Pivot Research

7/30/2019 Pivot Research

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Research Report:

Marketers Current and

Future Use of Social Media

Conducted by:

Extra Mile Audience Research

on behalf of

http://www.pivotcon.com/


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Social media has become a web and mobile juggernaut, attracting and engaging hundreds of millions of

users to create profiles and engage in online dialogues. As a result, social media sites are now a primary

platform for generating and sharing content. The scale of social media and the involvement of its users

make social media a compelling platform for marketers. The Marketers Current and Future Use of

Social Media study was launched to explore how marketers use social media, what motivates their

usage, and their plans for future use. In addition to usage, the study focuses on how marketers measure

and analyze of social media programs. Finally, we look at how marketers view 18-34 year old, always

on consumers, many of whom are the most dedicated participants in social media.

Key Findings

The research results provide many insights into how marketers use social media to market their

products. Here some of the highlights:

63% of marketers are already investing in social media marketing. Of the 37% that are not currently investing in social media marketing, 62% are planning to

invest, including 46% who plan to do so within one year.

57% indicate that they welcome social media users involvement and participation with theirbrands.

Of those who are already investing in social media marketing, 87% plan to increase theirexpenditures in the next 12 months, including 56% who plan significant increases in spending.

Only 30% of marketers who conduct social media marketing have measurement and analysisstrategy fully implemented. 43% of marketers who conduct social media marketing have not

begun implementing any measurement or analysis programs.

Of those who have measurement and analysis programs in place, 62% are only somewhatsatisfied with their programs.

Despite all of the focus and investment in social media marketing, only 30% consider their socialmedia marketing efforts very successful. 59% rate their efforts as somewhat successful.

75% of marketers consider always-on, 18-34 year old consumers as a primary or secondarytarget.

Marketers realize always-on, 18-34 year old consumers have unique characteristics: 70% ofmarketers consider them to have a shorter attention span, 67% consider them to have different

motivations than previous generations, and 59% consider them to be less accepting and more

questioning of marketing messages in general.

Methodology

This online survey was fielded by Extra Mile Audience Research on behalf of the Pivot Conference. It

was fielded between June 29 and July 30, 2010. The survey invitation was sent to corporate marketers


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and ad agency professionals via email invitation and through social media. 137 of people responded to

the survey.

Section 1: Marketers Commitment to Social Media Significant and

Growing Rapidly

One of major purposes of the study was to map the penetration of social media as a marketing platform,

and the findings indicate widespread and growing adoption.

Two-thirds currently invest in

social media sites and services

63%

37%

YesYes

No

Q. Do you invest marketing dollars or resources in any social media sites or services (e.g Facebook, Twitter, foursquare)?

Base: All respondents


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The reasons for using social media as a marketing vehicle are diverse, but the primary motivation is to

follow customers and prospects to the sites where they are active, which has now generated a growing

understanding of the unique two-way nature of this marketing environment.

Motivations to begin social media marketing

We realized that social media marketing

is a powerful tool for brands or products 70%

Our audience is on social media sites 62%

We saw that social media users/always-on

consumers gather information differently 47%

To use social media as part of our customer

support and relationship management 40%

Q. What were your companys primary motivations to begin social media marketing? Select ALL that apply

Base: Respondents who invest in social media sites and services


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To what degree are marketers embracing the user involvement and participation culture of social

media? The study indicates user involvement with marketing campaigns and brands is welcomed by

most marketers. 57% welcome user involvement enthusiastically, while another 13% seek customer

involvement, but are cautious about the process and outcomes.

57% embrace customer brand

involvement within social media

Weseeksocialmediauserstobecomeinvolvedwithourbrandand

wegenerallywelcometheoutcomeofcustomerinvolvementandparticipation

57%

Weseeksomecustomerinvolvementwithourbrandswithinsocial

media,butweapproachthiswithcautionandtrytomaintaincontrolsovertheprocess

13%

Weinvestinsocialmediasites,buthavenotyetstructuredcampaignsthatencouragecustomerengagementwithourbrands

butareplanningtointhenext6months-to-1year.

