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E Consultancy Social Media Monetisation Case Study

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Monetising Social Media A case study in measuring the value of social media marketing online

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E Consultancy Social Media Monetisation Case Study

  1. Monetising Social Media A case study in measuring the value of social media marketing online Ashley Friedlein CEO E-consultancy.com
  2. “ The future of the social web ” “ Harnessing Social Media for B2B and B2C marketing campaigns” “ How UK Government approaches the web and social media ” “ Social and Professional Networking how marketers and users navigate in the Web 2.0 world” “ The impact and ROI of social retail ”
  3. What is ‘Social Media’? <ul><li>Blogs </li></ul><ul><li>Discussion Boards & Communities </li></ul><ul><li>Product review sites </li></ul><ul><li>Media-sharing </li></ul><ul><li>Social Networking </li></ul><ul><li>Bookmarking / tagging </li></ul><ul><li>‘ Social commerce’, ‘social news’ etc…. </li></ul>
  4. “ Internet-based tools and venues where anyone can communicate publicly”
  5. Universal McCann Social Media Study
  6. Great for PR BUT…
  7. Q: Has Second Life worked for you? A: “It’s a lot more hype than reality.” Chris Shimojima, VP, Nike.om Q: How did the YouTube clip help generate pledges? A: “…i t's not a top referring site … in terms of pledges and uptake of products, we're not seeing that come through. ” Rob Merrington, Head of Brand Advertising, EDF Energy
  8. Jerry Maguire, 1996
  9. How do we make money? <ul><li>Advertising </li></ul><ul><ul><li>Average £20 per thousand page views / 2 ads per page / 3 pages views per visit </li></ul></ul><ul><ul><li>Average advertising value per visit = 12p </li></ul></ul><ul><li>Commerce (Subscriptions, Memberships, Events, Training etc.) </li></ul><ul><ul><li>Conversion rate = 0.25% </li></ul></ul><ul><ul><li>Average order value = £200 </li></ul></ul><ul><ul><li>Average commerce value per visit = 50p </li></ul></ul>
  10. Average Total Value / Visit = 62p
  11. (but some visits are more valuable than others)
  12. Direct Traffic Indirect Traffic (aka Google)
  13. Top Referring Domains
  14. 7,000 visits a day from Google = £4,340 a day…
  15. How many more direct visits can we get? Can we get more Google love? from ‘social media marketing’
  16. Question 1 Should we engage with sites that deliver VOLUME (REACH) or INFLUENCE?
  17. Answer 1 Both… VOLUME = VOLUME INFLUENCE = SEO = VOLUME
  18. Question 2 So which sites would deliver volume (and the right prospective customers) And which (SEO) influence?
  19. Answer 2 VOLUME / REACH INFLUENCE
  20. Lots of sites…
  21. Prioritised + How to approach
  22. Go engage!
  23. Links via Online PR
  24. BBC Internet Blog
  25. Multilingual Search Community
  26. BazaarVoice Blog
  27. Internetworldstats.com
  28. Facebook
  29. Links via Answering Questions
  30. Yahoo! Answers
  31. LinkedIn Answers
  32. WikiAnswers
  33. Wikipedia
  34. Links via Profiles / ‘Channels’
  35. YouTube Channel
  36. Twitter Channel
  37. Slideshare Channel
  38. Dailymotion
  39. Veoh
  40. Links via Bookmarking / Tagging
  41. Digg
  42. Del.icio.us
  43. Was it worth it?
  44. Scores on the doors…
  45. Cost <ul><li>Search Agency </li></ul><ul><ul><li>£3,000 </li></ul></ul><ul><li>Data / Tools </li></ul><ul><ul><li>Free (-ish) </li></ul></ul><ul><li>Internal Time </li></ul><ul><ul><li>5 days worth of time </li></ul></ul>Call it £10,000
  46. Referred visits in last 6 weeks <ul><li>Stumbleupon </li></ul>1,369 LinkedIn 669 Wikepedia 547 Del.icio.us 276 Twitter 106
  47. Views = 1,746 No. referred visits = 5
  48. No. referred visits = 77
  49. Total no. ‘social media’ referred visits = 18,000
  50. Value = 18,000 X 62p = £11.16k…
  51. SEO impact?
  52. Google Natural Search Referrals
  53. Total no. incremental visits for SEO improvement = 72,000
  54. Value = 72,000 X 62p = £44.64k…
  55. ROI = (£11.16K + £44.64k) / £10k = 558%
  56. BUT… (there’s always a but)
  57. How many of these links came from this campaign ?
  58. Do we really know the Google improvements came about from this campaign ?
  59. (but some visits are more valuable than others) less
  60. We assumed Average commerce value per visit = 50p
  61. So how much did we actually sell?
  62. £112k sold online in the period
  63. ‘ Social media’ referred sales… £2.4k (2.1% of sales)
  64. And EVERY SINGLE ONE of those... ALSO searched Google on us before buying
  65. Other Benefits <ul><li>Built PR contacts db </li></ul><ul><li>Found high-performing new affiliates </li></ul><ul><li>Found new partners (e.g. for contras, co-registration etc.) </li></ul>
  66. Other Benefits <ul><li>Built influence / credibility </li></ul>
  67. Conclusion <ul><li>Worth it but </li></ul><ul><ul><li>Quite a bit of work </li></ul></ul><ul><ul><li>Value in tangential areas </li></ul></ul><ul><li>Good-ish for traffic; less good for sales </li></ul><ul><li>Indirect traffic via search bigger than direct traffic (and higher value) </li></ul><ul><li>But mostly… </li></ul>
  68. Questions? E-consultancy Resources: <ul><li>Online Measurement and Strategy Report 2008 (with Lynchpin) </li></ul><ul><li>http://www.e-consultancy.com/publications/online-measurement-and-strategy-report-2008/ </li></ul><ul><li>Web Analytics Buyer’s Guide </li></ul><ul><li>http://www.e-consultancy.com/publications/web-analytics-buyers-guide-2007/ </li></ul><ul><li>Web Analytics Request for Proposal Template </li></ul><ul><li>http://www.e-consultancy.com/publications/web-analytics-rfp-request-for-proposal/ </li></ul><ul><li>Web Analytics Business Case </li></ul><ul><li>http://www.e-consultancy.com/publications/web-analytics-business-case </li></ul><ul><li>Measurement, Analytics and Optimisation Briefing </li></ul><ul><li>http://www.e-consultancy.com/publications/analytics-measurement-optimisation-briefing-march-2008/ </li></ul>

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