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What is it and how do you measure it?<br />Social Media ROI<br />
What you are asking for<br />As a man running a social media budget of £0 right now I'm keen to understand more about ROI ...
Some of what we will cover today<br />
DISPELLING : MYTHS<br />#1 SOCIAL MEDIA IS FREE<br />#2 SOCIAL MEDIA IS EASY<br />#3 SOCIAL MEDIA IS UNIVERSALLY VALUED BY...
NOT : FREE<br />
NOT : EASY<br />
NOT : VALUED<br />
DOES : MATTER<br />
NOT : PPC!<br />
JUSTIFY : YOURSELF<br />Source: http://www.pastemagazine.com/blogs/playlist/2009/04/-pastes-tax-refund-playlist-cash-money...
Great results, but not all of these demonstrate ROI...<br />
ROI: BASIC RULES<br />[<br />-<br />/<br />ROI =<br />GAIN FROM INVESTMENT<br />COST OF INVESTMENT<br />COST OF INVESTMENT...
WEIRD : SCIENCE<br />IF THE EQUATION SHOWS AN INVESTMENT IN POUNDS STERLING AND A RETURN IN RETWEETS, LIKES OR COMMENTS YO...
METRICS : THE PATH TO GAIN<br />[<br />THIS IS WHERE CAMPAIGNS ARE OFTEN REPORTED<br />COST <br />OF SALE<br />TIME <br />...
JUDGING :  THE IMPACT OF THE VALUE CHAIN<br />Sources: http://www.ics-online.co.uk/ics_cleaning-in-london-essex-kent-compa...
ESTABLISH : A BASELINE<br />Sources: http://bmbolstad.com/misc/normalize/normalize.html<br />
MAP : ACTIVITY TIMELINES<br />Sources: http://www.air-worldwide.com/PublicationsItem.aspx?id=17904<br />
TRACK : OUTPUTS<br />TRAFFIC (VIEWS, HITS, LIKES, MENTIONS)<br />RESPONSE (CLICKS, APPLICATIONS, RETWEETS)<br />BEHAVIOUR ...
AGGREGATE : DATA<br />Sources: http://www.googletutor.com/google-public-data-explorer-lets-you-visualize-public-datasets/<...
CORRELATE : DATA<br />
USE : TOOLS<br />
DON’T: STOP<br />Sources: http://images.businessweek.com/ss/08/02/0225_doodles/source/5.htm<br />
PROVE : VALUE<br /><ul><li>Typically Staples spends £10,000 on store recruitment, now spending <£1,000
A recent store opening in Tonbrigde generated c600 applicants for 21 Job Roles  (135 were taken to interview)
Candidate quality is exceptionally high (as is the quality of those that are hired)</li></li></ul><li>Client: <br /><ul><l...
Raise HP’s brand  presence within targeted social spaces</li></ul>What we achieved: <br /><ul><li> HP now ranks as the fir...
 Driven over 1,000,000 leads to date</li></ul>PROVE: ROI<br />
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How to Measure Social Media ROI

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This is part of the monthly events held by Social Media London.
http://www.socialmedialondon.co.uk/

Our guest speaker in June was Andrew Hyatt, Head of Digital at Bernard Hodes Group. Andy has spent over a decade in interactive, working with some of the largest and most successful brands in the world to deliver effective, engaging and award-winning campaigns. He talked about how to measure ROI in Social Media.

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  • As the pressure on companies grows, there is an ever-increasing need to explain the value of any activity in business termsClassical marketing activity needs time and (often costly) measurement programs, before a return can be shownSo we hard terms like Brand Exposure, Brand Awareness, Brand Favourability and Purchase IntentHowever, the route to sales can be much more difficult, which is why effectiveness awards are (a) so prized and (b) so difficult to getWith an increase in procurement-led decision making, we have seen the rise of short-term business metrics and in particular, ROI
  • Plenty of examples of where it worksDell making $millions on TwitterE&amp;YStaplesITV, Fitness FirstRequires us to think about return and value in different ways, as Soc Med can have a long tail effect, as well as a ST effect
  • Transcript of "How to Measure Social Media ROI"

