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The VALUE of Search and Social   Gillian Muessig, President & Co-founder, SEOmoz              GlobalEIM| November, 2011
ROI is a business metric,not a media metric.                            ROI
ROI is media agnostic100%                        ROI
Every resource has a cost                            ROI
Non-financialpositive and negative KPIs Clicks, hits, complaints, CTR, press, content views,brick and mortar store numbers...
You Get the Idea                   NOT ROI
Those are non financial KPIs          not ROI                          NOT ROI
Financial ROI of Social Media                                ROI
Average salesbefore SMMinitiative                ROI
Average salesafter SMMinitiative                ROI
Before           AfterAvg growth 10%   Avg growth 16%                                  ROI
If your cost                     <       Increases receipts                            ROI
You have achieved a   positive ROI.                      ROI
Ok. We’re done.      Bye bye.                  ROI
What?You want more?     Ok.                 ROI
An increase in POSITIVE KPIs                      Positive KPIs
Number of Customers                      Positive KPIs
Average Dollar Value per Purchase                            Positive KPIs
Customer Lifetime Value                          Positive KPIs
Increased Average Margin                           Positive KPIs
Decrease in returns                      Negative KPIs
Decrease in customer complaints                          Negative KPIs
Decrease in left over stock                              Negative KPIs
Decrease in bad sentiment                            Negative KPIs
Decrease in need for paid ads                           Negative KPIs
Decrease in recalls or failed new products                              Negative KPIs
Ok. NOW we’re done.        Bye bye.                      ROI
No. Wait. There’s more.     Think more deeply about VALUE
LINKS: HOW WE GET AROUND
LINKS: VOTES OF POPULARITY
LINKS: A REALLY BAD SIGNAL
LINKS: A REALLY BAD SIGNAL
A BETTER SIGNAL    SOCIAL SIGNALS ARE BETTER
NEWS EVENT
Users:   50mm   750mm       200mm   120mm      10mmUsers:   14mm    Millions       14mm        6.5mm                      ...
22 MINUTES
RADIO: 1+ HOURS
TV: PM NEWS
TV: PM NEWS
SOCIAL SIGNALS
NEWS SOURCE        FASTER DELIVERY
GOOGLE PIVOTS
IMMEDIACY
SENTIMENT
So what good is it to me?                            ROI
FOCUS GROUPS ARE BOGUS
FOCUS GROUPS ARE UNCOMFORTABLE
YOU’RE NOT PARANOID
IT’S THE BEST WE HAD
REPLACES FOCUS GROUPS   FASTER ANSWERS, LARGER DATASETS
CROWD SOURCINGImage credit: http://www.businessesgrow.com/2011/08/31/the-top-five-crowdsourcing-mega-trends/
FUND RAISING                      WITHOUT                     MIDDLEMENImage credit: http://www.psn.ie/parents_pa/other-fu...
CROWD SOURCE SIMPLE TASKS
CROWD SOURCE SIMPLE TASKS
Involvement Marketing       CROWD SOURCE MARKETING
ASK ME ANYTHING
What color do you feel like this morning?
What color do you feel like this morning?                        A SIMPLE QUESTION
More than 1000 responses      within 1 hour          MARKETERS SOULS SING!
POETRY
WHAT CAN YOU DO WITH IT?
HEADS UP, CORPORATE BUYERS!
INDUSTRIAL DECISIONS
ASK US; WE’LL TELL YOU
GET SOME PERSPECTIVE
MASS MARKETED PRODUCTS
OPM
INDUSTRIES IN NEED OF PIVOTING
SOME PEOPLE DON’T ASK
THOUGHT LEADERS
Apple - BMW        Crowd source everything – R&D, improvements, innovations, marketing        Governments, NPOs, for-profi...
FINAL THOUGHTS
ONLINE REPUTATION
The ROI of Social Media = Adjusted Gross Receipts           less    Cost of Initiative                  FINAL THOUGHTS
The VALUE ofSocial Media is much more                 FINAL THOUGHTS
So how do I sell this to a client        or my boss?                                    ROI
Why should I spend money on SEO?                               ROI
We’re all clicking on Organic SERPsPaid    <20% ofmarketing budget     >80% of marketing budgetOrganic                    ...
