Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising

Bringing
smart & sexy back
The pay-per-success model in social media advertising
Octavian MihaiRock&Social
Internet Week New York 8 June 2011

Social media knowledge
Agencies
Students
Not sure
What do you expect?

Short story of R&S
Social media & Brand community model
Pay-per-success model & Business case
Q&A Fun, fun, fun!

Our story

THE NAME

Logos from cute to sexy

July 2010

August 2010

September 2010

March 2011
Branding by our patient partners StudioFeed.ca

Business cards cute to sexy

August 2010

October 2010

March 2011

May 2011

T-shirt mania

Founding principles

Be global
Social media
Pay-per-success
Work with respectful clients

R&S 3 tier services
STRATEGY
PLANNING
INSIGHTS
Community management
Training
Public Relations
SM development
Facebook apps
Mobile apps

R&S 3 tier PARTNERSHIP
DIRECTCLIENTS
AGENCIES
PARTNERS

global

Montreal
New york
Guadalajara
Paris

Passion and THEORY

We are in the business of brand community building.

Not (only) about
conversations

Not (only) about
engagement

Not (only) about
technology

Not (only) about
conversion

Social media

(for lack of a better and widely accepted word)

Is about the democratization of ideas

Is about the creation of communities of ideas

And from a business perspective

It’s about creating

meaningless
Daniel Hernandez

meaningful
Daniel Hernandez

Relationships between consumers and your brand

Social media facilitates the creation of a consumer brand community

YEEEEE…
FUN, FUN, FUN!
Gregory A. Perez

These are your employees, your consumers, your regulators

See your brand community as a SOCIAL CRM system on steroids

Social media touches every aspect of your business

hr
Marketing
sales
Customer support
Product, etc

A simple brand community model

Brand community is a strategic approach to business that happens to use social media

A strong brand community will

Decrease marketing and sales costs

Increase brand equity and sales

Provide detailed business intelligence

Increase employee engagement and decrease hr costs

Brand community attributes
SIZE
ENGAGEMENT
REACH
platforms

Creating a brand community

1. Choose a brand community platform

Think outside of facebook

OR NOT

General brand community
AGGREGATOR : FACEBOOK, ELETTER, FORUMS…

SOCIAL CRM
SAP FACEBOOK & TWITER BUSINESS ADD-ONS

2. Create your ambassador VIP community

VIP Ambassador community
DETECT ENGAGED MEMBERS
FANGAGER.com

VIP Ambassador community
PRIVATE VIP COMMUNITY
ThisWeekInStartups.com

3. Detect and build your influencers community

MVP INFLUENCER community
INFLUENCERS AROUND YOUR BRAND COMMUNITY
Radian6

Generate feedback loop between your brand communities to increase size, engagement and reach

Pay-per-succeSS

Link remuneration with result milestones

PAY-PER-SUCCESS Advantages

Everybody is focused on results (agency and client)

Procurement is happy

Consumer gets the best deal

Defining success kpis

Remember that Social media touches every aspect of your business

Hrkpis
No Qualified CVs
Employee engagement

Marketing kpis
Brand awareness
MARKET SHARE VS COMPETITION

Sales kpis
Qualified leads
Customer acquisition

Community based kpis
size
Engagement %
Reach

Remuneration models

e.g. client pays
40% - 60% at first
Rest only after and if 40% - 60% of results are achieved

e.g. agency receives
40% - 60% at first for production and to start the campaign
Rest after results are achieved

A Simple pay-per-success Business case & process

STEP 1
Monitor and analyze

Brand & Category Development Index (BDI& CDI)
Growth Potential Index (GPI)

Competitor analysis
Demographic analysis

CTR, CPC, CPM, conversion rates, cost per acquisition, cost per lead
profit margins

Example
Say, client needs to expand her facebook brand community

Example
Gather all necessary benchmarks: competitor analysis, demographic analysis, etc

Tips to define kpis
Sell an analysis mandate
Run an initial campaign
Benchmark on competition and previous efforts

STEP 2
Define your client’s kpis

Example
Community size: 50K
Engagement: 10%

STEP 3
analyse benchmarks & negotiate

Example
Qualified member: $0.75
Engagement If under 5% then $0If 5-10% then + $1 / engaged member If higher than 10% then + $1.2 / engaged member over 10%

STEP 4
Remuneration model

Example
a. Qualified member: $0.75

Example
b. Engagement / monthIf under 5% then $0If 5-10% then + $1 / engaged member If higher than 10% then + $1.2 / engaged member over 10%

Example
For 50 000 & 10% over 3 monthsestimated campaign cost $47.500

projections
Client was ready to pay $70 000
Objectives50 000 & 10% = $47.500
Result60 000 & 15% = $59.000

STEP 5

5… …

Don’t you know that the time has arrived…

STEP 5
Execute campaign

Be creative
Monitor
Optimize
Iterate fun fun fun

Recap pay-per-success

pay-per-success phases
Monitor and analyze
Define your client’s kpis
Analyze and negotiate
Build remuneration model
Execute campaign

pay-per-success rules
40% - 60% at start
Higher maximum budget – keep incentives up – min 20%
Gather best data and negotiate
Agency must have strategic lead
Client must pay fast

Last thoughts

Pay-per-success Walks the talklinking remuneration with advertising milestones

The Brand community approach helps you Ask the right questions

social media Advertising is about creativity and building a community not only about Ad-words and pay-per-click.

Creativity can be used everywhere even in your business model.

Where to rock&Social?

Champion pay-per-success & brand community building
Stay smart & Sexy
keep on Having fun

2011 official opening in new york… Starting this fall

2012 Back at Internet week the story will continue!

Let it rock & please connect

HERE IS A CUTE PIC

Presentationavailableat
@rockandsocial
@octavianmihai
www.rockandsocial.com

If you liked Tweet
#iwNY <3 @rockandsocial

THANK YOU! Hope ithelped!

OCTAVIAN MIHAI
CEO, Co-Founder
o@rockandsocial.com@octavianmihai@rockandsocial
PHOTOS ARE PROVIDED BY THE INTERNETS.LET ME KNOW IF YOU KNOW THE CREDITS OR THEY BELONG TO YOU AND WANT ME TO TAKE THEM OUT.

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Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising

by Octavian Mihai on Jun 08, 2011

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Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising — Presentation Transcript