17%

Weinvestinsocialmediasites,butdonthaveplansforcustomerengagementwithourbrands

6%

Dontknow/Doesnotapply 6%

Other(pleasespecify) 1%

Q. Which best describes your position with regard to your companys social media marketing efforts? Select ONE



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Although this study and the sampling techniques focused primarily on marketers, respondents indicated

that a number of departments within their company have become involved in social media marketing

and customer engagement. While marketing involvement still dominates (92%), there is significant

involvement from public relations (57%) and customer service (36%).

Departments Involvedin social media marketing

Marketing 92%

Public relations 57%

Customer service 36%

Other 15%

Investor relations 4%

Which departments are involved in your social media marketing? Select ALL that apply



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Of those corporate (non-agency) respondents already involved in social media marketing, about half

(47%) manage the process in-house. 21% use full-service ad agencies to conduct their social media

marketing, 9% use agencies that specialize in social media marketing, and 18% use a combination of full-

service and specialized agencies to conduct the campaigns.

Almost 50% handle social media

marketing in-house

5%

47%

18%

21%

9%

0% 20% 40% 60%

Other (please specify)

We dont use agencies for social media marketing

We use a combination of full-service ad agencies and

specialized agencies

Full service ad agencies that do traditional

advertising/marketing as well as social media marketing

Specialized agencies that focus specifically on social

media marketing and other new media work

Which best describes the types of agencies that work on your social media marketing? Select ONE

Base: Corporate (non-agency) marketers who invest in social media marketing


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The results indicate that social media marketing investments remain a modest portion of most

companies online budget. 74% are currently spending 20% or less on social media marketing.

Investments in social media marketing

are currently modest

Lessthan10% 51%

11%- 20% 23%

21%- 40% 9%

41%- 60% 4%

Dontknow/Doesnotapply 13%

Q. What percentage of your online budget, including staff to manage, is spent on social media marketing? Select ONE



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However, the findings also indicate that the vast majority of marketers (87%) are planning to increase

their investment in social media marketing, including 56% that plan to increase expenditures

significantly.

87% plan increased investment

in social media marketing

13%

31%

56%

0% 10% 20% 30% 40% 50% 60%

Maintain same level

Increase somewhat

Increase significantly

Q. Which best describes your plan for social media marketing programs over the next 12 months? Select ONE



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Social media marketing is gaining acceptance, even among current non-practitioners. Of the 37% of

respondents who are not investing money or resources in social media marketing, 62% are planning to

do so, including 43% that have plans to start investing in these programs in the next 12 months.

Of those currently not investing in social media

62% plan to invest

9%

29%

16%

23%

23%

0% 5% 10% 15% 20% 25% 30% 35%

Dont know/Does not apply

No, do not currently plan to invest

Yes, in more than one year

Yes, in six months to one year

Yes, in the next six months

Q. Do you plan on starting to invest in social media marketing?

Base: Those currently not investing in social media marketing


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Investments in social media marketing need to be viewed within the context of marketers testing and

adopting new platforms. 89% currently use search engines, and 84% use social media to market their

products/services. And while current usage may be low for platforms like mobile applications (39%) and

location-based sites (23%), high percentages of marketers are planning to use these platforms: 42% for

mobile applications and 35% for location-based sites.

Invest in a wide range of internet and

mobile advertising platforms

AnswerOptions

Currently

using

Planningto

use

Noplansto

use

(Google,Bing) 89% 8% 2%

(Facebook,Hi5) 84% 9% 7%

(Twitter,Yammer) 72% 18% 10%

(YouTube,Vimeo) 70% 24% 6%

(nytimes.com,ESPN.com) 50% 11% 39%

(Gizmodo,TechCruch) 49% 21% 30%

(Yahoo!,Yelp) 46% 16% 38%

(slideshare,scribd) 44% 24% 31%

(foriPhone,Droid) 39% 42% 19%

(Delicious,StumbleUpon,Digg) 36% 30% 34%

(GlamMedia,FederatedMedia) 31% 15% 54%

(Ustream.tv,Brightcove) 29% 24% 47%

(RockYou,Slide) 28% 22% 50%

(epinions.com,Yelp) 27% 22% 52%

(foursquare,Gowalla) 23% 35% 42%

(Blip.fm,Last.fm) 19% 19% 62%

(Farmville) 11% 23% 67%

(Farmville) 5% 23% 72%

(SecondLife) 3% 16% 81%

Q. Which of the following Internet-based or mobile platforms and tools are you

currently using or plan to use in the next 12 months?

