The Impact of Social Media on Business

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Social Media LandscapeWhat’s TrendingWhere to from here?

What We Will Cover

Social Media Landscape

Social media has changed how business is

done today- social selling and connectivity

is now the key.

The internet has allowed an explosion of data and channels to market.

Here are examples of the various websites and apps available for the various channels.

https://www.pinterest.com/pin/16888567327404102/

What’s Trending

• Facebook dominates as a source of social traffic and sales. Nearly two thirds of all social media visits to Shopify stores come from Facebook. Plus, an average of 85% of all ecommerce orders from social media come from Facebook.

•Facebook has the highest conversion rate for all social media ecommerce traffic at 1.85%

Shopify Q3, 2013 data from 37 million social media visits that led to 529,000

orders (1.43% conversion rate).

•Orders from Reddit increased 152% in 2013.

•Perhaps most interesting and surprising was community style site Polyvore which is generating the highest average order value ahead of Facebook, Pinterest and Twitter.

• Also noteworthly in this category is Instagram which is also generating higher average orders than those same sites. This is especially impressive considering the only clickable links in Instagram are those in profile bio's.

E-commerce conversion rate of selected social media referrers as March 2014 (in US dollars)

This statistic presents the conversion rate of selected social referrers as of March 2014. During the analysis of Shoplify data, it was found that 0.58 percent of visits via community style site Polyvore lead to an e-commerce purchase. Facebook had the highest social commerce conversion rate with 1.85 percent.

FacebookHow can we not talk about you?

• Nearly half (43%) of New Zealand exporters surveyed had generated orders through social media • Of those, a third (29%) are generating orders via Facebook• 2.5 million people access the site each month• 1.9 million kiwis access Facebook every day• 1.5 million of those are accessing from mobile device• Average daily visits = 14• 82% of New Zealand-based mums use Facebook every day

NZ Statistics

October 2014 ACA Research for DHL Express

Facebook ad representatives are telling marketers: ‘’Assume organic reach is virtually Zero’’

• There is a rise in the number of Facebook groups. • Is FB groups the new FB pages? If done correctly FB groups have high

engagement rates and are around topics of common interests.

• Stabilised and saturated• Continue growing- need advertising budget• New pages finding it hard to cut through• Groups and community• Good advertising platform • Suitable for B2B forum formats• Advised by many SEO people that this is a must• There are lots of complimentary pages to get message

out

Overall

You’re the quiet one

• With over 347M users it is innovating its way into new markets and becoming a dynamic hub for sharing industry insights and ideas.

• LinkedIn is increasingly a space for sharing, having taken significant steps towards becoming a fully-fledged content channel complete with discussions, rhetoric and recriminations.

• Often, people want to connect with the person before the product or service, and this is your opportunity to introduce yourself to prospective clients and customers.

• Last year 58% of users surveyed spent more than two hours a week on LinkedIn

• Now more than ever, LinkedIn is a dynamically social space. More eyes are trained on LinkedIn, and for longer periods. If you still treat LinkedIn as a static space, you’re getting left behind.

Source: SMK Social Media Trend, 2015

• 1 out of every 3 professionals on the planet are on LinkedIn

• 400M users worldwide • most are outside the USA (64%)• over 7.9M are in Australia and 1.5M are in NZ

• 4 in 5 want to enhance their decision making by connecting

• Over 90% of digital marketers believe LinkedIn to be the #1 channel to distribute content (particularly Industry Insights)

LinkedIn

Source: The Sophisticated Marketer’s Guide to LinkedIn

Sales attributed to LinkedIn

Sources: 2015 B2B Content Marketing Trends/ North America, Content Marketing Institute/ Marketing Profs.Webbiquity, Aug 27,2013. LinkedIn for B2B Lead generation’ infographic by Oktopost as shared bybusiness2community.com , Mar’2014. HubSpot, State of inbound Marketing 2010,2011,2012.

• Most B2B marketeers believe that LinkedIn is an effective platform for them (62%) • LinkedIn is 277% more effective for lead generation than Facebook and Twitter

Sources: Herd Wisdom

• Content marketing platform• B2B leads generation, recruitment and jobs market• Good source for searching for partners and reaching out. • It requires less maintenance • Under used in NZ• It gets right into inboxes• Great for nurturing networks• Limited number of regular users• 89% of all recruiters report having hired someone through

LinkedIn. Facebook and Twitter trailed by a wide margin, reaching only 26% and 15% respectively. (Source: Herd Wisdom)

LinkedIn

Every woman loves you

Pinterest is dominated by female users (83%)Average annual spend of Pinterest users can be $140-$180 per order, compared to the $60-$80 spent by Facebook and Twitter shoppers.

