from campaigns to capabilities - the impact of social media on marketing and beyond
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8/2/2019 From Campaigns to Capabilities - The Impact of Social Media on Marketing and Beyond
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Christopher Vollmer
Karen Premo
Perspective
From Campaignsto CapabilitiesThe Impact of
Social Media on Marketing and Beyond
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Contact Information
New York Christopher Vollmer
Partner
+1-212-551-6794
Karen Premo
Principal
+1-212-551-6683
Booz & Company
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1Booz & Company
EXECUTIVE
SUMMARY
Booz & Company and Buddy Media, the social enterprise
software leader, teamed up in 2011 to identify the capabili-
ties that companies need to excel in social media. This study,
Campaigns to Capabilities: Social Media and Marketing
2011, incorporated a quantitative survey of 117 leading com-
panies and a series of in-depth interviews with senior execu-
tives from across the marketing and media ecosystem. The
study focused on how leading companies are transforming
their strategies, skills, and processes to enable social media
to play an expanding role in their marketing efforts and in
their enterprises as a whole. Unlike much of the research to
date, which has focused on the tactics that companies are
pursuing in social media, the Booz & Company/Buddy Media
study concentrated exclusively on the capability priorities
associated with social media, and the focused actions com-
panies need to take as their social and digital media activities
increase in scale. As more companies rene their use of social
media, it will dramatically transform how they connect their
brands with consumers, and how they dene and build their
marketing capabilities.
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2 Booz & Company
Burberry Group has a rich heritage
that would make many companies
envious. Founded 156 years ago,
this global purveyor of luxury
apparel has long been dened by anovert Britishness, a trio of instantly
recognizable icons (the trench
coat, the trademark check, and the
“Prorsum” knight logo), and a deft
creativity that ensures its designs are
timeless, yet contemporary. Now
there is a new dening element toBurberry’s success: the creation and
distribution of branded digital and
social media experiences.
Just look at how dramatically
Burberry has reimagined its fashion
shows—once elite, exclusive, and
effectively off-limits to the brand’s
many fans—for the era of social
media. In 2011, Burberry streamed a
live video feed of its spring/summer
and fall/winter shows, distributing itscontent directly to fans on Facebook
(10.7 million as of February 2012)
and to video viewers on Google’s
YouTube (11.0 million unique video
views and about 30,000 subscribers
as of February 2012). Partnering with
Twitter, Burberry also created the“Tweetwalk,” an innovative, real-time
social media experience where every
fashion show element was tweeted
before the models hit the runway.
This gave Burberry’s Twitter followers
(773,000 as of February 2012)
unique “see it rst” access ahead of
everyone including Vogue editor Anna
Wintour. By leveraging the scale and
engagement of Facebook, Twitter, and
YouTube, Burberry has effectively
reinvented its fashion shows ascontent-rich social experiences that
now engage millions of fans and
interested consumers, rather than just
a few insiders.
BURBERRY: A
SOCIAL MEDIASUCCESS STORY
A new defning element to
Burberry’s success is the creation
and distribution of branded digital
and social media experiences.
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3Booz & Company
The ability to tell stories directly to
consumers via social media is also
reshaping how Burberry launchesnew products. When its fragrance
Body debuted in the fall of 2011,
Burberry’s Facebook fans were invited
to a “fan-rst” sampling promotion
that generated more than 225,000
requests in the rst week alone. The
Body video campaign, starring actress
Rosie Huntington-Whiteley and
shot by famed fashion photographer
Mario Testino, premiered not on
broadcast TV but on Burberry.com
and the brand’s YouTube channel,further supported by a launch day
“takeover” of YouTube’s homepage
in 13 countries. Consumers could also
buy the scent with a simple click on
the Burberry Facebook Body tab; in
this way, the brand closed the loop
with its community of fans, taking
them on the digital path to purchase.
What makes Burberry so successful in
social media? The deliberate building
of specic capabilities around
community management, content
development, and real-time analytics
has enabled the company to develop
powerful, direct, and multiplatformconnections with consumers who
want to engage with the brand.
For Burberry, this strategic focus
on marketing innovation has been
transformative. “Burberry is now
as much a media-content company
as we are a design company,” says
creative director Christopher Bailey.
In short, Burberry has been successful
in social media because it rapidly put
in place a new and distinctive set of
capabilities to support the digitizationof its brand and the consumer
experience around it.
Looking at Burberry’s moves—and
those of other innovators like Audi,
Coca-Cola, Diageo, Nike, Procter
& Gamble, and Starwood Hotels &
Resorts Worldwide—it is clear that
social media, in just a few years, has
affected not just how decisions about
the media mix are being made, but
how brand marketing itself is being
prosecuted. The traditional “stop
and start, command and control”
model of brand management is
morphing into a decidedly moredynamic marketing model. It is
always on. It is iterative. It is content-
and people-intensive. It is social by
design: focused on participation and
activation, not just awareness and
consideration. And as Burberry’s
example illustrates, this new model
requires very different capabilities
from those that most companies
possess today.
In Campaigns to Capabilities: SocialMedia and Marketing 2011, three
major capabilities come to the fore:
community management, content
development, and real-time analytics.
For companies in all sectors, the
evolution of these capabilities,
concentrated around the “big three”
social media platforms of Facebook,
Twitter, and YouTube, represents
a major opportunity to generate
business value by building powerful,
lasting relationships with consumers
through digital communities.
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4 Booz & Company
Recommendations. Referrals. Buzz.
Marketers have long known that
consumers value the recommenda-
tions of a trusted friend or expert
more than any form of advertising.
Since the emergence of social diffu-
sion theory in the 1950s, marketers
have sought to harness the power of
social networks and word of mouth
to inuence consumers’ decisions
about what they like and what theypurchase. The importance of social
marketing is continually conrmed by
research—most recently by Nielsen’s
Global Online Consumer Survey,
which showed that 90 percent of con-
sumers trust recommendations from
people they know. Nielsen found that
this social recommendation factor in
fact tops all other media sources and
advertising formats, including TV (62
percent), newspapers (61 percent),
and magazines (59 percent).
