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Verflixter ROI - Microsofts Weg vom Optimieren der Fanseite zur Erfolgsmessung (@AllFacebook Marketing Conference)

Verflixter ROI - Microsofts Weg vom Optimieren der Fanseite zur Erfolgsmessung (@AllFacebook Marketing Conference)

Verflixter ROI - Microsofts Weg vom Optimieren der Fanseite zur Erfolgsmessung von Marco Rinne (Social Media Marketing Manager,
Microsoft Deutschland GmbH) auf der AllFacebook Marketing Conference 2012 in München

Verflixter ROI - Microsofts Weg vom Optimieren der Fanseite zur Erfolgsmessung von Marco Rinne (Social Media Marketing Manager,
Microsoft Deutschland GmbH) auf der AllFacebook Marketing Conference 2012 in München

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Verflixter ROI - Microsofts Weg vom Optimieren der Fanseite zur Erfolgsmessung (@AllFacebook Marketing Conference)

  1. 1. Verflixter ROI Microsofts Weg vom Optimieren der Fanseite zur Erfolgsmessung Marco  Rinne  (marinn@microso/.com)  04/16/2012  
  2. 2. Key takeaways 1.  There already are economic concepts to deal with social media ROI 2.  Non-financial outcomes only help optimizing social media activities 3.  Opportunity costs as ROI “workaround” help to select among alternative investments 4.  ROI is defined by (financial) gains 5.  Affiliate marketing, advertising and/or social commerce can be valid approaches to financial gains and to social media ROI (where applicable)
  3. 3. The “new” digital marketing: paid, owned and earned media MS.COM   E-­‐Mail  NewsleQer   msn.de   Events,  Messen   OWNED   MEDIA   Microso/   Microso/  Partner   Channels   Microso/  Foren,   Ecosystem   Newsgroups,  Blogs,   CommuniJes   PAID   EARNED   Search  Engine   MEDIA   MEDIA   MarkeJng   3rd  Party/   Community/   Neutrale   Commercial   Social  Media   CommuniJes,     Foren  etc.   Blogs,   Display  AdverJsing   Microblogs   Social  Networks  
  4. 4. Economic concepts behind social media ROI Opportunity Costs Friedrich von Wieser (November 1914) “Theorie der gesellschaftlichen Wirtschaft” (Theory of Social Economics) “Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative foregone (that is not chosen).” (Wikipedia 01/12)
  5. 5. Economic concepts behind social media ROI The problem(s) we face: •  What’s the precise value of a social activity as a “next best alternative” (opportunity costs) •  How do you calculate the gain from a social media investment? (to use it in the ROI formula)
  6. 6. Measuring social media objectives Exposure/ Action/ Engagement (Advocacy) Awareness Conversion
  7. 7. Measuring social media objectives Counting Facebook fans Example: Development of German Windows fan page 40000 6000 Xbox DE Coop: 35000 advent calendar 5000 30000 action 4000 25000 20000 3000 15000 2000 10000 1000 5000 0 0 12/1/2010 12/3/2010 12/5/2010 12/7/2010 12/9/2010 12/11/2010 12/13/2010 12/15/2010 12/17/2010 12/19/2010 12/21/2010 12/23/2010 12/25/2010 12/27/2010 12/29/2010 12/31/2010 1/2/2011 1/4/2011 1/6/2011 1/8/2011 1/10/2011 1/12/2011 1/14/2011 1/16/2011 1/18/2011 1/20/2011 1/22/2011 1/24/2011 1/26/2011 1/28/2011 1/30/2011 Täglich Neue „Gefällt mir“-Angaben Täglich Gefällt mir nicht mehr Laufzeit „Gefällt mir“ insgesamt
  8. 8. Measuring social media objectives Monthly growth rates and polynomial trend of Facebook fan page and German brands on Facebook (Top 11-20) 30000 140000 120000 25000 100000 20000 80000 15000 60000 10000 40000 5000 20000 0 0 9 10 10 10 11 10 12 10 1 11 2 11 3 11 4 11 5 11 6 11 New Fans Lost Fans Fans (total) German FB Brands (avg.) Trend polynominal (R² = 0,96)
  9. 9. Measuring social media objectives Tracking #likes, #comments and #wallposts Activity / Engagement on German Windows Facebook fan page 800 1.20 700 1.00 600 0.80 500 400 0.60 300 0.40 200 0.20 100 0 0.00 9/1/2010 10/1/2010 11/1/2010 12/1/2010 1/1/2011 2/1/2011 3/1/2011 Daily Likes Daily Comments Daily Wall Posts
  10. 10. Measuring social media objectives How users utilize the different forms of engagement on Facebook… [Example] Engagement-Index (Windows Deutsch) - January - March 2011 1.20 1.00 0.80 0.60 0.40 0.20 0.00 1/1/2011 1/3/2011 1/5/2011 1/7/2011 1/9/2011 1/11/2011 1/13/2011 1/15/2011 1/17/2011 1/19/2011 1/21/2011 1/23/2011 1/25/2011 1/27/2011 1/29/2011 1/31/2011 2/2/2011 2/4/2011 2/6/2011 2/8/2011 2/10/2011 2/12/2011 2/14/2011 2/16/2011 2/18/2011 2/20/2011 2/22/2011 2/24/2011 2/26/2011 2/28/2011 3/2/2011 3/4/2011 3/6/2011 3/8/2011 3/10/2011 3/12/2011 3/14/2011 3/16/2011 3/18/2011 3/20/2011 3/22/2011 3/24/2011 3/26/2011 3/28/2011 3/30/2011 Engagement-Index Linear(Engagement-Index) 0.1 * #likes + 0.3 * #comments + 0.6 * #shares engagement index = page posts impressions (unique) comments and shares normally are the more valuable form of engagement
