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Ocobe 14, 2010
Bechmkig Soci MkeigPs Fo 2011b Se Coco
o Iecie Mkeig Poessios
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2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Inormation is based on best availableresources. Opinions refect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective companies. Topurchase reprints o this document, please [email protected]. For additional inormation, go to www.orrester.com.
Fo Iecie Mkeig Poessios
ExECutIvE SuMMary
Despite the tremendous hype and even some pockets o success, our recent survey shows that social
media marketing is still at an early stage. In act, most interactive marketers arent as ar behind as they
may think. Most have not established strategies and organizational changes. Yet theyre starting to make
progress and, by this time next year, the majority o organizations will have their plans in place. o
ensure they dont all behind the curve, interactive marketers should set their plans now. Tis includes a
long-term social media marketing strategy, dedicated resources, budgets, policies, and training.
taBlE OF COnt EntSScial Media Maretin Is Still Nascent
Soci Mkeig Si Hs M Ie
robocks
Interactie Mareters Are Main Prress In
Scial Maretin Efrts
Pioees le the W: the Be, the Coo,
the Be, a the Obige
Compies ae Iesig I Soci Mkeig
rECOMMEndatIOnS
Sw Nw And Reap The Rewards Later
Supplemental Material
nOtES & rESOurCES
Foese se om he M 2010 uS
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Bechmkig Soci Mkeig Ps Fo 2011Iecie Mkees Sho Se a log-tem Soci Mkeig P now
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SoCIAL MEDIA MARkETINg IS STILL NASCENT
Te use o social technologies or marketing is still at an early stage. While a ew companies like Best
Buy and Starbucks have created an explosion o social media participation, many other companies
have yielded smaller yet promising gains through activities as disparate as a corporate blog, Youube
channel, or Facebook presence. Yet despite all o these initiatives, most interactive marketers are still
trying to determine how to incorporate social media marketing into their larger IM plans. In act,
only 39% o interactive marketers at large companies (with $500 million or more in revenue) have a
long-term social media marketing plan or their organization (see Figure 1).
Fiure 1 Mos Iecie Mkees ae lckig log-tem Soci Mkeig Ps
Source: Forrester Research, Inc.57591
Currently implementing or piloting 39%
Plan to pilot in the next 12 months 36%
No plans to use 25%
Source: May 2010 US Interactive Marketing Online Survey
Base: online US interactive marketing executives of companies with $500 million or more in revenue(percentages may not total 100 due to rounding)
Are you currently using, piloting, or expecting to pilot a long-term social marketingplan for your organization?
Scial Media Maretin Still Has Many Internal Radblcs
Social media marketing is not a vertical channel but a set o tools that enable collaboration across
virtually all marketing departments including advertising, customer service, public relations, and
market research. Yet not one o the ve major groundswell objectives is being used by even hal o
interactive marketers at large companies (see Figure 2).1 echnology adoption is similarly slow as
only 24% have a community platorm in place and only 19% have a listening platorm in place (see
Figure 3). Why such slow adoption? Because there are still signicant roadblocks such as:
Te overall value o social media marketing is ofen still unclear. Measurement is a hot topicin the social media space, and or good reason. Many interactive marketers are still trying to
determine not just the ROI o social media marketing, but where it ranks in priority with other
marketing initiatives.
A new way o thinking is required. While money is needed or social media marketing,marketers cant buy engagement with earned media like they buy reach with paid media.2 Te
brand must earn trust and commitment instead. Tis means senior management must lead a
new way o thinking combined with time, organization, and resources.
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Organizational change is needed. Most large companies are organized in silos by nature,but social media marketing requires a atter structure. Tereore, interactive marketers oen
act as the change agent, leading social eorts not just across marketing but oen across the
organization (sometimes even in the orm o social strategist or similar title). Also, since the
value o social media marketing is oen unclear and it touches so many dierent departments,
determining where people and budgets should come rom can become an uncomortable
political issue internally.
Many organizations are risk averse. Companies can be risk averse or a variety o reasons.Whether it be the ear o negative eedback published publicly, government regulations, or just a
general conservative culture, many companies are not willing to dip their toes in such a nascent
and uncontrolled space.
Most companies are not early adopters. Success in social media marketing oen equates to anaggressive adoption o new technologies and most companies dont all into that category. Only15% o interactive marketers rom large companies identied their company as very aggressive
in adopting new marketing technologies while 48% identiy their companies as not aggressive
(see Figure 4).
