Canada Social Media Marketing

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® Digital Intelligence Copyright ©2010 eMarketer, Inc . All rights reserved. November2010 Executive Summary: Canadaboastssomeofthehighestinternetpenetrationandsocialnetworking usageratesintheworld.Socialnetworkusersviewsocialmediaastheironlinehome—ahubfor communication,entertainmentandinformation. 121176 Canadiansreadilyadoptsocialnetworkactivities,oftenatrates higherthanusersintheUS,butgainingthetrustofusersona socialnetworkisabrandmanager’sbiggestobstacle. AsCanadianusershavegrownmorefamiliarwithsocialmedia, theyhavealsobecomemoreacceptingofadvertisinginthe space.Incorporatingstrategiesthatinvolvesocialmediaintothe everydayhabitsofuserscandriveengagement,benetingboth thebrandandsocialnetwork. Key Questions HowmanypeopleinCanadausesocialmedia? WhatarethedemographicsofsocialmediausersinCanada? HowmuchtimeareCanadiansspendingwithsocialmedia? Howdousersinteractwithbrandsonsocialmedia? Whatarebestpracticesforsocialmediamarketing? The eMarketer View 2 Canada Internet User and Online Ad Refresher 2  Social Media Usage 3 Engaging Consumers with Social Media 6 Looking Ahead 9 Conclusions 9 Endnotes 10 Related Information and Links 11 millions and % of internet users Social Network Users in Canada, 2008-2014 2008 11.4 (46%) 2009 13.6 (54%) 2010 15.1 (59%) 2011 16.1 (62%) 2012 16.9 (64%) 2013 17.7 (66%) 2014 18.4 (68%) Note: social network sites include sites where social networking is the  primary activity (e.g., Facebook, MySpace, LinkedIn), social network sites linked to portals such as Google and niche social network sites devoted to  a specic hobby or interest  Source: eMarketer, Oct 2010 121176 www.eMarketer.com Mike Froggatt [email protected] Canada Social Media Marketing

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    Digital Intelligence Copyright 2010 eMarketer, Inc. All rights reserved

    November2010

    Executive Summary: Canadaboastssomeofthehighestinternetpenetrationandsocialnetworking

    usageratesintheworld.Socialnetworkusersviewsocialmediaastheironlinehomeahubfor

    communication,entertainmentandinformation.

    121176

    Canadiansreadilyadoptsocialnetworkactivities,oftenatrateshigherthanusersintheUS,butgainingthetrustofusersona

    socialnetworkisabrandmanagersbiggestobstacle.

    AsCanadianusershavegrownmorefamiliarwithsocialmedia,

    theyhavealsobecomemoreacceptingofadvertisinginthe

    space.Incorporatingstrategiesthatinvolvesocialmediaintothe

    everydayhabitsofuserscandriveengagement,benetingboth

    thebrandandsocialnetwork.

    Key Questions

    HowmanypeopleinCanadausesocialmedia?

    WhatarethedemographicsofsocialmediausersinCanada?

    HowmuchtimeareCanadiansspendingwithsocialmedia?

    Howdousersinteractwithbrandsonsocialmedia?

    Whatarebestpracticesforsocialmediamarketing?

    The eMarketer View 2

    Canada Internet User and Online Ad Refresher 2

    Social Media Usage 3

    Engaging Consumers with Social Media 6

    Looking Ahead 9

    Conclusions 9

    Endnotes 10

    Related Information and Links 11

    millions and % of internet usersSocial Network Users in Canada, 2008-2014

    2008

    11.4(46%)

    2009

    13.6(54%)

    2010

    15.1(59%)

    2011

    16.1(62%)

    2012

    16.9(64%)

    2013

    17.7(66%)

    2014

    18.4(68%)

    Note: social network sites include sites where social networking is theprimary activity (e.g., Facebook, MySpace, LinkedIn), social network siteslinked to portals such as Google and niche social network sites devoted toa specific hobby or interestSource: eMarketer, Oct 2010

    121176 www.eMarketer.com

    Mike [email protected]

    Canada Social MediaMarketing

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    Canada Social Media Marketing 2

