1. Internet Marketing ROI
Christopher S. Penn, Director of Strategy
www.WhatCounts.com

2. Fair Warning

3. Three Disclaimers
X

4. How can a company be innovative and focus on
ROI? How do you make a business case for
something that's experimental? Let's say I
wanted to my training team to spend two hours a
week answering questions on Quora to see what
happens, is it ok to do this without any ROI
objectives?
- Scott Hemmons

5. I get a lot of analytics from various tools,
including web site metrics, Bitly, Klout, Twitter,
Facebook, LinkedIn, YouTube etc. It takes me a
about an hour+ to pull it together each month. Do
you have a one-stop shop solution that would
make it easier? Even if I had 1 thing plus our web
analytics that would make reporting so much
easier.
- Becky Livingston

6. What?
When?
How?

7. Return
on
Investment

8. Earned - Spent
= ROI
Spent

9. Return on “influence”
Return on conversation
Return on engagement

10. 1,000 - 500
= 100%
500

11. 250 - 500
= -50%
500

12. Earned - Spent
= ROI
Spent

14. Annual Income =Hourly
2,080

15. Annual Income =Hourly
2,080
Hours x Rate
= Time
Spend in
Money

16. $50,000 = $24.04
2,080
5 x $24.04 =
$120.20

17. 1000 - 620.20
= 61.2%
620.20

18. Worksheet 1
Money Earned: $_______
Money Spent: $_______
Hourly Rate: $_______
Time Spent: _______
Time Spent in Money: $_______
Total Spent: $_______
Total Earned-Total Spent _______%
Total Spent

19. What?
When?
How?

20. ROI is not
everything

21. Audience
Prospects
Leads
Customers
Evangelists

22. ROI really important!

23. ROI not as important!

24. What?
When?
How?

25. Earned - Spent
= ROI
Spent

26. Worksheet 2
Method PPC Email Twitter
Money Earned
Money Spent
Hourly Rate
Time Spent
Time as Money
Total Spent
Earned - Spent / Spent

27. Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Money Spent $500.00 $5,000.00 $0.00
Hourly Rate $24.04 $24.04 $24.04
Time Spent 5 5 40
Time as Money $120.20 $120.20 $961.60
Total Spent $620.20 $5,120.20 $961.60
Earned - Spent / Spent 61.24% 145.36% -22.00%

28. Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Money Spent $500.00 $5,000.00 $0.00
Hourly Rate $24.04 $24.04 $24.04
Time Spent 5 5 40
Time as Money $120.20 $120.20 $961.60
Total Spent $620.20 $5,120.20 $961.60
ROI 61.24% 145.36% -22.00%

29. ROI is not
necessarily a
helpful number

30. Keep or kill decisions

31. Last Touch Problem

33. Email
Webinar
PPC Ad
Blog Post
Sponsored
Tweet
Which caused the sale?

34. Old school single channel
ROI is broken

35. o t he
B ack t
boa rd
d raw ing

36. Income
Margin
Expense
Net Profit
Audience
Volume
Action

37. Income Product
Margin
Expense Operations
Net Profit
Audience Marketing
Volume
Action Sales

38. Marketing’s primary output is
qualified leads, yes?

39. EPL

40. Earned - Spent
Number of Leads

41. Worksheet 3
Money Earned: $_______
Money Spent: $_______
Hourly Rate: $_______
Time Spent: _______
Time Spent in Money: $_______
Total Spent: $_______
Total Earned-Total Spent _______ EPL
Leads

42. So what?

45. Yes, but so what?

46. Last Touch Problem Solved
Goo gle

47. One Phrase:
MCF

48. Multichannel Revenue

49. Channel Last Touch MCF
Twitter $59,084 $125,315
Facebook $14,036 $22,388

50. Channel Last Touch MCF
Twitter $59,084 $125,315
Facebook $14,036 $22,388

51. Earned - Spent
= ROI
Spent

52. 59,084 - 50,000
50,000 = 18.2%

53. 125,315 - 50,000
50,000 = 150.6%

54. The Big Picture of
Internet Marketing ROI

55. Walkthrough/Case Study

59. Worksheet 1
Method Web Facebook Twitter
Money Earned
Money Spent $180.00
Hourly Rate $19.23
Time Spent 780
Time as Money $15,000
Total Spent $15,180
Earned - Spent / Spent

60. Worksheet 1
Method Web Facebook Twitter
Money Earned
Money Spent $180.00 $0.00
Hourly Rate $19.23 $19.23
Time Spent 780 260
Time as Money $15,000 $5,000
Total Spent $15,180 $5,000
Earned - Spent / Spent

61. Worksheet 1
Method Web Facebook Twitter
Money Earned
Money Spent $180.00 $0.00 $0.00
Hourly Rate $19.23 $19.23 $19.23
Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000
Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent

63. Worksheet 1
Method Web Facebook Twitter
Money Earned
Money Spent $180.00 $0.00 $0.00
Hourly Rate $19.23 $19.23 $19.23
Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000
Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent

64. Channel Last Touch MCF
Twitter $4,800 $7,200
Facebook $42,000 $51,000

65. Last Touch Version
Method Web Facebook Twitter
Money Earned $133,200 $42,000 $4,800
Money Spent $180.00 $0.00 $0.00
Hourly Rate $19.23 $19.23 $19.23
Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000
Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent 777.47% 740.00% -4.00%

66. MCF Version
Method Web Facebook Twitter
Money Earned $133,200 $51,000 $7,200
Money Spent $180.00 $0.00 $0.00
Hourly Rate $19.23 $19.23 $19.23
Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000
Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent 777.47% 920.00% 44.00%

67. Channel Last Touch MCF
Twitter -4% 44%
Facebook 740% 920%

68. If you remove Twitter,
this sale goes away.

69. Now You Have The Big Picture of
Internet Marketing ROI

70. Review
What?
When?
How?

71. Webinar Tomorrow!
www.WhatCounts.com/smplus

72. cspenn.com/book

73. Christopher Penn
cspenn@gmail.com
Twitter: @cspenn
LinkedIn: cspenn.com/l
Facebook: cspenn.com/f
Google+: cspenn.com/g
Web: christopherspenn.com

74. Questions?