Effective Social Media Measurement Strategies

Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
Hello!

UNDERSTANDING AND
IMPLEMENTING AN EFFECTIVE
SOCIAL MEDIA MEASUREMENT
STRATEGY
Best Marketing, Tallinn
April 22nd 2015

Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
AGENDA
• Who are DigitasLBi?
• How can businesses demonstrate and measure ROI from social media
activities?
• What is social media measurement and how can you use it to improve other
areas of your business?
• What should businesses measure?
• How to avoid common mistakes?
• Q&A session

WE ARE A
GLOBAL MARKETING AND
TECHNOLOGY AGENCY
THAT HELPS BUSINESSES
TRANSFORM FOR
THE DIGITAL AGE.

Sweden
150
ONE NORDIC FAMILY
Norway
30
Copenhagen
70

8
USA
2850
NORDICS
250
UK
900
EUROPE
1000
APAC
1100
6000+ PEOPLE
40 OFFICES
25 COUNTRIES
6000+ PEOPLE
40 OFFICES
25 COUNTRIES
OUR NETWORK

WHO WE WORK FOR

WE CREATE
AWARD WINNING WORK

450 1 Petabyte 13 Million
Data scientists Globally Of data processed monthly
Data calls managed every
minute
THE LARGEST DATA SCIENCE
TEAM OF ITS KIND AMONGST
AGENCIES

“Our preferred agency partner.”
“They know how to work with us better than anyone else.”
“We select them over other agency partners for their ability to act
quickly to adopt new technology.”
CAROLYN EVERSON:
VP, GLOBAL MARKETING SOLUTIONS, FACEBOOK
ADAM BAIN:
PRESIDENT, TWITTER
TORRENCE BOONE:
MANAGING DIRECTOR, AGENCY BUSINESS DEVELOPMENT
PARTNERS IN INNOVATION

• An Englishman living in Gothenburg, Sweden
• An DigitasLBi veteran of 4 years
• Working with social media & analytics since 2005
• Current clients include;
Nicholas Bean
Senior Analyst –
Sweden
@nickobeano
WHO AM I?

HOW DO YOU MEASURE THE
ROI OF SOCIAL MEDIA?
The same way you would with anything else

HOW MUCH DID THAT
DECISION COST?

• Each player guaranteed $49,000 just for showing up…
• Winners will receive $97,000
• 53 man roster on each team
$49k * 53 =
$2,597,000
Losing team
$97* 53 =
$5,141,000
Winning team
- $2,544,000
(€2,351,419)
Opportunity Cost
=
WE CAN DO THE MATH…

$4.5 MILLION
Source: Wall Street Journal - January 2015

REAL TIME MARKETING
• Content created on the fly - a responsive approach to events as they happen
• Designed to appeal to a specific audience
• Typically: Funny, creative – the aim being to connect with consumers in the
moment with a service they want or need as they need it
• The most famous example of this being…

THE OREO TWEET…
• Please check out Mark Ritson Vs. Social Media on YouTube
• Oreo had about 69k followers at the time it was tweeted
• Using one of our social research partners, Crimson Hexagon, I estimate that
the maximum number of impressions is circa 21 million
• But not everyone sees every Tweet – typically it is a very low proportion of
followers <5%
• Lets be generous and say it was as high as 15%

3,138,065 IMPRESSIONS
15% of 20,920,436

ROUND 1 TO TV…
Est, 3.1 million
impressions
Est, 50.9 million
impressions
Vs.
CPM €82.76
$4.5 million / 50.9 million est. impressions
?

DISTRIBUTION /REPUTATION
MANAGEMENT

THE OREO TWEET…
• 360i who made the Oreo ad had a “war room” consisted of 15 people; Strategists,
Monitors, Analysts, Creatives, Executives etc
• Most big agencies offer this service, including DigitasLBi – which we call ours Brand Live
• Typically, agencies charge somewhere between €100 – €500 per hour for each employee
– for sake of ease, lets say average cost is €150 per hour
• 15 x €150 = €2250 per hour
• Superbowls are LONG – around 10 hours of coverage = €22,500
• Plus preparation time, set-up, strategy, equipment – we can estimate the total cost to
about €40,000

