Why Social Media is a Waste of Time & Money versus SEO

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SEO - Search Engine Optimization - consistently generates a dramatically higher return on investment than Social Media. Social Media has turned out to be all hype, the "bubble" of the early 21st Century. Learn in this presentation, backed up by lots of facts, statistics, and case studies, about why Social Media isn't worth your time or money, and in which marketing channels you should spend those dollars instead.

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Why Social Media is a Waste of Time & Money versus SEO

  1. 1. www.TheROITeam.comfrank@theroiteam.com Social Media: HOW TO SPEND 50% OF YOUR ONLINE MARKETING BUDGET ON 1% OF THE RETURNS
  2. 2. Social media in 2012 • Is Social Media the new “Tulip Mania”? • Organizations are over-spending on Social Media, hoping some luck will rub off • Still dwarfed by Search Engine Marketing, Pay-Per-Click, and good old- fashioned offline selling • Even Facebook can’t make any money!
  3. 3. CASE STUDY• In 2010, PepsiCo made a huge investment in Facebook to engage 87 million users• It was innovative, but....• By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink.• Sales dropped by 6% in a category with an overall drop of 4.5%
  4. 4. CASE STUDY• In 2010, PepsiCo made a huge investment in Facebook to engage 87 million users• It was innovative, but....• By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink.• Sales dropped by 6% in a category with an overall drop of 4.5% • “We were wrong!” • Dropped Social Media campaign after just one year • Moved marketing spend back into traditional advertising
  5. 5. • Social interaction happens offline, not online• Facebook: Less than 1% of fans are active• Social Media’s ability to engage brand advocates and drive “viral” marketing is still very limited• Social: Better for existing customers Why did this happen?
  6. 6. CASE  STUDY• General Motors began spending on Facebook in 2008.• Grew campaign to $10 Million annually• Announced cancellation of Facebook campaign in May, 2012• Domino effect: GM’s decision caused other large organizations to reconsider or withdraw
  7. 7. The problem• Social Media, while a good networking tool for salespeople (LinkedIn), has consistently returned a poor ROI as a marketing platform• Word-of-mouth happens offline (over 90% - Keller & Fay)• Less than 1% of Facebook fans and other social media followers are active fans who share the brand with others
  8. 8. The solution• Drive online marketing through proven platforms such as Search Engine Optimization and Pay-Per-Click• Engage prospective customers with proven platforms such as email marketing, direct mail, event marketing, and more• Costco: Will not engage in Social Media, but strictly in Search Engine Optimization
  9. 9. Why SEO over Social or PPC?• Top search result receives 42% clickthrough• 62% of users click on first-page results only• Only 23% of searchers to go Page 2• SEO: Top lead source for both B2B and B2C - Webmarketing123• SEO on average delivers 80% of the leads @ 15% of the budget
  10. 10. Social Media Examiner April, 2012
  11. 11. • 77% of web users choose natural over paid when searching• 67% of web users choose natural over paid when purchasing• Natural clickthroughs generate 25% higher conversion rate than paid Paid or natural search?
  12. 12. • 40% of SEO campaigns realize ROI in excess of 500% while only 22% of pay-per-click campaigns have realized this value• SEO cost averages 12.6% of pay-per-click Paid or natural search?
  13. 13. The Sussex SEO
  14. 14. The Sussex SEO
  15. 15. SEMPO
  16. 16. • For every 1 click on a paid result, the organic result generates 8.5 clicks• SEO drives over 75% of search traffic at 15% of the budget; PPC receives less than 25% of traffic at over 80% of budget Paid vs. natural results?
  17. 17. Search credibility• Search  users  know  that  Google  prides  itself  with  the   “user  experience”  and  delivering  the  most   relevant  and  useful  results  to  users• Consumer  percep9on:  “Google  Stamp  of   Approval”  for  first-­‐page  results• Paid  ads,  on  the  other  hand,  can  be  purchased  by   anyone  -­‐  no  credibility
  18. 18. Why ever use PPC?• Instant results: Ads showing within minutes while SEO can take months• Can test many page variations; confirm that a page converts before SEO’ing it• Keyword Research• Show ads on Display Network• Show ads for keywords you’ll never rank for SEO (competitor names, etc.)• Retargeting to SEO & PPC leads
  19. 19. Conclusion:Social vs. Search vs. Paid • Social  Media  fails  to  effect  “viral  marke9ng”  and  offers  poor   ROI • Search  Engine  Marke9ng  generates  over  80%  of  both  B2B   and  B2C  leads • Natural  search  is  far  superior  to  paid  search  and  generates   an  extreme  ROI • Paid  search  has  its  place  and  should  be  considered  for   numerous  reasons
  20. 20. TESTIMONIALJerry was a prominent New York attorney from YourLawyer.com He had triedEVERYTHING to grow his search engine rankings for personal injury keywords. Over 18months, little had worked. When he came to us he was skeptical we could help himbecause so many "SEO Experts" had burned him and only took money without gettinghim a result. When he tried us, his SEO rankings grew fast.Traffic grew 21% in 1 week. 62% in 6 weeks.
  21. 21. TESTIMONIALAs you probably already know, the insurance industry is VERY competitive & challengingto drive new leads for insurance keywords! Except, we just took a client topage 1 of Google for the keyword: Insurance LeadWe took them from zero rankings to the TOP 10 out of 269 MILLION competing sitesin only 3 months. Pretty cool, right? Whats better is the traffic from 33,100 searches amonth for this keywords! …which means a BIG sales revenue jump!
  22. 22. TESTIMONIALDruva.com is a business in the PC recovery and Hard disk recovery market. Hereswhat we did for them: “Laptop backup” - Google #1 - 22,500 monthly searches. “PCbackup” - Google #3 - 301,000 monthly searches. “PC backup software” - Google #3 -12,100 monthly searches. Before we started working with Druva.com they had ZEROrankings for any of these keywords.You could say we kicked their site to the top of thepile! (And made them a mint in the process)
  23. 23. TESTIMONIALAs you probably already know college kids look all over for grant money. So when wetook SchoolGrants.net as a client, they were skeptical we could produce page 1 Googlerankings for them. We put them in the top 10 on Google for 9 separate keywords. Hereare just 5 of them: “Private school grants” “grants for school” “private grants” “schoolgrants” “schoolgrants”. Over 385,600 monthly searches are done for these 5 keywordsalone. Im sure youll agree, Thats a LOT of Free Traffic, right? However it gets better, Allhave HIGH competition and SchoolGrants.net was nowhere near page 1 for any of thesekeywords before we started working with them.
  24. 24. TESTIMONIALWhen a major travel website approached us wanting to increase traffic for theextraordinarily competitive search terms "hotels" and "rental cars," we were eager totake on the challenge. We took them from #9 to #1 on Google for "hotels" in only 6weeks. And from #53 to #5 for "rental cars" in just 5 DAYS. Then, believing they couldhandle it "in house" going forward, they quickly lost those valuable rankings and arecoming back on board as a client - this time, permanently.
  25. 25. www.TheROITeam.comfrank@theroiteam.com Social Media: HOW TO SPEND 50% OF YOUR ONLINE MARKETING BUDGET ON 1% OF THE RETURNS

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