Social Media Benchmarking Report

Transcription

1 150 + VAT Social Media Benchmarking Report A B2B Marketing Report Published August 2011 IN ASSOCIATION WITH

2 CONTENTS Executive summary...6 Section 1. About the respondents 1.1 Size of respondent companies Business activity of respondents Roles of respondents...13 Section 2. Personal understanding and engagement with social media 2.1 Personal understanding of social media techniques Social media training Personal involvement with social media marketing activity...16 Section 3. Current social media activity 3.1 Current usage of social media as part of marketing activity Management of social media activity Integration of social media Social media strategies Social media strategy development Objectives for social media SEO and social media convergence Audiences or customer focus Key challenges...28 Social Media Benchmarking Report B2B Marketing

3 CONTENTS Section 4. Budgeting and resource allocation 4.1 Specific budget allocation for social media Proportion of budget allocated to social media Expectations for change in social media budget allocation Time and resource allocation to social media Expected change in marketing time and resource allocation Use of external resources...35 Section 5. Social media tools and techniques 5.1 Types of social media techniques currently in use Usage of different social networks Usefulness of different social networks Frequency of social media engagement Effectiveness of specific social media channels Use of commercial services from social networks...44 Section 6. Effectiveness and measurement 6.1 Comparison of social media effectiveness against other channels Effectiveness of social media for specific marketing objectives Ability to demonstrate ROI Use of social media for lead generation Use of technology to track social media activity Social media monitoring technology...53 Social Media Benchmarking Report B2B Marketing

4 About B2B Marketing B2B Marketing is the comprehensive information resource for B2B marketers. Its mission is to provide practitioners with the information they need to perform better and achieve more, whatever sector of the B2B space they are operating in. Launched in 2004 as B2B Marketing magazine, it has since evolved into a multi-faceted resource, delivering a broad range of content in a variety of different forms and formats. Its key products are: Community: We are the only online resource allowing B2B marketing professionals to share information on their industry. We have created a community where you can learn, share and connect with other marketers to help better achieve your objectives. The site also holds a huge archive of content focusing on every conceivable aspect of B2B marketing and includes various opportunities for online interaction and learning, such as a best practice webcast programme and an interactive online directory for supplier sourcing. Magazine: The essential monthly guide to B2B marketing, with a key focus on best practice guidance, plus monthly features looking at current trends, regular research, profiles etc. Awards: The showpiece event for brands and practitioners, attracting over 600 people. Former winners include a host of top-tier B2B brands, including Barclays, TNT, American Express, HP, Microsoft, JCB, Symantec, DPD, Rackspace, Volkswagen, Stanley, RSA, and many more. Training and events: Regular seminars and training sessions aimed at helping marketers hear and learn first hand from the experts in order to hone their skills. Membership: Become a member and receive all of our research and guides for free. You will also receive exclusive invites to members-only networking events, get discounts on our training seminars, workshops and conferences and receive a subscription to our monthly magazine. There are different levels of membership available so please call to find out more. For more information on any of these products or services go to or call Social Media Benchmarking Report B2B Marketing

5 About Circle Research Circle provides insights into what your customers, prospects and other stakeholder groups think. In doing so, clients tell us the difference with Circle is that we get it. We think differently. Our focus isn t research but fresh perspective. In every situation we challenge conventional wisdom. We uncover deep insights into the heart of the issue that others often miss. We make commercially sound recommendations that always go beyond the what typically provided by most agencies. Rather, we think in terms of what now? We re the B2B research experts. To us it s not a division or the other category in a business plan; it s all we do. This specialist focus means we design research programmes that reflect your environment, survey those with true influence and ask them smart questions. We understand business. Circle people aren t traditional researchers. We re expert in research but we also understand business and marketing. Moreover, your project will be led end-to-end by a highly experienced consultant. This means you re always assured of thoughtful, creative, commercially focused outputs. We re borderless. We re here to help solve business issues. That s why Circle is methodology neutral skilled in qualitative and quantitative techniques so that we can recommend the very best solution. We also understand that the modern economy is global so we are too. In fact, we ve conducted research in over 100 countries. Sound like it might be worth talking some more? Call Andrew Dalglish on or him on andrew.dalglish@circle-research.com. Social Media Benchmarking Report B2B Marketing