MORE MATH…
€40,000
Est. Cost
3.1 million
impressions
Est. Impressions
÷ €12.74
Est. CPM
=

ROUND 2 TO SOCIAL MEDIA
Est, 3.1 million
impressions
Est, 50.9 million
impressions
Vs.
CPM €82.76
€4.24million / 50.9 million est. impressions
CPM €12.74
€40,000 / 3.1 million est.
impressions

REMEMBER THIS EXAMPLE?
• Similar brand/product/audience to Oreo
• Similar number of followers to Oreo
• Similar content format
• Total possible impressions of 461k – using
our earlier estimates, probably closer to
69,212
• For the sake of ease, lets say 70k
impressions

YET MORE MATH…
€30,000
Est. Cost
70k
impressions
Est. Impressions
÷
€428
Est. CPM
=

KLM – THE SERVICE INDUSTRY
BENCHMARK
• Offer response via social media to queries within an hour – resolution
of issues within a day
• Covering Bookings, Check-in, Seating, Meals, Baggage, Fares, Flight
Times, delays, planning group trips
• Responses across English, French, Dutch, Italian, Japanese, Korean,
Norwegian, Portuguese, Russian, Spanish, Thai and Turkish
• They use Real-Time social media not (just) to advertise, but to create
value and offer assistance to customers

DEFINING ROI
To calculate ROI, the benefit (return) of an investment is divided by the cost of the
investment; the result is expressed as a percentage or a ratio.
www.investopedia.com

PROBLEMS ENCOUNTERED
• Unclear/undefined objectives
• Measuring things you can’t
change or that are too variable
• Lack of attribution
• Unclear reporting
Gain from
Investment
Cost of Investment
• Imprecise cost structures
• Attribution of working hours
• Value of assets going forward
• Unclear reporting

HOW MUCH IS AN OWNED/EARNED
IMPRESSION WORTH?
• You can work this out…
• Facebook, Twitter and other social platforms allow purchase of
audience targeting to fans and friends of fans (owned and earned
impressions)
CPM targeting
current fans or
friends of fans
Owned and Earned
impressions
x =
Media value of
impressions
generated

USING ATTRIBUTION TO
UNDERSTAND VALUE
• Ideally, you should use a multi-touch
attribution model
• Assign credit to each touch point
(media, search, social) based on
actual influence on desired
outcomes…
• …but this is both quite complex and
quite expensive for a lot of brands

• Most commonly used analytics program for sites is Google Analytics –
82% approx
• Using Google Analytics and campaign coding your can very cheaply build
in last click attribution into your analytics
• This allows you to assign an arbitrary value to your activity on social
media based on digital goal completions
USING ATTRIBUTION TO
UNDERSTAND VALUE

Cost of
Investment
Return On
Investment
Gain from
Investment
-
DEFINING ROI
Cost of
Investment
=

• This single tweet made Tesla’s stock
value increase 4% in 10 minutes.
• That works out to about $900 million
• From just 115 characters

WHAT IS SOCIAL MEDIA
MEASUREMENT?
And how can it be used to improve your business?

“Numbers are essentially just facts, and
ultimately every sport is about numbers.
How many points you get, how many wins
you get – all numbers.
It’s like watching a card-counter in Vegas playing
blackjack. Once you have learned how to count
cards, why would you ever go back to doing it on
a hunch?”
Billy Beane – The Guardian, October 2014

CONTENT CONTEXT CONVERSATIONS
SOCIAL MEDIA CONCEPTS
& CREATIVE
The ’normal’ approach

’Conversation back’
CONTENT CONTEXT CONVERSATIONS
SOCIAL MEDIA CONCEPTS &
CREATIVE

RIGHT CONTENT, RIGHT
AUDIENCE, RIGHT CHANNEL,
RIGHT TIME

WHY IS THIS APPROACH
IMPORTANT?
Because nobody cares about your brand…

WHY DO PEOPLE USE SOCIAL
MEDIA?