Marketers have, however, histori-
cally lacked the key ingredient for
social word of mouth to be a bigger
part of their playbooks. They cannot
generate it at a scale comparable to
conventional mass media. Only now
are the tools available to make it
happen: social media platforms such
as Facebook (850 million users),
Twitter (300 million users), and
YouTube (where 100 million people
interact with one another by liking,
sharing, or commenting on videos
every week). Through social media,
companies can connect with consum-
ers directly at a global, national, or
local level, expanding their reach
through a few well-designed moves or
targeting specic groups of consumers
based on more dened communities
of interest.
The growth of social media among
consumers since Facebook’s launch in
2004 has been explosive. Consumers
now spend most of their digital timethere. According to Nielsen, social
media and blogs account for 23 per-
cent of all consumer activity online.
This is more than twice as much
as the next largest category, online
games, where consumers spend only
about 10 percent of their time. Social
media is becoming the hub of all
digital activity: as the starting point
for engaging with family, friends, and
acquaintances, and beyond that, as a
way to discover content and connectwith brands. Whether it’s a hot article
to read, a must-see video, or a brand
they adore, consumers look for it on
Facebook, Twitter, or YouTube.
“Digital technology has become
the most important, fastest, and
most inuential medium,” says Ajaz
Ahmed, chairman and founder of
AKQA, one of the world’s leading
digital advertising agencies. “Social
networks are now the operating sys-
tems for consumers’ lives. They have
rapidly become indispensable.”
Many companies are naturally
attracted by the promise of a large-
scale media offering that aggregates
self-selected consumers—eager to
share stories, content, and recom-
mendations about brands and
products—and enables the targeting
of these consumers based on actual
preferences and behaviors. Marketers
have responded by increasing their
participation in social media, most
typically via a dedicated presencesuch as a fan page, a newsfeed, or a
branded channel and by incorporat-
ing social media elements into their
marketing campaigns. According to
eMarketer, 80 percent of companies
are using some kind of social media
platform or tool in their marketing
today, nearly double the percentage
in 2008. Advertising on social media
has grown 40 percent per year from
2008 to 2011, and now represents
US$5.5 billion in global advertisingspending, according to eMarketer.
This amount also represents only a
fraction of marketers’ total social
media investment, as it generally does
not include the greater expense associ-
ated with developing and maintaining
a branded social media presence.
THE GROWTH OFSOCIAL MEDIA
“Social networks are now the
operating systems for consumers’
lives. They have rapidly become
indispensable.”
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5Booz & Company
Most companies to date have
focused their social media efforts on
Facebook, Twitter, and YouTube,
rather than on a broad range of social
networks, blogs, and location-based
services. The dominance of these
“big three” platforms, especiallyFacebook, is conrmed by the
Booz & Company/Buddy Media
research. Ninety-four percent of
respondents regard Facebook as
one of their top three social media
platform priorities. Seventy-seven
percent include Twitter in this group.
And 42 percent say YouTube belongs
here too.
Even as their investments grow, most
companies have yet to allocate a
signicant amount of their marketing
spending to social media. Today,
Fortune 500 companies spend only
a fraction of their digital marketingbudget, which itself averages 15 to
20 percent of total marketing spend,
on social media. For example, 89
percent of respondents to the
Booz & Company/Buddy Media
study spend less than 10 percent
of their digital marketing budgets
on social media. The reality is
that though there have been some
high-prole campaigns—Coca-
Cola’s Expedition 206, Nike’s
Write the Future, and P&G’s OldSpice Responses, for example—and
there are some early leaders like
Burberry, most companies are still
at the early stages in terms of their
social media efforts. Our Campaigns
to Capabilities study revealed that
companies recognize the need to
expand their social and digital
marketing efforts signicantly, and
many are taking concrete steps to do
so. Relevant ndings from the
Booz & Company/Buddy Media
study include the following:
Social media is a CEO agenda item•
for 40 percent of the responding
companies.
Social media is a top marketing•
priority for 2012 for about 60
percent of the respondents.
64 percent of companies have a•
dedicated team for social media.
78 percent of companies believe•
social media efforts enhance their
marketing effectiveness.
95 percent of companies expect to•
invest more in social media.
96 percent of companies are devel-•
oping a specic strategy for social
media.
The leading companies are shifting
their focus from campaigns—exper-
iments, tactics, or one-off efforts
that are challenging to replicate—to
capabilities that enable them to more
reliably and consistently deliver a
CAMPAIGNS
TO CAPABILITIES
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6 Booz & Company
distinctive outcome, relevant to their
business, through the right combina-
tion of processes, tools, knowledge,skills, and organization. Specically,
success in social media requires com-
panies to develop deep capabilities
in new areas: in community manage-
ment to grow and activate audiences,
in content development to engage
target consumers, and in real-time
insights to analyze consumer behavior
and measure impact (see Exhibit 1).
Leading companies are not just
building these capabilities, but also
investing to make them distinctive: so
ingrained, procient, and individually
tailored to their strategies and mis-
sions that competitors cannot catch
up. To accomplish this, companies
must actively transform their keybusiness functions. This transforma-
tion typically begins with marketing
but will ultimately expand to include
customer service, consumer insight,
sales, and even product development.
Source: Booz & Company
Exhibit 1 A Capabilities System for Social Media Success
c. Consumer Insights
a. Engagement Optimization
b. Content Management
1. Community Management: Monitoring, engaging, servicing,and activating a social media presence and fan base
2. Content Development: Creation and sourcing of brand-and audience-relevant content
3. Real-Time Analytics: Ability to analyze and interpret socialmedia activity as it happens
1. CommunityManagement
2. ContentDevelopment
3. Real-TimeAnalytics
Primary Capabilities
a. Engagement Optimization: Design and execution of the socialmedia experience to drive participation and activation
b. Content Management: Tracking, cataloging, storage, and servingof content assets of all types
c. Consumer Insights: Understanding of drivers of communitybehavior and interest
Supporting Capabilities
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7Booz & Company
Though social media may be used
broadly across an enterprise, it is the
marketers who effectively “own social”
in 81 percent of the companies that
participated in the Booz & Company/
Buddy Media study. Today, advertis-
ing is the dominant use case for social
media, with 96 percent of companiesusing social media to support advertis-
ing objectives. Signicantly, companies
are also prioritizing the integration of
social media into their overall market-
ing efforts, rather than developing
islands of specialized expertise. For
example, 65 percent of companies are
actively planning to integrate social
media into all of their advertising and
marketing activities—an important
sign that social media is moving from
the periphery to the center of most
marketing agendas.
