Comments for Study: Influencers are Alive and Well on Social Media Sites

Study: Influencers are Alive and Well on Social Media Sites

2008-10-24T16:53:07Z

The fact that 10% of users create 90% of user-generated content on any given social media site has become a standard trope in discussions around social media. Because of this gap between mainstream users and the enthusiasts who contribute frequently and tend to dominate the discussion, many companies have decided that participating in online communities is not worth their time, as these companies assume that it doesn't allow them to reach their average consumer. According to a recent study by Rubicon Consulting, however, they do so at their own peril, as these active users are also the most likely to influence their peers' buying decisions.

]]> According to Rubicon's research (PDF), most popular online communities do indeed confirm that 80 to 90% of user-generated content is produced by less around 10% of users. That, indeed, is no surprise to anybody who has participated in these communities. However, Rubicon also found that online reviews drive far more purchase decisions than newspaper articles, reviews by website editors, or advice from store employees. Only personal advice was rated as more influential by Rubicon's panel of 3036 web users over the age of 13 in the U.S.

The role of 'influencers' in marketing is still a heavily disputed subject. This study, however, seems to confirm the importance a relatively small number of users can have over the buying decisions of a larger group.

Rubicon also argue that while it is hard for companies to use the web to communicate with users, it is still a great medium to talk to them. This seems like a bit of an outdated idea to us. According to other studies we have seen from Cone and Universal McCann, users do actually want to communicate with companies through social media sites.

Overall, most of the results in this study do not come as a surprise: frequent social network contributors are, on average, younger and more tech savvy than mainstream users. They also see social networks as a utility instead of as a way of keeping in touch with 'real' friends. This report is well worth reading though, as it might confirm quite a few of your own suspicions about online communities and their users.

Comment from AD Public Relations on 2008-10-24

2008-10-24T17:20:52Z

If those proactive 10% of users are representative of the other 80 to 90%, then it is not a big problem.

In a sense, the passive majority are validating the content producing minority by constantly reading their output and using their suggestions. ;-)

Comment from Stephanie on 2008-10-24

2008-10-24T17:28:45Z

It is peer to peer marketing. It has always been a powerful conversion tool, program, campaign, in marketing. It is now just on a different platform, the online platform. An influencer is an influencer, it is their choice where they chose to influence.

Comment from Tom on 2008-10-24

2008-10-24T18:47:23Z

Frederic
Are you completely clueless or complicit in these marketing agencies' deceitful efforts to justify their own existence?

This is obviously the latest self-serving drivel from the hacks in an industry desperate for revenue.

Most marketers (eg. P&G) know better than to take consumers at their word about "what they want or are influenced by" because they simply do not know. They are deluded, like you Frederic.

Comment from Michael Mace on 2008-10-24

2008-10-24T20:43:45Z

Thanks for your comments on the study, Frederic. I agree that most people in the web community world are already aware that a small number of users drive most content, but you might be surprised by how many companies that are trying to communicate on the web still don't get this. We talk to them all the time, and the main purpose of our whitepaper was to help them get up to speed on how online community really works.

A couple of other thoughts...

>> users do actually want to communicate with companies through social media sites

I don't think that conflicts with what we found. We're not saying companies should try to close off communication with any user online. We're just trying to set expectations -- when the actual communication happens, the vast majority of it comes from a small sliver of the population. And that's OK, because the rest of the people online are watching, and they'll learn from the conversation. The message to companies is that the noisy people online function as proxies for everyone else.

AD PR wrote:

>> If those proactive 10% of users are representative of the other 80 to 90%, then it is not a big problem.

Unfortunately, the 10% are not representative of all web users, in terms of age (younger), technical sophistication (higher), political beliefs (more Democrats), sex (more likely to be male), ethnicity (more diverse), and even occupation (more likely to be in a technology, communication, or arts related firm).

This is why you have to be extremely careful when using online feedback in the design of a product. Your enthusiastic online helpers can easily drive you to create something that's too complex and expensive for the average customer.

But that's a separate conversation. For outbound communication, engaging with enthusiasts is a lot safer. They'll drag you over the coals on small details that the average user wouldn't think to ask about -- but that is a healthy process that a lot of average users enjoy reading.

Tom wrote:

>> Most marketers (eg. P&G) know better than to take consumers at their word about "what they want or are influenced by" because they simply do not know.

Tracing everything that influences a consumer is indeed extremely difficult. I've worked with extensive "longitudinal" studies in which we studied consumers over months, throughout the consideration process, to tease out exactly what influences might be driving their thinking subconsciously. In the end, no matter how hard you analyze the data, you're never 100% sure.

But over the years I've found that asking people what they think influences them does give you useful insights, at least into their conscious decision-making process. In this case, web users ranked online reviews by users a lot higher than other online information, and also a lot higher than non-web information, like talking with a dealer. That is very consistent with what we've seen in other studies over the years.

I think what web users are telling us is that online comments written by users are becoming an extended form of word of mouth for many people. If you personally know someone who has experience with a product, you'll trust that first. But if you don't know someone, the stuff you read from users online becomes a next-best substitute.

I was one of the authors of the study, and personally ran the research. Speaking as someone who worked with and supervised the market research teams at both Apple and PalmSource, I'm comfortable with the methodology we used and the validity of the results. Our clients judge us by this stuff, and if we put out something that was deceitful drivel they'd be the first ones to call us on it.

Michael Mace
Rubicon Consulting

Comment from GraemeThickins on 2008-10-24

2008-10-24T23:51:07Z

great insights in the white paper, and an excellent discussion -- thanks to both Rubicon and RWW for getting this out there! we need more of this research

cheers,
Graeme
www.tech-surf-blog.com

Comment from Tom on 2008-10-25

2008-10-25T18:27:53Z

@Michael Mace

So, as "...someone who worked with and supervised the market research teams at both Apple and PalmSource..." we are supposed to be impressed and give your words more value?

Let's have a name dropping contest, here is mine:

Wal-Mart, Tesco, Target, British Telecom, 3M, TI, Intel, Masrercard, Cardinal Health, Mckesson, Heinz, Starbucks

Not that it matters, but you wasted my time with a comment that was almost as long as the original post. Quit posturing.

I think what web users are telling us is that online comments written by users are becoming an extended form of word of mouth for many people. If you personally know someone who has experience with a product, you'll trust that first. But if you don't know someone, the stuff you read from users online becomes a next-best substitute.

You needed a study to tell you that? The fact that you are still in business screams of the need for VRM to come to fruition.

Comment from Tracy Allison Altman on 2008-11-11

2008-11-11T22:27:26Z

Like many others, I've stated my skepticism about claims made in the 'Tipping Point' book and elsewhere. But I'm becoming convinced that the reviewer is an important type of online influencer. Rubicon provides substantial evidence to support its claims. I've recommended the report (and this RWW post) to my blog readers on Evidence Soup who are looking for information to support evidence-based marketing and evidence-based management.