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October 14, 2010

Benchmarking Social Marketing


Plans For 2011
by Sean Corcoran
for Interactive Marketing Professionals

Making Leaders Successful Every Day


For Interactive Marketing Professionals

October 14, 2010


Benchmarking Social Marketing Plans For 2011
Interactive Marketers Should Set A Long-Term Social Marketing Plan Now
by Sean Corcoran
with Emily Riley and Angie Polanco

Exec ut i v e S u mma ry
Despite the tremendous hype and even some pockets of success, our recent survey shows that social
media marketing is still at an early stage. In fact, most interactive marketers aren’t as far behind as they
may think. Most have not established strategies and organizational changes. Yet they’re starting to make
progress and, by this time next year, the majority of organizations will have their plans in place. To
ensure they don’t fall behind the curve, interactive marketers should set their plans now. This includes a
long-term social media marketing strategy, dedicated resources, budgets, policies, and training.

tabl e of Co n te nts N OT E S & R E S O URCE S


2 Social Media Marketing Is Still Nascent Forrester used data from the May 2010 US
Social Marketing Still Has Many Internal Interactive Marketing Online Survey in the
Roadblocks writing of this report.
4 Interactive Marketers Are Making Progress In
Social Marketing Efforts
Related Research Documents
“Defeating Social Clutter”
Pioneers Lead The Way: The Burned, The Cool, October 4, 2010
The Brave, And The Obligated
“The ROI Of Social Media Marketing”
Companies Are Investing In Social Marketing
July 16, 2010
recommendations
9 Sow Now And Reap The Rewards Later “No Media Should Stand Alone”
December 16, 2009
10 Supplemental Material

© 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
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2 Benchmarking Social Marketing Plans For 2011
For Interactive Marketing Professionals

Social MEDIa marketing is still nascent


The use of social technologies for marketing is still at an early stage. While a few companies like Best
Buy and Starbucks have created an explosion of social media participation, many other companies
have yielded smaller yet promising gains through activities as disparate as a corporate blog, YouTube
channel, or Facebook presence. Yet despite all of these initiatives, most interactive marketers are still
trying to determine how to incorporate social media marketing into their larger IM plans. In fact,
only 39% of interactive marketers at large companies (with $500 million or more in revenue) have a
long-term social media marketing plan for their organization (see Figure 1).

Figure 1 Most Interactive Marketers Are Lacking Long-Term Social Marketing Plans

“Are you currently using, piloting, or expecting to pilot a long-term social marketing
plan for your organization?”

Currently implementing or piloting 39%


Plan to pilot in the next 12 months 36%
No plans to use 25%

Base: online US interactive marketing executives of companies with $500 million or more in revenue
(percentages may not total 100 due to rounding)

Source: May 2010 US Interactive Marketing Online Survey


57591 Source: Forrester Research, Inc.

Social Media Marketing Still Has Many Internal Roadblocks


Social media marketing is not a vertical channel but a set of tools that enable collaboration across
virtually all marketing departments including advertising, customer service, public relations, and
market research. Yet not one of the five major groundswell objectives is being used by even half of
interactive marketers at large companies (see Figure 2).1 Technology adoption is similarly slow as
only 24% have a community platform in place and only 19% have a listening platform in place (see
Figure 3). Why such slow adoption? Because there are still significant roadblocks such as:

· The overall value of social media marketing is often still unclear. Measurement is a hot topic
in the social media space, and for good reason. Many interactive marketers are still trying to
determine not just the ROI of social media marketing, but where it ranks in priority with other
marketing initiatives.

· A new way of thinking is required. While money is needed for social media marketing,
marketers can’t buy engagement with earned media like they buy reach with paid media.2 The
brand must earn trust and commitment instead. This means senior management must lead a
new way of thinking combined with time, organization, and resources.

October 14, 2010 © 2010, Forrester Research, Inc. Reproduction Prohibited


Benchmarking Social Marketing Plans For 2011 3
For Interactive Marketing Professionals

· Organizational change is needed. Most large companies are organized in silos by nature,
but social media marketing requires a flatter structure. Therefore, interactive marketers often
act as the “change agent,” leading social efforts not just across marketing but often across the
organization (sometimes even in the form of “social strategist” or similar title). Also, since the
value of social media marketing is often unclear and it touches so many different departments,
determining where people and budgets should come from can become an uncomfortable
political issue internally.

