As the field of social media marketing continues to grow and evolve, social media strategists are trying to determine where to invest their growing budgets for maximum impact. This webinar will explore the key goals and priorities of social media marketers in 2010 and how those priorities are shifting in 2011. Join industry expert Jeremiah Owyang to learn where large enterprises are focusing their social media marketing budgets in 2011, as well as spending priorities based on the maturity of their social programs.

1. 2011 Social Marketing Business Forecast January 18, 2011

2. 2 Proprietary and Confidential | Agenda Introductions Who We Are & How We Can Help The Social Media Business Forecast – 2011 the Year of Integration Q&A Resources

3. 3 About The Speakers Jeremiah Owyang Partner, Altimeter Group Former senior analyst for Forrester Research, Hitachi Data Systems, Pod Tech Michael Della Penna, Managing Director and EVP, StrongMail Former CMO of Epsilon and Bigfoot Interactive, VP of strategic development at CNET Networks, Inc., VP of marketing at ZDNet

4. Who is StrongMail Agency Services? Founded in 2010; Headquartered in New York Focus on Email & Social Media Combination of StrongMail’s Strategy Group & Key Acquisitions Conversa Marketing – Social CRM Agency Magnetik – Digital Marketing Agency PopularMedia – Social Sharing Technologies Full-Service Digital Marketing Agency with Industry-Leading Email and Social Media Marketing Technology Platforms Help Leading Fortune 2000 Brands Build Stronger, More Profitable Relationships

7. Segmentation strategies & persona development

8. Datamart/loyalty engine design and development

10. Creative strategies and execution

11. Website development

12. Campaign execution community management

14. Social data collection and overlays/enhancements

16. 7 StrongMail and Thread Marketing January 18, 2011 Jeremiah Owyang Industry Analyst Social Business Forecast: 2011 The Year of Integration Research reveals focus on integration, staffing, advertising, and measurement.

17. 8 What happened in 2010 What’s going to happen in 2011 What companies should do about it Agenda:

18. Image by Slowtronused with Attribution as directed by Creative Commons http://www.flickr.com/photos/fuckr/91530309 2010 Overview © 2010 Altimeter Group

19. Just 2 years in corporate social business, 2010 was the year of formation.

20. Most Social Media programs report under Marketing or Corporate Communications

21. Companies organize for social in 5 ways

23. Authentic

24. Experimental

25. Not coordinated

27. Consistent

28. May not be as authentic

30. Business units undertake own efforts

31. Spreads widely around the org

32. Takes time

35. Unlike Organic, employees are organized

37. Maturity drives Total Budget, Team Size, and Org Model Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 We asked 140 Corporate Social Strategists their total strategy budget, number of full-time equivalent staff dedicated to social media, and organizational model:

38. Maturity drives Total Budget, Team Size, and Org Model Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 Corporations who are just getting started have miniscule budget and are significantly understaffed in a centralized team –this does not scale.

39. Maturity drives Total Budget, Team Size, and Org Model Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 Corporations who have formalized their programs have a cross-functional team that lead and serve many business units with a larger budget line–they may not deploy on their behalf.

40. Maturity drives Total Budget, Team Size, and Org Model Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 Mature and Advanced corporations have only slightly large budgets but involve many more across the company and are formed in Hub and Spoke, and often “Dandelion.”

41. Image by ronni44052 used with Attribution as directed by Creative http://www.flickr.com/photos/ronnie44052/2730239605 2011 Forecast © 2010 Altimeter Group

42. 2011 is the Year of Integration

43. For Internal Goals In 2011, Social Strategists will focus on Measurement of ROI Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 We asked 140 Corporate Social Strategists: “What internal social strategy objectives will you focus most on 2011?”

44. Social Strategists struggle with relying on engagement data We asked 140 Corporate Social Strategists: What measurements are most important to evaluating the success of your program? Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010

45. In external “Go to market,” a focus will be on integrating social onto the corporate website Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 We asked 140 Corporate Social Strategists: “What external social strategy objectives will you focus most on 2011?”

46. 2010-2011: Adoption of Social Business programs We asked 140 Corporate Social Strategists if they have or will adopted any of the following 12 social business programs: 2011 2010 Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010

47. 2010-2011: Spending on Social Business programs We asked 140 Corporate Social Strategists their annual budgets for the following 12 social business programs: $278,000 $160,000 $129,000 $120,000 $108,000 $98,000 $90,000 $47,000 $47,000 $37,000 $23,000 $22,000 2011 2010 Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010

48. 2011 top spending by Company Maturity Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 We asked 140 Corporate Social Strategists their budget for 12 social business programs in 2010, and projected increases/decreases in 2011 to calculate top spending by Company Maturity in 2011:

49. 2011 top spending by Maturity Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 A small compartment of staff will be hired, scalable branded communities, and reliance on agencies which could help with monitoring.

