Your SlideShare is downloading. ×
The REAL Costs of Social Media
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

The REAL Costs of Social Media

845
views

Published on

Published in: Technology, Business

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
845
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
7
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • For effective social media marketing, you need to be sure that your networks are easy for your consumer and target market to find. Website integration is a must. No matter who maintains your website, keeping this up-to-date with the most recent open graph implementations, will cost you or your organization a minimum of time.
  • YES! Because it works. How do I know if works? According to eMarketer, the longer a brand spends doing SMM, the more money they invest. Breaking down the different aspects of SMM, the major players are increasing budgeting from anywhere between 18% and 95%. This tells me two things:They see the value, and the ROI, and believe it warrants more of their overall budget They are becoming more and more aware that social media DOES come at a cost, and that they just HAVE to adapt.Using social media gives you, as a brand or organization, the unique opportunity to communicate with your fans and potential consumers at a communal level. By virtue of the medium, social media users who are exposed to your brand, will be more receptive and accepting of your messages and impressions on them. What do I mean by communal level?There are a few different take on the relational theories model, first developed by Alan Fiske, but the basic gist is that there are 4 Elementary Forms of Human Relations. To avoid getting into the nitty gritty of the whole model, there are two relationships which apply directly to marketing.1.) Communal Sharing: Where people treat each other as equals. Where they can share comfortably. Examples of these relationships are your friends, family, many of your coworkers, co-members of an organization or the like. I would expect to hear about someone’s personal life, friendships, hopes, dreams, and day-to-day nonesense. In this type of relationship, all of these exchanges are expected and exceptable. Social media lives in this realm. It is a Communal environment because the relationships I have made within it are of the communal sharing nature.2.) Market Pricing (some people refer to this as the Exchange relationship): Here, exchange is expected. In an Exchange relationship, I would expect to be advertised to; I would expect negotiations. I will give you something and you will give me something based on the amount I have given you. This is the type of relationship that brands have with their consumers or potential buyers offline. I expect to be advertised to when I watch TV or drive down the road, listen to the radio or reading the newspaper. I’m OK with that because in those environments, I expect that type of exchange. It’s appropriate, and normal.In social media, these two worlds collide. Brands must tread carefully, but the results can be astounding. Let’s take a closer look.
  • Here are some examples of brands actually communicating with their audience. They are behaving in real time with the people who will potentially buy their products, support their organizations, advocate their services. And here’s where the magic happens. On Facebook, everytime a fan communicates with you in any way. Liking your page, commenting or liking a post, tagging themselves in a photo, whatever, it shows up on their wall. This means it can show up in all of their friends’ newsfeed or ticker. Let’s break this down:The average Facebook user has 130 friends.The above Facebook post has 621 likes, 18 shares, and 56 comments. Of the 56 comments, 9 had likes. This is a total of 705 actions taken on one Facebook post. It’s a silly drawing that probably took someone 15 minutes to draw. Each time someone took one of these actions, it showed up on their 130 friends’ pages. This amounts to a total of 91,650 brand impressions. But not just any brand impression. This brand impression has value. Your friend, positively communicating with a brand, knowing you will be exposed to the information, is the closest thing to a word of mouth endorsement that you can get to without someone actually pulling you aside and endorsing a brand. This carries communal weight. While it might not result in a direct sale, it create favorable brand impressions. No one is saying quit traditional advertising, but it would be foolish not to fold this into your marketing mix. Yes, it costs money, but marketing costs money, and social media is the most effective way to reach out to your audience, on their terms, when they are receptive to the message, about what and who you really are. It’s not about crafting the perfect 30 second spot, or the most eye-catching billboard, it’s about listening to your consumers, hearing what they want and being able to give it to them. Behaving communally.Beyond that, this a forum for you to communicate in real time with your fans regarding things that are happening in your organization or brand. If a crisis comes up, something unexpected happens, you are getting unexpected media coverage. You can address it. It costs money but it’s so much cheaper than the alternatives. Talk about he alternatives. Get some stats about TV, radio or print advertising.
  • Transcript

