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.
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2 Benchmarking Social Marketing Plans For 2011
For Interactive Marketing Professionals
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?”
Base: online US interactive marketing executives of companies with $500 million or more in revenue
(percentages may not total 100 due to rounding)
· 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.
· 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.
“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
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.
“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
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
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.
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
· 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.
Increased
significantly
Don’t know 5%
15%
Decreased slightly Increased slightly
6% 21%
Decreased significantly
3%
Figure 6 Social Marketing Budgets At Large Companies Will Continue To Grow In 2011
Increased
significantly
Don’t know 5%
18%
Figure 7 Most Large Companies Are Training Employees For Social Marketing
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.
“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
Base: online US interactive marketing executives of companies with $500 million or more in revenue
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
Base: online US interactive marketing executives of companies with $500 million or more in revenue
r ecomme n d a t io n s
· 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.
· 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.
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.
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