Today, at OMMA Global in New York, I shared social marketing insights from a study conducted by advertiser insight firm Advertiser Perceptions on Microsoft’s behalf. The data was collected from more than 700 of the largest social media advertisers across the globe. The study, “Social Advertising & Word of Mouth, the Social Advertiser’s View,” outlines top-of-mind opportunities and challenges for social media marketers.

Top of Mind for Social Marketers

Our goal at Microsoft Advertising is to help brands tell their stories at scale, across screens and at every stage in the purchase cycle. We help do this, in part, by understanding consumer behaviors and advertiser practices that help brands integrate their messages in more relevant and impactful ways. When it comes to brand marketing, social media has become an invaluable tool. This study’s insights will help Microsoft Advertising build better social advertising solutions and help social marketers drive better social strategies.

There are certain types of user-generated content that gain more favor from social media marketers, with product reviews and ratings topping all forms. Of the high spending social marketers we surveyed, 27% said Word of Mouth was the most important reason for their investment, followed closely by 26% stating Brand considerations were highest. Additionally, Direct Response was most important for 21%, CRM for 18% and ‘inbound’ or ‘listening’ was primary for only 6%. However, among many challenges to social media efforts are ensuring the right targets are reached and determining the ROI of such campaigns.

So what does this ‘word of mouth’ mean for marketers? For the purposes of this study, it means three things:

· Identifying and reaching influencers

· Generating word-of-mouth, or conversations about brand, products, or deals

· Rebroadcasting word of mouth to target audience

The Challenge

The challenge lies in that last point, however. Our study found that leading social media marketers believe that almost two thirds of the ‘word of mouth’ they work so hard to generate doesn’t reach their target audience.

We also found that there are significant challenges to be solved in driving ‘word of mouth’ and managing social communities. Specifically, many social marketers face challenges in making sure their communities are target appropriate, in getting new fans and followers, and in preventing churn.

The Opportunity

While there are still many challenges in social marketing, there is clearly opportunity. We believe that the industry should stop focusing on social as a silo-ed platform, and start leveraging it as a tool to help accomplish specific marketing objectives.

Recent research, shared by my colleague Natasha Hritzuk last month, found nearly 50% of consumers are likely to purchase products as a result of ‘word of mouth,’ and 90% of consumer conversations happen offline. This certainly backs up social marketers’ desire to reach the right social audience for their brand. After all, not all audiences are equal. And when you consider that ratings and reviews are the number one form of desired social content, marketers will want to be sure to broadcast them out audiences who really want to hear it. After all, if you’re allergic to shellfish, the last thing you want is a run-down of the best clam shacks on the East Coast.

I’d love to hear your thoughts about how you’re using social to drive marketing goals. How are you generating word of mouth? And how do you make sure you’re hitting your target audience?

Thank you!

Beth Uyenco Shatto, Global Research Director for Microsoft Advertising

Sources:

Word-of-Mouth Research Paper- Influencing the Influencers

Social Advertising & Word of Mouth - The Social Advertiser’s View