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HITEPAPER WHITEPAPER WHITEPAPE PER WHITEPAPER WHITEPAPER WHIT EXPANDING THE REACH OF PAPER WHITEPAPER WHITEPAPER W EMAIL WITH SOCIAL NETWORKS R WHITEPAPER WHITEPAPER EMAIL, WHITEP TEPAPER WHITEPAPER MEET WHITEPAPER HITEPAPER WHITEPAPER SOCIAL WHITEPAPE PER WHITEPAPER WHITEPAPER WHIT PAPER WHITEPAPER WHITEPAPER W R WHITEPAPER WHITEPAPER WHITEP TEPAPER WHITEPAPER WHITEPAPER HITEPAPER WHITEPAPER WHITEPAPE As far as we re concerned, email and social is a match made in heaven. But we asked 350 other marketers too just to make sure. Find out why they re adding social to their oneto-one marketing plans, and get actionable tips from social pioneers like Carmex and TripAdvisor.

DID YOU KNOW? In 2008, 13% of email marketers surveyed attempted to grow their email programs through the use of social sharing links included in email messages. This number is set to explode in 2009 with 46% of marketers planning to use social sharing capabilities in the coming year representing nearly a fourfold increase. What's Inside? 1 Setting the Stage 2 Insights from the Pioneers 3 See Social Media in Action 5 Summary ExactTarget All rights reserved 01-12142009

EXPANDING THE REACH OF EMAIL WITH SOCIAL NETWORKS EMAIL, MEET SOCIAL Social media sites represent the newest gateway to the Internet. Google holds a secure position as the web search engine with the largest reach both globally and in the US, and Yahoo! maintains its number two position. However, social networking giants Facebook and YouTube are gaining ground on these traditional gateways, and their global reach is growing significantly faster than their predecessors. As data from Alexa Internet shows, users spend more time on social networks in an average day than they do on major portals like Google and Yahoo! (Figure 1). Given the global reach, rapid adoption, and high engagement, social media sites have marketers salivating at the potential these environments offer to engage with customers and prospects. The challenge is how to best facilitate meaningful interactions. As noted in ExactTarget s 2008 Channel Preference Survey, consumers are reluctant to invite marketers into these environments. Why? Because they don t want to see another personal communication channel overrun with irrelevant messages from commercial entities. The good news is that there are numerous examples of brands that have developed extensive followings in these environments. This proves that there are opportunities for marketers and consumers to interact on social networking sites if done so appropriately. SOCIAL MEDIA AS AN EMAIL LIST GROWTH TACTIC 1 TIME SPENT ON SOCIAL NETWORKS IN AN AVERAGE DAY GLOBAL REACH 3 MONTH CHANGE TIME ON SITE (MIN/DAY) Google 30.6% 9.9% 8.3 Yahoo! 26.4% 0.7% 10.1 YouTube 17.6% 4.8% 23.4 Facebook 16.6% 32.3% 25.4 Source: Alexa.com as of April 6, 2009 As part of a joint research project between Ball State University, the Email Marketer s Club, and ExactTarget, the 2009 Email Marketing List Growth Study conducted a survey of 351 email marketers and their colleagues in March 2009. Survey results showed a significant increase in marketers intent to integrate email and social media programs in 2009. One tactic that has sparked the imagination of marketers is letting email subscribers share messages with their social networks in hopes of driving increased email program registrations. 3

2 50 40 30 20 10 0 Planning for 2009 Started in 2008, Discontinuing in 2009 Started in 2008, Continuing in 2009 13% 46% 2008 2009 In 2008, 13% of email marketers surveyed attempted to grow their email programs through the use of social sharing links included in email messages. This number is set to explode in 2009 with 46% of marketers planning to use social sharing capabilities in the coming year representing nearly a fourfold increase. GROWTH OF SOCIAL MEDIA INTEGRATION AS A LIST GROWTH TACTIC 367% increase in percent of email marketers planning to integrate with social media. 88% of those who used tactic in 2008 will continue in 2009 To date, the results from social media pioneers are mixed. Business-to-business marketers report significantly more success sharing to social networks as a list growth tactic than consumer-focused marketers, especially in terms of quantity of new subscribers. Business-to-consumer marketers report that while the number of new subscribers acquired through social media sites is low compared to other list growth tactics, the quality of new subscribers is very high. So while many marketers are seduced by the large numbers, pioneers have found social media marketing to be a quality over quantity list growth tactic. The distinct experiences of B2B and B2C marketers may be explained in what we already know about the mindset of participants in different social networks. For example, while LinkedIn intentionally facilitates business relationships and thereby encourages commercial interaction Facebook focuses on personal relationships where commercial messages are more likely to be considered intrusive INSIGHTS FROM THE SOCIAL MEDIA PIONEERS B2C marketers shouldn t be discouraged by the results of this survey. In recent interviews, we asked several social media pioneers to share what they d learned in the past year. These marketers were optimistic about their experiences with social media and offered several tips for those who are considering integrating social media within their email marketing programs. 1. Currently, there are very few established best practices, so trying new things is the key to learning what works and what doesn t. 2. Consumers are sensitive to marketing speak ; therefore, stay away from traditional marketing lingo and focus on relevance and authenticity. 3. Social networks represent a distinct audience and mindset. As a result, organizations should WANT MORE IDEAS? This whitepaper contains just a few of the key findings from our upcoming 2009 Email Marketing List Growth Study. If you re looking for more ideas on how to grow your subscriber list, watch for the full whitepaper coming in May. 4