Source: All respondents


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Section 2: Measurement, ROI, and the Future of Social Media

Marketing

Despite all of the investment detailed in the previous section, the tools and programs to measure the

impact of social media marketing are still being deployed. Of the marketers that have already begun

investing in social media marketing, only 30% report having their social media measurement strategy

fully implemented. 42% percent have not yet implemented any strategy to measure and analyze their

programs. This level of measurement contrasts significantly to other online advertising efforts, which

are known to be consistently measured by marketers.

Only 30% have social media measurementand analysis strategy fully implemented

17%

25%

28%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Not yet planning a measurement and

analysis strategy

In the planning stage for measurement

and analysis strategy

In the process of implementing

measurement and analysis strategy

Measurement and analysis strategy fully

implemented

Q. Which best describes the state of the measurement and analysis you have in place for social media marketing?



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Social media marketing is most frequently measured and analyzed using the same tools marketers used

to measure other campaigns: website data trackers, Twitter analytics, and link tracking tools. However,

30% are using engagement tracking companies, and 26% have begun using social media trackers in an

effort to more closely match the measurement and analysis to this unique platform.

Measurement methods for

social media marketing efforts

4%

4%

26%

30%

56%

56%

93%

0% 20% 40% 60% 80% 100%


Other (please specify)

Social media trackers (MediaFunnel, Tap11, Crimson

Hexagon, etc)

Engagement analysis companies (Radian6, Scout Labs)

Link tracking tools (Bit.ly, PostRank)

Twitter analytics (HootSuite, Viral Heat)

Website data trackers (Google Analytics, Omniture)

Q. How do you use to measure your social media marketing efforts? Select ALL that apply

Base: Respondents who have already implemented measurement and analysis strategies

for social media marketing


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Most marketers (61%) give an unenthusiastic somewhat satisfied rating to their current measurement

and analysis programs. However, about a third (31%) of marketers are currently satisfied with their

measurement and analysis. Only 8% of those who have programs in place rate themselves as

dissatisfied.

Satisfaction with the measurement and

analysis in place for social media marketing

8%

61%

31%

0% 10% 20% 30% 40% 50% 60% 70%

Dissatisfied

Somewhat satisfied

Satisfied

Q. Are you satisfied with the measurement and analysis you have in place for social media marketing efforts? Select ONE

Base: Respondents who have already implemented measurement and analysis strategies for social media marketing


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Among those marketers measuring the success of their social media marketing, 89% are satisfied,

though the largest segment (59%) are only somewhat satisfied with their programs.

Level of social media marketing success

based on measurement, analysis, and goals for the program

11%

0%

59%

30%

0% 10% 20% 30% 40% 50% 60% 70%

Cannot tell

Unsuccessful

Somewhat successful

Very successful

Q. Based on your measurement, analysis and g oals for the program, have your social media marketing programs

been successful? (e.g. generated more sales, improved customer relations)

Base: Respondents who have already implemented measurement and analysis strategies

for social media marketing


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The data on social media marketing and measurement needs to be viewed within the context of the

fast-paced culture of modern marketing. 75% of respondents report that they plan their marketing

strategies within six months of executing those strategies.

Marketing strategies planned

close to implementation

5%

1%

19%

75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

18 months or more

13 18 months

7 12 months

6 months or less

Q. How far in advance do you plan your marketing strategy before executing your plan?



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Section 3: The Next Target Customer

Most marketers consider that the majority of 18-34 year olds are always on because of the frequency

with which they are connected to the internet and mobile devices.

Marketers view most 18-34 year olds

as being always on

81% to 100% 11%

61% to 80% 35%

41% to 60% 28%

21% to 40% 15%

1% to 20% 6%

0% 5%

Q. What percentage of 18-34 year old consumers in the United States would you consider to be "always-on"? Select

Base: All respondents who speculated


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Marketers realize that always on, 18-34 year olds have some unique characteristics. 70% of marketers

consider them to have a shorter attention span than previous generations, and 67% see these

consumers as having different motivations. Because they are always-on and connected to others

through social media, 67% of marketers see always on consumers has having the potential to be more

influential than other consumers.

