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Internet Marketing ROI Christopher S. Penn, Director of Strategy          www.WhatCounts.com
Fair Warning
Three Disclaimers                    X
How can a company be innovative and focus onROI? How do you make a business case forsomething thats experimental? Lets say...
I get a lot of analytics from various tools,including web site metrics, Bitly, Klout, Twitter,Facebook, LinkedIn, YouTube ...
What?When?How?
Return    onInvestment
Earned - Spent               = ROI    Spent
Return on “influence”Return on conversationReturn on engagement
1,000 - 500            = 100%    500
250 - 500            = -50%  500
Earned - Spent               = ROI    Spent
Annual Income =Hourly    2,080
Annual Income =Hourly    2,080Hours x Rate   = Time  Spend in   Money
$50,000      = $24.04   2,0805 x $24.04 =  $120.20
1000 - 620.20              = 61.2%   620.20
Worksheet 1              Money Earned:     $_______               Money Spent:     $_______                Hourly Rate:   ...
What?When?How?
ROI is noteverything
AudienceProspects  LeadsCustomersEvangelists
ROI really important!
ROI not as important!
What?When?How?
Earned - Spent               = ROI    Spent
Worksheet 2       Method            PPC   Email   Twitter    Money Earned    Money Spent     Hourly Rate     Time Spent   ...
Worksheet 2 Example       Method              PPC         Email      Twitter    Money Earned         $1,000.00   $12,563.0...
Worksheet 2 Example     Method         PPC         Email      Twitter  Money Earned    $1,000.00   $12,563.00   $750.00  M...
ROI is not necessarily ahelpful number
Keep or kill decisions
Last Touch Problem
EmailWebinar                       PPC Ad          Blog Post                           Sponsored  Tweet              Which...
Old school single channel      ROI is broken
o t heB  ack t          boa  rdd raw ing
Income            Margin                     ExpenseNet Profit                     Audience            Volume              ...
Income      Product            Margin                     Expense    OperationsNet Profit                     Audience   Ma...
Marketing’s primary output is    qualified leads, yes?
EPL
Earned - SpentNumber of Leads
Worksheet 3              Money Earned:     $_______               Money Spent:     $_______                Hourly Rate:   ...
So what?
Yes, but so what?
Last Touch Problem SolvedGoo gle
One Phrase:MCF
Multichannel Revenue
Channel    Last Touch     MCF Twitter    $59,084     $125,315Facebook    $14,036     $22,388
Channel    Last Touch     MCF Twitter    $59,084     $125,315Facebook    $14,036     $22,388
Earned - Spent               = ROI    Spent
59,084 - 50,000    50,000        = 18.2%
125,315 - 50,000     50,000        = 150.6%
The Big Picture ofInternet Marketing ROI
Walkthrough/Case Study
Worksheet 1       Method             Web      Facebook   Twitter    Money Earned    Money Spent          $180.00     Hourl...
Worksheet 1       Method             Web      Facebook   Twitter    Money Earned    Money Spent          $180.00    $0.00 ...
Worksheet 1       Method             Web      Facebook   Twitter    Money Earned    Money Spent          $180.00    $0.00 ...
Worksheet 1       Method             Web      Facebook   Twitter    Money Earned    Money Spent          $180.00    $0.00 ...
Channel    Last Touch    MCF Twitter    $4,800      $7,200Facebook    $42,000     $51,000
Last Touch Version       Method              Web      Facebook   Twitter    Money Earned         $133,200   $42,000    $4,...
MCF Version       Method              Web      Facebook   Twitter    Money Earned         $133,200   $51,000    $7,200    ...
Channel    Last Touch   MCF Twitter      -4%       44%Facebook     740%       920%
If you remove Twitter, this sale goes away.
Now You Have The Big Picture of    Internet Marketing ROI
Review What? When? How?
Webinar Tomorrow!www.WhatCounts.com/smplus
cspenn.com/book
Christopher Penncspenn@gmail.comTwitter: @cspennLinkedIn: cspenn.com/lFacebook: cspenn.com/fGoogle+: cspenn.com/gWeb: chri...
Questions?