· Many organizations are risk averse. Companies can be risk averse for a variety of reasons.
Whether it be the fear of negative feedback published publicly, government regulations, or just a
general conservative culture, many companies are not willing to dip their toes in such a nascent
and uncontrolled space.

· Most companies are not early adopters. Success in social media marketing often equates to an
aggressive adoption of new technologies and most companies don’t fall into that category. Only
15% of interactive marketers from large companies identified their company as “very aggressive”
in adopting new marketing technologies while 48% identify their companies as not aggressive
(see Figure 4).

· Some companies still have little to no interest. Despite all of the hype, there is still a significant
amount of companies that have mostly or even totally shunned the use of social media
marketing. In fact, 25% of interactive marketers from large companies don’t have a long-term
social media marketing strategy and don’t have plans to implement one in the next 12 months.

Figure 2 Interactive Marketers Use Social Technologies For Many Objectives

“Please indicate which you are currently using, piloting, or expect to pilot in the next 12 months”

Currently implementing or piloting Plan to pilot in the next 12 months No plans to use

Systems to encourage consumers to


spread company messages 43% 19% 37%

Social technologies to research and


understand your consumers 42% 31% 27%

Processes to evoke word-of-mouth marketing


through your most enthusiastic consumers 39% 33% 28%

Social tools like forums to allow customers to


support each other 33% 21% 46%

Ways to involve customers in idea-building for


better products and services 30% 33% 37%

Base: online US interactive marketing executives of companies with $500 million or more in revenue
Source: May 2010 US Interactive Marketing Online Survey
57591 Source: Forrester Research, Inc.

© 2010, Forrester Research, Inc. Reproduction Prohibited October 14, 2010


4 Benchmarking Social Marketing Plans For 2011
For Interactive Marketing Professionals

Figure 3 Adoption Of Social Platforms Is Still Low Among Large Companies

“Thinking specifically about your social marketing initiatives, please indicate which you are currently
using, piloting, or expect to pilot in the next 12 months”

Currently implementing or piloting Plan to pilot in the next 12 months No plans to use

Community platforms like Jive or Lithium 24% 31% 45%


Technologies to track customer interactions
Listening platforms like Nielsen BuzzMetrics and 19% 24% 57%
TNS Cymfony to monitor customer intelligence
Social publishing platforms like Vitrue and
Spredfast to help market on social networks 18% 24% 58%

Base: online US interactive marketing executives of companies with $500 million or more in revenue
Source: May 2010 US Interactive Marketing Online Survey
57591 Source: Forrester Research, Inc.

Figure 4 Most Large Companies Aren’t Very Aggressive At Adopting New Marketing Technologies

“How aggressive is your company when it comes to investing in marketing technology?”

Very aggressive: We frequently adopt emerging 15%


technologies
Somewhat aggressive: We adopt technologies 37%
that prove effective on other industries
Not very aggressive: We adopt technologies in 33%
line with trends in our industry
Not at all aggressive: We only adopt tried and 15%
true technologies

Base: online US interactive marketing executives of companies with $500 million or more in revenue
Source: May 2010 US Interactive Marketing Online Survey
57591 Source: Forrester Research, Inc.

interactive marketers are making progress in social marketing efforts


While social media marketing is nascent, there are many companies making strides. Much of this is
being driven by a group of early pioneers blazing trails in areas such as testing, budgeting, allocating
resources, and setting guidelines. With these companies leading the way over the past few years
many more are now in the planning process, 36% of interactive marketers from large companies
plan to implement a long-term social marketing strategy in the next 12 months. In fact, 2010 is the
year of social organization for many companies, and by this time next year most large companies
will have their long-term strategy, organization, training, and budgets in place.

October 14, 2010 © 2010, Forrester Research, Inc. Reproduction Prohibited


Benchmarking Social Marketing Plans For 2011 5
For Interactive Marketing Professionals

Pioneers Lead The Way: The Burned, The Cool, The Brave, And The Obligated
Many companies are already leading the way and interactive marketers should learn from their
progress. Some aspects of social media marketing will be custom to the organization, but interactive
marketers don’t have to entirely reinvent the wheel. There are four types of companies that have had
early success in social media marketing that others can learn from:

· The burned. Some companies have learned the power of social media the hard way. Marketers
are sure to have heard stories featuring a company failure that was passed virally through social
platforms (e.g., United Airlines, Dominos, Motrin, Nestle, etc.). Some of these companies have
actually learned from the problem and made changes to rectify the issues. United Airlines
actually uses the YouTube sensation “United Breaks Guitars” as a training video.3 The point?
Don’t wait around to be burned by social media marketing; get involved now. If you do get
burned, use the lesson internally to help garner senior support for future endeavors.

