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How Social Media Influences Consumer Behavior

Michael Lazerow, CEO & Founder, Buddy Media Linda Abraham, CMO & Co-Founder, comScore

Nearly in 5 minutes online is spent on social networks.
2008 35
Social Networking

1

2009

2010

2011

30 25

Search/Navigation Retail Communications (Email/IM) Other Content

Time Spent on Key Categories Online
Worldwide Hours per Month (Billions)
Source: comScore Media Metrix, March 2007 - October 2011

#3

Facebook¶s worldwide site rank

55%

Facebook¶s global penetration

3 1

in 4 minutes on social networking sites are spent on Facebook

in 7 minutes spent online are spent on Facebook

Source: comScore Media Metrix, October 2011

Propel Crowd-Sources Its Holiday Content

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Proprietary.

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Lexus Uses Facebook To Raise Money For Charity

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Proprietary.

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Walmart Provides Gift Recommendations From Friends

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Proprietary.

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Best Buy And Leading Retailers Made Effective Use Of Facebook To Promote Their Black Friday Doorbusters

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Proprietary.

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The Fan Page Is A Great Starting Point« But Remember That Most Brand Exposures Happen On The News Feed!

25% 10% 17% 21% 27%
Homepage/Newsfeed Profiles Photos Apps/Tools All Other

Share of Time Spent on Facebook
8
Source: comScore Mediabuilder, U.S., May 2011

© comScore, Inc.

Proprietary.

You¶ve got fans. And they¶ve got friends.

How can you measure the impact on both?

Those you seek might be different than those who seek you
Starbucks: Demographic Analysis
% of Starbucks Store Visitors vs. % of Brand-Exposed Starbucks Facebook Fans

Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 65+ 2% 5% 10% 5% 15%

20% 29% 26% 19% 20% 19%

31%

% of Starbucks Fans
© comScore, Inc. Proprietary.

% of Starbucks Store Visitors
10
Source: comScore Social Essentials and comScore Plan Metrix, U.S., May 2011

Brands control the three basic levers that will determine social media marketing success.
Many brands don¶t consider these intermediary steps

Get Fans
(Who are they?)

Brand Messages Reach Fans in News Feed

Fans ³Talk About´ News Feed Content

News Feed Content Spreads to Friends

Goal: Max Reach, ROI

1. Cut-Through 2. Engagement 3. Amplification

Earned Value Can Be Significant
Walmart: Paid Media vs. Earned Media Analysis
Social Media Impressions (MM) vs. Display Ad Impressions (MM)

Estimated Value of Earned Impressions Based on $3.55 CPM

275.4

$417,000
117.3

Walmart Earned Impressions (MM) Paid Impressions (MM)
Source: comScore Social Essentials, U.S., October 2011

© comScore, Inc.

Proprietary.

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When Messages Are Good, Fans Will Tell Their Friends

2011 Holiday Retail Promotion Analysis
Ratio of Friends of Fans Reached to Fans Reached for Leading U.S. Retailers

3.5x
Lift from Promotions

3.4x

1.76
2.7x

1.53

2.2x

0.92 0.67 0.31 0.34 0.50 0.45

Amazon

Best Buy Week Ending Oct. 19
© comScore, Inc. Proprietary.

Target

Walmart

Week Ending Nov. 30
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Source: comScore Social Essentials, U.S., October and November 2011

Friends of Fans Tend to Behave Like Fans (Birds of a Feather)

2011 Holiday Retail Promotion Impact Analysis: Week Ending Nov. 30
Percentage of Brand-Exposed Fans & Friends of Fans Who Visited Retailer Website

64%

36% 27% 8% 13% 18% 9% 12% 12% 14% 22% 21%

Amazon

Best Buy Total Internet
© comScore, Inc. Proprietary.

Target Friend of Fan
14

Walmart Fan

Source: comScore Social Essentials, U.S., November 2011

In Retail, Social Promise is Delivering

Black Friday: Web Traffic Analysis for Leading Retailers
Unique Visitors (MM) on Black Friday 2011 vs. Black Friday 2010

61%

14.5

32% 61% 11%

9.0 7.3

9.6 6.6 4.1 4.6

5.1

Amazon

Walmart Black Friday 2010
Proprietary.

Best Buy Target Black Friday 2011
Source: comScore Social Essentials, U.S., November 2011

© comScore, Inc.

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So remember, to optimize social media 1. know your fans 2. know their friends 3. right creative message 4. analyze, optimize, «monetize

Thank You!
Questions? Contact michael@buddymedia.com labraham@comscore.com

Follow our presenters on Twitter: @Linda_Abraham | @lazerow