    The eMarketer View

    121483

    Key eMarketer Numbers: Canada Social Media

    27.1 million Internet users in 2014, up from 25.7 million in 2010

    18.4 million Social network users in 2014, up from 15.1 millionin 2010

    68% Social network users % of internet users in 2014,up from 59% in 2010

    $3.69 billion Online ad spending* in 2014, up from $2.11 billion

    in 2010Note: *in Canadian dollars

    Source: eMarketer, Nov 2010

    Canada boasts one of the most mature online

    markets in the world.Canadianinternetusersin2010will

    total25.7millionandby2014riseto27.1million,nearly78%

    ofthetotalpopulation.Onlineadspendingin2010willreach

    CAD2.11billion($1.85billion)andby2014willincreaseto

    CAD3.69billion($3.24billion),morethan27%oftotal

    mediaspending.

    A majority of internet users in Canada are on social

    networks.In2010,eMarketerestimatedthat59%ofinternetusersusedasocialnetworkatleastonceamonth,agure

    settoriseto68%by2014.Theseincludeusersonprimary

    socialnetworkslikeFacebook,MySpaceandLinkedInaswell

    asportal-linkedsocialnetworksandnichesitesforspecic

    interestgroups.

    Social network users are beginning to expect and

    appreciate targeted ads, but brands have to tread

    carefully.AccordingtoasurveybyTrendstream,32%of

    internetusersagreedthattargetedadvertisingimproved

    theiropinionofabrand.WhileVisionCriticalfoundthat77%

    ofinternetuserswereconcernedwithprivacyonsocial

    networks,advertiserawarenessandregulationchangeswill

    helptoaddressconcerns.Facebook,forexample,promisedto

    implementenhancedprivacyprotectionsafterconcernswere

    raisedbyCanadasprivacycommissioner.

    Social media marketing is an essential tool for

    online brand managers.Asinternetusersincreasethe

    timetheyspendonsocialnetworks,socialmediaaccounts

    foranincreasingshareofadimpressions.Pricesremainlow

    becauseofabundantinventory,butincreasingbudgetsand

    competitionforinventorywilldrivepricesupinthefuture.As

    aresult,nowisthetimeforbrandmanagerstotestnewsocial

    mediacampaignsonusers.

    Canada Internet User and OnlineAd Refresher

    InternetusageinCanadahasreacheda

    saturationpoint.eMarketerestimatesthat25.7

    millionpeoplewillgoonlineatleastoncea

    monthin2010,foratotalpenetrationof75.9%.

    Growthwillremaingradualandtherewillbe27.1

    millionusersand77.9%penetrationby2014.

    121118

    millions and % of populationInternet Users and Penetration in Canada, 2008-2014

    2008

    24.7(74.5%)

    2009

    25.2(75.2%)

    2010

    25.7(75.9%)

    2011

    26.0(76.5%)

    2012

    26.4(77.0%)

    2013

    26.8(77.5%)

    2014

    27.1(77.9%)

    Note: an internet user is a person of any age who uses the internet fromany location at least once per monthSource: eMarketer, Oct 2010

    121118 www.eMarketer.com

    Bycomparison,internetpenetrationintheUSwas71.2%

    in2010.

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    Canada Social Media Marketing 3

    OnlineadvertisinginCanadahasgrownatdouble-digitrates,

    rising13.7%in2009.Thatgrowthwillcontinuethrough2014.

    121117

    billions of Canadian dollars and % changeOnline Ad Spending in Canada, 2008-2014

    2008

    1.60

    2009

    1.82

    (13.7%)

    2010

    2.11(16.0%)

    2011

    2.43

    (14.8%)

    2012

    2.91

    (19.8%)

    2013

    3.27

    (12.5%)

    2014

    3.69

    (12.9%)

    Note: includes paid search, display, classified/directories, email and onlinevideo. 2009 figures include ads within video games; converted at average2009 exchange rate (US$1=1.14 Canadian dollars)Source: eMarketer, Sep 2010

    121117 www.eMarketer.com

    For additional information on this chart, see the Endnotes section.

    Totalonlineadspendingisexpectedtomorethandoublefrom

    CAD1.82billion($1.60billion)in2009toCAD3.69billion($3.24

    billion)in2014,acompoundannualgrowthrateof15.2%.

    Bycomparison,onlineadspendingCAGRduringthesame

    periodintheUSwillbelowerat9.8%.