Marketers are owning the social media
agenda because in most companies they
own the brand or product positioning,
the market-facing value proposition,
and the composition of the marketing
mix. They are also the executives most
likely to be in the ow of consumer
conversations and insights. For many
brand-focused marketers, social media
sits tantalizingly high on top of the
purchase funnel—in contrast to other
forms of digital advertising, such as
the search and display banners that
are more often associated with direct
response marketing. In discussions with
Booz & Company for this study, many
senior marketers who have not spentsignicantly on digital to date stressed
that they are looking at social media
as more of a branding tool because of
its interactive nature and its ability to
forge relationships between consumers
and brands. Thus, when asked where
they see the most benet from social
media, 90 percent of respondents
said “brand building,” 88 percent
cited “buzz building,” and 81 percent
replied “consumer insights.”
An even more fundamental develop-
ment is the inuence of social media on
the marketing function itself at many
companies. The adoption of social
media by companies is in fact changing
the practice of marketing from one of
“brand management,” where cam-
paigns are tightly controlled by brand
executives and dominated by paid
media, to one of “brand curation,”
where campaigns are designed by mar-
keters and characterized by a seemingly
less orchestrated and linked mashup of
paid, earned, owned, and shared media
(see Exhibit 2). This new model is also
more dynamic, real-time, and itera-
tive. Its core tenets are engagement,
participation, and advocacy. It connects
brands directly to consumers, and also
enables brands to connect consumersto one another. Mark Parker, Nike’s
CEO, described the positive impact of
this new model on his business on a
recent earnings call: “Social network-
ing and digital communication is
helping us unify and expand the family
of sport. We’ve never been closer to
consumers as they continue to extend
their reach and connect even more with
each other, with their sports heroes and
their favorite teams.”
MARKETING:THE FOCALPOINT FORSOCIAL MEDIA
INNOVATION
Source: Booz & Company
Exhibit 2 Brand Management Moving to Brand Curation
Traditional Marketing Model New Marketing Model
Anchored around participation and activating fans Anchored around awareness
Focused on integrating paid, earned, owned and shared mediaFocused on procuring paid media
Emphasis on conversation and relationship valueEmphasis on being in control of media messaging
Brand managers are “universal soldiers” with digital expertiseDigital expertise anchored in specialists and COEs
Dynamic, always on, and iterativeFixed, turn on/turn off, and long lead times
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8 Booz & Company
Everyone knows that a key ingredient
for a great dinner party is a switched-
on host who curates a fabulous mix of guests, stimulates lively and interesting
conversation, and graciously attends to
a variety of needs throughout the eve-
ning. Terric food, drink, and activities
enable people to connect, engage, and
linger. The host knows how to read
the room, “analyze” the party in real
time, and make rapid adjustments to
improve it—a quick tweak to the seat-
ing chart, a personal introduction to
ensure the right contact is made, or a
subtle change to the playlist to enhancethe evening’s ambience. All of this
makes guests eager to return.
The ingredients of a successful dinner
party—including the central role of
the host—is a perfect metaphor for the
skills and mind-sets that companies
need to build a distinctive social media
capability. As one brand manager from
a major cosmetics company puts it,
“You have to realize that social media
is a party and you’re the host. There
might be someone in the corner—be
generous and gracious and invite himin. There are stars who will it in and
leave. The whole point is to get people
together.”
As anyone who has hosted a successful
dinner party knows, it takes planning,
effort, and care to create an appealing
social environment—a place where
guests feel welcome and where they
comfortably engage in rich, interesting
conversations, sharing thoughts and
views with friends, old and new. Thebest hosts make it appear effortless, but
they privately acknowledge how much
work it takes. As companies seek to
expand and strengthen the impact of
their social media efforts, marketers are
learning to play the role of the “host”
with increasing levels of sophistica-
tion. For the vast majority of them, it
requires building new capabilities that
have not been part of their traditional
tool kit.
NEW
CAPABILITIESREQUIRE NEWMIND-SETS
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9Booz & Company
At most large companies, the
cutting edge of marketing can be
found in social media communities
today. As companies begin building
brands via Facebook pages, Twitter
feeds, YouTube channels, and even
Google+ circles, they realize quickly
that establishing a social mediapresence is only the beginning.
It’s the equivalent of sending the
invitations to a dinner party. Thus,
community management—the art
and science of convening and hosting
fans in social media—has become a
vitally important new capability for
companies and their marketers.
Community management involves
engaging, monitoring, servicing, and
activating a company’s social mediafan base across multiple social media
platforms. This discipline has become
critical to ensuring that a brand’s
social media community is healthy,
active, and growing. Furthermore,
once visitors become fans, companies
have the responsibility to listen to
them and reward their behavior
with an “always on” social media
experience that is responsive,
interesting, and attentive. If not,
companies may face disappointment
and disfavor from many of their
most valued consumers. Companies
also need to ensure that their social
communities expand in directions
that are coherent with their business
goals. For all of these reasons, strong
community management has become
imperative for social media success.
Most marketers know how to managebrands, not real-time communities.
