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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

8

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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