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Bringing <br />smart & sexy back<br />The pay-per-success model in social media advertising<br />Octavian MihaiRock&Social <br />Internet Week New York 8 June 2011<br />

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Social media knowledge<br />Agencies<br />Students <br />Not sure<br />What do you expect?<br />

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Short story of R&S<br />Social media & Brand community model<br />Pay-per-success model & Business case<br />Q&A Fun, fun, fun!<br />

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Our story<br />

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THE NAME<br />

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Logos from cute to sexy<br />

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July 2010<br />

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August 2010<br />

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September 2010<br />

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March 2011<br />Branding by our patient partners StudioFeed.ca<br />

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Business cards cute to sexy<br />

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August 2010<br />

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October 2010<br />

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March 2011<br />

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May 2011<br />

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T-shirt mania<br />

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Founding principles<br />

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Be global<br />Social media<br />Pay-per-success<br />Work with respectful clients<br />

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R&S 3 tier services<br />STRATEGY <br />PLANNING <br />INSIGHTS<br />Community management<br />Training<br />Public Relations<br />SM development <br />Facebook apps<br />Mobile apps<br />

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R&S 3 tier PARTNERSHIP<br />DIRECTCLIENTS<br />AGENCIES<br />PARTNERS<br />

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global<br />

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Montreal<br />New york<br />Guadalajara<br />Paris<br />

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Passion and THEORY<br />

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We are in the business of brand community building.<br />

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Not (only) about<br />conversations<br />

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Not (only) about<br />engagement<br />

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Not (only) about<br />technology<br />

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Not (only) about<br />conversion<br />

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Social media<br />

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(for lack of a better and widely accepted word)<br />

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Is about the democratization of ideas<br />

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Is about the creation of communities of ideas<br />

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And from a business perspective<br />

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It’s about creating<br />

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meaningless<br />Daniel Hernandez<br />

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Or<br />

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meaningful<br />Daniel Hernandez<br />

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Relationships between consumers and your brand<br />

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Social media facilitates the creation of a consumer brand community<br />

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YEEEEE…<br />FUN, FUN, FUN!<br />Gregory A. Perez<br />

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These are your employees, your consumers, your regulators<br />

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See your brand community as a SOCIAL CRM system on steroids <br />

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Social media touches every aspect of your business<br />

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hr<br />Marketing<br />sales<br />Customer support<br />Product, etc<br />

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A simple brand community model<br />

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Brand community is a strategic approach to business that happens to use social media<br />

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A strong brand community will<br />

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Decrease marketing and sales costs<br />

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Increase brand equity and sales<br />

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Provide detailed business intelligence<br />

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Increase employee engagement and decrease hr costs<br />

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Brand community attributes<br />SIZE<br />ENGAGEMENT<br />REACH<br />platforms<br />

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Creating a brand community<br />

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1. Choose a brand community platform<br />

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Think outside of facebook<br />

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OR NOT<br />

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General brand community<br />AGGREGATOR : FACEBOOK, ELETTER, FORUMS…<br />

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SOCIAL CRM<br />SAP FACEBOOK & TWITER BUSINESS ADD-ONS<br />

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2. Create your ambassador VIP community<br />

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VIP Ambassador community<br />DETECT ENGAGED MEMBERS<br />FANGAGER.com<br />

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VIP Ambassador community<br />PRIVATE VIP COMMUNITY<br />ThisWeekInStartups.com<br />

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3. Detect and build your influencers community<br />

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MVP INFLUENCER community<br />INFLUENCERS AROUND YOUR BRAND COMMUNITY<br />Radian6<br />

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Generate feedback loop between your brand communities to increase size, engagement and reach<br />

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Pay-per-succeSS<br />

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Link remuneration with result milestones<br />

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PAY-PER-SUCCESS Advantages <br />

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Everybody is focused on results (agency and client)<br />

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Procurement is happy<br />

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Consumer gets the best deal<br />

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Defining success kpis<br />

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Remember that Social media touches every aspect of your business<br />

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Hrkpis<br />No Qualified CVs<br />Employee engagement<br />

