Wharton Interactive Media Initiative <br />Measuring Success of Social Media<br />Steve Ennen <br />Managing Director, Lecturer in Marketing<br />Wharton Interactive Media Initiative<br />firstname.lastname@example.org<br />www.whartoninteractive.com<br />
Wimi Overview<br /><ul><li>Brings a passionate data-driven perspective to media businesses (content distribution and information acquisition) in a way that no other business school in the world can match.
Distinguishes itself with a tight focus on the interaction between content provider and user, capitalizing on the wealth of individual-level data that is exploding at the crossroads of commerce, technology, and entertainment.
Is dedicated to bringing world-class research rigor to better understand these complex interactions in order to drive new business strategies and tactics that will reshape the media landscape.</li></ul>WHARTON INTERACTIVE MEDIA INITIATIVE<br />
Wimi Infrastructure<br />Global network of research & corporate partners<br />Researchers from Wharton, LBS, MIT, Wharton doctoral and MBA students<br />Projects underway with:<br />WHARTON INTERACTIVE MEDIA INITIATIVE<br />Funding from nine<br />Corporate Partners and key individuals to study data-related issues relevant to several industries<br /><ul><li> Wharton Lab for Publishing Innovation</li></li></ul><li>Overview<br />Today<br />Part 1 Overview,<br /><ul><li>Why you are here
Cut through the clutter<br />Buzz and business<br /><ul><li>To earn a free burger, Facebook users download the Whopper Sacrifice Facebook application and dump 10 friends unworthy of their weight in beef. After completing the purge, users are prompted to enter their addresses and the coupons are sent out via snail mail.
In about 60 days, nearly 240,000 Facebookers had been de-friended for the sake of a hamburger. That amounts to more than 7,000 coupons for free Whoppers.
Facebook stopped the campaign because of privacy concerns.</li></li></ul><li>Cut through the clutter<br />Buzz and business<br />http://www.nytimes.com/2009/01/29/fashion/29facebook.html?_r=2&pagewanted=all<br />
Cut through the clutter<br />Buzz and business<br />
Cut through the clutter<br />Buzz and business<br />No evidence of increased sales<br />
Cut through the clutter<br />Hot social media metrics<br /><ul><li> Influencers
Real time</li></li></ul><li>Cut through the clutter<br />Influencers <br />
Cut through the clutter<br />Influencers<br /><ul><li>What is an influencer? </li></ul> Dark and Disenfranchised<br /> Small Town Pride<br /><ul><li> How valuable are influencers?</li></ul> Marketers hope to affect influencers to short cut mass marketing<br /> The research shows…<br />
Cut through the clutter<br />…not so much<br />Becker (1970) and Watts and Dodds (2007) have raised doubts on the importance of opinion leaders in speeding up the acceptance of new products<br />More recent research by Coulter, Feick and Price (2002) and Godes and Mayzlin (2009) provides conflicting answers to the question whether heavy users are more influential than light users, an issue of obvious relevance to the identification and targeting of likely influentials.<br />“Opinion Leadership and Social Contagion in New Product Diffusion” <br />RaghuramIyengar, Christophe Van den Bulte<br />The Wharton School, University of Pennsylvania, et al<br />
Cut through the clutter<br />Bottom line: <br />influencers have smaller spheres of influence than current buzz purports. <br />
Cut through the clutter<br /><ul><li> Engagement </li></ul>(verb, not a metric)<br />“Seriously though, I am surprised that your analysis pegs me as one of the most engaged users to your site. I subscribe to your RSS feed via Yahoo, and eventually get around to reading each new posting, but my access is very occasional. Your email to me was the first that I was aware of the posting.”<br />posting on analytics site by its “most engaged visitor”<br />
Cut through the clutter<br />Sentiment analysis<br />Sentiment analysis or opinion mining refers to a broad area of natural language processing, computational linguistics and text mining. Generally speaking, it aims to determine the attitude of a speaker or a writer with respect to some topic. The attitude may be their judgment or their affective state (that is to say, the emotional state of the author when writing) or the intended emotional communication (that is to say, the emotional effect the author wishes to have on the reader).<br />
Cut through the clutter<br /><ul><li> Perceived characteristics of the company and brand
Most effective methods and venues for engaging with consumers
Keywords and trends for effective marketing strategies</li></li></ul><li>Cut through the clutter<br />
