A recent study by the industry organization CMO Club and communications consultancy Hill & Knowlton found that chief marketing officers are struggling to harness the power of social networking to build their brands. Channel Insider takes a deeper look at the recently released research and how CMOs are tackling the social network trend.
According to the study, 4 out of 5 (84%) of chief marketing officers (CMOs) allocate less than 10% of their budgets to experimenting through social media and non-traditional communications channels, with more than 55% allocating 5% or less.
Social Network Popularity
The number of adult Internet users who have profiles on social networks quadrupled to 35% in 2008, up from just 8% in 2005.
Delay in Strategy Adoption
Although CMOs say they have medium or high levels of comfort in dealing with non-traditional media, few are adopting these strategies for their own brands and, consequently, missing out on learning from and contributing to the conversations that are taking place online.
Maintaining Relevancy
To stay ahead of the social networking trend, marketing orgs need to focus on three key areas to maintain relevancy with customers: internal collaboration, sharing customer data in a timely manner, and engaging new, external stakeholders like those found in social networks and the blogosphere.
Social Media Policies
3 out of 10 (29%) of CMOs report having a social media policy that is widely adhered to within their company and another 31% are currently developing a policy. Implementing these policies is proving to be a challenge, with just over a quarter (26%) of CMOs stating they have a policy but it is not complied with within their companies.
Big Impact Blogosphere
"Bloggers are the new media trendsetters/reviewers for products and services, a trusted voice by those who follow their posts," said CMO Club member Ted Rubin, chief marketing officer, e.l.f. Cosmetics. "If you empower these consumers to evangelize your brand, establish yourself as a trusted source and give them the tools, they will run with it and lend you their credibility."
Internal Communication Lacking
CMOs report a lack of internal communication – 48% said they have no formal interaction with the department responsible for NGOs/non-profits; 39% do not formally liaise with investor relations, and 22% do collaborate with those responsible for liaising with financial analysts.
Tracking Brand Perception
The majority of CMOs (95%) formally track the attitudes or opinions of their customers to their brands, falling to 7 out of 10 (69%) among potential customers, but other audiences are being ignored: 84% do not gauge the opinions of NGOs/non-profits; 59% do not gauge the general public, and 32% do not formally gauge sentiment among their employees.
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