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value of marketing channels

Reach, Trust & Amplification: The Importance of Social Media in Nonprofit Marketing (STUDY)

I am pleased to have the opportunity to share recent IMPACTS data (collected in real-time through the end of last month) regarding the comparative importance of different marketing channels. The key finding? Data indicates that social media is the fastest growing and most influential marketing channel.

A few weeks ago, I shared data indicating that websites and mobile platforms – followed by word of mouth, social media, and peer review sites - play a disproportionate role in encouraging visitation decisions to visitor-serving organizations compared to more traditional marketing mediums such as radio and print media. With the help of coworkers at IMPACTS, I’ve drilled deeper into available data in order to answer the question of how these platforms play a role in the current marketing world. To do this, we looked at these mediums through three parameters: reach, trust, and amplification. Then, we calculated the weighted influence of these parameters to assess the overall value of each channel.

We measured the following information channels/marketing mediums:

  • Web – an organization’s website or an online news site, for instance
  • Social media – Facebook, Twitter, YouTube, Google+, and other social networking sites
  • Word of mouth (WOM) – Person-to-person sharing of information
  • Email – Good ol’ email.
  •  Mobile web – web accessed via mobile device or mobile platform
  • Peer review web – TripAdvisor, Yelp, and other online review sites
  • Television – both commercial and public broadcasts, news programming, information acquired through television
  • Radio – both satellite and terrestrial programming
  • Newspaper (print)- Any newspaper source in print (content accessed online are included in the “web” category. In other words, the print edition of The New York Times falls within the “newspaper” category, whereas content accessed via nytimes.com would be considered a “web” resource.)
  • Periodicals and magazines (print) – Magazines and periodicals in hardcopy (again, online versions are included in the “web” category)
  • Direct mail – That stuff that physically arrives to your home/office and clutters your countertop
  • Other print – Brochures, flyers, other informational, printed material
  • Other – billboards, bus signs, posters, etc.
Take a look at our findings below and consider how your organization values these channels. Do your organizational priorities match the public perception and actual use of these marketing channels? Click on the graphs below to pull up larger images.

 

1. Reach

This parameter quantifies the relative efficacy of each channel in terms of that channel’s ability to expose an individual or household to a message within any defined duration. In other words, we’re trying to understand how effective any medium is at “reaching” an overall population (or, for that matter, a targeted audience such as women aged 35-54, etc.)

As you can see above, in terms of “reach,” websites are the primary channels used by the market to acquire information. An interesting item of note here is the growth in the importance of web/mobile platforms (web, mobile web, peer review web, and social media) compared to the June 2011 baseline data. In fact, every defined marketing channel that was NOT web or mobile-based (except word of mouth, which is the only channel based on person-to-person interaction) experienced a decline within the past year in terms of its reach.

 

2. Trust

This parameter quantifies how credible these channels are perceived to be as information sources. In this metric, we still see traditional, printed materials leading the way. We sometimes refer to this as the “Publication Effect” – there has been an observed tendency for the market to “believe” information obtained via mediums with higher barriers to publication (e.g. newspapers and magazines) than those with relatively easy publication thresholds (e.g. online forums). And, this perception may be reality. Not only do more traditional publishers employ “credibility protectors” such as fact-checkers, researchers and editors, the physical nature of the medium tends to imply a certain level of gravitas that a more ephemeral medium simply cannot achieve.

Still, the web and mobile platforms have generally displayed the most positive change in terms of being identified as trustworthy sources of information, and I expect for this trend to continue as more traditional publishers develop increasingly robust online presences.

Self-published content such as direct mail are among the least trusted sources of information. (Interesting finding: Upon reviewing data from previous years, we know that the trust value of direct mail tends to further plummet during election seasons when mailboxes are littered with campaign propaganda – and we may reasonably expect this in the upcoming seasons.) Other printed materials (e.g. brochures) are also considered to be comparatively untrustworthy sources of information.

This data should be of considerable note to nonprofit organizations (or any company) spending a significant portion of their budget on printed materials while largely ignoring its online reputation – especially if the organization could alternatively invest an equivalent amount to hire a resource to manage its online engagement and social media platforms.

This data is particularly intriguing to me because it illustrates a very unique moment in terms of the evolution of marketing and information-share. Perhaps the way that we think of printed materials such as direct mail will someday soon join payphones, Polaroid pictures, Blockbuster video stores, road maps and telephone books in the pantheon of obsolescence.

 

3. Amplification

Amplification quantifies the re-distribution potential of the respective information channel. Marketers should care about amplification because this measure potentially indicates the amount of “marketing bang” that an organization will get for its buck – a particularly relevant item for cash-strapped nonprofits. This parameter measures how likely folks are to share these marketing channels with others. In my line of work, we sometimes refer to an information channel’s amplification value as its “sneeze factor” – how many other people can we infect with this message? (Quick apology to health-related nonprofiteers reading this post!)

As you can see, web and mobile-based sites generally have higher amplification rates and are easier to share than more traditional marketing channels. This seems sensible. It is, of course, easier to forward an email than it is to share a radio spot with a friend… but some interesting habits of the general population and how they use/relate to these channels emerge in these numbers. For instance, when compared to other printed information sources such as newspapers and direct mail, we generally find a higher amplification rate for magazines because they often have much higher production values (i.e. look and feel “nicer”). Because of this, magazines are more likely than other printed channels to occupy a spot on the coffee table until the next month’s issue arrives. During that time, friends coming over may see these magazines, flip through their pages, and presto! The magazine as an information channel has achieved amplification.

Unfortunately for many museums and nonprofits spending large amounts of money on printed materials, less substantial brochures do not have the same fate and are tucked away in private spaces or ultimately land in the trash before they can be amplified.

Though high in credibility value, word of mouth has a low amplification rate because it is difficult to reproduce and scale an in-person interaction.

 

4. Overall Value

The overall value represents the weighted, relative values of these information channels after collectively considering the reach, trust and amplification metrics. The results here may be stunning in their comparative value – especially for marketing traditionalists or web and social media “nonbelievers.” All of the web and mobile-based information sources experienced growth from June 2011 to March 2012 (i.e. web, social media, mobile web, and peer review web). No other media channels experienced growth. Email also experienced a decline, and though this is indeed a medium that is dependent upon the web, it does not represent a “living” platform with rotating, changeable content and thus functions differently than social media, peer review web, etc.

Social media is an enormously important component of your overall marketing and communication strategy. In fact, data suggests that it is the most important channel to engage your users and constituents. The overall value of social media increased 49.2% from June 2011 to March 2012. This is (quite obviously) the most significant change observed across the quantified information channels.

This data serves as yet another reminder of the recent, rapid evolution in the ways that people communicate, spread information, and find value in marketing messages. This is more than just anecdotal word on the street; it is compelling evidence of the way that our society behaves. CEOs and managers slow to “believe” in the power of online platforms and social media may need to lower the printed brochure in their hands, put away the flyers, and move their communications into the present.

Findings such as these present the contemporary nonprofit organization with a handful of basic choices: Relevant or obsolete? Solvent or destitute? Growth or regression? More or less? And, perhaps most importantly over time: Life or death?

Posted on by colleendilen in Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Social Media, Technology, The Future 9 Comments