6 EXECUTIVE SUMMARY B2B companies embrace social media integration Social media networks are broadly in use among B2B organisations and their usage is set to increase further within the next 12 months. However, at the present stage, B2B companies are still engaged in the process to define clear direction and strategies for this channel to be integrated in their overall objective. This is one of the key findings of B2B Marketing s first Social Media Benchmarking Report, produced in association with Circle Research, aimed at providing unprecedented insight into social media trends in the B2B arena. The report shows that 78 per cent of responding B2B organisations are already conducting social media activity, while another 19 per cent are planning to introduce it in the next year. Despite this, only one quarter of respondents have managed to devise a strategic plan to integrate the social media activity in the company s objective. It is also interesting to note that where techniques to develop social media approach and strategy are involved, gut feel remains a key factor, second most popular overall. In terms of internal organisation, dedicated social media marketing managers remain rare with only six per cent of respondents having one appointed within their company. Among the remainders, there is no clear consensus regarding how social media is managed, with 40 per cent allocating responsibility to one individual as part of their role and another 40 per cent assigning it to a team of people. Social media networks are broadly in use among B2B organisations. However, at the present stage, B2B companies are still engaged in the process to define clear direction and strategies for this channel to be integrated in their overall objective Allocation of responsibility for social media Social Media Benchmarking Report B2B Marketing

7 INTRODUCTION Executive summary Budgets set to increase Although social media is generally regarded as a key and highly potent marketing channel, this is not necessarily reflected in the way companies allocate their budgets and resources at present. According to the research, only 22 per cent of respondents currently assign a specific portion of their budget to social media. Furthermore, when considering the proportion of investment in social media against overall marketing activity, it emerged that three out of four B2B companies spend less than 10 per cent of their overall marketing budget on this channel. It is interesting to highlight that respondents showed slightly more inclination to invest time in social media than in marketing budget; just under half of them address less than 10 per cent of their total time resources into this marketing channel. However, only four per cent of respondents say they dedicate more than half of their time on social media. Despite being modest at present, social media budgets are predicted to grow in the next future. Looking ahead, three quarters of the B2B companies involved in the survey expect to increase their investments within the next 12 months Time and budget investments in social media These results are likely to be correlated to the relative novelty of social media platforms, which may still be holding back their adoption, as well as to the rather low level of investment required for basic social media activity such as blog posting, tweeting, etc. when compared with almost every other kind of marketing activity. Nevertheless, despite being modest at present, social media budgets are predicted to grow in the future. Looking ahead, three quarters of the B2B companies surveyed expect to increase their investments within the next 12 months, with 18 per cent anticipating this increase to be significant and 58 per cent forecasting a slight increase. Within the remainder, less than five per cent expect a decrease in social media budget allocation, or don t know at this stage. Social Media Benchmarking Report B2B Marketing

8 INTRODUCTION Executive summary B2B s social media favourites In terms of social media techniques in use, the research shows that B2B companies are keen on utilising for existing social networks, such as LinkedIn or Facebook, with 90 per cent of respondents using them and no respondent not considering them at all. Other platforms, such as company blog and online PR emerge as being used by 51 and 50 per cent of respondents respectively, while another 34 and 36 per cent are planning to adopt them in the near future. Focusing on social media networks, Twitter and LinkedIn appear to be the most popular social networks among B2B brands, with 85 per cent of respondents having a corporate presence on Twitter and 77 per cent displaying a LinkedIn page. Facebook and YouTube are not far behind, as 67 and 66 per cent of respondents respectively have a corporate page on these networks. Other networks usage (i.e. Slideshare, Quora, Xing, Foursquare) is much lower at present and consequently their penetration is still quite restricted. Use of commercial social services seems to be still in its infancy in the B2B arena. B2B Marketing s survey suggests that 62 per cent of respondents have not used any advertising or commercial services from social networks at all to date Twitter (81 per cent) and LinkedIn (74 per cent) are also regarded as the most useful social media platforms at present, with Facebook and YouTube slightly further behind. However, this picture is likely to change. Respondents predict that of the four leading networks, Youtube will acquire more relevance within the next year, reflecting the growth in importance in video as a marketing channel. On the other end, B2B companies also expect smaller social media platforms to gradually increase their relevance, with Slideshare, in particular, set to see its usefulness triple within the next 12 months. Advertising on social media Use of commercial social services seems to be still in its infancy in the B2B arena. B2B Marketing s survey suggests that 62 per cent of respondents have not used any advertising or commercial services from social networks at all to date. The key reasons cited for this other priorities, don t understand and not good value seem to indicate that the social networks themselves haven t been good enough at developing and selling their commercial propositions. However, this is likely to change soon, as social media continues to become more sophisticated. Of the commercial social services that are being used, LinkedIn is the most popular (21 per cent), followed by Facebook (15 per cent). Despite being ranked first for usage, Twitter was chosen for advertising only by three per cent of respondents. However, Twitter s clear intention to monetise its services and become profitable might create a change in B2B companies advertising behaviours. Social Media Benchmarking Report B2B Marketing