The skills required for community
management stretch well beyond those
associated with traditional brand
management. There are ve core
prociencies:
Listening:• understanding what
fans in the community are saying;
identifying hot topics, what fans
are doing and sharing, and why;
creating a two-way feedback loopthat drives consumer insights
Curating:• overseeing the editorial
experience; stimulating meaningful
discussion; making content and
conversation discoverable and
interesting; ensuring that the
brand’s voice and presence are
coherent and authentic
Responding:• providing service to
the community; helping to resolve
issues, questions, and problems;
connecting to advocates and
opinion leaders; creating emotional
connections with fans
Measuring:• analyzing fans’
activities and community behaviors;
tracking effectiveness of campaigns
against business and brand
objectives; assessing communityvibrancy, sentiment, and growth
Innovating:• anticipating what
is next for a brand’s fan base in
new content, tools, and social
or digital media experiences (for
example, mobile, apps, and niche
communities)
Not surprisingly, these new require-
ments and their vital importance
concern many companies. About 50percent of the survey respondents
said the lack of sufcient community
CAPABILITYPRIORITY 1:COMMUNITYMANAGEMENT
The skills required for community
management stretch well beyond
those associated with traditional
brand management.
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10 Booz & Company
management resources in their orga-
nizations represents a major barrier to
social media success (see Exhibit 3).
Furthermore, their top concern around
social media is the labor-intensity of
community management: 61 percent
of the respondents expressed concern,
compared to only 13 percent who are
focused on social media’s overall cost.
Despite the meteoric growth of social
media platforms, many companies
are still not fully comfortable with
the digital megaphone inherent in this
medium; 58 percent are concerned
with negative word of mouth or PR,
and 55 percent worry that they are
losing control of their brand messages.
“You have to be on 24/7,” noted a
senior executive with a major apparelbrand. “You have to respond to
customers all the time. Issues escalate
so fast, you can be held hostage by
someone in social media.”
Community management is a
dynamic, complex, and people-
intensive function, one that cannot be
outsourced lightly. Senior executives
recognize that community manage-
ment is central to social media success
and that they need dedicated in-house
expertise to make it happen sustain-
ably. Already, among the companies
surveyed by Booz & Company and
Buddy Media that have their own ded-
icated social media staffs, two-thirds
have internal resources dedicated spe-
cically to community management.
Part brand champion, part chief
listener, part Superfan, and always
“mission control,” the community
management professional brings a
variety of skills to bear. Executives incommunity management need to be
experts on their brands, audiences,
and communities. They know them
inside and out. A senior executive
with a major entertainment company
described the ideal job spec this way:
“The guy who runs Facebook for us is
an über-fan. That’s the kind of person
you need.”
Successful community management
also requires a fusion of technical and
creative expertise. Campaign updates
(such as stories, pictures, news,
videos, slide shows, and polls) must
be drafted, scheduled, and posted
with an awareness of engagement
and sharing potential. Conversations
must be initiated. Fan responses
must be addressed. Multiple social
media platforms—Facebook, Twitter,
YouTube, company blogs, etc.—must
be managed with content sourced
and tailored for each. Throughout
all of this, campaign analytics andmetrics must be reviewed and assessed
to determine what is resonating and
what is not, and community managers
must make decisions on the y to
continually enhance the community
Source: Booz & Company/Buddy Media Campaigns to Capabilities: Social Media and Marketing 2011 survey results
Exhibit 3Top Five Organizational Challenges for Social Media
Lack ofUnderstanding Among
Senior Leaders
Insufficient ResourcesDedicated to
Community Management
Not EnoughCross-Departmental
Collaboration
57%52% 51%
48%43%
Not Core toOverall Strategy
Difficulty ofProving ROI
PERCENTAGE OF SURVEY RESPONDENTS INDICATING THIS WAS A SIGNIFICANTOR VERY SIGNIFICANT CHALLENGE
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11Booz & Company
Starwood: Where Social Means More Than Marketing
Even before the term “social media” was coined, Starwood Hotels
& Resorts had a dedicated professional in the eld. “He was called
the ‘Lurker,’” says Alyssa Waxenberg, the senior director of emerging
platforms for the hotel chain. “He was on our customer service team,
and he would engage our customers on travel forums like FlyerTalk. Heanswered questions, resolved issues, and showed us complaints that
he came across online. He became something of a mini-celebrity in the
hotel industry and a real champion of our guests.”
Starwood’s Lurker was only an introduction to the impact of social
media; it did not take long for senior management to catch on to the
value of this form of marketing. The owner of such major brands as
Westin, St. Regis, Sheraton, and W, Starwood uses social media to get
in front of current and potential customers with information, offers, and
personalized experiences intended to surprise and delight guests—and
to cement their loyalty to the company’s brands. “We are leveraging
social media in all we do,” says Waxenberg. “We have Facebook tabs,
Facebook walls, Twitter channels, and Foursquare tie-ins with our loyaltyprogram. All of these enable us to broaden our reach, follow up in real
time, and stay engaged with our guests,” she says.
But social media is not strictly seen as an advertising vehicle. “You can’t
conne social media to the marketing department,” says Waxenberg.
Perhaps the greatest change it has made for Starwood is in customer
service. “It’s very easy now for people staying in one of our hotels to
post a comment on one of our Facebook pages or tweet something. We
can address that guest’s concern or compliment immediately while they
are staying with us. This digital approach to delivering a great service
experience has become differentiating for our business. And now we
can do it faster and make it more personalized than ever.”
To make this happen consistently, Starwood has developed a networked
approach to social media. A dedicated team within customer service
monitors social media channels in real time. This team connects directly
to social media champions at individual hotels, along with the loyalty
and marketing teams and other central departments. These connections
are critical for rapid response. If someone posts, “Hooray, we’re going
to the Westin in Maui for our 25th anniversary,” the team can reach out
to that hotel and let them know to make that couple’s milestone an
experience that is truly memorable, personal, and special—from a hotel
they will most likely recommend to others.
experience and ensure that it is
connected to the brand’s objectives.
In addition to the technical and
creative requirements, community
management must have a
demonstrable “human touch” that is
recognized as genuine and authentic
by the fans. There is no substitute
for strong person-to-person skills.