  11. 11. Measuring social media objectives Though the data is still available this index doesn’t scale well anymore… … we’re evaluating a new index. storytellers – fan adds (unique) · 100 page posts impressions (unique) Windows (deutsch) graph API excerpt
  12. 12. The transition to financial metrics Exposure/ Action/ Engagement (Advocacy) Awareness Conversion
  13. 13. The transition to financial metrics total invest in SoMe platform Exposure cost per fan = # new fans in campaign timeframe total invest in SoMe platform Engagement cost per engagement = # comments + # likes in c. timeframe total invest in SoMe platform Action cost per action = i.e. # downloads in campaign timeframe total invest in SoMe platform (Advocacy) cost per referral = # referrals in campaign timeframe
  14. 14. The transition to financial metrics Windows Campaigns Q1-3 FY 11/H2     FY 11/H2   FY 11/H2   FY 11/H1   financial metrics (avg.) Campaign (Digital)   Bridge   Holiday   Holiday   BTS           Windows campaigns (digital) Q1-3 Media Status   Budget total   Budget spent   Traffic Drivers Off-Net (paid)   Display (Banner-Placement)   Budget spent   cost per ad impression Ad impressions   Clicks (Initial responses)   Initial responses rate (CTR %)   cost per click CPC €   Primary Conversions (global&local)   Primary CR%   cost per action CPA €   SEM (Holiday ab KW 47)   Budget spent   Clicks   cost per click (SEA) CPC €   Primary Conversions cost per action (SEA) (global&local)   Primary CR%   CPA €   Total (Display+SEM)   CPC €   CPA €  
  15. 15. The transition to financial metrics
  16. 16. An integrated campaign view (no either-or decision) Digital marketing-mix in „real life“ campaign (one possible approach) earned investment owned paid „integrated“ digital campaign timeframe
  17. 17. The transition to financial gains Website  vs.  Social  Media  
  18. 18. The transition to financial gains Facebook XBOX DE affiliate marketing example Amazon media coop
  19. 19. The transition to financial gains Amazon.de „Cyber Monday“ Coop Call for Vote Facebook Engagement Limited offer Dashboard Choose 1 of 3 products Order Units = Votes Facebook Timeline post for winning product Communities Timeline affiliate link
  20. 20. The transition to financial gains (social commerce) Social commerce opportunities on Facebook … source: JWT Social Commerce Trend Report Jul11 US/UK online survey n=971 (adults 20+)
  21. 21. The transition to financial gains (social commerce) Facebook is theoretically well positioned to address something that the Internet has been notoriously bad at supporting: product discovery. But the key challenge is that Facebook is about socializing rather than shopping. […] Facebook stores are unable to replicate the full brand experience of a company’s official website […] Sucharita Mulupuru, Forrester Analyst
  22. 22. The transition to financial gains (social commerce) Windows PC Corner: Social Commerce approach
  23. 23. (some) pros and cons of this approach PROS CONS Model doesn‘t scale too well •  no ready-to-use tools Social media can be evaluated and •  data has to be collected semi- compared within the „paid, owned, automatic earned“-model •  manual comparison of paid owned earned Use of existing (and proven) ROI „hard“ ROI definition relies on alienable definitions goods/services Evaluation in financial metrics on cost Opportunity costs approach needs and revenue side possible automated order/invoice system No need to search for patterns in social Baseline measurement necessary „soft“ metrics and transactional data
  24. 24. Key takeaways 1.  There already are economic concepts to deal with social media ROI 2.  Non-financial outcomes only help optimizing social media activities 3.  Opportunity costs as ROI “workaround” help to select the best investment alternative 4.  ROI is defined by (financial) gains 5.  Affiliate marketing, advertising and/or social commerce can be valid approaches to financial gains and to social media ROI (where applicable)

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