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1 How CMOs are Monetizing Social Marketing and Measuring ROI

2 Introductions Justin Bridegan, Senior Marketing Manager MarketingSherpa / MECLABS Primary Sergio Balegno, Director of Research MarketingSherpa / MECLABS Primary Kye Strance, Director of Product Marketing

3 Join the conversation on Twitter

4 Today s webinar agenda MarketingSherpa Setting the stage for social media marketing monetization How CMO priorities for social marketing are changing What's driving the investment in social media programs How CMOs are calculating social marketing return on investment The first step to monetizing the social media channel Vocus 5 Tips for Social Marketing Success

5 Annual research cycle improves marketing know-how Publish research on what is working (and what isn t) for marketers today Benchmark Reports, Case Studies Identify best practices and formulate practical methodologies Handbooks, Special Reports Teach marketers how to apply best practices and methodologies Summits, certification training, webinars This cycle is focused on strategies and practices for social media monetization

6 The importance of social marketing maturity Three Phases of Social Marketing Maturity Trial Phase Transition Phase Strategic Phase Organization does not have a process or guidelines for performing social marketing. Organization has an informal process with a few guidelines it sporadically performs. Organization has a formal process with thorough guidelines it routinely performs. Poll #1 Which statement best describes the process your organization uses to plan, execute and measure the performance of social media marketing programs?

7 The importance of social marketing maturity Chart: 46% of CMOs in transition from the trial to the strategic phase Social marketing requires investment in human and other resources Strategic process needed to monetize social media channel and prove ROI

8 CMO priorities and perceptions driving ROI

9 Priorities for social media are changing Now it s show me the money" Social channel monetization factors are top-of-mind priorities for CMOs Goal of social channel monetization: Measureable return on investment Strategic phase organizations are 80% more likely than Trial to prioritize ROI Why? Trial phase organizations don t have a process for performing social marketing or measuring ROI

10 Perceptions driving social marketing investment If social marketing perceived to produce ROI, investment follows Strategic phase 4X as likely as Trial to produce measureable ROI Why? No process, no proof of ROI, no investment Think social marketing is free? You re destined to get what you pay for!

11 The promise of social marketing ROI a reality When ROI equals a positive %, earning more than costing Average social marketing ROI 95% One-in-four CMOs are doubling their social investment (100% ROI) Overcoming the myth that social marketing ROI isn t measureable

12 Calculating the ROI of social media marketing

13 ROI is a measure of financial value returned on every dollar invested Formula: Return on investment = (Value gained from investment Cost of investment) / Cost of investment Tracking the right metrics for determining the values and costs of social media marketing can be a challenge Around 10% of our social media activity directly translates to bottom-line results, making ROI easy to determine for that portion. However, 90% of the work has to do with people building their reputation online and helping others, so they can effectively promote the brand online. That big chunk of work is impossible to measure in terms of ROI. CMO insight

14 When it comes to calculating social media ROI, some metrics matter more than others Qualitative, non-financial metrics CAN be measured Quantitative, financial metrics SHOULD be measured Financial values are metrics that matter most for calculating and proving ROI Return on engagement, return on innovation, etc. mean nothing in the C-suite

15 Values CMOs can use to calculate the Return Many values can be measured Estimated value of quantitative social media metrics Likes/Fans Followers Estimated value of qualitative social media metrics Sentiment Awareness/Voice These metrics useful to monitor audience but not to measure ROI

16 Values CMOs should use to calculate Return Actual sales on ecommerce sites can be tracked to social media engagement Most organizations know the estimated value of a qualified lead use it! There are two ways to gain value increasing income and reducing costs Not factoring social media s ability to reduce customer support costs is a missed opportunity Which values can and should you use to calculate social marketing ROI?

