Tuesday, December 01, 2015

Social Media Advertising




Social Media helps find businesses find potential clients by using users own shared information to identify interest and their behavior. It proactively targets users even before they begin their search. Whereas Paid Search is a great advertising medium for driving users to a business based on user’s own intent. Social networks are constantly gathering enormous amounts of user data allowing businesses to target beyond the general demographic and geographic data. Social media’s success can be contributed to advanced targeting options, reliable conversion tracking, and a huge presence on mobile devices. These advanced targeting options allow marketers to provide a level of personalization that wasn’t possible before and can be broken down into four buckets:
Interest Targeting

Social media allows marketers to understand audiences self-reported interests, activities and the pages and users they have engaged in. It is offered by Facebook, Twitter, LinkedIn and Pinterest.

 
Behavioral Targeting

It provides an insight into the users behavioral patterns such as the purchasing behavior or the preference of the device that they use. It is offered by Facebook, Twitter and LinkedIn.

 
Custom Targeting

Marketers can also reach an audience by uploading a list of email addresses, phone numbers, or usernames and it serves really well when you have known group of business that you would like to target. It is offered by Facebook and Twitter. 

 
Lookalike Targeting

It is also convenient to reach people who are similar to an audience you care about and can serve as a great acquisition tool. It is offered by Facebook and LinkedIn.

 

Market Size:

Social media advertising spend in 2015 was approximately around $8Bn and is expected to grow to $18Bn by 2019. Facebook and Twitter are still the biggest players in the social media market with Facebook. Facebook desktop ads have 8 times higher Click-through-rates (CTRs) whereas its mobile ads have 9 times higher CTRs. Whereas Twitter has shown average engagement rates of 1-3 percent. Both of these channels are producing results much higher than the traditional banner ads. Social Media has become a real, tangible driver for sales and marketing departments and even though the current spend for social media advertising is around 1% of the overall marketing budget, it is expected to go up to 5% in the next five years.

 

According to McKinsey & Co there are two reasons why social media is still such a mystery for the executives. First because of its nebulous nature since it’s so difficult to know how to really influence the customer and secondly there is no measure of social media’s financial impact. It is important to note that the impacts the consumer journey. But the fact that social media can influence customer journey at every stage does not mean it should. It entirely depends on the company and industry and some touch points are more important that than others. Here are some of the ways social media impacts the customer journey.

 

Impact on consumer decision journey:

 

At the start of the journey the trigger that can help a consumer to consider a brand product can come from a Facebook posting that a user bought. Consumer can also evaluate a brand or a product based on a review or comment that the other users posted on a blogs. Most companies are also enabling e-commerce ability to buy directly from these platforms. Marketers are also expanding the post purchase behaviors of the consumers through platforms that talk about new uses and ways and sharing those and rating those. Marketers are then using the closely bonded consumers and offering coupons and incentives to enhance brand loyalty.

 

Monitor:

Companies are now able to monitor in a scientific way all the various points in a consumer journey through conversations about the brand, ratings for the brand. They can all be measured through sentiment trends over time, overall mentions overtime and understanding the works associated with the brand and the competitors or ideas for new products through user suggestions or complaints.
Tools are becoming easier to use and the problem is converting the ideas into products.

 

Respond:

It is important to get engaged and respond to those conversation to address crisis where consumers are making claims that are inaccurate to understand the root of the problem and getting a ahead of the that and then engaging those parties to work through a solution to show them that you care in public forum. This can mitigate damage that can spread very quickly. In addition basic customer can also be achieved where people can post a question and gather a response to enhance the service.

 

Amplify:  

It can also be used to have consumer to pass along referrals or recommendation to encourage others to do the same after they bought a product by posting reviews or comments. Consumers can also help with being the advocate for the brand by posting their feelings and likes about the brand. Fostering communities where people can share their experiences can also help marketers establish deeper connections.

 

Lead:

To pen consumer’s mind to new possibilities, ideas, brands that you never looked at before can be done through social media. It can be done through samples that can be shared with some consumers who can then talk about it and can turn into a best recommendation. Being able to send targeted offers to certain targeted consumers and can find people who are more likely to post and use them for broader viral feed that can increase your consumer base. Interestingly of all is soliciting consumers feedback to drive internal innovation, changes in service model and packaging product.   Social media also provide the consumers the idea that there are people and communities behind these brands that consider your feedback critical.

 

Designing a Social Media campaign

 

Marketers should define a clear vision, determine the optimal required returns, create a unique organization plan and develop a detailed implementation road map that manages risks as well.

 

Strategy: Before starting a campaign, a marketer should clearly define the required goals which make it easier to measure and analyze results. Some of the most common goals could be brand awareness, drive more traffic, establish loyalty and improve conversion rates.

 

Plan: The campaign should be tailored to the organization and should be a good continuation of the brand’s existing social voice and style. To initiate the plan, perform research of the existing social followers across networks to identify areas for improvement. Then choose the best social network that suits your needs as various networks serve different purposes. Understanding where your target audience spends time and then research different campaigns that worked in similar situation that you can leverage. Once all these factors have been decided the next step is to allocate budget and resources.

 

ROI: Marketers should bring the analytical rigor that moves beyond the ‘fans’ and the ‘follows’ to measure the business impact on the bottom line by using performance metrics, benchmarks and tools  across the various social media channels.

 

Cross Channel Promotion: social media can be improved through other marketing channles to achive the desired results as a result of the integrated marketing campaign. There are two benefits from doing this: 1) consumers are reminded about your brand or product through other channels; 2) those who are not active on social media are also informed.

 

 

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