9 RESEARCH PARTNER COMMENT B2B social media: is it a case of the emperor s new clothes? This question has been on my mind for some time now, so I was delighted when Circle Research partnered with B2B Marketing to establish a definitive answer. We found that the social media emperor is getting dressed, but is still in his underpants. The following pages contain a wealth of information which I hope you enjoy. To whet your appetite, here are some highlights. B2B social media has reached the tipping point and in doing so it s following the classic technology evolution curve. There was a lot of talk. Then we saw early pioneers. Now it s in the initial stages of becoming mainstream with eight in every 10 marketers (78 per cent) currently using social media in their B2B marketing activity. It s still early days though and most are still dipping their toes in the water only one quarter (25 per cent) have a clearly defined strategy. Moreover, the standard approach seems to be trial and error just one fifth (21 per cent) have received any training in social media. This haphazard deployment represents an opportunity for the more focused to catch an edge, but the window of opportunity won t stay open long. Most plan to increase their social media investment over the coming 12 months 76 per cent through greater financial spend and 85 per cent by dedicating more time. Social media is being used then, but how? Well, in the main it means the use of social networks, two of which dominate Twitter (used by 85 per cent engaged in social media) and LinkedIn (77 per cent). YouTube (66 per cent) and, perhaps surprisingly given its B2C associations, Facebook (67 per cent) also form an important but less prominent part of the mix. The big question though is: does it pay? Those surveyed revealed their performance against various metrics and this provides some clear benchmarks. Take Twitter as an example. Analysing the number of reported Twitter followers, reveals five milestones of success. Most (43 per cent) are dabblers (<250 followers). One fifth (18 per cent) are niche attractions ( ). A similar number (20 per cent) are rising stars (500 2,000). Just one in 10 (12 per cent) are B-list personalities (2,000 7,500). Only the elite (7 per cent) are A-list personalities (>7,500). In financial terms though, the picture is cloudy. Only a handful (21 per cent) can consistently demonstrate ROI from their social media investment. I hope you enjoy the report. ANDREW DALGLISH DIRECTOR CIRCLE RESEARCH We found that the social media emperor is getting dressed, but is still in his underpants Social Media Benchmarking Report B2B Marketing

10 SECTION 1 About the respondents A total of 274 client-side responses were made to this survey. The questions were drafted by B2B Marketing in April 2011, and were refined and formatted into the final questionnaire by Circle Research in May of this year. Respondents were invited to participate in the survey via activity during June/July of Data was compiled by Circle Research and analysis produced by B2B Marketing and Circle Research. 1.1 Size of respondent companies The companies who participated in this survey reflect the broad spectrum of organisations from across the UK economy. Question: How many people does your organisation employ in the UK? Figure 1. Size of companies by number of staff Social Media Benchmarking Report B2B Marketing

11 SECTION 1 About the respondents Question: What s the annual turnover of your organisation? Figure 2. Size of companies by turnover Social Media Benchmarking Report B2B Marketing

12 SECTION 1 About the respondents 1.2 Business activity of respondents Question: Which of the following sectors best describes the primary sector in which your organisation operates? Figure 3. Breakdown of respondents by industry sector The largest sector represented is the technology and telecoms sector, which accounted for just over one in four respondents. This is to be expected given the size of this industry overall, its familiarity with digital communications and its adoption of social media in particular. Business services and professional services were also well represented. Social Media Benchmarking Report B2B Marketing

13 SECTION 1 About the respondents 1.3 Roles of respondents Question: What is your job title? Figure 4. Breakdown of respondents by job title The largest group of respondents were marketing managers, who are typically those at the sharp end of social media, responsible for executing and/or implementing marketing initiatives using social media tools. However, there was also a strong contingent of directors or heads of marketing represented within the respondents a total of 23 per cent if different job titles are combined. Fourteen per cent of respondents described themselves as owners/mds, reflecting that marketing among SMEs is often conducted by the business owner or managing director. Social Media Benchmarking Report B2B Marketing

14 SECTION 2 Personal understanding and engagement with social media 2.1 Personal understanding of social media techniques Question: How would you describe your personal understanding of social media techniques? Figure 5: Personal understanding of social media Only 14 per cent of respondents were very confident in their knowledge of social media, which reflects the rapid evolution (both in terms of technology sophistication and usage) that this channel is continuing to experience. One in 10 respondents described their understanding of social media as either quite weak or very weak. Three quarters of respondents either described themselves as average or quite strong in terms of social media knowledge, which suggests a level of uncertainty regarding the strength of their knowledge. Social Media Benchmarking Report B2B Marketing

15 SECTION 2 Personal understanding and engagement with social media 2.2 Social media training Question: Have you received any formal training in using social media? Figure 6. Formal training in using social media Perhaps due to its novelty, and a high level of uncertainty regarding its effective utilisation, only one in five respondents has had any formal training in social media. Social Media Benchmarking Report B2B Marketing

