The document discusses the importance of measuring return on investment (ROI) for social media. It notes that while social media is no longer a new concept, companies must still prove the financial impact of their social media investments through ROI metrics. The document provides guidance on calculating ROI for social media efforts, including establishing baselines, monitoring key metrics over time, and looking for correlations between social media activities and transactional data.
4. A SOCIAL MEDIA TEAM?
xplain.co Social media is dead. long live social media roi 22-Mar-11
5. SO WHAT?
xplain.co Social media is dead. long live social media roi 22-Mar-11
6. IT’S DEJA VU
Our
Let’s
go
Has
Legal
Is
this
Let’s
put
our
TVCs
compe>tors
Social
too
seen
this?
Working?
on
YouTube!
have
a
FB
Page
xplain.co Social media is dead. long live social media roi 22-Mar-11
7. THE LONG STORY / SHORT
xplain.co Social media is dead. long live social media roi 22-Mar-11
8. THE LONG STORY / SHORT
xplain.co Social media is dead. long live social media roi 22-Mar-11
9. 10:00 AM @ OFFICE
THE SCENE / BOSS IS ENTERING THE OFFICE
BOSS / SEES HIS SECRETARY SURFING IN FACEBOOK
xplain.co Social media is dead. long live social media roi 22-Mar-11
11. BOSS / HOW MANY FRIENDS DO YOU HAVE?
xplain.co Social media is dead. long live social media roi 22-Mar-11
12. BOSS / HOW MANY FRIENDS DO YOU HAVE?
SECRETARY / 4.999 MY BOSS
xplain.co Social media is dead. long live social media roi 22-Mar-11
13. 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?
xplain.co Social media is dead. long live social media roi 22-Mar-11
14. 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!
xplain.co Social media is dead. long live social media roi 22-Mar-11
15. 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?
xplain.co Social media is dead. long live social media roi 22-Mar-11
16. 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!
xplain.co Social media is dead. long live social media roi 22-Mar-11
17. BUT HE HADN’T SEEN HER PERSONAL PAGE..
content
Her
sexy
photos
from
her
latest
vaca2ons
audience
97%
“hungry”
men
18-‐35
xplain.co Social media is dead. long live social media roi 22-Mar-11
18. a+er
6
months
THE RESULT
xplain.co Social media is dead. long live social media roi 22-Mar-11
19. 555 FANS/LIKERS
content
audience
Bla,
Bla,
Bla,
Bla
Who
Knows?
Bla,
Bla,
Bla
Who
Cares?
xplain.co Social media is dead. long live social media roi 22-Mar-11
20. facebook?
my
ass
NEXT TIME
MARKETING
MANAGER ASKED HIS
BOSS TO INVEST
€€€€ ON FACEBOOK
MARKETING
xplain.co Social media is dead. long live social media roi 22-Mar-11
21. INVEST?
xplain.co Social media is dead. long live social media roi 22-Mar-11
23. €$¥
xplain.co Social media is dead. long live social media roi 22-Mar-11
24. ROI
xplain.co Social media is dead. long live social media roi 22-Mar-11
25. WHAT DOES IT MEAN ROI?
xplain.co Social media is dead. long live social media roi 22-Mar-11
26. it’s
recession
>me
RETURN ON INVESTMENT
ROI
=
[GAIN
FROM
INVESTMENT
–
COST
OF
INVESTMENT]
/COST
OF
INVESTMENT
the formula!
xplain.co Social media is dead. long live social media roi 22-Mar-11
27. THE BASIC RULES OF ROI
xplain.co Social media is dead. long live social media roi 22-Mar-11
28. 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.
xplain.co Social media is dead. long live social media roi 22-Mar-11
29. 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.
xplain.co Social media is dead. long live social media roi 22-Mar-11
30. 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.
xplain.co Social media is dead. long live social media roi 22-Mar-11
31. SOCIAL MEDIA IS NOT FREE
xplain.co Social media is dead. long live social media roi 22-Mar-11
32. EVERYTHING YOU PUT INTO
A SOCIAL MEDIA PROGRAM
HAS A COST ATTACHED TO IT
xplain.co Social media is dead. long live social media roi 22-Mar-11
33. INCLUDING SOCIAL MEDIA
TO THE P&L
WTF?
xplain.co Social media is dead. long live social media roi 22-Mar-11
34. €€€€
€€€€
NONFINANCIAL
FINANCIAL
INVESTMENT
ACTION
REACTION
IMPACT
IMPACT
THIS
IS
VERY
IMPORTANT,
BUT
ROI
DOESN’T
LIVE
HERE.
