"Business Case for Social Media" provides an overview of why and how business marketers can use social media to create demand for their brand. Also includes 5 reasons every marketer should embrace social media, a methodology for measuring ROI and a social media marketing case study. Feedback is appreciated! Email me if you want a .pdf.

1. The Business Case for Social Media
Steve Latham 2009

2. 2
Welcome to Social Media!
What the #*%&!# ???

3. 3
My goals for today…
Provide some useful data points
Explain WHY social media should matter to you
Explain HOW to measure value from social media
Present a social media case study

4. 4
Consumer Behavior is Changing…
Web accounts for >30% of media time (1)
Online is becoming the medium of choice
 #1 medium among under 35 (2)
 20+ million seniors online (growing fast)
50% of online time entails social media
 Now surpasses Email in global reach(3)
 Fastest growing online sector
(1) Credit Suisse
(2) Forrester
(3) Nielsen Online
We’re #2!

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Who Is Using Social Media?
Source: Pew Internet 12/08
Fastest Growth

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Internet Usage Favors Social Media
Watch Internet (streaming video)
Buy or sell products from other consumers
Read a blog
Comment or forward online ad to someone
Submit a rating or review of a product or service.
Use social networking sites
Publish a blog or personal journal
Upload video you created to Internet
34%
10%
7%
20%
27%
26%
29%
31%
Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey
Social Media is platform for:
• 34% watching video
• 31% buying and selling online
• 26% submitting a rating
• 7% uploading a video
% reflects all online users

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Social Media is Here to Stay
Social Media platforms are growing quickly
That said, the players may change…

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Threat or Opportunity?
Social media  giving up control
While some are threatened…
…others are excited!
Crisis = Danger + Opportunity(1)
Savvy marketers are embracing the
new paradigm
"We've learned that the more in control we are,
the more out of touch we are with our
customers."
- A.G. Lafley, CEO of P&G on how the consumer is in
control of media and advertising consumption
"We've learned that the more in control we are,
the more out of touch we are with our
customers."
- A.G. Lafley, CEO of P&G on how the consumer is in
control of media and advertising consumption
(1) The two characters for Weiji or “Crisis” in
Mandarin are often said to represent “danger”
and “opportunity.” Chinese dispute the
translation.

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What Are Companies Doing Today?
Source: UMASSD Center for Marketing Research 2008
90+% lift

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How Important is Social Media?
Source: UMASSD Center for Marketing Research 2008
80+% lift

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83%
60%
52%
63%
69%
75%
Opinion of friend or acquaintance
Review in newspaper, magazine or TV
Information on the manufacturer’s Web site
A review by a known expert
Consumer reviews on a retailer’s site
Consumer reviews by users of a content site
1. Sales! Customers are easily swayed (but not by
you)
 90% of consumers seek advice before making a purchase
 1 in 3 who read reviews rely on them for purchase decisions
 Ratings / reviews in e-commerce sites produced 15-100% lift
5 Reasons to Embrace Social Media
Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey. *
Trust in Peers Trumps All Others

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2. UGC participants are better
customers (1)
 Post readers: 30% more likely to purchase
 Contributors: 80% more likely to purchase
 Have higher loyalty and advocacy
(1) Coremetrics study 2008
5 Reasons to Embrace Social Media
3. You are already Involved in Social
Media
 Discussions about your brand are already
happening
 If you participate, you can shape outcomes
 CoAir example:http://flyertalk.com/forum/showthread.php?t=786742

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5 Reasons to Embrace Social Media
4. Strengthen your brand &
culture
 Fosters culture of transparency,
trust and coolness!
 Adds progressive element to your
brand
5. Enhance communications
 Community relations
 Investor relations
 Crisis / corporate communications

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How Do We Value Engagement?
Determine how Actions  Intent
Forecast how Intent  $$$
 Forecast the % that will buy at each stage
Do the math and apply across each set of actions
Use common sense to normalize results
Action Value
Visits Indicates awareness
Registrations Indicates consideration
Participation Indicates preference
Contribute Content Indicates action
Tell A Friend Indicates loyalty

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Case Study
Client: Stage Stores
Audiences: female teens
in underserved markets
Objective: drive in-store
purchases
Strategy: back-to-school
social networking site
Blog
Comments

16. 16
Campaign Results
Significant traffic to the site
 25,000 visits in 6 weeks
Deep level of engagement
 Registrations (20% of visitors)
 Blog reviews (25% of visitors)
 Comments / Postings (100+)
Compelling Value

500% ROI (based on npv)

8,000 opt-in emails

Feedback and validation
Compelling Value

500% ROI (based on npv)

8,000 opt-in emails

Feedback and validation

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Getting Started in Social Media
Participate in online discussions
 Start participating on other sites
 Be transparent: http://flyertalk.com/forum/showthread.php?t=786742
Get on LinkedIn, Facebook and Twitter
 Low-cost way to reach and engage audiences
 Can be integrated to amplify your efforts
 Make sure you have resources (people) to manage it!
Invite a dialogue on your site
 Invite users to Rate, Review and Participate in discussion
 Market like crazy!

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In Closing…
Social media is not the holy grail or a panacea for all ills…
…but it is a powerful force that WILL impact your business
Take a pragmatic approach that incorporates:
 Strategy
 Analytical rigor
 Creativity
 Common sense
Let’s stay in touch!
 Check out our blog http://blog.spurinteractive.com
 Join me on
 Facebook
 LinkedIn
 Twitter (stevelatham)

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About the Presenter
Steve Latham is the founder and CEO of Spur Interactive, a
strategic interactive marketing agency. In this role, Steve
has planned and managed successful campaigns for leading
brands, including ConocoPhillips, FedEx Kinko's, Southwest
Airlines, The Scooter Store, and Medical Hair Restoration.
Steve is an accomplished industry lecturer and an active
member of the business and non-profit community. Steve’s
articles on interactive strategies have been published by
MediaPost and iMedia Connection and he has been quoted
in PR Week, Fortune and CNN.com.
Steve received an MBA from Harvard Business School and
a BBA from the University of Oklahoma. You can find Steve
on Facebook and Twitter (stevelatham) or email him at
steve@spurinteractive.com.