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Measure Social Media Barbara Lewis Ss


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How media success is measured; thoughts on how to measure social media results; presentation at Online Community Business Forum Mar 2009 Sonoma CA.

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Measure Social Media Barbara Lewis Ss

  1. 1. Measure Social Media Presented by Barbara Lewis On-line Business Community Forum Sonoma, California March 20, 2009
  2. 2. Problem: Too Many Marketing Activities ~ $400b/year Events 1922 1980s 1856 1941 1889 1673 What’s driving sales? 2
  3. 3. Problem: Too Many Internet Marketing Activities ~ $25b/year Mid ’90s Late ’90s Mid 2000s Early 2000s Late 2000s Banners Clicks Key words Paid search Social Media Affiliates SEO Email What’s driving sales? 3
  4. 4. Social Media Makes Measurement Harder Podcasts RSS Feeds YouTube Web 2.0 LinkedIn MySpace What’s the result Wikis that impacts the firm? Blogs Twitter 2-way Facebook Delicious Digg 4
  5. 5. Now we can determine what’s working & what’s not Econometrics Results determine the effectiveness of We gather variables that could  marketing spend – affect outcomes and analyze. what’s working & what’s wasted. Optimization Results provide optimal We take results of econometric  budget across marketing analysis and build optimization activities for maximum model. performance. Econometrics & optimizations have been used for decades with CPG companies; in the past 10 years for other companies. MarQuant Analytics has been doing econometrics & optimizations since 2003.
  6. 6. Broad range of data inputs can affect outcomes TV Print DM Web Housing starts Unemployment Gas prices Acquisition External Factors Outcome variables can be customer equity, Other new or total New Customers Controllable customers, Factors profitability, market share, Sales force # unit sales, etc. ATMs/branches per capita 6
  7. 7. Marketing Other Factors Week 1 National Local 2 X X Segments Pr Brand od Marketing Other u ct s Factors 3 X X Segments Pr od Product Marketing Other 4 u ct s Factors 5 Segments Pr od Marketing Other u ct s Factors 6 Marketing Other Factors Segments Pr od Marketing Other u ct s Factors 7….156 among variables over time Segments Pr od Marketing Other u ct s Factors Segments Segments Pr od Marketing Other u ct s Factors Weekly data over a three-year period is ideal. Segments Pr od Marketing Other u ct s Factors Segments Pr od u ct s 7 Econometric analysis determines relationship Variation is key
  8. 8. Econometric analysis produces equation that explains objective (revenues in this case) Equation Monthly Revenues=Base Revenues x Television 0.100 x Radio0.031 x Web Display0.154 x Web Search0.111 x Print 0.091x Direct 0.122  Internal Factors j=1 External Factors  n m j i i=1 R2 indicates % of variance that is explained in prediction compared to actual. 8
  9. 9. Econometric results include elasticities that indicate the lift for marketing variables Marketing Expense Elasticity The response parameters (predictors) are expressed 1. Television 0.100 as elasticities. 2. Radio 0.020 For example, if the “TV 3. Web Display 0.154 spend” elasticity = 0.1 then 4. Web Search 0.111 that means that increasing TV spend by 10% will yield a 5. Print 0.091 1% increase in revenue. If Print spend increases 10%, 6. Direct Mail 0.122 revenue increases 0.9%. Elasticities guide reallocation of marketing budget to marketing activities that are generating the most lift.
  10. 10. Optimal Marketing Mix Spend $100 Million Budget 10
  11. 11. Typical Social Media Metrics Content Metrics  Relevance Metrics  Impact Metrics  11
  12. 12. Content Social Media Metrics Description Who is talking about you? Who is talking about your industry? What are they saying? What Examples: Net Promoter score, Google Alerts, Cymfony, Radian6, Buzz Metrics, Techrigy, Blogsearch, Technorati, Social Media Platform Provider 12
  13. 13. Relevance Social Media Metrics Description – relate your offer with customer interests* Fundamental Metric Source Reveals Influence Time on site Web Analytics Value of the opinion & Bounce rate Google Analytics conversations of Omniture & Web Trends interested purchasers Engagement Pass Alongs Above+ Message interest level: Comment to Post Ratio DoubleClick & Digg will customers forward Diggs, Stumbles & bookmarks StumbleUpon referral Podcast Listen & Views Loyalty Blog Post for Brand BlogPulse Context & intensity of Recommendations Google Alerts blog posts Tweeters Cymfony & Techrigy Blogserch & Technorati *Social Media Marketing – An Hour a Day by Dave Evans 13
  14. 14. Impact Social Media Metrics Description – measure effectiveness* Fundamental Metric Source Reveals Audience Referrers Web Analytics To Whom your social Demographics Google Analytics media campaign is Omniture & Web Trends appealing DoubleClick Influence Time on site Above + Audience involvement Loyalty Bounce rate Repeat Customers with message Action Conversions Above + Number of desired Reviews Reviews & Ratings outcome (products Recommendations Platform purchased) e.g. Tweet Tweets, etc. Net Promoter reference to purchase *Social Media Marketing – An Hour a Day by Dave Evans 14
  15. 15. What are the Social Media Metrics? Depends on Business Goal Business Goal $ Metrics Subscription Customer Lifetime Value $ Spend Retention rate Advertising $ Demographics Number of visitors/members Time on site – pay attention Pass alongs Users Cost reduction # problems solved by users # problems /time tech support Insight Solutions Quality of solutions Demographics # & volume of conversation Predictive analytics 15
  16. 16. Case Study – computer company Market Response Self Contained Data Problem: Can we leverage social media to generate $ Solution: Offer only social media special promotion Benefit: Generated $1 million in revenue Holistic Approach Problem: Determine if social media is working Solution: Analyze data (all marketing activities, external, economic, etc.) Benefit: Identify impact of social media on business goals 16
  17. 17. Recommendations Tie social media objectives to business goals Identify data that measure business goal achievement Capture appropriate data Analyze data Monitor changes in input/output variables to determine what’s working and what’s not working Test various options 17
  18. 18. What’s Next? Social Capital – value of connections among people in social networks Currently no measure for social capital What metrics would define social capital? Pilot program to determine social capital measurement and relationship to business goals Do you want to participate? 18
  19. 19. For More Information Contact: Barbara Lewis Tel: (310) 471-8979 499 North Canon Drive, 4 th Floor Beverly Hills, CA 90210