Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising

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A year ago during Internet Week we launched Rock&Social, a social media agency based on a ballsy pay-per-success model. We are back to present how we made it work. We'll showcase the model, KPIs and simple business cases. We hope our story will inspire and provide a framework for agencies who want to walk the talk. Rock on!

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  • Let me takeyou in a briefhistory of ourcompany. Hereis the first document weevercreated. The name rock and social wasneveractually part of our brainstorming. Initiallyitwasused a placeholder, a namethat came from the gut – but aftercoming up with a few dozen possible names – Mikael said, why not use Rock and Social? So wedecided to stick withit.
  • Our services aredivided in 3 tiers, the 1st one beingstrategy, management and e-reputation, the second one communitymanagment and public relations and the third one isdevelopment.
  • Are you still with me?
  • Ok, let’s talk about the pay-per-successmodesl.
  • Let’s look over a 5 steps business case
  • Ok,we’redone.Allit’sleftis to execute the campaign.
  • Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising

    1. 1. 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 />
    2. 2. Social media knowledge<br />Agencies<br />Students <br />Not sure<br />What do you expect?<br />
    3. 3. 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 />
    4. 4. Our story<br />
    5. 5.
    6. 6.
    7. 7.
    8. 8. THE NAME<br />
    9. 9. Logos from cute to sexy<br />
    10. 10. July 2010<br />
    11. 11. August 2010<br />
    12. 12. September 2010<br />
    13. 13. March 2011<br />Branding by our patient partners StudioFeed.ca<br />
    14. 14. Business cards cute to sexy<br />
    15. 15. August 2010<br />
    16. 16. October 2010<br />
    17. 17. March 2011<br />
    18. 18. May 2011<br />
    19. 19.
    20. 20. T-shirt mania<br />
    21. 21.
    22. 22.
    23. 23.
    24. 24. Founding principles<br />
    25. 25. Be global<br />Social media<br />Pay-per-success<br />Work with respectful clients<br />
    26. 26. 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 />
    27. 27. R&S 3 tier PARTNERSHIP<br />DIRECTCLIENTS<br />AGENCIES<br />PARTNERS<br />
    28. 28. global<br />
    29. 29. Montreal<br />New york<br />Guadalajara<br />Paris<br />
    30. 30. Passion and THEORY<br />
    31. 31. We are in the business of brand community building.<br />
    32. 32. Not (only) about<br />conversations<br />
    33. 33. Not (only) about<br />engagement<br />
    34. 34. Not (only) about<br />technology<br />
    35. 35. Not (only) about<br />conversion<br />
    36. 36. Social media<br />
    37. 37. (for lack of a better and widely accepted word)<br />
    38. 38. Is about the democratization of ideas<br />
    39. 39. Is about the creation of communities of ideas<br />
    40. 40. And from a business perspective<br />
    41. 41. It’s about creating<br />
    42. 42. meaningless<br />Daniel Hernandez<br />
    43. 43. Or<br />
    44. 44. meaningful<br />Daniel Hernandez<br />
    45. 45. Relationships between consumers and your brand<br />
    46. 46. Social media facilitates the creation of a consumer brand community<br />
    47. 47. YEEEEE…<br />FUN, FUN, FUN!<br />Gregory A. Perez<br />
    48. 48. These are your employees, your consumers, your regulators<br />
    49. 49. See your brand community as a SOCIAL CRM system on steroids <br />
    50. 50. Social media touches every aspect of your business<br />
    51. 51. hr<br />Marketing<br />sales<br />Customer support<br />Product, etc<br />
    52. 52. A simple brand community model<br />
    53. 53. Brand community is a strategic approach to business that happens to use social media<br />
    54. 54. A strong brand community will<br />
    55. 55. Decrease marketing and sales costs<br />
    56. 56. Increase brand equity and sales<br />
    57. 57. Provide detailed business intelligence<br />
    58. 58. Increase employee engagement and decrease hr costs<br />
    59. 59. Brand community attributes<br />SIZE<br />ENGAGEMENT<br />REACH<br />platforms<br />
    60. 60. Creating a brand community<br />
    61. 61. 1. Choose a brand community platform<br />
    62. 62. Think outside of facebook<br />
    63. 63. OR NOT<br />
    64. 64. General brand community<br />AGGREGATOR : FACEBOOK, ELETTER, FORUMS…<br />
    65. 65. SOCIAL CRM<br />SAP FACEBOOK & TWITER BUSINESS ADD-ONS<br />
    66. 66. 2. Create your ambassador VIP community<br />
    67. 67. VIP Ambassador community<br />DETECT ENGAGED MEMBERS<br />FANGAGER.com<br />
    68. 68. VIP Ambassador community<br />PRIVATE VIP COMMUNITY<br />ThisWeekInStartups.com<br />
