The ROI of Social Media

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The ROI of Social Media is a presentation given by Dorian Benkoil of TeemingMedia.com at Social Media Weekend at Columbia University's graduate school of journalism.

It delves into how to figure out whether what you're spending, the effort you're putting into social media, is justified, and how to make it work better to achieve your goals -- all of which is something Teeming Media and Dorian do regularly for publishers.

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The ROI of Social Media

  1. 1. ROI of Social Media Dorian Benkoil! Teeming Media! (Attract, Engage, Activate)! @DBenk! Jan. 2012
  2. 2. Roi Of Social MediaFrom a Publisher’s Perspective:!Does the benefit justify the cost?! ! Monitoring! ! Calculating! ! Understanding!Less obvious! ! Benefits! ! Costs! ! What are they?!Pointers!Real-World ! ! Examples! ! Tools © 2012
  3. 3. Quantitative And Qualitative !! Assign values where possible!! Set goals!! Measure progress toward them! ! ! $ © 2012
  4. 4. Awareness (Traffic) © 2012
  5. 5. The Clickthrough © 2012
  6. 6. Impact of Social Media
  7. 7. A Real Example © 2012
  8. 8. Breaking it DownFacebook: 32,979 x 1.96 = 64,329 pageviews Twitter: 2,503 x 2.13 = 5,331 pageviews © 2012
  9. 9. What’s a Pageview Worth? • RPM! Placements per page! ! # Ad ! CPM per placement! ! Total placements! ! Average Sell Through Per Placement (percentage)! ! Other revenue! - eCommerce! - events! - etc. © 2012
  10. 10. $20 CPM!$25 CPM!$5 eCPM!!$50 total!X 80% of pages!X100% sellthrough!!$40 average RPM! © 2012
  11. 11. The Value Every 1,000 pageviews = $40! ! Facebook! 64,329 pageviews / 1,000 = 64.329!64.329 * $40 = $2,585.55!! Twitter! 5,331 pageviews / 1,000 = 5.331!5.331 * $40 = $213.26! ! Direct! 80,299 Visits X x 50% = 8,387 *2.11 = 17,697 pageviews! 17,697 pageviews / 1,000 = 17.7! 17.7 * $40 = $707.88! ! © 2012
  12. 12. The Total © 2012
  13. 13. The Profit or Loss Expenses! Staff! ! 60 hours * $25/hour = $1,500! Tools = $100! $1,600! ! Profit ! on social media: ! $3,506.69 - $1,600 =$1,906.69 © 2012
  14. 14. Really? © 2012
  15. 15. Facebook MediaShift’s share of page views = 7.8%! © 2012
  16. 16. Without PBS SM Referrals• $467.56 - $1,600 = ($1,132.44)! ! That’s loss of $1,132.44 on a direct clickthrough basis. © 2012
  17. 17. More FactorsThere’s more than direct clickthrough. © 2012
  18. 18. Lifetime Value• Equal to the revenue accrued to a user over their entire relationship with the site (or product)! !• Calculate average:! ! Number of visits / month! ! * Pageviews per visit! ! * Number of months! !• Segment New Visitors! ! How many become repeat visitors! ! What is their lifetime value?! ! Add that to totals © 2012
  19. 19. Other Measurable Benefits• Additive Over Time! •SEO! •Network Effect! •Pickups! ! ! © 2012
  20. 20. Other Measurable Benefits• Harness Unpredictable! ! Discovery! - new network! - new community! ! Viral Effect! ! Others may see and pick up © 2012
  21. 21. Other Measurable Benefits!• Monetize it Directly © 2012
  22. 22. More Benefits• It’s great CRM! ! Outreach! ! Understanding! ! Community!• Information gathering! ! Tips, trends, info! ! Who’s reading and how! ! What’s working and not?! ! Other social media! ! Competition! ! Influencers bit.ly/jE0SEo! ! MediaShift . A Twitter Timeline on the Killing of Osama Bin Laden | PBS! 205 " Clicks" This bitly link bit.ly/jE0SEo was added by markglaser © 2012
  23. 23. You Can Improve• Testing! ! Language! ! Time of Day! ! Influencers / Outreach! ! Etc.!• Increase! ! clickthroughs ! ! effectiveness! ! revenue!• Cost Stays Constant © 2012
  24. 24. You Can Improve• Revenue Performance $20 CPM! $25 CPM! $5 eCPM! ! $50 total! X 80% of pages! X100% sellthrough! ! $40 average RPM! $45?• More Revenue (from ad impressions, memberships, contributions, etc.)! • Can you show that membership or contributions grow as friends/follows/likes/circles do? © 2012
  25. 25. Expenses• Staff Costs Can Be Decreased! ! Reporters, Editors, Executives, others integrate it into their workdays!• Relative to other outreach! ! Advertising! ! Paid PR! ! Guerrilla Techniques!• Automation Can Reduce Cost. Example tools! ! “Share This”! ! SocialOomph! ! Auto Tweeter! ! Measured Voice! ! Social Flow! ! Tweetdeck plugins! ! Hootsuite! ! Co-Tweet! ! ... © 2012
  26. 26. Re-Calculating• $467.56 - $1,600 = ($1,132.44)• $2096.27 - $1,200 = $896.27 © 2012
  27. 27. Still More ‘ROI’• Helps traditional? Numbers or demographics!• Measurement:"! • Demographic data! • Trends, including correlation with viewership, membership, contributions! • Growth!• Qualitative: !• Fulfillment of Mission (eg, spreading information to community or otherwise serving and connecting community)!• Sentiment!• Production Tool: story ideas, contacts © 2012
  28. 28. You Have to Be There • Reinforces your brand! • Your competition is! • Your consumers are! • Your advertisers are! • It’s another way to get information out © 2012
  29. 29. Tips & Force Multipliers• Learn what-works! More clever? Quotations? Controversy?! !Wording headlines? ! Time of day! ! Spacing! ! Volume! ! Twitter vs. Facebook vs. Google+ (etc.): Note engagement factors, too.! ! Other social media!• Technology! - but not spam! ! automation ! bookmarklets!• Repeats!of day! !times ! language! ! calling out different aspects of story!• Add to value - tips, links! Don’t just push yours out.! !Add conversation. ! Have personality! ! Show appreciation! ! Engender trust and gratitude! ! Learn the lingo and customs! ! Let people know when you Tweet something they did “@” them!• More advanced!Bit.ly handle?! !Get your own ! Web analytics tags? © 2012
  30. 30. ROI of Social Media Dorian Benkoil! TeemingMedia.com! @DBenk! Jan. 20I2!

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