Quantifying Social Media value to Brands
A new study released by Webpaint and the Altimeter Group on the use of Social Media channels by brands has come to a surprising conclusion:
“While much has been written questioning the value of social media, this landmark study has found that the most valuable brands in the world are experiencing a direct correlation between top financial performance and deep social media engagement. The relationship is apparent and significant: socially engaged companies are in fact more financially successful.”(Engagement db Report 2009)
The study evaluated each brand by not only the number of channels they engaged with but how deeply they were able to interact with their audience through them. Each brand was classified into four engagement profiles:
Mavens: Brands that engage with seven or more social networking channels and show high depth scores
Butterflies: Brands that similarly run on a high number of social media networks but their audience engagement is shallow.
Selectives: Brands running on fewer social media channels but show greater depth on their key focus channels.
Wallflowers: Brands that show both lower presence and depth in their engagement with Social Media.
Of the rankings Mavens Starbucks, Dell and eBay achieved the highest scores followed by Google because of the way there were able to tie in Social Media initiatives with their larger scale marketing strategies.
Overall Mavens showed the most growth in the last twelve months in Revenue and Gross Margin compared to the other engagement profiles. The study also provides Best Practices Case Studies on Starbucks, Toyota, Dell and SAP.
Webpaint and Altimeter Group have also launched an accompanying website that lets companies index their own social media use for further research. You can read the full report here.
