Social Media has Increased Business Sales

1. Social Media Marketing for Business
Davenport University
Presented to: Dr. Gusfa
By: Catina Willis June 29, 2012

2. Research Statement
There is evidence to suggest that social media marketing
has increased business sales.
Research Question:
Is Social Media Marketing
more Cost Effective than
Traditional Marketing for
Businesses?

3. What is Social Media Marketing (SMM)
• Facebook
Research Statement:
• Groupon
• Digg
• Pinterest
Research Question:
• Twitter
• YouTube

4. How are Social Media Sales are Measured?
5. Promo Codes
7. Unique landing pages
9. Unique toll free numbers
10. Web Analytics
11. Uniform Resource Locator
(URL) links
12. Website traffic

5. General Motors (GM) Pulls $10 Million
GM says:
“facebook ads don’t work.”
GM also pulled Super Bowl ads.

6. General Motors (GM) ROI 2011
•$10 million on Facebook ad
•3.5 million on one (1) 30 second super bowl ad
•GM’s averages1.7 billion on traditional
marketing
•GM profited 3.7 billion from advertising

7. Ford Motor Company

8. Ford Motor Company’s Take on Facebook
Ford’s statement: “by using
Facebook, shopping activity
for the Explorer jumped 104%
versus the average shopping
lift of 14% following a Super
Bowl ad.

9. Ford’s Take on GM Pulling Facebook Ads
GM doesn’t get social media (Popelka, 2012)
Ford tweeted:

10. Dell Outlet
You Do the Math!
•Dell has an in-house social media
marketing team
•Deal used Twitter for no cost and
made $3,000,000
•Dell spent $836 million on traditional
advertising and made 61.13 billion

11. Sony Tweets an Offer to
1,600 Followers
A limited time offer was tweeted providing a 10% discount.
•Sony profited $1.5 million
Sony paid zero dollars to use Twitter for this promotion
•Sony spent $892 million for
advertising in 2010.
•$831 million went toward traditional
marketing channels.
$61.30 million was spent on Internet.

12. Groupon Launches First
National Campaign
Gap offers social media users a chance to purchase $50 gift cards
at half its price in 2010
•441,000 were sold
•The Gap generated $11
million in revenue
•Gap net sales for 2010
were 14.66 billion

13. Methodology
Researcher Agree Disagree
More than half of the
Ball, L. respondents from a small study
of 243 indicated that social
media was connected to at least
6% of their sales. The cost was
time and 67% indicated they use
social media 30-60 minutes per
day.
Based on new data from Applied
Carr, A. Predictive Technologies (APT),
they general see a revenue
bump in the "2% range" in a
successful promotion from
services like Facebook Places
and Foursquare.
A recent study by Comscore
Fisher, L. found that social media played a
big part in a 10% increase of
online retail spending.

14. Methodology
Researcher Agree Disagree
Based on a sample of 10,000
Mahoney, S. adults, ForeSee Results
reported: only 5% said social
media was a primary influence to
a store's website
58% of marketers using social
Stelzner, M.A. media for more than 3 years saw
improved sales. 40% of all
survey respondents saw
improved sales.
Augustine Four, the chief digital
Swallow, E. officer at Omnicom's healthcare
"You may lose revenue with
Groupons but It’s still a better
use than wasting $7.5 million on
TV ads.”

15. Conclusions
• SMM is essential for companies to maximize sales
like: Dell Outlet, Ford, Gap, and Sony.
• SMM is cost effective because most are free to use
and only require a good strategy and time.
• My literature review does support my research
question.

16. THANK YOU!
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