    1. 1. What is it and how do you measure it?<br />Social Media ROI<br />
    2. 2. What you are asking for<br />As a man running a social media budget of £0 right now I'm keen to understand more about ROI when I do get a budget!<br />I love social media almost as much as I hate it !<br />I always question the ROI of social media for our specific business area<br />Measuring social marketing is a huge challenge for us, but we want to do more of it<br />I can contribute<br />one of the most elusive topics in marketing and communications at the moment...<br />I would love to hear about some of the experiences<br />Looking forward to meeting interesting people<br />I'm keen to learn everything there is to know about social media to promote my own business as well as my clients!<br />
    3. 3. Some of what we will cover today<br />
    4. 4. DISPELLING : MYTHS<br />#1 SOCIAL MEDIA IS FREE<br />#2 SOCIAL MEDIA IS EASY<br />#3 SOCIAL MEDIA IS UNIVERSALLY VALUED BY CEOS<br />#4 SOCIAL MEDIA DOESN’T MATTER<br />#5 RUNNING PPC ON FACEBOOK IS SOCIAL MEDIA<br />
    5. 5. NOT : FREE<br />
    6. 6. NOT : EASY<br />
    7. 7. NOT : VALUED<br />
    8. 8. DOES : MATTER<br />
    9. 9. NOT : PPC!<br />
    10. 10. JUSTIFY : YOURSELF<br />Source: http://www.pastemagazine.com/blogs/playlist/2009/04/-pastes-tax-refund-playlist-cash-money-mix.html<br />
    11. 11. Great results, but not all of these demonstrate ROI...<br />
    12. 12. ROI: BASIC RULES<br />[<br />-<br />/<br />ROI =<br />GAIN FROM INVESTMENT<br />COST OF INVESTMENT<br />COST OF INVESTMENT<br />[<br />1. ROI is a business metric, not a media metric<br />4. Every resource you assign has a value<br />2. ROI is 100% media agnostic<br />5. ROI can only be calculated after the investment has a return<br />3. The values used in the equation are nonvariable<br />6. ROI stands for Return on Investment. Nothing else<br />From Social Media is Dead, Long Live Social Media, xplain.co<br />
    13. 13. WEIRD : SCIENCE<br />IF THE EQUATION SHOWS AN INVESTMENT IN POUNDS STERLING AND A RETURN IN RETWEETS, LIKES OR COMMENTS YOU’RE IN FOR A TOUGH TIME…<br />
    14. 14. METRICS : THE PATH TO GAIN<br />[<br />THIS IS WHERE CAMPAIGNS ARE OFTEN REPORTED<br />COST <br />OF SALE<br />TIME <br />TO SALE<br />/<br />BRAND EXPOSURE<br />TRAFFIC<br />INCREASE IN SALES<br />QUALITY OF RELATIONSHIP (GAIN IN LT SALES)<br />[<br />THIS IS WHERE THE TRUE VALUE LIES…<br />
    15. 15. JUDGING : THE IMPACT OF THE VALUE CHAIN<br />Sources: http://www.ics-online.co.uk/ics_cleaning-in-london-essex-kent-company-policies.htm ; http://www.tages.biz/index.php?module=news&page=readmore&news_id=388&sid=3d891e809936535d7d10ca39ec77dc40 ; http://edition.cnn.com/2011/WORLD/asiapcf/04/01/japan.auto.sales/index.html ; http://www.ehow.co.uk/list_6681520_michigan-sales-tax-rules.html<br />
    16. 16. ESTABLISH : A BASELINE<br />Sources: http://bmbolstad.com/misc/normalize/normalize.html<br />
    17. 17. MAP : ACTIVITY TIMELINES<br />Sources: http://www.air-worldwide.com/PublicationsItem.aspx?id=17904<br />
    18. 18. TRACK : OUTPUTS<br />TRAFFIC (VIEWS, HITS, LIKES, MENTIONS)<br />RESPONSE (CLICKS, APPLICATIONS, RETWEETS)<br />BEHAVIOUR (TIME SPENT ON SITE, ACTION, INFLUENCE)<br />SENTIMENT (POSITIVE, NEUTRAL, NEGATIVE)<br />
    19. 19. AGGREGATE : DATA<br />Sources: http://www.googletutor.com/google-public-data-explorer-lets-you-visualize-public-datasets/<br />
    20. 20. CORRELATE : DATA<br />
    21. 21. USE : TOOLS<br />
    22. 22. DON’T: STOP<br />Sources: http://images.businessweek.com/ss/08/02/0225_doodles/source/5.htm<br />
    23. 23. PROVE : VALUE<br /><ul><li>Typically Staples spends £10,000 on store recruitment, now spending <£1,000
    24. 24. A recent store opening in Tonbrigde generated c600 applicants for 21 Job Roles (135 were taken to interview)
    25. 25. Candidate quality is exceptionally high (as is the quality of those that are hired)</li></li></ul><li>Client: <br /><ul><li>HP EMEA</li></ul>Challenge: <br /><ul><li>Take market share from key competitors
    26. 26. Raise HP’s brand presence within targeted social spaces</li></ul>What we achieved: <br /><ul><li> HP now ranks as the first computer manufacturer on Google
    27. 27. Driven over 1,000,000 leads to date</li></ul>PROVE: ROI<br />
    28. 28. MOVING: FORWARD(10 STEPS)<br />Define an objective<br />Decide where to monitor<br />Decide what to monitor<br />Prioritise – intelligent and actionable!<br />Develop a plan – comments won’t all be good!<br />Involve others<br />Listen first<br />Have rules of engagement for Inbound vs Outbound conversations<br />Build relationships<br />Select tools to match your strategy & refine!<br />
    29. 29. PARTING : THOUGHTS<br />“If everything seems in control, perhaps you’re not moving fast enough?” <br /> Mario Andretti<br />“Injecting Twitter into that conversation fundamentally changed the rules of engagement. It brought a wider audience into what would have been a private exchange. And it gave the event an afterlife. The sum total …added up to something truly substantive, like a suspension bridge made of pebbles.” (http://www.time.com/time/business/article/0,8599,1902604-1,00.html) <br />
    30. 30. ANY : QUESTIONS?<br />IAB handbook on Social Media Measurement <br />Attend a Social Media Measurement Camp<br />Alternatively, try:<br />http://www.linkedin.com/in/andyhyatt<br />@theholodeck<br />http://hodesdigital.co.uk/hyatt <br />andy@btmh-ltd.com<br />andy@agency2.co.uk<br />andy@hodes.co.uk<br />
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