Community managers will eld
questions touching on all parts of
a business and therefore need to be
well networked and empowered to
move across departments to respond
effectively. Fifty-seven percent of
the survey respondents reported
that insufcient cross-departmental
collaboration is a major obstacle to
social media success. In interviewsconducted for this study, executives
repeatedly stressed the need for “great
conversationalists”—extroverts
who enjoy interacting with others
and who are comfortable in a uid,
spontaneous, and often unpredictable
environment. This new kind of
marketing talent, like that great
dinner party host, must also be able
to process data quickly and make
decisions fast. Ninety-four percent
of the responding executives stressedthat the “ability to adapt and react
quickly” is the single most critical
success factor in social media.
Many companies are on the hunt to
recruit managerial talent that can
support high-quality, high-impact
community management. About 60
percent of those investing in social
media are expanding their community
management resources through
additional hiring. Recognizing these
new and fast-changing requirements,many companies are seeking
community management talent
outside the boundaries of traditional
brand marketing, in areas such as
journalism, direct marketing, event
planning, and public relations.
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Like a party without the requisite
food or drink, a social media
community without relevant contentcan quickly become a stale, empty
room. As a major wireless executive
explained, “We have to constantly
think about having the right content.
Facebook penalizes you if people
aren’t clicking—it forces you to
deliver something engaging.”
For many companies, developing a
robust social media content develop-
ment capability requires a completereboot of their approach to develop-
ing communications and campaigns.
“Old-time brand managers only did
TV,” said a major beverage marketer.
“Now brand managers have to think
about social in everything they do.
Do they have sufcient content they
can share with their community?
CAPABILITY
PRIORITY 2:CONTENTDEVELOPMENT
A social media community without
relevant content can quickly
become a stale, empty room.
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They are trying many new things
in order to have content to share—
events, contests, videos—with theircommunities.”
A powerful example of the impact
of social media on brand storytelling
is Nike’s “The Chance,” a global
Facebook- and YouTube-centric
competition developed by its agency
AKQA. Over an eight-month period,
75,000 young, undiscovered soccer
players from 41 countries took
“the chance” to compete for a life-
changing soccer contract with theNike Academy. Millions of Nike
fans followed the competition, which
kicked off with a call to action
on Facebook from famed Arsenal
manager Arsène Wenger. The aspiring
athletes were encouraged to enter
the competition by uploading their“moment of glory” to Facebook, to
promote themselves with videos and
photos, and to build a fan following.
Nike then used invitation-only
training events in 32 cities around the
world to select 100 global nalists
who were chosen to compete for
eight professional contracts under the
eyes of Premier League scouts at the
Chance Final Trials in London.
Nike and AKQA zeroed in on theconsumer insight that is true in every
competitive sport: Young athletes
want to prove themselves, they want
to be discovered, and they want the
opportunity to compete at the most
elite levels. Social media allowed
Nike to take that insight global,transforming it into a compelling
digital media experience for mil-
lions. AKQA’s Ahmed describes
the strategy behind “The Chance”:
“There was no better way to tell the
‘Just Do It’ story than by empower-
ing people to become better foot-
ballers and rewarding the very best
with a contract. Without the digital
and social revolution, an idea like
this would have never been possible.
This campaign was seen by millions,inuenced tens of thousands, and has
changed the lives of many.” Indeed,
5.5 million fans actually pledged
their support to various participants
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during “The Chance,” and millions
more viewed various Nike- and
player-produced videos on Facebookand YouTube over the course of the
campaign.
The story of “The Chance” highlights
how brand storytelling and adver-
tising need to be designed to take
advantage of the unique dynamics of
social media. “The most compelling
stories,” says Ahmed, “are told by
brands that use the inherent proper-
ties of social media to do something
you cannot do in other media. With
Twitter, that means immediacy.
With Facebook, it means making a
creative, inspiring, and useful con-tribution to the community.” Unlike
traditional advertising content, where
the goal is often awareness or brand
recall, the focus in social media is on
content that stimulates real conversa-
tions and gets the consumer moti-
vated to be involved and connected in
the storytelling itself and in spreading
it around.
“We do a lot of magazine ads,” says
a major apparel retailer, explaining
the company’s relatively low empha-
sis on social media. “The celebrities
in these ads are looking to preserve acertain mystique. They can’t do that
in social, so it just doesn’t work.” In
contrast, Nike’s social media con-
tent is participatory, authentic, and
relevant, all by design. That’s the
decisive difference.
Content is the glue in social media.
It creates the “sticky” social value
and connection between a brand and
its fan community. To be effective,
marketers need to become digital
The focus in social media is on content
that stimulates real conversations and
gets the consumer motivated to be
involved and connected.
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publishers, competing aggressively
for consumers’ attention, engage-
ment, and loyalty with high-valuecontent just as media companies do.
Leading social media teams are there-
fore taking steps to build publisher-
like capabilities. They are rigorously
prioritizing content topics that will
resonate with their communities and
that align to their overall marketing
and promotional programs. They
are developing “editorial calendars”
to emphasize specic storylines and
story types, and ensure a steady
stream month by month, week byweek, and hour by hour. They are
optimizing content for discovery and
sharing—even elevating their brands
to act as trusted “lters” that aggre-
gate the most brand- and audience-
relevant third-party articles and links.
Finally, brands are working with an
expanding range of creative resources
to accomplish all this. These include
external entertainment companies,creative agencies, digital publishers,
independent producers, PR rms,
and even their own internal creative
resources.
Media executives have always
understood that it matters how many
consumers watch, read, or listen
to their content. Marketing execu-
tives should have the same mind-set
as they expand their social media
efforts. As platforms like Facebook,Twitter, and YouTube become more
crowded, thoughtful distribution—
including scheduling, packaging,
and placement—is increasingly
important for breaking through the
conversation clutter. Buddy Media’s
own research has shown that there
is effectively a “prime time,” both
in time of day and day of the week,
when the engagement rate withconsumers is noticeably higher. For
example, consumer engagement for
auto-related social media content
spikes on Sundays, when consumers
are researching cars and planning
showroom visits. The design of social
media content and posts also matters.
