Presentation Slides: NYC Social Media Club 6/17 Meeting w/Josh Chasin, Chief Research Officer, comScore, Inc. & David Binkowski, Director of Word of Mouth Marketing at MS&L. Moderated by: Donald Schwartz, Imagelink Productions
Social Media’s Return On Investment – When Will We Get Buy-in?
1. The Social Media Club of NYC Presents: Social Media’s Return On Investment – When Will We Get Buy-in?June 17, 2009 Presenters: Josh Chasin, Chief Research Officer, comScore, Inc. David Binkowski, Director of Word of Mouth Marketing at MS&L Moderator: Donald Schwartz, Dir. Online Promotion & Technology Writer, Imagelink Productions, Technology Coordinator Fast Company.com For NYC Social Media Club: Les Blatt, New Media and Multimedia Strategist Acknowledgments: PR Newswire
5. 5 What We Do…. We are the largest provider of digital marketing intelligence, using a platform that helps our customers make better-informed business decisions and implement more effective digital business strategies We measure the continuous online activity of 2 million people globally who have granted us explicit permission to confidentially measure their Internet usage patterns. Our products and solutions provide our customers deep insights into consumer behavior, both online and offline
6. 6 360° View of Consumer Behavior The Only Global Measurement of Audience and e-Commerce Web Visiting and Viewing Online Transactions Demographics Life Stages Search Behavior Streaming Video Media Exposure 32 Media Metrix Reported Countries 172 Countries with Sample Presence Powerful PlatformGlobal Panel of 2MM Users, Largest of Its Kind
7. 7 8out of the top10 CONSUMER BANKS 10out of the top10 INVESTMENT BANKS 4out of the top5 CABLE COMPANIES 5out of the top5 TELEPHONE CARRIERS 7out of the top10 PHARMA / HC COMPANIES 23out of the top25 ONLINE PROPERTIES 7out of the top8 CREDIT CARD ISSUERS 45out of the top50 INTERACTIVE AGENCIES 9out of the top10 US MEDIA Serving a Diverse Marketing Constituency
11. Community and Personals sites are seeing negative growth, likely a result of Social Networking sites replacing a large part of these sites’ functionalityWorldwide Online Category Penetration vs Growth 90% Search/Navigation 80% Retail 70% e-mail Directories/Resources Downloads Social Networking* 60% News/Info Multimedia Community Telecommunications 50% Blogs Category Penetration (% of Online Users) ISP Reference 40% Instant Messaging Photos 30% Radio 20% Personals Teens Retail - Music 10% 0% -40% -20% 0% 20% 40% 60% 80% Category Growth Year Over Year Source: comScore World Metrix
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13. In May 2009, 76% of US Internet Users Visited a Social Networking Property
16. Note that these numbers are computer access of the Internet and exclude mobile Show of hands; how many of you are twittering on your phone right this minute?) You can let me know: @jchasin That growth in visits looked small on the Facebook scale, so let’s blow it up… Ashton Kutcher joins Twitter Regarding Twitter…
26. In the World of Social Media… Clarity is key Keep measurement simple Einstein: things should be as simple as possible… but no simpler Control is not the point
27. So What About ROI? First off… for many brands and categories, participation in social media may be about staying even Before thinking about ROI… we need to consider whether social media is at least a cost of doing business There is no one magic metric What to measure is a function of what you’re trying to accomplish
29. Why Is Social Media So Popular? Its Human Nature to Advocate Advocates represent ~40% of online category buyers AUTOMOTIVE CONSUMER ELECTRONICS HOME LOAN HOTELS Base (Advocate/Non-Advocate who purchased in the past 6 months/CE is 3 months) AUTO (196/382); CE (257/348); TRAVEL (176/447); HOME LOAN (195/299)
30. Advocates Extend Your Brand 8.2 20.3 AUTO Advocates tell twice as many people about their purchases creating awareness… CONSUMER ELECTRONICS 14.7 7.2 5.2 11.1 HOTELS 4.5 HOME LOANS 9.2 Base (Advocate/Non-Advocate who purchased in the past 6 months/CE is 3 months) AUTO (196/382); CE (257/348); TRAVEL (176/447); HOME LOAN (195/299)
31. Advocates Are Heavier Searchers Average Searches Per Month % Reach Social Networks 104 Queries 84% 72 Queries 47%
32. With Respect to Social Media ROI… Marketers fall into 2 categories: Those waiting to see if there is a way to generate a return Those who have already jumped in However…. Thus far the success stories tend to be anecdotal case studies Dove on YouTube Dell on Twitter 30
35. The Takeaway Social media are pervasive and consumption is increasing Embracing web 2.0 marketing means letting go and diving in Not all brands and companies are comfortable with that Including some that think they are Brand advocates touch many more consumers with their influence And not surprisingly, are heavy users of social media Brand strategies (and ROI metrics) for social media need to be a function of brand goals and objectives There is no silver bullet You don’t need someone to prove to you the ROI of social media. You need to develop programs in line with goals and objectives, and figure out how to measure the ROI for YOU.
38. 36 Who am I? SVP, Word of Mouth Marketing @ MS&L Run digital team in New York, formerly Ann Arbor Started WOM practice 5 years ago, wrote WOMMA blogger ethics code, MEAP Work across practices on digital strategy