    For more inormation on internet usage and onlinemarketing in Canada, see eMarketers October 2010report Canada Advertising and the Online Consumer.

    Social Media Usage

    AmajorityofinternetusersinCanadahave

    alreadytakentosocialnetworks.eMarketer

    estimatesthat59%ofallCanadianinternetusers

    and44.8%ofthetotalCanadianpopulationare

    onsocialnetworksin2010.Morethanhalfofthe

    totalpopulation,53%,isexpectedtobeactiveon

    socialnetworksby2014.

    121176

    millions and % of internet usersSocial Network Users in Canada, 2008-2014

    2008

    11.4(46%)

    2009

    13.6(54%)

    2010

    15.1(59%)

    2011

    16.1(62%)

    2012

    16.9(64%)

    2013

    17.7(66%)

    2014

    18.4(68%)

    Note: social network sites include sites where social networking is theprimary activity (e.g., Facebook, MySpace, LinkedIn), social network siteslinked to portals such as Google and niche social network sites devoted toa specific hobby or interestSource: eMarketer, Oct 2010

    121176 www.eMarketer.com

    Thenumberofpeoplevisitingsocialnetworksatleastoncea

    monthis15.1millionin2010,risingto18.4millionin2014.

    AnIpsosReidsurveyofCanadiansshowedthat55%ofonline

    adultsages18andolderhadasocialnetworkprole.Similarly,

    comScoreMediaMetrixfound52.4%ofinternetusershad

    visitedasocialnetworkdailyinSeptember2010.

    121241

    % of internet users

    Comparative Estimates: Social Network Usersin Canada, 2010

    eMarketer, Oct 2010

    Ipsos Reid, June 2010

    comScore Media Metrix*,Oct 2010

    Trendstream & LightspeedResearch, June 2010

    Vision Critical, Sep 2010

    % of internetusers

    59.0%

    55.0%

    52.4%

    49.0%

    45.0%

    Age

    All ages

    18+

    2+

    16-64

    18+

    Usage

    Use at leastonce per month

    Have a profile

    Daily visitors

    Managed profile inthe past month

    Daily users

    Note: *eMarketer calculationsSource: eMarketer, Oct 2010; various, as noted, 2010

    121241 www.eMarketer.com

    For additional information on this chart, see the Endnotes section.

    http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000733http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000733http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000733http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000733
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    TrendstreamandVisionCriticalreported49%and45%,

    respectively,ofinternetuserssurveyedwereonsocialnetworks.

    comScoreestimatedmonthlyvisitorstosocialnetworking

    websiteshadapenetrationrateof95%.comScorespanel

    datameasuresanyonewhovisitsasocialnetworkdomain,

    notnecessarilyactualusersofthesite,whichiswhy

    eMarketerincludeddailyvisitorsinitscomparativeestimate

    insteadofthemonthlygures.

    AsintheUS,FacebookstandsheadandshouldersaboveothersocialnetworkingsitesinCanada.

    121287

    Usage Metrics for the Top 10* Social Media Sitesin Canada, Sep 2010

    1. Facebook

    2. Windows Live Profile

    3. Twitter

    4. LinkedIn

    5. MySpace

    6. DeviantART

    7. Yahoo! Pulse

    8. Skyrock

    9. Digg

    10. Classmates.com

    Total social networking category

    Total internet audience in Canada

    Uniquevisitors

    (thousands)

    20,601

    6,652

    3,268

    2,530

    1,890

    1,107

    992

    835

    719

    546

    23,651

    24,905

    Averagedaily visitors(thousands)

    9,639

    543

    344

    208

    123

    97

    67

    68

    54

    27

    12,220

    23,323

    Averageusage daysper visitor

    14.0

    2.4

    3.2

    2.5

    1.9

    2.6

    2.0

    2.5

    2.3

    1.5

    15.5

    28.1

    Averageminutes

    per visitor

    339.8

    4.9

    22.2

    15.4

    11.2

    24.8

    4.1

    20.8

    2.2

    3.8

    319.0

    2,175.6

    Averagepages

    per visitor

    645

    11

    30

    32

    23

    41

    9

    43

    5

    7

    611

    3,091

    Note: ages 2+; home and work locations; excludes traffic from publiccomputers (i.e., internet cafes) and access from mobile phones and PDAsSource: comScore Media Metrix, provided to eMarketer, Oct 27, 2010

    121287 www.eMarketer.com

    AccordingtocomScoredata,Facebookdominatedthesocial

    networkmarketinCanadawith9.6millionaveragedailyusersin

    September2010.WindowsLiveProle,theNo.2site,registered

    only543,000averagedailyusersinthesamemonth.

