Leading Research

Christopher Vollmer Karen Premo

Campaigns to Capabilities Social Media & Marketing 2011

Selected Insights October 2011

Facebook, Twitter, and YouTube are the cornerstones of most social media strategies
Priority Social Media Platforms (% of respondents listing this platform among their top 3)
Key Observations Respondents reported that they use multiple social media platforms; sample average was 4.6
77%

94%

Facebook and Twitter are by far the most broadly used and highest-priority platforms Location-based social media is still emergent
42% 25% 25%

MySpace is a priority platform for only a limited number of respondents; most do not use it at all
13%

8% 2%

Facebook

Twitter

YouTube

Blogs

Company-owned social platforms

LinkedIn

Locationbased (e.g., Foursquare)

MySpace

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Today, social media lives primarily within marketing, digital, and PR

Departments Responsible for Leading Social Media Today
(% of respondents)
81%

Key Observations Marketing departments are primarily responsible for social media today
48%

62%

However, social media is often sprea d across multiple departments More leading-edge companies use social media for a broader variety of applications
26% 16% 10% 8% 8%

Marketing

Digital

PR

Customer service

Research

Sales/commerce

Product development

IT

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

A third of companies have a senior executive who is responsible for social media company-wide
Does Your Company Have a Senior Executive Who Is Responsible for Social Media Company-Wide?
(% of respondents)

Key Observations Yes 35% Overall, a third of companies reported that they have a company-wide head of social media The portion rises to 41% among companies that consider themselves best in class or strong

No

65%

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Respondents identified a range of critical success enablers

Social Media Success Factors
(% of respondents who strongly agree or agree) Key Observations Softer factors appear to trump harder factors (budgets, head of social, etc.) in driving success

94%

93%

90%

90%

88%

86%

83%

80%

79%

62% 53% 50%

Ability to adapt & react quickly

Having a clear champion, owner

Clearly communicated support from executive management

Education on what can be achieved via social media

A culture that Supporting encourages initiatives with experimentation an integrated marketing plan

Training of staff who are not accustomed to using social

Strong PR capability

Unique content Ability to that is exclusive coordinate & to the audience manage on each multiple service providers

Dedicated budget not shared with other digital initiatives

Head of social media company-wide

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Social media is a CEO-level agenda item for many companies

Is Social Media on Your CEOs Agenda?
(% of respondents)

Dont know 19% Key Observations 38% Yes Though social is not on the agenda of many CEOs, nearly 40% of respondents reported that is it a CEO-level agenda item This suggests that social media has moved beyond being a fad for many of these companies, and it is viewed more as a highpotential business tool
43%

No

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Social media has a range of uses

How Do You Use Your Top Social Media Platforms? (% of respondents)
Key Observations Advertising and promotions, PR, and customer service are the primary uses today
96% 88% 75% 56% 48% 40% 24% 13%

Emerging uses include market research, sales, and product development In a minority of cases, social media is also used for internal communications, recruiting, or content generation

Advertising & promotions

PR

Customer service

Market research

Sales/commerce

Product development

Internal communications

Other (recruiting, content generation, community)

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Companies view social media as offering the most benefit in the upper stages of the purchase funnel
Key Observations

Great or Some Benefit from Social Media

(% of respondents)

Companies are deriving significant marketing value from social media Though the generation of sales and leads is rated lower than other benefits, almost half of respondents see it as a benefit of social media

90%

89%

88% 81% 78% 76% 71% 71%

71%

66%

46%

Brand building Interactivity

Buzz building

Consumer insights

Enhanced Broad reach marketing effectiveness

Creativity & innovation

Speed of execution

Lower cost

Traffic to our sites

Generation of sales/leads

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Marketers measure social media across all stages of the purchase funnel
Metrics Used for Social Media (% of respondents)
Reach (uniques, PVs, video views, time spent)

88%

Key Observations
Buzz (trending topics, blog mentions, influentials)

66%

Engagement (forwards, shares, re-tweets, posts, likes)

93%

Companies are still trying to crack the code on the measurement of social media Most respondents report using multiple approaches to measuring social media as metrics mature Most companies are not yet able to link transactions to social media

Participation (fans, followers, check-ins, sign-ups)

92%

Transaction (sales, leads generated)

38%

Advocacy (comments, feedback, participation in polls)

