The Value of Organic Social Media Marketing


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The value of organic social media marketing discusses how marketers can find the right balance between paid, owned, and earned on social. Includes information about the six measurement models of social media ROI.

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  • There’s a lot of logo’s on this slide, many of whom I’m sure you recognize. But the point is, We work primarily with large, highly visible brands: Companies with significant regional, national and international reach, such as P&G, have needs, concerns, and challenges that differ significantly from small shops and startups. Your actions in social media are under a different magnitude of microscope, and your projects and campaigns are subject to much more extensive internal approval processes and external scrutiny. We understand that, and live it with clients just like you daily.
  • The Value of Organic Social Media Marketing

    1. 1. Jim Tobin Value of Organic Social Media Marketing
    2. 2. Select Clients 16 16
    3. 3. About Social Media “ROI”
    4. 4. Six models of social media marketing ROI • The Amplification Model: – how much would it cost to buy these impressions/social actions through paid media? • Value of Social Traffic versus Display: – how much does it cost to get a visitor to your site via social promotions versus display advertising? • Quality of Visitors from Social Media: – how well do the visitors being driven to a site via social media perform? • Revenue from Facebook Fans Model: – how much incremental revenue do Facebook fans generate? • Revenue from Social Media Marketing: – how many sales can be attributed to your social media marketing programs? • Social Promotions Sales ROI: – how many sales can be attributed to a special social media marketing promotion?
    5. 5. The Amplification Model Calculates the value of the following: In a given time period, we generated: 1) 2) 3) 4) 5) 6) 7) Facebook Organic Impressions Clicks on Facebook Links Twitter Impressions Clicks on Twitter Links Organic YouTube Views Blog Page Views Online Brand Impressions 1) 75,442,874 Organic Impressions Using Data from: On a spend of: • $1,660,000 (Agency fees and all expenses) A) B) C) D) Industry data on CPM for targeted online buys ($8 CPM) Industry average for cost-per-click advertising ($0.58 per click) Average cost per view for promoted YouTube videos ($0.20 per view) Parts of “Social Equivalent Ad Value Model” created by Tourism Ireland ( (Facebook and Twitter only) 2) 4,849,246 Social Actions (Links clicked, brand mentions, organic YouTube views, blog page views) With a value of: • $2,021,627.27 For a Purchase Equivalency of: • $1.21 for every $1 spent
    6. 6. Value of Social Traffic versus Display
    7. 7. Quality of Visitors from Social Media Description Pages per Visit 1.57 2.84 Delta Social = 1.8x more visitors Time on Site 0:40 2:18 Social = 3.45x more time on site Bounce Rate 81.40% 45.46% Social = 44% lower bounce rate 3,098 12,603 Social = 4x more goal conversions Goal Conversions Display Social
    8. 8. Revenue from Facebook Fans Model • • Social media is great at driving vast amounts of conversation. Conversation that gets seen. Facebook fans are better advocates, and better customers, than non-fans. Description Net New Facebook Fans % Likely to Consider, Fan % More Likely to Purchase Since Becoming a Fan Price of Product Purchases per Year # of New Facebook Fans Who Are New Customers Total Estimated Revenue (Year) Number Notes 283,786 For a year 69% Blackberry is closest analogous brand in 16% this case Conservative estimate from the 2011 Chadwick Martin Bailey Consumer Pulse $250 Fictitious, changed from actual client 0.33 31,330 $2,584,722.89 example Fictitious, changed from actual client example New Fans * % Likely to Purchase * % More Likely to Purchase Since Becoming a Fan New Fans Who Are New Customers * Price of Product * Purchases per Year Likely to Buy Same Brand Again Source: Facebook 60% 50% 40% 55% 53% 36% 37% 30% Owner + Fan 20% Owner, Not Fan 10% 0% Brand A Brand B
    9. 9. Revenue from Social Media Marketing Visitors to Goal Pages Products Sold Number 4,830,827 In a given time period Notes 345,324 For the same time period Goal Pages/Sale: 13.989 Social Media Traffic to Goal Pages 27,716 Visitors from social networks, blogs, etc. who landed on one of the goal pages in the time period 1,981 Social media traffic to goal pages / (goal pages/sale) Products “Sold” Through Social Average Sales Price per Product Revenue from Social “Sales” Cost of Social Media Marketing ROI $135 Revenue during the period / unit sales during the period $267,435 Products “Sold” x Average Sales Price $97,500 For the same time period $1.74 (Revenue – Cost) / Cost
    10. 10. Social Promotions Sales ROI Total Cost of Promotion # of Goal Page Completions Goal Pages per Sale Products “Sold” Through Social Revenue from Social “Sales” ROI Number $195,404 Including ads Notes 34,812 Use actual if it can be tracked with tracking links. If not, measure “above baseline” during tracking period. Counting unique visitors would be best. 13.989 From model above 2,489 Goal page completions / goal pages per sale $336,015 Products “Sold” x Average Sales Price of $135 $0.72 (Revenue – Cost) / Cost
    11. 11. Maintain Your Balance
    12. 12. Balanced Approach Earned The social current that carries the message Ignite takes over Paid Paid A driver and amplifier of growth and reach Owned Amplified Success Both a driver and benefiter of social efforts 93:1 ROI
    13. 13. Organic Exposures Are Better 76% Lift 28% Lift
    14. 14. Organic Exposures Are Better 6x More Pages 2x More Pages
    15. 15. Organic Exposures Are Better 55% Lift No Lift
    16. 16. Take Home Messages
    17. 17. Jim Tobin 919.653.2582 @jtobin