Research Shows that Social Media Drives Profitability
Research Shows that Social Media Drives ProfitabilityJul 09 2013 - Social media - Gary Stringer
A recent study by the International Advertising Bureau (IAB) UK has highlighted the power of social media in building brands and increasing ROI for Fast Moving Consumer Goods (FMCG). The IAB’s Social Media Council collected more than 4,500 quantitative surveys, supplementing them with 800 research panel interviews. The key finding of this was that 90% of consumers would recommend a brand to a friend, after engaging with that brand via social media channels.
The study also revealed that social engagement increases positive sentiment towards the brands and also enhances loyalty. 83% of consumers exposed to a brand on a social network would be prepared to trial one of their products, demonstrating the power of social media in brand building.
Heinz, Twinings and Kettle all took part in the research, measuring the impact of their social media campaigns and all remarked an improvement in sentiment towards their brand. Heinz noticed a 22% increase, Twinings achieved a 19% uplift and Kettle received a 17% improvement.
Based on these findings the IAB were able to calculate that every £1 spent on social media channels has the potential to generate revenue of £3.34.
Posting regularly with a variety of content increases the likelihood to trial and Heinz Marketing Manager, Ian McCarthy, stated that “Fans of Heinz Beanz expect to see us regularly in their social channels and react the best to content that’s about the products they love. In the case of encouraging trial for a newer product line, frequency becomes even more important to support the new concept, as the IAB study illustrates.”
So it is worth keeping in mind that social media could be the key to building your brand, enhancing loyalty and successfully introducing new products to the market.