A random sample of users on Buddy
Media platforms in the fall of 2011
showed that social media content
with a clear “call to action”—either
online or ofine—drove 30 percentmore activation than more static, less
action-oriented posts.
Finally, though many consumers
may “like” a brand, few brands are
in a position where they can attract
a sizable, regular audience to their
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Among companies planning to hire
social media talent within a year,
72 percent are prioritizing creative
resources above all other needs.
branded social media sites. The most
valuable real estate for a marketer is
actually the newsfeeds of its brand’sfans. On Facebook, according to
the digital measurement and busi-
ness analytics provider ComScore,
consumers spend 27 percent of their
time—more than for any other single
category—on their own homepage
or newsfeed. They are also at least
40 times more likely to consume
branded content in that newsfeed
than to visit the brand’s page. Given
these realities, companies must excel
at developing brand-relevant con-
tent that drives posting and sharing.Furthermore, by creating shared
content, companies also increase their
marketing productivity; they achieve
a “multiplier effect,” whereby mes-
sages connect not just with fans, but
with a potentially much larger group
of friends of fans as well.
For all of these reasons, many
marketers say they plan to
aggressively upgrade and expand
their content development talent.
The Booz & Company/Buddy Mediasurvey found that among companies
with dedicated social media staffs,
49 percent have dedicated in-house
creative talent. Another 35 percent
are actively building their content
teams. Among those planning to hire
social media talent within a year,
72 percent are prioritizing creative
resources—producers and editors—
above all other needs.
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Marketers increasingly need real-
time insight into their audiences and
the impact of their content to know
whether their social media efforts
are on target or off the mark. How
much content is being shared and by
whom? Which social platforms are
getting more trafc and engagement
than others? How are brand inuenc-
ers and advocates behaving? What is
the community saying about a brand?
And what actions are fans taking?
Robust, well-structured social media
analytics and metrics are fundamental
to addressing these important ques-
tions, and thus critical for a contem-
porary digital marketing capability.
The Booz & Company/Buddy Media
survey and related interviews indicatethat there are four levels to a real-time
social media analytics capability, with
progressively more sophistication:
Level 1: Reach.• Marketers under-
stand the social scale of their
brands. They know how many
fans, followers, subscribers, visi-
tors, and views they have, and how
many discussions are taking place.
They have visibility into where,
when, and in what context theirbrand is being discussed.
Level 2: Engagement.• Marketers
have moved beyond counting fans.
They have insight into the activities
in their communities. They analyze
the drivers of participation and
amplication, studying the patterns
in comments, likes, shares, and
take rates.
Level 3: Advocacy.• Marketers can
identify and encourage user behav-
iors that are associated with brand
commitment. These include such
metrics as intent to recommend,
referral and reshare activity, com-
ments and followers per user, and
brand favorability, consideration,
and preference.
Level 4: Return on Investment.•The most sophisticated companies
set out to achieve strategic business
objectives with their social media
analytics. Most companies are still
not fully at this level. For example,
according to the survey, only about
40 percent of companies have
metrics in place today to measure
ROI-focused key performance
indicators (KPIs) such as purchase
intent, leads generated, conversion
rates, or actual sales.
CAPABILITYPRIORITY 3:REAL-TIMEANALYTICS
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The survey also conrmed that
marketers are concerned about the
quality of their social media metrics
and analytics. Sixty percent of the
respondents said they are not satis-
ed in this area. Only 50 percent of
companies have social media–focused
KPIs and dashboards in place today;
another 47 percent are actively build-
ing them. Many companies view
“expertise in social media measure-
ment, monitoring, and tracking” as
a core part of the value proposition
associated with third-party vendors,
such as agencies, software providers,
media companies, or consultancies.
There is also a tension between the
broad goal (expressed by 60 percent
of respondents) to link social media
metrics more closely to business out-comes, and the more immediate need
(expressed by 90 percent) for social
media metrics to be tailored to meet
the objectives of specic individual
campaigns.
A few corporate trailblazers are
demonstrating that social media can
drive measurable results and busi-
ness impact—in other words, they are
gaining a lot more than likes. Wendy
Clark, senior vice president for inte-
grated marketing communications and
capabilities at Coca-Cola, has shared
publicly that the beverage giant’s
analytic capability is advanced enough
to know that Coke social media fans
are twice as likely to consume and 10
times more likely to purchase than
nonfans. In personal computers, Dell
has focused relentlessly on analyzing
the connection between social media
engagement and revenue generated in
physical as well as online stores. Dell’s
leaders understand how social media
impacts loyalty, product innovation,brand favorability, and even costs
(such as the cost of customer sup-
port). These insights into business
drivers and outcomes have led Dell to
concentrate heavily on the health of its
Net Promoter Score (indicating how
likely a customer would be to recom-
mend Dell to a friend or colleague)
and on the impact of social media
experiences, including content around
ratings and reviews, on Dell loyalty
and recommendation value.
In addition to measuring business
outcomes, social media represents an
enormous opportunity for unltered,
direct consumer insights into brand-
ing, customer service, and product
development. Fifty-six percent of
companies surveyed are already using
social media to support their market
research and consumer insight activi-
ties. Eighty-one percent believe that
they are capturing helpful consumer
insights from social media today. Since56 percent are investing actively to
improve the quality and quantity of
consumer insights from social media,
this analytic capability should become
even more robust very soon.
Social media represents an
enormous opportunity for insights
into branding, customer service,
and product development.
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In addition to these three capabilities,
several soft factors—mind-sets—are
equally important to social media anddigital marketing. The senior leaders
interviewed for this study repeatedly
pointed out that it takes a differ-
ent personality and a different set of
behaviors to be successful now than it
did in the traditional “command and
control” brand marketing world. Of
course, classic management and brand
marketing skills still matter. But when
a new product announcement from
Google, Twitter, or Facebook can
dramatically change the opportuni-ties available to a marketer over-
night, companies need more exible,
dynamic, and entrepreneurial execu-
tive talent than ever before.
