Campaigns to capabilities: Social media and marketing 2011

Strategy& and Buddy Media recently conducted a survey of North American marketers to learn more about how companies are embedding social media into their marketing organizations and activities. This leading research summarizes the results of that survey.

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Campaigns to capabilities Social media and marketing 2011

Contacts

New York Christopher Vollmer Partner +1-212-551-6794 christopher.vollmer @strategyand.pwc.com

This report was originally published by Booz & Company in 2011.

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Facebook, Twitter, and YouTube are the cornerstones of most social media strategies
Priority social media platforms
(% of respondents listing this platform among their top three)

94%

77%

Key observations
– Respondents reported that they use multiple social media platforms; sample average was 4.6 – Facebook and Twitter are by far the most broadly used and highest-priority platforms
42%

– Location-based social media is still emergent
25% 25%

– MySpace is a priority platform for only a limited number of respondents; most do not use it at all
13% 8% 2% MySpace

Facebook

Twitter

YouTube

Blogs

Company-owned social platforms

LinkedIn

Location-based (e.g., Foursquare)

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Today, social media lives primarily within marketing, digital, and PR
Departments responsible for leading social media today
(% of respondents)

81%

62%

48%

Key observations
– Marketing departments are primarily responsible for social media today – However, social media is often spread across multiple departments – More leading-edge companies use social media for a broader variety of applications
10% 8% 8%

26%

16%

Marketing

Digital

PR

Customer service

Research

Sales/ commerce

Product development

IT

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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A third of companies have a senior executive who is responsible for social media company-wide
Does your company have a senior executive who is responsible for social media company-wide?
(% of respondents)

35% yes

Key observations
65% no
– Overall, a third of companies reported that they have a companywide head of social media – The portion rises to 41% among companies that consider themselves “best in class” or “strong”
Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Respondents identified a range of critical success enablers
Social media success factors
(% of respondents who “strongly agree” or “agree”)

94%

93%

90%

90%

88%

86% 83% 80% 79%

62% 53%

50%

Key observations
– Softer factors appear to trump harder factors (budgets, head of social, etc.) in driving success
Ability to adapt and react quickly Having a clear champion, owner Education A culture that Supporting Clearly initiatives communi- on what can encourages with an cated support be achieved experimentaintegrated tion from executive via social marketing media management plan Training of staff who are not accustomed to using social media Strong PR capability Ability to Unique content that coordinate is exclusive to and manage multiple the audience service on each providers Head of Dedicated budget not social media shared with company-wide other digital initiatives

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Social media is a CEO-level agenda item for many companies
Is social media on your CEO’s agenda?
(% of respondents)

19% don’t know

38% yes

Key observations
– Though social is not on the agenda of many CEOs, nearly 40% of respondents reported that is it a CEO-level agenda item – This suggests that social media has moved beyond being a “fad” for many of these companies, and it is viewed more as a high-potential business tool
Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

43% no

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Social media has a range of uses
How do you use your top social media platforms?
(% of respondents)

96% 88%

75%

Key observations
56% 48% 40%

– Advertising and promotions, PR, and customer service are the primary uses today – Emerging uses include market research, sales, and product development
24%

13%

– In a minority of cases, social media is also used for internal communications, recruiting, or content generation
Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Advertising and promotions

PR

Customer service

Market research

Sales/ commerce

Product development

Internal communications

Other (recruiting, content generation, community)

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Companies view social media as offering the most benefit in the upper stages of the purchase funnel
Great or some benefit from social media
(% of respondents)

90%

89%

88% 81% 78% 76% 71% 71% 71% 66%

46%

Key observations
– Companies are deriving significant marketing value from social media – Though the generation of sales and leads is rated lower than other benefits, almost half of respondents see it as a benefit of social media
Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results
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Brand building

Interactivity

Buzz building

Consumer/ insights

Enhanced marketing effectiveness

Broad reach

Creativity and innovation

Speed of execution

Lower cost

Traffic to our sites

Generation of sales/ leads

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Marketers measure social media across all stages of the purchase funnel
Metrics used for social media
(% of respondents)

93% 88%

92%

81%

66%

Key observations
– Companies are still trying to “crack the code” on the measurement of social media – Most respondents report using multiple approaches to measuring social media as metrics mature – Most companies are not yet able to link transactions to social media
Reach (uniques, PVs, video views, time spent) Buzz (trending topics, blog mentions, influentials) Engagement (forwards, shares, re-tweets, posts, likes) Participation (fans, followers, check-ins, sign-ups) Transaction (sales, leads generated) Advocacy (comments, feedback, participation in polls)

