We’ve all seen eye-popping statistics about the growth of social media. They read like this…

• “If MySpace was a country, it would be the 5^th largest in the world.”
• “In 2006 there were 2.7 billion Google searches per month; today, there are 31 billion.”
• “The first commercial text message was sent in December of 1992, now the number of text messages sent every day exceeds the population of the planet.”

And the list goes on. To be sure, there is a tremendous amount of online activity, but does it reach your target market, and more importantly, does it influence them? In our latest TrendTruth, FGI Research set out to determine the current reach and influence of social media’s newest star, Twitter.

Twitter: an Introduction
Twitter is a simple social networking channel whereby members can “Tweet” about themselves, and tune in to other Tweets using any device that can access the Internet. Twitter is making its mark on the Internet this year, boasting just over 5 million members. However, recent media studies indicate that Twitter’s audience retention rate currently lags behind Facebook and MySpace. So, while Twitter’s long term audience size is unclear, FGI Research sought out to understand a few critical things about today’s Twitter audience. Among other things, we asked of Twitter users the following: 1) who do you follow, and 2) do they influence you? Our research yielded several compelling findings.

How Consumers Use Twitter
Among Twitter users, over 80% actively follow other people. The majority of people they follow are friends, family members and celebrities. However, a significant number of Twitter users also follow businesses (38%), other organizations (23%) and political figures (29%). If these trends hold during Twitter’s audience growth phase, Twitter may become a table-stakes communications channel for businesses and other organizations to reach their target markets. But will this channel influence their target markets?

How Does Twitter Influence Purchases
Among Twitter users who follow other people and organizations, the channel does appear to have an emerging, albeit not overwhelming influence on their opinions and purchase decisions. Below are the top two box (high influence and very high influence) percentages for several important categories:

• 26% are influenced in their selection of restaurants
• 23% are influenced in their purchase of electronics
• 20% are influenced in their political opinions
• 17% are influenced in their purchase of household goods
• 16% are influenced in their purchase of groceries
• 16% are influenced in their purchase of clothing
• 14% are influenced in their purchase of automobiles

Who Uses Twitter?
Of course, every business and organization is different with respect to their products, services and target audiences. Some industries must implement Twitter initiatives more quickly than others. When determining if your audience is right for Twitter, a simple first step should be a demographic analysis of Twitter users. The chart below provides a breakout of Twitter users by age, income, and gender.

Actionable Insights
As with any area of research, the “Twitter question” has the potential to spark a lot more debate and will no doubt inspire further inquiries. As for what you can do with this data right now, try to keep in mind the audience that is already on Twitter. Shape your marketing efforts to reflect that knowledge. And when you want to learn more about who your followers are, what they want to know, and how you can target their needs, turn to robust and innovative research techniques: online survey data, social media monitoring, and human research experts who will uncover the real meaning of all that data.

Next Steps You Can Take

Survey Methods
Date of Study: 12/21/2009
Total Responders: 276
Sample Source: FGI SmartPanel

Client Adaptability: Across the board in 2009, FGI Research clients demonstrated an uncanny ability to stay close to their markets and customers, to spot the differences between short-term trends and long term shifts, and to quickly change their strategies to optimize performance under a new set of rules. FGI Research clients invested even more in marketing research solutions in order to gain new advantages during a time of unprecedented change and uncertainty. Steady, savvy and aggressive clients anchored our FGI Research success in 2009.

Marketing Research Innovation: Economies, consumer behaviors and media habits are not the only areas undergoing massive change: the marketing research industry is being revolutionized. Marketing research solutions are changing and improving at rates never seen before in the history of the industry. At FGI Research, demand for some of our newer solutions is fueling much of our growth. These solutions include custom panels, online communities, and social media mining. These solutions are unlocking tremendous benefits for our clients across all industry and all research/business applications.

Marketing Science: Even with the buzz that comes from the newer marketing research solutions, best practice marketing science is a pillar of our success at FGI Research. Ultimately, the business of marketing research requires professionals to properly process, analyze and interpret the data we collect and the observations we make. So, while innovation is key to our success, so to is FGI Research’s insistence on using best practice marketing science to drive the insights and recommendations that ultimately lead to better client decisions and performance. Marketing science had a major impact on FGI Research success in 2009.

So, these are three of the most important success drivers for FGI Research in 2009. Before I wrap up, I would be remiss without tipping my hat to the incredibly dedicated team of professionals at FGI Research. In the end, the character and commitment of our employees is what makes our client projects successful. Their teamwork, attention to detail and quality, and positive approach to every task are the things that underpin our success. Let me close by thanking our loyal clients, talented employees, and dedicated partners for a great 2009 at FGI Research. Let’s do it again in 2010!

David W. Wilson
CEO
FGI Research