Paid Social Pays, According To New Study by The CMO Club and SocialCode
100% of marketers plan to continue or increase paid social spend in 2017
NEW YORK – Dec. 21, 2016 – Brands shifting marketing dollars to paid social are seeing big payoffs, according to new research that The CMO Club and SocialCode announced today. As high-profile digital media platforms report rising revenue, every single chief marketer surveyed plans to either continue or increase their paid social spend investments in 2017.Specifically, 45% plan to increase budget and 55% continue steadily.
The survey encompassed 63 chief marketing executives, primarily with business-to- consumer brands managing annual ad budgets greater than $25 million. The report, “The CMO Solution Guide: Getting More Out of Paid Social, What Really Works,” also details recent learnings of senior marketing leaders at Neiman Marcus, Camuto Group, Famous Footwear, LaQuinta Inns & Suites, and others.
“Everyone’s playbook has had to change over the last five years,” said Famous Footwear CMO Will Smith. “CMOs must adapt or they will be left behind.”
In key survey findings, some CMOs have begun shifting their allocation of marketing dollars directly from TV and conventional sources to the greater measurability of paid social. Eight percent of the CMOs reported sourcing their paid social activity from TV, radio and other sources. CMOs are ramping up their spend in social video ads significantly, as the NY Times reports, as well as in direct-response programs, as SocialCode has noted.
“A small and growing number of marketing leaders have already begun to move significant investment from traditional TV and radio over to paid social,” said The CMO Club CEO and Founder, Pete Krainik. “This CMO Solution guide outlines a clear opportunity for a majority of CMOs — who have not yet delved deeply into paid social — to better connect with their customers by using paid social as a way to hone in on customer preferences. Further, our study highlights the real actions that CMOs are taking to make headway in their social strategy and tying it into an overall marketing plan with positive, measurable results.”
The CMOs in the study mandate several actions to make the most of the state of marketing and the opportunities with paid social, mobile and video. First, it’s wise to start with a social data strategy, incorporating customer databases. Then be sure to tie each campaign to a learning agenda. Deploy paid social across the entire marketing funnel. Invest in video. Test and repeat.
“Nearly all marketers are seeing value in their paid social, yet many are missing the opportunity to connect with people across different media platforms and throughout the customer journey,” said SocialCode CMO Max Kalehoff. “While 63% of the CMOs in our survey report using social ads for direct response and 40% to drive brand awareness, only 15% of the CMOs report using paid social to further connect the dots to sales and loyalty. We anticipate marketers will continue pursuing more complete paid social strategies as they seek to unlock unprecedented audience reach and rich data.”
The report includes fresh data on how marketers are changing their spend; seven case studies showing the way major brands used social campaigns to improve their bottom lines; and five actionable strategies for getting more ROI from paid social.
- Download the full report
- View the report infographic
- Visit the CMO Solutions Clubhouse to get more resources for marketing leaders
ABOUT THE CMO CLUB
The CMO Club is the world’s most engaged and inspired community of Senior Marketing Executives who help each other solve their biggest challenges, within a candid, trusted, and sharing environment. Collaboration fueled by inspiring events and within the members-only Digital Solutions Clubhouse raises the standard for what is required to be a successful Chief Marketing Officer. With more than 850 members, The CMO Club is the go-to center for today’s Senior Marketer for peer-based personal and career success support. For more details, please visit The CMO Solution Guide at www.thecmoclub.com.