Monthly Archives: November 2014

Companies Spend on Social, but Can’t Track Results

I am currently spending a lot of time with the CMO survey – a survey conducted annually by Christine Moorman at Duke University for McKinsey.  Though the response rate is relatively low (8%), the data show some interesting trends in digital marketing and social media.  I particularly like the data on marketing spending and marketing measurement. I am using some of this content in my forthcoming book Social Media and Mobile Marketing Strategy.

One key piece of research is that companies are increasing social media spending, which is verified by other sources. However, companies are having trouble measuring the impact of those strategies.

Here is the latest data from the CMO Survey on social media spend:

Social media spending is currently 9.4% of marketing budgets and is expected to increase 128% to 21.4% in the next five years (see Figure 1). However, the 351 marketing leaders responding to August 2014 survey overwhelmingly report that proof lags spending and only 15% of marketers report their companies can show the impact of social media using quantitative approaches.

What’s the buzz? Companies experienced a 25% percent increase in sales through the Internet in the last year—from 8.9% to 11.3% of sales. There does appear to be a sizable opportunity in reaching customers through the Internet that underlies this spending push. Consistent with this view, digital marketing, more broadly, is expected to increase 10.8% in the next year, while traditional advertising budgets are predicted to decrease 3.6%. In other words, there is a signal in all this buzz.

Figure 1. Social media spending as a percent of marketing budget

social_media_line_600notitle

The CMO Survey can be found here: CMO SURVEY

Twitter for Business

This excellent video describes how Twitter can be used by businesses with some concrete examples.   The video was created by Brian Wee-Teng On, a graduate student in my class: Social Media and Mobile Marketing Strategies. This course is the capstone in Lubin’s MS in Social Media & Mobile Marketing program.

The assignment asked students to create videos around a particular topic.  Students were limited to 7 minutes and could use a variety of media.  Here is the assignment:

Video Presentation Assignment

Each student in the class will create a brief (Max 7 minute) video presentation on a topic related to the content of the course. Please examine the syllabus and determine which weeks you would be willing to do your presentation. In the second week of the semester turn in a list of your top 5 week choices and you will then be assigned one of those weeks for your presentation. Videos are due at 4:30 PM on the Monday before the class meets.

Video Presentation Content

Begin by examining the topic for the week you chose on the syllabus. Each week that we meet online has video topics in parentheses. You will choose ONE topic on which to create a video for the class. I would recommend that you type the words related to your topic into Google to look for interesting research that relates to your topic. One option is to choose a company that you can use as a case study example that helps to illuminate your topic or you can focus on a research study related to your topic. Please be sure to have metrics to make your points if you present company info. Use pictures and give solid examples backed by data when possible.
Guidelines for Videos

  1. Each week that we meet online students will post videos with an in-depth view of a topic. The topics are listed in the syllabus in parentheses with the word video following. Use the text as a starting point for the topic, but consider additional research and examples beyond the text. The video and 1 question are to be posted by Monday at 4:30 the week of your assigned video.
  2. Write a script for your video presentation that explains a particular social media or mobile topic and gives examples with data. You may present research findings, case studies, how-to information, current news (only if really different and interesting), new sites/applications of significant note , best practices or strategies that will be important in the future. Try to find material that is broad based and useful to many industries. Do not pick data that simply update statistics on what we already know, such as how many smart phone users exist.
  3. Choose material that has measurement associated with it. For instance if you choose a case study of a company using social media, make sure you have data to support the effectiveness of the strategy. Please don’t just tell us about cool things you find, though we can talk about these at other times.
  4. Write 1 key question for the class that you will post with your video for people to discuss based on your video. The question can have a few parts, but keep it focused.
  5. Stay current with material from the past year.
  6. Make sure the information you present is legitimate and from a reasonable source.
  7. Present the sources in your post on Blackboard so we know where the information came from.
  8. Upload your video to YouTube and provide the link to the class on Blackboard.