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Effective Social Media Measurement Strategies

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UNDERSTANDING AND IMPLEMENTING AN EFFECTIVE SOCIAL MEDIA MEASUREMENT STRATEGY.

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Effective Social Media Measurement Strategies

  1. 1. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Hello!
  2. 2. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. UNDERSTANDING AND IMPLEMENTING AN EFFECTIVE SOCIAL MEDIA MEASUREMENT STRATEGY Best Marketing, Tallinn April 22nd 2015
  3. 3. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. AGENDA • Who are DigitasLBi? • How can businesses demonstrate and measure ROI from social media activities? • What is social media measurement and how can you use it to improve other areas of your business? • What should businesses measure? • How to avoid common mistakes? • Q&A session
  4. 4. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  5. 5. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WE ARE A GLOBAL MARKETING AND TECHNOLOGY AGENCY THAT HELPS BUSINESSES TRANSFORM FOR THE DIGITAL AGE.
  6. 6. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Sweden 150 ONE NORDIC FAMILY Norway 30 Copenhagen 70
  7. 7. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. 8 USA 2850 NORDICS 250 UK 900 EUROPE 1000 APAC 1100 6000+ PEOPLE 40 OFFICES 25 COUNTRIES 6000+ PEOPLE 40 OFFICES 25 COUNTRIES OUR NETWORK
  8. 8. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHO WE WORK FOR
  9. 9. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WE CREATE AWARD WINNING WORK
  10. 10. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. 450 1 Petabyte 13 Million Data scientists Globally Of data processed monthly Data calls managed every minute THE LARGEST DATA SCIENCE TEAM OF ITS KIND AMONGST AGENCIES
  11. 11. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. “Our preferred agency partner.” “They know how to work with us better than anyone else.” “We select them over other agency partners for their ability to act quickly to adopt new technology.” CAROLYN EVERSON: VP, GLOBAL MARKETING SOLUTIONS, FACEBOOK ADAM BAIN: PRESIDENT, TWITTER TORRENCE BOONE: MANAGING DIRECTOR, AGENCY BUSINESS DEVELOPMENT PARTNERS IN INNOVATION
  12. 12. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. • An Englishman living in Gothenburg, Sweden • An DigitasLBi veteran of 4 years • Working with social media & analytics since 2005 • Current clients include; Nicholas Bean Senior Analyst – Sweden @nickobeano WHO AM I?
  13. 13. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. HOW DO YOU MEASURE THE ROI OF SOCIAL MEDIA? The same way you would with anything else
  14. 14. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  15. 15. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. HOW MUCH DID THAT DECISION COST?
  16. 16. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. • Each player guaranteed $49,000 just for showing up… • Winners will receive $97,000 • 53 man roster on each team $49k * 53 = $2,597,000 Losing team $97* 53 = $5,141,000 Winning team - $2,544,000 (€2,351,419) Opportunity Cost = WE CAN DO THE MATH…
  17. 17. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  18. 18. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. $4.5 MILLION Source: Wall Street Journal - January 2015
  19. 19. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  20. 20. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. REAL TIME MARKETING • Content created on the fly - a responsive approach to events as they happen • Designed to appeal to a specific audience • Typically: Funny, creative – the aim being to connect with consumers in the moment with a service they want or need as they need it • The most famous example of this being…
  21. 21. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  22. 22. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  23. 23. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. THE OREO TWEET… • Please check out Mark Ritson Vs. Social Media on YouTube • Oreo had about 69k followers at the time it was tweeted • Using one of our social research partners, Crimson Hexagon, I estimate that the maximum number of impressions is circa 21 million • But not everyone sees every Tweet – typically it is a very low proportion of followers <5% • Lets be generous and say it was as high as 15%
  24. 24. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. 3,138,065 IMPRESSIONS 15% of 20,920,436
  25. 25. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. ROUND 1 TO TV… Est, 3.1 million impressions Est, 50.9 million impressions Vs. CPM €82.76 $4.5 million / 50.9 million est. impressions ?
