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. ITâS DEJA VU
Our
Â
 Letâs
 go
Â
 Has
 Legal
Â
 Is
 this
 Letâs
 put
 our
 TVCs
Â
compe>tors
 Social
 too
 seen
 this?
 Working?
 on
 YouTube!
Â
have
 a
 FB
 Page
Â
Â
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 COâS 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 COâS 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 HADNâT SEEN HER PERSONAL PAGE..
content
Â
Her
 sexy
 photos
 from
Â
Â
her
 latest
 vaca2ons
Â
audience
Â
97%
 âhungryâ
 men
Â
18-Ââ35
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
18. a+er
 6
 months
Â
THE RESULT
xplain.co Social media is dead. long live social media roi 22-Mar-11
19. 555 FANS/LIKERS
content
 audience
Â
Bla,
 Bla,
 Bla,
 Bla
 Who
 Knows?
Â
Bla,
 Bla,
 Bla
 Who
 Cares?
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
20. facebook?
 my
 ass
Â
NEXT TIME
MARKETING
MANAGER ASKED HIS
BOSS TO INVEST
âŹâŹâŹâŹ 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. âŹ$ÂĽ
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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. itâs
 recession
 >me
Â
RETURN ON INVESTMENT
ROI
 =
 [GAIN
 FROM
 INVESTMENT
 â
 COST
 OF
 INVESTMENT]
 /COST
 OF
 INVESTMENT
Â
Â
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, YOUâRE 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?
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
34. âŹâŹâŹâŹ
 âŹâŹâŹâŹ
Â
NONFINANCIAL
 FINANCIAL
Â
INVESTMENT
 ACTION
 REACTION
Â
IMPACT
 IMPACT
Â
THIS
 IS
 VERY
 IMPORTANT,
 BUT
 ROI
 DOESNâT
 LIVE
 HERE.
Â
THE INVESTMENT-RETURN RELATIONSHIP
xplain.co Social media is dead. long live social media roi 22-Mar-11
35. âŹâŹâŹâŹ
 âŹâŹâŹâŹ
Â
NONFINANCIAL
 FINANCIAL
Â
INVESTMENT
 ACTION
 REACTION
Â
IMPACT
 IMPACT
Â
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
Â
Innova>on?
 Rela>onships,
 even?
Â
Â
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
Â
Start
 of
 SM
 Program
Â
Start
 of
 Campaign
Â
Start
 of
 Measurement
Â
Trend:
 10%
 Growth
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
43. #2 CREATE ACTIVITY TIMELINE
1
Â
Â
2
 3
 4
 5
 6
 7
 8
 9
 10
 11
 12
Â
1st
 Month
 2nd
 Month
 ...
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
44. #3 MONITOR THE VOLUME OF MENTIONS
Overall
 Men>ons
Â
Posi>ve
 Men>ons
Â
Nega>ve
 Men>ons
Â
1
Â
Â
2
 3
 4
 5
 6
 7
 8
 9
 10
 11
 12
Â
Months
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
45. #4 MEASURE TRANSACTIONAL FORERUNNERS
WHAT
 YOU
 MEASURE
Â
 WHAT
 YOU
 SHOULD
Â
CAN
 MEASURE
 HERE
 MEASURE
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
46. #5 LOOK AT TRANSACTIONAL DATA
Sales
 Revenue
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
47. #5 LOOK AT TRANSACTIONAL DATA
Transac>ng
 Customers
Â
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
Â
SOCIAL
 DATA
Â
WEB
 DATA
Â
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
Â
LOYALTY
 METRICS
Â
160 160
140 140
120 120
100 100
80 80 AND
 MORE...
Â
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
Â
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
Â
160
140
Why?
 Why
 Not?
Â
120
100
80
60
40
How
 this
 group
Â
was
 touched
 by
Â
20 SM
 or
 WoM?
Â
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
Â
Senior
 Manager,
Â
Â
Brand
 Public
 Rela2ons,
Â
General
 Mills
Â
xplain.co Social media is dead. long live social media roi 22-Mar-11
53. WHAT WILL HAPPEN IF YOU
DONâT NOT CARE ABOUT ROI?
xplain.co Social media is dead. long live social media roi 22-Mar-11
54. itâs
 advocates
 >me
Â
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
Â
Â
 Cyprus
Â
 Bahrain
Â
 Greece
Â
 Romania
Â
 Switzerland
Â
xplain.co Thanks
 for
 the
 inspira>on:
 James
 Belasco,
 Oliver
 Blanchard,
 Alexander
 Osterwalder
Â
Â
Â
Â
Â