All the money is spent on Paid AdsPaid    88% ofmarketing budget     12% of marketing budgetOrganic                       ...
SEO represents a huge potential     for ROI                   CTR
Fine. But I do really need to be #1?                                   ROI
Do I really have to rank #1?                               CTR
How will I know SEO made me money?                               ROI
Look for the lift                    ROI
Yes! That lift!                  ROI
PROMODO12• Twitter: @SEOmom• Blog: www.seomoz.org/blog• Email: gillian@seomoz.org
2012 05 SEMcamp Kyiv The ROI of Search and Social
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2012 05 SEMcamp Kyiv The ROI of Search and Social

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Understanding the full value of search and social media initiatives.

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  • Image credit: http://www.cherokeecountyiowa.com/offices/HR/index.htm
  • You want to good stuff to get better and the bad stuff to get less or go away.
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  • Sometimes, we don’t immediately see the applications for the products we build.
  • Similarly, let’s take a look at the uses of Social Media.Remember links? They’re how the web is put together. Links are how bots travel from page to page, discover new ones.
  • They were also the only way search engines decided which pages were ‘popular’ and worthy of the best placements on the SERPs
  • But links are a really bad signal. Because, unless you’re name is Rand or Evan Fishkin, your Mama doesn’t link. In 2001, even fewer people knew how to link.
  • Only a select few techies linked to anything, so it was easy to ‘game’ popularity.
  • Social media signals serve as better signals of what’s important to searchers and what local, regional, and global societies are thinking about.
  • When Michael Jackson died,
  • …twitter carried the news around the world within seconds. It took Google 22 minutes to get the information to rank at the top of the SERPs for queries on the term, ‘Michael Jackson’. Radio broadcast it within the hour. TV reported it on the evening news. And newspapers carried stories in the morning press.
  • It was clear who ruled the news that day.
  • Social media delivers news faster than any other resource our world has ever known.
  • You know what was really amazing about that event? Within 72 hours, the behemoth corporation, Google showed amazing agility and pivoted ‘on a dime’, as it were. They incorporated social signals into the algorithm and began to track
  • Immediacy and
  • An sentiment in a big way. They never turned back
  • Image credit: http://www.careerealism.com/network-offensive/and
  • Similarly, focus groups are a really bad signal. How many of you have ever participated in a focus group as an attendee or run one as a marketer?
  • They’re weird, right? From a marketer’s standpoint, they are WAY too small. Unless your customer base is about 100 people, a focus group of 10 is just a joke. We’re playing games with ourselves when we convince ourselves that this is a reliable sampling of… anythingFocus groups are uncomfortable. If you’ve ever experienced being in one, you know that you don’t really give your full, dispassionate opinion on the matter. You’re being watched. You’re being paid. You’re feeling awkward in the presence of the other members. One strong personality can skew the whole group who simply want to get away from him/her.
  • …and you’re even more self conscious because you know you’re not paranoid in this case. You ARE being watched! The only other place that happens is at the police interrogation room or an insane asylum. No wonder these are bad signals.
  • But hey, it was the best we had.
  • Social media provides a platform to replace focus groups with much larger data sets, far better audience participation, and faster results.
  • Enter: crowd sourcing
  • Now, we can raise funds and donate to groups directly, without middlemen
  • With MobileWorks and the much better known, MechanicalTurk, you can crowd source and outsource at the same time.
  • Mechanical Turk is a job site, but you can get 1000 people to give you an opinion of a UI or product as easily as you can get a dozen to input data for your email campaigns.
  • …and increasingly, marketers are turning to crowd sourcing to optimize the design, deployment, and ROI of their campaigns. Crowd Source Marketing is INVOLVEMENT MARKETING. You are involving your customers in your own marketing processes. You are giving them a voice in what you’ll build and sell to them. They help not only create, but market the product(s) for you as well.
