Social Marketing The ROI


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  • Spread Ideas, Economy, Small Business
  • Society blocks out email, cold calls, tv ads, & radio ads. The new watering hole is the social mediasphere (plus google, blogosphere)
  • Traffic is growing and improving in quality (no adwords). Notice the growth in Social Media.
  • Social Marketing The ROI

    1. 1. Social Marketing: This ROI is Too Good to be True!<br />March 25th, 2009<br />
    2. 2. Today’s Topics<br />Branded Online Community Measurement<br />Kathy Warren, VP Account Planning, Powered<br />Results of the 2008 ROI Benchmark Study for Social Marketing Programs<br />Bill Harvey, President, TRA Global<br />Social Media: Why it Makes Sense and How I Prove it to Myself<br />Brian Halligan, Co-Founder and CEO, HubSpot<br />
    3. 3. Branded Online Community Measurement<br />Kathy Warren, VP Account Planning, Powered<br />
    4. 4. <ul><li>Social Marketing
    5. 5. Segment-focused communities</li></ul>Social movement creating opportunity across the Enterprise including high-potential for marketing<br />Planned as part of go-to-market strategy<br />Designed to drive:<br /><ul><li>Acquisition
    6. 6. Purchase consideration
    7. 7. Loyalty
    8. 8. Advocacy
    9. 9. Insight</li></ul>Long-term persistent strategy<br />
    10. 10. Three keys to branded online community success (and ability to measure)<br />Start with the audience segment & desired outcomes in mind, not ‘the message’ – it’s all about them<br />Give before you get - engage based on mutual INTERESTS first<br />Category second<br />Brand/products (not just the latter)<br />Listen and show that you heard<br />X<br />
    11. 11. Segment value drives critical mass & substantiates expansion<br />High<br />Pro Content<br />UGC<br />Research<br />Contribution<br />Low<br />time<br />community<br />brand<br />
    12. 12. Evolution from tactical to strategic planning<br />Business Outcomes & Actionable Insight<br />Reporting<br />
    13. 13. Social Marketing Transactional & Strategic ROI<br /><br />E-mail marketing<br />Paid Media<br />Viral/WOM<br />Total Visits<br />50% Engage<br />(in content & conversations)<br />Online Transactions<br />*Source: Averages across Powered communities CY2008<br />
    14. 14. Cumulative ROI of Social Marketing<br />Branded communities are persistent and drive ongoing return.<br />Based on typical results from Powered programs – results will vary by brand , benchmarks are established during 6-mo pilot. <br />*Online transactions are dependent on client tracking via web analytics. All other measures are tracked by Powered.<br />
    15. 15. Managing to actionable KPIs – through behavioral & primary research data<br />
    16. 16. Results of the 2008 ROI Benchmark Study for Social Marketing Programs<br />Bill Harvey, President TRA Global<br />
    17. 17. About This Study<br />Purpose of This Study<br />Equip the marketing community with the best information from which to create the most effective marketing programs in the immediate future.<br />Study Methodology<br />Self-reported consumer data collected via surveys<br />Surveys were collected approximately 6-8 weeks into experience<br />Midpoint values were used in analyzing responses regarding amount spent on purchases of relevant products<br />Sample Size = 112,183 completed surveys<br />
    18. 18. 2008 ROI Results<br />For 2008, Powered social marketing programs yielded a 60:1 ROI, a 10% increase from 2006.<br />The results would indicate that the longer the program is sustained, the higher the ROI achieved. <br />
    19. 19. 2008 ROI Comparison by Marketing Program<br />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. <br />Direct Marketing Association (DMA) 2005 Economic Impact Study, Peter A. Johnson, PH.D.,<br />MMA: “Finding The Other Half” by Erwin Ephron and Gerry Pollak, Ephron On Media website archive.<br />
    20. 20. 2008 Supplementary Findings<br />
    21. 21. Implications for Marketers<br />Give in order to get<br />Utilize a “soft sell” approach to marketing communications – inform, educate and help consumers<br />Provide the social marketing and Web experiences your <br /> customers value<br />Shift thinking away from short-term social media campaigns to long-term social marketing programs<br />
    22. 22. Social Media: <br />Why It Makes Sense & How I Prove It To Myself<br /> <br />
    23. 23. Page 18<br />Slide 18 of <br />
    24. 24. Page 19<br />Page 19<br />
    25. 25. Page 20<br />Social Media Visitors<br />
    26. 26. Slide 21 of <br />Social Media Visitor Analysis<br />Visitors<br />Prospects<br />Leads<br />Opps<br />Cust<br />
    27. 27. Page 22<br />Social Media “Reach”<br />Page 22<br />
    28. 28. Page 23<br />Thank you………<br />Page 23<br />
    29. 29. Questions?<br />Kathy Warren, VP Account Planning, Powered<br /><ul><li>
    30. 30. Facebook: Kathy Warren
    31. 31. E-mail:
    32. 32. Blog:</li></ul>Bill Harvey, President, TRA Global<br /><br /><br />Brian Halligan, Co-Founder and CEO, HubSpot<br /><ul><li>
    33. 33.</li>