    HitwisefoundthatFacebookhadmorethana65%shareof

    trafctosocialmediasitesduringtheweekofOct.23,2010.ThenexthighestsitewasYouTubewitha20%share.Noother

    siteinthesocialmediacategorybrokethe1%sharemark.

    Socialnetworks,especiallyFacebook,areheretostayin

    Canada.Toincreasetheexposureoftheirbrands,marketers

    musttakeadvantageoftheimpactthatsocialnetworkinghas

    hadoninternetuseinCanada.

    Social Media Demographics

    Socialmediausageisincreasingamongeverydemographic

    groupinCanada,butyoungerusersarestillmorelikelytobe

    activeonsocialnetworks.TrendstreamsGlobalWebIndex

    Wave2estimatedthat64%ofusersages16to34manageda

    socialnetworkprole.Usagedroppedto41%amongusers35

    to54and29%forusers55andolder.

    In2009,comScorereportedthat29%ofsocialnetworkvisitors

    were18-to34-year-oldsand44.7%wereadultsages35to64.Socialnetworkuserswereevenlysplitbygender.

    117080

    % of total

    Demographic Profile of Social Network Users inCanada, 2009

    Note: numbers may not add up to 100% due to rounding; monthly uniquevisitors to all social sitesSource: comScore Media Metrix, "Canada Data," 2009; provided toeMarketer by Starcom MediaVest Group, June 1, 2010

    117080 www.eMarketer.com

    65+5.2%

    Gender Age

    Income (CAD)

    Male49.6%

    Female50.4%

    2-1721.1%

    18-2411.0%

    25-3418.0%

    35-6444.7%

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    Canada Social Media Marketing 5

    Socialnetworksusersoftenprovidedemographicdatawhile

    signingup,offeringawealthofinformationnotavailable

    anywhereelse.Inmostcases,networksoffertoolstohelp

    marketerstargetadsbasedonthatdata.Effectivetargeting

    canoftenmakethedifferencewhenitcomestoconsumers

    relatingtoandultimatelypurchasingproductsorservices

    featuredinads.

    Time Spent on Social Networks

    comScorefoundthattheaverageuserspent5.3hourson

    socialnetworkingsitesduringSeptember2010.Facebook

    usagecameinslightlyhigher,averaging5.6hoursperuser.

    Accordingtoitsreport,The2009CanadaDigitalYearin

    Review,internetusersinCanadaledtheworldwithan

    averageof40socialnetworkingsitevisitspermonth.Engaging

    thiscaptiveaudienceshouldbehighonthelistofanyonline

    marketersplaninCanada.

    AnAccenturesurveyshowedthatfrom2008to2009,

    employedmillennialinternetusers(ages18to27)spent

    moretimeonsocialnetworkingwebsitesthancomScores

    September2010dataindicated,at2hoursperweek,alittle

    over8hourspermonth.

    121917

    hours

    Time Spent Using Social Media Tools per Week byMillennial* Internet Users in Canada, 2008-2009

    Social network sites 2.0

    Virtual communities0.4

    Blogging or Twitter0.2

    Note: *ages 18-27, employedSource: Accenture, "Jumping the Boundaries of Corporate IT: AccentureGlobal Research on Millennials' Use of Technology," Feb 10, 2010

    121917 www.eMarketer.com

    Addingintimespentonvirtualcommunities,blogsand

    microblogslikeTwitter,Acccenturefoundthatmillennialsin

    Canadaspent2.6hoursperweek,ormorethan10hoursper

    month,onsocialmedia.

    InitsConsumerologyReport:TechnologyandCanadian

    Consumers,BensimonByrnereportedthat24%ofFacebook

    usersages18to34spendatleast1hourdailyonthesite,

    comparedwithonly15%ofallusers.

