Social Media is Dead. Long Live Social Media ROI

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SOCIAL MEDIA IS DEAD LONG LIVE SOCIAL MEDIA ROI Stefanos Karagos | XPLAIN | March 2011

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DO U HAVE A FB PAGE?

22-Mar-11 Social media is dead. long live social media roi

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A TWITTER PAGE?


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A SOCIAL MEDIA TEAM?


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SO WHAT?


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IT’S DEJA VU


Our compe>tors have a FB Page

Let’s go Social too

Has Legal seen this?

Is this Working?

Let’s put our TVCs on YouTube!

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THE LONG STORY / SHORT


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THE LONG STORY / SHORT


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10:00 AM @ OFFICE THE SCENE / BOSS IS ENTERING THE OFFICE BOSS / SEES HIS SECRETARY SURFING IN FACEBOOK


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THE DIALOG


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BOSS / HOW MANY FRIENDS DO YOU HAVE?


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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOSS


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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE?


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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE? SECRETARY / ONLY ONE MONTH MY BOSS!


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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE? SECRETARY / ONLY ONE MONTH MY BOSS! BOSS / CAN YOU CREATE AND RUN OUR CO’S PAGE?


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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE? SECRETARY / ONLY ONE MONTH MY BOSS! BOSS / CAN YOU CREATE AND RUN OUR CO’S PAGE? SECRETARY / YES MY BOSS! GIVE ME 5 MINUTES.


the time it takes !to start your FB Page!

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BUT HE HADN’T SEEN HER PERSONAL PAGE..


Her sexy photos from her latest vaca2ons

97% “hungry” men 18-‐35

content

audience

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THE RESULT


a+er 6 months

xplain.co 22-Mar-11 Social media is dead. long live social media roi

555 FANS/LIKERS

Bla, Bla, Bla, Bla Bla, Bla, Bla

Who Knows? Who Cares?

content audience


facebook? my ass

NEXT TIME MARKETING MANAGER ASKED HIS BOSS TO INVEST €€€€ ON FACEBOOK MARKETING

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INVEST?


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INVESTMENT MEANS


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€$¥ 22-Mar-11 Social media is dead. long live social media roi

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ROI 22-Mar-11 Social media is dead. long live social media roi

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WHAT DOES IT MEAN ROI?


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RETURN ON INVESTMENT


ROI = [GAIN FROM INVESTMENT – COST OF INVESTMENT] /COST OF INVESTMENT

the formula!

it’s recession >me

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THE BASIC RULES OF ROI



RULE#1 ROI IS A BUSINESS METRIC, NOT A MEDIA METRIC. RULE #2 ROI IS 100% MEDIA-AGNOSTIC. RULE #3 THE VALUES USED IN THE ROI EQUATION ARE NONVARIABLE.


RULE#4 ROI STANDS FOR RETURN ON INVESTMENT. PERIOD. RULE #5 EVERY RESOURCE YOU ASSIGN TO A PROJECT HAS A VALUE. RULE #6 ROI CAN ONLY CALCULATED AFTER THE INVESTMENT HAS YIELD A RETURN.


ROI IS BUSINESS MEASUREMENT, NOT ALCHEMY. IF YOUR EQUATION SHOWS A COST VALUE IN EUROS AND A GAIN VALUE EXPRESSED IN FACEBOOK LIKERS, YOU’RE IN TROUBLE.

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SOCIAL MEDIA IS NOT FREE


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EVERYTHING YOU PUT INTO A SOCIAL MEDIA PROGRAM HAS A COST ATTACHED TO IT


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INCLUDING SOCIAL MEDIA TO THE P&L


WTF?


THE INVESTMENT-RETURN RELATIONSHIP

INVESTMENT ACTION REACTION NONFINANCIAL IMPACT

FINANCIAL IMPACT

€€€€ €€€€

THIS IS VERY IMPORTANT, BUT ROI DOESN’T LIVE HERE.


INVESTMENT ACTION REACTION NONFINANCIAL IMPACT

FINANCIAL IMPACT

€€€€ €€€€

WELCOME TO ROI WORLD

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DARE TO CONNECT THEM?


What is the unit of measure [the currency in other words] of inspira>on? How about Innova>on? Rela>onships, even?

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THE MAGIC WORD HERE IS:


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CORRELATION


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IS THERE AN EASY WAY?


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YES 22-Mar-11 Social media is dead. long live social media roi

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FIRST THINGS FIRST


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#1 ESTABLISH A BASELINE


Trend: 10% Growth

Start of Ac>vity Start of SM Program Start of Campaign Start of Measurement

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#2 CREATE ACTIVITY TIMELINE


1 2 3 4 5 6 7 8 9 10 11 12

1st Month 2nd Month ...

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#3 MONITOR THE VOLUME OF MENTIONS


1 2 3 4 5 6 7 8 9 10 11 12

Months

Nega>ve Men>ons

Posi>ve Men>ons

Overall Men

>ons

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#4 MEASURE TRANSACTIONAL FORERUNNERS


WHAT YOU CAN MEASURE

WHAT YOU SHOULD MEASURE

MEASURE HERE

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#5 LOOK AT TRANSACTIONAL DATA


Sales Revenue

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#5 LOOK AT TRANSACTIONAL DATA


Transac>ng Customers

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#6 OVERLAY ALL YOUR DATA [STEPS 1-5] ONTO A SINGLE TIMELINE


0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan

ACTIVITIES

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan SO

CIAL

DAT

A

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan

TRAN

SACT

IONS

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan

WEB

DAT

A

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan LOYA

LTY METRICS

AND MORE...

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#7 LOOK FOR PATTERNS


0

20

40

60

80

100

120

140

160

Jan Apr Jul Oct Jan

CORR

ELAT

IONS

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#8 PROVE & DISPROVE RELATIONSHIPS


0

20

40

60

80

100

120

140

160

Jan Apr Jul Oct Jan

CORR

ELAT

IONS

Why? Why Not?

How this group was touched by SM or WoM?


I NEED A PROVE

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GENERAL MILLS


DAVID WITT Senior Manager, Brand Public Rela2ons, General Mills

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WHAT WILL HAPPEN IF YOU DON’T NOT CARE ABOUT ROI?


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RETURN ON IGNORANCE


it’s advocates >me

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IGNORANCE : BRAND’S DEATH


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THANK YOU!


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LEARN MORE


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CONTACT US IF YOU CARE ABOUT YOUR SOCIAL MEDIA ROI +30 210 6395234

Thanks for the inspira>on: James Belasco, Oliver Blanchard, Alexander Osterwalder

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[email protected]

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Social Media is Dead. Long Live Social Media ROI