Social Media Marketing Report 2016

Marketing Report 2016SOCIAL MEDIA MARKETING

WEBPERIAL

1Social Media Marketing Report 2016

Introduction

Social networks such as Facebook, Twitter, Instagram, LinkedIn and others have transformed the way we interact with customers, offer products and services, and communicate with employees. It has become commonplace in the modern marketing landscape as a tool to increase revenues and brand recognition. In fact, research conducted by LinkedIn found that roughly 8 out of 10 small and medium-sized businesses are turning to social media for growth, and of those that use social, 94% do so for marketing purposes.1

Figure 1. 8 out of 10 small businesses are using social media in their marketing efforts.

The platforms themselves are free to use, and they also have paid advertising options specifically for brands that want to expand their reach. Every business needs to evaluate which networks they should be using. Each social network specializes in a certain niche within its users, so becoming acquainted with each one is vital in order to optimize a business’ social media effectiveness.

1 Wagner, K. (2014, February). LinkedIn: 81% of Small and Medium-Sized Businesses Use Social Media. Retrieved December 30, 2016, from http://mashable.com/2014/02/13/linkedin-social-media-study/#UIa7Vg7XWgqY


http://mashable.com/2014/02/13/linkedin-social-media-study/#UIa7Vg7XWgqY

Social Media Platforms

The biggest and most content-rich social media network is Facebook. It has 1.71 billion monthly active users, with 823 million of those being active through mobile-only. The network giant boasts about a billion daily active users - that is - users that actively login every day and perform an activity on the platform. 50 million small business pages are actively registered, yet only about 2.5 million of those businesses pay to be “active advertisers”. 78% of Facebook advertising revenue comes from mobile ads, while mobile advertising represents 80% of Facebook’s advertising revenue. With Facebook’s massive user base, businesses can leverage it to their benefit regardless of what niche they are focusing on.2

Figure 2. Majority of respondents carry out social media marketing on Facebook.

Acquired by Facebook, Instagram is a social media network known for its large selection of picture filters and easy sharing options. With 400 million active users and over 60% of them logging in daily, it is now the second most engaged network after Facebook. The platform’s popularity has surged in the last two years, causing usage of Instagram to double. Approximately 49% of brands are on Instagram, and that number is predicted to rise to 71% by the year 2017. Instagram is the best social and mobile platform for brands to reach audiences they are willing to engage. Its high engagement is driven by its content simply being more sharable, easier to 2 Pick, T. (2016, January). 47 Superb Social Media Marketing Stats and Facts. Retrieved on December 30, 2016 from http://www.business2community.com/social-media/47-superb-social-media-marketing-stats-facts-01431126#cq3m1E70X6OfSVc8.97


http://www.business2community.com/social-media/47-superb-social-media-marketing-stats-facts-01431126#cq3m1E70X6OfSVc8.97


understand, and far more universal than other platforms’ content. Visual storytelling is an art form of Instagram that has the power to capture the attention of a wide audience with engaging content. It is no surprise that of the top 100 brands in the world, 90% of them have an Instagram account for these reasons.3

Twitter is a social network known for its real-time updates and trending hashtags. It has 310 million monthly active users, with 80% of them accessing the site via mobile. Approximately 66% of US companies with 100+ employees using its platform for marketing. The average Twitter user follows five businesses, and a little over half of users reported that they had taken action after seeing a brand mentioned in a tweet. Actions include visiting a company website, searching for the brand through a search engine, or retweeting content (Smith). Twitter is the perfect place to listen and learn about their business and their competition. Businesses can gather insight through following industry hashtags, leaders and experts in their industry, and competitor’s accounts for real-time updates. Customer service is another reason that makes Twitter stand out from other social media platforms. Fans and followers expect to be answered in a timely manner and maintaining an active presence on the platform strengthens consumer relations.

Pinterest is a visual social media network focused on digital storytelling through “Pinning” a message encapsulated into a picture. It has 100 million monthly active users, most notably 81% being of the female gender. Pinterest is also one of the fastest-growing social platforms among millennials. 66% of content that users pin comes from brand websites, and while most people interact with brands for discounts and customer service, on Pinterest people interact with brands 83% of active users prefer to follow a brand than a notable celebrity, and the user sentiment spreads across any category in the platform (Smith). Pinterest also drives significant referral traffic, only second to Facebook’s which influences purchases. Pinners are engaged, and according to research released by Millward Brown, 87% of Pinners have purchased a product because of the platform.

