8 Ways to Improve Social Networks' Effectiveness in 2014

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1 October 23, 2014 Eight Trends to Watch for Social Marketing 2015 Made possible by Debra Aho Williamson Principal Analyst

2 Agenda Overview: Social marketing usage and spending Eight Trends to Watch Key Takeaways

3 Social Marketing Usage and Spending

4 Social media marketing is nearly ubiquitous 89% of US marketers will use social media marketing next year

5 Spending on social is rising, particularly for paid advertising Across the board, I think we re looking to increase spending for social. I think there was this mantra that Facebook is free, but the model has changed. Josh Martin, director of digital and social media, Arby s Restaurant Group

6 Marketers are allocating close to 10% of budgets to social media 9.4% Percentage of current marketing budget allocated to social media 13.2% Percentage of marketing budget expected to be allocated to social media in the next 12 months Source: Duke University Fuqua School of Business, July-August 2014

7 But there is still unease over the path to success

8 It doesn t help that social media keeps changing Is it an ad network? A video distribution platform? An ecommerce engine?

9 emarketer s viewpoint: Marketers must be as sophisticated at integrating social media into their marketing plans as consumers are at incorporating social media into their everyday lives.

10 Trend No. 1 Social Ad Spending Will Increase, But Doubts Will Remain

11 US ad spending on social networks is exceeding previous emarketer forecasts Dec-13 forecast (billions) Sep-14 forecast (billions) 2014 $5.82 $ $7.30 $8.76 Source: emarketer, 2013/2014

12 In the US, Facebook s share of digital ad spending is outpacing adults time spent on the social platform

13 Action steps: paid social advertising Get serious about targeting: We re able to be extremely specific with social media targeting. We no longer need to waste money hoping that our messaging finds its way to the right people. Kellee Montgomery, Ford Motor Co. It s not a mass medium: I think marketers hold just as much, if not more, culpability because they re using these platforms with a mass marketing mentality rather than trying to figure out how to target effectively. Scott Monty, SHIFT Communications Sync up content and media planning: If brands are separately planning their media spends and their content strategies, then they may be disappointed at the results. Matt Wurst, 360i

14 Trend No. 2 Organizations Will Move Social out of the Silo

15 Integration is important to a majority of businesses (but it s also challenging) 69% Percentage of marketers who agree that integrating social with broader marketing is a priority 17.5% Percentage of marketers who completely agree they have done so Source: Forbes and Wipro, Aug. 2014; Forrester Consulting and Spredfast, July 2014

16 Action steps: structuring for social Streamline communications: You should have that client quarterback in the huddle, that brand manager telling his internal team and agencies which routes they need to run. In the past there has been either an absence of or too many people calling plays. Matt Wurst, 360i Empower product teams: Our marketing division reorganized and put more social media responsibility into the product groups. It makes complete sense, because they're the closest to the demographics for those products. Scott DeYager, Toyota Give social leaders budget authority: The budgets in most organizations still sit with brand marketing teams. The [social] centers of excellence often are hamstrung because they don't have budget authority. Marshall Manson,

17 Trend No. 3 When It Comes to Content, Less Is More

18 The pace of growth in marketing content on Facebook is slowing +146% +31% Source: Socialbakers, 2014

19 Except for Instagram, interaction rates for brand posts on the leading social sites are minuscule

20 Social is a primary channel to distribute content, but not the only one marketers use

21 Action steps: content Segment and target: We made our strategy more data-driven. We want to understand our audiences. Who are they? What captures their attention? And then we tailor our content to their needs. Laura Powers, Cisco Systems Invest in social listening: We developed an internal-listening team. We can look at discussion trends and conversations over time, in real time, that we can then align future content with. Scott DeYager, Toyota Act normal: It s [about] making sure we re present in a natural and native way that feels very endemic to the platform. Like how normal people would actually be on the platform. Sydney Lestrud, GE