· The cool. Some brands are naturally popular with audiences that use social media and have
no problem generating earned media. However, it’s still important for these brands to embrace
social media marketing strategically and empower their employees to converse on their behalf.
For instance, Starbucks has made better customer relationships a major company focus, and it
has leveraged its social media applications such as MyStarbucksIdea, its iPhone application, and
its 10 million-plus fans on Facebook to help create products, interact with customers, and now
even tie in its loyalty program to enhance its business results. If you have a popular brand, you
will find significant efficiency in using social media to energize fans to spread the word for you.

· The obligated. Some industries (like retail, travel, and high-tech) found themselves involved in
social media marketing whether they liked it or not. For instance, retail companies found their
way into social media marketing mainly due to the popularity of ratings and reviews. Many of
these companies have found success as applications like ratings and reviews are not only popular
with consumers but they typically have a positive effect on sales.4 Interactive marketers who
have a fear of negative reviews need only look to search analytics and listening platforms to see
how well competitors are faring who have implemented such applications.

· The brave. Some companies recognized the power of social media marketing without being
cool, burned, or even obligated by their customers. For example, Intuit started its social media
marketing program for TurboTax by creating “The Tax Rap” starring Vanilla Ice. The team had
to sell the idea to the founder before it could move forward, but it went so well that the team
now has carte blanche to move forward with whatever programs make sense, and it’s been able
to get resources allocated and policies in place to govern all social media marketing

© 2010, Forrester Research, Inc. Reproduction Prohibited October 14, 2010


6 Benchmarking Social Marketing Plans For 2011
For Interactive Marketing Professionals

Companies Are Investing In Social Marketing


Other companies are now following these pioneers and investing in social media. By 2014, social
media spend in the US will surpass $3 billion.5 More than one out of four large companies increased
their social media marketing budgets in 2010 (see Figure 5). This trend will continue in 2011 as
27% plan to increase their budgets in the next 12 months (see Figure 6). But it’s not just budgets that
are growing as companies are also investing in their organizations and resources. We found that
companies are in the process of coordinating their social media marketing efforts by:

· Empowering employees through training and policy guidelines. More than four out of five
online US adults are participating in social media.6 That means many of your employees are
probably very comfortable using social technologies to share information with others — both
personally and professionally.7 Many companies recognize both the power and the risk when
their employee base has the ability to publish information so easily. Therefore, implementing
social media policies and training is a crucial step. Yet less than half of interactive marketers
from large companies say they have trained employees for social media marketing (see Figure 7).
And less than half currently have a social media policy in place (see Figure 8).

· Dedicating full-time resources. Mature social media marketing requires internal resources.
Currently, 36% of large companies have hired full-time dedicated resources for social media
marketing (see Figure 9). Sometimes this is simply a community manager focused on executing
across a handful of applications, and sometimes it’s a social media strategist owning the long-
term strategy and implementation of social technologies across the organization. Other large
companies are adding full-time resources, and 28% plan to add them in the next 12 months.

· Incorporating social media marketing into existing roles. Three out of 10 large companies
have part-time resources working on social. It’s common to have people featuring social
applications in existing programs or campaigns. Also, due to the tough economy many
companies are strapped for resources and are forced to have employees wear many hats.
Companies will continue this pattern as 24% plan to add part-time resources over the next year.

· Forming cross-team governance councils. Because social technologies can be leveraged across
virtually any company department, it’s important to have those department heads come together
to set governance policies and share best practices. Right now about three out of 10 large
companies currently have such a council and one-quarter plan to implement one in the next 12
months.

October 14, 2010 © 2010, Forrester Research, Inc. Reproduction Prohibited


Benchmarking Social Marketing Plans For 2011 7
For Interactive Marketing Professionals

Figure 5 Social Marketing Budgets Have Grown At Large Companies

“How does your total US social media marketing budget


in 2010 compare with the 2009 budget?”

Increased
significantly
Don’t know 5%
15%
Decreased slightly Increased slightly
6% 21%
Decreased significantly
3%

Stayed the same


this year
51%
Base: online US interactive marketing executives of companies with $500 million or more in revenue
(percentages may not total 100 due to rounding)

Source: May 2010 US Interactive Marketing Online Survey


57591 Source: Forrester Research, Inc.

Figure 6 Social Marketing Budgets At Large Companies Will Continue To Grow In 2011

“How does your total US social media marketing budget in 201


compare with the 2010 budget?”