Some companies still have little to no interest. Despite all o the hype, there is still a signicantamount o companies that have mostly or even totally shunned the use o social media
marketing. In act, 25% o interactive marketers rom large companies dont have a long-term
social media marketing strategy and dont have plans to implement one in the next 12 months.
Fiure 2 Iecie Mkees use Soci techoogies Fo M Objecies
Source: Forrester Research, Inc.57591
No plans to use
43% 19% 37%
42% 31% 27%
39% 33% 28%
33% 21% 46%
30% 33% 37%
Please indicate which you are currently using, piloting, or expect to pilot in the next 12 months
Systems to encourage consumers tospread company messages
Social technologies to research andunderstand your consumers
Processes to evoke word-of-mouth marketingthrough your most enthusiastic consumers
Social tools like forums to allow customers tosupport each other
Ways to involve customers in idea-building forbetter products and services
Base: online US interactive marketing executives of companies with $500 million or more in revenue
Source: May 2010 US Interactive Marketing Online Survey
Currently implementing or piloting Plan to pilot in the next 12 months
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Fiure 3 aopio O Soci Poms Is Si low amog lge Compies
Source: Forrester Research, Inc.57591
No plans to use
24% 31% 45%
19% 24% 57%
18% 24% 58%
Source: May 2010 US Interactive Marketing Online Survey
Social publishing platforms like Vitrue andSpredfast to help market on social networks
Listening platforms like Nielsen BuzzMetrics andTNS Cymfony to monitor customer intelligence
Community platforms like Jive or LithiumTechnologies to track customer interactions
Currently implementing or piloting Plan to pilot in the next 12 months
Thinking specifcally about your social marketing initiatives, please indicate which you are currently
using, piloting, or expect to pilot in the next 12 months
Base: online US interactive marketing executives of companies with $500 million or more in revenue
Fiure 4 Mos lge Compies ae ve aggessie a aopig new Mkeig techoogies
Source: Forrester Research, Inc.57591
How aggressive is your company when it comes to investing in marketing technology?
15%
Base: online US interactive marketing executives of companies with $500 million or more in revenue
Very aggressive: We frequently adopt emergingtechnologies
Somewhat aggressive: We adopt technologiesthat prove eective on other industries
Not very aggressive: We adopt technologies in
line with trends in our industryNot at all aggressive: We only adopt tried and
true technologies
Source: May 2010 US Interactive Marketing Online Survey
37%
33%
15%
INTERACTIvE MARkETERS ARE MAkINg PRogRESS IN SoCIAL MARkETINg EFFoRTS
While social media marketing is nascent, there are many companies making strides. Much o this is
being driven by a group o early pioneers blazing trails in areas such as testing, budgeting, allocating
resources, and setting guidelines. With these companies leading the way over the past ew years
many more are now in the planning process, 36% o interactive marketers rom large companies
plan to implement a long-term social marketing strategy in the next 12 months. In act, 2010 is the
year o social organization or many companies, and by this time next year most large companies
will have their long-term strategy, organization, training, and budgets in place.
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Pineers Lead The Way: The Burned, The Cl, The Brae, And The obliated
Many companies are already leading the way and interactive marketers should learn rom their
progress. Some aspects o social media marketing will be custom to the organization, but interactive
marketers dont have to entirely reinvent the wheel. Tere are our types o companies that have had
early success in social media marketing that others can learn rom:
Te burned. Some companies have learned the power o social media the hard way. Marketersare sure to have heard stories eaturing a company ailure that was passed virally through social
platorms (e.g., United Airlines, Dominos, Motrin, Nestle, etc.). Some o these companies have
actually learned rom the problem and made changes to rectiy the issues. United Airlines
actually uses the Youube sensation United Breaks Guitars as a training video.3 Te point?
Dont wait around to be burned by social media marketing; get involved now. I you do get
burned, use the lesson internally to help garner senior support or uture endeavors.
Te cool. Some brands are naturally popular with audiences that use social media and haveno problem generating earned media. However, its still important or these brands to embrace
social media marketing strategically and empower their employees to converse on their behal.