  26. 26. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. DISTRIBUTION /REPUTATION MANAGEMENT
  27. 27. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. THE OREO TWEET… • 360i who made the Oreo ad had a “war room” consisted of 15 people; Strategists, Monitors, Analysts, Creatives, Executives etc • Most big agencies offer this service, including DigitasLBi – which we call ours Brand Live • Typically, agencies charge somewhere between €100 – €500 per hour for each employee – for sake of ease, lets say average cost is €150 per hour • 15 x €150 = €2250 per hour • Superbowls are LONG – around 10 hours of coverage = €22,500 • Plus preparation time, set-up, strategy, equipment – we can estimate the total cost to about €40,000
  28. 28. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. MORE MATH… €40,000 Est. Cost 3.1 million impressions Est. Impressions ÷ €12.74 Est. CPM =
  29. 29. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. ROUND 2 TO SOCIAL MEDIA Est, 3.1 million impressions Est, 50.9 million impressions Vs. CPM €82.76 €4.24million / 50.9 million est. impressions CPM €12.74 €40,000 / 3.1 million est. impressions
  30. 30. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  31. 31. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. REMEMBER THIS EXAMPLE? • Similar brand/product/audience to Oreo • Similar number of followers to Oreo • Similar content format • Total possible impressions of 461k – using our earlier estimates, probably closer to 69,212 • For the sake of ease, lets say 70k impressions
  32. 32. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. YET MORE MATH… €30,000 Est. Cost 70k impressions Est. Impressions ÷ €428 Est. CPM =
  33. 33. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  34. 34. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. KLM – THE SERVICE INDUSTRY BENCHMARK • Offer response via social media to queries within an hour – resolution of issues within a day • Covering Bookings, Check-in, Seating, Meals, Baggage, Fares, Flight Times, delays, planning group trips • Responses across English, French, Dutch, Italian, Japanese, Korean, Norwegian, Portuguese, Russian, Spanish, Thai and Turkish • They use Real-Time social media not (just) to advertise, but to create value and offer assistance to customers
  35. 35. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. DEFINING ROI To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. www.investopedia.com
  36. 36. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. PROBLEMS ENCOUNTERED • Unclear/undefined objectives • Measuring things you can’t change or that are too variable • Lack of attribution • Unclear reporting Gain from Investment Cost of Investment • Imprecise cost structures • Attribution of working hours • Value of assets going forward • Unclear reporting
  37. 37. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. HOW MUCH IS AN OWNED/EARNED IMPRESSION WORTH? • You can work this out… • Facebook, Twitter and other social platforms allow purchase of audience targeting to fans and friends of fans (owned and earned impressions) CPM targeting current fans or friends of fans Owned and Earned impressions x = Media value of impressions generated
  38. 38. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. USING ATTRIBUTION TO UNDERSTAND VALUE • Ideally, you should use a multi-touch attribution model • Assign credit to each touch point (media, search, social) based on actual influence on desired outcomes… • …but this is both quite complex and quite expensive for a lot of brands
  39. 39. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. • Most commonly used analytics program for sites is Google Analytics – 82% approx • Using Google Analytics and campaign coding your can very cheaply build in last click attribution into your analytics • This allows you to assign an arbitrary value to your activity on social media based on digital goal completions USING ATTRIBUTION TO UNDERSTAND VALUE
  40. 40. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Cost of Investment Return On Investment Gain from Investment - DEFINING ROI Cost of Investment =
  41. 41. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. • This single tweet made Tesla’s stock value increase 4% in 10 minutes. • That works out to about $900 million • From just 115 characters
  42. 42. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHAT IS SOCIAL MEDIA MEASUREMENT? And how can it be used to improve your business?
  43. 43. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. “Numbers are essentially just facts, and ultimately every sport is about numbers. How many points you get, how many wins you get – all numbers. It’s like watching a card-counter in Vegas playing blackjack. Once you have learned how to count cards, why would you ever go back to doing it on a hunch?” Billy Beane – The Guardian, October 2014
  44. 44. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  45. 45. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. CONTENT CONTEXT CONVERSATIONS SOCIAL MEDIA CONCEPTS & CREATIVE The ’normal’ approach
  46. 46. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. ’Conversation back’ CONTENT CONTEXT CONVERSATIONS SOCIAL MEDIA CONCEPTS & CREATIVE
  47. 47. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. RIGHT CONTENT, RIGHT AUDIENCE, RIGHT CHANNEL, RIGHT TIME
  48. 48. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHY IS THIS APPROACH IMPORTANT? Because nobody cares about your brand…
  49. 49. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHY DO PEOPLE USE SOCIAL MEDIA?
