Social Media is Dead. Long Live Social Media ROI

SOCIAL MEDIAIS DEADLONG LIVESOCIAL MEDIA ROIStefanos Karagos | XPLAIN | March 2011 xplain.co

DO U HAVE A FB PAGE?xplain.co Social media is dead. long live social media roi 22-Mar-11

A TWITTER PAGE?xplain.co Social media is dead. long live social media roi 22-Mar-11

A SOCIAL MEDIA TEAM?xplain.co Social media is dead. long live social media roi 22-Mar-11

SO WHAT?xplain.co Social media is dead. long live social media roi 22-Mar-11

IT’S DEJA VUOur Let’s go Has Legal Is this Let’s put our TVCs compe>tors Social too seen this? Working? on YouTube! have a FB Page xplain.co Social media is dead. long live social media roi 22-Mar-11

THE LONG STORY / SHORTxplain.co Social media is dead. long live social media roi 22-Mar-11

10:00 AM @ OFFICETHE SCENE / BOSS IS ENTERING THE OFFICEBOSS / SEES HIS SECRETARY SURFING IN FACEBOOKxplain.co Social media is dead. long live social media roi 22-Mar-11

THE DIALOGxplain.co Social media is dead. long live social media roi 22-Mar-11

BOSS / HOW MANY FRIENDS DO YOU HAVE?xplain.co Social media is dead. long live social media roi 22-Mar-11

BOSS / HOW MANY FRIENDS DO YOU HAVE?SECRETARY / 4.999 MY BOSSxplain.co Social media is dead. long live social media roi 22-Mar-11

BOSS / HOW MANY FRIENDS DO YOU HAVE?SECRETARY / 4.999 MY BOOSBOSS / WOWW! OUR COMPETITORS HAVE ONLY 999!BOSS / HOW LONG DID THIS TAKE?xplain.co Social media is dead. long live social media roi 22-Mar-11

BOSS / HOW MANY FRIENDS DO YOU HAVE?SECRETARY / 4.999 MY BOOSBOSS / WOWW! OUR COMPETITORS HAVE ONLY 999!BOSS / HOW LONG DID THIS TAKE?SECRETARY / ONLY ONE MONTH MY BOSS!xplain.co Social media is dead. long live social media roi 22-Mar-11

BOSS / HOW MANY FRIENDS DO YOU HAVE?SECRETARY / 4.999 MY BOOSBOSS / WOWW! OUR COMPETITORS HAVE ONLY 999!BOSS / HOW LONG DID THIS TAKE?SECRETARY / ONLY ONE MONTH MY BOSS!BOSS / CAN YOU CREATE AND RUN OUR CO’S PAGE?xplain.co Social media is dead. long live social media roi 22-Mar-11

BOSS / HOW MANY FRIENDS DO YOU HAVE?SECRETARY / 4.999 MY BOOSBOSS / WOWW! OUR COMPETITORS HAVE ONLY 999!BOSS / HOW LONG DID THIS TAKE?SECRETARY / ONLY ONE MONTH MY BOSS!BOSS / CAN YOU CREATE AND RUN OUR CO’S PAGE?SECRETARY / YES MY BOSS! GIVE ME 5 MINUTES. the time it takes ! to start your FB Page!xplain.co Social media is dead. long live social media roi 22-Mar-11

BUT HE HADN’T SEEN HER PERSONAL PAGE.. content Her sexy photos from her latest vaca2ons audience 97% “hungry” men 18-‐35 xplain.co Social media is dead. long live social media roi 22-Mar-11

a+er 6 months THE RESULTxplain.co Social media is dead. long live social media roi 22-Mar-11

555 FANS/LIKERS content audience Bla, Bla, Bla, Bla Who Knows? Bla, Bla, Bla Who Cares? xplain.co Social media is dead. long live social media roi 22-Mar-11

facebook? my ass NEXT TIME MARKETING MANAGER ASKED HIS BOSS TO INVEST €€€€ ON FACEBOOK MARKETINGxplain.co Social media is dead. long live social media roi 22-Mar-11

INVEST?xplain.co Social media is dead. long live social media roi 22-Mar-11

INVESTMENT MEANSxplain.co Social media is dead. long live social media roi 22-Mar-11

€$¥xplain.co Social media is dead. long live social media roi 22-Mar-11

ROIxplain.co Social media is dead. long live social media roi 22-Mar-11

WHAT DOES IT MEAN ROI?xplain.co Social media is dead. long live social media roi 22-Mar-11

it’s recession >me RETURN ON INVESTMENTROI = [GAIN FROM INVESTMENT – COST OF INVESTMENT] /COST OF INVESTMENT the formula! xplain.co Social media is dead. long live social media roi 22-Mar-11

THE BASIC RULES OF ROIxplain.co Social media is dead. long live social media roi 22-Mar-11

RULE#1ROI IS A BUSINESS METRIC, NOT A MEDIA METRIC.RULE #2ROI IS 100% MEDIA-AGNOSTIC.RULE #3THE VALUES USED IN THE ROI EQUATION ARENONVARIABLE.xplain.co Social media is dead. long live social media roi 22-Mar-11

RULE#4ROI STANDS FOR RETURN ON INVESTMENT. PERIOD.RULE #5EVERY RESOURCE YOU ASSIGN TO A PROJECT HAS AVALUE.RULE #6ROI CAN ONLY CALCULATED AFTER THE INVESTMENTHAS YIELD A RETURN.xplain.co Social media is dead. long live social media roi 22-Mar-11

