CIPR Freshly Squeezed 25th Oct 2011

Philip Sheldrake
Philip SheldrakeThe hi:project / Technology analyst / Managing Partner at Euler Partners / Director techUK / Director Network Society
Measuring Online
     Philip Sheldrake
     www.philipsheldrake.com
     @sheldrake


     Author
     The Business of Influence: Reframing
     Marketing and PR for the Digital Age
     www.influenceprofessional.com


     Founding Partner, Meanwhile
     www.andmeanwhile.com




              Freshly Squeezed training session
              25th October 2011
                                                  1
An illustrated history




  http://youtu.be/wp2eUSL4oHc
  http://www.philipsheldrake.com/2011/01/content-an-illustrated-history




                                                                          2
Questions        Your organization   ☐



Tick those you
consider to be
unique…




                                     3
Questions        Your organization   

                 Your marketplace    ☐

Tick those you
consider to be
unique…




                                     4
Questions        Your organization   

                 Your marketplace    

Tick those you   Your stakeholders   ☐


consider to be
unique…




                                     5
Questions        Your organization           

                 Your marketplace            

Tick those you   Your stakeholders           

                 Your marketing objectives   ☐
consider to be
unique…




                                             6
Questions        Your organization           

                 Your marketplace            

Tick those you   Your stakeholders           

                 Your marketing objectives   
consider to be   Your PR objectives          ☐
unique…




                                             7
Questions        Your organization           

                 Your marketplace            

Tick those you   Your stakeholders           

                 Your marketing objectives   
consider to be   Your PR objectives          
unique…          Your marketing strategy     ☐




                                             8
Questions          Your organization           

                   Your marketplace            

Tick those you     Your stakeholders           

                   Your marketing objectives   
consider to be     Your PR objectives          
unique…            Your marketing strategy     

See where I’m      Your PR strategy            ☐


going with this?




                                               9
Questions          Your organization           

                   Your marketplace            

Tick those you     Your stakeholders           

                   Your marketing objectives   
consider to be     Your PR objectives          
unique…            Your marketing strategy     

See where I’m      Your PR strategy            

                   Your marketing execution    ☐
going with this?




                                               10
Questions          Your organization           

                   Your marketplace            

Tick those you     Your stakeholders           

                   Your marketing objectives   
consider to be     Your PR objectives          
unique…            Your marketing strategy     

See where I’m      Your PR strategy            

                   Your marketing execution    
going with this?   Your PR execution           ☐




                                               11
Questions          Your organization           

                   Your marketplace            

Tick those you     Your stakeholders           

                   Your marketing objectives   
consider to be     Your PR objectives          
unique…            Your marketing strategy     

See where I’m      Your PR strategy            

                   Your marketing execution    
going with this?   Your PR execution           

                   Your metrics?               ☐




                                               12
Questions          Your organization           

                   Your marketplace            

Tick those you     Your stakeholders           

                   Your marketing objectives   
consider to be     Your PR objectives          
unique…            Your marketing strategy     

See where I’m      Your PR strategy            

                   Your marketing execution    
going with this?   Your PR execution           

                   Your metrics?               




                                               13
Five myths…

Myth 1: We can measure
everything digital precisely and
instantly.
Jim Sterne puts it like this: “The world of online
marketing has been suffering from a delusion of precision
and an expectation of exactitude.”



               Social Media Measurement Guidance, CIPR, March 2011




                                                                     14
Five myths…

Myth 2: All digital metrics are
useful.
Just because you can measure it doesn’t mean you
should. Katie Delahaye Paine puts it like this: “So
what?!” 




             Social Media Measurement Guidance, CIPR, March 2011




                                                                   15
Five myths…

Myth 3: The new compound score
everyone is talking about must be
useful.
Too few practitioners know what the numbers
represent, nor then do they know how to interpret
the quantities and ensure they are not misapplied.


             Social Media Measurement Guidance, CIPR, March 2011




                                                                   16
Five myths…

Myth 4: One metric will do.
One metric never suffices. You will need a
balanced portfolio of metrics.




             Social Media Measurement Guidance, CIPR, March 2011




                                                                   17
Five myths…

Myth 5: The more followers /
friends the better.
The number of followers and friends
indicates popularity, butpopularity isn’t
the same as influence.


           Social Media Measurement Guidance, CIPR, March 2011




                                                                 18
The Maturity of Influence Approach
Maturity                                                Characteristics

High       Trace the influence (the action) back to
           source.                                                       Focused on business




                                                                                                               Influence-centric
                                                                         outcomes, as we should be.
Medium     It’s quality not quantity. Not how many                       Best practice, intelligent and
           people you interact with, but how and in                      you could say scientific and
           what context?                                                 professional marketing and
                                                                         PR, and associated
                                                                         activities.

