The 3 most impactful social media trends

Executive Briefing The 3 most impactful social media trends localmeasure.com Executive summary 3 State of the social media industry & how times...
Author: Andrea Adams
1 downloads 0 Views 532KB Size
Executive Briefing

The 3 most impactful social media trends

localmeasure.com

Executive summary

3

State of the social media industry & how times have changed 

4

Trend One Getting new business: ‘interruption’ advertising is becoming prohibitively expensive, but not social

7

Trend Two The geographic disrupter & new gold rush: real time location based digital content

10

Trend Three Social media costs more time and personnel resources than other media channels

15

How to leverage social media & be ahead of the pack in every way

18

The 3 most dangerous social media trends

2

Executive summary Your job as an executive marketer has never been more complex and challenging. Exponential growth in global smart phone shipments is increasing social media penetration, disrupting traditional media channels and fueling significant growth in location-based content. More specifically: Interruption advertising is becoming prohibitively expensive Savvy marketers are focusing on identifying their ideal clients and building profitable relationships with them through highly targeted marketing campaigns. As a result, marketers are diverting their budgets from less targeted channels (such as TV and print) to more targeted channels such as social media, PPC, and blogs.

Real time location-based digital content offers significant opportunities Local advertising is now increasing relative to national advertising in the mobile space, which indicates that the ROI of highly targeted local advertising is superior to national advertising. Also, new locational tools are empowering brands to identify core clients and brand risks by monitoring (and alerting staff in real time) to people posting from specific locations (such as a stadium, shop or hotel). Why? Because people are talking about your business on social media when they’re at your business whether you’re listening or not. So if you haven’t already, check to make sure your customers and prospects can easily geo-tag your business by ensuring you’ve setup social accounts with locational information for each your premises.

Social media is costing more time and personnel resources than other media channels Although for many businesses, social media is a cost effective way to improve lifetime customer values and acquire leads inexpensively, it can also require additional personnel resources. Without the right tools, ROI analytics and systems in place, the cost of managing social media may seem too high. Invest in a few simple social media tools that provide informative reports and automate many distracting features that can lead your staff astray. By investing in a few simple social media tools that provide informative reports and automate distracting features, you can drastically improve the ROI of your social media efforts.

What are your prospects and clients saying online about you and your business when they’re at your business premises? To learn more about how to access what people are posting at specific locations (such as your business) go to localmeasure.com or contact us at [email protected].

The 3 most dangerous social media trends

3

State of the social media industry & how times have changed Social media is still growing like crazy Virtually everyone is going online – and many are spending more time on social media. When Facebook launched in 2004, social media was barely on the marketing landscape. Today, companies spend on average 8% of their marketing budget on social media – a figure that’s expected to increase to almost 20% in the next 5 years.

2005

2013

The comparison between these two scenes is striking and goes to show how much has changed in the last few years. You need to start targeting mobile phones because guess what — everyone uses them. The 3 most dangerous social media trends

4

Social media isn’t a fad. It’s a revolution Social media has revolutionised your power to: •

Acquire new customers – via the most demographically specific and targeted advertising platform created thus far: Facebook. For this reason alone, social media will continue to pull advertising budgets from less targeted mediums such as TV and print advertising into the future;



Identify and profile your existing and ideal clients – using social media data integration apps like Facebook Connect; and



Build relationships with your prospective and existing clients – by providing interesting content that educates, informs and entertains. Stuff that people share.

Newspaper advertising revenues Adjusted for inflation, 1950 – 2012

$60B

$50B

$40B

$30B

$20B

$10B

$0B 1950 1960 1970 1980 1990 2000 2010 Print only

Including online

Newspaper ad revenue has fallen as businesses seek more targeted advertising opportunities online. Source: Newspaper Association of America

The 3 most dangerous social media trends

5

CEOs are struggling to find tools to gauge the ROI of this newer digital world According to Hubspot, 19% of CEOs rank gauging ROI as the major challenge they face in using marketing technology solutions. In addition, 1/3 marketers are flying blind – report they can’t or don’t measure ROI of their inbound marketing efforts.

CEO tech challenges align with industry examples Nearly 20% of C-Suite marketers say gauging ROI is the principle technology concern

Finding tools to gauge ROI

19%

Tracking our data

16%

Securing executive support/budget

14%

Training our team

14%

Getting team using the same tools

9%

Ensuring flexibility in o  ur CRM/Reporting

8%

Getting systems to talk

7%

Allocating bandwidth

5%

Almost 1 in 5 CEOs rank finding the right tools to gauge ROI as their chief technological concern Source: Hubspot 2013 State of Inbound Marketing

Some brands are moving social media in house Social was once an experimental channel that could be outsourced to agencies. Now, this is changing. Over the past few years, major brands such as Nike and General Motors have reclaimed control over their social media (especially the data it generates) – which they see as critical to their success – by moving social media activity in-house.

Despite these changes, the problem for businesses remains the same: how to find and create conversations that matter? Now let’s cover the 3 trends that we believe could put you out or business or send you to the stars over the next few years.

