Measuring RoI & effectiveness  in social media marketing@maheshmurthy
Return On Investment  can be said to come from  Relevance, Originality, Impact        But that’s not precisely measurable....
12 minutes.  12 metrics to live by.@maheshmurthy
1  HOW LOW IS YOUR AD-SPEND-TO-REVENUE  RATIO? TO BECOME BIG, SPEND LESS.@maheshmurthy
Interbrand’s ‘Top 100 brands 2012’@maheshmurthy
@maheshmurthy
@maheshmurthy
Interbrand’s ‚Top 100 brands 2012‛        1/3rd seem to have been built without        too much spend on media buying.@mah...
This list doesn’t even include Red Bull,  Twitter, Ferrari, Facebook. The zero-ad-  budget champions.        It’s back to ...
Increasingly, in more sectors, the winner  has the best word of mouth.  And correspondingly, the lowest ad spend.@maheshmu...
2  HOW FAST CAN YOU DIE?  WINNER BRANDS HAVE TO THINK ANTI-FRAGILE.@maheshmurthy
$300m brand, built over 15 years.@maheshmurthy
$300m brand, built over 15 years.              Destroyed in 15 hours.@maheshmurthy
$50b brand, built over 150 years.                Gone in a weekend.@maheshmurthy
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...
Let’s say there was a similar service issue  (stewardess makes out with passenger on  flight) on Singapore Airlines and on...
Your longevity is increased if you don’t  claim perfection.  The more risk you embrace in your brand  personality, the mor...
3  WHAT IS YOUR CONTENT-COST-TO-COVERAGE  RATIO?  WINNER BRANDS WILL CUT OUT THE MIDDLEMEN  BETWEEN THEM AND CONSUMERS.@ma...
Old way:  Brand  Research firm  Strategy firm   Creative agency  Media agency  Media house   Media property  Editor...
@maheshmurthy
Red Bull had 5x the global search volume of Coca Cola during the stunt. And settled down at a level higher than Pepsi.@mah...
The brand is the entertainment.  Media may even pay to cover the brand.  No ad film was produced.  No media buy was execut...
4  HOW SOON WILL YOUR SOCIAL NETWORK DIE?  WINNER BRANDS WILL BUILD NETWORK-NEUTRAL  PRESENCE.@maheshmurthy
Social networks typically have a lifecycle@maheshmurthy
@maheshmurthy
When & how brands should participate       Watch    Try   Wait   Exploit &   Maintain & Consolidate   Prepare to          ...
Facebook seems to have begun its decline  in the US already.  It will also die one day.  What happens to your investment a...
Instead of building content on a social  network, build it on your site –  Use ‚f-connect‛ and other such buttons –  and e...
5  WHAT IS YOUR SHARE OF TRAFFIC FROM SOCIAL?  OVER 50%?@maheshmurthy
@maheshmurthy
India’s #3 sports site  5m pageviews a month generated socially  from 3.5m Facebook fans.  At zero media cost@maheshmurthy
6  WHAT IS YOUR SHARE OF SALES FROM SOCIAL?  OVER 50%?@maheshmurthy
@maheshmurthy
$1m annual sales.  Generated almost exclusively from  Facebook.  At zero media cost.@maheshmurthy
7  HOW SOON BEFORE FACEBOOK BECOMES YAHOO  WITH SMALLER ADS?  AND TAKES ITS VIRAL VISIBILITY TO ZERO?@maheshmurthy
Edge rank: updates reach virtually no one, really. @maheshmurthy
Typical / max organic visibility of your Facebook          update across your fan base     80%                            ...
Typically, less than 1% of your fan base  actually is shown your update (unless you  pay to promote). 99% won’t get it.  A...
Facebook squelched organic ‛free‛ visibility  to boost short-term revenues to kick-up  stock price.  Every time Facebook n...
8  WHAT ARE THE ONLY FACEBOOK STATS THAT  MATTER?  VIRALITY AND ENGAGEMENT@maheshmurthy
Out of a boatload of Facebook analytics…@maheshmurthy
Two really matter – and Facebook doesn’t  compute those. But you can:  Relative virality:          How many non-fans get t...