22 Trend No. 4 The Key to ROI Will Come from Within

23 If it feels like we ve been talking about social return on investment for years, you re right

24 There s good news and bad news when it comes to measurement 80% Percentage of marketers who measure the success of their social content 50% Percentage who measure social ROI (up only 10 points since 2012) Source: Association of National Advertisers, June 2014; Useful Social Media, July 2014

25 Nearly 40% of marketers worldwide consider their social media measurement capability poor

26 Action steps: measurement Raise the sophistication level: Analytics tools are useful for optimizing campaigns, but that s a long way from demonstrating business value. We have to be more sophisticated in the way we understand our clients business objectives, apply them to the social space and develop metrics. Marshall Manson, Social@Ogilvy Value earned impressions: The media-mix measurement companies have not advanced nearly enough in incorporating earned media into their models. If you don't value earned impressions, it s going to incentivize an overweighting in paid media. Bryan Wiener, 360i Get input from multiple stakeholders: It requires a lot of collaboration to determine what certain behaviors and activities are worth. We're finally starting to see attribution models mature. Joe McCaffrey, Huge

27 Trend No. 5 Mobile-First Won t Be Enough; Start Thinking Mobile-Only

28 Social activity is already heavily weighted toward mobile 71% Percentage of US social networking activity taking place on a mobile device 29% Percentage taking place on a desktop or laptop Source: comscore Media Metrix, June 2014

29 Eight in 10 social network users will use a mobile phone to access social networks this year

30 Key fact 30% of Facebook s worldwide monthly active users are already mobile-only Source: Facebook, July 2014

31 Action steps: mobile The mobile experience comes first: Some companies are sending content out that does not resize well on mobile. They have to think of those users on mobile as a whole different beast. Jan Rezab, Socialbakers It s easier to grow content designed for mobile than shrink content designed for a computer: Marketers should be doing mobile-only or mobile-first. And if you do mobile-first, it s so much easier to scale up than it is to scale down. Anne-Marie Kline, DigitasLBi Capture users in the first sentence: If we have a huge chunk of text in a Facebook post, it s not going to show up that way in mobile. We always try to have the first sentence be a capture point where people can learn more. Kellee Montgomery, Ford

32 Trend No. 6 Marketers Will Embrace Video in Social Media, But Obstacles Will Remain

33 Facebook is challenging YouTube as a destination for viewing and uploading Facebook delivers over 1 billion video views worldwide per day, over 65% on mobile (Facebook, Sep 2014) It is wooing producers to upload directly to Facebook rather than link to YouTube It had more US desktop video views in Aug than YouTube: 12.3 billion vs billion (comscore, Oct 2014)

34 It s not just about Facebook: Teen consumers are gravitating toward Vine

35 Social video effectiveness has a long way to grow, however

36 Action steps: video Think unique: The mistake brands often make and we made two or three years ago was just taking a broadcast commercial and slapping it in social. Now we re looking at shorter content. It seems like the shorter the video, the better it performs. Josh Martin, Arby s Professional is good; authentic is better: Social users want a different type of content. It can t be overly produced. It does need to be professional, but for social, authenticity is key. Laura Powers, Cisco Find partners: Brands are not going to be able to reach their goals by just producing video in-house. They re going to have to develop relationships with creative influencers who already have large established audiences. Scott DeYager, Toyota

37 Trend No. 7 Real-Time Marketing Will Be Redefined

38 Instead of real-time, focus on right-time : Personalization can make right-time feel real-time

39 Marketers are already regularly collecting social data to inform marketing programs

40 Action steps: real-time marketing Right-time can feel real-time: That thing could have happened three months ago, but when you received it, it was the perfect thing for you to get at that time. Anne-Marie Kline, DigitasLBi Measure success by what you do after your real-time response: It isn t what the brand does initially, but how it responds and reacts. That points to the larger strategic value of real-time: being a dynamic brand operating in an always-on mode. Chris Bowler, Razorfish Look beyond the mainstream: We like to tap into moments that are less mainstream but more aligned with our marketing objectives. Moments like Inventors Day or Gravity Day give us a brand [image] that s all about invention and innovation and science. Sydney Lestrud, GE

