RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
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RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm

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How should you plan and track your social media efforts? How do you know if you're doing well or not? I propose 12 metrics over 74 slides. Delivered in, yes, 12 minutes. ...

How should you plan and track your social media efforts? How do you know if you're doing well or not? I propose 12 metrics over 74 slides. Delivered in, yes, 12 minutes.

Originally presented at #MSMW2013 Kuala Lumpur, Malaysia Feb 27, 2013

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https://twitter.com 1,034
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http://krisnair.com 568
http://www.hellosolution.asia 530
http://mariussescu.ro 399
http://www.linkedin.com 311
https://www.linkedin.com 281
http://agarwalankit.com 184
http://localhost 26
http://feeds.feedburner.com 19
http://kred.com 17
http://tejashmehta.blogspot.in 12
http://iv4productionsr 9
http://sachinuppal.wordpress.com 6
http://abtasty.com 6
http://www.google.com 3
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  • 1. Measuring RoI & effectiveness in social media marketing@maheshmurthy
  • 2. Return On Investment can be said to come from Relevance, Originality, Impact But that’s not precisely measurable. Need better metrics.@maheshmurthy
  • 3. 12 minutes. 12 metrics to live by.@maheshmurthy
  • 4. 1 HOW LOW IS YOUR AD-SPEND-TO-REVENUE RATIO? TO BECOME BIG, SPEND LESS.@maheshmurthy
  • 5. Interbrand’s ‘Top 100 brands 2012’@maheshmurthy
  • 6. @maheshmurthy
  • 7. @maheshmurthy
  • 8. Interbrand’s ‚Top 100 brands 2012‛ 1/3rd seem to have been built without too much spend on media buying.@maheshmurthy
  • 9. This list doesn’t even include Red Bull, Twitter, Ferrari, Facebook. The zero-ad- budget champions. It’s back to the age of extreme word-of mouth@maheshmurthy
  • 10. Increasingly, in more sectors, the winner has the best word of mouth. And correspondingly, the lowest ad spend.@maheshmurthy
  • 11. 2 HOW FAST CAN YOU DIE? WINNER BRANDS HAVE TO THINK ANTI-FRAGILE.@maheshmurthy
  • 12. $300m brand, built over 15 years.@maheshmurthy
  • 13. $300m brand, built over 15 years. Destroyed in 15 hours.@maheshmurthy
  • 14. $50b brand, built over 150 years. Gone in a weekend.@maheshmurthy
  • 15. Let’s say a can of Axe deodorant was found with a cockroach in it. And a can of Gillette deodorant too was found with a cockroach in it. I believe Gillette would be harder affected because it’s the one making higher claims of greatness. ‚The holier-than-thou, the harder-thy-fall.‛@maheshmurthy
  • 16. Let’s say there was a similar service issue (stewardess makes out with passenger on flight) on Singapore Airlines and on Virgin. I believe Singapore Airlines would be much harder hit. ‚The holier-than-thou, the harder-thy-fall.‛@maheshmurthy
  • 17. Your longevity is increased if you don’t claim perfection. The more risk you embrace in your brand personality, the more resilience to black swans you’ll gain.@maheshmurthy
  • 18. 3 WHAT IS YOUR CONTENT-COST-TO-COVERAGE RATIO? WINNER BRANDS WILL CUT OUT THE MIDDLEMEN BETWEEN THEM AND CONSUMERS.@maheshmurthy
  • 19. Old way: Brand  Research firm  Strategy firm  Creative agency  Media agency  Media house  Media property  Editorial / Entertainment  Inserted advertising  Consumer Loss of fidelity, efficiency at each level New way: Brand  Editorial / Entertainment  Consumer Minimal loss of fidelity. Max efficiency.@maheshmurthy
  • 20. @maheshmurthy
  • 21. Red Bull had 5x the global search volume of Coca Cola during the stunt. And settled down at a level higher than Pepsi.@maheshmurthy
  • 22. The brand is the entertainment. Media may even pay to cover the brand. No ad film was produced. No media buy was executed. $500m+ worth of publicity on ~$15m worth of investment. 30x@maheshmurthy
  • 23. 4 HOW SOON WILL YOUR SOCIAL NETWORK DIE? WINNER BRANDS WILL BUILD NETWORK-NEUTRAL PRESENCE.@maheshmurthy
  • 24. Social networks typically have a lifecycle@maheshmurthy
  • 25. @maheshmurthy
  • 26. When & how brands should participate Watch Try Wait Exploit & Maintain & Consolidate Prepare to grow exit & migrate@maheshmurthy
  • 27. Facebook seems to have begun its decline in the US already. It will also die one day. What happens to your investment and fans there? They’re not portable.@maheshmurthy
  • 28. Instead of building content on a social network, build it on your site – Use ‚f-connect‛ and other such buttons – and embed it on networks from your site You should own your fans. Not Facebook. Be network-neutral.@maheshmurthy
