Social Media PracticeOverview & Business Case

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Social Media Today:

A really quick view of today’s social media landscape and the questions it create for brands

Case for Social media:

A study of core social media elements and what those elements mean for brands

Company Overview:

A quick introduction to GROUP FMG

Agenda

Social Media Today

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Too much going on in social media today

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More ‘how-to’ achieve this in ‘5 steps’ whitepapers

Big numbers and colorful charts

Bigger questions

Countless tool clutters and features

?What

Why

?ROI

?Where are we now

Where from here

Too much going on in social media today

Competition

Industry?

Case for Social Media

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Key Social Media Components (for brands)

TechnologyPeople

Users connected with

other users / groups /

organizations

Human Elements

Process

• Publish

• Read

• Respond

Social Contents

Social Platform

(website, Interactive

mechanisms etc.,)

Determines Brand reputation in Social Media

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Human Elements: Relevancy to Brands

Brand

Industry Leaders

Competitors

Detractors

Customers

Prospects

Fans / Followers

Suppliers / Vendors

Employees

Definable relationships with brands

People discussing brands in social media are relevant to the brand, in one way or the other

Credibility of opinions

Their opinions gain credibility because:• They are relevant to the brand• They are relevant to their connections

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Brand contents in Social Media include

Owned Media

Brand & Product Websites

Mobile Applications

Digital Contents

Blogs

Official Forums

Part of

Paid Media

Internet Advertising

PPC – Search Marketing

Mobile Advertising

Sponsorships

Paid Advertising

Some of

Earned Media

Social Profiles & Feeds

Word of Mouth

User Forums

News, PR Announcements

Blogger Relationships

Most of

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Social Contents of Brands are produced by

3. User interactions with brands via official social media profiles

2. Brand-pushed information to their fans / followers

1. User discussions on brand within their connections Mention

Engage

Broadcast

Social Media Users

BrandsThe 1st and 3rd type of contents are Earned media - form word of mouth opinions in social media

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Reflects balanced customer perception & experiences Readily available content through Internet search

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Why Social contents of brands matter?

Initial Con-sideration

Evaluation Closure Across the stages

39%

26% 22%29%

28%

10%

5%

14%

21%

37%

31%

30%

12%

26%

42%

27% Store / agent / dealer interactions

Consumer-driven marketing• Word-of-mouth• Online research• Offline and / or print reviews

Past experience

Company-driven marketing• Traditional advertising• Direct marketing• Salesperson contact etc.

Social media: epicentre of consumer driven marketing

Crucial during the evaluation phase as consumers seek information, reviews, and recommendations

Source: McKinsey

Carries 30% weightage in customer decision journey to purchase a product – higher than

conventional, company-driven marketing and dealer interactions

Stages of Customer decision journey

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Social contents open up customer wallets

Consumer trust in ‘Earned’ media grows in importance - 92% of consumers around the world

trust word-of-mouth or recommendations from friends and family, above all other forms of advertising

Recommendations from people I know

Consumer opinions posted online

Branded websites

Ads on TV

Ads in magazines

Billboards and other outdoor advertising

Ads in newspapers

Ads on radio

92%

70%

58%

47%

47%

47%

46%

42%

8%

30%

42%

53%

53%

53%

54%

58%

Trust Completely / Somewhat

Don’t Trust Much / Not at All

Brand contents in social media are the essence of top 2 consumer trusted form of brand message

Trust in traditional paid advertising messages (in TV, Magazines, newspapers etc.) declines since 2007

Social contents are tied to the brand sales

12 Source: Nielsen’s Global Trust in Advertising Survey – April 2012 | 28,000 respondents across 56 countries

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And not just Sales…

Social media contents backed by strategies affect the entire value chain – corporates make use

of social media across departments and report improvements

Value chain step Case example Impact

Product development Procter & Gamble R & D costs: -6% p.a.

Marketing Old Spice Sales: +16%Campaign costs: - 80%

Sales Ricardo.ch, Sellaround.net Transactions: +18,000 p.m.

Service Example from telecommunications industry

Resolved customer queries: +30%

External communication McDonald’s Stock price: +5%

Human resources Allianz, Bertelsmann, Henkel, McKinsey & Company

Reach: +20%Cost: -27%Quality: +36%

Internal applications Mountain Equipment Co-op Efficiency gains: >90%

13 Source: McKinsey, Press release, Corporate websites

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ROI by Media Type

Media ROI

Internet $ 1.29

Cinema$ 0.22

Television$ 0.66

Radio$ 0.71

Billboards$ 0.81

Sampling$ 0.97

Magazine$ 0.99

Newspaper$ 1.07

Trade$ 1.27Other Digital

$ 1.48

Digital media and public relations activities show stronger performance compared to price

discounting, TV and other media

For every dollar spent, internet channels

yield $1.29 in return, almost twice that for

TV

With online time increasingly spent in social

networks and with higher ROI,

brands increasingly adopt various social media

tools and technologies

Source: McKinsey Quarterly14

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Rising Social media adoption rates (brands)

