Improving your Social (media) Life can bring rich dividends – that was the key message delivered by Mike Cooper, Global CEO, PHD Worldwide at the exchange4media Conclave, held in Mumbai on July 15, 2011. Jagran Group was the presenting partner of e4m Conclave.
Early this year, PHD completed 21 years. Apart from a major charity initiative, it also produced a film called ‘We are the future’. The film was designed to simulate thinking on marketing and media, and depicted young consumers telling agency professionals their likes and dislikes and implored them to expand their horizon of thinking.
Speaking at the Conclave, Cooper shared the journey of this film, which was put on YouTube by a colleague and how the response gave the agency new insights into using social media.
How can we harness positive power of social media?
Cooper chose a lot of data and statistics to drive home the point about how social media is increasingly becoming relevant for brands and how it can deliver measurable results.
According to him, three out of four Internet users were social media users. Social media advertising spend stood at $2.1 billion in 2010 and is expected to grow to $8 billion by 2015.
How much should we be investing in social media?
According to Cooper, there is evidence to support over investing in social media.
As per the Engagement D report, well managed companies take social very seriously. “Organisations with deepest social engagement increased revenue by 18 per cent last year,” Cooper pointed out, adding that social media significantly increased consideration.
In addition, making all campaigns social can increase RoI by 28 per cent.
Increasing sales through use of social media advertising
Cooper also shared the example of Dell, which claimed that $3 million sales were generated through Twitter alone. Similarly, Mazda used Facebook in the UK to offer 20 per cent discount if customers checked in through their Facebook accounts.
Promoted tweets are increasing becoming popular. Virgina America started the trend and promoted discounts through their tweets. Since they were the first one to do so, they ended up having their sixth best sales day ever.
What are social media fans worth?
According to Cooper a Syncapse study done recently tracked Facebook fans spending more as compared to regular customers, in many cases double that of regular customers and they were more loyal and recommend more.
“Social media is begging to emerge as a marketing discipline, which if carried out well, offer significant payback,” Cooper added.
Going forward, we must start building industry case studies as an industry, that was the key parting message by the CEO of PHD Worldwide.
Watch this space for more e4m Conclave stories…
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