Date post: | 06-May-2015 |
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Business |
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Irfan Kamal SVP, Digital/Social Ogilvy
Integrated Social Media: Business Impact Study 2011
Dr. Walter Carl Founder and Chief Research Officer ChatThreads
Emerging Hot Topics Part I – #4
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The New, More Pointed Questions
• Social is no longer an afterthought: It’s now where many of our customers spend their time.
• We need to plan budget allocations in 2011 and 2012 around concrete business goals. To that end:
1. Can social media impact sales (spend / consumption)?
2. Which channel combinations are the most effective?
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Situation
• Can social media impact sales?
• Two recent studies with conflicting results
– (+) Edison Research 2011: 24% of surveyed social network users cited Facebook as an influencer of their purchase decisions
– (-) Forrester/GSI Commerce 2011: Social networks drove <1%
sales – based on directly traceable effect/referrer
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Objectives
• Evaluate the purchase impact of social media, by itself, relative to and in conjunction with other channels
• Social media = Facebook (brand page or feed item) Twitter (brand handle or tweet) Online video/Youtube or Facebook Online rating/review Blog
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Methodology: Overview • Category: Quick Service Restaurants (QSR), including the
following 5 brands: KFC, McDonald’s, Subway, Taco Bell, Wendy’s (analysis was category and brand-specific)
• Data (from ChatThreads BrandEncounter™ Platform): Real-time capture of brand touchpoints reported via mobile device (SMS) or Web browser companion button for 7 days, surveys pre/post touchpoint tracking
• Recruitment: Screened for recent QSR visits; active on social media within the past; QSR brand fan/follower status
• Participants: 404 participated on rolling 7-day basis, submitting 5,623 touchpoints between 1/20/11 and 5/6/11 (2 staggered time periods)
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BRANDS Findings Preview: Significant Touchpoint Examples
OOH report examples:
BILLBOARD: [McDonald’s] great billboards with a smiling face that spells out outrageous values
BILLBOARD: [Subway] made me want to buy it
Social media report examples:
FB BRAND FEED: “[Wendy’s] face book post on my wall the burger looks good – ‘Just a friendly reminder that our burgers are made with 100% pure ...’”
FB FRIEND STATUS: “Friends been out at KFC and enjoyed a delicious meal.”
BLOG: People that love taco bell are just blogging at their experience there and people who work there are commenting on how much their company is hiring because of the need for jobs.
REVIEW: This person here really loves KFC and goes there weekly.
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Key Methodology Observations
• To attempt to minimize the impact of fans/followers who already spend more than others, we looked specifically at the relationship between touchpoint exposure and pre- and post- changes in purchase (consumption, spend)
• We looked at a short time frame (1 week) to focus in on the immediate impact of the touchpoints
• Only statistically significant (95% CI, p<0.05) results are reported
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Results Preview: Exposure
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Results: Exposure Volume QSR Media Touchpoints
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
TV ad Word of mouth
(roll up)
OOH Social media
(roll up)
PR (roll up)
Radio Online (roll up)
Print (roll up)
Search Website
Inde
x
Source: ChatThreads BrandEncounter™ QSR Study. n = 5,623 touchpoint encounters. Participants n = 404. Q1-Q2 2011.
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Results Preview: Spend
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Findings Preview: Does Social Media Impact SPEND TREND?
YES.
*Compared to people unexposed to these touchpoints
Social media (KFC) +7x
Social media + OOH (Category)… +1.5x
LIKELIHOOD OF A SPEND INCREASE IS 1.5-7X*
EXPOSURE:
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Findings Preview: Does Social Media Impact SPEND AMOUNT?
Social media + PR (Category)
YES.
WEEKLY SPEND
AMOUNT
+17%
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Results Preview: Consumption
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Findings Preview: Does Social Media Impact CONSUMPTION TREND?
*Compared to people unexposed to these touchpoints
Social media + TV ad (Wendy’s)… +2x
Social media + OOH (Category)… +1.5x
YES.
LIKELIHOOD OF A CONSUMPTION INCREASE IS ~2X*
EXPOSURE:
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Findings Preview: Does Social Media Impact CONSUMPTION FREQ?
*Is the magnitude significant enough to be managerially important?
7 DAY CONSUMPTION FREQUENCY
? UNCLEAR*.
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EXPOSURE
+17% increase in spend (category)
Social+PR Exposure
2x greater likelihood of higher consumption (Wendy’s)
Social+TV Exposure
7x greater likelihood of higher spend (KFC)
Social only Exposure
1.5x greater likelihood of higher spend or consumption (category)
Social+OOH Exposure
3x greater likelihood of higher spend (Taco Bell)
TV only Exposure
QSR Findings Preview Summary: Social Media Purchase Impact
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QSR Study Preview: Conclusions
• Social media, particularly when combined with OOH, PR or TV exposure is associated with significant purchase shifts across QSR – +17% week-on-week spend amount increase – ~2x higher likelihood of consumption increase week-on-week – Multi-channel matters! Only 1 significant result by itself vs.
4 significant in combination with other channels
• Relative to exposure, social media appears to provide strong impact – Evaluate driving purchase by increasing exposure to social +
OOH/PR/TV combinations
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QSR Study Preview: To Explore
• Data across other industry sectors
• Data across online or hybrid sectors (e.g. e-tail)
• Data across extended time periods, to capture longer-term effects (e.g. for TV ads)
• Correlation with specific brand activities within social media
• Larger sample sizes to look at finer interactions
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Thanks, and for More…
• Irfan Kamal,
twitter: @irfankamal
• Dr. Walter Carl,
twitter: @ChatThreads
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Appendix:
Data Collection Detail
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Data Collection Platform: ChatThreads BrandEncounter™
Wendy’s Visited brand’s Facebook page Very positive 8:09 pm; 1/24/2011 Aberdeen, WA
Participant records brand, touchpoint and experience via SMS or browser button. Time/date is auto-stamped. Geo-located.
Pictures of the touchpoint can be added to record.
Participants can also add notes.
1
3
4
5Participant encounters a brand touchpoint. Consumers can record any touchpoint including social, TV, search, print, online ads and OOH.
SOCM
ED
RETA
IL
GAMING
EVEN
TS
SAMPLE
400+ participants recruited through 3rd party proprietary community.
2
“I followed a link they posted on my FB wall”
All brand touchpoints captured, including social, TV, search, print, online ads, OOH (total of 21)