Social Media Surveyf.datasrvr.com/fr1/814/51646/Social_Media_Survey_2014_v3.pdf2 Social Media Survey...

2014

Social Media Survey

Risky business? When and how businesses are using social media

ii Social Media Survey 2014

1Risky business? When and how businesses are using social media

TABLE OF CONTENTS

Introduction

1. Why now? 3

2. Profile of respondents 4

3. Key findings 6

4. Who uses social media? 8

5. Why organisations use social media? 10

6. Barriers to entry 13

7. Types of social media and how they are used 14

8. The perceived risks of social media use and 17 how they are managed

9. Monitoring social media use and success 21

How we can help - Baker & McKenzie’s Social Media capabilities 24

2 Social Media Survey 2014

INTRODUCTION

This is the first Baker & McKenzie global client survey on social media. It gathers our clients’ goals and experiences in using social media and where they percieve the risks to be.

This survey builds on and is complementary to the report “Social Media: the opportunities and constraints in Southeast Asian Emerging Markets” issued by Baker & McKenzie in 2013. That report outlines a framework for ‘social media engagement’ that is referred to in this survey.

The framework identifies five stages of social media engagement by organisations, being:

Presence - Static promotion or presence which is rarely updated. This is the standard starting point for organisations going digital.

One-way Push - Proactive marketing and promotions representing an initial outward orientation in social media.

Two-way Interactive - Monitoring and managing feedback from social media users, usually customers.

Engagement - Listening to feedback and beginning to incorporate those responses into product development, strategic initiatives or customer relationship monetisation.

Big Data and Behavioural Analytics - Deep capture of social media data to provide better market understanding and better, and more dynamic, market positioning.

For a copy of the “Social Media: the opportunities and constraints in Southeast Asian Emerging Markets” report, including greater detail of the social media engagement framework, please refer to the back page of this report.


Social media is not new. It has been around since the early 2000s and, although originally focused on individual users, has provided a platform for corporate organisations to promote their businesses and engage with markets for more than a decade.

As the number of social media platforms and users continues to expand, corporate and public sector organisations have vastly increased their use of social media. However, concerns about risk and compliance issues still affect the manner and extent to which organisations take advantage of social media platforms.

As the social media landscape continues to evolve, organisations are starting to shift from using social media for promotional purposes to more interactive engagement with customers.

We are interested in how our clients use social media and how they perceive the challenges around it. The purpose of this survey has been to identify:

• Who uses social media?

• Why organisations use social media?

• The barriers that organisations see to using social media.

• Which social media platforms are most used?

• The perceived risks associated with social media use and how organisations are monitoring and managing those risks.

We hope that you find this report interesting. If you would like more information on any of the issues raised in this report, or would like to discuss social media issues more generally, please refer to the contact details on the back page of this report.

Why now?1

MethodologyA questionnaire was sent to organisations around the world which asked them about how they perceive, use, monitor and manage social media. We would like to thank all of the respondents for taking the time to complete and contribute to our survey.


Profile of respondents2

Finance & Insurance

Manufacturing

Technology

Pharmaceuticals & Healthcare

Fast Moving Consumer Goods

Media & Advertising

Energy & Renewables

Real Estate

Professional Services

Charity & Public Sector

Logistics & Transportation

Telecoms

Agriculture/Mining/Construction

Travel & Hospitality

Respondents to the survey are fairly evenly spread across the regions. The Technology, Finance & Insurance and Pharmaceuticals & Healthcare industries are consistently represented across all regions.


In terms of the number of global employees, the respondents are organisations that fall into the following size ranges:

Energy & Renewables respondents are most prevalent in the ‘fewer than 10,000’ bracket, more Finance & Insurance respondents fell in the ‘between 10,000 and 100,000’ employees category and organisations in the Technology sector are the largest in terms of employee numbers.

49%

25%

Fewer than 10,000

More than 100,000

26% Between 10,000 and 100,000

21%NORTH AMERICA

LATIN AMERICA16%

MIDDLE EAST & AFRICA

16%

EUROPE

23%

ASIA PACIFIC24%

21%

16%16% 24%

23%


3 Key findings

1 Widespread but still developing Almost every organisation uses social media,

but most are still developing their usage and are in the early stages of engagement. One in six organisations regards its social media use as being ‘in its infancy’. The Logistics & Transportation and Telecoms industries consider their social media use to be the most sophisticated, whilst organisations in the Media & Advertising and Agriculture, Mining & Construction industries see their social media use as still being ‘in its infancy.’