Increased
significantly
Don’t know 5%
18%

Decreased slightly Increased slightly


5% 22%
Decreased significantly
3%

Stayed the same


this year
48%
Base: online US interactive marketing executives of companies with $500 million or more in revenue
(percentages may not total 100 due to rounding)

Source: May 2010 US Interactive Marketing Online Survey


57591 Source: Forrester Research, Inc.

© 2010, Forrester Research, Inc. Reproduction Prohibited October 14, 2010


8 Benchmarking Social Marketing Plans For 2011
For Interactive Marketing Professionals

Figure 7 Most Large Companies Are Training Employees For Social Marketing

“Are you currently using, piloting, or expecting to pilot


social media best practices training for employees? ”

Currently implementing or piloting 46%


Plan to pilot in the next 12 months 18%
No plans to use 36%

Base: online US interactive marketing executives of companies with $500 million or more in revenue
(percentages may not total 100 due to rounding)
Source: May 2010 US Interactive Marketing Online Survey
57591 Source: Forrester Research, Inc.

Figure 8 Most Large Companies Are Setting Policies For Employees

“Thinking specifically about your social marketing initiatives, please indicate which you are
currently using, piloting, or expect to pilot in the next 12 months”

Currently implementing or piloting Plan to pilot in the next 12 months No plans to use

Internal social marketing policies and/or 43% 30% 27%


communities for employees
External social marketing policies and/or 34% 34% 31%
communities for brand advocates

Base: online US interactive marketing executives of companies with $500 million or more in revenue

Source: May 2010 US Interactive Marketing Online Survey


57591 Source: Forrester Research, Inc.

Figure 9 Most Large Companies Are Dedicating Full-Time Resources To Social Marketing

“Thinking specifically about your social marketing initiatives, please indicate which you are currently
using, piloting, or expect to pilot in the next 12 months”

Currently implementing or piloting Plan to pilot in the next 12 months No plans to use

Full-time resource(s) to manage 36% 28% 36%


social media initiatives
Part-time resource(s) or contributors 31% 24% 45%
to manage social media initiatives
A social media governance council
or center of excellence 31% 25% 43%

Base: online US interactive marketing executives of companies with $500 million or more in revenue

Source: May 2010 US Interactive Marketing Online Survey


57591 Source: Forrester Research, Inc.

October 14, 2010 © 2010, Forrester Research, Inc. Reproduction Prohibited


Benchmarking Social Marketing Plans For 2011 9
For Interactive Marketing Professionals

r ecomme n d a t io n s

Sow now and reap the rewards later


Interactive marketers are in the process of getting their social media marketing plans and
resources in place. Any company not creating a long-term strategy, setting budgets, allocating
resources, or setting policy is already falling behind. Interactive marketers should follow the
companies that were brave in social media marketing and implement now rather than wait and
learn the hard way. To ensure success, interactive marketers should do the following:

· Be the “change agent” that brings teams together. Interactive marketers often find
themselves in the middle of planning social media strategies and policies — whether they
are marketing related or not. Take advantage of this position and work to orchestrate the
right departments such as customer service, public relations, legal, and IT. This may take
time and even may fall outside of personal goals but in the long run will pay off in marketing
results because they will lean so heavily on an organization that has fewer silos.
· Find and empower your HEROes. Since social media participation is already extremely
high and so easy to use, there’s a good chance people in your company are already using
social applications for work purposes. These types of people tend to be great assets for social
marketing as they’re already proactively learning how they can help with existing work. Use
Forrester’s HERO Index to identify the people in your organization and provide them with the
right tools and guidelines to succeed.
· Connect and learn from pioneers. Many companies have already blazed a trail in social
media marketing. The good news is, due to the nature of social media, that information
is often not hard to find. Look internally to your HEROes that already understand the
technologies. But don’t stop there, reach out to indirect competitors or other companies with
success and learn from their success and failure. Get active with social media such as Twitter,
Linkedin, communities, and blogs to learn from those currently heavily involved.
· Share budget across departments. Even though social media marketing budgets
are growing, there’s still some confusion and even infighting occurring around budget
ownership. This is especially true for technology implementation for things such as listening
and community platforms. It will be essential to work across teams and even find ways to
share budgets in the future as these tools will benefit more than just one department.
· Listen and share feedback across the organization. Companies that have implemented
listening platforms are often surprised at where they find their customers talking about them
and what they’re actually talking about. This “social intelligence” is often a wide range of
data that can affect marketing, public relations, customer service, and more. Implementing a
listening platform and sharing this data across teams can help break down silos and educate
teams that are hesitant to get involved.

