COMPANIES don't spend a large portion of their digital marketing budgets on social media, but social media analytics firm Socialbakers is counting on changing this by year-end.
Jan Rezab, Socialbakers CEO and co-founder, told BizIT that the average spending on social media - including ad budgets and post-campaign analysis reports - hovers between 10-30 per cent of a typical digital marketing budget.
This is because although companies are allocating more money to digital, offline spending continues to dominate marketing dollars.
According to tech research firm Gartner, US companies spent about a quarter of their marketing budgets on digital activities last year. On average, digital spending makes up about 2.5 per cent of company revenue, said the analyst firm.
In speaking of changing this, Mr Rezab said that some of Socialbakers' bigger clients such as Nestle have been using social media data to compare their effectiveness in reaching audiences in real-time, and they are concerned with benchmarking themselves across the industry.
Because of how instant audience feedback can be online, in little snippets over Twitter or Facebook for instance, brands can use the data to find out the impact of an event on their operations, or how well their customer service responded to users.
Socialbakers is a Prague-headquartered firm that analyses its clients' social media metrics and produces reports on how their brands are faring with audiences. One of its products allows marketers to analyse and tweak their ads on Facebook based on demographic slices.
In a recent report, Gartner noted that half of digital marketing activities are outsourced to agencies. In particular, social analytics and management are particular hot areas for agencies, because companies don't have the in-house expertise or technologies to tackle these relatively new marketing platforms.
"Keeping customers interested through social channels requires constant feeding and nurturing with new content," it said.
Socialbakers' backers believe the company could be poised to take advantage of this trend. The company made headlines when it raised US$26 million from venture capital investors in February. With this amount, it's now raised US$34 million since its founding in 2009.
In February, it opened its Asia-Pacific headquarters in Singapore. The office here has a dozen staff for now, and Mr Rezab said that it is hiring more customer service staff to satisfy the region's demand for more hands-on support.
"By 2017, Asia-Pacific will have the largest social network population worldwide," he noted.
Singapore's opening follows the launch of offices in New York, Paris and Munich last year. The company now has a network of 12 offices around the world.
Last year, it also tripled its revenue, and added more than 1,000 clients in the year, including Disney, Samsung and luxury group LVMH.
Its 300 staff will grow to 400 within this year, as well.
As the company grows its presence, it is competing more fiercely with large software rivals who are keenly eyeing the space.
In June last year, Salesforce.com purchased social media analysis firm Buddy Media for US$689 million. Oracle bought another social media marketing player Vitrue for US$300 million.
Socialbakers latched onto the potential of social media analysis early on. Mr Rezab said that the company didn't start out as a technology firm. It began as a social media agency, and built an analytics tool to support its consultancy service, but decided to focus solely on the tool after it realised it could reach more clients by providing the technology through agencies, instead.
Although most of its clients are medium and large firms, he's noticed that more small firms are getting technical with social media. "The smaller the retailer, the more important it is for them to be on Facebook," he said.
But he noted that there is a wealth of free tools that will suffice for small outfits. Only once companies reach the size where they have a dedicated marketing person should they start looking at paid tools such as Socialbakers', he said.

COMPANIES don't spend a large portion of their digital marketing budgets on social media, but social media analytics firm Socialbakers is counting on changing this by year-end.

Jan Rezab, Socialbakers CEO and co-founder, told BizIT that the average spending on social media - including ad budgets and post-campaign analysis reports - hovers between 10-30 per cent of a typical digital marketing budget.

This is because although companies are allocating more money to digital, offline spending continues to dominate marketing dollars.

According to tech research firm Gartner, US companies spent about a quarter of their marketing budgets on digital activities last year. On average, digital spending makes up about 2.5 per cent of company revenue, said the analyst firm.

In speaking of changing this, Mr Rezab said that some of Socialbakers' bigger clients such as Nestle have been using social media data to compare their effectiveness in reaching audiences in real-time, and they are concerned with benchmarking themselves across the industry.

Because of how instant audience feedback can be online, in little snippets over Twitter or Facebook for instance, brands can use the data to find out the impact of an event on their operations, or how well their customer service responded to users.

Socialbakers is a Prague-headquartered firm that analyses its clients' social media metrics and produces reports on how their brands are faring with audiences. One of its products allows marketers to analyse and tweak their ads on Facebook based on demographic slices.

In a recent report, Gartner noted that half of digital marketing activities are outsourced to agencies. In particular, social analytics and management are particular hot areas for agencies, because companies don't have the in-house expertise or technologies to tackle these relatively new marketing platforms.

"Keeping customers interested through social channels requires constant feeding and nurturing with new content," it said.

Socialbakers' backers believe the company could be poised to take advantage of this trend. The company made headlines when it raised US$26 million from venture capital investors in February. With this amount, it's now raised US$34 million since its founding in 2009.

In February, it opened its Asia-Pacific headquarters in Singapore. The office here has a dozen staff for now, and Mr Rezab said that it is hiring more customer service staff to satisfy the region's demand for more hands-on support.

"By 2017, Asia-Pacific will have the largest social network population worldwide," he noted.

Singapore's opening follows the launch of offices in New York, Paris and Munich last year. The company now has a network of 12 offices around the world.

Last year, it also tripled its revenue, and added more than 1,000 clients in the year, including Disney, Samsung and luxury group LVMH.

Its 300 staff will grow to 400 within this year, as well.

As the company grows its presence, it is competing more fiercely with large software rivals who are keenly eyeing the space.

In June last year, Salesforce.com purchased social media analysis firm Buddy Media for US$689 million. Oracle bought another social media marketing player Vitrue for US$300 million.

Socialbakers latched onto the potential of social media analysis early on. Mr Rezab said that the company didn't start out as a technology firm. It began as a social media agency, and built an analytics tool to support its consultancy service, but decided to focus solely on the tool after it realised it could reach more clients by providing the technology through agencies, instead.

Although most of its clients are medium and large firms, he's noticed that more small firms are getting technical with social media. "The smaller the retailer, the more important it is for them to be on Facebook," he said.

But he noted that there is a wealth of free tools that will suffice for small outfits. Only once companies reach the size where they have a dedicated marketing person should they start looking at paid tools such as Socialbakers', he said.