LinkedIn is a professional networking social media platform with 450 million members. Of those, 100 million access the site on a monthly basis. Over 3 million companies have created LinkedIn accounts, yet only 17% of US small businesses use LinkedIn. Of all social media platforms, LinkedIn is the most B2B-centric. Half of all users are likely to buy from a company they engage with on the platform and 8 out of 10 B2B marketers use LinkedIn as a medium to release a new product or service (Smith). The networks allows companies to establish thought leadership and build online communities with professionals. Securing an active online presence is important for businesses to enhance their reputation and improve their visibility and search both with search engines and LinkedIn itself.

3 Smith, K. (2016, March). Marketing: 96 Amazing Social Media Statistics and Facts for 2016. Retrieved December 30, 2016, from https://www.brandwatch.com/blog/96-amazing-social-media-statistics-and-facts-for-2016/


https://www.brandwatch.com/blog/96-amazing-social-media-statistics-and-facts-for-2016/

Social Media Marketing

Social media marketing has seen positive growth trends in both large and small companies over the years. Social media itself was considered an uncertain strategy by industry reports dated back to 2009, to a permanent fixture the next year in 2010, and finally becoming established as a primary tool for businesses to drive growth in 2011. Currently, 90% of marketers state that social media is important to their businesses, according to a national survey conducted by experts from Social Media Examiner. The share of marketing budgets spent on social media is expected to more than double from 11% today to 24% by 2020 (The CMO Survey). More specifically, a survey conducted by Dazeinfo predicted the share of overall digital marketing budgets devoted to social media marketing will increase from 9.9% today to 22.5% within five years.

Figure 3. Small business owners and marketers put increased exposure via social as the top benefit.

While organic and PPC advertising both have their applications to businesses, their effectiveness depends on the industry and budget of the business. Paid is becoming the new norm, and there are some best practices for any business to apply if they are serious about PPC. Google Adwords re-enabled mobile-based bidding, meaning that businesses and marketers are now able to tailor their keywords to the devices relevant to their business. Mobile and tablet usage is finally outpacing desktop usage, and this realization is pushing a lot of marketers and businesses to change the way they conceptualize and create ads for their target audiences.


Businesses are now also including responsive ads for display in their marketing efforts, along with the benefit of more characters for text search ads across all devices.

Figure 4. Marketers use Facebook ads twice as much as Google Ads.


Social Media Trends & Tactics

Companies are embracing social media now more than ever. With 2.3 billion active social media users and 91% of retail brands using 2 or more social media channels, companies are always aware of latest trends and looking out for future ones. The most common social media platforms companies use are Facebook, Twitter, Instagram, YouTube, Pinterest, and LinkedIn. For each platform, companies need to plan out their content – and their social media updates – on an editorial content calendar.4 There are several key trends and tactics that companies need to be aware of in order to maximize their social media marketing strategy.

1. Companies are capitalizing across networks in making their content promotion efforts more visual. Tweets with images get more engagement, photos on Facebook get more engagement, and even images on LinkedIn get more engagement. It is also recommended to create a branded “featured image” to share with your post while also creating separate images for each of the main points in your content to maximize the amount it can be shared with your audience. GrubHub executes this tactic well by posting salivating images of their products across social media platforms to incentivize customers to order a meal online.5

Figure 5. Marketers report the increasing importance of visual content to increase engagement.

2. Businesses are focusing on refining their headlines for increased engagement through constant A/B testing. Posting your content across social media platforms with

4 Stelzner, M. (2016, May). 2016 Social Media Marketing Industry Report. Retrieved December 30, 2016, from https://www.socialmediaexaminer.com/wp-content/uploads/2016/05/SocialMediaMarketingIndustryReport2016.pdf

5 Guest, Social Times. (2015, July). 10 Brands Doing an Amazing Job on Social Media. Retrieved on December 30, 2016 from http://www.adweek.com/socialtimes/michael-patterson-10-brands-amazing-social-media/624169


http://www.adweek.com/socialtimes/michael-patterson-10-brands-amazing-social-media/624169

https://www.socialmediaexaminer.com/wp-content/uploads/2016/05/SocialMediaMarketingIndustryReport2016.pdf

different titles in each, and even conducting A/B tests on across platforms as well to see which headlines are more effective to promote your content on which social networks. There are several tools available online that assist in researching effective titles based on the frequency of the words used and the past performance for the combination of words used.

