The Role of Social Media in Building Brands: Sizzle, Steak or the Whole Meal? Linda Abraham
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1 The Role of Social Media in Building Brands: Sizzle, Steak or the Whole Meal? Linda Abraham April 20, 2011
2 Who is comscore? Global Leader in Measuring the Digital World NASDAQ Clients SCOR Employees 1,000+ Headquarters Global Coverage Local Presence 1,700+ worldwide Reston, VA 170+ countries under measurement; 43 markets reported 30+ locations in 21 countries 2 V0910
3 comscore Leverages Rich Panel Data to Deliver Unique and Broad Digital Business Analytics 2 Million Person Panel 360 View of Person Behavior The Only Consumer-Based Global Measurement of Online Audience and E-commerce 170+ Countries Under Measurement 43 Countries Individually Reported 3 V0910
4 Broad Client Base and Deep Expertise Across Key Industries Media Agencies Telecom/Mobile Financial Retail Travel CPG Pharma Technology 4 V0910
5 The Social Menu Advertising on Social Networks Display Campaigns Social Marketing Direct conversations between brands and fans on social networks Earned Media PR Blogs Reviews Friend to Friend Platforms: PC, Mobile, Tablets Tools: Browser and Apps 5
6 For many large brands, social is still just a relative snack Less than 2 percent of the top 300 Facebook fan groups belong to the world s best loved brands, and many of those brands don t know how to engage their fans. WHY? 6 Sources: facebook.com, CNBC.com, allfacebook.net
7 Some ways brands think of social media Ginkgo Biloba Can t hurt; might help; doesn t cost much; everyone s doing it; better get some If they come, we will build it Yikes we need a fan page. Ok, now we have a gazillion fans. Now what? Surrender your brand soul Use social to let consumers define your brand Surround sound Create related content and wrap your brand around it 7
8 Surrender your brand soul example: Remember Sparks? One of the first to build a brand with zero traditional media Orange tongue side effect became the brand s identify after target audience decided it was cool and started posting pictures on Facebook. Sparks: Embraced instead of trying to control. 8
9 Surround sound strategy: Tampax/Always Deliver meaningful content and then surround it with your brand 9
10 Setting the Table: The Current Digital Landscape 10
11 Just how much time do we spend on Social Media? Globally, people aged 15+* spent a total of 4.7 billion hours on Social Networking sites in February 2011 This comprised 17% of all time spent online during the month, an average of 4.6 hours per user In the U.S., we spent 15% of all online minutes on Social Media, averaging 5.3 hours per user 11 Internet Audience 15+ accessing Internet from Home or Work Source: comscore Media Metrix, February 2011
12 Social Networking and Entertainment categories have gained prominence at the expense of Portals and Percent (%) Share of U.S. Time Spent Online for Top Content Categories Source: comscore Media Metrix, Dec-2009 to Dec % Portals Social Networking Entertainment 20% -1.4 pts 15% +3.8 pts +0.8 pts 10% -1.5 pts 5% 12
13 Communication among younger segments is shifting from Webbased to IM, Social Networks and Mobile. 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% Year-over-Year Change in Time Spent Using Web-Based by Age Segment in the U.S. Source: comscore Media Metrix, Dec-2010 vs. Dec % Age % Age % Age % Age % Age % Age % Age
14 Facebook now accounts for 1 in 8 minutes spent online 14% Trend in Share (%) of Time Spent for Top 5 U.S. Web Properties Source: comscore Media Metrix, Dec-2009 to Dec % 10% 8% 6% 4% Facebook.com Google Sites Yahoo! Sites Microsoft Sites AOL, Inc. 2% 0% 14
15 Facebook.com delivered 1 trillion display ads in 2010, almost 2X Yahoo Top Ten U.S. Online Display Publishers by Number of Impressions in Millions Source: comscore Ad Metrix, Jan-2010 to Dec-2010 Facebook.com Yahoo! Sites Microsoft Sites Fox Int. Media AOL, Inc. Google Sites Turner Digital Glam Media ebay ESPN 243, , , ,247 74,958 44,054 32,884 32, ,378 1,019,891 Was #2 to Yahoo! at end of
16 Important differences across the world ( and Facebook is not the leader everyhwere) Philippines 39% Japan 4% Argentina 29% Netherlands 12% Italy 28% Malaysia 31% South Korea 7% France 14% 16 Selected countries with highest and lowest share of total time spent on Social Networking Internet Audience 15+ accessing Internet from Home or Work Source: comscore Media Metrix, February 2011
