Category Archives: statistics

Why Analytics matter to Small Businesses

Small businesses are past the fact that they need to use social media. Customers are using social tools to communicate, shop, research and discover — most of which are rapidly becoming a mobile experience. And so, entrepreneurs are shifting how they run their business around that fact.

The question now becomes “how?” Booz and Company conducted an in-depth study with Buddy Media of social media’s marketing impact, and found that most businesses were not utilizing tools and services properly.

Chris Vollmer, a partner and leader of Booz and Company’s global media and entertainment practice, says businesses large and small are moving toward three capabilities: content development, community management and real-time analytics.

These capabilities are in conjunction with three major platforms: Facebook, Twitter and YouTube. When used properly, they provide a major opportunity to generate business value by building powerful, lasting relationships with consumers through digital communities.

Booz and Company breaks analytics down into four levels of expertise, ranging from counting social media activity to achieving strategic business objectives — in other words, actually making a sale.

Most small businesses are either still on level one (understanding their social scale) or stuck between engagement and advocacy.

Vollmer says small businesses can benefit greatly from gauging these four levels of analytics; these insights are especially useful to those who can’t afford to make major changes to their media mix.

Level 1: Reach – Marketers understand the social scale of their brands. They know how many fans, followers, subscribers, visitors and views they have, and how many discussions are taking place. They have visibility into where, when and in what context their brand is being discussed.

Level 2: Engagement – Marketers have moved beyond counting fans. They have insight into the activities in their various communities. They analyze the drivers of participation and amplification, studying the patterns in comments, likes, shares and take rates.

Level 3: Advocacy – Marketers can identify and encourage user behaviors that are associated with brand commitment. These include such metrics as: intent to recommend, referral and reshare activity, comments and followers per user, and brand favorability, consideration and preference.

Level 4: Return on Investment – The most sophisticated companies set out to achieve strategic business objectives based on their social media analytics. Most companies are still not fully at this level. For example, according to the survey, only about 40% of companies have metrics in place today to measure ROI-focused key performance indicators (KPIs), such as purchase intent, leads generated, conversion rates or actual sales.

Keep in mind that content is still king. In order for a small business to really benefit and evolve with these levels, they must provide customers with something to engage in. “It doesn’t always work to just have your ads up — that’s not something people really want to talk about or forward to friends,” says Karen Premo, Booz’s Principal.

What level is your company on, and what are you doing to move forward?

Measuring a Mobile World: Introducing Google’s Mobile App Analytics

Mobile is changing the way that people communicate, work and play, and much of the growing adoption and innovation we’re seeing in the industry is driven by mobile apps. There are already more than 600,000 mobile apps on Google Play alone, and we expect to see continued momentum throughout the industry. Mobile is also becoming front and center for marketers and businesses. As more of them understand the value of mobile apps, sophisticated measurement tools are becoming core to how marketers and app developers invest, analyze and market their apps.

That’s why today we’re announcing a new set of reports in beta called Mobile App Analytics that help marketers and developers better measure their mobile apps. The reports are tailored for mobile app developers and marketers, speaking the language that matters to them. They are designed to measure the entire mobile customer journey – from discovery to download to engagement. This enables the creation of app experiences that are more useful and engaging through data-driven decisions at each stage of the app lifecycle:

– Acquisition and user metrics such as downloads and new users
– Engagement metrics such as retention, crashes and conversions
– Outcome metrics such as app sales and in-app purchases

Read Google’s post to get an outline of the new Mobile App Analytics along with screen grabs of selected reports:

Read the full post: Measuring a Mobile World: Introducing Mobile App Analytics »

Facebook Mobile Ads Earn 2.5 Times More Than Desktop Ads, Studies Find

Facebook‘s mobile ads are performing significantly better than its desktop ads, according to multiple studies released Tuesday. That’s great news for the social network and its investors, who have worried about the company’s revenue prospects as its 900 million-strong user base shifts more of its time to mobile devices.

At the beginning of the month, Facebook began allowing advertisers to purchase Sponsored Stories solely on mobile devices for the first time. Sponsored Stories are posts companies and individuals have paid to highlight in the News Feeds of its fans and their friends (see right screenshot).

Early data from SocialCode, a Facebook Ads API partner, shows that ads that appear in mobile News Feeds get more clicks and more Likes than ads that appear in desktop News Feeds, proportionally. (It’s worth noting, however, that other kinds of ads, including display and search, also have higher click-through rates on mobile compared desktop. Because of the smaller screen sizes on mobile devices, accidental clicks are also more common.)

The findings were culled from 7 million impressions served between June 8 and June 18, of which 242,000 were shown on mobile devices.

Mobile click-through rate averaged 0.79% in the study, compared to 0.327% for desktop feed ads. A separate study by TBG Digital recorded an even higher click-through rate for mobile at 1.14%.

Because of the relatively high click-through rates, Facebook was able to generate 2.5 times as much revenue from mobile ads than desktop feed ads for the same number of impressions. Mobile feed ads generated roughly $7.51 per thousand impressions, while desktop feed ads came in at $2.98. Marketers, who purchased the ads on a cost-per-click basis in the study, paid only slightly more for mobile ads, as shown in the chart below.

There is one other promising finding: The number of Likes each 1,000 mobile impressions generated was also higher on mobile, averaging 0.62% compared to 0.219% on desktop feeds.

Read the full article: Facebook Mobile Ads Earn 2.5 Times More Than Desktop Ads, Studies Find »

Mary Meeker’s whole presentation about the state of the Web

No one in the entire world is as good at summarizing the state of the technology business through slideshow presentations as Kleiner Perkins partner Mary Meeker.
She did it again at the All Things D conference.

Mary Meeker, a former Morgan Stanley analyst now at venture capital firm Kleiner Perkins, is known for her periodic “state of the Web” presentations. On May 30th, she delivered her latest one at the D10 conference, and made it available on the Web at the same time.

The entire deck is long — 112 slides. It covers a ton of topics, including mobile stats, advertising, macroeconomic trends, and a long section on “reimagination” of various analog forms in the digital world.

Mary Meeker’s whole ‘2012 State of the Web’ presentation »