16 SECTION 2 Personal understanding and engagement with social media 2.3 Personal involvement with social media marketing activity Question: Are you personally involved in the planning and/or execution of your organisation s social media activity? Figure 7. Personal involvement in the planning and/or execution of social media activity Three quarters of respondents contribute to both planning and execution of social media strategies. Only a very small minority are exclusively involved in execution. This is despite the fact that 11 per cent of respondents were marketing executives, who wouldn t normally be expected to be involved with strategic matters. This suggests that social media activity is a facet of marketing that is relevant to marketers at all levels of seniority. Social Media Benchmarking Report B2B Marketing

17 SECTION 3 Current social media activity 3.1 Current usage of social media as part of marketing activity Question: Does your organisation use social media as part of its marketing activities? Figure 8. Breakdown of respondents by use of social media The overwhelming majority of respondents are currently using social media, and of those that are not as yet, almost 95 per cent expect to do so in the next 12 months. Although this chart does not distinguish between client-side and agency respondents, it demonstrates the enormous level of interest in and commitment to social media among the B2B marketing community, which is particularly staggering given that as a serious and credible marketing channel it is less than five years old. Social Media Benchmarking Report B2B Marketing

18 SECTION 3 Current social media activity Question: What is the primary reason your organisation does not use social media? Figure 9. Primary reasons for not using social media Figure 10. Primary and secondary reasons for not using social media As regards those companies who have so far yet to utilise social media, the most common reason is simply that these marketers haven t got around to it yet, as cited by 23 per cent of respondents, while 21 per cent have other priorities and a further 20 per cent don t feel we understand it enough yet. All these justifications are predictable for what remains a relatively new marketing channel, and all are gradually being eroded as social media becomes more mainstream, respected and demonstrably effective. It is quite likely that many companies which have to date declined to utilise social media are laggards, who are generally reluctant to embrace new techniques and change. In future, ignoring these channels may compromise the competitiveness of these organisations. Social Media Benchmarking Report B2B Marketing

19 SECTION 3 Current social media activity 3.2 Management of social media activity within respondent organisations Question: Who is responsible for the management of your organisation s social media marketing activity? Figure 11. Allocation of responsibility for social media There is no clear consensus regarding how social media is managed within responding organisations, with 40 per cent allocating responsibility to one individual as part of their role, while a comparable figure allocate it to a team of people. However, dedicated social media marketing managers remain rare in B2B organisations according to the results, with this option being selected by only six per cent of respondents. Outsourcing of social media was also rare, used as an option by two per cent of respondents. One in 10 respondents have not formally allocated responsibility of social media to anyone. Social Media Benchmarking Report B2B Marketing

20 SECTION 3 Current social media activity 3.3 Integration of social media Question: To what extent is social media integrated with other marketing activity your organisation undertakes? Figure 12. Level of integration of social media with other activities B2B companies are still some way off complete integration of social media with the rest of their marketing activity. Only one in five respondents claim to have completely integrated their social media activity with the rest of their marketing, while 30 per cent say integration is limited. However, only a very small minority claim no integration of social media whatsoever. Social Media Benchmarking Report B2B Marketing

21 SECTION 3 Current social media activity Question: Why is social media not fully integrated with your other marketing activity? Figure 13. Reasons for lack of integration Lack of internal understanding is the primary barrier to its complete integration within B2B companies marketing activities, according to the survey. This confirms that marketers still have much work to do to convince colleagues, particularly senior colleagues, of the potential importance of these tools and techniques. Social Media Benchmarking Report B2B Marketing

22 SECTION 3 Current social media activity 3.4 Social media strategies Question: To what extent does your organisation have a social media strategy? Figure 14. Strategic use of social media Only one quarter of B2B companies have devised a strategy for social media, according to the results of this benchmarking report, which is surprising given the level of hype and interest generally surrounding this channel. Just under a half of respondents are clearly conducting social media, but without a firm strategic plan to ensure it is aligned and integrated with company objectives. This suggests activity may be piecemeal, and consequently runs the risk of undermining broader company policies. Social Media Benchmarking Report B2B Marketing

23 SECTION 3 Current social media activity 3.5 Social media strategy development Question: Which of the following did your organisation use to develop its approach to social media? Figure 15. Criteria used to develop a social media strategy Companies use a broad range of techniques to develop their social media strategy, but it s interesting to note that gut feel is still a key consideration, second most popular overall, and the second most common key factor. Question: Which of these factors was most important in developing your approach? Figure 16. Most important factor in social media development Social Media Benchmarking Report B2B Marketing

