Monetizing Social Marketing And Measuring Roi

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Monetizing Social Marketing And Measuring Roi

  1. 1. How CMOs are Monetizing Social Marketing and Measuring ROI Sponsored by:
  2. 2. Introductions Justin Bridegan, Senior Marketing Manager MarketingSherpa / MECLABS Primary Research @JustinBridegan Sergio Balegno, Director of Research MarketingSherpa / MECLABS Primary Research @SergioBalegno Kye Strance, Director of Product Marketing Vocus @KyeStranceSponsored by: #SherpaWebinar
  3. 3. Join the conversation on Twitter #SherpaWebinarSponsored by: #SherpaWebinar
  4. 4. Today’s webinar agenda • MarketingSherpa • Setting the stage for social media marketing monetization • How CMO priorities for social marketing are changing • Whats driving the investment in social media programs • How CMOs are calculating social marketing return on investment • The first step to monetizing the social media channel • Vocus • 5 Tips for Social Marketing SuccessSponsored by: #SherpaWebinar
  5. 5. Annual research cycle improves marketing know-how • Publish research on what is working (and what isn’t) for marketers today • Benchmark Reports, Case Studies • Identify best practices and formulate practical methodologies • Handbooks, Special Reports • Teach marketers how to apply best practices and methodologies • Summits, certification training, webinars • This cycle is focused on strategies and practices for social media monetizationSponsored by: #SherpaWebinar
  6. 6. The importance of social marketing maturity Three Phases of Social Marketing Maturity Trial Phase Transition Phase Strategic Phase Organization does not have a Organization has an informal Organization has a formal process process or guidelines for process with a few guidelines it with thorough guidelines it performing social marketing. sporadically performs. routinely performs. Poll #1 – Which statement best describes the process your organization uses to plan, execute and measure the performance of social media marketing programs?Sponsored by: #SherpaWebinar
  7. 7. The importance of social marketing maturity • Chart: 46% of CMOs in transition from the trial to the strategic phase • Social marketing requires investment in human and other resources • Strategic process needed to monetize social media channel and prove ROISponsored by: #SherpaWebinar
  8. 8. CMO priorities and perceptions driving ROI
  9. 9. Priorities for social media are changing – Now it’s “show me the money" • Social channel monetization factors are top-of-mind priorities for CMOs • Goal of social channel monetization: Measureable return on investment • Strategic phase organizations are 80% more likely than Trial to prioritize ROI • Why? Trial phase organizations don’t have a process for performing social marketing or measuring ROISponsored by: #SherpaWebinar
  10. 10. Perceptions driving social marketing investment • If social marketing perceived to produce ROI, investment follows • Strategic phase 4X as likely as Trial to produce measureable ROI • Why? No process, no proof of ROI, no investment • Think social marketing is free? You’re destined to get what you pay for!Sponsored by: #SherpaWebinar
  11. 11. The promise of social marketing ROI a reality • When ROI equals a positive %, earning more than costing • Average social marketing ROI 95% • One-in-four CMOs are doubling their social investment (100% ROI) • Overcoming the myth that social marketing ROI isn’t measureableSponsored by: #SherpaWebinar
  12. 12. Calculating the ROI of social media marketing
  13. 13. ROI is a measure of financial value returned on every dollar invested • Formula: Return on investment = (Value gained from investment – Cost of investment) / Cost of investment • Tracking the right metrics for determining the values and costs of social media marketing can be a challenge • “Around 10% of our social media activity directly translates to bottom-line results, making ROI easy to determine for that portion. However, 90% of the work has to do with people building their reputation online and helping others, so they can effectively promote the brand online. That big chunk of work is impossible to measure in terms of ROI.” –CMO insightSponsored by: #SherpaWebinar
  14. 14. When it comes to calculating social media ROI, some metrics matter more than others • Qualitative, non-financial metrics CAN be measured • Quantitative, financial metrics SHOULD be measured • Financial values are metrics that matter most for calculating and proving ROI • Return on engagement, return on innovation, etc. mean nothing in the C-suiteSponsored by: #SherpaWebinar
  15. 15. Values CMOs can use to calculate the Return • Many values can be measured • Estimated value of quantitative social media metrics • Likes/Fans • Followers • Estimated value of qualitative social media metrics • Sentiment • Awareness/Voice • These metrics useful to monitor audience but not to measure ROISponsored by: #SherpaWebinar
  16. 16. Values CMOs should use to calculate Return • Actual sales on ecommerce sites can be tracked to social media engagement • Most organizations know the estimated value of a qualified lead – use it! • There are two ways to gain value – increasing income and reducing costs • Not factoring social media’s ability to reduce customer support costs is a missed opportunity • Which values can and should you use to calculate social marketing ROI?Sponsored by: #SherpaWebinar
  17. 17. Costs CMOs are using to calculate Investment • Investment side of ROI equals costs associated with social marketing • Social falls into two main media categories – earned and paid • Earned media time intensive tactic requiring more human resources • Paid media cash intensive tactic requiring fewer human resourcesSponsored by: #SherpaWebinar
