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SOCIAL MEDIA ROI #2
                                                                      how to get it



                                                                                                                           April 2011




                        Social Media ROI#2 by www.drwho.it is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Unported License.


venerdì 1 aprile 2011
THE SECRET
            FORMULA
        Brand’s secret is dominating
                this formula

         Speed = Space/Time



                                       Foto: paolomargari.it

venerdì 1 aprile 2011
THE
              QUESTION
         “ will I have enought time?”




                                        Foto: paolomargari.it

venerdì 1 aprile 2011
TIME IS
                        MONEY
     Social Media ROI depends on
              the Time




                                   Foto: paolomargari.it

venerdì 1 aprile 2011
Project

                        Action                                           ROI


                                              Re-
                                                          Impact
                                             action




                                    THE FIRST RULE
                                 no border between starting and ending
                                                                     Foto: paolomargari.it

venerdì 1 aprile 2011
Project

                        Action                                           ROI


                                            Re-
                                                        Impact
                                           action


                                       narrative system




                                     RE-ACTION
                             not a reaction, but the correct re-action

venerdì 1 aprile 2011
Project

                        Action                               ROI


                                        Re-
                                                    Impact
                                       action


                                    narrative system




                                 THE CONTINUUM
                                    non financial impact

venerdì 1 aprile 2011
Project

                        Action                                                                                   ROI


                                                              Re-
                                                                                    Impact
                                                             action


         Return On Impact                           narrative system
          it	 dipends	 on	 two	 factors:                                                    Example	 data
               website/blog	 virality                 seeding	 activity   website/blog	 seeded	 200
                 opinions	 visibility                                     website/blog	 reactived	 120	 (seeding	 ratio	 0,6)

                                                                          the	 effect	 in	 the	 blogosphere
                                                                          246	 posts	 and	 370	 semantically	 relevant	 opinions
                                 Assumption                               so:
                         1	 website/blog	 means	 1	 post                  WOM	 246-120=	 126	 (wom	 ratio:	 0,51)
                         1	 post	 generate	 more	 opinions
                                                                              Return	 On	 Impact	 =	 370/246	 (1,50	 ratio)


     Data provided by


venerdì 1 aprile 2011
Project

                        Action                                                                         ROI


                                                        Re-
                                                                          Impact
                                                       action


         Return On Impact                        narrative system
                                                  Return On Interest
                                                                                  Example	 data
                                                                website/blog	 seeded	 200
                           Assumption
                                                                website/blog	 reactived	 120	 (seeding	 ratio	 0,6)
                1	 opinion	 means	 1relevant	 person
                                                                the	 effect	 in	 the	 blogosphere
                                                                246	 posts	 and	 370	 semantically	 relevant	 opinions
                                                                so:
                                                                WOM	 246-120=	 126	 (wom	 ratio:	 0,51)

                                                                   Return	 On	 Interest	 =	 370/126	 (2,93	 ratio)


     Data provided by


venerdì 1 aprile 2011
Project

                        Action                                                                         ROI


                                                        Re-
                                                                          Impact
                                                       action


         Return On Impact                        narrative system Return On Attention
                                                  Return On Interest
                                                                                  Example	 data
                                                                Time:	 180	 day
                           Assumption                           opinion	 semantically	 relevant:	 370
                1	 opinion	 means	 1relevant	 person            seeding	 ratio:	 0,6
                                                                wom	 ratio:	 0,5
                                                                engagement	 ratio:	 370/126	 =	 2,96
                                                                                  Return	 On	 Attention:
                                                                     people/Time*(seeding	 ratio	 +	 wom	 ratio	 +	 
                                                                                   engagement	 ratio)
                                                                                 Return	 On	 Attention	 =
                                                                        370/180*(0,6+0,51+2,93)=8,32

     Data provided by


venerdì 1 aprile 2011
Project

                        Action                                                                        ROI


                                                     Re-
                                                                                Impact
                                                    action


         Return On Impact                  narrative system Return On Attention
                                            Return On Interest

                                                          Question
                                             How	 to	 achieve	 the	 financial	 ROI?