  • Now we can query hundreds and thousands of people about what they’d like from us and get changing answers in real time.
  • Carefully, now” Note the choice of words… Not: what color do you like? Not: what color shirts do you want to buy? What COLOR do you FEEL like? Not: today, but THIS MORNING.
  • When I saw this demonstration live, the presenter entered the question and refreshed the screen as dozens of answers came in within the first 7 seconds. Then he refreshed the screen periodically over the next 40 minutes of his presentation. But no one was listening to his presentation… they only wanted to see the increasing number of responses, moaning and gasping at the numbers as they rose into the hundreds and topped 1000.
  • And the answers! Oh, the answers! Some were one-word only… blue. Green. Red. But many were poetic, florid, beautiful! ….lavender like the soft dawn before the sun rises over the horizon outside my window…. Baby blue, to match the eyes of my infant, sleeping in my lap as the dappled sun splashes warmth over us.
  • Immediate gratification: if you said, “pink”, you’re in luck. All pink shirts and tops are 20% off on the Lane Bryant website. Don’t forget to use the code ‘pink’ when you check out.
  • Mine the data – the Lane Bryant buyer will be placing orders for lavender bras and panties for next season!
  • This kind of crowd sourcing is applicable to all kinds of industries. Vehicle manufacturers can determine what color cars will sell best, what features customers are missing in this year’s model that they can add to next year’s model. And what features no one cares about.
  • Go ahead. Ask them anything. They’ll tell you what they want and even how much they are willing to pay for it.
  • Now those of you who still have enough caffeine left over from this morning are thinking, “That’s all very interesting, Gillian. But customers don’t really know what they want. They want whatever new, shiny thing you put in front of them at an affordable price.
  • And you’d be right. In many cases, people follow whatever trend is ‘out there’, because they follow the thought leaders, the fashion trend setters, and they’ll buy whatever you tell them is fashionable this year.
  • The actor Danny DeVito played the role of a merger and acquisition trader in a film made at the end of the 20th century. He gave a wonderful speech that included a story about buggy whip manufacturers. He said, “I bet that the last buggy whip manufacturer on the planet was the best buggy whip manufacturer. But you wouldn’t have wanted to be an investor in that company. That entire industry was going to die no matter what you wished for.”
  • Many industries don’t dream of crowd sourcing ideas around their product line. And it’s exactly these industries I’d urge to get involved as fast as humanly possible.
  • I think there’s a huge role for crowd sourcing ideas around details, features, and specifications of your existing product lines. You can improve your chances of having things fly off your shelves while your competition takes a shot in the dark, spends huge amounts promoting the hell out of whatever they made, and hopes for the best.But some people don’t ask.
  • When Steve Jobs died a couple of weeks ago, we took a moment to take stock of an amazing life, burned out early, as geniuses often do. Jobs really was a luminary in the field of inventors. He stands up there with the likes of Thomas Edison, R Buckminster Fuller, and Galileo. He saw a vision of the future that no one else could see. He didn’t ask his customer what they wanted. They couldn’t tell him, because they did not know what was possible.
  • Some basic necessities simply don’t require crowd sourcing information. But, the more I think about those ‘basics’ – toilet paper, salt, concrete, grass seed, paint, socks – the more I can see ways for the manufacturers and/or the marketers of each of these products might benefit from asking some cogent questions of their customer and potential customer base.The large central swath of the products and services are well served by crowd sourcing answers to thoughtful questions about how customers use current products, what they wish for, related needs that might be met with new products, and more. Think of it as innovating based on a communication between designers, producers, and customers. It’s not a one way flow of information. Take responses in context. Answers are not non-negotiable edicts; they are input to be considered when making product and sales decisionsAnd Finally there’s the top triangle, in which you find the movers and shakers in the world of invention. While genius requires the ability to envision a future the rst of the world cannot envision, even in this arena, there are times when crowd sourcing – communicating with customers and Raving Fans – can improve a brilliant product. BMW has a famous case study around using social media to engage its most ardent fans to share their ideas around making BMWs even better than they are today.
