Read this report to learn how to harness the power of managed online communities to increase ROI and build relationships with your customers. Unlike other marketing programs, online communities allow businesses to engage with customers through a combination of expert content and online community interactions. Throughout the Customer Lifecycle - from Awareness to Advocacy – clients achieve measureable results with real-time data and insights.
2008 SOCIAL MARKETING ROI REPORT
AND BENCHMARK GUIDE
Prepared in January 2009 byTable of Contents
3 Executive Summary
5 Background
7 Purpose of this Study
7 Study Methodology & Scope
9 Findings - Overall ROI Results
12 Findings - Consumer Satisfaction
14 Findings - Brand Affinity and Loyalty
16 Findings - Advocacy and Word of Mouth
17 Results Summary
18 Implications & Concluding Thoughts
20 Appendicesa. Footnotes/Referencesb. Survey QuestionsPAGE 3 OF 24
Executive Summary
Powered creates social marketing programs that help brands connect and build relationships with their customers through managed online communities. Unlike other marketing programs, online communities allow businesses to engage with customers through a combination of expert content and online community interactions. Throughout the Customer Lifecycle - from Awareness to Advocacy - clients achieve measureable results with real-time data and insights. Powered's managed online communities provide the benefits of social networking with engagement marketing, which result in a high conversion to product purchase, greater affinity for the brand and key insights into consumer behaviors.
Since 1999 Next Century Media (NCM) Global has been focused on measuring the advertising effectiveness of non-traditional advertising approaches. NCM conducted its first study of Powered social marketing programs in 2006 and found that Powered communities delivered an average of $55 for every $1 invested by the brand.
In this year's study - using the same methodology - Powered communities delivered an average of $60 for every $1 invested, a 10% increase. The dollar return was calculated by aggregating the self-reported dollars spent by consumers on the sponsor's brand since engaging with the Powered community.
YEAR OVER YEAR ROI COMPARISON OF ALL ADVERTISERS6563
6060
ROI
5555
502006 2007 2008
From 2006 to 2008, the ROI of Powered social marketing sites has increased by 10%.These ROIs have consistently outperformed the Direct Marketing Association and 1Marketing Management Analytics ROI estimates for all of direct marketing and 2non-CPG mass media advertising for the past 3 years NCM has conducted this study.
2008 POWERED SOCIAL MARKETING ROI REPORT AND BENCHMARK GUIDEPAGE 4 OF 24
In addition to the ROI results, some of the most significant findings attributed to Powered's online communities for 2008 include:
??Purchase Intent: Two-thirds of the respondents stated they were more likely to purchase to sponsoring brands products and/or services as a direct result of the learning experience offered in the community.
??Brand Affinity: Two-thirds of respondents indicated an improved brand perception of the sponsoring brand.
??Brand Loyalty: 63% of respondents stated that they had a more positive opinion of the sponsoring brand.
These findings come at a time when the marketing industry stands at a crossroads, questioning all of its existing approaches, and seeking solid footing with which to go forward. The rapidly-evolving future is changing everything we used to know about media and about consumers.
3The broader implication of these findings when viewed in the context of all of the studies conducted by NCM since 1999 is that marketing approaches which give something of value to consumers without asking anything in return, appear to form a very promising class of persuasive communications. These types of programs could provide part of the solution marketers are seeking with which to navigate into the future. NCM has referred to this class of communications as "True Sponsorship".
2008 POWERED SOCIAL MARKETING ROI REPORT AND BENCHMARK GUIDEPAGE 5 OF 24
Background
Powered provides a solution that enables brands to apply the principles of social networking and engagement marketing to the consumer purchase process. In the Powered approach, the brand offers consumers a site that combines managed online communities with education oriented experiences related to a brand's products. The site is an extension of the core brand site. Or, the site may also be sponsored by a brand on a publisher's site. The consumer is offered - for free - a variety of... [download for more]
