Measuring Social Media ROI - Meteor Solutions Webinar

The ROI of social media
Meteor Webinar – 10/29/2009
10/29/2009
www.meteorsolutions.com
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Introduction
Ben Straley, Meteor Solutions CEO
Leading Technology Platform for Tracking and Activating Earned Media
Brands Using Meteor Include:
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Online Advertising Is Changing…
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CONFIDENTIAL
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Build Site and Create Content
Buy Ads
SEO and Paid Search
Tracking and Optimization
Tracking and Optimization

Today Marketing Success Is Earned
Paid Media (Ads)
Owned Media
Earned Media

The Bigger Picture
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Source: Meteor Solutions data from >15 sites spanning games, mobile, technology, and travel sites.

Does It “Move the Needle”?
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+
+
Valuable Visitors

1.5x – 4x Conversion Lift
Loyal Fans

(source: Meteor Solutions, Razorfish)
Growth Potential

Twitter is Third-Largest Referrer of Traffic to Etsy(source: emarketer.com)
Facebook is Top Referral Source to PerezHilton.com (source: hitwise.com)

Lots of Traffic

15-20% of Unique Visitors from “Earned” Links

(source: Meteor Solutions)

So How Do I Measure Its Value and ROI?
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Recommendation #1
Be Clear About Your Objectives and Set Expectations Accordingly
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@meteorsolutions
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Awareness = Sheep + LEDs
Brand/Product Page
Video
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See? It Works!
> 8MM Video Views (6MM in First 2 Weeks)
> 3K Tweets About Video on Twitter
Blog Mentions
Search Volume
Video Posted to You Tube (3/16/2009)

Or Does It?
Video Posted to YouTube

Recommendation #2
Track and Measure What You Can. There Are Free Tools That Make It Simple and Easy to Quantify Impact and ROI.
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@meteorsolutions
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Quantifying Impact Using Twitter and Bit.ly
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http://www.ted.com/talks/clay_shirky_how_cellphones_twitter_facebook_can_make_history.html

Twitter Activity
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Useful, relative measure of content “reach”

Bit.ly Click Trends
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@meteorsolutions Stats
Avg. Clicks per Tweet: 13
Number of Followers: 184
Click-Through Rate: 7.1%
Avg. Total Clicks per Tweet (bit.ly): 2,698
Avg. % of Total Clicks per Tweet (bit.ly): .6%
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Click-Through Rate = Effectiveness
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Click-through rate declines as the number of followers increases.

My Click-Through Rate = (My Clicks) / (My Followers)

Click-Share = Influence
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The higher your click-share, the more influence you have relative to others sharing the same content.

Twitter Click-Share = (My Clicks) / (Total Clicks)

Recommendation #3
Go Beyond Listening, Counting Mentions, and Tracking “First Clicks”. Capture the Full Scope of Your Program’s Impact.
10/29/2009
@meteorsolutions
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Case Study: The Multiplier Effect
10/29/2009
Proprietary and Confidential. Patents Pending.
GOAL:

Accelerate awareness and excitement around Game Launch

STRATEGY AND PLAN:

Display Advertising Directing Traffic to Viral Promotion

TACTICS:

Drive traffic with ads and word of mouth
Video series encourages repeat visits and WOM
Community “unlock” of video content fuels sharing.

Game Campaign Results

Direct Referrals to Site
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Proprietary and Confidential. Patents Pending.
The common view of sources of traffic…

“Earned” Referrals to Site

37%
That’s the % of Unique Visitors That Came from Earned Referrals Over The Life of This Campaign.
And…
We’re Seeing Some Sites Drive The Majority of Their Traffic This Way
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But Wait, There’s More!
Remember this statistic?
“Visits from Shared Links Can Convert Up to 4X More Than Paid Media” (Razorfish)
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A Few Basic Calcs
Traffic Value
Value of Visit: $2.50
Number of Direct Visits: 10,000
Value of Direct Visits: $2.50 * 10,000 = $25,000
New Customer Value
Value of Conversion: $50.00
Number of Direct Conversions: 1,000
Value of Direct Conversions: $50.00 * 1,000 = $50,000
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@meteorsolutions
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Paid + Earned Media ROI Model
Traffic Value
Value of Visit: $2.50
Number of Direct Visits: 10,000
Value of Direct Visits: $2.50 * 10,000 = $25,000
Number of Earned Visits: 2,000
Value of Earned Visits: $2.50 * 2,000 = $5,000
Customer Value
Value of Conversion: $50.00
Number of Direct Conversions: 1,000
Value of Direct Conversions: $50.00 * 1,000 = $50,000
Number of Earned Conv.: 200
Value of Earned Conv.: $50.00 * 200 = $10,000
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Earned Media ROI
Earned Media ROI (Visits)
2,000 * $2.50 / 10,000 * $2.50 = 20%
Earned Media ROI (Conversions)
200 * $50.00 / 1,000*$50.00 = 20%
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Tracking Earned Media ROI by Tactic/Channel
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Take-Aways
Earned Media is a Key Determinant of Campaign Success
Tracking and Measurement Can Be Simple and Inexpensive
Measurement Leads to Optimization of Campaign Performance
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November Webinar
“Campaign Activation - How to Attract an Audience and Drive Engagement”
Best Practices
Tips and Tricks
Optimization Methods
Case Studies
Wednesday, November 19th, 11AM PST
10/29/2009
@meteorsolutions
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How To Reach Me
Website: www.MeteorSolutions.com
Blog: blog.meteorsolutions.com
Twitter: @MeteorSolutions
Ben Straley, CEO
Ben@meteorsolutions.com
206.859.3563
(866) 677-0604
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