Wharton Interactive Media Initiative

How to build a social media strategy

Steve Ennen Managing Director, Wharton Interactive Media Initiative Lecturer in Marketing ennen@wharton.upenn.edu
www.whartoninteractive.com

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WIMI is a global research center working with leading companies and researchers •  Brings a passionate data-driven perspective to media businesses (content distribution and information acquisition) in a way that no other business school in the world can match.

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Distinguishes itself with a tight focus on the interaction between content provider and user, capitalizing on the wealth of individual-level data that is exploding at the crossroads of commerce, technology, and entertainment.

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Is dedicated to bringing world-class research rigor to better understand these complex interactions in order to drive new business strategies and tactics that will reshape the media landscape.
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HOW TO BUILD A SOCIAL MEDIA STRATEGY

So, you want a social media campaign? Do you know why?

HOW TO BUILD A SOCIAL MEDIA STRATEGY

•  Today we’ll look at the questions you need to ask to build a social media strategy •  But first, let’s look at the correlation between buzz and business

HOW TO BUILD A SOCIAL MEDIA STRATEGY
BUZZ AND BUSINESS
•  To earn a free burger, Facebook users download the Whopper Sacrifice Facebook application and dump 10 friends unworthy of their weight in beef. After completing the purge, users are prompted to enter their addresses and the coupons are sent out via snail mail. •  In about 60 days, nearly 240,000 Facebookers had been defriended for the sake of a hamburger. That amounts to more than 7,000 coupons for free Whoppers. •  Facebook stopped the campaign because of privacy concerns.

HOW TO BUILD A SOCIAL MEDIA STRATEGY Buzz and business

http://www.nytimes.com/2009/01/29/fashion/29facebook.html?_r=2&pagewanted=all

HOW TO BUILD A SOCIAL MEDIA STRATEGY
BUZZ AND BUSINESS

HOW TO BUILD A SOCIAL MEDIA STRATEGY
BUZZ AND BUSINESS

No evidence of increased sales

HOW TO BUILD A SOCIAL MEDIA STRATEGY
Nevertheless, there is no denying the reach and penetration of social media •  More than 100,000,000 blogs
•  90% of consumers trust peer recommendations
July 2009 Nielsen Global Online Consumer Survey

•  More than 400,000,000 on social networks, worldwide •  Most benefits/principals are the same for internal & external •  Facilitated by ‘ubiquity’

HOW TO BUILD A SOCIAL MEDIA STRATEGY

HOW TO BUILD A SOCIAL MEDIA STRATEGY
Iyengar, Van den Bulte, Valente
 “Opinion Leadership and Social Contagion in New Product Diffusion”

vs
“Managerial Calculus”
Network Intervention – In each city, the physician with the highest in-degree is targeted and is persuaded to increase his/her prescription by 10 units Detailing Intervention – Each physician is given an additional detail.

Higher
Effec+veness
 Influencers
work
“locally”!


HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 1: Understand the environment / Landscape analysis
Gain a greater understanding of social media •  Blogs (internal/staff, external ecosystem) •  Communities/Social Networks •  Discussion forums •  Ratings and reviews •  Sharing •  Video •  Widgets •  Wikis •  Traditional media platforms

HOW TO BUILD A SOCIAL MEDIA STRATEGY
Master the ecosystem

EVENT

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 1: Understand the environment / Landscape analysis
•  Other campaigns, partnerships, presence? •  Regulated industry? •  Rules (privacy) •  Trends -Are you too far ahead of the adoption curve?

HOW TO BUILD A SOCIAL MEDIA STRATEGY

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 1: Understand the environment / Landscape analysis
•  Other campaigns, partnerships, presence? •  Digital landscape audit – internal and external

HOW TO BUILD A SOCIAL MEDIA STRATEGY
External

HOW TO BUILD A SOCIAL MEDIA STRATEGY
Complementary efforts

HOW TO BUILD A SOCIAL MEDIA STRATEGY

HOW TO BUILD A SOCIAL MEDIA STRATEGY

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 2: Develop a strategy/philosophy
•  What are you trying to accomplish?