24 SECTION 3 Current social media activity 3.6 Objectives for social media Question: Here is a list of potential reasons to use social media as a marketing tool. Which three would you say are the most important objectives for your organisation? Figure 17. Objectives for social media Raising brand awareness is the primary concern for B2B marketers when It comes to social media, according to the results from this benchmarking report, cited by 55 per cent of respondents overall and 22 per cent as their top priority. Building customer relationships was second most important (cited by 45 per cent of respondents) followed by strengthening of thought leadership position in third place (with 43 per cent). Surprisingly, measurable objectives such as generate/nurture leads and drive sales, cited by 35 and 23 per cent respectively, were not in the top three reasons for using social media. Social Media Benchmarking Report B2B Marketing

25 SECTION 3 Current social media activity 3.7 SEO and social media convergence Question: When planning your social media activity, do you consider how it will impact on SEO? Figure 18. Impact of social media on SEO B2B brands may be missing the opportunities inherent in social media to drive enhanced search engine visibility, according to the research. One third of companies regard SEO and social media integration as key, while just under 40 per cent are aware of the benefits but don t regard it as a key consideration. Social Media Benchmarking Report B2B Marketing

26 SECTION 3 Current social media activity 3.8 Audiences or customer focus Question: Which audiences does your organisation target through social media? Figure 19. Use of social media in targeting specific audiences or customer bases Social media is not being used as a primary means to target C-suite executives in large organisations, according to the results of this benchmarking report, with only a third of respondents using this channel to reach this particular audience. Meanwhile, social media is proving far more popular as a means to target senior or middle management, and media contacts. Social Media Benchmarking Report B2B Marketing

27 SECTION 3 Current social media activity Question: In your experience, to what extent is social media effective in targeting these audiences? Figure 20. Effectiveness of targeting these specific audiences Social media is most effective as a means of targeting media contacts or journalists, with 81 per cent of respondents citing it as very or quite effective at reaching this audience. The statistic may be considered unsurprising given the role of journalists, and their high reliance on social media as an information tool. By contrast, only three per cent of respondents felt it was very effective at reaching the C-suite, and 36 per cent who felt it was quite effective at targeting this senior audience. Generally speaking the less senior the individual, the more effective respondents felt that social media was as a means of communicating with them. Social Media Benchmarking Report B2B Marketing

28 SECTION 3 Current social media activity 3.9 Key challenges Question: What do you regard as the key challenges in your organisation s use of social media? Figure 21. Key organisational challenges from social media The biggest challenges facing B2B companies in their use of social media are internal buy-in (22 per cent of respondents), time management (19 per cent) and integration (16 per cent). These are three perennial issues that crop up regularly through the results to this survey. It would seem clear that social media is a tough sell to a potentially sceptical senior level audience. Marketers are worried that it is potentially very resourceintensive (although this may be perception rather than reality) and that integrating it with the rest of your activity is easier said than done. Other issues of concern include internal inexperience, which relates to social media skills sets, and generating relevant and quality content, which is key for social activity to be successful. These two challenges relate to the perceived novelty of social media as a channel, and that marketers will need to improve their skills and change processes in order to succeed with it. Social Media Benchmarking Report B2B Marketing

29 SECTION 4 Budgeting and resource allocation 4.1 Specific budget allocation for social media Question: Do you have a specific budget for social media? Figure 22. Social media budget allocation Although social media is regarded as a key and highly potent marketing channel, only 22 per cent of respondents allocate a specific portion of their budget to it. Social Media Benchmarking Report B2B Marketing

30 SECTION 4 Budgeting and resource allocation 4.2 Proportion of budget allocated to social media Question: Approximately what percentage of your overall marketing budget is spent on social media? Figure 23. Social media s share of the overall marketing budget Almost three out of four B2B companies spend less than 10 per cent of their budget on social media, while only two per cent spend at least half their budget on this form of marketing. Responses to this question belie the general level of hype and enthusiasm surrounding social media, and are likely to be the result of the relatively low level of investment required for basic social media activity (blog posting, tweeting etc) when compared with almost every other kind of activity. In addition, the relative novelty of these techniques may be holding back their adoption. It will be interesting to track how this budget allocation changes in the coming years. Social Media Benchmarking Report B2B Marketing

31 SECTION 4 Budgeting and resource allocation 4.3 Expectations for change in social media budget allocation Question: As a percentage of total marketing spend, do you expect your spend on social media to increase or decrease over the next 12 months? Figure 24. Year-on-year expected change in social media budgets While budget allocation to social media among B2B companies may be modest at present, it looks certain to grow. According to the results, three quarters of respondents expect to increase investment in social media in the next 12 months 18 per cent expect this increase to be significant, while 58 per cent predict a slight increase. Of the remainder, less than five per cent expect a decrease in social media budget allocation, or don t know at this stage. Social Media Benchmarking Report B2B Marketing

