Social Media Marketing: From The Perspective of Millennials

Students: Ryann Kopacka, Sarah Kremblewski, Michael Okimoto | Faculty: Bill Pearce | May 2016

Social Media Marketing:From the Perspective of Millennials

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As MBAs re-entering the workforce, we wanted to know: What does social media mean

for marketers?

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What is the role of social media in the

marketing mix?

Social has to be a part of the mix, regardless of business industry or consumer target, because that is where consumers increasingly spend their time. In 2016, nearly 8 in 10 Americans used social media. Furthermore, Americans averaged 44 minutes per day using social media, an 11.8% increase over 2015. Although annual growth for time spent on social media is slowing, this figure was the highest among all media forms.

Social media offers a brand:•  Responsiveness (speed to market, agility)•  Lower cost compared to traditional channels (TV, radio, etc.)

Depending on your brand, social media can either amplify and build off of marketing campaigns on traditional channels or work alone to accomplish marketing objectives.

3Sources: Team analysis and customer interviews, http://www.entrepreneur.com/article/218160, http://www.adweek.com/news/technology/marketers-can-now-run-studies-see-how-people-respond-their-mobile-ads-168770, http://www.adweek.com/news/technology/bolstered-holiday-budgets-facebook-s-ad-revenue-hit-56-billion-q4-169237, http://thinkbonfire.com/brand-authenticity-data-infographic/

ContentPlatform EssenceExecution FrameworkEvaluation Framework

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Platform EssenceKey insights for the top 6 social media platforms,with a focus on business to consumer interaction

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What is Platform Essence?

Platform Essence is a framework we created and used to uncover actionable insights about social media platforms for marketers.

Our framework has three key pillars:

1. Who: describes the reach of specific audiences (gender & age) who are most engaged on the platform.2. What: identifies the marketing objectives – from awareness to loyalty – that a platform excels at fulfilling.3. How: illuminates the content strategy, both content format and tone, that will help brands effectively communicate with consumers on the platform.

For each pillar, we offer key insights that capture the essence of the platform.

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Facebook: Your Friends

Who?

What?

How?

Fit?

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Facebook has the largest audience due to network effects, reaching 1 in 5 people in the world including half of Americans.

Facebook is not very cool among teens, but it remains strong with adults.

Facebook reaches over 1.5 billion monthly active users (MAUs) today. Network effects make it necessary for many Americans to use Facebook and difficult for them to leave.

Teens do not consider Facebook to be as cool as other social platforms because their parents are on it. Due to network effects, teens cannot easily leave Facebook.

Facebook excels at building awareness.

It’s difficult to drive consideration, trial, and loyalty, because it’s hard for brands to create content that draws users’ attention away from friends’ posts.

Brands must be ready to pay for ads on Facebook to break through the wealth of content on the platform.

Facebook’s massive reach among all audiences, combined with its trove of user information, enables marketers to precisely target ads at various consumer segments.

The most common posts on Facebook are related to friends and involve both big and small life moments: birthdays, trips, weddings, job promotions, graduations, etc.

Facebook restricts the reach of brands by using strict algorithms.

The most common use of Facebook is for content distribution.

Users stay updated on what friends, brands, and influencers are doing via a variety of content .

Facebook specifically prioritizes the trending type of content (e.g. videos).

Most posts are links to articles and videos that move people off the platform.

Users have more content options - images, videos, live streams, and more - than any other social platform.

Currently, video posts receive more reach because the algorithms have been changed to more frequently surface this type of content.

Large brands: A presence on Facebook is the bare minimum if the brand is willing to maintain and update the content.

Small brands: Brands can deliver a holistic content strategy that fulfills different communication objectives.

Large brands should be on Facebook because of the network effect and scale.

50% of Facebook users find a brand page more useful than the brand’s website.

Insight Rationale

Sources: http://www.huffingtonpost.com/2014/06/24/teens-facebook_n_5525754.html, http://www.business2community.com/social-media/top-brands-use-social-media-marketing-0995357#hAGaVOjsH94ZGbK0.97, http://marketingland.com/21-news-feed-updates-that-have-changed-how-pages-use-facebook-126066, http://www.businessnewsdaily.com/7832-social-media-for-business.html, http://adage.com/article/digital/facebook-start-automatically-captioning-video-ads/302616/

YouTube: Entertaining Videos

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YouTube has a massive global audience, reaching 1 in 6 people in the world.

In the US, YouTube reaches half of Americans.

YouTube has over 1.3 billion users (second in size to Facebook), with 80% of video views coming from outside the U.S.

In the U.S., YouTube has better reach among people 18-49 than any single cable network.