THE INVESTMENT-RETURN RELATIONSHIP
xplain.co Social media is dead. long live social media roi 22-Mar-11
35. €€€€
€€€€
NONFINANCIAL
FINANCIAL
INVESTMENT
ACTION
REACTION
IMPACT
IMPACT
WELCOME TO ROI WORLD
xplain.co Social media is dead. long live social media roi 22-Mar-11
36. 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?
xplain.co Social media is dead. long live social media roi 22-Mar-11
37. THE MAGIC WORD HERE IS:
xplain.co Social media is dead. long live social media roi 22-Mar-11
42. #1 ESTABLISH A BASELINE
Start
of
Ac>vity
Start
of
SM
Program
Start
of
Campaign
Start
of
Measurement
Trend:
10%
Growth
xplain.co Social media is dead. long live social media roi 22-Mar-11
43. #2 CREATE ACTIVITY TIMELINE
1
2
3
4
5
6
7
8
9
10
11
12
1st
Month
2nd
Month
...
xplain.co Social media is dead. long live social media roi 22-Mar-11
44. #3 MONITOR THE VOLUME OF MENTIONS
Overall
Men>ons
Posi>ve
Men>ons
Nega>ve
Men>ons
1
2
3
4
5
6
7
8
9
10
11
12
Months
xplain.co Social media is dead. long live social media roi 22-Mar-11
45. #4 MEASURE TRANSACTIONAL FORERUNNERS
WHAT
YOU
MEASURE
WHAT
YOU
SHOULD
CAN
MEASURE
HERE
MEASURE
xplain.co Social media is dead. long live social media roi 22-Mar-11
46. #5 LOOK AT TRANSACTIONAL DATA
Sales
Revenue
xplain.co Social media is dead. long live social media roi 22-Mar-11
47. #5 LOOK AT TRANSACTIONAL DATA
Transac>ng
Customers
xplain.co Social media is dead. long live social media roi 22-Mar-11
48. #6 OVERLAY ALL YOUR DATA [STEPS 1-5]
ONTO A SINGLE TIMELINE
ACTIVITIES
SOCIAL
DATA
WEB
DATA
160 160 160
140 140 140
120 120 120
100 100 100
80 80 80
60 60 60
40 40 40
20 20 20
0 0 0
Jan Apr Jul Oct Jan Jan Apr Jul Oct Jan Jan Apr Jul Oct Jan
TRANSACTIONS
LOYALTY
METRICS
160 160
140 140
120 120
100 100
80 80 AND
MORE...
60 60
40 40
20 20
0 0
Jan Apr Jul Oct Jan Jan Apr Jul Oct Jan
xplain.co Social media is dead. long live social media roi 22-Mar-11
49. #7 LOOK FOR PATTERNS
CORRELATIONS
160
140
120
100
80
60
40
20
0
Jan Apr Jul Oct Jan
xplain.co Social media is dead. long live social media roi 22-Mar-11
50. #8 PROVE & DISPROVE RELATIONSHIPS
CORRELATIONS
160
140
Why?
Why
Not?
120
100
80
60
40
How
this
group
was
touched
by
20 SM
or
WoM?
0
Jan Apr Jul Oct Jan
xplain.co Social media is dead. long live social media roi 22-Mar-11
51. I NEED A PROVE
xplain.co Social media is dead. long live social media roi 22-Mar-11
52. GENERAL MILLS
DAVID
WITT
Senior
Manager,
Brand
Public
Rela2ons,
General
Mills
xplain.co Social media is dead. long live social media roi 22-Mar-11
53. WHAT WILL HAPPEN IF YOU
DON’T NOT CARE ABOUT ROI?
xplain.co Social media is dead. long live social media roi 22-Mar-11
54. it’s
advocates
>me
RETURN ON IGNORANCE
xplain.co Social media is dead. long live social media roi 22-Mar-11
58. CONTACT US
IF YOU CARE ABOUT YOUR
SOCIAL MEDIA ROI
+30
210
6395234
xplain.co
karagos@xplain.co
Cyprus
Bahrain
Greece
Romania
Switzerland
xplain.co Thanks
for
the
inspira>on:
James
Belasco,
Oliver
Blanchard,
Alexander
Osterwalder