A social business from management consultants Booz and Co.
<ul><li> 1. Leading Research Christopher Vollmer Karen PremoCampaigns to CapabilitiesSocial Media & Marketing 2011Selected InsightsOctober 2011</li></ul>
<p> 2. Facebook, Twitter, and YouTube are the cornerstones of mostsocial media strategies Priority Social Media Platforms(% of respondents listing this platform among their top 3)Key ObservationsRespondents reported that they use94% multiple social media platforms; sampleaverage was 4.6 77%Facebook and Twitter are by far the mostbroadly used and highest-priorityplatformsLocation-based social media is stillemergent 42%MySpace is a priority platform for only alimited number of respondents; most donot use it at all25%25% 13% 8% 2% Facebook Twitter YouTubeBlogs Company-ownedLinkedIn Location-MySpace social platforms based (e.g.,Foursquare)Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results1 3. Today, social media lives primarily within marketing, digital,and PRDepartments Responsible for Leading Social Media Today (% of respondents) 81%Key Observations Marketing departments are primarily 62% responsible for social media today However, social media is often sprea d across multiple departments 48% More leading-edge companies use social media for a broader variety of applications26%16% 10% 8%8%Marketing DigitalPRCustomerResearch Sales/commerce ProductITservicedevelopmentSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 2 4. A third of companies have a senior executive who is responsiblefor social media company-wide Does Your Company Have a Senior Executive Who IsResponsible for Social Media Company-Wide?(% of respondents)Key Observations Yes35% Overall, a third of companiesreported that they have acompany-wide head of socialmediaThe portion rises to 41%among companies thatconsider themselves best in 65% No class or strongSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results3 5. Respondents identified a range of critical success enablers Social Media Success Factors(% of respondents who strongly agree or agree)Key ObservationsSofter factors appear to94% 93% trump harder factors 90% 90% 88%(budgets, head of social,86%83% etc.) in driving success80%79% 62%53% 50%Ability to adapt Having a clearClearlyEducation onA culture that Supporting Training of staff Strong PR Unique contentAbility to DedicatedHead of social& react quickly champion, communicatedwhat can beencouragesinitiatives with who are not capability that is exclusive coordinate & budget not mediaownersupport from achieved via experimentation an integratedaccustomed toto the audiencemanageshared with company-wideexecutive social media marketing planusing socialon each multiple service other digital managementproviders initiativesSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 4 6. Social media is a CEO-level agenda item for many companiesIs Social Media on Your CEOs Agenda? (% of respondents)Dont know 19%Key ObservationsYes Though social is not on the agenda 38%of many CEOs, nearly 40% ofrespondents reported that is it aCEO-level agenda itemThis suggests that social mediahas moved beyond being a fadfor many of these companies, andit is viewed more as a high-potential business tool 43% NoSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 5 7. Social media has a range of usesHow Do You Use Your Top Social Media Platforms?(% of respondents)Key Observations Advertising and promotions, PR, and customer service are the primary uses today Emerging uses include market96%research, sales, and product 88% development75%In a minority of cases, social media is also used for internal communications, recruiting, or content generation 56% 48% 40%24%13%Advertising & PRCustomer serviceMarket researchSales/commerce Product Internal Other (recruiting, promotions developmentcommunications content generation, community)Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results6 8. Companies view social media as offering the most benefit in theupper stages of the purchase funnel Key Observations Great or Some Benefit from Social MediaCompanies are deriving significant (% of respondents)marketing value from social mediaThough the generation of sales andleads is rated lower than otherbenefits, almost half of respondents 90%89% 88% see it as a benefit of social media 81%78%76% 71% 71% 71%66% 46% Brand building Interactivity Buzz building Consumer Enhanced Broad reachCreativity & Speed of Lower cost Traffic to Generation of insights marketinginnovation execution our sites sales/leadseffectivenessSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 7 9. Marketers measure social media across all stages of the purchasefunnel Metrics Used for Social Media (% of respondents) Reach (uniques, PVs, video views, time spent) 88% Key Observations Buzz (trending topics, blog mentions, influentials) 66%Companies are still trying tocrack the code on themeasurement of social Engagement (forwards, shares, re-tweets, posts, likes) 93% mediaMost respondents reportusing multiple approaches toParticipation (fans, followers, check-ins, sign-ups)92% measuring social media asmetrics matureMost companies are not yet Transaction (sales, leads generated) 38% able to link transactions tosocial mediaAdvocacy (comments, feedback, participation in polls) 81%Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results8 10. Respondents agree that social media will become a bigger part oftheir marketing mix Social Media in the Marketing Mix Opinions(% of respondents who strongly agree or agree) Key ObservationsThough social media is anincreasingly important part of the90% marketing mix, it is not replacingother vehicles like search orowned sites 65%Respondents appear bullish on54% integration and dont believe that it 49%is impossible to measure40%32%27% 19% Social metricsOur organization Investing in Social media Social media isOur brand Social media is a Evaluating should be tailored will integrate social relationships with should be thedriving our presence ontraffic source that campaigns thatto the needs of the media into allconsumers through fastest-growing approach to mobile platforms such as is more important integrate social & campaign advertising & social media is segment of ourmarketing Facebook & Twitterthan search traditional mediamarketingmore important to marketing budgetis becoming more feels impossibleour brands than important than our todaymass reachown siteSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results9 11. Companies have a range of capabilities already in place or are look ing to build them Key ObservationsOnly a handful of companies have all ofOrganizational Elements these organizational elements in place Do Not Have, Not Looking to Build (% of respondents) today Building or Will Build SoonHowever, almost half report that they will Have Today have all of them in place in one or twoyears 7%3%9% 4%4%9%16% 16% 16% 25%29% 34% 37% 41% 32% 47%28% 35%56%46% 40%44%65% 63%59%59% 56% 50% 49%38% 35%35%15%Social media Integration of Monitoring OverallSocial media KPIs &Social mediaPlatforms/forums Consumer SocialRevenue-policiessocial media& rapidstrategy for agency dashboards creative/content to share insights media-driven generating into marketing responsesocial media partnerships for social capability results/best generation via customer platformsplans overall capability in mediapracticessocial media service built fromsocial mediachannelssocial mediaNote: Numbers may not add up due to rounding.Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results10 12. Almost all companies report that they are growing their spend onsocial media Future Investments in Social Media(% of respondents)Will remain unchanged5% Substantially more resources 39% Key Observations Companies clearly intend to spend more on social media in57%the future to build bigger social programs and platformsSomewhat more resourcesNo respondents reported that they would spend less on social media in the futureNote: Numbers may not add up due to rounding.Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 11 13. Hiring full-time employees is the number one investment beingmade in social media Investments in Social TypeKey Observations (% of respondents)As companies are building57% up their social media, theyare focused on hiring in-house staff48%Partners also will play a keyrole in supporting 39%38% companies as they usesocial media more widely25%16%14%Hiring full-timeServices providedCreatingMedia buys Consulting/other IT systems/ Hiring contractors, employeesby partners more content professionalpartnerships freelancers, or part- services time employeesSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results12 14. Three primary roles make up a social media team Key Observations Today, community management is the most common role Looking forward, hiring creative This Role Is on Our Social Media Team Today talent is the top priority (% of those with dedicated resources)63%IT talent is not a priority for49%social media hiring 36% 30% 10% Community managersCreative talent (editors, Analysts/strategy resourcesSenior management (notProduct/software developerscontent creation) including head of socialmedia if applicable) Type of Full-Time Roles We Are Planning to Invest In in the Near Future (% of respondents investing in FTEs) 72%59%43% 28% 24% Community managersCreative talent (editors, Analysts/strategy resourcesSenior management (notProduct/software developerscontent creation) including head of socialmedia if applicable)Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results 13 15. Marketers report that social media spend will increase significantly as a percentage of digital spend in the next three years Social Media Spend as a Percentage of Digital Marketing SpendToday 3 Years from Today 7% 5%13%Key Observations 28%Social media will begin totake up a meaningful share22% of digital budgets for manycompanies32% Overall digital budgets are67% also growing, suggesting asubstantial uptick in spend 27%in the coming years 20%Note: Includes only those responses where an answer was provided for social media as a percentage of digital both for today and for three years from today.Numbers may not add up due to rounding.Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results14 16. Within these budgets, social media is precipitating a shift insidedigital media more than away from other types of ad spendWhich Other Media Budgets Does Social Draw From? (% of respondents) Key Observations79% Social media is primarily drawing on digital media budgets, likely shifting funds away from digital advertising vehicles such as display21%15% 6%6%5% Digital TV Magazines Outdoor NewspapersRadioSource: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results15 17. Contact InformationNew YorkChristopher VollmerPartneremail@example.comKaren PremoPrincipalfirstname.lastname@example.org 16 18. The most recent list of WorldwideEuropeNorth Americaour offices and affiliates, OfficesAmsterdam Atlantawith addresses and BerlinBostonAsia CopenhagenChicagotelephone numbers, canBeijingDublinClevelandbe found on our website,DelhiDsseldorfDallasbooz.comHong KongFrankfurt DCMumbai HelsinkiDetroitSeoulIstanbulFlorham ParkShanghai LondonHoustonTaipei MadridLos AngelesTokyoMilan Mexico City MoscowNew York CityAustralia, MunichParsippanyNew Zealand &Paris San FranciscoSoutheast Asia RomeAuckland Stockholm South AmericaBangkokStuttgart Buenos AiresBrisbane ViennaRio de Janeiro Booz & Company is a leading global management consultingCanberra WarsawSantiago firm, helping the worlds top businesses, governments, andJakartaZurichSo Pauloorganizations. Our founder, Edwin Booz, defined theKuala Lumpurprofession when he established the first managementMelbourneMiddle EastSydney Abu Dhabiconsulting firm in 1914. Beirut CairoToday, with more than 3,300 people in 60 offices around the Doha world, we bring foresight and knowledge, deep functional Dubai Riyadh expertise, and a practical approach to building capabilitiesand delivering real impact. We work closely with our clientsto create and deliver essential advantage. The independentWhite Space report ranked Booz & Company #1 amongconsulting firms for the best thought leadership in 2010.For our management magazine strategy+business,visit strategy-business.com.Visit booz.com to learn more about Booz & Company.2011 Booz & Company Inc. </p>