3. Video content is also seeing a huge spike in popularity over the past few years due to it being able to deliver information in a digestible way, live streaming has become a must in today’s marketing efforts. Facebook’s live feature was a success upon release and only serves to prove that point further. GoPro leverages the power of user-generated content to share the experiences of its user base across its social media platforms. Their “Photo of the day” posts reach hundreds of thousands of people.6

4. Buy buttons and other CTA’s such as downloads and subscriptions are becoming more common in advertising on social media. They are now starting to appear in user’s newsfeeds across platforms and profiles with fewer distinctions from organic content. This form of an integrated cart in the daily social activities of users are making it easier than ever to convert them into real customers.

5. As social media platforms mature, there are new forms of communication being created within them. Some platforms are offering means of customer service, increasing the interactivity of exchanges between brands and consumers. Facebook is launching a new communication channel, Messenger for Business, while also revamping their current messenger app to include more features and new user interface design. Social platforms are coming closer and closer to bridging the gap between brands and consumers. There is also currently a push for more personalization. Users are tired of seeing the same types of content populate their newsfeeds, resulting in platforms investing more into research to develop more customization for each personal user. Facebook employs an algorithm that displays content on a user’s newsfeed based off of past reactions with certain types of content.7

6. Inspirational and imaginative posts are the most successful across social media platforms. It also forces a separation from any kind of company positioning, offering their users something valuable. It is not always about advertising the company, but being considerate of its followers. Dove has been committed to helping women realize their beauty potential through their empowering campaigns and content aimed at making women truly feel good about themselves. Their “Real Beauty” campaign


7 Schaffer, N. (2016, March). 11 Effective Ways to Use Social Media to Promote Your Content. Retrieved on December 30, 2016 from http://www.curata.com/blog/11-effective-ways-to-use-social-media-to-promote-your-content/


http://www.curata.com/blog/11-effective-ways-to-use-social-media-to-promote-your-content/


was extremely successful in increasing brand exposure by creating buzz for the company while challenging previous conceptions about female beauty.8

7. With consumers making the shift from desktop to mobile, it is vital that a company has their website, store, ads, and other content optimized for mobile. Mobile traffic continues to increase and Google is pushing for further mobile optimization with features like accelerated mobile pages, which is the idea that publishers can create mobile optimized content once and have it load instantly everywhere.

8. Sharing content at the right time is key to ensuring maximum engagement. Smart companies incorporate this concept into their posting schedule. Some platforms have features designed to aid you in this process, such as Facebook Insights and Twitter Analytics. Social media management has been revolutionized by automation software such as Buffer and Hootsuite. These social media tools aid businesses in streamlining their content publishing across several social media platforms with deep reporting features and several integrations with other tools, plugins, and applications. They offer value in saving businesses time and ease with which they are able to manage multiple social networks, collaborate with team members, and get the best results for their social strategy.

9. Companies have seen an increase in the frequency that they post as well. The most effective way to post content is to promote it multiple times on social media with multiple images and headlines. With organic reach on a decline across all social media platforms, doing this increases the probability of ensuring the audience has a chance to see the appropriate content. Asking for questions and feedback increases engagement with users by encouraging communication. In this form, companies improve both their public relations with their users and their content marketing.9

10. Businesses are leveraging their employees and communities to help them promote their content. By utilizing the strength in numbers, joining and becoming an engaging member of relevant communities allows companies to promote their content to a very targeted audience of social media users. There are millions of communities within each social media platform, and businesses are beginning to become more involved with them to reach their target audience and increase their reach with those that matter most.10


, 10 Schaffer, N. (2016, March). 11 Effective Ways to Use Social Media to Promote Your Content. Retrieved on December 30, 2016 from http://www.curata.com/blog/11-effective-ways-to-use-social-media-to-promote-your-content/10




Future of Social Media

Social media is rapidly changing with its platforms, functionality, and best practices along with technology bringing forth new developments throughout the years such as virtual reality, live video, advanced analytics, and wearable technology. These disruptions have revolutionized the way social media interacts with its users. Looking forward with the refinement of these technologies, it is critical to continue to deliver the experiences that users derive from being on these platforms. This could range from great customer service to great product design. As technology continues to bridge the gap between companies and consumers, you can expect new tactics to increase engagement and brand loyalty within followers.

