Marketers Current and Future Use of Social Media

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1 Research Report: Marketers Current and Future Use of Social Media Conducted by: Extra Mile Audience Research on behalf of

2 Social media has become a web and mobile juggernaut, attracting and engaging hundreds of millions of users to create profiles and engage in online dialogues. As a result, social media sites are now a primary platform for generating and sharing content. The scale of social media and the involvement of its users make social media a compelling platform for marketers. The Marketers Current and Future Use of Social Media study was launched to explore how marketers use social media, what motivates their usage, and their plans for future use. In addition to usage, the study focuses on how marketers measure and analyze of social media programs. Finally, we look at how marketers view year old, always on consumers, many of whom are the most dedicated participants in social media. Key Findings The research results provide many insights into how marketers use social media to market their products. Here some of the highlights: 63% of marketers are already investing in social media marketing. Of the 37% that are not currently investing in social media marketing, 62% are planning to invest, including 46% who plan to do so within one year. 57% indicate that they welcome social media users involvement and participation with their brands. Of those who are already investing in social media marketing, 87% plan to increase their expenditures in the next 12 months, including 56% who plan significant increases in spending. Only 30% of marketers who conduct social media marketing have measurement and analysis strategy fully implemented. 43% of marketers who conduct social media marketing have not begun implementing any measurement or analysis programs. Of those who have measurement and analysis programs in place, 62% are only somewhat satisfied with their programs. Despite all of the focus and investment in social media marketing, only 30% consider their social media marketing efforts very successful. 59% rate their efforts as somewhat successful. 75% of marketers consider always-on, year old consumers as a primary or secondary target. Marketers realize always-on, year old consumers have unique characteristics: 70% of marketers consider them to have a shorter attention span, 67% consider them to have different motivations than previous generations, and 59% consider them to be less accepting and more questioning of marketing messages in general. Methodology This online survey was fielded by Extra Mile Audience Research on behalf of the Pivot Conference. It was fielded between June 29 and July 30, The survey invitation was sent to corporate marketers 2

3 and ad agency professionals via invitation and through social media. 137 of people responded to the survey. Section 1: Marketers Commitment to Social Media Significant and Growing Rapidly One of major purposes of the study was to map the penetration of social media as a marketing platform, and the findings indicate widespread and growing adoption. Two-thirds currently invest in social media sites and services Yes 63% 37% No Q. Do you invest marketing dollars or resources in any social media sites or services (e.g Facebook, Twitter, foursquare)? Base: All respondents 3

4 The reasons for using social media as a marketing vehicle are diverse, but the primary motivation is to follow customers and prospects to the sites where they are active, which has now generated a growing understanding of the unique two-way nature of this marketing environment. Motivations to begin social media marketing We realized that social media marketing is a powerful tool for brands or products 70% Our audience is on social media sites 62% We saw that social media users/always-on consumers gather information differently 47% To use social media as part of our customer support and relationship management 40% Q. What were your company s primary motivations to begin social media marketing? Select ALL that apply Base: Respondents who invest in social media sites and services 4

5 To what degree are marketers embracing the user involvement and participation culture of social media? The study indicates user involvement with marketing campaigns and brands is welcomed by most marketers. 57% welcome user involvement enthusiastically, while another 13% seek customer involvement, but are cautious about the process and outcomes. 57% embrace customer brand involvement within social media Answer Options We seek social media users to become involved with our brand and we generally welcome the outcome of customer involvement and participation We seek some customer involvement with our brands within social media, but we approach this with caution and try to maintain controls over the process We invest in social media sites, but have not yet structured campaigns that encourage customer engagement with our brands but are planning to in the next 6 months-to-1 year. Response Percent 57% 13% 17% We invest in social media sites, but don t have plans for customer engagement with our brands 6% Don t know/does not apply 6% Other (please specify) 1% Q. Which best describes your position with regard to your company s social media marketing efforts? Select ONE Base: Respondents who invest in social media sites and services 5