17 Costs CMOs are using to calculate Investment Investment side of ROI equals costs associated with social marketing Social falls into two main media categories earned and paid Earned media time intensive tactic requiring more human resources Paid media cash intensive tactic requiring fewer human resources

18 Formula for calculating the ROI of social marketing (Value gained from investment Cost of investment) / Cost of investment = ROI Value Gained Minus Cost Divided by Cost Equals ROI ROI analysis: Social lead gen campaign Value: 500 qualified leads tracked to social at est value $150/lead = $75k Cost: Staff plus other expense = $15k ($75k - $15k) / $15k = 400% ROI

19 Monetizing social media requires strategic thinking

20 The social marketing ROAD Map A method for mapping a social marketing strategy 20

21 Research: Gathering intelligence on target audiences and their social media behavior Research is the first step in the ROAD Map methodology Monitoring helps identify and profile target audiences (vs. calculate ROI) Monitor characteristics and behaviors specific to social media 21

22 Stop, look and listen What to monitor on social media Related search phrases Industry sectors Technologies Companies Brands Products Services Key issues Industry experts Key employees Social media factors Social voice (or strength) Sentiment Passion Unique authors Social reach Content downloads Content sharing Reviews and recommendations Platform preferences Audience segments 22

23 Social monitoring tools and solutions % using solutions by type Monitoring target audiences

24 Segmenting by social behavior and influence Keep it simple Silent Majority Joins but rarely participates Reads, watches, listens to UGC Few friends, contacts, followers Low level of social influence Vocal Minority Joins and actively participates Shares UGC and commentary Many friends, contacts, followers Moderately high level of social influence Social Authority Builds and moderates communities Creates and aggregates UGC Very many friends, contacts, followers Very high level of social influence 24

25 Profiling your target audiences 25

26 Objectives: Defining objectives aligned with target audiences Target Audience Segment marketers in the Vocal Minority agencies/consultancies in the Social Authority Social Marketing Objectives Increase Likes on Facebook brand page by Increase website traffic from Facebook by Reduce costs to support this customer segment by Increase Social Authority target list by Increase Twitter thought-leader page retweets by Increase link-backs from Social Authority blogs by

27 Actions: Creating an effective social marketing tactical plan of action Effective vs. fast and easy Blogger relations effective but difficult less use Use to target Social Authority Social sharing less effective but less difficult more use Focus on effective tactics, not fast and easy Top tactics: Engaging the vocal minority and pitching the social authority 27

28 Tactics for engaging the Vocal Minority and pitching the Social Authority Engaging the Vocal Minority Vocal Minority extremely active high level of social influence Use one-to-many tactics Use target audience profile to determine where they are and what interests them Join the conversation and engage the vocal minority accordingly. Pitching the Social Authority Social Authority is the whale highest level of social influence Use one-to-one tactics Most blog but also microblog, social network, vlog, etc. Apply practices similar to press relations but conform to social media culture and practices 28

29 Devices: Selecting social platforms by tactical effectiveness and architectural fit Analyzing strengths/weaknesses of social platforms/brands You may need a social network but which one? Leading brand, niche or custom Conduct a SWOT-like analysis to prioritize social brands Select social brands that fit your tactical plan and have a purpose 29

30 Without a social marketing architecture Random acts of social marketing no plan or purpose 30

31 With a social marketing architecture Hub and spoke framework Hub sites for content and conversion Spoke sites for building communities and relationships Directs traffic flow in and out of hubs Number of sites not important a plan and purpose for every site is 31

32 Plan and purpose for hub sites Websites have become hub of overall marketing strategy Primary point of conversion Blogs have become hub of social marketing strategy More dynamic, search friendly content 32

33 Plan and purpose for spoke sites Social network shares content linked to hub sites and builds relationships Microblogs offer quick engagement with links to hub site content Forums build technical community, provides customer self-service and generates product development Content sharing sites store content for use on other platforms Spoke sites drive traffic to hub site s primary point of conversion 33

34 The social marketing ROAD Map A method for mapping your social marketing strategy 34

35 5 Tips for Social Media Success

36 Know What Your Audiences Care About

37 Know Who s Talking: The Answer May Surprise You

38 Keep Track of Sentiment

39 Don t Forget Traditional Media

40 Measure

41

42 Send us your feedback Q & A

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