Venky Balakrishnan, global vice
president for marketing innovation at
Diageo, the world’s leading premium
spirits company, says next-generation
marketers need to be “universal
soldiers: learning machines who
move fast and who can constantly
adapt to new situations, almost likeNavy SEALs.” In an environment
where developments occur quickly,
consumer behavior is dynamic, and
playbooks are rewritten constantly,
companies need talent who are ener-
gized by uncertainty, who are tech-
and consumer-savvy, but also know
what they don’t know, and knowhow to pursue and test potential
solutions. Most important, they
analyze every experience, they learn
from it, they seek out new sources of
input and inspiration, and they keep
moving forward.
The Booz & Company/Buddy Media
study identied several other soft
factors that are important to social
media success. Ninety-three percent
of the respondents said that havinga clear set of champions and owners
for social media within the enterprise
is critical to building strong social
media capabilities. A related element
is support within senior management.
Development of capabilities for social
media cannot be perceived as a minor
initiative for “just the young people”
in the company. Finally, education
is critical. Today, two-thirds of the
companies surveyed have dedicated
social media staffs in place, and one-
third have an executive assigned tolead social media efforts. Nonetheless,
about 50 percent of those surveyed
said they still need more education
in their executive ranks about social
media and its value.
THE MIND-
SETS OF SOCIALMEDIA SUCCESS
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While many companies are still
catching up to their consumers in
social media, the Booz & Company/
Buddy Media study shows they are
indeed gaining. They are taking
important steps to transform
their capabilities in community
management, content development,
and real-time analytics, and they
are bringing a more contemporary
mix of hard and soft skills to their
marketing efforts. As this evolution
continues, they will also be in an
even better position to shift budgets
accordingly.
Survey respondents expect their
spending on social media activities
to accelerate over the next three
years, with social media takingan expanding share of corporate
expenditures on digital marketing.
Today two-thirds of the surveyed
companies dedicate 5 percent or less
of their digital marketing spend to
social media. Within three years,
this proportion will reverse: 87
percent of these companies expect
to cross that 5 percent threshold. In
fact, 50 percent of the companies
surveyed expect social media to be
the fastest-growing portion of their
overall marketing spend. In three
years, 56 percent of companies
expect to spend 10 percent or more
of their digital marketing budgets
on social media, with 28 percent
expecting the gure to exceed 20
percent. Not a single respondent
reported a plan to spend a smaller
percentage of the digital marketing
budget on social media movingforward (see Exhibit 4).
MOVINGFORWARD
Exhibit 4Social Media Spend as a Percentage of Digital Marketing Spend
Today 3 Years from Today
5-10%
67%
22%
5%7%
28%
27%
32%
13%
< 5% 10-20% > 20%
Note: Numbers may not add up due to rounding.
Source: Booz & Company/Buddy Media Campaigns to Capabilities: Social Media and Marketing 2011 survey results
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Within social media, where do
companies expect to spend their
money? Interestingly, despite
the growing amount of clutter
and crowding in social media
advertising, they do not expect
to focus on buying advertising
inventory on Facebook, YouTube,
or Twitter. Instead, they plan to
spend more on their own social
media teams. Hiring full-time
employees is their number one
priority for investment in social
media; hiring partners and vendors
is the number two priority, followed
by creating more content. Media
buys or paid social media is
number four.
The money for this investment is
mostly coming out of existing digital
budgets. That should be no surprise
to the portals and publishers that
have been steadily losing share to
Facebook and YouTube over the last
12 months. Only 22 percent of the
survey respondents have created new
dedicated budgets for social media;
more than two-thirds are funding
social media activities out of their
existing digital marketing budgets.
While far fewer companies plan to
shift spending from television or
magazines to support their social
media activities, the mere fact that
some are doing it highlights the
branding potential that executives
ascribe to social media and the
longer-term threat it poses to more
established elements of the media mix.
Finally, companies are awakening
to the broader, enterprise-wide
value of social media. Though
marketing is the dominant focus
today, executives recognize that
social media can signicantly
enhance how they connect with
suppliers, employees, and customers,
as well as consumers. They expect
to see executives in customer
service, market research, product
development, and sales taking a
greater social media leadership role
in their companies as they pursue
digitally driven innovation in these
functions too.
Rather than focus on buying
advertising inventory on sites like
Facebook, companies plan to spend
more on their own social media teams.
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Note: Numbers represent millions of people who “like” each brand’s Facebook page, as of February 2012.
Source: Facebook; Booz & Company
Exhibit 5 Facebook Fans: Burberry vs. Major Fashion Magazines, U.S. Versions as of February 2012
Burberry
10.70
Vogue
2.17
InStyle
0.42
Marie Claire
0.32
Harper’s Bazaar
0.14
W
0.11
Elle
0.10
Think back to the Burberry
experience. A venerable company
and brand engaged in a radical
transformation: a strategically
focused and substantive digital
metamorphosis that goes far beyondslick marketing concepts dressed
up in trendy technology. Burberry’s
social media and digital marketing
activities now represent 60 percent of
its marketing budget. The companyhas managed this by holding its total
marketing spend at as a percentage
of revenue, and strategically reducing
its expenditures on traditional
print media. It has also revamped
Burberry.com, turning it into a
content-driven destination where
consumers can engage, interact, and
purchase. Burberry has deployed
“retail theater” technology in its
stores to provide shoppers with a
rich audiovisual experience, blurringthe line between the physical and
the digital. Along the way, the
company has invested in community
management, content development,
and real-time analytics capabilities,betting big on the benets of
leadership in social media.
This journey began shortly after
Angela Ahrendts became CEO of
Burberry in 2006. She crafted an
aggressive plan to turn the company
around, with digital marketing
innovation as one of the central
focus areas. Six years later, look at
the results. Burberry has a Facebook
fan base that is larger than that of all the major U.S. fashion magazines
combined (see Exhibit 5). The fan
THE DIGITAL
FUTURE TODAYAT HORSEFERRYROAD
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base, also active on Twitter, YouTube,
and Burberry.com, now constitutes
an interconnected, linked, and ownedmedia ecosystem. This gives Burberry
unprecedented opportunities to build
its brand, market its products, and
engage with consumers directly across
channels, platforms, and mediums.
