ROI from owned social media for FMCG brands in Belgium (PPT presentation)

ROI from owned social media for FMCG brands in Belgium

Steve Goudsmit

June 2012

To contact me :• [email protected]• http://www.linkedin.com/pub/steve-goudsmit/37/760/ba3• http://www.twitter.com/stevegoudsmit

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« Social media »

390 millions of results (in English only)

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« Social media » AND ROI

20,5 millions of results (in English only)

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« Social media » AND FMCG

3,5 millions of results (in English only)

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Are social media a profitable channel for FMCG companies?

BUT, based on desk research, none of the brands clearlymeasures ROI from social media

Table of content

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1. Integration in a process

2. Methodology

3. Listening results

4. Owned media results

5. Conclusions

1. Integration in a process

Integration Methodology Listening Owned media Conclusions

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Before launching an owned media campaign, brands should ideally check what customers think about them.

The next step is to use theseinformations to define objectives and translate them into relevant performance indicators.

2. Methodoly: brand selectionOmission of manufacturers (P&G, Unilever, Kraft, ...) and private label (too low advertising investments)

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1

Selection of brands active in Belgium: sample of 520 brands

Focus on local brands & brands active in maximum 2 other countries than Belgium (based on e-commerce websites in Germany, Spain, France, Italy, United Kingdom, Portugal & Netherlands)

115 brands left

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Removing equivocal brand (which have several meanings such as « Zero » chocolate, « Sun » soap, ... )

84 brands left

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2. Methodology : listening & owned

For the listening part, selection of 20 brands out of 84 (see previousslide) & study 32 verbatims per brand based on 2 platforms :

• SocialMention: which collects comments, photos, videos, ... from social medias

• Google Blogs: which collects content from several blogs

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For the owned part, selection of 84 brands and identification of the social medias where they invest:

Study on 3 plateforms : YouTube, Twitter & Facebook (omission of blogs because it is not owned media)

• Period covering year 2011

LIST

ENIN

GO

WN

ED


2. Methodology : owned (CPM)

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• « Owned » media analysis is based on the respective cost per contact of traditional media compared with social medias

This delivers the maximal value a brand can invest in social media before reaching the break even point vs traditional medias

20,52 €/1000 contacts

14,87 €/1000 contacts


2. Methodology : example (CPM)

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- Assume a YouTube video with 3.000 views

- CPM YouTube = CPM Television = 20,52 € (in 2011)

(CPMtelevision2011/1000) * number of views = (20,52/1000) *

3000 = 61,56 €, the maximum a brand should have invested

before reaching the break-even point versus traditional media

By interviewing brand managers and comparing their statementswith the calculated result, it has been possible to judge the ROI from social media


3. Listening results (1/2)

• Identification of several limits (sarcasm recognition, poor quality of the considered platforms & of some verbatims, classification of those, ... )

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Meet Danio ErYouTuberhmicron

Nothing like a Douwe Egberts in the

morning

... So easy to remove ! Just spilled half of the

bottle...

640

280

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65

Total amount of analysed verbatims

Amount of verbatims that really target the brand (double use of words,…)

Total number of verbatims that express a real opinion about the brands

Total verbatims that have been judged “relevant” (= that can help the brand)


3. Listening results(2/2)

For the major part of FMCG brands, not enough available information to get a representative information feed

Previous reasons explain why interviewed brand managers don’t invest in such services

It seems more interesting to analyse the product category (tap water vs. Bru, Spa)

So far, listening cannot be considered as a substitute to traditionnal market research techniques

Listening still helped to detect 2 potential crisis (but from a qualitative point of view)

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4. Owned media results

• All the brands are not active on the 3 social medias that have been studied

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25% 20 % 5 %

• On Facebook, beer brands (Jupiler, Maes, ...) attract more members than other brands

• Notion of «social magnetism»: several brands attract more than others (image we want to be associated to)

• Notion of «tipping point»: minimal threshold from which an investment is profitable (was not considered by the managers)


4. Owned media results: YouTube

YouTube appeals many brands thanks to some videos that carry millions of views

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WHILE

60% of studied videos(356 out of 593) were watched less than 100 times

14 brands out of 16 should not spend in 2011 more than 1000 € before reaching the break-even point against traditional medias

Examples: for the audience of the total YouTube effort in 2011, Spa should not have spent more than 19 €, Leffe 39€, Vandemoortele 67 €, Nutrilon 362 € and Lotus 1.363 €


4. Owned media results: Facebook

Facebook is more and more used as a communication tool

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WHILE

80% of the brands (16 out of 20) should not have spent more than 5.000 € in 2011 € before reaching the break-even point against traditional medias

30% of the interviewed consumers did not remember having « liked » the Jupiler or Maes page and 90% of them don’t remember their last message

Examples: for the audience of the total Facebook effort in 2011, Come a Casa should not have spent more than 56€, Silan 832 €, Gini 3.448 €, Maes 18.939 € and Jupiler 59.721 €


4. Owned media results: ROI

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Based on the previous slides and knowing that the interviewed brands have spent between 40.000 €and 60.000 € in owned media, it should be concluded those investments have not been profitable for the FMCG in Belgium in 2011


4. Social media vs. Traditional media

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95%

5%

Maes

100%

0%

Maredsous

95%

5%

Duvel

98%

2%

Jupiler

99%

1%

Dixan

100%

0%

Persil

100%

0%

Lotus

100%

0%

Spa

Social media share of

voice

TV share of voice

For 75 % of the brands, social medias represent less than 1 % of the total cumulated views social medias + TV. For the remaining 25%, social medias represent less than 5% of this total number


5. Conclusions (1/3)

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Marketers should move from a « naïve optimism » to the nextstage « analyses and actions that conducts to success ». Industry does not often measure ROI from social medias

Study was done on local and regional brands in Belgium. Results would have been slightly better in a country such as Germany or the US, which benefit from more economies of scale. Neverthless, language barriers limit economies of scales for Facebook & Twitter while for YouTube, a world version could be considered

Due to the continuous growth of stimuli, creativty remains essential to differentiate from competitors



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In 2011, audience of owned media is marginal vs. traditional medias

Efforts in social medias are not profitable in comparison with traditional medias

Listening in FMCG suffers from the limited number of verbatims linked to the low customer implication for those products. Listening technology has limits to industrialize the research



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There is clearly a potential but still a lot of steps before social media become a profitable tool for local & regional brands of FMCG active in Belgium

Earned media seems to be the consequence of a good paid & owned campaign: better awareness of the brand, customer motivation to express themselves which can lead to the next campaign (creation of a vertuous circle)

Social medias for FMCG companies in Belgium are not the ideal media (no low costs, no effective performances)


Thank you for your attention !

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Q&A

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ROI from owned social media for FMCG brands in Belgium (PPT presentation)

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