YouTube is one of the best platforms for building awareness and consideration because video enables storytelling.

Storytelling is a natural and powerful way that humans interact with each other.

Entertaining content is key to generating video views and sharing.

YouTube is a good place for long-form ads compared to 30-second TV spots.

The top categories (based on video views and video watch time) on YouTube are music and gaming.

YouTube’s video ads can be longer than the traditional 30 and 60 second TV spots, enabling brands to tell richer stories.

All brands: both small and big brands must be able to create quality entertainment to be successful on YouTube.

Four of the top five brands on YouTube (by subscribers) are natural content creators and entertainers (Angry Birds, LEGO, GoPro, and Red Bull).

Insight Rationale

Fit? 4

How? 3

What? 2

Who?

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Sources: YouTube Press Statistics, 2016, http://www.reelseo.com/hours-minute-uploaded-youtube/, Based on employee interviews, http://www.adweek.com/socialtimes/top-brands-twitter-060215/614504

Instagram: Beautiful Photos

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Instagram is loved by the masses around the world.

Instagram has a younger audience (relative to other platforms), enabling brands to reach 2 in 3 U.S. teens.

Instagram has 400 millions MAUs, posting 80M pictures daily. 77% of users are from outside the US.

90% of users are under the age of 35, 50% of 18-29 year-olds use it, and 66% of teens use it.

Instagram is a platform for building brand affinity.

Brands may find it challenging to drive awareness or purchase on Instagram.

Users must actively find and follow brands by using Instagram’s search function. The initial effort means users are likely more committed to engaging with the brand’s content.

Brands may find driving awareness among new consumers difficult, as ad space is currently limited. Driving purchase may also be tough because Instagram does not allow direct links in organic posts.

Instagram has a photo-only appeal and projects simplicity with its chronological newsfeed. Beautiful photos are more likely to grab the attention of followers.

“Instagram Effect”: when the same image is shown to people on different platforms, it’s viewed as 2.8X more imaginative on Instagram.

All brands: small and large brands must be prepared to deliver high-quality, scroll-stopping photos.

The top five brands on Instagram (by followers) are brands that excel at creating beautiful photos (Nike, National Geographic, Victoria’s Secret, Forever 21, and H&M).

Insight Rationale

Fit? 4

How? 3

What?

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Who?

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Sources: http://www.independent.co.uk/life-style/gadgets-and-tech/news/instagram-rolls-out-clickable-links-and-carousels-but-only-for-advertisers-10087605.html, http://techcrunch.com/2016/02/03/instagram-video-ads/, http://techcrunch.com/2016/02/02/profiting-from-pretty-pictures/, http://www.businessnewsdaily.com/7832-social-media-for-business.html, http://expandedramblings.com/index.php/important-instagram-stats/2/ http://expandedramblings.com/index.php/important-instagram-stats/2/

Twitter: Live Conversation

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Twitter reaches young and middle-age adults, with a third of online adults on the platform.

Twitter has more limited reach relative to larger social platforms.

43% of Twitter’s audience is 25-44 year-olds. 32% of online 18-29 year-olds and 29% of online 30-49 year-olds are on the platform.

Twitter has 320M MAUs.

Twitter is useful for generating loyalty / customer service because brands can directly respond to consumers in real-time.

In 2015, there was a 2.5X increase in customer service conversations on Twitter compared to the past two years.

Users discover breaking news and engage in real-time conversation with brands, organizations, celebrities, and other influential figures.

Twitter limits the number of characters possible in each post, which encourages faster dialogue. Images and videos are optional when tweeting, but text is required.

Brands must be able to quickly create content that is relevant to the moment.

Brands must also be prepared to respond to customers in a timely fashion.

Four of the top five brand accounts are news companies (CNN, ESPN, NYT, Real Madrid), suggesting that real-time content creation is paramount to success on Twitter.

60% of consumers expect brands to respond to customer service requests within an hour.

Insight Rationale

Fit?

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How? 3

What? 2

Who? 1

Sources: http://www.businessinsider.com/update-a-breakdown-of-the-demographics-for-each-of-the-different-social-networks-2015-6, https://blog.twitter.com/2015/research-four-ways-brands-can-build-customer-service-relationships-on-twitter, https://business.twitter.com/help/what-are-promoted-tweets#, http://www.business2community.com/twitter/9-types-twitter-ads-need-know-2016-01421430#ymqbwGvaH5X82Ee4.97, https://hbr.org/2015/04/the-best-and-worst-corporate-tweeters, https://blog.twitter.com/2015/research-four-ways-brands-can-build-customer-service-relationships-on-twitter http://www.pewinternet.org/2015/08/19/the-demographics-of-social-media-users/

Snapchat: Playful Stories

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Snapchat has an extremely engaged and loyal teen and young adult audience. Snapchat reaches ~7 in 10 U.S. teens*.