ROI IS BUSINESS MEASUREMENT, NOT ALCHEMY.IF YOUR EQUATION SHOWS A COST VALUE IN EUROSAND A GAIN VALUE EXPRESSED IN FACEBOOKLIKERS, YOU’RE IN TROUBLE.xplain.co Social media is dead. long live social media roi 22-Mar-11

SOCIAL MEDIA IS NOT FREExplain.co Social media is dead. long live social media roi 22-Mar-11

EVERYTHING YOU PUT INTOA SOCIAL MEDIA PROGRAMHAS A COST ATTACHED TO ITxplain.co Social media is dead. long live social media roi 22-Mar-11

INCLUDING SOCIAL MEDIATO THE P&L WTF? xplain.co Social media is dead. long live social media roi 22-Mar-11

€€€€ €€€€ NONFINANCIAL FINANCIAL INVESTMENT ACTION REACTION IMPACT IMPACT THIS IS VERY IMPORTANT, BUT ROI DOESN’T LIVE HERE. THE INVESTMENT-RETURN RELATIONSHIPxplain.co Social media is dead. long live social media roi 22-Mar-11

€€€€ €€€€ NONFINANCIAL FINANCIAL INVESTMENT ACTION REACTION IMPACT IMPACT WELCOME TO ROI WORLDxplain.co Social media is dead. long live social media roi 22-Mar-11

DARE TO CONNECT THEM?What is the unit of measure [the currency in other words] of inspira>on? How about Innova>on? Rela>onships, even? xplain.co Social media is dead. long live social media roi 22-Mar-11

THE MAGIC WORD HERE IS:xplain.co Social media is dead. long live social media roi 22-Mar-11

CORRELATIONxplain.co Social media is dead. long live social media roi 22-Mar-11

IS THERE AN EASY WAY?xplain.co Social media is dead. long live social media roi 22-Mar-11

YESxplain.co Social media is dead. long live social media roi 22-Mar-11

FIRST THINGS FIRSTxplain.co Social media is dead. long live social media roi 22-Mar-11

#1 ESTABLISH A BASELINE Start of Ac>vity Start of SM Program Start of Campaign Start of Measurement Trend: 10% Growth xplain.co Social media is dead. long live social media roi 22-Mar-11

#2 CREATE ACTIVITY TIMELINE 1 2 3 4 5 6 7 8 9 10 11 12 1st Month 2nd Month ... xplain.co Social media is dead. long live social media roi 22-Mar-11

#3 MONITOR THE VOLUME OF MENTIONS Overall Men>ons Posi>ve Men>ons Nega>ve Men>ons 1 2 3 4 5 6 7 8 9 10 11 12 Months xplain.co Social media is dead. long live social media roi 22-Mar-11

#4 MEASURE TRANSACTIONAL FORERUNNERS WHAT YOU MEASURE WHAT YOU SHOULD CAN MEASURE HERE MEASURE xplain.co Social media is dead. long live social media roi 22-Mar-11

#5 LOOK AT TRANSACTIONAL DATA Sales Revenue xplain.co Social media is dead. long live social media roi 22-Mar-11

#5 LOOK AT TRANSACTIONAL DATA Transac>ng Customers xplain.co Social media is dead. long live social media roi 22-Mar-11

#6 OVERLAY ALL YOUR DATA [STEPS 1-5] ONTO A SINGLE TIMELINEACTIVITIES SOCIAL DATA WEB DATA 160 160 160 140 140 140 120 120 120 100 100 100 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 Jan Apr Jul Oct Jan Jan Apr Jul Oct Jan Jan Apr Jul Oct JanTRANSACTIONS LOYALTY METRICS 160 160 140 140 120 120 100 100 80 80 AND MORE... 60 60 40 40 20 20 0 0 Jan Apr Jul Oct Jan Jan Apr Jul Oct Janxplain.co Social media is dead. long live social media roi 22-Mar-11

#7 LOOK FOR PATTERNS CORRELATIONS 160 140 120 100 80 60 40 20 0 Jan Apr Jul Oct Janxplain.co Social media is dead. long live social media roi 22-Mar-11

#8 PROVE & DISPROVE RELATIONSHIPS CORRELATIONS 160 140 Why? Why Not? 120 100 80 60 40 How this group was touched by 20 SM or WoM? 0 Jan Apr Jul Oct Janxplain.co Social media is dead. long live social media roi 22-Mar-11

I NEED A PROVExplain.co Social media is dead. long live social media roi 22-Mar-11

GENERAL MILLS DAVID WITT Senior Manager, Brand Public Rela2ons, General Mills xplain.co Social media is dead. long live social media roi 22-Mar-11

WHAT WILL HAPPEN IF YOUDON’T NOT CARE ABOUT ROI?xplain.co Social media is dead. long live social media roi 22-Mar-11

it’s advocates >me RETURN ON IGNORANCExplain.co Social media is dead. long live social media roi 22-Mar-11

IGNORANCE :BRAND’S DEATHxplain.co Social media is dead. long live social media roi 22-Mar-11

THANK YOU!xplain.co Social media is dead. long live social media roi 22-Mar-11

LEARN MORExplain.co Social media is dead. long live social media roi 22-Mar-11

CONTACT USIF YOU CARE ABOUT YOURSOCIAL MEDIA ROI+30 210 6395234 xplain.co karagos@xplain.co Cyprus Bahrain Greece Romania Switzerland xplain.co Thanks for the inspira>on: James Belasco, Oliver Blanchard, Alexander Osterwalder