social networks: stats, challenges and success stories - dannielle kawamoto
DESCRIPTION
Social Networks: Stats, Challenges and Success StoriesDannielle Kawamoto, Business Development Manager, eMarketerMarketers are increasingly convinced of the benefits of engaging with their customers on social media platforms. And users of all ages and races are rising to the occasion, interacting with brands in record numbers. But while measuring followers and Facebook “likes” provides marketers with hard numbers, no one yet knows how those numbers translate into a quantifiable return for brands. This keynote will answer the following questions:1. How are the demographics of social network users evolving?2. What are projected social network ad revenues through 2014?3. How do privacy concerns impact the way Facebook interacts with its members?4. How are marketers measuring the return on social media advertising?5. What are some best practices that marketers should keep in mind when implementing a social media campaign?TRANSCRIPT
Dannielle [email protected]
@DanniKawamoto
MAY 15, 2012
Social Networks: Stats, Challenges and Success Stories
Overview
Usage Trends
Facebook Dominates
Ad Revenues
The Measurement Challenge
Case Studies
Key Takeaways
Social Media Usage
Half of the US population will use social networks in 2012
Two-thirds of US internet users will use social networks in 2013
The US is a mature market with slowing user growth
Usage skews female and 18-59.
Asians, blacks and Hispanics are heavy users
Even in the older age ranges, at least 4 out of 5 US internet users use social media once a month
A majority of moms use the internet and social networks, particularly Facebook
Facebook Dominates
Facebook is on top, but visually-focused sites like Tumblr and Pinterest are attracting attention from marketers
90% of social network users are on Facebook
Mobile usability still needs to catch up
Social Network Ad Revenues
Worldwide social network ad revenues will approach $8 billion in 2012
The US will account for almost 50% of worldwide social network ad revenues
Facebook accounts for a majority of that money
Facebook is the dominant force in social network advertising
Facebook trends to watch in 2012:
Privacy. The FTC agreement doesn’t mean Facebook’s privacy challenges are over. There will be more attention than ever on how Facebook uses its members’ information.
Ad revenue. To keep ad revenues growing, the company will spend more time evangelizing the benefits of buying ads to support a Facebook marketing presence.
Mobile. Facebook needs to make its mobile platform even better to attract international audiences. And mobile ads are long overdue.
Twitter. Will see US ad revenues nearly double from 2012 to 2014, rising from $234 million to a projected $448 million.
LinkedIn. US ad revenues will grow 68% over the next three years, increasing from $145 million to $243 million.
Other social networks. Ad spending on other networks, which include the fast-growing Google+, will double from $354 million in 2012 to $700 million in 2014.
Social games. Will see 36% growth in ad revenues, increasing from $248 million in 2012 to $336 million in 2014, with FarmVille creator Zynga the leader in this space.
Social apps. Revenues from paid ads appearing in social apps and widgets will increase 69% from 2012 to 2014, rising from $68 million to $115 million.
But growth among other networks and venues should not be underestimated
Social Media Measurement
The state of social media measurement
Companies say measurement is not very effective. Even though there are many ways to measure, concrete success metrics remain elusive.
Fan count is still a top metric. 60% of marketers use friends, followers or “likes” as a success measure (Chief Marketer, 2011).
The ROI question is unanswered. Return on investment is a top challenge, making budgeting difficult.
Marketers are drowning in metrics. This has led to paralysis by data overload.
Marketers are more apt to count fans and ‘likes’ than sales
Marketers do not have consistent ways of measuring social media success
Few tools are fully integrated and many use none
Getting to the metrics that matter
Social media measurement has evolved, but still doesn’t satisfy most marketers. The effectiveness question remains top of mind.
Measurement and budget go hand in hand. Marketers need adequate metrics to be able to determine budget allocations.
Marketers are still too reliant on counting what is easy to measure. Counting fans and followers is fine as a basic benchmark metric, but marketers must strive to understand what those hand-raisers do for them.
How to get to the metrics that matter
Measure (something!)
Know your business goals
Don’t wait for the silver bullet
success metric
Look at more than branding
results
Be a leader in the next phase of social media measurement.
Three goals for increasing measurement sophistication in 2012
It’s not the fans, it’s what you do with them. Understand who your brand followers are and how influential they can be on your behalf.
Go beyond brand metrics. The more marketers can work toward understanding how social media impacts actual business, the better.
Integrate social analytics and marketing analytics. Understand how social media can make other media spending more efficient, and how online buzz relates to overall marketing performance.
Case Studies
Case study: Adobe Photoshop engages its loyal fans to share the love
July 2009: 240,000 fans of Facebook page, without any active involvement.
Product management team took over the page and asked fans what they wanted.
The team posts questions, tips and tutorials, and video demonstrations five times a week.
“I think about it as if I’m designing the product. I think about the user. Is this piece of content we’re about to share useful to them?”—Maria Yap, Adobe’s director of product management
What Photoshop achieved:
February 2010: 500,000 “likes”
October 2010: 1 million “likes”
December 2010: 1.5 million “likes”
July 2011: 2.6 million “likes”
“You’re not making the community—you’re part of it.”—Maria Yap
Case study: Clarisonic builds support for a cause via Facebook
Clarisonic, a skincare company, partnered with nonprofit Look Good…Feel Better in May 2010.
“Like” campaign: Donated $1 for every new “like” during Breast Cancer Awareness Month, October 2010.
Promotion: social networks, email blasts, Facebook ads, and company website and blog.
The campaign led to increases in several key Facebook metrics
Facebook campaign netted $30K in donations
Clarisonic’s Facebook Page now has more than 119,000 fans
Will leverage relationships with celebs like “Black Swan” star Mila Kunis for Look Good…Feel Better
What Clarisonic achieved:
Case Study: Discovery manages a network of pages
Nearly 75 Facebook pages for its networks and TV shows.
Managed by a social media team of eight. The social media team works directly with the
network and show teams and meets regularly to discuss best practices.
Posts include video clips, chats with show talent, news articles and cross-page promotions.
What Discovery achieved:
As of July 2011, Discovery had 39.7 million “likes” across all its pages, adding 500,000 a week.
“MythBusters” is Discovery’s largest page, with 4.4 million “likes,” up from 808,000 in July 2010.
Facebook chat with Buddy Valastro from “Cake Boss” had over 5,000 comments in 60 minutes.
“Each network retains its own voice, priorities and personality, but you get all the benefits of a central team.”—Gayle Weiswasser, Discovery’s VP of social media communications
Key Takeaways
Best practices for marketers
Let fans create the community. Rather than force interactions among fans, let the community grow and bond organically.
Know what topics and issues are important to your customers. Learn from fans’ interactions and mesh offline behaviors with online promotions.
Short-term promos need long-range planning. Discounts can help buy “likes,” but that is only the start of the brand relationship.
Link and integrate Facebook pages to maximize interactions. A network of branded pages can be stronger than the sum of its parts.