Not coincidentally, Burberry has
continued to increase revenue and
strengthen its brand. Most recently,
the company announced a 21 percent
rise in third-quarter 2011 total
revenue over that of the same period
in 2010, with same-store sales growthof 13 percent over the period. These
most recent achievements have all
occurred during the most turbulent
global economy since the Great
Depression.
Ahrendts has repeatedly attributed the
company’s solid nancial performance
to its investments in digital marketing
as well as its innovative design
and retail strategies. In a video
statement (appropriately available
on YouTube), Ahrendts elaborated
on this point. “You have to createa social enterprise today,” she said.
“You have to be totally connected
with everyone who touches your
brand.” The Booz & Company/
Buddy Media study conrms that
this digital-social transformation
is occurring not just at Burberry’s
headquarters on Horseferry Road in
London, but also in Atlanta, Austin,
Beaverton, and many other places
where forward-thinking executives
lead. For most companies, however,their social media journey is just
beginning. By focusing on developing
distinctive capabilities in community
management, content development,
and real-time analytics, they too
can not only create rich new social
media experiences for their customers
but, like Burberry, transform their
organizations and unlock market-
leading performance.
Resources: Burberry’s
Social Media Ecosystem
The Facebook Burberry
Page (content, community,
commerce): www.facebook.
com/#!/burberry
Burberry’s YouTube Channel
(live streaming, campaigns,
how-tos): www.youtube.com/
user/burberry?ob=4
Twitter’s Burberry Feed (live
events, real-time news and
updates): twitter.com/#!/
burberry
Burberry’s own home
page (content, product
information, commerce):
www.burberry.com
Art of the Trench website
(user generated and
professional photographs)
artofthetrench.com
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Survey Methodology
In 2011, Booz & Company and
Buddy Media surveyed 117
companies across a broad
range of industries. The online
survey addressed socialmedia platform priorities,
use cases, benets and key
success factors, challenges
and concerns, resource
requirements, organization
needs, spending trends, and
metrics. Booz & Company and
Buddy Media supplemented
this quantitative survey with a
series of in-depth executive
interviews focused on the
capability priorities, key areas
for investment, evolving role
of partners, and major issues
related to organization, talent,
and metrics that companies
are confronting vis-à-vis social
media.
L’Oréal: Developing Social Media Mind-Sets and Skill Sets
“I’m an evangelist,” says Rachel Weiss, assistant vice president for
digital strategy and interactive marketing at L’Oréal. “Social media is
not just a new marketing tool; it’s so much more. It’s a fundamentally
different operating mind-set.”
As Weiss points out, getting social media channels up and running
is only the starting point for marketers who want to develop this
capability. From there, identifying the right talent to run these channels
and cultivating a social media–friendly mind-set inside the company
are key to success. “You have to embark on a campaign of constant
education internally, not just with your digital teams, but across the
organization—executives and marketers and HR professionals and
consumer insights.” She explicitly sets out to demonstrate for these
colleagues the power and reach of social media and how it can be
used to transform consumer relationships.
Weiss has pursued multiple strategies for building traction for social
media across L’Oréal. “I’ve found that reverse mentoring works verywell,” she says. “If you have a social media evangelist sit down with
an executive to show her how Twitter works, what she can do on
Facebook—if you can get her engaging in a real hands-on experience
with consumers on these digital platforms, that’s a great start.”
She also recommends drawing attention to the size of social media
audiences: “The other way to reach busy executives is through the
numbers. We’ve done studies on digital listening, and sharing the
sheer volume of conversations happening every day around our
products and brands—with or without our direct involvement—is very
eye-opening for senior executives.”
Social media requires not only a new mind-set but also new skills. This
means that companies need to develop different recruiting criteria.“When I interview candidates, I’m looking for people from diverse
backgrounds who are willing to experiment. They have demonstrated
the ability to marry the left and right sides of their brain—the creative
and analytical,” says Weiss. “I also ask candidates to describe their
digital lifestyle—if they are not caught up in social media at home, they
are not going to bring that passionate engagement, hands-on attitude,
and curiosity that we know is essential.”
For Weiss, the ultimate end goal of social media marketing is to drive
consumer engagement that leads to measurable gains in revenue. “I
think most companies are still primarily focused on building fans and
followers, but we have our eyes on a greater prize. We want to cultivate
advocates and convert their insight and interest in our brands intoproduct purchases.”
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About the Authors
Christopher Vollmer is apartner with Booz & Company
based in New York. He leads
the rm’s global media and
entertainment practice, and
has extensive experience
advising clients in digital media,
consumer marketing and digital
technology. He is the author of
the best-selling book Always
On: Advertising, Marketing and
Media in an Era of Consumer
Control (McGraw-Hill, 2008).
Karen Premo is a principalin Booz & Company’s global
media and entertainment
practice. Based in New York,
she works with media and
consumer-facing businesses
on digital and social media
strategy, sales force and
marketing effectiveness,
capability building, growth
strategy, and organizational
design.
About Buddy Media
Buddy Media is the socialenterprise software of choice
for eight of the world’s top 10
global advertisers, empowering
them to build and maintain
relationships with their
consumers in a connections-
based world. The Buddy
Media social marketing suite
helps brands build powerful
connections globally with its
scalable, secure architecture
and data-driven customer
insights from initial point
of contact through point ofpurchase. Buddy Media is the
most award winning social
enterprise software company,
winning the prestigious
TechCrunch “Crunchie” Award
for Best Enterprise application,
named to the Advertising Age
2011 “Digital A-list,” and CEO
and founder Michael Lazerow
was selected as 2011 New
York Entrepreneur of the Year®
by Ernst and Young. For more
information, visit http://www.
buddymedia.com.
8/2/2019 From Campaigns to Capabilities - The Impact of Social Media on Marketing and Beyond
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