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The Great Social Media Crisis of Faith

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Reposted with permission from Mediabrands.

I created this presentation in early 2015, as a means of describing the underfunding and underresourcing of most brand social media efforts. It describes the problem and proposes a solution to 1) the lack of visibility/reach, 2) the fact that a paid budget is now required to achieve reach, and 3) the ongoing need for marketers to have meaningful social metrics for budget justification.

This presentation has been shown to audiences in Japan, Spain, Italy, the US and the UK, and helped my team at IPG Mediabrands land several new global clients.

If you believe in Social as part of a holistic digital marketing mix but need help promoting it internally as an investment-worthy customer experience and conversion channel, you may find some justifications within this presentation to help you break Social out of "Budget Prison."

I parted ways with Mediabrands in July 2015 after a three-year stint. Questions about our Performly product, which my team and I productised and brought to market, can be directed to my brilliant former colleague and all-around good guy Jason Carter at jason.carter@mbww.com.

Next presentation: "Six Secrets to Overcoming Social Marketing Challenges" at #PMILondon on 30 Oct 2015.

Published in: Business

The Great Social Media Crisis of Faith

  1. 1. My clients believe. VOICEOVER: I speak to clients worldwide about their social efforts. And almost universally, they’re telling me that they’re having a Crisis of Faith. They believe in the power of social for awareness. Preference. Conversion. Loyalty. All the good things! Unfortunately, 3 major challenges are shaking that faith. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 2
  2. 2. #1: The content glut is killing reach OUR CLIENTS FACE 3 MAJOR ISSUES ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 3
  3. 3. In 2012, Content got us excited. VOICEOVER: Amazingly successful content campaigns like this one showed the power of social (http://j.mp/oreo_daily). Clients believed and invested in content. Only problem? Today no one is seeing it. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 4
  4. 4. THESE DAYS, ORGANIC REACH IS CLOSE TO ZERO. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 5 VOICEOVER: With over 1500 new posts every newsfeed refresh, organic reach is nearly zero.
  5. 5. …which means of your fans don’t see your content investment on a good day Content visibility for five Mediabrands clients Client Posts/ month Total reach per post Avg reach per post Fans Visibility Beverage 2 10,254 5,127 93,000 5.51% Gaming 14 630,655 45,047 500,865 8.99% Chemicals 6 13,574 2,262 148,000 1.53% Insurance 54 155,102 2,872 48,000 5.98% Software 28 577,589 20,628 638,000 3.23% AVERAGE 5.04% 95% ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 6
  6. 6. #2: Paid social ads now a requirement OUR CLIENTS FACE 3 MAJOR ISSUES € ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 7
  7. 7. Facebook organic reach for one Mediabrands client VOICEOVER: This organic reach is pretty pathetic, right? Watch what happens when we spend 1000€ to boost 2 posts. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 8
  8. 8. Social networks tell us: “If you pay, we’ll make it worth your while.” PAID REACHBOOM! PAID REACH VOICEOVER: Boosting breaks the reach barrier. By paying, clients get the reach they need (even if social networks are over-rewarding them to incent more spend). But why pay for reach? Never had to before! ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 9
  9. 9. All good things (engagement, loyalty, conversion) come to those who Reach VOICEOVER: Because reach is the only path to Engagement – and consequently to awareness, trust, preference, conversion and loyalty. Paid reach is now required to make results happen in Social Media Marketing. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 10
  10. 10. Asking for more money is risky business. VOICEOVER: So we now need a new budget for paid social. But asking for more money is politically risky. You need to be armed with a strong argument and good data. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 11
  11. 11. #3: No fiscal metrics for social OUR CLIENTS FACE 3 MAJOR ISSUES “I’ve got Likes, Retweets and Shares. No idea what they’re worth.” ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 12
  12. 12. “We don’t internally have the confident data we need to convince leaders or peers that they should invest in some of this new technology or positions or skills that will be crucial to a growth plan” Adrian Parker, Patron Spirits Company “I also have no idea about what’s working and what’s not.” Director of Marcom, US fast food giant VOICEOVER: Brands everywhere are telling us the same thing: that the “soft metrics” of social (likes, retweets, etc.) don’t really tell them what they need to measure success. And that they feel stuck. No financial metrics – no new funding. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 13
