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MEASURING THEROI OF SOCIAL MEDIA
Agenda•  Why should we care about ROI?•  Social Media ROI today•  Better ways to measure ROI?•  Class Exercise
Why is ROI important?   •  If you can’t measure it, you can’t manage it.   •  “82% of marketers say their executive manage...
Social Media ROI Today:What’s so hard about it?   “ROI intrinsically implies that you want to   take out more than you put...
Social Media ROI Today:The Stats•  Measuring ROI was the leading challenge for Social Media Marketers in 2010 & 2011.
Social Media ROI Today:Quotable Notables
Social Media ROI Today:Current Metrics                  Source: The ROI of Social Media, MDG Advertising
Social Media ROI Today:The big “But”   Bu!.                               . .        •  Short term vs. long term        • ...
Turn your thinking upside down  Traditional                ROI= (new sales) or (cost savings) ROI= (new fans) x (leap of f...
Determine your Objectives•  Know what you   want out of a   campaign before   you try to   measure it.
Key Marketing Objectives
From Fuzzy to Quantifiable Metrics•  Measure early•  Measure often•  Measure everything                            Source:...
Measurement Tools Available
Estimating Metric Values•  Primary research (consumer panels, surveys)•  Traditional media benchmarks•  Historical perform...
Case: Danone Facebook Campaign•  What was the marketing   objective?•  What metrics would you   use to measure it?•  How w...
Appendices
Relevant Metrics – Hoffman & Fodor
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ROI of Social Media

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Transcript of "ROI of Social Media"

  1. 1. MEASURING THEROI OF SOCIAL MEDIA
  2. 2. Agenda•  Why should we care about ROI?•  Social Media ROI today•  Better ways to measure ROI?•  Class Exercise
  3. 3. Why is ROI important? •  If you can’t measure it, you can’t manage it. •  “82% of marketers say their executive management expects every campaign to be measured.” (source: ifbyphone 2011 State of Marketing Measurement Report) •  Marketing budgets are correlated to ROI.
  4. 4. Social Media ROI Today:What’s so hard about it? “ROI intrinsically implies that you want to take out more than you put in. Social Media is about freely sharing with no strings attached. It’s a paradoxical relationship...”! " " " "- Rob Kozinets, Jan 11, 2012! ROI = company gets more than company gives ≠ sharing freely = Social Media
  5. 5. Social Media ROI Today:The Stats•  Measuring ROI was the leading challenge for Social Media Marketers in 2010 & 2011.
  6. 6. Social Media ROI Today:Quotable Notables
  7. 7. Social Media ROI Today:Current Metrics Source: The ROI of Social Media, MDG Advertising
  8. 8. Social Media ROI Today:The big “But” Bu!. . . •  Short term vs. long term •  Quantitative benefits vs. qualitative benefits
  9. 9. Turn your thinking upside down Traditional ROI= (new sales) or (cost savings) ROI= (new fans) x (leap of faith) investment investment Problem: short term & incomplete. Problem: blatant ignoranceFodor, 2010 Hoffman & Company Returns = Customer Investments (behaviors + $) Customer Behaviors  Key Marketing Objectives Key Marketing Objectives  1) Awareness, 2) Engagement, 3) WOM
  10. 10. Determine your Objectives•  Know what you want out of a campaign before you try to measure it.
  11. 11. Key Marketing Objectives
  12. 12. From Fuzzy to Quantifiable Metrics•  Measure early•  Measure often•  Measure everything Source: Hoffman & Fodor, 2010
  13. 13. Measurement Tools Available
  14. 14. Estimating Metric Values•  Primary research (consumer panels, surveys)•  Traditional media benchmarks•  Historical performance
  15. 15. Case: Danone Facebook Campaign•  What was the marketing objective?•  What metrics would you use to measure it?•  How would you try to measure ROI? http://www.youtube.com/watch?v=R7F4zQWWaVs
  16. 16. Appendices
  17. 17. Relevant Metrics – Hoffman & Fodor
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