Every self-respecting company has a social media presence these days, although many continue to harbour doubts about its effectiveness as a tool for engaging consumers and fostering brand loyalty. Talks of ROI always crop up when social media campaigns are discussed; opinion is seriously divided on the subject. A study commissioned by the Internet Advertising Bureau (IAB) adds weight to the optimistic view on the matter, showing social media to be an effective and cheap marketing tool.
Marketing Sciences conducted the study, enlisting three FMCG brands: Heinz, Kettle and Twinings. The results showed that social media did particularly well in improving consumer sentiment, recommendations, brand loyalty and willingness to try new products. Having been exposed to a brand on social media, 80% of consumers become more inclined to purchase its products more often in the future. Furthermore, such exposure makes 83% willing to try a brand’s product. Each brand saw improvement in consumer sentiment after launching its social media campaign. Heinz experienced an uplift of 22%, Kettle achieved improvement of 17% and Twinings enjoyed an uptick of 19%. According to estimates by the IAB, every £1 invested in social media has the potential to generate value of £3.34.
But such effectiveness requires certain efforts and brands must keep a few things in mind when developing their social media campaigns, Marketing Sciences director Ian Ralph said. The establishment of an emotional connection between brands and their followers would not be possible without relevant, clear and timely content. Other key prerequisites for success are regular activity on social media and a “fan-centric” strategy, Ralph added.