2008 2009 2010 2011

23%28%

40%

50%

29%32%

38%41%

27%31% 33%

38%

0%

12%

19%23%

Various social channels used by companies

Social Networks

Blogs

Video sharing

Micro-Blogs

Steady increase in social media adoption rates

since 2008

Corresponds with more organizations reporting

improvements carved from Social media

• 41% of the 4,261 companies interviewed by McKinsey operate blogs;

• Emphasizes the growing importance of descriptive and positive brand ‘content’ in the web

• 50% of the respondents in the same survey have presence in social networks;

• ‘Connections’ are most sought after elements (hence, quicker and wider reach of brand message)

Source: McKinsey Quarterly

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Across every major vertical

Hi tech, telecommunications

Business, legal, professional services

Public administration

Pharmaceuticals

Retailing

Transportation

Health care, social services

Manufacturing

Financial services

Energy

86%

77%

74%

74%

69%

69%

67%

64%

64%

62%

Companies having presence in at least one social website

60+ % of adoption rate across all major verticals

Energy sector was not considered to have business

case for social media a few years ago

62% of adoption rate for this sector in 2011

12% higher Internet Marketing spend in

Q1 2012 than one year prior

97% of the Marketers continue to invest

increased budget in social media or at

least the same as previous year

Source: Marketing Sherpa, McKinsey, Nielsen

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Finally, the omnipresent big numbers

2007 2008 2009 2010 20110

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

Facebook | CAGR: 74%

Twitter | CAGR: 231%

LinkedIn | CAGR: 55%WordPress | CAGR: 90%

User Growth of Social Sites

2007 2008 2009 2010 20110

500,000,000

1,000,000,000

1,500,000,000

Social Me-dia | CAGR:

19%

Total Inter-net |

CAGR: 11%

Total Unique User Visits

User visits to Social media sites grow at CAGR of 19%

Billion plus social media users and still growing strong

5 terabyte of new social media data created every day

1 in 5 minutes online is spent on social media today

Source: comScore, Steven White

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Social Media is NO MORE a fad

Social media is here to stay Group FMG has capabilities to:

Monitor a million of your brand conversations

Measure what’s being said about your brand

Evaluate your social presence

Learn your community inside out

Provide actionable insights across your business value chain

Engage with your customers

Build / Re-build your social presence

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Initial discovery process:

We understand every brand and its customers are unique and so are the requirements

Next Steps

Lets connect to understand your Business goals, objectives

and existing social footprint to uncover how social media

can contribute more to your business and customers

Initial deliverables include:

Social profiling of the brand

Competitive and Industrial benchmarks

Performance of official social media profiles

Customized social media strategy and execution plan

Other relevant resources of value to the brand

Let’s

do it

Company Overview

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Company Overview

Founded in 2011 by large private equity fund

Acquired FMG (founded in 1987), a digital asset

production company in London and Pod1, a

leading ecommerce creative agency in New York

Focused on innovative multi-channel commerce,

creative content and consulting services; guiding

brands through change caused by the solomoco

phenomenon1987 FMG is established

1999 FMG pioneers first all-digital magazine production process

2002 FMG wins PPA award for innovation

2004 FMG launches its Virtual In-House Production system

2004 FMG purchases catalogue design company, Vision

2005 FMG crowned PPA Prepress Company of The Year

2006 FMG launches the Ceros interactive marketing platform

2006 FMG crowned PPA Prepress Company of The Year

2007 FMG’s Asian production & development facility established

2008 FMG acquires video production company, Guerrilla

2009 FMG’s Ceros platform fuels first e-commerce catalogue

2011 FMG secures major PE funding to capitalize $100m, forms GROUP FMG

2011 GROUP FMG’s New York office is established

2012 GROUP FMG buys Pod1

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Global HQ

NEW YORK • LONDON • CHENNAI

Serving 75+ leading global clients across North America,

Europe and Asia-Pacific across industries such as retail,

publishing, technology, hospitality etc. to name a few

Globally balanced enterprise model

Creative services, proprietary technologies, domain

expertise, process excellence and actionable analytics

offered to provide differentiated solutions

Broad range of commercial structures offered to

clients – T&M, fixed price, outcome pricing, and

various captive production and outsourcing models

Company Overview

Serving several channels:

Industry channels

Publishing

Packaging & POS

Digital

Advertising pre-media

Broadcast

Cross platform channels

Mobile

Social

groupfmg.com

ConsultingContent

Commerce

Digital

Digital+(Mobile, Social)

Publishing

Advertising

Packaging& POS

Broadcast

Gaming

To provide a broad range of solutions that help marketers

Imagine: disruptive awareness Innovate: differentiated advocacy Ideate: desired acceptance

in the context of marketing solutions

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VisionProvide tangible value to the

business of our clients through

high impact marketing

solutions, by

- providing consulting services

- enabling [e/m] commerce and

- producing rich media, local and

social content

- for use across all channels, new

and traditional.

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Marquee Clientele

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Serving 75+ leading global brands

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Contact

London

90-92 Pentonville Road

London N1 9HS

United Kingdom

New York

119th Fifth Avenue

New York

NY 10003

USA

Chennai

2nd Floor, Hardy Tower

Ramanujan IT SEZ, TRIL Infopark Limited

Taramani

Chennai 600113

India

Pradeep G (pradeep.govindaraju@groupfmg.com)Group FMG (info@groupfmg.com)