Social Media Spend Grows … Measurement Remains an Issue

CMO’s Know Social Media Impacts Their Business, But Not Sure How Much

Insight  ⇒  Social Media Brand Usage Will Grow

A new CMO study by McKinsey released in August shows that brands from B2C to B2B will be increasing digital spend at the expense of traditional media

 cmo study aug 2014 digital increase

Click to Enlarge Any Graph

 

Digital spend increases will go across all sectors

 cmo study aug 2014 digital increase all sectors

 

Social Media gets a large increase forecasted to be up 40% (as a percentage of budgets) in the next 12 months and over double in the next five years

 cmo study aug 2014 SMM spend

 

Insight  ⇒  However, Issues Remain in Measuring the Impact on Sales

Social Media Still Not Integrated with Marketing Strategy

 cmo study aug 2014 poor integration

 

Only 15% of CMO’s can show quantitative impacts on the business

cmo study aug 2014 biz impacts 

 

Insight  ⇒  Yet, Few Brands are Willing to Increase Human Resources for Social to Improve the Situation

cmo study aug 2014 no SMM resources

 

Do This  ⇒  Invest in Social Media if You Expect Business Impacts and Quantification

  • Social Media is people conversing and sharing/reviewing their opinions on brands … effectiveness is driven by brands interacting on a 1-to-1 basis to achieve positive brand consideration and preference
  • Customer service is a huge aspect of Social Media and human interaction is required to understand the context, in the moment, to solve user issues
  • Measure  what matters … ‘followers’ is a useless metric.  Download the ‘Measure What Matters’ white paper  http://pages.zigmarketing.com/site-pt-measurewhatmatters  to get a good starting framework for measuring Social Media brand impacts 

Not That  ⇒  Don’t Rely on Tech to Solve Social Media Effectiveness Issues

  • While technology can help automate and create efficiency gains, it does very poorly at interpreting context and interacting with consumers
  • Brands only need to look at automated phone customer service solution scores to understand how much consumers abhor talking to automated systems … Social Media automation performs worse

Zig is a Social/Mobile consultancy that drives brand engagement by creating interactive user experiences.  We programmatically reach in-market buyers, at the lowest cost, and move them to conversion.  You can see our work by clicking on the link ⇒ http://www.zigmarketing.com.

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