Snapchat has over 100 million daily active users (DAUs) and 45% of its users are 18-24 year-olds. Among all platforms, Snapchat has the greatest reach among U.S. teens online (72%).

Snapchat is great for building loyalty because users who follow brands have put forth significant effort to do so.

Snapchat is also useful for driving awareness because current ad formats are carefully integrated into the Snapchat experience.

Discovering brands on Snapchat is difficult. Users must search outside of the platform for brand usernames. The effort required to find and follow brands suggests that users will then be committed to viewing that brand’s content.

Current ad formats are limited but fit in seamlessly with existing content, driving high performance.

Ephemeral messages cause users to communicate with and expect more authenticity than they do on other social platforms.

There is more one-on-one relationship building that shows unique perspectives.

Snapchat is about playful and non-sensical stories.

Users cannot see the popularity of messages because Snapchat does not offer the typical social engagement features (sharing, liking, commenting).

Direct messaging and stories typically include raw and unedited images and videos that offer a behind-the-scenes perspective.

Snapchat opens up to your camera to capture your story and enrich it with filters, emojis, drawings, and text.

Brands must be able to create authentic and playful stories. Current advertisers primarily come from entertainment (ex. games) and fashion industries.

Insight Rationale

Fit? 4

How?

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What?

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Who? 1

Sources: http://www.businessinsider.com/update-a-breakdown-of-the-demographics-for-each-of-the-different-social-networks-2015-6, http://mashable.com/2015/10/08/why-people-like-snapchat#du138Spamkqp, http://www.statista.com/statistics/199242/social-media-and-networking-sites-used-by-us-teenagers/, http://www.pewinternet.org/fact-sheets/teens-fact-sheet/ . *Teens defined as 12 – 17 year-olds.

Pinterest: Inspirational Images

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Pinterest has a strongly female oriented userbase, reaching 44% of American adult women online.

Pinterest has over 100 million MAUs. 80% of users are women and 50% of users are between the ages of 25-54.

Pinterest is most useful for building consideration and loyalty.

There’s purchase potential on Pinterest, but the platform isn’t quite fully delivering on this objective yet.

Pinterest is about searching for creative ideas about how to use or do things.

Users typically pin things they want to do or buy in the future.

The foundation of the platform is collecting inspirational images.

Content that is tasteful is more likely to be saved (pinned) by users.

Users collect visual content that will inspire their future actions and purchases (e.g. decorating a room).

The top five accounts (by followers) are all design-related (interior, graphic, etc.), indicating that tasteful and trendy content drives success on the platform.

Brands must be able to create inspirational and tasteful images. Three of the top five brand accounts are from retail (L.L. Bean, Nordstrom, Etsy), a category that lends itself to tasteful imagery.

Insight Rationale

Fit? 4

How?

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What? 2

Who? 1

Sources: https://business.pinterest.com/en/promoted-pins?utm_medium=2023&utm_source=31&utm_campaign=GAdspp, Based on employee interviews, http://pinauthority.com/pinterest_users/top100/20/0/followers, http://www.tapinfluence.com/top-5-brands-on-pinterest/ https://help.pinterest.com/en/guide/all-about-pinterest

Platform Essence summary

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Reach (MAU) Core Users (U.S.) Content Format & Tone Marketing Objectives

Facebook 1.5B+ All audiences Your Friends Awareness

YouTube 1.3B+ P18-49, over-indexes in US Entertaining Videos AwarenessConsideration

Instagram 400M Adults & Teens: 50% of 18-29 YOs, 66% of teens

Beautiful Photos ConsiderationLoyalty

Twitter 320M Adults: 32% of online 18-29 YOs, 29% of 30-49 YOs

Live Conversation Loyalty

Snapchat 200M Teens: 72% of US teens Playful Stories Awareness Loyalty

Pinterest 100M Adult Women: 44% of US online women

Inspirational Images ConsiderationLoyalty

Audience Platform Brand

Execution Framework: Play The Elimination GameDetermining which social media platforms to use and how to use them

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Follow the four step decision process when using social media as part of the marketing mix

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Who?“If you need to target specific consumer, use platform.”

What?“If you need to achieve a marketing objective, use platform.”

“If you need to target women in their 20s, use Facebook, Instagram, and Pinterest.”

“If you need to raise awareness, use Facebook, Youtube and Snapchat.”

How?“If you are on platform choice, you should do content strategy.”