For instance, Starbucks has made better customer relationships a major company ocus, and it
has leveraged its social media applications such as MyStarbucksIdea, its iPhone application, and
its 10 million-plus ans on Facebook to help create products, interact with customers, and now
even tie in its loyalty program to enhance its business results. I you have a popular brand, you
will nd signicant efciency in using social media to energize ans to spread the word or you.
Te obligated. Some industries (like retail, travel, and high-tech) ound themselves involved insocial media marketing whether they liked it or not. For instance, retail companies ound theirway into social media marketing mainly due to the popularity o ratings and reviews. Many o
these companies have ound success as applications like ratings and reviews are not only popular
with consumers but they typically have a positive eect on sales.4 Interactive marketers who
have a ear o negative reviews need only look to search analytics and listening platorms to see
how well competitors are aring who have implemented such applications.
Te brave. Some companies recognized the power o social media marketing without beingcool, burned, or even obligated by their customers. For example, Intuit started its social media
marketing program or urboax by creating Te ax Rapstarring Vanilla Ice. Te team had
to sell the idea to the ounder beore it could move orward, but it went so well that the teamnow has carte blanche to move orward with whatever programs make sense, and its been able
to get resources allocated and policies in place to govern all social media marketing
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Cmpanies Are Inestin In Scial Maretin
Other companies are now ollowing these pioneers and investing in social media. By 2014, social
media spend in the US will surpass $3 billion.5 More than one out o our large companies increased
their social media marketing budgets in 2010 (see Figure 5). Tis trend will continue in 2011 as
27% plan to increase their budgets in the next 12 months (see Figure 6). But its not just budgets that
are growing as companies are also investing in their organizations and resources. We ound that
companies are in the process o coordinating their social media marketing eorts by:
Empowering employees through training and policy guidelines. More than our out o veonline US adults are participating in social media.6 Tat means many o your employees are
probably very comortable using social technologies to share inormation with others both
personallyandproessionally.7 Many companies recognize both the power and the risk when
their employee base has the ability to publish inormation so easily. Tereore, implementing
social media policies and training is a crucial step. Yet less than hal o interactive marketersrom large companies say they have trained employees or social media marketing (see Figure 7).
And less than hal currently have a social media policy in place (see Figure 8).
Dedicating ull-time resources. Mature social media marketing requires internal resources.Currently, 36% o large companies have hired ull-time dedicated resources or social media
marketing (see Figure 9). Sometimes this is simply a community manager ocused on executing
across a handul o applications, and sometimes its a social media strategist owning the long-
term strategy and implementation o social technologies across the organization. Other large
companies are adding ull-time resources, and 28% plan to add them in the next 12 months.
Incorporating social media marketing into existing roles. Tree out o 10 large companieshave part-time resources working on social. Its common to have people eaturing social
applications in existing programs or campaigns. Also, due to the tough economy many
companies are strapped or resources and are orced to have employees wear many hats.
Companies will continue this pattern as 24% plan to add part-time resources over the next year.
Forming cross-team governance councils. Because social technologies can be leveraged acrossvirtually any company department, its important to have those department heads come together
to set governance policies and share best practices. Right now about three out o 10 large
companies currently have such a council and one-quarter plan to implement one in the next 12
months.
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Fiure 5 Soci Mkeig Bges He Gow a lge Compies
Source: Forrester Research, Inc.57591
How does your total US social media marketing budget
in 2010 compare with the 2009 budget?
Increasedsignicantly
5%
Increased slightly21%
Stayed the samethis year
51%
Decreased signicantly3%
Decreased slightly6%
Dont know15%
Source: May 2010 US Interactive Marketing Online Survey
Base: online US interactive marketing executives of companies with $500 million or more in revenue(percentages may not total 100 due to rounding)
Fiure 6 Soci Mkeig Bges a lge Compies Wi Coie to Gow I 2011
Source: Forrester Research, Inc.57591
How does your total US social media marketing budget in 201compare with the 2010 budget?
Increasedsignicantly
5%
Increased slightly22%
Stayed the samethis year
48%
Decreased signicantly3%
Decreased slightly5%
Dont know18%
Base: online US interactive marketing executives of companies with $500 million or more in revenue(percentages may not total 100 due to rounding)
Source: May 2010 US Interactive Marketing Online Survey
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Fiure 7 Mos lge Compies ae tiig Empoees Fo Soci Mkeig
Source: Forrester Research, Inc.57591
Base: online US interactive marketing executives of companies with $500 million or more in revenue(percentages may not total 100 due to rounding)
Source: May 2010 US Interactive Marketing Online Survey
Are you currently using, piloting, or expecting to pilot
social media best practices training for employees?
