Social Media Marketing & its Growing Impact - Aventis School of Management, City University of new York

1. The State of Social Network Marketing Professor Johnny Parham Professor of Marketing. Zicklin School of Business The City University of New York

2. Over 33% of global marketers say they feel “minimally prepared” to take advantage of new techniques in digital and social media social media I. The Marketer View

3. Fun stuff about Johnny Parham SSN: 378-3455-8927 Amex Card: 3967 5848823 289500 Visa Card: 4856 9800 3441 9289 Mobile: 212-898-2999 Most recent purchase at: Victoria’s Secret How do marketers feel about social media today? ???

4. 68% say it’s “critical” or “important” Source: Alterian, Dec, 2009 63% say it’s “overrated” Source: AdMedia Partners, Dec, 2009

5. Social media marketing participation among marketers in the U.S. *Maintain company accounts or profiles on social sites (average of B2C and B2B marketers) “ We spend the majority of our time engaging with people on these networks, not advertising on them.” --Scott Monty, Ford, in an interview with eMarketer “ If you’re good, you can get a lot of value on social networks from very little investment. You are almost rewarded for getting better results by spending less money.” --Ian Schafer, CEO, Deep Focus It’s less about buying social media, and more about how you can earn and own it! It’s all a matter of TRUST Forrester Mzinga & Babson Business.com Placing ad dollars on social sites 41% 40% 48% Building own social media presence/ Devoting staff 64% 57% 74%*

6. The Hierarchy of TRUSTED Sources #1 Friends, Family “ Social Sites” Face-to-face, personal interactions Sources: Edelman; ARAnet; Lightspeed Research; Keller Fay Group, etc Marketer

7. The importance of trust

10. The ROI Mandate While 80% of marketers say it’s important to measure ROI from online activities, only 31% say they can do so effectively --Omniture, May, 2010

12. Social Media Measurement Today “ For the few marketers who do attempt to measure social media, the metrics they use are not terribly sophisticated. Most marketers today do not invest sufficient time, effort or money on social media measurement.”

14. THE AGE OF ENLIGHTENMENT (circa 2010)

15. Getting a handle on social media leads to improved business results For those top “best-in-class” companies, a majority of whom monitor social media, these firms were 87 times more likely to see higher returns on their marketing investment. Found a financial correlation between those firms who are “deeply and widely engaged” with social media and those that significantly outperform their peers in revenue and profits.

17. #1. Establish clear marketing goals, and then identify social metrics that directly support those objectives.

19. #2. Organize your measurements and metrics into a logical framework. Exposure Engagement ROI/ Outcomes

23. (transcend individual social channels) Brand Awareness : Increase in % of respondents aware of the brand Consideration : Increase in % of respondents who include the brand in their consideration set Purchase Intent : Increase in % of respondents who indicate an intent to purchase the brand # of Qualified Leads Sales/Purchases ROI/ Outcomes

25. Calculating an ROI for social media VALUE for Exposed Group VALUE for Control (not exposed) Group Fully Loaded Costs

26. Or, create a “ Social Media Dashboard ” composed of soft and hard metrics “ Using a variety of hard and soft ROI metrics can absolutely be accomplished. I would offer that volumes of conversation over competitors, sentiment, the level of influence of those who are interacting with your brand, etc, are but some of the metrics that can be used to construct a dashboard of success.” --Blake Cahill, Visible Technologies

27. #5. Determine a dollar $ value for customers who choose to opt in and engage with your brand via social networks. “ We look at the percentage of Facebook fans that convert to customers, the percentage increase in their frequency of visits, projected increases in their average ticket and...we can project their future value. Are we 100% right? No. But are we directionally correct? Absolutely.” --Jim Ensign, VP

29. “ Warning! Warning!” “ By listening carefully, we harness social media as an early alert system… so we can react quicker to issues.” --Richard Brinhammer, Dell “ If you do not listen carefully, you are a fool – not because the crowd is a threat (although, of course, it is) but because it is your greatest resource. What if its wisdom were harnessed and its power unleashed? Here's what: payday.” --Bob Garfield, former ad critic, Ad Age “ If someone on a blog or social network is trashing your brand, what is it worth to you if one of your passionate brand fans speaks out on your behalf?”

31. Integrate social media into every aspect of your marketing efforts – and in real-time! “ I view listening as an important analytic. Listening and other analytics can drive your strategy at a macro-level... They can either reinforce your strategy or correct it, and give you opportunities for ideas, products, services and/or segments.” --Michael Mendenhall, CMO, Hewlett-Packard Double-digit increase in online bookings!