The State of social Media & SOCIAL MEDIA MARKETING IN 2012 ESTEBAN CONTRERAS .

The State of social Media & SOCIAL MEDIA MARKETING IN 2012

ESTEBAN CONTRERASwww.estebancontreras.com

1 in 5 online minutes spent on SN, Up from 6% in 2007

Source: comScore Media Matrix, Worldwide, March 2007 – October 2011, “It’s a Social World,” Dec 21 2011

Social Networks are the Most Popular Activity Online

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The Social Media Universe is Expanding

15MM+ users

135MM+ users

51MM+ users

15MM+ users

62MM+ users

232MM+ monthly active users

115MM+ subscribers

20MM+ blogs

6MM+ users

800 MM+ monthly active users

230MM+ users 2MM+ users

500K+ users

800MM+ monthly users visit site

More people on more social networks than ever before

Source: Official and Estimated statistics. Facebook, YouTube, Zynga, Twitter, LinkedIn, Groupon, Flickr, Tumblr, Instagram, Foursquare, Pinterest, scvngr, Path, Google+ SlashGear, TechCrunch / Comscore, FastCompany, Oink: TechCrunch, GetGlue, Foodspotting: Soraya Darabi’s LinkedIn

100K+ users

2MM+ users

2MM+ users

1.5MM+ users

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Facebook, LinkedIn, Twitter and Tumblr at All-Time Highs

Former social king MySpace seems to be fading away

Source:Nielsen, State of the Media: The Social Media Report Q3 2011, Home and Work (May 2011)Source: comScore Media Metrix, U.S., Jun 2007 – May 2011 EC

Google Still Gets The Most Unique Visitors in the U.S.

Facebook and YouTube are in the Top 5

Source: Nielsen “Tops of 2011: Digital” EC

Americans Spend More Time on Facebook Than Any Other Website

Facebook has been #1 in time spent since 2010

Source: Citi Investment, Research and Analysis (September 2011)Source: Comscore, February 2011, Nielsen, State of the Media: The Social Media Report Q3 2011 EC

For the 3rd Year in a Row

Facebook was the #1 Search Term in the U.S. in 2011

Source: Experian Hitwise, Facebook was the top search term for 2011, based on searches on Bing, Yahoo and Google EC

Facebook’s Mission: Make the World More Open and Connected

In other words… Engagement

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Facebook is Shifting Towards “Frictionless” Passive Sharing

Seamless sharing could mean even more engagement

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All populations are becoming increasingly social

Asian, Black and Hispanic Populations Lead in Usage in the U.S.

Source: eMarketer, Nov 2011. EC

No Surprise: 18-to-34 Year Olds Are Very “Social”

Percent of online adults using social media monthly, by age

Source: Experian, The 2011 Social Media Consumer Trend and Benchmark Report

But 55+ users are quickly catching up

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Social Networks Are a Popular Venue For Casual Games

61.9 million Americans play social games every month

Source: PopCap Games, “2011 PopCap Games Social Gaming Research” Information Solutions GroupSource: Kabam, “Social Gamer Research Study” conducted by ISG, Sep 22 2011Source: Quick Stat: US Social Gaming Revenues to Pass $1 Billion This Year, June 28 2011; eMarketer July 2011 EC

Source: WSJ Market Data Group

From LinkedIn to Zynga, Social IPOs are On The Rise

Facebook is expected to go public in 2012

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Facebook and Google Continue to be Exit Strategy for Social Startups

2005 20102007 2008 2009 201120062004

Source:Wikipedia EC

That’s 1.2 billion people

Social Networks Now Reach 82% of the World’s Internet Population

Source: comScore Media Matrix, Worldwide, March 2007 – October 2011, “It’s a Social World,” Dec 21 2011 EC

Total time spent on all regions grew by 35%+ in 2011

Social Networking is Growing in Every Singly Country

Source: comScore Media Matrix, Worldwide, March 2007 – October 2011, “It’s a Social World,” Dec 21 2011 EC

Chinese Social Sites are Fighting for China’s Social Graph

Sina employees refer to Weibo as “FaceTwitter”

Source: Tencent Q3 2011 Financial Report, Sina Weibo Q3 2011 Financial Report EC

Some say there’s a bubble for social startups

Forrester CEO: Social Media Saturation, “Bubble for Social Startups”

Source: LeWeb, CNET Dec 8 2011 EC

Social Networks in General May be Saturated

Source: eMarketer Feb 2011, U.S. Social Networking Usage: 2011 Demographic and Behavioral Trends