Currently implementing or piloting 46%
Plan to pilot in the next 12 months 18%
No plans to use 36%
Fiure 8 Mos lge Compies ae Seig Poicies Fo Empoees
Source: Forrester Research, Inc.57591
No plans to use
43%
34% 34% 31%
Thinking specifcally about your social marketing initiatives, please indicate which you arecurrently using, piloting, or expect to pilot in the next 12 months
Currently implementing or piloting Plan to pilot in the next 12 months
Internal social marketing policies and/orcommunities for employees
External social marketing policies and/orcommunities for brand advocates
Base: online US interactive marketing executives of companies with $500 million or more in revenue
Source: May 2010 US Interactive Marketing Online Survey
30% 27%
Fiure 9 Mos lge Compies ae deicig F-time resoces to Soci Mkeig
Source: Forrester Research, Inc.57591
No plans to use
36% 28% 36%
31% 24% 45%
31% 25% 43%
Thinking specifcally about your social marketing initiatives, please indicate which you are currentlyusing, piloting, or expect to pilot in the next 12 months
Full-time resource(s) to managesocial media initiatives
Part-time resource(s) or contributorsto manage social media initiatives
A social media governance councilor center of excellence
Base: online US interactive marketing executives of companies with $500 million or more in revenue
Source: May 2010 US Interactive Marketing Online Survey
Currently implementing or piloting Plan to pilot in the next 12 months
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r E C O M M E n d a t I O n S
SoW NoW AND REAP THE REWARDS LATER
Iecie mkees e i he pocess o geig hei soci mei mkeig ps
esoces i pce. a comp o ceig og-em seg, seig bges, ocig
esoces, o seig poic is e ig behi. Iecie mkees sho oow he
compies h wee be i soci mei mkeig impeme ow he h wi
e he h w. to ese sccess, iecie mkees sho o he oowig:
Be the chane aent that brins teams tether. Iecie mkees oe hemsees i he mie o pig soci mei segies poicies whehe he
e mkeig ee o o. tke ge o his posiio wok o ochese he
igh epmes sch s csome seice, pbic eios, eg, It. this m ke
ime ee m osie o peso gos b i he og wi p o i mkeig
ess becse he wi e so hei o ogizio h hs ewe sios.
Find and empwer yur HERoes. Sice soci mei picipio is e eemehigh so es o se, hees goo chce peope i o comp e e sig
soci ppicios o wok pposes. these pes o peope e o be ge sses o soci
mkeig s hee e pocie eig how he c hep wih eisig wok. use
Foeses HErO Ie o iei he peope i o ogizio poie hem wih he
igh oos gieies o sccee.
Cnnect and learn rm pineers. M compies he e bze i i socimei mkeig. the goo ews is, e o he e o soci mei, h iomio
is oe o h o . look ie o o HErOes h e es heechoogies. B o sop hee, ech o o iiec compeios o ohe compies wih
sccess e om hei sccess ie. Ge cie wih soci mei sch s twie,
likei, commiies, bogs o e om hose ce hei ioe.
Share budet acrss departments. Ee hogh soci mei mkeig bgese gowig, hees si some cosio ee ighig occig o bge
oweship. this is especi e o echoog impemeio o higs sch s iseig
commi poms. I wi be essei o wok coss ems ee ws o
she bges i he e s hese oos wi bee moe h js oe epme.
Listen and share eedbac acrss the ranizatin. Compies h he impemeeiseig poms e oe spise whee he hei csomes kig bo hem
wh hee c kig bo. this soci ieigece is oe wie ge o
h c ec mkeig, pbic eios, csome seice, moe. Impemeig
iseig pom shig his coss ems c hep bek ow sios ece
ems h e hesi o ge ioe.
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Use a Balanced Screcard r measurement. Mesig soci mei mkeig is hoopic ifc chege o mos compies. the ei is h hee e oppoiies
o mese iec ci ess (i.e., rOI) o soci ppicios b he bee o hese
oos is mch boe s i c so hep wih b ies isk mgeme.