  13. 13. Social ROI: complex and time-consuming. 47% have given up on “tracking social ROI” VOICEOVER: It’s so bad that nearly half of companies have given up on the idea of tracking social ROI. This leaves Social Marketing in “Budget Prison.” It can never prove its worth, so it never gets the funding it deserves. THIS IS BAD FOR YOU, Social Marketer. This is bad for your customers, too. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 14
  14. 14. WE NEED TO BUST SOCIAL MEDIA OUT OF “BUDGET PRISON” ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 15
  15. 15. Step 1. We need a means of calculating the worth of our social efforts. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 16
  16. 16. “What would I have had to pay using paid media to achieve the same result?” Rather than building questionable, complex ROI spreadsheets, EMV is easily calculated and automated to allow daily measurement. We need one performance metric to rule them all — Earned Media Value (in cash) € ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 17
  17. 17. “EMV? Isn’t that the failed AVE model?” No. AVE measures column inches of PR pickup. EMV measures actual social activity – discrete user actions – and associates a value. A click is a click is a click. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 18
  18. 18. Here’s how we do it. First, let’s price our KPIs. How have past campaigns performed? PAGE CPM COST / ENGAGEMENT COST / ACQUISITION @Brand_DE 0.55 € 0.85 € 1.05 € @Brand_CH 1.00 € 0.85 € 1.53 € @Brand_AT 0.75 € 0.75 € 1.15 € PRICING DATABASE VOICEOVER: We recommend calculating an individual price for every social KPI. Because a Like for one brand in one country will be worth something different for another brand in another country. We store that in a pricing database. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 19
  19. 19. API Next, we read all earned activity via API PERFORMLY CLOUD-BASED ROI PLATFORM VOICEOVER: We currently use APIs to pull all social KPIs – every fan interaction. This automates data gathering daily. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 20
  20. 20. API Then, calculate Earned Media Value. PERFORMLY CLOUD-BASED ROI PLATFORMVOICEOVER: Then we calculate the worth of these fan interactions based on our prices in the pricing database. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 21 x Price Per Fave = x Price Per Like = x Price Per Play =
  21. 21. Some clients weight their Earned Media Value based on how it was earned EXPOSURE (x1). We need this to allow for engagement. ACQUISITION (x1.5). More fans = more opportunity to create conversion. ENGAGEMENT (x2). If fans engage with us, they build touchpoints, trust and preference. VOICEOVER: Some clients are very particular about how they value Exposure metrics vs Acquisition metrics vs Engagement. So we weight the prices accordingly. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 22
  22. 22. API Finally, aggregate all earned value. VOICEOVER: Our Performly analytics tool then displays total daily Earned Media Value. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 23
  23. 23. I can now compare performance between pages and against benchmarks VOICEOVER: We capture all this great data via API. Now we can start charting it to show us actionable insights. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 24
  24. 24. I can also watch trends over time VOICEOVER: Which days earned the most value? Which posts generated the most value? ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 25
  25. 25. Example Performly content performance chart FAN ACQUISITION FANENGAGEMENT 0 2 4 6 8 10 20 40 60 This post has low engagement, low acquisition. Performly might calculate EMV at 28€ VOICEOVER: Let’s look at how individual posts perform in terms of cash. Because NOW WE CAN. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 26
  26. 26. Content performance FAN ACQUISITION FANAENGAGEMENT 0 2 4 6 8 10 20 40 60 An easy like, this post has high acquisition but low engagement. Few touchpoints created by fans. Performly might calculate it’s worth as 252€. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 27
  27. 27. Content performance FAN ACQUISITION FANENGAGEMENT 0 2 4 6 8 10 20 40 60 This very controversial post has high engagement, but low acquisition. Performly might show it earned 3075€ but generated significant unfollows. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 28
  28. 28. Content performance FAN ACQUISITION FANENGAGEMENT 0 2 4 6 8 10 20 40 60 This post is doing everything right. High acquisition & high engagement. Performly says it created 7147€ of marketing impact and grew the fanbase. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 29
