The State of Social Business
2013: ! The Maturing of Social Media into Social Business ! Includes findings from four years of Altimeter Group’s annual survey of digital strategists (2010-2013), plus research interviews conducted with top strategists! Brian Solis, Principal Analyst! Charlene Li, Founder and Analyst!

About This Presentation! This presentation
includes Altimeter Group research shared in two previously published artifacts. We are publishing this research in the form of a PowerPoint presentation so that you can use and share our Open Research within your own presentations.! The data charts in this presentation are from the report, The State of Social Business 2013: The Maturing of Social Media into Social Business (available at: http://bit.ly/ssb-2013). Data is based on Altimeter Group’s annual survey of digital strategists, from 2010-2013. Data charts are also available for download and embeds at Flickr: http://bit.ly/ssb-2013-charts.! The quotes in this presentation are from social strategists and executives interviewed for the ebook, The Seven Success Factors of Social Business Strategy (available at: http://bit.ly/7-success-factors).! To view all previously published Altimeter Group research, please visit: www.altimetergroup.com/research. !

Introduction from the Authors! As
social approaches its first decade of enterprise integration, we still see experimentation in models and approach. Our findings show that there is no one way to become a social business. Instead, social businesses evolve through a series of stages that ultimately align social media strategies with business goals.! Our hope is that the quotes and data shared in our previously published research, and this presentation, help provide some perspective on where your company is today so that you can chart your own course for social business evolution. ! Brian Solis! Principal Analyst! Charlene Li! Founder and Analyst!

Nearly half of social media
programs have existed 3 or more years; One fifth have existed for more than 5! Q. How long has your social media program existed?! 4! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2013 (n=65); ! Note: This data is being published for the first time in this presentation.!

Figure 1: Most Enterprises Characterize
Themselves as Intermediate in Social Business Maturity ! Q. How would you characterize where your organization is in its social business evolution? ! 5! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2013 (n=65)!

“Get all stakeholders involved from
the beginning, and make them as knowledgeable as possible. Let them take ownership. Remember: It’s a change management challenge as much as anything else.”! Danna Vetter, VP Consumer Strategy, ARAMARK! 6!

Figure 2: Few Companies Approach
Social Media Holistically! Q. Which of the following statements best match your organization’s definition of social strategy? ! 7! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“HELP [LEADERS] UNDERSTAND THE IMPORTANCE
OF SOCIAL MEDIA TO MEMBERS. ! MAKE IT COME TO LIFE FOR THEM.”" Kate Quinn, Senior Vice President and CMO, WellPoint! 8!

Figure 3: Half of Executives
Are Informed, Engaged, and Aligned with Social Strategy! Q. Below are a number of statements that describe elements of a social strategy. Please indicate the extent to which you agree that each statement describes your organization. ! 9! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“Having a c-level sponsor who
is ready to take on risk is crucial to success. " A lack of this person will create paralysis, especially in a regulated industry where people are careful and afraid.”! Ed Terpening! Former VP Social Media Strategy, Wells Fargo*! 10! *Current Altimeter Group employee!

Figure 4: Three-Quarters of Companies
Have a Dedicated Social Media Team! Q. Does your company have a dedicated social media team that serves the entire company or division as a shared resource?! 11! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2013 (n=65)!

“COME TO ! AN AGREEMENT
ON THE GOVERNANCE MODEL BEFORE MOVING ON TO THE STRATEGY.”! Jonathan Blank, Manager of Social Media, WellPoint! 12!

Figure 5: Companies Continue to
Organize for Social Media as Hub and Spoke, with a Shift Toward Multiple Hub and Spoke! Q. Which of these organizational models best describes how your company organizes for social media?! 13! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2010 (n=140), Q4 2012 (n=130)!

Figure 6: Social Media Headcount
Across the Organization Is Blooming! Q. Approximately how many full-time equivalent staff currently support social efforts in your organization, for external and internal engagement?! 14! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2010 (n=140), Q4 2012 (n=130)!

“IT’S MORE THAN PUTTING AN
EVANGELIST IN PLACE.! IT HAS TO BE A SHARED PROCESS AND JOURNEY.”" Scotty Monty! Global Head of Social Media, Ford Motor Company! 15!

Figure 7: The Core Social
Media Team Increases in Size! Q. How many full-time or full-time equivalent employees make up this dedicated social media team? (Answer for the team(s) you are most familiar with.)! 16! Source: Altimeter Group’s Survey of Digital Strategists, 2011 (n=144), Q2 2013 (n=65)!

“Start with clear roles and
a ! cross-functional team that shares the responsibility of leading into the future. Take off the day-to-day hat, and work for the broader good.”! Renee Brown, SVP Director of Social Media, Wells Fargo!

Figure 8: Core Social Media
Teams Reside Largely in Marketing or Corporate Communications/PR! Q. In which department does your CORE social media team reside?! 18! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

Figure 9: At Least 13
Business Units Have Dedicated Social Media Staff! Q. In which of the following departments are there dedicated people (can be less than one FTE) executing social? ! 19! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“Identify the most relevant social
platforms, have unique and valuable things to say, and ! adapt your strategy often ! to incorporate findings. Keep moving forward.”! Lori Johnson! VP Online Strategy, Fidelity Investments! 20!

In 2013, companies report an
average of 131 social media accounts, suggesting consolidation since 2011! Q. Approximately how many official social accounts exist across the entire company, including all business units, products, or regions?! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2011 (n=144), Q2 2013 (n=65); ! 21! Note: This data is being published for the first time in this presentation.!