  • 29. 5 WHAT IS YOUR SHARE OF TRAFFIC FROM SOCIAL? OVER 50%?@maheshmurthy
  • 30. @maheshmurthy
  • 31. India’s #3 sports site 5m pageviews a month generated socially from 3.5m Facebook fans. At zero media cost@maheshmurthy
  • 32. 6 WHAT IS YOUR SHARE OF SALES FROM SOCIAL? OVER 50%?@maheshmurthy
  • 33. @maheshmurthy
  • 34. $1m annual sales. Generated almost exclusively from Facebook. At zero media cost.@maheshmurthy
  • 35. 7 HOW SOON BEFORE FACEBOOK BECOMES YAHOO WITH SMALLER ADS? AND TAKES ITS VIRAL VISIBILITY TO ZERO?@maheshmurthy
  • 36. Edge rank: updates reach virtually no one, really. @maheshmurthy
  • 37. Typical / max organic visibility of your Facebook update across your fan base 80% 16% 12% 2012 2013@maheshmurthy
  • 38. Typically, less than 1% of your fan base actually is shown your update (unless you pay to promote). 99% won’t get it. At best, about 12% of your fan base will get to see it.@maheshmurthy
  • 39. Facebook squelched organic ‛free‛ visibility to boost short-term revenues to kick-up stock price. Every time Facebook needs revenues, it’ll damp virality further. When will virality go to zero – and you start comparing Facebook with Yahoo, where visibility is 100% fee-dependent?@maheshmurthy
  • 40. 8 WHAT ARE THE ONLY FACEBOOK STATS THAT MATTER? VIRALITY AND ENGAGEMENT@maheshmurthy
  • 41. Out of a boatload of Facebook analytics…@maheshmurthy
  • 42. Two really matter – and Facebook doesn’t compute those. But you can: Relative virality: How many non-fans get to organically see updates divided by total number of fans i.e. how viral did it go? Viral attraction: How many non-fans become fans as a result of seeing updates organically, divided by total number of non-fans who saw the updates. i.e. how compelling was the virality?@maheshmurthy
  • 43. Relative virality – the higher, the better. Aim for 2%+ daily @maheshmurthy
  • 44. Viral attraction – the lower, the better. Aim for <50@maheshmurthy
  • 45. Then measure engagement Not as PTAT (people talking about this) which is a useless number.@maheshmurthy
  • 46. Engagement Type Metric NormE1: Unprompted Posts / fan base 0.05% | 50E2: Prompted Comments / fan base 0.5% | 500E3: Passive Likes / fan base 2.5% | 2500E4: Referral Shares / fan base 0.5% | 500@maheshmurthy
  • 47. And compare against sectoral peers – also TG peer brands. Which you can measure externally, with no account access@maheshmurthy
  • 48. @maheshmurthy
  • 49. 9 HOW DO YOU IDENTIFY AND TRACK INFLUENCERS? WITH KLOUT, PEER INDEX AND KRED.@maheshmurthy
  • 50. Pinstorm tracks over 6,000 influencers in India alone everyday, sorted by TGs & topics http://pinstorm.com/ii@maheshmurthy
  • 51. @maheshmurthy
  • 52. @maheshmurthy
  • 53. 10 HOW QUICKLY CAN YOU PICK UP BUZZ ABOUT YOUR BRAND AND DEAL WITH IT? WITHIN 4 HOURS? 7 DAYS A WEEK?@maheshmurthy
  • 54. Per brand: 1,000 to 15,000+ social mentions per day 80% outside office hours. Need to work in shifts, 7 days a week.@maheshmurthy
  • 55. Quick sorting and data visualisation@maheshmurthy
  • 56. @maheshmurthy
  • 57. @maheshmurthy
  • 58. @maheshmurthy
  • 59. Instant client notifications on mobile. SLA of ~4 hours for responses at scale.@maheshmurthy
  • 60. @maheshmurthy
  • 61. 11 WHAT IS THE VALUE OF YOUR SOCIAL BUZZ? RELATIVE TO YOURSELF? RELATIVE TO COMPETITION?@maheshmurthy
  • 62. Tracking competitive sentiment@maheshmurthy
  • 63. 100 9390 8480 78 78 74 72 71 7170 69 65 65 66 65 65 65 63 6360 61 61 60 60 Positive50 Negative40 39 39 40 40 37 37 35 35 34 35 35 3530 31 28 29 29 26 22 2220 1610 7 0 @maheshmurthy
  • 64. Valuing sentiment@maheshmurthy
  • 65. Pinstorm has an SLA for $15m in value of non-negative publicity to be generated through online reputation management for one client. Value apportioned with equivalent CPM rate for ad spot in medium, with 1:1 editorial to ad valuation@maheshmurthy
  • 66. 12 WHAT ARE YOUR VIDEO VIRALITY AND COST METRICS? THIS IS THE NEXT BIG FRONTIER.@maheshmurthy
  • 67. @maheshmurthy
  • 68. Over 2.5m views generated on one film alone. TV-competitive cost per view 67:33 mix of paid and organic.@maheshmurthy
  • 69. The 100x revolution in production.@maheshmurthy
  • 70. @maheshmurthy
  • 71. @maheshmurthy
  • 72. Cost of broadcast quality commercials down from US$250,000 to US$2,500. 100x improvement already. True break-even will come at US$25, when the film can make its own cost back thru ads on 10,000 views. So, further 100x improvement needed@maheshmurthy
  • 73. 12 minutes. 12 metrics to live by.@maheshmurthy
  • 74. Thank you! mahesh@pinstorm.com @maheshmurthy@maheshmurthy