The Naked Truth About Social Media ROI

Measuring Social Media ROIMarch 2011 BzzAgent Proprietary & Confidential 2011

The Naked Truth AboutSocial Media ROI• Social media is what you make it• You can make it drive sales• Here’s how its done BzzAgent Proprietary & Confidential 2011 2

Today’s Presenters Malcolm Faulds SVP Marketing Steve McLaughlin VP Analytics Submit Your Questions for Discussion After the Presentation BzzAgent Proprietary & Confidential 2011 3

Skepticism About Measuring Social Media BzzAgent Proprietary & Confidential 2011 4

Different Types of Social Media Measurement ROI Pyramid BzzAgent Proprietary & Confidential 2011 5

Social Media is What You Make It • Benefits the entire organization… “Brands must be for different reasons built on the • Marketers need to show sales experiences they • Direct marketing mindset deliver and not merely the messages • Build to collect the right data they advertise.” • Measurement must be in dollars - Forrester Research BzzAgent Proprietary & Confidential 2011 6

BzzAgent Process Our process creates large-scale advocacy for consumer products 1 2 3 Target Engage Activate Influential consumers Participants spread WOM and Experience the product 250+ Data points share digital content. Tracked for: Understand the benefits Social Impact Metric - Performance - FTC compliance Brand Affinity/Experience BzzAgent Proprietary & Confidential 2011 7

Hierarchy of Social Measurement Practices Measurement Practices to Evaluate Sales & ROI Impact 1. 2. 3. 4. Surveys Couponing Test vs. Marketing Mix Control Modeling Options for Measuring Sales Impact Vary in Sophistication / Relevance and Should Be Selected According to the Marketer’s Business Situation BzzAgent Proprietary & Confidential 2011 8

Surveys Self-Reported Consumer Activity • Can be an aid to judgment when directly tracking sales is not an option • Directly ask consumers about their buying behavior • Can provide broad range of directional insights to help diagnose the “why” BzzAgent Proprietary & Confidential 2011 10

BzzAgent: Surveys BzzAgent deploys pre and post campaign surveys for every campaign Pre Campaign Post Campaign 70% 60% 45% 45% 37% 10% Brand Opinon Purchase Intent Likelihood To Recommend BzzAgent Proprietary & Confidential 2011 11

BzzAgent: Surveys BzzAgent has also partnered with ChatThreads* to deploy surveys to measure self reported buying of the additional generations of people reached *ChatThreads is a Word of Mouth (WoM) measurement and analytics company that helps leading brands quantify the bottom-line impact of consumer conversations generated from their marketing initiatives. BzzAgent Proprietary & Confidential 2011 12

Coupons and Promo Codes A Transactional Window into Campaign Impact • Simple & direct method to measure sales • Tracking to media, placement and creative • Relevant for offline and online sharing • Use rising significantly due to digital media • Tremendous Groupon success BzzAgent Proprietary & Confidential 2011 14

BzzAgent: Coupons and Promo Codes BzzAgent campaigns typically include trackable coupons / promo codes Redemption Averages Industry Free $-0ff BzzAgent 37% 8% Beverage 45% 10% Cosmetics 6% Food 34% 9% Home 52% 2% Personal Care 21% 3% Pet Care 24% 1% QSR 40% 0.1% BzzAgent Proprietary & Confidential 2011 15

Test vs. Control Identifying Campaign Impact through Audience Comparison • Comparing sales between two audience groups • Test group exposed to stimulus, control group not or less exposed • Examples of types: – Geographic matched markets – Online panels – exposed vs. control groups BzzAgent Proprietary & Confidential 2011 17

BzzAgent: Test vs. Control BzzAgent campaigns can be measured through 3rd party Matched Market Tests BzzAgent Proprietary & Confidential 2011 18

BzzAgent: Test vs. Control BzzAgent campaigns can be measured through 3rd party Matched Market Tests BzzAgent Proprietary & Confidential 2011 19

Marketing Mix Modeling (MMM) • Statistical analysis, estimates and predicts impact of media spend on sales & ROI • Cross channel view of impact 1/1/2010 1/15/2010 1/29/2010 2/12/2010 2/26/2010 3/11/2010 3/25/2010 4/8/2010 4/22/2010 5/6/2010 5/20/2010 6/3/2010 6/17/2010 7/1/2020 • Widespread use among CPGs, and adopted by other industries • Analysis typically led by 3rd party analytic companies (IRI, 1/1/2010 1/15/2010 1/29/2010 2/12/2010 2/26/2010 3/11/2010 3/25/2010 4/8/2010 4/22/2010 5/6/2010 5/20/2010 6/3/2010 6/17/2010 7/1/2020 Nielsen, MMA, etc)Draftfield Analytics BzzAgent Proprietary & Confidential 2011 21

Social Media / WOM in MMM (Challenges) Social media / word of mouth is not easily measured in MMM due to: • Relative small scale of spend • Ability to measure and create and exposure (vs. other media) the right data input for models • Weekly impressions by market • New media formats can be • Availability of granular data more complex / variable • Variability in data (time, volume, market) • Effectiveness of word of mouth at driving immediate sales BzzAgent Proprietary & Confidential 2011 22

BzzAgent: Marketing Mix Modeling Process BzzAgent campaigns can be measured through 3rd party Marketing Mix Models Weekly Impression Data Analytic Partners & Sales Data Marketing Effectiveness (model input by channel) TV PRINT Incremental Sales DIGITAL + = ROI WORD OF MOUTH – BZZAGENT BzzAgent Proprietary & Confidential 2011 23

Building Brand Equity Over the Long Term Addresses Empower the immediate need advocates to delivers longer term value through brand Demonstrates equity and loyalty short-term business results Exploring Benefits innovative ways to measure are far reaching these longer term benefits BzzAgent Proprietary & Confidential 2011 24

BzzAgent is a social marketing company that accelerates word of mouth to drive sales • Pioneered field of advocacy marketing • Powered by 800,000 volunteer consumers • Core technology maximizes influence & scale • Specializing in Fortune 500 brands • FTC Compliance Team • Strong analytic capability BzzAgent Proprietary & Confidential 2011 25

Select 2009-2010 Clients CPG FOOD/BEV OTHER BzzAgent Proprietary & Confidential 2011 26

Submit Your Questions BzzAgent Proprietary & Confidential 2011 27

Thank You Malcolm Faulds mfaulds@bzzagent.com Additional Resources: Steve McLaughlin about.bzzagent.com smclaughlin@bzzagent.com @bzzagent BzzAgent Proprietary & Confidential 2011 28

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The Naked Truth About Social Media ROI

by Word of Mouth Marketing Association on Mar 09, 2011

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