New Zealand (Source: http://theregister.co.nz/)

Youtube• Most users are aged 18-54 year olds. • Globally 1 billion people use YouTube, • 4 billion videos viewed per day and • 40 minutes average time spent in mobile views.• In New Zealand, estimated users are 2.5M and 55.89% are

active in Youtube.• 90% online Kiwi shoppers said they find video helpful in

making shopping and buying decisions.• 75% of executives said that they watch work-related videos on

business websites at least once a week, with 65% visiting the website after viewing the video.

Sources:DMR Digital Statistics (2015)

YouTube – the top video network worldwide is considered to be dominated by a young demographic, however the base age is is actually 18-54 year olds. Like Facebook, YouTube also allows demographic targeting for all advertising. –ROI Marketing (2013)

Estimated users- 2,499,372 Percentage of New Zealand’s Population- 55.89%-ROI Marketing (2013)

New Zealand Digital (2013)+ 100 million internet users watch online video each day.+ 90% percentage of online shoppers said they find video helpful in making shopping and buying decisions.+ 75% of executives said that they watch work-related videos on business websites at least once a week, with 65% visiting the marketer’s website after viewing the video.

Other sources:http://kiwi-cast.co.nz/past-events/rebuild-christchurch-2015/stats-breakdown/

Mobile first - Twitter, Instagram, SnapchatThe world is your oyster ..

Source: Statista 2015

Number of active users in millions

• Half (9 out of 18) of the top social apps worldwide are mobile based• The trend is that it will be mobile first and allows

messaging and sharing. • The focus is very much on being an instant communication

tool, sharing and being connected with others

• 33 percent of U.S. teens chose Instagram as their personal number 1, up from just 12 percent in 2012. • Snapchat is also on the rise and eclipsed Facebook in popularity among U.S. teens for the first time in

the most recent edition of the bi-annual survey.

The bulk of Twitter’s audience is a younger demographic consisting of 15-24 year olds. Twitter users are generally writing fleeting thoughts that quickly dissipate into the stratosphere. For business, Twitter can be used to convey small bites of brand messaging or used to quickly respond to any issues customers are facing. More than 370,000 twitter users in NZ – Traverse.net.nz (May 2014)

Twitter has officially set up shop in New Zealand, selling its adspace and services to Kiwi businesses as of this month. With a billion tweets every two days, one of Twitter's revenue streams involves licensing its fire hose of data to companies -stuff.co.nz (July 2015)

Twitter also has a large target audience, with users ranging in age from 13 to 65+. The majority of Twitter users are young adults, particularly female, aged 15 – 24. The objective of the platform and how active a brand is on Twitter will largely determine what a good, average or poor number of Tweets per week is. According to marketingland.com, brands that tweet two to three times a day will typically reach approximately 30% of their followers in one week. Therefore, the engagement rates (good, average, and poor) for Twitter are roughly half that of Facebook engagement rates. -mosh.co.nz (Sept 2015)

Twitter

Twitter

TwitterNew Zealand• More than 370,000 twitter users in NZ • The majority of users are aged 15 – 24 and a female skewed• A billion tweets every two days in NZ• Adspace and licensing of data sold in NZ from this month• Journalists use twitter as a news feed

In General• brands that tweet two to three times a day will typically reach

approximately 30% of their followers in one week. • engagement rates for Twitter are roughly half that of Facebook

Sources:stuff.co.nz (July 2015)mosh.co.nz (Sept 2015)

Snapchat

‘In the UK, if you take all the messaging apps, so Facebook, WhatsApp, whatever, Google, whatever, 75% of the traffic today is Snapchat..’ Vittorio Colao CEO of Vodafone, May 2015

This is the one to look out for..

Snapchat

Fading Social Media Apps

Google+• Registered user numbers for Google as

per Q4 2013, is 1.15bn. But percentage of actual active users is only 35% in a month• 90% of Google+ profiles contain no

content (Stone Temple Consulting)

Sources:stuff.co.nz (July 2015)econsultancy.com (2014

Where to from here?• SOCIAL MEDIA- It is cluttered with many more being created

hourly, only the strong ones will stay around.• You can’t ignore social media as it has become part and parcel

of the internet and mobile connectivity.• Plan out what you want to achieve from social media and

integrate it into your Marketing and it is not stand alone. • Look out for the up and coming, but not start ups- watch out

for mobile apps first such as: Snapchat and Instagram.• Hone in and target specific groups to have the highest chance

of cut through.

Marketing Minds provides outsource marketing services suited to organisations that either do not have a marketing team or a junior to mid level team. We provide a broad level of experience ranging from local to international marketing.

Services provided include: * marketing strategy and creating a growth plan * review of marketing activities and recommendations * creating a compelling key message and differentiation factors * communicating these messages effectively. * selecting the best communication channels * creating measures for marketing activities

About Marketing Minds

To discuss your marketing and social media needs, contact us at info@marketingminds.me or visit www.marketingminds.co.nz

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