17 It s not just kids Age distribution mirrors the global average, Total Internet 26.5% 26.1% 21.7% 14.2% 11.5% Social Networking 27.5% 26.1% 20.8% 14.4% 11.2% But young people spend a larger portion of their time on Social Media 30% Share of Total Online Minutes Spent on Social Media By Age 22% 20% 18% 14% Worldwide Internet Audience 15+ accessing Internet from Home or Work Source: comscore Media Metrix, February 2011
18 83% of population views online videos NUMBER OF VIEWERS 173 Million % OF INTERNET AUDIENCE 83% VIDEOS VIEWED 31 Billion VIDEOS PER PERSON million Americans will watch an online video today! VIEWING TIME PER PERSON 13.5 hrs 18 Source: comscore Video Metrix, February 2011
19 Rapid Growth in Long-form TV Programming Online Over Past Year Yearly growth in videos viewed on long-form TV programming sites Videos Viewed Videos per Viewer 105% increase 71% increase 19 Source: comscore Video Metrix, February 2011 vs. February 2010
20 Driven by Rapid Growth, Time Spent Viewing Online Video is Now Equivalent to 8% of TV Viewing Hours Watched Per Viewer Per Week +4% vs. YA % vs. YA 3 TV Viewing Online Video 20 Source: Nielsen for TV. comscore for Online Video
21 Online Advertising Growing at 15% Y/Y and Almost Equal to Cable TV. Video Advertising Growing at 30% and now Accounts For 5% of All Online Ad Spending But, Equivalent to Only 1.5% of All TV Ad Dollars Total Ad Spend ($Billions) in 2010 & % Change vs. YA +10% $90 +10% $ % $ % 25% to UGC 75% to Traditional Media $1.4 Total TV Cable TV Total Online Online Video 21 Source: TV data from CAB Analysis of Nielsen, Kantar Online data from IAB / PWC, emarketer, Jack Myers
22 Strong mobile content usage in 2010 enabled by smartphone adoption, 3G/4G penetration and unlimited data plans 60% 50% Growth of Mobile Market Enablers in the U.S. Percent of Mobile Subscribers Source: comscore MobiLens, 3 mo. avg. ending Dec-2009 to Dec pts 40% 30% 20% +7.7pts +10.2pts 10% 0% Dec-2009 Mar-2010 Jun-2010 Sep-2010 Dec-2010 Smartphone Owners 3G/4G Subscribers Unlimited Data Plan Subscribers 22
23 Unique Users (000) Social Networking, Weather and among most commonly accessed mobile site content categories Fastest Growing Mobile Content Categories by Total Audience (000) Source: comscore MobiLens, 3 mo. avg. ending Dec-2010 versus Dec ,000 70,000 60, % Dec-09 Dec % + 39% 50,000 40, % 30,000 20, % + 53% + 47% + 46% + 45% + 45% 10,
24 The Digital News Cycle: different platforms own different dayparts Data for 24 hour period on September 21, 2010, Data Source: comscore, Inc. Graphic Source: Wall Street Journal, November 15, ml?mod=e2tw
25 The Social Menu Advertising on Social Networks Display Campaigns Social Marketing Direct conversations between brands and fans on social networks Earned Media PR Blogs Reviews Friend to Friend Platforms: PC, Mobile, Tablets Tools: Browser and Apps 25
26 Measuring Advertising Effectiveness on Social Networks 26
27 Good News: We know how not to measure United States it! 0.10% Global Click Rates on Individual Campaigns are Pitifully Low Norway Ireland Luxembourg United Kingdom Finland Australia Canada Sweden United States Hungary Switzerland Denmark France Italy Germany New Zealand Spain Turkey Austria 0.07% 0.08% 0.08% 0.08% 0.09% 0.10% 0.10% 0.10% 0.10% 0.11% 0.11% 0.12% 0.12% 0.12% 0.13% 0.14% 0.14% 0.14% 0.15% 27 Sweden Hungary Switzerland Denmark France Italy Germany New Zealand Spain Turkey Austria Netherlands Belgium China Greece India Singapore Hong Kong United Arab Emirates Malaysia 0.10% 0.11% 0.11% Worldwide Click-Through Rates* *Click-through rates across Static Image, Flash, and Rich Media formats In the US, 1 in a thousand people click on ads 0.12% 0.12% 0.12% 0.13% 0.14% 0.14% 0.14% 0.15% 0.16% 0.17% 0.18% 0.18% 0.20% 0.20% 0.21% 0.26% 0.29% Source: DoubleClick DART for Advertisers, a cross section of regions, January December 2008
28 28 Journal Of Advertising Research: comscore s Whither the Click? Journal of Advertising Research, June 2009 What We Know About Advertising: 21 Watertight Laws for Intelligent Advertising Decisions Prof. Byron Sharp, Ehrenberg Bass Institute, University of South Australia Prof. Jerry Wind, The Wharton School comscore s Whither the Click? 200+ comscore studies conducted in the U.S. to assess behavioral impact of paid search and online display ads. Even with Minimal Clicks, Display Advertising Proven to Lift: Site visitation Trademark search queries Online and offline sales 28