Christopher Penn
Christopher Penn
Christopher Penn
Christopher Penn
Christopher Penn
Christopher Penn
Christopher Penn
Christopher Penn
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Transcript of "Christopher Penn"

  1. 1. Internet Marketing ROI Christopher S. Penn, Director of Strategy www.WhatCounts.com
  2. 2. Fair Warning
  3. 3. Three Disclaimers X
  4. 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. 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. 6. What?When?How?
  7. 7. Return onInvestment
  8. 8. Earned - Spent = ROI Spent
  9. 9. Return on “influence”Return on conversationReturn on engagement
  10. 10. 1,000 - 500 = 100% 500
  11. 11. 250 - 500 = -50% 500
  12. 12. Earned - Spent = ROI Spent
  13. 13. Annual Income =Hourly 2,080
  14. 14. Annual Income =Hourly 2,080Hours x Rate = Time Spend in Money
  15. 15. $50,000 = $24.04 2,0805 x $24.04 = $120.20
  16. 16. 1000 - 620.20 = 61.2% 620.20
  17. 17. Worksheet 1 Money Earned: $_______ Money Spent: $_______ Hourly Rate: $_______ Time Spent: _______ Time Spent in Money: $_______ Total Spent: $_______ Total Earned-Total Spent _______% Total Spent
  18. 18. What?When?How?
  19. 19. ROI is noteverything
  20. 20. AudienceProspects LeadsCustomersEvangelists
  21. 21. ROI really important!
  22. 22. ROI not as important!
  23. 23. What?When?How?
  24. 24. Earned - Spent = ROI Spent
  25. 25. Worksheet 2 Method PPC Email Twitter Money Earned Money Spent Hourly Rate Time Spent Time as Money Total SpentEarned - Spent / Spent
  26. 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. 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. 28. ROI is not necessarily ahelpful number
  29. 29. Keep or kill decisions
  30. 30. Last Touch Problem
  31. 31. EmailWebinar PPC Ad Blog Post Sponsored Tweet Which caused the sale?
  32. 32. Old school single channel ROI is broken
  33. 33. o t heB ack t boa rdd raw ing
  34. 34. Income Margin ExpenseNet Profit Audience Volume Action
  35. 35. Income Product Margin Expense OperationsNet Profit Audience Marketing Volume Action Sales
  36. 36. Marketing’s primary output is qualified leads, yes?
  37. 37. EPL
  38. 38. Earned - SpentNumber of Leads
  39. 39. Worksheet 3 Money Earned: $_______ Money Spent: $_______ Hourly Rate: $_______ Time Spent: _______ Time Spent in Money: $_______ Total Spent: $_______ Total Earned-Total Spent _______ EPL Leads
  40. 40. So what?
  41. 41. Yes, but so what?
  42. 42. Last Touch Problem SolvedGoo gle
  43. 43. One Phrase:MCF
  44. 44. Multichannel Revenue
  45. 45. Channel Last Touch MCF Twitter $59,084 $125,315Facebook $14,036 $22,388
  46. 46. Channel Last Touch MCF Twitter $59,084 $125,315Facebook $14,036 $22,388
  47. 47. Earned - Spent = ROI Spent
  48. 48. 59,084 - 50,000 50,000 = 18.2%
  49. 49. 125,315 - 50,000 50,000 = 150.6%
  50. 50. The Big Picture ofInternet Marketing ROI
  51. 51. Walkthrough/Case Study
  52. 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. 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. 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. 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. 56. Channel Last Touch MCF Twitter $4,800 $7,200Facebook $42,000 $51,000
  57. 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. 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. 59. Channel Last Touch MCF Twitter -4% 44%Facebook 740% 920%
  60. 60. If you remove Twitter, this sale goes away.
  61. 61. Now You Have The Big Picture of Internet Marketing ROI
  62. 62. Review What? When? How?
  63. 63. Webinar Tomorrow!www.WhatCounts.com/smplus
  64. 64. cspenn.com/book
  65. 65. Christopher Penncspenn@gmail.comTwitter: @cspennLinkedIn: cspenn.com/lFacebook: cspenn.com/fGoogle+: cspenn.com/gWeb: christopherspenn.com
  66. 66. Questions?
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