Relative virality – the higher, the better. Aim for 2%+ daily  @maheshmurthy
Viral attraction – the lower, the better. Aim for <50@maheshmurthy
Then measure engagement        Not as PTAT (people talking about this)        which is a useless number.@maheshmurthy
Engagement Type   Metric                NormE1: Unprompted    Posts / fan base      0.05% | 50E2: Prompted      Comments /...
And compare against sectoral peers –  also TG peer brands.        Which you can measure externally, with        no account...
@maheshmurthy
9  HOW DO YOU IDENTIFY AND TRACK INFLUENCERS?  WITH KLOUT, PEER INDEX AND KRED.@maheshmurthy
Pinstorm tracks over 6,000 influencers in  India alone everyday, sorted by TGs & topics        http://pinstorm.com/ii@mahe...
@maheshmurthy
@maheshmurthy
10  HOW QUICKLY CAN YOU PICK UP BUZZ ABOUT YOUR  BRAND AND DEAL WITH IT?  WITHIN 4 HOURS? 7 DAYS A WEEK?@maheshmurthy
Per brand: 1,000 to 15,000+ social  mentions per day  80% outside office hours.  Need to work in shifts, 7 days a week.@ma...
Quick sorting and data visualisation@maheshmurthy
@maheshmurthy
@maheshmurthy
@maheshmurthy
Instant client notifications on mobile.  SLA of ~4 hours for responses at scale.@maheshmurthy
@maheshmurthy
11  WHAT IS THE VALUE OF YOUR SOCIAL BUZZ?  RELATIVE TO YOURSELF?  RELATIVE TO COMPETITION?@maheshmurthy
Tracking competitive sentiment@maheshmurthy
100                                                               9390                                                    ...
Valuing sentiment@maheshmurthy
Pinstorm has an SLA for $15m in value of  non-negative publicity to be generated  through online reputation management for...
12  WHAT ARE YOUR VIDEO VIRALITY AND COST  METRICS?  THIS IS THE NEXT BIG FRONTIER.@maheshmurthy
@maheshmurthy
Over 2.5m views generated on one film  alone.  TV-competitive cost per view  67:33 mix of paid and organic.@maheshmurthy
The 100x revolution in production.@maheshmurthy
@maheshmurthy
@maheshmurthy
Cost of broadcast quality commercials  down from US$250,000 to US$2,500.  100x improvement already.  True break-even will ...
12 minutes.  12 metrics to live by.@maheshmurthy
Thank you!  mahesh@pinstorm.com  @maheshmurthy@maheshmurthy
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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.

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

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

  1. 1. Measuring RoI & effectiveness in social media marketing@maheshmurthy
  2. 2. Return On Investment can be said to come from Relevance, Originality, Impact But that’s not precisely measurable. Need better metrics.@maheshmurthy
  3. 3. 12 minutes. 12 metrics to live by.@maheshmurthy
  4. 4. 1 HOW LOW IS YOUR AD-SPEND-TO-REVENUE RATIO? TO BECOME BIG, SPEND LESS.@maheshmurthy
  5. 5. Interbrand’s ‘Top 100 brands 2012’@maheshmurthy
  6. 6. @maheshmurthy
  7. 7. @maheshmurthy
  8. 8. Interbrand’s ‚Top 100 brands 2012‛ 1/3rd seem to have been built without too much spend on media buying.@maheshmurthy
  9. 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. 10. Increasingly, in more sectors, the winner has the best word of mouth. And correspondingly, the lowest ad spend.@maheshmurthy
  11. 11. 2 HOW FAST CAN YOU DIE? WINNER BRANDS HAVE TO THINK ANTI-FRAGILE.@maheshmurthy
  12. 12. $300m brand, built over 15 years.@maheshmurthy
  13. 13. $300m brand, built over 15 years. Destroyed in 15 hours.@maheshmurthy
  14. 14. $50b brand, built over 150 years. Gone in a weekend.@maheshmurthy
  15. 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. 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. 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. 18. 3 WHAT IS YOUR CONTENT-COST-TO-COVERAGE RATIO? WINNER BRANDS WILL CUT OUT THE MIDDLEMEN BETWEEN THEM AND CONSUMERS.@maheshmurthy
