Social Marketing The Roi

Social Marketing: This ROI is Too Good to be True!
March 25th, 2009

Today’s Topics
Branded Online Community Measurement
Kathy Warren, VP Account Planning, Powered
Results of the 2008 ROI Benchmark Study for Social Marketing Programs
Bill Harvey, President, TRA Global
Social Media: Why it Makes Sense and How I Prove it to Myself
Brian Halligan, Co-Founder and CEO, HubSpot

Branded Online Community Measurement

Social Marketing
Segment-focused communities

Social movement creating opportunity across the Enterprise including high-potential for marketing
Planned as part of go-to-market strategy
Designed to drive:

Acquisition
Purchase consideration
Loyalty
Advocacy
Insight

Long-term persistent strategy

Three keys to branded online community success (and ability to measure)
Start with the audience segment & desired outcomes in mind, not ‘the message’ – it’s all about them
Give before you get - engage based on mutual INTERESTS first
Category second
Brand/products (not just the latter)
Listen and show that you heard
X

Segment value drives critical mass & substantiates expansion
High
Pro Content
UGC
Research
Contribution
Low
time
community
brand

Evolution from tactical to strategic planning
Business Outcomes & Actionable Insight
Reporting

Social Marketing Transactional & Strategic ROI
Brand.com
E-mail marketing
Paid Media
Viral/WOM
Total Visits
50% Engage
(in content & conversations)
Online Transactions
*Source: Averages across Powered communities CY2008

Cumulative ROI of Social Marketing
Branded communities are persistent and drive ongoing return.
Based on typical results from Powered programs – results will vary by brand , benchmarks are established during 6-mo pilot.
*Online transactions are dependent on client tracking via web analytics. All other measures are tracked by Powered.

Managing to actionable KPIs – through behavioral & primary research data

Results of the 2008 ROI Benchmark Study for Social Marketing Programs
Bill Harvey, President TRA Global

About This Study
Purpose of This Study
Equip the marketing community with the best information from which to create the most effective marketing programs in the immediate future.
Study Methodology
Self-reported consumer data collected via surveys
Surveys were collected approximately 6-8 weeks into experience
Midpoint values were used in analyzing responses regarding amount spent on purchases of relevant products
Sample Size = 112,183 completed surveys

2008 ROI Results
For 2008, Powered social marketing programs yielded a 60:1 ROI, a 10% increase from 2006.
The results would indicate that the longer the program is sustained, the higher the ROI achieved.

2008 ROI Comparison by Marketing Program
The Powered approach for social marketing programs has consistently outperformed the DMA and MMA ROI estimates for all of direct marketing and non-CPG mass media advertising for the past 3 years NCM has conducted this study.
Direct Marketing Association (DMA) 2005 Economic Impact Study, Peter A. Johnson, PH.D., pjohnson@the-dma.org.
MMA: “Finding The Other Half” by Erwin Ephron and Gerry Pollak, Ephron On Media website archive.

2008 Supplementary Findings

Implications for Marketers
Give in order to get
Utilize a “soft sell” approach to marketing communications – inform, educate and help consumers
Provide the social marketing and Web experiences your
customers value
Shift thinking away from short-term social media campaigns to long-term social marketing programs

Social Media:
Why It Makes Sense & How I Prove It To Myself
Twitter.com/bhalligan

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Social Media Visitors

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Social Media Visitor Analysis
Visitors
Prospects
Leads
Opps
Cust

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Social Media “Reach”
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Thank you………..twitter.com/bhalligan
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Questions?