“Get measurement under control." It
will drive support, especially at the executive level. If they can see the correlation to business results, they will feel like it’s a huge investment area.”! Ann Lewnes, CMO, Adobe! 22!

Figure 10: In 2013, Companies
Prioritized Measurement, Training, and Scaling Programs! Q. In 2013, what are your top internal social media objectives?! 23! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

Figure 11: Top External Social
Priorities Focus on Content, Engagement, Listening, and Support! Q. In 2013, what are your top three external social media objectives?! 24! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“The first and most principled
thing to do is a ‘voice of the customer’ study. How can you decide what to do in social if you don’t understand what your customers do with it?”! ! Andy Markowitz, Director of Global Strategy, GE!

Figure 12: Social Media Programs
Demonstrate Positive Outcomes for Marketing Optimization, Customer Experience, and Brand Health! Q. Which of the following outcomes can you attribute to your social business program in the last 12 months?! 26! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2013 (n=65)!

“Don’t get stuck in a
pilot too long. ! The ‘toe in the water’ needs to quickly be followed with all-in. If you always dabble, it will be a failure.”! Don Bulmer! VP Communication Strategy, Royal Dutch Shell!

Figure 13: Social Budgets Stayed
Constant in 2013! Q. What was your total budget for social efforts in 2012? How much do you expect to spend on your social media efforts in 2013? ! 28! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

Figure 14: Listening/Monitoring, Analytics, and
Community Platforms Are the Biggest Social Technology Spends in 2013! Q. In 2012, what was your budget in each of the following areas? How do you anticipate spending in each area will change in 2013?! 29! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“Always go back to the
objectives you’re after. If you lose sight of that, you’ll be wasting time and resources quickly.”! David Fenech! VP Interactive Marketing and Creative Services! Kelly Services! 30!

Figure 15: In 2013, Nearly
Half of Social Strategists Planned to Increase Spending on Social Media Management Systems and Internal Training and Education! Q. How do you anticipate spending in each area will change in 2013?! 31! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“Helping your executives and key
stakeholders become more comfortable with risk is important, along with having a risk mitigation strategy in place.”! Maria Poveromo, Director of Social Media, Adobe!

Figure 16: Most Companies Have
Risk Mitigation and Crisis Management Processes for Social Media, But Few Say Employees Are Properly Trained! Q. Which of the following outcomes can you attribute to your social business program in the last 12 months? ! 33! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

“Policy, education and awareness, and
culture pieces are important to rolling out social successfully in an organization. ! How do you tell someone who’s never used social that it needs to be part of their business strategy?”" Dan Brostek! Head of Member and Consumer Engagement, Aetna! "

Figure 17: Internal Social Media
Policies Are Largely in Place, But Only Half of Companies Have External, Customer-Facing Community Policies! Q. Which of the following social media policies does your organization currently have? (Select as many as applicable) ! 35! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

Figure 18: Most Organizations Admit
Employees Have Little Knowledge of Their Social Media Policies! Q. What is the knowledge level of employees about social media usage and the organizational social media policies?! 36! Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) !

Figure 19: Only a Third
of Companies Have Formal Social Media Training! Q. Select the description that best fits your current social media education efforts.! 37! Source: Altimeter Group’s Survey of Digital Strategists, Q2 2013 (n=65)!

“In the future, there shouldn’t
be a ‘social strategy.’! ! There will just be a strategy for customer experience.”" Martha Hayward, VP Social Media, Fidelity Investments!

“Infuse the client’s voice into
everything you do. Giving them a place to communicate with you and be heard is paramount right now. It’s not cutting edge anymore – ! it’s just table stakes.”! Bridget Dolan, VP Digital Marketing, Sephora!

1) Be clear on what
you want the outcome to be, and then structure support properly.! 2) Invest in people and resources to make sure it’s not a one-time hit. Only take on as much as you can continue to actively support.! 3) Tie it to what’s core to your company and for the consumer in your space.! ! Julie Bornstein, SVP Digital, Sephora! 40!

Conclusion! While models, budgets, and
investments will shift over time, the biggest impact of social media will be in the social contract companies establish with customers and employees. In the next two years, we expect social to become part of a bigger movement where social joins web, mobile, and other digital initiatives to lead an integrated and orchestrated transformation. Social becomes just one part of the overall approach to successfully engage, learn from, and lead connected customers and employees. But it is the evolution into a Social Business where stakeholders learn what it takes to adapt existing models, processes, and methodologies as part of an overall change management initiative.! Brian Solis! Principal Analyst! Charlene Li! Founder and Analyst!

Methodology! Each year, Altimeter Group
conducts an online survey of digital strategists. Survey results in this report are only from companies with more than 1000 employees for 2010-2012 and 500 employees for 2013. ! The data that appears in this report was also used in the following reports and books:! The Seven Success Factors of Social Business Strategy, by Charlene Li and Brian Solis, July 2013! The Evolution of Social Business: Six Stages of Social Business Transformation, by Charlene Li and Brian Solis, March 2013! Survey Date! Number of Respondents! Q2 2010! 140! Q2 2011! 144! A Framework for Social Analytics, by Susan Etlinger, August 2011! Q4 2012! 130! ! Q3 2013! 65!

About Us! Related Services! About
Altimeter! Social business champions need to take strategies to the next level. Altimeter has a suite of solutions to help strategists guide organizations through an important series of steps that lead to social business transformation.! Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models.! Altimeter’s Social Business Strategy Suite is designed as a complete process, or it can be implemented through a menu-driven approach to meet your specific needs.! Or, follow us at: @altimetergroup! Learn more at: ! www.altimetergroup.com/services! Or, email us at: sales@altimetergroup.com! Visit us at: www.altimetergroup.com !