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The return on a share: 
Quantifying the monetary 
value of social sharing 
ANDY STEVENS 
SHARETHIS 
OCTOBER 2729, 2014 ORL...
Andy Stevens 
VP Strategy  Research 
ShareThis 
@AndrewStevensUK
SHARING IS THE CONNECTIVE THREAD OF THE SOCIAL WEB 
With the growth of the social web, we turn more often to friends and s...
3 
THE 
IMPACT OF 
SHARING 
IS WELL-DOCUMENTED 
73% of survey respondents process 
information more deeply, thoroughly, an...
4 
BUT HOW DOES IT 
ALL TRANSLATE TO 
MONETARY IMPACT?
SHARETHIS COMMISSIONED THE FIRST STUDY OF ITS KIND 
TO MEASURE THE IMPACT OF SHARING ON THE 
PURCHASE PROCESS 
PURCHASE 
I...
CONJOINT METHODOLOGY USES STATISTICAL MODELING TO 
DETERMINE THE RELATIVE IMPORTANCE OF VARIOUS 
FACTORS AFFECTING THE CON...
RECOMMENDATIONS ARE MORE 
IMPORTANT TO THE CONSUMER PURCHASE 
DECISION THAN BOTH BRAND AND PRICE 
7 
Recommendations accou...
8 
SIMILAR PATTERN ACROSS DIFFERENT 
VERTICALS 
58% 
34% 
CPG Electronics Autos 
Recommendations 
8% 
56% 
24% 
19% 
56% 
...
ONLINE SHARES ARE NEARLY AS VALUABLE 
AS IN-PERSON RECOMMENDATIONS 
9 
6.3% 
7.3% 
9.5% 
10.6% 
Consumer Ratings 
Consumer...
10 
RETURN ON ‘EXCELLENT’ 
RECOMMENDATIONS 
Highly positive shares yield a return of 9.5% 
6.3% 
7.3% 
9.5% 
10.6% 
10.2% ...
11 
NEGATIVE RETURN ON ‘BAD’ 
RECOMMENDATIONS 
Negative shares lower purchase intent by 11.0% 
(11.3%) (11.2%) 
(11.0%) 
(...
12 
THE SOURCE OF THE SHARE IS 
IMPORTANT 
Strangers Acquaintances Close Friends / Family Professionals 
8.0% 
7.7% 7.5% 
...
13 
FOR AUTO BRANDS, AN EXCELLENT 
SHARE IS WORTH $3,708 
Consumer Ratings 
Consumer Reviews 
Online Shares 
In-Person Rec...
14 
FOR ELECTRONICS BRANDS, AN 
EXCELLENT SHARE IS WORTH $25 
Consumer Ratings 
Consumer Reviews 
Online Shares 
In-Person...
FOR CPG BRANDS, AN EXCELLENT 
SHARE IS WORTH $0.92 
That’s how much more consumers are willing to pay for the average 
sup...
16 
Key Findings 
Recommendations have more impact on a consumer’s 
decision-making process than brand or price
Recommendations have more impact on a consumer’s 
decision-making process than brand or price 
Highly positive online shar...
Recommendations have more impact on a consumer’s 
decision-making process than brand or price 
Highly positive online shar...
19 
WHAT DOES IT ALL 
MEAN?
DRIVE EARNED MEDIA SUCCESS WITH 
SOCIAL INSIGHTS 
VIEW CURRENT CUSTOMERS AS MARKETING PARTNERS 
ENABLE CUSTOMER EVANGELISM...
UNLOCK THE VALUE OF SHARING WITH PAID MEDIA 
IDENTIFY 
Use social data to identify users who shared relevant content 
TARG...
22 
THE VIRTUOUS CIRCLE OF SHARING 
SHARING 
INSIGHTS 
OPTIMIZATION 
EARNED MEDIA 
LARGER AUDIENCE
THANK YOU
Learn more about past and 
upcoming events 
SOCIALMEDIA.ORG/EVENTS 
OCTOBER 2729, 2014 ORLANDO SOCIALMEDIA.ORG/SUMMIT2014
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The return on a share: Quantifying the monetary value of social sharing, presented by Andy Stevens

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In his Brands-Only Summit Pre-Conference presentation, ShareThis' Andy Stevens measures and quantifies the monetary value of different forms of recommendations.

Using scientific methodology, he shows the value of social recommendations relative to brand and price in determining consumer purchase intent.

Published in: Social Media
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The return on a share: Quantifying the monetary value of social sharing, presented by Andy Stevens

