How to Measure Social Media s ROI and Impact.
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- Anastasia Dennis
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1 How to Measure Social Media s ROI and Impact
2 2
3 2 hello!
4 3
5 3 A little about us...
6 4
7
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9 guerrilla brand adoption across the system broadcast market research strategic market planning broad reach advertising non-traditional media planning website development mobile event planning magazine advertising SEO SEM microsites buzz promotions outdoor marketing internet marketing media buying social media viral marketing environmental design print name tags and lanyards partnerships tradeshow direct marketing interactive solutions communications strategy customer relationship management point of purchase system marketing public relations internal communications strategy
10 SOM E O F OUR BR A ND S I NCL U DE
11 7
12 8
13 8 Intent
14 9
15 9 Investment
16 10
17 10 Inquiry?
18 11
19 11 Insight
20 12
21 Early Insight X number of Fans/Followers # of New Fans/Followers % of Fan engagement 12
22 13
23 Is ROI in Social Really Important? 13
24 14
25 14 ROI: Return on Intent
26 15
27 Measurement of anything is meaningless unless we know what we re measuring against. 15
28 16
29 16 It starts with the GOALS
30 17 The Social Media Measurement Compass
31 18
32 We cannot measure, what it is we do not know to value. -Brian Solis on Social Media ROI 19
33 The Challenge Know What ROI Is and Isn t ROI is not metrics, but you need metrics to measure business value of an initiative, whether it s driven by social media or not. The equation goes like this: ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs 20
34 21
35 Originally a simple calculation of quantifiable financial results, today the term Return On Investment (ROI) is commonly used to refer to situations where results cannot be quantified or simply expressed. 21
36 22
37 The New Equation: Social media ROI = [(tweets followers) (comments x average monthly posts)] (Facebook shares x Facebook likes) (mentions x channels used) x engagement 22
38 The New Equation: Social media ROI = [(tweets followers) (comments x average monthly posts)] (Facebook shares x Facebook likes) (mentions x channels used) x engagement 23
39 24
40 Less Than 20% Of Marketers Can Calculate the ROI of Social Media. 24
41 25 Source: 2011 Lenskold Group Marketing ROI & Measurement Study
42 55% of Marketers that measure social media, said the reasons why measurement is a priority are because: 65% need to improve effectiveness 59% need to improve integration with other marketing 48% feel pressure to report quantified outcomes Source: 2011 Lenskold Group Marketing ROI & Measurement Study 25
43 2 MODELS TO MEASURE SOCIAL ROI 26
44 Model 1: AMPLIFICATION Measures the dollar value of Social Media activity as if it were purchased through traditional paid advertising means. 27
45 Data You ll Need The inputs are relatively direct. You provide: Facebook Organic Impressions (from Facebook Insights) Clicks on Facebook Links (from your tracking links) Twitter Impressions (using our formula) Clicks on Twitter Links (from your tracking links) Organic YouTube Views (from YouTube Analytics) Blog Page Views (from your analytics tool) Online Brand Mentions (from your monitoring tool) 28
46 29 Source: Ignite Social media
47 30
48 31 Average cost-per-click advertising is 50 cents (varies by industry)
49 32
50 33 Average cost-per-click advertising is 50 cents (varies by industry)
51 34
52 35
53 36
54 VALUE = COST OF SMM What you ve calculated is the cost of purchasing that same level of activity through traditional online media 37
55 We're calculating "purchase equivalency," the answer to, "How much would it cost us to buy this much exposure?" 38
56 Model 2: GOAL SPECIFIC 39
57 Engaging Fans on Facebook Counting Metrics = Likes People Talking About This Total Reach Outcome Metrics = Engagement Business Value Metrics = Campaign Response Rate Loyalty Advocate Impact 40
58 41 Facebook Counting Metrics
59 42 Facebook Counting Metrics
60 43
61 Measuring Customer Acquisition on Twitter Counting Metrics = Tweets Contributors Reach Outcome Metrics = Amplification Business Value Metrics = Referrals Conversions Revenue 44
62 45 Twitter Counting Metrics
63 46
64 47 Twitter Counting Metrics
65 48 ROI is About What's Important to YOU
66 Questions? Contact Me! Braden Young Social
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