  50. 50. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. BUT NOT…
  51. 51. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. “I try to share only information that will reinforce the image I'd like to present: thoughtful, reasoned, kind, interested and passionate about certain things.” Source: NY Times “The Psychology of Sharing: Why Do People Share Online”
  52. 52. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. IMPACTING FOUR FUNDAMENTAL AREAS Opinion Identity Behavior Impact What people think & say about a brand, product, or service etc Who that audience is; demographics, sociographics etc How an audience behaves. What do they share? What do they like? Who influences them? How brands can influence all of these areas
  53. 53. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  54. 54. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  55. 55. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. TAKE MY MONEY… • HBO is identifying people on Twitter that tweeted #takemymoneyHBO 3 years ago and asking them to purchase its product • Right content, right audience, right channel… • …two years too late?
  56. 56. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Jordan
  57. 57. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Jordan
  58. 58. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Jordan
  59. 59. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. ”Not really sure how to feel about it. It’s something in the way you move. Makes me feel like I can't live without you. It takes me all the way. I want you to stay.”
  60. 60. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.
  61. 61. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHAT SHOULD YOU MEASURE?
  62. 62. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. MORE THAN JUST A LOAD OF LIKES Social Media Community Active Community Total Customers Potential Customers
  63. 63. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. HOW MUCH IS A “LIKE” WORTH?... NOT A LOT. = $0.05 – $0.10 Per “like” ? = $0.01 – $0.04 Per “follower ? If it sounds too good to be true, it probably is.
  64. 64. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHAT % OF LIKES AND FOLLOWERS ARE REAL? • In 2013 Twitter confirmed that about 4% of its users were fake – probably a higher number now • That works out to about 11.3 million • In 2014 – Facebook confirmed that it “didn’t know” how many of its users were fake… • … but that it was somewhere between 5.5% to 11.2% • That works out to between 74.2 and 151.2 million
  65. 65. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHAT % OF LIKES AND FOLLOWERS ARE REAL?
  66. 66. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. WHAT DOES SUCCESS LOOK LIKE? • Every business is different • What is a great measure of success for another company, or even a competitor might not be right for you, but… • Social media is only one tool by which you can communicate with customers/audiences • Social media can’t do everything, in reality it has a limited span of influence • Your social media strategy should be interwoven within the wider digital objectives of your company
  67. 67. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. DEFINING SOCIAL MEDIA KPIS AWARENESS ENGAGEMENT CONSIDERATION CONVERSION ADVOCACY SMART KPIs How many people saw the content? Did people share, comment, like the content? How many responses were generated? Did we generate a sale/goal? Did we get people to talk/share?
  68. 68. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. Define • Rapid audit of existing business KPIs • Work with stakeholders to eliminate/add KPIs as required • Undertake stakeholder education to ensure clear understanding of KPI vs. diagnostic measure. Design • Information architecture is vital irrespective of report delivery method • Consult our information architect specialists to ensure important information is presented in the clearest manner possible. Report Channels • Capture internal needs for cross- channel and channel specific reporting. • Additional customized channel specific content and timing is provided as required. Normalize • Normalization is important to ensure comparable benchmarks to other markets. • We work to contextualize local results against global benchmarks to identify areas for performance improvement. Build • DigitasLBi prefers Tableau as a dashboard solution. • Contextualize local results against global benchmarks to identify areas for performance improvement. Automate & Integrate • Leverage APIs and data automation in order to maximize efficiency • Reduces cost whilst increasing accuracy and speed DEFINING SOCIAL MEDIA KPIS
  69. 69. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. HINTS AND TIPS How to avoid common mistakes
  70. 70. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. QUICK WINS • Keep objectives in focus - Work out what you want to achieve from a wider digital point of view • Know your audience - Use insights to create value for the customer and you will create value for the company • Learn from what you have done – understand what went well, and what didn’t. • Start small – you don’t need to introduce a multi-touch attribution model straight away to prove performance • Try to introduce attribution, even if it’s just last-click • Use UTM codes/whatever alternative you have
  71. 71. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. COMMON MISTAKES • Don’t just listen for the sake of listening • Don’t get confused by sentiment • Don’t spend all your time on reporting – spend it on analyzing • Don’t set KPIs that you cant impact or measure • Don’t focus on likes and followers too much – it is misleading and ultimately meaningless
  72. 72. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.Proprietary & Confidential. © 2015 DigitasLBi All rights reserved. TÄNAN VÄGA Any Questions?
  73. 73. Proprietary & Confidential. © 2015 DigitasLBi All rights reserved.

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