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- 1. Internet Marketing ROI Christopher S. Penn, Director of Strategy www.WhatCounts.com
- 2. Fair Warning
- 3. Three Disclaimers X
- 4. How can a company be innovative and focus onROI? How do you make a business case forsomething thats experimental? Lets say Iwanted to my training team to spend two hours aweek answering questions on Quora to see whathappens, is it ok to do this without any ROIobjectives?- Scott Hemmons
- 5. I get a lot of analytics from various tools,including web site metrics, Bitly, Klout, Twitter,Facebook, LinkedIn, YouTube etc. It takes me aabout an hour+ to pull it together each month. Doyou have a one-stop shop solution that wouldmake it easier? Even if I had 1 thing plus our webanalytics that would make reporting so mucheasier.- Becky Livingston
- 6. What?When?How?
- 7. Return onInvestment
- 8. Earned - Spent = ROI Spent
- 9. Return on “inﬂuence”Return on conversationReturn on engagement
- 10. 1,000 - 500 = 100% 500
- 11. 250 - 500 = -50% 500
- 12. Earned - Spent = ROI Spent
- 13. Annual Income =Hourly 2,080
- 14. Annual Income =Hourly 2,080Hours x Rate = Time Spend in Money
- 15. $50,000 = $24.04 2,0805 x $24.04 = $120.20
- 16. 1000 - 620.20 = 61.2% 620.20
- 17. Worksheet 1 Money Earned: $_______ Money Spent: $_______ Hourly Rate: $_______ Time Spent: _______ Time Spent in Money: $_______ Total Spent: $_______ Total Earned-Total Spent _______% Total Spent
- 18. What?When?How?
- 19. ROI is noteverything
- 20. AudienceProspects LeadsCustomersEvangelists
- 21. ROI really important!
- 22. ROI not as important!
- 23. What?When?How?
- 24. Earned - Spent = ROI Spent
- 25. Worksheet 2 Method PPC Email Twitter Money Earned Money Spent Hourly Rate Time Spent Time as Money Total SpentEarned - Spent / Spent
- 26. Worksheet 2 Example Method PPC Email Twitter Money Earned $1,000.00 $12,563.00 $750.00 Money Spent $500.00 $5,000.00 $0.00 Hourly Rate $24.04 $24.04 $24.04 Time Spent 5 5 40 Time as Money $120.20 $120.20 $961.60 Total Spent $620.20 $5,120.20 $961.60Earned - Spent / Spent 61.24% 145.36% -22.00%
- 27. Worksheet 2 Example Method PPC Email Twitter Money Earned $1,000.00 $12,563.00 $750.00 Money Spent $500.00 $5,000.00 $0.00 Hourly Rate $24.04 $24.04 $24.04 Time Spent 5 5 40 Time as Money $120.20 $120.20 $961.60 Total Spent $620.20 $5,120.20 $961.60 ROI 61.24% 145.36% -22.00%
- 28. ROI is not necessarily ahelpful number
- 29. Keep or kill decisions
- 30. Last Touch Problem
- 31. EmailWebinar PPC Ad Blog Post Sponsored Tweet Which caused the sale?
- 32. Old school single channel ROI is broken
- 33. o t heB ack t boa rdd raw ing
- 34. Income Margin ExpenseNet Proﬁt Audience Volume Action
- 35. Income Product Margin Expense OperationsNet Proﬁt Audience Marketing Volume Action Sales
- 36. Marketing’s primary output is qualiﬁed leads, yes?
- 37. EPL
- 38. Earned - SpentNumber of Leads
- 39. Worksheet 3 Money Earned: $_______ Money Spent: $_______ Hourly Rate: $_______ Time Spent: _______ Time Spent in Money: $_______ Total Spent: $_______ Total Earned-Total Spent _______ EPL Leads
- 40. So what?
- 41. Yes, but so what?
- 42. Last Touch Problem SolvedGoo gle
- 43. One Phrase:MCF
- 44. Multichannel Revenue
- 45. Channel Last Touch MCF Twitter $59,084 $125,315Facebook $14,036 $22,388
- 46. Channel Last Touch MCF Twitter $59,084 $125,315Facebook $14,036 $22,388
- 47. Earned - Spent = ROI Spent
- 48. 59,084 - 50,000 50,000 = 18.2%
- 49. 125,315 - 50,000 50,000 = 150.6%
- 50. The Big Picture ofInternet Marketing ROI
- 51. Walkthrough/Case Study
- 52. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 Hourly Rate $19.23 Time Spent 780 Time as Money $15,000 Total Spent $15,180Earned - Spent / Spent
- 53. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 $0.00 Hourly Rate $19.23 $19.23 Time Spent 780 260 Time as Money $15,000 $5,000 Total Spent $15,180 $5,000Earned - Spent / Spent
- 54. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent
- 55. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent
- 56. Channel Last Touch MCF Twitter $4,800 $7,200Facebook $42,000 $51,000
- 57. Last Touch Version Method Web Facebook Twitter Money Earned $133,200 $42,000 $4,800 Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent 777.47% 740.00% -4.00%
- 58. MCF Version Method Web Facebook Twitter Money Earned $133,200 $51,000 $7,200 Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent 777.47% 920.00% 44.00%
- 59. Channel Last Touch MCF Twitter -4% 44%Facebook 740% 920%
- 60. If you remove Twitter, this sale goes away.
- 61. Now You Have The Big Picture of Internet Marketing ROI
- 62. Review What? When? How?
- 63. Webinar Tomorrow!www.WhatCounts.com/smplus
- 64. cspenn.com/book
- 65. Christopher Penncspenn@gmail.comTwitter: @cspennLinkedIn: cspenn.com/lFacebook: cspenn.com/fGoogle+: cspenn.com/gWeb: christopherspenn.com
- 66. Questions?

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