  • There is a place for crowd sourcing. Ask your community of customers and engaged fans how they want to engage with you. Don’t necessarily ask what they want in the way of products. They may not know what they want until you show it to them. But, once you’ve created your stroke of genius, you might want to ask what color they’d like to see it in.
  • A strong social media based brand community will protect you and support you when trolls attack you online and off. Image credit: http://fellowshipofminds.wordpress.com/2010/12/31/geico-commercials-ermey-unloads-on-obama/
  • There is a place for crowd sourcing. Ask your community of customers and engaged fans how they want to engage with you. Don’t necessarily ask what they want in the way of products. They may not know what they want until you show it to them. But, once you’ve created your stroke of genius, you might want to ask what color they’d like to see it in.
  • There is a place for crowd sourcing. Ask your community of customers and engaged fans how they want to engage with you. Don’t necessarily ask what they want in the way of products. They may not know what they want until you show it to them. But, once you’ve created your stroke of genius, you might want to ask what color they’d like to see it in.
  • Image credit: http://baseballsnatcher.mlblogs.com/tag/purple-row-seats/
  • Image credit: http://www.careerealism.com/network-offensive/and
  • Ummmm. Yeah! You do!
  • Ummmm. Yeah! You do!
  • Ummmm. Yeah! You do!
  • Image credit: http://www.careerealism.com/network-offensive/and
  • Ummmm. Yeah! You do!
  • Image credit: http://www.careerealism.com/network-offensive/and
  • Look for the lift… no! not that one. The LIFT… no! Image credits: http://www.elevatorpreservation.com/2009/09/antique-elevator-for-sale-in-london-uk/ and http://www.criticalbench.com/lifting-weights-russia.htm
  • Look for the financial lift. Increased sales and conversions AFTER the SEO and/or SMM initiative. Follow it over time. A minimum of 6 months commitment is required. SEO is not a short term play.
  • Transcript of "2012 05 SEMcamp Kyiv The ROI of Search and Social "

    1. 1. The VALUE of Search and Social Gillian Muessig, President & Co-founder, SEOmoz GlobalEIM| November, 2011
    2. 2. ROI is a business metric,not a media metric. ROI
    3. 3. ROI is media agnostic100% ROI
    4. 4. Every resource has a cost ROI
    5. 5. Non-financialpositive and negative KPIs Clicks, hits, complaints, CTR, press, content views,brick and mortar store numbers, employment apps, FB friends, likes, comments, and shares,blog comments, UGC submissions, social mentions, twitter followers, tweets and re-tweets NOT ROI
    6. 6. You Get the Idea NOT ROI
    7. 7. Those are non financial KPIs not ROI NOT ROI
    8. 8. Financial ROI of Social Media ROI
    9. 9. Average salesbefore SMMinitiative ROI
    10. 10. Average salesafter SMMinitiative ROI
    11. 11. Before AfterAvg growth 10% Avg growth 16% ROI
    12. 12. If your cost < Increases receipts ROI
    13. 13. You have achieved a positive ROI. ROI
    14. 14. Ok. We’re done. Bye bye. ROI
    15. 15. What?You want more? Ok. ROI
    16. 16. An increase in POSITIVE KPIs Positive KPIs
    17. 17. Number of Customers Positive KPIs
    18. 18. Average Dollar Value per Purchase Positive KPIs
    19. 19. Customer Lifetime Value Positive KPIs
    20. 20. Increased Average Margin Positive KPIs
