|[April 29, 2014]
New Research Quantifies the Monetary Value of an Online Share for the First Time
PALO ALTO, Calif. & NEW YORK --(Business Wire)--
today released the "Return on a Share Report," a groundbreaking study
that is the first to quantify the monetary value of online
recommendations. The report, which will be presented at the Return on
Sharing Summit to be held tomorrow in New York City in partnership with
Center for Media, shows that shared online content, such as
recommendations shared between friends, now influences consumer
purchases more than price and brand, carries nearly as much weight as
in-person recommendations and can motivate buyers to spend 9.5 percent
more for a product. ShareThis and the Paley Center will convene a
high-level group of media and marketing executives for conversations
inspired by the report, which is available for free at www.sharethismoment.com.
"There's no question consumers are actively looking online for
recommendations and content to help them decide what to buy," said Kurt
Abrahamson, CEO of ShareThis. "We've all known that social sharing is
important, but it's been difficult to measure its impact on consumer
spending -- until now. For the first time, this report offers a guide
for brands to determine the value of social content, and to make
informed decisions about where and how they need to invest to engage
The study used two different methodologies to survey more than 6,000
consumers buying in three different industries: automotive, technology
and consumer packaged goods (CPG). Some of the key findings include:
Across all three categories, the value of a positive online share is
9.5 percent, which means that shared reviews or recommendations over
social networks increase the value and desirability of products,
whether it's store brands in a supermarket, personal electronics or an
A positive recommendation is more important to consumers than price
and brand combined, with a relative importance of 57 percent for a
recommendation, compared to 28 percent for price and 16 percent for
brand across all three categories.
Positive recommendations can also enable manufacturers and retailers
to charg more for products. In fact, a strong positive
recommendation, on average, can motivate a consumer to pay 8.8 percent
more. That translates to adding, on average, $3,700 to the price that
a consumer is willing to pay for a vehicle, $27 to the price of a
mini-tablet and $0.75 to the price of a typical supermarket item.
Conversely, negative recommendations can deter consumers from
purchasing by an average of 11.0 percent across all categories.
The value of online sharing consistently outperforms both consumer
ratings and reviews, and an online share carries essentially the same
value as in-person recommendation.
The monetary value and influence of a recommendation or share is also
related to the source -- where professionals and close friends and
family members have the greatest impact, and strangers the least.
"The Paley Center's mission is to provide the various stakeholders in
the media industry with an independent forum to discuss important topics
like this," said Pat Mitchell, president and CEO, The Paley Center for
Media. "We are proud to partner with ShareThis to present their original
research and convene a dialogue that will advance our understanding of
the sharing economy."
This research is a crucial milestone for product marketers and
publishers who no longer have to guess at the value of their social
campaigns, and instead can use the evidence-based model and findings
presented in this report. For product marketers, this report offers
recommendations for engaging current customers as partners and brand
evangelists, incentivizing online sharing, creating shareable
experiences, monitoring social media, addressing negative reviews, using
paid media to convert new customers, and using social insights to
determine where and when to invest in media buys. The Return on a Share
study is also a valuable resource for publishers who can use the results
to guide content development, drive traffic, understand social metrics,
and turn data into action for their developers to engage readers in new
and innovative ways.
"We are seeing a fundamental shift in consumer purchasing behavior,"
said Lisa Weinstein, President, Global Digital, Data and Analytics at
Starcom MediaVest Group. "The explosion of social content like
recommendations is having a real impact in people's day-to-day lives,
including what we buy and how much we are willing to pay. While we've
known intrinsically that online engagement is important, being able to
quantify the monetary value of online recommendations and sharing, as
these findings do, is incredibly important for brands."
The Return on Sharing study was developed by Beresford Research of
Westport, Conn., and conducted in two phases during late 2013 and early
2014. It is the first study of its kind to apply scientific, statistical
methodology to the problem of determining the actual monetary value of a
ShareThis uses large-scale social data to deliver breakthrough insights,
audience building and advertising solutions across mobile and desktop
environments. Every day millions of consumers use ShareThis to share
content across more than 120+ social channels including Facebook,
Twitter, LinkedIn (News - Alert) and Pinterest -- giving the company unrivaled Web Wide
Visibility. The company works with half of the Fortune 500 companies and
is based in Palo Alto, Calif. To learn more visit http://www.sharethis.com.
About The Paley Center for Media:
The Paley Center for Media seeks to preserve the past, illuminate the
present, and envision the future through the lens of media. With the
nation's foremost public archive of television, radio, and Internet
programming, the Paley Center produces programs and forums for the
public, industry professionals, thought leaders, and the creative
community to explore the evolving ways in which we create, consume, and
share news and entertainment. In an era of unprecedented change, the
Paley Center advances the understanding of media and its impact on our
lives. The Paley Center for Media was founded in 1975 by William S.
Paley, a pioneering innovator in the industry. For more information,
please visit www.paleycenter.org.
About Beresford Research:
Beresford Research helps companies seize market opportunities through
thoughtful research based on innovative methodologies and rigorous
execution. We create initiatives that are tightly aligned to our
clients' strategic needs, and provide unique industry insights. Founded
in 1991 as a marketing and consulting firm, Beresford Research brings a
strategic focus to every project. We partner with our clients to provide
creative, customized solutions that deliver unprecedented value without
the overhead. Clients include Booz & Co., Novartis, Oxford Economics,
PhoCusWright, The Week and Towers Watson. For more information,
please visit www.beresfordresearch.com.
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