think about this medium differently than traditional marketing channels. Develop unique strategies specifically for social networks, keeping in mind that users engage in each network differently. 4. Consider broadening your definition of success. Traditional direct marketing metrics are not necessarily a good measure of success in social media. SEE SOCIAL MEDIA IN ACTION Several ExactTarget clients have used social media tactics to not only build their subscriber lists, but also help establish their brand. Check out the examples below to see social media marketing in action. As the world s largest independent new and used bookstore, Powell s Books recently experimented with social media by driving people to their Facebook page. Sam Whitmore, online marketing developer for Powell s Books says, First, we focused on getting people to become Facebook fans by including links to our fan page on our website. Now that we have built our fan base we have started to send updates inviting people to participate in exclusive programs that require them to register on our site. According to Whitmore, the company even capitalized on a major holiday as a way to get in touch with customers. He says, For Valentine s Day, we sent an update to all our Facebook fans with a $5 offer that required people to register in order to get the offer. It was a huge success. We want visitors to share the experience with their friends, but we don t want to force them to use a channel they are uncomfortable with. By offering visitors choices, we are learning a lot about the dynamics of integrating email, social media, and text messaging namely that they complement each other very well. PAUL WOELBING President, Carma Labs The makers of Carmex lip balm, Carma Labs, launched a social media campaign in November 2008 called My Carmex Kiss in conjunction with relaunching their website. On mycarmexkiss.com users are able to upload a photo that can be animated with different kisses and forwarded on to friends. The site gives users a choice of how and where they want to send their kiss either through email, text message, or via a social site. According to Carma Labs President Paul Woelbing, the majority of kisses are sent to friends through email. However, social networks have given the campaign significant exposure. So, while the actions of a few visitors Figure 2: My Carmex Kiss Campaign Website 5

who posted their kiss to social networks helped drive traffic to the site, the majority of people prefer to share the experience through email. At the start of the campaign, Carmex had a database of 3,000 email subscribers. By Valentine s Day, three months later, Carmex had over 30,000 subscribers. The 10-fold increase was driven exclusively through the Carmex Kiss campaign. The key? Giving visitors a choice. We want visitors to share the experience with their friends, but we don t want to force them to use a channel they are uncomfortable with, says Woelbing. By offering visitors choices, we are learning a lot about the dynamics of integrating email, social media, and text messaging namely that they complement each other very well. As the world s most popular and largest online travel community, TripAdvisor has used social media to help establish the company s brand through a Facebook application they created called Cities I ve Visited. The application is an interactive travel map that Facebook users can download and pin all the countries, cities, towns, and even suburbs they ve visited. To date, more than 30 million people have used the application. The Cities I ve Visited application has helped drive more involvement with the brand by increasing awareness of the website and requiring people to register with TripAdvisor in order to share their map. TripAdvisor s application has become one of the most popular downloads on Facebook. One of the reasons Cities I ve Visited has been so successful is that it aligns with the desire for self-expression that is so ingrained in the Facebook community, says Morgan Stewart, ExactTarget s director of research and strategy. TripAdvisor has also used social media to increase brand awareness by creating an online philanthropic campaign that involved its Facebook members. TripAdvisor made a commitment to contribute $1,000,000 to charities as directed by members of the Facebook community by allocating the money to five pre-selected charities based on how the community voted. The campaign was a huge success, receiving more than 1,000,000 votes on Facebook and helping to establish TripAdvisor as a sincere and trustworthy brand. Figure 3: TripAdvisor Philanthropic Campaign 6

3 DAYS. 45,000 FANS. Global pizza giant Papa John s recently experienced success with social media marketing after beta-testing ExactTarget s Social Forward feature in March during its NCAA-themed email marketing campaign. The campaign offered consumers a chance to win a trip to the Final Four by joining Papa John s Facebook fan club. In the first three days of the campaign, Papa John s added more than 45,000 fans to its Facebook page, bringing the total number of fans to more than 270,000. SUMMARY Integrating social media into your broader marketing program should be an ongoing effort. Marketers looking to expand their email programs through social media in the months ahead should keep this top of mind. While some marketers will undoubtedly see success by simply enabling subscribers to use social sharing tools, the larger opportunity is to start leveraging existing email subscribers to help build out online communities. Once those communities start to take root, marketers can communicate key brand value propositions to the community and drive traffic back to their sites. Want more insights on ways to grow your subscriber list? Then watch for our 2009 Email Marketing List Growth Study debuting in May. You ve already learned in this whitepaper about the dramatic increase in the percentage of email marketers looking to integrate with social networks to help grow their email list. But did you know there is another list growth tactic that is increasing even faster? Find out what it is (and more!) in our 2009 Email Marketing List Growth Study whitepaper. LEARN MORE. ExactTarget Social Forward makes it easy for your customers to engage with and share your email marketing messages. If you re interested in Social Forward, simply call 866.362.4538 for more information or visit www.exacttarget.com 7

TEPAPER WHITEPAPER WHITEPAPER WHI ER WHITEPAPER WHITEPAPER WHITEPAPE APER WHITEPAPER WHITEPAPER WHITEPA WHITEPAPER WHITEPAPER WHITEPAPER PAPER WHITEPAPER WHITEPAPER WHITE