E Consultancy Social Media Monetisation Case Study

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Monetising Social Media A case study in measuring the value of social media marketing online

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  • E Consultancy Social Media Monetisation Case Study

    1. Monetising Social Media A case study in measuring the value of social media marketing online Ashley Friedlein CEO E-consultancy.com
    2. “ The future of the social web ” “ Harnessing Social Media for B2B and B2C marketing campaigns” “ How UK Government approaches the web and social media ” “ Social and Professional Networking how marketers and users navigate in the Web 2.0 world” “ The impact and ROI of social retail ”
    3. What is ‘Social Media’? <ul><li>Blogs </li></ul><ul><li>Discussion Boards & Communities </li></ul><ul><li>Product review sites </li></ul><ul><li>Media-sharing </li></ul><ul><li>Social Networking </li></ul><ul><li>Bookmarking / tagging </li></ul><ul><li>‘ Social commerce’, ‘social news’ etc…. </li></ul>
    4. “ Internet-based tools and venues where anyone can communicate publicly”
    5. Universal McCann Social Media Study
    6. Great for PR BUT…
    7. Q: Has Second Life worked for you? A: “It’s a lot more hype than reality.” Chris Shimojima, VP, Nike.om Q: How did the YouTube clip help generate pledges? A: “…i t's not a top referring site … in terms of pledges and uptake of products, we're not seeing that come through. ” Rob Merrington, Head of Brand Advertising, EDF Energy
    8. Jerry Maguire, 1996
    9. How do we make money? <ul><li>Advertising </li></ul><ul><ul><li>Average £20 per thousand page views / 2 ads per page / 3 pages views per visit </li></ul></ul><ul><ul><li>Average advertising value per visit = 12p </li></ul></ul><ul><li>Commerce (Subscriptions, Memberships, Events, Training etc.) </li></ul><ul><ul><li>Conversion rate = 0.25% </li></ul></ul><ul><ul><li>Average order value = £200 </li></ul></ul><ul><ul><li>Average commerce value per visit = 50p </li></ul></ul>
    10. Average Total Value / Visit = 62p
    11. (but some visits are more valuable than others)
    12. Direct Traffic Indirect Traffic (aka Google)
    13. Top Referring Domains
    14. 7,000 visits a day from Google = £4,340 a day…
    15. How many more direct visits can we get? Can we get more Google love? from ‘social media marketing’
    16. Question 1 Should we engage with sites that deliver VOLUME (REACH) or INFLUENCE?
    17. Answer 1 Both… VOLUME = VOLUME INFLUENCE = SEO = VOLUME
    18. Question 2 So which sites would deliver volume (and the right prospective customers) And which (SEO) influence?
    19. Answer 2 VOLUME / REACH INFLUENCE
    20. Lots of sites…
    21. Prioritised + How to approach
    22. Go engage!
    23. Links via Online PR
    24. BBC Internet Blog
    25. Multilingual Search Community
    26. BazaarVoice Blog
    27. Internetworldstats.com
    28. Facebook
    29. Links via Answering Questions
    30. Yahoo! Answers
    31. LinkedIn Answers
    32. WikiAnswers
    33. Wikipedia
    34. Links via Profiles / ‘Channels’
    35. YouTube Channel
    36. Twitter Channel
    37. Slideshare Channel
    38. Dailymotion
    39. Veoh
    40. Links via Bookmarking / Tagging
    41. Digg
    42. Del.icio.us
    43. Was it worth it?
    44. Scores on the doors…
    45. Cost <ul><li>Search Agency </li></ul><ul><ul><li>£3,000 </li></ul></ul><ul><li>Data / Tools </li></ul><ul><ul><li>Free (-ish) </li></ul></ul><ul><li>Internal Time </li></ul><ul><ul><li>5 days worth of time </li></ul></ul>Call it £10,000
    46. Referred visits in last 6 weeks <ul><li>Stumbleupon </li></ul>1,369 LinkedIn 669 Wikepedia 547 Del.icio.us 276 Twitter 106
    47. Views = 1,746 No. referred visits = 5
    48. No. referred visits = 77
    49. Total no. ‘social media’ referred visits = 18,000
    50. Value = 18,000 X 62p = £11.16k…
    51. SEO impact?
    52. Google Natural Search Referrals
    53. Total no. incremental visits for SEO improvement = 72,000
    54. Value = 72,000 X 62p = £44.64k…
    55. ROI = (£11.16K + £44.64k) / £10k = 558%
    56. BUT… (there’s always a but)
    57. How many of these links came from this campaign ?
    58. Do we really know the Google improvements came about from this campaign ?
    59. (but some visits are more valuable than others) less
    60. We assumed Average commerce value per visit = 50p
    61. So how much did we actually sell?
    62. £112k sold online in the period
    63. ‘ Social media’ referred sales… £2.4k (2.1% of sales)
    64. And EVERY SINGLE ONE of those... ALSO searched Google on us before buying
    65. Other Benefits <ul><li>Built PR contacts db </li></ul><ul><li>Found high-performing new affiliates </li></ul><ul><li>Found new partners (e.g. for contras, co-registration etc.) </li></ul>
    66. Other Benefits <ul><li>Built influence / credibility </li></ul>
    67. Conclusion <ul><li>Worth it but </li></ul><ul><ul><li>Quite a bit of work </li></ul></ul><ul><ul><li>Value in tangential areas </li></ul></ul><ul><li>Good-ish for traffic; less good for sales </li></ul><ul><li>Indirect traffic via search bigger than direct traffic (and higher value) </li></ul><ul><li>But mostly… </li></ul>
    68. Questions? E-consultancy Resources: <ul><li>Online Measurement and Strategy Report 2008 (with Lynchpin) </li></ul><ul><li>http://www.e-consultancy.com/publications/online-measurement-and-strategy-report-2008/ </li></ul><ul><li>Web Analytics Buyer’s Guide </li></ul><ul><li>http://www.e-consultancy.com/publications/web-analytics-buyers-guide-2007/ </li></ul><ul><li>Web Analytics Request for Proposal Template </li></ul><ul><li>http://www.e-consultancy.com/publications/web-analytics-rfp-request-for-proposal/ </li></ul><ul><li>Web Analytics Business Case </li></ul><ul><li>http://www.e-consultancy.com/publications/web-analytics-business-case </li></ul><ul><li>Measurement, Analytics and Optimisation Briefing </li></ul><ul><li>http://www.e-consultancy.com/publications/analytics-measurement-optimisation-briefing-march-2008/ </li></ul>

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