81%

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Respondents agree that social media will become a bigger part of their marketing mix
Social Media in the Marketing Mix Opinions (% of respondents who strongly agree or agree)
Key Observations Though social media is an increasingly important part of the marketing mix, it is not replacing other vehicles like search or owned sites
65% 54% 49% 40% 32% 27% 19%

90%

Respondents appear bullish on integration and dont believe that it is impossible to measure

Social metrics Our organization Investing in Social media Social media is should be tailored will integrate social relationships with should be the driving our to the needs of the media into all consumers through fastest-growing approach to mobile campaign advertising & social media is segment of our marketing marketing more important to marketing budget our brands than mass reach
Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

Our brand Social media is a presence on traffic source that platforms such as is more important Facebook & Twitter than search is becoming more important than our own site

Evaluating campaigns that integrate social & traditional media feels impossible today

Companies have a range of capabilities already in place or are look ing to build them Key Observations
Organizational Elements
Do Not Have, Not Looking to Build Building or Will Build Soon Have Today

(% of respondents)

Only a handful of companies have all of these organizational elements in place today However, almost half report that they will have all of them in place in one or two years

7%

3%

9%

4% 16%

4% 16% 16%

9% 25% 41%

29%

34%

32%

37% 28%

47% 35% 46% 56% 40% 44%

65%

63%

59%

59%

56%

50%

49%

38%

35%

35% 15%

Social media Integration of Monitoring policies social media & rapid into marketing response plans overall capability in social media

Overall Social media strategy for agency social media partnerships

KPIs & Social mediaPlatforms/forums Consumer Social Revenuedashboards creative/content to share insights media-driven generating for social capability results/best generation via customer platforms media practices social media service built from channels social media

Note: Numbers may not add up due to rounding. Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Almost all companies report that they are growing their spend on social media
Future Investments in Social Media
(% of respondents) Will remain unchanged
5%

Substantially more resources 39% Key Observations Companies clearly intend to spend more on social media in the future to build bigger social programs and platforms No respondents reported that they would spend less on social media in the future

57% Somewhat more resources

Note: Numbers may not add up due to rounding. Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Hiring full-time employees is the number one investment being made in social media
Investments in Social Type
(% of respondents)
57% 48% 39% 38%

Key Observations As companies are building up their social media, they are focused on hiring inhouse staff Partners also will play a key role in supporting companies as they use social media more widely

25% 16%

14%

Hiring full-time employees

Services provided by partners

Creating more content

Media buys

Consulting/other professional services

IT systems/ partnerships

Hiring contractors, freelancers, or parttime employees

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Three primary roles make up a social media team

Key Observations Today, community management is the most common role

This Role Is on Our Social Media Team Today

63% 49% 36% 30%

(% of those with dedicated resources)

Looking forward, hiring creative talent is the top priority IT talent is not a priority for social media hiring

10%
Community managers Creative talent (editors, content creation) Analysts/strategy resources Senior management (not including head of social media if applicable) Product/software developers

Type of Full-Time Roles We Are Planning to Invest In in the Near Future

72% 59% 43% 28% 24%

(% of respondents investing in FTEs)

Community managers

Creative talent (editors, content creation)

Analysts/strategy resources

Senior management (not including head of social media if applicable)

Product/software developers

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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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 Spend
Today
7% 5% 28%

3 Years from Today 13% Key Observations Social media will begin to take up a meaningful share of digital budgets for many companies 32% 67%
27%

22%

Overall digital budgets are also growing, suggesting a substantial uptick in spend in the coming years

<5%

5%-10%

10%-20%

>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 results

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Within these budgets, social media is precipitating a shift inside digital media more than away from other types of ad spend
Which Other Media Budgets Does Social Draw From?
(% of respondents)
79%

Key Observations Social media is primarily drawing on digital media budgets, likely shifting funds away from digital advertising vehicles such as display

21% 15% 6% 6% 5%

Digital

TV

Magazines

Outdoor

Newspapers

Radio

Source: Booz & Company/Buddy Media Campaigns to Capabilities Social Media & Marketing 2011 Survey results

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Contact Information
New York Christopher Vollmer Partner +1-212-551-6794 christopher.vollmer@booz.com Karen Premo Principal +1-212-551-6683 karen.premo@booz.com

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