Booz & Company and Buddy Media, a social enterprise software provider, conducted a quantitative survey of 117 leading companies and a series of in-depth interviews with senior marketing and media executives. The survey revealed that due to the importance and opportunities by social media, 95 per cent expects to increase the social media investments.
Key findings of the results are:
Currently, two-thirds of responding companies dedicate five percent or less of their digital marketing spending to social media. Within three years, however, 56 percent of responding companies expect to spend 10 percent or more of their digital marketing budgets on social media, and 28 percent expect the figure to exceed 20 percent.
Scaling the Social Experience capabilities
The three identified capabilities that offer new ways to generate business value are community management, content development and real-time analytics.
The art and science of convening and hosting fans in social media across multiple platforms — quickly emerges as a vitally important skill.
To build a robust content development capability, companies must often completely reboot their approaches to communications and campaigns. Leading social media teams are taking steps to build publisher-like capabilities, competing aggressively for consumers’ attention, engagement, and loyalty with high-value content just as media companies do.
Marketers increasingly need real-time insight into their audiences and the impact of their content to know whether their social media efforts are on target. Robust, well-structured analytics and metrics are critical to this understanding.
Social media ROI
The most advanced companies set out to achieve strategic business objectives with their social media analytics. According to the survey, only about 40 percent of companies have metrics in place today to measure ROI-focused key performance indicators, such as purchase intent, leads generated, conversion rates, or actual sales.
Social media ROI is an interesting topic because it’s a difficult one. What has social media attributed to the amount of leads, which has often not a causal and direct connection? Did social media influence the buyer in its decision-making, if so, how is that being proved?
It’s the content distributed via social media that incites people to take action. It’s the –volatile and intangible- communication via social networks that create value. This will be the next step in ROI understanding, pinpointing better which communication is responible for certain results.
What’s your opinion on the three proposed capabilities, do you agree?
If not, which other capability do you suggest?