Dirk Singer - #SocialCloud Presentation on Social Media and ROI
Social media and ROI@dirktherabbitthe!verrproject.tumblr.com
• It has changed the way we consumenews, the way news is shared, andthe way news breaks• It has changed the way wecommunicate and connect• It has changed what we share aboutourselves• It has changed political discourse• It has changed the way we learn• It has changed how we talk about,and interact with, brandsSocial media haschanged the world
Why is a medium that has had such a profoundimpact on society being questioned?Social media + ROIAdvertising + ROIPR + ROISEO + ROIdirect mail + ROI0 15000000 30000000 45000000 60000000A highly scienti!c snapshot according to Google (search results)
Haven’t we been here before?“Want to know the truth aboutmost social media tra!c? Itsgarbage.”Aaron Wall, WebPro News, Jan 2008
The backlash of the sceptics?“Brands should abandon social networks if they are unable to buildcommunities of a million consumers, according to Philip Gladman, Diageoswestern Europe white spirits marketing director."Unless you are going to get a million, dont bother... Theres no pointhaving a little Facebook community bubbling along," he said."Stick it in TV", is what brands in this predicament should do with theirmarketing spend, he added. "Build and they will come", the famous quote from the Kevin Costnerbaseball !lm ‘Field of Dreams’, was "rubbish" when applied to socialmedia, argued Gladman. (Marketing, March 2012)
“So what are you really going to do for aliving” (my grandmother when I was a PR graduate trainee)0.34% of Black Friday onlinesales referrals came fromsocial media: “The numberswill need some seriousspinning by social mediagurus”(Tom Gara, WSJ)According to Coke...”it turnsout that having a lot ofonline buzz only impactsshort-term sales by 0.01percent“Thats a pretty big dealcoming from a companythat has 61 millionFacebook fans and 687K-plus Twitter followers”(Business Insider)“The relatively low trustin social marketing tallieswith a recent Gartnerreport that found U.S.marketers rankedspending on thecorporate website asmore likely to result in“marketing success” thanspending on social mediasites such as Facebook”(Techcrunch)
“Social media denizens are, by and large, in it for themselves. They’ll promoteyour brand if it means their share of a cool $20 million...everyone likes to patthemself on the back and feel like they’re serving their fellow man, whetherthat’s retweeting a funny video or donating money to a favorite charity. But ifyour fans aren’t buying your product....they’re not really fans at all.”(Lucid Hart blog, April 2013)“Experts say that social media’s ROI is best measured in thelong-term. But you know what I think? They’re using you.
Why is this even news?1 - No, a post on Coke’s Facebook page won’t make its 60+ million fansstop whatever they are doing, and run out to the nearest supermarketclutching their wallets2 - No, by and large a tweet about a brand generally won’t immediatelycause someone to leave Twitter and start going through the onlinecheck-out3 - No, people don’t like to see ads in their social media news stream (justask teens and Facebook), and they don’t like it when brands try and gofor the hard sell in ‘me’ time
We need to shiftthe debate• If you really want instantgrati!cation, there are ways ofdoing so (for example -@jetbluecheeps)• But if that’s the aim, let’s admit it,sometimes other routes (e.g. atargeted email campaign to yourdatabase) may be better• Why are we even talking as ifsocial media / social mediamarketing operates in a vacuum -it doesn’t• No, social media doesn’t alwaysdrive short-term sales. Here’swhat it does do
It’s the most trusted source of brandadvertisingNielsens global trust in advertising study involving 28,000consumers across 56 countries tells us that consumeropinions online, very often from complete strangers, havethe second highest trust factor behind word of mouthrecommendations, and ahead of editorial coverage.
Trust in ‘advertising’“When it comes to traditional, paidmedia, while nearly half of consumersaround the world say they trusttelevision (47%), magazine (47%) andnewspaper ads (46%), con!dencedeclined by 24 percent, 20 percent and25 percent, respectively, between2009 and 2011.“Still, in 2011, overall global ad spendsaw a seven percent increase over2010, according to Nielsen’s mostrecent Global AdView Pulse. Thisgrowth in spend was driven by a 10percent increase in televisionadvertising.”
Over time advocates = salesBeing exposed to a brands social media feed wont make you go out and buy onthe spot, but it will over time make you spend more - 20%+ more according toBain & Company.And if you are really engaged, you end up becoming almost an uno"cial salesagent for a brand. Taking care of your most engaged followers makescommercial sense. According to Napkin Labs, one super fan is worth 75 normalfans in generating likes, comments and engagement on your behalf.
It’s an incredibly good customer retentionand acquisition toolA piece by Neuromarketer Roger Dooley cites evidenceto show that simply responding to a negative commentonline will cause 1/5 to revise their opinion and actuallybecome loyal customer.What brand wouldnt welcome a cost e#ective andproven way of turning detractors into brand advocates?
• From SEO to advertising, itincreases the e#ectiveness ofmarketing campaigns• It’s a crucial issues and crisismanagement tool - many brandshave learned that one the hardway• It’s a good way to target speci!ccommunities and groupsAnd there’s more
The last word goes to Coke“Reach, engagement, love and value are the markers of success we usefor our campaigns. We measure these in a variety of ways, often with ourmedia partners. In beta testing with Facebook, weve been able to trackclosed-loop sales from site exposure to in-store purchase with verypromising initial results that are above norms for what we see with othermedia.“But again, no single medium is as strong as the combination of media. Wesee this !rst-hand in our campaigns that integrate TV and social. We knowour target consumers -- teens and young adults -- are consuming media onmultiple screens in single sessions. This means the TV is on, a laptop isopen and a smartphone is in hand. For marketers, this requires having asingle, integrated conversation across those screens. When we do thiswell, we create signi!cantly higher impact than any of those screens coulddo on their own.”(Wendy Clark, Coca Cola)