Compies wokig hogh meseme cheges sho eeop Bce Scoec
h ices possibe meics o sccess.8
Recnize that the PoST methd is still releant. Foeses POSt meho oces o ohik bo how o iece behes mkes o choose objecie beoe jmpig
io he es ho echoog. Iecie mkees sho coie o se his meho o
eemie which ppicios mke sese.
SUPPLEMENTAL MATERIAL
Methdly
Forrester elded its May 2010 US Interactive Marketing Online Survey to 309 Interactive Marketing
proessionals. For quality assurance, panelists are required to provide contact inormation and
answer basic questions about their rms revenue and budgets.
Forrester elded the survey in May 2010. Exact sample sizes are provided in this report on a
question-by-question basis. Panels are not guaranteed to be representative o the population. Unless
otherwise noted, statistical data is intended to be used or descriptive and not inerential purposes.
I youre interested in joining one o Forresters research panels, you may visit us at http://Forrester.
com/Panel.
ENDNoTES
1 Te ve major Groundswell objectives are listening, talking, energizing, supporting, and embracing. Source:
Charlene Li and Josh Berno, Groundswell: Winning in a World Transformed by Social Technologies, Boston:
Harvard Business Press, 2008 (http://groundswell.orrester.com).
2 Marketers must balance earned, owned, and paid media to succeed in an adaptive marketing environment.
See the December 16, 2009, No Media Should Stand Alone report.
3 Source: Jared Wiener, Zach Fannin, and Kristi Berner, United Breaks Guitars: Hot on Youube, World
News Daily Blog, July 9, 2009 (http://blogs.abcnews.com/theworldnewser/2009/07/united-breaks-guitars-
hot-on-youtube.html).
4 When it comes to social commerce, ratings and reviews have been a runaway success. See the February 25,
2010, echRadar For eBusiness And Channel Strategy Proessionals: Social Commerce, Q1 2010 report.
5 Social media has the largest orecasted CAGR growth o any online media over the next ve years. See the
July 6, 2009, US Interactive Marketing Forecast, 2009 o 2014 report.
http://www.forrester.com/go?docid=54869&src=57591pdfhttp://www.forrester.com/go?docid=56069&src=57591pdfhttp://www.forrester.com/go?docid=47730&src=57591pdfhttp://www.forrester.com/go?docid=47730&src=57591pdfhttp://www.forrester.com/go?docid=56069&src=57591pdfhttp://www.forrester.com/go?docid=54869&src=57591pdf -
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6 Now more than our in ve US online adults use social media at least once a month, and hal participate in
social networks like Facebook. While young people continue to march toward almost universal adoption
o social applications, the most rapid growth occurred among consumers 35 and older. See the August 25,
2009, Te Broad Reach O Social echnologies report.
7 Groundswell technologies social, mobile, video, and cloud put tremendous power in the hands o
customers. Only empowered employees can respond at the speed o empowered customers and theyre
oen inormation workers outside o I. We call these innovative inormation workers HEROes highly
empowered and resourceul operatives. Te HERO Index is a new tool we have developed to measure
just how empowered and resourceul your own employees are. Our data reveals that some industries (like
technology products and services) and job descriptions (like marketing and nonretail sales) harbor more
HEROes than others. See the June 18, 2010, Te HERO Index: Finding Empowered Employees report.
8 Te demand has never been greater or marketers to validate and measure the benets delivered by their
increasing investment in social media. Marketers oen rame this question as, What is the ROI (return on
investment) o social media? but nancial metrics are just one way o evaluating social media marketing
programs. Social media marketing delivers a wide range o benets to organizations that are benecial
in the short term and long term in ways both quantitative and qualitative. o properly value the impact
o their social media marketing investments, interactive marketers must align their objectives, metrics,
targets, and strategies across our perspectives the nancial perspective, the digital perspective, the
brand perspective, and the risk management perspective. See the July 16, 2010, Te ROI O Social Media
Marketing report.
http://www.forrester.com/go?docid=55132&src=57591pdfhttp://www.forrester.com/go?docid=57122&src=57591pdfhttp://www.forrester.com/go?docid=57009&src=57591pdfhttp://www.forrester.com/go?docid=57009&src=57591pdfhttp://www.forrester.com/go?docid=57009&src=57591pdfhttp://www.forrester.com/go?docid=57009&src=57591pdfhttp://www.forrester.com/go?docid=57122&src=57591pdfhttp://www.forrester.com/go?docid=55132&src=57591pdf -
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