If you’re accountable for the dollars your company spends on social media-related marketing and you’re looking for evidence that socially engineered content and engagement marketing lifts sales, here’s some good news.
A just-released study shows that consumers -- patrons of five fast-food franchises in this case -- are much more likely to pull out their wallets and purses after being exposed to social content on sites like Facebook and Twitter than those who aren’t. Moreover, when exposed to socially engineered content and other types of media (e.g., television ads, billboard campaigns and public relations efforts resulting in earned media placements) the likelihood for a bigger spend, consumption or brand perception is increased by a whopping two to seven times.
These findings — from the latest Social Media Sales Impact Study (published by Ogilvy & Mather and ChatThreads) — reinforce the importance of having an integrated multichannel marketing campaign that includes creating and leveraging conversational and user-generated content.
The study also shows that you shouldn’t put all your eggs into one basket. Exposure to several fast-food brands via social media reached only 24 percent of the consumers involved in the exercise. That’s low when compared to 69 percent of survey participants who reported having taken note of a TV ad for one of the restaurant brands during a weeklong test period. Billboards for one or more of the five chains (KFC, McDonalds, Subway, Taco Bell and Wendy's) caught the eye of only 37 percent of consumers.
But the study shows that exposure to multiple channels — a combo plate involving social media along with television exposure, billboards, public relations or other advertising avenues — positively impacts sales. For instance, consumers exposed to social media combined with public relations showed a 17 percent increase over purchases without such dual exposure. Those who experienced social media exposure along with a TV ad were two times more likely to purchase more that they did the week before. And brands that combined social media mentions with billboard advertising increased sales by one and a half times.
What are the implications of this study? First, it suggests that those who employ social content should increase customer and prospect exposure in order to impact sales and brand perception. Even more important, the report shows that integrating other media channels into your content results in the biggest impact on consumers.
Use surveys, loyalty program tracking and coupons when evaluating the sales impact of your social content. Don’t depend solely on direct clicks. By monitoring your social media closely, you can also discover and remedy any negative press about your brand, product or service, because these certainly affect brand perception. In fact, Taco Bell had a 220 percent lower shift in consumer perception of the chain providing a “great dining experience,” -- a direct result of a socially charged news cycle involving ingredients used in Taco Bell’s meat products around the time of the study.
You should also plan your social content in a manner that best emphasizes the qualities with which you want the public to be aware. The goal is to reinforce your brand’s uniqueness, and that means promoting broad discussion on your brand in order to keep your social content fresh and up-to-date.
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Comments:
Interesting article written on social media. Social media is best of an online marketing because it uses is increasing day by day. marketing to schools
More companies are moving away from traditional marketing towards Internet Marketing. In the 1990s advertisers focused on mediums like T.V, radio, and print for their advertising needs, but now companies are accepting that Internet Marketing is more effective and cost-effective. In traditional marketing it is more difficult to quantify results and brand awareness. However, in Internet Marketing we can keep track of these through analytics tools. Regards, Business Gifts
Good post - love the combo plate idea. Would suggest taking it even further: different consumer are looking for/better reached by different mixes (or combos, if you will) of media. Applying analytics can help optimize the mixes - and can also help identify where more becomes too much. We have an upcoming webinar on Using Analytics to Drive Better Communications for more insight on this topic: http://www.pbinsight.com/resources/events/details/independent-research-firm-and-pb-perspectives-using-analytics-to-drive-bett
I completely agree with Mikal's response to Robert's comment below. Traditional advertising is, and always will be present in the consumer space. Just as Michael Jordan will always be remembered for his outstanding talent. But Michael couldn't score without his team. Just as traditional advertising couldn't succeed without some assistance these days. Social Media might be the Scottie Pippen of advertising, but he was remembered wasn't he? You're only expanding your reach when using social media. It's a given. But just as Mikael states above, you need to know how to manage it. The 18-24 year old market is constantly plugged in and demands technology 24/7. We respect brands that are on the same social media playing field as we are. If we think your brand is up-to-date with technology or is convenient for us, we’ll view your brand as relevant. Don't believe me? Download our State of the YAYA research at www.mojo-ad.com. Kaitria Sievers Account Executive www.mojo-ad.com
What many companies don’t realize is that Social Media management is actually quite easier than it seems. There are tools out there such as Radian6 that allow you to engage your customers online more efficiently and in real time. If your company does not have the budget to purchase a tool such as Radian6 and then pay someone to monitor and manage it, there is always the option of outsourcing to an internet marketing firm that specializes in social media campaigning. It is actually a lot more cost effective and profitable in the long run, to have the experts handle your social media campaigns.