6 Although this study and the sampling techniques focused primarily on marketers, respondents indicated that a number of departments within their company have become involved in social media marketing and customer engagement. While marketing involvement still dominates (92%), there is significant involvement from public relations (57%) and customer service (36%). Departments Involved in social media marketing Marketing 92% Public relations 57% Customer service 36% Other 15% Investor relations 4% Which departments are involved in your social media marketing? Select ALL that apply Base: Respondents who invest in social media sites and services 6

7 Of those corporate (non-agency) respondents already involved in social media marketing, about half (47%) manage the process in-house. 21% use full-service ad agencies to conduct their social media marketing, 9% use agencies that specialize in social media marketing, and 18% use a combination of fullservice and specialized agencies to conduct the campaigns. Almost 50% handle social media marketing in-house Specialized agencies that focus specifically on social media marketing and other new media work 9% Full service ad agencies that do traditional advertising/marketing as well as social media marketing We use a combination of full-service ad agencies and specialized agencies 21% 18% We don t use agencies for social media marketing 47% Other (please specify) 5% 0% 20% 40% 60% Which best describes the types of agencies that work on your social media marketing? Select ONE Base: Corporate (non-agency) marketers who invest in social media marketing 7

8 The results indicate that social media marketing investments remain a modest portion of most companies online budget. 74% are currently spending 20% or less on social media marketing. Investments in social media marketing are currently modest Answer Options Response Percent Less than 10% 51% 11% - 20% 23% 21% - 40% 9% 41% - 60% 4% Don t know/does not apply 13% Q. What percentage of your online budget, including staff to manage, is spent on social media marketing? Select ONE Base: Respondents who invest in social media sites and services 8

9 However, the findings also indicate that the vast majority of marketers (87%) are planning to increase their investment in social media marketing, including 56% that plan to increase expenditures significantly. 87% plan increased investment in social media marketing Increase significantly 56% Increase somewhat 31% Maintain same level 13% 0% 10% 20% 30% 40% 50% 60% Q. Which best describes your plan for social media marketing programs over the next 12 months? Select ONE Base: Respondents who invest in social media sites and services 9

10 Social media marketing is gaining acceptance, even among current non-practitioners. Of the 37% of respondents who are not investing money or resources in social media marketing, 62% are planning to do so, including 43% that have plans to start investing in these programs in the next 12 months. Of those currently not investing in social media 62% plan to invest Yes, in the next six months 23% Yes, in six months to one year 23% Yes, in more than one year 16% No, do not currently plan to invest 29% Don t know/does not apply 9% Q. Do you plan on starting to invest in social media marketing? Base: Those currently not investing in social media marketing 0% 5% 10% 15% 20% 25% 30% 35% 10

11 Investments in social media marketing need to be viewed within the context of marketers testing and adopting new platforms. 89% currently use search engines, and 84% use social media to market their products/services. And while current usage may be low for platforms like mobile applications (39%) and location-based sites (23%), high percentages of marketers are planning to use these platforms: 42% for mobile applications and 35% for location-based sites. Invest in a wide range of internet and mobile advertising platforms Currently Planning to No plans to Answer Options using use use Search engines (Google, Bing) 89% 8% 2% Social media (Facebook, Hi5) 84% 9% 7% Micro-blogging / Presence applications (Twitter, Yammer) 72% 18% 10% Video sharing (YouTube, Vimeo) 70% 24% 6% Dedicated content sites (nytimes.com, ESPN.com) 50% 11% 39% Blogs (Gizmodo, TechCruch) 49% 21% 30% Content Portals (Yahoo!, Yelp) 46% 16% 38% Presentation sharing (slideshare, scribd) 44% 24% 31% Mobile apps (for iphone, Droid) 39% 42% 19% Social bookmarking/news (Delicious, StumbleUpon, Digg) 36% 30% 34% Advertising networks (Glam Media, Federated Media) 31% 15% 54% Live streaming (Ustream.tv, Brightcove) 29% 24% 47% Photo/video sharing (RockYou, Slide) 28% 22% 50% Reviews (epinions.com, Yelp) 27% 22% 52% Location-based (foursquare, Gowalla) 23% 35% 42% Music and audio sharing (Blip.fm, Last.fm) 19% 19% 62% Online games (Farmville) 11% 23% 67% In-game advertising (Farmville) 5% 23% 72% Virtual worlds (Second Life) 3% 16% 81% Q. Which of the following Internet-based or mobile platforms and tools are you currently using or plan to use in the next 12 months? Source: All respondents 11

