How to Measure Social Media s ROI and Impact oxfordcommunications.com @Oxfordcomm
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SOM E O F OUR BR A ND S I NCL U DE
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8 Intent
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9 Investment
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10 Inquiry?
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11 Insight
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Early Insight X number of Fans/Followers # of New Fans/Followers % of Fan engagement 12
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Is ROI in Social Really Important? 13
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14 ROI: Return on Intent
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Measurement of anything is meaningless unless we know what we re measuring against. 15
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16 It starts with the GOALS
17 The Social Media Measurement Compass
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We cannot measure, what it is we do not know to value. -Brian Solis on Social Media ROI 19
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
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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
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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
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
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Less Than 20% Of Marketers Can Calculate the ROI of Social Media. 24
25 Source: 2011 Lenskold Group Marketing ROI & Measurement Study
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
2 MODELS TO MEASURE SOCIAL ROI 26
Model 1: AMPLIFICATION Measures the dollar value of Social Media activity as if it were purchased through traditional paid advertising means. 27
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
29 Source: Ignite Social media
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31 Average cost-per-click advertising is 50 cents (varies by industry)
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33 Average cost-per-click advertising is 50 cents (varies by industry)
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VALUE = COST OF SMM What you ve calculated is the cost of purchasing that same level of activity through traditional online media 37
We're calculating "purchase equivalency," the answer to, "How much would it cost us to buy this much exposure?" 38
Model 2: GOAL SPECIFIC 39
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
41 Facebook Counting Metrics
42 Facebook Counting Metrics
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Measuring Customer Acquisition on Twitter Counting Metrics = Tweets Contributors Reach Outcome Metrics = Amplification Business Value Metrics = Referrals Conversions Revenue 44
45 Twitter Counting Metrics
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47 Twitter Counting Metrics
48 ROI is About What's Important to YOU
Questions? Contact Me! Braden Young Social Strategist byoung@oxfordcommunications.com @bradeny