New Razorfish Data ties Consumer Social Media Activity to Purchase Behaviour
Here at Razorfish, we're seeing Social Influence Marketing touch many parts of our business. Needless to say advertising campaigns is one of them too. With our strong quantitative roots, we're spending a lot of time figuring out the ROI impact of social. Marc Sanford and a few others have been spending time on the viral engagement piece of it specifically. The details have been released in a report titled, "Social Media Measurement: Widgets and Applications" and the findings are interesting.
The data shows that the more deeply engaged someone is with social media, the more likely he is to make a purchase. More specifically, there's a noticeable difference between those who engage with widgets through media versus those who are referred by friends. Those who were referred to the widgets by friends were four times as likely to download the application. They were also more likely to spend much more money on the client site and more time there too on average.
The other major findings include how dramatically "engagement" effects page views and revenue. The following charts demonstrate that consumers who spend 5+ minutes with a widget spend significantly more time and view more page views on a given publisher's web site. We found a similar impact on revenue, where engagement with a widget for 5+ minutes had large revenue upsides.
We know measurement of social media is important but those numbers tell us a few important things. Firstly, we listen to our friends more than we pay attention to advertisements. It also demonstrates the importance of widgets and distributing content. And as we've highlighted in our Feed reports, it furthers the point that there can be very strong connections between off domain activity and on domain purchasing behavior. Widgets are the trojan horses for a brand.
Discuss this with more on Twitter and also check out Garrick's post for more insights.
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