29 29 We Now Know Online Ads Incite Action Beyond the Click. Results from 139 comscore Campaign Effectiveness Studies Advertiser Site Reach 5.8% 6.6% 3.5% 3.1% 4.8% 3.9% 4.5% 2.1% % Lift: 65.0% % Lift: 53.8% % Lift: 49.1% % Lift: 45.7% Week of first exposure Weeks 1-2 after first exposure Weeks 1-3 after first exposure Weeks 1-4 after first exposure Control Test 29
30 Despite negligible click rates, display ads can successfully lift retailer sales both online and offline Dollar Sales Lift Among Households Exposed to Online Advertising Conclusions % Lift: 27% % Lift: 17% Exposure to display ads doesn t just impact online sales it lifts in-store sales as well The absolute dollar lift in offline sales is 5x higher than the lift in e-commerce sales The click is misleading as a measure of campaign effectiveness 30 Source: Whither the Click? 139 comscore studies in the June 2009 Journal of Advertising Research
31 Measuring the Buzz 31
32 Listen closely to conversations Get a snapshot of all the words and phrases being used in the same breath as your brand. Are they what you expected? Are they the same competitive differentiators you re using to talk about your brand, or are they different? 32
33 Listen closely to conversations Look more closely at actual conversations to get insight into your messaging, your SEO, and how your community is talking about your brand. 33
34 Assess Sentiment Study real-time trends associated with mentions, sentiments, comments etc for your brand and react immediately to big changes 34
35 Understand sources Identify which social media vehicles are most active for conversations about your brand to determine your social media investment strategy 35
36 Measuring a Brand s Social Network 36
37 The Social Menu Advertising on Social Networks Display Campaigns Social Marketing Direct conversations between brands and fans on social networks Earned Media PR Blogs Reviews Friend to Friend Platforms: PC, Mobile, Tablets Tools: Browser and Apps 37
38 A Brand s Social Network is hard to quantify Limited Limited data data on who on fans who really fans are really are Even less data on how fans influence others Almost no knowledge of how social drives action LACK OF MEASUREMENT STIFLES INVESTMENT 38
39 comscore can now group people into social voice segments and relate them to familiar metrics. 39
40 These segments allow us to unite the network across Fans and Friends Individuals who hear directly from the brand or about the brand on their home page or news feed. Who is a fan of Associate Shows Interest In Associates Individuals who are exposed to the brand off of the home page, indicating a relationship with someone who is a fan. Total Network Total audience of fans and associates across Facebook 40
41 Social Voice Social Voice Segments map directly to familiar metrics in comscore s Social Voice Report Key Measures Size of total social network as well as segment breakouts Social intensity metrics Demographics Age, Gender, Income and other key demos Cognographic profile showing Internet-wide category visitation Engagement Visitation to key web sites Linkage to action related data sets such as search, video, e-commerce 41
42 If we can quantify a brand s total social network, we can study it, value it, and help it grow. 42
43 So what s the answer? Sizzle, Steak or the Whole Meal? Hint: Favorite of academics and consultants the world over IT DEPENDS! 43
44 Considerations Who is my target and what kinds of social behaviors have they embraced and in which environments? What s most important for the brand Awareness building? Delivering News? Competitive differentiation? Building loyalty? Content engagement? Gathering feedback? Brand and Category dynamics New or established product? High or low involvement? Fragmented or concentrated? Rational or emotional? Geographic considerations Domestic or Global? Success metrics must be identified up front and measured throughout Size of audience and who s in it Brand building, increased engagement, brand purchase, lifetime value 44
45 For more on the latest in the digital world, click on links below for the following white papers Click to Download Click to Download Click to Download Click to Download Click to Download 45
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