32 SECTION 4 Budgeting and resource allocation 4.4 Time and resource allocation to social media Question: What percentage of the time does your organisation allocate to marketing using social media? Figure 25. Time and resource allocation to social media Investment in time on social media is slightly higher than that of marketing budget, according to the results, with just under half of respondents investing less than 10 per cent of their total time resource on this marketing channel. This would correspond with the suggestion that social media, in the early stages at least, is a more significant draw on marketers time than it is on their budgets. Only four per cent of respondents currently spend more than half of their time on social media. Social Media Benchmarking Report B2B Marketing

33 SECTION 4 Budgeting and resource allocation Question: What percentage of the budget does your organisation allocate to marketing using social media? Figure 26. Time and budget investments in social media This chart demonstrates that current time investment in social media by B2B companies is running marginally ahead of current budgetary investment. Social Media Benchmarking Report B2B Marketing

34 SECTION 4 Budgeting and resource allocation 4.5 Expected change in marketing time and resource allocation for social media Question: Do you expect the amount of time your organisation spends on social media to increase or decrease over the next 12 months? Figure 27. Year-on-year change in time and resource allocation for social media Once again, B2B marketers overwhelming anticipate that the time they will invest in social media will rise over the next 12 months one third expect this increase to be significant while half of respondents expect it to be slight. Only two per cent of respondents expect to invest less time in social media in the next 12 months. Figure 28. Expected increases in time and budget on social media compared This chart shows that B2B marketing resources, both in terms of time and budget, will overwhelming migrate towards social media over the next 12 months. Social Media Benchmarking Report B2B Marketing

35 SECTION 4 Budgeting and resource allocation 4.6 Use of external resources Question: To what extent do you outsource your social media marketing activity to third parties? Figure 29. Outsourcing of social media activity B2B social media activity is largely conducted inhouse, according to the research, with 69 per cent of respondents only using outsourcing services for social media rarely or not at all. Of the remainder of respondents, only 12 per cent outsource their social media activity either most of the time or about half the time. Social Media Benchmarking Report B2B Marketing

36 SECTION 4 Budgeting and resource allocation Question: Which of the following types of third parties do you use? Figure 30. Types of outsourcing services used PR agencies are the most popular type of outsourcing partner for B2B social media, used by almost half those who conducted outsourcing. Only a third of respondents to this question used a specialist social media agency. However, because there is so little outsourcing of social media services generally, the number of responses to this question was consequently too low to be statistically valid. Social Media Benchmarking Report B2B Marketing

37 SECTION 5 Social media tools and techniques 5.1 Types of social media techniques currently in use Question: Which of the following social media techniques are you currently using? Figure 31. Organisations use of different social media techniques Existing social networks, such as LinkedIn or Twitter, are the most popular forms of social media currently being conducted by B2B companies, with 90 per cent of respondents using them currently, and zero not considering them at all. Use of company blogs and online PR were found to be broadly similar, while unsurprisingly proprietary communities were least popular, used by only a third of respondents, with a further 30 per cent planning to use them in future. Given the effort involved in establishing a proprietary community, as well as the budget, the low level of current usage is unsurprising, and the result may generally be seen as very positive for this flavour of social media. Social Media Benchmarking Report B2B Marketing

38 SECTION 5 Social media tools and techniques 5.2 Usage of different social networks Question: What s the extent of your organisation s presence on the following social networks? Figure 32. Respondents use of different social networks It may be surprising to some that Twitter is the most popular social network for B2B brands, with 85 per cent of companies having a corporate presence there, ahead of 77 per cent who have a LinkedIn page. However, conversely more companies have an individual specifically designated to LinkedIn than Twitter (41 per cent against 32 per cent). It may also be seen as surprising that Facebook and YouTube are so close in terms of B2B penetration, with 67 and 66 per cent of respondents respectively having a corporate page on these networks. Looking at the chart, there is a clear and profound split between LinkedIn, Twitter, Facebook and YouTube on the left, where there is a high level of usage on all the different networks, and those on the right (Slideshare, Quora, Xing, Foursquare and industry specific networks) where usage is much lower. In the case of Quora, the disparity may be because the network remains relatively new and therefore penetration is low; in the case of Xing, because its audience is focused on continental Europe, whereas respondents to this survey were mostly UK based. Responses to this question will undoubtedly change over time, but at the moment the use of social media platforms in B2B is clearly polarised. Social Media Benchmarking Report B2B Marketing