But social media is now an integral part of our lives

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Social networks allow us to stay connected to friends

“Staying in Touch” is a Major Factor in Social Networking

Source: Pew Research Center’s Internet & American Life Project, April 26 – May 22, 2011 Spring Tracking Survey, Based on adults who use SNS EC

The Idea of “Friends” is Changing

Percent of all online adults who use social media to communicate with…

Our “Social Graphs” are expanding

Source: Experian, The 2011 Social Media Consumer Trend and Benchmark Report EC

The “Interest Graph” is Shifting Attention Away from Classic “Friends”

There is a battle to map peoples’ shared passions

Source: AssetMap Blog, “Why the interest graph will reshape social networks” EC

Google is Creating a Social Layer with Google+

Google+ is an attempt to map the “Interest Graph”

Source: Google News EC

Google+ is Growing Faster Than Other Social Networks

67 million people have visited Google+

Source: ComscoreSource: Leon Haland, Google+ calculations by Paul Allen, comScore, MySpace, Twitter, Facebook, LinkedIn

Time to reach 50 million users (estimate)

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Visits to Pinterest grew 40-fold in only 6 months

Pinterest Also Focuses on Shared Passions

Source: Hitwise, Pinteresting Trend in Social Media EC

People are Influenced by Friends / Family / Contacts

People don’t trust brands as much

Source: Vision Critical, “Online Social Networks: Trust Not Included” Sep 15, 2010 EC

Active Social Media Users are Influential Online

They also tend to be influential offline

Source: Nielsen, State of the Media: The Social Media Report Q3 2011 EC

Startups are rushing to measure and rank influencers

Influence is Shifting from Media to Individuals

Source: Eloqua & JESS3, The Message is the Messenger, March 8 2011Source: Forrester 2010Source: AdWeek, A Million Little Klouts, Dec 14 2001 EC

Messages Have Potential to Reach Many People Within a Network

Influential people can spread messages faster than ever

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Today’s Mega Celebrities Engage Directly with Fans

Some became influential by spreading content online

Source: “Dissecting Justin Bieber” infographic by Crisp Social, Mashable Nov 6 EC

Internet Privacy is an Increasingly Hot Topic

Internet users contradict themselves about privacy

Source: Crowd Science, “JustAsk! Advertising Attitudes & Behaviors Study,” Sep 29, 2011; eMarketer 2011 EC

Internet Users Appreciate Transparency

They just want to know what data is being collected

Source: Aimia, “Born This Way: The US Millenial Loyalty Survey” conducted by Harris Interactive, Oct 5, 2011 EC

Ultimately, Internet Users Want to Be Responsible for Their Own Privacy

Not many want government to be responsible

Source: Harris Interactive, “Behavioral Advertising and Privacy: What Consumers Think They Know & What Advertisers Need to Do About it”, by TRUSTe July 25, 2011 EC

Social Media Conversations Reveal What People Truly Care About

If it’s important, it’s being talked about online

2011

Source: Facebook, Twitter EC

Technology Adoption is Accelerating

Along with consumer’s expectations

Source: eMarketer 2011 EC

• 40% of tablet and Smartphone owners use them daily while watching TV

• People do a variety of tasks when watching TV• 60% checking email• 42% visit social networks• 44% check sports scores

• Americans ages 8 to 18 consumer 8.5 hours of media per day due to multitasking.

• 25-33% of Americans use more than one input “most of the time” while watching TV, listening to music, or reading.

Americans are Becoming Seamlessly Connected Multi-taskers

We live in an age of continuous partial attention

Source: Nielsen October 2011, Pew Internet and American Life Project, Kaiser Family Foundation 2005 Survey, Harvard Business Review 2007Source: Room 214 and Crimson Hexagon, “Digital Shifts: How New Media is Changing TV,” March 2 2011 EC

Mobile Social Media Use is On the Rise

On-the-go social media is becoming essential

Source: Nielsen, State of the Media: The Social Media Report Q3 2011 EC

Mobile Social Media Use Will Continue to Rise

The 3rd screen is becoming the 1st screen

Source: eMarketer, 2010, Mobile phone users who have a profile and access social networks from mobile phones EC

Gartner’s Hype Cycle Evaluates the Maturity of 1,900 Technologies

Group BuyingActivity Streams

Social technologies are maturing

Source: Gartner, “Hype Cycle for Emerging Technologies” 2011

Virtual Worlds

Location-Aware Apps

Social Analytics

Gamification

Internet of Things

Social TV

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The Traditional Shopping Process is…

Source: The OPEN Brand: Digital Trends for 2011 by Resource Interactive

Linear, predictable, analog, brand-controlled

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The New Purchase Journey is…

Source : The OPEN Brand: Digital Trends for 2011 by Resource Interactive

Non-Linear, multi-channel, digital, consumer-controlled

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We Have Entered The Age of the Customer

“In (the age of the customer), companies that thrive, like Best Buy, IBM, and Amazon, are those that tilt their budgets toward customer knowledge and relationships.”