38%

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Respondents agree that social media will become a bigger part of their marketing mix
Social media in the marketing mix — opinions
(% of respondents who “strongly agree” or “agree”)

90%

65%

54% 49% 40% 32% 27% 19%

Key observations
– Though social media is an increasingly important part of the marketing mix, it is not replacing other vehicles like search or owned sites – Respondents appear bullish on integration and don’t believe that it is “impossible” to measure
Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Social metrics should be tailored to the needs of the campaign

Our organization will integrate social media into all advertising and marketing

Investing in Social media relationships should be the with consumers fastest-growing through social segment of our media is more marketing budget important to our brands than mass reach

Social media is driving our approach to mobile marketing

Our brand Social media is a presence on traffic source that platforms such is more important as Facebook than search and Twitter is becoming more important than our own site

Evaluating campaigns that integrate social and traditional media feels impossible today

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Companies have a range of capabilities already in place or are looking to build them
Organizational elements
(% of respondents)

7% 29%

3% 34%

9% 32%

4% 37%

16%

4% 47%

16%

16%

9% 56%

25%

41%

Do not have, not looking to build Building or will build soon Have today

28%

35%

46% 40%

65%

63% 59% 59% 56% 50% 49% 38% 44%

Key observations
– Only a handful of companies have all of these organizational elements in place today – However, almost half report that they will have all of them in place in one or two years
Note: Numbers may not total 100 due to rounding. Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

35%

35%

15%

Social media policies

Integration of social media into marketing plans overall

Monitoring Overall and rapid strategy for response social media capability in social media

Social media KPIs and dashboards agency for social partnerships media

Social media creative/ content capability

Platforms/ forums to share results/best practices

Consumer insights generation via social media

Social Revenue media-driven generating customer platforms service built from channels social media

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Almost all companies report that they are growing their spend on social media
Future investments in social media
(% of respondents)

5%
Will remain unchanged Somewhat more resources Substantially more resources

39%

Key observations
– Companies clearly intend to spend more on social media in the future to build bigger social programs and platforms – No respondents reported that they would spend less on social media in the future
Note: Numbers may not total 100 due to rounding. Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

57%

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Hiring full-time employees is the number one investment being made in social media
Investments in social — type
(% of respondents)

57%

48%

39%

38%

25%

Key observations
– As companies are building up their social media, they are focused on hiring in-house staff – Partners also will play a key role in supporting companies as they use social media more widely

16%

14%

Hiring full-time employees

Services provided by partners

Creating more content

Media buys

Consulting/other professional services

IT systems/ partnerships

Hiring contractors, freelancers, or part-time employees

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results
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Three primary roles make up a social media team
This role is on our social media team today
(% of those with dedicated resources)

Type of full-time roles we are planning to invest in in the near future
(% of respondents investing in FTEs)

72%

63%

59%

49% 43% 36% 30% 28% 24%

Key observations
– Today, community management is the most common role – Looking forward, hiring creative talent is the top priority – IT talent is not a priority for social media hiring

10%

Community Creative talent managers (editors, content creation)

Analysts/ strategy resources

Senior management (not including head of social media if applicable)

Product/ software developers

Community Creative talent managers (editors, content creation)

Analysts/ strategy resources

Senior management (not including head of social media if applicable)

Product/ software developers

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Marketers report that social media spend will increase significantly as a percentage of digital spend in the next three years
Social media spend as a percentage of digital marketing spend
<5% 5–10% 10–20% >20%

Today
7% 5%

Three years from today

13%

Key observations
– Social media will begin to take up a meaningful share of digital budgets for many companies – Overall digital budgets are also growing, suggesting a substantial uptick in spend in the coming years
Note: Includes only those responses where an answer was provided for social media as a percentage of digital both for “today” and for “three years from today.” Numbers may not total 100 due to rounding. Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

28%

22%

67%

32%

27%

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Within these budgets, social media is precipitating a shift inside digital media more than away from other types of ad spend
Which other media budgets does social draw from?
(% of respondents)

79%

Key observations
21% 15%

– Social media is primarily drawing on digital media budgets, likely shifting funds away from digital advertising vehicles such as display
6% 6% Newspapers 5% Radio

Digital

TV

Magazines

Outdoor

Source: Strategy&/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results
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This report was originally published by Booz & Company in 2011.

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