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Measuring Value from Social Media

          Steve Latham
           Spur Digital
           January 2008
Outline
 Industry Trends
 Digital media landscape
 Why Social Media
 Barriers to Online Investment
 Metrics
 ROI analysis
...
Industry Trends
  Global online ad spend > $80 billion by 2011(1)
      $42 billion to be spent in U.S.
      Online = 11....
Media Consumption is Changing
  Interactive now accounts for >30% of media time (1)
      TV = 35%, Radio = 12%, Print = 9...
Today’s Media Landscape



   TV   Direct Mail        Radio                         Print       Mobile   Digital




     ...
Digital Media Landscape
                        Video                     E-Mail
                                         ...
Social Media Has Gone Mainstream
                 Internet Usage Increasingly Favors Social Media
   Watch Internet (strea...
Trust in Peers Trumps All Other Sources
 Online Consumers Turn to Friends or Acquaintances for Information
        Opinion...
User Generated Video is Exploding

  User Generated Video
  • User-Generated Video made up
    47% of the total online vid...
So What’s the Problem???
 If Social Media is so great, why aren’t more brands
 and agencies using it?


         (beyond t...
Barriers to Online Investment
 2007 McKinsey study of 410 marketing execs found
 the primary barriers to online investment...
Web 1.0 Metrics (sample dashboard)
                                                                                       ...
What Should We Measure for Web 2.0?
 What are the “right” metrics?
   Exposure to media and/or web site
         Impressio...
How Do We Value Engagement?
 Determine how ACTIONS                                INTENT
  Action                  Value
 ...
ROI Case Study
 Client: consumer retailer seeking to drive in-
 store purchases

 Insight: target audiences are heavy inte...
ROI Methodology
 Define the metrics that indicate intent

 Project conversion rates and expected value for
 each audience ...
ROI Analysis
Value Impact of Existing Customers
                                                         Est. Conv        ...
Sample ROI Analysis (continued)

Impact of New + Existing Customers
                                                      ...
Now What?
 Once you have a ROI model, build the business
 case
   Document the assumptions
   Show the expected economic i...
In Closing…
 We all know the value is there…
 …We just need to be able to show it

 There is no silver bullet to building ...
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Web 1.0 Metrics (sample dashboard)
Daily Downloads Daily Visits
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Daily and Cumulative Leads
Cumulative Downloads Cumulative Visits
20,000 180,000
18,000 160,000
16,000
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Campaign Summary # Leads by Outlet
TOTAL TO DATE Visits DLs Cost Cost / DL Cost per Download
Downloads by Outlet
127,942 15,984 $ 87,780 $ 5.49
7,000 $12.00 Email
Email
6,000
$10.00
ACTIVE CAM PAIGNS
Media Last This $ / DL Total $ / DL 5,000
Banners $8.00
Outlet Week W eek This Wk To Date To Date Search
4,000
List Vendor 1 371 363 $ 14.91 1,224 $ 9.56
$6.00
List Vendor 2 88 48 $ 2.00 1,889 $ 1.61 3,000
CPA 1 335 168 $ 3.00 1,796 $ 1.65
$4.00 Banners
CPA 2 1,570 598 $ - 2,168 $ 4.61 2,000
Ad Vendor 359 104 $ 7.08 463 $ 6.09 Search
Google 999 942 $ 1.90 2,380 $ 1.90 1,000 $2.00
Overture 206 155 $ 1.24 1,314 $ 1.24
AskJeeves 71 41 $ 3.80 244 $ 3.80 - $-
Downloads Cost Per Download




12 © 2007 Spur Digital LP. All rights reserved.

Published in: Business, News & Politics
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