    • 1. The Real Cost of Social Media
      And why it’s totally worth it
      Katrina (Scooter) Kokoska
      Schipul
      @kkokoska
      kkokoska@schipul.com#schipulcon
    • 2. What?! SMM isn’t free?
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/75511860@N00/4353835455/
    • 3. What We’ll Cover:
      1.) Rethinking social media costs
      2.) Budget planning breakdown
      3.) Measuring ROI
      @kkokoska // #schipulcon
    • 4. 1.) Rethinking the cost
      43% of US companies are successfully finding new business with SMM.(Marketing Profs)
      A move from tinkering to full deployment
      In 2011 SMM will account for 10.1% of marketing budgets
      Up from 7.1%
      @kkokoska // #schipulcon
    • 5. Custom Tabs
      The Fanpage
      @kkokoska// #schipulcon
    • 6. Hub of your social media presence
      Home of your promos
      Gateway to your website
      SEO
      @kkokoska // #schipulcon
    • 7. The Ticker
      The Newsfeed
      @kkokoska// #schipulcon
    • 8. Facebook accounts for 90% of time spent social networking
      The Newsfeed accounts for 4% of ALL time spent online
      Users are 40-150 times more likely to consume your content in their newsfeed than on your page
      The average Facebook user has 130 friends (comScore)
      @kkokoska // #schipulcon
    • 9. Sponsored Content
      @kkokoska// #schipulcon
    • 10. Newsfeed is more and more competitive
      Built-in endorsements
      Flexible and easy-to-use
      @kkokoska // #schipulcon
    • 11. The Cost of Facebook:
      Strategy
      Design
      Content creation
      Development/Hosting
      Third-party apps
      Research
      Legal counsel
      TIME
      @kkokoska // #schipulcon
    • 12. Twitter
      @kkokoska// #schipulcon
    • 13. Getting Started
      @kkokoska// #schipulcon
    • 14. A Week of Twitter
      Content Research – 2 hrs.
      3-5 tweets per day – 2 hrs.
      Monitoring – 2 hrs.
      Third-party apps – Btwn. $0 and $500/month
      Evaluation – 1 hr
      @kkokoska // #schipulcon
    • 15. Social Media Toolbox
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/95248808@N00/178177044/
    • 16. Types of Tools
      Twitter – Tweetchat, Tweetdeck, Hootsuite
      Facebook – North Social, Short Stack
      Listening – Radian 6, Traackr
      Tracking – Google Analytics, bit.ly
      Content Creation
      @kkokoska // #schipulcon
    • 17. Folding it in
      @kkokoska// #schipulcon
    • 18. Is this really worth all the trouble?
      SMM is projected to be $3.08 billion of online marketing spends – 10% (eMarketer)
      Organizations are increasing aspects of their SMM budget between 18% and 95% (eMarketer)
      @kkokoska // #schipulcon
    • 19. Communicating at Your Audience
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/38115734@N00/470341923/
    • 20.
    • 21. Communicating with Your Audience
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/75511860@N00/4353835455/
    • 22. @kkokoska// #schipulcon
    • 23. Potential Impressions
      621 likes
      18 shares
      56 comments
      9 liked comments
      91,650 potential impressions
      @kkokoska // #schipulcon
    • 24. Facebook | Radio
      • Production: $50
      • 25. Monitoring time: $100
      • 26. Time spent: 1.5 hours
      • 27. Total: $150
      • 28. Potential Impressions: 91,650
      • 29. CPM = $.002
      • 30. Production: $30,000-$50,000
      • 31. Production Time: 2-4 weeks
      • 32. 30-second radio spot: $335
      • 33. Total: A LOT
      • 34. Potential Impressions: 138,600
      • 35. CPM = $21.89-$36.31
      @kkokoska // #schipulcon
    • 36. So Far…
      Where all that money goes
      Why it’s totally worth it
      How it stacks up against traditional media
      @kkokoska // #schipulcon
    • 40. 2.) Budget Planning Breakdown
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/37108241@N00/61056391/
    • 41. We’ll Cover
      Ways to look at it
      In plain numbers
      Things to consider
      @kkokoska // #schipulcon
    • 42. Breakdown: By Category
      @kkokoska // #schipulcon
    • 43. Breakdown: By Platform
      Facebook
      Twitter
      Blogging
      LinkedIn
      Google +
      Yelp
      @kkokoska // #schipulcon
    • 44. In Plain Numbers
      Calculate 10% and 12% of estimated gross sales
      Multiply each by the markup (not margin) of your average transaction
      Subtract rent
      Take 10%
      @kkokoska // #schipulcon
    • 45. In Plain Numbers (cont.)
      Gross Sales: $5,000,000
      Markup: 100%
      Rent: $250,000
      Marketing Budget: $250,000 (10%) - $350,000(12%)
      SMM Budget: $25,000 - $35,000
      @kkokoska // #schipulcon
    • 46. Things to consider:
      What are your objectives?
      What is your overall marketing budget?
      How are your current efforts working?
      What are your resources?
      Social media changes – A LOT!
      @kkokoska // #schipulcon
    • 47. 3.) Ways to Measure ROI
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/33275659@N02/3863299641/
    • 48. A few truths
      It’s not a thing
      This will continue to change
      Fans outspend non-fans by up 5 times
      @kkokoska // #schipulcon
    • 49. Media Equivalent Value
      Equivalent Targeted CPM
      Social Media Impressions
      MEV
      =
      X
      @kkokoska // #schipulcon
    • 50. Data Value (Acquisition cost)
      Data Value
      Proportional
      Channel
      Value
      Acquired Customer Numbers
      =
      X
      @kkokoska // #schipulcon
    • 51. Avg. Fan Value
      Unlikes – per – Month / Total Likes = Churn %
      1 / Churn = Fan Lifetime Length (FLL)
      FLL x Posts-per-day = Opps-per-Fan (OPF)
      OPF x CTR = Clicks-per-fan (CPF)
      CPF x Conversion % = Sales-per-fan (SPF)
      SPF x Avg. $ per Sale = Avg. Fan Value
      @kkokoska // #schipulcon
      Dan Zarrella
    • 52. Be Flexible
      @kkokoska// #schipulcon
      http://www.flickr.com/photos/33275659@N02/3863299641/
    • 53. Takeaways
      Social Media can be a major investment with a major payoff.
      Carefully evaluate your brand, resources and budget before getting started.
      Always Evaluate and Adapt.
      @kkokoska // #schipulcon
      Dan Zarrella
    • 54. Thanks! Any questions?
      Katrina (Scooter) Kokoska
      Schipul – The Web Marketing Company
      @kkokoska
      kkokoska@schipul.com
      @twitter // #schipulcon // http://bit.ly/schipslides