    120043

    % of respondents

    Facebook Users* in Canada, by Age & Gender, Nov2009

    Gender

    Female 16%

    Male 13%

    Age

    18-34 24%

    35-54 13%

    55+ 7%

    Total 15%

    Note: *used for 1+ hours yesterdaySource: Bensimon Byrne, "Consumerology Report: Technology andCanadian Consumers" conducted by The Gandalf Group, Jan 1, 2010

    120043 www.eMarketer.com

    IpsosReidreportedthatFacebookuserssentanaverageof

    15.7messagesaweek,and13%sentmorethan25.

    121687

    % of internet users

    Average Number of Emails/Messages Sent Weekly viaTwitter or Facebook in Canada, Q1 2010

    0

    4%

    17%

    1

    9%

    15%

    2

    14%

    14%

    3

    13%

    11%

    4-5

    21%

    12%

    6-10

    15%

    8%

    11-25

    13%

    7%

    25+

    13%

    15%

    Facebook Twitter

    Note: numbers may not add up to 100% due to rounding; average numberof messages sent on Facebook=15.7 and Twitter=11.5Source: Ipsos Reid, "Ipsos Interactive Reid Report" as cited in press release,

    June 29, 2010121687 www.eMarketer.com

    IpsosReidssampleofTwitteruserswassmallerandless

    activethanitssampleofFacebookusers,butfrequent

    tweeterscarriedthelaggards.Consideringthat78%ofTwitter

    userstweeted10orfewertimesweekly,the15%thatdid

    tweetfrequentlyboostedtheaverageto11.5tweetsaweek.

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    Canada Social Media Marketing 6

    Theviralaspectofsocialnetworkscannotbeignored.

    Frequentusersofsocialnetworks,the13%ofFacebookand

    15%ofTwitteruserswhosentover25messagesperweek,

    canbepowerfulampliersofamarketersmessage.However,

    directcommunicationwithusersrequiresseriousinvestment,

    whetheritisadedicatedsocialmediamanagerorevenan

    entireteam.

    Thereisnoquestionthatmarketersshouldengagethesehigh-

    frequencyusersonsocialnetworksinordertoincreasetheirexposureonline.Butadvertisingisaboutmorethanexposure,

    andmarketersshouldalsousesocialmediaasacommunication

    channeltoengageandbuildtrustwiththeircustomers.

    Engaging Consumers withSocial Media

    Marketersndsocialnetworksattractivefor

    severalreasons,butthebottomlineisthat

    word-of-mouthbetweenfamilyandfriends

    iscontinuouslyrankedamongthehighest

    inuencersofproductpurchases.

    Socialnetworksbydesignprovideaplatformfortwo-way

    communicationbetweenbrandsandconsumers.

    We arent approaching social media as aplatform to advertise. We are currently usingsocial media as an open communicationsforumto listen to and address Canadians

    expectations of us.Mark Nicholson, head of onlineexperience at ING Direct, in an interview with Facebook

    Insight, October 2009

    Whilesocialmediamarketingcanbedifcultandtime-

    consuming,therewardsarehigh.Socialmediamarketing

    thatearnsitswayintotheconversationbetweenfamily

    andfriendscanbepowerfulfamilyandfriendsdeliver

    muchhigherlevelsoftrustthananymedia,VisionCritical,

    amarketingresearchrmbasedinCanada,saidinOnline

    SocialNetworks:TrustNotIncluded.Marketersshouldmake

    establishingtrustapriorityinanycampaignundertakenwith

    socialmedia.

    Inaddition,socialmediaenablesbrandstotrackhowcustomerspassdirectedmessagesandtargeted

    advertisementsontofriendsandfamilyinrealtime.No

    otheradvertisingallowsmarketerstoobservethiseffect,

    whichincreasesthevalueandimportanceofsocialmedia

    advertisingamongamarketersrepertoireofoptions.

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    Canada Social Media Marketing 7

    InitsreportcoveringCanada,theUKandtheUS,VisionCritical

    foundthatgainingconsumertrustthroughonlinesocial

    networkscannotbetakenforgranted.InCanada,only10%of

    consumerstrustedsocialnetworksand4%trustedforums,

    blogs,reviewsandchatrooms.