  29. 29. Now we can have a VERY different kind of conversation with the CFO and CMO THESE NEW FANS, AND OUR EXISTING FANS, CREATED OF EARNED MEDIA AND BRAND TOUCHPOINTS “HEY, THANKS FOR THE OUR SOCIAL PROWESS PRODUCED OF MARKETING IMPACT!” PERFORMLY SAYS WE GAINED NEW FANS 12,500 47,700€ “CFO, I’D LIKE TO PROMOTE THIS POST:” 10,000€ 47,000€ 10,000€ ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 30
  30. 30. What happens when we excel at resonating with our fans? 12,400 tweets 1,460,000 followers T-Mobile US: 510,000 followers VOICEOVER: T-Mobile’s John Legere is quite prolific (sometimes controversial) – so much so that he has nearly triple the fans of his company. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 31
  31. 31. John’s impact to T-Mobile Marketing $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 March April May June July August 6MonthRunningTotal EMV MonthlyEMV Running Total Earned Media Value John’s total Twitter EMV in 6 months: 8,500,000 € T-Mo’s total Twitter EMV in same period: 17,700,000 € VOICEOVER: John creates a MEANINGFUL impact to T-Mo’s marketing efforts. His Twitter account alone can generate millions in Earned Media Value – a significant portion of T-Mo’s total budget. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 32
  32. 32. Highest daily EMV: 309,000€ $0 $100,000 $200,000 $300,000 $400,000 EMVperDay VOICEOVER: In just one day alone, John generated around $375,000. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 33
  33. 33. Step 2. Rethink social team structure & skills ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 34
  34. 34. In 2015: Social has really become a fully paid channel. Paid knowledge and budgets are essential. And CFOs now demand fiscal metrics. ADVERTISING KNOWLEDGE In 2015, social teams need A.C.E. skills: Advertising, Content AND Engagement In 2012: Brand content became a crucial part of the social mix. Essential skills for today as well. CONTENT CAPABILITY ENGAGEMENT SKILLS In 2008: Social was all about Community, Customer Care and building trust. Measurement/ROI wasn’t critical. These days, clients still want to engage with you, and you can’t blow it. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 35
  35. 35. Your paid social team should be able to answer these questions Which paid social platforms should I use or know? What kind of talent do I need? What kinds of posts should I boost? And why? How do I justify talent and tool costs? How do I manage inbound campaign performance signals? How do I report back to management on spend performance? ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 36
  36. 36. Step 3. Rethink your approach to content ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 37
  37. 37. If we can measure content’s worth, we can measure fan resonance VOICEOVER: By looking at YouTube EMV, we can start to work out ROI on individual videos. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 38
  38. 38. Performly & Listening Reports And if we can measure resonance, Agile Social Content is now possible VOICEOVER: People talk about Agile Social Content. Now we can actually measure performance and adapt our approach daily. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 39
  39. 39. Using Earned Media Value to test creative approaches After two years, key KPIs on the fanpages for a soap brand stalled, remaining stagnant month after month. The social team needed to identify a new content strategy to boost engagement. Performly clearly showed the highest- performing content was imagery and stories about “normal” people to whom the audience could relate. Fans created 4x more earned media when page posts showed ordinary-looking people versus models. The client social team responded by focusing on user-generated content for the next six months. BEFORE AFTER ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 40
  40. 40. Finally, knowing EMV means Social Media teams finally can have the numbers to give them a meaningful voice at the Annual Budget Meeting. Credibility FTW! ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 41
  41. 41. SO… ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 42
  42. 42. This presentation was written by Eric Weaver for the June 2015 Performance Marketing Insights conference in Berlin. I am no longer with Mediabrands. For more information about Performly, please visit performly.social or contact Jason Carter at jason.carter@mbww.com. In October 2015, I will be teaching these concepts at Dublin City University’s (Ireland) Masters of Digital Marketing Programme. I can be reached at @Weave. THANK YOU, ATTENDEES! ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 43

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