© 2010, Forrester Research, Inc. Reproduction Prohibited October 14, 2010


10 Benchmarking Social Marketing Plans For 2011
For Interactive Marketing Professionals

· Use a Balanced Scorecard for measurement. Measuring social media marketing is a hot
topic and a difficult challenge for most companies. The reality is that there are opportunities
to measure direct financial results (i.e., ROI) of social applications but the benefit of these
tools is much broader as it can also help with brand attitudes and risk management.
Companies working through measurement challenges should develop a Balanced Scorecard
that includes all possible metrics for success.8
· Recognize that the POST method is still relevant. Forrester’s POST method forces you to
think about how your audience behaves and makes you choose an objective before jumping
into the latest hot technology. Interactive marketers should continue to use this method to
determine which applications make sense.
SUPPLEMENTAL MATERIAL
Methodology
Forrester fielded its May 2010 US Interactive Marketing Online Survey to 309 Interactive Marketing
professionals. For quality assurance, panelists are required to provide contact information and
answer basic questions about their firms’ revenue and budgets.

Forrester fielded the survey in May 2010. Exact sample sizes are provided in this report on a
question-by-question basis. Panels are not guaranteed to be representative of the population. Unless
otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes.

If you’re interested in joining one of Forrester’s research panels, you may visit us at http://Forrester.
com/Panel.

ENDNOTES
1
The five major Groundswell objectives are listening, talking, energizing, supporting, and embracing. Source:
Charlene Li and Josh Bernoff, Groundswell: Winning in a World Transformed by Social Technologies, Boston:
Harvard Business Press, 2008 (http://groundswell.forrester.com).
2
Marketers must balance earned, owned, and paid media to succeed in an adaptive marketing environment.
See the December 16, 2009, “No Media Should Stand Alone” report.
3
Source: Jared Wiener, Zach Fannin, and Kristi Berner, “‘United Breaks Guitars’: Hot on YouTube”, World
News’ Daily Blog, July 9, 2009 (http://blogs.abcnews.com/theworldnewser/2009/07/united-breaks-guitars-
hot-on-youtube.html).
4
When it comes to social commerce, ratings and reviews have been a runaway success. See the February 25,
2010, “TechRadar™ For eBusiness And Channel Strategy Professionals: Social Commerce, Q1 2010” report.
5
Social media has the largest forecasted CAGR growth of any online media over the next five years. See the
July 6, 2009, “US Interactive Marketing Forecast, 2009 To 2014” report.

October 14, 2010 © 2010, Forrester Research, Inc. Reproduction Prohibited


Benchmarking Social Marketing Plans For 2011 11
For Interactive Marketing Professionals

6
Now more than four in five US online adults use social media at least once a month, and half participate in
social networks like Facebook. While young people continue to march toward almost universal adoption
of social applications, the most rapid growth occurred among consumers 35 and older. See the August 25,
2009, “The Broad Reach Of Social Technologies” report.
7
Groundswell technologies — social, mobile, video, and cloud — put tremendous power in the hands of
customers. Only empowered employees can respond at the speed of empowered customers — and they’re
often information workers outside of IT. We call these innovative information workers HEROes — highly
empowered and resourceful operatives. The HERO Index is a new tool we have developed to measure
just how empowered and resourceful your own employees are. Our data reveals that some industries (like
technology products and services) and job descriptions (like marketing and nonretail sales) harbor more
HEROes than others. See the June 18, 2010, “The HERO Index: Finding Empowered Employees” report.
8
The demand has never been greater for marketers to validate and measure the benefits delivered by their
increasing investment in social media. Marketers often frame this question as, “What is the ROI (return on
investment) of social media?” but financial metrics are just one way of evaluating social media marketing
programs. Social media marketing delivers a wide range of benefits to organizations that are beneficial
in the short term and long term in ways both quantitative and qualitative. To properly value the impact
of their social media marketing investments, interactive marketers must align their objectives, metrics,
targets, and strategies across four perspectives — the financial perspective, the digital perspective, the
brand perspective, and the risk management perspective. See the July 16, 2010, “The ROI Of Social Media
Marketing” report.

© 2010, Forrester Research, Inc. Reproduction Prohibited October 14, 2010


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57591

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