- Josh Bernoff, Forrester Research

Empowered buyers have on-demand expectations

Source: Forrester, Josh Bernoff, Report: Competitive Strategy In The Age Of The Customer, June 2011 EC

Consumers Have More Power Than Ever Before

Old strategies must be revisited

Source: Forrester, Josh Bernoff, Report: Competitive Strategy In The Age Of The Customer, June 2011 EC

Financial Risk Mitigation & New Markets

Social Media Impacts Businesses

Source: Forrester research, The ROI of Social Media Marketing, Augie Ray

Companies are trying to understand its value

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Companies Recognize Various Benefits from Social Media

Brand building is #1 perceived benefit

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

CEOs are Joining Social Media

Some actually engage directly with consumers

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Social Media is Becoming a CEO-level agenda

Social media is no longer a “fad”


Today’s CMOs Must Understand the Digital Landscape and Consumer

Source: Forrester Research, “Owned Media”

Finding a balance between paid, owned and earned

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CMOs Worldwide Plan to Increase the Use of Social Media

Source: IBM, “From Stretched to Strengthened: Insights from the Global Chief Marketing Officer Study,” Oct 11, 2011; eMarketer

CMOs at most companies feel unprepared

Percent of CMOs reporting under-preparedness to manage market factors

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4 out of 5 American Companies Used Social Media Tools in 2011

Source: Altimeter, Social Readiness: How Advanced Companies PrepareSource: Grant Thornton, “International Business Report” as cited in press release Nov 16, 2011.; eMarketer.Source: eMarketer: Key Digital Trends for 2011, Nov 2, 2010

Most with social programs have 1-3 years of experience

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Some Industries Have Not Yet Adopted Social Media

Some companies never will

Source: SAS and Harvard Business Review, “The New Conversation: Taking Social Media From Talk to Action” Oct 27,2010 EC

Businesses are Divided on Who Should Manage “Social”

Only 6% had a dedicated social media group in 2010

Source: Altimeter, “Career Path of the Corporate Social Strategist,” Nov 10, 2010 EC

Marketing, PR and Customer Service are Taking the Lead

Teams must collaborate to integrate across entire org

Source: Econsultancy, “Social Media and Only PR Report 2010” sponsored by bigmouthmedia, provided to eMarketer Sep 29, 2010 EC

Some companies have dedicated listening centers

Social Media Listening is Widely Accepted as Important

Source: MarketTools, “Social Media and Customer Feedback,” Oct 25, 2011Source: TEKGROUP International, “2010 Social Media News Survey,” in conjunction with Ken Payne of Western Kentucky University June 16, 2010 EC

Social Media Crises Are On the Rise

Source: Twitter; Altimeter, 50 social media crises occurring between Jan 2011 and August 2011

Poor experiences are #1 cause for crises

Social Media Crises Can Occur in Any Industry Causes of 50 Social Media Crises 2011-2011

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Social Networks Are Becoming Trusted Advisors for Brands

Brands are striking deals with social networks

Source: Wall Street Journal, June 30, 2011; Twitter EC

Experienced Companies Are Integrating Social Media

Advanced companies see integration as a priority

Source: SmartBrief Inc., “The State of Social Media for Business” conducted by Summus, Limited, Nov 3, 2010 EC

Companies Are Executing Multiple Social Tactics

Branded social pages are a common marketing tactic

Source: Adobe, “2011 Survey: Digital Marketing in the Next Decade,” April 28, 2011 EC

Daily Group Deals Are Now Mainstream

Source: BIA/Kelsey as cited in press release, March 3, 2011Source: Eversave, “Holiday Online Shopping and Daily Deals Websites,” provided to eMarketer ,Nov 11, 2010Source: JiWire, “Mobile Audience Insights Report: Q1 2011,” May 24, 2011Source: eMarketer, May 2011

But “Social Shopping” is not yet a reality

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Corporate Websites are Enabling Social Sign-On

