Top Banner

Click here to load reader

Engagemen Tdb Report 2009

Jan 13, 2015

ReportDownload

Technology

Engagement study

  • 1. The worlds most valuable brands. Whos most engaged? ENGAGEMENTdb Ranking the Top 100 Global Brands Prepared by:www.ENGAGEMENTdb.com July 2009

2. TABLE OF CONTENTSINTRODUCTIONHistorically, economic hardship motivates companies to take a good, hard look at their marketing Introduction ......................................................................................... 1 budgets and try to compute each investments nancial value. This recession is no different, withone exception: social media has become perceived as an indispensible marketing tool one gettingincreased investment despite a historical inability to quantify its worth.Key Findings .........................................................................................2There is little left to debate about whether or not one should participate in social media virtually allcompanies, big and small, have acknowledged social medias presence, and rms who do not have aDepth of engagement can be measured. .............................................2 blog, Facebook page, or Twitter account now nd themselves in the scarce minority. Many, however,Brands fall into one of four engagement proles. .................................5 appear to be blindly hopping on the bandwagon people are creating company prole pages andFinancial performance correlates with engagement. ............................6 sending updates without knowing how much they should invest in these distribution channels or whatsuccess even looks like. This brings us back to Economics 101: how can a company effectively allocatelimited marketing resources if they cannot dene the investments value?Best practices........................................................................................8For the rst time ever, Wetpaint/Altimeter Group have gone beyond surface case studies to measurethe true nancial value of social media. We conducted our research not just on a small scale, but basedStarbucks ............................................................................................8 on the worlds 100 most valuable brands these are brands that are widely acknowledged for settingToyota ...............................................................................................12the standards in marketing as measured by BusinessWeek / Interbrand Best Global Brands 2008SAP ....................................................................................................14rankings. And now, we evaluate how well they are engaging their consumers using social media and,Dell ....................................................................................................16 even more importantly, how that engagement correlates with their most important nancial metrics:revenue and prot. A surprising conclusion: While much has been written questioning the value of social media, thislandmark study has found that the most valuable brands in the world are experiencing a direct Key Takeaways .................................................................................. 18correlation between top nancial performance and deep social media engagement. The relationship isapparent and signicant: socially engaged companies are in fact more nancially successful. So now we know it pays to be social, but it is important to note that by social, were talking about Methodology .....................................................................................20deep engagement, not merely having a presence. And what exactly do we mean by deep socialengagement? Resembling any in-person exchange, socializing requires more than just being there you have to interact with others, instigate discussions, and respond during conversations. Ourstudy implies value in social engagement on top of social presence it pays to actively and continually Appendices participate and invest in your networks.Appendix A: Engagement Scores for the Top 100 Global Brands .........23This report also contains case studies highlighting our interviews with four unique companiesAppendix B: Engagement Scores by Industry ......................................26 Starbucks, Toyota, SAP, and Dell all of which scored top quartile engagement rankings. By goingAppendix C: Engagement Proles .......................................................31beyond just the statistics, we introduce a playbook for how the best are succeeding in social media sothat you, too, can engage and succeed. Our hope is that the data and best practices in the ENGAGEMENTdb Report provide a new way to think Endnotes .............................................................................................32 about how to use these powerful tools and how companies should invest their marketing resources.The right level of social media engagement could be the key to propelling you into tomorrows rankingof the top 100 global brands.Ben ElowitzCharlene LiCEO, WetpaintPartner, Altimeter Group2 1 3. KEY FINDINGS There exist thousands of social media channels, each with a slightly different value proposition. It is therefore a daunting task to gure how to objectively evaluate various marketing efforts across all social mediums. The Wetpaint/Altimeter Group ENGAGEMENTdb Report introduces a single criterion: engagement. The goals of the study were to measure departments and executives were inFigure 1: all 100 brands Figure 1: Engagement Scores of Top 100 Global Brands how deeply engaged the top 100 these channels. Thus, we looked at not global brands are in a variety of social only at the breadth, but also the depth media channels and, more importantly,of engagement.140 High Engagement understand if higher engagement is correlated with nancial performance.Adding all channel sub-scores together120 We found that not only could wegives the brands overall engagement quantiably measure engagement,score. Understandably, the more 100we could also understand how morechannels a brand leverages, the higher engaged companies tap an engagementits overall engagement score will be.80 mindset to perform better. Below are All of the engagement scores for the 60 some of our key ndings. brands are listed in Appendix A. The topengagement score of 127 was earned Low Engagement 40by Starbucks, which has presence in 11 Depth of engagement can be channels.20 measured.Charting the companies engagement 0 We evaluated and scored each brands scores against the number of channels0One Channel 2 13 4 5 6 7 8 9Many Channels 101112 engagement in various channels they are in yields another insight the using criteria customized for that average depth of engagement as particular type of social media. We also represented by two regression lines (see examined how deeply involved different Figure 1).11246 23 65 4. KEY FINDINGSKEY FINDINGSTwo regression lines are used one for depth of engagement as the brand contrast, apparel, consumer products, their go-to-market strategy. Companiesbrands engaged in six or fewer channels extends itself into more and morefood & beverage, and nancial brandslike these could not imagine operatingand one for brands engaged in seven channels. Sometimes this is due to in general dont engage as much without a strong presence in socialor more channels.1 Brands that appear brands learning from their experiences which is to be expected given thatmedia.above the line are more engaged onin other channels, making it easier to companies in these industries are just Butteries. These brands are engagedaverage than other brands engagedin the same number of channels, andengage deeply in new channels likeTwitter. This effect is also a reection beginning to experiment with social media. in seven or more channels but have2those appearing below the lines are onof the brands commitment to social lower than average engagementaverage less engaged across all of theirmedia once they are invested inBut even within industries, there is scores. Butteries like Americanchannels. We also found that: multiple channels, they are more likelya wide spectrum of engagement. Express and Hyundai have initiatives into engage deeply in each of them.In the auto sector, some brands like many different channels, but tend to As the number of channels increase,Toyota are highly engaged in manyspread themselves too thin, investingoverall engagement increases at a Engagement differs by industry.channels, especially around the Prius. in a few channels while letting othersfaster rate. Theres a reason why weIts no surprise that engagement In contrast, luxury brands Mercedes- languish. Their ambition is to be adecided to use two regression lines totends to differ by industry (see FigureBenz and Porsche are in just two Maven and they may get there butshow the trend brands that were 2). Not only are some industries onchannels each. In other words, distinctthey still struggle with getting thein seven or more channels engaged average present in more channels, they target audiences can inuence thefull buy-in from their organizationsdeeply across all channels where they also engage with them more deeply. appropriate level of social mediato embrace the full multi-waywere present, as compared to brands For example, media and technologyengagement even within speciedconversation that deep engagementthat were present in fewer channels.companies tend to be in more channelsindustries. Appendix B providesentails.There is an exponential growth in the and engage deeply within them. Inadditional details on select industries. Selectives. These brands are engagedFigure 2: engagement by industry (with labels)in six or fewer channels and have 3Brands fall into one of fourhigher than average engagementFigure 2: Engagement Varies by Industryengagement proles. scores. Selectives like H&M and PhilipsDepending on the number of channels have a very strong presence in just90and how deeply they are engaged a few channels where they focus onHigh Engagement80in them, brands took on one of four engagin