    21. 21. Decrease in returns Negative KPIs
    22. 22. Decrease in customer complaints Negative KPIs
    23. 23. Decrease in left over stock Negative KPIs
    24. 24. Decrease in bad sentiment Negative KPIs
    25. 25. Decrease in need for paid ads Negative KPIs
    26. 26. Decrease in recalls or failed new products Negative KPIs
    27. 27. Ok. NOW we’re done. Bye bye. ROI
    28. 28. No. Wait. There’s more. Think more deeply about VALUE
    29. 29. LINKS: HOW WE GET AROUND
    30. 30. LINKS: VOTES OF POPULARITY
    31. 31. LINKS: A REALLY BAD SIGNAL
    32. 32. LINKS: A REALLY BAD SIGNAL
    33. 33. A BETTER SIGNAL SOCIAL SIGNALS ARE BETTER
    34. 34. NEWS EVENT
    35. 35. Users: 50mm 750mm 200mm 120mm 10mmUsers: 14mm Millions 14mm 6.5mm TWITTER: <60 SECONDS
    36. 36. 22 MINUTES
    37. 37. RADIO: 1+ HOURS
    38. 38. TV: PM NEWS
    39. 39. TV: PM NEWS
    40. 40. SOCIAL SIGNALS
    41. 41. NEWS SOURCE FASTER DELIVERY
    42. 42. GOOGLE PIVOTS
    43. 43. IMMEDIACY
    44. 44. SENTIMENT
    45. 45. So what good is it to me? ROI
    46. 46. FOCUS GROUPS ARE BOGUS
    47. 47. FOCUS GROUPS ARE UNCOMFORTABLE
    48. 48. YOU’RE NOT PARANOID
    49. 49. IT’S THE BEST WE HAD
    50. 50. REPLACES FOCUS GROUPS FASTER ANSWERS, LARGER DATASETS
    51. 51. CROWD SOURCINGImage credit: http://www.businessesgrow.com/2011/08/31/the-top-five-crowdsourcing-mega-trends/
    52. 52. FUND RAISING WITHOUT MIDDLEMENImage credit: http://www.psn.ie/parents_pa/other-fundraising-events.html
    53. 53. CROWD SOURCE SIMPLE TASKS
    54. 54. CROWD SOURCE SIMPLE TASKS
    55. 55. Involvement Marketing CROWD SOURCE MARKETING
    56. 56. ASK ME ANYTHING
    57. 57. What color do you feel like this morning?
    58. 58. What color do you feel like this morning? A SIMPLE QUESTION
    59. 59. More than 1000 responses within 1 hour MARKETERS SOULS SING!
    60. 60. POETRY
    61. 61. WHAT CAN YOU DO WITH IT?
    62. 62. HEADS UP, CORPORATE BUYERS!
    63. 63. INDUSTRIAL DECISIONS
    64. 64. ASK US; WE’LL TELL YOU
    65. 65. GET SOME PERSPECTIVE
    66. 66. MASS MARKETED PRODUCTS
    67. 67. OPM
    68. 68. INDUSTRIES IN NEED OF PIVOTING
    69. 69. SOME PEOPLE DON’T ASK
    70. 70. THOUGHT LEADERS
    71. 71. Apple - BMW Crowd source everything – R&D, improvements, innovations, marketing Governments, NPOs, for-profitsBasic Necessities - no need to crowd source around these, except perhaps marketing THOUGHT LEADERS DON’T ASK DIRECTIONS
    72. 72. FINAL THOUGHTS
    73. 73. ONLINE REPUTATION
    74. 74. The ROI of Social Media = Adjusted Gross Receipts less Cost of Initiative FINAL THOUGHTS
    75. 75. The VALUE ofSocial Media is much more FINAL THOUGHTS
    76. 76. So how do I sell this to a client or my boss? ROI
    77. 77. Why should I spend money on SEO? ROI
    78. 78. We’re all clicking on Organic SERPsPaid <20% ofmarketing budget >80% of marketing budgetOrganic CTR
    79. 79. All the money is spent on Paid AdsPaid 88% ofmarketing budget 12% of marketing budgetOrganic CTR
    80. 80. SEO represents a huge potential for ROI CTR
    81. 81. Fine. But I do really need to be #1? ROI
    82. 82. Do I really have to rank #1? CTR
    83. 83. How will I know SEO made me money? ROI
    84. 84. Look for the lift ROI
    85. 85. Yes! That lift! ROI
    86. 86. PROMODO12• Twitter: @SEOmom• Blog: www.seomoz.org/blog• Email: gillian@seomoz.org
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