“If you are on Instagram, you should post beautiful photography.”

Fit?“If your brand wants to be on platform(s), does the content required fit with your brand?”

“If your brands wants to be on Instagram, does the beautiful photography fit with a food brand? A financial services firm?

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Sources: Team analysis

Understanding your target consumer is the first priority in determining where to play among social media platforms

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Reach (Monthly Active Users)

1600M

100M

50+ YO<15 YO Audience (Average age

of users)

Who?

What?

How?

Fit?

ACTION: Select the platform(s) that reaches your target audience, eliminate others.

PROMPT: “If you need to target specific consumer, use platform.”

Keep In Mind:

Selecting your target audience for social media should align with your marketing objectives and marketing mix.

Consider the growth and scale, not just current demographics, of each platform toward achieving your brand objectives.

Sources: www.socialbakers.com, http://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/

Platforms excel at fulfilling different marketing objectives

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Tell you what our brand is:

Awareness / Knowledge

Convince you why our brand is relevant to you:

Consideration / Persuasion

Get you to take action:

Trial / Purchase

Build your affinity and retention:

Loyalty /Retention

ACTION: Select the platform(s) that fits your objectives out of the remaining options, eliminate others.

Who?

What?

How?

Fit?

PROMPT: “If you need to achieve a marketing objective, use platform.”

Sources: http://www.business2community.com/social-media/top-brands-use-social-media-marketing-0995357#hAGaVOjsH94ZGbK0.97, http://www.wordstream.com/social-media-marketing

Depending on the platform, different content is required

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If the brand has chosen a platform that reaches its target audience and achieves its marketing objectives, there is a certain type and tone of content that is required for success.

Amount of content creation required

With content that is about...

Whose content represents the...

Facebook Low Your friends Past

Instagram High Beautiful photos Near past

Twitter Low Live Conversations Present (real-time)

Snapchat Moderate Playful stories Present

Pinterest Moderate Inspirational images Future

YouTube High Entertaining videos Past

Who?

What?

How?

Fit?

Sources: Team analysis and customer interviews

PROMPT: “If you are on platform choice from step 1 & 2, you should do content strategy.”

ACTION: Depending on platforms chosen, develop content that fits with the platform essence.

Note: To determine the frequency of posts or best in class use of platforms, please use sources recommended in the “Evaluation Framework”

Style and wording of content is specific to your brand essence

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Awareness Consideration Loyalty

Based on the platforms chosen, content can fulfill your brand’s communication objectives similar to the examples above.

Who?

What?

How?

Fit?

To be successful, your brand must fit the platform content requirements

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Depending on brand objectives, our framework, and market forces, a brand may want to use certain social platforms but not all brands have the right content to fit each platform. Using a platform incorrectly could potentially hurt a brand’s image.

Example: It is difficult for a bank to create beautiful photography for Instagram that helps build its brand in an authentic way.

Who?

What?

How?

Fit?

Sources: http://blog.hubspot.com/marketing/instagram-brand-mistakes

ACTION: Do not invest the resources if your brand cannot appear authentically on the chosen platform in a way that positively builds the brand.

PROMPT: “If your brand wants to be on platform(s), does the content required fit with your brand?”

Doing It Well: GoPro

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Fit?

How?

What?

Who?

GoPro is a camera company, so having stunning photography and videos fits these platforms well.

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GoPro wants to engage young users, interested in sports and the outdoors.

GoPro wants to get potential consumers consistently engaged with the brand (consideration).

GoPro wants to inspire others to “be the hero” and lead in media content related to this goal.

Framework ResultsBackground: GoPro has the “Be the Hero” campaign idea that is supported with television commercials. It wants to amplify this campaign with its target audience online.

Sources: http://contentmarketinginstitute.com/2015/09/brand-learn-from-gopro/

At least 6,000 GoPro-tagged videos are uploaded to YouTube every day.“GoProing” is now a verb (and a hashtag on Twitter) used to describe the phenomenon.With more than 3.8 million subscribers, GoPro is one of the leading brands on YouTube.It also has 8.6M followers on instagram.

Impact

Doing It Well: Dollar Shave Club

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Fit?

How?

What?

Who?

As a new brand, DSC humorous brand personality made it a perfect fit to launch the brand on YouTube.

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Dollar Shave Club (DSC) wanted to reach young men looking for a more convenient, lower-cost shaving solution.

DSC needed to create awareness and trial of its low-cost, mail-delivery shaving solution.

DSC launched a short video in 2012 (Our Blades Are F***ing Great) on YouTube to build awareness and drive trial among young men. Facebook was also used to generate awareness of the video.