Source: HiveFire, “Content Curation Adoption Survey 2011,” March 30, 2011Source: Gigya, “The Value of Social Sign-on and the Registered User” conducted by Edge Research, Sep 15, 2010Source: Janrain as cited in company blog, Aug 16, 2010

Curation is gaining attention

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Marketers Recognize the Importance of Facebook

Source: eMarketer: Key Digital Trends for 2011, Hubspot, “The 2011 State of Inbound Marketing” March 2, 2011

Social media is becoming “critical”

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Marketers See Facebook As Most Effective Social Media Site

Source: eMarketer; Brandon Hall Group and Covario, “How Does Integration of Social Media Marketing (SMM) Enhance…” May 19,2011Source: Edison Research and Arbitron, “The Social Habit II: The Edison Research/Arbitron Internet and Multimedia Study 2011,” May 28, 2911

Consumers prefer Fb marketing vs other social venues

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Consumers “Like” All Kinds of Companies

Source: ROI Research Inc., “S-Net: The Impact of Social Media” sponsored by Perfomics, June 7, 2011; eMarketer

Favorites include entertainment & food

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There is Debate Over the Value of a “Fan”

$9.56: (money saved in triggering a fan into a purchase or other action assuming a constant acquisition cost of $1-per-click, compared to the cost for a non-fan; calculated by SocialCode).

• 2 cents: (offer for 500 new fans for $10.51; eBay).

• 57 cents: (offer for 1000 new fans for $57 by this fan-creating agency).

• $1.07: (the cost of advertising on Facebook that encourages a user to become a “fan”; Webtrends).

• $3.60: (as a media buy to reach 1 million fans; Vitrue).

• $71.84: (extra amount fans spend vs. non-fans; Syncapse)

• $136.38: (average annualized value of total fan purchases; Syncapse).

• 20 extra visits to your web site: (vs. one visit from a non-fan; Hitwise).

Source: How Much is a FAcebook Fan Worth? $10. Or Possibly 2 cents. Business InsiderSource: Why Brands Still Need Facebook “Fans”, AdAge Digital

Cost Per Acquisition on Facebook

Some studies estimate $10 while others say $0.02

The Value of a Fan (Various Studies)

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Brands Have Accumulated Many Fans / Likes Over the Years

Source: SocialBakers.comSource: SocialBakers.com, What Facebook brand pages have the best “People Talking About” number?

They are starting to focus more on “Engagement”

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Customers Want Deals and Offers on Facebook

Source: PowerReviews and the e-tailing group, “2011 Social Shopping Study, Brief N: Consumer Research Dynamics, Facebook and CommunitiesSource: Millward Brown & Dynamic Logic, “The Value of a Fan” prepared for the World Federation of Advertisers (WFA), March 22, 2011

They also want news, product info and conversations

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Awareness of Location-Based Services and Offers Has Surged

Source: Pew Internet & American Life Project, “28% of American Adult Mobile and Social Location-Based Services,” Sep 6 2011; eMarketerSource: Hipcricket, “2011 Mobile Marketing Survey Research Brief, Oct 20, 2011; eMarketer

Usage far from mainstream, several startups exited

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Over 60% of the Top 100 Brands Have a Google+ Page

Source: SimplyMeasured “Google+ Brand Page Adoption and Engagement Trends,” eMarketer Nov 16 2011Source: ZoomSphere Google+ Page Statistics

Google+ pages launched on Nov 7, 2011

Most Followed Google+ Pages

Top 10 Brands: “Share” of Circlers

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Brands Continue to Strive for “Viral” Videos

Source: Association of National Advertisers (ANA) as cited in press release, Oct 10, 2011Source: DIGIDAY and YuMe, “State of the Industry on Digital Video,” April 12, 2011Source: Nielsen “Tops of 2011: Digital”

Better reach is a key factor

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There is Great Demand for Skilled Social Media Marketers

50% of agencies looking to acquire social skill sets

Which of the following digital marketing skill sets, if any, will you look to acquire in 2011? (select all that apply)

Source: Sodaspeaks, Society of Digital Agencies (SoDA) 2011 Digital Marketing Outlook EC

35% of Companies Have a Company-Wide Head of Social Media

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

65% do not have a head of social media

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Most Companies have “Hub and Spoke” or “Centralized” Organizations

Source: Altimeter, Social Readiness: How Advanced Companies Prepare

Few companies consider themselves a “holistic” org

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Social Teams Made Up of Communications and Marketing Professionals