12 Section 2: Measurement, ROI, and the Future of Social Media Marketing Despite all of the investment detailed in the previous section, the tools and programs to measure the impact of social media marketing are still being deployed. Of the marketers that have already begun investing in social media marketing, only 30% report having their social media measurement strategy fully implemented. 42% percent have not yet implemented any strategy to measure and analyze their programs. This level of measurement contrasts significantly to other online advertising efforts, which are known to be consistently measured by marketers. Only 30% have social media measurement and analysis strategy fully implemented Measurement and analysis strategy fully implemented 30% In the process of implementing measurement and analysis strategy 28% In the planning stage for measurement and analysis strategy 25% Not yet planning a measurement and analysis strategy 17% 0% 5% 10% 15% 20% 25% 30% 35% Q. Which best describes the state of the measurement and analysis you have in place for social media marketing? Base: Respondents who invest in social media sites and services 12

13 Social media marketing is most frequently measured and analyzed using the same tools marketers used to measure other campaigns: website data trackers, Twitter analytics, and link tracking tools. However, 30% are using engagement tracking companies, and 26% have begun using social media trackers in an effort to more closely match the measurement and analysis to this unique platform. Measurement methods for social media marketing efforts Website data trackers (Google Analytics, Omniture) 93% Twitter analytics (HootSuite, Viral Heat) Link tracking tools (Bit.ly, PostRank) 56% 56% Engagement analysis companies (Radian6, Scout Labs) Social media trackers (MediaFunnel, Tap11, Crimson Hexagon, etc) 30% 26% Other (please specify) Don t know/does not apply 4% 4% 0% 20% 40% 60% 80% 100% Q. How do you use to measure your social media marketing efforts? Select ALL that apply Base: Respondents who have already implemented measurement and analysis strategies for social media marketing 13

14 Most marketers (61%) give an unenthusiastic somewhat satisfied rating to their current measurement and analysis programs. However, about a third (31%) of marketers are currently satisfied with their measurement and analysis. Only 8% of those who have programs in place rate themselves as dissatisfied. Satisfaction with the measurement and analysis in place for social media marketing Satisfied 31% Somewhat satisfied 61% Dissatisfied 8% 0% 10% 20% 30% 40% 50% 60% 70% Q. Are you satisfied with the measurement and analysis you have in place for social media marketing efforts? Select ONE Base: Respondents who have already implemented measurement and analysis strategies for social media marketing 14

15 Among those marketers measuring the success of their social media marketing, 89% are satisfied, though the largest segment (59%) are only somewhat satisfied with their programs. Level of social media marketing success based on measurement, analysis, and goals for the program Very successful 30% Somewhat successful 59% Unsuccessful 0% Cannot tell 11% 0% 10% 20% 30% 40% 50% 60% 70% Q. Based on your measurement, analysis and goals for the program, have your social media marketing programs been successful? (e.g. generated more sales, improved customer relations) Base: Respondents who have already implemented measurement and analysis strategies for social media marketing 15

16 The data on social media marketing and measurement needs to be viewed within the context of the fast-paced culture of modern marketing. 75% of respondents report that they plan their marketing strategies within six months of executing those strategies. Marketing strategies planned close to implementation 6 months or less 75% 7 12 months 19% months 1% 18 months or more 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q. How far in advance do you plan your marketing strategy before executing your plan? Base: All respondents 16