2 No industries are a ‘no go’ Organisations in every respondent industry use

social media. While some organisations (across a range of industries) consider social media to be ‘not appropriate to their industry’, other organisations in those same industries indicate that they have an active social media presence.

3 A monologue, but becoming a dialogue Use of social media remains highly customer

focused and most organisations still use social media as a ‘one-way’ method of communication. However, nearly half of organisations consider ‘two-way’ engagement to be important to their social media use.


4 Networking is popular Social networking sites remain the most popular

form of social media for organisations - both in terms of overall usage and frequency of usage. Blogs, content sharing and aggregation sites lag behind. International social media platforms are used more than local or regional ones. Daily or near daily use of social media is common in the Finance & Insurance and Technology industries.

5 Risk not the main barrier to entry Perceived risks continue to present a barrier to

some organisations starting to use social media. However, organisations are more likely to be constrained by a lack of resources or a perception that social media is not appropriate to their industry.

6 Risk management is essential The importance of managing risks around social

media is well recognised. Almost every organisation implements controls through a social media policy or guidelines and by controlling who is able to post on the organisation’s social media accounts. The main risks that organisations are seeking to avoid are bad PR, loss of brand control and unauthorised use of data.


4 Who uses social media?

Social media use is well established in most organisations. 81% of organisations who responded to the survey are current users of social media and a further 5% are in the process of implementing a social media engagement strategy. 14% of respondents indicated that their organisation does not use social media for a variety of reasons, such as perceived risk, lack of resources, or not being industry appropriate. Overwhelmingly the industries with the greatest use of social media are Technology, Finance & Insurance, Telecoms, Pharmaceuticals & Healthcare, Manufacturing and Media & Advertising.

The newcomers, with an external social media profile of less than 1 year, all come from industries in which other organisations already have an active social media presence and appear to be catching up with the trends in social media usage in their industry. Our findings show that no one industry has a consistent pattern of recent social media uptake. The Technology and Telecoms industries have had social media profiles for longer than other industries and form the majority of respondents having social media profiles for more than 24 months. Heavily regulated industries, such as Finance & Insurance and Pharmaceuticals & Healthcare tell us that they have been using social media for 12 - 24 months. No industry is dominant in the less than 12 months bracket.

Results have shown that the majority of respondent organisations have had an external social media profile for 2 years or more.

How long has your organisation had an external social media profile? 11%

less than 12 months

59%30%

12 - 24 monthsmore than 24 months

Although social media is used broadly and many organisations have been using it for a considerable period of time, relatively few organisations perceive their social media use to have achieved any real level of sophistication. 18% of organisations describe their social media profile and approach as ‘in its infancy’ or ‘relatively static’ and these respondents are evenly spread across industry sectors. The majority of respondents (65%) describe their profile as ‘developing’, dominated by Finance & Insurance and Technology sectors. The remainder describe their approach as ‘sophisticated’, with the Telecoms industry most likely to use such a description.


What best describes your organisation’s social media profile and approach (by industry)?

Manufacturing

67%

11%22%

ProfessionalServices

67%

16%

17%

Technology

73%

18%9%

Developing Developing Developing



In its infancy, relatively static








Sophisticated

Sophisticated

Sophisticated

Sophisticated

Sophisticated

Sophisticated

Sophisticated

Charity & Public Sector

72%

14%14%

Energy &Renewables

80%

20%

Finance & Insurance

18% 17%

65%

Media &Advertising

40%

60%

Pharmaceutical& Healthcare

s

27%

73%

39%15%

46%


5 Why organisations use social media

Organisations have different motivators for using social media. These different driving factors are affected by each organisation’s target audience and objectives for using social media.

Objectives for using social mediaThe objectives of greatest importance to most respondent organisations are establishing their external presence (‘increased organisational presence’) and enhancing the reach of their marketing message to consumers (highlighted by Finance & Insurance and Technology respondents). These objectives correlate with the first two phases of social media engagement and serve as the building blocks on which subsequent levels of social media engagement are based.