  19. 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. 20. @maheshmurthy
  21. 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. 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. 23. 4 HOW SOON WILL YOUR SOCIAL NETWORK DIE? WINNER BRANDS WILL BUILD NETWORK-NEUTRAL PRESENCE.@maheshmurthy
  24. 24. Social networks typically have a lifecycle@maheshmurthy
  25. 25. @maheshmurthy
  26. 26. When & how brands should participate Watch Try Wait Exploit & Maintain & Consolidate Prepare to grow exit & migrate@maheshmurthy
  27. 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. 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. 29. 5 WHAT IS YOUR SHARE OF TRAFFIC FROM SOCIAL? OVER 50%?@maheshmurthy
  30. 30. @maheshmurthy
  31. 31. India’s #3 sports site 5m pageviews a month generated socially from 3.5m Facebook fans. At zero media cost@maheshmurthy
  32. 32. 6 WHAT IS YOUR SHARE OF SALES FROM SOCIAL? OVER 50%?@maheshmurthy
  33. 33. @maheshmurthy
  34. 34. $1m annual sales. Generated almost exclusively from Facebook. At zero media cost.@maheshmurthy
  35. 35. 7 HOW SOON BEFORE FACEBOOK BECOMES YAHOO WITH SMALLER ADS? AND TAKES ITS VIRAL VISIBILITY TO ZERO?@maheshmurthy
  36. 36. Edge rank: updates reach virtually no one, really. @maheshmurthy
  37. 37. Typical / max organic visibility of your Facebook update across your fan base 80% 16% 12% 2012 2013@maheshmurthy
  38. 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. 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. 40. 8 WHAT ARE THE ONLY FACEBOOK STATS THAT MATTER? VIRALITY AND ENGAGEMENT@maheshmurthy
  41. 41. Out of a boatload of Facebook analytics…@maheshmurthy
  42. 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. 43. Relative virality – the higher, the better. Aim for 2%+ daily @maheshmurthy
  44. 44. Viral attraction – the lower, the better. Aim for <50@maheshmurthy
  45. 45. Then measure engagement Not as PTAT (people talking about this) which is a useless number.@maheshmurthy
  46. 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. 47. And compare against sectoral peers – also TG peer brands. Which you can measure externally, with no account access@maheshmurthy
  48. 48. @maheshmurthy
  49. 49. 9 HOW DO YOU IDENTIFY AND TRACK INFLUENCERS? WITH KLOUT, PEER INDEX AND KRED.@maheshmurthy
  50. 50. Pinstorm tracks over 6,000 influencers in India alone everyday, sorted by TGs & topics http://pinstorm.com/ii@maheshmurthy
  51. 51. @maheshmurthy
  52. 52. @maheshmurthy
  53. 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. 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. 55. Quick sorting and data visualisation@maheshmurthy
  56. 56. @maheshmurthy
  57. 57. @maheshmurthy
  58. 58. @maheshmurthy
  59. 59. Instant client notifications on mobile. SLA of ~4 hours for responses at scale.@maheshmurthy
  60. 60. @maheshmurthy
  61. 61. 11 WHAT IS THE VALUE OF YOUR SOCIAL BUZZ? RELATIVE TO YOURSELF? RELATIVE TO COMPETITION?@maheshmurthy
  62. 62. Tracking competitive sentiment@maheshmurthy
  63. 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. 64. Valuing sentiment@maheshmurthy
  65. 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. 66. 12 WHAT ARE YOUR VIDEO VIRALITY AND COST METRICS? THIS IS THE NEXT BIG FRONTIER.@maheshmurthy
  67. 67. @maheshmurthy
  68. 68. Over 2.5m views generated on one film alone. TV-competitive cost per view 67:33 mix of paid and organic.@maheshmurthy
  69. 69. The 100x revolution in production.@maheshmurthy
  70. 70. @maheshmurthy
  71. 71. @maheshmurthy
  72. 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. 73. 12 minutes. 12 metrics to live by.@maheshmurthy
  74. 74. Thank you! mahesh@pinstorm.com @maheshmurthy@maheshmurthy
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