17 Section 3: The Next Target Customer Most marketers consider that the majority of year olds are always on because of the frequency with which they are connected to the internet and mobile devices. Marketers view most year olds as being always on 81% to 100% 11% 61% to 80% 35% 41% to 60% 28% 21% to 40% 15% 1% to 20% 6% 0% 5% Q. What percentage of year old consumers in the United States would you consider to be "always-on"? Select Base: All respondents who speculated 17

18 Marketers realize that always on, year olds have some unique characteristics. 70% of marketers consider them to have a shorter attention span than previous generations, and 67% see these consumers as having different motivations. Because they are always-on and connected to others through social media, 67% of marketers see always on consumers has having the potential to be more influential than other consumers. Characteristics of always on, year olds Strongly Agree Agree When marketing programs are formatted and delivered that they find engaging, they are susceptible to branding or rebranding 20% 52% 72% Their attention span for marketing/advertising is shorter than previous generations 26% 44% 70% They often have different motivations than previous generations (green, socially conscious, etc.) 29% 38% 67% They have the potential to be more influential than consumers who are not always-on 23% 39% 62% They are less accepting and more questioning of marketing messages in general 26% 33% 59% They are less likely to accept major brands accepted by previous generations of consumers 14% 15% 29% Traditional media is not very effective in reaching these consumers 12% 15% 27% Q. Please rate how strongly you agree or disagree with the following statements ABOUT "ALWAYS ON," YEARS OLDS: SCALE: Strongly agree, Agree, Somewhat Agree, Disagree, Strongly disagree, Don t know/no opinion Base: All respondents NET 18

19 Always-on, years olds are being heavily targeted by marketers. 36% consider these consumers a primary target, and 39% consider them a secondary target. Always on year olds are heavily targeted by marketers A primary target A secondary target 36% 39% Not this year, probably next year 5% Not a target 15% Don t know/does not apply 5% 0% 10% 20% 30% 40% 50% Q. Are year old/"always-on" consumers an important target market for you? Select ONE Base: All respondents 19

20 Respondent Profile The functional responsibility for social media marketing is held by 63% of respondents. Respondents also have other diverse job functions, including brand marketing (63%), ad/marketing campaign development (62%), and product marketing (46%). Respondent Marketing/Advertising Functions Brand marketing 63% Social media marketing 63% Ad/marketing campaign development 62% Product marketing 46% Marketing research/analysis 44% Direct marketing/ marketing 44% Website development 39% Media planning and buying 36% Public relations 34% Corporate communications and reputation management 28% Lead generation 27% Event sponsorships 27% Mobile applications and technologies 22% CRM 19% Q. Which marketing/advertising functions are you responsible for or do you oversee? Select ALL that apply Base: All respondents 20

21 While most of them target year old, always on consumers, 54% of these marketers are themselves over 36. Age of respondent Age % % % % % % % % % +65 0% Q. What is your age? Base: All respondents 91% of respondents have six or more years in marketing and advertising. Perhaps this experience helped to provide them the perspective and conviction to act decisively to invest in social media. Years in Advertising Years in Advertising 1-5 years 9% 6-10 years 30% years 21% years 19% years 13% More than 30 years 8% Q. How many years have you worked in marketing/advertising? Base: All respondents 21

22 The Pivot Conference, taking place October in New York, is a new kind of marketing conference singularly focused on the demographic: their attitudes, technologies and preferences. Pivot is the first and only conference where brand marketers can go to gain essential confidence in their power to inhabit the culture, conventions and conversations of today's young consumers. Extra Mile Audience Research is a market research company specializing surveying the audiences of media properties as well as attendees of conferences and trade shows. Extra Mile Audience Research clients include the National Association of Broadcasters, ad:tech Forums, the Economist Media, Gartner, and the Web 2.0 Conference. 22