Low        Number of followers, friends,




                                                                                                               Influencer-centric
           subscribers, circulation. Empirically
           supported network science.                                    Akin to column inches and
                                                                         AVE – measurement
Pitiful    Obfuscating compound measures of                              because you can, not
           non-contextual trivial variables. No                          because you should.
           empirical evidence.


                    The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.1, page 47




                                                                                                          19
Barcelona Principles (2010)
1. Importance of goal setting and measurement
2. Measuring the effect on outcomes is preferred to measuring outputs
3. The effect on business results can and should be measured where
   possible
4. Media measurement requires quantity and quality
5. AVEs are not the value of public relations
6. Social media can and should be measured
7. Transparency and replicability are paramount to sound
   measurement.


                   Final Barcelona Declaration of Measurement Principles, July 22, 2010




                                                                                          20
The AMEC Valid Metrics Matrix




        Final “Barcelona Declaration of Measurement Principles”, July 22, 2010




                                                                                 21
The AMEC Valid Metrics Matrix




        Final “Barcelona Declaration of Measurement Principles”, July 22, 2010




                                                                                 22
Best practice process for selecting
and defining social media metrics
1. Audit – Where are we now?
2. Setting measurable objectives – Where do we need to be?
3. Strategy and plan – How do we get there?
4. Measurement and analytics – Are we getting there?
5. Results and evaluation – How did we do?




               Research, Planning and Measurement Toolkit, CIPR, October 2010




                                                                                23
Best practice process for selecting
and defining social media metrics
1.   Audit – Where are we now?
2.   Setting measurable objectives – Where do we need to be?

     2.1 Define your measurable objective
     2.2 Define your benchmark set – comparative / relative
     2.3 Define the ideal metrics
     2.4 Identify candidate metrics that combine to best meet your ideal definition(don't try
          and make your metrics universal across the organisation, but apply different metrics for different audiences)

     2.5 Tailor each one to your specific needs, recognising its shortcomings / limits
     2.6 Document these steps to make the process auditable and more easily reviewed
     2.7 Set a review date and owner.

1.   Strategy and plan – How do we get there?
2.   Measurement and analytics – Are we getting there?
3.   Results and evaluation – How did we do?

                              Social Media Measurement Guidance, CIPR, March 2011




                                                                                                        24
Golden rules for metric selection
 Only employ metrics that directly and obviously guide behaviour and performance
  as required by strategic objectives
 Metrics need each other – no metric can achieve what’s needed alone
 Metrics must complement not compete
 Just because something is easy to measure, or is already measured, doesnot
  qualify it as a good metric
 When you have a choice of two equally appropriate metrics, select the mostreadily
  understood
 Never employ fewer or more metrics than will suffice
 Metrics with unneeded side effects aren’t quite right – redesign them; or,a metric
  that can be gamed demands a complementary metric to ensure that it isn’t.



                      The Business of Influence, Philip Sheldrake, Wiley, 2011, page 115




                                                                                           25
Researching candidate metrics
Social Media Metrics, Sterne
Measure What Matters, Paine
Marketing Metrics, Farris,Bendle, Pfeifer,Reibstein
http://kpilibrary.com
http://www.smartkpis.com
http://www.kpi-portal.com
http://www.bsccommunity.com
http://www.thepalladiumgroup.com/communities/XPC




                    The Business of Influence, Philip Sheldrake, Wiley, 2011, page 115




                                                                                         26
Bibliography
Social Media Metrics: How to Measure and          Marketing Metrics: The Definitive Guide to
Optimize your Marketing Investment, Jim Sterne,   Measuring Marketing Performance, W. Farris,
Wiley, 2010, 978-0470583784                       Neil T. Bendle, Phillip E. Pfeifer, David J. Reibstein,
                                                  2010, Wharton School Publishing, ISBN:
Measure What Matters: Online Tools For            9780137058297
Understanding Customers, Social Media,
Engagement, and Key Relationships, Katie          Balanced Scorecard: Translating Strategy into
Delahaye Paine, Wiley, February 2011, 978-        Action, Robert S. Kaplan and David P. Norton, 1996,
0470920107                                        Harvard Business School Publishing Corporation,
                                                  ISBN: 9780875846514
The Business of Influence: Reframing
Marketing and PR for the Digital Age, Philip      Social Media Analytics: Effective Tools for
Sheldrake, Wiley, April 2011, 978-0470978627      Building, Interpreting and Using Metrics,
                                                  Marshall Sponder, McGraw-Hill, August 2011, 978-
                                                  0071768290