39 SECTION 5 Social media tools and techniques 5.3 Usefulness of different social networks Question: In your opinion, which three social networks are most useful to your organisation at present and which three do you think will be most useful in 12 months time? Figure 33. Comparison of current and future usefulness of social networks In terms of the networks that are most useful at present, this chart broadly mirrors Figure 32, in that Twitter and LinkedIn are significantly ahead of the other networks, with Facebook and Youtube slightly further behind and the others having comparatively little relevance. However, when looking ahead, respondents expect this picture to change in the next 12 months; perhaps not radically, but still quite significantly. In particular, it is interesting to note that, of the four leading networks, only YouTube is expected to be more useful in 12 months time than it is now (albeit a marginal growth of one per cent year-on-year). This reflects the expected growth in importance and relevance in video as a marketing channel. It also defies some expectations that Facebook s relevance in B2B will gradually inevitably increase as boundaries blur between work and leisure through use of social media. As regards the smaller social networks, respondents predict the relevance of all will grow, admittedly from a low base: Slideshare in particular is expected to triple its usefulness within 12 months. Industry specific networks will become more important, although at a slower rate. In future, the polarity in importance of social networks may not be so profound as it is today. Social Media Benchmarking Report B2B Marketing

40 SECTION 5 Social media tools and techniques 5.4 Frequency of social media engagement Question: On average, how many times a month does your organisation or designated individual/s representing your organisation tweet? Figure 34. Tweets per month The mean number of tweets per month by respondents is 114, which means that B2B companies are tweeting around five or six times per working day, which is a significant commitment to this channel. Question: On average, how many times a month does your organisation or designated individual/s representing your organisation blog per month? Figure 35. Blogs per month The mean number of blogs per month is 10, which works out at approximately two per week. Social Media Benchmarking Report B2B Marketing

41 SECTION 5 Social media tools and techniques Question: On average, how many times a month does your organisation or designated individual/s representing your organisation post updates on your organisation s LinkedIn page? Figure 36. LinkedIn page updates per month The mean number of LinkedIn updates per month is 19, although half of all respondents produce less than four per month. Question: On average, how many times a year does your organisation or designated individual/s representing your organisation post videos on its YouTube account Figure 37. YouTube page updates per month The mean number of YouTube updates per month is 17, which reflects a significant commitment to video as a B2B marketing channel. Social Media Benchmarking Report B2B Marketing

42 SECTION 5 Social media tools and techniques 5.5 Effectiveness of specific social media channels Question: Please indicate how many people follow your organisation s Twitter account Figure 38. Followers of company Twitter feeds Question: Please indicate how many people subscribe to your company blog Figure 39. Followers of company blogs Social Media Benchmarking Report B2B Marketing

43 SECTION 5 Social media tools and techniques Question: Please indicate how many people are members of your LinkedIn group Figure 40. LinkedIn Group members Question: Please indicate how many people link to your company blog posts Figure 41. Links to company blog posts Social Media Benchmarking Report B2B Marketing

44 SECTION 5 Social media tools and techniques 5.6 Use of commercial services from social networks Question: Which social networks have you bought promotional services (such as advertising) from in the past 12 months? Figure 42. Use of commercial social services Use of commercial social services remains in its infancy in the B2B sector, with 62 per cent saying the have not used any advertising or commercial services from social networks to date. Of the services that have been used, LinkedIn is the most popular, used by 21 per cent of respondents, followed by Facebook with 15 per cent. Only three per cent of respondents have used commercial services from Twitter, despite the fact that it is the most popular of all the networks. This may relate to the fact that the micro-blogging platform has relatively few revenue generating services to date, and the simplicity of the network itself potentially impinges on the development of further offerings. However, Twitter s clear intention to monetise its services and become profitable means this will potentially be its number one objective looking ahead whether it can monetise its services and maintain its level of popularity may prove to be a tough balancing act. Social Media Benchmarking Report B2B Marketing

45 SECTION 5 Social media tools and techniques Question: Why have you not bought promotional services from social networks? Figure 43. Reasons for not buying commercial social services There are a mix of reasons why B2B marketers have yet to embrace commercial services from social networks with significant enthusiasm. However, the key reasons cited ( other priorities, don t understand and not good value ) suggest that the networks themselves haven t been good enough at developing and selling their commercial propositions. This will undoubtedly change as social media continues to become rapidly more sophisticated. Clearly, commercial social media services have a long way to go right now. Social Media Benchmarking Report B2B Marketing