The 3 most dangerous social media trends

6

Trend One

‘Interruption’ advertising is becoming prohibitively expensive, but not social Getting new business

The Trends Over the past decade, the cost of acquiring new customers through traditional advertising channels (such as TV, direct mail and telemarketing) has increased. This has caused marketers to shift their strategy from campaign-based interruption advertising to a consistently measured inbound strategy that focuses on building lasting relationships with core customers.

Share of U.S. advertising spending by medium The internet in 2012 passed newspapers to become the nation’s second-biggest ad medium, behind TV.

2012

38.8%

19%

2013

38.6%

21.7%

2014

38.3%

24.6%

2015

37.5%

27.9%

2016

36.9%

30.7%

Tv

Internet

Newspaper

15.5%

11.2%

13.8%

12.1%

10.6%

9.4% Magazine

10.4%

5.2%

10.5%

10.2%

5.2%

9.8%

10.0%

5.2%

9.1%

9.6%

5.2%

9.2%

5.3%

8.5%

Radio

Outdoor & Cinema

Internet spend will increase by 62% between 2012 and 2016. Meanwhile, TV ad budgets will continue to decline. SOURCE: ZenithOptimedia (Advertising Expenditure Forcasts, December 2013). Numbers rounded.

Savvy marketing executives have moved advertising budgets from less profitable mediums (such as newspapers, magazines, and radio) to more profitable digital channels (such as PPC ads, blogs and social media on the internet).

The 3 most dangerous social media trends

8

The Problems Traditional channels (like newspaper ads, TV, radio, etc) are less targeted than new digital channels By and large, acquiring new business via traditional media channels is becoming less appealing than newer digital channels (like PPC ads and social media ads) because the latter allow you to target very specific populations who are more interested in your offer.

Many brands lack the skills of leveraging newer media channels (online ads, social media, etc) Have you measured how much it costs you to acquire a new customer through TV, the internet, newspapers, etc? If not, you may be wasting money on less effective media channels.

The Solutions Accept that outbound marketing is traditionally more expensive than inbound marketing Reconsider how you allocate your marketing budgets based upon the measurable performance of each channel you invest in.

Outbound marketing costs more

46% Trade Shows

26% Direct Mail

26% Telemarketing

25% PPC (Paid Search)

14% SEO (Organic Search)

14% Social Media

10% Blogs

Source: State of inbound marketing, Hubspot, March 2012

The 3 most dangerous social media trends

9

Go where the leads are cheap

Social Media and Blogs generate real customers

Twitter

% of channel users who acquired a customer through this channel Facebook

Linkedin

Company Blog

57% 62% 52% 44%

Buy new customers by investing in your relatively cheap inbound channels (such as SEO, social media, and blogs). Research from Hubspot indicates that your highest marketing ROI is likely to come from improving your blog, social media and SEO efforts.

Although social media and blogs are not the silver bullets they’re often made out to be, they do generate real customers. Source: S tate of inbound marketing, Hubspot, March 2012

The 3 most dangerous social media trends

10

Trend Two

The geographic disrupter & new gold rush Real time location based digital content

The Trends People are buying smartphones like crazy.

Smartphone use continues to rise Global smartphone quarterly unit shipments & smartphone users as % of mobile phone users, 2009 – 2013

300

30%

200

20%

100

10%

0

0% 2009 2010 2011 2012 2013 2014 Smartphone Units Shipped

Smartphone users as % of Mobile Phone Users

Source: S martphone shipments per Morgan Stanley Research. User base per KPCB estimates based on Morgan Stanley Research and ITU data.

The 3 most dangerous social media trends

12

Global smartphone usage is driving social and local media Armed with smartphones, people are browsing on the go and posting location specific content. Businesses have caught on – which is driving significant growth in location services and mobile advertising.

Location-based services Worldwide Users, 2011-2016 (Millions)

2000

6%

+41

1500

th

w Gro

1000

500

0

502

1054

747

1391

1746

2093

2011 2012 2013 2014 2015 2016

Location-based advertising & marketing spend Worldwide, 2012-2017 (€ billions)

€6

€4

h

t ow

%

€2

0 20

Gr

+1 0

€0.53

€6.50

2012

2017

Location services have grown dramatically as marketers become more sophisticated. Source: Emarketer 2013, Strategy Analysis 2011

The 3 most dangerous social media trends

13

Importantly, local advertising is now increasing relative to national advertising in the mobile space – which indicates that the ROI of local advertising (which is by definition more targeted) is superior to national advertising. This trend is likely to continue as smarter companies continue to refine their core customers and marketing strategies.

Local vs National advertising spend in mobile Marketers are shifting more of their mobile ad spend to local targeting (as opposed to national) because of local’s increased ROI.

$4.00

70%

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

51%

$0.00 2010 2011 2012 2013 2014 2015 Local

National

Source: Bia Kelsey 2011 Local Display. Numbers are Rounded.

The major social media players realise that locational content is a critical space for the future of marketing: •

Facebook – lets you tag your location on status updates or photos.



Twitter



Instagram – lets you geotag your location when posting.