            ∑       =Ft∕(1+i)t
                                                      [social CRM]                                 [NO loss]
                                                     CONTINUUM
                                 it’s	 mantaining	 cash	 flow	 time	 after	 time	 (discounting	 
                                                       money’s	 cost)



venerdì 1 aprile 2011
Project

                        Action                               ROI


                                     Re-
                                                Impact
                                    action


         Return On Impact        narrative system Return On Attention
                                  Return On Interest


          ∑=Ft∕(1+i)t                social CRM          NO loss


         ROI = EBIT/INVESTMENT                       MORE sales ∫t

venerdì 1 aprile 2011
SOCIAL MEDIA ROI #2
                                                how to get it



                            Who: C. Di Tullio aka DR_WHO
                            What: marketer & blogger
                            Where: drwho.it
                                     Foto: photos permissions - thanks to Paolo Margari - paolomargari.it


                        Social Media ROI#2 by www.drwho.it is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Unported License.


venerdì 1 aprile 2011

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Social Media ROI #2

  • 1. SOCIAL MEDIA ROI #2 how to get it April 2011 Social Media ROI#2 by www.drwho.it is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Unported License. venerdì 1 aprile 2011
  • 2. THE SECRET FORMULA Brand’s secret is dominating this formula Speed = Space/Time Foto: paolomargari.it venerdì 1 aprile 2011
  • 3. THE QUESTION “ will I have enought time?” Foto: paolomargari.it venerdì 1 aprile 2011
  • 4. TIME IS MONEY Social Media ROI depends on the Time Foto: paolomargari.it venerdì 1 aprile 2011
  • 5. Project Action ROI Re- Impact action THE FIRST RULE no border between starting and ending Foto: paolomargari.it venerdì 1 aprile 2011
  • 6. Project Action ROI Re- Impact action narrative system RE-ACTION not a reaction, but the correct re-action venerdì 1 aprile 2011
  • 7. Project Action ROI Re- Impact action narrative system THE CONTINUUM non financial impact venerdì 1 aprile 2011
  • 8. Project Action ROI Re- Impact action Return On Impact narrative system it dipends on two factors: Example data website/blog virality seeding activity website/blog seeded 200 opinions visibility website/blog reactived 120 (seeding ratio 0,6) the effect in the blogosphere 246 posts and 370 semantically relevant opinions Assumption so: 1 website/blog means 1 post WOM 246-120= 126 (wom ratio: 0,51) 1 post generate more opinions Return On Impact = 370/246 (1,50 ratio) Data provided by venerdì 1 aprile 2011
  • 9. Project Action ROI Re- Impact action Return On Impact narrative system Return On Interest Example data website/blog seeded 200 Assumption website/blog reactived 120 (seeding ratio 0,6) 1 opinion means 1relevant person the effect in the blogosphere 246 posts and 370 semantically relevant opinions so: WOM 246-120= 126 (wom ratio: 0,51) Return On Interest = 370/126 (2,93 ratio) Data provided by venerdì 1 aprile 2011
  • 10. Project Action ROI Re- Impact action Return On Impact narrative system Return On Attention Return On Interest Example data Time: 180 day Assumption opinion semantically relevant: 370 1 opinion means 1relevant person seeding ratio: 0,6 wom ratio: 0,5 engagement ratio: 370/126 = 2,96 Return On Attention: people/Time*(seeding ratio + wom ratio + engagement ratio) Return On Attention = 370/180*(0,6+0,51+2,93)=8,32 Data provided by venerdì 1 aprile 2011
  • 11. Project Action ROI Re- Impact action Return On Impact narrative system Return On Attention Return On Interest Question How to achieve the financial ROI? ∑ =Ft∕(1+i)t [social CRM] [NO loss] CONTINUUM it’s mantaining cash flow time after time (discounting money’s cost) venerdì 1 aprile 2011
  • 12. Project Action ROI Re- Impact action Return On Impact narrative system Return On Attention Return On Interest ∑=Ft∕(1+i)t social CRM NO loss ROI = EBIT/INVESTMENT MORE sales ∫t venerdì 1 aprile 2011
  • 13. SOCIAL MEDIA ROI #2 how to get it Who: C. Di Tullio aka DR_WHO What: marketer & blogger Where: drwho.it Foto: photos permissions - thanks to Paolo Margari - paolomargari.it Social Media ROI#2 by www.drwho.it is licensed under a Creative Commons Attribuzione - Non commerciale - Non opere derivate 3.0 Unported License. venerdì 1 aprile 2011