  1. 1. The return on a share: Quantifying the monetary value of social sharing ANDY STEVENS SHARETHIS OCTOBER 2729, 2014 ORLANDO SOCIALMEDIA.ORG/SUMMIT2014
  2. 2. Andy Stevens VP Strategy Research ShareThis @AndrewStevensUK
  3. 3. SHARING IS THE CONNECTIVE THREAD OF THE SOCIAL WEB With the growth of the social web, we turn more often to friends and strangers for recommendations on where to go, what to eat, and what to buy. 2
  4. 4. 3 THE IMPACT OF SHARING IS WELL-DOCUMENTED 73% of survey respondents process information more deeply, thoroughly, and thoughtfully when they share it. 70% of people trust consumer reviews they found online. 38% During a four-week test, Starbucks’ Facebook fans and “friends of fans” were 38% more likely to make a purchase.
  5. 5. 4 BUT HOW DOES IT ALL TRANSLATE TO MONETARY IMPACT?
  6. 6. SHARETHIS COMMISSIONED THE FIRST STUDY OF ITS KIND TO MEASURE THE IMPACT OF SHARING ON THE PURCHASE PROCESS PURCHASE INTENT RECOM- -MENDATION PRICE PREMIUM BRAND LUXURY GENERIC ECONOMY TYPE STRENGTH Excellent Good Moderate Bad SOURCE Family Friend Acquaintance Stranger Professional In-person Social Network Trade Publication
  7. 7. CONJOINT METHODOLOGY USES STATISTICAL MODELING TO DETERMINE THE RELATIVE IMPORTANCE OF VARIOUS FACTORS AFFECTING THE CONSUMER PURCHASE DECISION WHICH OF THE FOLLOWING TWO PRODUCTS ARE YOU MORE LIKELY TO PURCHASE? BRAND PRICE TYPE STRENGTH SOURCE RECOMMENDATION 6 Premium Brand 10% higher Facebook Post Friend x Economy Brand 10% lower Car Driver Review Professional Sample conjoint survey screen
  8. 8. RECOMMENDATIONS ARE MORE IMPORTANT TO THE CONSUMER PURCHASE DECISION THAN BOTH BRAND AND PRICE 7 Recommendations account for 57% of the consumer purchase decision: RECOMMENDATIONS 57% PRICE 28% BRAND 15%
  9. 9. 8 SIMILAR PATTERN ACROSS DIFFERENT VERTICALS 58% 34% CPG Electronics Autos Recommendations 8% 56% 24% 19% 56% 25% 19% Price Brand
  10. 10. ONLINE SHARES ARE NEARLY AS VALUABLE AS IN-PERSON RECOMMENDATIONS 9 6.3% 7.3% 9.5% 10.6% Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations
  11. 11. 10 RETURN ON ‘EXCELLENT’ RECOMMENDATIONS Highly positive shares yield a return of 9.5% 6.3% 7.3% 9.5% 10.6% 10.2% Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations Professional Reviews 6.0% 6.2% 11.2% 13.2% 7.1% 7.6% 8.1% 9.3% 10.5% 5.7% 8.1% 9.2% 9.3% 10.0% CPG Electronics Autos
  12. 12. 11 NEGATIVE RETURN ON ‘BAD’ RECOMMENDATIONS Negative shares lower purchase intent by 11.0% (11.3%) (11.2%) (11.0%) (11.2%) (10.2%) Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations Professional Reviews (13.1%) (13.1%) (12.5%) (12.9%) (10.6%) (10.6%) (10.5%) (10.6%) (10.5%) (10.2%) (10.0%) (9.9%) (10.0%) (9.9%) CPG Electronics Autos
  13. 13. 12 THE SOURCE OF THE SHARE IS IMPORTANT Strangers Acquaintances Close Friends / Family Professionals 8.0% 7.7% 7.5% 12.7% 8.5% 9.0% 14.0% 9.6% 10.5% 10.7% 11.7% CPG Electronics Autos
  14. 14. 13 FOR AUTO BRANDS, AN EXCELLENT SHARE IS WORTH $3,708 Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations Professional Reviews $2,312 $3,277 $3,708 $3,766 $4,702
  15. 15. 14 FOR ELECTRONICS BRANDS, AN EXCELLENT SHARE IS WORTH $25 Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations Professional Reviews $22.09 $23.56 $24.91 $28.76 $32.44
  16. 16. FOR CPG BRANDS, AN EXCELLENT SHARE IS WORTH $0.92 That’s how much more consumers are willing to pay for the average supermarket product if it was positively shared about by someone in their social network. $0.42 $0.44 $0.92 $1.05 15 Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations
  17. 17. 16 Key Findings Recommendations have more impact on a consumer’s decision-making process than brand or price
  18. 18. Recommendations have more impact on a consumer’s decision-making process than brand or price Highly positive online shares generate a 9.5% increase in purchase intent, while negative reviews can decrease intent by 11.0% 17 Key Findings
  19. 19. Recommendations have more impact on a consumer’s decision-making process than brand or price Highly positive online shares generate a 9.5% increase in purchase intent, while negative reviews can decrease intent by 11.0% Online sharing has a measurable effect on a product’s prices, driving incremental value by as much as $9,623.74 for luxury automobiles In fact, online shares are nearly as valuable as in-person recommendations 18 Key Findings
  20. 20. 19 WHAT DOES IT ALL MEAN?
  21. 21. DRIVE EARNED MEDIA SUCCESS WITH SOCIAL INSIGHTS VIEW CURRENT CUSTOMERS AS MARKETING PARTNERS ENABLE CUSTOMER EVANGELISM MONITOR YOUR ONLINE PRESENCE THROUGH SHARING ADDRESS NEGATIVE REVIEWS OPENLY AND HONESTLY
  22. 22. UNLOCK THE VALUE OF SHARING WITH PAID MEDIA IDENTIFY Use social data to identify users who shared relevant content TARGET Align messaging with sharers’ interests and deliver media on the content with which they engage OPTIMIZE Use social signals to determine where and when to spend media dollars Heavy-up deployment around key events to drive conversion when conversations are abuzz Monitor sharing trends in real time and capitalize on user intent as quickly as possible throughout the purchase funnel
  23. 23. 22 THE VIRTUOUS CIRCLE OF SHARING SHARING INSIGHTS OPTIMIZATION EARNED MEDIA LARGER AUDIENCE
  24. 24. THANK YOU
  25. 25. Learn more about past and upcoming events SOCIALMEDIA.ORG/EVENTS OCTOBER 2729, 2014 ORLANDO SOCIALMEDIA.ORG/SUMMIT2014

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