46 SECTION 6 Effectiveness and measurement 6.1 Comparison of social media effectiveness against other channels Question: When compared to each of the marketing channels below, how effective would you say social media is in achieving your marketing objectives? Figure 44. Social media effectiveness as compared with other marketing channels The question of effectiveness is key in marketing, and it is interesting to note that in terms of net effectiveness social media was only deemed more effective than print or online ads. This response may be considered surprising, but perhaps it should be evaluated within the context of the objectives that social media was being used to achieve. Brand recognition for example (see page 23, Figure 17) is notoriously hard to measure in terms of effectiveness. Meanwhile, traditional direct marketing techniques, such as direct mail, telemarketing and , are often geared around more measurable objectives such as driving sales or booking appointments. Therefore, arguably, comparisons on this general basis may be considered unfair. At the same time, given marketers stated concerns about justifying the benefits of social media to budget holders, it seems that more work needs to be done on measurement for this channel. Social Media Benchmarking Report B2B Marketing

47 SECTION 6 Effectiveness and measurement 6.2 Effectiveness of social media for specific marketing objectives Question: How effective are the following social media techniques in building closer customer relationships? Figure 45. Effectiveness of social media in building customer relationships In terms of the specific objective of building customer relationships, proprietary online communities were found to be the most effective flavour of social media, although this was taken from a very low base of respondents who actually use this channel. Proprietary online communities are generally populated by an audience with significant common interests, who have all joined voluntarily. Generating traction within these environments would therefore seem to be easier than within more general environments. Social Media Benchmarking Report B2B Marketing

48 SECTION 6 Effectiveness and measurement Question: How effective are the following social media techniques in raising brand awareness? Figure 46. Effectiveness of social media in building customer relationships When it comes to raising brand awareness, online PR was found to be the most effective form of social media, presumably because of its ability to access multiple platforms and broad audiences. By contrast, company blogs were seen to be far less effective as a brand awareness tool. Social Media Benchmarking Report B2B Marketing

49 SECTION 6 Effectiveness and measurement 6.3 Ability to demonstrate ROI Question: To what extent would you say you can demonstrate ROI from your social media activity? Figure 47. Respondents ability to demonstrate ROI on social media activity B2B marketers ability to demonstrate ROI on social media activity leaves much to be desired, with two thirds of respondents only able to achieve this rarely or some of the time. Only four per cent can demonstrate ROI on social media always and completely. These figures explain why so many marketers have trouble justifying investment in social media to the board or the budget holders. Social Media Benchmarking Report B2B Marketing

50 SECTION 6 Effectiveness and measurement 6.4 Use of social media for lead generation Question: Do you currently use social media to generate leads? Figure 48. Lead generation application of social media Arguably the best way to demonstrate ROI on social media is to integrate it with lead generation activity, ensuring interactions made in the social environment are pulled into the pipeline for ultimate conversion. The nature of social media means that direct sales involvement is likely to be received badly and may even damage an organisations brand. However, a lead nurturing approach can be far more subtle, but complex none-theless. According to the results, over half of B2B companies currently already integrate social media with lead generation. This finding is likely to accommodate a wide variety of different approaches and levels of sophistication. Social Media Benchmarking Report B2B Marketing

51 SECTION 6 Effectiveness and measurement Question: Which of the following processes do you then use to nurture leads? Figure 49. Lead generation application of social media The most popular technique used to engage lead nurturing with social media interactions is to generate additional online engagement, as cited by 62 per cent of respondents. This is a broad term that could include many different types of interaction, depending on the social media platform involved. A surprising number of respondents (54 per cent) use social media activity as justification for a telemarketing follow-up call. Such a call would have to be handled carefully to ensure the prospective customer was not actively turned off, due to what might be perceived as an over-eager vendor. While 44 per cent of companies manually input contacts identified via social media, only six per cent automate and enable this process through the use of social CRM platforms, such as Lithium. Social Media Benchmarking Report B2B Marketing

52 SECTION 6 Effectiveness and measurement 6.5 Use of technology to track social media activity Question: Do you currently or plan to use any technology to help track the effectiveness of your social media activity? Figure 50. Use of technology to track social media Web analytics platforms are the most popular form of technology used to track B2B social media activity, as used by 68 per cent of respondents to this survey. Given the established nature of this type of technology, and the fact that Google Analytics is free and therefore barriers to usage are low, this can be seen as no surprise. Uptake of specific social media monitoring platforms, which are a relatively new form of technology, is fairly high, with 28 per cent currently using them, and a further 37 per cent planning to use them in the near future. The figures for use of CRM systems in tracking social media are broadly parallel to those for social media monitoring platforms. However, it is unclear the extent to which this is due to the level of use of CRM systems generally, or marketers ability to use these systems for these specific purposes. Only 12 per cent of companies are using marketing automation platforms to monitor social media, with a further 33 per cent expecting to in the future. Given the relatively low level of implementation of marketing automation systems in Europe, and the fact that not all of them include social monitoring functionality, this is unsurprising. It will be interesting to note how usage of these platforms grows in comparison to usage of specific social media monitoring platforms. Social Media Benchmarking Report B2B Marketing