What is rarely measured in such studies or mentioned in such articles is the "cost of time spent" on social media sites by "managers" inputting data. Who doesn't check personal messages and reply to non-business related conversations whilst "working"?. How much time is actually wasted? I see a lot of people jumping on the social-media bandwagon, don't see a lot providing evidence of ROI.
Robert: That's an interesting take on it, however, Michael Jordan alone couldn't win or guarantee a championship (like Pippen, he needed others around hm in order to do so). Just saying :-)
I heard one of the best analogies the other day from a lady I work with. We were discussing how so many companies are relying solely on social media and foregoing other forms of marketing, usually to horrible results. She mentioned that Social Media is the Scottie Pippen of the Marketing, and that while great at assisting in getting points (sales, impressions, etc) that will never win a championship by himself and that Social Media is not a Michael Jordan.
Combo plate is the answer! I agree. That is why we designed our www.davesbillboard.com to bring traditional website structure and ease of social medium communication. Throw in quick and easy coupons for all business members and you get more eyes and customers. Dave
While the article pointed at some truths, "Social Marketing" and where to place any percentage of your budget should you consider it is still a gamble. As the person who is responsible for the budgeting and success of my companies Marketing and Advertising Dollars, we view this as further dilution of our already stretched budget. While we cant ignore that "eyeballs" are on these Social venues, we have to evaluate how effective any strategy we could afford would be for our ROI. In the ever complex world of advertising, effective results are getting harder and harder and more expensive than ever to accomplish.
Isn't it funny that the same old marketing principles still apply? Even though consumers are plugged in to a growing number media channels, it's still multiple, positive exposure points that drive purchases. I really like that you're reminding readers that there isn't just ONE silver bullet when it comes to marketing or even online marketing. It takes a holistic strategy to produce results.
Great Article. I think that the test category of Quick Serve restaurants is partially to explain the high use of TV and OOH which might not apply to smaller or B2B. But the conclusion of integration seems to make sense. Its all about reaching your target audience! Bob www.24kmarketing.com
Interesting article, but even more interesting comments. @0da183a30cea13851357a491d1130264:disqus, I'm not sure I'd call social new anymore, but point taken on the "additional eyeballs" - however, the point that is missed is that it is a "trusted" channel. Instead of just bombarding eyeballs (such as through traditional media), many times, the eyeballs are being influenced by a friend or another brand they already "trust" - it's difficult to force your message through SM, unlike through TV and print. But, as ViralTechnologies said, you must have a balanced approach that is appropriate for your consumer.
I love the term you coined: combo plate... and I definitely agree with 'integrated multichannel marketing campaign' when it comes to successfully marketing your brand these days. Still, we must not forget marketing in the real world and giving that real-time experience customers can have with your brand. I guess, content rules these days and just how do we define a great content, anyway?
Now a days social media is a fastest and effective way to promote your business. with the help of social media we can reach to the targeted audience. Today many company are aware to making social media policy for their business. and its a surely beneficial for company promotion.
Terribly unfocused broad side and simplistic report. Not clear if the bias of trying to justify social media, ignoring the reality that social is still an additonal way to reach eyeballs. TV and 'traditional' media are unfortunately for many pundits still the work horse for brand awareness and sales. It seemed the article was saying that one starts with social media program, and surprise surprise when you add billboards, or add TV, the sales impact goes up 1.5 to 2x. Was the test done the other way around...if Control is the TV/Magazine/radio plan and one adds 'social'....what uplift resulted? Also, the broad summary points ignore the various other significant and quite different situations where social vs traditional media optimizations i.e. how large global brands that heaviy rely on traditional media ADD social to their mix is quite different that smaller niche or targeted brands that cannot afford any media other that PR/socia/buzz tactics. Lastly, in the broadest perspective, 'social media' is simply a new version of 'eyeballs' just a cable TV was a new source of eyeballls, and any good media planner can optimize the best 'combo' do insure awareness and trial goals of the Brand are delivered. Social is just another medium, unique, 'new,'interactive but still only has value in delivering eyballs, the message and increase sales.
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I think it's necessary for business owners to understand the value of having a well balanced marketing strategy. As you just said " exposure to multiple channels — a combo plate involving social media along with television exposure, billboards, public relations or other advertising avenues — positively impacts sales." This is very well said. My company focuses our efforts on the internet marketing part of the marketing world. We believe that through SEO/SEM, Social Media, and Competitive Intelligence it's only a matter of time before your brand is viral on the web. Thanks for all the insight and statistics! www.viraltechnologies.com jbraziel@viraltechnologies.com