Background: Dollar Shave club is a new brand that launched with limited resources but a unique campaign idea. They initially executed exclusively online.

Sources: https://www.entrepreneur.com/article/224282

Framework Results

12,000 orders within two days of launching original DSC.Original DSC video now has 22MM+ views on its YouTube channel.Impact

Needs Improvement: Wells Fargo

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Fit?

How?

What?

Who?

However, Wells Fargo does not have beautiful images that can tell a story but does have news.

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Wells Fargo has a “Total Market Approach” (all adults)

Wells Fargo wants to build loyalty and affinity; maintain and improve relationships with current customers

Wells Fargo wants to respond to and engage with customers.

Background: Wells Fargo is a large institution that provides financial solutions to its consumers and supports its marketing campaigns through all channels.

Sources: http://www.mediapost.com/publications/article/243243/wells-fargo-bets-on-total-market-approach-thread.html, https://www.wellsfargo.com/about/corporate/vision-and-values/our-strategy/, http://www.americanbanker.com/issues/179_60/wells-fargo-sets-up-war-room-to-monitor-social-media-sites-1066551-1.html

Framework Results

Wells Fargo set up a social media war room to respond to both negative and positive comments.It has a successful 228k followers on Twitter.BUT its Instagram account only has 12k followers.

Impact

Evaluation FrameworkHow to understand new social media platforms

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How should you evaluate an emerging social media platform?

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A marketer should assess an emerging social platform from two perspectives: 1. Consumers and how they use it2. Marketers and the opportunities for them

Our Evaluation Framework provides guidance on what questions to ask and how to answer them.

Sources: Team analysis and customer interviews

Should an emerging platform even be considered as part of your marketing mix options?

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Questions to ask How to answer the questions Where to find the answers

What are the existing platforms? Narrow down focus based on our framework (B2C only) or add in others as needed (such as LinkedIn).

Internal brand resources and analysis, the Execution Framework above, online resources.

Does this platform reach new users compared to current platforms?

Evaluate the demographics of the platform in comparison to other existing sites.

Interviews with new platform account executives, compare with online resources.

Is this platform growing, will it reach a large enough scale to achieve brand objectives?

Evaluate whether emerging platforms will reach the same scale compared to developed platforms, enabling them to have strong impact.

Interviews with platform employees, company announcements and publications, online resources.

Or if no longer growing, did it already reach the scale required for impact?


Who are the consumers on the platform? How is this platform placed in Step 1 of the Execution Framework?

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What is the reach? MAUs, DAUs Company publications and online resources

Where does platform over-index? Demographics of user (age, gender) Company contacts, online resources


How can this platform be used to support communication objectives? How is the platform placed in Step 2 of the Execution Framework?

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What is the nature of the user engagement on the platform?

Time spent on site Platform contacts

How does it work for marketers? Advertising opportunities and constraints (formats, targeting)

Platform account person, on-platform publications, case studies

Organic brand account features

What do brands use the platforms for? Interviews with brand managers, case studies

Professional and personal connections, other marketing websites

What are the challenges brands are solving with this platform?

Interviews with brand managers Professional and personal connections

What is the best-in-class use? Case studies of top accounts and brands Top brand account analysis


What is the content strategy that accomplishes the brand objectives? How is this platform placed in Step 3 of the Execution Framework?

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What type of content is most engaged with/shared?

Consumer interviews, understand how the platform describes itself (its purpose and benefit)

Read on website, conduct interviews with platform employees and users

What is the tone of the content? Evaluation of popular posts, popular accounts (by followers)

Top user accounts (non-brand)

What costs and resources are required for a brand to maintain presence on site?

Interviews with brand managers, user interface, what it takes to upload/share/like

Interviews with platform account managers, online resources, case studies


Thank You!

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About the Students

Ryann is from Atlanta. Before business school, she worked as a management consultant. For her MBA internship, Ryann worked as a brand manager at The Clorox Company.

Connect with her at:Linkedin.com/in/rkopacka

Ryann KopackaSarah is from Toronto, Canada. Before business school, she worked in brand management at Procter & Gamble. For her MBA internship, Sarah worked in social media marketing at Mattel Inc.

Connect with her at:Linkedin.com/in/sarahkremblewski

Sarah KremblewskiMichael is from Seattle. Before business school, he worked as an industry analyst at Google. For his MBA internship, Mike worked as a brand manager at Coca-Cola.

Connect with him at:Linkedin.com/in/mokimoto

Michael Okimoto

Students: Ryann Kopacka, Sarah Kremblewski, Michael Okimoto | Faculty: Bill Pearce | May 2016

Social Media Marketing:From the Perspective of Millennials