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 2: Develop a strategy/philosophy
•  Have you clearly defined a desired outcome? Timelines? •  Where do you want to lead the customers/clients? •  What do you want them to do? •  What is your role as a brand? •  How do these relate to your business?

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 2: Develop a strategy/philosophy
Social media audit - Have your surveyed your company’s current social media assets? •  What are the tools at your disposal -Enterprise tech landscape
-Vendor relationships, rankings ratings, print, analytics

•  Resources needed (staff and other)? •  What is the time commitment (regular attention is vital)? •  What is the time horizon (3 months, 6 months, year)? •  What are the costs (soft and hard)?

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 2: Develop a strategy/philosophy
•  Have you a clear plan for ownership (CMO, IT, Sales, Communications, Legal)? •  Who are the key stakeholders? •  Must you convince the C-suite to take social media seriously? •  What is the organizational process: who in your organization needs to be involved? •  How will you execute?

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 2: Develop a Strategy/philosophy
•  What is the company policy? -Internal -External •  Have you clearly communicated your strategy/policy? -What are the legal ramifications (internal and external) •  Are there clear guidelines? -What are the ramifications for violating guidelines? •  Terms of service

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 3: Analyze your audience What is the “value” to them?
How will they respond to… • Social Networks - Broad-based community involvement - Branded communities •  Blogs •  Rankings recommendations •  User-generated content

HOW TO BUILD A SOCIAL MEDIA STRATEGY
Tirunillai and Tellis “Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance”

Stock Price (adjusted) UGC Chatter

Cha$er Short
 
Term
Stock
Returns
**

Cum

Consumer
 Opinion
 Short
 Cum 
Term

Nega2ve
 
Cha$er Short
 Cum 
Term

Nega2ve
 Expressions Short
 Cum 
Term

3.8

4.8

-2.1

-3.6

-2.9

-3.9

-3.7

-4.7

“You
can
take
UGC
to
the
Bank”


HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 4: What is your listening strategy?
•  Do you have a plan for the conversation?

-Rankings ratings and reviews
•  Do you need vendor monitoring? Radian6 Bazaarvoice ListenLogic •  Is internal monitoring possible? -Community/ social media manager? •  Reporting – what do you do with what you hear? •  Do you have a clear Response Strategy?

HOW TO BUILD A SOCIAL MEDIA STRATEGY Step 5: What is you measurement strategy?
•  What are you measuring? •  How will you measure success?
- Can you clearly define metrics for successes and failure? -  Can you determine ROI, ROE?

•  What are the mechanisms for gathering the data? •  How do you determine what’s important? •  How will you analyze the data? •  Who owns it? •  How does the information move across the organization?
-Dashboards, reports, meetings, enterprise media

HOW TO BUILD A SOCIAL MEDIA STRATEGY
Example: Blog measurements
•  Conversation activity •  Number of conversation-relevant links •  Conversation reach “number of unique visitors (monthly) across sites in the conversation” •  Site relevance •  Author/site authority

HOW TO BUILD A SOCIAL MEDIA STRATEGY

HOW TO BUILD A SOCIAL MEDIA STRATEGY Example: Scorecard

HOW TO BUILD A SOCIAL MEDIA STRATEGY Five steps
Step 1: Understand the environment / Landscape analysis Step 2: Develop a strategy/philosophy Step 3: Analyze your audience. What is the “value” to them? Step 4: What is your listening strategy? Step 5: What is you measurement strategy?

HOW TO BUILD A SOCIAL MEDIA STRATEGY Resources
•  IAB Social Media Metrics http://www.iab.net/media/file/SocialMediaMetricsDefinitionsFinal.pdf •  Branded Communities thinkpassenger.com •  Media info: MediaPost.com •  Buzz monitoring www.Technorati.com www.blogpulse.com •  Twitter Tweetdeck Klout

C ONTA C TS

Steve Ennen, Managing Director ennen@wharton.upenn.edu

www.whartoninteractive.com wimi-mail@wharton.upenn.edu Twitter: @whartoninteract

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