Cut through the clutter<br />Earned vs. paid media<br />Union Square Ventures partner Fred Wilson sees the future<br />As "earned," not paid, media <br /><ul><li>Earned media: viral, usage, utility, UGC, conversations
(Owned): brand-created content with the hope of moving to earned</li></ul>USV is funding companies that address the new marketing paradigm, from earned-media platforms such as Twitter and social video site Boxee<br />
tomorrow’smeasurement<br />The next challenge<br />The data collection radically increases speed through<br />Real time measurement<br />
What isthe real-time web?<br />“Real-time is the hottest topic now” <br />Facebook executive, Jan 21 2010<br />Google recently declared real-time search to be one of the biggest unsolved challenges it faces. Announced real-time search in December. <br />Google’s inked partnerships with both Facebook and MySpace to pull in data in real-time. For Facebook, that means public Facebook Pages, and for MySpace, it means any stream data that is publicly available. This is on top of the partnership that the company announced with Twitter in October.<br />
What isthe real-time web?<br />NYTimes put a link to a new real-time view of all its news stories on the front page of its site. <br />Facebook announced a new feature that will let users be notified instantly when their friends interact with media related to themselves on the site.<br />
What isthe real-time web?<br />Real-time web is the acceleration of the exchange of information brought on by the adoption of new technologies<br />Ubiquity<br />Ubiquity disrupts former paradigms and<br />creates new business opportunities<br />
What isthe real-time web?<br /><ul><li>Real-time collaboration – Google Wave
Measuring Blogs<br /><ul><li> Blogs are, essentially, real time
Reliable gauge of sentiment</li></ul>From a marketer’s perspective there are two ways to measure your blog strategy<br />1. The importance of your own blog<br /> new and returning visits links<br /> Google Webmaster Tools or Bing Webmaster track inbound links<br />2. The interaction with another blog<br /> authority<br /> readership<br />
measuring blogs<br />How is Technorati Authority calculated?<br /><ul><li>Authority is calculated based on a site’s linking behavior, categorization and other associated data over a short, finite period of time.
A site’s authority may rapidly rise and fall depending on what the blogosphere is discussing at the moment, and how often a site produces content being referenced by other sites.
The new Authority calculation differs from the past version, which measured linking behavior over a longer 6 month timeframe.
Links in blogrolls don’t count towards Authority, as they are not indicative of interest in relevant content
Authority is on a scale of 0-1000. 1000 is the highest possible authority</li></li></ul><li> measuring blogs<br />How is Technorati Authority calculated?<br />How does topical Technorati Authority work?<br /><ul><li> Topical Authority measures a blog’s influence within its subject category.
Blogs will appear ranked by topical authority within Technorati’s blog directory.
Factors include linking behavior from blogs and posts in the same category, how well a blog's overall content matches the category in question, and other associated data.
It’s possible for a blog to have authority in several different categories. The authority in each category may be different.</li></li></ul><li>measuring blogs<br />
other social media<br />Twitter<br />Many people, including scholars, advertisers and political activists, see online social networks as an opportunity to study the propagation of ideas, the formation of social bonds and viral marketing, among others. <br />This view should be tempered by ﬁndings that a link between any two people does not necessarily imply an interaction between them.<br />
Sentiment</li></li></ul><li>Facebook measurement<br />“Despite the potential of social ads where the social actions of your circle of friends could make the ads more targeted, none of the anticipated positive effects were observed. Despite the promise of mass reach, there was not the corresponding attention or clicks. And despite the use of demographics-based targeting, there was no statistically significant difference between different targets nor the control sample, running during the same time period.”<br />Dr. Augustine Fau<br />SVP, digital strategist MRM Worldwide<br />
Gaming measurement and metrics<br />Social Gaming<br />
Gaming measurement and metrics<br />Gaming Measurement and metrics<br /><ul><li>How many of the new registered users turn out to be a monthly active user and how many of them are daily active users (DAUs), and what percentage of those daily active users turn out to be purchasers.
