How Social Media Changed The Ad Game

by: @MDGadvertising B HOW SOCIAL MEDIA Almost every industry has been disrupted by the rise of social media. Nowhere is that more true than in the world of advertising. CHANGED Marketers have had to change nearly every aspect of their business to keep up with consumer and technological trends. Here, we take a look at some of those key changes. THE AD GAME CHANGED TT. Today, social media makes up the largest portion of how consumers ..-----1>» CUSTOMERS spend their time online. Marketers have had to adjust online campaigns to target consumers where they devote most of their attention. Social Network/Blogs Online Games 22.5 % Email Videos/Movies Search 9.8 % 7.6 % 4.5% 4% 111 TOP ONLINE CATEGORIES by Total Internet Time > 3.3% 3.2% 2.9% 2.6% Classifieds/Auctions Current Events/Global News Instant Messaging Software Manufacturers 35.1% "Other" includes multi-category entertainment, adult, Internet tools/web services, mass merchandiser, corporate information, sports, universities, research tools, and more. Other* :CHANGED Even several years into the era of Web 2.0, advertisers are still seeing increased demand for online marketing services. At the same time, nearly all other ad media are losing priority. ..----})► PRIORITIES Ad Media Clients Are Most Focused on According to U.S. Ad Agencies Spot TV Internet/Digital Spot Radio Out of Home Print 45% •L •h. •IL 41% 35% 34% 23% 24% Q1 Q2 Q3 16% 2011 2011 2011 13% 10% 8% 6% 4% 2% 1% 1% CHANGED Thanks to clients' changing priorities and the ever-evolving social media landscape, CMOS at some of the top Fortune 500 companies forecast that spending will nearly double current levels in the next five years. ..I-----I►► SPENDING Planned Social Media Spending as Share of Marketing Budget According to CMOS Social Marketing Budget Changes from 2010-2011 13% N/A Social Media Spending in the Next 12 Months 45% Social Media Spending in the Next 5 Years Increased 36% Current Social Media Spending Stayed the Same (7.1% 10.1% 17.5% 1% Decreased 5% |||| Don't Know :CHANGED. Old ad models aren't sustainable on new media. With a new set of TACTICS popular platforms, traditional advertisers have had to adopt new tactics. MOST-USED TACTICS FOR ENGAGING SHARE SOCIAL FOLLOWERS 1. Social share buttons in email or on website 2. Unique content exclusively for fans/followers 3. “Like" buttons on brand website 4. Brand videos on YouTube, Vimeo, etc. 5. Monitoring social media for brand reputation CHANGED. Generating leads and boosting sales are no longer the top aim of II----->►► METRICS marketers. Social media offers a slew of new metrics to measure marketing success. Ways Marketers Measure Social Media Marketing Success Numbers linking as friends, followers, likes Incremental sales attributable to social media Qualified leads from social media (60% (35% (25% 39% (30% 18% Sharing, forwarding, retweeting, or posting brand content Visits or time spent with branded social content Brand awareness/favorability mdgadvertising.com SOURCES: EMARKETER, STRATA, CHIEF MARKETER, AMERICAN MARKETING ASSOCIATION, DUKE FUQUA SCHOOL OF BUSINESS twitter: @MDGadvertising ma9