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Roi So Essay

1927 words - 8 pages

Measuring Value from Social Media
Steve Latham
Spur Digital
January 2008

Outline
Industry Trends
Digital media landscape
Why Social Media
Barriers to Online Investment
Metrics
ROI analysis
Case study

2

© 2007 Spur Digital LP. All rights reserved.

Industry Trends
Global online ad spend > $80 billion by 2011(1)
$42 billion to be spent in U.S.
Online = 11.4% of U.S. ad budget (up from 6.6% in 2006)

2007 online video ad spending to exceed $650mm(2)
$1.7 billion by 2009
Video ads will be 8% of Internet ad spend (2.3% today)

Media fragmentation is proliferating
In 1966 5 mediums dominated
In 1986 there were 12
In 2006, 30+ mediums were defined

“Prime-Time” ...view middle of the document...

Co-Reg

Social Media Has Gone Mainstream
Internet Usage Increasingly Favors Social Media
34%
31%
29%
27%
26%
20%

Watch Internet (streaming video)
Buy or sell products from other consumers
Read a blog
Comment or forward online ad to someone
Submit a rating or review of a product or service.
Use social networking sites
Publish a blog or personal journal

10%
7%

Upload video you created to Internet
% reflects all online users

Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey

$2.5bn

Social networking revenue

Social Networking is here to stay:
• 34% watching video
• 31% buying and selling online
• 26% submitting a rating
• 7% uploading a video

$350mm
2006

2010

*Source: emarketer.com August 2006

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© 2007 Spur Digital LP. All rights reserved.

Trust in Peers Trumps All Other Sources
Online Consumers Turn to Friends or Acquaintances for Information
Opinion of friend or acquaintance using
product or service

83%
75%

Review in newspaper, in a magazine, or on TV

69%

Information on the manufacturer’s Web site

63%

A review by a known expert

60%

Consumer reviews on a retailer’s site

52%

Consumer reviews by users of a content site

50%

Information at online consumer opinion sites

49%

Online reviews by editors of content sites
Information in chat rooms discussion boards
An online review by a blogger

37%
30%

Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey. *
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© 2007 Spur Digital LP. All rights reserved.

User Generated Video is Exploding
User Generated Video
• User-Generated Video made up
47% of the total online video
market in the US in 2006
• By 2010, 55% of all online video
content will be user-generated (44
billion video streams)
• Video sharing campaigns being
utilized to engage customers
Screen Digest January 15, 2007

9

© 2007 Spur Digital LP. All rights reserved.

Users want to be
• Engaged
• Educated
• Entertained

So What’s the Problem???
If Social Media is so great, why aren’t more brands
and agencies using it?

(beyond the issue of inappropriate content)

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© 2007 Spur Digital LP. All rights reserved.

Barriers to Online Investment
2007 McKinsey study of 410 marketing execs found
the primary barriers to online investment were:
52% insufficient metrics to measure impact
41% Insufficient in-house capabilities
33% Difficulty of convincing upper management
24% Limited reach of digital tools
18% insufficient capabilities at agency

2 of the top 3 relate to ROI measurement
Metrics
Convincing upper management (Business Case)

…which is why we are here today!
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© 2007 Spur Digital LP. All rights reserved.

Web 1.0 Metrics (sample dashboard)
D aily Downloads

1,000

Daily Visits

6,000

900

5,000

800
700

4,000

600
500

3,000

400

2,000

300
200

1,000

100
-

7/ 0
5

4/ 0
5

1/ 0
5

8/ 0
5

5/...

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