Davenport UniversityPresented to: Dr. GusfaBy: Catina Willis

Social Media Marketing for Business

June 29, 2012

Research Statement

Research Question:Is Social Media Marketing more Cost Effective than Traditional Marketing forBusinesses?

There is evidence to suggest that social media marketing has increased business sales.

What is Social Media Marketing (SMM)

Research Statement:

Research Question:

• Facebook• Groupon• Digg• Pinterest

• Twitter• YouTube

5. Promo Codes

7. Unique landing pages

9. Unique toll free numbers

10. Web Analytics

11. Uniform Resource Locator (URL) links

12. Website traffic

How are Social Media Sales are Measured?

General Motors (GM) Pulls $10 Million

GM says:

“facebook ads don’t work.”GM also pulled Super Bowl ads.

General Motors (GM) ROI 2011

•$10 million on Facebook ad

•3.5 million on one (1) 30 second super bowl ad

•GM’s averages1.7 billion on traditional marketing

•GM profited 3.7 billion from advertising

Ford Motor Company

Ford Motor Company’s Take on Facebook

Ford’s statement: “by using Facebook, shopping activity for the Explorer jumped 104% versus the average shopping lift of 14% following a Super Bowl ad.

Ford’s Take on GM Pulling Facebook Ads

Ford tweeted:

GM doesn’t get social media (Popelka, 2012)

Dell Outlet

You Do the Math!

•Dell has an in-house social media marketing team

•Deal used Twitter for no cost and made $3,000,000

•Dell spent $836 million on traditional advertising and made 61.13 billion

Sony Tweets an Offer to 1,600 Followers

A limited time offer was tweeted providing a 10% discount.

•Sony profited $1.5 millionSony paid zero dollars to use Twitter for this promotion

•Sony spent $892 million for advertising in 2010.

•$831 million went toward traditional marketing channels. $61.30 million was spent on Internet.

Groupon Launches First National Campaign

Gap offers social media users a chance to purchase $50 gift cards at half its price in 2010

•441,000 were sold

•The Gap generated $11 million in revenue

•Gap net sales for 2010 were 14.66 billion

Methodology

Researcher Agree Disagree

Ball, L.More than half of the respondents from a small study of 243 indicated that social media was connected to at least 6% of their sales. The cost was time and 67% indicated they use social media 30-60 minutes per day.

Carr, A.Based on new data from Applied Predictive Technologies (APT), they general see a revenue bump in the "2% range" in a successful promotion from services like Facebook Places and Foursquare.

Fisher, L.A recent study by Comscore found that social media played a big part in a 10% increase of online retail spending.

    

Methodology

Researcher Agree Disagree

Mahoney, S.Based on a sample of 10,000 adults, ForeSee Results reported: only 5% said social media was a primary influence to a store's website

Stelzner, M.A.58% of marketers using social media for more than 3 years saw improved sales. 40% of all survey respondents saw improved sales.

Swallow, E.Augustine Four, the chief digital officer at Omnicom's healthcare "You may lose revenue with Groupons but It’s still a better use than wasting $7.5 million on TV ads.”

    

• SMM is essential for companies to maximize sales like: Dell Outlet, Ford, Gap, and Sony.

• SMM is cost effective because most are free to use and only require a good strategy and time.

• My literature review does support my research question.

Conclusions

THANK YOU!

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