Foursquare – h  as sophisticated geotagging and has, in the past, rewarded customers for “checking in”.

The 3 most dangerous social media trends

– r ecently appointed a new head of product, Daniel Gafs, who redesigned Google Maps for Google.

14

The Problems Many businesses still lack social media accounts for their business locations If someone walks into your premises, posts online and searches for your geo-tag to tag themselves to your location, will they easily find it? If not, then you’re missing out on potentially thousands of important and informative conversations containing bottom line feedback to your business. Why? Because people are talking about your business online when they’re physically present at your business. And since most of them don’t mention your brand, you have no way to find out what they are saying unless you monitor your locational content.

Lack of social & relationship marketing strategy Do you have a strategy for proactively connecting with and improving your relationship with your local patrons online so that you improve their referrals and repeat business? If yes, are you executing on that strategy and leveraging locational insights to further improve the ROI on your local advertising campaigns and mitigate brand risks (such as negative online feedback)? If not, then rest assured that you’re missing negative feedback that you can correct, as well as opportunities to greatly improve the reach and ROI of your current social media efforts.

The Solutions Make geo-tagging easy by ensuring you’ve setup social accounts with location details for your premises It’s time to get serious about local media. Establish social media handles for each of your premises for Facebook, Twitter, Instagram and Foursquare so that people can easily share their location with their friends. With the right tools (such as Local Measure), you can receive automatic alerts notifying you of important feedback (such as a social celebrity entering your site or a thief stealing something) so that you can improve your business and bottom line.

Redefine your core base of customers Digital marketing platforms (like blogs and PPC) have incentivised companies to redefine their core base of customers. As local media content goes mainstream, it’s becoming more important than ever to have a clear understanding of your core base of customers so that you can engage with them in cost effective ways across multiple platforms.

The 3 most dangerous social media trends

15

Trend Three

Social media costs more time and personnel resources than other media channels

The Trends By and large, investing in social media (which often requires personal responses) requires more personnel resources than other advertising channels.

Social media consumes most personnel resources 16% of companies employ a full-time social media marketer

Social Media

16%

Email Marketing

11%

Content Marketing

10%

SEO (Organic Search)

9%

Blogs

9%

Trade Shows

6%

Direct Mail

6%

Traditional Marketing (radio, print, TV)

6%

Telemarketing

5%

PPC (paid search / AdWords)

5%

Whilst social media does enable businesses to acquire inexpensive leads, it also requires ongoing personnel. Source: State of inbound marketing, Hubspot, 2013

The 3 most dangerous social media trends

17

The Problems Firms are struggling to leverage social media without investing heavily in additional personnel resources Although for many businesses social media is a cost effective way to improve lifetime customer values and acquire leads inexpensively, it can also require additional personnel resources. Without the right tools, ROI analytics and systems in place, the cost of managing social media may feel like more than it’s worth.

The Solutions Invest in training and tools that automate your social media and provide effective reporting Have you ever burned a few hours surfing the web? Imagine how much time your employees might waste when attempting to add value through social media. A few tools simplify social media, provide effective reports and automate many distracting features that can lead your staff astray. Invest in such tools because doing so can drastically improve the ROI of your social media efforts.

The 3 most dangerous social media trends

18

How to leverage social media & be ahead of the pack in every way How can you break ahead of the pack in this increasingly complex, competitive and social media fueled world? Peter Drucker, the father of business consulting, would advise you to focus on the two core business activities that produce results: “marketing and innovation”. As for innovation, you’re the expert for your particular industry. But how do you improve your marketing when the entire ecosystem has fundamentally shifted from sweeping broadcast interruption style marketing campaigns to highly targeted relationship building campaigns?

As a tech startup at the forefront of the local digital space, we recommend the following: Identify and profile your ideal clients According to Hubspot, 83% of marketers rate figuring out how to target customers and prospects as a major concern. However, targeting the right people is much easier when you know exactly who you’re trying to target. So consider for a moment: Who is your ideal client? Find out who they are by reviewing your existing clients and using surveys or tools like Facebook Connect to capture as much demographic information as you can. Armed with this information, you’ll be able to craft the right content, angles and offers to connect with the people who can bring the most to your business.

Build relationships with your ideal clients via multiple channels The days of relying upon one advertising medium are over. As competition and marketing noise increases, if you want to thrive, it’s critical that you can connect with your prospects and clients using the right message across multiple channels. That means having a core strategy and consistent message across your website, blog, social media channels and email campaigns. It means consistent messaging without being redundant or repetitive. Add value to your clients! And if your business engages with prospects or clients at a physical location (such as a stadium or restaurant), ensure you’re monitoring what they’re posting online so that you can connect with influencers, surprise and delight loyal clients and respond to brand risks in real time. For more information, contact us.

If you have physical premises (store, stadium, shop, restaurant, etc), then leverage your location based social media content Remember, people are talking about your business online when they’re physically present at your business. Social media has created new risks and new opportunities for you as a marketing executive. However, there’s a problem: how do you find the conversations on social media that matter to your business so that you can respond to them effectively?

The 3 most dangerous social media trends

19

AUS-006

localmeasure.com