  18. 18. Formula for calculating the ROI of social marketing (Value gained from investment – Cost of investment) / Cost of investment = ROI Value Gained ROI analysis: Social lead gen campaign Minus Cost • • Value: 500 qualified leads tracked to social at est value $150/lead = $75k Divided Cost: Staff plus other expense = $15k by Cost • Equals ($75k - $15k) / $15k = 400% ROI ROI •Sponsored by: #SherpaWebinar
  19. 19. Monetizing social media requires strategic thinking
  20. 20. The social marketing ROAD Map A method for mapping a social marketing strategy 20Sponsored by: #SherpaWebinar
  21. 21. Research: Gathering intelligence on target audiences and their social media behavior • Research is the first step in the ROAD Map methodology • Monitoring helps identify and profile target audiences (vs. calculate ROI) • Monitor characteristics and behaviors specific to social media 21Sponsored by: #SherpaWebinar
  22. 22. Stop, look and listen – What to monitor on social media Related search phrases Social media factors • Social voice (or strength) • Industry sectors • Sentiment • Technologies • Passion • Companies • Unique authors • Brands • Social reach • Products • Content downloads • Services • Content sharing • Key issues • Reviews and recommendations • Industry experts • Platform preferences • Key employees • Audience segments 22Sponsored by: #SherpaWebinar
  23. 23. Social monitoring tools and solutions % using solutions by type Monitoring target audiencesSponsored by: #SherpaWebinar
  24. 24. Segmenting by social behavior and influence – Keep it simple • Silent Majority • Joins but rarely participates • Reads, watches, listens to UGC • Few friends, contacts, followers • Low level of social influence • Vocal Minority • Joins and actively participates • Shares UGC and commentary • Many friends, contacts, followers • Moderately high level of social influence • Social Authority • Builds and moderates communities • Creates and aggregates UGC • Very many friends, contacts, followers • Very high level of social influence 24Sponsored by: #SherpaWebinar
  25. 25. Profiling your target audiences 25Sponsored by: #SherpaWebinar
  26. 26. Objectives: Defining objectives aligned with target audiences Target Audience Segment Social Marketing Objectives Email marketers in the • Increase ‘Likes’ on Facebook brand page by… Vocal Minority • Increase website traffic from Facebook by… • Reduce costs to support this customer segment by… Email agencies/consultancies • Increase Social Authority target list by… in the Social Authority • Increase Twitter thought-leader page retweets by… • Increase link-backs from Social Authority blogs by…Sponsored by: #SherpaWebinar
  27. 27. Actions: Creating an ‘effective’ social marketing tactical plan of action  Effective vs. ‘fast and easy’  Blogger relations effective but difficult – less use • Use to target Social Authority  Social sharing less effective but less difficult – more use  Focus on effective tactics, not ‘fast and easy’  Top tactics: Engaging the vocal minority and pitching the social authority 27Sponsored by: #SherpaWebinar
  28. 28. Tactics for engaging the Vocal Minority and pitching the Social Authority Engaging the Vocal Minority Pitching the Social Authority  Vocal Minority extremely active –  Social Authority is the whale – high level of social influence highest level of social influence  Use one-to-many tactics  Use one-to-one tactics  Use target audience profile to  Most blog but also microblog, determine where they are and social network, vlog, etc. what interests them  Apply practices similar to press  Join the conversation and engage relations but conform to social the vocal minority accordingly . media culture and practices 28Sponsored by: #SherpaWebinar
  29. 29. Devices: Selecting social platforms by tactical effectiveness and architectural fit  Analyzing strengths/weaknesses of social platforms/brands  You may need a social network – but which one? • Leading brand, niche or custom  Conduct a SWOT-like analysis to prioritize social brands  Select social brands that fit your tactical plan and have a purpose 29Sponsored by: #SherpaWebinar
  30. 30. Without a social marketing architecture Random acts of social marketing – no plan or purpose 30Sponsored by: #SherpaWebinar
  31. 31. With a social marketing architecture Hub and spoke framework  Hub sites for content and conversion  Spoke sites for building communities and relationships  Directs traffic flow in and out of hubs  Number of sites not important – a plan and purpose for every site is 31Sponsored by: #SherpaWebinar
  32. 32. Plan and purpose for hub sites  Websites have become hub of overall marketing strategy • Primary point of conversion  Blogs have become hub of social marketing strategy • More dynamic, search friendly content 32Sponsored by: #SherpaWebinar
  33. 33. Plan and purpose for spoke sites  Social network shares content linked to hub sites and builds relationships  Microblogs offer quick engagement with links to hub site content  Forums build technical community, provides customer self-service and generates product development  Content sharing sites store content for use on other platforms  Spoke sites drive traffic to hub site’s primary point of conversion 33Sponsored by: #SherpaWebinar
  34. 34. The social marketing ROAD Map A method for mapping your social marketing strategy 34Sponsored by: #SherpaWebinar
  35. 35. 5 Tips for Social Media Success
  36. 36. Know What Your Audiences Care AboutSponsored by: #SherpaWebinar
  37. 37. Know Who’s Talking: The Answer May Surprise YouSponsored by: #SherpaWebinar
  38. 38. Keep Track of SentimentSponsored by: #SherpaWebinar
  39. 39. Don’t Forget Traditional MediaSponsored by: #SherpaWebinar
  40. 40. MeasureSponsored by: #SherpaWebinar
  41. 41. Sponsored by: #SherpaWebinar
  42. 42. Send us your feedback – Q & A Justin.bridegan@meclabs.com Sergio.balegno@meclabs.com kstrance@vocus.com webinars@marketingsherpa.comSponsored by: #SherpaWebinar

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