BUT NOT…

“I try to share only information
that will reinforce the image I'd
like to present: thoughtful,
reasoned, kind, interested and
passionate about certain
things.”
Source: NY Times “The Psychology of Sharing: Why Do People Share Online”

IMPACTING FOUR FUNDAMENTAL
AREAS
Opinion Identity
Behavior
Impact
What people think &
say about a brand,
product, or service etc
Who that audience is;
demographics,
sociographics etc
How an audience
behaves. What do they
share? What do they
like? Who influences
them?
How brands can
influence all of these
areas

TAKE MY MONEY…
• HBO is identifying people on
Twitter that tweeted
#takemymoneyHBO 3 years ago
and asking them to purchase its
product
• Right content, right audience,
right channel…
• …two years too late?

Jordan

”Not really sure how to feel about it.
It’s something in the way you move.
Makes me feel like I can't live without you.
It takes me all the way.
I want you to stay.”

WHAT SHOULD YOU MEASURE?

MORE THAN JUST A LOAD OF
LIKES
Social Media
Community
Active
Community
Total
Customers
Potential
Customers

HOW MUCH IS A “LIKE” WORTH?...
NOT A LOT.
=
$0.05 – $0.10
Per “like” ?
=
$0.01 – $0.04
Per “follower ?
If it sounds too good to be true, it probably is.

WHAT % OF LIKES AND
FOLLOWERS ARE REAL?
• In 2013 Twitter confirmed that about 4%
of its users were fake – probably a higher
number now
• That works out to about 11.3 million
• In 2014 – Facebook confirmed that it
“didn’t know” how many of its users were
fake…
• … but that it was somewhere between
5.5% to 11.2%
• That works out to between 74.2 and
151.2 million

WHAT % OF LIKES AND
FOLLOWERS ARE REAL?

WHAT DOES SUCCESS LOOK LIKE?
• Every business is different
• What is a great measure of success for another
company, or even a competitor might not be right for
you, but…
• Social media is only one tool by which you can
communicate with customers/audiences
• Social media can’t do everything, in reality it has a
limited span of influence
• Your social media strategy should be interwoven within
the wider digital objectives of your company

DEFINING SOCIAL MEDIA KPIS
AWARENESS
ENGAGEMENT
CONSIDERATION
CONVERSION
ADVOCACY
SMART
KPIs
How many people saw the
content?
Did people share,
comment, like the
content?
How many responses were generated?
Did we generate a
sale/goal?
Did we get people to
talk/share?

Define
• Rapid audit of existing
business KPIs
• Work with
stakeholders to
eliminate/add KPIs as
required
• Undertake
stakeholder education
to ensure clear
understanding of KPI
vs. diagnostic
measure.
Design
• Information
architecture is vital
irrespective of
report delivery
method
• Consult our
information
architect
specialists to
ensure important
information is
presented in the
clearest manner
possible.
Report Channels
• Capture internal
needs for cross-
channel and
channel specific
reporting.
• Additional
customized channel
specific content and
timing is provided
as required.
Normalize
• Normalization is
important to ensure
comparable
benchmarks to
other markets.
• We work to
contextualize local
results against
global benchmarks
to identify areas for
performance
improvement.
Build
• DigitasLBi prefers
Tableau as a
dashboard
solution.
• Contextualize local
results against
global benchmarks
to identify areas
for performance
improvement.
Automate &
Integrate
• Leverage APIs
and data
automation in
order to maximize
efficiency
• Reduces cost
whilst increasing
accuracy and
speed
DEFINING SOCIAL MEDIA KPIS

HINTS AND TIPS
How to avoid common mistakes

QUICK WINS
• Keep objectives in focus - Work out what you want to achieve from a wider digital point of
view
• Know your audience - Use insights to create value for the customer and you will create
value for the company
• Learn from what you have done – understand what went well, and what didn’t.
• Start small – you don’t need to introduce a multi-touch attribution model straight away to
prove performance
• Try to introduce attribution, even if it’s just last-click
• Use UTM codes/whatever alternative you have

COMMON MISTAKES
• Don’t just listen for the sake of listening
• Don’t get confused by sentiment
• Don’t spend all your time on reporting – spend it on analyzing
• Don’t set KPIs that you cant impact or measure
• Don’t focus on likes and followers too much – it is misleading and ultimately meaningless

TÄNAN VÄGA
Any Questions?

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