    69. 69. 3. Detect and build your influencers community<br />
    70. 70. MVP INFLUENCER community<br />INFLUENCERS AROUND YOUR BRAND COMMUNITY<br />Radian6<br />
    71. 71. Generate feedback loop between your brand communities to increase size, engagement and reach<br />
    72. 72.
    73. 73. Pay-per-succeSS<br />
    74. 74. Link remuneration with result milestones<br />
    75. 75.
    76. 76. PAY-PER-SUCCESS Advantages <br />
    77. 77. Everybody is focused on results (agency and client)<br />
    78. 78.
    79. 79. Procurement is happy<br />
    80. 80.
    81. 81. Consumer gets the best deal<br />
    82. 82.
    83. 83. Defining success kpis<br />
    84. 84. Remember that Social media touches every aspect of your business<br />
    85. 85. Hrkpis<br />No Qualified CVs<br />Employee engagement<br />
    86. 86. Marketing kpis<br />Brand awareness<br />MARKET SHARE VS COMPETITION<br />
    87. 87. Sales kpis<br />Qualified leads<br />Customer acquisition<br />
    88. 88. Community based kpis<br />size<br />Engagement %<br />Reach<br />
    89. 89. Remuneration models<br />
    90. 90.
    91. 91.
    92. 92. e.g. client pays<br />40% - 60% at first<br />Rest only after and if 40% - 60% of results are achieved<br />
    93. 93. e.g. agency receives<br />40% - 60% at first for production and to start the campaign<br />Rest after results are achieved<br />
    94. 94. A Simple pay-per-success Business case & process<br />
    95. 95. STEP 1<br />Monitor and analyze<br />
    96. 96. Brand & Category Development Index (BDI& CDI)<br />Growth Potential Index (GPI)<br />
    97. 97. Competitor analysis<br />Demographic analysis<br />
    98. 98. CTR, CPC, CPM, conversion rates, cost per acquisition, cost per lead<br />profit margins<br />
    99. 99. Example<br />Say, client needs to expand her facebook brand community<br />
    100. 100. Example<br />Gather all necessary benchmarks: competitor analysis, demographic analysis, etc<br />
    101. 101. Tips to define kpis<br />Sell an analysis mandate<br />Run an initial campaign<br />Benchmark on competition and previous efforts<br />
    102. 102. STEP 2<br />Define your client’s kpis<br />
    103. 103. Example<br />Community size: 50K <br />Engagement: 10%<br />
    104. 104. STEP 3<br />analyse benchmarks & negotiate<br />
    105. 105. 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 />
    106. 106.
    107. 107. STEP 4<br />Remuneration model<br />
    108. 108. Example<br />a. Qualified member: $0.75 <br />
    109. 109. 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 />
    110. 110. Example<br />For 50 000 & 10% over 3 monthsestimated campaign cost $47.500<br />
    111. 111.
    112. 112. projections<br />Client was ready to pay $70 000<br />Objectives50 000 & 10% = $47.500<br />Result60 000 & 15% = $59.000<br />
    113. 113. STEP 5<br />
    114. 114. 5<br />
    115. 115. 5…<br />
    116. 116. 5… …<br />
    117. 117. Don’t you know that the time has arrived…<br />
    118. 118.
    119. 119. STEP 5<br />Execute campaign<br />
    120. 120. Be creative<br />Monitor<br />Optimize<br />Iterate fun fun fun<br />
    121. 121.
    122. 122. Recap pay-per-success<br />
    123. 123. 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 />
    124. 124. pay-per-success rules<br /><ul><li>40% - 60% at start
    125. 125. Higher maximum budget – keep incentives up – min 20%
    126. 126. Gather best data and negotiate
    127. 127. Agency must have strategic lead
    128. 128. Client must pay fast</li></li></ul><li>
    129. 129. Last thoughts<br />
    130. 130. Pay-per-success Walks the talklinking remuneration with advertising milestones<br />
    131. 131. The Brand community approach helps you Ask the right questions<br />
    132. 132. social media Advertising is about creativity and building a community not only about Ad-words and pay-per-click.<br />
    133. 133. Creativity can be used everywhere even in your business model. <br />
    134. 134. Where to rock&Social? <br />
    135. 135. Champion pay-per-success & brand community building<br />Stay smart & Sexy<br />keep on Having fun<br />
    136. 136. 2011 official opening in new york… Starting this fall<br />
    137. 137. 2012 Back at Internet week the story will continue!<br />
    138. 138. Let it rock & please connect<br />
    139. 139. Q&A<br />
    140. 140. HERE IS A CUTE PIC<br />
    141. 141. Q&A<br />
    142. 142. Presentationavailableat<br />@rockandsocial<br />@octavianmihai<br />www.rockandsocial.com<br />
    143. 143. If you liked Tweet<br />#iwNY <3 @rockandsocial<br />
    144. 144. THANK YOU! Hope ithelped!<br />
    145. 145. 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 />

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