41 Trend No. 8 Planning for Facebook-First Won t Always Be the Right Strategy

42 The youth audience is spread among multiple social properties

43 Marketer usage of Pinterest and Instagram is approaching the 50% mark

44 Action steps: going beyond Facebook-first Customize for the platform: We ve seen huge organic reach with Vine because that content is specifically created for Vine. It s not just repurposed from Twitter, or we didn t just take a TV commercial and shove it into 6 seconds. Kellee Montgomery, Ford Be someone who gets invited: Some social properties are not public places. We re going to have to think about how we can earn the right to be invited into a more private conversation with consumers. Marshall Manson, Social@Ogilvy Expect Facebook to learn from its competition: The new Facebook usually is Facebook, because they continue to buy these new technologies. It's interesting to watch how they're going to integrate them into the existing platform. Scott DeYager, Toyota

45 Key takeaways, part 1 1. Social ad spending will increase, but marketers that do not embrace the targeting capabilities will be disappointed with the results. 2. Social media will become more integrated into marketing, rather than being siloed in its own group. 3. When it comes to content, brands will take a less is more approach. At the same time, social media will be just one of many content distribution vehicles. 4. The key to ROI will come from within. Marketers will get more serious about using internal metrics to measure social media success, rather than external ones.

46 Key takeaways, part 2 5. Thinking mobile-first won t be enough; marketers should be prepared for the mobile-only social media user. 6. Marketers will embrace social video, but will struggle with developing cost-effective content that stands out in the cluttered feed. 7. Real-time marketing will be redefined; it s less about being ready with a rapid response and more about delivering a message at the right time. 8. Facebook-first won t always be the right strategy, as smaller, more private communities gain traction.

47 Adobe Social Turn social data into social success 1 Manage workflows, scale social, and ensure oversight 2 Listen to 3 Publish content to conversations across targeted audiences the social web 4 Engage users oneto-one and respond listening, across channels to 5 Collect and analyze 6 Integrate insights in real-time engagement, and attribution data improve marketing 2014 Adobe Systems Incorporated. All Rights Reserved. ADOBE SOCIAL

48 Adobe is driving the evolution of social data DATA COLLECTION DATA INTEGRATION DATA AUTOMATION The ability to capture and act on social platform and listening data to improve social engagement The ability to integrate social platform and listening data with marketing and conversion KPIs to improve social impact on business results The ability to automatically apply social data across all marketing systems to optimize content relevancy, audience targeting, and conversion 2014 Adobe Systems Incorporated. All Rights Reserved. ADOBE SOCIAL

49 ADOBE ANALYTICS ADOBE EXPERIENCE MANAGER ADOBE TARGET Adobe Marketing Cloud ADOBE SOCIAL ADOBE MEDIA OPTIMIZER ADOBE CAMPAIGN 2014 Adobe Systems Incorporated. All Rights Reserved. ADOBE SOCIAL

50 @SFGiants F 2014 Adobe Systems Incorporated. All Rights Reserved. ADOBE SOCIAL

51 Adobe Social Turn social data into social adobe.com 2014 Adobe Systems Incorporated. All Rights Reserved. ADOBE SOCIAL

52 Q&A Session Eight Trends to Watch for Social Marketing 2015 Debra Aho Williamson You will receive an tomorrow with a link to view the deck and webinar recording. Made possible by Learn more about digital marketing with an emarketer corporate subscription Around 200 emarketer reports are published each year. Here are some recent reports you may be interested in: Social Marketing Update: Eight Trends to Help Prepare for Programmatic Advertising Forecast: Digital Display Spending Broadening Beyond Open Exchanges US Time Spent With Media: emarketer s Updated Estimates for 2014 Worldwide Social Network Ad Spending: Midyear 2014 Complete Forecast To learn more: or webinars@emarketer.com

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