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Presenting the business case for Social media adoption based on 2012 research inputs. This presentation will be updated as and when new research inputs are available from the sources cited within the slide pack. Last edited on: 15th October 2012.
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Social Media PracticeOverview & Business Case
2 groupfmg.com
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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groupfmg.com
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
groupfmg.com
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
groupfmg.com
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
groupfmg.com
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
groupfmg.com22
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.
groupfmg.com
Marquee Clientele
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Serving 75+ leading global brands
groupfmg.com25
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)
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