Social Media Business Benchmarking Study 2011

On May 19th 2011, Nielsen and Community Engine release the 2nd wave of their research on Australian businesses and social media.

The full report available for download here gives a tone of interesting data about the motivations and barriers for companies to engage in social marketing activities.

In a nutshell I would summarize the last 3 years as:

  • 2009: the year of growth
  • 2010: the year of consolidation
  • 2011: the year of integration

I would add that 2012 looks like it will be the year of scale!

Here is what particularly struck me in the research findings:

  • There has been a  strong push towards social with more business wanting to/ getting involved, and budget are expanding (44% of respondents) rather than being reallocated (37% of respondents)
  • Even though one in four Australian businesses have a presence on Facebook there are still very few companies that have a formal social strategy in place (17%), or social policy (23%)
  • Marketing objectives are shifting from branding relationship building and word of mouth… which expresses more maturity in the market
  • I was also surprised to see that social budgets are primarily from Direct Marketing (41%) and Print (37%) and not from digital (23%). TV which very often represents the biggest share of media expenditure doesn’t get cut: 17% (probably due the high ticket entry and low volatility of the investment)
  • ROI is not the barrier nb1 to social investment; along with establishing KPIs, it is the barrier that has declined the most since 2009. The main fears are the lack of knowledge and expertise (both internally and amongst agencies & providers) and the difficulty to allocate resources and sustain the activity. This puts the challenge on agencies to demonstrate their able to integrate thisdiscipline in their core acitivity might it be media, advertising or PR.

Some more nuggets:

  • In spite of a big growth in the integration of sharing capabilities (like, share buttons, participation…) on websites overall only 7% facilitate social shopping
  • Average # of Facebook fans: 2,252
  • Nielsen leads social listening market with 19% share; Radian6 ranks 4ths with only 6% market share.

Melanie Ingrey (@melanie_ingrey), Research Director at Nielsen, who presented the research to the industry on Wednesday. Here are her observations on the market trends (please excuse the average quality of the video as I am working on my director skills)

Thanks Melanie for your summary

More business doing social well… it also means a more competitive and aggressive market ahead!

Comments with  

Marie Sornin


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