                                                                                               27
Bibliography
Final “Barcelona Declaration of Measurement          CIPR Social Media Measurement Guidance:
Principles”, July 22, 2010:                          http://www.cipr.co.uk/content/policy-resources/for-
http://www.amecorg.com/images/public/barcelonapri    practitioners/research-planning-and-
nciplesforprmeasurementslidesfinal_22j uly2010.ppt   measurement/toolkit/social-media-measurement


                                                     CIPR Research, Planning and Measurement Toolkit:
                                                     http://www.cipr.co.uk/content/pr-
AMEC’s “PR Measurement Metrics: From Concept to
                                                     resources/practitioners/research-planning-and-
Implementation Reality” proceedings, including the
                                                     measurement
“valid metrics” and social media guidelines:
http://www.londonmeasurementconference.org/downl
oads.html


Institute for PR Measurement Commission’s “social
hub” with commentary and background on the
Barcelona Principles, “valid metrics” approach and
related measurement discussion:
http://www.iprmeasure.org




                                                                                             28
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CIPR Freshly Squeezed 25th Oct 2011

  • 1. Measuring Online Philip Sheldrake www.philipsheldrake.com @sheldrake Author The Business of Influence: Reframing Marketing and PR for the Digital Age www.influenceprofessional.com Founding Partner, Meanwhile www.andmeanwhile.com Freshly Squeezed training session 25th October 2011 1
  • 2. An illustrated history http://youtu.be/wp2eUSL4oHc http://www.philipsheldrake.com/2011/01/content-an-illustrated-history 2
  • 3. Questions Your organization ☐ Tick those you consider to be unique… 3
  • 4. Questions Your organization  Your marketplace ☐ Tick those you consider to be unique… 4
  • 5. Questions Your organization  Your marketplace  Tick those you Your stakeholders ☐ consider to be unique… 5
  • 6. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives ☐ consider to be unique… 6
  • 7. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives ☐ unique… 7
  • 8. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives  unique… Your marketing strategy ☐ 8
  • 9. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives  unique… Your marketing strategy  See where I’m Your PR strategy ☐ going with this? 9
  • 10. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives  unique… Your marketing strategy  See where I’m Your PR strategy  Your marketing execution ☐ going with this? 10
  • 11. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives  unique… Your marketing strategy  See where I’m Your PR strategy  Your marketing execution  going with this? Your PR execution ☐ 11
  • 12. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives  unique… Your marketing strategy  See where I’m Your PR strategy  Your marketing execution  going with this? Your PR execution  Your metrics? ☐ 12
  • 13. Questions Your organization  Your marketplace  Tick those you Your stakeholders  Your marketing objectives  consider to be Your PR objectives  unique… Your marketing strategy  See where I’m Your PR strategy  Your marketing execution  going with this? Your PR execution  Your metrics?  13
  • 14. Five myths… Myth 1: We can measure everything digital precisely and instantly. Jim Sterne puts it like this: “The world of online marketing has been suffering from a delusion of precision and an expectation of exactitude.” Social Media Measurement Guidance, CIPR, March 2011 14
  • 15. Five myths… Myth 2: All digital metrics are useful. Just because you can measure it doesn’t mean you should. Katie Delahaye Paine puts it like this: “So what?!”  Social Media Measurement Guidance, CIPR, March 2011 15
  • 16. Five myths… Myth 3: The new compound score everyone is talking about must be useful. Too few practitioners know what the numbers represent, nor then do they know how to interpret the quantities and ensure they are not misapplied. Social Media Measurement Guidance, CIPR, March 2011 16
  • 17. Five myths… Myth 4: One metric will do. One metric never suffices. You will need a balanced portfolio of metrics. Social Media Measurement Guidance, CIPR, March 2011 17
  • 18. Five myths… Myth 5: The more followers / friends the better. The number of followers and friends indicates popularity, butpopularity isn’t the same as influence. Social Media Measurement Guidance, CIPR, March 2011 18
  • 19. The Maturity of Influence Approach Maturity Characteristics High Trace the influence (the action) back to source. Focused on business Influence-centric outcomes, as we should be. Medium It’s quality not quantity. Not how many Best practice, intelligent and people you interact with, but how and in you could say scientific and what context? professional marketing and PR, and associated activities. Low Number of followers, friends, Influencer-centric subscribers, circulation. Empirically supported network science. Akin to column inches and AVE – measurement Pitiful Obfuscating compound measures of because you can, not non-contextual trivial variables. No because you should. empirical evidence. The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.1, page 47 19
