Syncapse Corp.

Syncapse Corp.

March 14, 2011 13:01 ET

Syncapse Research Demonstrates Value of Social Media Consumers

Single Recommendation on Social Media Sites Can Generate $22.93 in Earned Media Value for a Brand

TORONTO, ONTARIO and AUSTIN, TEXAS--(Marketwire - March 14, 2011) - Where should marketers spend their advertising dollars to make the biggest impact? Syncapse Corp., a global leader in enterprise social media management, today released research that comes one step closer to answering this question. According to the research, social media is increasingly pulling mindshare away from traditional advertising outlets.

A particular class of respondents, known as Social Media Producers, emerged as a vital subset for marketers. The research found that a single recommendation from these influencers can generate $22.93 USD in earned media value for a brand. Earned media value is a key performance indicator frequently used by brands to prove return on investment in social media marketing campaigns.

In a white paper titled "Increasing Campaign Effectiveness with Social Media" Syncapse also found that 43 percent of all consumers now surf Facebook while watching television. For marketers, these findings point to a growing split of their audiences that can only be managed by integrating social media into their marketing and advertising programs.

Simply put, brands stand to gain more influence and increase their bottom line by getting consumers to engage with them online.

Other key findings from the research include:

  • Each positive recommendation from Producers is equivalent to $22.93 in earned media value.
  • 45 percent of consumers watch television and surf Facebook at the same time.
  • 40 percent of respondents say a positive recommendation on Facebook would make a difference in their purchasing decisions; 60 percent say the same about blogs.
  • Producers spend nearly 20 percent more on the brands they recognize.

Respondents were divided into five categories based on their self-identified social media use: Producers create and distribute content through social networks, Engagers actively communicate with brands on social networks, Participants maintain and update profiles on social networks, Lurkers read blogs and follow friends and family on social networks, and Abstainers do not participate in social networking sites.

Data for this white paper is the result of online panel research conducted in February 2011. Syncapse analyzed the data using the Syncapse Platform, cloud-based software that enables marketers to build, manage and measure their global social media presence. Fortune 500 brands use the Syncapse Platform, combined with professional services, to identify and engage with the key influencers that drive profitability, increasing the impact of this influential audience segment.

A full version of the white paper is available for free download at http://www.syncapse.com.

QUOTE

"This research shows that marketers increasingly need to use social media platforms to engage customers and reinforce brand messaging. The findings support what many of our clients already know: social networks like Facebook and Twitter present a phenomenal opportunity to interact with consumers and gain trusted recommendations for their brands – all for a fraction of the cost of traditional advertising. At Syncapse, we help companies build models that help quantify this impact and determine how this engagement impacts a company's bottom line," said Michael Scissons, President and CEO of Syncapse Corp.

About Syncapse Corp.

Founded in 2007, Syncapse Corp. has quickly become a global technology leader in social media management by delivering solutions that empower brands and agencies to build, manage and measure their digital customer relationships. A member of Facebook's Preferred Developer Consultant program, the Syncapse Platform™ has connected brands with millions of consumers globally, delivered tens of millions of dollars in earned media value and has been recognized as one of the top social technology providers for brand marketers. In 2010, Syncapse was named to the ranking of PROFIT Magazine's HOT 50 Emerging Growth Companies, a member of Deloitte's Tech Fast 50 Companies-to-Watch, winner in the Emerging Entrepreneur category in the Ernst & Young Entrepreneur of the Year® Awards and one of North America's 50 Most Engaged Workplaces. To learn more visit http://www.syncapse.com.

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