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Marketing kpis<br />Brand awareness<br />MARKET SHARE VS COMPETITION<br />

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Sales kpis<br />Qualified leads<br />Customer acquisition<br />

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Community based kpis<br />size<br />Engagement %<br />Reach<br />

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Remuneration models<br />

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e.g. client pays<br />40% - 60% at first<br />Rest only after and if 40% - 60% of results are achieved<br />

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e.g. agency receives<br />40% - 60% at first for production and to start the campaign<br />Rest after results are achieved<br />

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A Simple pay-per-success Business case & process<br />

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STEP 1<br />Monitor and analyze<br />

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Brand & Category Development Index (BDI& CDI)<br />Growth Potential Index (GPI)<br />

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Competitor analysis<br />Demographic analysis<br />

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CTR, CPC, CPM, conversion rates, cost per acquisition, cost per lead<br />profit margins<br />

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Example<br />Say, client needs to expand her facebook brand community<br />

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Example<br />Gather all necessary benchmarks: competitor analysis, demographic analysis, etc<br />

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Tips to define kpis<br />Sell an analysis mandate<br />Run an initial campaign<br />Benchmark on competition and previous efforts<br />

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STEP 2<br />Define your client’s kpis<br />

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Example<br />Community size: 50K <br />Engagement: 10%<br />

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STEP 3<br />analyse benchmarks & negotiate<br />

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Example<br />Qualified member: $0.75 <br />Engagement If under 5% then $0If 5-10% then + $1 / engaged member If higher than 10% then + $1.2 / engaged member over 10%<br />

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STEP 4<br />Remuneration model<br />

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Example<br />a. Qualified member: $0.75 <br />

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Example<br />b. Engagement / monthIf under 5% then $0If 5-10% then + $1 / engaged member If higher than 10% then + $1.2 / engaged member over 10%<br />

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Example<br />For 50 000 & 10% over 3 monthsestimated campaign cost $47.500<br />

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projections<br />Client was ready to pay $70 000<br />Objectives50 000 & 10% = $47.500<br />Result60 000 & 15% = $59.000<br />

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STEP 5<br />

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5<br />

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5…<br />

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5… …<br />

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Don’t you know that the time has arrived…<br />

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STEP 5<br />Execute campaign<br />

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Be creative<br />Monitor<br />Optimize<br />Iterate fun fun fun<br />

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Recap pay-per-success<br />

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pay-per-success phases<br />Monitor and analyze<br />Define your client’s kpis<br />Analyze and negotiate<br />Build remuneration model<br />Execute campaign<br />

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pay-per-success rules<br /><ul><li>40% - 60% at start

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Higher maximum budget – keep incentives up – min 20%

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Gather best data and negotiate

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Agency must have strategic lead

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Client must pay fast</li></li></ul><li>

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Last thoughts<br />

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Pay-per-success Walks the talklinking remuneration with advertising milestones<br />

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The Brand community approach helps you Ask the right questions<br />

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social media Advertising is about creativity and building a community not only about Ad-words and pay-per-click.<br />

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Creativity can be used everywhere even in your business model. <br />

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Where to rock&Social? <br />

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Champion pay-per-success & brand community building<br />Stay smart & Sexy<br />keep on Having fun<br />

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2011 official opening in new york… Starting this fall<br />

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2012 Back at Internet week the story will continue!<br />

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Let it rock & please connect<br />

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Q&A<br />

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HERE IS A CUTE PIC<br />

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Q&A<br />

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Presentationavailableat<br />@rockandsocial<br />@octavianmihai<br />www.rockandsocial.com<br />

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If you liked Tweet<br />#iwNY <3 @rockandsocial<br />

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THANK YOU! Hope ithelped!<br />

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OCTAVIAN MIHAI<br />CEO, Co-Founder<br />o@rockandsocial.com@octavianmihai@rockandsocial<br />PHOTOS ARE PROVIDED BY THE INTERNETS.LET ME KNOW IF YOU KNOW THE CREDITS OR THEY BELONG TO YOU AND WANT ME TO TAKE THEM OUT.<br />