  • 20. Barcelona Principles (2010) 1. Importance of goal setting and measurement 2. Measuring the effect on outcomes is preferred to measuring outputs 3. The effect on business results can and should be measured where possible 4. Media measurement requires quantity and quality 5. AVEs are not the value of public relations 6. Social media can and should be measured 7. Transparency and replicability are paramount to sound measurement. Final Barcelona Declaration of Measurement Principles, July 22, 2010 20
  • 21. The AMEC Valid Metrics Matrix Final “Barcelona Declaration of Measurement Principles”, July 22, 2010 21
  • 22. The AMEC Valid Metrics Matrix Final “Barcelona Declaration of Measurement Principles”, July 22, 2010 22
  • 23. Best practice process for selecting and defining social media metrics 1. Audit – Where are we now? 2. Setting measurable objectives – Where do we need to be? 3. Strategy and plan – How do we get there? 4. Measurement and analytics – Are we getting there? 5. Results and evaluation – How did we do? Research, Planning and Measurement Toolkit, CIPR, October 2010 23
  • 24. Best practice process for selecting and defining social media metrics 1. Audit – Where are we now? 2. Setting measurable objectives – Where do we need to be? 2.1 Define your measurable objective 2.2 Define your benchmark set – comparative / relative 2.3 Define the ideal metrics 2.4 Identify candidate metrics that combine to best meet your ideal definition(don't try and make your metrics universal across the organisation, but apply different metrics for different audiences) 2.5 Tailor each one to your specific needs, recognising its shortcomings / limits 2.6 Document these steps to make the process auditable and more easily reviewed 2.7 Set a review date and owner. 1. Strategy and plan – How do we get there? 2. Measurement and analytics – Are we getting there? 3. Results and evaluation – How did we do? Social Media Measurement Guidance, CIPR, March 2011 24
  • 25. Golden rules for metric selection  Only employ metrics that directly and obviously guide behaviour and performance as required by strategic objectives  Metrics need each other – no metric can achieve what’s needed alone  Metrics must complement not compete  Just because something is easy to measure, or is already measured, doesnot qualify it as a good metric  When you have a choice of two equally appropriate metrics, select the mostreadily understood  Never employ fewer or more metrics than will suffice  Metrics with unneeded side effects aren’t quite right – redesign them; or,a metric that can be gamed demands a complementary metric to ensure that it isn’t. The Business of Influence, Philip Sheldrake, Wiley, 2011, page 115 25
  • 26. Researching candidate metrics Social Media Metrics, Sterne Measure What Matters, Paine Marketing Metrics, Farris,Bendle, Pfeifer,Reibstein http://kpilibrary.com http://www.smartkpis.com http://www.kpi-portal.com http://www.bsccommunity.com http://www.thepalladiumgroup.com/communities/XPC The Business of Influence, Philip Sheldrake, Wiley, 2011, page 115 26
  • 27. Bibliography Social Media Metrics: How to Measure and Marketing Metrics: The Definitive Guide to Optimize your Marketing Investment, Jim Sterne, Measuring Marketing Performance, W. Farris, Wiley, 2010, 978-0470583784 Neil T. Bendle, Phillip E. Pfeifer, David J. Reibstein, 2010, Wharton School Publishing, ISBN: Measure What Matters: Online Tools For 9780137058297 Understanding Customers, Social Media, Engagement, and Key Relationships, Katie Balanced Scorecard: Translating Strategy into Delahaye Paine, Wiley, February 2011, 978- Action, Robert S. Kaplan and David P. Norton, 1996, 0470920107 Harvard Business School Publishing Corporation, ISBN: 9780875846514 The Business of Influence: Reframing Marketing and PR for the Digital Age, Philip Social Media Analytics: Effective Tools for Sheldrake, Wiley, April 2011, 978-0470978627 Building, Interpreting and Using Metrics, Marshall Sponder, McGraw-Hill, August 2011, 978- 0071768290 27
  • 28. Bibliography Final “Barcelona Declaration of Measurement CIPR Social Media Measurement Guidance: Principles”, July 22, 2010: http://www.cipr.co.uk/content/policy-resources/for- http://www.amecorg.com/images/public/barcelonapri practitioners/research-planning-and- nciplesforprmeasurementslidesfinal_22j uly2010.ppt measurement/toolkit/social-media-measurement CIPR Research, Planning and Measurement Toolkit: http://www.cipr.co.uk/content/pr- AMEC’s “PR Measurement Metrics: From Concept to resources/practitioners/research-planning-and- Implementation Reality” proceedings, including the measurement “valid metrics” and social media guidelines: http://www.londonmeasurementconference.org/downl oads.html Institute for PR Measurement Commission’s “social hub” with commentary and background on the Barcelona Principles, “valid metrics” approach and related measurement discussion: http://www.iprmeasure.org 28