Source: Altimeter, Social Readiness: How Advanced Companies Prepare

Average size of corporate social media team: 11

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Three Primary Roles Make Up a Social Media Team

Creative talent is becoming a priority


Companies Have a Range of Capabilities Already In Place

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

50% plan to have all these capabilities in next 2 years

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Large Companies Have Many Social Accounts All Over the World

Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees

Average # of social media corporate accounts: 178

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Social Media Teams Have Limited Budgets

Budgets for 2011

Companies still see social media as an experiment


Avg Annual Social Business BudgetPer Corporation by Company Revenue

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Maturity Drives Average Budget, Team Size and Organization

Advanced teams have 20x the budget of novice teams

Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), Maturity Levels; 140 respondents, all over 1000 employees

Maturity Levels (Self-Assessed)

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Hiring Full-Time Employees is a Priority

Other priorities: Services, content and media buys


Significant Staff, Ad Spend, and Community Management Increases in 2011

Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010

Technology spending also rose substantially

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Budgets Are Increasing Year-Over-Year

Source: eConsultancy, “Social Media and Online PR Report 2010” sponsored by bigmouthmediaSource: Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees

Staff, social ads and community platforms are priorities

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Social Media is Shifting Dollars from Digital Spend

Shifts within digital include display and search ads


Social Media Spend Will Increase As a Percentage of Digital Spend

Social media will begin to take up a meaningful share

Source: eMarketer Jan 2011, eMarketer Sep 2011; Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011Source: Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011 EC

Internet Ad Spending is Closing the Gap on TV Ad Spending

People better recall cross-platform ads

Source: Nielsen October 2011, Pew Internet and American Life Project, Kaiser Family Foundation 2005 Survey, Harvard Business Review 2007 Nielsen; Google Cross-Platform Ad Effectiveness Study, 2011 EC

Source: Sodaspeaks, Society of Digital Agencies (SoDA) 2011 Digital Marketing Outlook

Consumer Behavior Drives Changing Investment

What is the primary reason that your marketing investments are changing? (select all that apply)

Competitive forces are also a key factor

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US Marketers Will Spend $3B+ in Social Media Ads in 2011

2012 global social ad spending will rise by 45% to $8B

Source: eMarketer Jan 2011Source: Booz & Company and Buddy Media: “Campaigns to Capabilities: Social Media Marketing” 2011Source: eMarketer Sep 2011 EC

Ad Spending on Facebook is Increasing at a Decreasing Rate

Facebook will generate $5.78B in ad revenue in 2012

Source: nanigans, Affinity Arbitron, eMarketer, Facebook, Internet World Stats, Nielsen, Newspaper Association of America (Oct 2011); Silicon Alley Insider Source: eMarketer Sep 2011. Note: Paid advertising only, excludes spending by marketers that goes toward developing or maintaining a Facebook presence

• Click to edit Master text styles

• Second level• Third level

– Fourth level• Fifth level

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Ad Spending on Twitter is Increasing at a Decreasing Rate

Twitter will generate $259.9M in ad revenue in 2012

Source: eMarketer, Sep 2011. Note: Paid advertising only; excludes spending by marketers that goes toward developing or maintaining a Twitter presence. EC

Budgets Are Rising But ROI is Still Difficult to Measure

47% Not able to measure value gained from investment

Source: Econsultancy, “Social Media and Online PR Report 2010” sponsored by bigmouthmedia; Note: n=347; eMarketerSource: MarketingSherpa, “2011 Social Marketing Benchmark Report, Nov 15, 2011; eMarketer EC

Engagement Metrics Are Most Common Methods of Measurement

Other methods include sentiment, traffic and SOV

Source: Chief Marketer, “2011 Social Marketing Survery,” Oct 1, 2011Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Soft Metrics Trump Harder Factors to Determine Social Media Success

“Ability to adapt & react quickly” seen as essential


Top Companies are Developing KPIs & Dashboards, Seeking More Insights

Source: Booz & Company and Buddy Media, “Campaigns to Capabilities: Social Media & Marketing,” Oct 4, 2011

Few are building revenue-generating platforms

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Social Strategists’ 2011 Internal Goals led by ROI Measurement

Other internal goals: Education and organization

Source: Altimeter, Survey of Social Media Program Managers (Q1-Q2 2011), 140 respondents, all over 1000 employees EC

Social Strategists’ 2011 External Goals led by Website Integration


Social corporate websites will be a big topic in 2012

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Thank You

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The State of social Media & SOCIAL MEDIA MARKETING IN 2012 ESTEBAN CONTRERAS .

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