50. 2011 top spending by Maturity Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 Teams will continue to grow, but likely stymied by true “engagement.” Brands may throw ad dollars and campaigns in order to scale –expect few to have maturity to truly engage.

51. 2011 top spending by Maturity Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010 Expect the advanced to customize social media software and data, and then focus on engagement with social media agencies of record (SMAOR) –with less focus on advertising than the mature.

52. 34 Advanced Buyers spend 8X more on Boutiques than Traditional Agencies

53. Image by zetsonused with Attribution as directed by Creative Commons http://www.flickr.com/photos/zetson/254608875 How You Should Invest in 2011 © 2010 Altimeter Group

54. Invest in scalable social media programs 36

55. Hire correctly (Gurus/Ninjas/Samurai need not apply) and properly train for scale Integrate social media on the corporate website, then aggregate and curate Invest in advertising that leverages social graph Build an unpaid army of advocates –get your customers to do the work for you Invest in scalable systems like SCRM and SMMS Learn to measure using the ROI Pyramid Invest in scalable social media programs 37

56. Gurus, Ninjas, and Samurai need not apply Hire a program manager rather than a social media “hot shot.” Seek candidates with a track record of early technology adoption in their careers. Look for a corporate entrepreneur, comfortable with “calculated risks.” An internal resource to serve the entire enterprise. 1) Hire correctly and properly train for scale 38

57. 2) Pragmatically integrate social media on the corporate website, then aggregate and curate 39 8. Seamless integration 7. Social log-in triggers sharing 6. Users stay on site with social log-in 5. Aggregate discussion on site 4. Brand integrated in social channels 3. Link away but encourage sharing 2. Link away with no strategy 1. No social integration Source: http://www.web-strategist.com/blog/2010/05/19/slides-roadmap-for-integration-of-social-into-your-corporate-website/

58. 3) Invest in advertising that leverages social graph Advertising is the second highest social business program spend in 2010-2011 ($104,000 and $160,000) 48% of corporations plan to increase their spend in 2011 Focus on clear metrics Make ads engaging and tie to social graph –not just banners 40 Twitter’s advertising is a combination of both earned and paid –that results in WOM

59. Invest in Advocacy programs – they scale Research indicates a 5 step process Example: Microsoft has @4000 MVPs who are nominated by peers, employees and other MVPs; MVPs write books, articles, participate in user groups, host events, and answer community questions 4) Build an unpaid army of advocates –get your customers to do the work for you 41

60. SCRM connects the social web to your customer data bases, in 2010 to 1011 –budgets are small $19K to $37K (SCRM) but growing Most corporations don’t know they are implementing SCRM, as brand monitoring integrated with CRM applies Invest in Social Media Management Systems (SMMS) to help your brands scale. Forecast: $14K to $22K (SMMS) in 2011 spending Vendor short list: StrongMail Social Direct, CoTweet, HootSuite, Sprinklr, Objective Marketer, Expion, SpredFast, or Seesmic 5) Invest in scalable systems like SCRM and SMMS 42

61. Learn to measure correctly Serve the right metrics to the right roles See: The Social Media ROI Pyramid 6) Learn to measure using the ROI Pyramid 43

62. ROI Pyramid: Roles View Provide the right metrics to the right audience. A novice mistake is to provide Engagement Data to executives.

63. The ROI Pyramid: Metrics View These metrics are formulas comprised of the tier below them. Currently, there is no industry standard.

64. The ROI Pyramid: Metrics Examples (there are more) A junior mistake is providing Engagement Data to executives –instead focus on business metrics.

65. The ROI Pyramid Role: Metrics: Specific Data (examples):

66. 2010 was the read of Foundational Investments. In 2011, expect to see a focus on Measurement, Integration, Staffing and Advertising. Invest in Scalable Programs that leverage your crowds –1:1 dialog does not scale. Summary 48

67. This research is published under the spirit of Open Research. Use it, reference it, and build on it. The more you share the more we research we can conduct. Please spread it widely. Our papers are published under non-commercial Creative Commons – you are free to use our research, with attribution to Altimeter Group. Open Research 49

68. 50 THANK YOU Jeremiah Owyang jeremiah@altimetergroup.com web-strategist.com/blog Twitter: jowyang Research team includes significant contributions from Christine Tran, and Charlene Li, Altimeter Group

70. Whitepapers

71. Research

72. Case Studies

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74. Expert Advice & Blogs

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