    121780

    % of respondents

    Consumers in Canada Who Trust Select Media, by Age,March 2010

    18-34 35-54 55+ Total

    Broadcast radio 45% 56% 49% 50%

    Print newspapers 47% 48% 38% 45%

    Online news 34% 43% 34% 38%

    TV 28% 40% 41% 37%

    Print magazines 32% 33% 22% 29%

    Online social networks 11% 12% 6% 10%

    Online forums, blogs, reviews or chat rooms 5% 4% 2% 4%

    Note: respondents who say the medium is "completely" or "verytrustworthy"Source: Vision Critical, "Online Social Networks: Trust Not Included," Sep15, 2010

    121780 www.eMarketer.com

    Thegoodnewsisthatthe18-to34-year-oldswereslightlymore

    likelytotrustsocialmediasources:11%trustedsocialnetworksand5%trustedforums,blogs,reviewsorchatrooms.

    Trendstream,initsongoingGlobalWebIndexWave2report,

    surveyedusersaboutoptionsavailableformarketerstrying

    toimproveuseropinionsoftheirbrandonsocialmedia.

    Respondentssaidthatfriendingabrand,usingtargeted

    advertising,creatinggroupsandsponsoringrelevantmusic

    andblogswerethemostlikelytacticsthatwouldimprove

    theiropinionofabrand.121143

    % of respondents

    Social Media Marketing that Improves Their Opinionsof Brands According to Internet Users in Canada,Jan 2010

    Becoming your friend in a social network

    38%

    Using targeted advertising

    32%

    Creating groups in social networks

    21%

    Sponsoring music downloads

    21%

    Sponsoring blogs

    19%

    Talking to bloggers directly

    17%

    Building a community where consumers and brands interact

    16%

    Creating branded online videos

    16%

    Creating company blogs

    12%

    Listening to people's comments12%

    Building a social network page

    11%

    Contacting me when I tweet about them

    4%

    Source: Trendstream and Lightspeed Research, "Global Web Index Wave 2"as cited in company blog, July 6, 2010

    121143 www.eMarketer.com

    Whilefriendingusersisthetop-rankedoption,Mashable,asocia

    anddigital-media-focusednewsblog,advisesmarketersnotto

    blastuserswithfriendrequestswithoutpermission.Evidence

    showsthatincludingusersfriendswholikedabrandoradinthenewsfeedandunderdisplayadsincreasedthelikelihoodofusers

    engagingthebrandonFacebook.

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    Engagementincreasesasusersbecomemorefamiliarwith

    socialnetworksasawhole.VisionCriticalreportedthat54%

    ofuserswhovisitedsocialnetworksdailythoughtthatonline

    socialnetworksweregoodplacesforbrandstoadvertiseto

    consumers,comparedwith43%oftotalconsumers.Another

    35%ofdailysocialnetworkuserssaidtheyenjoyedbrand

    informationthatwaspushedtothemthroughtheirnetwork.

    121400

    % of respondents

    Attitude Toward Brand/Product Info on Social Media

    According to Daily Social Media Users vs. TotalConsumers in Canada, March 2010

    Online social networks are good places for brands/products toadvertise to consumers

    54%

    43%

    I enjoy learning about brands/products via online socialnetworks

    35%

    25%

    I am able to make more informed purchase decisions because ofonline social networks

    24%

    19%I have purchased a product because of something I saw on anonline social network

    19%

    13%

    Visit social networks daily Total consumers

    Note: n=1,011 ages 18+Source: Vision Critical, "Online Social Networks: Trust Not Included," Sep15, 2010

    121400 www.eMarketer.com

    Acrosstheboard,dailysocialnetworkusersweremore

    receptivetobrandsonsocialnetworks.Thehighdegreeof

    engagementpositivelyaffectscustomersviewsofbrands

    onthesites.Thiscanbeharnessedtoincreaseabrands

    presenceonlineandultimatelyincreasesales.

    Brandmarketingcampaignsthatengagetheircustomersand

    encouragedailyusearegoingtobemoresuccessfulwith

    theirsocialmediaefforts.Socialmediamarketingeffortsthat

    increasethefrequencyofuserinteractionaredoublyeffective:

    Usersbecomemorefamiliarwithsocialmediaandbrandsat

    thesametime.

    Spotlight: Facebook Best Practices

    Facebook is the dominant social network in Canada.

    Marketers have several options to engage their targets onthe social network through its many eatures.