Using social media for two-way interaction with customers, improving customer engagement and customer relationship management is of some importance. These objectives build on the initial, externally focused stages of social media engagement of ‘presence’ and ‘one-way push promotion’ to a more developed phase of social media use that allows genuine interaction with social media users.

Gathering enhanced data to refine products or services is overall, the least important objective of organisations. Interestingly, a small but significant number of organisations are taking advantage of the opportunities that social media presents for using ‘big data’ and ‘behavioural analytics’ to better understand and cater to customers. The Professional Services and Manufacturing industries have the highest proportion of respondents who regard gathering data as a ‘primary purpose’ of their social media use. This represents the ultimate stage of engagement of the five phase model.


34%21%

14% 14% 17%IMPROVED CUSTOMER ENGAGEMENT

21% 21% 20% 21%17%

IMPROVED CUSTOMER RELATIONSHIP MANAGEMENT

25%33%

17% 11% 14%ENHANCED REACH OF MARKETING ACTIVITIES

14% 15%25%

15%

31%

GATHERING ENHANCED DATA TO REFINE PRODUCTS AND SERVICES

What does your organisation see as the primary purpose for its use of social media (regardless of whether or not this has yet been achieved)?

Most Important More Important Important Less Important Least Important

38%27%

19%10% 6%INCREASED ORGANISATION

PROFILE


Internal use of social media Within organisations, particularly from the Technology, Telecoms, Pharmaceuticals & Healthcare and Finance & Insurance industries, the primary use of social media is to share knowledge and for internal announcements.

43%

22%

32%

3%

Sharing knowledge

Organising events

Others

Internal announcements

For what purposes does your organisation use social media internally?

Targets for social media useCustomers and prospective customers are the primary target audience for organisations in the Technology, Finance & Insurance and Telecoms industries. Organisations do, however, target multiple audiences which include the media, potential employees and suppliers.

Who are your organisation’s primary target audience for its external social media postings?

Potential Employees Media Suppliers

Market in GeneralCustomers

35%

27%

18%16%

4%


614% of organisations that responded to our survey have not started to use social media, giving the following reasons for not doing so:

Barriers to entry

‘Perceived risk’ is seen across the board as the main concern when organisations consider using social media. Unsurprisingly, the industries most likely to refrain from using social media due to ‘perceived risk’ are from the more regulated industries such as Finance & Insurance. Interestingly, 50% of organisations that refrain from using social media due to ‘perceived risk’ come from the Advertising & Publishing sector.

A range of industry organisations consider social media to be ‘not appropriate to their industry’. In each case, however, other organisations from that industry have an active social media presence, demonstrating that no industry is consistently considered to be off limits to social media use.

The highest proportion of organisations that consider social media use to be inappropriate for them to use are from the Agriculture and Mining & Construction industries, closely followed by the Finance & Insurance and Energy & Renewable industries.

Energy & Renewables industry respondents indicate more than any other sector that they do not use social media because of a lack of internal resources, yet they also have one of the highest percentages of ‘sophisticated’ use of social media.

Why does your organisation not use social media?

Not appropriate to the industry

Perceived risk

Lack of resources

Participation managed by group company

38%27%

31%4%

Social Networking

76%Microblogging (e.g., Twitter, Weibo)

55%Video Sharing

52%

Blogs

36%Photo sharing (e.g., Flickr, Instagram)

22%

Social Networking Aggregation

7%Other

6%

Internal Social Networking

39%

Crowdsourcing/crowdfunding

2%


A variety of forms of social media are being used by companies, some more popular than others. Social networking, microblogging and video-sharing are the most favoured social media platforms for organisations.

The industries using the greatest variety of social media platforms are Technology, Telecoms, Finance & Insurance and Pharmaceuticals & Healthcare.

Types of social media and how they are used

7What types of social media platforms does your organisation use?

Global

Regional/Local

Global and Regional/Local

82%

16%

2%

Some organisations use specific social media platforms to reflect particular regional interests (for example Weibo in China and Xing in Germany). However, recognised international platforms are used by the vast majority of organisations, with Facebook, Google+ and LinkedIn being the most popular and most frequently updated.


