lift social 2016: nate elliott: beyond engagement, closing keynote

#LIFTSocial

Beyond EngagementNate Elliott

@nate_elliott | #LIFTSocial


Social isn’t new, and it isn’t niche

Source: Simply Measured “The State of Social Marketing 2016,” June 2016.

2015 2016

1,650,000,000

1,000,000,000

550,000,000 540,000,000400,000,000

320,000,000200,000,000

100,000,000 107,000,000

2016 Monthly Active Users on Each Network


100% of top brands use social


100% 99% 99%

85%

97% 93% 94%86% 87%

50%

76%

42%54%

30%

+2%

+1%

+9%

+9%+9%-1%

-1%+1%+2%

-7%

+1%

+7%

-16% +15%

Percentage of Interbrand 100 Companies Using Each Network


Brands spend tens of billions on social each year

Source: eMarketer, Sept 2015

$10.45

18.0% 20.0% 21.9%14.7%

$13.43

$16.53

$7.32

2014 2015 2016 2017

Social network adr

evenues % of digital ad spending

Note: includes paid advertising appearing within social networks, social network games and social network apps; excludes spending by marketers that goes toward developing or maintaining a social network presence

US Social Network Ad Revenues, 2014 – 2017Billions, % change and % of digital ad spending


13 years and almost $100 billion later, brands still have no idea if social is even working.


Agenda

• We’re measuring social wrong.• Engagement data is the

problem.• It’s time to move beyond

engagement.


We’re measuring social wrong.


Social teams know they can’t measure well

Sources: Simply Measured “The State of Social Marketing 2016,” June 2016. Gartner “How To Determine Social Marketing Revenue Attribution,” January 2015. Social Media Examiner “2016 Social Media Marketing Industry Report,” May 2016.

Can measure ROI

Can’t measure ROI

0% 25% 50% 75% 100%

61%

61%

59%

39%

39%

41%


We’re much better at measuring other channels

Source: Gartner “How To Determine Social Marketing Revenue Attribution,” January 2015. Note: Selected channels shown. Respondents shown answered 6 or 7 on a scale of 1 = Not well at all / 7 = Extremely well.

How effectively is your organization able to measure these activities today?

Email marketing

Onlinedisplay ads

Socialmarketing

Paidsearch ads

30%

40%

50%

60%

70%


CMOs don’t believe social works

Note: Not all responses are shown.Social practitioners are marketers who execute or manage social media programs. Senior marketers are marketers who oversee social media programs and teams.Source: Forrester’s Q1 2015 Global Social Relationship Platform Wave™ Online Survey

“Thinking about your social programs, how satisfied are you with the business value your company has achieved by using each of the following marketing

channels and tactics?”(Only responses with a 5 [strongly agree] included)

Facebook page

Ads or promoted posts on Facebook

Ads or promoted Tweets on Twitter

Twitter page

Base: 75 avid social marketers (social practitioners)*Base: 47 avid social marketers (senior marketers)

Social practitioners

Senior marketers

52%

44%33%

41%13%

39%27%

28%


Engagement data is the problem.


Social teams can only report the data they have


Most brands say engagement is their top social metric


Engagement metrics(Likes, comments, @mentions, shares, retweets)

Which metrics do you use more often to measure the success of social media?

1.7%

Conversion & revenue metrics(Web traffic, goal conversions, revenue)

Amplification & brand awareness metrics

(Web traffic, goal conversions, revenue)Other

Customer service metrics(Response time, response rate, etc.)

We don’t measure social media performance

Customer satisfaction metrics(Sentiment, referrals, etc.)

2.0%

2.3%

2.3%

15%

20.7%

56%


But even Facebook no longer focuses on engagement

Source: Facebook, “Engagement on Facebook: When it Matters”

We know that many of you are focused on achieving business goals such as sales lift or brand awareness. And, many publishers have historically pointed to engagement metrics as a sufficient proxy for understanding the impact of advertising campaigns.

Industry research, however, has repeatedly shown that engagement rates do not correlate with the outcomes ultimately used to judge the success of your marketing efforts. While clicks can be strong indicators of success for online direct response campaigns, research be Nielsen shows very limited correlation between clicks and offline sales life; the same is true of clicks and standard brand metrics like awareness.

Given these findings, the success of advertising campaigns should be measured through business results and not via engagements rates. The same KPIs and metrics you use in other channels, and you know drive your business, should be used to assess impact on Facebook


Engagement doesn’t lead to sales

Source: Facebook, “Engagement on Facebook: When it Matters”

products will do so without clicking on your ads, studies show that more than 90% of offline sales come from people who don’t interact with ads during the campaign1.


That’s why brands can’t point to social sales


Yes

MaybeNo

45.6%

45.2%

9.4%

Are you able to quantify the revenue driven by social?


Engagement can’t help you optimize

Source: The CMO Survey, “Topline Results,” February 2016

Percent of CMOs whose companies use data analytics to drive social decision making

No

Yes

29%

71%


Brands that optimize for engagement end up failing


It’s time to move beyond engagement.


1. Use outcomes to prove the value of social.2. Use outcomes to improve the value of social.


50%

63%

75%

88%

100%

Brands don’t include social in their attribution models

Source: Forrester, “Pave the Path to Measurement Success,” February 2016.

Email marketing

Online display ads

Owned Social

Paid search ads

What specific marketing channels and media channels are included in your cross-channel attribution strategy?

93%90%

74%

56%


CMOs spend much less than planned on social

Source: The CMO Survey, “Social media spending triples but falls short of expectations,” August 2016. Note: Data shown is from February 2016.

Predicted

Social media spending as a percent of marketing budget

Actual

52%

34%

27%

0% 5% 10% 15% 20%

18%

11%


We’re totally unable to prove social’s value

Source: The CMO Survey, “Topline Results,” February 2016. Note: The question for “all marketing” asked: “Which best describes how your company shows the short-term impact of marketing spend on your business?” The question for “social: asked: “Which best describes how you show the impact of social media on your business?”

All marketing Social0%

10%

20%

30%

40%

37%

12%

“We have proven the impact quantitatively”


Our trust in social’s impact is actually falling

Source: The CMO Survey, “Topline Results,” February 2014 and February 2016.

2014 201610%

12%

14%

16%

18%

16%

12%

“We have proven the impact quantitatively”


We must use outcomes, not engagement.


1. Use outcomes to prove the value of social.2. Use outcomes to improve the value of social.


We have to make social work better

Source: Social Media Examiner “2016 Social Media Marketing Industry Report,” May 2016.

Disagree or uncertainAgree

46%54%

“My Facebook marketing is effective”


0% 15% 30% 45% 60%

Social traffic bounces too often

Source: Monetate, “EQ 2015: The Cross-Channel Conversation,” 2015.

Social

Channel performance: Bounce rate

Email

Search

52%

34%

27%


Social traffic converts too rarely

Source: Monetate, “EQ 2015: The Cross-Channel Conversation,” 2015.

Social

Channel performance: Conversion rate

Email

Search

52%

34%

27%

0.00% 0.75% 1.50% 2.25% 3.00%

1.34%

2.51%

2.46%


We must use outcomes, not engagement.


1. Use Simply Measured Social Attribution

2. Read “The Social Media Metrics Map” research

3. Look for more research on how to go beyond engagement

How you can measure outcomes today

Thank You

#LIFTSocial