    The March 2010 ICOM report The Infuencer: A ConsumerVoice with Legs ound that 56% o internet users in Canadahad a Facebook account. However, just 12% o internetusers read about brands on Facebook and 6% addedcontent to a brands Facebook page.

    Mashable recommends integrating Like buttons into abrands website and email campaigns. Brands can even goas ar as sponsorships or running contests or users that

    Like a brand. The possibilities are essentially limitless aslong as the creative element is there to connect with theirtargets. Mashable also recommends taking advantage onew eatures on Facebook:

    Groups, or building potential online reviews, eventsand live chats with customers.

    Questions, or posing questions to users who haveLiked a brand.

    Places, specically or brands that can use Facebook in

    physical locations.Many brands in Canada have already implementedcampaigns on Facebook with great success. Telus, oneo Canadas largest mobile providers, successully tiedtogether cause marketing with social media. In September2010, Telus pledged to donate $200,000 to the Go Pinkcampaign to help local health organizations purchasedigital mammography equipment i they achieved 500,000Facebook Likes. By November 2010, Telus had more than502,000 Likes o its Facebook page.

    Telus combined the power o a compelling cause andsocial networking to gain measurable value rom brandrecognition on Facebook.

    Another example comes rom Molson Canadian, whichextended its Made From Canada promotion with the Seizethe Summer campaign in June 2010. Customers were drivento the brewerys Facebook page through TV, online ads andpromotional product inserts. Conceived by agency CP+BCanada, the campaign implemented a Facebook applicationthat awarded users with badges or activities.

    Facebook users could receive a Super AwesomenessBadge by completing specic tasks. In order to receivethe badges on their page, users had to veriy completiono tasks using a photo, riend conrmation or GPS tagging.Oten the badges included Canada-specic elements ohumor or adventure that would appeal to the targeted

    demographic o young beer drinkers. Two examples thatexempliy the creative were Cooked meat over re andSaw a whale badges.

    Its really an opportunity to put our consumer at the centero our campaign.John Francis, brand manager at Molson Canadian, asquoted in Marketing Magazine, July 19, 2010

    Completing a specic task entered users into weeklycontests or prizes like trips to Canadian Football Leaguegames and music estivals. At the beginning o thecampaign, Molson Canadian had nearly 370,000 FacebookLikes. According to Marketing Magazine, by July 2010,they reached 404,000 and by November were over 437,000.

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    Canada Social Media Marketing 9

    Looking Ahead

    Socialmediaadvertisingisheretostay.

    Econsultancy,initsSocialMediaandOnline

    PRReport2010,foundthat73%ofcompanies

    surveyedworldwideincreasedbudgetallocation

    forsocialmediain2010.Only3%decreasedthe

    amount.Another83%ofcompaniesexpectedto

    increasespendingin2011.

    eMarketerestimateddisplayspendingatCAD698million($612

    million)in2010,agurethatwillrisetooverCAD1billionby

    2014.Accordingtothe2009CanadaDigitalYearinReview

    reportfromcomScore,conversationalmediaaccountedfor

    nearly25%ofalldisplaymediaimpressionsfortheentireyear.

    Fortunatelyforthriftymarketers,socialmediaimpressions

    remainrelativelycheapandtotalshareofimpressionswillnot

    equaltheshareofspendinganytimeinthenearfuture.But

    conversationalmediasshareofdisplayimpressionswillgrow

    withtheincreaseinusersandtimespent.Associalnetwork

    penetrationreachessaturation,inventorymaybecome

    limited,causingpricestorise.

    Fornow,guresforsocialnetworkusersfaroutpacethatof

    spendingandpriceswillremaindepressed.Thetimetotest

    newcreativeandsocialmediamarketinginCanadaisnow,

    whilethecostisnotprohibitive.

    However,keepinmindthatcreative,compellingcontent

    remainsessential.MitchJoel,frequentbloggerandfounder

    ofTwistImage,amediaandmarketingrmbasedinCanada,

    highlightsthemostimportantassetofsocialmedia,theability

    totellstoriesthatconnectwithyourcustomers.Thebigidea

    here,saidJoel,isthatifyourbrandiscompellingenough

    andiftheprizeisworthyenoughcustomersarenotonly

    willingtocreatecompelling(andbranded)content,buttheyre

    alsowillingtotellandsharetheirstorieswithanybodyand

    everybodytheyreconnectedto.

