There’s a lot of logo’s on this slide, many of whom I’m sure you recognize. But the point is, We work primarily with large, highly visible brands: Companies with significant regional, national and international reach, such as P&G, have needs, concerns, and challenges that differ significantly from small shops and startups. Your actions in social media are under a different magnitude of microscope, and your projects and campaigns are subject to much more extensive internal approval processes and external scrutiny. We understand that, and live it with clients just like you daily.
Expion jan 2013 jim tobin
Jim Tobin Value of Organic Social Media Marketing
About Social Media “ROI” http://bit.ly/IgROIVideo
Six models of social media marketing ROI• The Amplification Model: – how much would it cost to buy these impressions/social actions through paid media?• Value of Social Traffic versus Display: – how much does it cost to get a visitor to your site via social promotions versus display advertising?• Quality of Visitors from Social Media: – how well do the visitors being driven to a site via social media perform?• Revenue from Facebook Fans Model: – how much incremental revenue do Facebook fans generate?• Revenue from Social Media Marketing: – how many sales can be attributed to your social media marketing programs?• Social Promotions Sales ROI: – how many sales can be attributed to a special social media marketing promotion?
The Amplification ModelCalculates the value of the following: In a given time period, we generated:1) Facebook Organic Impressions 1) 75,442,874 Organic Impressions2) Clicks on Facebook Links (Facebook and Twitter only)3) Twitter Impressions 2) 4,849,246 Social Actions (Links clicked, brand mentions, organic YouTube views, blog page views)4) Clicks on Twitter Links5) Organic YouTube Views With a value of:6) Blog Page Views • $2,021,627.277) Online Brand Impressions Using Data from: On a spend of: A) Industry data on CPM for targeted online buys ($8 CPM) • $1,660,000 (Agency fees and all expenses) B) Industry average for cost-per-click advertising ($0.58 per click) C) Average cost per view for promoted YouTube videos ($0.20 per view) For a Purchase Equivalency of: D) Parts of “Social Equivalent Ad Value Model” created by Tourism Ireland (http://scr.bi/KjPwEd) • $1.21 for every $1 spent
Value of Social Traffic versus Display http://www.ignitesocialmedia.com/social-media-stats/social-media-campaigns-vs-banner-ads/
Quality of Visitors from Social MediaDescription Display Social DeltaPages per Visit 1.57 2.84 Social = 1.8x more visitorsTime on Site 0:40 2:18 Social = 3.45x more time on siteBounce Rate 81.40% 45.46% Social = 44% lower bounce rateGoal Conversions 3,098 12,603 Social = 4x more goal conversions
Revenue from Facebook Fans Model• Social media is great at driving vast amounts of conversation. Conversation that gets seen.• Facebook fans are better advocates, and better customers, than non-fans.Description Number NotesNet New Facebook Fans 283,786 For a year Likely to Buy Same Brand Again Source: Facebook% Likely to Consider, Fan 69% Blackberry is closest analogous brand in this case 60% 55% 53%% More Likely to Purchase 16% Conservative estimate from the 2011 50%Since Becoming a Fan Chadwick Martin Bailey Consumer Pulse 36% 37% 40%Price of Product $250 Fictitious, changed from actual client example 30% Owner + FanPurchases per Year 0.33 Fictitious, changed from actual client 20% Owner, Not Fan example 10%# of New Facebook Fans Who 31,330 New Fans * % Likely to Purchase * % More Likely to Purchase Since Becoming 0%Are New Customers a Fan Brand A Brand BTotal Estimated Revenue $2,584,722.89 New Fans Who Are New Customers *(Year) Price of Product * Purchases per Year
Revenue from Social Media Marketing Number NotesVisitors to Goal Pages 4,830,827 In a given time periodProducts Sold 345,324 For the same time periodGoal Pages/Sale: 13.989Social Media Traffic to Goal Pages 27,716 Visitors from social networks, blogs, etc. who landed on one of the goal pages in the time periodProducts “Sold” Through Social 1,981 Social media traffic to goal pages / (goal pages/sale)Average Sales Price per Product $135 Revenue during the period / unit sales during the periodRevenue from Social “Sales” $267,435 Products “Sold” x Average Sales PriceCost of Social Media Marketing $97,500 For the same time periodROI $1.74 (Revenue – Cost) / Cost
Social Promotions Sales ROI Number NotesTotal Cost of Promotion $195,404 Including ads# of Goal Page Completions 34,812 Use actual if it can be tracked with tracking links. If not, measure “above baseline” during tracking period. Counting unique visitors would be best.Goal Pages per Sale 13.989 From model aboveProducts “Sold” Through Social 2,489 Goal page completions / goal pages per saleRevenue from Social “Sales” $336,015 Products “Sold” x Average Sales Price of $135ROI $0.72 (Revenue – Cost) / Cost
Balanced Approach Amplified Earned Paid Paid Owned Success The social current A driver and Both a driver and that carries the amplifier of growth benefiter of social message and reach efforts Ignite takes over 93:1 ROI
Organic Exposures Are Better 28% 76% Lift Lift
Organic Exposures Are Better 2x 6x More More Pages Pages