The ROI of earned social media

The ROI of social media Meteor Webinar – 10/29/2009 10/29/2009 www.meteorsolutions.com 1

Introduction Ben Straley, Meteor Solutions CEO Leading Technology Platform for Tracking and Activating Earned Media Brands Using Meteor Include: 10/29/2009 www.meteorsolutions.com 2

Online Advertising Is Changing… 10/29/2009 CONFIDENTIAL www.meteorsolutions.com 3 Build Site and Create Content Buy Ads SEO and Paid Search Tracking and Optimization Tracking and Optimization

Today Marketing Success Is Earned Paid Media (Ads) Owned Media Earned Media

The Bigger Picture 10/29/2009 www.meteorsolutions.com 5 Source: Meteor Solutions data from >15 sites spanning games, mobile, technology, and travel sites.

Does It “Move the Needle”? 10/29/2009 www.meteorsolutions.com 6 + + Valuable Visitors ,[object Object]

Loyal Fans(source: Meteor Solutions, Razorfish) Growth Potential ,[object Object]

Facebook is Top Referral Source to PerezHilton.com (source: hitwise.com)Lots of Traffic ,[object Object],(source: Meteor Solutions)

So How Do I Measure Its Value and ROI? 10/29/2009 www.meteorsolutions.com 7

Recommendation #1 Be Clear About Your Objectives and Set Expectations Accordingly 10/29/2009 www.meteorsolutions.com @meteorsolutions 8

Awareness = Sheep + LEDs Brand/Product Page Video 10/29/2009 www.meteorsolutions.com 9

See? It Works! > 8MM Video Views (6MM in First 2 Weeks) > 3K Tweets About Video on Twitter Blog Mentions Search Volume Video Posted to You Tube (3/16/2009)

Or Does It? Video Posted to YouTube

Recommendation #2 Track and Measure What You Can. There Are Free Tools That Make It Simple and Easy to Quantify Impact and ROI. 10/29/2009 www.meteorsolutions.com @meteorsolutions 12

Quantifying Impact Using Twitter and Bit.ly 10/29/2009 www.meteorsolutions.com 13 http://www.ted.com/talks/clay_shirky_how_cellphones_twitter_facebook_can_make_history.html

Twitter Activity 10/29/2009 www.meteorsolutions.com 14 Useful, relative measure of content “reach”

Bit.ly Click Trends 10/29/2009 www.meteorsolutions.com 15

@meteorsolutions Stats Avg. Clicks per Tweet: 13 Number of Followers: 184 Click-Through Rate: 7.1% Avg. Total Clicks per Tweet (bit.ly): 2,698 Avg. % of Total Clicks per Tweet (bit.ly): .6% 10/29/2009 www.meteorsolutions.com 16

Click-Through Rate = Effectiveness 10/29/2009 www.meteorsolutions.com @meteorsolutions 17 ,[object Object],My Click-Through Rate = (My Clicks) / (My Followers)

Click-Share = Influence 10/29/2009 www.meteorsolutions.com @meteorsolutions 18 ,[object Object],Twitter Click-Share = (My Clicks) / (Total Clicks)

Recommendation #3 Go Beyond Listening, Counting Mentions, and Tracking “First Clicks”. Capture the Full Scope of Your Program’s Impact. 10/29/2009 www.meteorsolutions.com @meteorsolutions 19

Case Study: The Multiplier Effect 10/29/2009 Proprietary and Confidential. Patents Pending. GOAL: ,[object Object],STRATEGY AND PLAN: ,[object Object],TACTICS: ,[object Object]

Video series encourages repeat visits and WOM

Community “unlock” of video content fuels sharing.,[object Object]

Direct Referrals to Site 10/29/2009 Proprietary and Confidential. Patents Pending. The common view of sources of traffic…

“Earned” Referrals to Site

37% That’s the % of Unique Visitors That Came from Earned Referrals Over The Life of This Campaign. And… We’re Seeing Some Sites Drive The Majority of Their Traffic This Way 10/29/2009 www.meteorsolutions.com 24

But Wait, There’s More! Remember this statistic? “Visits from Shared Links Can Convert Up to 4X More Than Paid Media” (Razorfish) 10/29/2009 www.meteorsolutions.com 25

A Few Basic Calcs Traffic Value Value of Visit: $2.50 Number of Direct Visits: 10,000 Value of Direct Visits: $2.50 * 10,000 = $25,000 New Customer Value Value of Conversion: $50.00 Number of Direct Conversions: 1,000 Value of Direct Conversions: $50.00 * 1,000 = $50,000 10/29/2009 www.meteorsolutions.com @meteorsolutions 26

Paid + Earned Media ROI Model Traffic Value Value of Visit: $2.50 Number of Direct Visits: 10,000 Value of Direct Visits: $2.50 * 10,000 = $25,000 Number of Earned Visits: 2,000 Value of Earned Visits: $2.50 * 2,000 = $5,000 Customer Value Value of Conversion: $50.00 Number of Direct Conversions: 1,000 Value of Direct Conversions: $50.00 * 1,000 = $50,000 Number of Earned Conv.: 200 Value of Earned Conv.: $50.00 * 200 = $10,000 10/29/2009 www.meteorsolutions.com @meteorsolutions 27

Earned Media ROI Earned Media ROI (Visits) 2,000 * $2.50 / 10,000 * $2.50 = 20% Earned Media ROI (Conversions) 200 * $50.00 / 1,000*$50.00 = 20% 10/29/2009 www.meteorsolutions.com @meteorsolutions 28

Tracking Earned Media ROI by Tactic/Channel 10/29/2009 www.meteorsolutions.com @meteorsolutions 29

The ROI of earned social media

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