Characteristics of always on, 18-34 year olds

Strongly

Agree

Agree NET

Whenmarketingprogramsareformattedanddeliveredthat

theyfindengaging,theyaresusceptibletobrandingorre-

branding 20% 52%

Theirattentionspanformarketing/advertising isshorterthan

previousgenerations 26% 44%

Theyoftenhavedifferentmotivationsthanprevious

generations(green,sociallyconscious,etc.) 29% 38%Theyhavethepotentialtobemoreinfluentialthan

consumerswhoarenotalways-on 23% 39%

Theyarelessacceptingandmorequestioningofmarketing

messagesingeneral 26% 33%

Theyarelesslikelytoacceptmajorbrandsacceptedby

previousgenerationsofconsumers 14% 15%

Traditionalmediaisnotveryeffectiveinreachingthese

consumers 12% 15%

Q. Please rate how strongly you agree or disagree with the following statements ABOUT

"ALWAYS ON," 18-34 YEARS OLDS: SCALE: Strongly agree, Ag ree, Somewhat Agree,

Disagree, Strongly disagree, Dont know/No opinion



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Always-on, 18-34 years olds are being heavily targeted by marketers. 36% consider these consumers a

primary target, and 39% consider them a secondary target.

Always on 18-34 year olds are

heavily targeted by marketers

5%

15%

5%

39%

36%

0% 10% 20% 30% 40% 50%


Not a target

Not this year, probably next year

A secondary target

A primary target

Q. Are 18-34 year old/"always-on" consumers an important target market for you? Select ONE



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Respondent Profile

The functional responsibility for social media marketing is held by 63% of respondents. Respondents

also have other diverse job functions, including brand marketing (63%), ad/marketing campaign

development (62%), and product marketing (46%).

Respondent Marketing/Advertising Functions

Brandmarketing 63%

Socialmediamarketing 63%

Ad/marketingcampaigndevelopment 62%

Productmarketing 46%

Marketingresearch/analysis 44%

Directmarketing/Emailmarketing 44%

Websitedevelopment 39%

Mediaplanningandbuying 36%Publicrelations 34%

Corporatecommunicationsandreputationmanagement 28%

Leadgeneration 27%

Eventsponsorships 27%

Mobileapplicationsandtechnologies 22%

CRM 19%

Q. Which marketing/advertising functions are you responsible for or do you oversee? Select ALL that apply



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While most of them target 18-34 year old, always on consumers, 54% of these marketers are

themselves over 36.

Age of respondentAge

18-25 8%

26-30 13%

31-35 25%

36-40 16%

41-50 20%

46-50 5%

51-55 5%

56-60 2%

61-65 6%

+65 0%

Q. What is your age?


91% of respondents have six or more years in marketing and advertising. Perhaps this experience

helped to provide them the perspective and conviction to act decisively to invest in social media.

Years in Advertising

Years in Advertising

1-5years 9%

6-10years 30%

11-15years 21%

16-20years 19%

21-30years 13%

Morethan30years 8%

Q. How many years have you worked in marketing/advertising?



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ThePivot Conference, taking place October 17 20 in New York, is a new kind of marketing conference

singularly focused on the 18-34 demographic: their attitudes, technologies and preferences. Pivot is the

first and only conference where brand marketers can go to gain essential confidence in their power to

inhabit the culture, conventions and conversations of today's young consumers.

Extra Mile Audience Researchis a market research company specializing surveying the audiences of

media properties as well as attendees of conferences and trade shows. Extra Mile Audience Research

clients include the National Association of Broadcasters, ad:tech Forums, the Economist Media, Gartner,

and the Web 2.0 Conference.
http://www.pivotcon.com/http://www.pivotcon.com/http://www.pivotcon.com/http://www.extramilemedia.com/media_researchhttp://www.extramilemedia.com/media_researchhttp://www.extramilemedia.com/media_researchhttp://www.pivotcon.com/

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