With the release of live video and Facebook 360 this year, social networks are slowly evolving to become the center of user’s consumption and entertainment. Many smart companies are already taking advantage of live video and have experimented with great success. Buzzfeed boasted over 800,000 views, reaching the biggest Live hit to date when they posted a video about watermelon wrapped around with rubber bands until it exploded. With more brands becoming acquainted with this new technology, there will be increased competition for the same reach, and thus organic reach will decrease due to the increase in number of videos.11

Facebook is not the only platform to cut down on organic reach either, most major platforms are cutting back on the organic visibility and instead greatly prioritizing the content that comes from individual users. While this serves to enhance the user experience by tailoring their newsfeed to content of their liking, one of the peripheral effects for brands is an increase in spending to promote their content.12

With the major social media platforms such as Facebook, Twitter, and Instagram maturing, new social platforms could emerge and focus on niche segmentation. Snapchat for example, has been adding a handful of customizations to its photos and videos for users to send privately and temporarily that appeals to a very specific social need that the major platforms have not capitalized on. These small, yet meaningful differences are the novel experiences that these new platforms can focus on. A greater diversity of platforms with smaller, more focused user bases for each one is a trend that will continue.13

11, 12, 13 DeMers, J. (2016, August). 5 Possibilities For the Future of Social Media Marketing. Retrieved December 30, 2016, from http://marketingland.com/6-possibilities-future-social-media-marketing-188391

12

13


http://marketingland.com/6-possibilities-future-social-media-marketing-188391

Figure 6. Social Media users continue to use a relatively diverse array of platforms.

A realm of new opportunities and platforms will stem from new technologies such as virtual and augmented reality. They present the opportunity to revolutionize the way we communicate and provide innovative ways for users to experience the world around them. The deep immersion that these experiences offer tend to emphasize any message, which leads to a greater payoff in the result of greater engagement. With greater real-time interactions, more data will be available to continuously improve the service and gather insights from users to discover new avenues of application to the technology.


Appendix

Figure 1. 8 out of 10 small businesses are using social media in their marketing efforts.Source: LinkedIn Survey

Figure 2. Majority of respondents carry out social media marketing on Facebook.Source: Social Media Examiner


Figure 3. Small business owners and marketers put increased exposure via social as the top benefit.

Source: Social Media Examiner

Figure 4. Marketers use Facebook ads twice as much as Google Ads.Source: Social Media Examiner


Figure 5. Marketers report the increasing importance of visual content to increase engagement.Source: Social Media Examiner

Figure 6. Social Media users continue to use a relatively diverse array of platforms.Source: Pew Research Center


References

Wagner, K. (2014, February). LinkedIn: 81% of Small and Medium-Sized Businesses Use Social

Media. Retrieved December 30, 2016, from


Smith, K. (2016, March). Marketing: 96 Amazing Social Media Statistics and Facts for 2016. Retrieved December 30, 2016, from


DeMers, J. (2016, August). 5 Possibilities For the Future of Social Media Marketing. Retrieved December 30, 2016, from


Stelzner, M. (2016, May). 2016 Social Media Marketing Industry Report. Retrieved December 30, 2016, from


Demers, J. (2016, November). 7 Social Media Marketing Trends That Will Dominate 2017. Retrieved December 30, 2016 from

http://www.forbes.com/sites/jaysondemers/2016/11/10/7-social-media-marketing-trends-that-will-dominate-2017/#54354c3373a2*

Guest, Social Times. (2015, July). 10 Brands Doing an Amazing Job on Social Media. Retrieved on December 30, 2016 from


Pick, T. (2016, January). 47 Superb Social Media Marketing Stats and Facts. Retrieved on December 30, 2016 from


Schaffer, N. (2016, March). 11 Effective Ways to Use Social Media to Promote Your Content. Retrieved on December 30, 2016 from






http://www.forbes.com/sites/jaysondemers/2016/11/10/7-social-media-marketing-trends-that-will-dominate-2017/#54354c3373a2

http://www.forbes.com/sites/jaysondemers/2016/11/10/7-social-media-marketing-trends-that-will-dominate-2017/#54354c3373a2








Greenwood, S. (2016, November). Social Media Update 2016. Retrieved on December 30, 2016 from

http://www.pewinternet.org/2016/11/11/social-media-update-2016/


http://www.pewinternet.org/2016/11/11/social-media-update-2016/



Social Media Marketing Report 2016

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