 21% 27% Increased visitation of the online content 31% 26% Retention / building loyalty 33% 24% Customer/stakeholder engagement or participation 42% 23% Community building 26% 17% Cost reductions 17% Improved search engine rankings 20% 2010 15% Lead generation 25% 2009 11% Advocacy Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 42. Degree to whichROI has been achieved on social media activities 37% 18% 23% Saw strong or reasonable Saw minimal or no ROI Have either not measured, ROI from their Social Media or don’t know how to Activities measure the ROI Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 43. A greater proportionnow achieve strong or reasonable return on their social media investment 37% Strong or reasonable ROI 24% 18% Minimal or no ROI 26% 23% 2010 Either not measured or don't know how to 2009 measure the ROI 29% Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 44. How businesses quantifythe ROI of their social media activities 67% 41% 39% Improved engagement Sales / revenue Social media with customers directly attributed to engagement metrics the activity 23% 22% 13% Insights generated from Brand movements Reduced costs social media monitoring directly attributed to the activity Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 45.
- 46. Business’ social mediaconduct – what happened in 2010? • Efforts have been consolidated and appear more focused and planned – including budget allocation • Intentions are strongest in the integration of social media and owned media • Social media activity is penetrating many areas of the business • Perceptions of social media still limit some business adoption, while resourcing remains a challenge for many • Confidence grew, investment grew, barriers have started to break down Nielsen | Community Engine Social Media Business Benchmarking Study 2011
- 47. Social Media Business BenchmarkingStudy 2011 Wave 2: 2011