As analytics has changed how we understand and optimize visitor engagement on websites over the past decade , analytics is now ready to transform how we measure and optimize user engagement over the social Web.
As marketers, we are not spending our marketing dollars where are customers are spending their time!
Over the past few years most brands rushed to social media channels to communicate their marketing messages through this new medium. However, unfortunately they mostly stuck to their traditional, “interrupt driven” marketing approaches instead of taking advantage of new engagement models enabled by social media.
Social media monitoring enablebrands to listen to what customers, prospects and pundits are saying across the social web,and analyze the reach of their marketing campaigns across the various social channels. We recognize and monitor the growing significance of “Virality”, but there is much debate over how best to measure, optimize and monetize its power.
We are now atyet another fork in the road. We have the opportunity to engage the consumer in entirely new and personalized ways. But we need to approach social marketing differently and harness its enormous potential for consumer intelligence.
We now possess tremendous information about consumers’ search patterns, engagement patterns, demographics, even social and interest graphs.
Search results and ads we see are already getting personalized, leveraging much of that information to “increase relevance” for the consumer – and to drive conversions.
And, perhaps even more importantly, another trend is emerging. Social channels are enabling an entirely new approach to marketing – one that is all about social engagement and re-invents direct response marketing. Prospects are engaging with your brand on their pcs, ipads and mobile devices all the time. And,they are not engaging with your brand just on your website. On the contrary, the website-centric paradigm of the last two decades is being replaced by an application-centric engagement – and social and mobile apps (SAPPs and MAPPs) are starting to take center stage.
Example: How two auto-dealerships approach customer engagement differently on Facebook. While one employs a traditional marketing and advertising approach, the other turbo-charges reach and engagement by incorporating an angry-birds like social game and related contenton their brand page. Simple but effective!
Zynga, the company behind Farmville and Fishville, is transforming the game industry. They are doing so by leveraging analytics to understand what engages their large user base and applying these findings to optimize their marketing campaigns and games for average revenue per user (ARPU).
Social media is adding a new twist to the traditional customer engagement funnel. Engagement is not only increasing conversion rates but also driving viral adoption, driving down user acquisition costs.
Example: Gaia Online – a large online social network - achieved a 183% increase in ARPU in less than two months by applying a methodology similar to the Zynga approach. However, instead of built-in analytics, they leveraged Kontagent, a3rd party analytics platform, to gain similar insights.
Kontagent enabled Gaia Online to optimize their marketing campaigns for ARPU as well as viral adoption by delivering deeper visibility into campaign and ad-level engagement metrics beyond simply install numbers.
Gaia Online optimized their marketing campaigns to target users with the highest retention potential through cohort analysis and segmentation.
Gaia Online leveraged large scale A/B testing of in-game offers to creatively optimize game mechanics for ARPU. The freemium model is at play here also - and enables speed testing accurately, leveraging law of large numbers.
Example: Motorcycle Super Store executed a performance social campaign to drive online purchases, leveraging WebTrends Social.
Studies found that click through rates are 7X higher when you target your fans vs. targeting by interests alone.For this campaign, Motorcycle Superstore bought ads that were targeted at their fans. To optimize their campaign MSS, found that more smaller banners had a higher conversion rate than fewer larger banners and have a lower costs per click.It’s no surprise they segmented their ads by the states that have the highest order volumeand then again by gender and age. These targeted fans were served ads like similar to the one above and when they clicked, they were taken to an app on their Facebook page that displayed holiday deals.
Facebook apps are iframes that allow brands to create fully customized experiences.In this case Motorcycle Superstore drove the ad clicks to an app instead of directly to their website because they have found it significantly lowers the bounce rate and increases conversion,as the fans have more context about the deals.Motorcycle Super Store used WT Social to build their social application.
From the Facebook apps, they are directed to the Motorcycle Superstore ecommerce site, where they can make a purchase.
Standard analytics on the website would have only known that the traffic came from a Facebook app, but would not have known which ad the visitor clicked on prior to the app. In this case Facebook and Webtrends worked together to solve this challenge and, Motorcycle superstore used the cross domain tracking capabilities to follow the user as they went from ad… to app… to site.Powerful Reports can be built around actions, likes, comments, and shares by campaigns and campaign attributes.Motorcycle Superstore had a return on ad spend of about $3.60 in revenue for every dollar they spent on ads.
SAPPs an MAPPs enable brands to target an engage their most valuable user segments. We can now measure and optimize the cost and value of user engagement via SAPPs and MAPPs …not just in single session but through multiple sessions - through the lifetime of the engagement. This is a new way to optimize Life Time Value (LTV)!
There are several options for creating social applications, including building your own using in house developers;using a third party agency,or using the pre-fabapps directly from vendors.
Creating a Metrics-DrivenDemandSocial Generation ProgramRand Schulman + Pelin ThorogoodSchulman+Thorogood Group
2011 U.S. Ad Spending vs.Consumer Time Spent by Media 43% 40% 29% 22% 23% Ad Spend per Media 16% Time Spent per Media 11% 9% 6% 1% TV Print Web Radio MobileSources: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry Analytics2
183% Increase in ARPU in less than Two Months How effective are my ads in reach? What is the quality of users from different countries? What is my campaign performance by partner and country tier? How are my users performing post install? www.kontagent.com12
Optimizing for Viral Adoption and Revenue Conversion… Targeting based on cohort analysis and segmentation13
Speed A/B Testing Dramatic increase in valuable users into the game ecosystem via large scale A/B Testing of ads15
Now on to a Multi-Channel Social Chapter User: Motor Cycle Superstore Objective: Promote a Black Friday/Cyber Monday sale using Facebook ads to drive online purchases Challenge: Cross domain tracking16
Targeted at Fans Segmented by top selling geographies, gender, an d age ranges17
Apps are ideal landing pages for Facebook ads www.webtrends.com18
Return on ad spend Avg Order Value $3.58 sold for every $1 on media 1. Email $129.94 2. Social $127.09 Iframe tabs can’t see track the visitor through to To the 3. Search $124.37 4. None/Organic $111.74 another property, such as a campaign IDs in the referring 5. Affiliate $109.61 link from an ad or a post. you need a solution website, 6. Display $104.30 7. Sponsorships $0 that supports cross-domain Webtrends adapted their tag 8. Contest $0 tracking. to enable attribution. Facebook Ad Facebook App Website20
The ROI of SAPPS and MAPPS Cost per engagement The viral factor Lifetime value of engagement21
Getting Started The cost to start a social app is low Any company can get something up and running! Cost Time In-House $68,000 30 Days Agency $92,000 14 Days Vendor/Pre-Fab $44,000 8 Days www.involver.com www.buddymedia.com22
The Future is Here Convergence of content and advertising Personalization of SAPPs and MAPPs based on social and interest graphs AI-enabled dynamic engagement …delivered to personal relevance bubbles!23