Does your organisation use global, local or regional social media platforms?

Types of social media and how they are used

Decentralised

19% Coordinated regionally

24% 37%

Centralised

Run by appointed local employees

20%

The frequency of social media posts made by organisations varies across social media platforms and across industries. Daily users of Facebook are overwhelmingly from the Finance & Insurance industry. LinkedIn is used daily by a number of organisations in the Technology and Finance & Insurance industries. Google+ is used more frequently on a daily basis by the Technology industry.

More organisations coordinate their social media activities centrally, with regional coordination being the second most popular method, particularly in the Finance & Insurance and Telecoms sectors.


Who in your organisation is able to post to external social media platforms on behalf of your organisation?

38%

Dedicated social media personnel 49%

Specific authorised personnel

9%

Senior executives

4%

Other

How are your organisation’s social media activities coordinated?


More than a quarter of the respondent organisations that have chosen not to use social media say they have not done so due to the perceived risks. However, such risks are also a concern for organisations who are using social media.

What are the risks?The greatest perceived risks of social media use are:

• Bad PR

• Risk of sensitive or confidential information being disclosed

• Loss of control over brand image

• Breach of privacy obligations

• Breach of third party intellectual property rights/inappropriate use by staff

Interestingly, respondents overall are less concerned about the risks around breaches of securities law and other regulatory risks.

8 The perceived risks and how they are managed


What are your organisation’s biggest concerns about engaging with social media?

To manage these risks, organisations implement policies or guidelines, limit the people who can post to social media and monitor their social media profile.

Most Concerning More Concerning Concerning Less Concerning Least Concerning

Inappropriate use by staff Bad PR

Breach of securities laws

Misuse of own or other brands or trademarks

Other regulatory risk

Risk of sensitive or confidential information being disclosed

Loss of control over brand image

Breach of embargo and sanctions laws

Breach of privacy obligations

Breach of third party intellectual property rights

Defamation/Libel

28%

31%

24%

20%21%

35%

21%15%

20%

39%

38%

27%

33%

23%

20%23%21%

27%

14%

17%

25%

26%26%

17%

20%

29%26%21%

25%24%

26%21%

21%15%

12%

23%

21%21%18%

19%

27%

23%

11%

10%4%

4%7%

10%

10%9%5%

8%

20%

14%

5%


Social media guidelines78% of respondents indicate that their organisations have a social media policy or guidelines on the use of social media by their own personnel, with 10% in the process of implementing one.

The main focus areas for social media guidelines and policies are:

Use of personal

social mediaaccounts

Compliancewith regulatoryrequirements

Monitoring of use

Compliance with

privacy laws

Use by employeesof the organisation’sintellectual property

Disciplinary consequences

of inappropriateuse of social media

Requirements for compliance with securities laws

Confidentiality obligations of

staff

Prohibitions oninappropriate

behaviour/content

Responsibility for the implementation and enforcement of social media policies is most commonly allocated to marketing/sales departments. This is fairly uniform across all respondent industries and correlates to the level of concern organisations have about reputational and brand risks. Multiple departments frequently share responsibility for social media policies. Interestingly, few organisations involve the legal department in the implementation of their social media policy. Given the level of concern about the unauthorised use of sensitive information, it is surprising how little organisations involve their Risk & Compliance or IT departments in the monitoring and enforcement of social media guidelines.

....Outsource social media?

....Use internal social media experts?

....Do Both?

48% 47%

5%

Does your organisation...


Control of social media contributions One way that organisations manage the risks of social media use is by controlling the posts that appear on social media and who can make those posts.

71% of organisations only permit specifically authorised personnel to post to the organisation’s social media accounts.

A high proportion of organisations (54%) allow employees to make posts about the organisation to the employee’s personal social media accounts, but control the use of personal social media accounts through social media policies.

Where this is allowed 21% of organisations require approval of the content and 53% have specific guidelines in place.

Where personnel are allowed to post information about the organisation on their own social media pages, the postings generally:

• Disseminate marketing material

• Promote the organisation’s presence in various locations

• Increase personnel engagement

Very few organisations just use external social media experts to take care of their social media activities.

As a general rule, organisations do not vet social media contributions. However, more Finance & Insurance organisations internally vet social media contributions than in other industries. The Technology industry is least likely to vet postings.

