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ChatThreads-Ogilvy Integrated Social Media Business Impact Study 2011


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The full presentation of our ARF Audience Measurement 6.0 presentation on Integrated Social Media Business Impact for the Quick Service Restaurant Category.

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ChatThreads-Ogilvy Integrated Social Media Business Impact Study 2011

  1. 1. Integrated Social Media:Business Impact Study 2011Emerging Hot Topics Part I – #4Irfan Kamal Dr. Walter CarlSVP, Digital/Social Founder and Chief Research OfficerOgilvy ChatThreads
  2. 2. The New, More Pointed Questions•  Social is no longer an afterthought: It’s now where many of our customers spend their time.•  We need to plan budget allocations in 2011 and 2012 around concrete business goals. To that end: 1. Can social media impact sales (spend / consumption)? 2. Which channel combinations are the most effective? #ARFAM6
  3. 3. Situation•  Can social media impact sales?•  Two recent studies with conflicting results –  (+) Edison Research 2011: 24% of surveyed social network users cited Facebook as an influencer of their purchase decisions –  (-) Forrester/GSI Commerce 2011: Social networks drove <1% sales – based on directly traceable effect/referrer #ARFAM6
  4. 4. Objectives•  Evaluate the purchase impact of social media, by itself, relative to and in conjunction with other channels•  Social media = Facebook (brand page or feed item) Twitter (brand handle or tweet) Online video/Youtube or Facebook Online rating/review Blog #ARFAM6
  5. 5. Methodology:Overview•  Category: Quick Service Restaurants (QSR), including the following 5 brands: KFC, McDonald s, Subway, Taco Bell, Wendy’s (analysis was category and brand-specific)•  Data (from ChatThreads BrandEncounter™ Platform): Real-time capture of brand touchpoints reported via mobile device (SMS) or Web browser companion button for 7 days, surveys pre/post touchpoint tracking•  Recruitment: Screened for recent QSR visits; active on social media within the past; QSR brand fan/follower status•  Participants: 404 participated on rolling 7-day basis, submitting 5,623 touchpoints between 1/20/11 and 5/6/11 (2 staggered time periods) #ARFAM6
  6. 6. BRANDS Findings Preview:Significant Touchpoint Examples Social media report examples: FB BRAND FEED: [Wendy s] face BLOG: People that love taco bell book post on my wall the burger are just blogging at their experience looks good – Just a friendly there and people who work there reminder that our burgers are are commenting on how much their made with 100% pure ... company is hiring because of the need for jobs. REVIEW: This person here FB FRIEND STATUS: Friends really loves KFC and goes been out at KFC and enjoyed a there weekly. delicious meal. OOH report examples: BILLBOARD: [McDonald s] great BILLBOARD: billboards with a smiling face that [Subway] made me spells out outrageous values want to buy it #ARFAM6
  7. 7. Key Methodology Observations•  To attempt to minimize the impact of fans/ followers who already spend more than others, we looked specifically at the relationship between touchpoint exposure and pre- and post- changes in purchase (consumption, spend)•  We looked at a short time frame (1 week) to focus in on the immediate impact of the touchpoints•  Only statistically significant (95% CI, p<0.05) results are reported #ARFAM6
  8. 8. Results Preview: Exposure #ARFAM6
  9. 9. Results: Exposure Volume QSR Media Touchpoints 1.00 0.90 0.80 0.70 0.60Index   0.50 0.40 0.30 0.20 0.10 0.00 TV ad Word of OOH Social PR Radio Online Print Search Website mouth media (roll up) (roll up) (roll up) (roll up) (roll up) Source: ChatThreads BrandEncounter™ QSR Study. n = 5,623 touchpoint encounters. Participants n = 404. Q1-Q2 2011. #ARFAM6
  10. 10. Results Preview: Spend #ARFAM6
  11. 11. Findings Preview: Does Social Media Impact SPEND TREND? YES. LIKELIHOOD OF A SPEND INCREASE IS 1.5-7X* EXPOSURE: Social media (KFC) +7x Social media + OOH (Category)… +1.5x*Compared to people unexposed to these touchpoints #ARFAM6
  12. 12. Findings Preview: Does Social Media ImpactSPEND AMOUNT? YES. +17% Social media + PR (Category) WEEKLY SPEND AMOUNT #ARFAM6
  13. 13. Results Preview: Consumption #ARFAM6
  14. 14. Findings Preview: Does Social Media Impact CONSUMPTION TREND? YES. LIKELIHOOD OF A CONSUMPTION INCREASE IS ~2X* EXPOSURE: Social media + TV ad (Wendy’s)… +2x Social media + OOH (Category)… +1.5x*Compared to people unexposed to these touchpoints #ARFAM6
  15. 15. Findings Preview: Does Social Media Impact CONSUMPTION FREQ? UNCLEAR*. ? 7 DAY CONSUMPTION FREQUENCY*Is the magnitude significant enough to be managerially important? #ARFAM6
  16. 16. QSR Findings Preview Summary: Social Media Purchase Impact Social+PR Exposure +17% increase in spend (category) Social+TV Exposure 2x greater likelihood of higher consumption (Wendy’s)EXPOSURE Social only Exposure TV only Exposure 7x greater likelihood 3x greater of higher spend (KFC) likelihood of higher spend (Taco Bell) Social+OOH Exposure 1.5x greater likelihood of higher spend or consumption (category) #ARFAM6
  17. 17. QSR Study Preview:Conclusions•  Social media, particularly when combined with OOH, PR or TV exposure is associated with significant purchase shifts across QSR –  +17% week-on-week spend amount increase –  ~2x higher likelihood of consumption increase week-on-week –  Multi-channel matters! Only 1 significant result by itself vs. 4 significant in combination with other channels•  Relative to exposure, social media appears to provide strong impact –  Evaluate driving purchase by increasing exposure to social + OOH/PR/TV combinations #ARFAM6
  18. 18. QSR Study Preview:To Explore•  Data across other industry sectors•  Data across online or hybrid sectors (e.g. e-tail)•  Data across extended time periods, to capture longer-term effects (e.g. for TV ads)•  Correlation with specific brand activities within social media•  Larger sample sizes to look at finer interactions #ARFAM6
  19. 19. Thanks, and for More…• Irfan Kamal,   twitter: @irfankamal• Dr. Walter Carl,   twitter: @ChatThreads #ARFAM6
  20. 20. Appendix:Data Collection Detail #ARFAM6
  21. 21. Data Collection Platform: ChatThreads BrandEncounter™ Wendy’s 1 Visited brand’s Participant records brand, touchpoint and experience Facebook page 3 via SMS or browser button. Very positive Time/date is auto-stamped. 8:09 pm; 1/24/2011 400+ participants recruited through Geo-located. 3rd party proprietary community. Aberdeen, WA 4 RETAIL   Pictures of the touchpoint can be added to record. EVENTS   2 SOCMED   SAMPLE   “I f 5 a linollowed GAMING  Participant encounters Participants can also add post k theya brand touchpoint. notes. my ed on FB w all”Consumers can recordany touchpoint includingsocial, TV, search, print,online ads and OOH. All brand touchpoints captured, including social, TV, search, print, online ads, OOH (total of 21) #ARFAM6