The churn rate for social games is high — two to three months for most titles. A good chunk of players — 25% to 33% — play a particular game two to three months before moving on</li></li></ul><li>Gaming measurement and metrics<br />Examples<br /><ul><li>Playdom, sold more than $200,000 of virtual pink Volkswagen Beetles in two days. Its revenue is about $75 million this year
On a recent two-day period, Zynga sold 100,000 "meat grinder" machine guns & 80,000 body armor suits.
Mafia Wars, for example, $10 will buy 42 reward points, enough to purchase a 9mm pistol.</li></li></ul><li>Gaming measurement and metrics<br />The K factor: the k-factor in this context is itself a product of the rates of distribution and infection for an app. <br />Distribution measures how many people, on average, a host will make contact with while still infectious and "infection" measures how likely a person is, on average, to also become infected after contact with a viral host. <br />That is, what is the inherent virality of the application.<br /> (53% said a friend or family member recommended the game).<br /><ul><li>For a new registered user, how many more registered users will that give you?
Then you have to look at the quality of users, </li></ul>as defined by the play rate. <br />
Basic, universal marketing metrics<br /><ul><li>Impressions (exposures and opportunities to see)</li></ul> -an impression is generated each time an advertisement is viewed<br /> -number of impressions achieved is a function of an ad’s reach - multiplied by it’s frequency<br /> -Impressions do not account for quality of viewing<br /><ul><li>Gross rating points – impressions divided by the number of people in the audience for the advertisement. Impressions expressed in relation to the population. GRPs are cumulative across media vehicles
Net reach/reach number of people who see a message/advertisement
Average frequency- average number of times an individual receives an advertisement given that he or she is exposed</li></li></ul><li>Basic, universal marketing metrics<br /><ul><li>Frequency response functions – models the reaction of a population to exposure to an advertisement
Effective reach –measures the portion of an audience that is exposed to an advertisement enough times to be influenced
Effective frequency – number of times an individual must see an advertisement in order to register the message
Share of voice – quantifies the advertising “presence” of a brand
Pageviews – number of times a webpage is served
Rich media display time - average time rich media is displayed per viewer
Clickthrough rate number of click-throughs as a fraction of the</li></ul> number of impressions<br />
Basic, universal marketing metrics<br /><ul><li>Cost per click – ad costs divided by # of clicks generated
Cost per order – ad costs divided by number of orders generated (measures cost effectiveness of advertising)
Cost per customer acquired – ad costs divided by # of customers acquired
Measuring social media success<br />Four failures of measurement & analytics<br />1. Information is ineffectively shared within the organization - Everyone in the strategic process needs to know<br />2. Goals and the metrics themselves are poorly defined - You should not be spending money or building campaigns just to bring people to your site, you must bring people to your site with a specific goal in mind<br />
Measuring social media success<br />Four failures of measurement & analytics<br />3. Companies either don’t take action or take improper action on results<br />The secret to truly successful marketing is actionable measurement. Measuring your results alone isn’t enough; the key to feeding them back into your sales and marketing process.<br />4. No holistic or cross-platform synchronization<br />
Measuring social media success<br />25 MEDIA MAXIMS, Ken Auletta<br /><ul><li> Passion Wins:
There are no Certitudes: “Today, Google appears impregnable. But a decade ago so did AOL, and so did the combination of AOL Time Warner. “There is nothing about their model that makes them invulnerable,” Clayton Christensen, Harvard business historian and author</li></li></ul><li>Contact<br />Steve Ennen, <br />Managing Director,<br />Lecturer in Marketing<br />The Wharton School, University of Pennsylvaniaennen@wharton.upenn.edu<br />www.whartoninteractive.com<br />WHARTON INTERACTIVE MEDIA INITIATIVE<br />