Marketing of the organisation’s

products or services

Use of the organisation’s

confidential information

Use of the organisation’s

intellectual property

Discussions of theorganisation’s

securities

31%

27%

27% 15%


Improving and developing a social media presence requires organisations to identify their social media successes and failures. Doing this requires social media to be monitored and social media strategies to be regularly audited.

Monitoring of social media profiles90% of organisations monitor their social media profile on various sites and platforms. Monitoring activities generally focus on the unauthorised use of data - protection of data and compliance with third party confidentiality obligations are the two highest priorities in monitoring compliance - and compliance with securities and employment law. Breach of industry codes of conduct and industry specific advertising regulations are other areas of focus.

9 Monitoring social media use and success

Does your organisation monitor any of the following?

At least annually Every 2 years Other

66% 31% 3%


How often does your organisation review its social media policy?

The value of monitoring social media use and compliance is evident from the fact that nearly half of the respondents have as a result changed their social media policies within the last 12 months for a variety of reasons:

43% Changed policies to take advantage of opportunities not previously exploited

22% Changed policies to expand the use of social media to new platforms

10% Changed policies in response to a specific incident

25% Changed policies in response to a perceived increase in risk arising from social media use

How often does your organisation audit its social media strategy?

Does your organisation monitor the profiles of competitors or related organisations on social media?

60% of organisations also have specific social media complaints processes to facilitate swift and appropriate responses to inappropriate usage and address complaints and comments.


Evaluating social media strategiesEvaluating social media strategies is essential for organisations to improve their social media use and develop greater levels of interaction and engagement with customers and other social media users.

A significant number of respondent organisations carry out regular social media audits although others only carry out audits reactively. Organisations in the Finance & Insurance and Telecoms industries are more likely than organisations in other industries to have scheduled regular audits.

59%

Annually Every 2 years

Other

21% 20%

What are others saying about you?The majority of respondents monitor the profiles of competitors and / or related organisations on social media to see what is being said about their organisations and activities.

YES

NO

78%

22%

In-bound and out-bound content licensing, including advisory, transaction and disputes

Marketing and advertising advice

Industry expertise, particularly in highly regulated areas

Privacy and data protection advice

Risk management including UDC, content moderation, copyright infringement, risk of defamation, copy and user engagement

Content regulation licensing requirements, child protection, quotas and content rating

Social Media in the wokplace

Baker & McKenzie has a world leading dedicated practice in the dynamic and converging communications and digital media sector. Our multi-disciplinary Social Media Practice brings together the strengths of our Privacy, IP, IT, Commercial, Corporate, Regulatory, Employment, Tax, Competition and Disputes experts to provide a full range of domestic and cross-border advice with specialist expertise in this dynamic area.

The depth of our industry knowledge combined with our international reach enables us to provide pragmatic commercial advice to clients who use social media or provide social media platforms.

For more information on how we can help you and to obtain a copy of the ‘Social Media: the opportunities and constraints in Southeast Asian Emerging Markets’ report, please contact:

Anne-Marie AllgrovePartner, Sydney+61 2 8922 5274anne-marie.allgrove @bakermckenzie.com

Anna GamvrosPartner, Hong Kong+852 2846 2137anna.gamvros @bakermckenzie.com

Ken ChiaPartner, Singapore+65 6434 2558ken.chia @bakermckenzie.com

Francesca GaudinoPartner, Milan+39 2 76231 452francesca.gaudino @bakermckenzie.com

Steve HolmesPartner, London+44 20 7919 1151steve.holmes @bakermckenzie.com

Michael SchmidlPartner, Munich+49 89 5 52 38 155michael.schmidl @bakermckenzie.com

Theo LingPartner, Toronto+416 865 6954theodore.ling @bakermckenzie.com

Brian HengesbaughPartner, Chicago+1 312 861 3077brian.hengesbaugh @bakermckenzie.com

Guillermo CervioPartner, Buenos Aires+54 11 4310 2223guillermo.cervio @bakermckenzie.com

How we can help

Sharon Byrne at +44 20 7919 1486 or [email protected]

or contact one of our team

© 2014 Baker & McKenzie. All rights reserved. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.

This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

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