    Conclusions

    Social networks are where to nd the users.

    Canadahassomeofthehighestinternetpenetrationand

    saturationofsocialnetworkingusageintheworld.Acrossall

    demographics,socialmediaactsasconsumersonlinehome

    andaplacewheretheygoforcommunication,entertainment

    andinformation.Inaddition,alloftheusercontributeddata

    canbetargetedthroughtoolsprovidedbysocialnetworks,

    likeFacebookAd,creatinganindispensabletoolforany

    marketersmix.

    Trust is essential for word-of-mouth.Gainingthetrust

    ofsocialnetworkusersisabrandsbiggestobstacle.Once

    trustisgained,userscanspreadbrandcampaignsinstantlyto

    theirentireonlinenetworks.Butbrandshavetobecarefulnot

    tooverstepuserstrust;afull77%ofinternetuserssurveyed

    byVisionCriticallistedprivacyasamajorconcern.

    Daily users are more engaged with brands. Asusers

    becomemoreaccustomedtovisitingsocialnetworksdaily,they

    alsobecomemoreacceptingofbrandsthere.Savvymarketersshouldusesocialnetworkstointegratebrandsintothedaily

    onlinelivesofcustomersandincreaseoverallexposureand

    word-of-mouth,leadingtomoreinteractionandsales.

    Abundant ad inventory is keeping prices low.Display

    adsonsocialnetworksareinexpensive,butthereturnon

    investmentfromcreatingcompellingcontent,engagingin

    communicationwithcustomersandtellingrelevantstories

    canleadtomeasureableresults.Whilepricesarelow,nowis

    thetimeformarketerstoexperimentandndtherightmixof

    display,sponsorshipsandcausemarketingtoimplementon

    socialmedia.

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    Endnotes

    Endnotenumberscorrespondtotheunique

    six-digitidentierinthelowerleftcornerofeach

    chart.Thechartsfromthereportarerepeated

    beforetheirrespectiveendnotes.

    121117

    121117

    billions of Canadian dollars and % changeOnline Ad Spending in Canada, 2008-2014

    2008

    1.60

    2009

    1.82

    (13.7%)

    2010

    2.11

    (16.0%)

    2011

    2.43

    (14.8%)

    2012

    2.91

    (19.8%)

    2013

    3.27

    (12.5%)

    2014

    3.69

    (12.9%)

    Note: includes paid search, display, classified/directories, email and onlinevideo. 2009 figures include ads within video games; converted at average2009 exchange rate (US$1=1.14 Canadian dollars)Source: eMarketer, Sep 2010

    121117 www.eMarketer.com

    Extended Note:eMarketerbenchmarksitsCanadaonline

    advertisingprojectionsagainstIABCanadadata,forwhichthe

    lastfullyearmeasuredwas2009.

    121241

    121241

    % of internet users

    Comparative Estimates: Social Network Usersin Canada, 2010

    eMarketer, Oct 2010

    Ipsos Reid, June 2010

    comScore Media Metrix*,Oct 2010

    Trendstream & LightspeedResearch, June 2010

    Vision Critical, Sep 2010

    % of internetusers

    59.0%

    55.0%

    52.4%

    49.0%

    45.0%

    Age

    All ages

    18+

    2+

    16-64

    18+

    Usage

    Use at leastonce per month

    Have a profile

    Daily visitors

    Managed profile inthe past month

    Daily users

    Note: *eMarketer calculationsSource: eMarketer, Oct 2010; various, as noted, 2010

    121241 www.eMarketer.com

    Citation:comScoreMediaMetrix,providedtoeMarketer,Oct

    27,2010;IpsosReid,[email protected]:2010

    FactGuide,June29,2010;TrendstreamandLightspeedResearch,

    TheGlobalWebIndexWave2,July6,2010;VisionCritical,

    OnlineSocialNetworks:TrustNotIncluded,Sep15,2010

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    Canada Social Media Marketing 11

    Related Information and Links

    comScore

    http://www.comscore.com

    ICOM, a division o Epsilon Targeting

    http://www.epsilon.com

    Ipsos Reid

    http://www.ipsos-na.com

    Trendstream

    http://www.trendstream.net

    Vision Critical

    http://www.visioncritical.com

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